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The Philippine government has opened a competitive bidding round for coal blocks on Semirara Island in Antique, putting the country’s largest coal mine, currently operated by Semirara Mining and Power Corp. (SMPC), at the center of a new contracting process ahead of the expiration of its long-running operating agreement in 2027.
The Department of Energy (DOE) on Friday launched the 2026 Philippine Conventional Energy Contracting Program (PCECP) Pre-Determined Areas Bid Round for Coal, offering 18 coal blocks across three locations nationwide covering a combined 18,000 hectares.
Ten of those blocks, which span 10,000 hectares on Semirara Island in Caluya, Antique, are currently covered by SMPC under Coal Operating Contract (COC) No. 5, a 50-year agreement scheduled to expire in July 2027.
Competitive Bid Round For Coal Areas
Aside from Semirara, the DOE is also offering three coal blocks covering 3,000 hectares in Amulung and Iguig in Cagayan, and five blocks totaling 5,000 hectares in Benito Soliven, Naguilian, and Cauayan in Isabela.
The agency said the areas included in the bid round correspond to coal operating contracts that have either expired or are nearing expiration, allowing the government to conduct a new, transparent contracting process for the next phase of development.
“The government’s role is to ensure that any activity involving our energy resources is undertaken transparently, competitively, and with full accountability,” Energy Undersecretary Alessandro Sales said.
Sales said companies seeking to secure contracts must demonstrate strong technical and financial capabilities while presenting credible plans covering safety, environmental protection, community development, and progressive rehabilitation.
Applications for the bidding round must be submitted by April 28, 2026 at 11:00 a.m., with the opening of bid documents scheduled the same day at 1:00 p.m. A pre-submission conference will be held on March 19 to discuss documentation and bidding requirements.
Strong Industry Interest
Energy Secretary Sharon Garin said the Semirara contract is expected to attract strong interest from potential bidders.
“I think there will be many companies that will be interested,” Garin said, noting that some firms may still be waiting for the official terms of reference for the auction.
However, Garin emphasized that the bidding process will not be determined solely by price. “This has to be awarded to the company that is the most capable to continue or even improve the operation,” she said.
Garin added that Semirara’s existing operator already has an established track record, pointing out that the company “has proven itself already and any other challengers for that should prove that they could do better than Semirara.”
In a disclosure to the Philippine Stock Exchange dated February 19, SMPC said it remains focused on the bidding process while continuing operations under its current contract, which remains valid until 2027.
SMPC chairman Isidro Consunji said the company plans to participate in the auction and intends to submit its “most advantageous mining plan” to the government.
Other Possible Bidders
Several industry players are reportedly assessing whether to join the bidding. Manuel V. Pangilinan said his group is considering the opportunity, noting that securing the coal contract is “certainly” on the group’s radar, particularly through Meralco PowerGen Corp.
Other companies that could potentially participate include conglomerates with exposure to cement manufacturing, where coal is commonly used as an additive.
Industry sources have mentioned the Aboitiz Group and San Miguel Corp. as possible bidders, though their participation remains uncertain.
Coal Remains Dominant In Power Mix
The bidding round comes as coal continues to play a significant role in the country’s energy system.
Coal accounted for about 62 percent of the Philippines’ power generation mix between 2023 and 2024. While its share declined slightly to around 57 percent in early 2025, it remains the dominant source of electricity.
Renewable energy sources, by comparison, contribute roughly 32 to 33 percent of the country’s energy supply.
Private Sector Participation
Garin said the government prefers that private companies lead the development of coal resources, with state-run entities stepping in only if necessary.
She said the DOE has advised attached agencies such as PNOC Exploration Corp. to allow private firms to take the lead during the bidding stage.
“We only come in when the private sector is not interested or is not capable,” Garin said.
Source:
https://www.philstar.com/business/2026/02/26/2510434/many-firms-interested-semirara-coal-contract