DOE opens auction for coal sites, including Semirara Island

The Department of Energy (DOE) on Friday launched the competitive auction round for 18 coal blocks in three sites across the country, including the coveted Semirara Island currently held by Consunji-led Semirara Mining and Power Corp. (SMPC).

The DOE officially opened the 2026 Philippine Conventional Energy Contracting Program (PCECP) Pre-Determined Areas (PDAs) Bid Round for Coal.

The bidding round is an opportunity for qualified companies to undertake coal resource development in selected areas through new Coal Operating Contracts (COCs), “subject to stringent legal, work program, technical, and financial evaluation.”

In a statement, the DOE said the areas being offered “align with expiring or expired COCs, enabling a transparent and competitive contracting process for the next phase of development, including the application of updated safeguards and program requirements.”

In particular, the agency is offering three PDAs comprising eighteen coal blocks across three locations, covering a combined 18,000 hectares, namely:

• Semirara Island, Caluya, Antique - 10 coal blocks covering 10,000 hectares

• Amulung and Iguig, Cagayan - three coal blocks covering 3,000 hectares

• Benito Soliven, Naguilian, and Cauayan, Isabela - five coal blocks covering 5,000 hectares

For Semirara Island, the 10 coal blocks are currently covered by SMPC under COC No. 5 —a 50-year contract term set to expire in July 2027. 

In an interview with reporters, Energy Secretary Sharon Garin explained that the  coal blacks in Semirara Island will be up for bidding “since we have not issued an extension.”

In a disclosure to the Philippine Stock Exchange, dated February 19, SMPC said it is “focused on the bidding process and continues to operate under its existing Coal Operating Contract, which remains valid.”

“Semirara has proven itself already and any other challengers for that should prove that they could do better than Semirara,” Garin said.

Meanwhile, the five coal blocks in Cauayan, Benito Soliven, and Naguilian, Isabela previously covered by PNOC

Exploration Corporation (PNOC EC) under COC No. 122 had a contract term that expired in December 2022. 

Moreover, the three coal blocks in Amulung and Iguig, Cagayan, previously covered by DM Wenceslao & Associates Inc. under COC Nos. 116 and 123, had a contract term that expired in June 2024.

The Energy Department outlined the key guidelines for applicants seeking a COC for development and production, which include comprehensive submissions across legal, technical, and financial documentation to ensure that only capable proponents with credible development plans and safeguards can participate.

For the proposed work program, applicants must submit a five-year program with

corresponding annual expenditures and detailed plans covering, among others:

• a development and production plan with work commitments and a geotechnical program

• health and safety program

• social development program

• environmental protection program

• emergency preparedness and resiliency program

• progressive rehabilitation and mine decommissioning program

Interested applicants must also provide detailed methodologies for geological and geotechnical evaluation, including the data used, coal reserves analysis and potential resources, geohazard assessments with mitigating measures, and an economic and development concept for the coal reserves. 

Applicants must also include project economics such as internal rate of return and net present value, cash flow projections, and projected markets for the coal to be produced.

For technical documentation, applicants are required to submit an overview of their upstream and coal mining projects, including company experience, achievements, and track record.

The DOE said that financial guarantees of foreign companies to subsidiaries that are shareholders of the applicant are limited to their equity participation, subject to the allowable maximum 40% foreign capitalization.

The Energy Department added that applicants must also meet the minimum working capital requirement equivalent to 100% of the financial commitment for the first contract year of the proposed work program and budget and must demonstrate that capital for each PCECP application is available separately from other applied PCECP areas, renewable energy service contract applications, and existing energy service or operating contracts.

It said that Pre-Submission Conference will be held on March 19, 2026, to provide prospective applicants with information regarding the legal, technical, and financial documentation requirements for applying for a COC. 

The conference will cover guidelines for submitting COC applications as well as the policies and procedures related to the selection, evaluation, and awarding of COCs. 

The deadline for submitting application documents is April 28, 2026, at 11:00 a.m.

“I think there will be many companies that will be interested. But you have to remember also that this is not about the least price… this has to be awarded to the company that is the most capable to continue or even improve the operation,” Garin said. —VAL, GMA Integrated News