San Miguel weighs entry into Semirara coal contract auction

San Miguel Corp. is looking at bidding for the contract to run the Semirara coal mine in Antique, according to chairman and CEO Ramon Ang. He told The Philippine Star that he had not yet reviewed the tender terms, although the conglomerate routinely takes part in public auctions.

The Department of Energy (DOE) said representatives from San Miguel’s power companies had joined previous discussions ahead of bidding. The wider auction covers 18 coal blocks spread across three predetermined areas in Antique, Cagayan and Isabela.

For Semirara, the bidding conditions require a signature bonus of ₱1 billion that cannot be refunded. Bidders must pledge coal production reaching at least 60 million metric tons during a five-year work programme. Domestic buyers must be allocated at least 35 per cent of that committed output.

Existing operators entering the auction must account for equipment, facilities and other operational assets whose costs have been recovered, amortised or depreciated. Those assets must be made available under the new operating contract, subject to court decisions or directives.

That condition would require incumbent Semirara Mining and Power Corp., led by the Consunji group, to submit a full inventory of covered assets if it seeks another contract. The assets are to pass to the government when the current agreement expires on July 14, 2027.

Under the indicative schedule, bids are due on Dec. 11 and will be opened that day. Qualified bidders’ financial proposals are scheduled for opening on Dec. 21, followed by an award notice on Jan. 11, 2027. The DOE aims to have contracts signed by Jan. 13, 2027.