The Philippine government has launched a competitive bidding process for several coal mining areas, including the major Semirara Island site in Antique, as part of a broader program to award new coal operating contracts. The auction comes as the current contract held by Semirara Mining and Power Corp. approaches its expiration in 2027, prompting authorities to open the resource area to new bidders under a transparent contracting process.
Key Facts At A Glance
- The Department of Energy launched the 2026 coal bid round on February 27, 2026.
- The auction covers 18 coal blocks across three locations totaling around 18,000 hectares.
- The areas include 10 blocks in Semirara Island, 3 in Cagayan, and 5 in Isabela.
- Semirara Island is currently operated by Semirara Mining and Power Corp. (SMPC).
- The existing coal operating contract is scheduled to expire in July 2027.
- Interested bidders must submit a five-year work program and investment plan.
The Department of Energy (DOE) opened the competitive bid round under the 2026 Philippine Conventional Energy Contracting Program (PCECP) to award new coal operating contracts covering identified resource areas across the country.
The auction includes three predetermined coal areas totaling roughly 18,000 hectares, composed of 10 blocks on Semirara Island in Antique, three blocks in Amulung and Iguig in Cagayan, and five blocks in Cauayan, Benito Soliven, and Naguilian in Isabela. The Semirara site is the most commercially significant of the areas offered.
Semirara Island is currently operated by Semirara Mining and Power Corporation, the country’s largest coal producer and a subsidiary of DMCI Holdings. However, its Coal Operating Contract No. 5 is scheduled to expire in July 2027, prompting the government to place the resource area under a new competitive bidding process rather than granting an extension.
Government officials said the decision to conduct an auction follows a legal opinion from the Department of Justice indicating that the contract should not simply be renewed but instead subjected to a transparent bidding process.
According to the DOE, the coal areas being offered contain significant reserves, including an estimated 160 million metric tons of coal in the Semirara blocks, making it the most attractive site among the predetermined areas.
Energy Secretary Sharon Garin said the bid round is intended to ensure the orderly and responsible development of the country’s indigenous coal resources while applying updated regulatory safeguards and technical evaluation standards.
Industry interest is already emerging. Existing operator SMPC has indicated it may participate in the bidding process, while other companies—including power sector investors—have expressed potential interest in securing the concession.
Coal remains a major component of the Philippines’ electricity supply, serving as a reliable baseload energy source despite the government’s ongoing efforts to expand renewable power generation.
