Insider Spotlight
In an Oct. 19, 2026 statement, the consumer advocacy group urged the Department of Energy to assess bidders on their commitments to supply and consumer benefits, warning against treating incumbent Semirara Mining and Power Corp.’s experience as sufficient justification for another contract.
Why it matters
Nasecore said Semirara accounts for about 97 percent of Philippine domestic coal production. Reduced output could increase dependence on imported fuel, exposing electricity consumers to international prices through generation charges.
The group cited second-quarter coal production of 2.5 million metric tons, down 55 percent from 5.6 million a year earlier. It also flagged an 83- percent reduction in coal business capital spending to P800 million from P4.8 billion.
“When production falls by 55 percent in a quarter, that coal must be replaced — either by imports at world market prices or by switching to alternative fuels that may be more expensive,” Nasecore said through its president Petronilo Ilagan.
Supply under pressure
Nasecore warned that flooding at the Acacia mine could threaten access to remaining reserves, while deferred investment could leave a successor operator facing higher equipment, development and maintenance costs.
In an Oct. 1, 2026 stock exchange disclosure, SMPC said seawater seepage exceeded its pumping capacity. It said it was building a cut-off wall and coordinating with the DOE, while coal extraction continued in accessible pits.
The next contract
Nasecore also warned that an unresolved equipment ownership dispute could disrupt production after the existing contract expires on July 14, 2027. It said equipment removal could delay a successor’s operations and deepen reliance on imports.
The group said it was not endorsing any bidder and acknowledged that technical mining assessments belong to government authorities. Its central demand was that the auction secure tangible, guaranteed benefits for the government and electricity consumers.
Semirara says...
In a separate Oct. 19 statement, SMPC questioned the DOE’s bidding rules, saying these put a productive business and its economic contributions at risk. The company said it had paid P70.5 billion over 29 years, contributed around P600 million annually to Caluya for community programs, and supported more than 4,000 jobs before its operations came under threat.
SMPC argued that the rules require it to surrender trucks and heavy equipment to the government as a condition for bidding, while imposing no comparable requirement on the other known bidder, which it claimed has no known mining experience.
It warned that selecting an operator based on the highest bid without ensuring technical competence could result in no coal production or royalty payments, and questioned what penalties would apply.
The company also defended its role in supplying affordable electricity and exporting coal that the domestic market cannot absorb. It cited September average prices of P4.05 per kilowatt-hour for coal-fired plants in the Luzon-Visayas grid, compared with P14 for LNG-fired plants.
“The bidding rules discourage industrialization,” SMPC said. —Daxim L. Lucas | Ed: Corrie S. Narisma
