In a petition, SMPC said the DOE had repeatedly directed the company to submit a comprehensive inventory of its assets, geological and technical information, and equipment details, arguing that the disclosure could prejudice its legal and financial interests while providing an unfair advantage to rival bidders.
Legal dispute
The company, in a statement, said it owns the assets under Coal Operating Contract No. 5 and the Coal Development Act (Presidential Decree No. 972), adding that these assets will not be made available for use by the winning bidder after the contract expires in July 2027.
According to the company, the government can own the assets only if SMPC fails to remove them from the production and exploration area, within one year after the termination of its contract in July 2027.
"Government ownership of these assets is merely future and conditional," the company said in its petition.
“The bidding is supposed to choose a winner that has a viable mine plan and knows how to run one to make sure coal production is seamless to protect the country’s baseload electricity generation. It is not about SMPC and how it runs the mine,” SMPC added.
Asset concerns
The DOE issued four separate letters directing SMPC to submit detailed information on its assets, including geological and technical data and a complete inventory of equipment used in the mine.
Among the equipment cited were specially reconfigured pumping systems designed to manage the intensified river-strength water flow affecting the Acacia mine.
SMPC described the pumps as critical to the mine's continued operation.
"So far, continuous pumping has kept water seepage at the Acacia mine under control. But the pumps are the mine's lifeline: if pumping stops, Acacia could become completely flooded and may no longer be operable. If that happens, roughly half of the island's recoverable coal reserves will be lost," the company said.
The DOE, according to SMPC, maintains that equipment acquired by the company becomes government-owned after the recovery of its costs. SMPC, however, argued that equipment removed from the production and exploration areas within one year after the contract expires remains company property.
Bidding continues
SMPC said in the same statement that the petition is not intended to stop or delay the bidding for the Semirara coal operating contract but to obtain judicial clarification on issues involving ownership and disclosure of proprietary information.
The company said each bidder should undertake its own technical studies and develop its own mining approach instead of relying on commercially sensitive information generated through SMPC's investments and expertise.
Despite the legal challenge, SMPC said it remains committed to participating in the bidding process, cooperating with the DOE, and complying with all regulatory requirements.
The company also emphasized that the court filing will not affect its current mining operations, which will continue under Coal Operating Contract No. 5 until its expiration in July 2027. —Ed: Corrie S. Narisma
