Meralco PowerGen Corp., the power generation arm of Manila Electric Co., is considering participating in the upcoming auction for the coal operating contract for the country’s biggest coal mining operations, the company’s top executive said.
“Maybe better if it’s… Meralco, MGen to take a look at it. It’s a mine-mouth kind of auction,” MGen chairman Manuel Pangilinan told reporters.
Pangilinan said that while the company has not firmly decided to bid, the project is “on the radar” for MGen.
He noted that the Semirara coal mine in Antique would help secure MGen’s future fuel requirements as the company continues to pursue baseload coal facilities to support national growth.
“If you secure your supply chain, localize… that must be the benefit. So you save on freight, at least,” he said.
The Department of Energy plans to bid out the Semirara contract this year ahead of its 2027 expiration.
Currently held by Semirara Mining & Power Corp. (SMPC), the contract cannot be renewed further following a Department of Justice ruling that the agreement must end after its 50-year term.
The DOE expects to hold the auction within the year to ensure operations remain uninterrupted.
SMPC said it remains confident despite the looming auction, noting that it intends to participate in the process.
“Management believes that SMPC’s decades of experience in managing complex engineering projects, coupled with its established operations, technical expertise, and extensive equipment fleet… provide a strong competitive advantage,” the company said in a disclosure to the stock exchange earlier.
