The Department of Energy (DOE) said Wednesday it will launch a competitive bidding round for 18 coal blocks on Feb. 27, 2026, including areas in Antique province held by the country’s largest producer.
The pre-determined area (PDA) bid round aims to offer coal reserves with identified mineable potential to support national energy security and the transition agenda. The auction includes 10 blocks on Semirara Island in Caluya, Antique; 3 blocks in Amulung and Iguig, Cagayan; and five blocks across Isabela province.
The move follows a Department of Justice opinion that the DOE cannot extend Coal Operating Contract (COC) No. 5 for Semirara Mining & Power Corp. (SMPC) beyond its July 14, 2027 expiration. The department ruled that the government should instead subject the area to a competitive bid process.
“The government’s priority is to uphold the rule of law while safeguarding our indigenous energy resources,” DOE Secretary Sharon Garin said.
“Any future contract or continuation of operations must strictly comply with constitutional limits and demonstrably protect both the national interest and our host communities,” she said.
Under the bidding program, interested applicants have 60 calendar days from the launch date to submit documents.
The deadline for submission is 11 a.m. on the 60th day, with applications set to be opened two hours later.
SMPC, which had requested a 13-year extension to its current 50-year term, told the Philippine Stock Exchange Thursday that operations remain “business as usual.” The company said it has not yet received a formal response from the DOE regarding its request for a term adjustment but is preparing for the auction.
“The company intends to fulfill the remainder of its current COC while preparing the appropriate mine plan and documentation should the DOE proceed with a formal bidding process,” SMPC said.
The company said its decades of experience and existing equipment fleet provide a strong competitive advantage in the upcoming round.
SMPC said it is implementing capital management strategies to preserve financial flexibility, noting there is no immediate impact on its financial condition.
The DOE said the PDA mechanism ensures equal opportunity among qualified proponents through a transparent evaluation process. Regulatory oversight will continue throughout the life of the awarded contracts to enforce safety and environmental requirements.
