The Department of Energy (DOE) said that coal traders engaged in illegal trading will face penalty and revocation of permits.   . Energy Undersecretary Alessandro O. Sales issued an advisory strictly warning illegal coal traders. “In order to fully comply with the obligations under the Circular and avoid being penalized under the same, you are hereby directed to inhibit from transacting and/or undertaking coal trading activities or related businesses with illegal small-scale miners, non-accredited coal traders and unregistered coal end-users,” the advisory stated. The energy department issued the advisory as it received reports of illegal small-scale coal mining operations and entities conducting illegal coal trading operations and utilization in violation of a DOE Circular No. 20212-05-006. The energy official emphasized that the advisory “serves as a warning for all stakeholders that any future infraction will be severely dealt with by the DOE.” The policy governing trading activities and other conduct of business in the coal sector had been decreed under DOE Department Circular No. DC 2012-05-0006, which prescribes the guidelines on the accreditation of coal traders and registration of coal end-users that was issued by the agency way back in 2012. The energy official emphasized that under Section 2.7 of the Circular, “coal trading refers to the business of buying, selling, importing, exporting, marketing, transporting, distributing, handling, stockpiling and storage of coal and other related activities.” On that premise, he reminded relevant stakeholders to sell only to accredited coal traders and/or registered coal end-users and entities exempted from accreditation and registration under (the) Circular. Additionally, Sales stated that registered coal end-users are obliged “to purchase locally- produced coal only from valid COC (coal operating contract) holders, independent SSCMP (small scale coal mining permittee) holders or other accredited coal traders.” In cases of violations, the energy official reiterated that the DOE shall impose penalties as provided for under Section 10 of the same Circular. Depending on the gravity of the offense that may be determined upon the conduct of investigation, the energy department is authorized to “suspend, revoke or cancel any coal trader's Certificate of Accreditation or Certificate of Registration of coal end-users due to, among others, failure to comply with the obligations,” as provided under the rules.