The Department of Energy (DOE) is moving to fast-track the development of domestic coal reserves by allowing companies to bypass years of preliminary exploration and move directly into production.

In a new circular released for public consultation, energy officials outlined a framework for awarding development and production coal operating contracts in areas with already-verified deposits.

The policy aims to eliminate the traditional exploration phase, which often delays energy projects by several years while they conduct surveys and collect data before a single ton of coal is extracted.

The department noted that, while exploration is typically required to confirm the presence of minerals, several locations outside proclaimed coal mining reservations already possess sufficient geological data to demonstrate the existence of commercially viable, mineable reserves.

By skipping the “search” phase, the government expects to see swifter contribution to the national energy mix from local sources.

Under the proposed guidelines, the government will adopt methods to ensure the “efficient, accelerated, and optimal utilization” of the country’s coal resources.

The DOE stated that the move is necessary to unlock confirmed reserves that have remained dormant due to administrative bottlenecks.

The process for awarding these contracts will follow two primary paths. Private developers may nominate a specific area of interest to signal potential, or the DOE may take the initiative by identifying pre-determined reserves and inviting industry players to submit formal proposals.

When multiple companies express interest in the same area, the department will initiate a competitive bidding process under the Philippine Conventional Contracting Program. This selection will be overseen by a dedicated review and evaluation committee to ensure transparency and technical capability.

To maintain regulatory oversight, the DOE will limit these development and production contracts to 15 coal blocks per region. Each application must be backed by validated geological data, verified coal occurrences, and clearly delineated reserves.

Successful applicants will be granted an initial contract term ranging from 10 to 20 years. The framework supports longer-term viability, with the potential to extend by up to 12 years if the site remains productive.