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DOE to auction Semirara coal block after extension request denied
DOE to auction Semirara coal block after extension request denied
Despite moves to extend the current concession covering the long-running coal operations in Antique province, the Department of Energy (DOE) said it will open the area to prospective bidders.
In an ambush interview last week, Energy Secretary Sharon Garin said the agency stands firm in denying another extension to Consunji-led Semirara Mining and Power Corp. (SMPC), which operates on the island, noting that the decision was based on the opinion of the Department of Justice (DOJ).
“Our direction is to have it [Semirara Island] auctioned... Bidding,” she told reporters. “We have a schedule; the bidding should be within the year.”
Garin further explained that even with multiple appeals from the current coal operator to extend the mining service contract for another 13 years, the miner will not be allowed to extend its concession.
“We’ve already gotten the [DOJ] opinion, and we’ll follow… Which everybody can join,” she said, noting that SMPC will still be given a fighting chance to reclaim its half-century coal operating contract.
SMPC’s road does not end here, however, as it is still allowed to join the auction. Garin hinted that the company may even have the upper hand in the bidding.
“If you’ve been to Semirara, it’s such a complicated engineering project. There’s so much technology there that I’ve only seen, and I think most people have,” Garin noted. “The advantage is they already know what to do, they have the equipment [hundreds of them], and they have experience. It’s not about who offers the lowest. We want to find the most qualified.”
In an earlier interview, the DOE chief explained that SMPC has a complex open-pit operation, which involves sea-barrier technology and specialized extraction methods.
SMPC has a 50-year coal operating contract that began in 1977 and is expected to expire on July 14, 2027. The firm received its previous extension in 2012, allowing it to continue operations for the next 15 years.
Last year, the company expanded its project area by 5,221 hectares (ha) after it obtained an environmental compliance certificate from the Department of Environment and Natural Resources (DENR).
It has been generating between 16 million and 20 million metric tons (MT) of coal annually, and its 900-megawatt (MW) capacity is enough to serve as baseload power for Luzon and Visayas.