Consunji-led Semirara Mining & Power Corp. has turned to the judiciary to shield its proprietary operations, asking a Makati court to block energy regulators from disclosing highly sensitive commercial data to potential rivals.

In a petition filed against the Department of Energy (DOE), the country’s largest coal producer is seeking to stop the agency from sharing its comprehensive asset inventory and proprietary geological studies with prospective bidders for the Semirara coal mine.

This comes as the government prepares to auction off the Philippines’ premier coal blocks as Semirara’s existing operating contract nears its expiration in July 2027.

Semirara argued that its ownership of these technical assets is legally protected under its current contract and the country’s Coal Development Act. Consequently, the company maintained that the state should not package or include these private assets in the bidding requirements for third-party competitors.

Under the current legal framework, the government can only take ownership of the physical assets if Semirara fails to decommission and remove them from the production and exploration zones within one year of the contract's termination.

The legal battle escalated after the DOE issued four separate directives instructing Semirara to turn over exhaustive geological data and a detailed list of its specialized equipment. This includes machinery reconfigured specifically to manage heavy, river-strength water inflows at the Acacia mine.

Preserving control over these operations is highly critical, according to Semirara. Continuous, high-capacity pumping is currently preventing the Acacia mine from flooding. If pumping halts, the Acacia mine could become completely inoperable, potentially wiping out roughly half of Semirara Island's recoverable coal reserves.

While the DOE contended that equipment acquired by Semirara becomes state-owned once the company recovers its capital costs, the miner maintains that all assets situated outside exploration areas remain private corporate property.

Semirara noted that a level playing field is best achieved if competitors conduct independent technical evaluations rather than rely on the intellectual property and technical strategies the company built over decades.

Despite the legal friction, Semirara clarified that the petition is not designed to stall or derail the bidding process, which was launched after the Department of Justice turned down the company's request for a 13-year contract extension.

Instead, the court action aims to establish absolute clarity on a legal issue that could otherwise harm Semirara’s commercial and financial standing. The company reiterated its commitment to participating in the upcoming auction, which will cover ten coal blocks on Semirara Island.

The court petition will have no impact on day-to-day mining operations, which are slated to run normally until Coal Operating Contract No. 5 officially terminates. (Gabriell Christel Galang)