Semirara Mining and Power Corporation has filed a court petition against the Philippine Department of Energy over demands for proprietary information and asset inventory related to the Semirara coal operation. The Consunji-led company seeks protection from repeated DOE requests for geological data, technical information, and equipment details, alleging the department intends to share this information with rival bidders. The dispute arises as the DOE prepares to auction 10 coal blocks on Semirara Island in Antique after rejecting SMPC's request to extend its coal operating contract beyond the July 2027 expiration. According to SMPC, the DOE sent four letters seeking comprehensive operational data, including details about pumps specially reconfigured for the Acacia pit. The auction would mark the first time the DOE bids out an existing coal mine, with Secretary Sharon Garin stating the process could proceed by the middle of the year.
DOE Opens Semirara Coal Blocks to Competitive Bidding
The Department of Energy rejected SMPC's request to extend its coal operating contract for another 13 years beyond the July 2027 expiration. Acting on a Department of Justice opinion that the contract could no longer be renewed, the DOE instead opened the area to bidding, although SMPC remains qualified to compete. The auction covers 10 coal blocks on Semirara Island in Antique, currently operated by SMPC, the country's largest coal producer. DOE Secretary Sharon Garin said the auction could push through by the middle of the year. SMPC has held its coal contract for about 50 years.
SMPC Argues Proprietary Data Should Not Be Shared with Rival Bidders
SMPC filed a petition before a Makati court seeking protection from DOE demands for a comprehensive inventory of its assets and proprietary technical information. The company alleged that the department intends to share the information with other companies bidding for the Semirara coal operation. According to SMPC, the DOE sent four letters seeking geological and technical data, along with a detailed inventory of equipment. These include pumps specially reconfigured to manage water flowing into the Acacia pit, which the company described as the mine's "lifeline." SMPC argued that rival bidders should prepare their own studies and mine plans instead of relying on information built from its decades of investment and operations. The company maintained that the disputed equipment remains company property.
Coal Development Act Requires Operators to Furnish Government Information
The DOE's request for extensive operational information is not, by itself, necessarily unusual. The Coal Development Act requires an operator to furnish the government with "all information, data, and reports" it may require, maintain detailed technical records, and allow government inspectors access to equipment and mining sites. The government also has a legitimate interest in ensuring bidders can operate the technically complex mine safely and without interrupting coal production. By SMPC's own account, the pumps controlling water seepage at the Acacia mine are critical. If pumping stops, the pit could become flooded and inoperable, losing roughly half of Semirara Island's recoverable coal reserves.
Ownership Dispute Centers on Equipment Transfer Timeline
SMPC maintains that it still owns the mine's assets under its coal operating contract and that they should not be made available to rival bidders. The company argues that ownership would pass to the government only if SMPC failed to remove the assets from the production and exploration area within one year after its contract expires in July 2027. "Government ownership of these assets is merely future and conditional," SMPC said in a press release on Friday, July 17. Under SMPC's interpretation of the Coal Development Act, movable assets would become government property only if the operator failed to remove them from the exploration or production area within one year after the contract ended. The DOE takes the position that ownership of the equipment transfers to the government once SMPC has recovered its costs. The DOE has yet to publicly respond since SMPC released its statement. SMPC said its court petition is not intended to stop or delay the bidding process and that mining operations would continue until the contract expires in July 2027.
FAQ
What did Semirara Mining file against the Department of Energy?
Semirara Mining and Power Corporation filed a court petition before a Makati court against the Department of Energy. The petition seeks protection from repeated DOE demands for a comprehensive inventory of assets and proprietary technical information related to the Semirara coal operation.
Why did the DOE reject SMPC's contract extension request?
The Department of Energy rejected SMPC's request to extend its coal operating contract for another 13 years beyond the July 2027 expiration. The DOE acted on a Department of Justice opinion that the contract could no longer be renewed and instead opened the area to competitive bidding.
When does SMPC's coal operating contract expire?
SMPC's coal operating contract expires in July 2027. The company has held the coal contract for about 50 years and remains qualified to compete in the upcoming auction for the 10 coal blocks on Semirara Island in Antique.
