Semirara coal supply at risk by July 2027
NASECORE is urging the Department of Energy to resolve the dispute over Semirara Mining and Power Corp.’s next coal operating contract before its current agreement expires in July 2027. The consumer group warned that delays could disrupt domestic coal production, threaten supply to power plants and put additional pressure on electricity costs.
BUSINESS Semirara coal contract dispute NASECORE electricity consumers Department of Energy coal bidding The Department of Energy is being urged to resolve the contested requirements pertaining to the bidding of the mine being operated by Semirara Mining and Power Corp. in Semirara Island and ensure uninterrupted coal production before SMPC’s existing contract expires in July next year.
‘Any award must protect the continuity of production,’ said the National Association of Electricity Consumers for Reforms. Maria Bernadette Romero · 17 October 2026 · 11:46 PM PHT · 2 MIN READ THE Consunji-led Semirara Mining and Power Corporation operates the country’s largest coal mine on Semirara Island, Antique, under Operating Contract No.
5, which is set to expire on 14 July 2027. Photograph courtesy of mmongabay Domestic coal supply could face disruptions by July 2027 unless the government resolves the dispute over Semirara’s next operating contract, potentially putting further pressure on electricity costs, a consumer group warned.
The National Association of Electricity Consumers for Reforms (NASECORE) is urging the Department of Energy (DoE) to resolve the contested bidding requirements and ensure uninterrupted coal production before Semirara Mining and Power Corp.’s (SMPC) existing contract expires in July next year.
Protect continuity of production “Any award must protect the continuity of production,” NASECORE said. “If a new operator is selected, the DoE should require a credible transition plan covering lawful access to equipment and facilities, personnel, technical operations, safety, rehabilitation and domestic deliveries, with realistic milestones before the incumbent contract expires.” SMPC currently operates the mine under Coal Operating Contract No.
5. The DoE terminated the 2026 coal bidding round in September to reassess its award parameters following objections to the proposed requirements. SMPC has challenged the rules, particularly the alleged requirement to surrender mining assets, raising questions over the legality and fairness of the selection process.
Clarify legal basis of disputed provisions NASECORE, is asking the DoE to clarify the legal basis of the disputed provisions under Presidential Decree No. 972 and the existing contract while ensuring that the bidding process remains competitive. “Legitimate property rights must be respected; they must not, however, be confused with an automatic right to another operating contract,” the group said.
Apart from securing production continuity, NASECORE pressed the government to prioritize domestic coal requirements under the next contract, citing SMPC’s 2025 annual report showing that 45.6 percent of its coal sales volume went to export markets. It called for enforceable domestic supply commitments and transparent pricing arrangements that account for local demand and coal-quality requirements.
Revenues no guarantee to lower electricity costs “Greater government revenues do not, by themselves, guarantee lower electricity costs for consumers,” NASECORE said. The group also cautioned against bidding qualifications that could favor the incumbent and discourage other technically and financially capable operators from participating.
“Qualification conditions drawn too narrowly around the incumbent’s unique operating history could effectively exclude other capable bidders,” it said.
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