THE Department of Energy (DOE) will soon resume its deferred coal auction after completing consultations on revised bidding guidelines, Energy Secretary Sharon Garin said.
The agency is reviewing comments submitted by stakeholders following the first public consultation, Garin noted. Stakeholders had requested 15 days to provide feedback, and the submission period has ended.
The DOE plans to hold a final consultation this week before issuing the revised guidelines and opening the auction a few days later.
The agency wants to complete the bidding process before the end of the year because of the tight timetable.
It had deferred the auction in August to review some contract terms. Among the proposed changes were requirements to allocate most of the coal production to domestic power generation and increase the government’s royalty share, instead of allowing the bulk of the output to be exported.
Garin said the DOE and the Department of Environment and Natural Resources had issued a joint memorandum covering brownfield exploration, or the development of previously explored or operating sites.
The bid round initially covered three predetermined areas comprising 18 coal blocks with a combined area of 18,000 hectares.
These include 10 blocks covering 10,000 hectares on Semirara Island in Caluya, Antique; three blocks spanning 3,000 ha in Amulung and Iguig, Cagayan; and five blocks covering 5,000 ha in Benito Soliven, Naguilian and Cauayan, Isabela.
The 10 blocks on Semirara Island are covered by Coal Operating Contract No. 5, held by Semirara Mining and Power Corp. The 50-year contract is scheduled to expire in July 2027.
