THE government’s auction for 10 coal exploration blocks, which had been indefinitely postponed last April, might resume this midyear, Energy Secretary Sharon said late Monday.
“We are still fixing things to get the best offer we can get,” Garin said in an interview at a Department of Energy (DOE) activity in Robinsons Galleria.
The postponement came after the DOE rejected the extension of the 50-year coal operating contract of the Semirara mine of the Semirara Mining and Power Corp. which expires on July 14, 2027.
The DOE instead opted to conduct a public bidding for the Semirara mining blocks and two other areas in Cagayan and Isabela in February.
Meralco PowerGen Corp., initially an interested bidder, backed out of the auction, which was indefinitely suspended in late April to allow a review of the DOE’s conventional energy program.
Some issues that had been raised by bidders were the terms of the contract, the amount of coal to be sold to the government, how much would be exported and what to do with the equipment at the coal mines, Garin said.
“Rest assured that we are going through [these concerns],” Garin said, noting that all issues raised at the pre-submission conferences would be addressed before announcing a new auction date.
The proposed auction covered three locations: Semirara Island in Caluya, Antique with 10 coal blocks covering 10,000 hectares; Amulung and Iguig in Cagayan, three coal blocks at 3,000 hectares; and Benito Soliven, Naguilian and Cauayan in Isabela, five coal blocks at 5,000 hectares.
The contracts for the five coal blocks in Isabela had expired in December 2022.
