NEW coal auction bidding rules must be fair and not depend mainly on which company submits the highest offer, Semirara Mining and Power Corp. said.
“The new bidding rules for the [Semirara] coal [contract] should ensure a fair process, including proper prequalification of prospective bidders based on technical capability, operating experience and financial capacity,” the company said in a statement.
Awarding the contract based only the highest bid is fraught with risks, especially if the winning company happened to have no mining capability and track record, Semirara added.
“In this instance, zero coal production could happen, and that means zero royalty payment to the government, which is exactly the opposite of what the bidding hopes to achieve,” it said.
The government has declined to extend Semirara’s contract beyond July 14, 2027, citing legal limits. The Department of Energy (DOE) this month halted the auction process amid concerns raised by stakeholders, but has since set an October relaunch.
The DOE said the postponement would give it more time to develop a fair, equitable, transparent and comprehensive bidding framework.
Semirara said that given the scale and complexity of the mine, the bidding process should safeguard operational continuity.
“And what’s most important is to take into account the welfare of the host communities whose jobs, livelihoods and local economy depend on the mine,” it added.
Semirara Mining shares on Monday dropped P0.82, or 5.37 percent, to close at P14.46 each.
ED PAOLO SALTING
