AFTER SEMIRARA TRO: Group Urges Repeal of Outdated Coal Law

By Joseph Bernard A. Marzan

A pro-environment think tank has called on Congress to repeal the country’s coal law following a temporary restraining order (TRO) granted to a major mining firm operating in Antique.

The Center for Energy, Ecology and Development (CEED) on Wednesday urged lawmakers to repeal Presidential Decree No. 972, also known as the Coal Development Act of 1976.

The law established the country’s Coal Development Program and governs the issuance of coal operating contracts by the Department of Energy (formerly the Energy Development Board).

It grants incentives to coal operators, including exemption from most taxes except income tax, and from certain tariffs and duties.

An amendment, Presidential Decree No. 1174, added further incentives, such as reimbursement of up to 90 percent of gross income after deducting operating expenses, and access to timber, water rights and government-reserved lands.

Semirara Mining and Power Corp. (SMPC) recently cited the law in a complaint for injunction with prayer for a TRO and/or writ of preliminary injunction against the Department of Finance and its attached agencies, the Bureau of Internal Revenue and the Bureau of Customs.

SMPC claimed exemption from duties and taxes on imported fuel.

In a June 18 regulatory filing, SMPC disclosed that the Makati Regional Trial Court granted a 20-day TRO, barring the government from collecting the contested revenues.

The firm also invoked Section 295(F) of the National Internal Revenue Code, as amended by Republic Act No. 11593 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

CEED executive director Gerry Arances said the TRO raises concerns about tax fairness, fiscal policy and climate goals.

“The law governing coal mining is decades old and no longer fits the country’s climate and fiscal realities,” Arances said in a press release.

“What this reflects, supported by the recent court TRO, is a legal framework that favors fossil fuel interests over urgent climate needs.”

He urged Congress to repeal PD 972 to ensure fair taxation of major polluters and to support a just transition to renewable energy.

Arances said the group’s call aligns with the government’s goals of expanding its tax base and accelerating the shift to clean energy.

He added that the Department of Finance and its agencies must consider the broader implications of the court ruling on tax equity and energy policy.

“Our policies must reflect the true costs of fossil fuel extraction, including social and environmental damages,” Arances said.

“Repealing this outdated law is not just important but necessary to protect communities, drive climate action and uphold public interest over corporate privileges.”

CEED also cited past incidents involving SMPC operations, including the collapse of the Panian Pit and a 2015 landslide that killed at least nine workers.

This is the second statement raising concerns over SMPC’s activities on Semirara Island in Caluya, Antique.

A local coalition earlier flagged the social, environmental and fiscal implications of the Department of Environment and Natural Resources’ decision to amend SMPC’s environmental compliance certificate, allowing it to expand its coal mine complex.