MGen eyes minority stake in Semirara coal block

MANILA — Meralco PowerGen Corp. (MGen) is considering a bid for the government-tendered coal block in Antique province, with plans to take a minority stake as part of a broader strategy to secure fuel supply for its power generation portfolio.

Emmanuel Rubio, MGen president and chief executive officer, to Manila reporters that the company is interested in the 10,000-hectare coal area in Caluya, which is currently operated by Semirara Mining and Power Corp. (SMPC), a firm led by the Consunji family.

Rubio noted that any potential move would likely see the electricity generation subsidiary of Manila Electric Co. (Meralco) taking a secondary role to leverage the existing expertise at the site.

“Semirara Mining remains the most qualified entity to manage the technical complexities of the block,” Rubio said.

Should MGen proceed, Rubio said the company would seek a minority position, describing the potential investment as a strategic move to secure fuel supply for its power generation portfolio.

He described the interest as a “physical hedge” against price volatility and supply chain disruptions in the global energy market.

MGen has held preliminary discussions with the Consunji group regarding the integration of coal production with Meralco’s power assets, but Rubio clarified that formal due diligence has not yet commenced.

The company is currently assessing the broader valuation of the Semirara coal reserves and the logistical viability of the project before committing to a final bid.

The Department of Energy (DOE) is opening the Semirara block to competitive bidding as the current 50-year coal operating contract held by SMPC is scheduled to expire on July 14, 2027.

Although SMPC previously sought to renew its contract through administrative channels, the government opted to place the area under a public auction alongside three other locations.

Under the bidding rules, SMPC is permitted to compete to retain its rights over the territory.

The auction covers several pre-determined areas spanning a combined 18,000 hectares. Beyond the primary Semirara site, the DOE is offering blocks in Amulung and Iguig in Cagayan, as well as sites across Benito Soliven, Naguilian, and Cauayan in Isabela.

SMPC remains the Philippines’ dominant coal producer and maintains a significant footprint in the power sector through its 900-megawatt installed capacity. Its operations include SEM-Calaca Power Corp. and Southwest Luzon Power Generation Corp.