Semirara residents press DOE for mining contract clarity

Residents of Semirara Island in Caluya, Antique, held a rally Sept. 25, 2026, calling on the Department of Energy to clarify the future of coal mining in their community as the existing operating contract approaches expiration.

The uncertainty carries implications beyond the island because Semirara supplies coal to power plants and other industries, while the terms of the next coal contract could affect government revenues, domestic energy supply and electricity consumers.

Semirara Mining and Power Corp. currently operates the island’s coal resources under Coal Operating Contract No. 5, which expires July 14, 2027.

The residents’ appeal comes after the DOE terminated its 2026 coal bidding round, which included 10 coal blocks on Semirara Island.

In a Sept. 19 statement, the DOE said it stopped the bidding process to reassess the parameters for awarding future coal operating contracts and ensure stronger economic returns for the government and clearer benefits for Filipino consumers.

The department said the areas offered in the bidding contain confirmed mineable coal reserves of commercial quantity, reducing geological uncertainty and increasing the importance of securing terms that reflect the value of the state-owned resources.

For the next contract, the DOE said it wants stronger and measurable commitments on government revenues, domestic coal utilization and other enforceable public benefits.

The agency said domestic utilization commitments should support the country’s energy requirements and help lower electricity costs for consumers.

The DOE also cited ongoing water seepage on Semirara Island that could affect the volume of extractable coal reserves.

Another factor is a legal dispute between the department and SMPC over assets used in coal operations, which the DOE said could create uncertainty for prospective bidders and their operational plans.

SMPC disclosed in July that it had asked the Regional Trial Court in Makati City to clarify the respective rights and obligations of the company and the DOE under Coal Operating Contract No. 5 and existing coal development rules.

The company filed its petition for declaratory relief on July 16, 2026, after the DOE required SMPC to submit detailed property, plant and equipment information and allow a physical inventory of its mine site and power complex on Semirara Island.

The DOE’s June 5 directive gave the company three days to comply and indicated that the information would be made available to participants in the bidding round.

SMPC disputed the DOE’s position concerning ownership and future use of certain assets and asked the court to determine the parties’ rights under the existing contract.

The company also disclosed that it was an applicant in the coal bidding round.

The legal action does not affect SMPC’s continuing operations under Coal Operating Contract No. 5, which remains effective until July 14, 2027.

The DOE said terminating the bidding round does not mean the government is abandoning the development of indigenous coal resources.

Instead, the department said it intends to strengthen its evaluation framework before offering the areas again to ensure future development supports energy security and generates tangible benefits for the public.

The DOE is also coordinating with the Department of Environment and Natural Resources on a policy framework for future service and operating contracts involving natural resources.

For Semirara residents, however, the unresolved question is what happens after the current contract ends, with the future of an industry closely tied to the island’s economy now dependent on the government’s next move.