Semirara stock faces new coal bid challenge as SMC joins auction

Published on 11/13/2026 at 02:57 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Semirara stock faces a fresh challenge as San Miguel plans to join the coal auction. The contract decision is targeted for January 2027.

What investors need to watch

San Miguel Corp. intends to participate in the auction for the Semirara coal operating contract.
The bidding rules require asset disclosures and transfers that could affect Semirara Mining's incentive to compete.
The existing contract expires on July 14, 2027, while the government targets a new contract in January 2027.

Semirara, PHY7628G1124, Illustration mit AI erstellt.

San Miguel Corp. plans to join the auction for the contract to operate Semirara Mining and Power's coal mine in Antique, Philstar reported on November 13, 2026. San Miguel chairman and chief executive Ramon Ang said the conglomerate would seek to join the public bidding, although he had not yet studied the terms of reference.

Coal auction sets new timetable

The Department of Energy has relaunched the auction for 18 coal blocks across Antique, Cagayan and Isabela. The Semirara mine is the largest asset in the process and is currently operated by Semirara Mining and Power.

The bidding rules require existing operators that seek a new contract to provide a full inventory of assets, equipment and facilities used in their operations. Covered assets that have been cost-recovered, amortized or depreciated must be turned over for use under the resulting contract. The rules also require a non-refundable signature bonus of PHP 1 billion and a five-year production commitment of at least 60 million metric tons, with at least 35 percent allocated to domestic buyers.

Contract deadline remains central

Semirara's existing coal operating contract expires on July 14, 2027. The Department of Energy plans to open bids on December 11, announce the highest-rated qualified bidder on December 28 and issue the notice of award on January 11, 2027. The government targets signing the new contract on January 13, 2027.

The asset-transfer provision creates an additional strategic issue for Semirara beyond the arrival of a major potential rival. Analyst Toby Allan Arce told Philstar that the rule could weaken Semirara's incentive to participate because of its investment in mining equipment and infrastructure, while also creating uncertainty around asset ownership and future operations.

Production target already reached

Semirara Mining and Power says it had reached its full-year coal production target of 12 million to 13 million metric tons by November 10, consistent with its approved work program. The company is the Philippines' largest coal producer and also supplies baseload power to the national grid through its subsidiaries.