BIZ BUZZ: Garin unfazed by Semirara risk
Pausing Semirara coal mine operations may not pose a big loss for the Philippine power sector, the energy chief says, as the planned bidding faces a fresh delay.
“On a general view, Semirara actually exports,” Department of Energy (DOE) Secretary Sharon Garin said when pressed if the government can afford another delay in the coal auction, which includes the highly prized Semirara mine site.
Only a small portion goes to local power plants, the official said.
“It’s not like all of our power plants, coal power plants, depend on Semirara,” she said.
“And if there’s need for more coal, while there are still some issues, it can easily be bought from, procured from local mining sites or [we could] import more from other countries,” Garin added.
Consunji-led Semirara Mining and Power Corp. (SMPC) has long been operating on the island with a 50-year government contract that will end in July 2027.
With its wish to extend the deal for 13 more years getting turned down, the government is opening the coal mine site to other potential entrants.
The auction was initially set for launch in late April, then moved back to July, then September.
Garin said more time is needed, with the agency targeting to welcome investors vying for the coal blocks in November—or maybe a little later.
Garin admitted she’s delaying the auction to get the best deal, including an increase in government revenue sharing and securing more coal for domestic use.
For instance, she reiterated that the majority of local production, reaching 80 percent, is being released to foreign markets.
Data from SMPC showed that as of first half 2026, 51 percent of its shipments were exported while the rest went to domestic clients.
Given the current scenario, the DOE official said they would want the next operator to allot majority of coal production to power generators here.
Although the delays have been weighing down on SMPC’s operations, forcing the group to trim its coal production targets and even workforce, Garin still believes the firm has a fighting chance.
“SMPC is a very qualified candidate for the bidding round that we will be doing,” Garin said.
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