The Philippine Department of Energy (DOE) has called off its planned 2026 coal bidding round covering three major concession areas, including the highly coveted Semirara Island, as it seeks to overhaul award frameworks and resolve legal uncertainties surrounding the auction, local media reported on September 17.

The DOE secretary Sharon Garin said on September 14 that the agency was on track to wrap the bidding before the end of the year, noting that the DOE had already forged a joint memorandum with the Department of Environment and Natural Resources on brownfield exploration.

However, In an advisory dated September 15, the DOE said the auction was cancelled to allow a more intensive review aimed at establishing a fair, equitable, transparent and comprehensive evaluation framework for prospective mine operators.

The order halted a tender originally scheduled for the fourth quarter covering 18 development and production blocks, including 10 on Semirara Island in Antique, three spanning Amulung and Iguig in Cagayan, and five across Benito Soliven, Naguilian and Cauayan in Isabela.

The pause follows feedback from pre-submission conferences and mounting operational complications at the Semirara site, which accounts for about 90% of domestic coal output. Persistent water seepage into active extraction areas and complex legal considerations prompted planners to reassess criteria for evaluating prospective contract holders.

While the DOE has not released next steps or a revised timeline, the stakes remain high for incumbent operator Semirara Mining and Power Corp (SMPC), which holds exclusive rights over the Antique deposits, expiring in July 2027.

The SMPC has warned that any new operator would face major financial barriers, estimating roughly 55 billion pesos ($878.23 million) in fresh investment would be needed to sustain production.

The long-time operator has urged the DOE to align auction rules with the Coal Development Act, establish a balanced ranking system and set clear protocols for transferring equipment and infrastructure.