THE Chamber of Mines of the Philippines (COMP) and the Philippine Nickel Industry Association (PNIA) are opposing the Department of Energy (DOE)-Department of Environment and Natural Resources (DENR) Joint Administrative Order (JAO) No. 2026-01, arguing that it introduces severe regulatory uncertainty and investment risks.
While the groups expressed support for the government’s goal of ensuring national energy security, they cited questionable provisions in the JAO. These include requiring incumbent operators to surrender privately-owned operational assets upon contract expiry, disadvantageous new bidding criteria, and biased evaluation process.
‘Policy stability and adherence to the rule of law are the bedrock for business and investment growth. If new and questionable provisions create uncertainty and fear, and make investing costlier in terms of involving project financing and asset valuations, among other things, then the government’s efforts to attract investors and President Ferdinand Marcos Jr.’s Ease of Doing Business agenda and his push to make the minerals industry as a stronger pillar of economic development would be for naught,’ they said.
They urged the government to ensure that the JAO is consistent with existing laws and contractual rights, promotes fair and transparent competition, and supports the country’s efforts to attract long-term investments.
‘We remain committed to constructive engagement with the DOE and the DENR to help achieve the government’s policy objectives,’ they added.
The DOE, however, said the new bidding rules for the upcoming coal auction are necessary. DOE Secretary Sharon Garin explained that while the guidelines for coal exploration bidding have recently changed, specifically for brownfield projects with proven and viable coal resources, the rules for greenfield projects remain unchanged.
‘I think what they mean is that the rules have changed compared to the previous ones. I guess what they’re saying is that the bidding rules for standard coal exploration have been modified recently. This is true in brownfield projects, but for greenfield projects, they remain the same,’ Garin had said.
The energy chief stressed that brownfield rules have been adjusted to maximize efficiency and secure resources. ‘For example, for brownfield projects, the majority or 80 percent of the produced coal must be sold domestically. Right now, it’s the other way around, as I think 80 percent is being exported.
‘What we want is an indigenous source of fuel due to the threats in the Middle East, so there are changes,’ said Garin.
Semirara Mining and Power Corp. (SMPC) currently holds coal operating contract (COC) No. 5, which is among the coal blocks on Semirara Island that will be auctioned by the DOE. The COC is valid until July 14, 2027.
The previous bidding for coal mining areas has been canceled to implement a new bidding process under updated rules, following the conclusion of the second public consultation. The DOE said this was meant to reassess the parameters of awarding coal operating contracts so that the next round can be conducted under this new set of rules.
The coal bid round covered three predetermined areas in Antique, Cagayan, and Isabela, offered for development and production coal operating contracts (DP COCs) under the Philippine Conventional Energy Contracting Program (PCEP). It was met with heavy resistance stemming from legal, technical, financial concerns.
‘The concerns raised by stakeholders during the presubmission conferences, developments affecting Semirara Island-one of the offered areas-including continuing water seepage, and certain legal considerations warrant a reassessment of the evaluation criteria applicable to the award of DP COCs for the offered areas,’ the DOE had said.
Garin clarified that the rules are uniform for all participants and are not targeting or excluding any specific company. ‘Anyone who qualifies under the established rules will be considered because it’s the same rules for everyone. Everyone is given a chance,’ she said.