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Brix Lelis - The Philippine Star
August 16, 2026 | 12:00am
Energy Secretary Sharon Garin said the government is “entertaining the idea” of taking a bigger revenue share from the country’s largest coal mine, which accounts for the bulk of domestic production.
Philstar.com / File
MANILA, Philippines — The Marcos administration is weighing a larger share of proceeds from the new contract covering the Semirara coal mine in Antique, as the auction process faces further delays.
Energy Secretary Sharon Garin said the government is “entertaining the idea” of taking a bigger revenue share from the country’s largest coal mine, which accounts for the bulk of domestic production.
“I think the government can ask for a (revenue-sharing arrangement) that would provide more benefits, since those same collections would go back to the industry or to the general public,” Garin said in an interview.
Under the existing contract, current operator Consunji-led Semirara Mining and Power Corp. (SMPC) is required to remit 30 percent of its net proceeds as royalties to the Department of Energy (DOE).
Speculations of potential higher royalty demands surfaced earlier this year after the DOE opted to auction the Semirara coal contract instead of granting SMPC’s request for an extension.
But Energy Undersecretary Alessandro Sales earlier told The STAR that the government was likely to maintain its share of proceeds, noting that the revenue-sharing scheme was already defined under the law.
SMPC’s current contract is set to expire in July 2027.
With the auction for the new contract continuing to stall, it remains uncertain whether SMPC will extend its decades-long operations at the mine or whether another company will take over once the existing contract ends.
Garin said the auction could be postponed for at least another two months, potentially pushing the timeline to November, as the DOE continues to finalize the terms of reference.
“We’re trying to work with the DOF (Department of Finance) on that, as well as DEPDev (Department of Economy, Planning and Development) and even the DENR (Department of Environment and Natural Resources), so it’s not that simple,” she stressed.
As first reported by The STAR, the bidding was put on hold in April to address clarifications raised by prospective bidders.
