Meralco PowerGen Corp. (MGen) is considering a bid for the government-tendered coal block in Antique, with plans to take a minority stake as part of a broader strategy to secure fuel supply for its power generation portfolio.

According to Manila Bulletin, MGen President and CEO Emmanuel Rubio said the company is interested in the 10,000-hectare coal area in Caluya, which is currently operated by Semirara Mining and Power Corp. (SMPC).

Rubio noted that any potential move would likely involve MGen taking a secondary role, citing the incumbent operator’s experience in managing the site.

Semirara Mining remains “the most qualified entity to manage the technical complexities of the block,” Rubio said.

He added that MGen is looking at the opportunity as a strategic investment rather than an operational takeover.

“We would likely take a minority position,” Rubio said, describing the potential move as a “physical hedge” amidst price volatility and supply chain disruptions in the global energy market currently.

MGen has already held preliminary discussions with the Consunji-led SMPC, particularly on integrating coal production with Meralco’s power assets.

However, Rubio clarified that the company has yet to begin formal due diligence. The company is currently assessing both the valuation of Semirara’s coal reserves and the logistical viability of the project before making any commitment.

The Department of Energy (DOE) is opening the Semirara coal block to competitive bidding as the current 50-year operating contract held by SMPC is set to expire on July 14, 2027. Instead of renewing the contract administratively, the government opted to place the area under a public auction, alongside three other coal sites.

Under the rules, SMPC is allowed to participate in the bidding process to retain its rights over the territory. The auction covers a total of 18,000 hectares, including additional blocks in Amulung and Iguig in Cagayan, as well as sites in Benito Soliven, Naguilian, and Cauayan in Isabela.

SMPC remains the country’s dominant coal producer, with around 900 megawatts of installed capacity, including operations under SEM-Calaca Power Corp. and Southwest Luzon Power Generation Corp.

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