Philippines’ energy department prepares legal defence for mining rules
By Paula Fabe | 03 November 2026
The Philippines’ Department of Energy (DOE) is preparing to defend its proposed framework for awarding mining and natural resource contracts if challenged in court, as the government overhauls its auction process.
In a recent interview, energy secretary Sharon Garin said the DOE is reviewing the legal implications of a joint administrative order (JAO) with the Department of Environment and Natural Resources ahead of finalising the rules.
“What we are just trying to do at the DOE is give everyone a fair chance and eventually maximise the benefits [of the contracts] to the country,” Garin said.
Under the national interest evaluation framework, existing contract holders and operators must surrender covered assets to the government once contracts expire. Qualified bids will be evaluated using financial offers as the “sole ranking factor” to secure maximum economic return.
The framework has drawn pushback from Japanese investors and domestic miners, who argue the order could create regulatory uncertainty and damage investor confidence.
Critics include Semirara Mining and Power (PSE: SCC), an entity of the Consunji Group and operator of the country’s largest coal mine on Semirara Island in Antique, Philippines.
The rules were introduced after the DOE opened its coal bidding round, leading to delays and the eventual cancellation of the Semirara auction.
Garin acknowledged that Semirara and prospective bidders are “not happy with us”, though she stressed that the guidelines aim to retain resource output onshore.
“Because of the [Middle East] war, I would rather push for everything that we produce or extract within Philippine jurisdiction to be used here. We use imported coal from Indonesia. That does not help us, that kind of system,” she pointed out.
The Philippines relies on imports for roughly 95% of its coal, with Indonesia acting as the primary supplier. Garin warned the Semirara auction could encounter additional delays if court action “tells us to stop”.
Source: Mining.com.au