MGEN backs out of Semirara coal auction

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May 7, 2026 | 12:00am

MANILA, Philippines — Meralco PowerGen Corp. (MGEN) will no longer pursue the coal bid for the Consunji Group’s flagship asset on Semirara Island in Antique and is instead eyeing a joint venture with the current operator.

“We’re not going to join the auction,” MGEN president and CEO Emmanuel Rubio said in an interview, citing the company’s limited time to conduct proper due diligence.

Rubio said MGEN is instead in talks with the Consunji Group on a potential partnership to operate the coal blocks on Semirara Island, now subject to government competitive bidding.

“If we see the offer to be acceptable and we see that there’s a business case for it, then we will discuss us coming in,” he said.

Consunji-led Semirara Mining and Power Corp. (SMPC) currently operates the country’s largest coal mining site in Antique, but its contract is set to expire in July 2027.

The Department of Energy earlier rejected the company’s appeal for an extension and instead put the coal operating contract up for auction.

The STAR first reported that the competitive bidding was postponed “until further notice” to give prospective bidders more time to prepare their bid documents.

Given the Consunji Group’s proven track record in operating the Semirara coal contract, Rubio said that MGEN is only looking at partnering with SMPC.

“We believe that they have the advantage. They have all the equipment needed to extract coal on Semirara (Island). The logical winner, with the rational bid, I think, is still Semirara,” he added.

Meralco Group chairman Manuel V. Pangilinan had earlier expressed interest in securing the contract. The group, led by MGEN, was even spotted at the coal auction launch in February.

However, following reported negotiations between officials of SMPC parent DMCI Holdings Inc. and MGEN, the Meralco Group shifted its position.

In a previous interview, Rubio said MGEN intends to take only a “minority position” should the planned partnership with SMPC push through.