SMPC hikes royalty payment to DOE at B this year
With increased production at its coal mine, integrated energy firm Semirara Mining and Power Corporation (SMPC) has jacked up its royalty remittance to the Department of Energy (DOE) to R1.69 billion, roughly triple from last year’s R575 million.
Beyond output hike, the Consunjiled firm said the higher turnover of royalty share to the Philippine government had also been due to its expanding operations.
The company qualified though that out of the R1.69-billion royalty remittance, about R676 million will be funneled to the local government units serving as sites of SMPC’s operations.
Based on relevant laws, it was prescribed that the province of Antique shall be receiving R135 million; while the municipality of Caluya and Barangay Semirara will be cornering shares of R304 million and R237 million, respectively.
The balance of the amount shall go into the account of the national government, corresponding also to the prescriptions of laws governing such mode of energy projects.
Fundamentally, under the Local Government Code of 1991, it was stipulated that host LGUs are entitled to 40 percent share of the royalty proceeds from petroleum, coal, geothermal, hydro and wind resources.
SMPC previously indicated that it has been targeting full-year production of 16 million metric tons in the next 2-3 years.
If ever for this year, that will be an increase from the production level of 12 million metric tons in 2016.
Given their reinforced cash remittance to State coffers, SMPC President and Chief Operating Officer Victor A. Consunji noted that “our continued partnership with the DOE allows us to create and deliver shared value to the government and our host communities.”
He added that “with the increased royalty payments,” the energy department would be able to pursue more programs and projects that would bear benefits to the Filipino public.
With the anticipated production ramp up of the company, it is being reckoned that the royalty yield of the government from the Semirara coal mine will also be going up over the years.