SMPC hikes roy­alty pay­ment to DOE at B this year

Manila Bulletin - - Business News - By MYRNA M. VE­LASCO

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.

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