Semirara pays govt P1.7B in royalties
LISTED Semirara Mining and Power Corp. ( SMPC) remitted P1.69 billion in royalty payments to the government in the first six months of the year, nearly triple the P575 million that the company remitted to the Department of Energy ( DOE) in the same period last year.
The integrated energy firm told the Philippine Stock Exchange ( PSE) that its growing production and expanding operations spurred the surge in its royalty payments to the government this year.
Semirara Mining said about P676 million of the remittance would go to the local government units ( LGU) where it operates. The province of Antique would receive P135 million while the municipality of Caluya and Ba r a n g ay Semirara wo ul d get P304 million and P237 million, respectively.
SMPC said the national government would retain the remainder of the payment amounting to more than P1 billion.
“Our continued partnership with the DOE allows us to create and deliver shared value to the government and our host communities. With the increased royalty payments, they can undertake more programs and projects for and Chief Operating Officer Victor Consunji said.
Republic Act No. 7160 or the Local Government Code of 1991 stipulates that LGUs are entitled to a 40 percent share of royalty proceeds from petroleum, coal, geothermal, hydrothermal, and wind resources.
Last month, Semirara Mining signed a Memorandum of Understanding ( MOU) with the DoE to develop a 50- megawatt ( MW) mine- mouth power plant in Antique that would provide electricity to Mindoro.
SMPC was acquired by Consunji- led conglomerate DMCI Holdings Inc. in 1997 and is the sole power producer in the country that owns and mines its own fuel source.
Shares of Semirara Mining ended Friday down 1.67 percent at P44.30.