SEMIRARA MIN­ING H1 ROY­ALTY CON­TRI­BU­TION JUMPS TO P1.69B

Philippine Daily Inquirer - - BUSINESS - By Ron­nel W. Domingo @RonWDomin­goINQ

Semirara Min­ing and Power Corp. (SMPC) yes­ter­day said it had re­mit­ted to the Depart­ment of En­ergy P1.69 bil­lion in roy­alty pay­ments for the first half of 2017, which was triple the amount paid in the same pe­riod last year.

In a dis­clo­sure to the Philip­pine Stock Ex­change, SMPC said it had paid P575 million in roy­alty in the first six months of 2016.

The in­te­grated en­ergy com­pany said the surge in gov­ern­ment re­mit­tances was driven by in­creased pro­duc­tion of coal at its mine in Semirara Is­land off Panay, as well as the ex­pan­sion of SMPC’s op­er­a­tions.

SMPC is push­ing to in­crease its yearly coal pro­duc­tion to 16 million met­ric tons in the next two to three years. In 2016, the com­pany pro­duced 12 million met­ric tons of indige­nous coal.

Of the P1.69 bil­lion in roy­al­ties al­ready paid this year, about P676 million will go to the lo­cal gov­ern­ment units that host SMPC op­er­a­tions.

By law, An­tique prov­ince will re­ceive P135 million while the town of Caluya and Barangay Semirara will get P304 million and P237 million, re­spec­tively.

The rest of the amount, or over P1 bil­lion, will go to the Na­tional Treasury.

Un­der the Lo­cal Gov­ern­ment Code of 1991, lo­cal gov­ern­ment units are en­ti­tled to a 40 per­cent share in roy­alty pro­ceeds from pe­tro­leum, coal, geo­ther­mal, hy­dro­ther­mal and wind re­sources.

“Our con­tin­ued part­ner­ship with the DOE al­lows us to cre­ate and de­liver shared value to the gov­ern­ment and our host com­mu­ni­ties,” SMPC pres­i­dent and chief op­er­at­ing of­fi­cer Vic­tor A. Con­sunji said in a state­ment.

“With the in­creased roy­alty pay­ments, they can un­der­take more pro­grams and projects for our coun­try­men,” Con­sunji said.

In 2015, SMPC re­mit­tances ac­counted for 83 per­cent of the P2.2 bil­lion gov­ern­ment roy­alty col­lec­tions from en­ergy re­source and pro­duc­tion.

Newspapers in English

Newspapers from Philippines

© PressReader. All rights reserved.