SMPC remits ₧1.7B in royalties to govt

CONSUNJI-LED Semirara Mining and Power Corp. (SMPC) has turned over nearly P1.7 billion in royalty payment to the Department of energy (DOE) in the second quarter.

Of the amount, more than P1 billion will be retained by the national government. The remaining amount will go to the host local government units (lgus) of the SMPC mine site.

The local Government Code of 1991 entitles lgus to a 40-percent share of royalty proceeds from petroleum, coal, geothermal, hydrothermal and wind resources.

The province of Antique will receive P136 million while the municipality of Caluya and Barangay Semirara will receive around P300 million and P230 million, respectively.

SMPC is the only vertically-integrated power producer in the country that mines its own fuel. The largest domestic coal producer, it supplies affordable fuel to power plants, cement factories and other industrial facilities across the Philippines.

It was able to generate the record-setting quarterly payment to the DOE after recognizing P14.8 billion in revenues on the back of all-time high coal sales and higher average selling prices.

“The pandemic has taken a significant toll on our country. We hope that our contribution can help boost our government’s response against Covid-19,” said SMPC President and COO Maria Cristina C. Gotianun.

DMCI Holdings Inc., SMPC’S parent company, reported that its net income jumped almost five times to P9.5 billion in the first semester, from the P2 billion it reported last year.

Semirara Mining contributed P3.7 billion, a near threefold increase from P1.3 billion owing to its all-time high coal production in the first quarter, all-time high shipments in the second quarter, and the strong rebound in coal and electricity spot prices.