Semirara remits P1.7-B royalty payment to government

Consunji-led firm Semirara Mining and Power Corporation (SMPC) has turned over P1.7 billion worth of royalty payments to the government – via the Department of Energy (DOE) – as it recorded highest ever sales in its history as coal producer from Semirara island in Antique province.

In a media statement, SMPC qualified that the royalty share remitted to the government was just for sales in the second quarter this year, the highest ever in the history of the Semirara coal mine.

According to the company, it was able to generate “record-setting quarterly payment after recognizing P14.8 billion in revenues on the back of all-time high coal sales and higher average selling prices.”

By far, this year is considerably a turnaround year for SMPC on its coal sales, after suffering from financial slump at the height of the coronavirus pandemic last year.

SMPC President and Chief Operating Officer Maria Cristina C. Gotianun asserted that while “the pandemic has taken a significant toll on our company, we hope that our contribution can help boost our government’s response against Covid-19.”

Of the P1.7 billion royalty payments handed over to the energy department, it was specified that more than P1.0 billion will be retained by the national government; while the balance will be parceled out to Semirara’s host local government units.

As prescribed by law, it was specified that Semirara mine’s host-province of Antique will be cornering P136 million of the remitted royalty; while the municipality of Caluya will have P300 million share in the pie; and Barangay Semirara will get P230 million share.

SMPC explained that the royalty share of the LGUs is based on the provision of the Local Government Code of 1991, which states that at least 40-percent of the royalty payments shall be shared to the local governments – and these covered extraction of indigenous resources like petroleum, coal, geothermal, hydropower and wind resources.

Given the nature of its business operations, SMPC is considered a vertically integrated power producer, as well as fuel supplier that is extracting the resource from its own coal mine.

To date, Semirara is the country’s biggest commercially producing coal mine that is providing part of the country’s fuel requirements for electricity generation; while also generating US dollar revenues from the export of sizeable part of its coal output.

SMPC ‘s other main energy business is on power generation via its Sem-Calaca Power Corp and Southwest Luzon Power Generation Corporation plants that have been mainly feeding the electricity needs of Luzon grid.

Source: Manila Bulletin