Semirara remits P3.57b worth of royalties to DoE

By Alena Mae S. Flores – May 26, 2019 at 07:20 pm
from manilastandard.net

Semirara Mining and Power Corp. has remitted P3.57 billion in royalties to the Department of Energy, representing the government’s share in the company’s mining revenues in 2018.

“Our partnership with DoE allows us contribute meaningfully to the economy of our host communities. Aside from royalties, we also generate employment in Semirara Island and nearby areas,” said SMPC president and chief operating officer Maria Cristina Gotianun in a statement.

The royalty payment, remitted in March this year, is 17 percent lower than P4.3 billion sent in the previous year as coal sales volume dropped 11 percent from 13.1 million metric tons to 11.6 MMT. SMPC owns the country’s biggest coal mining operations in Caluya, Antique province.

Local government units under the law are entitled to a 40-percent share of royalty proceeds from petroleum, coal, geothermal, hydrothermal and wind resources.

Of the P3.57 billion remitted, around P1.43 billion will be distributed to SMPC’s host communities. Nearly P500 million will go to Barangay Semirara, while the municipality of Caluya and the province of Antique will receive P642 million and P285 million, respectively.

The SMPC mine site directly employs over 3,300 people, which makes it the single biggest employer in Semirara Island and Caluya. The mine site payroll in 2018 reached P1.48 billion.

Since its acquisition by DMCI Holdings in 1997, SMPC has remitted over P21 billion to the national government as part of its coal operating contract with the DoE.

SMPC has also been actively investing in mine rehabilitation as part of its commitment to preserve the environment. SMPC spent P2.92 billion in 2018 to accelerate the rehabilitation of the southern portion of the Panitan pit in Semirara Island.

It spent around P1.83 billion to acquire dump trucks, excavators and other support equipment to expand the company’s stripping and hauling operations. The company spent over P1 billion on labor, fuel and other costs.