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Semirara Mining and Power Corp remits record P5.9B royalty in Q1; up 807% YoY

by Philippine Resources - May 31, 2022

Photo credit: Bilyonaryo

Integrated energy company Semirara Mining and Power Corporation (SMPC) recently remitted P5.9 billion in government royalty to the Department of Energy (DOE), the highest in its corporate history.

The first-quarter remittance is an 807-percent upsurge from the P656 million that SMPC paid during the same period last year. All-time high coal shipments and average selling prices account for the record-setting government share.

“We had an exceptionally strong start, so much so that in three months, we surpassed our previous full-year royalty payments,” said SMPC president and COO Maria Cristina C. Gotianun.

In 2021, SMPC paid a total of P5.4 billion to DOE as improved coal output and favorable market conditions allowed the company to ship more coal at elevated prices.

Of the P5.9 billion remitted by SMPC, more than P3.5 billion will be retained by the national government.

In accordance with the law, the rest will go to the host local government units of the SMPC mine site. The province of Antique will receive P476 million while the municipality of Caluya and Barangay Semirara will receive around P1.1 billion and P833 million, respectively.

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

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

 

Article courtesy of the Philippine Stock Exchange


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