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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Philippine Resources - March 17, 2022
Semirara Mining and Power Corp earns P16.2b net income in 2021, highest in its 41-year history
Photo: Integrated energy company Semirara Mining and Power Corporation (SMPC) ended 2021 with a net income of P16.2 billion, the highest in its 41-year history. The 393-percent leap from P3.3 billion the previous year was mainly attributable to an 8- percent rise in coal production, 16-percent jump in coal shipments and 71-percent surge in average coal selling prices. “Our results reflect the hard work of our people. They rose to the challenges of the pandemic and delivered exceptional value to our stakeholders,” said SMPC president and COO Maria Cristina C. Gotianun. Contributions from the coal segment grew by 535 percent from P1.8 billion to P11.4 billion while both power subsidiaries delivered improved performances. Sem-Calaca Power Corporation contributed P3.3 billion, a 154-percent upturn from P1.3 billion the previous year. Meanwhile, Southwest Luzon Power Generation Company recorded a 1,563-percent rise in contributions from P87 million to P1.4 billion. For the fourth quarter alone, SMPC saw its net income expand by nearly twenty times from P297 million to P5.9 billion, its highest profit level for any given quarter. Average selling prices from October to December rallied by 229 percent from P1,354 to P4,452 as global supply disruptions and accelerated demand from China, India and Europe pushed index prices to record levels. Elevated coal prices offset the impact of lower shipments, which was nearly halved (46%) from 4.6 million metric tons (MMT) to 2.5 MMT owing to weather-induced coal production drops in the third quarter. Article courtesy of the Philippine Stock Exchange
Philippine Resources - May 04, 2022
SMPC completes mine rehab of largest open pit in PH
Integrated energy company Semirara Mining and Power Corporation (SMPC) has completed its backfilling operations in Panian, once the largest open-pit mine in the Philippines. SMPC spent 11.5 million man-hours to fill the pit with over 452 million bank cubic meters (bcm) of earth material, which is enough to fill 217,000 Olympic-size swimming pools. “We are mindful of our twin role as stewards and government contractor. What we accomplished in Panian is proof of that,” said SMPC president and COO Maria Cristina C. Gotianun. Located in Semirara Island, Panian mine spans 400 hectares with topographic elevations that ranged from 300 meters below sea level (mbsl) to 30 meters above sea level (masl) during its mine life. 300 meters is roughly the height of a 90-story building. SMPC fully covered the pit in six years, way ahead of the original 10-year mine rehabilitation plan. Mine rehabilitation refers to the repair of land that was disturbed by mining activities. The company is now developing a science-based plan to reforest and restore the biodiversity in the area. Panian had a mine life of 16 years and generated P12.7 billion in royalties for the government and SMPC host communities. Of the total amount, P7.6 billion went to the national government while the Municipality of Caluya and Brgy. Semirara received P2.3 billion and P1.8 billion, respectively. P1 billion went to the Province of Antique. In September 2021, SMPC won in the ASEAN Energy Awards (Special Submission category) for its accelerated rehabilitation of South Panian pit, which is considered as the fastest of its kind and scale in the Philippines. SMPC completely filled North Panian with earth material last January, four months ahead of its committed date to the Department of Energy.
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Philippine Resources - July 01, 2022
Sampulna cites need for more mineral processing plants to boost PH production
Photo credit: DENR - Mr. Jim O. Sampulna Former Department of Environment and Natural Resources (DENR) Acting Secretary Jim O. Sampulna pushed for the establishment of more mineral processing plants and utilization of rare earth deposits to help increase the country’s mineral production and revenue generation. “Mineral processing plants make the mined mineral ready to use for application. For example, limestone, if processed, will become cement, which is ready to use for construction,” Sampulna cited. “If we have more of these plants and more minerals will be processed in the country, then its value will increase even more than 100 percent, and lesser raw materials will be shipped out to other countries, like Japan or China,” he said. The DENR-Mines and Geosciences Bureau has so far issued 108 mineral processing permits, most of which are for construction materials. Likewise, Sampulna proposed the identification of rare earth elements (REEs), such as scandium and yttrium, in operating mines. Sampulna, who was the former DENR undersecretary for mining, said that these metals are essential parts for many high-technology devices. “The Philippines is conducive to these minerals. It could contribute to the national government through the identification and utilization of these commodities. To date, there are only a few operating mines which have identified REEs,” he said. Sampulna cited that a proposed iron mineral processing plant in Zamboanga had its groundbreaking ceremony on June 18, to support the DENR’s initiatives toward self-utilization of mineral commodities in the country. “We hope that investors will push for the opening of more processing plants in the Philippines,” he said. He also assured Filipinos that the DENR will continue to strengthen its regulation and monitoring of mining operations to ensure sustainable and responsible mineral production in the country. Article courtesy of Department of Environment and Natural Resources
Philippine Resources - June 29, 2022
DENR Awards MGB with Plaque of Appreciation for the Success of the Boracay Island Rehabilitation
Photo: The MGB Boracay Island Rehabilitation Team together with former DENR Secretary Roy A. Cimatu Four years after the Department of Environment and Natural Resources (DENR) spearheaded the rehabilitation of the Boracay Island, the DENR Acting Secretary and Boracay Inter-Agency Task Force (BIATF) Chair Jim O. Sampulna CESO I awarded the Mines and Geosciences Bureau (MGB) a Plaque of Appreciation for its valuable contribution to the success of the Boracay Island Rehabilitation during the BIATF’s culminating event on June 16, 2022. Boracay Island is one of the most developed and densely populated karstic islands in the Philippines. The extensive alteration of its natural landscape, as well as the alleged discharge of wastewater into the sea, posed a major environmental concern, prompting its temporary closure on April 26, 2018. The BIATF then launched the rehabilitation of Boracay island to safeguard its sustainable development. As part of the BIATF, the MGB team, led by Lands Geological Survey Division (LGSD) Chief Liza Socorro J. Manzano, was composed of technical personnel from the LGSD of MGB Central Office and the Geosciences Division of MGB Regional Office No. VI. The team conducted studies on hydrogeology, coastal geohazards, karst subsidence hazard, and geophysical investigations using Ground Penetrating Radar (GPR) and georesistivity. The highly specialized studies sought to provide a holistic understanding of the island’s karstology and the impacts of tourism development to ensure that the rehabilitation efforts of the government are predicated on the ecological sustainability of the small island karst. Ultimately, the results of the GPR investigation on pipes discreetly disposing wastewater and polluting the seawater of Boracay which resulted in the discovery of their existence and eventual dismantling of the same is a "game-changer" relative to the implementation of science-based strategies and crafting of policies for appropriate wastewater and solid waste management in the island. Article courtesy of the MGB
Philippine Resources - June 28, 2022
The Fault with Cobalt: Overcoming the Challenges of Battery Metal Exploration
upply Co., Inc. Cobalt is an important element used to manufacture rechargeable batteries. Cobalt has unique properties that help improve thermal stability, which is critical for the batteries to function properly. It also helps improve some batteries’ energy density, so they can last longer. The demand for cobalt is high, so geologists need fast, accurate tools to help them meet these requirements. Portable X-ray fluorescence (pXRF) analyzers are one of these tools, as they provide on-the-spot material chemistry results. Why Choose Portable XRF for Cobalt Exploration? Portable XRF provides rapid, in situ, multielement geochemistry for immediate results in the field. This is useful for greenfield and brownfield exploration, ore grade and process control, environmental monitoring and remediation, and researching/teaching within the geological/environmental sciences. For battery metal exploration, portable XRF provides decision-quality data faster than traditional, lab-based XRF, and also enables more discriminatory laboratory sampling, helping reduce costs and improve ROI. With sample preparation, pXRF produces high-quality quantitative data that is comparable to laboratory analysis. Challenges with Analyzing Cobalt XRF is prone to inter-element interferences. Iron (Fe) on cobalt (Co) and nickel (Ni) on cobalt (Co) are two common examples. This means that when a lot of iron is present, it becomes difficult for XRF to identify cobalt at low levels. Likewise, the presence of nickel also makes it difficult for XRF to ID cobalt. Unfortunately, cobalt is routinely explored for in the presence of significant amounts of iron and nickel. To solve this challenge, we developed a GeoChem method for Vanta™ pXRF analyzers that offers improved analysis for battery metals exploration by being able to detect cobalt in the presence of iron and nickel. This innovative method overcomes the interference that has historically made it very difficult for portable XRF analyzers to detect cobalt in the presence of these other elements. The method we developed for the Vanta analyzer is built on the current GeoChem method, but with a more sophisticated way of deconvoluting the iron/cobalt/nickel peaks. Before deploying this solution, we tested it on client samples to make sure that it produced good results. Test Results We analyzed 16 samples with high iron content—9% < Fe < 50%, 50 ≤ Co ≤ 6000 ppm, Ni < 500 ppm. We also analyzed 50 samples with a moderate amount of iron—0.5% < Fe < 15%, 16 < Ni < 8000 ppm, 50 ppm < Co < 2.3%. The samples were pulps in XRF cups, and they were analyzed using 60 seconds per beam with no corrections. The graphs below show excellent agreement between the results obtained from a lab and results obtained using a Vanta portable XRF analyzer, indicating that the modified GeoChem method can accurately detect the presence of cobalt when it’s in the presence of both large and moderate amounts of the interfering elements iron and nickel. Geologists now have another important tool that they can rely on when exploring for new sources of this vital element.
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