The government receives a royalty payment of P1.7 billion from an integrated energy company
The government has collected approximately PHP1.7 billion in royalty payments from integrated energy firm Semirara Mining and Power Corp. (SMPC) for the second quarter of the year via the Department of Energy (DOE).
SMPC stated in a statement released Tuesday that this is the company’s largest quarterly royalty payment to the government, after revenue of PHP14.8 billion from April to June 2021.
In the second quarter of 2021, SMPC’s revenue was bolstered by all-time high coal sales and better average selling prices.
The national government will get PHP1 billion of the PHP1.7 billion handed over to it, which will be used to finance initiatives to combat coronavirus illness in 2019. (Covid-19).
Local government units (LGUs) hosting SMPC mining sites would get PHP666 million, with PHP136 million going to the province of Antique, PHP300 million to the municipality of Caluya, and PHP230 million to Barangay Semirara.
The host LGUs of petroleum, coal, geothermal, hydrothermal, and wind installations are entitled to 40% of the royalty revenues under the Local Government Code of 1991.
“Our nation has suffered a tremendous loss as a result of the epidemic. We believe that our donation will assist our government’s reaction to Covid-19,” said Maria Cristina Gotianun, president and chief operating officer of SMPC.
SMPC is the country’s only power producer that also mines its own fuel, allowing it to establish a local value chain by combining its coal mining and electricity activities.
SMPC produces 900 megawatts of electricity, according to its website, with an additional 1,200 megawatts of coal-fired power in the works.