Published March 20, 2017, 10:00 PM by Myrna M.
Velasco
The royalty share turned over to the
government by Semirara Mining and Power Corporation (SMPC) already reached
P2.65 billion as of end last year, roughly 47-percent higher from P1.8 billion
in 2015.
According to the company, of the
amount already remitted to the Department of Energy (DOE), about P1.0 billion
had been funneled to project-host local government units (LGUs), as prescribed
by rules.
SMPC explained that it operates
within the dictum of 20-percent; 45-percent and 30-percent sharing between the
provinces of Antique, municipality of Caluya and Barangay Semirara,
respectively.
The Consunji group operates the
Semirara coal mining venture which partly supplies the requirements of various
coal-fired power plants in the country.
Victor Consunji, president and chief
operating officer of SMPC, noted that the company’s royalty remittance to the
government would be able to “generate growth that redounds to our host province,
municipality and community.”
As prescribed by governing law,
local government units are entitled to a 40-percent share of royalty proceeds
for indigenous and renewable energy (RE) resources – including petroleum, coal,
geothermal, hydrothermal, and wind resources.
SMPC indicated that based on a
report of the Department of Budget and Management (DBM) in 2015, royalty
turnover of the company accounts for 83-percent of the P2.2 billion collections
from energy resource and production.
It stressed that Western Visayas
which is Semirara Mining’s host region had cornered the lion’s share of about
P725 million.
The company further noted that since
DMCI Holdings bought into Semirara Mining in 1997, the cumulative royalty
remittance to government already topped P13.5 billion.
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