Semirara Mining and Power Corp. (SMPC) remitted a record P1.7 billion in royalty to the Department of Energyfor the second quarter of the year.
Under the Local Government Code of 1991 the government and local government units are entitled to a 40 percent share of royalty proceeds from operating petroleum, coal, geothermal, hydrothermal and wind resources.
The government is mandated to use the amount to finance electrification, livelihood and development projects and recently, also allowed to be spent for activities related to combat the effects of the pandemic.
SMPC said it generated the record-setting quarterly payment after recognizing P14.8 billion in revenues on the back of all-time high coal sales and higher average selling prices for the period.
Of the P1.7 billion, more than P1 billion will be retained by the national government. The province of Antique will receive P136 million while the municipality of Caluya and Barangay Semirara will receive around P300 million and P230 million, respectively.
“The pandemic has taken a significant toll on our country. We hope that our contribution can help boost our government’s response against COVID-19 (new coronavirus disease 2019),” said Maria Cristina Gotianun, SMPC president and chief operating officer. – Jed Macapagal
