Semirara Mining and Power Corp. (SMPC), a Consunji group member specializing in coal mining and energy production, remitted lower royalties to the Department of Energy (DOE) amounting to P 3.57 billion of government shares for 2018.
A year-on-year drop of 11 percent or 11 million metric tons (MMT) from 13.1 MMT of coal sales resulted in 17 percent decrease in the royalty paid by the company to the energy department last March compared to last year’s P 4.3 billion.
Local government units (LGU) involved in the operations of the mining firm will benefit from the royalty as stated under the Republic Act No. 7160 or the Local Government Code of 1991 which entitles LGUs 40-percent share of royalty proceeds from petroleum, coal, geothermal, hydrothermal and wind resources.
Semirara’s host communities will receive P 1.43 billion. P 500 million will be distributed to Barangay Semirara, P 642 million to the town of Caluya, and P 258 million to the province of Antique.
“Our partnership with DOE allows us to contribute meaningfully to the economy of our host communities. Aside from royalties, we also generate employment in Semirara Island and nearby areas,” Semirara president and chief operating officer Maria Cristina Gotianun was quoted saying in a report by Inquirer.net.
Over 3,300 people leans on Semirara for employment making it the single biggest employer in Semirara Island and Caluya reaching a payroll of P 1.48 billion from the company’s mine site for 2018.
