Professional Documents
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What are the other resources in the island of Semirara? Do you have the permit to mine them?
Apart from coal, Semirara island has about 824 thousand tons of silica, 1.2 billion tons of limestone, and
2.9 million tons of clay. Yes, we have the exclusive right to explore and mine these reserves. Our
present permit grants the company the exclusive right to explore them. The company has the option to
convert the permit into a Mineral Production Sharing Agreement (MPSA). The MPSA grants the company
the right to mine these other resources.
In 2006 Australian consultants supervised confirmatory drilling activities in the Panian Pit in accordance
with the Joint Ore Reserve Committee (JORC) standards of Australia (an internationally recognized body
for establishing mineable reserves). As at 31 December 2006, 62 million MTs of coal were classified as
measured and confirmed, while additional 24.5 million MTs and 6 million MTs were categorized as
indicated and inferred, respectively.
What is your annual mining capacity? What are your expansion plans?
Currently, our annual capacity is 4 to 4.5 million MTs ROM coal. We are planning to expand by 500
thousand MTs/year until we reach 5 million MT-capacity, which is the maximum limit of present
infrastructure capacity at the Panian Mine.
Revenues
- Allowable deductions (up to 90% of revenues)
Income subject to DOE share
x 30%
DOE share
What are the allowable deductions for the computation of DOE share?
All expenses, except DOE share and income tax are allowable deductions
What happens if the allowable deductions for the period exceed 90% of revenues?
The excess will become part of the accumulated recoverable cost. When the company is operating more
efficiently and expenses are less than 90% of revenues, this could be used to maximize the allowable
deductions and minimize royalty payments. Thus:
Revenues
- Allowable deductions + accumulated recoverable expense (up to 90% of revenues)
Income subject to DOE share
x 30%
DOE share