Policy changes drag mining stocks — PSE chief
MANILA, Philippines - Changes in the mining policies are to be blamed for the dismal performance of the mining and quarrying stocks in the past year, Philippine Stock Exchange (PSE) President and CEO Hans Sicat said.
The issuance of the new mining policy and the run-up to the mining reform bill, which aims to effect changes to the revenue sharing and fiscal scheme, is dragging the mining industry behind, Sicat said at the Leisure, Tourism and Gaming in the Philippines conference organized by PSE and Asiamoney on Monday, May 27.
"The low performance of the mining industry is an example of the negative effect of changing an industry's fiscal regime midway," he said.
President Aquino passed EO 79 in July 2012 to iron out some of the issues hounding the mining industry, particularly the revenue-sharing between the minng firm and the government, among others.
Sicat added these delays in policy implementations continually hurt the mining industry. He said the industry is one, if not the most, underperforming industry in the stock exchange.
In the 4th quarter of 2012, the mining and quarrying sector contributed a dismal 0.2% to the overall economy.
This is despite the country being considered as the 5th most mineral-rich country in the world for gold, nickel, copper and chromite worth over $840 billion.
Finance Secterary Cesar Purisima said the government is pushing the mining reform bill as a priority measure once the next House session resumes. - Rappler.com