Mining EO lauded

MANILA, Philippines – Mining companies welcome the Aquino administration’s executive order (EO) on mining that highlights the need to increase government’s share in industry revenues.

In a statement, the Chamber of Mines of the Philippines said EO 79 helps address investor concerns.

“The mining policy is a signal to all investors of government’s desire to establish a consistent and stable business environment founded on a level playing field,” it said.

“COMP is committed to move President Benigno Aquino III’s mining agenda forward. We will work with his administration and other stakeholders in finding mutually acceptable solutions to the issues of revenue sharing, environmental protection, and sustainable development.”

The chamber lauded the EO’s provisions on:

• Small-scale mining. The chamber said it supports the EO’s intent to improve the small-scale mining industry and develop downstream industries. The EO mandates that small-scale operations be limited to areas declared as “minahang bayan” which in effect limits nickel operations in the country.
• Operating permits. “We appreciate the position recognizing existing operating permits,” the mining companies said. The EO imposes a ban on new mining agreements until a new revenue-sharing scheme has taken effect, but declares all existing mining contracts before the EO’s effectivity as valid.
• Consistency of local ordinances with national laws. The mining companies says the EO ensures cooperation of local government units in mining operations recognized by national laws. The EO asserts the primacy of national laws, particularly Republic Act 7492 or the Philippine Mining Act of 1995, over LGU ordinances.

Revenue sharing

The mining companies vows to cooperate with the executive and legislative branches in developing a “rational” revenue sharing scheme.

Finance Secretary Cesar Purisima said the Aquino administration wants a fiscal regime on mining that “provides greater share to the government” but “maintains competitiveness of the country as an investment destination.”

“We look forward to working with Congress and all various stakeholders in amending pertinent laws,” he said.

Environment Secretary Ramon Paje earlier said the government seeks to generate additional revenues through:

• Declaring future mining areas as mineral reservations, which will allow government to impose royalties in addition to existing taxes;
• Absorbing mining wastes such as tailings and stock pile, and selling them through competitive bidding; and
• Increasing other mining fees such as filing and occupational fees, although this will require necessary changes in the current mining law.

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