Mining royalties plunge as nickel prices fall
MANILA, Philippines – Royalties from mining firms operating in government-controlled mineral reservation sites fell 18% to P577.55 million in the first half of 2013 from P707.4 million in the same period of 2012.
The Mines and Geosciences Bureau (MGB) attributed the plunge to the drop in nickel prices.
"The drop in collections can be attributed to lower nickel prices for the period," said MGB Director Leo Jasareno.
Royalties are expected to reach P1.17 billion by yearend. In 2012, the government collected P1.57 billion in royalties.
As stipulated in the Mining Act of 1995, MGB gets 10% of the collections. The 90% goes to the national government and local government units hosting the mineral reservation sites.
These sites are situated in Zambales (Region III), Surigao del Norte, Surigao del Sur and Dinagat Islands (Region XIII).
Nickel producers such as Nickel Asia Corp. posted lower first-half earnings due to lower metal prices. – Rappler.com