President Marcos Jr. yesterday called on legislators to pursue a rationalized mining fiscal regime which he said is fundamental to creating a fair and equitable mining environment in the country.
The President, at the 2023 Presidential Mineral Industry Environmental Award (PMIEA) awarding ceremony in Malacañang yesterday, also directed the Department of Environment and Natural Resources (DENR) to strengthen the regulatory capabilities of mining operations to ensure compliance with safety and environmental standards.
“I urge all our dedicated agencies and esteemed members of Congress to support the Rationalization of the Mining Fiscal Regime. This crucial bill, which I highlighted in my 2023 SONA (State of the Nation Address), is fundamental to creating a fair and equitable mining environment for everyone involved” he said in his speech.
The bill seeks to revise the current mining fiscal system by imposing a four-tier, margin-based royalty ranging from 1.5 percent to five percent on income from mining operations outside of mineral reservations.
At present, taxes paid by mining groups and companies vary depending on the mining agreement.
The current taxes are also imposed only for mines operating within a mineral reservation.
The President said at present, the government is also implementing regulations under Administrative Order No. 2022-04 which mandate biodiversity management in mining operations.
The AO also calls for the establishment of the National Environment and Natural Resources Geospatial Database which reflects the government’s commitment to responsible practice, and the Philippine Ecosystem and Natural Capital Accounting System (PENCAS) Act, which emphasizes the dedication to sustainable resources management.
Marcos said PENCAS ensures that a robust system is in place to quantify and integrate the value of the country’s natural assets into national economic planning and decision-making, as well as provide a balance between economic gains with environmental protection, and guarantee that the true cost of resource extraction is accounted for.”
Awardees
During the event, the President conferred the 2023 PMIEA awards on 13 companies who were recognized for their commitment and adherence to responsible mining and their support to social services that benefit the public.
Marcos also recognized the awardees for their investments in environmental technologies and for their adoption of best practices, from pioneering reforestation efforts to utilizing more sustainable extraction techniques.
“Your meaningful contributions to the host and neighboring communities through education, healthcare, and livelihood programs are truly inspiring. These initiatives demonstrate how we can unite the industry with the goals of social and environmental progress,” he added.
The 13 awardees, chosen from 35 companies, that competed include Coral Bay Nickel Corp. and Philippine Mining Service Corp.-Alcoy Plant (in the Surface Mining Operation, Quarry Operation, and Mineral Processing categories (Mineral Processing category).
The other awardees are: Republic Cement & Building Materials Inc. — Batangas; Eagle Cement Corp.; Helix Resources and Development Corp. and Republic Cement & Building Materials, Inc. — Teresa.
Also awarded were Cagdianao Mining Corp., CTP Construction and Mining Corp.; Eramen Minerals Inc.; Hinatuan Mining Corporation-Tagana-an Nickel Project; FCF Minerals Corp; Zambales Diversified Metals Corp. and; Taganito Mining Corp..
Illegal operation
As this developed, Loyzaga said the government is currently building up a case against operators of a suspected illegal mineral reprocessing plant in Paracale in Camarines Norte where several Chinese nationals were allegedly employed.
Yulo-Loyzaga said the DENR is working with the Bureau of Immigration (BI) and the Presidential Anti-Organized Crime Commission (PAOCC) — which led the joint raid operation last Sunday against the mining facility in Barangay Tugos.
She said the small-scale mining firm had secured a permit in 2023 but it was later found to be conducting business beyond its authorized area of operation.
“They have been found to be operating beyond the area that they have been permitted to operate…there is the presence of foreign workers,” she added, referring to the 11 Chinese nationals who were arrested during the raid and are undergoing inquest proceedings for violation of immigration laws.
Yulo-Loyzaga said this is not the first time Chinese nationals were arrested in connection with mining, referring to the five Chinese nationals who were arrested last year for alleged illegal extraction of minerals in Misamis Oriental.
