In a clear call to action, President Ferdinand R. Marcos Jr. addressed legislators last week, urging them to push for a streamlined fiscal regime for the mining industry.
“I urge all our dedicated agencies and esteemed members of Congress to support the Rationalization of the Mining Fiscal Regime,” the President stated during the 2023 Presidential Mineral Industry Environmental Award (PMIEA) ceremony at the Malacañan Palace. He emphasized the importance of this reform, describing it as “fundamental to creating a fair and equitable mining environment for everyone involved.”
The President’s call focused on a specific legislative proposal: the Rationalization of the Mining Fiscal Regime. This bill proposes a revised fiscal structure, imposing a four-tier, margin-based royalty ranging from 1.5 percent to five percent on income from mining operations outside of mineral reservations. This stands in contrast to the current system, where obligations vary depending on individual mining agreements and taxes are imposed only on mines operating within mineral reservations.
Beyond fiscal reforms, President Marcos also directed the Department of Environment and Natural Resources (DENR) to enhance its regulatory oversight of the mining sector. “It is equally vital for the DENR to strengthen regulatory capabilities for all mining operations to ensure compliance with safety and environmental standards,” he asserted. He highlighted existing regulations, such as Administrative Order No. 2022-04, which mandates biodiversity management in mining operations, and the establishment of the National Environment and Natural Resources Geospatial Database, as examples of the government’s commitment to responsible mining practices.
Further underscoring this commitment, the President pointed to the recently enacted Philippine Ecosystem and Natural Capital Accounting System (PENCAS) Act. “This landmark legislation ensures that a robust system is in place to quantify and integrate the value of our country’s natural assets into national economic planning and decision-making,” he explained. “This will enable us to better balance economic gains with environmental protection and guarantee that the true cost of resource extraction is accounted for.”
Through these pronouncements, President Marcos Jr. has made clear his administration’s vision for the Philippine mining sector: one that is both economically productive and environmentally responsible. He has called upon both legislators and regulators to play their part in realizing this vision, ensuring a sustainable and equitable future for the industry.
