PH miners issue ‘wish list’

By: Ronnel W. Domingo | 12:30 AM November 25th, 2015

THE CHAMBER of Mines of the Philippines has drawn up an industry wish list which the group hopes would guide the next administration in crafting economic policy.

The list contains policy recommendations which the group said could help boost the country’s chances of becoming industrialized, in the league of mineral-producing powerhouses.

“The MGB (Mines and Geosciences Bureau) estimates the country’s metallic and nonmetallic mineral reserves at P73.47 trillion if extracted today,” COMP said in a paper.

“But if left on the ground, there will be no mineral contribution to speak of,” it said, adding that the Philippines would remain a poor man sitting on a pot of gold.

According to COMP, the next administration must provide the policy direction considering opportunities and constraints globally and regionally.

First, the COMP said, the new administration should maintain and implement fully the Philippine Mining Act of 1995.

“The law has been in effect only from 2005 to 2010, a short five years and its effectiveness has yet to be known,” the group said.

Second, it said the current fiscal regime for mining should be retained as it yields the originally conceptualized 50-50 sharing framework between the government and the mining company.

“As estimated by the Department of Finance, the mineral production sharing agreement yielded 47 percent average effective tax rate (AETR) while the financial or technical assistance agreement indicated 61 percent,” it said.

“The proposed 71 percent AETR is onerous,” it said, referring to a new revenue-sharing scheme backed by the Palace.

Third, to enhance engagement and support of stakeholders, mining firms should be allowed to remit the concerned local government’s share of revenue directly.

Fourth, to help maintain the development of human capital, the chamber recommends that miners’ social development management plans be expanded to benefit not only the immediate communities hosting a mine, but the entire town or province.

And fifth, the COMP called for the development of an industrialization roadmap that links the upstream mining industry with the processing and manufacturing sectors.

Source: www.business.inquirer.net