MANILA, Philippines - The economic cluster is making a comprehensive study on the mining industry for possible changes in the Mining Act.
The study aims to unite the government to a single view on mining. Currently different government agencies are divided in the issue of mining.
“The economic cluster is in the process of formulating a comprehensive analysis on the mining industry. Once they come up with their stand they will convince (President Aquino) to share that position,” an industry insider said.
The source, who spoke on condition of anonymity, said that the economic cluster is promoting responsible mining, some members feel that the two percent excise tax for under the Mining Law of 1995 is “too conservative” compared to what the country is giving to the mining firms.
The source noted that majority of the mining companies consulted are amenable to higher excise tax provided that it will be pegged to metal prices. For instance, if the metal prices are high then the excise tax will be higher but if metal prices drop then excise tax will also go down. The base excise tax will still be two percent.
“The economic managers are pro-responsible mining provided the excise tax is re-evaluated,” the insider said.
The source said it is vital to pursue responsible mining because of the help it can give both to the economy and the host community. The current set up of protesting responsible mining and then allowing small scale miners to profit is detrimental to the country as not only do small miners create more harm to the environment, they do not put up programs for the local community and they also do not have the excise tax.
The source said the position may be to ban small mining and instead allow only responsible miners who will help build communities and pay the right taxes.
The country can double its $1 billion exports in the mining industry once the industry goes full steam ahead. Exports will jump to $10 billion in two to three years with responsible mining, the source said.