MICC to come up with revenue sharing scheme for mining projects

MANILA, Philippines - The government hopes to come up with a revenue-sharing formula for mining projects by next month, a Cabinet official said.

“By mid-May there will be a more defined formula (for revenue-sharing on mining),” Trade Secretary Gregory Domingo told reporters yesterday.

He added that the Mining Industry Coordinating Council (MICC) aims to have a draft bill for the revenue-sharing scheme by the end of next month or June.

The MICC wants to finish the draft bill by that time as the 16th Congress will open in July.

The MICC is a joint committee of the Economic Development Cluster and the Climate Change Cluster created by Executive Order (EO) 79 or the mining policy released last year. The MICC is tasked to draw up the new policy and draft legislation for a new mining revenue scheme.

Domingo said the government intends to have the revenue-sharing scheme for mining passed by the end of the year.

“Our timetable is by the end of the year. It’s not something we are pushing right now,” he said.

Domingo said earlier the government wants to set a minimum amount mining firms have to pay the state, regardless of whether they make profit from their operations or not.

As mining activities cause disturbance and pose risks to the environment, he said there must be adequate compensation to the government.

A Financial or Technical Assistance Agreement for mining requires 50-50 sharing of revenues between the firm and the government.

A Mineral Production Sharing Agreement meanwhile, specifies a two percent excise tax of gross sales of production a mining firm must remit to the government.