Bill on revenue sharing between gov’t, mining industry pushed

MANILA, Philippines - Lawmakers have pushed for the passage of a bill seeking to rationalize the sharing of revenues between the government and large-scale mining companies in the extraction of the country’s mineral resources.

1-BAP party-list Rep. Silvestre Bello III and Taguig City Rep. Lino Cayetano filed House Bill 3586 or “An Act Rationalizing Revenue-Sharing in the Large-Scale Metallic Mineral Resource Industry,” which seeks to set government’s share in the extraction of gold, copper, nickel, chromite and other minerals and ores.

The authors of the bill said Article XII Section 2 of the Constitution states that all lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all sources of potential energy, fisheries, forests or timber, wildlife, flora and fauna and other natural resources shall not be alienated.

The law also provides that the President may enter into agreements with foreign-owned corporations involving either technical or financial assistance for large-scale exploration, development and utilization of minerals, petroleum and other resources, they said.

“The bone of contention has always been real contributions to the economic growth and general welfare. It is undeniable that the mineral industry makes significant contributions to the country’s socio-economic growth,” the lawmakers said.

“But the question remains as to whether this significant contribution translates to more revenues and profits for the State as the owner of the resources,” they said.

Bello and Cayetano said there is a need to tone down the regulatory environment to attract more investments.

Under the bill, the government gets two to five percent of the net mining profits from gold when world prices are below $1,440 per ounce to over $2,200 per ounce.

For copper, the government gets two percent from the net mining revenue when the price of metal in the world market is below $2.50 per pound, and goes to a high of five percent if the price hits more than $4.40 per pound.

For nickel, chromite and other metallic minerals and ores, the government gets a fixed royalty of seven percent from the net mining revenue if the resource is taken within a proclaimed mineral reservation.

If extracted outside a proclaimed mineral reservation, a fixed royalty of four percent is imposed.