Modernizing Government Regulations (MGR) Program
2019 Regulatory Review – Mining
Based on initial survey results of industry stakeholders, these are the regulations that are difficult to comply with:
- Policy uncertainties abound. Since 2011, government has not actively pursued investments in minerals development, focusing instead on reviewing the fiscal regime for mining;
- EO79 (2012) Moratorium on new mining permits until a new mining tax regime is legislated. In the TRAIN 1 package of tax reforms, the excise tax on mining has doubled from 2% to 4% of gross output. The MICC has stated that such increase is not enough to recommend the lifting of the moratorium.
- DENR AO 2017-10: Ban on open pit mining, instituted during the time of the former DENR Secretary, but currently remains in place.
- MINE CLOSURES ORDERED BY SEC. GINA LOPEZ. Over 20 mines were served with closure orders following an audit. With closure orders on appeal, these mines continue to operate, albeit under a cloud.
- LEGACY MINES: Quite a number of old, closed-down mines have not undergone rehabilitation. Although belonging to a different era, they remain as points of attack for the anti-mining groups.
- The DENR and MGB have yet to come out with a clear policy to promote and reinvigorate investments in the mining and minerals processing sector.
- SINGLE VIEW OF THE INDUSTRY: No distinction among the general public of the difference between the formal large-scale sector and the largely illegal small-scale, another contributor to the poor image of the industry.
- PERCEPTION THAT THE INDUSTRY IS NOT PAYING ENOUGH TAXES. As a result, the DOF and Congress have pushed for an overhaul of the fiscal regime for mining, proposing a new royalty and windfall profits tax.
- The Philippine mining industry is now in deep freeze. No new mining agreements have been approved and even projects with approved ECCs and DMPFs have not moved forward.
Source:
Atty. Ron S. Recidoro, Executive Director, Chamber of Mines of the Philippines. Presented during the 2019 MGR Forum on Industry Regulatory Review, 15 May 2019.