Mining issues to be addressed — gov’t

CANBERRA — The Aquino administration will work out a “political solution” to problems hounding mining investments in the country, the Trade department said as it issued assurances of support in a meeting with counterparts in Australia, a major mining investor.

There will be no piecemeal solutions, Trade Secretary Gregory L. Domingo said in addressing concerns aired by four business groups over a plan to hike taxes as well as local government intervention.

“Were tackling mining issues as a whole … [what’s needed is a] political solution and not just an investment solution,” he told reporters in a press conference concluding the Philippines-Australia Ministerial Meeting.

In a Wednesday dialogue with Australian and Philippine trade officials, businessmen called on Manila to hold off from tightening mining regulations, rejecting an Environment department plan to declare mines as “mineral reservations” to hike tax revenues.

The Philippine government also has to “act decisively … to bring an end to provincial ordinances that defy national law,” they said, pointing to North Cotabato’s ban on open-pit mining that is threatening to derail the $5.9-billion Tampakan copper-gold project.

In a joint statement, Manila and Canberra said both sides “agreed on the potential of the mining sector to generate significant economic and development benefits for the Philippines, as it had for Australia.”

“They welcomed the increasing Australian investment in the Philippine mining sector and noted that Australian expertise in sustainable mining practices and mining technology services could assist the development of responsible mining in the Philippines.”

More mineral sites are still waiting to be tapped, with Trade department data showing that only 420,000 hectares have been registered out of a total 8.6 million hectares.

Australia will host a second joint working group on mining in the second semester. A “high-level mining delegation” will also be sent by the Philippines to Australia, the joint statement said. No date was specified.

Commenting on the Environment department’s plan to declare more mining sites as “mineral reservations” to allow the collection of an additional 5% royalty on top of the current 2% excise tax, Mr. Domingo said an “equitable arrangement” was being worked out.

He said miners were already paying various taxes equivalent to 15-18% of gross revenues, which is “fair.”

“I reassured [businessmen] that the president (Benigno S. C. Aquino III) himself will be personally involved in [resolving problems in] mining,” he said. But the government will make sure investors observe “responsible mining” and “fair sharing” of returns.

In a separate interview, Trade Undersecretary Adrian S. Cristobal, Jr. said the mining sector remained a priority.

“There are really issues and challenges in mining but that’s not unusual in mining for any country,” he said. “There are policies and laws that will have to be reviewed.” –FELIPE F. SALVOSA II, Research Head, Businessworld