Business groups back mining industry

Manila, Philippines – The Chamber of Mines, along with the Philippine Chamber of Commerce and Industry, the Australian-New Zealand Chamber of Commerce, the Australia Philippines Business Council and the Philippine Australia Business Council has come out with a consolidated position paper on mineral resource development.

Among the points that they have raised is an opposition to any additional tax impositions, a firm and clear stand by the National Government on open pit mining and small-scale mining, implementation of an extractive industry transparency initiative, and a clear policy on indigenous peoples.

The position paper pointed out that confusion and concern among local and foreign investors has resulted following the proposal to increase mining revenue from the mining industry by declaring

current mining operations and those in advanced state of development as mineral reservation which would then be subject to an additional five percent royalty on top of the current two percent excise tax.

The COMP, PCCI, ANZCHAM, APBC and PABC said the government should instead “issue a clear statement on how the country intends to intensify the mining industry’s growth as one of the priority industries by way of establishing a stable investment environment without any additional tax imposition.”

The consolidated position paper also cited a slowdown in major projects and expenditure flows due to the general mining ban imposed in some areas, as well as an open pit mining ban – actions which have driven some investors to look beyond the Philippines for mining investments.

According to the joint paper of the various business chambers, “the Philippine Government has to act decisively on this matter to bring an end to provincial ordinances that defy national law and that damage international confidence in the country’s mining investment policies.”

The different business chambers also noted the proliferation of unregulated small-scale mining.

According to the chambers’ paper, “there is a need to resolve issues surrounding small scale mining activities. Regulation, control and supervision of small scale mining should be with the DENR until the LGUs have attained the technical competence to deal with mining operations, as well as the fiscal, health and environmental issues facing the mining industry.”

The COMP, along with foreign mining investors, are pushing for the implementation of an initiative designed to stamp out corruption and improve transparency in permit issuance and tax payments.

Lastly, the different chambers noted that the implementation of IPRA (Indigenous Peoples Rights Act) that aims to protect the rights of indigenous peoples has caused conflicts on the ground.

They pointed out that there have been concerns on the overlap of ancestral domain/land claims on mineral production sharing agreement (MPSA) areas and areas already granted exploration permits.

As such, they said “there is a need to explore social and legal platforms as to how responsible minerals development can interface with indigenous peoples. Important consideration on the part of the industry is the time frame in granting ancestral domain/ancestral land claims as well as parameters in time immemorial consideration of who are considered indigenous peoples.” –Marianne V. Go (The Philippine Star)