Mining industry to face higher taxes, stricter environmental measures — PNoy

The national government intends to impose far heavier taxes and tougher environmental restrictions on the mining industry, President Benigno Aquino said Tuesday.

Aquino told Agence France Presse (AFP) in an interview that a review of the country’s mining policies was close to being finished, and the government would likely require all mining companies to start paying the government a “hefty” percentage of revenues.

Aquino said the government currently only received a two percent excise tax.

“We are now reviewing what is fair… we get two percent of the profit and 100 percent of the risks. That doesn’t seem fair,” he said.

Aquino said the government was looking at efforts by the Australian government to generate more money from the mining sector, where a 30-percent tax on extraordinary profits of coal and ore producers will start in July.

He said a 50-50 revenue sharing agreement was even being considered, although he emphasized the policy had not been finalized and refused to signal what percentage the government was hoping for other than a “fair share”.

The Philippines is believed to have some of the biggest mineral reserves in the world — the government estimates the country has at least $840 billion in gold, copper, nickel, chromite, manganese, silver and iron. — Agence France Presse