Govt forms inter-agency body to probe gold smuggling, small-scale mining

MANILA – The government has formed an inter-agency committee that would look into illegal small-scale mining activity and gold smuggling, the Mines and Geosciences Bureau said on Tuesday.

“We are not blinking on our drive against illegal mining in the country, particularly the filing of complaints against irresponsible personalities,” Leo Jasareno, MGB director, said.

The committee is composed of the Departments of Interior and Local Government, of Environment and Natural Resources, and of Justice.

On Monday, the inter-agency committee conducted its first meeting presided by Justice Secretary Leila de Lima and Environment Secretary Ramon Paje. The group focused on the need for a judicial inquiry into the growing incidence of illegal small-scale mining operations and the sale of gold in the black market.

In the first six months of the year, the value of the country’s metallic mineral output dropped by 26 percent to P51.2 billion from P69.2 billion a year ago. The government blamed this on the 95 percent decline in the gold purchases of the Bangko Sentral ng Pilipinas.

Jasareno said the substantial drop in BSP’s gold purchases from small-scale miners and traders was a telling factor for the sluggish performance.

He said gold production nosedived to 8,382 kilograms valued at P18.18 billion, from 22,804 kilograms worth P44.52 billion in 2011.

The BSP gold purchases accounted for a measly 786 kilograms as against the 15,003-kilogram contribution a year ago.

“In effect, the BSP gold purchases shared only a dismal 9.37 percent of the entire gold production, compared to 74 percent a year ago,” Jasareno said.

The DENR traced the drop in gold purchases to the second semester of 2011 when the Bureau of Internal Revenue intensified collection of the two percent excise tax and 10 percent creditable withholding tax from the sale of gold by small-scale miners and traders.

The BSP, through its five buying stations in Baguio City, Davao City, Zamboanga City, Naga City and Quezon City, deducts the corresponding taxes from small-scale miners and traders and remits the same to the BIR. –Orti Despuez, InterAksyon.com