New mining strategy goes for ‘balance’

Written by Max V. de Leon / Reporter

SUNDAY, 26 SEPTEMBER 2010 11:27

THE government is coming up with a new strategy to promote investments in the mining sector that will consider the inputs of all the opposing interest groups, including the Church, civic groups and small- and large-scale miners. “We are reviewing how to promote this industry. Right now it is very complicated with all the various interests opposing each other. We have the small and big mining companies, the Church, indigenous peoples and local government units,” Trade Secretary Gregory Domingo said. The Trade chief conceded that it is hard for the sector to really take off because of these opposing interests. But for sure, Domingo said the government would be aggressively promoting the mining sector to take advantage of the rich mineral resources in the country. “We have so much wealth, and we would like to generate jobs and revenues,” he said. The Mines and Geosciences Bureau expects the gross value of mineral production this year to reach P138.5 billion, or about 30 percent higher than in 2009. This will lead to minerals and mineral-products exports of about $2.98 billion. Also, taxes, fees and royalties could amount to P10 billion. Domingo said in coming out with a new promotions strategy, the government will be talking to all the interest groups to get all their inputs and craft a solution to mend their conflicting views. The idea, Domingo said, is “to make everyone slightly unhappy,” which is the best condition in meeting the interests of conflicting groups. Mining is one of the Top 6 sectors the administration is prioritizing, including tourism, business-process outsourcing, infrastructure and agribusiness. The Investment Priorities Plan provides incentives to mineral extraction and processing, including up to eight years of income-tax holiday and duty-free importation of capital equipment.