Mining roadmap to lift up sector

By Louise Maureen Simeon (The Philippine Star) | Updated August 30, 2016 - 12:00am

http://www.philstar.com/business/2016/08/30/1618464/mining-roadmap-lift-sector

MANILA, Philippines - The completion of the mining industry roadmap would likely propel the sector and significantly improve its contribution to the economy, an official from the National Economic Development Authority (NEDA) said.

The roadmap for strategic metallic minerals started during the last administration and is still ongoing. The roadmap for copper has been completed while that of  gold and nickel are still being finalized.

“We’re hopeful it will be finished towards the middle of the administration. We really need the roadmap to see where things are going,” NEDA-Agriculture, Environment and Natural Resources director Mercedita Sombilla said.

Sombilla said the roadmap would allow the country to weigh the potential of downstream development of minerals or the creation of domestic mineral processing plants.

“It will dictate the feasibility of really going downstream and up to what extent, the structure and directions, capacity building, and how will that be linked to primary activities that are now being done,” she said.

Sombilla also sought the passage of a new fiscal regime and revenue sharing arrangement given the measly contribution of the industry to the overall national economy.

The share of mining to exports remains at 5.1 percent in the last 10 years and the Philippines is at the bottom compared to other countries that are exporting minerals.

In terms of tax contributions, the government collects only 12 percent from mining companies, significantly lower than other mining-producing countries such as Chile and Indonesia at 23.1 percent and 20 percent, respectively.

Meanwhile, the NEDA official also lauded the ongoing audit on all mining firms.

“This will provide us directions on where mining will go. Some of those in place may continue, some will be strengthened and some might be demoted,” she said.

Sombilla, however, urged Environment Secretary Gina Lopez to consider the impact of the government crackdown on the economy.

“One thing is very clear, the total closure of mining will have some impact on our GDP (gross domestic product),” she said.

“It has to be responsible where people would benefit, not just the economic part but the environment and social as well. We have to come up with a balance to promote the mining industry,” Sombilla added.