By Jonathan L. Mayuga -December 28,
2018
AT least 15 mining exploration
projects look forward to the enactment of the second phase of the Tax Reform
for Acceleration and Inclusion, or TRAIN 2, to proceed to the development and
construction phase, an official of the Department of Environment and Natural
Resources (DENR) said.
DENR Undersecretary for Climate
change and Mining Concerns Analiza R. Teh said TRAIN 2 satisfies the
requirement under Executive Order (EO) 79 as it puts in place a new fiscal
regime for mining, which could possibly pave the way for the lifting of the
six-year-old moratorium for new mining projects.
There are currently 48 operating
metallic mines in the country, including eight gold mines, three copper mines,
30 nickel mines, three chromite mines and four iron mines.
Mining investment, including actual
mineral production, slowed down since EO 79 was put in place in July 2012,
owing to the atmosphere of uncertainty and the ensuing wait-and-see attitude
demonstrated by the mining industry’s big players.
This worsened following President
Duterte’s appointment of anti-mining advocate Regina Paz L. Lopez as
environment secretary, followed by a 10-month crackdown against large-scale
mining companies.
Under the current DENR leadership,
mining industry’s big players, represented by the Chamber of Mines of the
Philippines (COMP), expressed “guarded optimism” and had moved to reverse what
they described as anti-mining policies, including the moratorium on new mining
projects.
With 15 mining projects going on
stream, the country’s annual mineral production output is expected to increase.
The members of the Mining Industry
Coordinating Council (MICC), in a meeting last December 12, are in agreement
that the enactment of TRAIN 2 satisfies the requirement of EO 79 for the
possible lifting of the moratorium for new mining projects.
Once the moratorium is lifted, the DENR,
through the Mines and Geosciences Bureau, can start issuing mineral production
sharing agreements and financial and/or technical assistance agreements for new
mining projects.
Teh said the first phase of TRAIN,
which increased mining excise tax from 2 percent to 4 percent, was not enough
to lift the moratorium for new mining projects.
“There was an MICC meeting in
December. There are exploration permits about to end but because there is a
moratorium under EO 79, we posed the question to the MICC if the 4-percent
excise tax under TRAIN is enough, the DOF said the complete package will come
under TRAIN 2,” she said.
The House of Representatives has
transmitted its version of TRAIN 2 to the Senate. Teh said, based on
information she got from the MGB, 15 mining projects in the exploration phase
are maturing. But these projects may have to wait until the proposed
measure is finally signed into law.
Upon satisfying all requirements
under Republic Act 7942 or the Philippine Mining Act of 1995, a project may then
proceed from exploration, the first phase of the project, to the development
and construction phases.
However, Teh clarified the DENR has
yet to resolve the controversial ban on open-pit mining method.
“Of course, there’s still the issue
about open-pit. Another possible restriction is if the company is being
investigated for other violations,” she said.
The ban on prospective open-pit
mining applies only to select ores – including gold, copper, silver and
complexed ores, although some mining companies have appealed to have the
open-pit mining ban revoked.
Teh said the MGB will continue to
conduct an assessment whether a mining company may proceed to the development
and construction phase upon successfully conducting the feasibility of the
mineral potential of the area they applied for.
“Of course, a positive factor to be
considered is the contribution to the economy and employment,” she said.
