Vizcaya doubles taxes on mining operations



BAYOMBONG, Nueva Vizcaya—In a move seen to discourage the entry of more foreign mining companies, the provincial government has enacted an ordinance that will increase taxes on mineral lands starting next year.

Gov. Luisa Lloren-Cuaresma has signed into law Tax Ordinance 2012-003, which increases by 100 percent real property taxes that will be collected from mineral-rich areas, including those covered by two existing large-scale mining projects in the province.

The governor said the ordinance should not be interpreted as a policy indicating that Nueva Vizcaya has softened its stance against mining.

“This is a measure that will ensure that we, the people of Nueva Vizcaya, will get the benefits that are due us from the operations of the mining projects [that are] already existing,” she said.

“In fact, this is meant to scare off other companies, especially the foreign ones, which may express interest in extracting our mining resources in the future,” she said.

The new ordinance will have an effect on the real property tax obligations of OceanaGold Philippines Inc. and FCF Minerals Inc., two Australian mining companies that were granted licenses to conduct mining operations in the province, said Rhoda Moreno, acting provincial treasurer.

OceanaGold is developing a gold-copper mining project in upland Didipio village in Kasibu town while FCF has invested in a gold-molybdenum project in Runruno village in nearby Quezon town.

“The passage of this ordinance was borne out of the impending operation of these two large-scale mining companies. We realized that there are yet provisions under our current tax code that covers mineral areas,” Moreno said.

Records show that a number of lands encompassed by the OceanaGold mine site in Didipio are agricultural lands that are valued at P35,000 a hectare.

Only 128 parcels of land in these mineral-rich areas have been declared qualified for real property examination and taxation that generated P1.2 million in revenues this year, the treasurer’s office said.

The ordinance sets four classifications for ore-rich areas.

Areas classified as mineral production sites will be taxed according to the volume of minerals extracted by the companies, Moreno said. Melvin Gascon, Inquirer Northern Luzon

Get Inquirer updates while on the go, add us on these apps:

Inquirer Viber

Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.

  • 1GeorgeTolentino2

    Yes!! Bravo Gov. Cuaresma. You just showed many pa-macho Governors in the country how to deal with his arrogant foreign companies. Ironically a lady Governor is the only one who has balls!

  • Fred

    Will it not encourage other mining companies to invest in the province?
    After all, the upgraded tax rates are “chicken feed” with what these miners will earn!

  • charles

    triple, or even quadruple the taxes levied on these mining companies!..they’re the ones wrecking the land, and ruining soil and water quality…

To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.

Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:

c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City,Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


editors' picks



latest videos