Aquino: Mining EO out soon; talks are on revenue share

BAGUIO CITY—The Aquino administration will soon come out with its mining policy as discussions now center on the government’s “fair” share of mining revenues.

“We want to ensure we get a fair share,” President Benigno Aquino III said, noting that one of the details being discussed by the government and stakeholders was “what represents fair” in terms of the government’s share from mining extractions by mining firms.

Just recently, the President said Malacañang hosted a big meeting of various departments, agencies and stakeholders to discuss the proposed mining policy.

He said he had been following up on the progress of the discussions.

“They tell me that they are very close to submitting it to me for final approval,” Mr.  Aquino said of the much-awaited Executive Order that would spell out the government’s new mining policy.

Speaking to Palace reporters at the Mansion—the official residence of the President here, Mr. Aquino reiterated that banning mining was not the solution and that the government would allow small scale mining.

He also expressed the desire for the government to be part of the process of mining, as well as in “maximiz(ing) the utility of the resource for our people.”

He noted that, at present, the government only received a two-percent tax from mining firms extracting mineral resources from the ground.

“The two percent takes care of everything that might happen if there is a disaster,” Mr. Aquino said as he noted that “those who remember” the Marinduque mining disaster of decades ago and “the promises that were made there are really very wary.”

Asked if the government would follow Australia which has imposed a 30-percent tax on mining revenues, the President said there were even proposals for a 50-50 percent sharing of revenues between the government and mining firms.

“But until I get the proposed changes in the (mining) policy and the reasoning behind each and every facet of this new policy, I feel it’s not proper for me to comment at this time. Because you are letting a lot of people work and then you will not take a look at their advice,” he said.

Noting the complexity of the issue, the President said there were many things still to consider in the crafting of the mining EO.

These include a recent Department of Tourism input which identified 78 ecotourism sites “where we will not allow, in all probability, mining,” according to Mr. Aquino.

“It will be too much of a risk, especially given the fact that they just reported that we’re on track to surpass the growth in tourism arrivals,” he said.

Mining firms have been eagerly waiting for the EO to come out.

Environment Secretary Ramon J.P. Paje said earlier that expanding the implementation of the proposed 5-percent royalty under existing regulations for mines operating in mineral reservations and the proposed 50-50 sharing of revenue were discussed.

Paje noted that of 31 medium- and large-scale mining companies, 11 were currently paying the 5-percent royalty on top of the 2 percent excise tax under existing laws.

“The remaining major point of contention is on revenue-sharing,” Paje said.