INQUIRER FILE PHOTO
KORONADAL CITY, South Cotabato, Philippines — Sagittarius Mines Inc. (SMI), operator of the $5.9-billion Tampakan project in South Cotabato province, has filed a petition for review and temporary restraining order against its host local government unit (LGU) for demanding tax dues worth P397 million from the company.
Tampakan Mayor Leonard Escobillo confirmed on Wednesday that his office last week received a copy of the civil case filed by SMI against the local government.
Escobillo earlier ordered the municipal treasurer to reevaluate the taxes paid by all business establishments operating in the town over the past few years.
Deficiencies
The assessment made by the local treasurer found SMI to have deficiencies for business tax covering the years 2020 to 2022 and mayor’s permit fees and other regulatory fees from 2013 to 2022.
“We have sent them three notices to settle their tax obligations but to no avail. I am just implementing our local (tax) ordinance which has been in effect since 2012,” the mayor told the Inquirer in a telephone interview.
He said the local government was willing to discuss a settlement but the company decided instead to bring the case to court.
SMI on Wednesday had yet to issue a media statement on the petition it filed against the local government.
The Tampakan project has been touted the largest undeveloped copper-gold minefield in Southeast Asia and among the largest of its kind in the world.
Based on a company study, the project has the potential to yield an average of 375,000 tons of copper and 360,000 ounces of gold in concentrate per year in the 17-year life of the mine.
The national government earlier granted SMI a 25-year Financial and Technical Assistance Agreement (FTAA), which expired on March 21, 2020, upon which SMI sought a 12-year extension until March 21, 2031, which can still be renewed for another 25 years.
The company’s request for an extension has been granted. Its FTAA covers about 10,000 hectares straddling the towns of Tampakan in South Cotabato, Kiblawan in Davao del Sur, and Columbio in Sultan Kudarat.
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