Senate President Francis G. Escudero has called for a comprehensive review of the country’s mining laws, citing that 130 of 378 mineral production agreements are currently inactive.
In a Business World report, Escudero said in Senate Resolution No. 1310 filed on February 5 that these dormant permits hinder the government from granting licenses to other potential operators, thus stalling economic growth in the mining sector.
According to data from the Mines and Geosciences Bureau (MGB), only 248 agreements are active, which limits the sector’s contribution to the economy. In 2023, mining and quarrying accounted for merely 0.71% of the country’s gross domestic product, while taxes and royalties from the industry totaled Php 41.72 billion or 1.2% of national tax revenues.
Escudero pointed out that better management and utilization of these permits could unlock significant opportunities for economic growth and employment.
The resolution comes amid legislative efforts to overhaul the mining tax regime. The Senate recently passed a bill imposing a five-tier royalty and windfall profit system to increase government earnings from mining operations while banning raw ore exports to encourage domestic processing.
The inactive agreements underscore inefficiencies in the permit approval process and the overall management of mineral resources, Escudero added.
As discussions continue on mining reforms, the Finance department projects Php 6.26 billion in additional revenue from the proposed mining tax system, which would require large-scale miners to pay up to 5% of their gross output.
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