The Department of Environment and Natural Resources (DENR) is reportedly eyeing to lift the moratorium on the approval of new mining projects in the country.
The Manila Bulletin reported Sunday that DENR undersecretary Analiza Teh said the agency had already proposed to the Mineral Industry Coordinating Council (MICC) to begin the discussions on the lifting of the ban on new mining projects under Executive Order (EO) 79 issued by former President Benigno Aquino III.
Under EO 79 signed by Aquino in 2012, concerned agencies can only approve new mineral agreements once a legislation that would rationalize revenue sharing schemes and mechanisms takes effect.
The MICC is an inter-agency council chaired by the secretaries of the DENR and Department of Finance (DOF).
Local reports stated the condition under the said EO might have already been fulfilled following the increase in mining excise tax rate to four percent from two percent, and the proposal to impose a five percent royalty on all mining operations.
However, Mines and Geosciences Bureau Assistant (MGB) Director Danilo Uykieng said the DOF told them the two percent excise tax increase imposed on mining “could not be considered a new fiscal regime,” the Manila Bulletin reported.
Finance Department has proposed the imposition of a five percent royalty on all mining companies, and is reportedly drafting a mining tax reform proposal based on the previous proposal in congress stating the government should get a ten percent share of the gross revenue of mining operations in country.
The Chamber of Mines (COMP) has expressed deep concern over the proposal, noting it would have huge impact on the mining sector which is currently struggling financially due to higher taxes under the TRAIN law.
Full review
Meanwhile, the MICC would release its full review of 26 mining firms currently under a closure order by the last week of this month.
“Our timeline with Secretary [Roy A. Cimatu] is once they submitted their report, give us at least a week and then we will draft the orders for resolving the motions for reconsideration, for action by the Secretary,” Teh was quoted as saying in a Business World report.
The mining firms were ordered closed by former DENR Chief Gina Lopez due to alleged environmental violations.
