The Senate is weighing a longer grace period for miners before the raw ore export ban takes effect, as the proposed five-year timeline under the Mining Fiscal Regime law is seen as too short.
Senate Bill No. 2826 mandates a five-year period for miners to build local processing plants before the export ban is enforced. The provision aims to encourage domestic mineral processing and reduce reliance on raw ore exports. The House of Representatives version of the bill does not include this clause.
Business World reported that Senator Joseph Victor Ejercito, who sponsored the bill, said extending the timeline is under discussion in the bicameral conference committee.
The Senate’s proposal also includes a five-tier, margin-based royalty system ranging from 1% to 5%, alongside a windfall profit tax from 1% to 10%. The House version suggests an eight-tier royalty structure from 1.5% to 5%, and a 10-tier windfall profit tax with the same 1% to 10% rates.
Ejercito expressed concerns about imposing additional taxes on ore exports, warning that it could deter investment and harm the mining sector.
The Chamber of Mines of the Philippines (COMP) has also raised concerns, warning that the export ban could lead to mine closures and job losses.
Data from the Mines and Geosciences Bureau show the value of metallic mineral production rose 3.17% to P195.92 billion in the first nine months of 2024 compared to the previous year.
Lawmakers are expected to finalize the bill after the congressional recess in June.
As the government balances industry growth with resource sustainability, stakeholders await the final decision on the grace period and export ban. Stay informed and share your thoughts on this potential shift in the mining sector’s future by tuning in to AngMinero.
