‘Mining should be part of government priority projects’

MANILA, Philippines — The government should include mining in its investment priority projects and extend more fiscal incentives to further attract investments in the sector, according to the Chamber of Mines of the Philippines.

COMP chairman Michael Toledo, who is also COO of Silangan Mindanao Mining Co., said these perks must be provided particularly to mining projects that will “significantly” boost employment and economy in their area of operations.

“There should be ways to facilitate the permitting and regulation of mining projects,” Toledo said.

The renewed interest of the Marcos administration in mining is a welcome development to the industry, he said, but added that “a lot” still needed to be done to achieve the full potential of the sector.

“Clearly, our government is doing the right things to improve the Philippines’ position in the global effort toward energy transition given that our country is rich in metals such as nickel and copper,” Toledo said.

“We, in the Philippine metallic mining industry would like to participate and take advantage of opportunities presented by this development,” he added.

Aside from the fiscal incentives, Toledo proposed the immediate passage into law of a “progressive” and “competitive” mining fiscal regime embodied in House Bill 8937, which seeks to impose a four percent royalty rate of the gross mineral output of large-scale metallic mining operations within mineral reservations.

The House of Representatives already approved the measure on third and final reading.

Meanwhile, a margin-based royalty on the income of large-scale metallic mines operating outside mineral reservations will be implemented.

There is currently no counterpart bill filed at the Senate for the rationalization of the country’s mining fiscal regime.

Toledo also proposed the “harmonization” of national and local laws on mining and taxation as well as fast-tracking of initiatives relating to ease of doing business.