Changes in current mining laws backed

MANILA, Philippines - Concerned sectors agreed yesterday that there is a need to amend current laws in the mining industry. 

Mike Toledo, senior vice president for corporate affairs, of Philex Mining Corp., said the firm is open to proposals to increase the excise taxes imposed on mining operations, as well the proposal to do away with the tax incentives. 

Toledo made the statement during a Senate hearing on Philex’s rehabilitation project in the area.

According to Toledo, the Mines and Geosciences Bureau and Pollution Adjudication Board (PAB) of the Department of Environment and Natural Resources (DENR), have given their separate go-signals to the company to resume temporary operations for four months, so it can complete a P2-billion “beaching” process that is meant to fortify the repaired Tailings Pond No. 3 (TP3).

This beaching process, which was recommended by the foreign engineering experts that Philex had tapped to help the company in its P4-billion rehabilitation and remedition work, is meant “to ensure the safety of both the workers and residents of the host-communties and protect the environment—in time for the rainy season this June or July,” Toledo said.

Dismissing criticisms hurled by self-styled environmentalists against the Padcal incident, Toledo noted that their charges were “pure fiction” because there was neither toxic spill nor human casualty in the Benguet accident.

On proposals to increase taxes, Toledo said the firm is “open to a review and a study, for as long as the form of taxation is progressive, equitable and will take into consideration all the other taxes and payments and royalties that mining companies have been paying through the years.”

Environment Secretary Ramon Paje said the government is open to proposals to expand the excise tax from two percent to seven percent which is the international standard on mining.

Paje added that he is also inclined to support proposals to take away tax incentives from the mining sector.

The Department of Trade and Industry (DTI) has already removed tax holidays, Paje said, adding that the DENR will be supportive if Congress makes a law defining the terms on the matter.

“Tax holidays on mining has been removed. We have done it administratively but if Congress would want to do it through legislation, then we can do it,” Paje said.

“In effect,  what we want to have is that…we would  accept extractive industries like mining but they have to pay for it,” the DENR secretary said.

“Our share now is two percent excise tax. If we consider excise tax as a tax, then we want share. What we are asking from Congress is that Congress will ask pass a scheme that will prescribe the sharing scheme,” Paje added.