MGB to review miners’ operations

MANILA, Philippines - Over the next three months, the Mines and Geosciences Bureau (MGB) will review the operations of mining companies nationwide to determine the state of their compliance with environmental laws and other regulations governing the extractive industry.

In a phone interview yesterday, MGB Director Leo Jasareno said the review of existing mining operations in the country would be done pursuant to the new mining policy.

Section 3 of Executive Order No. 79 states that a periodic review of mining operations should be conducted to ensure compliance with environmental standards and regulations governing the mining industry.

The review is also intended to enable the government to “rationalize the management and utilization of minerals toward sustainable development.”

Jasareno said the review, which would be held every two years, should be conducted by  multi-stakeholder teams composed of representatives from government agencies, local government units and civil organizations.

The government would be represented in the team by the Department of Environment and Natural Resources (DENR), MGB, Department of Interior and Local Government (DILG), Department of Trade and Industry (DTI) and Department of Finance (DOF).

Jasareno said organization of the teams for 15 regions is ongoing.

The review would be focused on environmental compliance of companies but the assessment teams would also look into the production aspect of over 36 actively operating mines in the country.

 â€œThe review may also look into other aspects such as volume of production, payment of taxes and pricing of mine products,” said Jasareno.

Jasareno said the outcome of the review would guide the government in enforcing existing laws and regulations related to mining and influence policy-making for the industry.

“The review will have both enforcement and policy implications,” he said.

The review coincides with the drafting of a new revenue sharing scheme between the government and mining companies.

Environment Secretary Ramon Paje said earlier that the draft bill prepared by the Mining Industry Coordinating Council (MICC) stipulates a government share of 7-percent to 10 percent to be obtained from gross earnings and windfall earnings of mining firms.

He said that of the proposed range of government share from mining revenues, the bulk should ideally come from gross revenues so that the government would have a guaranteed income should the company not have windfall earnings.

The enlarged government share from mining revenues replaces the two percent excise tax as well as other taxes imposed on companies such as corporate income tax, customs duties and fees on imported capital equipment among others.

The MICC intends to have the bill certified as urgent before the opening of the 16th Congress.