MANILA, Philippines - Government collection of royalties from mining companies operating within mineral reservation areas fell to P577.55 million in the first half of the year on lower nickel prices, the Mines and Geosciences Bureau (MGB) said yesterday.
The first half collection represents five percent of the gross market value of minerals produced during the period.
In the first semester of last year, royalties collected from firms operating in mineral reservation sites reached P707.4 million. In 2012, royalty earnings reached P1.57 billion.
This year, total royalty earnings from mineral reservation areas is expected to reach P1.17 billion.
“The drop in collections can be attributed to lower nickel prices for the period,†said MGB director Leo Jasareno.
The government-declared mineral reservation sites are located in Zambales province in Region III and Surigao del Norte, Surigao del Sur and Dinagat Islands in Region XIII.
The Mining Act of 1995 stipulates that 10 percent of the collection should be used by the MGB for special projects and administrative expenses related to the exploration and development of other mineral reservations.
The remaining 90 percent should be divided between the National Government and the local government units hosting the mineral reservation sites.
Nickel sulphides production and nickel direct ore shipments are traditionally the top contributors to domestic metal production value.
In 2012, these contributed 46 percent – P46.03 billion – of the total metal production value for 2012.
Several nickel producing companies reported lower incomes in the first six months of the year on falling nickel prices.
The MGB has yet to release the metal production value data for 2013.