COMP backs bicam version of mining fiscal reform bill

MANILA, Philippines — The reconciled version of the proposed mining fiscal reform bill by the bicameral conference committee provides a “win-win” situation for the industry and the government, the Chamber of Mines of the Philippines (COMP) said.

The reconciled version, like the versions from both chambers of Congress, proposes a shift to a mining tax regime based on profit margins and windfall earnings of companies.

“While a tax increase is inevitable, we believe this progressive and responsive approach allows the government to benefit more when global commodity prices rise, without placing undue burden on miners during market downturns,” COMP chairman Michael Toledo said.

Toledo said the industry also welcomes the removal of the proposed raw ore export ban pitched under Senate Bill (SB) 2826.

He pointed out that the decision of the bicameral conference committee is a “strategic” step toward revitalizing the country’s mining industry.

“It reflects a realistic understanding of the Philippine mining landscape – its policy context, infrastructure limitations and the technical nuances of our ore compared to other mineral-rich jurisdictions,” Toledo said.

Various mining industry stakeholders led by COMP and other groups have opposed the proposed raw ore export ban by SB 2826, arguing that it will do more harm than good for the country’s mining sector.

SB 2826 envisioned the export ban as a way to force the mining sector to create downstream industries particularly value-adding and processing. At present, the country ships out most of its mineral resources in raw ore form.

Mining industry players argued that the country’s current investment environment is not conducive for firms to venture into value processing since it is hampered by high power costs and lack of infrastructure, among others.

Toledo said the reconciled mining fiscal regime bill ensures a “fairer” and “more sustainable” government revenues while encouraging both local and foreign investment in the domestic sector, thus, strengthening the country’s role in the global clean energy supply chain.

“Just as important, this bill promotes inclusive development. When properly regulated, increased mining will boost regional economies, provide funding for host communities, and support local governments,” he said.

COMP said it looks forward to President Marcos signing the landmark legislation into law while committing that it is ready to contribute toward the development of the mining sector and the country’s economy in general.