Fri. Jun 18th, 2021

Nine-year-old ban lifted by Philippines on new mines to boost revenues

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Philippine President lifts ban on new mines to boost revenue

Philippine President Rodrigo Duterte has made an available passage for a boost in the state revenue to fund infrastructure projects and other initiatives by lifting a moratorium on new mineral agreements and other initiatives which was imposed in 2012.

This issue is an executive order that allows the government to enter into agreements for new mining projects and undertake a review of existing mining contracts and agreements for possible re-negotiation of the terms.

According to Reuters, The moratorium had been imposed while the government worked on legislation to boost the state’s share of mining revenues in one of the world’s top producers of nickel, copper and gold.

Under a tax reform law that took effect in 2018, the excise tax on minerals, mineral products and quarry resources has been doubled to 4%.

The executive order, made public by the presidential palace on Thursday but signed a day earlier, directs the Department of Environment and Natural Resources to formulate the terms and conditions in the new mineral agreements in order to maximise government revenues.

However, The department, is also tasked with strictly implementing rules on mine safety and environmental policies with the lifting of the ban.

The resources-rich Southeast Asian country is presently the biggest supplier of nickel ore to top metals consumer China, though less than 5% of its reserves of all minerals are estimated to have been extracted so far.

Mining is a highly contentious issue in the Philippines after past cases of environmental mismanagement have fuelled a strong lobby against the industry led by local governments, legislators, advocacy groups and the Catholic church.

Duterte, who had shortly after coming to office in 2016 warned miners to follow tighter environmental rules or be shut down, has upheld a ban on new open pit mines, despite a push by senior officials to soften the policy.

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