2014 mining royalty payment doubles to P2.69B

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5% of production value

The Mines and Geosciences Bureau (MGB) yesterday reported that the government’s share in new mining operations more than doubled to P2.69 billion last year from P1.31 billion in 2013. These new mines are in government-declared mineral reservation areas in Zambales , Surigao del Norte, Surigao del Sur and Dinagat Islands

The amount represents 5 percent of the market value of the total gross output of minerals produced in 2014. The government take is near the sharing target envisioned under the new mining law.

MGB Director Leo Jasareno said the increase in collections resulted from higher production specially of nickel. Latest data available showed that as of the third quarter of last year, the country’s total metallic mineral production value increased by 37 percent to P102.5 billion due to higher nickel, copper and gold prices.


The Mining Act of 1995 stipulates that 10 percent of the collection shall be used by the MGB for special projects and administrative expenses related to the exploration and development of other mineral reservations.

The other 90 percent will be divided between the national government (60 percent) and the local government units (40 percent) where the minerals are located.

Joint Circular 2010-1 between the Department of Environment and Natural Resources, Department of Finance, Department of Budget and Management, and Department of the Interior and Local Government provides the guidelines on the release of the share of local government units from royalty payments.

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