Go for new mines


The government will allow mining companies to operate new projects provided that they will pay the higher tax or higher government share on their profits as proposed under the new mining law.

Department of Environment and Natural Resources secretary Ramon Paje said that the Mineral Industry Coordinating Council (MICC) has already endorsed to the Office of the President a memorandum allowing mining projects in advanced exploration stage to develop their concession areas.

Most of these companies, he said, are engaged in nickel mining and have indicated their willingness to pay the higher government share.

In a media briefing, Paje said that the mining companies’ willingness to pay shows DENR computations on profit sharing is correct.

He said the nickel miners have approved Declaration of Mining Project Feasibility. DMPF is the last process before a mining company can operate.

President Benigno Aquino 3RD issued EO 79 two years that among others set higher taxes and identified the places where mining cannot be done.

“We are set to deny all pending applications for mining development, particularly Mineral Production Sharing Agreements (MPSA) as the moratorium for the issuance of the mineral agreements is still in effect until a legislation rationalizing the existing revenue sharing scheme and mechanisms is amended, as provided for in Section 4 of EO 79,” Paje said.

At present, there are more than 100 pending mining applications.

The DENR chief, however, said that a positive recommendation from President Benigno Aquino 3rd would give mining companies opportunity to proceed with the operating stage—provided that they pay the government share in the amount not less than the propose mining revenue scheme.

The MICC, an interagency body tasked to oversee reforms in the mining sector, earlier approved the new revenue sharing scheme, which will levy a 10 percent tax on gross revenues or a 55-45 percent share of the adjusted net mining revenues (ANMR)—whichever is higher.

“Allowing these mining projects to proceed to the operation stage will mean additional revenues and sources of livelihood for the communities,” Paje said.

He also stressed that stricter environmental standards are now in place assuring more responsible mining.

Earlier, the DENR issued Department Administrative Order 2014-06, which amends the implementing rules of Executive Order 79.

The order allows mining companies faced with depleting reserves to expand their contract areas and ensure continuity of operations as well as avoid shutting down of existing mines.


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  1. Manuel C. Diaz on

    The proposed mining tax of 10% of the gross is not sustainable. At this rate no new mines will be opened and old operating mines will shut down. Just to give you an example Zambia recently increased their mining tax from 6% of the gross to 20% of the gross and abolished the income tax. Barrick the operator of the Lumwana mines the biggest open pit copper cobalt mine in Zambia Africa shut down its operation. At the 20% rate on gross is not sustainable considering the down ward spiral of commodity prices in the world market inspite of the abolition of the income tax.

    This new 10% tax on the gross will kill the Philippine Mining Industry.

    • Kung hindi makikinabang ang tao, kung walang participation, kung hindi maitataas ang standard of living ng mga tao sa kumunidad at kung mananailing atrasado ang basic services sa komunidad, mas mabuti ng PATAYIN na ang industria ng minahan…

      At any rate, HINDI RIN SIYA MAGIGING SUSTAINABLE, mas makikinabang lamang ang mga warlords, political dynasty sa lokal at local INSURGENCY (NPA) sa lugar…