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Wednesday, August 20, 2008

 

Atienza eyes permits for mineral exports

By Ira Karen Apanay, Reporter

ENVIRONMENT Secretary Lito Atienza said the government will soon require all minerals shipped out of the country to be covered by a mineral exports permits (MEPs), to address the rampant undervaluation, misdeclaration and illegal exportation of minerals.

Atienza said his department is now drafting a policy that would revive the issuance of the permits that will document the export of all mineral ores, minerals, mineral products and byproducts, including gold bullions.

He said issuance of permits will assure that the government gets its rightful share from the development of the country’s mineral resources.

“With the issuance of MEPs, we will be able to address many of the issues that seem to defeat the purpose of the revitalization of the mining industry. This will effectively establish a mechanism to monitor the transport of minerals and mineral products and by-products, to ensure that they are extracted from legitimate sources, pay proper taxes, and that the right tonnage, grade and volume are declared properly,” Atienza said.

The Environment chief further said that the policy being proposed, which will come in the form of an executive order to be issued by the Office of the President, will require all mining permits and contract holders, including small-scale mining permit holders, to obtain the permits from the department.

Atienza said the move also seeks to protect the reputation of the Philippines as a mineral exporting country.

An old requirement

Mining companies and mineral traders used to seek an export clearance from the government before their minerals and products are allowed to exit Philippine ports.

However, this requirement was eliminated following export liberalization, Atienza said.

“The revival of such requirement has now become necessary in the wake of widespread undervaluation, misdeclaration, illegal exportation of minerals and mineral products,” Atienza said.

He also said the use of the permits will also help track down illegal mining activities, particularly large-scale operators that hide under the skirt of small-scale mining permits. These large-scale operators also allegedly do not pay the right amount of taxes.

Atienza said small-scale mining permit holders also tend to produce and sell in huge bulks without determining the appropriate quantity and quality of minerals, which is disadvantageous to the government.

   

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