A bill to establish a fiscal regime for the mining industry was approved by the Committee on Appropriations of the House of Representatives on January 22, 2020.
Recorded as House Bill 5022, it consolidates House Bills (HB) numbers 288, 560, 1687, 2557, 4541, 4874, 5022 and 5253.
Under the bill, large-scale miners for metallic minerals are required to pay a royalty equivalent to 3% of their total gross output. Small-scale miners are exempted from paying the royalty.
In the mining law (Republic Act 7942), royalty is currently being imposed only to declared mineral reservations.
The bill also recommends the payment of an additional 2% based on gross output for large scale miners that will accrue to a National Resource Trust Fund that will be established. This would ensure benefits for future beneficiaries in the form of educational programs, technological and research programs, health services and disaster and risk reduction management programs.
The bill also mandates that failure to comply with such obligations will cause immediate suspension or closure of the mining operations.
The bill proposed as well for the Mines and Geosciences Bureau (MGB) to establish an auction for concessions. Accordingly, this will pave the way for the full disclosure of information in the mining industry and will give equal opportunities to mining investors. (MGB)