Connect with us

Hi, what are you looking for?

Top Stories

Editor's Pick

Legislators urged by think tank to reimpose 5% mining royalty

THE Philippine Institute for Development Studies (PIDS) urged legislators to reinstate the 5% royalty on gross output of mineral products, citing the need to collect more revenue from miners.

“As it stands, the revenue from mining activities accruing to local and national counterparts seems inadequate. Further lowering taxation is counter-intuitive from aspirations related to social and environmental justice,” Sonny N. Domingo, PIDS senior research fellow, and officer-in-charge of its research information department, said in a position paper.

Under House Bill (HB) No. 8937, which was approved last year, large-scale metallic mining operations inside mineral reservations will pay the government 4% of their gross output, lower than the current 5%.

The Department of Finance (DoF) also proposed to reinstate the 5% royalty for large-scale metallic mining operations inside mineral reservations.

Mr. Domingo also cited the need for value-adding activities like domestic processing of mineral ores. “The country has been losing billions from sub-optimal valuation/pricing of exported raw mineral ores,” PIDS said.

The think tank noted that minerals like scandium, manganese, chromium, and aluminum oxide are undervalued in raw form.

Mr. Domingo also proposed to impose a 7.5% royalty on the export of unprocessed nickel and raw mineral ores, similar to rates in Western Australia.

“The imposition of an export tax on unprocessed mineral ores may catalyze or incentivize investment in local processing and value-adding industries,” he said.

Meanwhile, PIDS noted that current mining laws do not account for small-scale miners, which mostly operate “extra-legally.” He cited how gold is continuously sold onto the black market in the absence of government intervention.

“Taxation for small-scale gold mining can be levied at the milling or processing plants where gold is extracted from mined ores if taxation at the point of sale is not feasible,” Mr. Domingo said.

The Bangko Sentral ng Pilipinas must also look into the creation of more buying centers for mining products, he said. It may consider having “appropriate buyer accreditation mechanisms to counter the ease and accessibility offered by informal markets to miners.”

HB  8937 must also recognize distinctions for artisanal, small-scale, and large-scale mining operations, Mr. Domingo said.

The proposed Mining Fiscal Regime is among the administration’s priority bills going up for approval this year. — Beatriz Marie D. Cruz

You May Also Like


As the world seeks sustainable and energy-efficient solutions for heating and cooling, the heat pump market is experiencing a significant surge. According to the...


The introduction of aggressive climate objectives by global economies and growing prospects for reducing carbon emissions are driving the growth of the district heating...


In the dynamic automotive sector, consistent growth of the electric vehicle (EV) charging industry has become increasingly evident. Consumers and businesses alike are recognizing...


With a higher focus on sustainable living in modern architecture, the building automation systems (BAS) industry stands as a beacon of innovation. These systems...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 Secrets Of Richdads. All Rights Reserved.