THE DEPARTMENT of Environment and Natural Resources (DENR) is planning on issuing at least 4,211 mining permits and contracts next year, with its focus on securing more deals on smart mining, according to the Environment secretary.
“The agency wants to strengthen public and private sector collaboration in emerging knowledge and technology-intensive industries such as smart mining,” DENR Secretary Maria Antonio J. Yulo-Loyzaga told a Senate budget hearing on Thursday.
She said that by 2028, her agency aims to have 85% of surface metallic mines to be compliant with safety and health, and environmental standards.
For next year, the DENR plans on issuing at least 715 mining contracts that comply with work program, safety, environment, and social development programs.
Citing government data, Ms. Yulo-Loyzaga said the mining industry contributed about P56.5 billion to the country’s gross domestic product in the first quarter this year, or about 0.53%.
Senators are set to deliberate on a measure that would boost the government’s share in the mining industry’s profits through a simplified five-tier royalty tax system.
Senate Bill No. 2826, sponsored by Senator Joseph Victor “JV” G. Ejercito, proposes a five-tier windfall profit system that ranges from 1- 10%. It will require large-scale miners inside mineral reservations to pay a royalty rate of 5% based on gross output.
The House of Representatives approved its version of the bill in September last year. The Department of Finance has said the government could generate about P6.26 billion in additional annual revenues from the new mining tax regime.
Mining companies currently pay corporate income tax, excise tax, royalty, local business tax, real property tax, and fees to indigenous communities. — John Victor D. Ordoñez