Alternative Mining Bill gaining ground in House

Monday, May 18, 2009
Sun-Star / General Santos


ANTI-large scale mining critics filed on Wednesday before the House of Representatives an alternative mining bill seeking to eliminate full foreign ownership of mining tenements in the country.

The bill, which was shaped through six years of consultations with grass roots organizations, environment ex-perts, the academe and other sectors, seeks to replace Republic Act 7942 or the Philippine Mining Act of 1995.

Erwin B. Quinones, campaigns paralegal of the Legal Rights and Natural Resources Centre-Kasama sa Kalika-san-Friends of the Earth Philippines (LRC-KSK-FoE Phils), said the alternative mining bill was sponsored by Representatives Risa H. Baraquiel (Akbayan) and Lorenzo R. Tanada lll (Quezon, 4th District).

The bill is titled "An Act to Regulate the Rational Exploration, Development, and Utilization of Mineral Re-sources, and to Ensure the Equitable Sharing of Benefits for the State, Indigenous Peoples and Local Commu-nities, and for Other Purposes."

LRC-KSK-FoE Philippines was tasked to draft the bill and its supporters are still looking for sponsors at the Senate, Quinones said in a phone interview.

Based on the economic provisions of the bill, the National Government shall receive 10 percent of gross reve-nues outside taxes as a form of royalty fee.

Local government units shall be entitled to share of the net revenues from mining operations paid directly to the provincial treasurer, taking into consideration the classification of the local government unit as per vulnerability and human development index (aside from the LGUs share from the Internal Revenue Allotment).

Indigenous peoples shall also be given at least 10 percent royalty fee from gross revenues.

Constancio A. Paye Jr., Central Mindanao director of the Mines and Geosciences Bureau, said indigenous peo-ple currently receive a royalty fee at least one percent of gross revenues while the government gets two percent excise tax from the gross revenue.

The alternative mining bill also proposes the removal of the Financial or Technical Assistance Agreement, which allows 100 percent ownership of mining ventures.

"Only Filipino citizens or corporations, 60 percent of whose equity is owned or controlled by Filipinos, is al-lowed to mine – to conduct development, utilization, and processing of mineral resources in the Philippines," a primer prepared by the Alyansa Tigil Mina said.

Sagittarius Mines Inc, which is based in nearby Tampakan, South Cotabato, has been granted an FTAA by the government. Sagittarius is largely owned by Swiss miner Xstrata Copper through a 62.5 percent interest, Austra-lian junior exploration firm Indophil Resources NL (34.23 percent), and Filipino conglomerate Alsons Corp. (3.27 percent).

The bill also aims to decrease the maximum areas and term for mining contractors.

The maximum contract area for mining operations shall be limited to 500 hectares and the maximum term is 15 years, including five years for rehabilitation, according to the bill.

Paye said based on the existing mining act, firms are allowed 81,000 hectares during exploration and a maximum of 5,000 hectares during production stage but subject to increase depending on the need.

He added that firms can have 25 years for production and can be extended for another 25 years. (BSS)