The Philippine Chamber of Commerce and Industry (PCCI), the country’s largest business organization, has strongly urged the Marcos administration to look into the current mining law “realistically” to be able to attract more investments in the mining sector.

PCCI President George T. Barcelon during the launch of its Media Kapihan last week emphasized the need for government to weigh the benefits and treatment to investments that the current law provides.

“We would like government to look at it realistically,” said Barcelon, who prefers the review will focus on what is beneficial and not, and to find a proper balance between environment protection and business.

For instance, he said, if the investor has poured in huge capital, he should be given more time to gain on his investment.

Investments in the mining sector are eligible for tax incentives provided in the Omnibus Investment Code of 1987 and in the Mining Act of 1995. These incentives include tax holidays, customs duty and VAT exemptions on imports, and a loss carryover over a certain period.  

Contractors shall pay royalties to the concerned indigenous cultural communities based on the agreed payment, which may not be less than one percent of the gross output.

Mining operations within mineral reservations are subject to a royalty paid to the Philippine Mines and Geosciences Bureau of not less than five percent of the market value of the gross output of the minerals or mineral products extracted or produced, exclusive of all other taxes.

“But if  laws are so strict, the legitimate miners tend to be a bit careful because their projects require huge capital,” said Barcelon.

In fact, he said, the big mining companies are the ones that adhere to the government requirements and they have environmental compliance certificates and all requirements of responsible mining.

“On the flip side, it’s the small miners that do  not follow the rules and are the ones creating lots of issue on pollution,” he said.

According to Barcelon, who is serving a second term as PCCI president, he also had a talk with Environment and Natural Resources Secretary Maria Antonia "Toni" Yulo-Loyzaga to discuss the new technology in the monitoring of mining operations.

“You can now monitor mines 24 hours, even at night time,” he said.

In addition, host communities also benefit from big mining operations because they contribute to the local economy like jobs generation, building schools, hospitals, and promote trade and commerce.

“If done properly, mining will be beneficial to our country,” he said.

Meantime, Architect Felino A. Palafox Jr., PCCI 49th Philippine Business Conference chairman, cited best practices in mining in other countries such as Canada, Australia and UK where mining areas have been restored and developed as tourist sites.

In April this year, Trade and Industry Secretary Alfredo E. Pascual raised his proposal to US Trade Representative (USTR) Ambassador Katherine Tai during her visit to the country for the US to consider partnering with the Philippines on the processing of critical minerals, similar to a deal the American government signed with Japan.

The Critical Minerals Agreement (CMA) between the US and Japan will facilitate trade, promote fair competition and market-oriented conditions for trade in critical minerals. The agreement also advances robust labor and environmental standards, cooperate in efforts to ensure secure, transparent, sustainable, and equitable critical minerals supply chains.