This photo taken on March 26, 2006 shows workers walking through a mine tunnel in Itogon north of Manila. AFP FILE PHOTO
MANILA, Philippines—The proposed new revenue sharing scheme for the mining sector may finally be ready for submission to lawmakers when Congress resumes session in May, Trade Secretary Gregory L. Domingo said Tuesday.
“We may be able to put in the revisions needed for the scheme. That will not take too long as the hard part is over. This is just fine-tuning the details,” Domingo said of the revisions. “We think we may be ready to file, although we have no control over the approval processes (that the proposal will undergo). But I’m hoping it can be submitted when Congress resumes session.”
Domingo said the revisions concerned only the “minor things,” specifically the implementation of the economic zone provisions for the mining sector.
The proposed mining ecozones are meant to better support and facilitate new and existing investments in the local mining sector and may operate like the sites being managed by the Philippine Economic Zone Authority.
The Department of Trade and Industry has been rushing to submit the Congressional bill that details the government’s revenue-sharing scheme with the mining sector to allay the fears of local and foreign investors in the country.
The scheme was already approved in principle by the Mining Industry Coordinating Council (MICC). The proposed structure would assure the government of a minimum share, or a percentage of the gross revenues, as well as a percentage of the net profits.
The new revenue sharing scheme will also feature a “windfall profit kicker,” which basically allows the Philippine government to secure a percentage share when a mining company benefits from “extraordinary” profits. Such an occasion may arise should metal prices spike in the global market. The government may start collecting from windfall profits once a company exceeds a certain level of returns.—Amy R. Remo