Incentives for mining firms in Bangsamoro set
The prospective government of the Bangsamoro autonomous region is expected to offer tax perks and other incentives to mining firms in order to bridge a P109.5-billion funding gap for the development of the area.
Saffrullah M. Dipatuan, chair of the Bangsamoro Development Authority (BDA), said that based on the transitional, first phase of the Bangsamoro development plan that covers 2014-2016, a total of about P226.6 billion was needed.
However, the national government has readied only P116.2 billion for efforts related to the region’s ecology and livelihood, infrastructure, social services, environment and national resources, culture and identity, governance and security and normalization.
Of the P109.5-billion funding gap, P84.7 billion is for infrastructure, P11.4 billion for social services, and P1.2 billion for environment and natural resources.
“The private sector is given prime importance in the Bangsamoro development plan [considering that] it is recognized as the real engine for economic growth and development,” Dipatuan yesterday told a forum organized by the Philippine Mining Club.
The BDA chair noted that the abundant mineral resources in the region were mostly unexplored. Of the 12 exploration permits issued by the Autonomous Region in Muslim Mindanao, only one proponent is active—SR Languyan Mining Corp., which is operating in Tawi-Tawi.
Article continues after this advertisementDipatuan said that based on historical mining data, there were potential copper-gold deposits in Sulu, copper and nickel in Tawi-Tawi, and gold in Lanao del Sur.
Article continues after this advertisementHe said that among the challenges that the mining industry was facing in the Bangsamoro were the lack of data on mineral resources, current unstable peace and order situation, and lack of mining-related technical capacity among government units.
“But the top challenge is the national government’s ambivalent attitude towards mining,“ Dipatuan said.
“The future Bangsamoro regional government intends to attract private sector mining investments through tax incentives, Peza style,” he added, referring to the Philippine Economic Zone Authority.
Dipatuan said there were bright prospects for the industry, considering that the Bangsamoro parliament— which is yet to be formed—can enact laws that are attractive to the entry of private investments and favorable to the operation of mining companies “that strictly comply with responsible mining policies.”
“To encourage investments … the Bangsamoro government shall have the power to grant tax exemptions, rebates, tax holidays and other incentives [based on the agreement with the national government],” he added.
RELATED STORIES
Gov’t, Bangsamoro to pay those who lost lands
