COMP: Gov’t share in mining gains higher than estimates
The Chamber of Mines of the Philippines (COMP) Tuesday said the government was getting more share in mining revenues than generally believed, as President Duterte said the country could do without the industry.
“The prevailing assumption that the government gets only 18 percent from mining operations is completely false and baseless,” the COMP said in a statement.
It said a Foreign Technical Assistance Agreement between the government and a mine operator provides for a 50-50 percent sharing formula.
“(A)nd when there are windfall profits, the government gets an additional share of 60 percent when the windfall is over 50 percent,” it added.
“In the Mineral Production Sharing Agreement, the government gets 45 percent share, depending on the prices of commodities,” COMP said. “But when prices are low, the government still gets more than the companies.”
On Monday, the President said the Philippines could survive without revenue from mining, about P40 billion P40 billion yearly—warning firms to follow environmental rules and regulations or face closure.
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