The mining law provides for the Mineral Production Sharing Agreement (MPSA), wherein it ensures that the government’s interest is protected especially on the basis of profit sharing and benefits. The Financial or Technical Assistance Agreements (FTAAs) allows a hundred percent foreign ownership and gives incentives such as:
- 4 year income tax holiday
- Tax and duty free capital equipment imports
- Value added tax exemptions
- Income tax deductions
- Accelerated depreciation.
To comply with the internationally accepted standards of environmental management, the mining law recognizes the rights of cultural communities and indigenous people as well as respect for institutionalized stringent measures and rights of indigenous people.
In line with the clamour for environmental protection, Executive Order No. 79 was issued by former President Benigno Aquino III on July 9, 2012. It aims to strengthen the protection of the environment, provide equitable revenue sharing scheme, and promote responsible mining. The salient points of said EO includes:
- Revenue sharing scheme provides that the government develops rationalization of the current scheme and mechanisms. It imposes moratorium on approving new mineral agreements as the EO proclaims that “No new mineral agreements shall be entered into until a legislation rationalizing existing revenue sharing schemes and mechanism shall have taken effect”.
- Limiting small scale mining activities. Minahang Bayan is an area declared as such. In effect the nickel mining operation will be limited as they operate on small scale. The EO provides that “Small scale shall not be applicable for metallic minerals except gold, silver and chromite.
- In terms of environmental concerns the EO bans the use of mercury in small scale mining.
- Along with the current no-go zones for mining, three other types of areas were added such as tourism destinations, agricultural lands and island ecosystems.
- The EO created the Mining Industry Coordinating Council that will implement the EO and other industry reforms, review mining laws in existence and provide a dialogue with stakeholders. The council is co-chaired by the chairpersons of the Climate Change Adaptation and Mitigation and the Economic Development clusters of the Cabinet. Other members includes the Secretary of Justice, president of the Union of Local Authorities of the Philippines, and the chairperson of the National Commission of Indigenous People.
- It declares that local government units who engages in hosting mining extractions are directed to conform to the regulations, decisions and policies promulgated by the National Government in particular the primacy of RA 7492 over the Executive Order.
- Existing contracts are valid but subject to renegotiation for possible mutual acceptability of both parties- the government and the mining contractor.
- The DENR is mandated to implement global standards specified by the Extractive Industries Transparency Initiative and to create an industry database and map system.
0 comments:
Post a Comment