Philippine Mining Sector Reforms
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Questions and Answers

What is the current excise tax on coal per metric ton?

  • P100 per metric ton
  • P50 per metric ton
  • P10 per metric ton (correct)
  • P150 per metric ton
  • What percentage of the total revenue from TRAIN will go to social mitigating measures?

  • 40%
  • 30% (correct)
  • 20%
  • 50%
  • What is the main objective of EO 130 of 2021?

  • Lifting the moratorium on mineral agreements under Section 4 of EO 79 (correct)
  • Establishing a new mining tax rate
  • Amending the TRAIN Law to increase excise tax on minerals
  • Prohibiting the use of mercury in small-scale mining
  • What is the main objective of Sec 11 of EO 79 of 2012?

    <p>To improve and address issues on small-scale mining</p> Signup and view all the answers

    What is the total mining contribution to the total Philippine revenue of Php1900 billion?

    <p>1% (Php12.9 billion)</p> Signup and view all the answers

    What is the minimum period for the operationalization of P/CMRBs in provinces and cities where they have not been constituted?

    <p>3 months</p> Signup and view all the answers

    What is the new mining tax rate under the TRAIN Law?

    <p>4% on metallic and non-metallic</p> Signup and view all the answers

    What is the main objective of fast-tracking the release and access of LGUs to their share from mining revenues?

    <p>To support the development of local communities</p> Signup and view all the answers

    What is the main objective of updating the mineral commodity profile and database?

    <p>To improve the accuracy of mining data and statistics</p> Signup and view all the answers

    What is the primary purpose of EO 79 of 2012?

    <p>To implement reforms in the Philippine mining sector and ensure environmental protection</p> Signup and view all the answers

    What is the main objective of conducting a study on existing mechanisms for benefit sharing and reviewing existing taxes and fees?

    <p>To identify opportunities for improving the benefit sharing mechanism</p> Signup and view all the answers

    What type of areas are closed to mining according to Section 1 of EO 79 of 2012?

    <p>Areas under Sec. 19 of RA 7942, protected areas, and prime agricultural lands</p> Signup and view all the answers

    Who is responsible for ensuring environmental standards in mining are fully enforced?

    <p>The DENR and LGUs</p> Signup and view all the answers

    What is the purpose of the review of existing mining operations led by the DENR?

    <p>To evaluate the performance of existing mining operations</p> Signup and view all the answers

    What is the status of new mineral agreements under Section 4 of EO 79 of 2012?

    <p>They are suspended until legislative reforms are implemented</p> Signup and view all the answers

    What is the purpose of declaring certain areas as Mineral Reservations?

    <p>To identify areas with known mineral resources for future development</p> Signup and view all the answers

    Who has the right of first option for mining rights in areas with known mineral resources?

    <p>Grantees of exploration permits</p> Signup and view all the answers

    Who is responsible for preparing competitive public bidding for mining rights?

    <p>The MGB</p> Signup and view all the answers

    What is the status of valuable metals in abandoned ores and mine wastes?

    <p>They are owned by the State and subject to competitive public bidding</p> Signup and view all the answers

    What is the purpose of the Mining Industry Coordinating Council (MICC)?

    <p>To coordinate mining policies and ensure environmental sustainability</p> Signup and view all the answers

    Study Notes

    Executive Order 79 of 2012

    • Implements reforms in the Philippine mining sector to ensure environmental protection
    • Provides policies and guidelines to ensure environmental protection

    Areas Closed to Mining

    • Areas under Section 19 of RA 7942
    • Protected areas under NIPAS
    • Prime agricultural lands, fisheries development zones, and fish refuge and sanctuaries
    • Tourism development areas
    • Other critical areas

    Environmental Standards

    • The government and DENR, with the LGUs, shall ensure environmental standards in mining are fully and strictly enforced
    • Only those who comply with all requirements are eligible for the grant of mining rights

    Review of Existing Mining Operations

    • A multi-stakeholder team led by the DENR shall conduct a review of the performance of existing mining operations

    New Mineral Agreements

    • No new mineral agreements shall be entered into until legislation rationalizing existing revenue sharing schemes and mechanisms have taken effect
    • DENR may continue to grant Exploration Permits
    • Grantees of exploration permit have the right of first option

    Mineral Reservations

    • Potential and future mining areas with known mineral resources shall be declared as Mineral Reservations
    • Identified in the Philippine Development Plan and a National Industrialization Plan
    • "National Government Owned Mining Assets" - mining areas/tenements previously held by operators

    Grant of Mining Rights

    • The grant of mining rights and mining tenements over areas with known mineral resources shall be undertaken through competitive public bidding prepared by the MGB

    Abandoned Ores and Mine Wastes

    • All valuable metals in abandoned ores and mine wastes and/or mill tailings generated by previous/defunct mining operations belong to the State
    • Shall be developed and utilized through competitive public bidding

    Mining Industry Coordinating Council (MICC)

    • Co-chaired by chairpersons from two clusters
    • Members:
      • Secretary
      • Department of Justice
      • Chairperson, NCIP
      • President, ULAP (Union of Local Authorities of Philippines)
    • Functions:
      • Demand operational and financial reports from both large and small-scale miners
      • Conduct verification of taxes and fees at the national, regional, and local levels
      • Fast-track release and access of LGUs to their share from mining revenues
      • Update mineral commodity profile and database
      • Conduct a study on existing mechanisms for benefit sharing and review of existing taxes, fees
      • Study the terms and conditions of service contracts entered by DOE
      • Study the imposition of higher export fees
      • Consider tapping 3rd party international auditors to validate the volume and value of mineral exports
      • Increase mine wastes and tailings and occupation fees (DENR)
      • Provide benchmarks for the valuation of minerals (DENR)
      • Prepare and maintain revenue baseline data (BIR)

    Executive Order 130 of 2021

    • Amends Section 4 of EO 79, 2012
    • Lifts the moratorium on mineral agreements
    • The government may enter into new mineral agreements, subject to compliance with the Philippine Mining Act of 1995 and other applicable laws

    Mining Tax Reforms

    • Increase in Excise Tax from 2% to 4%
    • Coal Excise Tax: P10 per metric ton (current), P50 per metric ton (1st yr), P100 per metric ton (2nd yr), P150 per metric ton (3rd and succeeding years)
    • Petroleum Excise Tax:
      • Liquefied, Diesel: None (current), P3 per kg (2020 onwards)
      • Premium Gasoline: P4.35 per liter (current), P10 per liter (2020 onwards)

    Revenue Allocation

    • 70% of revenue from TRAIN will go to:
      • Infrastructure and new road networks
      • Military
      • Drinking Supply
    • 30% of revenue from TRAIN will go to:
      • Social mitigating measures: Education, health, nutrition, and anti-hunger programs

    Small-Scale Mining

    • Comply with RA 7076 or People's Small-Scale Mining Act of 1991
    • Comply with the EIS requirements under PD 1586
    • Operate only within the declared Minahang Bayan
    • Pursuant to Section 24 of RA No. 7076, P/CMRBs in provinces and cities shall be operationalized within three (3) months from the effectivity
    • Not applicable for metallic minerals except gold, silver, and chromite
    • Use of mercury in small-scale mining shall be strictly prohibited
    • Training and capacity building measures in the form of technical assistance for small-scale mining cooperatives and associations shall be conducted by concerned government agencies

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    Description

    This quiz covers the implementation of reforms in the Philippine mining sector, including policies and guidelines for environmental protection. It specifically deals with areas closed to mining and the enforcement of environmental standards.

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