President Ferdinand Marcos Jr. asked Congress to pass the Rationalization of the Mining Fiscal Regime to create a more equitable system for the industry.
Speaking at the 2023 Presidential Mineral Industry Environmental Award (PMIEA) ceremony Wednesday, Marcos emphasized the need for a simplified fiscal framework for mining operations across the country.
“The Rationalization of the Mining Fiscal Regime is fundamental to creating a fair and equitable mining environment for everyone involved,” the President said.
The proposed measure includes a revised system imposing a four-tier, margin-based royalty of 1.5 percent to 5 percent on mining revenues, depending on profitability.
The current fiscal structure imposes royalties only on mining operations within government-declared mineral reservations, leading to inconsistent obligations across companies.
The president also ordered the Department of Environment and Natural Resources (DENR) to bolster regulatory oversight of the mining sector, stressing the importance of strict adherence to safety and environmental standards.
He pointed to measures like Administrative Order No. 2022-04, which mandates biodiversity management in mining operations, as steps toward responsible mining.
“It is equally vital for the DENR to strengthen its regulatory capabilities for all mining operations to ensure compliance with safety and environmental standards,” he said.
Marcos recognized 13 mining and mineral processing firms for their dedication to environmental stewardship, presenting them with the PMIEA. The recipients were acknowledged for achievements in reforestation, sustainable extraction and local community support.
The PMIEA, created by Executive Order No. 399, honors mining companies excelling in safety, environmental care and social responsibility.
“These efforts illustrate how we can align industry practices with social and environmental objectives,” the president said.
