To help provide equitable access to mineral resources and generate more non-tax revenues, the Department of Environment and Natural Resources will declare more mineral reservation areas soon.
Undersecretary for Mining Analiza Teh said the agency's Mines and Geosciences Bureau is now in the process of identifying “mineralized areas and high mineral potential areas, including all existing operating mines,” for declaration as mineral reservations.
Certain sites have already undergone the process prescribed by law and are ready for endorsement to President Rodrigo Duterte for declaration as mineral reservations pursuant to Republic Act 7942 or the Philippine Mining Act.
“The law provides that when the national interest so requires, such as when there is a need to preserve strategic raw materials for industries critical to national development, or certain minerals for scientific, cultural or ecological value, the President may establish mineral reservations upon the recommendation of the MGB Director through the DENR Secretary,” she said.
Teh issued the statement in the wake of news reports of audit observation memorandum issued by the Commission on Audit's Regional Office 13 on the alleged failure of the DENR to collect almost P2.6 billion in royalty fees from five mining companies in the Caraga region.
Teh clarified that the present mining law requires payment of royalty fees only in areas declared as mineral reservations.
“The five mining companies mentioned in the CoA report are operating outside the Surigao mineral reservation area. Thus, the permits granted to them do not contain any provision for them to pay royalty,” she said.
All actions of the DENR and MGB on the matter were “in accordance and consistent with existing laws and regulations," she said.
To address the concerns of the CoA and the government in general, to generate more revenues from the mining industry, she said the DENR is looking at the declaration of more mineral reservations to include sites where the five mining companies operate as a solution.
The agency has also proposed to the Department of Finance to include the imposition of royalty fees on mining firms operating outside mineral reservations in the second package of the Tax Reform for Acceleration and Inclusion law, she added.
“Should an amendatory law be passed, the imposition of royalties on mining operations outside mineral reservations will be applied prospectively,” she raised.