An Act Establishing The Fiscal Regime And Revenue Sharing Arrangement For Large Scale Metallic Mining, And For Other Purposes
- This measure proposes a fiscal regime and revenue arrangement between the government and the mining contractor, taking into consideration the role of the government as the owner of the minerals and the impact of mining activities on the environment and community.
- All Mineral Agreements (MAs) and Financial or Technical Assistance Agreements (FTAAs) covering large-scale metallic mineral mining operations shall be governed by the new fiscal regime proposed in this bill.
- Guided by the government’s commitment to responsible minerals development, only mining areas declared as Mining Industry Zones (MIZ) can undertake mining operations and shall be administered by the Philippine Mining Development Corporation.
- As a piece of legislation that intends to provide long-term benefits to the government, the following provisions are included:
- Fiscal regime and revenue sharing agreement wherein the government share shall be ten percent (10%) of gross revenue or fifty-five percent (55%) of Adjusted Net Mining Revenue whichever is higher;
- Establishment of social and environmental funds;
- Allocation of government share wherein the national government shall receive sixty percent (60%) while the host local government unit shall get forty percent (40%); and
- Establishment of Environmental/Rehabilitation Fund for government environmental mining programs determined by the Mining Industry Coordinating Council.
- In order to enhance government accountability, the local government units, indigenous cultural communities through the National Commission on Indigenous Peoples, the Department of Environment and Natural Resources and other agencies concerned shall regularly submit fund utilization and other reports.
- Likewise, this bill also aims to attract quality investments by providing the following incentives:
- Recoverable Pre-operating Expenses; and
- Duty-free importation of specialized capital mining equipment.
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