Philippines to maintain moratorium on new mining projects

The Philippine Mining Coordinating Council (MICC), a government commission that oversees the country's 41 mines, has postponed a recommendation to lift a six-year moratorium on new mining projects, the Treasury Department said in a statement on Tuesday.
Let's remind:
• In 2012, the government imposed a moratorium on new mining projects until a law was enacted to increase the government's share of mining revenues.

• MICC stated that the recent increase in excise taxes on mining is not enough to meet the necessary increase required by the government. The excise tax hike is part of the first tranche of a tax reform program implemented this year, but MICC said the measure does not apply to other taxes and duties related to mining, including royalty taxes.

• The second package of tax reforms, which the House of Representatives approved and submitted to the Senate, includes a new distribution scheme for mining revenues that covers other taxes and levies, the Treasury Department said.

• MICC at its December 12 meeting also agreed to conduct a second round of “Objective, Science Based and Informative” mine review next year to cover the remaining 15 mines that were not covered in the first round earlier this year.

• The government conducted an industry audit after the Ministry of the Environment issued closure and suspension orders for several mines that were found to be in violation of environmental regulations.