ATM supports MICC decision to defer lifting of mining-permit moratorium
THE Mining Industry Coordinating Council (MICC) should follow up its recent actions with the decision on the closure and suspension orders to make mining sustainable in the country, a local civil society group said.
In a statement on Thursday, Alyansa Tigil Mina (ATM) expressed its support for the decision of the MICC to defer the lifting of the moratorium on new mining permits.
However, much needs to be done in order to address the demands of Executive Order (EO) 79, which imposed a moratorium on new mineral agreements “until a legislation rationalizing existing revenue-sharing schemes and mechanisms shall have taken effect.”
“The new excise tax rates approved under the TRAIN law is not sufficient to address the demand of EO 79, which is that a new fiscal regime on mining must be passed,” ATM said.
“A new fiscal regime on mining includes new rules on royalties, a tax on super profit or windfall profits, increased social-development funds and increased rehabilitation and decommissioning funds,” it added.
ATM said deciding with finality on the closure and suspension orders issued by former Environment Secretary Regina Paz L. Lopez.
This should be coupled by the issuance of a “no-go zones” map. In its last meeting, the MICC instructed the Department of Environment and Natural Resources (DENR) to study the process of delineating the “go and no-go zones” for mining application identified under EO 79.
The DOF earlier said the DENR and other concerned memberagencies were tasked to form a technical working group that will identify a pilot area for the implementation of the updated no-go zones.
The MICC also instructed DENR to check the provisions in the implementing rules and regulations and see whether the issues concerning the go-no go zones could be resolved by revising the IRR.
“The MICC should not forget that other conditions remain in place that justify this moratorium,” ATM said.
In a statement on Tuesday, the DOF said this is despite the increase in the excise taxes for mineral products to 4 percent, from 2 percent under the Tax Reform for Acceleration and Inclusion law or Republic Act 10963.
DOF said a new revenue-sharing scheme and mechanism for mining will be covered in Package 2 plus of the Comprehensive Tax Reform Program.
The House of Representatives provides for this new fiscal regime to ensure that the government gets its rightful share of the profits from mineral resources by approving House Bill 8400 on third and final reading. The bill was transmitted to the Senate last month.