DOF: LGU loses P821-M annually due to mining closure, suspension

THE order of the Department of Environment and Natural Resources (DENR) to either shut down or suspend the operations of 28 mine sites across the country will cost 17 affected cities and municipalities in 10 provinces over P821 million annually in foregone revenues, according to updated estimates submitted to the Department of Finance (DOF).

DOF Secretary Carlos Dominguez III, who earlier directed local treasurers to submit their respective reports on the complete revenue impact of the DENR closure and suspension orders on host local government units (LGUs), told the media that three of the municipalities will lose revenues representing over 50 percent of their current operating income if the affected mine sites are shut down or forced to suspend operations.

“One is the municipality of Carrascal (in Surigao del Sur), then you have Tagana-an (in Surigao del Norte) and Tubajon (in Dinagat Islands),” said Dominguez in a recent media forum.

The updated estimates submitted by the Bureau of Local Government Finance (BLGF) to Dominguez show Carrascal will lose P198.3 million of its mining revenues, which represent 62.3 percent of its total operating income, while Tagana-an will lose P70.3 million or 54 percent of its total operating income. Tubajon will shed P38 million, or 55.4 percent of its total operating income if the DENR order is implemented.