MBC wants Palace to certify mining revenue-sharing bill as urgent

By: Arnold S. Tenorio, InterAksyon.com
July 10, 2012 7:34 PM

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MANILA - The country's big business lobby wants President Benigno Aquino III to certify as urgent a bill redefining the revenue-sharing scheme for mining projects to avoid a slowdown in investment inflows.

In a statement, Makati Business Club on Tuesday said Executive Order No. 79 was "an important step forward to resolving bottlenecks that have hampered the full development of the Philippine mining industry."

Having said that, the group "expresses its concern over the continuing moratorium on new mining agreements pending the passage of legislation rationalizing revenue-sharing schemes."

"While we understand that there may be good reasons for this moratorium, we strongly suggest that this be accompanied by the President’s certification of the draft bill as urgent and by expeditious action by our legislators for its passage within 2012 in order to avoid slowdowns to investment inflows that are crucial to the country’s aim for inclusive economic growth," MBC said.

Earlier, the Department of Environment and Natural Resources said it was confident of hitting this year's investment target of $2.27 billion in spite of the moratorium on new mining permits.

The moratorium has been in place since last year, causing the government to miss its $1.44 billion investment target, after inflows reached only $618.5 million in 2011.

DENR Secretary Ramon Paje had said “only a slight change" in targets would be made, citing investments that would push through for "exploration, tailings engineering and existing contracts with mining companies" sanctioned by EO 79.

On Tuesday, the Bangko Sentral ng Pilipinas reported that foreign direct investments reversed to net outflows of $13 million in April from net inflows of $78 million in the same month of 2011.

BSP Governor Amando M. Tetangco Jr. said the reversal stemmed from investor concern over the "potential spillovers of the euro zone's sovereign credit problems."

Besides the Palace certification of the revenue-sharing bill as urgent, MBC also called on the government to draw up "a definitive map that clearly identifies the boundaries of zones not open to mining—those 'no-go' zones defined in EO 79."

The Palace order barred mining in 78 areas considered reserved for tourism, agriculture, and other economic activities.

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