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September 8, 2017

Incentives sought to push industrialization in mining

Manila Bulletin  
Published September 5, 2017
By Madelaine B. Miraflor 
 
Incentives and assistance are needed to back the government’s industrialization push in the mining sector. 
 
 
This, amid the move to ban the export of raw minerals in order to support the call of the government to build more processing plants in the country. 
 
 
For Congressman Arnel U. Ty, this is something that should be assessed thoroughly. 
 
 
“In congress, there is a measure to ban the export of raw ores, coupled with the necessity of putting up processing plants,” Ty said at the Mining Philippines 2017 International Conference and Exhibition. 
 
 
“There should be proper assistance and incentives to make investments in mineral processing attractive and competitive with other countries in the region,” he added. 
 
 
The Philippines is still the world’s top supplier of nickel ore, while it remains to be one of the major producers of copper and gold. 
 
 
Despite this, the sector’s contribution to the economy still stands at less than 1 percent. Right now, the multi-sectoral Mining Industry Coordinating Council (MICC) is reviewing the mining industry’s current fiscal regime. 
 
 
For his part, Ronald Recidoro, the new executive director of Chamber of Mines of the Philippines (COMP), said the proposal to “solely ban the export of raw ore will not work.” 
 
 
Like Ty, he said the government should convince the companies first that a development of a mineral processing plant would be sustainable in the country. 
 
 
“We need to study this. Off hand, the easiest incentive to give would be Income Tax Holiday but there should also be assistance in terms of the power cost and the cost of transporting ore from one island to another because inter-island shipping rates are so high,” Recidoro said. 
 
 
“Other than that, there should be improvement in the bureaucratic red tape. In other countries, it is so easy to get permits,” he further said. 
 
 
Available from:
http://business.mb.com.ph/2017/09/05/incentives-sought-to-pushindustrialization-in-mining/
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