Inclusive monitoring committee hastens mining tax dispute settlement

To ensure responsible mining and advance environmental and social protection, local government units, particularly those with operational mine projects within their jurisdictions, should ensure their active participation in inter-agency monitoring of site operations.

In a statement released on Wednesday, the provincial government of Eastern Samar highlighted that its inclusion in both the multipartite monitoring team and the mine rehabilitation fund committee would facilitate the speedy resolution of its pending tax dispute with six local miners.

"The provincial government has taken on a never-before vital and active role in monitoring miners operating in our province to ensure their 100 percent compliance with laws and provincial ordinances on environmental protection, on the social welfare of these firms' workers and the residents of their host communities, and their financial obligations to the LGUs intended for local development programs," Provincial Legal Officer Eden Ivy Rose Balagasay said.

Balagasay said that, since the provincial government's official membership in the MMT and MRF Committee began last July, she has participated in two quarterly monitoring activities in the third and fourth quarters of miners operating in Homonhon Island off the municipality of Guiuan.

"This unprecedented access to mining data and operations in Guiuan will serve as the basis for the governor to either support the status quo on local mining or formally ask the DENR/MGB to suspend, if not cancel, the operating permits of any miners found in breach of the provisions of their MPSAs and/or the pertinent laws and provincial ordinances on environmental and social protection," Balagasay explained.

It can be recalled that the provincial government issued a warning to the six mining companies operating in Homonhon during a special meeting held at the Provincial Capitol of Eastern Samar in Borongan City last month.

The companies are Cambayas Mining Corp., Emir Mineral Resources Corp., Techiron Resources Inc., Mt. Sinai Exploration and Development Corp., Chromiteking Inc., and Nickelace Inc.

Provincial government data showed that these miners have combined RPT arrears estimated at P133,866,943, based on the aggregate volumes listed in their chromite and nickel ore stocks transport permits (OTPs).

Eastern Samar recently said it expects to receive at least a portion of the long-delayed tax settlement of about P100 million from local miners, a substantial revenue stream that could help propel growth in the province.

Balagasay disclosed that the Bureau of Internal Revenue or BIR has begun collecting data to determine the unpaid excise taxes that miners owe.

Balagasay noted that the Revenue Accounting Division at the BIR central office in Quezon City is now processing the relevant tax data to support the release of the actual amount due to Eastern Samar.

According to her, the amount should be equivalent to 40 percent of the excise taxes paid by the miners since they started operating in the province.

The collected tax is to be divided among LGUs hosting the mining operations, 35 percent of which will go to the barangay, 45 percent to the municipality, and 20 percent to the province.