IPs hit limit on mining royalties

The proposed Mining Fiscal Regime Bill that passed the Senate Committee on Ways and Means and is now due for deliberation by the plenary since September is being opposed by a group of small miners, representing indigenous people’s community where mine reserves are usually located.

In a statement, Jaybee Garganera, Alyansa Tigil Mina National Coordinator, said the proposed provision is “not fair to indigenous groups for it limits the royalties they can get” from mining operations, as it limits the share of royalties that IPs would get.

“Instead of a cap or ceiling on the royalties, a minimum should have been proposed to ensure that Indigenous communities receive a sufficient amount. Putting a cap on royalties is heavily skewed in favor of the mining company. It restricts up to how much they can pay, yet does not mandate the bare minimum they should pay,” the statement quoted by Business Mirror said.

Under the bill, the tribal communities and individuals shall be paid not more than two percent of the gross output of minerals produced from their ancestral domain. It further stipulates that the parties “shall be free to negotiate on its components, both monetary and non-financial, such as employment, social development, and environmental management of the ancestral domain.”

Garganera said community development programs should not be considered as royalty payment. “The non-financial aspect of the mining firm’s obligations should be separate from the minimum monetary royalties that should be directly given to communities.”

Garganera said that stipulation on the monetary and non-financial royalties is “a loophole that can be used by the mining companies to escape from their obligations to the tribal communities.”

While small scale mining is recognized by the government as a formal sector of the industry, artisanal or small scale mining is regulated by two laws: the Small Scale Mining Act (RA 7076) and PD 1899. (RDLC)