overview of extractives industries · 27. rio tuba nickel mining corporation 28. sinosteel phils....
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Overview of Extractives Industries
ABIGAIL OCATE
Technical ManagerPH-EITI Secretariat
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RELEVANT LAWS
Philippine Mining Act of 1995 (RA No. 7942)
Institutionalizing and Implementing Reforms in the Philippine Mining Sector, Providing Policies and Guidelines to Ensure Environmental Protection and Responsible Mining in the Utilization of Mineral Resources (EO 79)
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Mineral Industry Statistics
Total operating metallic mines: 41
Gross production value:
Large-scale metallic: 102 billion
Small-scale gold mining: 0.7 billion
Non-metallic mining: 73.6 billion
Contribution to GDP: 0.6%
Metallic contribution to total exports: 4.1%
Contribution to total employment: 0.5%
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OVERVIEW OF THE 3rd REPORT
The Report has 2 chapters:
Ch 1: Contextual information about the extractive sector– Legal and institutional framework governing the extractive sector – Summary of Extractive Sector contribution to the economy– Distribution of revenues– Social and economic spendingCh 2: Reconciliation Report and MSG recommendations
(with assessment of progress)– Presents the results of the reconciliation procedures and contains
information on the material revenue streams from the extractive industry
– Recommendations formulated by the PH-EITI MSG
Independent Administrator:
Isla Lipana & Co. PwC Philippines
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SCOPE OF THE REPORT
13 revenue streams including 8 mandatoryexpenditures and funds
36 participating companies (31 large-scale metallicmining, 5 oil and gas)
7 government agencies (BIR, MGB, DOE, NCIP, PPA,BOC and DBM)
63 local government units
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REVENUE STREAMS
BIR revenue streams (6):
1.Corporate income tax2.Excise tax on minerals3.Withholding tax on foreign shareholder
dividends, on profit remittance to principal and on royalties to claim owners
4.Value added tax on importations
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REVENUE STREAMS
DOE – Government share from oil and gas
production
MGB – Royalties from mining operations
BOC – Customs duties
LGU – Business tax and RPT
NCIP – Royalty to IPs
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COMPARING THE FIRST THREECOUNTRY REPORTS
1st Report
(FY 2012)
2nd Report
(FY 2013)
3rd Report
(FY 2014)
Number of participating companies 36 36 36
Mining 30 31 31
Oil and gas 6 5 5
Number of reporting government
agencies7 7 7
Number of participating LGUs 32 59 63
Number of covered revenue streams 19 13 13
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1. AAM-PHIL Natural Resources Exploration
and Development Corporation
2. Adnama Mining Resources, Incorporated
3. Apex Mining Company, Inc.
4. BenguetCorp Nickel Mines, Inc.
5. Cagdianao Mining Corporation
6. Carmen Copper Corporation
7. Carrascal Nickel Corporation
8. Citinickel Mines and Development
Corporation
9. Filminera Resources Corporation
10. Greenstone Resources Corporation
11. Hinatuan Mining Corporation
12. Johson Gold Mining Corporation
13. Krominco, Inc.
14. Lepanto Consolidated Mining Company
15. Leyte Ironsand Corporation
16. Libjo Mining Corporation
17. LNL Archipelago Minerals, Incorporated
18. Marcventures Mining and Development
Corporation
19. Mt. Sinai Mining Exploration and
Development Corporation
PARTICIPATING COMPANIES
Mining
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20. OceanaGold (Philippines), Inc.
21. Ore Asia Mining and Development
Corporation
22. Pacific Nickel Phils., Inc.
23. Philex Mining Corporation
24. Philippine Mining Development
Corporation
25. Philsaga Mining Corporation
26. Platinum Group Metals Corporation
27. Rio Tuba Nickel Mining Corporation
28. Sinosteel Phils. H. Y. Mining Corporation
29. SR Metals, Incorporated
30. Taganito Mining Corporation
31. TVI Resources Development Philippines,
Inc. – Cagdianao (Canatuan)
Mining
1. Chevron Malampaya LLC
2. Galoc Production Company
3. Nido Production Galoc
4. PNOC - Exploration
Corporation
5. Shell Philippines Exploration
B.V.
Oil and Gas
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KEY FINDINGS
The Report covers 93% of total revenues in the
mining, oil and gas sectors.
Total reconciled revenue for 2014 (excluding
funds and mandatory expenditures):
PhP 53,852,731,024
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KEY FINDINGS
Distribution of Total
Reconciled Collections
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KEY FINDINGSMajor Collecting Agencies
• BIR revenue streams (6):1. Corporate income tax
2. Excise tax on minerals
3. Withholding tax on foreign
shareholder dividends, on profit
remittance to principal and on
royalties to claim owners
4. Value added tax on
importations
• DOE revenue stream (1):
Government share from oil and
gas production
• MGB – royalties from mining
operations
• BOC – Customs duties and
VAT
• LGU – Business taxes and
RPT
• NCIP – Royalty to IPs
DOE
BIR
MGB
BOCLGU NCIP
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KEY FINDINGS
Agencies with least amount of discrepancy
DOE: PHP 0 (0%)
BOC: PHP 58,962 (0%)
Entities with highest percentage of
unexplained variance
NCIP: PHP 117,136,422 (38.6%)
LGUs: PHP 56,618,678 (17.7%)
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PROPORTION OF REVENUE STREAMS
MINING OIL&GAS
Corporate income tax
Royalty on mineral reservation
Excise tax
Withholding tax-Foreign shareholder dividends
Others
Corporate income tax
Government share from oil and gas production
Withholding tax- Profit remittance to principal
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DISTRIBUTION OF
LGU RECEIPTS FROM THE
MINING SECTOR
Region VII
Region XIII
Region V
Region II
Region IV-B
Region XI
LGU’s percentage share in total collection:
PHP 320,782,806 (1%)
Highest-collecting LGUs:
Region VII: PHP 79.7m (24.8%)
Region XIII: PHP 74.1m (23.1%)
Region V: PHP 52.4m (18.32%)
NCR does not host any mine project but host most principal offices received 4%
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ISO 14001
Companies that are considered compliant as of 20 December 2016 are as follows:
• AAM-Phil Natural Resources Exploration and Development Corporation
• Benguet Corp.
• BenguetCorp. Nickel Mines, Inc.
• Cagdianao Mining Corporation
• Carmen Copper Corp.
• Carrascal Nickel Corporation
• Citinickel Mines and Development Corporation
• Coral Bay Nickel Corporation*
• CTP Construction and Mining Corporation
• Eramen Minerals, Inc.
• FCF Minerals Corporation
• Filminera Resources Corp.
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• Greenstone Resources Corp.
• Hinatunan Mining Corp.
• Krominco, Inc.
• Lepanto Consolidated Mining Co.
• LNL Archipelago Minerals, Inc.
• Marcventures Mining and Development Corp.
• Mindanao Mineral Processing and Refining Corporation*
• OceanaGold (Philippines), Inc.
• Philex Mining Corp.
• Philippine Gold Processing and Processing Corp.*
• Philsaga Mining Corporation
• Platinum Group Metals Corporation
• Rio Tuba Nickel Mining Corp.
• SR Metals, Inc.
• Taganito Mining Corp.
• TVI Resource Development, Inc.
• Westernshore Nickel Corp.