Cap on small-scale mining plants may backfire, global group warns

A global nonprofit group has warned that a proposed P200-million capital cost cap on mineral processing plants for small-scale miners could create unintended risks over time.

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Speaking during a public consultation conducted by the Mines and Geosciences Bureau (MGB) last week, John Joe Gayao of the Artisanal Gold Council questioned the use of a fixed peso amount as the sole qualifying criterion for small-scale processing facilities.

“The cap on capital cost is likely to become obsolete quickly due to inflation, cost escalation, regional cost differences and access constraints for remote communities,” Gayao said.