Mining fiscal reform bill stalls over ore export ban

A BILL establishing a new fiscal regime for large-scale miners has hit an impasse at the bicameral conference committee, with legislators failing to resolve a deadlock over a proposed ban on ore exports, a senior member of the House of Representatives said.

- By Kenneth Christiane L. Basilio Reporter

A “workable compromise” on the mineral ore export ban is necessary for the measure to move forward, Albay Rep. Jose Ma. Clemente S. Salceda told BusinessWorld.

“It’s an impasse,” he said via Viber, adding that such a compromise has not yet emerged.

The ore export ban, which Mr. Salceda said was supported by some Senators, is designed to force investment in domestic mineral processing facilities. The absence of such processing plants makes the mining industry an ore exporter, losing out on the opportunity to add value to the Philippines' commodity mineral ores.

The Philippines is estimated to hold about $1 trillion worth of copper, gold, nickel, zinc and silver ore reserves, much of which is shipped in ore form to Japan or China in the absence of processing infrastructure and high power costs.

Mr. Salceda said the proposal to force investment in domestic smelting facilities “could backfire” because of the “risks of pushing exports underground, losing up to $4 billion (P223 billion) in legal trade, and scaring off investors already starting to process locally,” he said.