Speech by President Ferdinand R. Marcos Jr. at the Ceremonial Signing of the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act

Thank you Executive Secretary, Secretary Luc Bersamin. [Please take your seats.]

Senate President Chiz Escudero and the honorable members of the Senate here present; House Speaker Martin Romualdez and the members of the House of Representatives also here; the honorable members of the Cabinet; our partners from the private sector and stakeholders; my fellow workers in government; distinguished guests; ladies and gentlemen.

A good day to all! Good morning!

Around the world, the demand for minerals is surging. These minerals are needed for the service – the new technologies – for batteries, solar panels, other vital components of clean energy.

Some even call these resources as the building blocks of a green and digital economy.

We are blessed because the Philippines is rich in such resources.

If the world needs these minerals, then we must make sure that our mining infrastructure is robust and that Filipinos, above all, benefit from it.

With the signing of the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act, we are putting into place a system that is fairer, that is clearer, and more responsive to the needs of both our people and the environment.

Sa ilalim ng batas na ito, mas magiging simple ang pamamalakad at paggamit sa pondo na mula sa pagmimina, matitiyak na may bahagi ang pamahalaan sa kita, maitataguyod ang malinaw at tapat na sistema, at maibibigay ang seguridad sa mga mamumuhunan.

Higit sa lahat, layon natin na palakasin ang proteksyon ng kalikasan at mas makinabang ang mga komunidad na naaapektuhan ng pagmimina.

This reform mandates mining companies that operate within the government’s designated mining sites to pay a royalty of five percent of their gross output.

Those operating outside mineral reservations, on the other hand, will be subject to a margin-based royalty on income from metallic mining operations.

It also imposes additional taxes when a company’s profit margin exceeds 30 percent, ensuring that the government receives its fair share from the extra profit and that the benefits will ripple into the lives of ordinary Filipinos.

When collecting taxes, each mining contractor is recognized as a separate taxable entity. This prevents the consolidation of income and expenses of all mining projects by the same taxpayer.

Gone are the days when a mining contractor can bury its profits beneath the weight of losses. No longer can we use the one project’s failure to conceal another project’s success.

Transparency is now the rule, accountability our standard, and fairness the measure by which we move forward.

In light of this, the Bureau of Internal Revenue and the Bureau of Customs will examine and audit all sales and exports of minerals and inspect mining company records, in coordination with the Mines and Geosciences Bureau.

In addition to the allotted national revenue collections, local government units will now receive 40 percent of the gross collections from excise taxes on mineral products, royalties, and other taxes or fees.

This ensures that the communities who bear the brunt of mines will also experience their benefits.

Meanwhile, 10 percent of royalties from government-designated mining sites will go to the Mines and Geosciences Bureau and the Metals Industry Research and Development Center.

This is done to guarantee that part of the revenues is reinvested in exploration, in research, above all, environmental protection and sustainable practices.

So, ladies and gentlemen, with this law, we send a very clear and powerful message: Progress shall never come at the cost of our people, nor our planet.

Minerals are finite. Once extracted, they are gone forever. But if we use them wisely—tax them fairly, protect our environment as we mine, and ensure that revenues return to the people—then their value will outlive all of us.

To our legislators and stakeholders who collaborated to pass this measure, thank you.

Through this law, you are bringing us a step closer to the development of downstream industries and manufacturing of essential products which bring us greater value.

So, together, let us build the mining industry that is a transparent, and accountable, and sustainable industry.

One where our communities are empowered, our environment preserved, and our people are the ultimate beneficiaries of this progress.

Maraming, maraming salamat!

Mabuhay ang sambayanang Pilipino!

Magandang umaga po sa inyong lahat! [applause]

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