Overview of Extractives Industries

Transcription

1 Overview of Extractives Industries ABIGAIL OCATE Technical Manager PH-EITI Secretariat

2 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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7 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%

8 OVERVIEW OF THE 3 rd 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 spending Ch 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

9 SCOPE OF THE REPORT 13 revenue streams including 8 mandatory expenditures and funds 36 participating companies (31 large-scale metallic mining, 5 oil and gas) 7 government agencies (BIR, MGB, DOE, NCIP, PPA, BOC and DBM) 63 local government units

10 REVENUE STREAMS 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

11 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

12 COMPARING THE FIRST THREE COUNTRY REPORTS 1 st Report (FY 2012) 2 nd Report (FY 2013) 3 rd Report (FY 2014) Number of participating companies Mining Oil and gas Number of reporting government agencies Number of participating LGUs Number of covered revenue streams

13 PARTICIPATING COMPANIES Mining 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

14 Mining 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 Oil and Gas 1. Chevron Malampaya LLC 2. Galoc Production Company 3. Nido Production Galoc 4. PNOC - Exploration Corporation 5. Shell Philippines Exploration B.V. 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)

15 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

16 KEY FINDINGS Distribution of Total Reconciled Collections

17 KEY FINDINGS Major 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 MGB BIR BOC LGU NCIP DOE

18 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%)

19 PROPORTION OF REVENUE STREAMS Corporate income tax Corporate income tax MINING Withholding tax- Profit remittance to principal OIL&GAS Others Withholding tax- Foreign shareholder dividends Excise tax Royalty on mineral reservation Government share from oil and gas production

20 DISTRIBUTION OF Region XIII LGU RECEIPTS FROM THE Region VII MINING SECTOR 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%) Region IV-B Region XI Region II Region V NCR does not host any mine project but host most principal offices received 4%

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22 ISO 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.

23 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.