PHL eyeing how Chile, Australia make money from mining

In search of possible models to adapt and merge under its new mining policy, the Philippines is looking at how Chile and Australia do it, Finance Secretary Cesar Purisima said in a press briefing after Monday’s mid-year Philippine Economic Briefing.   He said this was part of government's preparation for a new legislation covering the mining sector.   President Benigno Aquino III issued Executive Order 79 last July, suspending new mining agreements until legislation improves government revenues from mining operations.   "We're looking at best practices in Chile and Australia," Purisima said, noting that Bogota imposed a revenue sharing deal with mining companies that go higher or lower in tandem with global metals prices.   In the case of Australia, Purisima noted, "They have a carbon tax so we're looking at all these things."   The bottom line is to get a bigger share of mining revenues, have a more definite restoration program and a more mining practice in the Philippines, according to the Finance chief.   He cited the Malampaya Deep-Water-to-Gas Power project in offshore Palawan as an ideal revenue sharing deal between government and the service contract operators.   Spearheaded by the Department of Energy and developed and operated by Shell Philippines Exploration B.V. with joint venture partners Chevron Malampaya LLC and PNOC-Exploration Corporation, The Malampaya project gives its operators up to 70 percent of gross proceeds to recover their investments.   The balance – 30 percent – is shared by government and the consortium on 60-40 basis. When the investments have been recovered, the 30 percent would then increase and allow government to gain more from the project.   The Malampaya consortium turned over $1.1 billion to the government last year. — VS, GMA News