Govt to form inter-agency committee vs illegal small-scale mining

The government is now pushing for the creation of an interagency fact-finding committee to look into the series of illegal small-scale mining activities and increasing gold smuggling in the country, the Mines and Geosciences Bureau (MGB) said Tuesday.   The committee will be empowered to fully-implement the law and will become a formidable force in the drive against illegal mining operations, according to Leo Jasareno, MGB director.    “We are not blinking on our drive against illegal mining in the country, particularly the filing of complaints against irresponsible personalities,” Jasareno said.   The committee is composed of the Department of Interior and Local Government, the Department of Environment and Natural Resources, and the Department of Justice.   On Monday, the interagency committee conducted its first meeting, presided by DOJ Secretary Leila de Lima and DENR Secretary Ramon Paje.   The group focused on the need for a judicial inquiry in the growing problem illegal small-scale mining operations and the sale of local gold in the black market. Black market   Paje earlier said that given the continuing high price of gold and the increasing number of small-scale mining areas, the decrease in gold purchases by the Bangko Sentral ng Pilipinas (BSP) clearly means that gold outputs are going to the black market and smuggling activities.    The DENR chief added that the downfall of gold purchases started during the second semester of 2011 when the Bureau of Internal Revenue (BIR) strictly imposed the collection of the two percent excise tax and 10 percent creditable withholding tax (CWT) from the sale of gold by small-scale miners and traders pursuant to Revenue Regulations No. 7-2008 dated March 25, 2008.   The BSP, through its five buying stations in Baguio City, Davao City, Zamboanga City, Naga City and Quezon City deducts the corresponding taxes from small-scale miners/traders and remit the same to the BIR.    In January to June 2012, the value of metallic mineral production in the country dropped by 26 percent to P51.2 billion, from P69.2 billion a year ago – attributed to the 95 percent decline in the gold purchases by the BSP.   Jasareno said that the substantial drop in the gold purchases of BSP from small-scale miners and traders was a telling factor for the sluggish performance. He added that total gold production nosedived to 8,382 kilograms valued at P18.18 billion, from 22,804 kilograms worth P44.52 billion year-on-year.  The BSP gold purchases accounted for a measly 786 kilograms as against the 15,003-kilogram contribution the previous period, representing the 95 percent plunge.  “In effect, the BSP gold purchases shared only a dismal 9.37 percent of the entire gold production, compared to 74 percent a year ago,” Jasareno said. — KBK, GMA News