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LONDON (Alliance News) - Bezant Resources PLC Monday said it is working with other major operators in the Philippine mining sector to try and find out more about a potential new revenue-sharing tax regime that the Philippine press has reported is being proposed by civil servants, warning that the proposals were already having a negative impact on its business.
The Philippines has been undertaking an extensive review of all aspects of its domestic mining industry for the last two years, part of a broader restructuring of the country's major domestic industries.
Bezant said the Philippine press has reported that the Mining Industry Coordinating Council, a civil service body, is putting forward a proposal for a revenue-sharing scheme for mining companies whereby the Philippines Government would receive 55% tax on a mining operation's adjusted net revenue or 10% tax on its gross revenue, plus a percentage of windfall profit, whichever is higher.
It noted that the coordinating council would have to have the proposals approved by the country's President, Congress and Senate before they could become law. It said that so far, the council hasn't yet confirmed whether it has submitted the proposals to the President.
"The Chamber of Mines of the Philippines has expressed its opposition and concerns with respect to the above mentioned tax proposal. Bezant is currently working with certain other major operators in the Philippines mining sector to seek to consult with the (Mining Industry Coordinating Council) and the Philippines Government in order to outline how such a revenue-sharing scheme would potentially adversely affect inward investment for the Philippines," Bezant said in its statement.
"The proposed revised tax structure for the Philippines mining sector is already having a negative impact on our ongoing discussions with interested parties regarding the potential sale or JV of our flagship Mankayan Project. Accordingly, we fully support (The Chamber of Mines of the Philippines) in its opposition to MICC's proposal and concur with its view that the proposed revised tax regime is neither equitable nor internationally competitive," Chief Executive Bernard Olivier added.
Bezant Resources shares were up 0.5% at 7.41 pence Monday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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