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Tuesday, January 9, 2024

Mining Operations on Homonhon Island Contribute PHP182.6 Million in Excise Tax to National Government

 TACLOBAN CITY – The Mines and Geosciences Bureau (MGB) reported on Tuesday that the national government garnered PHP182.6 million in excise tax in 2023 from mining operations conducted by two firms on Homonhon Island in Guiuan, Eastern Samar.


Glenn Marcelo Noble, the MGB Eastern Visayas regional director, disclosed that approximately 8.22 million metric tons (MT) of nickel ore were shipped to China last year, resulting in firms paying PHP172.84 million in taxes to the national government.

In addition, the shipment of 25,900 MT of chromite concentrate to China led to the payment of PHP9.77 million in taxes by the company.

Noble emphasized that these figures do not include income tax and expenses for the community under the social development program, which constitutes 1 percent of the operating cost.

Under the 25-year mineral production sharing agreement (MPSA) approved in 2009, Nickelace Inc. and Chromiteking Inc. were authorized to extract chromite within the 300-hectare area of the island.

Despite opposition from various groups, Noble asserted that mining operations on the island generate economic opportunities. He clarified that the MPSA is a government project, and the MPSA holders are contractors.

Noble addressed concerns about the environmental impact, stating, "In the case of Homonhon, there have been no grave violations. What you see on social media are photographs of siltation ponds that collect water for settling sediments before it drains to the ocean."

Homonhon, where Portuguese explorer Ferdinand Magellan first set foot on Philippine soil 500 years ago, is abundant in nickel and chromite. Nickel is utilized in various applications, including armor plating, boat propeller shafts, turbine blades, batteries, and coins. Chromite is employed as a refractory material in the production of steel, copper, glass, and cement. (PNA)


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