Royalty bill for indigenous folks filed in Congress

By Dexter A. See

BAGUIO CITY – A lawmaker filed a bill in the House of Representatives mandating the payment of 1 percent of the gross output of the permittee, contractor or mining operator to the indigenous cultural communities and indigenous peoples as royalty payment upon the exploitation, utilization and development of the minerals within their ancestral lands.

House Bill 5473 authored by Rep. Bernardo M. Vergara seeks to amend Section 17 of Republic Act 7942 or the New Philippine Mining Act in order to ensure that indigenous cultural communities and indigenous peoples will get their due compensation for the exploitation, utilization and development of the mineral resources within their ancestral lands so that they will be able to benefit from it.

“Our bill seeks to address the perceived inequity in the allocation and distribution of socio-economic benefits derived from the mineral resource industry, particularly for indigenous cultural communities and indigenous peoples whose ancestral domains and lands have been covered by mining operations,” Vergara stressed, adding that under the Philippine Mining Act of 1995, royalty payments due to the affected indigenous cultural communities and indigenous peoples are wholly dependent upon the terms stipulated by the parties and not mandatory.

According to him, the original scheme places the indigenous cultural communities and indigenous peoples at a gross disadvantage during the bargaining process which often times result in a royalty payment determination that is unjust and inequitable thereby depriving them a chance to significantly improve their living condition and a chance to enjoy sustainable development of their own communities.

“By fixing the royalty payments for indigenous cultural communities and indigenous peoples at 1 percent of gross revenues, we will be able to increase the confidence of existing and prospective investors on the consistency and stability of Philippine mining policies. Essentially, it underscores the government’s declared policy of providing for a predictable, stable and clear cut policy for investments,” Vergara said.

He said there is need to raise indigenous cultural communities and indigenous peoples in equal footing with the investors, the State and other stakeholders in order to secure their welfare by providing the appropriate standard of royalty payment to the supposed beneficiaries.

Furthermore, Vergara explained providing a definite figure for royalty payment to indigenous cultural communities and indigenous peoples will deepen public trust in mining projects, enhance business confidence within the industry and further foster added growth to an industry that worthily contributes to national and local economy.