PHILIPPINES Law and Practice Contributed by: Patricia A O Bunye and Rafael Raymundo A Evangelista, Cruz Marcelo & Tenefrancia
5.5 Role of Domestic and International Securities Markets in the Financing of Exploration, Development and Mining The international and domestic securities mar - kets provide financing to the mining industry through bond issuances, initial public offerings and the sale of preferred shares. Mining stocks are also actively traded on the Philippine Stock Exchange. 5.6 Security over Mining Tenements and Related Assets There is currently no Philippine legal framework for taking security over mining interests. How - ever, the IRR of the Mining Act requires MAs and FTAAs to include a stipulation that the financial institutions that have granted loans to contrac - tors are given the authority to designate their assignees, in case of default by the contractors. 6. Mining: Outlook and Trends 6.1 Two-Year Forecast for the Mining Sector In September 2023, the House of Representa - tives passed on the third and final reading House Bill No 8937, or the proposed New Fiscal Regime for the Mining Industry (HB No 8937). The coun - terpart measure, Senate Bill No 2826, is still being deliberated upon in the Senate. Under the bill: (i) the royalty taxes for large-scale mining operations shall depend on whether such operations are within or outside mining reser - vations; (ii) a royalty tax of one-tenth of 1% is imposed on the gross output of the minerals or mineral products extracted in small-scale metal - lic mining operations; (iii) a windfall profits tax on income from metallic mining operations with a maximum rate of 10% is imposed; and (iv) each metallic mining operation that is the subject of
• Finland; • France; • Germany; • Hungary; • India; • Indonesia; • Israel; • Italy;
• Japan; • Kuwait; • Malaysia; • Mexico; • the Netherlands; • New Zealand;
• Nigeria; • Norway; • Pakistan; • Poland; • Qatar; • Romania; • Russia; • Singapore; • South Korea; • Spain; • Sri Lanka; • Sweden; • Switzerland; • Thailand; • Turkey; • the United Arab Emirates;
• the United Kingdom; • the United States; and • Vietnam. 5.4 Sources of Finance for Exploration, Development and Mining The principal sources of financing are debt and equity financing and foreign investments.
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