An inter-agency meeting aims to streamline the process of obtaining small-scale mining permits, Anti-Red Tape Authority (ARTA) Secretary Ernesto Perez announced on Friday.
ARTA, central bank to iron out process of obtaining mining permits
Streamlining Small Scale Mining Permits Pros:
- Increased Legal Compliance: Perez pointed out that currently, only two small-scale mining organizations sell their gold to the Bangko Sentral ng Pilipinas (BSP). Streamlining the permit process could encourage more miners to operate legally, reducing the black market sales.
- Economic Benefits: By simplifying the permit process, small-scale miners can potentially earn more by selling their gold at competitive prices offered by the BSP, rather than lower prices on the black market. This can improve their livelihoods and stimulate local economies.
- Government Revenue: Legal operations would allow the government to collect taxes and fees, which are currently lost to illegal mining activities. This can increase national revenue and potentially fund more public services and infrastructure.
- Resource Utilization: Perez mentioned that currently, only about one percent of resources are captured due to illegal operations. Streamlining the permit process could significantly increase resource utilization and national gold reserves.
- Potential Legislative Support: Suggestions from the inter-agency meeting might lead to revisions in Republic Act 7076, potentially making it easier for small-scale miners to comply with regulations and thus benefiting the industry as a whole.
Streamlining Small Scale Mining Permits Cons:
- Implementation Challenges: Streamlining processes often sounds simpler than it is. There may be bureaucratic resistance, logistical challenges, and unintended consequences that could complicate the initiative.
- Enforcement Issues: Even with streamlined processes, ensuring compliance among all small-scale miners could be difficult. Some miners might continue to avoid the formal system due to distrust of authorities or other barriers.
- Black Market Persistence: There is no guarantee that all miners will shift to legal channels, especially if black market buyers offer immediate cash without bureaucratic delays, even if the price is lower.
- Regulatory Overload: Rapid changes in the permitting process could overwhelm both miners and regulatory bodies, leading to confusion and potential mismanagement.
- Economic Disparities: While the intention is to benefit all small-scale miners, there might be unintended economic disparities where only those with better access to information and resources can take advantage of the streamlined processes.
Perez remains optimistic that the streamlined process will lead to more small-scale miners registering legally. He believes this could be a win-win situation, benefiting miners with better earnings and the government with increased tax revenues. However, the success of such an initiative depends on effective implementation, enforcement, and addressing potential challenges that may arise.
