SAGADA, Mountain Province (PIA) – The campaign of the Bangko Sentral ng Pilipinas (BSP) for small scale miners to sell their gold product to the Central Bank is gaining ground in Cordillera.
Lawyer Dante Cambrì, head of the BSP North Luzon Gold Buying Section, said that the Northern Sagada Barangay Small Scale Mining Association (NSBSSMAI) is now registered with BSP, allowing the central bank to purchase gold from the association.
The Certificate of Registration attests that the NSBSSMAI is compliant with BSP’s Gold Buying
Program and Responsible Gold Sourcing Policy. This indicates that the small-scale miners practice responsible mining in accordance with the Responsible Gold Guidance.
Under Republic Act No. 7076 or the People’s Small-Scale Mining Act of 1991, small scale miners are required to sell their gold to the BSP to help build international gold reserves and contribute to the economy of the country. But they have to be registered with the BSP.
“Bakit kailangan itong registration? Other than it is required by law, kailangan po siya for us to assess with due diligence para makita natin na yung officers, yung association, yung operations niya ay compliant po sa Responsible Gold Sourcing Policy ng Banko Sentral ng Pilipinas,” Cambri said.
Cambri informed that under Republic Act 11256, also known as “An Act to Strengthen the Country’s Gross International Reserves,” all gold sold by registered small scale miners in the country are exempt from tax.
“We have this law, Republic Act 11256. Ano ang sinasabi ng batas na ito? Lahat ng gold na
binebenta ng registered small scale miners sa Banko Sentral ng Pilipinas shall be exempt from tax. Not only income tax, but also the excise tax and the withholding tax,” he said, adding that the BSP buys gold at prevailing international prices.
Joseph Patil-ao Jr., NSBSSMAI president, said that small-scale mining employs around 300 individuals, helping address unemployment in the community.
The association is supported by Planet Gold Philippines that recently turned over a mercury-free processing system facility for safer, cleaner, and environment-friendly mining operations.
The NSBSSMAI is the first small-scale mining association in the Mountain Province, registered with the BSP.
The BSP North Luzon reported last year that even the Cordillera region is rich in minerals such as gold.
Only about one percent of gold production is sold to the government. Thus, the bank continues to call on small-scale miners to sell their gold to the BSP, saying that it will “boost economic growth, improve miner safety, provide financial and technical support, reduce environmental harm and strengthen industry cooperation.“ (JDP/VJLT- PIA-Mt. Province)
