Alcoy-based Dolomite Mining Corporation vows to comply with the cease and desist order issued by the Province of Cebu in relation to their supplying dolomite ore to Philippine Mining Service Corporation (PMSC).
In a letter undertaking submitted on Monday, March 11, to Cebu Governor Gwen Garcia by their legal counsel, Atty. Raymund Martelino, it stated that DMC will ensure immediate compliance with the order “due to its (PMSC) alleged continuing violations of existing law, rules, and local ordinances.”
“In compliance with said order, we undertake to ensure compliance therewith immediately. Further, DMC reaffirms its commitment to faithfully adhering to all relevant laws, rules and regulations.”
The issue arose when the Capitol discovered that DMC continued to supply dolomite to PMSC despite the previous directive from Capitol to cease from such actions due to PMSC’s tax violations against the Capitol.
Governor Garcia initially issued an Executive Order in October 2020 for the stoppage of PMSC’s operations in Brgy. Pugalo due to its failure to pay taxes to the provincial government as required by Provincial Ordinance No. 2008-10.
On February 17, 2023, Governor Garcia issued Executive Order No. 7 Series of 2023, reinforcing the directive for PMSC to immediately halt processing, selling, and transporting dolomite and other quarry resources due to violations of local tax and environmental laws.
However, PMSC defied the initial order by buying over 2.5 million metric tons of mineral resources extracted by the DMC, the mining leaseholder in Alcoy, from September 2020 to December 2022, according to the data by the Mines and Geosciences Bureau (MGB).
This prompted the governor to revoke DMC’s Mineral Production Sharing Agreement (MPSA) with the Capitol, which entitles it to mine dolomite in Alcoy for 25 years, until 2030.
DMC has begun settling its tax obligations to the Capitol in an installment basis beginning April last year, as it also failed to pay its tax dues since 2008 — a thing which PMSC has remained defiant of as of this writing.
Under Cebu Provincial Ordinance No. 2008-10, mining companies operating in the province are required to pay taxes to the Provincial Government.
The ordinance specifies that a 10% tax, up from the previous 2%, of the local market value per cubic meter of quarry resources extracted within the province’s jurisdiction must be paid. This tax applies to permit holders, licenses, contracts, or agreements issued by entities other than the provincial government. | Jude Torres