Benguet LGU issues notice of closure vs Philex Mining

Posted at 02/18/2014 3:45 PM

MANILA, Philippines - The local government of Itogon in Benguet has issued a notice of closure against Philex Mining Corp. for its lack of business permit and failure to pay taxes.

Itogon Mayor Victorio Palangdan issued the notice of closure against Philex, since the company does not have a permit for its milling site and tailings pond which is partly located in Itogon.

Palangdan also added Philex has not paid taxes to Itogon and Tuba, where its Padcal mine is located.

"Pag boundary dispute ang pinaguusapan, hindi natin alam kung kailan matatapos yan. Kung 50 years or 100 years, nandiyan pa ba ang Philex Mining?," he asked.

Last December, the local governments of Itogon and Tuba passed a joint resolution stating that they will share the taxes from Philex amounting to P2.2 billion.

"Kaya ang ginawa ng Itogon at Tuba nag-joint meeting ang 2 council... Gumawa ng joint resolution at binigay sa aming 2 mayor, at in-aprubahan namin. Kasi maganda, hating kapatid na ang Tuba at Itogon.

Meanwhile, Philex reiterated its previous position that there are still legal issues that need to be threshed out, including the boundary dispute between Itogon and Tuba.

Philex said the payment of business taxes should be conditioned on the settlement of that dispute.