Sagittarius Mines Inc. obtained a business permit from the municipality of Tampakan after a legal battle which saw the Court of Tax Appeals granting a preliminary injunction in favor of the company after being incorrectly assessed by the LGU for nearly P400 million in alleged deficient taxes, a top executive said Wednesday.
SMI legal and compliance manager Stella Joy Segocio highlighted CTA’s initial findings that SMI did not employ “fraud and misrepresentation” when it applied for a business permit as a manufacturer.
“SMI has and will always comply with the law and will continue to do the right thing in all of its activities,” she said. She said the administration of President Ferdinand Marcos Jr. identified mining as a strategic investment and a “key driver in our recovery and long-term growth.”
The Sangguniang Panlalawigan of South Cotabato declared as ultra vires and onerous the numerous provisions of Tampakan’s Revised Municipal Revenue Code of 2022 that would have imposed new or increased business taxes on companies operating in Tampakan.
It also asked the LGU “to stop the enforcement of the provisions of the ordinance declared invalid.”
Tampakan issued SMI’s 2023 business permit after the company paid P24,579 in regulatory and other fees, below what the LGU previously taxed the mining firm.
The business permit is a significant document that will allow SMI to commence construction and to operate the Tampakan Copper-Gold Project, one of the largest undeveloped copper-gold deposits in the world.
SMI said it continues to invest in the development of stakeholders and host communities, in addition to honoring and respecting the rights of the B’laan Indigenous Peoples in the area.
The Philippine miner said it provided more than P24 million in social investment projects like high school and college scholarships, establishment of health centers and health programs, provision of water sources, emergency response and livelihood assistance in 2022.
SMI is the holder of a financial and technical assistance agreement awarded by the Department of Environment and Natural Resources (DENR) in 1995 to explore, develop and operate the Tampakan Copper-Gold Project.
SMI is owned by a Filipino company that is committed to going beyond compliance in accordance with national and international mining standards, with the support of national and host governments and local communities, and backed by an all-Filipino team of experts with long experience in geology, mining, engineering, social development and environmental stewardship.