Mining

Title

Mining

Creator

Brimo, Henry A.

Language

English

Source

The American Chamber of Commerce Journal Volume XXX (Issue No. 6) June 1954

Year

1954

Rights

In Copyright - Educational Use Permitted

Fulltext

232 AMERICAN CHAMBER OF COMMERCE JOURNAL June, 1954 loads lots has decreased due to keener competition by land haulers. There is also the scarcity of money, as may be noted from the general decline in the prices of many com modities, well demonstrated by special sales at reduced prices. For the month of May the carloadings will continue the favorable trend shown in the month of April. Mining By Henry A. Brimo President Philippine Gold Producers Association, Inc. THE late Congress of the Philippines held its last regular session on May 20, 1954. On that day, it passed House Bill No. 2294, entitled “An Act to Provide for Emer gency Assistance to the Gold Mining Industry of the Philip pines, to Authorize the Appropriation of Funds Therefor, and for Other Purposes.” Passage was aided, and in fact, made possible by a certificate of urgency signed by President Ramon Magsaysay which allowed final voting to take place in both Houses without the normally necessary three readings. This bill was introduced in the House of Representa tives by Congressmen Reynaldo P. Honrado, Ramon P. Mitra, and Luis Hora. In the Senate, it was sponsored by Senator Fernando Lopez, while Senator Emmanuel Pelaez gave the introductory remarks and clarified its provisions before actual voting took place. On the previous day (May 19), House Bill No. 1862, introduced by Congressmen Antonio V. Raquiza, Erasmo R. Cruz, Eulogio Rodriguez, Jr., Jose Puey, and Lorenzo C. Teves, and entitled “An Act Amending Section One of Republic Act Numbered Six Hundred One” (re tax on foreign exchange) was also approved by Congress, resulting in relief for the mining industry from the 17% Exchange Tax. This bill benefits the base-metal mines, as the gold producers had received this exemption the previous year through the enactment of Republic Act No. 909, which legislation also gave the gold producers, as readers will recall, exemption from the Compensating Tax as well. The Subsidy Bill divides the individual gold producers into marginal and non-marginal mines, depending on whe ther the total net profit is above or below the “base profit”. The bill defines “base profit” as that profit “equal to the quotient of the total remaining capital investment divided by the anticipated lifetime of the ore reserve plus 10%; or 10% of the gross receipts, whichever is lower”. Mines thus classified as “marginal” will be allowed, at their option, to sell their newly-mined gold in the local free market (and forfeit the subsidy) or to the Central Bank, where it will receive a total of Pl 11.72 per ounce for refined gold (roughly Pl 11.00 bullion). “Non-marginal” mines have the choice of the free market or the subsidy, but in case a mine chooses the latter, i.e., sells its gold to the Central Bank, it will receive only P105.40 per ounce refined (roughly P104.68 bullion). On the day before the last Congressional session (May 20), local bullion was sold for P105.25 per ounce. The first sale after May 20, or after the bill was passed, occurred during the May 22/23 week-end and at a price P3.75 per ounce higher, or P108.00. Subsequently there was a sale on May 25 at P109.00 and two days later at P109.85, all for bullion. Heavy sales of refined were also done during this time, all at Pl 10.00 per ounce. It is likely that the price will remain around these levels for the time being, or until the subsidy takes full effect after some 60 days (30 days while it awaits the usual Presidential signature and ENGINEERING EQUIPMENT & SUPPLY COMPANY, Inc. MACHINERY • MECHANICAL SUPPLIES • ENGINEERS • CONTRACTORS AIR CONDITIONING For Offices, Theatres, Hospitals, Stores, Restaurants, Hotels, Clubs and Homes ★ ★ ★ Suppliers of MACHINERY, EQUIPMENT and INDUSTRIAL SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants ★ ★ ★ ENGINEERING — DESIGN — APPLICATION — ESTIMATES INSTALLATION — MAINTENANCE — SERVICE — REPAIRS General & Sales Office 174 M. de Comillas Manila Tel. 3-29-21 ★ ★ ★ Operating: MACHINE SHOPS • STEEL PLATE SHOPS STRUCTURAL STEEL SHOPS • WELDING SHOPS • BLACKSMITH SHOPS • SHEET METAL SHOPS • MARINE RAILWAY Engineering Shops No. 1 Calle L. Segura & Pasig River Mandaluyong, Rizal Tel. 6-65-68 June, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 233 another 30 days as allotted in the bill itself for the Central Bank to prepare a certified estimate of taxes it expects to collect from the gold producers and which estimate will be used to charge the National Treasury for such funds as will be necessary to begin the subsidy) to 70 days hence. Thus, although it will take time to fully effectuate the Subsidy Bill, the premium price of gold has in effect already given gold producers much of the expected benefits. Just what will happen to the gold price after the Sub sidy Bill has become law and is officially in use, is some thing we will not attempt to forecast. Obviously, however, the possibility exists that the local gold price could advance to a level as high as the official subsidy price, or, under certain circumstances, higher. House Bill No. 1862 extends relief to the base-metal mines from the 17% Exchange Tax on their importations of machinery, equipment, accessories, and spare parts as well as of carbides, explosives, and dynamite. It is a generous relief and one that will benefit the industry no little. Lumber By Pacifico de Ocampo Secre tary- Treas urer Philippine Lumber Producers’ Association, Inc. DURING the month under review, April, 1954, the Philippines exported 42,299,336 bd. ft. of logs and lumber, 22,796,555 less than the preceding month. The big decrease was mainly due to a drop in the shipment of logs to Japan, from 53,430,905 bd. ft. in March, 1954, to 31,844,987 bd. ft. in April, 1954, or a decrease of 21,585,918 bd. ft. The exports to the United States increased by 427,543 bd. ft., from 6,173,967 bd. ft. in March, 1954, to 6,601,510 bd. ft. in April, 1954. Exports to all other coun tries decreased by 1,638,180 bd. ft., from 5,491,019 bd. ft. in March, 1954, to 3,852,839 bd. ft. in April, 1954. The following are the quantities of logs and lumber in bd. ft, inspected for export during April, 1954, as released by the Bureau of Forestry. Volume in Board Feet Shipper Destination Lumber Logs Aguinaldo Development Corp.. Japan 299,930 Agusan Timber Corp................ Japan 2,990,000 Alberto S. Llorente..................... Japan 500,124 Anakan Lumber U. S. A. 87,697 400,000 Company................................... Japan 2,000,000 Anacleto O. Raneses................... Japan 489,730 Atkins Kroll & Co., Inc............. Formosa 484,200 American Builders, Inc. ............. Guam 9,296 Basilan U. S. A. 741,825 722,711 Lum Hongkong 110,732 ber Formosa 1,000,000 Company.......................... Japan 649,881 Bicol Industries Co...................... Formosa 346,260 Brigido R. Valencia.................... Japan 531,908 Bislig Bay U. S. A. 158,199 Lumber Hongkong 205,121 Co. Inc.................................... Japan 3,515,412 Calapan Lumber Co., Inc.......... U. S. A. 20,064 231,578 Cipriano Luna Lumber Enterp . Japan 999,990 Dee Cho Lumber Co., Inc.... . U. S. A. 32,000 Edward L. Kincaid................... U. S. A. 175,536 Extensive Enterprises Corp.. . . Japan 579,972 General Enterprises, U. S. A. 28,000 Inc................................................ Japan 800,000 G. S. Manalac Enterp................ Japan 1,202,767 Getz Bros. & Co........................... Formosa 500,000 Gonzalo Puyat & Sons, Inc.. . . Japan 500,208 Iligan Lumber Co., Inc.............. Japan 486,519 Insular U. S. A. Africa 801,870 603,718 Lumber Canada Eire 29,635 96,190 Company............................... Hawaii 69,880 INSULAR LUMBER COMPANY FABRICA, OCC. NEGROS MEMBER — PHILIPPINE LUMBER PRODUCERS’ ASSOCIATION, INC. --------- ¥---------SPECIALISTS IN KILN-DRIED LUMBER and MANUFACTURERS OF BOXES OF ALL DESCRIPTIONS MANILA DISTRIBUTORS: Norton & Harrison Company 814 Echague Manila Philippine Lumber Manufacturing Company 14-30 Soler St. Manila Insular Saw Mill, Inc. 340 Canonigo, Paco Manila MANILA OFFICE: 603 FILIPINAS BUILDING

pages

232-233

Media