An Act to Provide for Assistance to the Gold Mining Industry

REPUBLIC ACT No. 3089

An Act to Provide for Assistance to the Gold Mining Industry

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1. Short Title. -This Act shall be known as "The Gold Mining Industry Assistance Act of 1961."

Section 2. Definition of terms. -When used in this Act, the following terms shall, unless the context otherwise indicates, have the following respective meanings:

Section 3. Direct Assistance. -To assist the Philippine gold producers to continue operations in the face of the current low gold price and in view of their increased cost of production, as well as other prevailing conditions unfavorable to the gold mining industry, there is hereby created a direct assistance.

Section 4. Gold producers qualified to receive assistance. -To be entitled to the assistance provided in this Act, a gold producer must sell to the Central Bank, and the Central Bank is hereby directed to purchase, its entire production of newly-mined gold, whether produced as principal product or as by-product, at the official price defined in Section two (r) hereof. The Central Bank shall issue a receipt for all gold purchased by it under this Act, which receipt shall show the number of ounces of gold purchased: Provided, That mines producing gold as by-product shall only be entitled to the assistance given to over-marginal gold mines.

Section 5. Manner of payment under this Act. -(a) Any marginal gold producer shall be entitled to the official price as hereinbefore defined under Section two (r) plus an assistance of sixty-five pesos per ounce from the Government for its production within the effectivity of this Act. (b) In case of over-marginal gold mine or mines producing gold as by-product, such mines shall be entitled to the official price as hereinbefore defined under Section two (r) plus an assistance of fifty pesos per ounce from the Government within the effectivity of this Act: Provided, However, That the above provisions notwithstanding, in case of any marginal gold mine the total price, which includes the official price plus the assistance, shall in no case exceed one hundred seventy pesos per ounce of gold; and in case of over-marginal gold mines, the total price, which includes the official price plus the assistance, shall in no case one hundred fifty-five pesos per ounce of gold: Provided, finally, That during the term of this assistance, the gold producer enjoying the same shall give a bonus equivalent to five percent of the assistance it receives to be distributed among its employees whose salaries do not exceed five hundred pesos per month.

Section 6. Term. -This direct assistance shall be effective for a period of three years from the date of approval of this Act.

Section 7. Board to carry out provisions of this Act. -To implement the provisions of this Act, there is hereby created the Gold Mining Industry Assistance Board, hereinafter referred to as the Board, which shall be composed of the Governor of the Central Bank, as chairman, and the Director of Mines and three others, one of whom shall be representative of labor, to be appointed by the President of the Philippines with the consent of the Commission on Appointments, as members. The board shall serve for a term of three years.

The presence of three members of the Board shall constitute a quorum for the exercise of its functions and the affirmative vote of at least three members shall be a valid and a binding act of the Board. In case the chairman is absent in any meeting, the members present shall elect a temporary chairman to preside over the meeting.

Any provision of law to the contrary notwithstanding, the chairman and members of the Board shall receive a per diem of twenty-five pesos for every meeting actually attended. The Board shall hold regular meetings once a month and in no case shall it hold more than three special meetings in one month.

The per diem of the chairman and members of the Board shall be chargeable to the Gold Assistance Trust Fund provided in Section thirteen of this Act.

Section 8. Submittal of quarterly reports. -Gold producers shall each submit to the Board quarterly reports containing their volume and value of gold production, cost of production as defined in this Act, and such other data and information as may be required by the Board.

Section 9. Examination and inspection. -The Chairman of the Board and his duly authorized representatives are hereby authorized to inspect mines property and plants, and to examine books of accounts and records of any gold producer who shall give the necessary facilities for such inspection and examination.

Section 10. Determination of marginal and over-marginal gold mines. -The Board shall determine what mines are marginal or over-marginal gold mines every semester of each calendar year during the effectivity of this Act.

Section 11. Discrimination against Filipino citizens. -No gold producer shall be granted assistance under this Act or, if already granted such assistance, shall be granted further assistance thereunder unless it proves to the satisfaction of the Board that it does not discriminate against citizens of the Philippines in employment, promotions, compensation, grant of concession, and other matters, and for that purpose all producers shall submit to the Board periodically as may be required by the Board a sworn statement of the names, nature of work, educational qualification, experience, compensation and allowances and other qualification, experience, compensation and allowances and other emoluments, and other pertinent data of every foreigner, as well as of every citizen of the Philippines with a college degree, employed by such producer: Provided, However, That the mere filing of a complaint for discrimination shall not prevent the Board from granting to a gold producer the assistance provided for in this Act.

Section 12. Rules and Regulations. -The Board shall, with the approval of the Department Head, promulgate such rules and regulations as may be deemed necessary to implement the provisions of this Act which rules shall be effective thirty days after its publication in the Official Gazette.

Section 13. Fund to carry out the provisions of this Act. -The Secretary of Finance and the Governor of the Central Bank shall, within thirty days from the approval of this Act and from time to time thereafter, make an estimate of the internal revenue taxes, dollar margin fee, special import tax, customs duties, compensating tax and other charges, payable by gold producers directly or indirectly (except those otherwise allocated by law for other purposes), as well as those arising from allocations of foreign exchange equivalent in value to gold sold to the Central Bank, and such estimates shall be certified by said officials. Upon such certification, the Central Bank of the Philippines is authorized to charge the current account of the National Treasury in said Bank in an amount equivalent to such certification and the amount so charged shall be set aside in a trust fund to be known as "Gold Assistance Trust Fund," which is hereby appropriated and shall be available exclusively for the purpose of carrying out the provisions of this Act; Provided, That if the amount available in the "Gold Assistance Trust Fund," is not sufficient to provide fully for the assistance to be given to the gold mines under this Act, the Central Bank is further authorized to charge the current account of the National Treasury in such amount as may be necessary to make up for the deficiency.

Section 14. Duties and functions of the Board. -The Board shall have the following functions and duties:

Orders, findings, awards, decisions, or resolutions of the Board may be appealed to the President of the Philippines, by filing a notice of appeal and a motion for reconsideration within fifteen days from notice. The motion must state the grounds on which it is based and the reasons and arguments in support of such reconsideration. A party aggrieved by the decision of the President on the matter may have recourse to the ordinary courts of justice with original jurisdiction, by filing the proper action or proceeding within thirty days from notice.

Section 15. Penal Provisions. -All statements, representations, or reports required under this Act shall be under oath, and any person who knowingly makes any false statement, representations or report under oath, shall be liable for perjury under the provisions of the Revised Penal Code.

Section 16. Repealing clause. -All Acts or parts thereof which are inconsistent with any provisions of this Act are hereby repealed.

Section 17. This Act shall take effect upon its approval.

Approved: June 17, 1961.