76 OG No. 44, 8231-57 Supp. (November 3, 1980)

[ PRESIDENTIAL DECREE NO. 1714, August 21, 1980 ]

AMENDING PARAGRAPH (1) OF SECTION 6 OF REPUBLIC ACT NO. 1828 AS AMENDED BY REPUBLIC ACTS NOS: 2077 AND 4167 AND PRESIDENTIAL DECREE NO. 1001.

WHEREAS, the continued development of the Surigao Mineral
Reservation has become more important to the national economy;

WHEREAS, the tax exemption granted to the operator under
paragraph (1) of Section 6 of Republic Act No. 1828 as amended, has expired on
December 31, 1979; and

WHEREAS, in view of increased costs of operation,
particularly of fuel, the development of the Surigao Mineral Reservation cannot
be pursued unless the tax exemptions originally granted to the operator are
extended.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines by virtue of the powers vested in me by the Constitution, do hereby
decree and order the amendment of Paragraph (1) of Section 6 of Republic Act No.
1828 as amended, as follows:

SECTION 1. Paragraph (1) of Section 6 of Republic act
No.1828 as amended, is hereby further amended to read as follows:

(1) The operator shall be paid for services rendered and expenditures
incurred beginning with the end of the first year after the effective date of
the contract the sum of one peso (P1.00) per year, and the operator shall
receive by way of additional compensation, an amount equivalent to a portion of
the gross annual receipts, from all minerals, mineral and metal products, and
by-products resulting from the operation, processing, and disposition thereof
computed such that the Government shall retain not less than three and one-half
per centum of the gross annual receipts, f.o.b. point of exports:
Provided, That the operator shall, from January 1, 1980 to December
31,1981, be exempt from all taxes, duties, fees and charges, both national and
local, directly payable by it for any work or activity, equipment, machinery,
materials, instruments, supplies, accessories, structures, buildings, lands,
improvements and/or other properties directly connected with or needed and to be
used or being used exclusively in the operation, other than those
provided in this Act and except those fees and charges that are imposed
for work or services actually rendered to the operator: Provided,
however, That the operator shall put the area or areas covered by the
contract into actual production within five years from the effective date of the
contract. Thereafter, penalties may be applied against the operator for failure
to effect such production, and/or reach certain levels of production within
specific time period, as may be agreed upon: And Provided, further,
That exemptions from taxes shall not extend to taxes due from contractor's
personnel in their personal capacities.

SECTION 2. All provisions of Republic Act No. 1828, as
amended; the Memorandum of Agreement and the Operating Contract dated July 3,
1966 executed between the Republic of the Philippines and Marinduque Mining
& Industrial Corporation and all other laws, decrees, executive orders., or
parts thereof, inconsistent with this Decree are hereby repealed, modified
and/or amended accordingly. Presidential Decree No. 1662 is hereby revoked.

SECTION 3. This Decree shall take effect immediately.

Done in the City of Manila, this 21st day of August, in the year of Our Lord,
nineteen hundred and eighty.

	(Sgd.) FERDINAND E. MARCOSPresident of the Philippines
	By the President:
	(Sgd.) JOAQUIN T. VENUS, JR.
		Presidential Assistant

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