SCOPE OF THE FIRSTPH-EITI REPORT

Atty. Marie Gay Alessandra V. OrdenesNational CoordinatorPH-EITI

OVERVIEW OF EITI

EITI STANDARDEITI STANDARD

EITI REQUIREMENT 3EITI REQUIREMENT 3

Th EITI i EITI R t th t i l d t t lThe EITI requires EITI Reports that include contextualinformation about the extractive industries.

EITI STANDARD

EITI Requirement 4:

EITI STANDARD

EITI Requirement 4:

The EITI requires the production of comprehensive EITIThe EITI requires the production of comprehensive EITIReports that include full government disclosure ofextractive industry revenues and disclosure of allextractive industry revenues and disclosure of allmaterial payments to government by oil, gas and miningcompaniescompanies.

EITI STANDARD

• Some information under the EITI standard are

EITI STANDARD

Some information under the EITI standard are required while others are only encouraged.

• The MSG decides which among the encouraged items• The MSG decides which among the encouraged items should be included

Th MSG h th di ti t i l d dditi l• The MSG has the discretion to include additional information aside from what the EITI standard

irequires

THE PHILIPPINE EITI REPORTTHE PHILIPPINE EITI REPORT

YEAR COVERED: 2012YEAR COVERED: 2012

DEADLINE: DECEMBER 2014

LEVEL OF DETAIL:

Per revenue stream, per company, per commodity, per site

REPORTING COMPANIES: 39 LARGE SCALE METALLIC MINING COMPANIES; 11 OIL AND GAS COMPANIES1 COAL company2 additional companies in ARMM (pending outreach)2 additional companies in ARMM (pending outreach)

THE PHILIPPINE EITI REPORTTHE PHILIPPINE EITI REPORT

REPORTING GOVERNMENT AGENCIESREPORTING GOVERNMENT AGENCIES

A. Contextual Information: PSA, BOI, DOLE, MGB, DOE, PNOC, PMDC,

DBM, BLGF, COA

B. Revenue streams: MGB, DOE, BIR, LGU, BLGF, PPA, BOC, NCIP

C. State-owned Enterprises (GOCC): PMDC, PNOC

REPORTING COMPANIESREPORTING COMPANIES

A MININGA. MINING1. Apex Mining Company, Inc.

2. Benguet Nickel Mines, Inc. (Benguet Corporation)

3. Berong Nickel Corporation

4. Cagdianao Mining Corporation

5 Carmen Copper Corporation (Atlas Consolidated Mining and Development Corporation)5. Carmen Copper Corporation (Atlas Consolidated Mining and Development Corporation)

6. Citinickel Mines and Development Corporation

7. CTP Construction and Mining Corporation

8. Eramen Minerals, Inc.

9. Filminera Resources Corporation

10 Hinatuan Mining Corporation10. Hinatuan Mining Corporation

REPORTING COMPANIESREPORTING COMPANIES

A MININGA. MINING11. Lepanto Consolidated Mining Company

12. LNL Archipelago Minerals Incorporated

13. Mt. Sinai Mining Exploration and Development Corporation

14. Oceana Gold (Philippines), Inc.

15 Philex Mining Corporation15. Philex Mining Corporation

16. Philsaga Mining Corporation

17. Platinum Group Metals Corporation

18. Rapu-Rapu Minerals, Inc.

19. Rio Tuba Nickel Mining Corporation

20 SR Metals Incorporated20. SR Metals, Incorporated

REPORTING COMPANIESREPORTING COMPANIES

A MININGA. MINING21. Taganito Mining Corporation

22. TVI Resource Development

23. Zambales Diversified Metals Corporation

24. Adnama Mining Resources Incorporated

25 Cambayas Mining Corporation25. Cambayas Mining Corporation

26. Carrascal Nickel Corporation

27. Greenstone Resources Corporation

28. Johson Gold Mining Corporation

29. Krominco, Inc.

30 Leyte Iron Sand Corporation30. Leyte Iron Sand Corporation

REPORTING COMPANIESREPORTING COMPANIES

A MININGA. MINING31. Marcventures Mining and Development

32. Ore Asia Mining and Development Corporation

33. Oriental Synergy Mining Corporation

34. Philippine Mining Development Corporation (PMDC)

35 AAM PHIL Natural Resources Exploration and Development Corporation35. AAM-PHIL Natural Resources Exploration and Development Corporation

36. Shenzhou Mining Group Corporation

37. Shuley Mine Incorporated

38. Pacific Nickel Philippines, Inc.

39. Sino Steel Phils. H.Y. Mining Corporation

Note: Coal and Additional 2 mining companies in ARMM for engagementNote: Coal and Additional 2 mining companies in ARMM for engagement

REPORTING COMPANIESREPORTING COMPANIESB. OIL AND GAS1. Shell Philippines Exploration B.V (SPEX)

2. Chevron Malampaya LLC

3 Phili i N ti l Oil C (PNOC) E l ti C ti3. Philippine National Oil Company (PNOC) - Exploration Corporation

4. The Philodrill Corporation

5. Oriental Petroleum & Minerals Corporation

6. Nido Petroleum Phils. Pty. Ltd.

7. Alcorn Gold Resources Corporation

8 Trans Asia Oil & Energy Development Corporation8. Trans Asia Oil & Energy Development Corporation

9. Galoc Production Company

10. Forum Energy Philippines Corporation

11. Forum Pacific Incorporated

REPORTING COMPANIESREPORTING COMPANIES

C STATE OWNED ENTERPRISES (GOCC):C. STATE OWNED ENTERPRISES (GOCC):

1.Philippine Mining Development Company pp g p p y(PMDC)  

2 Philippine National Oil Company (PNOC)2.Philippine National Oil Company (PNOC)

CONTENTS OF THE REPORTCONTENTS OF THE REPORT

A. CONTEXTUAL INFORMATION

B. REVENUE STREAMS

C ADDITIONAL INFORMATION AS DETERMINED BY THE MSGC. ADDITIONAL INFORMATION AS DETERMINED BY THE MSG

D. IDENTIFICATION OF DISCREPANCIES (IF ANY)

E. RECONCILIATION OF DATA/EXPLANATION FOR DISCREPANCIES

F. RECOMMENDATIONS AND OBSERVATIONS OF THE INDEPENDENT ADMINISTRATOR

CONTENTS OF REPORTCONTENTS OF REPORT

A CONTEXTUAL INFORMATIONA. CONTEXTUAL INFORMATIONINFORMATION DETAILS

Legal framework and fiscal regime the fiscal regime overview of the relevant laws andLegal framework and fiscal regime governing the extractive industries.

the fiscal regime overview of the relevant laws and regulations, roles and responsibilities of the relevant government agencies.

Overview of the extractive Size of the extractive industries estimate of informalOverview of the extractive industries, including any significant exploration activities.

Size of the extractive industries , estimate of informal sector activity. Total government revenues in absolute terms and as a percentage of total government revenues, exports, employment, key regions of production

Information about the contribution of the extractive industries to the economy for the fiscal year covered by the EITI Report.

CONTENTS OF THE REPORTCONTENTS OF THE REPORTINFORMATION DETAILS

Production data for the fiscal Total production volumes and the value of production byProduction data for the fiscal year covered by the EITI Report,

Total production volumes and the value of production by commodity, and, when relevant, by state/region; Total export volumes and the value of exports by commodity, and, when relevant, by state/region of origin.

State participation in the extractive industries

prevailing rules and practices regarding the financial relationship between the government and state owned enterprises (SOEs), quasi-fiscal expenditures , government’s level of beneficial ownership, loans granted to mining companies

Distribution of revenues from which extractive industry revenues, whether cash or in-kind, Distribution of revenues from the extractive industries.

y , ,are recorded in the national budget or their allocation if they’

Further information on revenue management and expenditures

description of any extractive revenues earmarked for specific programmes or geographic regions; description of the methodsmanagement and expenditures

in the EITI Reportprogrammes or geographic regions; description of the methods for ensuring accountability and efficiency in their use;description of the country’s budget and audit processes

CONTENTS OF THE REPORTCONTENTS OF THE REPORTINFORMATION DETAILS

Register of licenses license, lease, title, permit, or concession conferringthe right to explore,

Allocation of licenses the award or transfer of licenses description of theAllocation of licenses the award or transfer of licenses, description of the process for transferring or awarding, bidding process and applicants

B fi i l hi th t l ( ) h di tl i di tlBeneficial ownership (voluntary for the 1st report)

the natural person(s) who directly or indirectly ultimately owns or controls the corporate entity.

Contracts Terms, laws/policy on disclosure; , actual disclosure practices and any reforms

Budget and audit processesg p

CONTENTS OF THE REPORTCONTENTS OF THE REPORT

B REVENUE STREAMSB. REVENUE STREAMS

A description of each revenue stream, relatedmateriality definitions and thresholds should beincluded in the EITI Report, as well as optionsconsidered and the rationale for establishing thedefinitions and thresholds.

CONTENTS OF THE REPORTCONTENTS OF THE REPORT

B REVENUE STREAMSB. REVENUE STREAMS • the host government’s production entitlement (government share);

ti l t t d d ti titl t ( h f PMDC d• national state-owned company production entitlement (share of PMDC and PNOC);

• taxes (excise tax income tax DST fringe benefits withholding taxes IAETtaxes (excise tax,income tax, DST, fringe benefits, withholding taxes, IAET, local taxes, VAT, );

• Royalties (IP royalties, royalties in mineral reservations);

• Dividends (for GOCCs) ;

• bonuses, such as signature, discovery and production bonuses (for oil explorations as stated in service contracts);

CONTENTS OF THE REPORTCONTENTS OF THE REPORT• licence fees, rental fees, entry fees and other considerations for licences

d/ i ( ti f )and/or concessions; (occupation fees)

• Social expenditures (SDMP, AEPEP, CDP, MRF, RCF,CLRF, voluntary CSR, MMTF FMRDF)MMTF, FMRDF)

• Transportation (wharfage fees, storage fees, government share in arratsreand stevedoring, annual privilege fee, pipelines for oil and gas)

• Subnational payments (business tax, RPT, mayor’s permit, occupation fees, local wharfage fees, toll fees, extraction fees, local fees and taxes,

• Subnational transfers share of LGUs in national wealth

• Other material payments: BOC payments e.g. customs duties, VAT on i t d t i l ( bj t t TEC) DST i t iimported materials (subject to TEC), DST, import processing

ADDITIONAL INFORMATION (as decided by the MSG)

1. Incentives regime

2 S i l F d (PD 910)2. Special Funds (PD 910)

3 Country’s mineral potential3. Country s mineral potential

4. Reconciliation of export data

ADDITIONAL INFORMATION

5 Additional contextual information:

(as decided by the MSG)

5. Additional contextual information:• Company profile (including information on MOA with IPs)

Emplo ment (nat re of emplo ment gender IP)• Employment (nature of employment, gender, IP)

• Gross Production/Tonnage

• Pricing• Pricing

• Suppliers/contractors

• Additional information for SDMP (planned vs spent, operating cost,(p p , p g ,partner organizations)

NOTE: Additional information may be included by the MSG as an outcome of thisworkshopworkshop.

CONTENTS OF THE REPORTCONTENTS OF THE REPORT

IDENTIFICATION OF DISCREPANCIES/RECONCILIATIONIDENTIFICATION OF DISCREPANCIES/RECONCILIATIONOF DATA

EITI Requirement 5.3: the Independent Administratorshould prepare an EITI Report that comprehensivelyshould prepare an EITI Report that comprehensivelyreconciles the information disclosed by the reportingentities identifying any discrepanciesentities, identifying any discrepancies.

CONTENTS OF THE REPORT

RECOMMENDATIONS and OBSERVATIONS OF THE IA:

CONTENTS OF THE REPORT

RECOMMENDATIONS and OBSERVATIONS OF THE IA:

1. Examination of audit and assurance procedures

2. Assessment on comprehensiveness and reliability of datadata

3. Gaps and weaknesses in the reporting procedure3. Gaps and weaknesses in the reporting procedure (companies and agencies who failed to comply and impact on comprehensiveness)

CONTENTS OF THE REPORTCONTENTS OF THE REPORT

4 Documentation of auditing of financial statements of4. Documentation of auditing of financial statements ofreporting entities

5. Recommendations for strengthening the reportingprocess (e.g. auditing process, compliance withp ( g g p pinternational standards)

CONCLUSIONCONCLUSION

WE WANT OUR EITI REPORT TO BE:WE WANT OUR EITI REPORT TO BE:

1 CREDIBLE1. CREDIBLE2. COMPREHENSIVE3 COMPREHENSIBLE3. COMPREHENSIBLE4. ABLE TO CONTRIBUTE TO PUBLIC DEBATE

PH - EITI Secretariat

Contact Details:

Email

info@ph-eiti.com

eitiphilippines@gmail.com

Telephone:+632 525 04 87