The government, through the Mines and Geosciences Bureau (MGB), generated a total of PhP763.66 million in royalties paid by mining companies operating within mineral reservation areas during the first half of 2015.

The amount represents 5% of the market value of the gross output of the minerals produced during the period.

At present, the government-declared mineral reservation areas are located in Zambales in Region III; and Surigao del Norte, Surigao del Sur and Dinagat Islands in Region XIII.

Under Section 5 of Republic Act No. 7942, or the Philippine Mining Act of 1995, 10% of the amount collected shall accrue to the MGB for "special projects and other administrative expenses related to the exploration and development of other mineral reservations." The 90% shall be divided between the national government (60%) and the local government (40%) where the minerals are located.

For the first half of 2015, local government shares amounted to PhP274.92 million.

Joint Circular No. 2010-1 between the Department of Environment and Natural Resources, Department of Finance, Department of Budget and Management, Department of Interior and Local Government provides the guidelines on the release of share of local government units from royalty payments.

In 2014, the actual royalty earnings reached Php2.69 billion.

By: Finance Division