FURTHER AMENDING PARAGRAPH (1) OF SECTION 6 OF REPUBLIC ACT NO. 1828, AS AMENDED BY REPUBLIC ACTS NOS. 2077 AND 4167 AND PRESIDENTIAL DECREES NOS. 1001, 1714 AND 1824.

WHEREAS, the sustained development of the Surigao Mineral
Reservation is of utmost importance 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, will expire on
31 December 1983; and

WHEREAS, In view of the continued depressed world prices of
nickel and cobalt, the development of the Surigao Mineral Reservation is
seriously endangered unless the tax incentives granted to the operator are
further 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 further amendment of Paragraph (1) of section 6 of Republic
Act No. 1828 as amended as follow:

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 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 until December 31,1988, be exempt from all taxes, duties, fees
and charges, both national and local, directly payable 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 exempt 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 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 capabilities.

SEC. 2. All provisions of the Republic Act No. 1828, as
amended, the Memorandum if Agreement and Operating Contract, dated July 3, 1968,
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.

SEC. 3. This Decree shall take effect immediately.

Done in the City of Manila, this 15th day of October, in the year of the
Lord, nineteen hundred and eighty-three.

			(Sgd.) FERDINAND E. MARCOS President Republic of the Philippines
	By the President:
	(Sgd.) JUAN C. TUVERA
		Presidential Executive Assistant