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

WHEREAS, the continued 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 1981; and

WHEREAS, in view of the unabated increases in the cost of
fuel oil and continued depressed world prices of nickel and cobalt, the
development of the Surigao Mineral Reservation cannot be pursued 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 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, until December 31, 1983, 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 form the effective date of the
contract. Thereafter, penalties may be applied against the operator for failure
to affect 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,
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.

SECTION 3. This Decree shall take effect immediately.

Done in the City of Manila, this 16th day of January, in the year of Our
Lord, nineteen hundred and eighty-one.

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

Vol. 25, Vital Documents, Presidential Decree 1980-1981