The Philippines said Monday it was seeking to increase royalties from mining companies while imposing more restrictions to protect the environment and local communities.

The policy contained in a new executive order signed by President Benigno Aquino said no new mining permits would be approved until Congress passed a bill backing the increase.

The order, announced by Environment Secretary Ramon Paje after months of heated debate between mining firms, environmentalists, tribal groups and church leaders, seeks to impose a 5 percent royalty on the companies' gross earnings compared to the existing two percent tax.

"Basically, the executive order intends to increase the revenues of government from mining," Paje told reporters.

The order extends a moratorium on mining permits that Aquino imposed last year when he was still drafting the new executive order.

Paje stressed the order would respect existing mining agreements with the 33 mining operations already in the country, but would be imposed on new entrants.

He said existing contracts would be reviewed to ensure the companies are complying with their obligations.

Paje said if the law was passed by 2016 the country could earn an additional 16 billion pesos ($381 million) from the higher royalties.

In addition, the order designates all abandoned mine waste and tailings as state property, allowing the government to extract any remaining minerals. This could raise another 50 billion pesos, Paje noted.

AFP