Gold produced by miners in the Philippines is supposed to be sold to the central bank at around

world market prices.

The Philippines is the world's 18th largest gold miner and last year imposed new taxes on gold sales.

The Philippine gold mining industry plays an important role in the global gold production, generating 37,800 kg

of the precious metal in 2003. Almost all of the 73 island provinces contain lode and placer deposits. However,

the districts that have historically produced the highest amounts of gold are Baguio, Paracale, Masbaate,

Surigao and Masara. Much of the gold generated in the Philippine gold mining industry is extracted through

various small mining operations.

The history of the Philippine gold mining industry dates back hundreds of years. When the Spanish

conquistadors first arrived to the islands, they found the natives wearing gold ornaments from head

to toe. According to records, Philippine natives had a vast knowledge of gold and the children were

even able to determine the purity of gold alloys. The natives also had a complex vocabulary for gold

and were skilled in various techniques of working with this precious metal.

In 1905, 89 active mines applied for claims in the Philippines, and that number increased dramatically

to 544 in 1906. Through the early 1940s, the Philippine gold mining industry was continuing to experience

a large and impressive growth. It was during this time that the first mining companies were established

in the islands. In 1995 the Philippine government passed a law that allowed foreigners to own and operate

mines in the islands. This law still exists and is controversial because many Filipinos believe that only they

should own and operate mines. However, it is expected that this law will allow billions of dollars to be

invested in the country and help to stimulate the economy.