Section 6
SEC. 6. Should the President of the Philippines decide to have the operations or any part thereof authorized in this Act done through the services of an independent contractor or contractors, the same shall be, among others, under the following terms and conditions: 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 a sum not to exceed one peso (P1.00) per year as may be agreed upon between the President of the Philippines and the operator, and the latter shall receive, by way of additional compensation, an amount equivalent to a portion of the net profit or of the gross quarterly receipts from all minerals and mineral products resulting from the operation and processing computed such that the Government shall retain not less than fifty per centum (50%) of the annual net profit, or not less than five per centum (5%) of the gross quarterly receipts, f.o.b. point of export, whichever is higher: Provided, That the Operator may be exempt from all taxes, duties, fees and charges, both national and local, until recovery of seventy-five per centum (75%) of the capital invested: Provided, however, That the Operator shall put the area or areas covered by the contract into actual production within five (5) years from the effective date of the contracts, thereafter, penalties shall be applied against the Operator for failure to effect such production, and/or reach certain levels of production within specific time periods, as may be agreed Provided, further, That as an incentive for the Operator to extract the other contained metals from the Surigao ore, such as iron, chromium, cobalt, etc. in addition to f production of nickel and/or ferro-nickel, the Operator m be entitled to not more than twenty per centum (20%) of the annual net profit realized from the production of said iron, chromium and/or cobalt, etc. for the first three (3) years of actual commercial production thereof: And provided, finally, That exemptions from taxes shall not extend to taxes due from the contractor's personnel in their personal capacities; The Operator shall file a bond to guarantee full and faithful compliance with all its obligations; The Operator may be authorized to repatriate within five (5) years from the first year of actual commercial production, not more than eighty per centum (80%) of the duly authorized and recognized foreign capital investments, plus interest, and to remit to non-resident investors abroad profits or dividends, out of current and annual profits or dividends: Provided, That the repatriation of the remaining duly authorized and recognized foreign capital investment, shall be subject to the existing Central Bank regulations at the time: And provided, further, That repatriations and remissions as herein provided may, at any time during the terms of the contract, be done under the provisions of this paragraph or under such regulations as may from time to time be promulgated by the Centra Bank on the matter, at the election of the Operator: And provided, finally, That the total repatriation of foreign investments herein authorized plus the total remission of profits or dividends for any year shall not exceed fifty per centum (50%) of the total gross receipts for that particular year; Within five years from the effective date of the contract, the Operator shall select a final area or areas in compact block or blocks to be retained by him sufficient to meet his reasonable needs as to ore reserves, plant sites, timber and water resources, to assure commercial operation, but in no case to exceed a total land area of twenty-five thousand hectares. The Operator shall give preference to Philippine citizens in all types of employment within the country insofar as such citizens are qualified to perform the corresponding work with reasonable efficiency and without hazard to the safety of the operations; and shall maintain effective programs of training and advancement commensurate with the demonstrated abilities of such citizens to perform satisfactorily the various types of work involved in the operation. The Operator, however, shall not be hindered from using officials of its own selection and without restriction for executive or technical work and for all other work which, in its judgment, and with the approval of the office or agency to be created or designated, requires highly specialized training and/or long experience; The Operator and/or its personnel shall not be exempt from the jurisdiction of the Philippine courts.