MINING firms with pending applications for exploration permit will know between today and June 30 if they can proceed with their projects or not, consistent with the “zero backlog” campaign of the Mines and Geosciences Bureau (MGB).
MGB Director Leo L. Jasareno said the agency has stepped up the evaluation of all applications for exploration permit, so when the next administration steps in, the MGB would get to start with a clean slate.
The MGB, an attached bureau of the Department of Environment and Natural Resources (DENR), is the country’s mining-regulatory body.
Jasareno, on January 21, issued a memorandum directing the Mining Tenements Management Division of the MGB, in coordination with the MGB regional offices, to go for zero backlog.
This means that the applications for exploration permits should have been approved or denied by June 30.
There are 264 pending exploration-permit applications undergoing evaluation by the MGB. On January 18, 2011, Environment Secretary Ramon J. P. Paje issued DENR Memorandum Order 2011-01, which suspended the acceptance of all types of mining applications.
The order was lifted on February 21, 2013, with the implementation of DENR Administrative Order 2013-11, which prescribed the procedural guidelines in the filing and processing of exploration-permit applications, pursuant to Executive Order (EO) 79.
Once an exploration permit is granted, mining companies are allowed to explore specific areas with potential mineral reserves that they intend to extract through a contract with the government.
There are close to 50 operating mines in the Philippines, more than half of which are nickel mines.
Mining investment over the past three years had gone down, after President Aquino issued EO 79, which seeks to institutionalize reform in the minerals-development sector and increase the government’s share in mining profit.
EO 79 also designated mining “no-go zones,” which prohibits mining activities in agricultural areas, tourism areas, protected areas or areas identified for conservation, including key biodiversity area, such as national park, natural park, bird sanctuaries, marine protected area, protected landscapes and seascapes.
Mr. Aquino’s mining policy also prohibits mining in areas previously covered by the Comprehensive Agrarian Reform Program, or land with previously issued certificates of land-ownership awards.
The declaration of mining no-go zones, in effect, made 84 percent of the country’s 30-million-hectare total land area off limits to mining activities.
Despite its potential to boost economic growth, the mining sector’s contribution to the country’s GDP remains less than 1 percent.
The Joint Foreign Chambers (JFC) included mining on the list of seven sectors that are expected to drive growth in the inflow of foreign direct investments into the country.
The JFC noted in its Arangkada blueprint that the Philippines has an estimated $1.4 trillion in mineral reserves, especially gold, copper, nickel, aluminum and chromite. The country is fifth in the world in terms of overall mineral reserves, covering an estimated 9 million hectares, although less than 2 percent received mining permits.
2 comments
In 2011 when the moratorium started there were more than 2000 mining exploration permits. By the time the moratorium was lifted in 2013 to the present the list was purged of inactive or questionable applications. But the fact is after two years there are still 264 left. Good job culling the list, but it raises the question how many legitimate mining projects would be underway today if it wasn’t for that ban. Mining is a ling-term venture and it will be years with millions spent before profit is realized. The industry is already full of risks that would deter most investors, and the last thing we need is populist legislation crippling it like moratoria and this proposed revenue sharing scheme.
Tingin ko mas madami pa din yung small scale illegal miners. Sila yung nakikinabang sa mga resources natin na hindi sila nagbabayad ng tax. nakakalungkot na sila lang nag kumikita. Yan ang dapat bantayan ng MGB.