THE Philippines has so far tapped less than five percent of its mineral resources, compelling President Rodrigo Duterte to issue an executive order lifting a government-imposed moratorium on the issuance of new mining agreements.
In issuing Executive Order 130, Duterte said that the government “may enter into new mineral agreements, subject to compliance with the Philippine Mining Act of 1995 and other applicable laws, rules, and regulations” to maximize government revenues and stir economic growth.
EO 130, which puts an end to a ban which took effect nine years ago, also directed the Department of Environment and Natural Resources (DENR) to “formulate the terms and conditions in the new mineral agreements that will maximize government revenues and share from production, including the possibility of declaring these areas as mineral reservations to obtain appropriate royalties, in accordance with existing laws, rules, and regulations.”
Aside from new mining players, the new EO also ordered the DENR to review existing mining contracts and agreements for possible renegotiation of the terms and conditions, in an apparent bid to rationalize existing revenue sharing schemes and mechanisms.
The EO 130 further hinted at the issuance of new mining agreements capable of stirring economic growth needed to support government programs such as the Build, Build, Build and the Balik Probinsya, Bagong Pag-asa Program.
The ban was lifted following recommendations of the DENR, which claims to have conducted a thorough review of the regulatory framework of the mining industry and “has [put] in place additional rules, regulations, and policies providing for and enhancing environmental safeguards to ensure that mining operations observe environmental protection.”
Aside from mining permits, EO 130 also allows the DENR to continue the issuance of Exploration Permits under existing laws, rules, and guidelines.