Duterte lifts 9-year moratorium on new mining deals
President Rodrigo Duterte has ordered the lifting of the almost 9-year moratorium on new mining agreements, which can support government infrastructure projects and provide social and economic benefits for the country.
Executive Order No. 130, which Duterte signed on April 14, said the moratorium on mineral agreements under Section 4 of EO No. 79, which was issued in July 2012 by then President Benigno S. Aquino III "is hereby lifted."
Section 4 of EO No. 79 now reads, "The Government may enter into new mineral agreements, subject to compliance with the Philippine Mining Act of 1995 under other applicable laws, rules, and regulations."
The new EO noted that the country has tapped less than 5 percent of its mineral resources endowment to date.
"In addition to ushering economic benefits to the country, the mining industry can support various government projects, such as the Build, Build, Build Program, by providing raw materials for the construction and development of other industries; and the Balik Probinsya, Bagong Pag-asa Program, by increasing employment opportunities in remote rural areas where there are mining activities thereby stimulating countryside development," Duterte said.
Under the new EO, Duterte said the DENR may continue to grant and issue exploration permits under existing laws, rules, and guidelines.
"The grantess of such permits shall have the rights under the said laws, rules, and guidelines over the approved exploration area and shall be given the right of first option to develop and utilize the minerals in their respective exploration area upon the approval of the declaration of mining project feasibility," the EO read.
The Department of Environment and Natural Resources was tasked to formulate the terms and conditions in the new mineral deals that will maximize govenrment 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 regualtions.
The DENR is also ordered to undertake a review of existing mining contracts and agreements of possible negotiation of the terms and conditions of the same, which shall in all cases be mutually acceptable to the government and the mining sector.
Duterte also directed the DENR and the Department of Finance to undertake appropriate measures to rationalize existing revenue sharing schemes and mechanisms.
He also ordered the DENR to strictly implement mines safety and environmental policies.
Under the previous EO, it provided that no new mineral agreements shall be entered into until a legislation rationalizing existing revenue sharing schemes and mechanisms shall have taken effect.
EO 130 shall take effect immediately upon its publication in a newspaper of general circulation. Celerina Monte/DMS
