Recognizing the "economic benefits" of the mining industry, President Duterte has authorized the lifting of the moratorium on new mineral agreements in a bid to generate job opportunities and spur countryside growth.
In Executive Order No. 130, the President directed authorities to strictly implement mining safety and environmental policies, review existing mineral deals for possible renegotiation, and rationalize the existing revenue-sharing scheme.
The order on the grant of new mineral projects subject to compliance with the relevant laws was signed by the President on April 14 and released by the Palace Thursday, April 15. It will take effect upon publication in a newspaper.
The President's latest directive amended EO 79 issued in 2012 that institutionalized and implemented several reforms in the mining sector. The Aquino-era EO prohibited the approval of new mining permits until a new legislation rationalizing revenue-sharing scheme is enacted.
"The moratorium on mineral agreements under Section 4, EO No. 79 is hereby lifted,” the new executive order read.
"In addition to ushering significant 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," it added.
EO 130 noted the Philippines has tapped "less than 5 percent of its mineral resources endowment to date."
Under the new EO, the amended Section 4 now reads "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."
"The DENR (Department of Environment and Natural Resources) may continue to grant and issue Exploration Permits under existing laws, rules, and guidelines. The grantees 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 to first option to develop and utilize the minerals in their respective exploration area upon the approval of the declaration of mining project feasibility," it added.
The same EO also directed DENR to formulate terms and conditions in the new mining agreements that will "maximize government revenues and share from production." It would include the possible declaration of such areas as mineral reservations to get royalties in accordance with the country's laws.
The President also tasked the DENR to review existing mining contracts and agreements "for possible renegotiation" of the terms and conditions, that must be mutually acceptable to the government and the mining contractor.
Both the DENR and the Department of Finance have also been ordered to take measures to rationalize the existing revenue-sharing scheme.
In the same EO, the President ordered DENR "to strictly implement mines safety and environmental policies."
"It shall ensure strict implementation of and compliance with the recommended measures of the Mining Industry Coordinating Council involving all mining operations, including other pertinent laws, rules, and regulations, and terms and conditions of the mineral agreements," the order read.
The latest presidential directive was reached after the DENR conducted a review of the regulatory framework of the mining industry. The order noted that department put in place policies to enhance environmental safeguards to ensure mining operations observe the protection of the environment.
Mining companies earlier called on the government to lift the suspension on new mining agreements and the use of open pits to help promote economic growth in the pandemic-hit country. The country earlier fell into recession after the pandemic lockdown weakened the economy and led to a rise in unemployment and hunger.