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DENR execs grilled over unexplained number of inactive, unused exploration permits, mining agreements
DENR execs grilled over unexplained number of inactive, unused exploration permits, mining agreements
Senate President Francis “Chiz” Escudero on Monday, March 3 grilled officials of the Department of Environment and Natural Resources (DENR) to explain why there are substantial number of inactive, non-operational, invalid or unused exploration permits (EPs) and mineral production sharing agreements (MPSAs), which is hindering the government from fully reaping econommic benefits from the country’s own mining industry.
Escudero pointed out that the Philippines is among the top 10 countries in the world that have rich mineral resources: 5th in global mineral reserves; 3rd in gold; 4th in copper; 5th in nickel; and, 6th in chromite.
Yet in 2024, the gross value added from mining and quarrying accounted for only 0.71 percent of the annual gross domestic product (GDP), and the sector employed just 0.54 percent of the total workforce as of November 2024, the Senate leader lamented.
Based on the DENR-Mines and Geosciences Bureau (MGB) data, only 45 out of the 150 EPs issued as of Dec. 31, 2024 are valid and existing. This translates to 105 invalid or unused EPs.
Likewise, the DENR-MGB reported that as of Jan. 31, 2025, only 248 out of 378 issued MPSAs are active and operating; this translates to 130 inactive and non-operational MPSAs, the Senate chief noted.
“My point is this: the Philippines is a rich country pretending to be poor when it comes to mineral resources. Why are we not benefitting and using this advantage? Where is the bottleneck and the problem?” Escudero pointed out during the Senate Environment, Natural Resources, and Climate Change Subcommittee’s hearing on the issue.
“We are at the top 10 richest countries when it comes to mineral resources but data shows that our own mining contribution on GDP is not even at one (1) percent for the longest time. Why is that?” he asked DENR officials.
“Why aren't we benefiting from it? What laws and regulations need to be changed, and where exactly is the problem that prevents continuous operations? Is the exploration or mining itself being hindered because some companies hold permits that are not being utilized?” the Senate leader asked.
Escudero warned the DENR that inactive, non-operational, invalid or unused EPs and MPSAs are contrary to the declared policy of the Philippine Mining Act of 1995 or Republic Act No. 7942.
It also hinders the government from issuing permits or entering agreements with other contractors and also prevents financially and technically capable entities from applying for new exploration permits (EPs) or mineral agreements (MAs) in areas where non-performing EPs or MPSAs exist, the Senate leader lamented.
Escudero earlier filed Senate Resolution No. 1310 calling on the Senate Blue Ribbon Committee to investigate the issue. The resolution was later on referred to the Senate environment subcommittee panel.