MGB to review new, existing applications for mining permits

MANILA, Philippines -- Amid the crackdown on mining firms, the government is letting up slightly as the Mines and Geosciences Bureau said the agency is open to reviewing existing and new mining projects.

 

"We will, on the basis of existing regulations, submit our policy recommendations and the directions to take [on the review of new applications]. On the basis of that, then a review of the permitting processes will have to be undertaken and deliberate decision how to proceed with it, what is allowed, what should be restricted will be put in place," MGB Director Mario Luis Jacinto said on the sidelines of the Mining Philippines Conference 2016.

 

Aside from the audit of mining firms, Environment Secretary Gina Lopez has also ordered a moratorium on new mining projects, covering the acceptance, processing and approval of applications and projects for all metallic and non-metallic minerals.

 

There were already hundreds of pending applications for new projects waiting for approval before the moratorium was ordered.

 

"We are now doing the assessment, we are waiting for the results of the audit first then we can take it from there," Jacinto said.

 

"The utilization of the resources should only be allowed when the proposed mining operation is technically feasible, environmentally compliant, socially acceptable and financially viable. Any of these imperatives absent, it is not the time to mine,” he added.

Meanwhile, the Chamber of Mines of the Philippines (COMP) said the unstable policy regime of the last administration resulted in staggering loss of opportunity as no new mining agreements were issued and the industry’s fiscal and regulatory regime came under very close scrutiny from the executive, legislative, and judicial departments.

 

During his term, former President Benigno Aquino III issued Executive Order 79 disallowing the approval of new mineral agreements until legislation rationalizing existing revenue sharing schemes and mechanisms takes effect.

 

"We lost our potential to raise GDP (gross domestic product) growth to 10 percent which is enough to reach a sustainable growth level to uplift 25 percent of our poor population,” COMP president Benjamin Philip Romualdez said.

 

The mining industry contributes a measly 0.7 percent to the country's GDP.

 

The issuance implemented reforms in the mining sector despite the existing Philippine Mining Act of 1995, which is considered to one of the best mining laws in the world.

 

Stakeholders considered this a dampener as far as investments are concerned, as gross domestic product could have grown up to 10 percent had mining been allowed to flourish.

 

Furthermore, the chamber urged the government to move forward and prepare for the investments that would pour in in the country in the coming years.

 

The COMP reported that over $30 billion in investments in the local mining industry have been lined up over the next five to 10 years.

 

This year, expected projects to be operational are Asiaticus Management Corp. in Davao Oriental and Global Ferronickel Holdings Inc.’s Ipilan Mine in Palawan.

 

By 2017, Pangilinan-led Philex Mining Corp.’s Silangan Project in Surigao del Norte, Nationwide Development Corp.’s Kingking Project in Davao del Norte and TVI Resource Development Philippines Inc.’s Balabag Gold-Silver Project are all expected to take off, with combined investments pegged at $6 billion.

 

Projects targeted for operation by 2018 include Sagittarius Mines Inc.’s Tampakan Mine development in South Cotabato, Intex Resources project in Mindoro and Philsaga Mining Corp.’s gold project in Masbate.

 

Also included in the 2018 pipeline are San Miguel Corp.’s project in Surigao del Sur and Benguet Corp.’s Balatoc Mines. Investments for 2018 is estimated to reach $14.75 billion.

 

Initial project expected in 2019 is the $2 billion Far South East Gold project of Lepanto Mining Corp. in Benguet.