Idle mining concessions opened to new investors

D.E.N.R. HOPES TO REOPEN 68,000 HAS. OF MINERAL LANDS

By Jonathan L. Mayuga

Correspondent

http://www.businessmirror.com.ph/05292007/economy02.html

ENVIRONMENT and Natural Resources Secretary Angelo Reyes on Monday ordered the transfer of the disposition of cancelled mining permits to the Philippine Mining Development Corp. (PMDC), a corporate arm of the Department of Environment and Natural Resources (DENR). With the move, Reyes hopes to further boost the mining sector with the reopening of 68,625 hectares of mineral lands that have been idle for the past several years because of the reluctance of investors to pursue mining activity. Reyes signed the order last week, which covers all mining permits earlier cancelled by the DENR under memorandum orders No. 2005-3 and No. 2005-13 issued by former DENR secretary Michael Defensor, which include 65 non-performing permits in various provinces. “This will enable the entry of more serious investors, thus further spurring development and economic activity in the mining sector. At the same time, this will result in higher revenues from government mining assets,” Reyes, who is also chairman of the PMDC, said. Transferring the management of the permits to a government-owned corporation, according to Reyes, would allow government greater flexibility and leverage in developing the mines. He said the transfer would put the task of disposing vacated mineral lands to PMDC, formerly known as the Natural Resources Mining Development Corp., through public bidding. PMDC, however, also has the option to develop and operate the mines or enter in a joint venture with a qualified private party or contractor. Reyes directed the Mines and Geosciences Bureau to coordinate with PMDC for the transfer of relevant documents and information as soon as possible. Defensor issued Memorandum Order No. 2005-03 on February 1, 2005, canceling 93 nonperforming mining permits. Defensor later issued Memorandum Order No. 2005-13 declaring as final and executory the cancellation of 65 of the 93 idle permits, while the remaining 28 permits subjected to further review in view of the motions for reconsideration filed by their owners. A moratorium was imposed for the filing of mining applications on the 65 idle mineral lands until such time that the appropriate policy is issued by the DENR. The 65 permits were eventually cancelled in view of certain violations of the provisions of the Philippine Mining Act of 1995, its implementing rules and regulations, and terms and conditions of their respective mining permits. One of the main reasons cited was the failure of the mining contractors to undertake mining activities on the ground over a long period of time.