Palace sees EO as panacea for all mining-related concerns

By KIMBERLY JANE TAN, GMA News

Published July 9, 2012 3:08pm

(Updated 1:22 a.m. , July 10, 2012) President Benigno Aquino III finally approved and signed Executive Order No. 79 which aims to provide a more equitable revenue-sharing scheme, strengthen environmental protection and promote responsible mining in the country.

During a press briefing at the Palace on Monday, Environment Secretary Ramon Paje said the provision aims to rake in more revenue for the government.

No specific figures regarding the proposed revenue sharing scheme were stated in the EO.

But Paje said they aim to increase several fees and charges, including application and occupational fees. The fee is P50,000 per application.

He said that they are targeting a revenue stream of P760 million for occupational fees, which was charged only once the mineral production sharing agreements was approved. Paje said they now aim to charge these fees once the mining claims are filed.

But the EO says mining contracts, agreements, and concessions approved before the order takes effect shall continue to be "valid, binding, and enforceable so long as they strictly comply with existing laws, rules, and regulations and the terms and conditions of the grant."

Preferential option

The order also says the Department of Environment and Natural Resources (DENR) may continue to grant and issue exploration permits, which allow a person or entity to explore for minerals in a specified area. No actual mining or mineral extraction may be conducted during the exploration phase of a project.

But those given exploration permits and those who actually discover minerals shall be given the preferential option when government issues a mineral sharing agreement.

The EO said the DENR shall likewise review existing mining contracts and agreements for possible renegotiation of the terms and conditions.

The order says the grant of all mining rights and mining tenements over areas with known and verified mineral resources and reserves shall be undertaken through competitive public bidding, not through a first come, first served basis.

Areas closed to mining

As a clear concession to the anti-mining advocates, the order closes the following areas to mineral contracts, concessions, and agreements:

areas expressly enumerated under Republic Act No. 7942 or the Philippine Mining Act of 1995;

protected areas categorized and established under the National Integrated Protected Areas System under RA No. 7586 or the "National Integrated Protected Areas System Act of 1992;

prime agricultural lands, in addition to lands covered by RA No. 6657 or the Comprehensive Agrarian Reform Law of 1988, including plantations and areas devoted to valuable crops, and strategic agriculture and fisheries development zones and fish refuge and sanctuaries declared as such by the Secretary of the Department of Agriculture (DA);

tourism development areas, as identified in the National Tourism Development Plan (NTDP);

and other critical areas, island ecosystems, and impact areas of mining as determined by current and existing mapping technologies, that the DENR may identify.

The DOT has identified at least 78 sites it wishes to preserve, Paje said.

Mercury prohibited

The EO also outlines steps to ensure that activities comply with the Small-Scale Mining Act of 1991 and the Environmental Impact Statement requirements.

This would mean the use of mercury in small-scale mining will be banned; the establishment of a Minahang Bayan or the People’s Small-Scale Mining Areas; and Provincial/City Mining Regulatory Boards will be created.

"We will contain them [small-scale mining] in one place, [so that] we can treat the waste comprehensively and efficiently," said Paje.

Creating a mining council

Under the order, a Mining Industry Coordinating Council or MICC shall be created. It will be in charge of reviewing all mining-related laws, rules and regulations, issuances, and agreements.

MICC shall also be responsible for the campaigns against illegal mining, serve as oversight committee over the operations of the Provincial/City Mining Regulatory Boards, monitor the implementation of mining laws and regulate small-scale mining participants, who are equally accountable to the same environmental and social obligations as large-scale mining companies

The MICC would be co-chaired by the head of the Cabinet clusters on climate change adaptation and mitigation; and economic development. The Union of Local Authorities of the Philippines or ULAP will be among its members.

The DENR is also directed to create an integrated map system with mining-related maps, a centralized database of all mining-related information and an inter-agency one-stop shop for all mining-related applications and processes within six months from when the EO takes effect. — VS/DMV, GMA News

Tags: mining, miningeo