Mining NewsPart 3 News: Seven Winning Sectors

DENR starts purge of mine applications

MANILA, Philippines – The Department of Environment and Natural Resources (DENR) said it will stop accepting and processing mining permits until it completes a purge of all aging applications and inactive mining projects.

Environment Secretary Ramon Paje has directed the MGB to refrain from accepting and processing new mining applications until it clears its files, saying this was part of the agency’s attempt to cleanse the bureaucracy of red tape. He said he wanted to clear the air of perceptions that red tape in the agency was linked to corruption.

Aside from mining permits, Paje’s order covers exploration permits, mineral production sharing agreements, industrial sand and gravel permits and financial or technical assistance projects.

Paje said all permits and contracts that expired five or more years ago and mining work contracts that have not been implemented for two consecutive years will be canceled with finality.

Use it or lose it

“We are now in the process of implementing our ‘use it or lose it policy,’ where we will be canceling mining applications of companies that were unable to comply with all the requirements set by the government,” Paje said.

In an order last month, Paje directed all MGB regional directors to cleanse their agencies this year of pending and inactive mining applications. He set two deadlines — Feb. 20 for the first 50 percent, and December for the remaining 50 percent.

According to MGB records, 2,180 mining tenement applications have been pending in MGB offices nationwide for at least a decade.

Mining tenements include the mineral production sharing agreement (MPSA), exploration permit (EP) and financial and technical assistance agreement (FTAA).

There is an FTAA in Region 13 which has been awaiting decision for 16 years, and an MPSA in Region 4A pending at least 15 years. “There are also other mining tenements that continue to remain inactive for the past 14 years,” Paje added.
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By: Kristine L. Alave
Source: Philippine Daily Inquirer, Feb. 19, 2011
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