Government bats for revival of inactive mines

The government is prioritizing the revival of inactive mines that still have high prospect for mineral deposits as part of its effort to attract more investments in the mining sector.

According to Board of Investments (BOI) managing head Elmer C. Hernandez, some of these inactive mines that the government is trying to revive include Amacan copper-gold mine project in Mabini, Campostela Valley; the Batong Buhay copper-gold project in Pasil, Kalinga-Apayao; and the Diwalwal Direct State Development in Diwata, Monkayo, and Compostela.

According to the Department of Environment and Natural Resources (DENR) there are at least 65 projects that have been “reclaimed” by the  government and have been offered for public bidding.

The most recent bidding, the DENR said, was conducted just this July 18.

DENR Secretary Jose L. Atienza had said he wants the DENR to review all mining claims and tenements with the aim of “re-owning” dormant claims and tenements so that it can be reallocated to other investors who will actively pursue the projects.

Atienza has noted that thousands of claims and tenements are being unproductively held by claimants for the purpose of land-banking.

Atienza has already ordered the Mines and Geosciences Bureau (MGB) to “review and clean-up the list of all mining claims and tenements so that we can cancel claims for dormant mines and declared them ‘re-owned’ by the government.”

However, mining industry analyst point out that before the DENR cancels additional  existing claims and tenements, it should first dispose of the previous mining projects that have been turned over to the Philippine Mining Development Corp. or PMDC.

Atienza stressed that “those who file a claim have an obligation to develop their claims.”

Instead, what is happening, Atienza noted, is that “thousands file claims for the purpose of land-banking.”

Such practice, Atienza said, has a “negative effect on investors.”

“When investors come, they cannot find any available land anymore because all have been previously claimed,” Atienza admitted.

The government, Atienza said, wants to attract local and foreign investors who are really interested in developing and  operating the claim.

The first to be reviewed, Atienza said, are claims and tenenments of 10 years and over, followed by five years and over and then three years and over.

Claimants, Atienza said, are normally given about two years to start development.

Thus, Atienza said, the DENR wants to review first those with the longest claims who up to now have not done any development.

Those with claims of just three years of less, Atienza said, may just be slapped a penalty initially for their failure to start development of the claim rather than seeking an immediate cancellation of their claim or tenement.