MANILA, Philippines - The Department of Environment and Natural Resources (DENR) suspended yesterday the implementation of the implementing rules and regulations (IRR) of the new mining policy which becomes effective today (Sept. 29).
The revised IRR of Executive Order 79 is yet to be published and implemented.
“The implementation of Department Administrative Order No. 2012-07 or the implementing rules and regulations (IRR) of Executive Order No. 79 which becomes effective on Sept. 29, 2012 is hereby suspended pending the issuance and effectivity of the amendments thereto,” stated a memorandum order issued by the office of the environment secretary.
The memorandum was issued and signed by Environment undersecretary Demetrio Ignacio as officer-in-charge.
The Mining Industry Coordinating Council (MICC), the body created for the formulation of the IRR for the new mining policy, has agreed to revise sections 3, 7 and 9 of the IRR after strong opposition by Chamber of Mines of the Philippines (COMP) to the provisions.
COMP was particularly concerned about Section 9 of the IRR which states that mining companies would have to renegotiate the terms of mining contracts after the first 25 years under new terms and conditions. This potentially shortens the project period from the maximum of 50 years guaranteed by the law
COMP said the provision was “patently illegal” and said its is a direct violation of Section 32 of the Mining Act of 1995.
Prior to the revision of the IRR, COMP threatened to seek legal action to obtain revisions to the IRR.
Section 9, which tackles the opening of areas for mining through competitive bidding, states that expiring 25-year mining tenements may be renewed by the qualified tenement holder but would be subject to new terms and conditions pursuant to the laws that are existing at the time of the renewal.
It also states that expiring mining contracts may even be declared as a mineral reservation.
Section 32 of Republic Act No. 7942, however, states that mineral agreements shall have a term not exceeding 25 years to start from the date of execution thereof, and renewable for another term not exceeding 25 years under the same terms and conditions thereof, without prejudice to charges mutually agreed upon by the parties.
In revising Section 9 of the IRR, the MICC removed the provision that existing contracts would be renewed based on new rules and conditions.
New contracts would be renewed based on existing laws at the time of the application for renewal.
The revised section 9 reads:
Section 9. Opening of Areas for Mining through Competitive Public Bidding
Section 2, Article 12 of the Constitution provides that the exploration, development and utilization of natural resources shall be under the full control of the state. Thus, the grant of mining rights and mining tenements over areas with known and verified mineral resources and reserves, including those owned by the government and all expired tenements, shall be undertaken through competitive public bidding.
The mining contract/agreement that may be renewed shall be subject to existing laws, rules, and regulations at the time of renewal. Provided, further, that mining contractors whose tenements are expiring from Sept. 1 to April 30, 2013, shall be given 30 calendar days from the effectivity of these implementing rules and regulations to file renewal applications: Provided, finally, that those mining contractors whose tenements expire after April 30, 2013, shallfile their renewal applications not later than six months prior to the expiry of their mining contracts/agreements.
The other revisions made are as follows:
Section 3. Definition of Terms
“Expired mining tenements” refer to mining contract/agreements whose 25- or 50-year term has lapsed:
Provided, that in the case of the initial 25-year term, the mining contract/agreement.