MGB renews special mines permit of Ore Asia Mining

MANILA, Philippines -The Mines and Geosciences Bureau (MGB) has renewed the Special Mines Permit (SMP) held by Ore Asia Mining and Development Corp. for an iron project in Bulacan.

Ore Asia’s renewed SMP No. 2013-01 covers 442.46 hectares in Doña Remedios Trinidad, Bulacan. The company’s SMP renewal was granted on Dec. 5, 2014 and will expire on December 5, 2015.

The renewal of the SMP allows Ore Asia to continue its quarrying operation in its iron quarry area – where it produces 60,000 metric tons of iron ore annually – pending the renewal of its Mineral Production Sharing Agreement (MAPSA-000041-III).

Mines bureau director Leo Jasareno explained that an SMP is a permit allowing an MPSA holder to mine for one year while awaiting the renewal of ITS MPSA. It has a term of one year renewable for another year.

The renewal of the Ore Asia’s SMP was done in accordance with Section 48 of the Department of Environment and Natural Resources Administrative Order No. 2010-21, the Implementing Rules and Regulations of the Philippine Mining Act of 1995.

In a related development, the MGB announced that it has collected a total of P2.69 billion in royalties from mining companies operating within mineral reservation areas during in 2014.

The amount represents five percent of the market value of the gross output of the minerals produced during the period.

Last year’s collection was higher than actual royalty earnings of P1.31billion in 2013.

At present, the government-declared mineral reservation areas are located in Zambales (Region III), Surigao del Norte, Surigao del Sur and Dinagat Islands (Region XIII).

Under Section 5 of the Mining Act, 10 percent of the amount collected will accrue to the MGB for special projects and other administrative expenses related to the exploration and development of other mineral reservations.

The remaining 90 percent will be divided between the national government (60 percent) and the local government units (40 percent) where the minerals are located.