Mining council revises EO 79 to address business groups' concerns

MANILA, Philippines - The Mining Industry Coordinating Council (MICC) has agreed to revise the Implementing Rules (IRR) and Regulations of Executive Order 79 implementing reforms in the mining sector to address the concerns of business groups.

Presidential Communications Development and Strategic Planning Office Secretary Ricky Carandang said the revisions to the IRR would be submitted to President Aquino for comment and approval.

Carandang said the MICC agreed to revise Sections 3, 7 and 9 of the IRR during a meeting called by Aquino yesterday.

He said the revisions were unanimously agreed upon by the members of the MICC present at the meeting, including himself, Executive Secretary Paquito Ochoa Jr., Finance Secretary Cesar Purisima, Trade Secretary Gregory Domingo, Environment Secretary Ramon Paje, Energy Secretary Rene Almendras, Socioeconomic Planning Secretary Arsenio Balisacan, Presidential Assistant for Climate Change Elisea Gozon and representatives of the Department of Justice (DOJ) and the Office of the Solicitor General (OSG).

The revision includes:

Section 3. Definition of Terms, which states that “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 shall be considered expired if the parties concerned fail to agree on the terms of the renewal pursuant to Sections 32 and 38 of RA 7942, or the Philippine Mining Act of 1995, and other pertinent laws);

Section 7. Grant of Mineral Agreements Pending New Legislation which provides that, “No new mineral agreements shall be entered into until a legislation rationalizing existing revenue sharing, schemes and mechanisms shall have taken effect. (Provided, that in the case of expansion of existing contract areas, the same shall be subject to existing laws; and that the National Government-Owned Mining Assets may be subjected to the Financial or Technical Assistance Agreement [FTAA] in accordance with Section 9 of these implementing rules and regulations, and Section 9. Opening of Areas for Mining through Competitive Public Bidding).

Article XII Section 2 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 agreement may be renewed and shall be subject to existing laws, rules, and regulations at the time of renewal. (Provided 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, and that those mining contractors whose tenements expire after April 30, 2013, shall file their renewal applications not later than six months prior to the expiry of their mining contracts/agreements.) 

The Chamber of Mines of the Philippines earlier threatened to file a case against the government over Section 9 of the IRR which it described as “patently illegal.”

Under the original IRR, Section 9 stated the government could renegotiate the terms of mining contracts after the first 25 years. This effectively shortens the project period from the current maximum of 50 years.