Environment and Natural Resources Secretary Angelo T. Reyes took another major step to revitalize the Philippine mining industry with his recent order to transfer the disposition of cancelled mining permits to the Philippine Mining Development Corp. (PMDC), a corporate arm of the DENR.

Reyes said the move would open up some 68,625 hectares of mineral lands that have been idle for many years by uncommitted investors.

The order, signed last week, covers all mining permits cancelled by the Department of Environment and Natural Resources (DENR) under memorandum orders No. 2005-3 and No. 2005-13, which included 65 non-performing permits in various areas in the country.

“This will enable the entry of more serious investors, thus further spurring development and economic activity in the mining sector. At the same time, this will result in higher revenues from government mining assets,” Reyes said.

The DENR chief, who is also the chairman of the PMDC, said that transferring the management of these permits to a government-owned corporation would allow government greater flexibility and leverage in developing these mines.

He said the transfer would put the task of disposing vacated mineral lands to PMDC, formerly known as the Natural Resources Mining Development Corp., through public bidding. However, PDMC also has the option to develop and operate these mines by itself or in joint venture with a qualified private party or contractor.

Reyes has directed the Mines and Geosciences Bureau (MGB) to coordinate with PMDC on the orderly and appropriate transfer of all relevant documents and information as soon as possible.

It may be recalled that then DENR Secretary Michael T. Defensor issued DMO No. 2005-03 on February 1, 2005 canceling 93 non-performing mining permits. He later issued DMO No. 2005-13 declaring as final and executory the cancellation of 65 of 93 idle permits, while the remaining 28 permits were subjected to further review in view of the motions for reconsideration filed by their owners. A moratorium, however, was imposed for the filing of mining applications on the 65 idle mineral lands until such time that the appropriate policy is issued by the DENR.

The 65 permits were cancelled in view of certain violations of the provisions of the Mining Act of 1995, its implementing rules and regulations and/or terms and conditions of their respective mining permits. The main criterion for the cancellation was the failure of the mining contractors to undertake mining activities on the ground over a long period of time.

May 26, 2007