Latest Stories

MGB eyes bidding of Surigao mining asset


MANILA, Philippines—A gold-rich area in Surigao del Norte may soon be up for bidding, according to the Mines and Geosciences Bureau (MGB). This, if the company formerly in charge of exploration loses its hold on the asset.

“The initial period for exploration is only 10 years. San Manuel Mining Corp. (SMMC), the company that used to explore the area, has had enough time,” MGB director Leo Jasareno told reporters.

Jasareno said the company might still appeal the MGB’s decision to deny its application for further exploration. “SMMC can take up the matter with higher authorities,” he said, referring to the Department of Environment and Natural Resources or DENR, the Office of the President, the Court of Appeals and the Supreme Court.

In November, the MGB denied the application of SMMC to undertake further exploration in the contract area covered by Mineral Production Sharing Agreement (MPSA) No. 004-91-X, which was granted on Jan. 7, 1991. It covers 1,480 hectares within Parcel II of Surigao Mineral Reservation.

Having exceeded the maximum exploration period allowed by law, MGB deemed SMMC unfit to continue to explore the area.

Jasareno pointed out that the MPSA was now in its 21st year but SMMC had yet to determine ore reserves.

The area is situated in Masapelid Island, Surigao del Norte.

The regional office of the MGB in Surigao City also said it found that illegal exploration activities in the area were being conducted by Bundok Mineral Resources Corp. (BMRC), an Australia-based company.

BMRC has no legal personality to explore the area because it has no approved agreement with San Manuel Mining Corp., Jasareno said.

The MGB is cleaning up “nonmoving” exploration permit applications and exploration contracts that have not produced results under the timelines set by law. Mining assets with canceled applications and permits will go on auction under new mining policy rules.

Jasareno said the hundreds of mining areas with canceled applications and permits would be assessed to determine which ones might be offered for bidding.

Section 3 of Executive Order 79 issued in July 2012 provided that  a “multistakeholder” team led by the DENR would “review” existing mining operations based on the specific mining contract or agreement and on other pertinent or applicable laws, rules and regulations, such as the Mining Act of 1995 and the labor code.

Section 5 provided that potential and future mining areas with known strategic mineral reserves and resources would be declared mineral reservations for the development of strategic industries identified in the Philippine Development Plan and a National Industrialization Plan “after proper consultation with all concerned stakeholders” including local governments.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: bidding , gold , Mines and Geosciences Bureau , Mining and quarrying , Philippines , San Manuel Mining Corp.

  • joboni96


Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • UN heads say Syria aid needs ‘largely unanswered’
  • Captain who left doomed ferry had 40 years at sea
  • UK woman held for murder after children’s bodies found
  • Washington calls S. Sudan violence an ‘abomination’
  • Abducted soldier freed in Compostela Valley
  • Sports

  • UP nips St. Benilde; Adamson blasts RTU in Filoil women’s caging
  • Kevin Garnett responds to Raptors’ GM F word
  • Albert Pujols hits 500th HR of major league career
  • UST posts twin kill in Filoil pre-season cup opening day
  • Wizards beat Bulls in OT to take 2-0 series lead
  • Lifestyle

  • Entering the monkhood a rite of passage
  • Haneda International Airport: A destination on its own
  • Wanted: Beauty queen with a heart that beats for the environment
  • Kim Atienza: At home with art and design
  • Life lessons I want to teach my son
  • Entertainment

  • Ex-Fox exec denies allegations in sex abuse suit
  • Kris Aquino backtracks, says Herbert Bautista and her are ‘best friends’
  • Summer preview: Chris Pratt enters a new ‘Galaxy’
  • Bon Jovi helps open low-income housing in US
  • Summer movie preview: Bay reboots ‘Transformers’
  • Business

  • Toyota sells 2.58 million vehicles, outselling GM
  • McDonald’s 1Q profit slips as US sales decline
  • SEC approves SM’s P15B retail bond offer
  • $103M Vista Land bonds tendered for redemption
  • Oil slips to $102 as US crude supplies seen rising
  • Technology

  • Engineers create a world of difference
  • Bam Aquino becomes Master Splinter’s son after Wiki hack
  • Mark Caguioa lambasts Ginebra teammates on Twitter
  • Brazil passes trailblazing Internet privacy law
  • New York police Twitter campaign backfires badly
  • Opinion

  • One-dimensional diplomacy: A cost-benefit analysis of Manila’s security deal with Washington
  • No ordinary illness
  • Reforest mountains with fire trees and their kind
  • Day of the Earth
  • When will Chinese firm deliver new coaches?
  • Global Nation

  • Palace thanks Estrada for successful HK mission
  • Hong Kong accepts PH apology; sanctions also lifted
  • China won’t budge, wants PH gov’t to apologize to HK
  • Cha cha train to follow Obama visit?
  • No word yet on inking of US-PH defense pact during Obama visit
  • Marketplace