Revised mining reform rules signed

MANILA, Philippines—The implementing rules and regulations (IRR) of the government’s mining policy reforms have been finalized by the Department of Environment and Natural Resources (DENR) and will soon take effect.

According to Mines and Geosciences Bureau director Leo Jasareno, the revised rules would be effective 15 days after publication.

It was earlier reported that President Aquino had approved the revised IRR of Executive Order No. 79 that sought to address concerns raised by mining industry players.

All the revisions to the EO that the Mining Industry Coordinating Council had submitted to the President were approved, according to Palace reports.

The revisions covered the terms for expired mining tenements; the grant of mineral agreements pending new mining legislation; and the opening of areas to mining through public bidding.

But on the controversial 25-year contract term provision, officials said the amended rules do not provide for “automatic renewal” and automatic rebidding, as in the past.

There is a period for review and there will be an opt-out period for both sides, officials said.

The Chamber of Mines of the Philippines (COMP) earlier questioned Section 9 of the EO, under which government may bid out or declare a mineral reservation in a mining tenement after the first 25-year contract. At present, mining tenement contracts run for 25 years and are renewed for another 25 years if the mining contractor is able to follow its approved mining program.

COMP said the IRR provision was “patently illegal” and said it was a direct violation of Section 32 of the Mining Act of 1995.

But with the revisions, the MICC expressed hope that IRR provisions had been clarified.

The President issued EO 79 in July in a bid to boost government revenue from the mining sector while increasing environmental safeguards.

Toward the end of September, DENR suspended the implementation of the IRR.

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