126 mining permit applications filed

The government resumed acceptance of applications for new mining permits  on Monday and had some 126 by afternoon, according to the Mines and Geosciences Bureau (MGB).

MGB Director Leo Jasareno said in an interview that the 126 applications were for exploration permits (EPs) and financial and technical assistance agreements (FTAAs), which were essentially licenses for large-scale mining operations.

“As of this afternoon (Monday), we have received 126 new applications. Of the 126, seven had complete requirements and were accepted, 59 were rejected for being incomplete or for falling on no-go zones for mining, and the rest are still being evaluated,” Jasareno said.

The MGB chief considered the turnout lower than expected. This, he said, could be attributed to the higher fees slapped on new mining applications, which allowed the government to limit the opening of potential mineralized areas for serious investors only.

Last month, the MGB issued Administrative Order No. 2013-10, or the “Procedural Guidelines in the Filing and Processing of Applications for Exploration Permit.” The new guidelines take off from Executive Order No. 79, which the Office of the President issued to among others, increase mining fees.

The order covers the filing and processing fees for applications for EPs, mineral agreements (MAs), and FTAAs. It also included the renewal of EPs and exploration periods of MAs and FTAAs.

The MGB increased the EP and MA application fee to P300 per hectare (but not less than P200,000 per application) from P60 per hectare (P50,000 per application). The fee for FTAA was increased to P300 per hectare (but not less than P500,000 per application) from P60 (P100,000 per application) previously.

In Memorandum Order No. 20130-01, the MGB also increased the minimum authorized and paid-up capital requirements for mining applicants pursuant to Republic Act No. 7942 or the Philippine Mining Act of 1995.

According to the MGB, the minimum authorized capital requirement for applicants of EPs, MAs, and FTAAs has increased from P10 million to P100 million, while the minimum paid-up capital now stands at P6.25 million, up from P2.50 million previously.

“In the case of an applicant for FTAA, it shall be required to have a minimum paid up capital of P500 million upon the grant of the said FTAA by the President of the Republic of the Philippines and prior to its registration with the MGB,” Jasareno said.

In the meantime, Jasareno reminded interested investors that the agency would continue the present system of “first come, first served” in evaluating applications.