MINING IN THE

PHILIPPINES
The Philippine government grants Mineral
Production Sharing Agreements on condition
that the mining activities are managed in a
technically, financially, socially, culturally and
environmentally responsible manner to
enhance the national growth and welfare of
the Philippines.
The Department of Environment and Natural
Resources requires an Environmental Clearance
Certificate for any mining activity at a more advanced
stage than mineral exploration. The ECC is issued by
the DENR based on an Environmental Impact
Statement prepared by the company in accordance
with the procedures under the Environmental Impact
Assessment System. A completed ecological profile
of the proposed mining area is required as part of
these procedures.
The ECC is the basis for the Environmental Protection
and Enhancement Program, which every party to an
MPSA must undertake within the subject area of the
MPSA. To implement an approved EPEP, an Annual
Environment Protection and Enhancement Program is
required to be submitted 30 days prior to the beginning
of every calendar year. To ensure compliance with the
APEP, mine site inspections and quarterly monitoring
are conducted by the DENR and a multipartite
monitoring team composed of local government units,
host communities, any affected indigenous cultural
communities, non-governmental organizations, the
DENR and the company.
The Philippines Department of the Environment and Natural
Resources (DENR), in co-ordination with other relevant
government agencies and the mining industry, is finalising a
Minerals Action Plan (MAP) in an attempt to harmonise the laws
of local governments with forestry and lands legislation, and the
Indigenous People Rights Act (IPRA). The responsibilities for
the environment will be separated from the DENR. In January
2004 the Philippine Supreme Court reached a decision that
nullified some provisions in the 1995 Philippine Mining Act that
allow 100% foreign equity in large mining projects (requiring an
investment of more than US$50 million) through Financial and
Technical Assistance Agreements (FTAAs). The Supreme Court
also declared as null and void provisions in the Mining Act
relating to Exploration Permits and Mineral Processing Permits.
A recent law also gives the power of veto to indigenous people
where a new mine is planned on ancestral lands.
As of the end of December the government of the
Philippines issued 762 mining rights, though, of the
total land area of the Philippines, only 1,9% are held
by mining rights.
Notable gold, copper iron, nickel and chromite
deposits can be found in various parts of the
Philippines.
9 key things to know the mining industry in the
Philippines:

1. The Philippines is the fifth most mineral-rich country in
the world for gold, nickel, copper, and chromite. It is home
to the largest copper-gold deposit in the world. The Mines
and Geosciences Bureau has estimated that the country
has an estimated $840 billion worth of untapped mineral
wealth.

2. All the regions (except NCR and ARMM) in the country
allow mining operations. ARMM ceased issuing permits
due to the on-going peace process between the Moro
Islamic Liberation Front and the national government.
3. About 30 million hectares of land areas in the Philippines
is deemed as possible areas for metallic minerals. Of these,
only a small percentage has been covered by present
mining permits.

4. The Philippines metal deposit is estimated at 21.5 billion
metric tons and non- metallic minerals are at 19.3 billion
metric tons.

5. Labor department statistics show that mining in the
Philippines has created 211,000 jobs in 2011 alone. The
figures have doubled since 2006.

6. The mining industry's gross production value has
consistently increased through the years. In 2010, the
mining industry reached $3.2 billion.
7. The Mining Act of 1995 allows for foreign ownership of
mining assets and exploration permits. The Supreme
Court upheld the constitutionality of the foreign investors'
participation in mining activities in 2004.

8. Mining tax is low at 2% for metallic and non-metallic
minerals. The current Aquino administration, however,
wants to increase revenues through an additional 5%
royalty tax for mining permits within mining reservation
areas and increase the filing fee charges.

9. There are a total of 1,828 mining applications in the
country, which will be directly affected by the Executive
Order from the Aquino administration that does not allow
new mining permits.