Malacañang yesterday said the mining industry “unanimously” agreed on revisions in the Implementing Rules and Regulations (IRR) on the Reforms in the Philippine Mining Sector which will be submitted to President Aquino for approval.
Strategic Communications Secretary Ramon Carandang said the revision was agreed upon by members of the Mining Industry Coordinating Council who attended the meeting in Malacañang.
Revised were Sections 3, 7 and 9 of the IRR of Executive Order (EO) 79.
The revised Section 3 states that “expired mining tenements” refer to mining contract/agreements whose 25- or 50-year term has lapsed.
But in the case of the initial 25-year term, the mining contract/agreement shall be considered expired if the parties concerned fail to agree on the terms of the renewal pursuant to Sections 32 and 38 of Republic Act (RA) 7942 or the Philippine Mining Act of 1995, and other pertinent laws.
On the other hand, the revised Section 7 said no new mineral agreements shall be entered into until a legislation rationalizing existing revenue sharing schemes and mechanisms shall have taken effect — provided, that in the case of expansion of existing contract areas, the same shall be subject to existing laws.
It was also stated the National Government-Owned Mining Assets may be subject to the Financial or Technical Assistance Agreement in accordance with Section 9 of the IRR.
Meanwhile, the revised Section 9 was the opening of areas for mining through “competitive public bidding.”
Carandang explained Section 2, Article 12 of the Constitution provides the exploration, development and utilization of natural resources shall be under the full control of the State.
Thus, he said, “the grant of mining rights and mining tenements over areas with known and verified mineral resources and reserves, including those owned by the government and all expired tenements, shall be undertaken through competitive public bidding.”
“The mining contract/agreement that may be renewed shall be subject to existing laws, rules and regulations at the time of renewal,” he added.
Mining contractors whose tenements are expiring from Sept. 1, to April 30, 2013, shall be given 30 days from the effectivity of the IRR to file renewal applications.