UPDATE TO THE

PROPOSED MINING POLICY

LEO L. JASARENO Director

Mines and Geosciences Bureau Department of Environment and Natural Resources

MINING STUDY GROUP

Created per instruction of

the President, thru the

Memorandum dated

October 26, 2011 of the

Executive Secretary

Tasked to finalize the

mining industry policies of

the Administration

Composed of the

Secretaries of the DENR,

Presidential Assistant on

Climate Change,

Presidential Assistant on

Environmental Protection

and the Vice-Chair of the

Climate Change

Commission

THE MINING STUDY GROUP’S

SPECIFIC TASKS:

1. Address issues and concerns in the mineral sector-

Lack of baseline data

Policy inconsistencies between national and local laws

Governance and law enforcement

Lack of total economic valuation

Increasing government share in mining revenues

Adverse effects of environmental degradation and climate change

THE MINING STUDY GROUP’S

SPECIFIC TASKS:

2. Provide a clear and detailed assessment of the state of the mining industry, its impacts, effects and potential for the future.

3. Consult with the concerned stakeholders such as the mining industry, non-government and civil society organizations, and environmental groups, among others; and

4. Formulate the mining industry policy by the end of the year and present it to the President’s approval.

CONSULTATIONS MADE:

1. Prior to first draft of the proposed EO

November 14, 2011

@ DENR Social Hall

Sectors: (Morning Session)

Mining industry groups

Philippines Society of Mining Engineers

Academe

(Afternoon Session)

NCIP

Non-governmental organizations/civil society groups

CONSULTATIONS MADE:

1. Prior to first draft of the proposed EO

November 18, 2011

@ Mabini Hall, Office of the President

Sectors:

Miners Association of the Philippines

National Government Agencies

November 21, 2011

@ Mabini Hall, Office of the President

Sectors:

League of Provinces/Cities

Small-scale mining groups

CONSULTATIONS MADE:

2. After the first draft of the proposed EO

March 22, 2012

@ Tower Club, Makati

Sectors:

Makati Business Club

Mining industry groups

April 26, 2012

@ Asian Institute of Management

Sectors:

Small-Scale miners groups

CONSULTATIONS MADE:

2. After the first draft of the proposed EO

June 1, 2012

@ Mabini Hall, Malacañang

Sectors:

Non-governmental organizations/civil society groups

June 28, 2012

@ Mabini Hall, Malacañang

Sectors:

League of Provinces

GENERAL MINING POLICY CONCERNS

1. Proper valuation and protection of the ecology and bio-diversity.

2. Institutionalizing responsible mining, for both large and small scale, with special attention to environmental and ecosystem impact, and the rights of the affected IPs and communities.

3. Ensuring optimal and equitable benefits from mining for local and national economic and social growth.

GENERAL MINING POLICY CONCERNS

4. Providing for a good business environment for investors.

5. Strengthening institutional and governance capacities to ensure proper regulation and maximum benefits.

6. Considering climate change and disaster risk reduction as major concerns in mining.

POLICY FOCUS AREAS

Focus Area

No. 1: NO GO ZONES

Address increasing concerns on protecting prime agricultural lands for food security.

Protect and promote eco-tourism sites, which are major contributors to growth.

Ensure that critical and sensitive ecosystems shall not be adversely affected by mining.

POLICY FOCUS AREAS

Focus Area No. 2: Mining in Palawan.

Consider Palawan as the country’s last frontier and the eco-tourism capital of the country.

Come out with a clear stand on mining in Palawan.

POLICY FOCUS AREAS

Focus Area

No. 3: Review of Performance of Mining Operations

Ensure compliance with law.

Rationalize mineral development and utilization in line with the principle of sustainable development.

POLICY FOCUS AREAS

Focus Area

No. 4: Auctioning of Areas with Known Reserves.

Allow the collection of additional share for Government through negotiation.

Weed out speculators and provide for a level playing field.

POLICY FOCUS AREAS

Focus Area

No. 5: Creation of an Inter-Agency Council on Mining .

Facilitate dialogue and coordination among the growing number of stakeholders in the minerals industry.

Review mining and related laws, guidelines and agreements.

POLICY FOCUS AREAS

Focus Area

No. 6: Study of Equitable Benefit Sharing Schemes.

Look into terms for equitable benefit sharing among the government, LGUs concerned and local communities, existing taxes and fees and incentives.

POLICY FOCUS AREAS

Focus Area

No. 7: Imposition of Higher Regulatory Fees and Charges.

Adopt a fair and reasonable increase of fees on mine wastes and tailings, occupation and processing, after due consultation.

POLICY FOCUS AREAS

Focus Area

No. 8: Disposition of Abandoned Ore and Mine Wastes and/or Mill Tailings as Assets of the State.

Generate additional Government revenue.

POLICY FOCUS AREAS

Focus Area

No. 9: Development of a Downstream Industry for the Mineral Sector.

Formulate a national program for the development of value-adding activities for metallic ores.

POLICY FOCUS AREAS

Focus Area No. 10: Mineral Reservations.

Establish more mineral reservations for potential strategic minerals.

Support the development of strategic industries .

POLICY FOCUS AREAS

Focus

Area No. 11: Government Capacity Enhancement

Strengthen capability of government agencies concerned in carrying out their mandates and functions.

POLICY FOCUS AREAS

Focus Area No. 12: Creation of a Task Force Against Illegal Mining

Institutionalize a stronger force of Government to counter the growing illegal mining operations.

MINING POLICY FOCUS

Focus Area

No. 13: Streamlining and Rationalizing Small-Scale Mining Operations.

Strictly implement provisions of RA No. 7076 and the EIS System.

Totally prohibit use of mercury.

Operationalize all Provincial and City Mining Regulatory Boards.

Provide training and capacity building for small-scale miners.

POLICY FOCUS AREAS

Focus Area

No. 14: Demilitarization of Mining Areas.

Strictly disallow unreasonable deployment of military and police personnel in mining areas.

POLICY FOCUS AREAS

Focus Area

No. 15: Integration and Streamlining of Procedures and Processes

Create a one-stop shop for processing of mining applications, to include other government agencies concerned.

Establish central database system for the minerals industry, to include from Wealth Accounting and Valuation.

Integrate mapping system; unify maps.

POLICY FOCUS AREAS

Focus Area

No. 16: Extractive Industries Transparency Initiative

Enrol in and implement the EITI.

POLICY FOCUS AREAS

Focus Area

No. 17: Providing for Clear and Responsive Environmental Standards.

Address and effectively respond to environmental incidents related to mining.

POLICY FOCUS AREAS

Focus Area

No. 18: Programmatic Environmental Impact Assessment

Instituting a programmatic approach in the EIS system involving mining projects.

EXPECTED OUTCOME

1. Lifting of the moratorium.

2. Resolving MRs and Appeals.

3. Address the issues and concerns

that hamper the growth of

responsible mining.

MARAMING SALAMAT!

www.mgb.gov.ph