The Politics of The Mineral Sector - The Mining Act of 1995

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The Politics of The Mineral Sector - The Mining Act of 1995 Gianna Gayle H. Amul Seminar in Contemporary Philippine Legislation University of the Philippines, Diliman October 4, 2007

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The report is based on a desk study and a three-week field trip to the Philippines, where data was gathered through qualitative interviews. Interview partners included affected communities, company representatives, local and national civil society organizations, as well as government authorities. By evaluating this data we shed light on the main human rights issues linked to the Tampakan Project. The choice of our interview partners reflects our human rights approach. While our interviewees have both positive and negative attitudes towards the Tampakan Project, they do not constitute a representative sample of the population in the area. Instead, our goal is to make sure that we include those people who have serious concerns with regard to their human rights situation and to analyze their hopes and fears and complement this information with desk research and the views of other stakeholders and experts.

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Prior to the start of stock exchange trading on 5 January 2012, Intex issued a stock exchange announcement stating that it had signed a MoU with MCC8 for the development of its nickel project in Mindoro. This agreement could grant MCC8 a “project management contract” (“PMC”) which would mean that MCC8 would take on most of the responsibility for the project finance and development of the field. As consideration for this, MCC8 and its strategic partners would have an option to purchase up to 90% of Mindoro Nickel, in a staged process, for a total of USD 296 million. Intex would retain 10% and would have an option to buy back a further 10% for up to USD 60 million following completion of the project1.

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With an estimated $1.4 trillion in reserves, Philippine mining potential ranks fifth in the world, covering an estimated 9 million hectares, but less than 2% has mining permits. After long stagnation, the sector has been coming back after a 2005 SC decision affirming RA 7942, considered a world-class legal framework for sustainable development. Minerals development is a government priority and has great potential for jobs and revenue. Government has identified over 60 priority PPP projects. Mining can support poor rural areas through high quality jobs, local tax payments, and community development. The national government receives substantial royalty and tax payments. Government revenue from mining increased 800% from 2002 to PhP10.4 billion in 2007. However, full development of the sector continues to face significant challenges. Lengthy, tedious approvals for Exploration Permits (EPs) continue to impede investment. Several LGUs have closed their provinces to mining. Industry is concerned that the Writ of Kalikasan might disturb lawful activities. An investor cannot tell easily if land is ancestral land. Skilled Mines and Geosciences Bureau (MGB) personnel often leave public service. EO 79 has imposed a moratorium on new mining permits, pending the passage of a new law on the revenue-sharing scheme between industry

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The new environmental legislation replaces 18 environmental laws with 8 laws and introduces 2 entirely new laws. The purpose of the review was to reduce duplication and improve the quality of regulation, ensure responsible, environmentally-friendly and sustainable development, improve economic efficiency, introduce international standards in environmental auditing and the "polluter pays" principle, increase public participation in environmental decision-making, and secure funds for environmental protection.

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