Senate President Francis ‘Chiz’ G. Escudero wants the Department of Environment and Natural Resources (DENR) to cancel and recall mining exploration permits that have remained unused, saying companies “have no business holding on to these permits” if they are unable to utilize the licenses granted under the Mining Act.
In a press conference on Tuesday (March 3), the Senate President said the failure of these mining firms to use the mining exploration permits defy the intent of the Republic Act No. 7942, or the Philippine Mining Act, which is envisioned to promote and utilize the country’s mineral resources for national growth.
“The intention of the Mining Act is to promote the rational exploration, development, utilization, and conservation of mineral resources to enhance national growth. Exploratory permits were issued by government to achieve this goal, but if these are not being utilized by the mining firms, then they have no business holding on to these permits,” he said.
“Kung hindi ka tumupad sa napagkasunduan na dapat gawin sa loob ng takdang panahon, dapat tanggalin o kanselahin na ang exploration permit o ‘yung MPSA (mineral production sharing agreement)—sino ka man, ano man pangalan o apelyido mo o kompanyang kinabibilangan mo,” he said.
Unutilized exploration permits, he added, should be granted to mining companies that are capable through bidding, and this could even raise revenues for the government. “Hindi kayang mag-explore, hindi niya kayang i-process ang minerals, bitawan niya o bawiin sa kanya ng gobyerno, at ang panukala ko, i-bid out ng gobyerno (ang permits) para kumita pa.”
The Senate chief has recently filed Senate Resolution No. 1310 to investigate the huge number of inactive, non-operational, invalid, or unused exploration permits and mineral agreements that are contrary to the declared policy of the Mining Act of 1995.
“Nag-apply, tinatrato bilang pribadong pagmamay-ari nila, uupuan lang, hihintayin tumaas, ibebenta sa kung sino talaga interesado pagdating ng 10, 20 taon. Hindi nila pribadong pagmamay-ari ‘yan. That is owned by the State,” he said.
“Under the Constitution, all mineral deposits are owned by the State. They are mere contractors. Any EP (exploration permit) or MPSA (mineral production sharing agreement) grantee or licensee are mere contractors of the State over an asset that is owned by the State,” he added.
Senate President Escudero has presided over a previous public hearing of the Committee on Environment, Natural Resources and Climate Change to discuss the Senate resolution, during which he noted that the Philippines was unable to exploit its resources and achieve its full potential for growth and prosperity despite ranking 5th in terms of global mineral reserves and being the world’s second biggest producer of nickel ore.
“Ang Pilipinas ay mayamang bansa na nagpapanggap na mahirap pagdating sa mineral resources. Bakit hindi natin napapakinabangan at nagagamit ‘yon?” he said.
According to the latest government data, the mining industry’s contribution to GDP was 0.5 percent in 2022 and 0.7 percent in 2023.
With such dismal figures, the Senate President said the direction taken by President Ferdinand Marcos Jr. and Environment Secretary Maria Antonia Yulo Loyzaga to increase mining’s contribution to GDP is the right way to go.
“Ang (mining sa) Pilipinas nasa 0.7 percent, wala pa isang porsyento ng GDP. Sa ibang bansa, malayong mataas, 13, 14, 18 percent ng GDP ‘yung nasa top 10 ng richest countries in the world. Bakit tayo nasa one-half of 1 percent lang? Sobrang kaunti,” Escudero said.
During the hearing, the DENR reported that 152 exploration permits have been issued as of February this year.
Out of the total, 45 are valid and existing; four are for registration; 53 are expired with pending renewal applications; 48 have expired with no renewal application; one was consolidated with another exploration permit; and one has been cancelled.
“May ilan na may mga kaso daw na hindi natin alam kung covered ang buong mining area at meron din fortuitous events na wala naman sa batas. Discretion always equals to corruption para sa akin. Kaya hiniling ko sa DENR, tanggalin ‘yung areas of discretion kaugnay nito,” he said.
According to the Senate leader, the DENR can issue an administrative order or memorandum circular to revoke or recall the exploration permits.