Legislative franchises for mining operations a must

House of Representatives | May 24, 2018

The House committees on legislative franchises and natural resources in a joint hearing unanimously approved the substitute bill which requires all mining operations in the country to secure legislative franchises.

The unnumbered bill, in substitution for House Bill No. 5674, 6259, 2165, 2915 and 3229, seeks to amend Republic Act 7942 otherwise known as the “Philippine Mining Act of 1995”. It is principally authored by Speaker Pantaleon Alvarez with the following as co-authors: Majority Floor Leader Rodolfo Fariñas, Minority Leader Danilo Suarez, Deputy Speakers Frederick Abueg, Ferdinand Hernandez, Romeo Quimbo, Raneo Abu, Reps. Joel Almario, Abdullah Dimaporo, Raul Daza, Ronaldo Zamora, Manuel Dalipe, Juliet Ferrer, Arnolfo Teves, Jr., Emmanuel Billones, Erlpe John Amante, Luis Campos, Jr., Jose Atienza, Jr., Allen Mangaoang, Arnel Ty, and Johnny Pimentel.

Section 11 of RA 7942 was amended to require private contractors to first secure a legislative franchise before they can apply for a large-scale quarrying permit or an exploration permit before entering into a mineral agreement or financial and/or technical assistance agreement. The terms and conditions of said permits and agreements shall be made available to the public.

Private contractors presently holding explorations permits, mineral agreements, and financial and/or technical assistance agreements, and large-scale quarrying permits are given two years from the time the law takes effect to secure a legislative franchise, otherwise their permits and agreements will be terminated.

Before renewal of any franchise, the Secretary [of Environment and Natural Resources or DENR] shall review the existing mineral agreement, or financial or technical assistance agreement or large-scale quarrying agreement to determine if the entire contract area has been utilized and is necessary for purposes of the mining operations of the contractor.

Upon the Secretary’s recommendation, the contractor shall relinquish to the government any portion of the contract area which shall not be necessary for such purpose.

The substitute bill also requires the DENR Secretary to inform Congress before any action is taken with regard to the withdrawal or cancellation of a mineral agreement. Similarly, Congressional information is required before any action is taken with regard to the withdrawal or cancellation of a financial or technical assistance agreement.

A new section pertaining to the roadmap for the development of downstream industry and national industrialization plan was introduced. The DENR, in coordination with the Departments of Trade and Industry, Science and Technology, National Economic and Development Authority and other stakeholders shall submit within a period of six (6) months a National Program and Road Map based on the Philippine Development Plan, and a National Industrialization Plan for the Development of Value-Adding Activities and Downstream Industries for Strategic Metallic Ores.

More importantly, the substitute bill mandates all contractors, in accordance with international standards and agreements for mining rehabilitation, to rehabilitate the area they have utilized and/or operated within ten (10) years, reckoned from the expiration date of the permit or agreement, or from the effective date of cancellation of such, whichever comes earlier.

Failure to rehabilitate shall be penalized by a fine of P100M for each hectare that has not been rehabilitated.

Within 90 days after the effectivity of the Act, the DENR shall promulgate the necessary rules and regulations for its proper implementation. (E. Galvez).

Source: https://www.congress.gov.ph/press/details.php?pressid=10680