Proposed policy to boost mining ops nationwide: MGB : compar

Proposed policy to boost mining ops nationwide: MGB

MANILA-The Department of Environment and Natural Resources - Mines and Geosciences Bureau (DENR-MGB) is proposing the implementation of a policy that allows only one operator per mining tenement in the country. Implementing such policy will help improve the execution of mining agreements and promote the holistic, harmonious, and systematic conduct of mining operations, MGB Mining Tenements Management Division chief Danilo Delena said Friday during Day 2 of a virtual mining stakeholders' forum. Delena said the MGB drafted the policy due to "persistent disputes and issues among contractors and multiple operators, which compromise the conduct of mining operations within mining tenements." "That's why there's (a) need to limit the operator under a mining tenement," he said. He said the MGB has proposed the policy to Environment Secretary Roy Cimatu for review and approval. If approved, the DENR would issue an administrative order institutionalizing the policy, Delena said, adding that the MGB is hoping the department would issue the order soon. The proposed policy covers all mineral production sharing agreements (MPSAs) and financial or technical assistance agreements (FTAAs), according to the MGB. The bureau defines the MPSA as a mineral agreement in which the "government shares in the production of the contractor, whether in kind or in value, as owner of the minerals," while the contractor "shall provide the necessary financing, technology, management, and personnel for the mining project." On the other hand, the FTAA is an agreement that "may be entered into between a contractor and the government for the large-scale exploration, development, and utilization of gold, copper, nickel, chromite, lead, zinc and other minerals except for cement raw materials, marble, granite, sand and gravel and construction aggregates." Delena said the proposed policy requires mining tenement operators to meet certain qualifications. He said under DENR Memorandum Order 99-10, an operator must have satisfactory environmental management and community relations in previous mineral resource use ventures and must possess technical competence and financial capability to conduct mining operation within the area covered by the MPSA or FTAA concerned. The proposed policy likewise identified grounds for either suspending the mining operations of contractors authorized to undertake these or canceling MPSAs and FTAAs concerned, Delena said. "Failure of the operator to conduct mining operations in the contract area under the MPSA or FTAA for more than one year from authorization therein shall cause withdrawal of the said authority," he said. Delena said the proposed policy has a transitory provision covering existing multiple operators under either MPSAs or FTAAs. He said under that provision, operators "shall continue to be authorized until (the) expiration of the term of their respective operating agreement, memorandum of agreement, and other similar forms of agreement." "The authorization of multiple operators shall cease upon expiration of the term of their respective agreements and the contractor shall elect which operator shall remain to conduct mining operation" under the mining agreement concerned, he added. (PNA) }

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Danilo Delena , Roy Cimatu , Geosciences Bureau , Department Of Environment , Mining Tenements Management Division , Natural Resources , Tenements Management Division , Environment Secretary Roy Cimatu , Manila The Department Of Environment And Natural Resources Mines Geosciences Bureau Denr Mgb Is Proposing Implementation Ofa Policy That Allows Only One Operator Per Mining Tenement In Country Implementing Such Will Help Improve Execution Agreements Promote Holistic , Harmonious , Nd Systematic Conduct Of Mining Operations , Gb Mining Tenements Management Division Chief Danilo Delena Said Friday During Day 2 Ofa Virtual Stakeholders 39 Forum The Mgb Drafted Policy Due To Quot Persistent Disputes And Issues Among Contractors Multiple Operators , Hich Compromise The Conduct Of Mining Operations Within Tenements Quot That 39s Why There 39 Sa Need To Limit Operator Undera Tenement , Uot He Said The Mgb Has Proposed Policy To Environment Secretary Roy Cimatu For Review And Approval If Approved , He Denr Would Issue An Administrative Order Institutionalizing The Policy , Selena Said , Dding That The Mgb Is Hoping Department Would Issue Order Soon Proposed Policy Covers All Mineral Production Sharing Agreements Mpsas And Financial Or Technical Assistance Ftaas , Ccording To The Mgb Bureau Defines Mpsa Asa Mineral Agreement In Which Quot Government Shares Production Of Contractor , Hether In Kind Or Value , S Owner Of The Minerals , Uot While The Contractor Quot Shall Provide Necessary Financing , Technology , Management , Nd Personnel For The Mining Project Quot On Other Hand , He Ftaa Is An Agreement That Quot May Be Entered Into Betweena Contractor And The Government For Large Scale Exploration , Development , Nd Utilization Of Gold , Copper , Nickel , Chromite , Head , Inc And Other Minerals Except For Cement Raw Materials , Marble , Granite , And Gravel Construction Aggregates Quot Delena Said The Proposed Policy Requires Mining Tenement Operators To Meet Certain Qualifications He Under Denr Memorandum Order 99 10 , N Operator Must Have Satisfactory Environmental Management And Community Relations In Previous Mineral Resource Use Ventures Possess Technical Competence Financial Capability To Conduct Mining Operation Within The Area Covered By Mpsa Or Ftaa Concerned Proposed Policy Likewise Identified Grounds For Either Suspending Operations Of Contractors Authorized Undertake These Canceling Mpsas Ftaas , Elena Said Quot Failure Of The Operator To Conduct Mining Operations In Contract Area Under Mpsa Or Ftaa For More Than One Year From Authorization Therein Shall Cause Withdrawal Authority , Uot He Said Delena The Proposed Policy Hasa Transitory Provision Covering Existing Multiple Operators Under Either Mpsas Or Ftaas That , Perators Quot Shall Continue To Be Authorized Until The Expiration Of Term Their Respective Operating Agreement , Memorandum Of Agreement , Nd Other Similar Forms Of Agreement Quot The Authorization Multiple Operators Shall Cease Upon Expiration Term Their Respective Agreements And Contractor Elect Which Operator Remain To Conduct Mining Operation Under Concerned , He Added Pna ,

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