Government cracking down on mining projects found idle

THE GOVERNMENT has started cancelling the tenure of mining firms on project sites that have been idle, the Environment chief told a group of foreign investors last Tuesday night.

“We shall fully implement the ‘use it or lose it’ policy in mining. All the regional offices of the Mines and Geosciences Bureau (MGB) have been directed to cleanse their records of nonmoving mining applications and nonperforming mining contracts,” Environment and Natural Resources Secretary Ramon Jesus P. Paje said in a speech during the monthly meeting of the Australia and New Zealand Chamber of Commerce of the Philippines.

Mr. Paje said there are about 2,800 existing mining tenements and applications for such holdings, but that only around 30 are operating.

“We have already canceled 125 [of the] existing 2,800 mining tenements and applications. Only around 30 are mining, so you can just imagine the opportunity lost,” Mr. Paje said.

Mr. Paje said his department expects to cancel around 50% of the idle mining tenements and applications by December.

“[This] will open about 5 million hectares of potential mineralized areas for serious investors,” Mr. Paje said.

“The government will bid out areas [concerned] as soon as we’re able to come out with the formula for the bidding.”

Mr. Paje reiterated the government’s support for the sector, saying “the department continues to view the minerals industry as a major investment area, as a significant national and local revenue source, and a vehicle to support the new initiatives for growth of the countryside.”

The government estimates mining investments to have exceeded $600 million in value in the first semester, nearly half of the $1.429 billion targeted this year.

Investments amounted to about $704.43 million last year.

The MGB has projected mineral production to reach P138.5 billion this year, or a third more than the P106.1 billion produced in 2009. –BUsinessworld