19 mining projects set for approval this year–MGB

The Mines and Geosciences Bureau (MGB) is looking at 19 new mining projects to advance to commercial production within the year following successful exploration activities.

MGB Director Leo Jasareno said they are now studying the Declaration of Mining Project Feasibility submitted by mining companies. He said the 19 new mining projects are both for metallic and non-metallic minerals.

“We are now reviewing the declaration of mining project feasibility,” he said, adding that with everything in order, there’s no reason for the bureau not to issue permits.

A Declaration of Mining Project Feasibility means that the companies have completed exploration activities and found sufficient mineral resources to sustain commercial production.

One of the bigger non-metallic projects being reviewed by the MGB is that of cement giant Holcim, which aims to mine limestone used to produce cement. Another bigger project, he said, is for the production of nickel.

According to Jasareno, once approved by the MGB, the proponents of these mining projects can proceed with the extraction of mineral ores.

These potential new projects are expected to boost the country’s metallic and non-metallic minerals output, create more jobs, and generate revenues both for the national government and concerned local government units (LGUs), Jasareno said.

Last year the government collected P1.57 billion in revenues from mining companies operating within mineral reservation areas. This represented a 42-percent increase, compared to P1.1 billion recorded in 2011.

Based on the FY 2012 Budget of Expenditures and Sources of Financing submitted to the Department of Budget and Management, the MGB estimated royalty earnings to reach P1,123,811,000. But actual collection exceeded target by 39 percent, reflective of higher output by mining companies.

Of this amount, 10 percent shall accrue to the MGB to be allotted for “special projects and other administrative expenses related to the exploration and development of other mineral reservations” as provided by the Philippine Mining Act of 1995.

The remaining 90 percent shall be divided between the national government (60 percent) and the local government (40 percent).

Jasareno said the bureau is also looking forward to the lifting of the mining moratorium “very soon.”

This, despite still-unresolved profit-sharing issue between the government and mining companies awarded with government contracts to extract the country’s mineral resources.

“We are collating data. We will come up with a recommendation soon,” Jasareno said.

Environment and Natural Resources Secretary Ramon J.P. Paje has the final say in the lifting of the mining moratorium, which took effect in January 2011.

During the past two years, the MGB, as directed by the DENR chief, reviewed a total of 2,100 mining applications; around 500 passed the evaluation. At least 1,200 mining applications were cancelled with finality, while some 400 applications are under appeal. –Jonathan L. Mayuga / Reporter, Businessmirror