MGB Presentation Update on Mining Policy 7.6.2012 UPDATE TO THE PROPOSED MINING POLICY LEO L. JASARENO Director Mines and Geosciences Bureau Department of Environment and Natural Resources

1. UPDATE TO THE
PROPOSED MINING POLICY
LEO L. JASARENO
Director
Mines and Geosciences Bureau
Department of Environment and Natural Resources

2. MINING STUDY GROUP
 Created per instruction of
the President, thru the
Memorandum dated
October 26, 2011 of the
Executive Secretary
 Tasked to finalize the
mining industry policies of
the Administration
 Composed of the
Secretaries of the DENR,
Presidential Assistant on
Climate Change,
Presidential Assistant on
Environmental Protection
and the Vice-Chair of the
Climate Change
Commission

3. THE MINING STUDY GROUP’S
SPECIFIC TASKS:
1. Address issues and concerns in the mineral
sector-
 Lack of baseline data
 Policy inconsistencies between national
and local laws
 Governance and law enforcement
 Lack of total economic valuation
 Increasing government share in mining
revenues
 Adverse effects of environmental
degradation and climate change

4. THE MINING STUDY GROUP’S
SPECIFIC TASKS:
2. Provide a clear and detailed assessment of
the state of the mining industry, its impacts,
effects and potential for the future.
3. Consult with the concerned stakeholders
such as the mining industry, non-
government and civil society organizations,
and environmental groups, among others;
and
4. Formulate the mining industry policy by the
end of the year and present it to the
President’s approval.

5. CONSULTATIONS MADE:
1. Prior to first draft of the proposed EO
 November 14, 2011
@ DENR Social Hall
Sectors: (Morning Session)
 Mining industry groups
 Philippines Society of Mining Engineers
 Academe
(Afternoon Session)
 NCIP
 Non-governmental organizations/civil society groups

6. CONSULTATIONS MADE:
1. Prior to first draft of the proposed EO
 November 18, 2011
@ Mabini Hall, Office of the President
Sectors:
 Miners Association of the Philippines
 National Government Agencies
 November 21, 2011
@ Mabini Hall, Office of the President
Sectors:
 League of Provinces/Cities
 Small-scale mining groups

7. CONSULTATIONS MADE:
2. After the first draft of the proposed EO
 March 22, 2012
@ Tower Club, Makati
Sectors:
Makati Business Club
Mining industry groups
 April 26, 2012
@ Asian Institute of Management
Sectors:
Small-Scale miners groups

8. CONSULTATIONS MADE:
2. After the first draft of the proposed EO
 June 1, 2012
@ Mabini Hall, Malacañang
Sectors:
 Non-governmental organizations/civil society groups
 June 28, 2012
@ Mabini Hall, Malacañang
Sectors:
 League of Provinces

9. GENERAL MINING POLICY CONCERNS
1. Proper valuation and protection of the
ecology and bio-diversity.
2. Institutionalizing responsible mining, for
both large and small scale, with special
attention to environmental and ecosystem
impact, and the rights of the affected IPs and
communities.
3. Ensuring optimal and equitable benefits
from mining for local and national economic
and social growth.

10. GENERAL MINING POLICY CONCERNS
4. Providing for a good business environment
for investors.
5. Strengthening institutional and governance
capacities to ensure proper regulation and
maximum benefits.
6. Considering climate change and disaster
risk reduction as major concerns in mining.

11. POLICY FOCUS AREAS
Focus Area
No. 1: NO GO ZONES
 Address increasing concerns
on protecting prime
agricultural lands for food
security.
 Protect and promote eco-
tourism sites, which are major
contributors to growth.
 Ensure that critical and
sensitive ecosystems shall not
be adversely affected by

12. POLICY FOCUS AREAS
Focus Area No. 2: Mining in Palawan.
 Consider Palawan as the
country’s last frontier and the
eco-tourism capital of the
country.
 Come out with a clear stand
on mining in Palawan.

13. POLICY FOCUS AREAS
Focus Area
No. 3: Review of Performance of Mining
Operations
 Ensure compliance with law.
 Rationalize mineral development
and utilization in line with the
principle of sustainable
development.

14. POLICY FOCUS AREAS
Focus Area
No. 4: Auctioning of Areas with
Known Reserves.
 Allow the collection of
additional share for
Government through
negotiation.
 Weed out speculators and
provide for a level playing
field.

15. POLICY FOCUS AREAS
Focus Area
No. 5: Creation of an Inter-Agency Council
on Mining .
 Facilitate dialogue and
coordination among the growing
number of stakeholders in the
minerals industry.
 Review mining and related laws,
guidelines and agreements.

16. POLICY FOCUS AREAS
Focus Area
No. 6: Study of Equitable Benefit Sharing
Schemes.
 Look into terms for equitable
benefit sharing among the
government, LGUs concerned and
local communities, existing taxes
and fees and incentives.

17. POLICY FOCUS AREAS
Focus Area
No. 7: Imposition of Higher Regulatory
Fees and Charges.
 Adopt a fair and reasonable
increase of fees on mine wastes
and tailings, occupation and
processing, after due
consultation.

18. POLICY FOCUS AREAS
Focus Area
No. 8: Disposition of Abandoned Ore and
Mine Wastes and/or Mill Tailings as
Assets of the State.
 Generate additional Government
revenue.

19. POLICY FOCUS AREAS
Focus Area
No. 9: Development of a Downstream
Industry for the Mineral Sector.
 Formulate a national program for
the development of value-adding
activities for metallic ores.

20. POLICY FOCUS AREAS
Focus Area No. 10: Mineral Reservations.
 Establish more mineral
reservations for potential
strategic minerals.
 Support the development
of strategic industries .

21. POLICY FOCUS AREAS
Focus
Area No. 11: Government Capacity
Enhancement
 Strengthen capability of government
agencies concerned in carrying out their
mandates and functions.

22. POLICY FOCUS AREAS
Focus Area No. 12: Creation of a Task Force
Against Illegal Mining
 Institutionalize a stronger force of
Government to counter the growing illegal
mining operations.

23. MINING POLICY FOCUS
Focus Area
No. 13: Streamlining and Rationalizing Small-Scale
Mining Operations.
 Strictly implement provisions of RA No.
7076 and the EIS System.
 Totally prohibit use of mercury.
 Operationalize all Provincial and City
Mining Regulatory Boards.
 Provide training and capacity building for
small-scale miners.

24. POLICY FOCUS AREAS
Focus Area
No. 14: Demilitarization of Mining Areas.
 Strictly disallow
unreasonable deployment
of military and police
personnel in mining areas.

25. POLICY FOCUS AREAS
Focus Area
No. 15: Integration and Streamlining of
Procedures and Processes
Create a one-stop shop for
processing of mining applications, to
include other government agencies
concerned.
Establish central database system for
the minerals industry, to include from
Wealth Accounting and Valuation.
Integrate mapping system; unify
maps.

26. POLICY FOCUS AREAS
Focus Area
No. 16: Extractive Industries
Transparency Initiative
 Enrol in and implement the
EITI.

27. POLICY FOCUS AREAS
Focus Area
No. 17: Providing for Clear and
Responsive
Environmental Standards.
 Address and effectively
respond to environmental
incidents related to mining.

28. POLICY FOCUS AREAS
Focus Area
No. 18: Programmatic Environmental
Impact Assessment
 Instituting a programmatic
approach in the EIS system
involving mining projects.

29. EXPECTED OUTCOME
1. Lifting of the moratorium.
2. Resolving MRs and Appeals.
3. Address the issues and concerns
that hamper the growth of
responsible mining.

30. MARAMING SALAMAT!
www.mgb.gov.ph