Mining royalties EO will provide clarity
The system aims to cut the processing time for mining applications from six to seven years to just two years
The system aims to cut the processing time for mining applications from six to seven years to just two years
The Department of Environment and Natural Resources (DENR) is finalizing an Executive Order (EO) that will establish a clear policy on mining royalties. The EO will be submitted to Malacañang this month.
Environment Undersecretary for Integrated Sciences Carlos Primo David shared in an interview during a mining forum on Thursday that the EO aims to resolve legal ambiguities causing fears among mining investors.
“There is also the issue of conflicting interpretations of the law on mining royalties, which needs to be addressed through the EO,” David said.
“For any royalty, you’ll have to put a ceiling. If there’s no ceiling, it can be 1 percent, 2 percent, 10 percent, or up to 100 percent. That is something we have to address,” he explained, adding that while the law specifies a minimum royalty rate, it does not set a maximum.
No legislation substitute
David clarified that the EO will not replace existing legislation but will resolve conflicts with the Implementing Rules and Regulations (IRR) and other legal provisions, including those under the National Commission on Indigenous Peoples (NCIP).
The DENR, in coordination with the Office of the Secretary and the Department of Finance (DoF), is working on the EO draft, which will be set aside once Congress enacts a fiscal regime for the mining industry.
David, a licensed geologist and environmental science expert, also announced the DENR’s initiative to roll out a digital application processing system in three mining regions, including CARAGA and Davao.
The system aims to cut the processing time for mining applications from six to seven years to just two years.
Likewise, it will help identify bottlenecks in regional DENR offices, enabling the agency to address delays and streamline the mining permit approval process in the Philippines.
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