Revoke unused mining permits, DENR told

Senate President Francis “Chiz” G. Escudero has urged the Department of Environment and Natural Resources (DENR) to cancel and revoke all mining exploration permits that have remained unused.

In a press conference at the Senate on Monday, Escudero said that companies "have no business holding on to these permits" if they are unable to utilize the licenses granted under the Mining Act.

He pointed out that the failure of some mining firms to use their exploration permits contradicts the intent of Republic Act 7942, the Philippine Mining Act, which aims to promote and utilize the country’s mineral resources for national growth.

"The primary goal of the Mining Act is to promote rational exploration, development, utilization, and conservation of mineral resources to enhance national growth," Escudero said. "Exploratory permits were issued by the government to achieve this, but if these are not being used, then the companies holding them have no right to keep them."

"If a company fails to fulfill its obligations within the specified time frame, its exploration permit or mineral production sharing agreement (MPSA) should be revoked—regardless of who they are, their name, or the company they belong to,” he stressed.

Escudero pointed out that unused exploration permits could have been granted to capable and willing companies. Instead of allowing these permits to remain inactive, he suggested that the government put them up for bidding, enabling qualified mining firms to compete for the rights to explore and develop these areas.

“If a company cannot explore or process minerals, it should relinquish the permit, or the government should take it back," he said. "My recommendation is for the government to bid out these permits so they can generate revenue.”

Escudero has filed Senate Resolution 1310 to investigate the large number of inactive, non-operational, invalid, or unused exploration permits and mineral agreements, which he said contradict the declared policy of the Mining Act of 1995.

He also criticized companies and individuals that treat exploration permits as private property.

"Some apply for these permits, treat them as their own, sit on them for years, wait for their value to increase, and then sell them after 10 or 20 years," he said. "But these are not private properties—they belong to the state.”

Escudero emphasized that, under the Constitution, all mineral deposits within the country are considered state property. Permit holders, he explained, are merely contractors of the state who were granted temporary rights to explore and develop these resources.

During a recent public hearing of the Senate Committee on Environment, Natural Resources, and Climate Change, Escudero underscored that despite ranking fifth globally in mineral reserves and being the world’s second-largest producer of nickel ore, the Philippines has failed to maximize its mining potential.

According to the latest government data, the mining industry contributed 0.5 percent to the country’s gross domestic product in 2022 and 0.7 percent in 2023.

The DENR earlier reported that, as of February this year, a total of 152 exploration permits had been issued.

Of these, 45 are valid and existing, four are pending registration, 53 have expired but have pending renewal applications, 48 have expired with no renewal application, one was consolidated with another permit, and one has been canceled.

Escudero urged the DENR to issue an administrative order or memorandum circular to revoke these unused exploration permits.