Senate President Francis “Chiz” G. Escudero has called on the Department of Environment and Natural Resources (DENR) to cancel and recall all unused mining exploration permits.
In a press conference at the Senate on Monday, Escudero lamented that companies “have no business holding on to these permits” if they are unable to utilize the licenses granted under the Mining Act.
Escudero pointed out that the failure of some mining firms to use their exploration permits goes against the intent of Republic Act No. 7942, or the Philippine Mining Act, which aims to promote and harness the country’s mineral resources for national growth.
He emphasized that the primary goal of the Mining Act is to foster the rational exploration, development, utilization, and conservation of mineral resources to enhance national growth.
“Exploratory permits were issued by government to achieve this goal, but if these are not being utilized by the mining firms, then they have no business holding on to these permits,” he said.
“Kung hindi ka tumupad sa napagkasunduan na dapat gawin sa loob ng takdang panahon, dapat tanggalin o kanselahin na ang exploration permit o yung MPSA (mineral production sharing agreement) — sino ka man, ano man pangalan o apelyido mo o kompanyang kinabibilangan mo (If you fail to fulfill the agreement that should be carried out within the specified time frame, the exploration permit or the MPSA (mineral production sharing agreement) should be revoked or canceled — regardless of who you are, what your name or surname is, or the company you belong to),” he added.
Escudero argued that unused exploration permits could be granted to mining companies capable and willing to utilize them. Instead of allowing these permits to remain inactive, Escudero proposed that the government put them up for bidding, allowing qualified companies to compete for the rights to explore and potentially develop these areas.
“Hindi kayang mag-explore, hindi niya kayang i-process ang minerals, bitawan niya o bawiin sa kanya ng gobyerno, at ang panukala ko … i-bid out ng gobyerno ang permits para kumita pa (If they cannot explore, they cannot process the minerals, they should let go of it or the government should take it back from them, and my proposal is… the government should bid out the permits to generate income),” he said.
Escudero filed Senate Resolution No. 1310 to investigate the large number of inactive, non-operational, invalid, or unused exploration permits and mineral agreements that contradict the declared policy of the Mining Act of 1995.
He also expressed concern that some companies or individuals treat exploration permits or mining rights as if they were private property.
“Nag-apply, tinatrato bilang pribadong pagmamay-ari nila, uupuan lang, hihintayin tumaas, ibebenta sa kung sino talaga interesado pagdating ng 10, 20 taon. Hindi nila pribadong pagmamay-ari ‘yan (They apply for it, treat it as their private property, just hold on to it, wait for its value to rise, and then sell it to someone who is truly interested after 10 or 20 years. That is not their private property). That is owned by the State,” he stressed.
Escudero clarified that all mineral deposits within the country are considered the property of the State, not private individuals or companies, as stipulated in the Philippine Constitution.
He further explained that any exploration permit or mineral production sharing agreement grantee or licensee is merely a contractor of the State over an asset owned by the State.
In a recent public hearing of the Committee on Environment, Natural Resources, and Climate Change, Escudero highlighted that despite ranking 5th in global mineral reserves and being the world’s second-largest producer of nickel ore, the Philippines has failed to fully exploit its resources for growth and prosperity.
The latest government data shows the mining industry’s contribution to the gross domestic product was 0.5 percent in 2022 and 0.7 percent in 2023.
The DENR reported that, as of February this year, a total of 152 exploration permits have been issued. Of these, 45 are valid and existing, four are for registration, 53 are expired with pending renewal applications, 48 have expired with no renewal application, while one was consolidated with another exploration permit, and one has been canceled.
Escudero said the DENR can issue an administrative order or memorandum circular to revoke or recall the unused exploration permits.