The Philippine Government has removed a nine-year moratorium on new mineral agreements in the country to increase revenues.

This follows the signing of the executive order (EO) No.130 by Filipino President Rodrigo Duterte. It amends Section 4 of EO No.79, s. 2012 that was signed by President Benigno Aquino III.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The new EO enables the government to make agreements for new mining projects, subject to compliance with local laws.

The order also allows for undertaking reviews of existing mining contracts for potential renegotiation of the terms and signing of agreements.

The new EO also directs the Department of Environment and Natural Resources (DENR) to ‘formulate the terms and conditions in the new mineral agreements that will maximize government revenues and share from production, including the possibility of declaring these areas as mineral reservations to obtain appropriate royalties, in accordance with existing laws, rules, and regulations’.

The EO also says: “The DENR shall likewise undertake a review of existing mining contacts and agreements for possible renegotiation of the terms and conditions of the same, which shall in all cases be mutually acceptable to the government and the mining contractor.”

The move by the government, however, raised concerns among anti-mining activists.

Commenting on the decision, environmental advocacy organisation Alyansa Tigil Mina (Stop Mining Alliance) said in a statement: “In the middle of a climate crisis and this pandemic, corporate interests and profit have won again over the welfare and benefits of the many.”

In 2017, Duterte signed the Tax Reform for Acceleration and Inclusive (TRAIN) Act. Section 48 of the law.

This doubled the excise tax rate 2% to 4% on minerals, mineral products, and quarry resources, reported Philippine News Agency.