Gov’t reviews application of 68 cement companies

MANILA, Philippines - The government is now reviewing the applications of 68 cement companies for the expansion of limestone quarry areas in accordance to a provision in the new mining policy imposing a moratorium on the expansion of existing contract areas.

As provided for in Executive Order No. 79, also known as the new mining policy, no new mineral agreements shall be entered into until a law rationalizing the existing revenue sharing scheme between the government and mining companies has been passed.

Industry subsectors that produce commodities that are important to government projects and economic activities would be exempted from the moratorium as recommended by the Economic Development Cluster which comprises half of the Mining Industry Coordinating Council (MICC). In the case of cement companies, this covers mostly public infrastructure.

The cluster is chaired by Finance Secretary Cesar Purisima.

Section 7 of the policy states: “No new mineral agreements shall be entered into until a legislation rationalizing existing revenue sharing schemes and mechanisms shall have taken effect: Provided, that no expansion of existing contract areas shall be allowed by the DENR Secretary unless there is imminent and/or threatened economic disruption, such as a shortage of critical commodities and raw materials, that could adversely affect priority government projects and/or economic activities as determined by the Economic Development Cabinet Cluster: provided, further that the National Government-Owned Mining Assets may be subject to the Financial or Technical Assistance Agreement (FTAA) in accordance with Section 9 of theseimplementing rules and regulations.” 

However, the government will begin accepting applications for exploration permits after the completion of the mapping of the so-called “no-go zones” or the areas where mining activities would be prohibited or restricted.

The MICC technical working group on the environment is expected to complete the mapping of the no-go zones in February.

Mines and Geosciences Bureau (MGB) director Leo Jasareno said the bureau submitted in December the application of 68 cement companies to the Economic Development Cluster of the MICC for review.

”The mining policy allows the expansion of certain areas recommended the Economic Development Cluster...We are just waiting for the decision of the cluster which among those applications would be allowed to expand their areas,” he said. “Whatever is endorsed by the cluster, we will process the expansion of their MPSA areas.”