Higher DENR mining fees to weed out speculators

MANILA, Philippines - The increase in  filing fees for all mining application as well as in capital requirements for mining projects is expected to help “weed out” speculators who use mining applications and permits to influence stock prices, according to the Mines and Geosciences Bureau (MGB).

The Department of Environment and Natural Resources (DENR) recently published notices for the increase in  filing fees for all mining applications as well as capital requirements for applicants in accordance with Executive Order No. 70, also known as the new mining policy.

MGB Director Jasareno said that aside from raising the government revenues received from mining applications, higher filing fees and capitalization requirements would prevent the influx of speculators who hold on to their permits but do not develop their respective tenements. 

“This will also be a tool to weed out speculators. Before, one can get hold of a mining application for a small amount. Now they will think twice because they will have to shell out more,” said Jasareno, adding “What we want to be retained in the mining industry are shares investors.”

The DENR has raised  the filing fee for applications for exploration permits (EP) has raised  to P300 per hectare, but not less than P200, 000 per application from P60 per hectare but not less than P50,000 per application.

Filing fees for the application for Mineral Processing and Sharing Agreement (MPSA) has been increased to  P300 per hectare but not less than P300,000 per application from the previously imposed P60 per hectare but not less than P50,000 per application.

The fees for the application for Financial and Technical Assistance Agreement (FTAA) is likewise increased to P300 per hectare, but not less than P500,000 per application from P60 per hectare but not less than P100,000 per application.

The DENR is also raising the minimum capital requirements for applicants for EP, MPSA, and FTAA.

The minimum authorized paid up capital for mining application is now set at  P100 million from P10 million. The minimum paid-up capital is now set at P6.25 million from P2.5 million.

The paid up capital for FTAA is now required to be at  P500 million upon grant of the agreement by the President and prior to its registration with the MGB.

The new regulation would be effective in the first half of March in preparation for the lifting of the moratorium on the acceptance of new permits.