QuestionsQuestions (EXECUTIVE ORDER NO. 130)
EO No. 130 amends Section 4 of EO No. 79, lifting the moratorium on mineral agreements and updating the rules on the grant of mineral agreements, while emphasizing strict implementation of mines safety and environmental policies.
Section 4 of EO No. 79 prohibited the grant of mineral agreements (i.e., imposed a moratorium). EO No. 130 lifts that moratorium and amends Section 4 to allow the Government to enter into new mineral agreements subject to applicable laws and rules.
They have rights under the applicable laws, rules, and guidelines over the approved exploration area and are given the right of first option to develop and utilize the minerals upon approval of the declaration of mining project feasibility.
The DENR must formulate the terms and conditions in new mineral agreements to maximize government revenues and share from production, including the possibility of declaring areas as mineral reservations to obtain appropriate royalties.
It provides that the DENR may include the possibility of declaring exploration areas as mineral reservations to obtain appropriate royalties, in accordance with existing laws, rules, and regulations.
The DENR and the Department of Finance must undertake measures to review existing mining contracts and agreements for possible renegotiation of the terms and conditions; renegotiated terms must be mutually acceptable to the government and the mining contractor.
EO No. 130 requires the DENR to strictly implement mines safety and environmental policies and ensure strict compliance with recommended measures of the Mining Industry Coordinating Council, including other applicable laws, rules, regulations, and the terms and conditions of mineral agreements.
It cites (1) Article XII, Sections 1 and 2, relating to national economic goals and rational exploration/development of mineral resources safeguarding the environment and protecting community rights; and (2) Article VII, Section 17, establishing presidential control over executive departments to ensure faithful execution of laws.
Section 48 of RA No. 10963 (TRAIN Act) is referenced; it doubled the excise tax rate on minerals, mineral products, and quarry resources from 2% to 4%.
It relies on RA No. 7942 (Philippine Mining Act of 1995), which provides that it is the responsibility of the State to promote rational exploration, development, utilization, and conservation of mineral resources in public and private lands and within the EEZ, while effectively safeguarding the environment and protecting rights of affected communities.
It directs the DENR and the Department of Finance to undertake appropriate measures to rationalize existing revenue sharing schemes and mechanisms.
The right of first option to develop and utilize minerals is granted upon approval of the declaration of mining project feasibility.
If any provision is declared invalid or unconstitutional, the other provisions remain valid and subsisting.
All issuances, rules, and regulations or parts thereof that are contrary to or inconsistent with EO No. 130 are revoked, modified, or amended accordingly.
It takes effect immediately upon publication in a newspaper of general circulation.
While it lifts the moratorium to enable new mineral agreements and potential economic benefits, it simultaneously requires strict DENR enforcement of mines safety and environmental policies and compliance with relevant regulations and agreement terms.