Question & AnswerQ&A (EXECUTIVE ORDER NO. 130)
The main purpose of Executive Order No. 130, s. 2021 is to amend Section 4 of Executive Order No. 79, s. 2012, lifting the moratorium on the grant of mineral agreements, institutionalizing reforms in the Philippine mining sector, and providing policies and guidelines to ensure environmental protection and responsible mining.
EO No. 130 cites Section 1, Article XII and Section 17, Article VII of the 1987 Constitution as basis. Section 1, Article XII states goals for the national economy including equitable distribution of wealth and sustained increase of goods and services; Section 17, Article VII grants the President control over executive departments and ensures faithful execution of laws.
Republic Act No. 7942 or the Philippine Mining Act of 1995 governs the rational exploration, development, utilization, and conservation of mineral resources in the Philippines.
EO No. 130 amended Section 4 of Executive Order No. 79, which originally prohibited the grant of mineral agreements until a new revenue sharing legislation took effect. The amendment lifts the moratorium and allows the government to enter into new mineral agreements subject to compliance with applicable laws.
Exploration Permits are rights issued by the DENR under existing laws, rules, and guidelines that allow grantees to explore specific approved mineral areas, with the right of first option to develop and utilize minerals upon the approval of mining project feasibility.
The DENR is directed to review existing mining contracts and agreements for possible renegotiation of their terms and conditions to maximize government revenues and shares, ensuring mutual acceptance between the government and mining contractors.
The DENR and Department of Finance are tasked to undertake appropriate measures to rationalize existing revenue sharing schemes and mechanisms in mining contracts and agreements.
The DENR is mandated to strictly implement mines safety and environmental policies and ensure compliance with measures recommended by the Mining Industry Coordinating Council, pertinent laws, rules, regulations, and conditions of mineral agreements.
Yes, the EO authorizes the DENR to possibly declare certain areas as mineral reservations to obtain appropriate royalties in accordance with existing laws, rules, and regulations.
If any provision of EO No. 130 is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting (Separability Clause).
EO No. 130 took effect immediately upon its publication in a newspaper of general circulation.