MGB Memorandum Circular No. 2015-01

: The purpose is to provide the minimum criteria for the approval of Mining Project Feasibility Study (FS) and Project Description (PD), specifically the minimum mine life, hurdle rate, and internal rate of return for project feasibility studies.
: The minimum mine life should be at least seven (7) years for projects involving direct shipping ore mineral commodities such as nickel, chromite, iron, and manganese.
: The minimum mine life should be at least ten (10) years for projects involving non-direct shipping ore mineral commodities.
: The minimum mine life should be twice the payback period but must not be less than the specified minimum years depending on the type of mineral commodity involved.
: Payback period is defined as the year when the Net Cash Inflow from mining operations is equal to or greater than the Capital Expenditure.
: The minimum hurdle rate is 12% and the minimum internal rate of return is 15%.
: These requirements apply to mining projects for the approval of Declaration of Mining Feasibility and Applications for Mineral Agreements during the Development or Operating Period.
: The provisions of Department Administrative Order No. 2007-12, regarding the Revised Guidelines Establishing the Fiscal Regime of Financial or Technical Assistance Agreements (FTAA), shall apply.
: This Circular took effect immediately upon its adoption on 14 May 2015.
: It falls under DENR Memorandum Order No. 2004-10 dated August 31, 2004.