Amending EO No. 79 on Mining Reforms

The Executive Order is anchored on Section 1, Article XII of the 1987 Constitution, which directs goals for a more equitable distribution of opportunities, income, and wealth, sustained production for the benefit of the people, and expanding productivity to raise quality of life, especially for the underprivileged.
The Executive Order implements Section 2 of Republic Act No. 7942, which makes it the responsibility of the State to promote rational exploration, development, utilization, and conservation of mineral resources in public and private lands within the national territory and the exclusive economic zone, through government and private sector efforts that effectively safeguard the environment and protect the rights of affected communities.
The Executive Order cites Section 4 of Executive Order No. 79, s. 2012, which previously prohibited the grant of mineral agreements until new legislation rationalizing existing revenue sharing schemes and mechanisms took effect.
The Executive Order recognizes that Section 48 of Republic Act No. 10963 (the Tax Reform for Acceleration and Inclusion (TRAIN) Act) doubled the rate of excise tax on minerals, mineral products, and quarry resources from 2% to 4%.
The Executive Order relies on Section 17, Article VII of the 1987 Constitution, which gives the President control over executive departments, bureaus, and offices and requires faithful execution of laws.

The Executive Order lifts the moratorium on mineral agreements previously imposed under Section 4 of Executive Order No. 79 (Section 1).
Section 1 amends Section 4 of Executive Order No. 79 by replacing it with a revised Section 4: Grant of Mineral Agreements.
The Government may enter into new mineral agreements, subject to compliance with Republic Act No. 7942, and other applicable laws, rules, and regulations (Section 4, as amended).
The DENR may continue to grant and issue Exploration Permits under existing laws, rules, and guidelines (Section 4, as amended).
Grantees of exploration permits are entitled to rights under applicable laws, rules, and guidelines over the approved exploration area and are granted a right of first option to develop and utilize minerals in their respective exploration area upon approval of the declaration of mining project feasibility (Section 4, as amended).

The DENR must formulate the terms and conditions in new mineral agreements to maximize government revenues and share from production (Section 4, as amended).
New mineral agreements may include the possibility of declaring areas as mineral reservations to obtain appropriate royalties, consistent with existing laws, rules, and regulations (Section 4, as amended).
The DENR and the Department of Finance must undertake measures to rationalize existing revenue sharing schemes and mechanisms (Section 4, as amended).

The DENR must undertake a review of existing mining contracts and agreements for possible renegotiation of terms and conditions (Section 4, as amended).
Renegotiation must be mutually acceptable to the Government and the mining contractor in all cases (Section 4, as amended).

The DENR must strictly implement mines safety and environmental policies (Section 2).
The DENR must ensure strict implementation of and compliance with the recommended measures of the Mining Industry Coordinating Council involving all mining operations (Section 2).
Compliance must extend to all other pertinent laws, rules, and regulations, and to the terms and conditions of the mineral agreements (Section 2).

If any provision of the Executive Order is declared invalid or unconstitutional, the remaining provisions remain valid and subsisting (Section 3).

All issuances, rules, and regulations, or parts thereof, that are contrary to or inconsistent with the Executive Order are revoked, modified, or amended accordingly (Section 4).

The Executive Order takes effect immediately upon its publication in a newspaper of general circulation (Section 5).