Minimum Criteria for Mining Project Feasibility

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MGB Memorandum Circular No. 2015-01: Minimum Criteria for Mining Project Feasibility

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Title Supreme Court: Minimum Criteria for Mining Project Feasibility

Law: Mgb Memorandum Circular No. 2015-01

Decision Date: May 14, 2015

MGB Memorandum Circular No. 2015-01 establishes minimum mine life requirements of seven years for direct shipping ore and ten years for other mineral projects, alongside a hurdle rate of 12% and an internal rate of return of 15% for mining project feasibility studies.

project feasibility

A

Definition of Payback Period

Payback period is defined as the year when the net cash inflows from mining operations become equal to or exceed the initial capital expenditure.

Application on Financial or Technical Assistance Agreements (FTAAs)

For projects under a Financial or Technical Assistance Agreement, the provisions of Department Administrative Order No. 2007-12 apply.
These provisions pertain to the Revised Guidelines Establishing the Fiscal Regime of FTAAs.

Minimum Investment Return Criteria

Minimum hurdle rate for project feasibility study approval is set at 12%.
Minimum internal rate of return required is set at 15%.

Effectivity

The memorandum circular takes effect immediately upon issuance on May 14, 2015.

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