President Rodrigo Roa Duterte has lifted the nine-year ban on granting new mining agreements in order to spur economic growth and support projects and programs of the government.

In an Executive Order (EO) signed April 14, Duterte amended Section 4 of EO No. 79, s. 2012 that prohibits the grant of mineral agreements “until a new legislation rationalizing existing revenue sharing schemes and mechanisms shall have taken effect”.

The EO No. 130 provides that the government “may enter into new mineral agreements, subject to compliance with the Philippine Mining Act of 1995 and other applicable laws, rules, and regulations.”

The ban was imposed by former President Benigno Aquino III in 2012.

The new EO orders the Department of Environment and Natural Resources (DENR) to “formulate the terms and conditions in the new mineral agreements that will maximize government revenues and share from production, including the possibility of declaring these areas as mineral reservations to obtain appropriate royalties, in accordance with existing laws, rules, and regulations.”

“The DENR may continue to grant and issue Exploration Permits under existing laws, rules, and guidelines. The grantees of such permits shall have the rights under the said laws, rules, and guidelines over the approved exploration area and shall be given the right of first option to develop and utilize the minerals in their respective exploration area upon the approval of the declaration of mining project feasibility,” the EO stated.

The DENR and the Department of Finance, meanwhile, are directed “to undertake appropriate measures to rationalize existing revenue sharing schemes and mechanisms.”

EO 130 also argued that new mining agreements can stir economic growth needed to support government programs such as the Build, Build, Build and the Balik Probinsya, Bagong Pag-Asa Program.

“The mining industry can support various government projects, such as the Build, Build, Build Program, by providing raw materials for the construction and development of other industries; and the Balik Probinsya, Bagong Pag-Asa Program, by increasing employment opportunities in remote, rural areas where there are mining activities thereby stimulating countryside development,” the EO read.

“It shall ensure strict implementation of and compliance with the recommended measures of the Mining Industry Coordinating Council involving all mining operations, including other pertinent laws, rules, and regulations, and the terms and conditions of the mineral agreements,” it added.

The government is hopeful that the lifting of the ban will result in an increase in employment opportunities in remote rural areas where there are mining activities “thereby stimulating countryside development.”

According to the new EO, the country has tapped less than 5 percent of its mineral resources endowment to date.