Offshore miners are urging the Department of Environment and Natural Resources (DENR) to grant a certification of non-objection for a memorandum of cooperation (MoC) between the Department of Trade and Industry and Japan’s Ministry of Economy, Trade and Industry (METI) of Japan.
Despite being requested to sign off on the memo in February of the previous year, the DENR has not taken any action on the pending matter, as disclosed by Offshore Mining Chamber of the Philippines, Inc. Chairman Michael Raymond Aragon in a report by with BusinessWorld.
Aragon stated that their request from DENR is simply a certification indicating no objection, ensuring that the DENR will not raise any objections if the DTI and METI proceed with signing a memorandum of cooperation in offshore mining.
He further added that once the MoC between DTI and METI is signed, Japan will allocate $1 billion in loans to Japanese offshore mining companies interested in operating in the Philippines.
The DENR has not provided a comment on the matter.
Under Republic Act No. 7942, or the Philippine Mining Act of 1995, it is mandated that mines in the country should have 60% Filipino ownership.
Aragon highlighted that foreign companies planning to engage in mining activities here will strive for extensive exposure in the market.
He further emphasized that “offshore mining operations are cleaner and greener compared to land-based mining.”
Members of OMCPI direct their efforts towards the extraction and processing of so-called “green minerals,” with the aim of facilitating the Philippines’ shift towards clean energy.
The Philippines boasts a wealth of mineral reserves, available not only on land but also in its waters. However, the main issue lies in the considerably higher operating costs, which are ten times the standard expenses and narrower profit margins, Aragon said.
Moreover, he said that domestic miners cannot raise the necessary investment, emphasizing the need for foreign partnerships.
