Ban on open pit mines lifted

The government has lifted a four-year ban on new open-pit mines, according to the chief of the Department of Environment and Natural Resources-Mines and Geosciences Bureau (DENR-MGB).

DENR-MGB Director Wilfredo Moncano said that Environment Sec. Roy Cimatu signed Department Administrative Order No. 2021-40 on December 23, which reverses the ban implemented by his predecessor, the late Gina Lopez.

Moncano said the government offered the mining industry as a potential contributor to economic recovery. The pronouncement was made amid efforts to return things to normal following the height of the COVID-19 pandemic and the onslaught of Typhoon Odette.

The official specified that the resumption of open-pit mining would help pay the country’s loans, especially those stemming from the pandemic.

Moncano said around nine prospective mining ventures are expected to benefit from the order and that the government could generate up to Php80 billion in taxes and royalties yearly once commercial operations begin.

Back in April, Pres. Rodrigo Duterte, who once threatened to completely shut down the mining sector, issued Executive Order No. 130 lifting the ban on new mining deals implemented in 2012 by the late Pres. Benigno Aquino III.

Open pit mining directly extracts minerals on the ground, unlike other methods that require tunneling or underground mining.

The Philippines is among the world’s biggest suppliers of nickel ore. It is also rich in copper and gold. However, the government says around 95% of the country’s mineral resources remain untapped.

Cimatu, a former chief-of-staff of the Armed Forces of the Philippines, said he would support the mining ban upon his confirmation by the Commission on Appointments in late 2017.