The government has issued its first mineral production sharing agreement (MPSA) since the lifting of the moratorium on new mineral deals.
The Department of Environment and Natural Resources-Mines and Geosciences Bureau said on Friday that it granted the MPSA to Consunji-led Semirara Mining and Power Corporation (SMPC) on March 10. SMPC, a listed firm, disclosed the granting to the Philippine Stock Exchange on Monday.
MPSA No. 352-2022-VI covers the Hamalian Limestone Project, a 3,807-hectare contract area in Semirara Island, Caluya, Antique. The permit allows SMPC the exclusive right to immediately undertake mining operations within the contract for a period of 25 years, and is renewable for another term.
Back in April 2021, Pres. Rodrigo Duterte lifted the nine-year moratorium on new MPSAs through Executive Order (EO) No. 130. This allowed again the government to enter into new agreements under Republic Act 7942 or the Philippine Mining Act of 1995.
However, the implementing rules and regulations were only issued in August by former Environment Sec. Roy Cimatu, who went on to lift the government’s open-pit mining ban before Christmas.
The moratorium on MPSAs was first implemented in 2012 through EO 79 of the late Pres. Benigno Aquino III.
Last year, the country produced Php160.9 billion worth of metallic minerals. A total of 12 new metallic mines are set to begin commercial operations this year.
