The Department of Environment and Natural Resources (DENR) has given its nod to the mineral production sharing agreement (MPSA) for the USD 200-million gold and copper mining venture of Makilala Mining Company (MMCI), aiming to boost economic growth in both the municipality and the entire province.
In a report by the Manila Times, Mines and Geosciences Bureau Cordillera’s (MGB-CAR) Regional Director Engineer Fay Apil said that the MPSA issuance permits MMCI to commence mining development over an area spanning more than 2,500 hectares, alongside exploration within an additional 900-plus hectares covered by the exploration permit.
Apil emphasized that the initial phase of mining development is expected to generate job opportunities for qualified locals and provide supplementary livelihood sources for communities in the project’s vicinity.
She pointed out the obligation for MMCI to kickstart mine site development within a two-year timeframe from MPSA issuance, potentially progressing to full-scale mining operations.
Apil highlighted the swift approval of MMCI’s MPSA as indicative of the government’s acknowledgment of the mining sector’s significance as a primary economic catalyst both locally and nationally.
Regarding the approval process, Apil clarified that the MGB-CAR handled the company’s application, ensuring the adherence to relevant guidelines, laws, and the requisite free and prior informed consent (FPIC) overseen by the National Commission on Indigenous Peoples (NCIP) before endorsing it to the DENR secretary for final approval.
With the MPSA in place, the company is mandated to promptly initiate various work programs contributing to the local economy and benefiting host and neighboring communities and other stakeholders within the mine site.
The MPSA grants MMCI rights to conduct mining operations within the designated area, also entails MMCI’s provision of necessary financing, technology, management, and personnel.
In accordance with the Philippine Mining Act (Republic Act 7942), host communities are entitled to a 40% share of national wealth taxes paid by operating mines, which will be equitably distributed among host villages, municipalities, and provinces.
