BusinessMirror Editorial | March 6, 2025

The Philippines, a nation blessed with abundant mineral resources, is significantly underperforming in its mining sector. Senate President Francis Escudero’s recent inquiry into inactive and unused exploration permits (EPs) and mineral production sharing agreements highlights a critical impediment to the country’s economic progress. The persistence of these “dead” permits directly contradicts the spirit and intent of Republic Act 7942, or the Philippine Mining Act of 1995, and deprives the nation of potential economic benefits. (Read the BusinessMirror story: “DENR hit for tolerating idle Eps, MPSAs,” March 3, 2025).

The Philippine Mining Act of 1995, which aims to promote the sustainable development of the country’s mineral resources, is being undermined by the lack of effective management and utilization of mining areas. It is imperative that the government takes immediate action to address this issue and ensure that the mining industry is operating in a manner that maximizes its potential benefits to the economy and the people.

As the Senate president pointed out, the Philippines ranks among the world’s top nations in terms of mineral wealth, holding substantial reserves of gold, copper, nickel, and chromite. Yet, in 2024, the mining and quarrying sector contributed a meager 0.71 percent to the country’s GDP and employed a mere 0.54 percent of the workforce. This stark contrast between potential and reality demands immediate and decisive action.

The core of the problem lies in the fact that inactive, non-operational, or invalid EPs and MPSAs are essentially blocking progress. They prevent the government from granting permits to companies that are ready and able to invest in exploration and extraction. These dormant permits also deter other entities, possessing both the financial resources and technical expertise, from pursuing new ventures in areas locked up by these non-performing agreements.

Senator Escudero’s Senate Resolution 1310 rightly identifies this issue as a major obstacle to the effective management and utilization of the country’s mineral resources. His call for a thorough review of existing laws and regulations is timely and necessary. The Senate inquiry must identify the specific bottlenecks that hinder continuous mining operations and determine what legislative changes are needed to unlock the sector’s potential.

It is crucial that the government, through the Mines and Geosciences Bureau, undertakes a comprehensive audit of all existing EPs and MPSAs. Permits that have remained inactive for an unreasonable period, or those held by companies lacking the capacity to develop them, should be revoked. This would free up valuable areas for new investments and create opportunities for companies that can contribute meaningfully to the economy.

Furthermore, the government must streamline the permitting process to reduce bureaucratic delays and ensure transparency. This will encourage responsible mining practices and attract both domestic and foreign investment.

The Philippines cannot afford to let its mineral wealth remain untapped. By clearing the deadwood of inactive permits and fostering a more efficient and transparent regulatory environment, the country can unlock the vast potential of its mining sector, generating jobs, boosting economic growth, and improving the lives of Filipino citizens.

Source: Business Mirror

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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