MINING STUDY GROUP

Created per instruction of the President, thru the Memorandum dated October 26, 2011 of the Executive Secretary T k d to finalize the Tasked t fi li th mining industry policies of the Administration Composed of the Secretaries of the DENR Presidential DENR, Assistant on Climate Change, Presidential Assistant on A i Environmental Protection and the ViceChair of the Climate Change Commission

THE MINING STUDY GROUPS SPECIFIC TASKS:

1. Address issues and concerns in the mineral sector Lack of baseline data Policy inconsistencies between national and local laws Governance and law enforcement Lack of total economic valuation c eas g go e e t s ae Increasing government share in mining revenues Adverse effects of environmental degradation and climate change

THE MINING STUDY GROUPS SPECIFIC TASKS:

2. 2 Provide a clear and detailed assessment of the state of the mining industry, its impacts, impacts effects and potential for the future; 3. 3 Consult with the concerned stakeholders such as the mining industry, nong government and civil society y organizations, and environmental groups, among others; and 4. Formulate the mining industry policy by the end of the year and present it to the Presidents approval.

DIRECTIVES

DIRECTIVES..

DIRECTIVES FOR DENR

SPECIFIC ACTIONS
Strictly and consistently enforce environmental laws, laws rules and regulations Properly account for, and make public the Social Development and Management Programs (SDMPs) and Environmental Protection and Enhancement Program (EPEPs) g ( ) of mining companies/operations Include geo-hazard maps/multi-hazard maps for the country and forecast of climate change p g g g impacts in considering go and no-go areas for mining

Implementing Agency/ies A /i
DENR

DENR-MGB

DENR-MGB, Climate Change Commission

DIRECTIVES FOR DENR. . .

SPECIFIC ACTIONS
Include in the Final Mine Rehabilitation and Decommissioning Plan (FMRDP) the determination of the final land use of the area once mining has been completed and the provision of funds by the mining companies for the said development Ensure t e co duct o social p epa at o for su e the conduct of soc a preparation o IPs who will be affected by mining Desist from processing mining applications in Palawan and enhance the strict implementation and periodic review of the Strategic Environmental Plan for Palawan with the Palawan Council for Sustainable Development (PCSD)

Implementing Agency/ies
DENR-MGB, G , DILG, AND Concerned LGUs , , NCIP, DSWD, DENR-MGB

DENR_MGB, PCSD

DIRECTIVES FOR DENR. . .

SPECIFIC ACTIONS
Increase the amounts of mine wastes and tailings and occupation fees, and impose t ili d ti f di processing fees for all mining applications Provide benchmarks for the valuation of minerals based on prevailing international minerals market prices Provide guidelines for entering into Joint Venture Agreements (JVA) and Co-Production Agreements (CPA) and encourage and promote the use of the same.

Implementing Agency/ies
DENR-MGB DENR MGB

DENR-MGB

DENR-MGB

DIRECTIVES FOR DTI & DENR

ECONOMIC MEASURES
SPECIFIC ACTIONS Demand operational and financial reports from the mining Contractors; both large and smallscale (cooperatives and ( p associations) at all stages of the mining cycle Conduct verification at the national, regional and local levels of taxes and fees payable to Government, and monitor all existing and possible entry and exit points of minerals in the country
Implementing p g Agency/ies Implementation p Time Frame

New rules to be issued within 3 DENR-MGB months from the date of this directive

Lead: New rules/ DENR-MGB guidelines to be issued within 6 i d ithi months from the Partners: DOF, DOST, date of this DTI, BOC directive

DIRECTIVES FOR DTI & DENR..

ECONOMIC MEASURES
SPECIFIC ACTIONS
Implementing p g Agency/ies Implementation p Time Frame

Ensure inter-agency coordination New rules to be relative to Government share in issued within 6 mining revenues; and hasten LGU DENR-MGB; months from the access to their share in mining DOF; DBM date of this revenues (i (i.e., similar to PEZA i il t directive share) Update, with the participation of stakeholders, the mineral Lead: commodity profile, conduct Study to be DENR-MGB studies and build a database on completed within p new markets, products and 1 year from the Partners: available technologies towards the date of this DOST, DTI, directive development of downstream O DOF, NEDA industries and value-adding activities

DIRECTIVES FOR DTI & DENR..

ECONOMIC MEASURES
SPECIFIC ACTIONS Conduct a study on existing mechanisms for benefit sharing, possible minimum terms for equitable benefit sharing, review i bl b fi h i i of existing taxes and fees being imposed, and incentives received by mining companies Study the terms and conditions of y service contracts entered into by the Department of Energy (DOE) for energy resources for possible application for mining agreements
Implementing Agency/ies Implementation Time Frame

Study to be completed within 6 months f h from Partners: the date of this DENR-MGB, Directive NEDA Lead: Study to be y DENR-MGB DENR MGB completed within 6 months from Partners: the date of this O DOE, Directive DOF, DTI

Lead: DOF, DTI

DIRECTIVES FOR DTI & DENR..

ECONOMIC MEASURES
SPECIFIC ACTIONS
Implementing Agency/ies Implementation Time Frame

Study the imposition of higher export fees for metallic and nonp metallic minerals in the country

Lead: New rules/ DENR-MGB guidelines to be issued within Partners: 6 months from DTI, DOF, the date of this NEDA, BOC Directive

DIRECTIVES FOR DTI & DENR..

ENVIRONMENTAL MEASURES
SPECIFIC ACTIONS Explore the possibility of compulsory and mandatory Insurance coverage for the affected environs & communities, as well as perpetual liability for the maintenance & rehabilitation of post-mining sites (i.e; setting up trust funds or heritage funds with specified uses) Study the possibility of adopting the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) of the USA commonly known as the Super Fund
Implementing Agency/ies Implementation Time Frame

Study to be Completed DENR-MGB, DENR MGB, within 6 DOF, DILG months from the date of this directive

DIRECTIVES FOR DTI & DENR..

ENVIRONMENTAL MEASURES
SPECIFIC ACTIONS Consider the Impact of the New Rules of Procedure for Environmental Cases for mining Operations C d tR Conduct Resource A Accounting ( ti (or Full Cost-Benefit Analysis) in line with the Wealth Accounting and Valuation of Ecosystem Services (WAVES) Project and the National g Climate Change Action Plan (NCCAP)
Implementing Agency/ies Implementation Time Frame

DENR MGB DENR-MGB DOJ, OSG, and other concerned agencies

Study to be completed within 3 months from the date of this Directive

Mechanisms for M h i f implementation DENR-MGB, to be Climate promulgated Change within 3 months Commission from the date of this directive

DIRECTIVES FOR DTI & DENR..

ENVIRONMENTAL MEASURES
SPECIFIC ACTIONS Determine legislative measures that ill th t will ensure efficient and ffi i t d effective management of the mining sector (i.e., increasing penalties for mining-related offenses; crafting a definition of medium-scale mining; identifying provisions in current laws for amendment; and strengthening regulatory rules over traders and middlemen)
Implementing Agency/ies Implementation Time Frame

Study to be completed within DENR-MGB 6 months from the date of this Directive