Tuesday, April 16, 2013

Mining 13: Timeline of Policies

This afternoon, there will be an oral argument and debates at the Supreme Court in Baguio City. Two petitions by Risa Hontiveros, et al challenge the constitutionality (for the second time) of RA 7942 or the Philippine Mining Act of 1995, particularly Sec. 80 and 81 of the law.

In the SC website, it says,
Petitioners argue that: (1) section 811 of the Mining Act of 1995 is unconstitutional because: (1) it violated the rule on delegated legislation; (2) the Secretary of the DENR (public respondent) acted with grave abuse of discretion resulting to lack or excess of jurisdiction in the issuance of DAO 07-12; and (3) both section 81 of the Mining Act and DAO 07-12 are unconstitutional because they allow inequitable sharing of wealth contrary to Article XII, Section 1, par. 1 and Section 2, par. 1 and 4 of the 1987 Constitution.

Will watch the results of the debate later today and tomorrow.

Meanwhile, below is a short timeline of various policies governing the mining industry in the country. I saw a rappler report on timeline mining. It was highly incomplete though as there are many other DENR Administrative Orders (DAO) and Department Memorandum Circulars (DMCs) affecting the industry. I skipped several DAOs and DMCs in producing this list.

Presidential Decree 1899, January 23, 1984
Defining small-scale mining as "artisanal", thus disallowing sophisticated equipment, involving minimal investments in infrastructure and processing plants, and relies on manual labour.

Republic Act 7076, June 27, 1991
People’s Small Scale Mining Act of 1991, "Minahang Bayan." Forms the Provincial/City Mining Regulatory Board that supervises small scale mining operations alongside the chiefs of the Environment Department and Mining Bureau.

Department Administrative Order (DAO) 1991-66, December 27, 1991 
Declaring certain parcels of Agusan-Davao-Surigao Forest Reserve as non-forest land open for small-scale mining. Parts of Diwalwal gold-rush area in Davao region was open to small-scale mining.

DAO 1992-34, July 14, 1992
Implementing Rules and Regulations (IRR) of RA 7076. 

RA 7942, “Philippine Mining Act of 1995”,  March 3, 1995 
Liberalizes foreign investments in the sector, involves the Local Government and Indigenous Cultural Communities in minerals exploration. Followed by a Financial and Technical Assistance Agreement (FTAA) with foreign-owned Western Mining Corporation Philippines (Tampakan mine).

DAO 1995-23, August 15, 1995
Implementing Rules and Regulations (IRR) of RA 7942. 

Jun. 19, 1995 
La Bugal-B'laan Tribal Association questioned the Constitutionality of RA 7942 and its IRR, particularly the FTAA, which allows foreign ownership, before the Supreme Court.

DAO 96-40,
Revised IRR of RA 7942.

Proclamation No. 297, November 25, 2002 
Establishing the 8,100-hectare Diwalwal Mineral Reservation.

Joint MC DENR-DTI 2003-02, September 10, 2003
Establishment of a Mining Investment Assistance Center.

SC ruling, RA 7942 as unconstitutional, January 2004
The Supreme Court en banc said the Mining Act of 1995 is unconstitutional since it allows foreigners to engage in mining through FTAAs, which is contradictory to the 1987 Philippine Constitution. 

SC reverses, declares RA 7942 as constitutional, December 2004
The Supreme Court reversed previous decision on the unconstitutionality of the Mining Act. Associate Justice Artemio Panganiban pens a resoution that says "full control is not anathematic to day-to-day management, provided that the State retains the power to direct overall strategy". This gives the government a go-signal to issue FTAAs.

DAO 2007-15, July 19, 2007
Amendments to DAO 96-40.

DMO 2009-01, January 30, 2009
Delegating the authority to issue Mineral Ore Exports Permit to the Provincial Governors concerned.

DMO 2010-08, June 29, 2010
Consolidated DAO re IRR of RA 7942.

DMO 2011-01, January 18, 2011
Suspension of acceptance of all mining applications.

EO 79, July 06, 2012
Institutionalizing and implementing reforms in the Philippine mining sector.
Imposes a moratorium on new mining contracts, creates the Mining Industry Coordinating Council (MICC). identify no-go areas for mining. (7 pages)

DAO 2012-07, September 10, 2012
Implementing Rules and Regulations (IRR) to EO 79 (16 pages)

DMO 2013-01, February 21, 2013
Increasing the minimum capital requirements for mining applicants – EP, MA, FTAA.
Authorized capital from P10 million to P100 million.
Paid up capital from P2.5 million to P6.25 million.

DAO 2013-10,  February 21, 2013
Increasing fees for mining applications.
Exploration Permit (EP) from P60/hectare but not less than P50,000 per application, to P300/hectare but not less than P200,000 per application.
Mineral Agreement (MA) from P60/hectare but not less than P50,000 per application, to P300/hectare but not less than P300,000 per application.
FTAA from P60/hectare but not less than P190,000 per application, to P300/hectare but not less than P500,000 per application.

See also
Mining 9: Supreme Court Hearing on RA 7942, March 27, 2013
Mining 10: Urban Tailings vs. Mining Tailings, March 31, 2013

Mining 11: Big Projects in the US, UK, Canada and Australia, April 04, 2013 
Mining 12: Political Risks vs. Natural Risks, April 09, 2013

No comments: