Statement of Secretary of Communications Ramon A. Carandang
On revisions to the Implementing Rules and Regulations of Executive Order No. 79, s. 2012

At a meeting today called by President Aquino, the Mining Industry Coordinating Council (MICC) agreed to revise sections 3, 7, and 9 of the Implementing Rules and Regulations of E.O. No. 79, s. 2012.

The revisions were unanimously agreed upon by the members of the MICC present, including: Executive Secretary Ochoa, Secretary of Finance Purisima, Secretary of Trade and Industry Domingo, Secretary of Environment and Natural Resource Paje, Secretary of Energy Almendras, Socioeconomic Planning Secretary Balisacan, Secretary of Presidential Communications Development and Strategic Planning Carandang,  Presidential Assistant for Climate Change Gozon, and representatives of the Department of Justice and the Office of the Solicitor General.

The revisions are as follows:

Section 3. Definition of Terms

“Expired mining tenements” refer to mining contract/agreements whose 25- or 50-year term has lapsed: Provided, that in the case of the initial 25-year term, the mining contract/agreement shall be considered expired if the parties concerned fail to agree on the terms of the renewal pursuant to Sections 32 and 38 of R.A. No. 7942, the Philippine Mining Act of 1995, and other pertinent laws.

Section 7. Grant of Mineral Agreements Pending New Legislation

No new mineral agreements shall be entered into until a legislation rationalizing existing revenue sharing schemes and mechanisms shall have taken effect: Provided, that in the case of expansion of existing contract areas, the same shall be subject to existing laws: Provided, further, that the National Government-Owned Mining Assets may be subject to the Financial or Technical Assistance Agreement (FTAA) in accordance with Section 9 of these implementing rules and regulations.

Section 9. Opening of Areas for Mining through Competitive Public Bidding

Section 2, Article 12 of the Constitution provides that the exploration, development and utilization of natural resources shall be under the full control of the State. Thus, the grant of mining rights and mining tenements over areas with known and verified mineral resources and reserves, including those owned by the Government and all expired tenements, shall be undertaken through competitive public bidding. The mining contract/agreement that may be renewed shall be subject to existing laws, rules, and regulations at the time of renewal. Provided, further, that mining contractors whose tenements are expiring from September 1, 2012 to April 30, 2013, shall be given thirty (30) calendar days from the effectivity of these implementing rules and regulations to file renewal applications: Provided, finally, that those mining contractors whose tenements expire after April 30, 2013, shall file their renewal applications not later than six (6) months prior to the expiry of their mining contracts/agreements.

These proposed revisions will be submitted to the President for his comments and approval.

September 24, 2012