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MPSA granted to Semirara, door opens for more projects after issuance of E.O. No. 130
by Marcelle P. Villegas - July 24, 2022
[The infographics posted by MGB shows the significant economic contributions of mining in the Philippine economy for the past two years.]
Mines and Geosciences Bureau (MGB) announced on 10 March 2022 that the DENR has granted MPSA 352-2022-VI to DMCI Holdings, Inc., a subsidiary of Semirara Mining and Power Corp. (SMPC). The MPSA is for SMPC’s Hamalian Limestone Project which is located at Semirara Island in Caluya, Antique. The project covers an area of 3,807.0571-hectares. This MPSA now gives SMPC the exclusive rights to begin mining operations within the contract for a period of 25 years. This is renewable for the like period. 
The MPSA that was granted to SMPC is the first that was issued by the Philippine government since 2012. When E.O. No. 130 was signed by President Rodrigo R. Duterte on 14 April 2021, this amends the provision of Section 4 of E.O. No. 79 which was issued by former President Benigno S. Aquino III in 2012. (Former President Aquino’s E.O. No. 79 prohibits the grant of mineral agreements “until a new legislation rationalizing existing revenue sharing schemes and mechanisms shall have taken effect.”) Therefore, the implementation of E.O. No. 130 effectively ends the nine-year moratorium on new mining projects, and allows the government to enter into new mineral agreements, but still subject to compliance with the Philippine Mining Act of 1995, and other applicable laws, rules, and regulations. 
Mineral Production and Sharing Agreement (MPSA) is one of the different types of Tenurial Permits/Agreements. This agreement is executed by the DENR Secretary and the contractor. The MPSA holder is then granted by the Philippine government the exclusive right to conduct mining operations within a contract area. The share of the Philippine government is in the form of excise tax equivalent to a percentage of the gross output.
MGB director Wilfredo Moncano said that the lifting of the ban on new mining projects gives the mining industry the opportunity to boost its economic contribution for the country and to help in the national recovery from the COVID-19 pandemic.
According to MGB, the gross value added in mining contributions reached to P120.4 billion in 2021. This is higher than P102.3 billion from 2020. 
From MGB’s social media post on economic contribution of mining, they stated, “The Philippine government commits that a proposed mining project will only be allowed if technically feasible, environmentally compliant, socially acceptable, and financially viable. [If] any of these imperatives are absent, [then] it is not time to mine.”
 Mining Tenements Management Division, DENR-MGB (18 March 2022). "DENR grants first MPSA after the issuance of EO 130".
Retrieved from -
 Talavera, Catherine (20 March 2022). "Government grants new permit for mining, 1st since 2012". The Philippine Star.
Retrieved from - https://www.philstar.com/business/2022/03/20/2168477/government-grants-new-permit-mining-1st-2012
Infographics: From Mines and Geosciences Bureau Facebook page
To know more about #MineResponsibility, visit www.mgb.gov.ph.
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Philippine Resources - April 18, 2022
NegOcc, MGB ink pact to devolve mining papers issuance functions
Photo: Negros Occidental Governor Eugenio Jose Lacson (2nd from right) and Mines and Geosciences Bureau-Western Regional Director Raul Laput (right) sign the memorandum of agreement for the transfer of functions on the processing and issuances of two mining documents to the provincial government. Witnessed by Provincial Administrator Rayfrando Diaz II (2nd from left) and Provincial Environment Management Office head Julie Ann Bedrio, the signing rites were held during the Governor’s Permit Holders Forum and Dialogue held at the Negros Residences in Bacolod City on Tuesday (April 12, 2022). (Photo courtesy of PIO Negros Occidental) The province of Negros Occidental has entered into a memorandum of agreement (MOA) with the Department of Environment and Natural Resources (DENR) Mines and Geosciences Bureau-Western Visayas (MGB-6) for the transfer of mining documents issuance functions to the provincial government. The signing rites, led by Governor Eugenio Jose Lacson and MGB-6 Regional Director Raul Laput, were held during the Governor’s Permit Holders Forum and Dialogue held at the Negros Residences here on Tuesday. “To everyone present, including the national government agencies, may the good Lord give us the wisdom to find better ways on how we can work together for the furtherance of responsible mining practices,” Lacson said in his keynote message before some 170 permit holders. The MOA provides for the transfer of functions on the processing and issuances of the certificate of environmental management and community relations record (CEMCRR) and social development and management program (SDMP), which are part of new policies affecting sand and gravel as well as quarry extraction in the province. This is based on Executive Order 138 issued by President Rodrigo Duterte on June 21, 2021 or the “Full Devolution of Certain Functions of the Executive Branch to Local Government Units, Creation of Committee on Devolution, and for other Purposes”. Laput said the mining industry is considered a major driving force in the country’s local and national economy. “This is a very important meeting of our permit holders and our government agencies to share relevant information, give updates, share concerns and exchange ideas on how we can address issues affecting the industry,” he added. The CEMCRR is issued as proof of a good record of accomplishment of a company or permit holder in terms of community relations while the SDMP is a community development tool required of permit holders to ensure that the host and neighboring communities benefit from the project in terms of livelihood, education, infrastructure, medical and other social development programs. Both documents are part of the requirements for permit applications for quarry, small-scale mining and sand, and gravel for commercial and industrial use. Local issuance of quarry, sand, and gravel for areas below five hectares and small-scale mining permits is a devolved function under the Local Government Code of 1991. Lacson said he has been informed that some applicants and permittees are circumventing the law by applying multiple applications when the ordinance provides that a qualified person may only be granted one permit in any local government unit at any one time. “I want to be forthright with you, always remember that the permit given to you is a privilege, a privilege to use our resources judiciously, not to exploit our limited natural reserves. We are not supposed to do indirectly what is prohibited directly,” he told the permit holders. Article courtesy of the Philippine News Agency
Philippine Resources - May 04, 2022
SMPC completes mine rehab of largest open pit in PH
Integrated energy company Semirara Mining and Power Corporation (SMPC) has completed its backfilling operations in Panian, once the largest open-pit mine in the Philippines. SMPC spent 11.5 million man-hours to fill the pit with over 452 million bank cubic meters (bcm) of earth material, which is enough to fill 217,000 Olympic-size swimming pools. “We are mindful of our twin role as stewards and government contractor. What we accomplished in Panian is proof of that,” said SMPC president and COO Maria Cristina C. Gotianun. Located in Semirara Island, Panian mine spans 400 hectares with topographic elevations that ranged from 300 meters below sea level (mbsl) to 30 meters above sea level (masl) during its mine life. 300 meters is roughly the height of a 90-story building. SMPC fully covered the pit in six years, way ahead of the original 10-year mine rehabilitation plan. Mine rehabilitation refers to the repair of land that was disturbed by mining activities. The company is now developing a science-based plan to reforest and restore the biodiversity in the area. Panian had a mine life of 16 years and generated P12.7 billion in royalties for the government and SMPC host communities. Of the total amount, P7.6 billion went to the national government while the Municipality of Caluya and Brgy. Semirara received P2.3 billion and P1.8 billion, respectively. P1 billion went to the Province of Antique. In September 2021, SMPC won in the ASEAN Energy Awards (Special Submission category) for its accelerated rehabilitation of South Panian pit, which is considered as the fastest of its kind and scale in the Philippines. SMPC completely filled North Panian with earth material last January, four months ahead of its committed date to the Department of Energy.
Philippine Resources - March 17, 2022
Semirara Mining and Power Corp earns P16.2b net income in 2021, highest in its 41-year history
Photo: Integrated energy company Semirara Mining and Power Corporation (SMPC) ended 2021 with a net income of P16.2 billion, the highest in its 41-year history. The 393-percent leap from P3.3 billion the previous year was mainly attributable to an 8- percent rise in coal production, 16-percent jump in coal shipments and 71-percent surge in average coal selling prices. “Our results reflect the hard work of our people. They rose to the challenges of the pandemic and delivered exceptional value to our stakeholders,” said SMPC president and COO Maria Cristina C. Gotianun. Contributions from the coal segment grew by 535 percent from P1.8 billion to P11.4 billion while both power subsidiaries delivered improved performances. Sem-Calaca Power Corporation contributed P3.3 billion, a 154-percent upturn from P1.3 billion the previous year. Meanwhile, Southwest Luzon Power Generation Company recorded a 1,563-percent rise in contributions from P87 million to P1.4 billion. For the fourth quarter alone, SMPC saw its net income expand by nearly twenty times from P297 million to P5.9 billion, its highest profit level for any given quarter. Average selling prices from October to December rallied by 229 percent from P1,354 to P4,452 as global supply disruptions and accelerated demand from China, India and Europe pushed index prices to record levels. Elevated coal prices offset the impact of lower shipments, which was nearly halved (46%) from 4.6 million metric tons (MMT) to 2.5 MMT owing to weather-induced coal production drops in the third quarter. Article courtesy of the Philippine Stock Exchange
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Philippine Resources - January 30, 2023
PHILEX MINING GEARS UP FOR EXPANSION, SIGNIFIES INTEREST IN MACAWIWILI
In photo at the signing of the term sheet between PMC and MGMDCI were: (seated, left to right) Felicisimo A. Feria, Jose Ma. S. Lopez, and Michael L. Escaler, all representing MGMDCI; Manuel V. Pangilinan, Philex Chairman; and Eulalio B. Austin Jr., Philex President and CEO; (standing, left to right) Atty. Katrina Janine Sta. Ana, Associate, Migallos & Luna Law Offices; Atty. Bryan George Manzano, Associate, Migallos & Luna Law Offices; Atty. Michelle Carisse Balois, Partner, Feria Tantoco Daos Law Offices; Atty. Daneia Isabelle Palad, Partner, Migallos & Luna Law Offices; Atty. Winston Cruz, Vice-President and General Counsel, Philex Mining Corporation; Romeo B. Bachoco, Senior Vice-President and Chief Finance Officer, Philex Mining Corporation; Atty. Marilyn A. Victorio-Aquino, Director, Philex Mining Corporation; Atty. Barbara Anne C. Migallos, Director and Corporate Secretary, Philex Mining Corporation and Partner, Migallos & Luna Law Offices; Atty. Raymond Francis Jamora, Associate, Feria Tantoco Daos Law Offices; and Atty. Michael John Tantoco, Jr., Associate, Feria Tantoco Daos Law Offices. (PMC photo) Philex Mining Corporation, one of the oldest and largest copper and gold producers in Southeast Asia, recently set into motion its plans for expansion with the signing of a Term Sheet with Macawiwili Gold Mining and Development Co., Inc. (“MGMDCI”) in simple ceremonies in Makati City. Macawiwili Gold Mining and Development Co., Inc. is a 90-year old company engaged in mineral exploration and production in Itogon, Benguet. With over 800 hectares of contract area under its Mineral Production Sharing Agreement, the Company has been exploring various mineral deposits, including gold and copper, for several decades. The Term Sheet outlines the parties’ clear intentions to explore commercial, financial, and technical avenues in preparation for possible shares acquisition by the Company in MGMDCI. Activities to kick off this partnership will include conduct of due diligence and scout drilling activities on the property of MGMDCI covered by Mineral Production Sharing Agreement (MPSA) in Itogon, Benguet Province., located adjacent to the existing Padcal Mine of the Company. Signing the Term Sheet on behalf of the Company were Manuel V. Pangilinan, Chairman, and Eulalio B. Austin Jr., President and CEO; while representing the shareholders of MGMDCI were Michael G. Escaler, Jose Ma. S. Lopez, and Felicisimo A. Feria. The signing was also witnessed by directors and officers of the Company as well as counsel for both parties. “Our interest to pursue investments in the Macawiwili property” according to Eulalio B. Austin, Jr., President and CEO, “is part of our business direction for this year to broaden interest in ‘green metals’ through mergers and acquisitions.” “We need to hit the ground with this at the soonest possible time,” Austin adds, “considering that this property is adjacent to our Padcal mine and would go a long way in fulfilling company plans for expansion and extension of the life-of-mine of Padcal. “This is a good addition or extension to the Padcal Mine,” according to Manuel V. Pangilinan, Philex Chairman. “I hope that this is the start of something good and that it would ride the wave of higher metal prices in gold and copper.” Pangilinan emphasized that “any addition, expansion, or extension to the Padcal Mine would greatly benefit not just our employees and their families, but also our host and neighboring communities, and our nation as a whole.” Article courtesy of the Philippine Stock Exchange
Philippine Resources - January 30, 2023
DMCI Holdings, SMPC among best governed PLCs
Photo caption (left to right): SMPC Corporate Governance and Compliance Manager Joseph D. Susa, DMCI Holdings Board Advisor and SMPC Independent Director Honorio O. Reyes-Lao and SMPC SVP, Chief Risk, Compliance and Performance Officer Junalina S. Tabor. Diversified engineering conglomerate DMCI Holdings and its energy subsidiary Semirara Mining and Power Corporation (SMPC) were among the Philippine listed companies recognized for their corporate governance performance by the Institute of Corporate Directors (ICD). DMCI Holdings received the 2 Golden Arrow recognition while SMPC was awarded the 3 Golden Arrow recognition. Both have been ASEAN Corporate Governance Scorecard (ACGS) Golden Arrow awardees since 2019. The awards were conferred after the two companies exhibited observable conformance with the Philippine Code of Corporate Governance and internationally recommended corporate governance practices as espoused by the ACGS. The ACGS measures the performance of the companies in the areas of facilitating the rights and the equitable treatment of shareholders, how they relate to their different stakeholders, ensuring transparency and accountability through timely disclosure of material information, and how the board guides the company strategically, monitors the management, and ensures the board’s accountability to the company and the shareholders. Over 80 Philippine listed companies were feted during the in-person awarding ceremony in Sheraton Manila Hotel last January 20. Article courtesy of the Philippine Stock Exchange
Philippine Resources - January 30, 2023
DOTr to prevent more delays in PNR Clark Phase 2 project
Photo credit: DOTr The Department of Transportation (DOTr) will work closely with the contractor of the Philippine National Railways (PNR) Clark Phase 2 project to ensure that issues are addressed after its projected completion date was delayed by eight months. In a statement on Monday, the DOTr said the project, initially slated for completion in June 2024, has been delayed until June 2025 due to the delay in the turnover of the land to project contractor POSCO Engineering & Construction. “Before the 36-hectare site was turned over by the government to POSCO, several fruit-bearing trees were cut down, causing the delay,” it said. About 48 buildings and facilities are expected to be built by POSCO at the project site, meant to be the Clark Depot of the North-South Commuter Railway (NSCR). “As of December 31, 2022, more than 33% of the planned construction has been completed,” it said. In addition to buildings and facilities, the Clark Depot will have 33 stabling tracks to serve as the parking areas for the trains and 12 other tracks to access maintenance facilities. During a site visit at the project site, DOTr Secretary Jaime Bautista said the Clark Depot is where the operations control center will be located which will serve as the “heart of operations” of the rail service. “It is important that we complete this as planned and on time. I know that there are issues that need to be resolved. The DOTr will work closely with [the contractor], so we can fix problems and address issues,” Bautista said. The 53-kilometer PNR Clark Phase 2 is the second leg of the NSCR and will link multiple cities and municipalities in Central Luzon with Metro Manila. Funded by the Asian Development Bank, the project is seen to cut travel time between Malolos City in Bulacan province and Clark, Pampanga province from 1.5 hours to 30 minutes. This part of the NSCR also includes the Airport Railway Express Service that will connect Makati to the Clark International Airport through a 55-minute train ride. Article courtesy of the Philippine News Agency
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