Lifting of Moratorium on Mineral Agreements 

September, 2022 - Aaron Roi Riturban, SyCip Salazar Hernandez & Gatmaitan

On April 14, 2021, then President Rodrigo Duterte issued Executive Order (EO) No. 130 (EO No. 130), which amends Section 4 of EO No. 79, s. 2012 (EO No. 79), lifting the moratorium on the grant of new mineral agreements. Section 4 of EO 79 had imposed a moratorium on the granting of new mineral agreements “until a legislation rationalizing existing revenue sharing schemes and mechanisms shall have taken effect.”

The whereas clauses of EO No. 130 noted that Republic Act No. 10963 (the TRAIN Act) has doubled the rate of excise tax on minerals, mineral products, and quarry resources from 2% to 4%, the country has tapped less than 5% of its mineral resources, and that the mining industry can support various government projects. EO No. 130 also directed the Department of Environment and Natural Resources (DENR) and the DOF to “undertake appropriate measures to rationalize existing revenue sharing schemes and mechanisms”

In addition, EO No. 130 provides for the strict implementation of mines safety and environmental policies by the DENR, directing the DENR to “ensure strict implementation of and compliance with the recommended measures of the Mining Industry Coordinating Council involving all mining operations, including other pertinent laws, rules, and regulations, and the terms and conditions of the mineral agreements.”



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