February 23, 2017

New Mines Audit to Begin Next Month

The Mining Industry Coordinating Council (MICC) has reportedly formed a multi-stakeholder team which convened yesterday to review existing mine operations that were ordered closed and suspended by the DENR. The MICC technical working group plans to deploy experts and start the review within the next month. The review, which could take about three months, would focus on the first batch of 28 mines recommended for either closure or suspension.

After this, it will also conduct a review on the succeeding 75 MPSA (Mineral Production Sharing Agreement) cancelled by the government. The results of the study will be submitted to President Duterte as part of plans by miners to appeal the recent actions by the DENR..

Our take: Notwithstanding the continuing rise in metal prices, regulatory risks continue to weigh on the mining sector. Moreover, given the perceived lack of due process with which the mine closures and MPSAs cancellations were done, business groups fear that the overall foreign investments in the country may be adversely affected. – WealthSec