17 MPSAs to lapse between now and 2019

On top of the 75 mineral production sharing agreements (MPSA) that are facing possible cancellation, there are now at least 17 MPSAs between the Philippine government and mining companies that are set to lapse starting this year until 2019.

Data from the Mines and Geosciences Bureau (MGB) showed there are currently 17 MPSAs, covering a combined mine area of roughly 34,000 hectares, that are set to expire between now and 2019.

While there are 295 existing MPSAs, only a few of them are operational while most are in exploration stages yet.

MPSAs are agreement between a Filipino-led contractor and the government wherein the latter gets a share in the production of the mining company as owner of the minerals.

Under the present tax regime, the government only receives two percent excise tax based on the actual market value of gross mineral output, plus a royalty of not less than five percent. On an average, the government only earns less than a billion pesos from excise tax.

With many of these MPSAs facing cancellation between now and 2019, this means there will no additional revenue generation from the mining sector over the next few years.

To date, the Philippines still has some of the largest untapped mineral resources in the world, projected to have a value of over $1 trillion.

For this year, companies whose MPSAs are expiring include Hinatuan Mining Corporation (HMC), Surigao Integrated Resources Corp., NAREDICO, Inc., Kingking Mining Corp., Century Peak Corp., and Minahang Bayan ng Mamamayan ng Dinagat Island Cooperative.

The MPSA of HMC, a subsidiary of listed company Nickel Asia, covering a mine area of 1,165 hectares in Eastern Samar will expire in October this year. The company is currently exploring nickel deposits in the area.

The MPSA of Kingking, which is partly owned by the family of former senator and businessman Manny Villar, is also set to expire this year but the company said it has already obtained a 25-year extension for its $2-billion gold and copper project in

Compostella Valley.

Surigao Integrated, on the other hand, holds an MPSA to mine nickel deposits in a 4,376-hectares land area in Claver which is set to expire this year. The MPSA was approved in 1992.

Based on its MPSA, NAREDICO's mine area covers 1,134.00 hectares in the Municipality of Loreto in Dinagat Island. The company is currently exploring potential chromite deposits in the area.

As for Century Peak Corp., the company is expected to extract chromite within Parcel III of Surigao Mineral Reservation in Dinagat Islands, covering an area of 1,198 hectares. Given in 1992, the company's MPSA is set to lapse supposed in June this year.

"The assignment of MPSA from Casiguran Mining Corporation to Century Peak Corporation was approved on December 11, 2006. DMPF (Declaration of Mining Project Feasibility) of the project was approved on December 23, 2009 and was affirmed on March 8, 2012," MGB said in its remarks.

Also located in Dinagat Island, Minahang Bayan has an MPSA that allow it to extract chromite in a mine area of 648 hectares.

Meanwhile, the companies whose MPSAs are expiring next year include Apo Land and Quarry Corp., Dorilag Cement Corp., BrightGreen Resources Corp., Celestial Nickel Mining Exploration Corp., C.T.P. Construction and Mining Corp.,

MPSAs that are going to lapse in 2019 are those owned by Stagno Mining Corporation, Minahang Bayan ng Mamamayan ng San Jose Multi-Purpose Cooperative, Republic Cement & Building Materials, Inc., Holcim Mining and Development Corporation, Minahang Bayan ng Albor Cooperative, Inc., and Vista Buena Mining Corporation.

A total of four MPSAs have also expired last year, while one lapsed in 2015. These MPSAs were owned by Comet Mining Corp., Acoje Mining Co. Inc. & Zambales Chromite Mining Corp. Inc., San Manuel Mining Corp., and Lepanto Consolidated Mining Co.

There are 10 cancelled MPSAs that are supposed to expire between 2019 and 2027.

Leo Jasareno, former MGB director, already said before that all the MPSAs are always subject to a regular review.

As of now, there are a total of 75 mining companies that are at risk of losing their MPSAs.

Nevertheless, it has already been hinted many times by MGB that none of these 25 firms will lose their MPSAs. (MBM)