Senate President Francis Escudero, at a committee hearing on Monday, called for reforms in the country’s mining sector, citing inactive mining permits that deprive the nation of economic benefits.
“There should be a clear numerical standard, if you fail to fulfill your agreed obligations within the specified period, your exploration permit or MPSA (Mineral Production Sharing Agreement) should be revoked, no matter who you are, what your name is, or which company you belong to,” he said.
Escudero said numerous exploration permits (EPs) and MPSAs remain unutilized, preventing the public from benefiting from the country’s mineral resources.
The Philippines ranks among the top 10 countries globally in terms of mineral deposits, yet mining contributes less than 1% to the country’s gross domestic product (GDP).
Escudero noted that in other mineral-rich nations, the mining sector accounts for 13% to 18% of GDP, while the Philippines lags at 0.7%.
He expressed support for Department of Environment and Natural Resources (DENR) Secretary Maria Antonia Yulo-Loyzaga and President Ferdinand Marcos Jr.’s goal to increase the sector’s contribution to at least 2% of GDP.
“We are a rich country pretending to be poor. Other countries in the top 10 richest mineral nations have mining sectors contributing as much as 13%, 14%, or even 18% of their GDP. So why are we stuck at just half of 1%? That is far too low,” he said.
Escudero emphasized that under the Constitution, all mineral deposits are state-owned, and permit holders are merely contractors authorized to extract resources.
The senate chief pointed out that the DENR has, in past administrations, allowed the transfer of permits without proper oversight, a practice he believes should be stopped.
He suggested that if a permit holder cannot explore or process minerals, the government should reclaim the permit and auction it to other investors.
Escudero said these changes do not require new legislation and can be implemented through DENR department orders or memorandum circulars.
In May 2024, DENR Secretary Loyzaga revealed plans to reduce mining permit processing time from six years to two or three years.
The agency is also piloting a digital application process in several regions to eliminate discretionary delays and make mining applications more efficient.