Entry into mineralized areas for the purpose of mineral exploration have not been easy because of requirements for permits and consent from government offices and affected parties. In areas declared and occupied by indigenous peoples or communities, an applicant has to secure a Free and Prior Informed Consent (FPIC) from the indigenous peoples concerned. Permit or clearance is also required from various DENR agencies particularly if exploration or mining activities will be conducted in protected, biodiversity and forestry areas. A One-Stop-Shop clearing center was established in every regional office of the DENR to facilitate issuance of area clearances. Agricultural lands intended to be converted into mining areas need clearance from the Department of Agrarian Reform. The numerous clearances to be secured in mining applications is regarded by investors as a tedious and bureaucratic procedure. Under the Minerals Action Plan, policy reforms will be formulated to simplify the processes involving the acquisition of a mining permit including clearances and requirements from other government agencies. Inter-agency committees are working on the harmonization of conflicting government rules and regulations.

D. Idle, Sequestered and/or Abandoned Mining Assets

A number of inactive mines, either orphaned or have stopped operation due to temporary non-feasibility, have become the subject of concern by government. Some of these abandoned mines were sensationalized by environmentalist groups as producers of mine acid drainage causing incidents of “fish kill” in downstream fishing areas. Some of these areas have been categorized to have a great potential of producing natural acids. Immediate government action was sought to prevent further potential damage caused by these abandoned mines. In the case of orphaned mines, government is left with the problem of how to alleviate the impact of acid mine drainage. Policies of abandoned mines have to be formulated to address the current impacts and future occurrence of this problem. Under the Minerals Action Plan, a Mine Viability and Environmental Assessment (MVEA) Study is contemplated to identify which mines still have the potential to generate wealth to be used in the rehabilitation.

In the past, Government signed guarantees to loans used to finance mining projects which have profitably operated in the late seventies and early eighties. Because of some compelling negative economic factors, these mines have shut down and were sequestered by government through the assignment of a trustee - the Asset Privatization Trust (APT). The physical mine assets of these projects consisting principally of machineries, equipment and building infrastructures have been sold by APT to recover some value of the guarantee. What were left behind were mining and adjacent areas that still possess high potential for mineral deposits. To convert these mining assets into productive mines need serious government action to hopefully recover its losses. These assets are currently under the management of the Privatization Management Office under the Department of Finance.