manila quisumbing torres is a member firm of baker & mckenzie international, a swiss verein with...

Manila

Quisumbing Torres is a member firm of Baker & McKenzie International, a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a “partner” means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an “office” means an office of any such law firm.

Leo G. Dominguez

Partner, Quisumbing Torres

The Legal Framework for Mining in the Philippines: Is it Stable?

Launching of the German edition of the Primer on the Philippine Minerals IndustryKfW IPEX-Bank, Frankfurt, Germany28 June 2007

©2005 Quisumbing Torres 2

Legal Framework of Mining in the Philippines: Key Aspects

The Philippine Government – An Active Partner

• Government mining policy: the old paradigm

• The new paradigm: government as active partner of

mining

• Philippine Mining Law: implementing the government’s

proactive policy



Government mining policy: the old paradigm

• In a word: UNCERTAINTY

• Bureaucracy was in a time warp

• DENR suffered from “Jekyll and Hyde” syndrome



The new paradigm: government as an active partner of mining

2004 – Minerals Action Plan (EO270)

2005 – in La Bugal, Supreme Court ruled with finality Philippine Mining Act / FTAA Constitutional




2005 –Delia Domingo-Albert appointed Presidential Adviser for Minerals Development (PAMD)

The roles of the PAMD:• Streamlining/shortening

permitting process• promoting mining

investments abroad




2005 – Creation of the Minerals Development Council (MDC)

MDC’s functions:

1. enlist the assistance of any instrumentality of the government

2. implement programs relative to responsible minerals development

3. harmonize investment-related requirements and procedures

4. facilitate and expedite investments in the minerals sector



The new paradigm: government as active partner of mining• Result: all three branches of government (Executive,

Judiciary & Legislative) unanimously support responsible minerals development.



Philippine Mining Law: implementing the government’s proactive policy

1. Financial or Technical Assistance Agreement (FTAA)

- minimum investment of USD50M

- contractor up to100% foreign-owned

- Max area: 81,000 hectares for entire Philippines




2. Mineral Production Sharing Agreement (MPSA)

- contractor not more than 40% foreign-owned

- Max area: 8,100 hectares per province; 16,200 hectares for entire Philippines




Environmental and Social Issues• Environmental Protection and Enhancement Program• Indigenous Peoples• Social Development and Management Program



Summary

1. First time 3 branches of government –Legislature, Executive and Judiciary - solidly behind responsible minerals development as key to economic growth.



Summary

2. All mining projects are projects of the State - State is effectively your partner.



Summary

3. FTAA - legal vehicle for 100% foreign-owned contractors to undertake large scale (US$50M) projects



Opportunity Awaits You in the Philippines

Manila

Quisumbing Torres is a member firm of Baker & McKenzie International, a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a “partner” means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an “office” means an office of any such law firm.

Leo G. Dominguez

Partner, Quisumbing Torres

Thank You!

manila quisumbing torres is a member firm of baker & mckenzie international, a swiss verein with...

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