PASIL, Kalinga – The Department of Environment and Natural Resources (DENR) recently approved the Mineral Production Sharing Agreement (MPSA) for the $200 million gold and copper mining project of Makilala Mining Company, Inc. (MMCI) to help spur economic growth not only in the municipality but also the whole province.
Engr. Fay W. Apil, regional director of the Cordillera office of the Mines and Geosciences Bureau (MGB-CAR), said that the issuance of the MPSA will allow the company to start its mining development covering more than 2,500 hectares of its tenement area while working on the exploration within the more than 900 hectares covered by the required exploration permit.
She claimed that the initial start of mining development will definitely contribute in creating employment opportunities for qualified residents of the province aside from providing additional sources of livelihood for the people in the host and neighboring communities.
The MGB-CAR official stated that the company should work on the development of the mine site within two years from the issuance of the MPSA and proceed with reduction or a full blown mining operation.
Director Apil underscored that the timely approval of the company’s MPSA attests to the government’s recognition of the mining industry as one of the key economic drivers locally and nationally.
According to her, the MGB-CAR was able to process the company’s application before it was endorsed to the DENR Secretary for approval ensuring that all the pertinent guidelines and laws were strictly followed and complied with aside from the requisite free and prior informed consent (FPIC) which was administered and supervised by the national Commission on Indigenous Peoples (NCIP).
She explained that with the issuance of the MPSA, the company will be mandated to immediately initiate various work programs that will contribute to the local economy and translate to the benefit of host and neighboring communities and other stakeholders within the mine site.
MPSA is an agreement where the government grants the contractor, MMCI in this case, the exclusive right to conduct mining operations within a feasible contract area and shares in the gross output.
Moreover, MMCI shall provide the required financing, technology, management, and personnel necessary to implement the said coveted agreement.
She revealed that the upcoming operation of the gold and copper mine will definitely contribute in improving the contribution of mining to the local economy, especially in the generation of available jobs and increase the economic activities of people within the host and neighboring communities as well as improve the current status of the host barangay, municipality and province.
Under the pertinent provisions of Republic Act (RA) 7942 or the Philippine Mining Act, host communities are entitled to a 40 percent share from the national wealth taxes that will be paid by the operating mines where the same will be equitably divided by the host barangays, municipalities and provinces. By Dexter A. See