Philippines lift two-year ban on mining exploration licences

SMM: the Philippines, the world's second-largest nickel exporter, has lifted a two-year moratorium on the approval of mining exploration licences, a move the government and industry hope will help determine mining potential.

The decision is the second mining policy measure to be revised in recent months, but environmental officials say the ban on new mining operations remains in force, meaning the impact of the new rules will be limited.

Roy Cimatu, the environment and natural resources minister, also lifted the moratorium on licensing small-scale mining projects last month.

However, mining remains a controversial issue in the Philippines as a result of past instances of weak government regulation of environmental protection. Only 3 per cent of the 9 million hectares of high reserves identified by the Government have been mined.

Analiza Teh, deputy minister of environment and natural resources, said on Tuesday that the new rules would allow exploration operations only under 16 mining contracts previously approved.

"only (MPSAs), a mineral sharing agreement, is allowed to explore."

"Exploration permits allow only mapping and drilling, and mining potential can be judged by continuing operations, but new mineral agreements will be signed in the future."

Jonas Leones, deputy environment and natural resources minister, said the latest move would also help the government decide which areas are best suited for mining or tourism.

The Philippines is China's second-largest supplier of nickel ore after Indonesia.