The Department of Environment and Natural Resources (DENR) on Tuesday said that it is considering bidding out freed up mining areas following last year’s successful cleansing program, which has removed stagnant tenement applications.
Leo Jasareno, director of the DENR-Mines and Geosciences Bureau (MGB), said that they will continue with the implementation of the “use it or lose it” policy in mining to cleanse its records of non-moving mining applications and non-performing mining contracts.

To date, the MGB has cancelled some 1,606 mining permits that will allow the opening of potential mineralized areas for serious investors.

“The policy has the primary aim of rendering final action on 2,196 pending mining tenements nationwide. By end of June 2011, the MGB denied a total of 1,606 applications,” he said.

Mining tenements include the mineral production sharing agreement, exploration permit and financial and technical assistance agreement.

The official explained that the agency has been conducting cleansing by either approving pending applications or disapproving those with infirmities, lack of activity or lack of requirements.

The “use it or lose it” policy has earned both positive and negative response from the mining community—majority approved the cleansing because it would free up areas for serious investors and would increase the value of active permits and mining contracts.

But some of the mining companies fear that any resulting spike in investor interest would draw unwanted attention to the mining industry.

Environment Secretary Ramon Paje hopes the cleansing of mining applications will ensure that only investors with financial and technical capability would get hold of mining projects.

Paje also said the cleansing of ageing mining applications will institute reforms in the mining sector to enhance the management of the country’s natural resources, and deprive DENR personnel of any opportunity for corruption.

By 2016, the Philippines expects mining investments to reach $17.35 billion as government streamlines the permitting process for the industry and promotes the country as an investment haven.