Atienza defends validity of MOEP to curb illegal export of mineral products

Secretary Lito L. Atienza of the Department Environment and Natural Resources (DENR) said Department Administrative Order (DAO) numbered 2008-20, which requires exporter of mineral ores and other by-products to secure first a Mineral Ore Export Permit (MOEP) before they can export their products, is lawful and constitutional.

Atienza said DAO 2008-20 is consistent with Republic Act (RA) numbered 7942 otherwise known as the New Mining Law of 1995 and Republic Act numbered 7160, the Local Government Code which gave the DENR the mandate to regulate and manage the country’s natural resources.

Section 17 of RA 7160 provides that the DENR devolved functions (to the Local Government) are subject to supervision, control and review of the DENR. This includes the devolution under DAO-30, Series of 1992 to the Provincial Government on the enforcement of the small-scale mining law which is subject to the policies, standards and guidelines of the  DENR, Atienza explained. 

The Secretary defended the validity of the MOEP after some 42 Governors of the League of Governors of the Philippines, through a paid advertisement, urged President Arroyo to intervene and direct him (Atienza) to recall DAO 2008-20.

The Governors claimed DAO 2008-20 is defective and unconstitutional for: it usurps the legislative powers of congress, contradict the Local Government Code, adds another layer of bureaucracy that may become a new source of corruption,  it is contrary to the President’s policy and vision for a fully developed and revitalized mining industry as a source of employment for the Filipino people as well as commitment to strengthen the decentralization and local autonomy, and the order will cause direct injury not only to the operations of the large and small scale mining companies but also to the revenue collection and job generation efforts of the national and local governments.

Atienza clarified it is not in anyway taking away the powers of Congress or the Local Government Units as the DENR is just safeguarding the country’s mineral wealth and fulfilling its mandate to ensure the preservation of the country’s natural resources today and for the future.

Smuggling of mineral products out of the country has been happening and requiring mining companies and mineral traders to get MOEP is an effective mechanism to monitor the movement of mineral resources, Atienza said.

Citing estimates by the MGB, the government lost as much as 1 billion in excise taxes due to the non-payment and mis -declaration, mostly by small scale mining and non-metallic mining operations, in 2007 alone, Atienza further said.

He said under DAO 2008 – 20, which took effect on January 5, 2009, all exporters of mineral ores and other by-products are required to apply for MOEP from the regional offices of the Mines and Geosciences Bureau (MGB) before the actual date of shipment.

He added that all regional directors of MGB were advice by the DENR to ensure the speedy processing of applications in their respective regions, including the required field validation, so as to ensure the issuance of MOEP within 10 days at the most.

It is not only the government that stands to benefit from this new policy reform but also the responsible mining companies whose legitimate business is protected by the system. Failure to present the permit will be considered a prima facie evidence of illegal mining and theft of minerals, he said.

Atienza said the MOEP is seen to curb the illegal export of Philippine mineral products and its submission before a mining firm is allowed to export its products will boost the government’s nationwide campaign to generate more revenues to finance its various socio-economic development projects.