The minimum authorized and paid up capital requirements for mining applicants were increased under Department Memorandum Order (DMO) No. 2013-01 issued by the Department of Environment and Natural Resources (DENR) on February 20, 2013.
DMO 2013-01 provides that for Exploration Permit (EP), Mineral Agreement (MA) and Financial or Technical Assistance Agreement (FTAA) the minimum authorized capital requirements is increased from PhP 10,000,000.00 to PhP 100,000,000.00.
The paid-up capital requirement is increased to PhP 6,250,000.00 from PhP 2,500,000.00.
Further, DMO 2013-01 provides that in the case of FTAA applicants, a minimum paid-up capital of PhP 500,000,000.00 shall be required upon the grant of the FTAA by the President and prior to the registration of the FTAA with the Mines and Geosciences Bureau (MGB) Central Office.
Section 2 or Transitory Provision of DMO 2013-01 states that “all mining applicants with pending applications for EP, MA and FTAA are required to comply with DMO 2013-01 within 60 days from the effectivity of the said Order.
Failure of mining applicants to comply with DMO 2013-01 shall cause the denial of their mining applications as deemed appropriate by the MGB.
DMO 2013-01 is pursuant to EO 79, the mining policy issued by President Aquino, and Republic Act 7942 or the Mining Act of 1995. (lartajo, MGB-6).