Miners filing exploration reports subject to new rules for compiling resource estimates

THE Department of Environment and Natural Resources (DENR) said on Wednesday that it has brought the rules governing mineral exploration reports in line with the requirements of the mining code.

Environment Secretary Maria Antonia Yulo-Loyzaga issued DENR Administrative Order (DAO) No. 2023-05 which amends DAO 2010-09. The 2010 DAO had set classification and reporting rules for exploration results and estimates of mineral resources and ore reserves.

“The compliance of mining contractors, permittees, permit holders and operators, and mining applicants with the new DAO is expected to expedite the evaluation and development of mining projects, as a result of the harmonization and streamlining of the entire reporting process related to mineral exploration results,” the DENR said in a statement.

Future reporting must now adhere to international practice, as outlined in the updated edition of the Philippine Mineral Reporting Code of 2020, it said.

The updated rules require changes to terminology, such as the replacement of “competent person” with “accredited competent person” (ACP).

The ACP refers to the person preparing the report, who must have been accredited by the Philippine Society of Mining Engineers, the Geological Society of the Philippines, the Society of the Metallurgical Engineers of the Philippines, or some other professional organization recognized by the Professional Regulation Commission.

It also replaces the terms “ore reserve” with “mineral reserve,” and “potential or target mineral resources” with “exploration targets.”

The guidelines allow consideration of “modifying factors” used in converting mineral resources to mineral reserves “to support mine planning and final evaluation of the economic viability of mineral deposits.”

The new DAO provides an expanded checklist of reporting criteria that an ACP must consider in preparing the report on exploration results, mineral resources or mineral reserves.

“The latest DAO explicitly requires ACPs to prepare the necessary reports for public disclosure. Specifically, reporting of exploration results and mineral resources shall be disclosed by an ACP geologist, while that for mineral reserves shall be disclosed by an ACP mining engineer,” the DENR said.

“Additionally, the ACP metallurgic engineer shall disclose reporting of metallurgic test works that form part of a feasibility study of a mineral project,” it added.

The new standards apply to exploration for solid and non-energy mineral resources.

A transition period of two years from the approval of the order has been granted to allow the industry players to adjust to the revised guidelines. — Sheldeen Joy Talavera