1. Manila Quisumbing Torres is a member firm of Baker & McKenzie International, a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a “partner” means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an “office” means an office of any such law firm. Leo G. Dominguez Partner, Quisumbing Torres The Legal Framework for Mining in the Philippines: Is it Stable? Launching of the German edition of the Primer on the Philippine Minerals Industry KfW IPEX-Bank, Frankfurt, Germany 28 June 2007

2. Legal Framework of Mining in the Philippines: Key Aspects ©2005 Quisumbing Torres 2 The Philippine Government – An Active Partner Government mining policy: the old paradigm The new paradigm: government as active partner of mining Philippine Mining Law: implementing the government’s proactive policy

3. Legal Framework of Mining in the Philippines: Key Aspects ©2005 Quisumbing Torres 3 Government mining policy: the old paradigm In a word: UNCERTAINTY Bureaucracy was in a time warp DENR suffered from “Jekyll and Hyde” syndrome

4. Legal Framework of Mining in the Philippines: Key Aspects ©2005 Quisumbing Torres 4 The new paradigm: government as an active partner of mining 2004 – Minerals Action Plan (EO270) 2005 – in La Bugal, Supreme Court ruled with finality Philippine Mining Act / FTAA Constitutional

5. Legal Framework of Mining in the Philippines: Key Aspects ©2005 Quisumbing Torres 5 The new paradigm: government as an active partner of mining 2005 –Delia Domingo-Albert appointed Presidential Adviser for Minerals Development (PAMD) The roles of the PAMD: Streamlining/shortening permitting process promoting mining investments abroad

6. Legal Framework of Mining in the Philippines: Key Aspects ©2005 Quisumbing Torres 6 The new paradigm: government as an active partner of mining 2005 – Creation of the Minerals Development Council (MDC) MDC’s functions: 1. enlist the assistance of any instrumentality of the government 2. implement programs relative to responsible minerals development 3. harmonize investment-related requirements and procedures 4. facilitate and expedite investments in the minerals sector

7. Legal Framework of Mining in the Philippines: Key Aspects ©2005 Quisumbing Torres 7 The new paradigm: government as active partner of mining Result: all three branches of government (Executive, Judiciary & Legislative) unanimously support responsible minerals development.

8. Legal Framework of Mining in the Philippines: Key Aspects ©2005 Quisumbing Torres 8 Philippine Mining Law: implementing the government’s proactive policy 1.Financial or Technical Assistance Agreement (FTAA) -minimum investment of USD50M -contractor up to100% foreign-owned -Max area: 81,000 hectares for entire Philippines

9. Legal Framework of Mining in the Philippines: Key Aspects ©2005 Quisumbing Torres 9 Philippine Mining Law: implementing the government’s proactive policy 2.Mineral Production Sharing Agreement (MPSA) -contractor not more than 40% foreign-owned -Max area: 8,100 hectares per province; 16,200 hectares for entire Philippines

10. Legal Framework of Mining in the Philippines: Key Aspects ©2005 Quisumbing Torres 10 Philippine Mining Law: implementing the government’s proactive policy Environmental and Social Issues Environmental Protection and Enhancement Program Indigenous Peoples Social Development and Management Program

11. Legal Framework of Mining in the Philippines: Key Aspects ©2005 Quisumbing Torres 11 Summary 1. First time 3 branches of government –Legislature, Executive and Judiciary - solidly behind responsible minerals development as key to economic growth.

12. Legal Framework of Mining in the Philippines: Key Aspects ©2005 Quisumbing Torres 12 Summary 2. All mining projects are projects of the State - State is effectively your partner.

13. Legal Framework of Mining in the Philippines: Key Aspects ©2005 Quisumbing Torres 13 Summary 3. FTAA - legal vehicle for 100% foreign-owned contractors to undertake large scale (US$50M) projects

14. Legal Framework of Mining in the Philippines: Key Aspects ©2005 Quisumbing Torres 14 Opportunity Awaits You in the Philippines

15. Manila Quisumbing Torres is a member firm of Baker & McKenzie International, a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a “partner” means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an “office” means an office of any such law firm. Leo G. Dominguez Partner, Quisumbing Torres Thank You!