IN THE KNOW: Mineral production sharing agreement | Inquirer News

IN THE KNOW: Mineral production sharing agreement

/ 12:47 AM February 15, 2017

A mineral production sharing agreement (MPSA) is one of  three types of mineral agreements that the government grants to a contractor for the right to mine within, but not title over, a contract area.

Under the MPSA, the government shares in the production of the contractor, whether in kind or in value, as owner of the minerals.


In return, the contractor provides the financing, technology, management and personnel for the mining project.

The other types of contracts are the coproduction agreement, under which the government provides inputs to the mining operations other than the mineral resources, and the joint venture agreement, under which the government and the contractor organize a joint venture company, with both parties having equity shares.


A Filipino citizen of legal age and with capacity to contract is qualified to apply for a contract as an individual.

Corporations, partnerships, associations or cooperatives, organized or authorized for the purpose of engaging in mining, are also qualified provided they are duly registered and 60 percent Filipino-owned. —INQUIRER RESEARCH


Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: mineral production sharing agreement, Philippine fast facts
For feedback, complaints, or inquiries, contact us.

News that matters

By providing an email address. I agree to the Terms of Use and
acknowledge that I have read the Privacy Policy.

© Copyright 1997-2021 | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.