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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.

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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

Sources: mgb.gov.ph

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