NEWS

By Claudine Flores | Sun Star | March 27, 2025 11:17PM

CITING violations of environmental and mining laws as the basis for her action, Cebu Gov. Gwendolyn Garcia is pushing for the nullification of contracts allowing two companies in southern Cebu to conduct quarry activities.

The governor seeks to revoke the Mineral Production Sharing Agreements (MPSAs) of Apo Land and Quarry Corp. (ALQC) in the City of Naga and Solid Earth Development Corp. (SEDC) in San Fernando.

“This has been a series of discoveries. Now my position is, I wish for the nullification of all their MPSAs,” Garcia told reporters in a mix of Cebuano and English on Thursday, March 27, 2025.

Garcia has written to Department of Environment and Natural Resources Secretary Maria Antonia Yulo-Loyzaga regarding the violations.

What is an MPSA?

An MPSA (Mineral Production Sharing Agreement) is a contractual arrangement between the Philippine government and a mining contractor. Under this agreement, the government grants the contractor the exclusive right to explore, develop, and utilize mineral resources within a specified area.

Unpaid taxes, extraction discrepancies

Garcia’s initial concern stemmed from unpaid taxes owed under the Provincial Revenue Code.

The Provincial Government calculated that ALQC should have paid P1,018,645,327.76 for extracted limestone from April 2016 to December 2024. The company only paid P575,000 from the P3,875,000.00 from April 16 to Dec. 2021.

Further investigations revealed significant discrepancies in reported extraction volumes:

While ALQC reported to the Mines and Geosciences Bureau (MGB) 7 that it extracted 1.5 million metric tons of limestone in 2018, a university research study found that 3.9 million metric tons were extracted at the time of the Naga landslide in Sept. 2018.

SEDC extracted 22,209,075 metric tons of limestone from Dec. 2017 to Dec. 2024, according to a real-time kinematic drone survey conducted by the Provincial Government. Yet, its declared extraction volume from 2008 to 2024 was only 13,154,313 metric tons, showing a discrepancy of 9,054,762 metric tons.

The quarry companies in Cebu reported their extraction volumes only to the MGB 7, which did not verify if the presented data was accurate.

Violating mining law

Garcia said these MPSAs violate Section 19 of Republic Act 7942 (Philippine Mining Act), which prohibits mining activities in specific areas.

“The more serious and more pressing problem is that their MPSAs are in violation of the Philippine Mining Act,” Garcia said.

Section 19 of the Philippine Mining Act restricts mining in:

Military and government reservations without prior clearance;

Areas near public and private structures such as buildings, cemeteries, archaeological sites, bridges, highways, waterways and dams without written consent;

Areas with existing mining rights;

Small-scale mining areas without prior consent; and

Ecologically sensitive areas including old-growth forests, watershed reserves, wilderness areas, mangrove forests, national parks and wildlife sanctuaries.

These ecologically sensitive areas are protected under the National Integrated Protected Area System through RA 7586 and other environmental laws.

Current MPSA holdings

ALQC currently holds eight MPSAs covering 3,302.3194 hectares across Naga City, San Fernando, Carcar City, Pinamungajan, and Toledo City.

SEDC has seven MPSAs spanning 5,583.18 hectares in San Fernando and Pinamungajan.

Cease-and-desist orders

Garcia continues to issue cease-and-desist orders (CDOs) against both companies over safety and environmental concerns:

Executive Order (EO) 13 extends ALQC’s suspension for 30 days from March 25, 2025.

EO 14 halts SEDC’s quarrying operations in San Fernando also from March 25.

These follow multiple CDO extensions since December 2024 due to safety risks and extraction data discrepancies. ALQC initially challenged the order but later withdrew its petition.

Alternative suppliers

Garcia said alternative suppliers can provide limestone to cement plants supplied by ALQC and SEDC, dispelling claims that the shutdowns would halt cement production.

“Why issue a cease-and-desist order if they can buy limestone elsewhere? We have properly monitored quarry permittees who have paid in advance and can supply them…Limestone isn’t limited to their MPSA areas—the entire island has it, and we have compliant permittees ready to supply,” Garcia said in a mix of Cebuano and English.

Cebu Province has eight active permittees in south Cebu, eight in north Cebu, and six ongoing permits. These permittees are quarry businesses authorized by the Provincial Government to extract limestone within its jurisdiction.

Beyond the excise tax on quarry resources that these permittees pay to the National Government, they also pay the Province for limestone extraction.

Source: Sun Star

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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