Q&A Flashcards
(19 cards)
The document provides the minimum mine life, hurdle rate, and internal rate of return requirements for project feasibility studies and project descriptions in mining.
MGB Memorandum Circular No. 2015-01, May 14, 2015
What is the minimum mine life for a mining project involving direct shipping ore mineral commodities?
The minimum mine life should be at least seven (7) years for projects involving direct shipping ore mineral commodities such as nickel, chromite, iron, and manganese.
What is the minimum mine life for a mining project involving non-direct shipping ore mineral commodities?
The minimum mine life should be at least ten (10) years for projects involving non-direct shipping ore mineral commodities.
Defined as the year when the Net Cash Inflow from mining operations is equal to or greater than the Capital Expenditure.
Payback Period
What is the minimum Hurdle Rate required for a mining project?
The minimum Hurdle Rate required is 12%.
What is the minimum Internal Rate of Return (IRR) required for a mining project?
The minimum Internal Rate of Return (IRR) required is 15%.
What should be the relationship between the mine life and the payback period?
The minimum mine life should be twice the payback period but should not be less than seven (7) years for direct shipping ore projects or ten (10) years for other mining projects.
The title of this Administrative Order shall be “The Implementing Rules and Regulations of EO No. 130
DENR Administrative Order No. 2021-25 (Aug 2, 2021)
What is the purpose of DENR Memorandum Order No. 2004-10?
The order establishes procedural guidelines for evaluating mining project feasibility studies to approve the Declaration of Mining Feasibility (DMF) and applications for Mineral Processing Permits (MPP) and Mineral Agreements during the development or operating period.
Where should mining project feasibility studies be submitted?
They should be submitted to the MGB Regional Office that has administrative jurisdiction over the proposed project.
What happens if a feasibility study does not meet the minimum requirements?
The MGB Regional Office will return it to the project proponent within five (5) working days.
What is the timeline for evaluating feasibility studies at the regional level?
The MGB Regional Office must evaluate an FS or Project Description (PD) within 20 working days upon receipt.
How are ore reserves validated?
- The Technical Committee on Mining Feasibility Studies (TCMFS) reviews the ore reserves statement within 7 working days.
- If necessary, a joint ore reserve validation is conducted.
What happens if the feasibility study is found to be inadequate?
- The project proponent must submit a letter of undertaking to revise or supplement the FS within 30 days.
- If the FS remains non-feasible, the DMF, MPP, or MA-D/OP application will be disapproved.
What is the final step in the approval process?
If the feasibility study is approved, the final evaluation of the DMF, MPP, or MA-D/OP is conducted, considering all legal and regulatory requirements.
What is DMF?
Declaration of Mining Feasibility
What is MPP?
Mineral Processing Permit
What is MA-D/OP?
Mineral Agreements in the Development or Operating Period (MA-D/OP)
What is DMPF?
Declaration of Mining Project Feasibility
