Manila: Malacanang has clarified that the memorandum of understanding (MOU) between the Philippines and the United States regarding critical minerals is not legally binding. This clarification comes amid concerns from the Kabataan party-list, who argued that the agreement might allow the U.S. to bypass local regulatory scrutiny in acquiring mining permits.
According to Philippines News Agency, Palace Press Officer Claire Castro addressed these concerns during a press conference. She emphasized that the MOU is meant to outline shared goals and intentions between the two nations, rather than creating binding legal obligations. Castro highlighted that the Department of Environment and Natural Resources (DENR) publicly announced the MOU's signing in February, suggesting transparency in the process.
Castro urged those seeking further clarification to consult with the DENR to prevent misunderstandings. "You know, in situations like this, it would be better for them to first talk to the DENR to avoid possible misinterpretations or negative impressions about what the government is doing," she stated.
Clarifying the difference between an MOU and a memorandum of agreement (MOA), Castro noted that while MOAs are legally binding, MOUs only outline shared objectives. "Let us remember that an MOU outlines shared goals or shared intentions, but it is not legally binding. An MOU is different from a MOA," Castro explained.
The MOU, signed on February 4, aims to bolster cooperation between the Philippines and the U.S. in the area of critical minerals. It focuses on supply chain diversification, domestic processing, and sustainable mining practices. Castro pointed out that the Philippines has been exporting such minerals for a long time and that the MOU offers an opportunity to explore further cooperation.
The agreement sets a framework for collaboration to ensure stable, resilient, and diversified supply chains for critical minerals and rare earths, which are vital for technologies like electric vehicles, renewable energy systems, electronics, and advanced manufacturing.
