Manila, July 31, the Philippines, the world’s second-largest nickel ore exporter, has lifted a two-year moratorium on the approval of mining exploration licenses, which the government and industry insiders hope will help determine mining potential.

The decision is the second mining policy measure to be revised in recent months, but environmental officials said the ban on the new mining business is still valid, meaning that the new regulations will have limited impact.

Environment and Natural Resources Minister Roy Gmatu also cancelled the suspension period for the approval of small mining projects last month.

However, mining has remained a controversial issue in the Philippines due to instances of weak government environmental regulation in the past. Only 3% of the 9 million hectares of high-reserve areas identified by the government were mined.

Analiza Teh, deputy minister of the Ministry of Environment and Natural Resources, said on Tuesday that the new regulations would only allow exploration operations under 16 mining contracts approved in the past.

“Only by holding the Minerals Sharing Agreement (MPSAs), exploration is allowed.”

“Exploration permits only allow mapping and drilling, and can continue to determine the mining potential, but will still sign a new minerals agreement in the future.”

Jonas Leones, deputy minister of environment and natural resources, said the latest move will also help the government decide which areas are best for mining or tourism.

The Philippines is the second largest supplier of nickel ore in China after Indonesia.