ILIGAN CITY, Lanao del Norte (August 1, 2025) — The Bangsamoro government’s growing interest in commercial-scale resource development was on full display last July 28 when the Ministry of Environment, Natural Resources, and Energy (MENRE), along with other regional ministries and stakeholders, conducted a courtesy visit in Iligan City to formally present Coal Operating Contract (COC) No. 209. The contract covers coal exploration activities in the municipalities of Kapai and Tagoloan II in Lanao del Sur.
This development comes as the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) intensifies its crackdown on illegal mining operations across the region — a move that, some observers say, could be laying the groundwork for the entry of large and commercial mining ventures like this coal project.
A High-Level Introduction
The high-level delegation was led by MENRE Minister Akmad Brahim and Director General Nasiri Abas, and included officials from the Bangsamoro Planning and Development Authority (BPDA), Ministry of Indigenous Peoples’ Affairs (MIPA), and the local environment offices. Notably present were BPDA Director General Mohajirin Ali, MIPA representative Ruby Mae Lacundi, and Lanao del Sur Provincial ENRE Officer Asmarie Labao.
The project proponent, Filipinas Systems, Inc. (FSI), was represented by its president, Felipe A. Cruz Jr. COC No. 209, awarded to FSI, grants exploration rights over a vast 14,856-hectare coal deposit spanning two municipalities — a potentially transformative undertaking for the province.
Local Government Endorsement
The municipal leadership of Kapai and Tagoloan II welcomed the delegation with optimism. Kapai Mayor Aidah Capal Gauraki and Tagoloan II Mayor Misangcad Capal voiced their support, citing anticipated economic benefits such as job creation, infrastructure development, and increased local revenues.
“We believe this project, if properly monitored and implemented, can uplift the lives of our constituents,” said Mayor Gauraki.
Environmental and Indigenous Safeguards
In his statement, Minister Brahim emphasized that the project adheres to the principles of moral governance and environmental sustainability, key pillars of the Bangsamoro government’s development framework.
“Exploration activities under COC No. 209 will strictly comply with national and regional environmental regulations and uphold the welfare and rights of local communities,” Brahim assured.
Importantly, the presence of MIPA representatives signals a commitment to consult with Indigenous Peoples (IPs) and ensure that their ancestral domain rights and cultural practices are not sidelined in the name of development.
Setting the Stage for a Resource-Based Economy?
The visit reflects BARMM’s multi-sectoral and consultative approach to natural resource governance. But it also raises questions: Is this part of a broader strategy to clear the way for formal mining ventures by phasing out unregulated, small-scale, and oftentimes environmentally destructive operations?
Since 2024, BARMM authorities have ordered the closure of numerous illegal mining sites, citing environmental violations and the absence of legal permits. While the crackdown has been framed as a move toward environmental protection and moral governance, critics and civil society groups now wonder if it is also meant to pave the way for big business.
“Coal and commercial mining have long-term implications on ecosystems and community health,” said an environmental advocate who asked not to be named. “We need more transparency, especially on the socio-environmental safeguards and the long-term development vision for Lanao del Sur.”
A First in BARMM
To recall, COC No. 209 is the first coal contract formally signed in BARMM following the ceremonial agreement held in October 2024 at the Office of the Chief Minister. It operationalizes key mechanisms under the Bangsamoro Organic Law, which grants the autonomous region greater control over its natural resources.
The Kapai-Tagoloan coal site, stretching nearly 15,000 hectares, is poised to become a test case for how BARMM handles extractive operations under the banner of moral governance and inclusive development.
A Turning Point?
The announcement of COC No. 209 marks a significant milestone in BARMM’s energy and economic roadmap. Yet, it also places the region at a crossroads. Will this usher in a new era of regulated, environmentally responsible mining and energy development? Or does it risk replicating the extractive pitfalls seen elsewhere in the Philippines?
As BARMM moves forward, stakeholders — especially local communities, Indigenous groups, and watchdog organizations — will be closely monitoring not just the coal project itself, but the broader implications it may hold for the future of mining in the Bangsamoro region.
The Mindanao Sentinel will continue to follow this story and bring updates on how the Kapai-Tagoloan coal exploration unfolds — and whether it sets a precedent for the region’s resource governance in the years to come.