In 2005, then DENR Secretary Michael T. Defensor ordered final and executory the cancellation of non-performing mining tenements totaling 68,570 hectares throughout the country. The move was prompted by the failure of contractors to undertake mining activities under their respective contracts for a long period of time.

In an effort to maximize the resource potential of the country’s mineral lands under the government’s mining revitalization program, these 65 cancelled tenements were transferred from the Mines and Geosciences Bureau of the DENR to the PMDC in 2007.

In September 2007, PMDC published an invitation to all interested mining companies, both local and foreign, to apply for eligibility and submit sealed bid proposals for a Joint Operating Agreement for the exploration, development and mining operations of the PMDC mining properties initially put up for public bidding.

On December 14, 2007, the PMDC awarded the winning bidders for the initial three (3) cancelled mining tenements put up for public bidding. These properties were: 1) Hernani Chromite, located in Hernani, Eastern Samar with a total land area of 503 hectares; 2) Homonhon Chromite in Homonhon Island, Eastern Samar with a total land area of 286 hectares; and 3) Opol Chromite in Misamis Oriental covering an area of 27 hectares.

The winning bidders were: Masada Resources and Mining Corporation for the Hernani Chromite property; and the Mt. Sinai Exploration and Development Corporation for the Homonhon and Opol Chromite properties.