[3] The town became a part of the province of Dinagat Islands on October 2, 2006, when the province was created from Surigao del Norte by Republic Act No.

However, in February 2010, the Supreme Court ruled that the law was unconstitutional, as the necessary requirements for provincial land area and population were not met.

The town reverted to Surigao del Norte.

[5] On October 24, 2012, however, the Supreme Court reversed its ruling from the previous year, and upheld the constitutionality of RA 9355 and the creation of Dinagat Islands as a province.

Poverty incidence of Loreto Source: Philippine Statistics Authority[13][14][15][16][17][18][19][20] The town is endowed with rich mineral resources like aluminous laterite ore, chromite, gold, niceliferous laterite, sand and gravel, guano, rock phosphate, limestone, and siliceous sand.