often

die and fishermen can no longer navigate in the

obstructed rivers.
MINING

Large-scale mining - often undertaken by big companies using
I. INTRODUCTION many employees and a huge labor force. The organization
mines at large sites and continues the operations till the
MINING mineral or metal is completely excavated.
- Mining is the extraction (removal) of minerals and
metals from earth Large scale mining also involves using huge bulldozers and
excavators to extract the metals and minerals through the soil.
DIFFERENT MINERALS Further, to amalgamate the extractions, they normally use
- Manganese, tantalum, cassiterite, copper, tin, nickel, chemicals including cyanide, mercury, or methyl-mercury.
bauxite (aluminum ore), iron ore, gold, silver, and
diamonds are just some examples of what is mined.

REASONS FOR MINING
MINING INDUSTRY IN THE PHILIPPINES
- Mining is a money making business. Not only do
mining companies prosper, but governments also The Philippines is the fifth most mineral-rich country in the
make money from revenues. Workers also receive world for gold, nickel, copper, and chromite. It is home to the
income and benefits. largest copper-gold deposit in the world. The Mines and
Geosciences Bureau has estimated that the country has an
estimated $840 billion worth of untapped mineral wealth, as
CATEGORIES OF MINING of 2012.

All the regions (except NCR and ARMM) in the country allow
Small-scale mining - done with a relatively small group of mining operations. ARMM ceased issuing permits due to the
wandering men. They travel together and identify sites believe on-going peace process between the Moro Islamic Liberation
that will yield gold or some other valuable metal or mineral. Front and the national government.

Sets of 5-6 men migrate in one mining site to another in quest About 30 million hectares of land areas in the Philippines is
for precious metals, particularly gold. deemed as possible areas for metallic minerals. About 9 million
hectares of land areas is identified as having high mineral
There are 2 varieties of small-scale mining: land dredging and potential, according to MGB.
river dredging.
The Philippines metal deposit is estimated at 21.5 billion
Land dredging involves miners using a generator to dig a large metric tons and non- metallic minerals are at 19.3 billion
hole in the ground. They use a high pressure hose to expose metric tons, as of 2012.
the gold-bearing layer of sand and clay. The gold bearing slurry
is pumped into a sluice box, which collects gold particles, while According to MGB, there are 236,000 workers in the mining
mine tailings flow into either an abandoned mining pit or industry in 2016.
adjacent forest. When the mining pits fill with water from the
tailings, they become stagnant water pools. These pools The mining industrys contribution to the countrys GDP is at
create a breeding ground for mosquitoes and other water- 0.6% in 2016.
born insects. Malaria and other water-born diseases increase
significantly whenever open pools of water are nearby. The contribution of minerals and mineral products to the
countrys total exports is at 4% and 0.3% for non-metallic
River dredging involves moving along a river on a platform or mineral manufacturers in 2016.
boat. The miners use a hydraulic suction hose and suction the
gravel and mud as they move along the river. The gravel, mud, The mining industry's gross production value declined in the
and rocks go through the tailings (pipes) and any gold last 2 years. From P208.2 billion ($4.2 billion) in 2014 to only
fragments are collected on felt mats. The remaining gravel, P100.6 billion ($2 billion) in 2016, according to MGB.
mud, and rocks go back into the river, but in a different
location than where it was originally suctioned. This creates The Mining Act of 1995 allows for foreign ownership of mining
problems for the river. The displaced gravel and mud disrupt assets and exploration permits. The Supreme Court upheld the
the natural flow of the river. Fish and other living organisms

CABRAL l GRIAR l PADILLA l RAYOS DEL SOL 1

constitutionality of the foreign investors' participation in
a well sustained community, 4. Mining actually threats
mining activities in 2004.
providing them further with food security and health due

shelter. to water contamination.
Mining tax is low at 2% for metallic and non-metallic minerals.
6. Taxes paid by mining 5. Provinces of Samar,
During the Aquino administration, a mining reform bill was
companies contribute to Surigao, Benguet and
drafted to increase revenues of the government. In the bill,
revenue of local government Zamboanga have the highest
companies will either pay 10% tax on gross revenues or 45% to
See and get pictures here: incidence of poverty despite
55% tax on adjusted mining revenues plus a percentage of
the presence of most mining
windfall profit, whichever is higher.
companies therein.

6. Tax holidays granted to
As of September 2016, there are about 40 metallic mines and
mining companies will not
62 non-metallic mines operating in the country.
benefit the government

There are a total of 1,473 mining applications under process in
the country as of 2016, according to the MGB.
II. ISSUES REGARDING ENVIRONMENT
As of August 2016, mining companies have already committed
P13.1 billion for the development of their host and neighboring WATER
communities under their Social Development and - The most significant impact of a mining project is its
Management Programs, the MGB reported. effects on water quality and availability of water
resources within the project area.
Meanwhile, mining companies have allotted a total of about - Impacts resulting from mining include mine water
P19.1 billion for the implementation of approved projects and discharge into rivers, seas and lakes, leakage from
programs under their Environmental Protection and settling tanks and evaporators that have a negative
Enhancement Programs. effect on the groundwater quality and pumping of
water into the ground for the extraction of a mineral.
From 2011 to 2013, the mining sector committed to reforest
about 34,000 hectares, under the National Greening Program. - Acid mine drainage
By December 2015, more than 47,000 hectares have been o Refers to the outflow of acidic water from a
reforested. mining site
o The increased acidity caused by acid mine
drainage has a range of negative effects.
PROS AND CONS OF o Acid and metals dissolution are the primary
problems associated with pollution from
MINING
mining activities.
o Acid mine drainage is caused by the release
of chemical contaminants into water
resources turning the water acidic
FOR MINING AGAINST MINING
o As a result of this acidity it is unsuitable for
the use of animals, plants, mankind and
1. Not all applications for 1. Mining companies are just aquatic life. It may extend to distances if the
mining are granted re-zoning the beautiful acid water is allowed to get discharged into
2. Lands that are used for places. Not true therefore the main water stream
mining are not viable for that the lands where mines
agriculture or tourism. operated are not suitable for
3. Rehabilitation of other purposes. LAND
abandoned mines had 2. Mining destroys - Because of the large area of land disturbed by mining
become the practice. biodiversity, it cannot and operations and the large quantities of earthen
4. Part of the funds goes to will not restore the natural materials exposed at sites, erosion can be a major
sustainable projects like biodiversity of the place. concern at hardrock mining sites.
education, livelihood 3.Mining is not the only - Huge amount of waste earth and rock brought to the
programs, and the like. source of employment. surface because of underground mining, it becomes
5. The IPs allegedly replaced toxic when it comes into contact with air and water
by mining site is relocated at - Mining can contaminate the soil

CABRAL l GRIAR l PADILLA l RAYOS DEL SOL 2

 - Impacts of tailing impoundments / waste rock Former President Marcos passed Presidential Decree
o It includes contamination of groundwater 1899, defining small-scale mining as "artisanal", thus
and toxic substances can leach from these disallowing sophisticated equipment, involving
facilities minimal investments in infrastructure and processing
- As mines collapse, land above it sinks plants, and relies on manual labour.

AIR June 27, 1991 Peoples Small-Scale Mining Act was passed
- Airborne emissions occur during each stage of the This governs the operation of Small Scale Mining, and
mine cycle, but especially during exploration, identifies, segregates and declares areas viable to be
development, construction and operational activities a "Minahang Bayan." It also forms the Provincial/City
- Particulate matter transported by the wind as a result Mining Regulatory Board that supervises small scale
of excavations, blasting, transportation of materials, mining operations alongside the chiefs of the
wind erosion, waste dumps and emissions from Environment Department and Mining Bureau.
mobile sources.
- The main gaseous emissions are from combustion of December 21, 1991 The DENR declared areas of Diwalwal
fuels in power generation installations, and drying, open to small-scale mining
roasting, and smelting operations. Environment Secretary Factoran Jr. issued Admin.
Order No. 66 which declared parts of the Diwalwal
WILDLIFE gold-rush area in Davao region as open to small-scale
- Mining affects the environment and associated mining.
through removal of vegetation and topsoil, the
In 2008, the government owned Philippine Mining
displacement of fauna, the release of pollutants, and
Development Corp. (PMDC), which has nominal
the generation of noise. authority over the 8,100 hectares that make up the
Diwalwal mineral reservation area, unveiled a new
- Habitat loss plan for developing and sharing the mineral wealth
o Survival of these species can depend on soil that lies beneath Mt. Diwata. The idea, according to
conditions, local climate, altitude, and other
Former PMDC President Oliver Butalid, is to divide
features of the local habitat.
the entire area into three zones, one for each of the
o The impacts stem primarily from disturbing,
powerful but often feuding groups that are laying
removing, and redistributing the land
claim to Mt Diwatas mineral riches.
surface o The first zone, called the Diwalwal
o Most direct effect on wildlife is destruction Integrated Development Area, covers
or displacement of species in areas of the original 729-hectare gold-rush site on
excavation and piling of mine wastes.
Mt. Diwata. It contains the highly

mineralized Balite Vein and will be
PUBLIC HEALTH
developed by the PMDC in close cooperation
- Because of the quantity, concentration, or physical,
with the small-scale miners and mining
chemical or infectious characteristics, hazardous companies already active in the area.
substances may: o The second zone, the Mining Investment
o (1) cause or contribute to an increase of Areas, covers parts of the reservation that
mortality or an increase in serious are generally unpopulated but believed to be
irreversible or incapacitating illness; or
highly mineralized. Rights to mine the
o (2) pose a substantial present or potential
investment areas which include
hazard to human health
Upper Ulip, Paraiso, Buenas Tinago,
Agtuuganon, Letter V, and Higanteng Bato
will be awarded through competitive tender
III. APPLICABLE LAWS to large-scale mining companies.
o The third zone, the Tribal Mining Area, will

be controlled by the tribal communities with
TIMELINE OF PHILIPPINE MINING
ancestral domain claims over portions
LAWS AND POLICIES
of Diwalwal such the Manobos, Mandayas,

Babawans and Manguangans. Tribal leaders
are reportedly in talks with mining
January 23, 1984 Former President Ferdinand Marcos
signed PD 1899 (Small-Scale Mining)

CABRAL l GRIAR l PADILLA l RAYOS DEL SOL 3

 companies that will help them develop the amendments to the Mining Act's provisions on
mines. revenue sharing to Congress.

March 3, 1995 Philippine Mining Act was signed into law October 2012 Implementing Rules of EO 79 was revised and
o President Fidel V. Ramos signed into law the signed
Philippine Mining Act, which liberalizes foreign President Aquino approved the implementing rules
investments in the sector, as well as involves the Local and regulations (IRR) of EO 79 after the mining council
Government and Indigenous Cultural Communities in revised some provisions following industry players'
minerals exploration. President Ramos then enters threats of legal action on the reduced contract term
into a Financial and Technical Assistance Agreement to 25 years from 50.
(FTAA) with foreign-owned Western Mining
Corporation Philippines (Tampakan mine) 27 days

INTERNATIONAL LAWS
after the passing of the Mining Act. The implementing
Rules and Regulations (IRR) was released in August.
Stockholm Declaration is the product of the United Nations
June 19, 1995 La Bugal-Blaan Tribal Association questioned (UN) Conference on the Human Environment held on June 5-
the constitutionality of RA 7942 before the SC 16, 1972. It was the first UN conference specifically to consider
o La Bugal - B'Laan Tribal Association questioned the problems in the environment, adopting a Declaration and
constitutionality of the Mining Act and its IRR, Action Plan.
particularly the FTAA, which allows foreign
ownership, before the Supreme Court. Rio Declaration is one of the outputs of the UN Conference on
Environment and Development (UNCED) held in Rio de Janeiro,
November 25, 2002 Former President Arroyo signed Brazil to elaborate strategies and measures to halt and reverse
Proclamation No. 297 the effects of environmental degradation in the context of
o Former President Arroyo signed Proclamation No. strengthened national and international efforts to promote
297 establishing the 8, 100-hectare Diwalwal Mineral sustainable and environmentally sound development in all
Reservation, paving the way for the government to countries (Sands 2003). It comprises 27 principles that set out
take over the mines. the basis on which states and people are to cooperate and
further develop international law in the field of sustainable
January 2004 SC declared parts of RA 7942 as development. The Rio Declaration provides a benchmark to
unconstitutional measure future developments, provides a basis for defining
o The Supreme Court en banc, with a vote of 8-5 with sustainable development and its application, and provides a
one abstention, held that the Mining Act of 1995 was framework for development of environmental law at the
unconstitutional since it allows foreigners to engage national and international level to guide decision-making.
in mining through FTAAs, which is contradictory to
the 1987 Philippine Constitution. UN Framework Convention on Climate Change (UNFCCC)
establishes a framework for elaborating measures to address
December 2004 SC reversed its decision the causes of climate change; and is an important example of
The Supreme Court reversed previous decision on the the principles of common but differentiated responsibilities
unconstitutionality of the Mining Act. Associate and precautionary action under the Rio Declaration, of the
Justice Artemio Panganiban penned a resolution special needs and circumstances of developing countries,
stating that full control is not anathematic to day-to- sustainable development, and international trade.
day management, provided that the State retains the
power to direct overall strategy. This gave the Kyoto Protocol was adopted in December 1997 after it was
government a go-signal to issue FTAAs. established that States commitments under the UNFCCC were
not adequate, and is regarded as a tool for the implementation
July 2012 Former President Aquino signed EO 79, seeking and enforcement of concrete goals in accordance with the
Mining Act amendments aspirational objectives set forth in the UNFCCC. The major
Former President Aquino signed EO 79, which achievement of the Protocol was the commitment of
imposes a moratorium on new mining contracts. The developed countries to achieve quantified emissions reduction
order also creates a council to identify no-go areas for targets within a timetable. It also proposed to allow developed
mining, implement reforms, and consults countries, otherwise referred to as Annex 1 states, to meet
stakeholders before tossing the proposed their commitments by purchasing or acquiring credits
representing greenhouse gas reductions in other

CABRAL l GRIAR l PADILLA l RAYOS DEL SOL 4

countries. The Clean Development Mech anism further Filipino citizens, small-scale mining shall be recognized as a
established a means for Annex 1 parties to gain emission formal sector of the industry.
reductions credits to assist them in achieving compliance with
their quantified emissions limitation and reduction RA 7942 The Philippine Mining Act of 1995
commitments.
An act instituting a new system of mineral resources
The UNFCCC and the Kyoto Protocol have a particular exploration, development, utilization, and conservation.
implication on mining because of the potential contribution of
mineral activities to climate change. The International Council All mineral resources in public and private lands within the
of Mining and Metals has identified climate change and the territory and exclusive economic zone of the Republic of the
impact of greenhouse gases (GHG) as the most important Philippines are owned by the State. It shall be the responsibility
[environmental] issue, without a doubt to face the mining of the State to promote their rational exploration,
industry. The mining industry faces such climate-related development, utilization and conservation through the
challenges as compliance with local regulatory regimes combined efforts of government and the private sector in order
restricting carbon emissions, supply chain risks (higher costs to enhance national growth in a way that effectively
due to the activities of suppliers), product and technology safeguards the environment and protect the rights of affected
risks (being left behind by changing technology standards), communities. (Section 2)
reputational risks related to sustainability concerns, physical
risks to operations due to extreme weather and litigation Mineral resources are owned by the State and the exploration,
risks. development, utilization, and processing thereof shall be under
its full control and supervision. The State may directly
Convention on Biological Diversity (CBD) aims at the undertake such activities or it may enter into mineral
conservation and sustainable use of biological diversity, the agreements with contractors. The State shall recognize and
fair and equitable sharing of benefits from its use, and the protect the rights of the indigenous cultural communities to
regulation of biotechnology. A significant provision of the CBD their ancestral lands as provided for by the Constitution.
which relates to the mining industry is found in Article 3 (Section 4)
on Principle, which calls on member States, such as the
Philippines, to ensure that use and exploitation of natural Areas Open to Mining Operations (Section 18): Subject to any
resources carries with it a responsibility to ensure the existing rights or reservations and prior agreements of all
protection of the environment and the preservation of parties, all mineral resources in public or private lands,
biological diversity. including timber or forestlands as defined in existing laws, shall
be open to mineral agreements or financial or technical
assistance agreement applications.

LOCAL LAWS Areas Closed to Mining Applications (Section 19): Mineral
agreement or financial or technical assistance agreement
applications shall not be allowed:
Article II of the 1987 Constitution provides that the State shall
protect and advance the right of the Filipino people to a a. In military and other government reservations, except
balanced and healthful ecology in accord with the rhythm and upon prior written clearance by the government
harmony of nature. agency concerned;
b. Near or under public or private buildings, cemeteries,
Section 1, Article XII of the 1987 Constitution seeks a more archeological and historic sites, bridges, highways,
equitable distribution of opportunities, income, and wealth; a waterways, railroads, reservoirs, dams or other
sustained increase in the amount of goods and services infrastructure projects, public or private works
produced by the nation for the benefit of the people; an including plantations or valuable crops, except upon
expanding productivity as the key to raising the quality of life written consent of the government agency or private
for all, especially the underprivileged; and that in the pursuit entity concerned;
of these goals, all sectors of the economy and all regions of the c. In areas covered by valid and existing mining rights;
country shall be given optimum opportunity to develop. d. In areas expressly prohibited by law;
e. In areas covered by small-scale miners as defined by
Section 2, Article XII of the 1987 Constitution provides that law unless with prior consent of the small-scale
the exploration, development, and utilization of mineral miners, in which case a royalty payment upon the
resources shall be under the full control and supervision of the utilization of minerals shall be agreed upon by the
State; recognizes the small-scale utilization of resources by

CABRAL l GRIAR l PADILLA l RAYOS DEL SOL 5

 parties, said royalty forming a trust fund for the
socioeconomic development of the community
concerned; and MINERAL AGREEMENTS
f. Old growth or virgin forests, proclaimed watershed
forest reserves, wilderness areas, mangrove forests, Filing and Approval of Mineral Agreements (Section 29): All
mossy forests, national parks provincial/municipal proposed mineral agreements shall be filed in the region
forests, parks, greenbelts, game refuge and bird where the areas of interest are located, except in mineral
sanctuaries as defined by law and in areas expressly reservations which shall be filed with the Bureau. The filing of
prohibited under the National Integrated Protected a proposal for a mineral agreement shall give the proponent
Areas System (NIPAS) under Republic Act No. 7586, the prior right to areas covered by the same. The proposed
Department Administrative Order No. 25, series of mineral agreement will be approved by the Secretary and
1992 and other laws. copies thereof shall be submitted to the President. Thereafter,
the President shall provide a list to Congress of every approved
Exploration Permit grants the right to conduct exploration mineral agreement within thirty (30) days from its approval by
for all minerals in specified areas; the Bureau shall have the the Secretary.
authprity to grant an exploration permit to a qualified person;
for a period of 2 years subject to annual review and Terms (Section 32): Mineral agreements shall have a term not
relinquishment or renewal upon the recommendation of the exceeding twenty-five (25) years to start from the date of
Director. execution thereof, and renewable for another term not
exceeding twenty-five (25) years under the same terms and
Modes of Mineral Agreement (Section 26): conditions thereof, without prejudice to changes mutually
agreed upon by the parties. After the renewal period, the
a. Mineral production sharing agreement is an operation of the mine may be undertaken by the Government
agreement where the Government grants to the or through a contractor. The contract for the operation of a
contractor the exclusive right to conduct mining mine shall be awarded to the highest bidder in a public bidding
operations within a contract area and shares in the after due publication of the notice thereof: Provided, That the
gross output. The contractor shall provide the contractor shall have the right to equal the highest bid upon
financing, technology, management and personnel reimbursement of all reasonable expenses of the highest
necessary for the implementation of this agreement. bidder.

b. Co-production agreement is an agreement between Financial or Technical Assistance Agreement (FTAA) - may be
the Government and the contractor wherein the entered into between a Contractor and the Government for
Government shall provide inputs to the mining the large-scale exploration, development and utilization of
operations other than the mineral resource. gold, copper, nickel, chromite, lead, zinc and other minerals
except for cement raw materials, marble, granite, sand and
c. Joint venture agreement is an agreement where a gravel and construction aggregates.
joint-venture company is organized by the Government
and the contractor with both parties having equity Qualifications for application:
shares. Aside from earnings in equity, the Government 1. Any Filipino citizen of legal age and with capacity
shall be entitled to a share in the gross output. to contract;
2. a Filipino-owned Corporation, Partnership,
A mineral agreement shall grant to the contractor the exclusive Association or Cooperative, at least sixty percent
right to conduct mining operations and to extract all mineral (60%) of the capital is owned by Filipino citizens,
resources found in the contract area. In addition, the organized or authorized for the purpose of
contractor may be allowed to convert his agreement into any engaging in mining with technical and financial
of the modes of mineral agreements or financial or technical capability to undertake mineral resources
assistance agreement covering the remaining period of the development and duly registered in accordance
original agreement subject to the approval of the Secretary. with the law; or
3. a Foreign-owned Corporation, Partnership,
Eligibility (Section 27): In case the applicant has been in the Association or Cooperative duly registered in
mining industry for any length of time, he should possess a accordance with law and in which less than fifty
satisfactory environmental track record as determined by the percent (50%) of the capital is owned by Filipino
Mines and Geosciences Bureau and in consultation with the citizens.
Environmental Management Bureau of the Department.

CABRAL l GRIAR l PADILLA l RAYOS DEL SOL 6

Term of FTAA (Section 38): A financial or technical assistance provided in Section 1 of the EO, subject to review by the
agreement shall have a term not exceeding twenty-five (25) Secretary thru the Director.
years to start from the execution thereof, renewable for not
more than twenty-five (25) years under such terms and The following mineralized areas onshore may be
conditions as may be provided by law. declared by the Board as Minahang Bayan:

a. Areas already occupied and actively mined by small-
Option to Convert into a Mineral Agreement (Section 39): The scale miners before August 1, 1987: Provided, (i) That
contractor has the option to convert the financial or technical such areas are not considered as active mining areas;
assistance agreement to a mineral agreement at any time (ii) that the minerals found therein are technically and
during the term of the agreement, if the economic viability of commercially suitable for small-scale mining; and (iii)
the contract area is found to be inadequate to justify large- that the areas are not covered by existing forest rights
scale mining operations, after proper notice to the Secretary or concessions and have not been declared as tourist
as provided for under the implementing rules and regulations: or protected areas, unless their status as such are
Provided, That the mineral agreement shall only be for the withdrawn by competent authority;
remaining period of the original agreement. b. Public lands covered by mining applications, such as:

In the case of a foreign contractor, it shall reduce its equity to 1. Areas covered by pending mining applications
forty percent (40%) in the corporation, partnership, wherein the minerals intended to be mined as
association, or cooperative. Upon compliance with this declared by the applicant, are different from the
requirement by the contractor, the Secretary shall approve the minerals intended for small-scale mining, as
conversion and execute the mineral production-sharing determined by the Regional Director; or
agreement. 2. Areas covered by denied mining applications but with
pending appeal with the Bureau or Department
Minerals Processing Permit (Section 55): No person shall Central Office: Provided, (i) That a royalty in escrow
engage in the processing of minerals without first securing a due the mining applicant shall be deposited by the
minerals processing permit from the Secretary. Minerals small-scale mining contractor(s) concerned. This
processing permit shall be for a period of five (5) years royalty shall be in the amount based on the prevailing
renewable for like periods but not to exceed a total term of standard rate in the locality. Where there is no
twenty-five (25) years. In the case of mineral ores or minerals prevailing standard royalty or no previous royalty
produced by the small-scale miners, the processing thereof as payment is involved or has been arranged, the royalty
well as the licensing of their custom mills, or processing plants payment shall be equivalent to an amount not less
shall continue to be governed by the provisions of Republic Act than one and one half percent (1 %%) of the gross
No. 7076. value of the gold, silver or chromite mineral output or
one percent (1%) of the gross value of the non-
DAO 2015 - 03; Revised Implementing Rules and Regulations metallic mineral output; (ii) that the royalty in escrow
of Small Scale Mining Act: No small-scale mining shall be shall be paid to the mining applicant concerned upon
undertaken outside a Minahang Bayan and that no entity shall approval of the pertinent mining application; (iii) that
engage in small-scale mining without a small-scale mining in case the application is denied with finality, the
contract. Likewise, no person shall work or be hired to work in royalty in escrow shall be released to the small-scale
small-scale mining and other similar operations unless mining contractor(s) concerned.
registered with the Board.
c. Public lands covered by existing mining
Registration of Small-Scale Miners: All persons undertaking or permit(s)/contract(s) which are not active mining
intending to undertake small-scale mining shall register as areas, such as:
small-scale miners with the Board, subject to the submission
of a valid government issued identification card and proof of 1. Areas previously covered by mining
Filipino citizenship. For the above purpose, the Board shall permit(s)/contract(s) that have been cancelled or
maintain a registry of small-scale miners within its jurisdiction. revoked notwithstanding any pending appeal:
Provided,
Areas Open for Declaration as Minahang Bayan: The Board
shall have the authority to declare and set aside Minahang (i) That a royalty in escrow due the holders of
Bayan in mineralized areas onshore suitable for small-scale mining permit(s)/contract(s) shall be deposited
mining, except in areas closed to mining applications as

CABRAL l GRIAR l PADILLA l RAYOS DEL SOL 7

 by the small-scale mining contractor(s) a. Public lands not subject to any existing right;
concerned; b. Public lands covered by existing mining rights which
(ii) that in case the cancelled or revoked mining are not active mining areas; and
permit(s)/contract(s) is(are) reinstated, the c. Private lands, subject to certain rights and conditions,
royalty in escrow shall be paid to the holders of except those with substantial improvements or in
mining permit(s)/contract(s); bona fide and regular use as a yard, stockyard,
(iii) that in case the mining permit(s)/contract(s) garden, plant nursery, plantation, cemetery or burial
is(are) cancelled or revoked with finality, the site, or land situated within one hundred meters (100
royalty in escrow shall be released to the small- m.) from such cemetery or burial site, water reservoir
scale mining contractor(s) concerned; or a separate parcel of land with an area often
thousand square meters (10,000 sq.m.) or less.
2. Areas covered by valid and existing mining
permits/contracts: Provided, That: No ancestral land may be declared as a people's small-scale
mining area without the prior consent of the cultural
a. For vein type or alluvial gold and/or silver or chromite communities concerned: provided, that, if ancestral lands are
deposits having a mineralized area(s) exceeding 500 declared as people's small-scale mining areas, the members of
hectares, a maximum of 25% of the mining the cultural communities therein shall be given priority in the
permit/contract area above 500 hectares may be awarding of small-scale mining contracts.
declared as Minahang Bayan: P vided, That the Registration of Small-scale Miners: All persons
minimum area to be declared as Minahang Bayan is undertaking small-scale mining activities shall register
twenty (20) hectares (equivalent to of a meridional as miners with the Board and may organize
block of 30" of latitude and 30" of longitude); themselves into cooperatives in order to qualify for
b. For non-metallic mineral deposits having mineralized the awarding of a people's small-scale mining
areas exceeding 1,000 hectares, a maximum of 25% contract.
of the mining permit/contract area above 1,000 Rights of Claimowners: In case a site declared and set
hectares may be declared as Minahang Bayan: P aside as a people's-scale mining area is covered by an
vided, That the minimum area to be declared as existing mining right, the claimowner and the small-
Minahang Bayan is twenty (20) hectares (equivalent scale miners therein are encouraged to enter into a
to of a meridional block of 30" of latitude and 30" of voluntary and acceptable contractual agreement with
longitude); or respect to the small-scale utilization of the mineral
c. The holder of the mining permit/contract consents to values from the area under claim. In case of
the declaration of his/herlits permit/contract area or disagreement, the claimowner shall be entitled to the
pa s thereof as a Minahang Bayan. following rights and privileges:

The holder of mining permit/contract shall be entitled to a. Exemption from the performance of annual work
royalty payment as agreed upon by the parties concerned or in obligations and payment of occupation fees, rental,
an amount based on the prevailing standard royalty rate in the and real property taxes;
locality. Where there is no prevailing standard royalty, the b. Subject to the approval of the Board, free access to
royalty payment shall be equivalent to an amount not less than the contract area to conduct metallurgical tests,
one and one half percent (1 %%) of the gross value of the gold, explorations and other activities, provided such
silver or chromite mineral output or one percent of the gross activities do not unduly interfere with the operations
value of the non-metallic mineral output. of the small-scale miners; and
c. Royalty equivalent to one and one half percent (1
RA 7076 Peoples Small-Scale Mining Act of 1991 1/2%) of the gross value of the metallic mineral
To promote, develop, protect a rationalize viable small-scale output or one percent (1%) of the gross value of the
mining activities in order to generate more employment nonmetallic mineral output to be paid to the
opportunities and provide an equitable sharing of the nation's claimowner: provided, that such rights and privileges
wealth and natural resources, giving due regard to existing shall be available only if he is not delinquent and
rights as herein provided. other performance of his annual work obligations and
other requirements for the last two (2) years prior to
The following lands, when suitable for small- scale mining, may the effectivity of this Act.
be declared by the Board as people's small-scale mining areas:

CABRAL l GRIAR l PADILLA l RAYOS DEL SOL 8

Rights of Private Landowners: The private landowner or lawful on the National Tourism Development Plan, (b) agricultural
possessor shall be notified of any plan or petition to declare his lands, including an area in Leyte (c) island ecosystems
land as a people's small-scale mining area. Said landowner may identified by the National Integrated Protected Areas System
oppose such plan or petition in an appropriate proceeding and (NIPAS).
hearing conducted before the Board. If a private land is
declared as a people's small-scale mining area, the owner and A Mining Industry Coordinating Council (MICC) is created to
the small-scale mining contractors are encouraged to enter implement the EO and other industry reforms, conduct
into a voluntary and acceptable contractual agreement for the dialogue with stakeholders, and review all existing mining-
small-scale utilization of the mineral values from the private related laws and rules. The council will be co-chaired by the
land: provided, that the owner shall in all cases be entitled to chairpersons of the Climate Change Adaptation and Mitigation
the payment of actual damages which he may suffer as a result and the Economic Development clusters of the Cabinet. Other
of such declaration: provided, further, that royalties paid to members will include the Justice Secretary, the chairperson of
the owner shall in no case exceed one percent (1%) of the gross the National Commission on Indigenous Peoples (NCIP) and
value of the minerals recovered as royalty. the president of the Union of Local Authorities of the
Philippines (ULAP). The MICC will work with the Department of

Environment and Natural Resources (DENR) to complete the
Sale of Gold: All gold produced by small-scale miners in any implementing rules and regulations of the EO within 60 days.
mineral area shall be sold to the Central Bank, or its duly
authorized representatives, which shall buy it at prices On the primacy of national laws, particularly Republic Act No.
competitive with those prevailing in the world market 7492 or the Philippine Mining Act of 1995, the local
regardless of volume or weight. The Central Bank shall government units that host mining operations are directed to
establish as many buying stations in gold-rush areas to fully conform to the regulations, decisions and policies
service the requirements of the small-scale minerals thereat. promulgated and taken by the National Government.

EO 79 Institutionalizing and implementing reforms in the All existing mining contracts, agreements and concessions
Philippine mining sector providing policies and guidelines to approved before the effectivity of the EO are still considered
ensure environmental protection and responsible mining in valid. However, DENR shall likewise undertake a review of
the utilization of mineral resources existing mining contracts and agreements for possible
renegotiation of the terms and conditions of the same, which
o On the revenue sharing scheme -- which is the most shall in all cases be mutually acceptable to the government and
contentious aspect of the EO -- the government will the mining contractor.
work to legislate a rationalization of the current
scheme and mechanisms. Meantime, the EO imposes For better transparency and governance, the DENR will
a moratorium on the approval of new mineral commit to participate in and implement the global standards
agreements. No new mineral agreements shall be specified by the Extractive Industries Transparency Initiative
entered into until a legislation rationalizing existing (EITI), and create a centralized industry database and a map
revenue sharing schemes and mechanisms shall have system.
taken effect.

Small scale mining activities will be limited to areas declared IV. CONCLUSION AND RECOMMENDATION
as "Minahang Bayan," in effect also limiting most areas where
there are nickel operations. Most nickel miners operate on MINING, in simple terms, is gouging the Earth to obtain
small scale permits as they await approval for their permits for minerals needed in our daily lives. There is no doubt that
medium or large-scale operations. Small scale shall not be Mining is environmentally harmful. It results to pollution,
applicable for metallic minerals except gold, silver, and ocean acidification, global warming, and destruction of the
chromite. ecosystem of the community. It is the main contributor to
climate change yet there are still so many mining companies
To address environmental concerns, the EO bans the use of operating.
mercury in small scale mining, which, in turn, will have to be
part of a specific "Minahang Bayan" area. Why are there numerous mining companies? And why is the
government not apprehending them?
Three types of areas will be added to the current no-go zones 1. Mining is legal. Laws are actually there to restrict but not to
for mining. These are (a) tourism destinations, which total prohibit. In fact, laws gave tax holidays (2%) to mining
around 78 sites identified by the Department of Tourism based companies.

CABRAL l GRIAR l PADILLA l RAYOS DEL SOL 9

2. Mining is economically sustainable, increases economic demand from these things if we do not become
status of country (more investors = more government materialistic)
revenues) 3. Do not live beyond your means. Filipinos give
3.Mining companies insist responsible mining through emphasis on having nice cars and as many cars as
rehabilitation project possible. The materials used for the cars are minerals
4. Since almost all the products we consume and use have extracted. So, using public transportation or
minerals, there is a very high demand of such. maintaining only the needed number of cars could
lessen this demand.
With the above given, we can conclude that Mining is purely a 4. Substitution of materials that need minerals to a
MAN MADE CALAMITY. There is no one to blame but us. more environmentally friendly material. Example:
Since we consume and use abundant (almost all) products that instead of metal to build infrastructure, plastics could
demand more mineral productions, we give mining companies be used
prospective consumers.

Since we are problem, we must also be the solution. SOURCES:

What then can we do? Alcoa Jamalco Reaches Bauxite Milestone Using Sustainable Transport System,
<http://www.businesswire.com/news/home/20110913006311/en/Alcoa-
As to mining companies:
Jamalco-Reaches-Bauxite-Milestone-Sustainable-Transport>(visited May 20,
1. Use renewable energy in operating mines to reduce 2017).
CO2 emissions:
a. Solar power in Chile Effects of Mining on the Environment and Human Health,
<https://www.environment.co.za/mining-2/effects-of-mining.html>(visited
b. Wind turbines in Denmark
May 22, 2017).
c. RopeCon in Jamaica (instead of using trucks
and excavation machines which releases George Ochieng, Ephrahim Seanego and Onyeka Nkwonta, Impact of minng on
more CO2, this mode of transporting the water resources in South Africa: A review, October 2010.

minerals from one end to another saves
Gerard Brimo, Correcting lies and disinformation,
1200 truck journeys. This transport also <http://www.rappler.com/thought-leaders/2241-correcting-lies-and-
generates 1200kW green energy to power disinformation>(visited May 22, 2017).
the mine)
Guidebook for Evaluating Mining Project EIAs, July 2010.
2. Ensure that they have facilities that would isolate

waters within their site, to not affect the neighboring Johan Randhem and Jenny-Ann Nillson, Environmental Impacts and Health
community. Aspects in the Mining Industry, 2008.
3. Conduct successful mine closure and reclamation
La Vina, De Leon & Bueta, Legal Responses to the Impact of
rehabilitation.
Mining,<http://plj.upd.edu.ph/legal-responses-to-the-impact-of-
4. Research on mining alternatives: mining/>(visited May 24, 2017).
a. Bio-mining (uses bacteria to breakdown
minerals from rocks. This is less toxic, less Stanislaw Dudka and Domy Adriano. Environmental Impacts of Metal Ore
Mining and Processing: A Review, May 1997.
emission of CO2)

b. Solvent Extraction Electrowinning: process Timeline: Philippine Mining Law and Policies, <http://www.rappler.com/why-
of using cyanide in mineral extraction which mining/15910-timeline-philippine-mining-laws-and-policies>(visited May 21,
as the effect of multiplying or increasing the 2017).

mined minerals (the more minerals
What is mining?,
produced, the less digging we need) http://kids.mongabay.com/lesson_plans/lisa_algee/mining.html#riKsCEGrpG
6eH4kx.99(visted May 26, 2017).
As to the government:
1. Impose appropriate taxes. Do not grant tax holidays.
2. Strictly enforce the laws.
3. Be rigorous in approving mining applications

As to individuals: BE SIMPLE. CHANGE LIFESTYLE.
1. Avoid purchasing sodas in tin cans
2. Do not splurge on things if not needed (since our
things like wrist watch, computers, and etc. have
extracted minerals as material, we can lower the

CABRAL l GRIAR l PADILLA l RAYOS DEL SOL 10