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TIMELINE OF PHILIPPINE MINING LAWS AND POLICIES1 in minerals exploration.

President Ramos then enters into a Finan-


cial and Technical Assistance Agreement (FTAA) with foreign-
January 23, 1984 Former President Ferdinand Marcos signed PD 1899 owned Western Mining Corporation Philippines (Tampakan mine)
(Small-Scale Mining) 27 days after the passing of the Mining Act. The implementing Rules
Former President Marcos passed Presidential Decree 1899, defin- and Regulations (IRR) was released in August.
ing small-scale mining as "artisanal", thus disallowing sophisticated
equipment, involving minimal investments in infrastructure and
June 19, 1995 La Bugal-Blaan Tribal Association questioned the constitu-
processing plants, and relies on manual labour.
tionality of RA 7942 before the SC

La Bugal - B'Laan Tribal Association questioned the constitutionality


June 27, 1991 Peoples Small-Scale Mining Act was passed
of the Mining Act and its IRR, particularly the FTAA, which allows
This governs the operation of Small Scale Mining, and identifies,
foreign ownership, before the Supreme Court.
segregates and declares areas viable to be a "Minahang Bayan." It
also forms the Provincial/City Mining Regulatory Board that super-
vises small scale mining operations alongside the chiefs of the En- November 25, 2002 Former President Arroyo signed Proclamation No. 297
vironment Department and Mining Bureau. Former President Arroyo signed Proclamation No. 297 establishing
the 8, 100-hectare Diwalwal Mineral Reservation, paving the way
for the government to take over the mines.
December 21, 1991 The DENR declared areas of Diwalwal open to small-
scale mining
Environment Secretary Factoran Jr. issued Admin. Order No. 66
which declared parts of the Diwalwal gold-rush area in Davao re- January 2004 SC declared parts of RA 7942 as unconstitutional
gion as open to small-scale mining. The Supreme Court en banc, with a vote of 8-5 with one abstention,
held that the Mining Act of 1995 was unconstitutional since it al-
lows foreigners to engage in mining through FTAAs, which is con-
In 2008, the government owned Philippine Mining Develop-
tradictory to the 1987 Philippine Constitution.
ment Corp. (PMDC), which has nominal authority over the 8,100
hectares that make up the Diwalwal mineral reservation area, un-
veiled a new plan for developing and sharing the mineral wealth December 2004 SC reversed its decision
that lies beneath Mt. Diwata. The Supreme Court reversed previous decision on the unconstitu-
tionality of the Mining Act. Associate Justice Artemio Panganiban
penned a resolution stating that full control is not anathematic to
The idea, according to Former PMDC President Oliver Butalid, is to day-to-day management, provided that the State retains the power
divide the entire area into three zones, one for each of the power- to direct overall strategy. This gave the government a go-signal to
ful but often feuding groups that are laying claim to Mt Diwatas issue FTAAs.
mineral riches.

July 2012 Former President Aquino signed EO 79, seeking Mining Act
o The first zone, called the Diwalwal Integrated Develop- amendments
ment Area, covers the original 729-hectare gold-rush Former President Aquino signed EO 79, which imposes a morato-
site on Mt. Diwata. It contains the highly mineralized rium on new mining contracts. The order also creates a council to
Balite Vein and will be developed by the PMDC in close identify no-go areas for mining, implement reforms, and consults
cooperation with the small-scale miners and mining stakeholders before tossing the proposed amendments to the Min-
companies already active in the area. ing Act's provisions on revenue sharing to Congress.

October 2012 Implementing Rules of EO 79 was revised and signed


o The second zone, the Mining Investment Areas, covers
President Aquino approved the implementing rules and regulations
parts of the reservation that are generally unpopulated
(IRR) of EO 79 after the mining council revised some provisions fol-
but believed to be highly mineralized. Rights to mine the
lowing industry players' threats of legal action on the reduced con-
investment areas which include Upper Ulip, Paraiso,
tract term to 25 years from 50.
Buenas Tinago, Agtuuganon, Letter V, and Higan-
teng Bato will be awarded through competitive ten-
der to large-scale mining companies.

o The third zone, the Tribal Mining Area, will be con-


trolled by the tribal communities with ancestral domain
claims over portions of Diwalwal such the Manobos,
Mandayas, Babawans and Manguangans. Tribal leaders
are reportedly in talks with mining companies that will
help them develop the mines.

March 3, 1995 Philippine Mining Act was signed into law


President Fidel V. Ramos signed into law the Philippine Mining Act,
which liberalizes foreign investments in the sector, as well as in-
volves the Local Government and Indigenous Cultural Communities

1
Timeline: Philippine Mining Law and Policies, last retrieved at
http://www.rappler.com/why-mining/15910-timeline-philippine-mining-laws-
and-policies
INTERNATIONAL LAWS2 LOCAL LAWS3

1) Article II of the 1987 Constitution provides that the State shall pro-
1) Stockholm Declaration is the product of the United Nations (UN)
tect and advance the right of the Filipino people to a balanced and
Conference on the Human Environment held on June 5-16, 1972. It
healthful ecology in accord with the rhythm and harmony of na-
was the first UN conference specifically to consider problems in the
ture.
environment, adopting a Declaration and Action Plan.
2)
Section 1, Article XII of the 1987 Constitution seeks a more equi-
2) Rio Declaration is one of the outputs of the UN Conference on En-
table distribution of opportunities, income, and wealth; a sustained
vironment and Development (UNCED) held in Rio de Janeiro, Brazil
increase in the amount of goods and services produced by the na-
to elaborate strategies and measures to halt and reverse the effects
tion for the benefit of the people; an expanding productivity as the
of environmental degradation in the context of strengthened na-
key to raising the quality of life for all, especially the underprivi-
tional and international efforts to promote sustainable and envi-
leged; and that in the pursuit of these goals, all sectors of the econ-
ronmentally sound development in all countries (Sands 2003). It
omy and all regions of the country shall be given optimum oppor-
comprises 27 principles that set out the basis on which states and
tunity to develop.
people are to cooperate and further develop international law in
3)
the field of sustainable development. The Rio Declaration provides
Section 2, Article XII of the 1987 Constitution provides that the ex-
a benchmark to measure future developments, provides a basis for
ploration, development, and utilization of mineral resources shall
defining sustainable development and its application, and provides
be under the full control and supervision of the State; recognizes
a framework for development of environmental law at the national
the small-scale utilization of resources by Filipino citizens, small-
and international level to guide decision-making.
scale mining shall be recognized as a formal sector of the industry.
3) UN Framework Convention on Climate Change (UNFCCC) estab-
4) RA 7942 The Philippine Mining Act of 1995
lishes a framework for elaborating measures to address the causes
An act instituting a new system of mineral resources explora-
of climate change; and is an important example of the principles of
tion, development, utilization, and conservation.
common but differentiated responsibilities and precautionary ac-
All mineral resources in public and private lands within the territory
tion under the Rio Declaration, of the special needs and circum-
and exclusive economic zone of the Republic of the Philippines are
stances of developing countries, sustainable development, and in-
owned by the State. It shall be the responsibility of the State to pro-
ternational trade.
mote their rational exploration, development, utilization and con-
servation through the combined efforts of government and the pri-
4) Kyoto Protocol was adopted in December 1997 after it was estab-
vate sector in order to enhance national growth in a way that effec-
lished that States commitments under the UNFCCC were not ade-
tively safeguards the environment and protect the rights of affected
quate, and is regarded as a tool for the implementation and en-
communities. (Section 2)
forcement of concrete goals in accordance with the aspirational ob-
jectives set forth in the UNFCCC. The major achievement of the Pro- Mineral resources are owned by the State and the exploration, de-
tocol was the commitment of developed countries to achieve quan- velopment, utilization, and processing thereof shall be under its full
tified emissions reduction targets within a timetable. It also pro- control and supervision. The State may directly undertake such ac-
posed to allow developed countries, otherwise referred to as An- tivities or it may enter into mineral agreements with contractors.
nex 1 states, to meet their commitments by purchasing or acquiring The State shall recognize and protect the rights of the indigenous
credits representing greenhouse gas reductions in other coun- cultural communities to their ancestral lands as provided for by the
tries. The Clean Development Mech anism further established a Constitution. (Section 4)
means for Annex 1 parties to gain emission reductions credits to
Areas Open to Mining Operations (Section 18): Subject to any ex-
assist them in achieving compliance with their quantified emissions
isting rights or reservations and prior agreements of all parties, all
limitation and reduction commitments.
mineral resources in public or private lands, including timber or for-
estlands as defined in existing laws, shall be open to mineral agree-
5) The UNFCCC and the Kyoto Protocol have a particular implication
ments or financial or technical assistance agreement applications.
on mining because of the potential contribution of mineral activi-
ties to climate change. The International Council of Mining and
Areas Closed to Mining Applications (Section 19): Mineral agree-
Metals has identified climate change and the impact of greenhouse
ment or financial or technical assistance agreement applications
gases (GHG) as the most important [environmental] issue, without
shall not be allowed:
a doubt to face the mining industry. The mining industry faces such
climate-related challenges as compliance with local regulatory re-
a. In military and other government reservations, except
gimes restricting carbon emissions, supply chain risks (higher costs
upon prior written clearance by the government agency con-
due to the activities of suppliers), product and technology risks
cerned;
(being left behind by changing technology standards), reputational
risks related to sustainability concerns, physical risks to opera-
b. Near or under public or private buildings, cemeteries, ar-
tions due to extreme weather and litigation risks.
cheological and historic sites, bridges, highways, waterways,
railroads, reservoirs, dams or other infrastructure projects,
6) Convention on Biological Diversity (CBD) aims at the conservation
public or private works including plantations or valuable
and sustainable use of biological diversity, the fair and equitable
crops, except upon written consent of the government
sharing of benefits from its use, and the regulation of biotechnol-
agency or private entity concerned;
ogy. A significant provision of the CBD which relates to the mining
industry is found in Article 3 on Principle, which calls on member
c. In areas covered by valid and existing mining rights;
States, such as the Philippines, to ensure that use and exploitation
of natural resources carries with it a responsibility to ensure the
d. In areas expressly prohibited by law;
protection of the environment and the preservation of biological
diversity.

2 3
La Vina, De Leon & Bueta, Legal Responses to the Impact of Mining, last Id.
retrieved May 24, 2017 at http://plj.upd.edu.ph/legal-responses-to-the-impact-
of-mining/
e. In areas covered by small-scale miners as defined by law Eligibility (Section 27): A qualified person may enter into any of the
unless with prior consent of the small-scale miners, in which three (3) modes of mineral agreement with the government for the
case a royalty payment upon the utilization of minerals shall exploration, development and utilization of mineral resources: Pro-
be agreed upon by the parties, said royalty forming a trust vided, that in case the applicant has been in the mining industry for
fund for the socioeconomic development of the community any length of time, he should possess a satisfactory environmental
concerned; and track record as determined by the Mines and Geosciences Bureau
and in consultation with the Environmental Management Bureau of
f. Old growth or virgin forests, proclaimed watershed forest the Department.
reserves, wilderness areas, mangrove forests, mossy forests,
national parks provincial/municipal forests, parks, green-
belts, game refuge and bird sanctuaries as defined by law Mineral Agreements
and in areas expressly prohibited under the National Inte-
grated Protected Areas System (NIPAS) under Republic Act
Maximum Areas for Mineral Agreement (Section 28)
No. 7586, Department Administrative Order No. 25, series of
1992 and other laws. The maximum area that a qualified person may hold at any time un-
der a mineral agreement shall be:
a. Onshore, in any one province
Exploration Permit grants the right to conduct exploration for all
minerals in specified areas; the Bureau shall have the authprity to 1. for individuals, ten (10) blocks; and
grant an exploration permit to a qualified person; for a period of 2
2. for partnerships, cooperatives, associations, or corpo-
years subject to annual review and relinquishment or renewal upon
rations, one hundred (100) blocks.
the recommendation of the Director.
b. Onshore, in the entire Philippines
1. for individuals, twenty (20) blocks; and
Maximum Areas for Exploration Permit (Section 22): The maximum
area that a qualified person may hold at any one time shall be: 2. for partnerships, cooperatives, associations, or corpo-
rations, two hundred (200) blocks.
a. Onshore, in any one province
c. Offshore, in the entire Philippines
1. for individuals, twenty (20) blocks: and
1. for individuals fifty (50) blocks;
2. for partnerships, corporations, cooperatives, or asso-
ciations, two hundred (200) blocks. 2. for partnerships, cooperatives, associations, or corpo-
rations, five hundred (500) blocks; and
b. Onshore, in the entire Philippines
3. for the exclusive economic zone, a larger area to be
1. for individuals, forty (40) blocks; and
determined by the Secretary.
2. for partnerships, corporations, cooperatives, or asso-
The maximum areas mentioned above that a contractor may hold
ciations, four hundred (400) blocks.
under a mineral agreement shall not include mining/quarry areas
c. Offshore, beyond five hundred meters (500m) from the under operating agreements between the contractor and a
mean low tide level: claimowner/lessee/permittee/licensee entered into under Presi-
dential Decree No. 463.
1. for individuals, one hundred (100) blocks; and
2. for partnerships, corporations, cooperatives, or asso-
Filing and Approval of Mineral Agreements (Section 29): All pro-
ciations, one thousand (1,000) blocks.
posed mineral agreements shall be filed in the region where the areas
of interest are located, except in mineral reservations which shall be
filed with the Bureau. The filing of a proposal for a mineral agreement
Modes of Mineral Agreement (Section 26):
shall give the proponent the prior right to areas covered by the same.
a. Mineral production sharing agreement is an agreement where the The proposed mineral agreement will be approved by the Secretary
Government grants to the contractor the exclusive right to conduct and copies thereof shall be submitted to the President. Thereafter,
mining operations within a contract area and shares in the gross out- the President shall provide a list to Congress of every approved min-
put. The contractor shall provide the financing, technology, manage- eral agreement within thirty (30) days from its approval by the Secre-
ment and personnel necessary for the implementation of this agree- tary.
ment.
b. Co-production agreement is an agreement between the Govern- Assignment/Transfer (Section 30): Any assignment or transfer of
ment and the contractor wherein the Government shall provide in- rights and obligations under any mineral agreement except a financial
puts to the mining operations other than the mineral resource. or technical assistance agreement shall be subject to the prior ap-
proval of the Secretary. Such assignment or transfer shall be deemed
c. Joint venture agreement is an agreement where a joint-venture
automatically approved if not acted upon by the Secretary within
company is organized by the Government and the contractor with
thirty (30) working days from official receipt thereof, unless patently
both parties having equity shares. Aside from earnings in equity, the
unconstitutional or illegal.
Government shall be entitled to a share in the gross output.
A mineral agreement shall grant to the contractor the exclusive
Withdrawal from Mineral Agreements (Section 31): The contractor
right to conduct mining operations and to extract all mineral re-
may, by giving due notice at any time during the term of the agree-
sources found in the contract area. In addition, the contractor may be
ment, apply for the cancellation of the mineral agreement due to
allowed to convert his agreement into any of the modes of mineral
causes which, in the opinion of the contractor, make continued min-
agreements or financial or technical assistance agreement covering
ing operations no longer feasible or viable. The Secretary shall con-
the remaining period of the original agreement subject to the ap-
sider the notice and issue its decision within a period of thirty (30)
proval of the Secretary.
days: Provided, that the contractor has met all its financial, fiscal and
legal obligations.
g. The mining operations shall be conducted in accordance with the
Terms (Section 32): Mineral agreements shall have a term not ex- provisions of this Act and its implementing rules and regulations;
ceeding twenty-five (25) years to start from the date of execution
h. Work programs and minimum expenditures commitments;
thereof, and renewable for another term not exceeding twenty-five
(25) years under the same terms and conditions thereof, without prej- i. Preferential use of local goods and services to the maximum ex-
udice to changes mutually agreed upon by the parties. After the re- tent practicable;
newal period, the operation of the mine may be undertaken by the
j. A stipulation that the contractors are obligated to give preference
Government or through a contractor. The contract for the operation
to Filipinos in all types of mining employment for which they are
of a mine shall be awarded to the highest bidder in a public bidding
qualified and that technology shall be transferred to the same;
after due publication of the notice thereof: Provided, That the con-
tractor shall have the right to equal the highest bid upon reimburse- k. Requiring the proponent to effectively use appropriate anti-pol-
ment of all reasonable expenses of the highest bidder. lution technology and facilities to protect the environment and to
restore or rehabilitate mined out areas and other areas affected by
mine tailings and other forms of pollution or destruction;
Financial or Technical Assistance Agreement (FTAA)
l. The contractors shall furnish the Government records of geologic,
accounting, and other relevant data for its mining operations, and
that book of accounts and records shall be open for inspection by
Eligibility (Section 33): Any qualified person with technical and finan-
the government;
cial capability to undertake large-scale exploration, development, and
utilization of mineral resources in the Philippines may enter into a fi- m. Requiring the proponent to dispose of the minerals and byprod-
nancial or technical assistance agreement directly with the Govern- ucts produced under a financial or technical assistance agreement
ment through the Department. at the highest price and more advantageous terms and conditions
as provided for under the rules and regulations of this Act;
Maximum Contract Area (Section 34): The maximum contract area
that may be granted per qualified person, subject to relinquishment n. Provide for consultation and arbitration with respect to the in-
shall be: terpretation and implementation of the terms and conditions of
the agreements; and
a. 1,000 meridional blocks onshore;
o. Such other terms and conditions consistent with the Constitution
b. 4,000 meridional blocks offshore; or
and with this Act as the Secretary may deem to be for the best in-
c. Combinations of a and b provided that it shall not exceed the terest of the State and the welfare of the Filipino people.
maximum limits for onshore and offshore areas.
Terms and Conditions (Section 35):
Filing and Evaluation of Financial or Technical Assistance Agreement
a. A firm commitment in the form of a sworn statement, of an Proposals (Section 37): All financial or technical assistance agreement
amount corresponding to the expenditure obligation that will be proposals shall be filed with the Bureau after payment of the required
invested in the contract area: Provided, That such amount shall be processing fees. If the proposal is found to be sufficient and meritori-
subject to changes as may be provided for in the rules and regula- ous in form and substance after evaluation, it shall be recorded with
tions of this Act; the appropriate government agency to give the proponent the prior
right to the area covered by such proposal: Provided, That existing
b. A financial guarantee bond shall be posted in favor of the Gov-
mineral agreements, financial or technical assistance agreements and
ernment in an amount equivalent to the expenditure obligation of
other mining rights are not impaired or prejudiced thereby. The Sec-
the applicant for any year;
retary shall recommend its approval to the President.
c. Submission of proof of technical competence, such as, but not
limited to, its track record in mineral resource exploration, devel-
Term of FTAA (Section 38): A financial or technical assistance agree-
opment, and utilization; details of technology to be employed in
ment shall have a term not exceeding twenty-five (25) years to start
the proposed operation; and details of technical personnel to un-
from the execution thereof, renewable for not more than twenty-five
dertake the operation;
(25) years under such terms and conditions as may be provided by
d. Representations and warranties that the applicant has all the law.
qualifications and none of the disqualifications for entering into the
agreement;
Option to Convert into a Mineral Agreement (Section 39): The con-
e. Representations and warranties that the contractor has or has tractor has the option to convert the financial or technical assistance
access to all the financing, managerial and technical expertise and, agreement to a mineral agreement at any time during the term of the
if circumstances demand, the technology required to promptly and agreement, if the economic viability of the contract area is found to
effectively carry out the objectives of the agreement with the un- be inadequate to justify large-scale mining operations, after proper
derstanding to timely deploy these resources under its supervision notice to the Secretary as provided for under the implementing rules
pursuant to the periodic work programs and related budgets, when and regulations: Provided, That the mineral agreement shall only be
proper, providing an exploration period up to two (2) years, extend- for the remaining period of the original agreement.
ible for another two (2) years but subject to annual review by the
In the case of a foreign contractor, it shall reduce its equity
Secretary in accordance with the implementing rules and regula-
to forty percent (40%) in the corporation, partnership, association, or
tions of this Act, and further, subject to the relinquishment obliga-
cooperative. Upon compliance with this requirement by the contrac-
tions;
tor, the Secretary shall approve the conversion and execute the min-
f. Representations and warranties that, except for payments for eral production-sharing agreement.
dispositions for its equity, foreign investments in local enterprises
which are qualified for repatriation, and local supplier's credits and
Assignment/Transfer (Section 40): A financial or technical assistance
such other generally accepted and permissible financial schemes
agreement may be assigned or transferred, in whole or in part, to a
for raising funds for valid business purposes, the contractor shall
qualified person subject to the prior approval of the President: Pro-
not raise any form of financing from domestic sources of funds,
vided, That the President shall notify Congress of every financial or
whether in Philippine or foreign currency, for conducting its mining
technical assistance agreement assigned or converted in accordance
operations for and in the contract area;
with this provision within thirty (30) days from the date of the ap- b. Investments in commercial mining activities from both domestic
proval thereof. and international sources shall be promoted in accordance with
State policies and the principles and objectives herein stated.
Withdrawal from FTAA (Section 41): The contractor shall manifest in
writing to the Secretary his intention to withdraw from the agree-
c. The granting of mining rights shall harmonize existing activities,
ment, if in his judgment the mining project is no longer economically
policies and programs of the Government that directly or indirectly
feasible, even after he has exerted reasonable diligence to remedy
promote self-reliance, development and resource management.
the cause or the situation. The Secretary may accept the withdrawal:
Activities, policies and programs that promote community-based,
Provided, That the contractor has complied or satisfied all his finan-
community-oriented and processual development shall be encour-
cial, fiscal or legal obligations.
aged, consistent with the principles of people empowerment and
grassroots development.
Mineral Trading Registration (Section 54): No person shall engage in
the trading of mineral products, either locally or internationally, un-
less registered with the Department of Trade and Industry and ac-
credited by the Department, with a copy of said registration submit-
6) DAO 2015 - 03; Revised Implementing Rules and Regulations of
ted to the Bureau.
Small Scale Mining Act
No small-scale mining shall be undertaken outside a Mi-
Minerals Processing Permit (Section 55): No person shall engage in
nahang Bayan and that no entity shall engage in small-scale mining
the processing of minerals without first securing a minerals pro-
without a small-scale mining contract. Likewise, no person shall
cessing permit from the Secretary. Minerals processing permit shall
work or be hired to work in small-scale mining and other similar
be for a period of five (5) years renewable for like periods but not to
operations unless registered with the Board.
exceed a total term of twenty-five (25) years. In the case of mineral
ores or minerals produced by the small-scale miners, the processing
thereof as well as the licensing of their custom mills, or processing
Registration of Small-Scale Miners: All persons undertaking or in-
plants shall continue to be governed by the provisions of Republic Act
tending to undertake small-scale mining shall register as small-
No. 7076.
scale miners with the Board, subject to the submission of a valid
government issued identification card and proof of Filipino citizen-
ship. For the above purpose, the Board shall maintain a registry of
5) DENR Administrative Order (DAO) No. 2010-21 Revised Imple-
small-scale miners within its jurisdiction.
menting Rules and Regulations of R.A. 7942, otherwise known as
the Philippine Mining Act of 1995 Areas Open for Declaration as Minahang Bayan: The Board shall
have the authority to declare and set aside Minahang Bayan in min-
providing for a consolidated Department of Environment and Nat-
eralized areas onshore suitable for small-scale mining, except in ar-
ural Resources Administrative Order for the Implementing Rules and Regula-
eas closed to mining applications as provided in Section 1 of the EO,
tions of RA 7942.
subject to review by the Secretary thru the Director.
The following mineralized areas onshore may be declared by the
In implementing the policy stated in the preceding Section, the Department Board as Minahang Bayan:
shall adhere to the principle of sustainable development which meets the
a.) Areas already occupied and actively mined by small-scale
needs of the present without compromising the ability of the future genera-
miners before August 1, 1987: Provided, (i) That such areas are
tions to meet their own needs, with the view of improving the total quality of
not considered as active mining areas; (ii) that the minerals
life, both now and in the future. Consequently:
found therein are technically and commercially suitable for
a. Mineral resource exploration, development, utilization and conservation small-scale mining; and (iii) that the areas are not covered by
shall be governed by the principle of sustainable mining, which provides that existing forest rights or concessions and have not been de-
the use of mineral wealth shall be pro- environment and pro-people in sustain- clared as tourist or protected areas, unless their status as such
ing wealth creation and improved quality of life under the following terms: are withdrawn by competent authority;
1. Mining is a temporary land use for the creation of wealth which b.) Public lands covered by mining applications, such as:
leads to an optimum land use in the post-mining stage as a result
1. Areas covered by pending mining applications wherein
of progressive and engineered mine rehabilitation work done in cy-
the minerals intended to be mined as declared by the ap-
cle with mining operations;
plicant, are different from the minerals intended for small-
2. Mining activities must always be guided by current best practices scale mining, as determined by the Regional Director; or
in environmental management committed to reducing the impacts
2. Areas covered by denied mining applications but with
of mining and effectively and efficiently protecting the environ-
pending appeal with the Bureau or Department Central Of-
ment;
fice: Provided, (i) That a royalty in escrow due the mining
3. The wealth accruing to the Government and communities as a re- applicant shall be deposited by the small-scale mining con-
sult of mining should also lead to other wealth- generating oppor- tractor(s) concerned. This royalty shall be in the amount
tunities for people and to other environment-responsible endeav- based on the prevailing standard rate in the locality.
ors; Where there is no prevailing standard royalty or no previ-
ous royalty payment is involved or has been arranged, the
4. Mining activities shall be undertaken with due and equal emphasis
royalty payment shall be equivalent to an amount not less
on economic and environmental considerations, as well as for
than one and one half percent (1 %%) of the gross value of
health, safety, social and cultural concerns; and
the gold, silver or chromite mineral output or one percent
5. Conservation of minerals is effected not only through recycling of (1%) of the gross value of the non-metallic mineral output;
mineral-based products to effectively lengthen the usable life of (ii) that the royalty in escrow shall be paid to the mining
mineral commodities but also through the technological efficiency applicant concerned upon approval of the pertinent min-
of mining operations. ing application; (iii) that in case the application is denied
with finality, the royalty in escrow shall be released to the c) Private lands, subject to certain rights and conditions,
small-scale mining contractor(s) concerned. except those with substantial improvements or in bona
fide and regular use as a yard, stockyard, garden, plant
c.) Public lands covered by existing mining permit(s)/con-
nursery, plantation, cemetery or burial site, or land situ-
tract(s) which are not active mining areas, such as:
ated within one hundred meters (100 m.) from such
1. Areas previously covered by mining permit(s)/con- cemetery or burial site, water reservoir or a separate
tract(s) that have been cancelled or revoked notwithstand- parcel of land with an area often thousand square me-
ing any pending appeal: Provided, ters (10,000 sq.m.) or less.
(i) That a royalty in escrow due the holders of mining
permit(s)/contract(s) shall be deposited by the small-
No ancestral land may be declared as a people's small-scale mining
scale mining contractor(s) concerned;
area without the prior consent of the cultural communities con-
(ii) that in case the cancelled or revoked mining per- cerned: provided, that, if ancestral lands are declared as people's
mit(s)/contract(s) is(are) reinstated, the royalty in es- small-scale mining areas, the members of the cultural communities
crow shall be paid to the holders of mining per- therein shall be given priority in the awarding of small-scale mining
mit(s)/contract(s); contracts.
(iii) that in case the mining permit(s)/contract(s) Registration of Small-scale Miners: All persons undertaking small-
is(are) cancelled or revoked with finality, the royalty scale mining activities shall register as miners with the Board and
in escrow shall be released to the small-scale mining may organize themselves into cooperatives in order to qualify for
contractor(s) concerned; the awarding of a people's small-scale mining contract.
2. Areas covered by valid and existing mining permits/con- Rights of Claimowners: In case a site declared and set aside as a
tracts: Provided, That: people's-scale mining area is covered by an existing mining right,
a) For vein type or alluvial gold and/or silver or chro- the claimowner and the small-scale miners therein are encouraged
mite deposits having a mineralized area(s) exceed- to enter into a voluntary and acceptable contractual agreement
ing 500 hectares, a maximum of 25% of the mining with respect to the small-scale utilization of the mineral values from
permit/contract area above 500 hectares may be the area under claim. In case of disagreement, the claimowner shall
declared as Minahang Bayan: P vided, That the min- be entitled to the following rights and privileges:
imum area to be declared as Minahang Bayan is (a) Exemption from the performance of annual work obliga-
twenty (20) hectares (equivalent to of a meridional tions and payment of occupation fees, rental, and real prop-
block of 30" of latitude and 30" of longitude); erty taxes;
b) For non-metallic mineral deposits having mineral- (b) Subject to the approval of the Board, free access to the
ized areas exceeding 1,000 hectares, a maximum of contract area to conduct metallurgical tests, explorations
25% of the mining permit/contract area above and other activities, provided such activities do not unduly
1,000 hectares may be declared as Minahang interfere with the operations of the small-scale miners; and
Bayan: P vided, That the minimum area to be de-
clared as Minahang Bayan is twenty (20) hectares (c) Royalty equivalent to one and one half percent (1 1/2%)
(equivalent to of a meridional block of 30" of lati- of the gross value of the metallic mineral output or one per-
tude and 30" of longitude); or cent (1%) of the gross value of the nonmetallic mineral out-
put to be paid to the claimowner: provided, that such rights
c) The holder of the mining permit/contract consents and privileges shall be available only if he is not delinquent
to the declaration of his/herlits permit/contract and other performance of his annual work obligations and
area or pa s thereof as a Minahang Bayan. other requirements for the last two (2) years prior to the ef-
The holder of mining permit/contract shall be entitled to fectivity of this Act.
royalty payment as agreed upon by the parties concerned or in Rights of Private Landowners: The private landowner or lawful pos-
an amount based on the prevailing standard royalty rate in the sessor shall be notified of any plan or petition to declare his land as
locality. Where there is no prevailing standard royalty, the roy- a people's small-scale mining area. Said landowner may oppose
alty payment shall be equivalent to an amount not less than such plan or petition in an appropriate proceeding and hearing con-
one and one half percent (1 %%) of the gross value of the gold, ducted before the Board. If a private land is declared as a people's
silver or chromite mineral output or one percent of the gross small-scale mining area, the owner and the small-scale mining con-
value of the non-metallic mineral output. tractors are encouraged to enter into a voluntary and acceptable
contractual agreement for the small-scale utilization of the mineral
values from the private land: provided, that the owner shall in all
cases be entitled to the payment of actual damages which he may
7) RA 7076 Peoples Small-Scale Mining Act of 1991 suffer as a result of such declaration: provided, further, that royal-
To promote, develop, protect a rationalize viable small- ties paid to the owner shall in no case exceed one percent (1%) of
scale mining activities in order to generate more employment op- the gross value of the minerals recovered as royalty.
portunities and provide an equitable sharing of the nation's wealth
and natural resources, giving due regard to existing rights as herein Sale of Gold: All gold produced by small-scale miners in any mineral
provided. area shall be sold to the Central Bank, or its duly authorized repre-
sentatives, which shall buy it at prices competitive with those pre-
The following lands, when suitable for small- scale min- vailing in the world market regardless of volume or weight. The
ing, may be declared by the Board as people's small- Central Bank shall establish as many buying stations in gold-rush
scale mining areas: areas to fully service the requirements of the small-scale minerals
thereat.
a) Public lands not subject to any existing right;
People's Small-scale Mining Protection Fund: There is hereby cre-
b) Public lands covered by existing mining rights which ated a People's Small-scale Mining Protection Fund which shall be
are not active mining areas; and fifteen percent (15%) of the national government's share due the
Government which shall be used primarily for information dissem- Extractive Industries Transparency Initiative (EITI), and create a
ination and training of small-scale miners on safety, health and en- centralized industry database and a map system.
vironmental protection, and the establishment of mine rescue and
recovery teams including the procurement of rescue equipment Applications for mineral contracts, concessions, and agreements
necessary in cases of emergencies such as landslides, tunnel col- shall not be allowed in the following:
lapse, or the like. The fund shall also be made available to address a) Areas expressly enumerated under Section 19 of RA No.
the needs of the small-scale miners brought about by accidents 7942;
and/or fortuitous events. b) Protected areas categorized and established under the Na-
tional Integrated Protected Areas System (NIPAS) under RA
No. 7586;
c) Prime agricultural lands, in addition to lands covered by RA
8) EO 79 Institutionalizing and implementing reforms in the Philip- No. 6657, or the Comprehensive Agrarian Reform Law of
pine mining sector providing policies and guidelines to ensure en- 1988, as amended, including plantations and areas devoted
vironmental protection and responsible mining in the utilization to valuable crops, and strategic agriculture and fisheries de-
of mineral resources velopment zones and fish refuge and sanctuaries declared as
such by the Secretary of the Department of Agriculture (DA);
On the revenue sharing scheme -- which is the most contentious d) Tourism development areas, as identified in the National
aspect of the EO -- the government will work to legislate a rational- Tourism Development Plan (NTDP); and
ization of the current scheme and mechanisms. Meantime, the EO e) Other critical areas, island ecosystems, and impact areas of
imposes a moratorium on the approval of new mineral agreements. mining as determined by current and existing mapping tech-
No new mineral agreements shall be entered into until a legislation nologies, that the DENR may hereafter identify pursuant to
rationalizing existing revenue sharing schemes and mechanisms existing laws, rules, and regulations, such as, but not limited
shall have taken effect. to, the NIPAS Act.

Small scale mining activities will be limited to areas declared as Mining contracts, agreements, and concessions approved before
"Minahang Bayan," in effect also limiting most areas where there the effectivity of this Order shall continue to be valid, binding, and
are nickel operations. Most nickel miners operate on small scale enforceable so long as they strictly comply with existing laws, rules,
permits as they await approval for their permits for medium or and regulations and the terms and conditions of the grant thereof.
large-scale operations. Small scale shall not be applicable for me- For this purpose, review and monitoring of such compliance shall
tallic minerals except gold, silver, and chromite. be undertaken periodically.

To address environmental concerns, the EO bans the use of mer-


cury in small scale mining, which, in turn, will have to be part of a
specific "Minahang Bayan" area.

Three types of areas will be added to the current no-go zones for
mining. These are (a) tourism destinations, which total around 78
sites identified by the Department of Tourism based on the Na-
tional Tourism Development Plan, (b) agricultural lands, including
an area in Leyte (c) island ecosystems identified by the National In-
tegrated Protected Areas System (NIPAS).

A Mining Industry Coordinating Council (MICC) is created to im-


plement the EO and other industry reforms, conduct dialogue with
stakeholders, and review all existing mining-related laws and rules.
The council will be co-chaired by the chairpersons of the Climate
Change Adaptation and Mitigation and the Economic Development
clusters of the Cabinet. Other members will include the Justice Sec-
retary, the chairperson of the National Commission on Indigenous
Peoples (NCIP) and 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 im-
plementing rules and regulations of the EO within 60 days.

On the primacy of national laws, particularly Republic Act No. 7492


or the Philippine Mining Act of 1995, the local government units
that host mining operations are directed to conform to the regula-
tions, decisions and policies promulgated and taken by the National
Government.

All existing mining contracts, agreements and concessions ap-


proved before the effectivity of the EO are still considered valid.
However, DENR shall likewise undertake a review of existing mining
contracts and agreements for possible renegotiation of the terms
and conditions of the same, which shall in all cases be mutually ac-
ceptable to the government and the mining contractor.
For better transparency and governance, the DENR will commit to
participate in and implement the global standards specified by the

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