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Huwebes, Disyembre 1, 2011

Republic Act No. 7076 People’s Small-Scale Mining Act (1991)

Undeniably the Philippines is endowed with large deposits of minerals like gold silver, cobalt, copper and the like.
With these natural endowments, the exploitation of minerals contributes largely to the growth of the national economy.
But these mining operations have adverse effects on the ecological balance. The large-scale extraction and usage of
mineral resources are inherently and essentially polluting. They consist of the excavation and permanent removal of the
minerals from their deposited positions, and thereafter their burning fuel or other utilization. From the stage of
exploration to extraction, mining has consistently inflicted some degree of damage to the environment either through the
pollution of rivers and seabeds, the acidification of agricultural plains or the unwanted pollution it creates. These negative
environmental effects are the externalities which arise out of the profit-oriented decisions of mining firms. It is through
the use of the regulatory powers of the State that the private sector is compelled to shoulder the costs of these
externalities.

It is for these reasons that mining legislation was enacted to oblige environmental protection measures to be
undertaken by mining operators. One of this laws enacted by our esteemed legislators is Republic Act No. 7076 (1991),
“People’s Small-Scale Mining Act.”

OVERVIEW OF THE LAW

Republic Act No. 7076 (1991), otherwise known as the “People’s Small-Scale Mining Act” defines small-scale mining as
minimum activities which rely heavily on manual labor using simple implements and methods, and which do not use
explosives or heavy mining equipment. The main purpose of the law is: (1) To effect an orderly and systematic disposition
of small-scale mining areas in the country; (2) To regulate the small-scale mining industry with the view to encourage their
growth and productivity; and (3) To provide technical, financial and marketing assistance and efficient collection of
government revenues. Through this law, the harmful effects of the classic trade-off between development and
environment could be minimized if not totally avoided. This law was authored by Senator Aquilino Pimentel Jr.

With Republic Act 7076 it allows small miners under this law to use only simple equipments like pick and shovel in
extracting gold and other precious metals in their mining areas. In this age of modern technology, this law is making sure
that the small mining law should benefit the small miners and not only the big-time operators who are using the skills and
sweat of small-scale miners to accumulate a fortune.

Under RA 7076, no ancestral land may be declared as a people’s small scale mining area without the prior consent of the
cultural communities concerned. This respects the rights of the indigenous peoples to their ancestral lands which are fully
guaranteed under existing laws. The law defines small miners as Filipino citizens who, individually or in tandem with
others, voluntarily form a cooperative, duly licensed by the Department of Environment and Natural Resources, to engage
in the extraction or removal of minerals or ore-bearing materials from the ground.

HIGHLIGHTS
 It’s implementing rules lay down the powers and functions of the Department of Environment and Natural Resources,
the Provincial/City Mining Regulatory Board and in coordination with other concerned government agencies. The DENR
together with the other concerned government agencies is designed to achieve an orderly, systematic and rational
scheme for the small-scale development and utilization of mineral resources in certain mineral areas in order to address
the social, economic, technical, and environmental connected with small-scale mining activities.

While the Provincial/City Mining Regulatory Board (PCMRB) created under the direct supervision and control of the
Secretary which is the board of PCMRB, is the implementing agency of the Department of Environment and Natural
Resources which has the powers and function subject to review by the Secretary.

PROHIBITED ACTS

Awarded contracts may canceled on the following grounds:

1. Non-Compliance with the terms and conditions of the contract and that of existing mining laws, rules and regulations
including those pertaining to mine safety, environmental protection and conservation, tree cutting, mineral processing
and pollution control;

2. Non.-compliance with the contractor's obligations to existing mining claim holders/private landowners as stipulated in
Section 13, 17 and 18 of this Order;

3. Non-payment of fees, taxes, royalties or government share in accordance with this Order and existing mining laws;

4. Abandonment of mining site by the contractor; and

5. Ejectment from the People's Small-scale Mining Area of the Contractor by the government for reasons of national
interest and security.

PENALTIES/FINES

When contracts are canceled for grounds from the abovementioned, the Secretary may impose fines of an amount
not less than Twenty Thousand Pesos (P20, 000.00) but not more than One Hundred Thousand Pesos (P100, 000.00).
Non-payment of the fine imposed shall render the small-scale mining contractor ineligible for other small-scale mining
contracts.

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Small Scale Mining Laws in the Philippines

mrcheapjustice

8 years ago

Clarificatory Guidelines In The Implementation Of

The Small-Scale Mining Laws

I. Co-existence of the Small-Scale Mining Laws

PD No. 1899 and RA No. 7076 shall continue to govern small-scale mining operations. For areas not declared as People’s
Small-Scale Mining area (PSSMA) under RA No. 7076, the pertinent rules and regulations of PD 1899 shall apply.

Mines Administrative Order No. MRD-41, Series of 1984, Department Administrative Order (DAO) No. 28
and MRDB Administrative Order Nos. 3 and 3A as provided in DAO No. 96-40, as amended, shall continue to be the
implementing rules and regulations of PD No. 1899, while DAO No. 34, Series of 1992, shall continue to be the
implementing rules and regulations of RA No. 7076.

II. Scope of Small-Scale Mining Permits and Contracts

Small-scale mining operations in areas not declared as PSSMA shall be covered by Small-Scale Mining Permits (SSMPs)
issued under PD No. 1899. Small-scale mining operations in PSSMAs declared under RA No. 7076 shall be covered by
Small-Scale Mining Contracts (SSMCs) pursuant to the pertinent provisions thereof.

In case, where a PSSMA is declared covering SSMP areas, the term of the SSMPs, including their renewal, shall be
recognized unless such SSMPs are revoked, cancelled or terminated with the cause: Provided, that the SSMP shall have
the option to shift to a SSMC pursuant to the provisions of DAO No. 34, Series of 1997.

III. Term of a Small-Scale Mining Permit or Contact

The two (2)-year term of an SSMP is renewable only once: Provided, that the pertinent application shall be filed prior to
the expiration thereof, among other requirements. No SSMP shall be renewed unless its two (2)-year term is fully
consumed.

In the case of an SSMC, no renewal shall likewise be granted unless its two(2)-year term is fully consumed.

IV. Qualification of Applicants

For PD No. 1899, any Qualified Person may apply for an SSMP. For this purpose, a Qualified Person shall mean a Filipino
citizen, of legal age, and with capacity to contract, or a corporation of partnership authorized to engage in mining,
registered with the Securities and Exchange Commission, at least 60% of the capital of which is owned t all times by
Filipino citizens.

For RA No. 7076, only a Filipino small-scale mining cooperative organized by licensed and registered small-scale miners
may apply.

V. Maximum Annual Production

For metallic minerals, the maximum annual production under an SSMP/SSMC shall be 50,000 dry metric tons (DMT) of
ore, while for non-metallic minerals, the maximum annual production shall be 50,000 DMT of the material itself, e.g.,
50,000 DMT of limestone, 50,000 DMT of silica, or 50,000 DMT of perlite.

The maximum annual production above shall include low-grade and/or marginal ore, and/or minerals or rocks that are
intended for sampling and/or metallurgical testing purpose/s.

VI. Maximum Capital Investment

The maximum capital investment for a single small-scale mining operation under PD No. 1899 or R.A. No. 7076
shall be PHP 10 Million. This shall cover raw, additional and existing capital, such as processing plants, mine and hauling
equipment, tools, infrastructures, capitalized exploration and development costs, support facilities and working capital.

VII. Reliance on Manual Labor

Small-scale mining operations under P.D. 1899 or RA No. 7076 shall be largely artisanal with heavy reliance on manual
labor and without the use of explosives and/or blasting accessories. For this purpose, a single unit small-scale mining
operation, in open cast or shallow underground, shall be prohibited from using sophisticated and/or heavy equipment,
i.e., excavators, loaders, backhoes, dozers, drilling machines and/or related or similar equipment for the extraction and/or
breakage of materials, as well as hauling equipment within the mining/permit/contract area.

VII. Reliance on Manual Labor

Hauling equipment for the transport of the ore or mined materials from the mine to the shipping point/market are not
included in the prohibited use of sophisticated and/or heavy equipment.

In case non-sophisticated and non-heavy equipment shall be use, the ratio of labor cost to equipment utilization cost of
the small-scale mining operations, including the extraction, processing and/or marketing activity(ies), shall not exceed on
(1) for this purpose, the rental, lease and/or contracting of such equipment shall be considered as part of the equipment
utilization.

VIII. Environmental, Safety and Health, and Concerns

The SSMP/SSMC holder shall strictly comply with the environmental, safety and health, and social provisions of R.A.
No. 7942, the Philippine Mining Act of 1995, the Small-Scale Mining Laws and their implementing rules and regulations,
among others.

VIII. Environmental, Safety and Health, and Concerns

In particular, the SSMP/SSMC holder shall comply with the following requirements:
The Environmental Compliance Certificate (ECC) for a small-scale mining operation shall be secured from the
Environmental Management Bureau Regional Office concerned and shall fully conform with the provisions of the Small-
Scale Mining Laws, especially with respect to the annual production limit of 50,000 DMT, area of 20 hectares per
permit/contact, among others.

The following documents shall be required prior to the start of small-scale mining under a SSMP/SSMC:

Potential Environment Impact Report, which is a simplified Environmental Protection and Enhancement Program, and a
Final Mine Rehabilitation/Decommissioning Plan duly approved by the Mine Rehabilitation Fund Committee concerned.

Community Development and Management Program, a simplified Social Development and Management Program, duly
approved by the Mines and Geosciences Bureau Regional Office concerned.

Small-Scale mining operations shall strictly comply with the provisions of DAO No. 97-30 in re: Small-Scale Mine Safety
Rules and Regulations.

Categories: Environmental Law

Tags: DENR, PMRB, Provincial Mining Regulatory Board, Small Scale Mining

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