DECLARATION OF

MINAHANG BAYAN AND

AWARDING OF SSM
CONTRACTS
 RA 7076
AN ACT CREATING A PEOPLE’S
SMALL SCALE MINING PROGRAM
AND FOR OTHER PURPOSES -
“PEOPLE’S SMALL-SCALE MINING ACT
OF 1991”

MAY 30, 1991

 DECLARATION OF POLICY
It is hereby declared the policy of the
State to promote, develop, protect and
rationalize viable small-scale mining
activities in order to generate more
employment opportunities and provide an
equitable sharing of the nation’s wealth
and natural resources, giving due regard
to existing rights…..
Section 2 of Republic Act No. 7076
 DENR AO NO. 34

IMPLEMENTING RULES AND

REGULATIONS OF THE “PEOPLE’S
SMALL-SCALE MINING ACT OF
1991”

JULY 14, 1992

 Small Scale Mining

– Small scale mining as defined by Republic Act

No. 7076, refers to mining activities which rely
heavily on manual labor using simple
implements and methods and do not use
explosives or heavy equipment.

Sec 4.IRR.RA 7076

 People’s Small Scale Mining
Program (Features)
A. The identification, segregation and
reservation of certain mineral lands as
PSSMA;
B. The recognition of prior existing rights and
productivity;
C. The encouragement of the formation of
cooperatives;
D. The extension of technical and financial
assistance, and other social services;
 People’s Small Scale Mining
Program (Features)
E. The extension of assistance in processing
and marketing;
F. The generation of ancillary livelihood
activities;
G. The regulation of the small-scale mining
industry with the view to encourage
growth and productivity; and
H. The efficient collection of government
revenue.
 Declaration of PSSMA
Sec 6.IRR.RA 7076

The Board (PMRB) created under RA 7076

shall have the authority to declare and set
aside People’s Small-Scale Mining Areas in
sites onshore suitable for small-scale
mining operations subject to review by the
DENR Secretary thru the Director
Composition of the PMRB
Sec 23.IRR.RA 7076
 Representative from DENR RO – Chairman
 Governor/ his “DA” Representative – VChairman
 Small-scale Mining Representative – Member
 Large-scale Mining Representative - Member
 Representative from a NGO – Member

 Staff Support to the Board to be provided by the

Department
Power and Functions of PMRB
Sec 22.IRR.RA7076
 Declares and segregates existing gold-
rush area for small-scale mining;
 Reserves for the future, mineralized
areas/mineral lands for people’s small-
scale mining;
 Award contracts to small-scale miner’s
cooperative
Power and Functions of PMRB
Sec 22.IRR.RA7076
 Formulates and implements rules and
regulations related to RA 7076;

 Settles disputes, conflicts or litigations over

conflicting claims within ninety (90) days upon
filing of protest or complaints; Provided. That
any aggrieved party may appeal within five (5)
days from the Board’s decision to the Secretary
for final resolution, otherwise the same is
considered final and executory; and

 Performs such other functions as may be

necessary to achieve the goals and objectives of
RA 7076.
Onshore Areas That May Be Declared
by the Board as PSSMA

 Areas already occupied and actively mined by Small Scale

Miners before August 1, 1987. Provided, that

- such areas are not considered as active mining areas;

- the minerals found therein are technically and commercially

suitable for small-scale mining activities;

- the areas are not covered by existing forest rights or reservations

and have not been declared as tourist or marine reserves, parks and
wildlife reservations, unless their status as such are withdrawn by
competent authority.

 Public lands not subject to any existing right;

Onshore Areas That May Be Declared
by the Board as PSSMA

 Public lands covered by existing mining rights

which are not active mining areas;

 Private lands, subject to certain rights and

conditions, except those of with substantial
improvements or in bonafide and regular use as
yard, stockyard, garden, plant nursery,
plantation, cemetery or burial site, or land
situated within 100 meters from such cemetery
or burial site, water reservoir or a separate
parcel of land with an area of 10,000 square
meters or less;
Onshore Areas That May Be Declared
by the Board as PSSMA

 Ancestral lands with prior consent from the cultural communities

concerned. Provided, that -
- if ancestral lands are declared as PSSMA, the members of the
cultural communities therein shall be given priority in the awarding
of small-scale mining contracts.
- in cases where Indigenous Cultural Communities (ICCs) concerned
refuse to allow their areas to be declared a People’s Small Scale
Mining Area, their customary rights to their ancestral land shall be
recognized and protected.

 Areas occupied by a community of traditional small scale

miners, subject to the approval of the said community. Where
they refuse to allow their areas to be declared a People’s Small
Scale Mining Area, their customary rights under their mining
traditions shall be recognized and protected.
PROCEDURES IN THE DECLARATION
OF A PSSMA - 1

 PETITION/REQUEST from any interested

party for declaration of an area as PSSMA
filed with the Board
PROCEDURES IN THE DECLARATION
OF A PSSMA - 2

 EVALUATION OF AREA whether same is

technically or economically viable
PROCEDURES IN THE DECLARATION
OF A PSSMA - 3

 IDENTIFICATION OF OTHER AREAS technically

and economically viable for small-scale mining
upon the initiative of the DENR or authorized
body
PROCEDURES IN THE DECLARATION
OF A PSSMA - 4

 ISSUANCE OF NOTICES by the Board to

claimowners, operators, private
landowners and non-governmental
organizations concerned, government
agencies and cultural communities for
clearance and consent as the case maybe.
PROCEDURES IN THE DECLARATION
OF A PSSMA - 5

 POSTING/PUBLICATION of notices on
provincial or city/municipal halls and/or
MGB office and other conspicuous places,
and/or publication in a newspaper of local
or national circulation once a week for two
(2) consecutive weeks.
PROCEDURES IN THE DECLARATION
OF A PSSMA - 6

 SEGREGATION OF PROPOSED AREAS for

small scale mining purposes upon
completion of the necessary documents,
subject to review of the Secretary within
30 working days from date of receipt of
the proposal for such segregation from the
Board
PROCEDURES IN THE DECLARATION
OF A PSSMA - 7

 DECLARATION OF AREAS AS PSSMA by

the Board in the event that the area to be
segregated and declared for such purpose
is found to be in order by the Secretary
after the 30-day period of review thereof
 Application to Enter Into a
Small Scale Mining Contract
Registered SSM cooperative files application
together with the following:

1. Payment Application Fee of P30.00/hectare

2. Certified True Copy of Articles of Incorporation
3. Information on the geographical
coordinates of the applied area,
20 hectares maximum
 Application to Enter Into a
Small Scale Mining Contract
Board determines Area Status within Fifteen (15)
days (working) upon receipt of Application

Written Notice requesting the applicant to submit a

proposed contract shall be sent by the Board if
area is free from conflict

In case of conflict/s, the Board shall resolve the

same within five (5) working days from the
date of discovery thereof
 Requirements for
Small Scale Mining Contract
(Features of the Proposed Contract)

1. Mode of agreement (i.e. Co-production,

Joint Venture or Mineral Production
Sharing Agreement)
2. Terms and Conditions of the Contract
3. Rights of the small-scale mining
contractor
 Requirements for
Small Scale Mining Contract
(Attachment to the Proposed Contact)

1. Survey Plan prepared by a deputized

Geodetic Engineer including field notes
cover and duly notarized descriptive
Survey Report
2. Mining plan prepared by a registered
Mining Engineer
3. Environmental Compliance
Certificate (ECC)
Award of People’s Small Scale
Mining Contract

The Board evaluate, negotiate and award,

subject to review by the Secretary within fifteen
(15) days
- Start mining operations within 1 year
- Priority to residents of the province,
municipality
 Terms and Conditions of
Small Scale Mining Contract
(Two-Year Term Renewable for Like Periods)

1. Undertake mining activities only in accordance

with a mining plan duly approved by the
Board;
2. Abide by the mine safety rules and regulations
and other rules and regulations which may be
promulgated by the DENR Secretary;
3. Comply with his obligations
to the holder of an existing
mining right/s, if applicable
 Terms and Conditions of
Small Scale Mining Contract
(Two-Year Term Renewable for Like Periods)
4. Pay all fees, taxes, royalties or government production
share as are now or may hereafter be provided by law;
5. Comply with pertinent rules and regulations on
environmental protection and conservation, particularly
those on tree-cutting, mineral processing and pollution
control;
6. File under oath at the end of each month a detailed
production report and annual
financial report to the Board; and
7. Assume responsibility for the
safety of persons working in the
mines.
FISCAL AND REGULATORY PROVISIONS
Sec 26.IRR.RA 7076
 Income Tax as provided in the National Revenue
Code
 Special Import (if applicable)
 Tariff Duties (if applicable)
 Value Added Tax as provided in EO 273
 Real Property Tax (if applicable)
 Excise Tax except gold to
Central Bank w/c are considered
for export
FISCAL AND REGULATORY PROVISIONS
Sec 26.IRR.RA 7076
 Government Share which shall be paid to the
Municipality or City Treasurer where mining
claims are located, and shall be apportioned in
accordance with the Local Government Code of
1991
 Payment of Fees and Other Charges
- Application Fee of P30.00/hectare
- Occupation Fee of P50.00 per
hectare, paid to the Municipality
where contract area is located
 Small Scale Mining
Section 42. Small Scale Mining – Small
scale mining shall continue to be
governed by Republic Act No. 7076 and
other pertinent laws.

Chapter VII of Republic Act No. 7942

Section 14, DAO 2012-07, IRR of EO 79

MEASURES TO IMPROVE SMALL-SCALE
MINING ACTIVITIES
(Sec 14 DAO No. 2012-07, IRR of EO No. 79)

 Compliance with RA No. 7076

 Compliance with the Environmental Impact

Statement system requirements under PD No.
1586

 Hydraulicking (water jetting), compressor mining

and the use of mercury in SSM operations shall
be strictly prohibited
 REQUIREMENTS
(PRIOR TO ISSUANCE OF SSMC – DAO 2012-7, IRR of EO No. 79)

 ECC secured thru an EIS from EMB

 Potential Environmental Report (PEIR) which is

a simplified EPEP, and Final Mine Rehabilitation
Plan/Decommissioning Plan (FMRP/DP) duly
approved by the MGB-RO concerned

 Community Development and Management Plan

(CDMP), a simplified Social Development and
Management Program duly approved by the
MGB-RO concerned
 Malagintong Araw sa
Inyong Lahat
at
Maraming Salamat Po !