Philippine Mining Law:

Issues & Concerns

Mr. Benjamin A. Cabrido Jr.

Professor on Environmental Law
University of San Jose – Recoletos
College of Law, Cebu City
Introduction
 We must therefore encourage and support the
'ecological conversion' which in recent decades has
made humanity more sensitive to the catastrophe to
which it has been heading.
 Man is no longer the Creator's 'steward', but an
autonomous despot, who is finally beginning to
understand that he must stop at the edge of the
abyss". [Pope John Paul II 17 January 2001]
Outline
 Philippine Mining Law of 1995 & its IRR
 People’s Small Scale Mining Act of 1991 & its IRR
 The La Bugal & Didipio Cases: Did they resolve the
issues affecting Mining?
 Issues & Concerns
 Environment
 Indigenous People
 Labor
 Corruption
 Other issues and concerns
 Conclusion
Republic Act No. 7942

The Philippine Mining Act of 1995

Previous Laws on On-shore Mining
 Royal Decree of May 14, 1867
 Art. 339 of the Civil Code of Spain
 Philippine Bill of 1902 as amended on Feb. 6, 1905
 Act No. 624
 P.D 463, May 17, 1974
 P.D 1281, Jan. 16, 1978 as amended by P.D 1654 on
Dec. 14, 1979
Laws Governing Other Minerals
 For coal: Act No. 2719 (The Coal Land Act) and P.D.
No. 972.
 For petroleum: R.A. No. 387 (Petroleum Act of 1949)
as amended & P.D. No. 87
State Policy on Mining
 Assertion of Jura Regalia.
 Rational exploration, development, utilization and
conservation.
 Public and Private Participation.
 National Growth without impairment of the
environment.
 Protection of the Indigenous People’s Rights.
Jurisdiction Panel of Arbitrators
 Disputes involving rights to mining areas.
 Disputes involving mineral agreements or permits
 Disputes involving surface owners, occupants and
claimholders/concessionaires; and
 Disputes pending before the Bureau and the
Department at the date of the effectivity of R.A.
7942.
Jurisdiction of MGB
Appellate:
 Decisions from Panel of Arbitrators

 Within fifteen (15) days from receipt

 To decide the case within thirty (30) days from

submission
Concept of Jura Regalia
 Universal feudal theory that all lands were held from
the Crown (Carino v. Insular Govt, 41 Phil. 935)
 Foundation of the 1st sentence of Sec. 2, Art. XII,
1987 Constitution
 In the Republican system of Government, the
medieval concept of jura regalia has been stripped of
its regalian overtones (Lee Hong Kok v. David, 48 SCRA 372)
Important Terms Used In Mining Law
 Ancestral lands - Refers to all lands exclusively and
actually possessed, occupied, or utilized by
indigenous cultural communities by themselves or
through their ancestors in accordance with their
customs and traditions since time immemorial, and
as may be defined and delineated by law.
Notes:
 Ancestral domain and ancestral lands are not part of lands of
the public domain.
 The right of natives does not include natural resources. What is
given is priority rights, not exclusive right.
 State not precluded from entering into agreements with private
entities. (Cruz v. Secretary, GR 135385, Dec. 6, 2000)
 Block or meridional block - Area bounded by one-half
(1/2) minute of latitude and one-half (1/2) minute of
longitude, containing approximately eighty-one
hectares (81 has.).
 Carrying capacity – The capacity of natural and
human environments to accommodate and absorb
change without experiencing conditions of instability
and attendant degradation.
 Ecological profile or eco-profile – The geographic-
based instruments for planners and decision-makers
which presents an evaluation of the environmental
quality and carrying capacity of an area.
 Environmental compliance certificate (ECC) - The
document issued certifying that the project under
consideration will not bring about an unacceptable
environmental impact and that the proponent has
complied with the requirements of the environmental
impact statement system.
 Environmental impact statement (EIS) - The
document which aims to identify, predict, interpret,
and communicate information regarding changes in
environmental quality associated with a proposed
project and which examines the range of alternatives
for the objectives of the proposal and their impact on
the environment.
 Foreign-owned corporation - Any corporation,
partnership, association, or cooperative duly
registered in accordance with law in which less than
fifty per centum (50%) of the capital is owned by
Filipino citizens.
 Gross output - The actual market value of minerals or
mineral products from its mining area as defined in
the National Internal Revenue Code.
 Mine wastes and tailings – The soil and rock
materials from surface or underground mining and
milling operations with no economic value to the
generator of the same.
 Minerals - refers to all naturally occurring inorganic
substance in solid, gas, liquid, or any intermediate
state excluding energy materials such as coal,
petroleum, natural gas, radioactive materials, and
geothermal energy.
 Ore - means a naturally occurring substance or
material from which a mineral or element can be
mined and/or processed for profit.
Other Mining Terms
 Mine – In its specific sense, is a work for the
excavation of minerals, by means of pits, shafts,
levels, tunnels, and others, as opposed to a ‘quarry’
where the whole excavation is open. Whether any
excavation be a mine or not depends on the mode in
which is worked, and not on the substance obtained
from it. (18 R.C.L. 2, pp. 1092-1093 as quoted in Law on Natural
Resources, Pena, pp. 110)
 Vein or Lode – A seam or fissure in the earth’s crust
filled with quartz or some other kind of rock in place
carrying gold, silver, or other valuable mineral
deposits named in the statute.
 Lode (alteration of the verb lead) - Used by miners to
mean as the formation by which they are led or
guided in the search for ore. A load may contain
more than one vein. The space between the walls or
boundaries of the earth’s crust is called FISSURE and
if in such fissure ore is found although at
considerable intervals and in small quantities, it is
called a LODE or VEIN. A Vein is by no means a
straight line, or of uniform dip or thickness, or
richness of mineral matter, throughout its course.
 Apex of vein – Is the uppermost edge of the vein or
the course thereof, in place at or near the surface of
the earth. [Ibid]
 Mining Claim – A parcel of land containing precious
metal in its soil or rock, and is often used in mining
parlance as synonymous with the term ‘location’,
which means the act of appropriating a mining claim
on the public domain, according to established laws
or rules. [Watson v. Lederer, 11 Colo. 577,19 Pac. 602, 7 A.S.R.
263, 1 L.R.A. 854; 18 R.C.L. 2, pp. 1092]
 Lode Claim – A parcel of mineral land containing a
vein, lode, ledge, lens, or mass of ore in place which
has been located in accordance with law. [Sec. 13, C.A.
137]
 Placer Claim – Is that which does not come under the
definition of lode mineral claim. [Ibid]
 Assay – A test by means of chemical analysis to
determine the purity of fineness of metals,
particularly precious metals. Hence, gold, silver, and
platinum are assayed for the number of ounces per
ton of ore; while lead, copper, zinc and base metals
are assayed for the percentage of their contents in
the ore. [Morrison, Mining rights, pp. 491-492]
 Quarry resources – Any common stone or other
common mineral substances as the MGB Director
may so declare, such as, but not restricted to: marl,
marble, granite, volcanic cinders, basalt, tuff, and
rock phosphate, gabbro, serpentine, inset filling
materials, clay for ceramic tiles and building bricks,
pumice, perlite and other similar materials provided
they contain no metals or other valuable minerals in
economically substantial quantities. [Sec. 2-I, PD 463 &
Sec. 43, R.A. 7942]
Areas Open to Mining Operations
(Sec. 14, IRR)
 Public or private lands not covered by valid and
existing mining rights and mining applications;
 Lands covered by expired/abandoned/ canceled
mining/quarrying rights;
 Mineral Reservations; and
 Timber or forest lands as defined in existing laws (?).
Areas Closed to Mining Applications
(Sec. 19)
a.  In military and other government reservations,
except upon prior written clearance by the
government agency concerned;
 
b.  Near or under public or private buildings,
cemeteries, archeological and historic sites, bridges,
highways, waterways, railroads, reservoirs, dams or
other infrastructure projects, public or private works
including plantations or valuable crops, except upon
written consent of the government agency or private
entity concerned;
 
c.  In areas covered by valid and existing mining
rights;
e.  In areas covered by small-scale miners as defined by law
unless with prior consent of the small-scale miners, in which
case a royalty payment upon the utilization of minerals shall be
agreed upon by the parties, said royalty forming a trust fund for
the socioeconomic development of the community concerned;
and
 
f.  Old growth or virgin forests, proclaimed watershed forest
reserves, wilderness areas, mangrove forests, mossy forests,
national parks provincial/municipal forests, parks, greenbelts,
game refuge and bird sanctuaries as defined by law and in
areas expressly prohibited under the National Integrated
Protected Areas System (NIPAS) under Republic Act No. 7586,
Department Administrative Order No. 25, series of 1992 and
other laws.
Prior Informed Consent From ICCs
(Sec. 16, IRR)
 No mining permits to be issued in CADCs/CALCs or
areas actually occupied by Indigenous Cultural
Communities under a claim of time immemorial
possession unless there is PRIOR INFORMED
CONSENT from them, based on their customary laws.
 Public notice via: (a) newspaper, radio or television
advertisements, fully disclosing the activity to be
undertaken; and (b) sector consultation thru
community assembly, which notice should be
announced or posted in a conspicuous place in the
area for at least a month before the assembly.
 Fraud, external influence and manipulations
prohibited.
 Royalty entitled to ICC: 1% of G.O.
 Expenses for community development deductible
from royalty.
 In case of disagreement concerning the royalty:
Department to resolve the same within three (3)
months.
 Royalty to form part of a Trust Fund for the
socioeconomic well-being of the ICC based on the
management plan formulated for such ancestral land
or domain area:
Mining Tenements under R.A. 7942
A. Tenement issued by DENR
1. Exploration Permit
2. Mineral Agreements
- Mineral Production Sharing Agreement
- Joint Venture Agreement
- Co-production Agreement
3. Financial or Technical Assistance Agreement
4. Mineral Processing Permit
5. Industrial Sand & Gravel Permit
B. Permit issued by LGU
1. Quarry Permit
2. Small-Scale Mining Permit
3. Sand & Gravel Permit
Maximum Areas for Exploration
Permit (Sec. 22, IRR as amended by
AO 03-46)
a.  Onshore, in any one province
1.  for individuals, twenty (20) blocks: and
  2. for partnerships, corporations, cooperatives,
or associations, two hundred (200) blocks.

b.  Onshore, in the entire Philippines

1.  for individuals, forty (40) blocks; and
  2.  for partnerships, corporations, cooperatives,
or associations, four hundred (400) blocks.
c.  Offshore, beyond five hundred meters (500m)
from the mean low tide level:  
1.  for individuals, one hundred (100) blocks;
and
2.  for partnerships, corporations, cooperatives,
or associations, one thousand (1,000) blocks.
Declaration of Mining Project
Feasibility (Sec. 25)
 By the holder of an exploration permit
 After determination of the commercial viability of a
project covering a mining area
 To be filed at the MGB within the term of the permit.
 Upon approval and compliance with other
requirements will entitle the holder to an exclusive
right to a mineral production sharing agreement or
other mineral agreements or FTAA.
 But he/it must do so within (1) year otherwise the
declaration will be cancelled. (DAO 2005-15)
Publication Requirements (Secs.
21,38, & 55, IRR)
 Permitee to cause the publication, posting and radio
announcement of the Notice within fifteen (15)
working days from receipt.
 Publication requirement: Once a week for two (2)
consecutive weeks in two (2) newspapers (one of
general circulation published in Metro Manila and
another published in the municipality or province
where the proposed permit area is located).
 Radio Announcement: Daily for two (2) consecutive
weeks in a local radio program.
 Posting requirement: 2 consecutive weeks at BBs of
MGB offices, CENRO, PENRO, Capitol, Mun. Hall, copy
furnished the barangay/s.
Maximum Areas for Mineral
Agreements (Section 28)
a.  Onshore, in any one province:
1.  for individuals, ten (10) blocks; and
  2.  for partnerships, cooperatives, associations,
or corporations, one hundred (100) blocks.
  b.  Onshore, in the entire Philippines:
1.  for individuals, twenty (20) blocks; and
  2.  for partnerships, cooperatives, associations,
or corporations, two hundred (200) blocks.
 c.  Offshore, in the entire Philippines
1.  for individuals fifty (50) blocks;
  2.  for partnerships, cooperatives, associations,
or corporations, five hundred (500) blocks; and  
3.  for the exclusive economic zone, a larger area
to be determined by the Secretary.
 Does not include mining/quarry areas under
operating agreements between the contractor and a
claimowner/lessee/permittee/licensee entered into
under Presidential Decree No. 463.
Mandatory Requirements for Applications
for Mineral Agreements (Sec. 35, IRR)
 Location map/sketch plan of the proposed contract area.
 Two-year Exploration Work Program or three-year
Development/Utilization Work Program,where applicable.
 Satisfactory Environmental Management Record and
Community Relations Record, If applicable.
 Environmental Work Program during the exploration
period;
 Proof of technical competence.
 Proof of financial capability.
 Declaration of the total area.
 For corporations: SEC registration, AI, BLaws, etc.
Mineral Production Sharing
Agreement (MPSA)
 Exclusive right to conduct mining operation w/in a contract
area.
 Limited to Filipinos or Filipino-owned corporation (Foreign equity
not exceed 40%).
 Maximum capital: P10M; Paid-up: P2.5M
 Maximum area for juridical entity: 8,100 has. (province); 16,200
(entire country)
 Contract period: 25 yrs. renewable for another 25 yrs.
 2 yrs. exploration period; 3 yrs. construction and development
period; rest for production.
 Can be assigned to qualified individuals/corporations.
 Can be converted to FTAA.
Co-Production Sharing Agreement
 An agreement between the Government and the
contractor wherein the Government shall provide
inputs to the mining operations other than the
mineral resource. (Sec. 26[b], R.A. 7942, The
Philippine Mining Act of 1995)
Joint Venture Agreement
 An agreement where a joint-venture company is
organized by the Government and the contractor
with both parties having equity shares. Aside from
earnings in equity, the Government shall be entitled
to a share in the gross output. (Sec. 26 [c], R.A.
7942, The Philippine Mining Act of 1995)
Maximum Contract Area For FTAA
(Section 34)
a.  1,000 meridional blocks onshore;
 
b.  4,000 meridional blocks offshore; or
 
c.  Combinations of (a ) and (b) provided that it shall
not exceed the maximum limits for onshore and
offshore areas.
Specific Minerals Subject to FTAA
(Sec. 50, IRR)
 Gold, copper, nickel, chromite, lead, zinc and other
minerals.
 Excluded: Cement raw materials, marble, granite,

sand and gravel and construction aggregates.

NOTE: Stipulations in Mineral Agreements & FTAA now
governed by DAO 2004-54, as further amended by
DAO 2007-12.
Transfers/Assignments of Exploration
Permits, Mineral Agreements, FTAA
(Secs. 25, 40, 57 & 66, IRR)
 EP: Subject to the approval of the Secretary upon the
recommendation of the Director.
 MPSA, CPA & JV & FTAA Application: Subject to the
approval of the Regional Director taking into account
the national interest and public welfare. Restrictions:
Eligibility of Transferee & Not made for speculative
purposes.
 FTAA: Endorsement by the Director; recommendation
by DENR Secretary and approval by the President.
Easement Rights Over Surface Lands
(Sec. 104, IRR)
 Purpose: Build or install infrastructures as roads,
railroads, mills, waste dump sites, tailings, ponds,
warehouses, staging or storage areas and port
facilities, etc. on mining areas or other lands
occupied/owned by other persons
 Right to enter and occupy mining areas or lands
upon payment of just compensation.
Eminent Domain? (Sec. 105, IRR)
 Right to enter and occupy into surface land within a
mining area for exploration, development and
utilization.
 Requisites: Written notices to surface owners and
bond. If owner cannot be located, notice served to
MGB Director.
 Just compensation: LIMITED TO THE DAMAGE TO
THE PROPERTY AS CONSEQUENCE OF MINING OR
RESULTING FROM CONSTRUCTION OF
INFRASTRUCTURE!
Manner Arriving at Just
Compensation
 By voluntary agreement.
 In case of disagreement or in the absence of an
agreement, issue to be brought to the panel of
arbitrators.
 Note: Either situation, contractor shall post a bond
upon agreement by the parties.
 If parties disagree – MGB Director to determine the
amount of bond!
General Provisions on Quarry Operations
(Sec. 69 as amended by AO 03-46)
 Quarry sand and gravel, guano and gemstone
resources is allowed both in private and/or public
lands.
 If large-scale quarry (mechanized): Apply for any of

the mineral agreements.

Area limitations (hectares):
 Sand/Gravel/Lahar: 20 (Individual) & 50 (Corp)

 Marble/Granite/Construction aggregates: 81

(Individual & 243 (Corp)

 Limestone, shale, silica [cement]: 486 (Individual) &

1,458 (Corp.)
Jurisdiction Of Provincial/City Mining
Regulatory Board (Sec. 70, IRR)
 Applications for Quarry, Sand and Gravel, Guano,
Gemstone Gathering and Small-Scale Mining Permits.
 Chairman: MGB Director.
 Vice-Chair: Governor/City Mayor
 Members: SSM rep, LSM rep, accredited NGO
Quarry Permit (Sec.71, IRR)
 Area: Not more that 5 hectares.
 Term:5 years, renewable for the same period but not
exceeding 25 years.
 Where to Apply: Governor/City Mayor through the
P/CMRB.
Commercial Sand/Gravel Permit
(Sec. 72[a], IRR)
 Coverage: Extraction, removal and disposition of
sand and gravel and other loose or unconsolidated
materials which are used in their natural state
without undergoing processing.
 Area: Not more than 5 hectares.
 Term: 1 year, renewable in like periods.
 Restriction: 1 permit per person per municipality.
 Where to apply: Governor/City Mayor through
P/CMRB
Industrial Sand/Gravel Permit (Sec.
72[b], IRR)
 Coverage: Extraction, removal and disposition of
sand and gravel and other loose or unconsolidated
materials that necessitate the use of mechanical
processing.
 Area: Not more than 5 hectares at any given time.
 Term: 5 years, renewable in like periods but not to
exceed 25 years.
 Where to apply: Governor/City Mayor through the
P/CMRB
 If area is more than 5 has. but not exceeding 20
has., jurisdiction is with RD, MGB.
Exclusive Sand/Gravel Permit (Sec.
72[c], IRR)
 Coverage: Extraction, removal and utilization of sand
and gravel and other loose or unconsolidated
materials from public land for applicant’s own use.
 Area: 1 hectare
 Term: Not exceeding 60 days, non-renewable.
 Limitation: 50 cubic meters maximum & no
commercial disposition.
Gratuitous Permits
 Public -Government entity/ instrumentality in need of
quarry, sand and gravel or loose/unconsolidated
materials in the construction of building and/or
infrastructure for public use or other purposes. Term:
1 year; Area: 2 hectares.
 Private – Applicant is the landowner himself.
Purpose: extraction, removal and utilization of
quarry, sand and gravel or loose/ unconsolidated
materials from his land. Term: 60 days, non-
renewable. Proof of ownership and personal use of
materials.
Restrictions in Quarrying Operations
 No extraction allowed within one (1) kilometer from
the boundaries of reservoirs established for public
water supply, archaeological and historical sites or of
any public or private works or structures.
 No extraction allowed in offshore areas within five
hundred (500) meters distance from the coast and
two hundred (200) meters from the mean low tide
level along the beach.
 Ore Transport Permit (Sec. 117, IRR,
as amended by AO 2003-46)
 Transport of all minerals/mineral products and by-
products, including gold bullions, by Permit Holders,
Contractors, accredited traders, retailers, processors
and other mining rights holders must be
accompanied by an Ore Transport Permit (MGB Form
No. 12‑1) issued by the Regional Director concerned
or his/her duly authorized representative.
 Transport of sand and gravel shall be covered by a
Delivery Receipt. 
 P/CMRF to formulate its own policies to govern such
transport of ores produced by small‑scale miners.
 For MPSA & FTAA: OTP included in the agreement.
Prior written notice to MGB required.
 OTP not necessary for ore samples not exceeding
two (2) metric tons to be used exclusively for assay
and pilot test purposes. Only certification from MGB
is required.
 The absence of a permit shall be considered as prima
facie evidence of illegal mining and shall be sufficient
cause for the Government to confiscate the ores or
minerals being transported, the tools and equipment
utilized, and the vehicle containing the same.
 The absence of a permit shall be considered as prima
facie evidence of illegal mining and shall be sufficient
cause for the Government to confiscate the ores or
minerals being transported, the tools and equipment
utilized, and the vehicle containing the same.
Selected Mineral Production Volume
Role of LGUs In Mining (Sec. 8,
IRR, R.A. 7942)
 Ensure that relevant laws on public notice, public
consultation and public participation are complied
with;
 Approve applications for small-scale mining, sand and
gravel, quarry, guano, gemstone gathering and
gratuitous permits and for industrial sand and gravel
permits not exceeding five (5) hectares;
 Share from taxes, fees and charges in accordance
with Sections 290 and 292 of Republic Act No. 7160 ;
 Facilitate in the process to achieve an informed
decision on the social acceptability of a mining
project as required by ECC;
 Participate in the monitoring of any mining activity as
a member of the Multipartite Monitoring Team;
 Participate as a member of the Mine Rehabilitation
Fund Committee;
 Recipient of social infrastructure and community
development projects for the utilization of the host
and neighboring communities;
 Act as mediator between the ICCs and the Contractor
as may be requested; and
 Other powers granted by applicable laws and rules.
 Membership in MMT & MRFC;
 Recipient of social infrastructure and community
development projects for the utilization of the host
and neighboring communities;
 Act as mediator between the Indigenous Cultural
Community and the Contractor if requested.
Grounds Cancellation/ Revocation/
Revocation (Sec. 230, IRR)
 Violation of any of the terms and conditions of the
Permits or Agreements;
 Non-payment of taxes and fees due the Government
for two (2) consecutive years; and
 Falsehood or omission of facts in the application for
Exploration Permit, Mineral Agreement, FTAA or
other permits which may alter, change or affect
substantially the facts set forth in said statements.
Effect of Cancellation/Expiration (Sec.
232, IRR)
 Expiration:
- Gov’t to undertake operation or through qualified
independent contractor after bidding.
- Contractor has right to equal highest bid and
reimburse expenses by that bidder.
 Cancellation:

- To be entered in the Registration Book.

- Notice to be posted on BB of MGB & RO.
- Mining area will be open for new applicants.
Note: Non-payment of taxes & fees may result to
cancellation and opening of the area for new
applicants.
Environmental Protection Objectives
(Sec. 167, IRR)
 Maintenance of sustainable environmental conditions
at every stage of the mining operation. Principle of
progressive rehabilitation.
 Establishment of a functional post-disturbance land
use capability, i.e. minesite decommissioning and
rehabilitation should aim to establish a land use
capability that is functional and proximate to the land
use prior to the disturbance of the mine area.
 Preservation of downstream freshwater quality.
 Preservation of sea water quality and natural habitats
for marine life.
 Prevention of air and noise pollution;
 Respect for the traditional and/or sustainable
management strategies concerning natural resources
of Indigenous Cultural Communities and other
communities.
Environmental Work Program (EWP)
 Applies to EPs, MAs, & FTAAs.
 Detailing the environmental impact control and
rehabilitation activities proposed during the
exploration period including the costs to enable
sufficient financial resources to be allocated to meet
the environmental and rehabilitation commitments.
 Provide a description of the expected and considered
acceptable impacts.
 Set out the environmental protection and
enhancement strategies based on best practice in
environmental management in mineral exploration.
 To be furnished to Sangguniang Panlalawigan.
Environmental Protection &
Enhancement Program (EPEP)
 Required of MAs & FTAAs.
 Provides a description of the expected and
considered acceptable impacts and sets out the life-
of-mine environmental protection and enhancement
strategies based on best practice in environmental
management in mining.
 Includes a statement on post-mining land use
potential for various types of disturbed land (pits,
waste dumps, tailings-impounding structures and
infrastructure sites) and extends to the completion of
the commitments in the rehabilitation of the
disturbed land in a technically, socially and
environmentally competent manner.
 Contractor to allocate for its initial environment-
related capital expenditures an amount that shall
approximate ten percent (10%) of the total
capital/project cost or such other amount depending
on the environmental/geological condition, nature
and scale of operations and technology employed.
 EPEP to be filed and evaluated by Mine Rehabilitation
Committee MGB.
 All preliminary evaluations will be consolidated and
forwarded to the Contingent Liability and
Rehabilitation Fund (CLRF) Steering Committee for
approval.
Annual EPEP
 Based on the approved EPEP and shall be
implemented during the year of its submission.
 Includes, but shall not be limited to, exploration,
development, utilization, rehabilitation, regeneration,
revegetation and reforestation of mineralized areas,
slope stabilization of mined-out areas, waste dumps
(acid mine drainage control), tailings-covered areas,
aquaculture, watershed development and water
conservation and socioeconomic development.
 Three to five percent (3-5%) of direct mining and
milling costs to be allocated for annual environment-
related activities
Organization of a Mine Environmental
Protection and Enhancement Office
(MEPEO)
 All Contractors/Permit Holders shall incorporate in
their mine organization structures an MEPEO.
 Headed preferably by either a licensed Mining
Engineer, Geologist or Metallurgical Engineer or by
an Environmental Engineer with at least five (5)
years experience in actual mining environment work.
Environmental Monitoring and Audit
 To be undertaken by the Multipartite Monitoring
Team (MMT) at least every quarter.
 Expenses for such monitoring chargeable against the
Monitoring Trust Fund of the Mine Rehabilitation
Fund.
 Environmental monitoring reports to be submitted by
the MMT to the MRF Committee.
 Independent environmental audit to be undertaken
regularly by the Contractor to identify environmental
risks affecting mining operations to serve as a basis
for the development of an effective environmental
management system.
Contingent Liability and
Rehabilitation Fund
 Mine Rehabilitation Fund:
- Monitoring Trust Fund (MTF): 50,000
- Rehabilitation Cash Fund: P5,000,000 at least.
 Mine Waste and Tailings Fees P0.05/MT of mine
waste produced and P 0.10/MT of mill tailings.
Regional Investigation and
Assessment Teams (RIAT)
 Provides advice to interested parties on matters
related to claims for compensation for damages;
 Provides applications and other related forms to
prospective claimants for damages;
 Receives applications for compensation for damages;
 Conducts field investigations and assessments of
claims for damages (MGB Form No. 18-3) and
submits reports to the CLRF Steering Committee
through the TWG.
 Application for compensation for damages to be filed
within thirty (30) calendar days from the occurrence
of the damage.
DEVELOPMENT OF MINING COMMUNITIES,
SCIENCES AND MINING TECHNOLOGY
 Contractor/Permit Holder/Lessee to assist in the
development of the host and neighboring
communities and mine camp to promote the general
welfare of the inhabitants living therein.
 To assist in developing mining technology and
geosciences as well as the corresponding manpower
training and development;
 To allot annually a minimum of one percent (1%) of
the direct mining and milling costs necessary to
implement the above.
Credited Activities or Expenditures
 Establishment and maintenance of community
schools, hospitals, churches and recreational facilities
which will be open to the general public whether or
not they are mine employees.
 Construction and maintenance of community access
roads, bridges, piers and wharves;
 Establishment and maintenance of communication,
waterworks, sewerage and electric power systems
which are accessible to mine employees and
members of the community;
 Development and maintenance of community
housing projects for mine employees and members
of the community;
 Establishment of training facilities for manpower
development for mine employees and members of
the community; and
 Establishment of livelihood industries for the
dependents of the mine employees as well as for
other members of the community.
Republic Act No. 7076

PEOPLE'S SMALL-SCALE MINING

ACT OF 1991
State Policies On Small-Scale Mining
 Promote, develop, protect and rationalize viable
small-scale mining activities;
 Generate more employment opportunities and
provide an equitable sharing of the nation's wealth
and natural resources.
Important Terms In People’s Small-
Scale Mining Act
 Small-scale mining - refers to mining activities which
rely heavily on manual labor using simple implement
and methods and do not use explosives or heavy
mining equipment.
 Small-scale mining contract - refers to co-
production, joint venture or mineral production
sharing agreement between the State and a small-
scale mining contractor for the small-scale utilization
of a plot of mineral land.
 Mining plan - A two-year program of activities and
methodologies employed in the extraction and
production of minerals or ore-bearing materials,
including the financial plan and other resources.
 Mineralized areas - Those with naturally occurring
mineral deposits of gold, silver, chromite, kaolin,
silica, marble, gravel, clay and like mineral resources.
 Active mining areas – Those under actual exploration,
development, exploitation or commercial production
as determined by the Secretary after the necessary
field investigation or verification including contiguous
and geologically related areas belonging to the same
claimowner and/or under contract with an operator,
but in no case to exceed the maximum area allowed
by law.
 Existing mining right - That perfected and subsisting
claim, lease, license or permit covering a mineralized
area prior to its declaration as a people's small-scale
mining area.
 Claimowner - A holder of an existing mining right.
 Processor – A person issued a license to engage in
the treatment of minerals or ore-bearing materials
such as by gravity concentration, leaching
benefication, cyanidation, cutting, sizing, polishing
and other similar activities.
Applications for SSM
 To be filed in the Office of the Provincial
Governor/City Mayor through the Provincial/City
Mining Regulatory Board concerned for areas outside
the Mineral Reservations.
Mandatory Requirements SSM (Sec.
20, DAO 2005-15)
 Location map/sketch plan of the proposed permit area
showing its geographic coordinates/meridional blocks
and boundaries in relation to major environmental
features and other projects using a NAMRIA topographic
map in a scale of 1:50,000 duly prepared, signed and
sealed by a deputized Geodetic Engineer;
 Two (2)-Year Utilization Work Program duly prepared,
signed and sealed by a licensed Mining Engineer or
Geologist;
 Proof of technical competence: curricula vitae and track
records in mining operations; and environmental
management of the technical personnel who will
undertake the activities based on the Utilization Work
Program;
 Proof of financial capability:
a. For an individual – Copy of income tax return for the
preceding year
and proof of bank deposit or credit line in the amount that
shall not be less than the proposed budget of the Utilization
Work Program; and
b. For a corporation, partnership, association or cooperative
– Latest audited financial statement and, where applicable,
Annual Report for the preceding year, credit lines, bank
guarantees and/or similar negotiable instruments; and
 SEC Registration, Articles of Incorporation and By- Laws;
 ECC, Environmental Protection and Enhancement Program
and approved survey plan.
Priority To Cultural Communities Within
Ancestral Land (Sec. 7, R.A. 7076)
 No ancestral land may be declared as a people's
small-scale mining area without the prior consent of
the cultural communities concerned.
 Provided, That, if ancestral lands are declared as
people's small-scale mining areas, the members of
the cultural communities therein shall be given
priority in the awarding of small-scale mining
contracts.
Contract Area (Sec. 10, R.A.7076)
 Not to exceed twenty hectares (20 has.) per contractor.
 Depth or length of the tunnel or adit not exceeding that
recommended by the director taking into account the
following circumstances:
(a)  Size of membership and capitalization of the
cooperative;
(b)  Size of mineralized area;
(c)  Quantity of mineral deposits;
(d)  Safety of miners;
(e)  Environmental impact and other considerations;
and
(f)  Other related circumstances.
Prohibition On Assignment Of Rights
 Small-scale mining contractor given the right to mine,
extract and dispose of mineral ores for commercial
purposes.
 It cannot be subcontracted, assigned or otherwise
transferred.
 Term of License: 2 years, renewable subject to
verification.
Duties and Obligations of Small-
Scale Mining Contractor
 Undertake mining activities only in accordance with a
mining plan duly approved by the Board.
 Abide by the Mines and Geosciences Bureau and the
small-scale Mining Safety Rules and Regulations;
 Comply with his obligations to the holder of an
existing mining right.
 Pay all taxes, royalties or government production
share as are now or may hereafter be provided by
law.
 Comply with pertinent rules and regulations on
environmental protection and conservation,
particularly those on tree-cutting mineral-processing
and pollution control.
 File under oath at the end of each month a detailed
production and financial report to the Board.
 Assume responsibility for the safety of persons
working in the mines.
Rules If Area Is Covered By Existing
Mining Claim
 Claim-owner and the small-scale miners are
encouraged to enter into a voluntary and acceptable
contractual agreement.
 In case of disagreement, the claim-owner shall be
entitled to the following rights and privileges:
(a)  Exemption from the performance of annual work
obligations and payment of occupation fees, rental,
and real property taxes;
(b)  Subject to the approval of the Board, free access
to the contract area to conduct metallurgical tests,
explorations and other activities, provided such
activities do not unduly interfere with the operations
of the small-scale miners
(c)  Royalty equivalent to one and one half percent
(1 1/2%) of the gross value of the metallic mineral
output or one percent (1%) of the gross value of the
nonmetallic mineral output to be paid to the
claimowner: Provided, That such rights and privileges
shall be available only if he is not delinquent and
other performance of his annual work obligations and
other requirements for the last two (2) years prior to
the effectivity of this Act.
Ownership Of Mine Tailings (Sec. 16)
 Small-scale mining contractor own all mill tailings
produced from the contract area.
 He may sell the tailings or have them processed in
any custom mill in the area.
 But if the small-scale mining contractor decides to
sell its mill tailings, the claim-owner has a preemptive
right to purchase said mill tailings at the prevailing
market price.
Sale of Gold Exclusive To
Government (Sec. 17)
 All gold produced by small-scale miners in any
mineral area are to be sold to the Central Bank, or its
duly authorized representatives.
 At prices competitive with those prevailing in the
world market regardless of volume or weight.
 Central Bank to establish as many buying stations in
gold-rush areas to fully service the requirements of
the small-scale minerals thereat.
Establishment/Operation of Custom
Mills (Sec. 18)
 Limited to mineral processing zones duly designated by the local
government unit concerned upon recommendation of the Board.
 If private sector is unable to establish custom mills, the
Government to construct custom mills upon the
recommendation of the Board based on the viability of the
project.
 The Board to issue licenses for the operation of custom mills
and other processing plants subject to pollution control and
safety standards.
 It will also stablish assay laboratories to cross-check the
integrity of custom mills and to render metallurgical and
laboratory services to mines.
 Custom mills as withholding agents for the royalties, production
share or other taxes due the Government.
PD 1899 (Establishing Small-Scale as a New
Dimension in Mineral Development)
 PD No. 1899 and RA No. 7076 shall continue to
govern small-scale mining operations.
 For areas not declared as PSSMA, the pertinent rules
and regulations of PD No. 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 are governing rules for
PD 1899.
 DAO No. 34, Series of 1992 is the IRR of RA 7076.
 SSMPs for PD 1899; SSMCs for RA 7076.
 In case where a PSSMA is declared covering SSMP
areas, the term of the SSMPs, including their
renewal, will be recognized unless such SSMPs are
revoked, cancelled or terminated with cause.
 SSMP has the option to shift to a SSMC pursuant to
the provisions of DAO No. 34, Series of 1997.
 Term of SSMP: 2 years, renewable only once. Must
apply for renewable before expiry.
 No SSMP will be renewed unless its two (2)-year
term is fully consumed.
Qualified Person under SSMP
 Filipino citizen, of legal age, and with capacity to
contract, or a corporation or partnership authorized to
engage in mining, registered with the SEC, at least
60% of the capital of which is owned at 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.
 SSMP Maximum Annual Production: 50,000 DMT for
ore; non-mettalic: 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.
 Maximum Capital: 10M (both SSMP & SSMC)
Other Requirements for SSMP & SSMC
 Environmental Compliance Certificate.
 Potential Environmental Impact Report (PEIR) in lieu
of EPEP.
 Final Mine Rehabilitation/ Decommissioning Plan duly
approved by the Mine Rehabilitation Fund
Committee.
 Community Development and Management Program
which is a simplified Social Development and
Management Program, duly approved by the MGB-
RO.
 La Bugal-B’laan Tribal Assn. vs.
Ramos [G.R. 127882, Jan. 27, 2004 & Dec. 1, 2004]
Facts:
 March 30, 1995, the President entered into an FTAA

with WMCP covering 99,387 hectares of land in

South Cotabato, Sultan Kudarat, Davao del Sur and
North Cotabato.
 On August 15, 1995, then DENR Secretary Victor O.

Ramos issued DENR Administrative Order (DAO) No.

95-23, s. 1995, otherwise known as the
Implementing Rules and Regulations of R.A. No.
7942. This was later repealed by DAO No. 96-40, s.
1996 which was adopted on December 20, 1996.
 January 23, 2001 WMC sold all its shares in WMCP to
Sagittarius Mines, Inc. (Sagittarius), a corporation
organized under Philippine laws.
 WMCP was subsequently renamed “Tampakan
Mineral Resources Corporation.
 WMCP claims that at least 60% of the equity of
Sagittarius is owned by Filipinos and/or Filipino-
owned corporations while about 40% is owned by
Indophil Resources NL, an Australian company.
Issues:
 Constitutionality of R.A. 7942 & DAO 96-40.

 Validity of FTAA
La Bugal Jan. 27, 2004 Ruling
 Declaring unconstitutional and void:
(1) Section 3 (aq), which defines “qualified
person,” to wit: Provided, That a legally organized
foreign-owned corporation shall be deemed a
qualified person for purposes of granting an
exploration permit, financial or technical assistance
agreement or mineral processing permit.
(2) Section 23 which specifies the rights and
obligations of an exploration permittee, insofar as
said section applies to a financial or technical
assistance agreement.
 (3) Section 33, which prescribes the eligibility of
a contractor in a financial or technical assistance
agreement;
(4) Section 35 which enumerates the terms and
conditions for every financial or technical
assistance agreement;
(5) Section 39 which allows the contractor in a
financial and technical assistance agreement to
convert the same into a mineral production-sharing
agreement;
(2) All provisions of Department of Environment and
Natural Resources Administrative Order 96-40, s.
1996 which are not in conformity with this Decision,
and
(3) The Financial and Technical Assistance
Agreement between the Government of the Republic
of the Philippines and WMC Philippines, Inc.
Ratio of the Jan. 27, 2004 En banc
Decision
 Accordingly, following the literal text of the
Constitution, assistance accorded by foreign-owned
corporations in the large-scale exploration,
development, and utilization of petroleum, minerals
and mineral oils should be limited to “technical” or
“financial” assistance only.
 The phrase “management or other forms of
assistance” in the 1973 Constitution was deleted in
the 1987 Constitution, which allows only “technical or
financial assistance.” Casus omisus pro omisso
habendus est. A person, object or thing omitted
from an enumeration must be held to have been
omitted intentionally
 The phrase “service contracts” has been deleted in
the 1987 Constitution’s Article on National Economy
and Patrimony. If the CONCOM intended to retain
the concept of service contracts under the 1973
Constitution, it could have simply adopted the old
terminology (“service contracts”) instead of
employing new and unfamiliar terms (“agreements . .
. involving either technical or financial assistance”).
 Service contracts actually vested foreigners with the
right to dispose, explore for, develop, exploit, and
utilize the same. Foreigners, not Filipinos, became
the beneficiaries of Philippine natural resources. This
arrangement is clearly incompatible with the
constitutional ideal of nationalization of natural
resources, with the Regalian doctrine, and on a
broader perspective, with Philippine sovereignty.
 There can be little doubt that the WMCP FTAA itself is a
service contract. Section 1.3 of the WMCP FTAA grants
WMCP “the exclusive right to explore, exploit, utilise[,]
process and dispose of all Minerals products and by-
products thereof that may be produced from the
Contract AreaThese contractual stipulations, taken
together, grant WMCP beneficial ownership over natural
resources that properly belong to the State and are
intended for the benefit of its citizens.
 These stipulations are abhorrent to the 1987
Constitution. They are precisely the vices that the
fundamental law seeks to avoid, the evils that it aims to
suppress. Consequently, the contract from which they
spring must be struck down.
The Dec. 1, 2004 Reversal
CJ Panganiban speaking:
 We should reverse the Decision of January 27, 2004.

The phrase agreements involving either technical or

financial assistance, referred to in paragraph 4, are in
fact service contracts.
 But unlike those of the 1973 variety, the new ones

are between foreign corporations acting as

contractors on the one hand; and on the other, the
government as principal or “owner” of the works. 
 In the new service contracts, the foreign contractors
provide capital, technology and technical know-how,
and managerial expertise in the creation and
operation of large-scale mining/extractive
enterprises; and the government, through its
agencies (DENR, MGB), actively exercises control and
supervision over the entire operation.
 “Full control and supervision” by the State must be
understood as one that does not preclude the
legitimate exercise of management prerogatives by
the foreign contractor. 
 In other words, the FTAA contractor is not free to do
whatever it pleases and get away with it; on the
contrary, it will have to follow the government line if
it wants to stay in the enterprise.  Ineluctably then,
RA 7942 and DAO 96-40 vest in the government
more than a sufficient degree of control and
supervision over the conduct of mining operations.
Didipio Earth-Savers’ Multipurpose Assn.,
Inc., et al. vs. Elisea Gozun, et al., [G.R.
No. 157882,Mar. 30, 2006]

Issues:
 Does R.A. 7942 & DAO 96-04 allow the unlawful and

unjust “taking” of private property for private

purpose by permitting entry into a private property
and allow taking of land without payment of just
compensation?
 Are service contracts allowed under the 1987

Constitution?
ON ISSUE NO. 1
 The CAMC FTAA grants in favor of CAMC the right of
possession of the Exploration Contract Area, the full
right of ingress and egress and the right to occupy
the same.
 It also bestows CAMC the right not to be prevented
from entry into private lands by surface owners or
occupants thereof when prospecting, exploring and
exploiting minerals therein.
 The entry referred to in Section 76 is not just a
simple right-of-way which is ordinarily allowed under
the provisions of the Civil Code.
 The provision of the FTAA in question lays down the
ways and means by which the foreign-owned
contractor, disqualified to own land, identifies to the
government the specific surface areas within the
FTAA contract area to be acquired for the mine
infrastructure.
 The government then acquires ownership of the
surface land areas on behalf of the contractor,
through a voluntary transaction in order to enable
the latter to proceed to fully implement the FTAA.
 Eminent domain is not yet called for at this stage
since there are still various avenues by which surface
rights can be acquired other than expropriation.
ON ISSUE NO. 2
 The mere fact that the term service contracts found in
the 1973 Constitution was not carried over to the
present constitution, sans any categorical statement
banning service contracts in mining activities, does not
mean that service contracts as understood in the 1973
Constitution was eradicated in the 1987 Constitution.
 The 1987 Constitution allows the continued use of
service contracts with foreign corporations as contractors
who would invest in and operate and manage extractive
enterprises, subject to the full control and supervision of
the State; this time, however, safety measures were put
in place to prevent abuses of the past regime.
ISSUES & CONCERNS
Issues Affecting The Environment
 The record of mining companies with regard to
environmental protection, disasters and post-mining
clean-up in the Philippines is widely acknowledged,
even within the government, to be very poor.
 As of 2003, at least 16 serious tailings dam failures in
the preceding 20 years and over 800 abandoned
mine sites have not been cleaned up. Clean-up costs
are estimated in billions of dollars and the damage
caused will never be fully reversed.[ A L Clark, (1994 ) The
Phillippines Mineral Sector to 2010: Policy and Recommendations,
Report to the Asian Development Bank on T.A. No 1894-PHI. East-
West Center Honolulu, Hawaii, p360]
 Modern mining in the Philippines typically consists of
open-pit mining of low-grade ores for copper and
gold, and strip-mining for nickel.
 This involves flattening mountaintops, creating huge
craters and producing vast amounts of waste in the
form of tailings.
 Large-scale gold mining is particularly destructive
because it involves the processing of huge volumes
of ground rock, using cyanide to separate gold from
the ore.
 The process also releases other potentially harmful
toxic metals, the monitoring of which has been
described as inadequate in certain mining operations
in the Philippines. [Rapu-Rapu Finding and Recommendations
of the Fact-Finding Commission on the Mining Operations in Rapu-
Rapu Island, 19 May 2006, Executive Summary p15]
 Large-scale mining has the potential to seriously
exacerbate the problems on flooding, devastating
landslides, siltation and the destruction of biodiversity
areas as result of degradation of forests.
 In the Philippines 81 per cent of the globally
important land-based biodiversity areas are in forest
habitats.
 It is estimated that 37 per cent of this forest area
may be opened up to new mining. [State of the Philippines
Forest and Important Biodiversity Areas, Harribon Foundation , 27th
July 2007]
 Water contamination from mining poses one of the
top three ecological security threats in the world.
[USEPA]
 Many mining applications in the Philippines are in
water catchment areas very close to the sea, and
pose a major threat to valuable marine
environments.
 In addition a number of companies are proposing to
use submarine tailings disposal (STD) also referred to
as deep-sea tailings placement.
 The practice is effectively illegal in Canada and the
United States and has never been proposed for use
in Australia – the home countries of some 11 of the
companies proposing STD in the Philippines.
www.miningwatch.ca/index.php?/Crew/STD_toolki
 EIA processing timeframes have been reduced, with
automatic approval if they are exceeded.
Requirements to provide public information have
been relaxed, as has the need to provide notice of
public hearings.
 These changes have been accompanied by relaxing
of the controls in the Mining Act.
 Taken together, they seriously undermine the
protection afforded by EIAs in the Philippines.
Issues On Violations of Indigenous
People’s Rights
 The Indigenous Peoples Rights Act (IPRA, 1997) and
the Mining Code (Republic Act 7942, 1995) guarantee
indigenous peoples the right to free, prior, informed
consent (FPIC) over decisions affecting them and
developments on their lands.
 FPIC is defined as: The consensus of all members of
the ICCs/IPs [Indigenous Cultural
Communities/Indigenous Peoples] to be determined in
accordance with their respective customary laws and
practices, free from any external manipulation,
interference or coercion, and obtained after fully
disclosing the intent and scope of the activity, in a
language and process understandable to the
community.
 Lack of independent information regarding mining
that is made available to IPs.
 Information provided to IPs frequently amounted to
little more than propaganda by mining companies.
 Hence, IPs are not in a position to make an informed
choice.
 Two common themes during FFT discussions:
 (1) Lacked of respect for IPs traditional cultures,
viewing their right to FPIC as a technical obstacle to
be overcome as quickly as possible rather than a
necessary protection of rights; and
 (2) Factionalism and misrepresentation.
CBCP Statement on Mining (Jan.29,
2006)
 It is government mining policy of offering our lands
to foreigners with liberal conditions while our people
continue to grow in poverty.
 The adverse social impact on the affected
communities far outweigh the gains promised by
mining Trans-National Corporations (TNCs).
 The right to life of people is inseparable from their
right to sources of food and livelihood. Allowing the
interests of big mining corporations to prevail over
people’s right to these sources amount to violating
their right to life.
 Mining threatens people’s health and environmental
safety through the wanton dumping of waste and
tailings in rivers and seas.
 Deletion of the nationalist provisions in the
Constitution can pave the way to the wholesale
plunder of our National Patrimony, and undermine
our Sovereignty.
 Mining areas remain among the poorest areas in the
country such as the mining communities in CARAGA,
Bicol and Cordillera Regions. The cultural fabric of
indigenous peoples is also being destroyed by the
entry of mining corporations.
The CBCP calls on:
 Support to the struggle against all mining projects,

and raise the anti-mining campaign at the national

level.
 Closure of large-scale mining projects, for example,

the Rapu-rapu Polymetallic Project in Albay, HPP

Project in Palawan, Didippio Gold-Copper Project in
Nueva Viscaya, Tampakan Copper-gold Project in
South Cotabato, Canatuan Gold Project in
Zamboanga del Norte, and the San Antonio Copper
Project in Marinduque, among others;
Issues on Labor
 2 million people working in the M&Q sector, most of
whom fall in the bonded labor category.
www.dalits.org/CasteRaceandWCAR.html
 64% of all unorganized labour falls within the
agriculture and mining sectors
http://planningcommission.nic.in/midterm/english-pdf/chapter-08.pdf
 The small mining and quarrying sector in South Asia
is a repository of concentrated poverty and extreme
forms of exploitation of the workers, both women
and men. Mining work is commonly done on a
contract basis, often at piece-rates, but also for daily
wages.
Issues on Corruption
 Large-scale corruption as one of the abuses typically
associated with the extractive industry. [John Ruggie,
Interim Report of the Special Representative of the Secretary-General
on the Issue of Human Rights and Transnational Corporations and
Other Business Enterprises, U.N. Doc. E/CN.4/2006/97 (2006), Par.
25]
 Dependency on natural resources is linked to high
rates of corruption. [Legal Remedies for the Resource Curse. A
Digest of Experience in Using Law to Combat Natural Resources
Corruption. Open Society Justice Initiative 6 September 2005]
Other issues & concerns
 Human Rights – Extractive industry worldwide has
been described as having an ‘enormous and intrusive
social and environmental footprint’. It has deplorable
record in relation to human rights, resulting from
militarization and corruption, and leading to a broad
array of abuses ‘up to and including complicity in
crimes against humanity’. [John Ruggie, Interim Report of the
Special Representative of the Secretary-General on the Issue of Human
Rights and Transnational Corporations and Other Business
Enterprises, U.N. Doc. E/CN.4/2006/97 (2006)]
 Security Firms & Militarization –Members of the
Subanon indigenous people reported that 169 armed
security guards, hired by the TVI mining company,31
were manning checkpoints and blocking access to
their ancestral domain. [Mining in the Philippines Concerns
and Conflicts, Cathal Doyle, Clive Wicks and Frank Nally, July-Aug.
2006]
 Pressures on Judiciary – Former Speaker De Venecia
announced that, together with the Chamber of Mines
‘we mounted a strong campaign to get the Supreme
Court to reverse itself. [Minesite.com Speech of Jose DeVenecia
17 June 2005, London]
 Health Impacts - Cyanide separation is used to
extract gold from ore. One-millionth of a gram of
cyanide per liter of water can be fatal to fish. The
mining process can also lead to toxic metals being
released from the ore. If toxic metals, mercury or
cyanide get into the food chain they can seriously
damage health.
www.greenpeace.org/raw/content/seasia/en/press/reports/cyanide-gold
-mining-s-devasta.pdf
Response from DENR on Mining
Issues
 The current Philippine policy framework for mining is
anchored on Republic Act No. 7942 or the Philippine
Mining Act of 1995 and Presidential Decree No. 1586
or the Philippine Environmental Impact Statement
(EIS) System.
 PD No. 1586 or the Philippine Environmental Impact
Statement (EIS) System ensures that environmental
concerns are adequately addressed in all stages of
project implementation. The EIS identifies potential
environmental impacts from development activities
like mining and provides for mitigative or
ameliorative mechanisms to minimize or eliminate
such impacts. It also sets out the process in
obtaining social acceptability. www.denr.gov.ph
 RA No. 7942 is considered as the primary tool to
revitalize the mining industry but with equal emphasis
on both social and environmental responsibilities. The
revised rules and regulations implementing the Mining
Act adopted the World Commission on Environment
and Development’s (Brundtland Commission)
definition of Sustainable Development as its governing
principle and states that :"Mining shall adhere to the
principle of sustainable development which meets the
needs of the present without compromising the ability
of future generations to meet their own needs, with
the view of improving the total quality of life both
now and in the future.“ [Ibid]
 In our terms, mining shall alleviate rather than
depress the economic conditions in the countryside;
increase rather than decrease our mineral base
through continuing mineral exploration; enhance
rather than degrade the environment by managing
the impacts of mining activities and the rehabilitation
of mining affected lands to a productive state after
mining and lengthen, through recycling and
substitution, the usable life of mineral resources. [Ibid]
 The minerals industry has been the primary tool in
improving the quality of life of the people through
the creation and amplification of wealth. Metals and
other products of mining are in-dispensable
components of the global economy.
 The Philippines’ main resource base is its natural
resources including mineral resources. The utilization
of these resources, through a strong minerals
industry, therefore, carries the great potential to
advance the country’s economic growth. [Ibid]
 Contrary to common belief that the grant of large
tracts of land to mining contractors will result in
massive land degradation, it should be emphasized
that the grant of as much as 81,000 hectares for
mineral exploration is subject to relinquishment.
 Mineral exploration, to emphasize, is neither a land
use nor a development activity but rather the
scientific, non-destructive assessment of the mineral
potential of the land that can possibly lead to a
decision to mine. Mineral exploration is a high cost,
high-risk endeavor without any guarantee of success.
[Ibid]
 Using the 81,000 hectares granted to an FTAA
Contractor as an example, the contractor shall
relinquish at least 25% of the original contract area
after the second year of exploration and 10% each
on the third, fourth and fifth years. Upon the end of
the exploration period, the contractor shall retain
only a maximum of 5,000 hectares or less per project
area (or just 6.17% of the original contract area).
 Exploration, however, does not always lead to
mining. The odds of finding a mineral deposits is
conservatively placed at 1:500, that is, for every 500
exploration projects, only one may be developed into
a mine. [Ibid]
 The decision to mine may come only after another 5
to 10 years, once all regulatory requirements and an
exhaustive study of the mineral deposit had been
undertaken. [Ibid]
Area Relinquishment during the
Exploration Period
Land Classification in the
Philippines
 Case Study:
The Marcopper
Mining Disaster
The Marcopper Problem
 For over 30 years, the Marcopper Mining Corporation
has been operating on Marinduque Island in the
Philippines.
 The mine operations have caused innumerable
troubles; serious health and environmental problems
have placed the community at risk;
 The island of Marinduque is a very poor area and
relies heavily on agriculture and fishing. Mining in the
area has polluted waterways, killed fish, and flooded
agricultural fields;
 Despite these negatives, Marcopper employs about
1,000 people, mostly from the island.
 The corporation also provides $30 million a year for
local goods and services, as well as the electricity for
the province;
 The island remains one of the poorest parts of the
country.www.umich.edu
/~snre492/Jones/marcopper.htm#Problem
The Rapu-Rapu Island Mining:
Tragedy In Waiting
 Right: Acid Mine Drainage
(AMD) in the former Hixbar
Mining area, Carogcog Saday
(left) and Lafayette area in
Pagcolbon (Above) in year
2000. Water is contaminated
with lead and cadmium. Soil
has very high arsenic
content.
 Upper picture was taken on
December 12, 2005 while
below was taken on
February 5, 2006. The
picture below that showed
reddish coloration (pointed
by yellow arrows) indicates
AMD occurring within 2
months in this newly
constructed protective
structure purposely to hold
back the downward
movement of possibly
contaminated tailings, silt,
soil and water.
 Mine tailings (see blue
arrows) piled up in open
dump in the Lafayette
Mining area. These tailings
are still contaminated with
heavy metals such as
arsenic, cadmium, lead and
copper. They are also
capable of generating acid
mine drainage
 Location of Barangay
Malobago is pointed by a red
arrow. Tidal movements and The streak of reddish silt
backflow of water current in the sea at Bgy. Malobago
from Albay Gulf would tend
to straighten the direction is pointed by an arrow
towards Pto. Diaz and other
places in the eastern part of
Sorsogon
A sort of a small siltation
pond where silted and
possibly contaminated
wastewater from the waste
dam at upper elevation, is
impounded. However, during
heavy rains in November,
2005, one side of the rim
(pointed by arrow) of this
pond was destroyed and
lowered to direct the flow of
possibly contaminated water
downhill. (Photo taken Nov.
12, 2005)
 Broken rocks (pointed by
arrow) indicate the remnant
of destroyed part of the rim
of the possibly contaminated
pond. (Photo taken Nov. 12,
2005)
 Outlet of the possibly contaminated
water originating from previous slide
Final destination of the possibly
contaminated water is the sea and connected to existing creek in
with direction going southward the area
towards Sorsogon. (Photo taken
Nov. 12,2005)
Conclusion
 The Philippines is globally important as a centre of
biological diversity. Additionally many poor people
depend on the environment and its bounty to sustain
their lives.
 The economic, cultural and spiritual potential of
Philippine biodiversity for the future of the nation and
especially its poorest citizens, should be given priority
in planning for the future.
Recommendations
I. All current mining applications which will inevitably
cause major environmental damage to critical
watersheds, ecosystems, agriculture or fisheries and
result in social disruption should be required to adopt
best international practices.
 Best International practice requires:

1. That mining licenses should not be issued in

conflict zones as recommended by the Extractive
Industry Review.
2. The adoption of the precautionary approach to
mining as required by the Rio Declaration. This would
require a ban on submarine and riverine tailings
disposal and marine mining.
3. That no further mining licenses should be issued
until adequate enforceable legislation and controls
are put in place to protect the environment and the
economic, social, cultural, civil and political human
rights of the indigenous peoples mining impacted
communities and the needs of future generations.
II. All relevant government agencies should confine
their activities to the impartial regulation of mining.
 The current trend towards self-regulation is

inappropriate to the potential seriousness of mining

impacts.
 The shift of government from ‘regulator of mining’ to

‘active promoter of mining’ sets up a conflict of

interest which tends to undermine confidence in the
impartiality of government agencies, especially at the
community level.
III. Revoke or amend R.A 7942 and enact alternative
legislation to regulate mining, based on a
participatory process that more effectively protects
the interests of the affected local communities,
indigenous peoples and the environment.
IV. Establish a credible independent mining review body
and subject all recently granted mining licenses
under the 1995 Mining Code to a credible
independent review, involving civil society and
affected communities in the process.
V. Sign up to the Extractive Industry Transparency
Initiative (EITI) and publish details of all payments,
taxes and royalties made by mining companies.
 Implement EITI in accordance with the six EITI

criteria.
 The EITI is a coalition of governments, companies,

civil society groups, investors and international

organizations.
 It aims to strengthen governance by improving

transparency and accountability in the extractives

sector
Six EITI criteria
 Regular publication of all material oil, gas and mining
payments by companies to governments
(“payments”) and all material revenues received by
governments from oil, gas and mining companies
(“revenues”) to a wide audience in a publicly
accessible, comprehensive and comprehensible
manner.
 Where such audits do not already exist, payments
and revenues are the subject of a credible,
independent audit, applying international auditing
standards.
 Payments and revenues are reconciled by a credible,
independent administrator, applying international
auditing standards and with publication of the
administrator’s opinion regarding that reconciliation
including discrepancies, should any be identified.
 This approach is extended to all companies including
state-owned enterprises.
 Civil society is actively engaged as a participant in
the design, monitoring and evaluation of this process
and contributes towards public debate.
 A public, financially sustainable work plan for all the
above is developed by the host government, with
assistance from the international financial institutions
where required, including measurable targets, a
timetable for implementation, and an assessment of
potential capacity constraints.
VI. Precautionary Principle should be applied to any
mining or other high impact development to ensure it
only proceeds where there will not be significant
negative impact on the lives of the preexisting
population or on the environment.
VII. Health impact assessments should be performed
and information provided to communities in advance
of mining operations. Monitoring on the basis of
these base line studies should be conducted in the
vicinity of all mining sites, and companies held
accountable for any negative effects observed.
 Companies should be required to provide a bond

against potential health impact.

VIII. Increase efforts to stamp out the spate
of killings of politically active citizens and prosecute
the perpetrators.
 Independent investigation and the potential

assistance should be sought and to be provided for

this by the UN system through the input of the UN
Human Rights Special Rapporteurs, were they invited
to visit and report.
IX. Ratification of UN Declaration on Indigenous
Peoples Rights and International Labour Organization
Convention (No. 169)
X. In line with the 1987 constitutional recognition of
prior indigenous peoples’ rights to their ancestral
lands, government should end the contradictory
practice of allowing the proposition that mining
companies can assert prior rights claims over
indigenous peoples (the traditional owners/occupiers
of the land) ancestral lands .
 Thank You
May Our Children Inherit The
Bowels Of Our Land