DENR Administrative Order No.

34
July 14, 1992
Sube!t" Rules and Re#ulations to $m%lement
Re%ubli! A!t No. &'&( Ot)er*ise +no*n as ,-eo%les
Small S!ale .inin# A!t o/ 1991,.
Pursuant to Section 26 of Republic Act No. 7076, the following rules and regulations
are hereby proulgated for the guidance and copliance of all concerned!
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Se!. 1 "itle. "his Adinistrati#e $rder shall be %nown as &"he Rules and Regulations
'o#erning Areas (eclared as People)s Sall *Scale +ining Areas&.
Se!. 2 Policy. ,t shall be the policy of the State to proote, de#elop, protect and
rationali-e #iable sall*scale ining acti#ities in order to generate ore eployent
opportunities and pro#ide an e.uitable sharing of the nation)s wealth and natural
resources gi#ing due regard to e/isting rights as herein pro#ided.
Se!. 3 $b0ecti#es. "he rules and regulations of this $rder are proulgated towards
the attainent of the following ob0ecti#es!
3.1 "o effect an orderly and systeatic disposition of sall*scale ining areas in the
country1
3.2 "o regulate the sall*scale ining industry with the #iew to encourage their
growth and producti#ity1 and
3.3 "o pro#ide technical, financial and ar%eting assistance and efficient collection of
go#ernent re#enues.
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Se!. 4 (efinition of "ers. "he following ters shall be construed to ean as
hereunder indicated!
4.1 & Acti#e +ining Area& refers to an area under actual e/ploration de#elopent,
e/ploitation or coercial production as deterined by the Secretary after the
necessary field in#estigation or #erification including contiguous and geologically
related areas which are supported by an established geological report, be ongoing to
the sae clapdown and2or under contract with an operator, but in no case to
e/ceed the a/iu area allowed by law1
4.2 &Ancestral 3and& refers to a territory of an ,ndigenous 4ultural 4ounity2ies
5,44s6 ebracing all lands and natural resources which are in the actual and2or
traditional possession of an indigenous cultural counity and its ebers including
areas necessary to ensure their econoic, social and cultural welfare1
4.3 & 7oard& refers to the Pro#incial 24ity ining Regulatory 7oard which shall be the
ipleenting agency of the (8NR and shall be coposed of the (8NR )s
representati#e as 4hairan and ebers coposed of duly appointed
representati#es fro the following $ffices2sectors, naely 'o#ernor or 4ity +ayor 1
sall*scale iners1 large*scale iners, and non*go#ernent organi-ation with
en#ironental concerns1
4.4 &4o*Production Agreeent & is the ode of ining agreeent whereby the
go#ernent, aside fro inputting the ineral resources for which it gets an agreed
share, short of creating a new 0uridical entity, has other contributions for which it
gets another share in addition to the agreed share1
4.8 &(epartent & or (8NR refers to the (epartent of 8n#ironent and Natural
Resources1
4.( &(irector & refers to the Regional 8/ecuti#e (irector 5R8(6 of the (epartent1
4.& & 8n#ironental ,pact& *eans the direct effect of sall *scale ining
operations to all biological, physical, social, econoic and cultural eleents1
4.9 &8.uipent 9tili-ation 4ost& eans all cash e/penditures for the operation and
utili-ation of e.uipent for a single ining unit, which includes fuel, copressed air,
utilities, power supplies, raw aterials, lease of e.uipent, repairs and
aintenance1
4.9 &8/isting +ining Right& refers to perfected and subsisting clai, lease, license,
contract, or perit co#ering a inerali-ed area prior to its declaration as a People)s
Sall Scale +ining Area1
4.1' &'o#ernent Production Share& refers to the share of the go#ernent in a
+ineral Production Sharing Agreeent 5+PSA6 of the go#ernent, 0oint #enture or
co*production which ay be deterined by the 7oard1 ,n 4o*Production and :oint
;enture +ining Agreeents, the go#ernent shall, in addition to recei#ing
go#ernent shares for the ineral resources as prescribed abo#e, be entitled to
copensation for its other contributions which shall be agreed upon by the parties to
the ining agreeent 1
4.11& ,n#estent& eans all capital in#estents sun% by the contractor on a single
ining unit to a%e it operati#e 1 including raw aterials, additional land and
e/isting capital such as processing plants, ine and hauling e.uipent, tools,
infrastructures, capitali-ed e/ploration and de#elopent costs, support facilities and
wor%ing capital. "hese in#estent shall not e/ceed "en +illion Pesos
5P<0,000,000.006 during the effecti#ity of the original contract and its renewal1
4.12 &:oint ;enture Agreeent & is the ode of ining agreeent whereby the
go#ernent, aside for inputting ineral resources for which it gets the agreed
share, has a contribution to the e.uity of the intending operator, and for which e.uity
holding it shall recei#e a proportional share of the profits by way of di#idends1
4.13&3abor 4ost & eans all cash e/penditure such as salaries, wages, allowances
and other benefits, easured on a per etric ton of ore basis, for the reuneration
of personnel directly in#ol#ed in the ining, processing, hauling, handling and
storage of ore concentrate2s or finished product on a single ining unit e/cluding
super#isory and adinistrati#e personnel1
4.14 &3abor *,ntensi#e& eans a ining operation wherein the ratio of labor cost to
e.uipent utili-ation cost to produce, process and ar%et one 5<6 etric ton of ore
e.uals to or not less than one 5<61
4.18 &3icense& refers to the pri#ilege granted to a person to legitiately pursue his
occupation as a sall *scale iner or processor under RA 70761
4.1( &+inerali-ed Areas& refer to areas with naturally occurring ineral deposits of
gold, sil#er, chroite, %aolin, silica, arble, gra#el, clay and other ineral resources1
4.1& &+ineral 3ands& refer to those lands in which inerals e/ist in sufficient
.uantity and grade to 0ustify the necessary e/penditures in e/tracting and utili-ing
such inerals1
4.19 &+ineral Production Sharing Agreeent 5+PSA6& is the ode of ining
agreeent whereby the go#ernent inputs only the ineral resources and for which
it gets an agreed share fro the gross output #alue of the inerals produced, and
net ining re#enue before incoe ta/1
4.19 +ining Plan& refers to a two*year progra of acti#ities and ethodologies
eployed in the e/traction and production of inerals or ore*bearing aterials
including the financial plan and other resources in support thereof1
4.2'&Pri#ate 3ands& refers to lands belonging to pri#ate persons which include
alienable and disposable lands being claied by a holder, claiant or occupant who
has already ac.uired a #ested right thereto under the law although the
corresponding certificate or e#idence of title or patent has not been actually issued1
4.21 &Public lands& refer to lands of the public doain including patrionial property
of the go#ernent 1
4.22 &Processor& refers to a person and 2or entity issued a license to engage in the
treatent of ineral or ore*bearing aterials such as by gra#ity concentration
leaching beneficiation, cyanidation, cutting, si-ing, polishing and other siilar
acti#ities1
4.23 &Secretary& refers to the Secretary of the (epartent of 8n#ironent and
Natural Resources1
4.24 &Single +ining 9nit& eans a ining operation co#ered by a &sall*scale
ining contract&1
4.28 &Sall *scale +ining& refers to ining acti#ities which rely hea#ily on anual
labor using siple ipleents and ethods and do not use e/plosion or hea#y
ining e.uipent 1
4.2(&Sall*scale +iners& refers to =ilipino citi-ens who indi#idually or in the
copany of other =ilipino citi-ens, #oluntarily for a cooperati#e duly licensed by the
(8NR to engage, under the ters and conditions of a contract2license in the
e/traction or reo#al of inerals or ore*bearing aterials fro the ground1
4.2& &Sall*scale +ining 4ontract& refers to co*production, 0oint #enture or +ineral
Production Sharing Agreeent between the go#ernent and a sall*scale ining
contractor for the sall *scale utili-ation of a plot of ineral land1
4.29 &Sall*scale +ining 4ontractor & refers to a cooperati#e of sall scale iners,
registered with the Securities and 8/change 4oission 5S846 or other appropriate
go#ernent agency, which has entered into an agreeent with the go#ernent for
the sall scale utili-ation of a plot of ineral lands within a People)s Sall Scale
ining Area1 and,
4.29 &"raditional Sall*scale +iners& refer to =ilipino citi-ens who ha#e a distincti#e
socio*econoic cultural tradition with a subsistence base focused on sall*scale
ining. "hey li#e in stable sedentary counities and eploy a ining technology
that is labor*intensi#e and siple1 and eploys physical separation ethods for the
e/traction of ineral2s and2or etal2s fro the ore.
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SE0. 8 3,48NS,N'. =ilipino citi-ens of legal age and with capacity to contract are
.ualified for a license as Sall*Scale +iner and 2or Processor. >owe#er, the following
re.uireents shall be subitted to the nearest +ines and 'eo*Sciences
(e#elopent Ser#ice or 48NR$ or P8NR$!
8.1 Sall*Scale +iner
<. Application for duly accoplished as prescribed in Anne/ A1
2. Payent of application fee of P?.00 to the concerned (8NR Regional
$ffice1 and
@. 7arangay 4ertificate of Residency that applicant is a bonafide
resident of the 7arangay for a period of at least si/ 566 onths.
8.2 Processor
<. Application for duly accoplished as prescribed in Anne/ 71
2. Payent of application fee of P20.00 to the concerned (8NR
Regional $ffice1 and
@. 4ertification on the capacity to perfor processing of specific
coodities fro Regional "echnical (irector for ines and
'eosciences (e#elopent Ser#ice.
"he license, to be issued in ,dentification 4ard for, shall be appro#ed by the (8NR
Secretary or his duly authori-ed representati#es and shall ha#e a ter of two 526
years and renewable e#ery two 526 years.
Se!. ( (eclaration of People)s Sall *Scale +ining Areas. "he 7oard created under
RA 7076 shall ha#e the authority to declare and set aside People)s Sall*Scale
+ining Areas in sites onshore suitable for sall*scale ining operations sub0ect to
re#iew by the (8NR Secretary thru the (irector.
"he following onshore areas ay be declared by the 7oard as People)s Sall Scale
+ining Areas!
(.1 Areas already occupied and acti#ely ined by Sall*scale +iners before August
<, <AB7! Pro#ided, "hat such areas are not considered as acti#e ining areas!
Pro#ided, further, "hat the inerals found therein are technically and coercially
suitable for sall*scale ining acti#ities ! Pro#ided, finally, "hat the areas are not
co#ered by e/isting forest rights or reser#ations and ha#e not been declared as
tourist or arine reser#es, par%s and wildlife reser#ations, unless their status as
such are withdrawn by copetent authority1
(.2 Public lands not sub0ect to any e/isting right1
(.3 Public lands co#ered by e/isting ining rights which are not acti#e ining areas1
(.4 Pri#ate lands, sub0ect to certain rights and conditions, e/cept those with
substantial ipro#eents or in bonafide and regular use as a yard, stoc%yard,
garden, plant nursery, plantation, ceetery or burial site, or land situated within one
hundred eters 5<00 eters6 fro such ceetery or burial site, water reser#oir or a
separate parcel of land with an area of ten thousand s.uare eters 5<0,000 s.. .6
or less1
(.8 Ancestral lands with prior consent fro the cultural counities concerned.
Pro#ided, "hat, if ancestral lands are declared as People)s Sall*scale +ining Areas,
the ebers of the cultural counities therein shall be gi#en the priority in the
awarding of sall*scale ining contracts. Pro#ided, further, that in cases where the
,ndigenous 4ultural 4ounities 5,44s6 concerned refuse to allow their area to be
declared a people)s sall scale ining area, their custoary rights to their ancestral
land shall be recogni-ed and protected1
(.( Areas occupied by a counity of traditional sall*scale iners sub0ect to the
appro#al of the said counity. Chere they refuse to allow their areas to be
declared a People)s Sall*scale +ining Area, their custoary rights under their
ining traditions shall be recogni-ed and protected1
,n all of the abo#e cases, the laws, rules and regulations protecting the =ilipino
cultural heritage shall be strictly coplied with.
Se!. & Procedures in the (eclaration of a People)s Sall*Scale +ining Area. "he
following shall be obser#ed in the declaration of sall scale ining areas!
&.1 Petition2Re.uest fro any interested party for declaration of an area as People)s
Sall*Scale +ining Area filed with the 7oard1
&.2 8#aluation of area whether sae is technically or econoically #iable1
&.3 ,dentification of other areas technically and econoically #iable for sall*scale
ining upon the initiati#e of the (8NR or duly authori-ed body1
&.4 ,ssuance of notices by the 7oard to claiowners, operators, pri#ate landowners
and non*go#ernental organi-ations concerned, go#ernent agencies and cultural
counities for clearance and consent as the case ay be 1
&.8 Posting 2Publication of notices on pro#incial or city2unicipal halls and2or ines
and 'eo*Sciences (e#elopent Ser#ice $ffice and other conspicuous places, and2or
publication in a newspaper of local or national circulation once wee% for two 526
consecuti#e wee%s1
&.( Segregation of proposed areas for sall*scale ining purposes upon copletion
of the necessary docuents, sub0ect to re#iew of the Secretary within thirty 5@06
wor%ing days fro the date of receipt of the proposal for such segregation fro the
7oard.
&.& (eclaration of area as People)s Sall*Scale +ining Area by the 7oard in the
e#ent that the area to be segregated and declared for such purpose is found to be in
order by the Secretary after the thirty 5@06 day period of re#iew thereof.
Se!. 9 Procedure in 4ase of $pposition2Protest. Any opposition2protest to the
petition2re.uest that an area be declared as a People)s Sall*Scale +ining area shall
be filed with the 7oard not later than fifteen 5<?6 wor%ing days after the last
publication of the notices as pro#ided for in Section 7 hereof.
"he 7oard shall act on the opposition or protest within fifteen 5<?6 wor%ing days
after it is subitted for resolution. "he decision of the 7oard ay be appealed to the
Secretary within fi#e 5?6 wor%ing days fro receipt of the decision of the 7oard. "he
decision of the Secretary is iediately e/ecutory.
Se!. 9 Registration of Sall*Scale +iners. All persons underta%ing sall*scale
ining acti#ities shall register as sall*scale iners with the 7oard, which has
0urisdiction o#er the Sall*Scale +ining Area. "he following re.uireents shall be
subitted in order to be registered!
9.1 Sall*Scale +iners 3icense issued pursuant to this $rder1 and
9.2 7arangay 4ertificate of Si/ 566 +onths Residency.
Sec. <0 Application to 8nter ,nto a Sall*scale +ining 4ontract. Registered sall*
scale iners ay organi-e thesel#es into cooperati#e2s to be .ualified for the
awarding of a People)s sall*scale +ining 4ontract. Applications as prescribed in
Anne/ 4 hereof shall be accoplished and subitted together the following
re.uireents in fi#e 5?6 copies within fi#e 5?6 days fro the date the application was
secured!
1'.1 Application fee of "hirty Pesos 5P@0.006 per hectare or a fraction thereof
payable to the concerned (8NR Regional $ffice1
1'.2 4ertified "rue 4opy of Articles of ,ncorporation1 and
1'.3 ,nforation on the geographical coordinates 5latitude and longitude 6 of the
area applied for, the a/iu of which is e.ual to <2D of < eridional bloc% of <?&
of latitude and <?& of longitude, containing an appro/iate area of twenty 5206
hectares.
Cithin fifteen 5<?6 wor%ing days upon receipt of the application by the 7oard, it shall
chec% through the control ap if the area is free fro conflict. ,f the area is free, a
written notice re.uesting the applicant to subit a proposed contract shall be sent by
the 7oard.
,n case of conflict2s, the 7oard shall resol#e the sae within fi#e 5?6 wor%ing days
fro the date of the disco#ery thereof.
Se!. 11 Re.uireents for Sall*Scale +ining 4ontract. Cithin ninety 5A06 calendar
days upon receipt of the written notice by the 7oard referred to in Section <0 hereof,
the applicant shall subit the proposed contract indicating therein the following
features!
11.1 +ode of agreeent 5i.e., co*production, 0oint *#enture or +ineral Production
Sharing Agreeent 6
11.2 "ers and conditions of the contract in confority with the pro#isions of
Section <@ hereof 1 and,
11.3 Rights of the sall*scale ining contractor consistent with the pro#isions of
Section <A and 20 hereof.
"he following docuents ust be attached to be proposed contract!
11.4 Sur#ey plan prepared by a deputi-ed geodetic engineer including field notes
co#er and duly notari-ed (escripti#e Sur#ey Report.
11.8 +ining plan prepared by a registered ining engineer! and,
11.( 8n#ironental 4opliance 4ertificate 58446 issued by the concerned (8NR
Regional 8/ecuti#e (irector.
Pro#ided, "hat for the purpose of facilitating the subission of proposed contracts,
the board ay a%e a#ailable saple contracts as guide to applicants in drafting
their proposed contracts.
Se!. 12 Award of People)s Sall*Scale +ining contract. "he 7oard within fifteen 5<?6
wor%ing days upon receipt of the proposed contract shall e#aluate, negotiate and
award the sae, sub0ect to re#iew by the Secretary. Pro#ided that only one people)s
sall*scale ining contract ay be awarded at any one tie to a sall*scale ining
contractor who shall start ining operation within one year fro the date of award.
Pro#ided, further, that priority shall be gi#en to cooperati#es a0ority of whose
ebers are residents of the pro#ince, city or unicipality where the sall *scale
ining area is located.
Se!. 13 "ers and 4onditions of Sall*Scale +ining 4ontract. A contract shall ha#e
a ter of two 526 years, renewable for li%e periods sub0ect to #erification by the
7oard as long as the contractor coplies with the pro#isions set forth in RA 7076,
and confers upon the contractor the right to ine within the contract area! Pro#ided,
"hat, the sall*scale ining contractor shall be under obligation to !
13.1 9nderta%e ining acti#ities only in accordance with a ining plan duly
appro#ed by the 7oard1
13.2 Abide by the ine safety rules and regulations per +eorandu 4ircular No.
+R(*2, Series of <AB?, as ay be applicable and other rules and regulations which
ay be proulgated by the (8NR Secretary1
13.3 4oply with his obligations to the holder of an e/isting ining right2s, if
applicable 1
13.4 Pay all fees, ta/es, royalties or go#ernent production share as are now or
ay hereafter be pro#ided by law1
13.8 4oply with pertinent rules and regulations on en#ironental protection and
conser#ation, particularly those on tree*cutting, ineral processing and pollution
control1
13.( =ile under oath at the end of each onth a detailed production report and
annual financial report to the 7oard1 and
13.& Assue responsibility for the safety of persons wor%ing in the ines.
Sec. <D Cor%er >ealth and Safety. "o ensure the safety and health of sall*scale
iners, the following shall be obser#ed!
14.1 "he contractor ust pro#ide ade.uate sanitation facilities in the for of non*
containating latrines in accordance with the directions pro#ided by the concerned
(8NR Regional $ffice1
14.2 "he contractor ust pro#ide and aintain clean drin%ing water for all wor%ers.
14.3 "he contractor shall be responsible for the health and safety of all indi#idual
contractors or eployees operating within the contract area1
14.4 "he use of ercury, cyanide or any other poisonous substance ust be handled
in accordance with pro#isions as directed by the concerned (8NR Regional $ffice1
and,
14.8 "he contractor ust notify the 7oard within fi#e 5?6 wor%ing days of all
accidents causing either death or ore than fi#e 5?6 days of lost wor%ing tie.
Se!. 18 Protection of the 8n#ironent. ,n order to protect the surrounding
en#ironent of sall*scale ining area, the following shall be coplied with by all
concerned!
18.1 "he contractor ust ensure that all areas of acti#ity within the contract area
are aintained in a clean and organi-ed anner1
18.2 "he contractor ust proceed with the schedule of tailings and waste
anageent and ine site rehabilitation as docuented in the appro#ed +ining
Plan1
18.3 "he contractor shall be responsible for the control and proper disposal, where
applicable, of all wastes produced as a result of ining operations1 and,
18.4 "he contractor shall coply with all en#ironental laws, especially with respect
to water .uality, water course di#ersion, e/cess siltation and undue interference with
e/isting agricultural fishing or other legitiate land and water usage.
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Se!. 1( 8aseent Rights. 9pon the declaration of People)s Sall*scale +ining Area,
the (irector, in consultation with the sall*scale iner2s, operator, claiowner,
landowner or lessor of the affected area, shall deterine the right of the sall*scale
iners to e/isting facilities such as ining and logging roads, pri#ate roads, port and
counication facilities, processing plants which are necessary for the effecti#e
ipleentation of the People)s Sall*Scale +ining Progra, sub0ect to payent of
reasonable fees to the operator, claiowner, landowner or lessor.
Se!.1& Rights of 4laiowner. ,n case a site declared and set aside as a people)s
sall*scale ining area is co#ered by an e/isting ining right, the clapdown and
the sall*scale iners therein are encouraged to enter into a #oluntary and
acceptable contractual agreeent with respect to the sall*scale utili-ation of the
ineral #alues fro the area under clai. ,n case of disagreeent, the claiowner
shall be entitled to the following rights and pri#ileges1
1&.1 8/eption fro the perforance of annual wor% obligations and payent of
occupation fees, rental, and real property ta/es1
1&.2 Sub0ect to the appro#al of the 7oard, free access to the contract area to
conduct etallurgical tests, e/plorations and other acti#ities, pro#ided such acti#ities
do not unduly interfere with the operations of the sall*scale iners1 and
1&.3 Royalty e.ui#alent to one and one half percent 5< <22E6 of the gross #alue of
the etallic ineral output or one percent 5<E6 of the gross #alue of the non*
etallic ineral output to be paid to the claiowner! Pro#ided, "hat, such rights and
pri#ileges shall be a#ailable only if he is not delin.uent in the perforance of his
annual wor% obligations and other re.uireents for the last two 526 years prior to
the effecti#ity of RA 7076.
Se!. 19 Rights of Pri#ate 3andowners. "he pri#ate landowner or lawful possessor
shall be notified of any plan or petition to declare his land as a People)s sall*scale
+ining Area. Said landowner ay oppose such plan or file petition in an appropriate
proceeding and hearing conducted before the 7oard.
,f a pri#ate land is declared as a People)s Sall*Scale +ining Area, the owner and the
sall*scale ining contractor are encouraged to enter into a #oluntary and
acceptable contractual agreeent for the sall*scale utili-ation of the ineral #alues
fro the pri#ate land within thirty 5@06 days. Pro#ided, "hat, the owner shall, in all
cases, be entitled to the payent of actual daages which ay occur as a result of
such declaration.Pro#ided, further, that royalties paid to the owner shall in no case
e/ceed one percent 5<E6 of the gross #alue of the inerals reco#ered as royalty.
Se!. 19 Rights 9nder a People)s Sall*Scale +ining 4ontract. A people)s sall*scale
ining contract entitles the holder to a right to ine e/tract, and dispose of ineral
ores for coercial purposes o#er the area co#ered thereby. Pro#ided, "hat in no
case shall the contract be subcontracted, assigned or otherwise transferred to a
second party.
Se!. 2'. $wnership of +ill "ailings. "he sall*scale ining contractor shall be the
owner of all ill tailings produced fro the contract area. >e ay sell the tailings, or
ha#e the processed in any custo ill in the area. Pro#ided, that if the sall*scale
ining contractor decides to sell its ills tailings, the clapdown or ining operation
shall ha#e a preepti#e right to purchase said ill tailings at the pre#ailing ar%et
price.
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Se!. 21 Adinistrati#e Super#ision o#er the People)s Sall*Scale +ining Progra.
"he following (8NR officials shall e/ercise the following super#isory functions in the
ipleentation of the Progra!
21.1 (8NR Secretary* direct super#ision and control o#er the progra and acti#ities
of the sall*scale iners within the people)s sall*scale ining area1
21.2 (irector* "he (irector shall!
a. Recoend the depth or length of the tunnel or adit ta%ing into
account the ! 5<6 si-e of ebership and capitali-ation of the
cooperati#e1 526 si-e of inerali-e area1 5@6 .uantity of ineral
deposits1 5D6 safety of iners1 5?6 en#ironental ipact and other
considerations1
b. (eterine the right of the sall*scale iners to e/isting facilities in
consultation with the operator, clapdown, landowner or lessor of an
affected area upon declaration of a sall*scale ining area1
c. Recoend to the Secretary the withdrawal of the status of the
people)s sall*scale ining area when it can no longer be feasibly
operated on a sall*scale basis1 and
d. See to it that the sall*scale ining contractors abide by sall*
scale ines safety rules and regulations.
Se!. 22 Pro#incial24ity +ining Regulatory 7oard. "he Pro#incial24ity +ining
Regulatory 7oard created under RA 7076 shall e/ercise the following powers and
functions, sub0ect to re#iew by the Secretary1
22.1 (eclares and segregates e/isting gold*rush area for sall *scale ining1
22.2 Reser#es for the future, inerali-ed areas2ineral lands for people)s sall*
scale ining1
22.3 Awards contracts to sall*scale iners) cooperati#e1
22.4 =orulates and ipleents rules and regulations related to RA 70761
22.8 Settles disputes, conflicts or litigations o#er conflicting clais within ninety5A06
days upon filing of protests or coplaints1 Pro#ided, "hat any aggrie#ed party ay
appeal within fi#e 5?6 days fro the 7oard)s decision to the Secretary for final
resolution otherwise the sae is considered final and e/ecutory1 and
22.( Perfors such other functions as ay be necessary to achie#e the goals and
ob0ecti#es of RA 7076.
Se!. 23 4oposition of the Pro#incial24ity +ining Regulatory 7oard. "he 7oard shall
be coposed of the following!
23.1 Representati#e fro the (8NR Regional $ffice concerned * 4hairan
23.2 'o#ernor or 4ity +ayor or their duly authori-ed representati#e * +eber
23.3 $ne 5<6 Sall*Scale +ining representati#e *+eber or as per Section 2D.@
23.4 $ne 5<6 3arge*Scale +ining representati#e * +eber
23.8 $ne 5<6 representati#e fro a non*go#ernent organi-ation*+eber1 and,
23.( Staff support to the 7oard to be pro#ided by the (epartent.
Se!. 24 4riteria in 4hoosing the Representati#e2s to the 7oard. Representati#es to
the 7oard shall be selected ta%ing into consideration the hereunder criteria!
24.1 >e2She ust be a bonafide eber of and noinated by the organi-ation
he2she represents1
24.2 Preferably, he2she should be residing or ha#e established concern for wor% in
the pro#ince or city as the case ay be1
24.3 ,n case of the abseFce of noinees fro the area, the 4haber of +ines and
Sall*Scale +ining Association shall noinate one 5<6 representati#e each to the
7oard1 and
24.4 "he representati#e fro a non*go#ernent organi-ation ust coe fro an
en#ironental group duly accredited by (8NR.
Se!. 28 4opensation of the +ebers of the 7oard. "he ebers of the 7oard
shall recei#e copensation based on eetings attended at the rate prescribed by
pertinent laws sub0ect to e/isting accounting and auditing procedures.
01A-2ER 6$
7$S0A3 AND RE:;3A2OR4 -RO6$S$ONS
Se!. 2( Payent of "a/es, 'o#ernent Production Share. "he Sall*Scale +ining
contractor shall pay to the go#ernent the following!
2(.1 ,ncoe "a/ as pro#ided in the National ,nternal Re#enue 4ode 5Sec. 2<61
2(.2 Special ,port "a/ 5,f applicable61
2(.3 "ariff (uties 5,f applicable 61
2(.4 ;alue Added "a/ as pro#ided in 8.$. 27@
2(.8 Real Property "a/ 5,f applicable61
2(.( 8/cise "a/ e/cept gold sold to 4entral 7an% which are considered for e/port1
and
2(.& 'o#ernent Share which shall be paid to the +unicipality or 4ity "reasurer
where the ining clais are located and shall be apportioned in accordance with the
3ocal 'o#ernent 4ode of <AA<.
Se!. 2& Payent of =ees and $ther 4harges. "he Sall*Scale +ining 4ontractor
shall pay to the go#ernent the following !
2&.1 An application fee of "hirty Pesos 5P@0.006 per hectare or a fraction thereof1
and,
2&.2 $ccupation fee of =ifty Pesos 5P?0.006 per hectare or a fraction thereof per
year which shall be paid to the unicipality where the contract area is located.
Pro#ided, "hat the initial occupation fee shall be paid on the date the contract is
appro#ed.
Se!. 29. People)s Sall*Scale +ining Protection =und. "he People)s Sall*Scale
+ining Protection =und created in Section 20 of RA 7076 which pro#ides for fifteen
percent 5<?E6 of the national go#ernent )s share of the internal re#enue ta/ or
production share due the 'o#ernent shall be used priarily for inforation
disseination and training of sall *scale iners on safety, health and
en#ironental protection, and the establishent of +ine Rescue and Reco#ery "eas
including the procureent of rescue e.uipent necessary in cases of eergencies
such as landslides, tunnel collapse, or the li%e.
"he =und shall also be ade a#ailable to address the needs of the sall*scale iners
brought about by accidents and2or fortuitous e#ents.
"he 7oard will act as "rustee of the =und.
Se!. 29 Rescission of 4ontracts and adinistration =ines. Awarded contracts ay
rescinded on the following grounds!
29.1 Non*4opliance with the ters and conditions of the contract and that of
e/isting ining laws, rules and regulations including those pertaining to ine safety,
en#ironental protection and conser#ation, tree cutting, ineral processing and
pollution control1
29.2 Non.*copliance with the contractor)s obligations to e/isting ining clai
holders2pri#ate landowners as stipulated in Section <@, <7 and <B of this $rder1
29.3 Non*payent of fees, ta/es, royalties or go#ernent share in accordance with
this $rder and e/isting ining laws1
29.4 Abandonent of ining site by the contractor1 and
29.8 80ectent fro the People)s Sall*scale +ining Area of the 4ontractor by the
go#ernent for reasons of national interest and security.
Chen contracts are rescinded for grounds under Sections 2A.< to 2A.D hereof, the
Secretary ay ipose fines of an aount not less than "wenty "housand Pesos
5P20,000.006 but not ore than $ne >undred "housand Pesos 5P<00,000.006. Non*
payent of the fine iposed shall render the sall*scale ining contractor ineligible
for other sall*scale ining contracts.
Se!. 3' Re#ersion of People)s Sall*Scale +ining Areas. A People)s Sall*Scale
+ining Area ay be re#erted to the State for proper disposition by the Secretary
upon recoendation of the (irector when!
3'.1 ,t can no longer be econoically and efficiently operated on a sall*scale
ining basis1 or
3'.2 "he wor%ing conditions endanger the li#es and health of the iners1 or
3'.3 Sall*scale ining operations cause significant destruction to the
en#ironent 1 or,
3'.4 "here is continuous disturbance of peace and order for three 5@6 consecuti#e
years causing loss of li#es and property.
Chen the go#ernent deterines that a sall*scale ining area can no longer be
legally or feasibly operated on a sall scale basis, the Secretary shall!
a. Pro#ide written notice to all holders of contracts within the area1 and
b. 'i#e each contractor the right of first refusal and reasonable tie frae to pro#ide
the necessary technical and financial capability to apply for a large*scale ining
right1 or
c. Pro#ide reasonable copensation to the contractor for the loss of ining rights, in
case of re#ersion.
01A-2ER 6$$
ASS$S2AN0E 2O S.A33<S0A3E .$NERS
Se!. 31 Assistance to Sall*Scale +iners. "he (8NR in coordination with other
concerned go#ernent agencies including 4entral 7an% of the Philippines shall
e/tend the following assistance to Sall*Scale +iners!
31.1 $rgani-ation of sall*scale iners into cooperati#es1
31.2 "echnical and financial assistance and social ser#ices1
31.3 Processing and ar%eting assistance1
31.4 'eneration of ancillary li#elihood acti#ities1 and
31.8 Ade.uate attention to health and safety standards.
01A-2ER 6$$$
O21ER -RO6$S$ONS
Se!. 32 Sale of 'old. All gold produced by sall*scale iners in any inerali-ed
area or ineral land shall be sold to the 4entral 7an% of the Philippines, or its duly
authori-ed representati#es, at prices copetiti#e with those pre#ailing in the wood
ar%et regardless of #olue or weight.
"he (irector shall furnish the 4entral 7an% with a list of declared sall*scale ining
areas for its guidance in the establishent of buying stations to fully ser#ice the
re.uireents of the sall*scale iners thereat as conditions in the areas warrant, as
pro#ided for under Section <7 of RA 7076.
>owe#er, the iniu weight per bar or dis% for deli#ery and sale to the 4entral
7an% shall not be less than @00 gras. Sall*scale iners with less than @00 gras
of gold ay sell the sae to 4entral ban%)s dully authori-ed representati#e.
Se!. 33 8stablishent and $peration of 4usto +ills. "he establishent and
operation of safe and efficient custo ills to process inerals or ore*bearing
aterials shall be sub0ect to the following conditions!0<
33.1 8stablishent shall be liited to ineral processing -ones duly designated by
the local go#ernent unit concerned upon recoendation by the 7oard 1
33.2 "he establishent of ineral processing -ones shall not disrupt e/isting
adapti#e technological systes1 and,
33.3 4usto ills shall be constituted as withholding agents for the royalties,
production share or other ta/es due the 'o#ernent. Pro#ided, "hat as withholding
agents such custo ills shall be registered with the 7,R.
,n ining areas where the pri#ate sector is unable to establish custo ills, the
7oard shall recoend to the go#ernent to construct such custo ills if #iable.
"he 7oard shall issue licenses for the operation of custo ills and other processing
plants sub0ect to pollution control and safety standards.
,n the issuance of processor)s perit 2license, all pro#isions of the (8NR
Adinistrati#e $rder No. 0?, Series of <ABA, not inconsistent with the pro#isions of
this $rder are hereby adopted.
"he (epartent shall establish assay laboratories to cross*chec% the integrity of
custo ills and to render etallurgical and laboratory ser#ices to iners.
Se!. 34 Areas Not (eclared as People)s Sall*Scale +ining Area. =or areas not
declared as People)s Sall*Scale +ining area, the pertinent rules and regulations of
Presidential decree No. <BAA shall apply.
Se!. 38 +ineral Reser#ations. +ining operations in e/isting ineral reser#ations and
others as ay thereafter be established shall be underta%en by the 'o#ernent or
by a 4ontractor.
01A-2ER $=
-ENA3 -RO6$S$ONS
Se!. 3( Penal Sanctions. ;iolations of the pro#isions of RA 7076 and this $rder shall
be penali-ed with iprisonent of not less than si/ 566 years and shall include the
confiscation and sei-ure of e.uipent, tools and instruents by the 7oard.
01A-2ER =
2RANS$2OR4 -RO6$S$ONS
Se!. 3& Actual $ccupation by Sall*Scale +iners. Sall *scale iners who ha#e
been in actual operation of ineral lands on or before August <, <AB7 as deterined
by the 7oard shall not be dispossess e0ected or reo#ed fro said areas! Pro#ided,
"hat, they coply with the pro#isions of this $rder.
01A-2ER =$
7$NA3 -RO6$S$ONS
Se!. 39 Repealing 4lause. All orders, rules and regulations, and other issuances, or
parts thereof, in conflict or inconsistent herewith are hereby repealed and2or
odified accordingly.
Se!. 39. Separability 4lause. Any section or pro#ision of this $rder which ay be
declared unconstitutional shall not affect the other sections or pro#isions hereof.
Se!. 4' 8ffecti#ity. "his $rder shall ta%e effect fifteen 5<?6 days after its publication
in the $fficial 'a-ette or in a national newspaper of general circulation.

R,4AR($ +.9+A3,
$,4, Secretary