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QUILANG, RONALD D.

BSEM 3
5 Ways to Open Areas for Mining Activities

1. Exploration Permit (EP)


- Permit required before conducting prospecting in an area
- Only valid w/in indicated area
- Valid for 2 years (renewable up to 6 years)
- If there are mineral deposits in the area prospected, the areas without any mineral deposits
will be returned to the government
2. Mineral Agreement (MA)
- Permit required to perform three stages of Mining (exploration, development,
extraction/utilization)
- Valid for 25 years
3. Financial/Technical Assistance Agreement (FTAA)
- Valid for 25 years (renewable up to 50 years)
- Maximum mining area size for this type of Agreement is 5,000 hectares per company
4. Quarry Permit
- Permit required to perform extraction of non-metallic material such as gravel, sand, and
guano
- Permit filing and processing depends on size of area to be mined
- <=5 hectares, filing and processing will be handled at the provincial level
- >5 hectares, filing and processing will be done at the Mines and Geosciences Bureau
5. Small-Scale Mining Permit
- Filing and processing will go through Provincial/City Mining Regulatory Board

For Foreign Owned Companies (60% owned by foreigners) opening of mining areas will only be
available through the Exploration Permit, FTAA, and Mineral Processing Permit

Three Kinds of Agreements


1. MPSA company/permittee will provide all financing, management, and administration
2. Co-Production Agreement (CPA) Government will have a share of the profits in
exchange for minimal technical and financial assistance
3. Joint Venture Agreement (JVA) Government and company applying for permit will work
together with the applicant and form a new company

Patent
A patent is a title; it indicates OWNERSHIP of a mining area

QUILANG, RONALD D.
BSEM 3
Patents are now rare, with most mining areas only available for leasing/rent from the
government
The companies will pay royalties indicated by the BIR
Example of Companies with patents: Benguet Corp., Lepanto Consolidated Mining Corp.

Requirements for Permits

A. Mandatory
1. Duly filled out application form
2. Location/Sketch Map

Done by using NAMRIA topographic map (1:50, 000 scale)

Should be signed by deputized Geodetic Engineer

3. Exploration Work Program


4. Proof of Financial Capability requires bank certification of possibility of loan/credit
5. Proof of Technical Capability requires one or two mining/geodetic engineers to sign
affidavit
6. Affidavit of Undertaking company lists down all approved applications nationwide
7. Environmental Protection and Enhancement Program (EPEP)

For large companies:


1. Articles of Incorporation Bylaws

For MA/FTAA (additional requirements for transition from exploration to development):


1. Submission of 3 year work program
2. Submission of Environmental Compliance Certification (ECC)
3. Project Feasibility Study

B. PROCESSING

1. Area Status and Clearance

QUILANG, RONALD D.
BSEM 3
2. Proof of Presentation of Work Programs to concerned LGUs
3. Proof of Publication, Posting, Broadcasting
4. Consent from Concerned Agencies

Additional Requirement for MA/FTAA

1. Endorsement from 3 LGUs

Areas not allowed for Mineral Rights

1. Within already applied for and approved area


2. Within water reservation