CANCELLATION, REVOCATION AND TERMINATION

OF A PERMIT/MINERAL AGREEMENT/FTAA

Grounds:
1. Late or non-filing of permits
a. Without valid reason
2. 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
3. Non-payment of taxes and fees due the government for 2 consecutive years; and
4. Failure to perform all other obligations, including abandonment, under the permits or agreements
5. Violation of the terms and conditions of the Permits or Agreements
6. Violation of existing laws, policies, and rules and regulations.

Suspension or Cancellation of Tax Incentives and Credits

1. Grounds for cancellation/suspension - The Bureau may suspend or cancel wholly or partially any
incentive granted under the rules and regulations for any cause including the following:
a. Any violation of the Act, rules and regulations implementing the same or of the terms and
conditions in the Mineral Agreement or FTAA
b. Any material misrepresentation or false statements made to the Bureau at any time
before or after the approval/conclusion of its Mineral Agreement or FTAA
c. Whenever the project ceases to be viable and its continued operation would require
additional costs to the economy
i. In this case, the Bureau shall evaluate the status of the project and shall decide if
suspension/cancellation shall be imposed
2. Withdrawal from the Mineral Agreement or FTAA
a. Whenever a Contractor decides to:
i. withdraw from business or
ii. suspend its operations covered by the Agreement
b. Requirements:
i. Written notice to the Director
ii. Before decision is implemented
c. Effects of withdrawal from business operations shall:
i. Automatically cancel the Mineral Agreement or FTAA
ii. Contractor shall cease to be entitled to the incentives
iii. MGB shall determine the effect of withdrawal from business or suspension of
operations covered by the Agreement shall considering the reasons therefor
3. Refund and penalties in case of cancellation of MA or FTAA
a. MGB may recommend to other incentive-dispensing agencies:
i. Cancellation of registration
ii. Without prejudice to the imposition of penalties and refund of incentives availed
of

Effect of Expiration and Cancellation, Revocation And/or Termination of a Permit and Mineral
Agreement/FTAA
1. Upon the expiration of a Mining Permit/Mineral Agreement/FTAA, the mining operations may be
undertaken by:
a. Government through one of its agencies or
 b. Through a qualified independent Contractor
i. Contract shall be awarded to the highest bidder
ii. Contractor/Permit Holder shall have the right to equal the highest bid
1. Upon reimbursement of all reasonable expenses
2. Upon cancellation/revocation/termination of a Mining Permit/ Mineral Agreement/FTAA
a. The Director shall enter in the registration book and
b. Notice shall be posted on the bulletin board of MGB, and Regional Office and
c. The mining area covered shall be open to mining applications
i. The mining operations may be undertaken by the Government through one of its
agencies or
ii. Through a qualified independent contractor
1. The contract shall be awarded to the highest bidder
3. If the cancellation/revocation/ termination of the contract is due to violation of the terms and
conditions
a. Contractor/Permit Holder shall not have the right to equal the highest bid
4. Non-payment of taxes and fees causing the cancellation/revocation/termination of a Mining
Permit/Mineral Agreement/FTAA shall have also the effect of re-opening the mining area to new
applicants