Mining Law

Philippine Mining Act of 1995
Republic Act 7942
People's Small-scale Mining Act of 1991

Republic Act 7076
REPUBLIC ACT NO. 7942
The governing law that regulates mineral resources development in the country by
instituting a new system of mineral resources, exploration, development, utilization and
conservation.
On 2012 E.O. No. 79 was issued to implement reforms to the mininng industry and to
apply consistency in national and local laws pertaining to mining, this bans mining in protected
and tourism areas and holds off the issuance of new mining permits pending the approval of a
new revenue scheme.
Evolution of Mining laws in the Philippines
1. Royal Decree of 1837
2. Philippine Bill of 1902
3. Commonwealth Act No. 137
4. Presidential Decree No. 463
5. Philippine Mining Act of 1995
• Pre-spanish times
-raw gold was a regular trade medium.
• Spanish regime
-The spanish mining law
• American regime
- Adapted the policy of Monometallism
- Philippine Bill of 1902 (2nd mininng act)
-Commonwealth act no. 137 (3rd mining act)
• Japanese Regime
-Ordinance append to the constitution or "Parity Rights"
• Marcos Regime
- Presidential Decree No. 463 (4th mining law)
- Presidential Decree No. 1899 ( Small-sacle mining law)
• 1987 Constitution
- Philippine Mining act of 1995 (5th mining law)
Declaration of Policy
All mineral resources in public or private lands within the territory and exclusive
economic zone of the Philippines are owned by the state.
It shall be the responsibility of the state to promote their combined efforts of the
government and private sector in order to enhance national growth in a way that effectively
safeguards the environment and protects the rights of affected communities.
The Philippine Mining Act of 1995 and its Revised Implementing Rules and Regulations
(RIRR) is considered in the industry today as one of the most socially and environmentally-
sensitive legislations in its class. It has specific provisions that take into consideration:
• Local government empowerment;

• Respect and concern for the indigenous cultural communities;
• Equitable sharing of benefits of natural wealth;
• Economic demands of present generation while providing the necessary foundation for future
generations;
• Worldwide trend towards globalization; and
• Protection for and wise management of the environment.
Ownership of Mineral Resources
All lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils,
all forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other
natural resources are owned by the State. With the exception of agricultural lands, all other
natural resources shall not be alienated. The exploration, development, and utilization of
natural resources shall be under the full control and supervision of the State. The State may
directly undertake such activities, or it may enter into co-production, joint venture, or
production-sharing agreements with Filipino citizens, or corporations or associations at least 60
per centum of whose capital is owned by such citizens. Such agreements may be for a period
not exceeding twenty-five years, renewable for not more than twenty-five years, and under such
terms and conditions as may provided by law. In cases of water rights for irrigation, water
supply, fisheries, or industrial uses other than the development of waterpower, beneficial use
may be the measure and limit of the grant.
The foregoing provision echoes the concept of Jura Ragalia, the Regalian Doctrine
dictates that all lands of the public domain belong to the State, that the State is the source of any
asserted right to ownership of land and charged with the conservation of such patrimony. All
lands not otherwise appearing to be clearly within private ownership are presumed to belong to
the State. Thus, all lands that have not been acquired from the government, either by purchase
or by grant, belong to the State as part of the inalienable public domain. Necessarily, it is up to
the State to determine if lands of the public domain will be disposed of for private ownership.
The government, as the agent of the state, is possessed of the plenary power as the persona in
law to determine who shall be the favored recipients of public lands, as well as under what
terms they may be granted such privilege, not excluding the placing of obstacles in the way of
their exercise of what otherwise would be ordinary acts of ownership.
ORGANIZATIONAL STRUCTURE
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES (DENR)
• The primary agency responsible for the:
• Reservation;
• Management;
• Development; and
• Proper use of the State’s mineral resources including those in reservations, watershed
areas, and lands of public domain (Sec.8, R.A 7942).
• The Secretary shall have the authority:
- To enter into mineral agreements on behalf of the government upon the

recommendation of the Director; and
- Promulgate such rules and regulations as may be necessary to implement the intent
and provisions of the Act (Sec 8, R.A 7942).
Role of Local Government Units in mining projects within their respective jurisdictions:
• To ensure that relevant laws on public notice, public consultation and public
participation are complied with;
• In coordination with the Bureau/Regional Office(s) and subject to valid and existing
mining rights, to 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 hectares;
• To receive their share as provided for by law in the wealth generated from the
utilization of mineral resources and thus enhance economic progress and national
development;
• To facilitate the process by which the community shall reach an informed decision on
the social acceptability of a mining project as a requirement for securing an
Environmental Compliance Certificate;
• To participate in the monitoring of any mining activity as a member of the Multipartite

Monitoring Team;
• To participate as a member of the Mine Rehabilitation Fund Committee;
• To be the recipient of social infrastructure and community development projects for the
utilization of the host and neighboring communities in accordance with Chapter XIV
hereof;
• To act as mediator between the indigenous cultural communities and the contractors as
may be requested;
• To coordinate with the Department and Bureau in the implementation of the Act and
the implementing rules and regulations in their respective jurisdictions;
• To perform such other powers and functions as may be provided for by applicable laws,
rules and regulations.
MINES AND GEOSCIENCES BUREAU
- The Bureau shall advise the Secretary on matters pertaining to geology and mineral
resources exploration, development, utilization, and conservation.
Authority of the Bureau (Sec 9, RA7942):
• To have direct charge in the administration and disposition of mineral lands and
mineral resources;
• To undertake geological, mining, metallurgical, chemical and other researches, as well

as mineral exploration surveys:
PROVIDED:
That for areas closed to mining applications as provided in Sec15, the Bureau can
undertake studies for purposes of research and development.
• To confiscate, after due process, surety, performance and guaranty bonds after notice of
violation;
• To recommend to the Secretary the granting of mineral agreements to duly qualified

persons and shall monitor the compliance by the contractor of the terms and conditions
of the mineral agreements;
• To deputize, when necessary, any member or unit of PNP, barangay, duly registered
NGO or any qualified person to police all mining activities;
• To exercise such other authority vested by the Act and is provided for in these
implementing rules and regulations.
NOTE:
• › The Director may delegate such authority and other powers and functions to the
Regional Director.
• › There shall be as many regional offices in the country as may be established by the
Secretary, upon recommendation of the Director (Sec 10, RA 7942).
Bureau conferred quasi-judicial powers
• Mines and Geosciences Bureau was vested with jurisdictional supervision and control
over all holders of mining claims or applicantsfor and/or grantees of mining licenses,
permits, leases and/or operators thereof, including mining service contracts and service
contractors insofar as their mining activities are concerned.
Section 7 of PD No. 1281
Conferred upon the Bureau original and exclusive jurisdiction to hear and decide cases
involving the cancellation and/or enforcement of mining contracts due to refusal of the claim
owner/operator to abide by the terms and conditions.
Objective:
To make the adjudication of mining cases a purely administrative matter.

DOCTRINE OF PRIMARY JURISDICTION
• Applies if the case is such that its determination requires the expertise, specialized skills
and knowledge of proper administrative bodies because of the technical matters or
intricate questions of facts are involved.
• The Doctrine finds application in a case where the following question involves since it
involves a technical determination:
1. What coal areas should be exploited and developed;
2. Which entity should be granted coal operation contracts over said areas.
• Behooves the courts to stand aside even if they have statutory power to proceed in the
recognition of the primary jurisdiction of an administrative agency.
Reason:
The trial court does not have the competence to decide matters concerning activities
relative to the exploration, exploitation, development, and extraction of mineral resources like
coal.
NOTE:
Administrative decision in matters within the executive jurisdiction can only be set aside
on proof of gross abuse of discretion, fraud or error of law.
Recording System (Sec 14, RA 7942)
• There shall be established a national and regional filing and recording system;
• A mineral resource database system shall be set up in the Bureau which shall include,
among others, a mineral rights management system;
• The Bureau shall publish at least annually, a mineral gazette of nationwide circulation
containing among others, a current list of mineral rights, their location in the map,
mining rules and regulations, other official acts affecting mining, and other information
relevant to mineral resources development;
• A system and publication fund shall be included in the regular budget of the Bureau.
SCOPE OF APPLICATION
Areas open to mining operation (Sec 18, RA 7942)
Subject to any existing rights or reservations and prior agreements of all parties, all
mineral resources in public or private lands including timber or forestlands as defined in
existing laws.
Any conflict that may arise under this provision shall be heard and resolved by the
panel of arbitrators.
Areas closed to mining operations (Sec 19, RA 7942)
Mineral agreement or financial or technical assistance agreement applications shall not

be allowed:
• In military and other government reservations;
EXCEPTION:
Upon prior written clearance by the government agency concerned.
• Near or under public or private buildings, cemeteries, archaeological and historic sites,
bridges, highways, waterways, railroads, reservoirs, dams or other infrastructure
projects, public or private works including plantations or valuable crops;
EXCEPTION:
Upon written consent of the government agency or private entity concerned.
• In areas covered by valid and existing mining rights;
• In areas expressly prohibited by law;
• In areas covered by small-scale miners as defined by law; and
EXCEPTION:
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
• 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.
The following areas may be opened for mining applications subject to following conditions:
• Areas covered by Financial or Technical Assistance Agreement (FTAA) applications

which shall be opened for quarry resources mining applications upon the written
consent of the FTAA applicants:
Provided :
That sand and gravel permit applications shall not require consent from the FTAA,
Exploration permit or Mineral Agreement applicant.
EXCEPTION:
Mineral Agreement or Exploration Permit applications covering sand, gravel and/ or

alluvial gold.
The Director shall formulate the necessary guidelines to govern this provision.
• DENR project areas upon prior consent from the concerned agency.
NOTE:
No ancestral land shall be opened for mining operations without the prior consent of the
indigenous cultural community concerned (Sec 16, RA 7942).
EXPLORATION PERMIT
Exploration Permit
Section 20 of RA No. 7942 provides:
An exploration permit grants the right to conduct exploration for all minerals in specified
areas. The Bureau shall have the authority to grant an exploration Permit to a qualified
person.
 Such permit does not amount to an authorization to extract and carry off the mineral
resources that may be discovered.
 It involves nothing but expenditures for exploring the contract area and locating the
mineral bodies.
 It is an authorization for the grantee to spend its own funds on exploration programs
that are pre-approved by the government, without any right to recover anything should
no minerals in commercial quantities be discovered.
The Mines and Geosciences Bureau shall have the authority to grant an exploration permit to a
qualified person.
Terms and Conditions of the Exploration Permit

An exploration permit shall be for a period of two (2) years, subject to annual review and
relinquishment or renewal upon the recommendation of the Director.
A. Renewable for like periods but not to exceed:

 Non-metallic mineral exploration (4 years)
 Metallic mineral exploration (6 years)
 Can be extended for 2 years for the very purpose of preparing and completing the
feasibility studies and the filing of the declaration of mining project feasibility and
pertinent mineral agreement or FTAA application.
B. No renewal of permit shall be allowed unless:

1. The permittee has complied with the terms and conditions;
2. Has not been found guilty of any violation of this act; and
3. Conduct of feasibility and filing of declaration of mining project feasibility shall be
undertaken during the term of the exploration permit.
C. An exploration permit shall contain the following terms and conditions:

1. The right to explore shall be subject to valid, prior and existing rights of any parties
within the subject area;
2. Exclusive use of the permit and benefit of the permittee or its duly authorized
representative (For Exploration only);
3. Term of the permit;
4. Report under oath of the exploration work program implementation and expenditures
to the Bureau within 30 calendar days;
Content: discrepancies/ deviations; result of the survey; laboratory reports; geological

reports/maps
5. Status Report on its compliance with the Environmental Work Program (EWP);
6. Report of Relinquishment, results of analyses and corresponding expenditures;
7. The Secretary or his duly authorized representative shall annually review the
performance of the permittee;
8. The permittee shall submit a final report upon the expiration of the permit.
Content: All the findings in the permit area; locations of samples; assays; chemical
analyses and assessment of the mineral potential; complete detailed expenditures
incurred during the exploration.
9. In case of diamond drilling, the permittee shall submit a quarter of the core samples to
the Bureau/ Regional Office core library concerned for reference and safekeeping;
10. Offshore exploration activities;
11. Onshore exploration activities;
12. If the permittee applies for a mineral agreement or FTAA over the permit area, the
exploration period covered by the exploration permit shall be considered as the
exploration period of the mineral agreement or FTAA;
13. Compliance with the Implementing rules and regulations;
14. The permittee in the case of a juridical entity shall annually submit a copy of its
Securities and Exchange Commission- received general information sheet; and
15. Other terms and conditions which the Bureau/ Regional Office concerned may deem
appropriate.
Maximum Areas for Exploration Permit

Section 22 or RA No. 7942 provides:
The maximum area that a qualified person may hold at any one time shall be:
1. Onshore, in any one province
a. for individuals, twenty (20) blocks: and
b. for partnerships, corporations, cooperatives, or associations, two hundred (200)
blocks.
2. Onshore, in the entire Philippines
a. for individuals, forty (40) blocks; and
b. for partnerships, corporations, cooperatives, or associations, four hundred (400)
blocks.
3. Offshore, beyond five hundred meters (500m) from the mean low tide level:
a. for individuals, one hundred (100) blocks; and
b. for partnerships, corporations, cooperatives, or associations, one thousand (1,000)
blocks.
Rights and Obligations of the Permittee
An exploration permit shall grant to the permittee, his heirs or successors-in-interest, the
following rights:
1. right to enter
2. right to occupy
3. right to explore the area.
The permittee shall undertake an exploration work on the area as specified by its permit
based on an approved work program.
Declaration of Mining Project Feasibility

A holder of an exploration permit who determines the commercial viability of a project
covering a mining area may, within the term of the permit, file with the Bureau a
declaration of mining project feasibility accompanied by a work program for
development.
Within the term of the permit.
The approval of the mining project feasibility and compliance with other requirements
provided in this Act shall entitle the holder to an exclusive right to a mineral production
sharing agreement or other mineral agreements or financial or technical assistance
agreement.
Effects when Granted:

1. The contractor will be in a position to extract minerals and earn revenues.
2. The contractor’s right and obligations will be covered by an FTAA or a mineral
agreement.
Transfer or Assignment of Exploration Permit

An exploration permit may be transferred or assigned to a qualified person subject to the
approval of the Secretary upon the recommendation of the Director.
Absence of approval will result of an exploration permit to be without legal force and effect.
Reason: Non-qualified entities or individuals could circumvent the strict requirements under
the law by the simple expediency of acquiring the permit from the original permittee.
Registration of Exploration Permit
EVALUATION
Subject area has
 All terms and conditions been cleared
 All pertinent requirements from any conflict
PENDING APPROVAL
 5 months after date of

filing
 Submission of an affidavit
attesting to the full
compliance
 Deemed approved by the
Director
APPROVAL AND ISSUANCE
 Director
 Exploration Permit
 Within 5 working days from the receipt of the affidavit, for registration
and release.
REGISTRATION
 Permitee
 With the Bureau/Regional Office
 Within 15 working days from the receipt of the written notice
 Upon payment of the required fees
NOTE: It is required that the permittee shall comply with the required consultation with the
Sanggunian concerned (Provisions of RA7160, Local Government Code of 1991)
Mining Exploration Permits do not vest in the grantee any permanent or irrevocable right.
Reason: The State, under its all-encompassing police power, may alter, modify or amend the
same, in accordance with the demands of the general welfare.
MINERAL AGREEMENTS
Mineral Agreement is an agreement between a Contractor and the Government wherein the
Government grants to the Contractor the exclusive right to conduct mining operations within,
but not title over, the contract area. Mining operations that are allowed under Mineral
Agreements include development/construction and utilization of mineral resources including
the continuance of exploration works during the conduct of development / construction /
utilization activities.
Modes of Mineral Agreement

For purposes of mining operations, a mineral agreement may take the following forms as herein
defined:
a. Mineral production sharing agreement (MPSA) is an agreement where the Government
grants to the contractor the exclusive right to conduct mining operations within a
contract area and shares in the gross output. The contractor shall provide the financing,
technology, management and personnel necessary for the implementation of this
agreement.
b. Co-production agreement (CA) is an agreement between the Government and the

contractor wherein the Government shall provide inputs to the mining operations other
than the mineral resource.
c. Joint venture agreement (JVA) is 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.
SCOPE: A mineral agreement shall grant to the contractor the exclusive right to conduct mining
operations and to extract all mineral resources found in the contract area. In addition, the
contractor may be allowed to convert his agreement into any of the modes of mineral
agreements or financial or technical assistance agreement covering the remaining period of the
original agreement subject to the approval of the Secretary.
 A qualified person may enter into any of the mineral agreements with the government.
Eligibility
A qualified person may enter into any of the three (3) modes of mineral agreement with
the government for the exploration, development and utilization of mineral resources:
Provided, That in case the applicant has been in the mining industry for any length of
time, he should possess a satisfactory environmental track record as determined by the
Mines and Geosciences Bureau and in consultation with the Environmental
Management Bureau of the Department.
Who are qualified to apply for a Mineral Agreement?

The following Qualified Persons may apply for a Mineral Agreement:
a. Individual - a Filipino citizen of legal age and with capacity to contract; or
b. Corporation, Partnership, Association or Cooperative - organized or authorized for the
purpose of engaging in mining, duly registered in accordance with law, at least sixty
percent (60%) of the capital of which is owned by Filipino citizens.
Maximum Areas for Mineral Agreement

The maximum area that a qualified person may hold at any time under a mineral agreement
shall be:
1. Onshore, in any one province

a. for individuals, ten (10) blocks; and
b. for partnerships, cooperatives, associations, or corporations, one hundred (100)
blocks.
2. Onshore, in the entire Philippines

a. for individuals, twenty (20) blocks; and
b. for partnerships, cooperatives, associations, or corporations, two hundred (200)
blocks.
3. Offshore, in the entire Philippines

a. for individuals fifty (50) blocks;
b. for partnerships, cooperatives, associations, or corporations, five hundred (500)
blocks; and
c. for the exclusive economic zone, a larger area to be determined by the Secretary.
The maximum areas mentioned above that a contractor may hold under a mineral agreement
shall not include mining/quarry areas under operating agreements between the contractor and a
claim owner/lessee/permittee/licensee entered into under Presidential Decree No. 463.
Filing and Approval of Mineral Agreements
All proposed mineral agreements shall be filed in the region where the areas of interest are
located, except in mineral reservations which shall be filed with the Bureau.
The filing of a proposal for a mineral agreement shall give the proponent the prior right to areas
covered by the same. The proposed mineral agreement will be approved by the Secretary and
copies thereof shall be submitted to the President. Thereafter, the President shall provide a list
to Congress of every approved mineral agreement within thirty (30) days from its approval by
the Secretary.
What are the mandatory requirements in the acceptance of an MPSA application?
An MPSA application shall be filed in the Mines and Geosciences Bureau (MGB)
Regional Office (RO) concerned, for mineral and non-mineral reservation areas, using
the prescribed form (MGB Form No. 06-1) through payment of the filing fee and
submission of five (5) sets of the following mandatory requirements:
A. For an Individual
1) Location map/sketch plan of the proposed contract area showing its geographic
coordinates/meridional block(s) 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;
2) Three-year Development/Utilization Work Program (MGB Form No. 6-2) duly
prepared, signed and sealed by a licensed Mining Engineer or Geologist;
3) Proof of technical competence, including, among others, curricula vitae and track
records in mining operations and environmental management of the technical
personnel who shall undertake the activities in accordance with the submitted
Development/Utilization Work Program;
4) Proof of financial capability to undertake the activities pursuant to the
Development/Utilization Work Program, such as a copy of the income tax return
for the preceding year and proof of bank deposit or credit line in the amount of
at least Two Million Five Hundred Thousand Pesos (PhP 2,500,000.00);
5) Mining Project Feasibility Study (MGB Form No. 5-3); and
6) Complete and final exploration report pertaining to the area.
B. For a Corporation, Partnership, Association or Cooperative

1) Duly certified Certificate of Registration, Articles of Incorporation / Partnership /
Association and By- Laws issued by the Securities and Exchange Commission or
authorized Government agency concerned, or Certification from the
Bureau/Regional Office concerned that the said documents are duly registered in
that Office;
2) Location map/sketch plan of the proposed contract area showing its geographic
coordinates/meridional block(s) 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;
3) Three-year Development/Utilization Work Program (MGB Form No. 6-2) duly
prepared, signed and sealed by a licensed Mining Engineer or Geologist;
4) Proof of technical competence, including, among others, curricula vitae and track
records in mining operations and environmental management of the technical
personnel who shall undertake the activities in accordance with the submitted
Development/Utilization Work Program;
5) Affidavit of Undertaking for corporation, partnership, association or
cooperatives (Annex A of DENR Memorandum Order No. 99-10) declaring:
a. The list of applications filed and the Mining Permit(s)/Contract(s) granted

to the applicants, including the corresponding hectarage and location of
the areas, disaggregated on a per province basis; and
b. The list of other Applicant(s)/Contractor(s)/Permittee(s) in which more
than seventy percent (70%) of the authorized capital stock is held by
stockholders of the applicant, including the corresponding hectarage,
disaggregated on a per province basis.
6) Mining Project Feasibility Study (MGB Form No. 5-3); and

7) Complete and final exploration report pertaining to the area
C. For holders of valid and existing mining lease contracts, operating agreements,
Quarry Permits/licenses or unperfected mining/quarry claims, the following are
additional requirements to the above requirements, whenever applicable:
1) Certification from the Regional Office concerned that the mining/quarry claims
are valid and subsisting;
2) Appropriate environmental report on the rehabilitation of mined-out and/or
mine waste/tailings-covered areas and anti-pollution measures undertaken
during the mining operations;
3) Environmental Compliance Certificate (ECC) for any new phase outside of the
originally approved operation under the mining project;
4) Mining Project Feasibility Study (MGB Form No. 5-3)
Provided, That a Mineral Agreement applicant with existing mining operation
may submit, in lieu of the Mining Project Feasibility Study, a Project Description and
a detailed financial statement of its operations incorporating therein the social and
environmental expenditures, taxes and fees paid (MGB Form No. 5-3A); and
5) Approved survey plan of the mining area.
Any application with incomplete mandatory requirements shall not be accepted.
What are the other additional requirements after an MPSA application is filed?
1. Environmental Compliance Certificate (ECC);
2. Environmental Protection and Enhancement Program (MGB Form No. 16-2);
3. Certificate of Environmental Management and Community Relations Record
(CEMCRR)/Certificate of Exemption and
4. Approved survey plan;
5. Certification Precondition from the National Commission on Indigenous Peoples
attesting that –
a. The proposed permit area does not overlap any ancestral land/domain claim in
case of non-Indigenous People (IP) area; or
b. The Free and Prior Informed Consent (FPIC) has been issued by the Indigenous
Cultural Community (ICC)/IP concerned.
D. For Offshore applications, the following are the requirements:

1. Name, port of registry, tonnage, type and class of survey vessel(s) or platform(s). If a
foreign vessel is to be used, the expected date of first entry or appearance and final
departure of the survey vessel shall be provided and the necessary clearances obtained
2. A certification from the Coast and Geodetic Survey Department of NAMRIA that the
proposed Exploration Work Program was duly registered to provide update in the
publication of “Notice to Mariners” together with a list of safety measures to be
regularly undertaken to ensure the safety of navigation at sea and prevent accident
3. An agreement to:
 Properly identify all installations, vessels and other crafts involved in exploration
recognizable to all vessels within reasonable distance;
 Notify the Bureau 30 calendar days prior to the intention to remove all scientific
installations or equipment and apparatus; and
 Allow the Bureau’s authorized personnel, the Philippine Coast Guard and other
authorized persons during reasonable hours to board the vessel(s) while within the
Exclusive Economic Zone.
4. Other supporting documents that may required by the Mines and Geosciences Bureau.
Assignment/Transfer
Any assignment or transfer of rights and obligations under any mineral agreement
except a financial or technical assistance agreement shall be subject to the prior approval
of the Secretary. Such assignment or transfer shall be deemed automatically approved if
not acted upon by the Secretary within thirty (30) working days from official receipt
thereof, unless patently unconstitutional or illegal.
Withdrawal from Mineral Agreements
The contractor may, by giving due notice at any time during the term of the agreement,
apply for the cancellation of the mineral agreement due to causes which, in the opinion
of the contractor, make continued mining operations no longer feasible or viable. The
Secretary shall consider the notice and issue its decision within a period of thirty (30)
days: Provided, That the contractor has met all its financial, fiscal and legal obligations.
Terms (Mineral Agreement)

Mineral agreements shall have a term not exceeding twenty-five (25) years to start from
the date of execution thereof, and renewable for another term not exceeding twenty-five
(25) years under the same terms and conditions thereof, without prejudice to changes
mutually agreed upon by the parties. After the renewal period, the operation of the mine
may be undertaken by the Government or through a contractor.
After the 50-year term of the Mineral Agreement, the operation of the mine may be undertaken by the
Government or through a Contractor.
The contract for the operation of a mine shall be awarded to the highest bidder in a public
bidding after due publication of the notice thereof: Provided, That the contractor shall have the
right to equal the highest bid upon reimbursement of all reasonable expenses of the highest
bidder.
Publication, Posting, Radio Announcement

Within 15 working days from receipt of the necessary area clearances, the Bureau/Regional
Office concerned shall issue to the applicant the Notice of Application for Mineral agreement for
publication, posting and radio announcement which shall be done within 15 working days from
receipt of the notice.
The notice shall have the following:

 Name and complete address of the applicant;
 Duration of the agreement applied for;
 Extent of operation to be undertaken;
 Area location;
 Geographical coordinates/meridional block(s) of the proposed contract area; and
 Location map/sketch plan with index map relative to major environmental features and
projects and to the nearest municipalities.
Registration of Mineral Agreement

The Director shall notify the contractor to cause the registration of its mineral agreement with
the Bureau for areas inside mineral reservations or with the concerned Regional Office for areas
outside mineral reservations with 15 working days from receipt of the written notice.
Issuance of Special Mines Permit

In cases where public welfare so requires, the Secretary may, after verification and evaluation of
the Bureau, grant other forms of special mines permit so as to address the specific conditions in
the area concerned.
Authority to Cancel Mineral Agreements
The DENR Secretary and not the Panel of Arbitrators (POA) has the jurisdiction to cancel
FINANCIAL OR TECHNICAL ASSISTANCE AGREEMENT
A Financial or Technical Assistance Agreement may be entered into between a Contractor and
the Government for the large-scale exploration, development and utilization of gold, copper,
nickel, chromite, lead, zinc and other minerals except for cement raw materials, marble, granite,
sand and gravel and construction aggregates.
DUE PROCESS CLAUSE:

Narra Nickel Mining and Development Corporation v. Redmont Consolidated Mines Corporation, GR
No. 195580:
The Court, through Justice Perlas-Bernabe, stressed that an FTAA entered into by the
President on behalf of the State involves a matter of public concern in that it covers the
largescale exploration, development, and utilization of mineral resources. Hence, it is
properly classified as a government or public contract which is “generally subject to the
same laws and regulations which govern the validity and sufficiency of contracts
between private individuals.”
Eligibility
Any qualified person with technical and financial capability to undertake large-scale
exploration, development, and utilization of mineral resources in the Philippines may enter
into a financial or technical assistance agreement directly with the Government through the
Department.
 Any Filipino citizen of legal age and with capacity to contract;

 A Filipino-owned Corporation, Partnership, Association or Cooperative, at least sixty
percent (60%) of the capital is owned by Filipino citizens, organized or authorized for
the purpose of engaging in mining with technical and financial capability to undertake
mineral resources development and duly registered in accordance with the law; or
 A Foreign-owned Corporation, Partnership, Association or Cooperative duly registered
in accordance with law and in which less than fifty percent (50%) of the capital is owned
by Filipino citizens.
Minerals subject of FTAA

An FTAA may be entered into for the exploration, development and utilization of gold, copper,
nickel, chromite, lead, zinc and other minerals.
No FTAAs may be granted with respect to cement raw materials, marble, granite, sand and
gravel and construction aggregates.
Maximum Contract Area

The maximum contract area that may be granted per qualified person, subject to relinquishment
shall be:
a. 1,000 meridional blocks onshore; (or approximately 81, 000 hectares onshore)
b. 4,000 meridional blocks offshore; (324, 000 hectares offshore) or
c. Combinations of a and b provided that it shall not exceed the maximum limits for
onshore and offshore areas.
Terms and Conditions

The following terms, conditions, and warranties shall be incorporated in the financial or
technical assistance agreement, to wit:
a. A firm commitment in the form of a sworn statement, of an amount corresponding to

the expenditure obligation that will be invested in the contract area: Provided, that such
amount shall be subject to changes as may be provided for in the rules and regulations
of this Act;
b. A financial guarantee bond shall be posted in favor of the Government in an amount

equivalent to the expenditure obligation of the applicant for any year;
c. Submission of proof of technical competence, such as, but not limited to, its track record
in mineral resource exploration, development, and utilization; details of technology to
be employed in the proposed operation; and details of technical personnel to undertake
the operation;
d. Representations and warranties that the applicant has all the qualifications and none of
the disqualifications for entering into the agreement;
e. Representations and warranties that the contractor has or has access to all the financing,
managerial and technical expertise and, if circumstances demand, the technology
required to promptly and effectively carry out the objectives of the agreement with the
understanding to timely deploy these resources under its supervision pursuant to the
periodic work programs and related budgets, when proper, providing an exploration
period up to two (2) years, extendible for another two (2) years but subject to annual
review by the Secretary in accordance with the implementing rules and regulations of
this Act, and further, subject to the relinquishment obligations;
f. Representations and warranties that, except for payments for dispositions for its equity,
foreign investments in local enterprises which are qualified for repatriation, and local
supplier’s credits and such other generally accepted and permissible financial schemes
for raising funds for valid business purposes, the contractor shall not raise any form of
financing from domestic sources of funds, whether in Philippine or foreign currency, for
conducting its mining operations for and in the contract area;
g. The mining operations shall be conducted in accordance with the provisions of this Act
and its implementing rules and regulations;
h. Work programs and minimum expenditures commitments;
i. Preferential use of local goods and services to the maximum extent practicable;
j. A stipulation that the contractors are obligated to give preference to Filipinos in all types
of mining employment for which they are qualified and that technology shall be
transferred to the same;
k. Requiring the proponent to effectively use appropriate anti-pollution technology and

facilities to protect the environment and to restore or rehabilitate mined out areas and
other areas affected by mine tailings and other forms of pollution or destruction;
l. The contractors shall furnish the Government records of geologic, accounting, and other
relevant data for its mining operations, and that book of accounts and records shall be
open for inspection by the government;
m. Requiring the proponent to dispose of the minerals and byproducts produced under a
financial or technical assistance agreement at the highest price and more advantageous
terms and conditions as provided for under the rules and regulations of this Act;
n. Provide for consultation and arbitration with respect to the interpretation and
implementation of the terms and conditions of the agreements; and
o. Such other terms and conditions consistent with the Constitution and with this Act as
the Secretary may deem to be for the best interest of the State and the welfare of the
Filipino people.
Negotiations
A financial or technical assistance agreement shall be negotiated by the Department and
executed and approved by the President. The President shall notify Congress of all
financial or technical assistance agreements within thirty (30) days from execution and
approval thereof.
Filing and Evaluation of Financial or Technical Assistance Agreement Proposals

All financial or technical assistance agreement proposals shall be filed with the Bureau
after payment of the required processing fees. If the proposal is found to be sufficient
and meritorious in form and substance after evaluation, it shall be recorded with the
appropriate government agency to give the proponent the prior right to the area covered
by such proposal: Provided that existing mineral agreements, financial or technical
assistance agreements and other mining rights are not impaired or prejudiced thereby.
The Secretary shall recommend its approval to the President.
Publication, Posting and Radio Announcement

Within 15 working days from receipt of the necessary area clearances, the Bureau/Regional
Office concerned shall issue to the applicant the Notice of Application for FTAA for publication,
posting and radio announcement which shall be done within 15 working days from receipt of
the notice.
The notice shall have the following:

1) Name and complete address of the applicant;
2) Duration of the FTAA applied for;
3) Extent of operation to be undertaken;
4) Area location;
5) Geographical coordinates/meridional block(s) of the proposed contract area; and
6) Location map/sketch plan with index map relative to major environmental features and
projects and to the nearest municipalities.
Term of Financial or Technical Assistance Agreement

A financial or technical assistance agreement shall have a term not exceeding twenty-
five (25) years to start from the execution thereof, renewable for not more than twenty-
five (25) years under such terms and conditions as may be provided by law.
The following are the phase of mining operations of an FTAA:

a. Exploration - up to two (2) years from date of FTAA execution, extendible for another
two (2) years;
b. Pre-feasibility study, if warranted - up to two (2) years from expiration of the
exploration period;
c. Feasibility study - up to two (2) years from the expiration of the
exploration/prefeasibility study period or from declaration of mining project feasibility;
and
d. Development, construction and utilization – remaining years of FTAA.
Option to Convert into a Mineral Agreement

The contractor has the option to convert the financial or technical assistance agreement
to a mineral agreement at any time during the term of the agreement, if the economic
viability of the contract area is found to be inadequate to justify large-scale mining
operations, after proper notice to the Secretary as provided for under the implementing
rules and regulations: Provided, That the mineral agreement shall only be for the
remaining period of the original agreement.
In the case of a foreign contractor, it shall reduce its equity to forty percent (40%) in the
corporation, partnership, association, or cooperative. Upon compliance with this
requirement by the contractor, the Secretary shall approve the conversion and execute
the mineral production-sharing agreement.
Assignment/Transfer
A financial or technical assistance agreement may be assigned or transferred, in whole or
in part, to a qualified person subject to the prior approval of the President: Provided,
That the President shall notify Congress of every financial or technical assistance
agreement assigned or converted in accordance with this provision within thirty (30)
days from the date of the approval thereof.
Withdrawal from Financial or Technical Assistance Agreement

The contractor shall manifest in writing to the Secretary his intention to withdraw from
the agreement, if in his judgment the mining project is no longer economically feasible,
even after he has exerted reasonable diligence to remedy the cause or the situation. The
Secretary may accept the withdrawal: Provided, That the contractor has complied or
satisfied all his financial, fiscal or legal obligations.
G. QUARRY OPERATIONS
QUARRYING
- The process of extracting, removing, and disposing quarry resources found on or

underneath the surface of public land.
- Quarry sand and gravel, guano and gemstones resources in private or public lands may
be extracted, removed, and utilized.
Provided, that:
A. In large-scale quarry operations involving cement raw materials, marble and granite,
any qualified person may apply for a mineral agreement subject to the provisions of
Chapter IV of the Implementing Rules and Regulations.
B. That a large-scale quarry operation, including a sand and gravel operation, during
the development/construction/operating period under a Mineral Agreement, shall
involve a mechanized operation and a final mining area not exceeding the following:
1. For sand and gravel, including lahar

a. For individuals – 40 hectares
b. For Corporation/Association/Partnership/Cooperative – 100 hectares
2. For marble, granite, and/or construction aggregates
a. For individuals – 200 hectares
b. For Corporation/Association/Partnership/Cooperative – 500 hectares
3. For cement raw materials such as limestone, shale, and silica
a. For individuals – 1, 000 hectares
b. For Corporation/Association/Partnership/Cooperative – 2, 000 hectares
C. The above shall be subject to other pertinent conditions as are provided by law
QUARRY RESOURCES
- Refer to any common rock or other mineral substances as the Director may declare to be
quarry resources such as andesite, basalt, conglomerate, coral sand, diatomaceous earth,
diorite, decorative stones, gabbro, granite, limestone, marble, marl, red burning clays for
potteries and bricks, rhyolite, rock phosphate, sandstone, serpentine, shale, tuff, volcanic
cinders, and volcanic glass.
- Provided that such quarry resources do not contain metals or metallic constituents
and/or other valuable minerals in economically workable quantities
- Provided, that non-metallic minerals such as kaolin, feldspar, bull quartz, quartz or
silica, sand and pebbles, bentonite, 10 talc, asbestos, barite, gypsum, bauxite, magnesite,
dolomite, mica, precious and semiprecious stones and other non-metallic minerals that
may later be discovered and which the Director declares to be of economically workable
quantities, shall not be classified under the category of "Quarry Resources".
PROVINCIAL/CITY MINING REGULATORY BOARD
- Section 70 of the CIRR provides that:

a. The Provincial/City Mining Regulatory Board shall accept, process, and evaluate
applications and determine administrative charges and fees for quarry
b. It shall be chaired by the concerned Regional Director or their authorized
representative with the following members:
1. Provincial Governor or City Mayor
2. Small scale mining representatives
3. Large scale mining representatives
4. Department duly accredited environmental non-governmental organization
representative
 The concerned regional office shall provide the technical secretariat to the Provincial or
City Mining Regulatory Board
QUARRY PERMIT
- Permit granted to a Qualified Person for the extraction and utilization of quarry
resources on public or private land.
- Any qualified person can apply for a quarry permit with the Provincial Governor or City
Mayor, through the Provincial/City Mining Regulatory Board for the extraction, removal,
and disposition of quarry resources:
a. covering an area of not more than 5 hectares, and a production rate of not more than
50, 000 tons annually
b. project cost is not more than P10, 000, 000
c. For a term of 5 years, but not exceeding 25 years
- Provided that:
a. Application for renewal shall be filed before the expiry date of the permit
b. The permit holder has complied with all the terms and conditions of the Permit and
has not been found guilty of violation of any provision of RA 7942 and its
implementing rules and regulations
c. No quarry permit shall be issued or granted on any area covered by a Mineral
Agreement or FTAA, except on areas where a written consent is granted by the
Mineral Agreement or FTAA contractor
d. The existing quarry permits at the effectivity of DAO No. 99-57 under which the
production rate is more that P50, 000 tons annually and/or whose project cost is more
than P10, 000, 000 shall not be renewed but shall be given preferential right to a
Mineral Agreement application which shall be evaluated and approved in
accordance with Chapter VI hereof and all other applicable provisions of the Act and
these implementing rules and regulations.
SAND AND GRAVEL PERMITS
A. Commercial Sand and Gravel Permit

- Any qualified person may apply with the which are used in their natural state without
undergoing processing with the following conditions:
a. covering an area of not more than 5 hectares
b. for a term of 1 year from date of issuance; renewable for 1 year, and in such
quantities as may be specified in the permit.
- Only 1 permit shall be granted at any time under such terms and conditions provided
B. Industrial Sand and Gravel Permit
1. Any qualified person may apply with the Provincial Governor/City Mayor through
the Provincial/City Mining Regulatory Board for the extraction, removal, and
disposition of sand and gravel and other loose or unconsolidated materials that
necessitate the use of mechanical processing with the following conditions:
a. covering an area of not more than 5 hectares at any one time
b. For a term of 5 years from the date of issuance, renewable for like periods but not to
exceed a total of 25 years
2. Any qualified person may apply with the Regional Director through the regional
office for areas
a. covering more than 5 hectares but not to exceed 20 hectares at any one time
b. for a term of 5 years renewable, but not to exceed a total of 25 years
c. only one permit shall be granted
3. Any qualified person may apply for an Exclusive Sand and Gravel Permit with the
Provincial Governor/City Mayor through the Provincial/City Mining Regulatory
Board for the extraction, removal, and utilization of sand and gravel and other loose
or unconsolidated materials from public land for its own use
a. covering an area of not more than 1 hectare
b. for a non-renewable period not exceeding 60 calendar days and
c. a maximum volume of 50 cubic meters
d. No commercial disposition
 The quarry or sand and gravel permit holder, its heirs or successors-in-interest shall
have the right to exclusively extract, remove, dispose, and/or utilize quarry and sand
and gravel resources within the permitted area
GRATUITOUS PERMITS
A. Government gratuitous permit

- Any government entity/instrumentality in need of quarry, sand and gravel or loose or
unconsolidated materials in the construction of a building or infrastructure for public
use for a period coterminous with the construction stage of the project, but not to exceed
1 year in public or private lands covering an area of not more than 2 hectares
B. Private gratuitous permit
- Any land owner may apply with the Provincial Governor/City Mayor for the extraction,
removal, and disposition of sand and gravel and other loose materials from his/her land
for a non-renewable period of 60 days provided that there is an adequate proof of
ownership and that the materials are personal use.
GUANO PERMIT
- Any qualified person whose domicile is within the municipality where the are applied
for is located may apply for a permit for a term of 1 years or upon the extraction of the
quantity as specified in the permit
- Only 1 guano permit shall be issued for the same cave
- The maximum area shall not be more that 5 hectares
A. Gratuitous guano permit

- May be granted to an individual for his/her personal use or to a government agency in
need of the material within a specified period and in such quantity of not more than
2,000 kg
B. Commercial guano permit
- May be granted to a qualified person for sale or commercial disposition within a
specified period and in such quantity as may be specified
Rights and obligations of the permit holder
1. Right to exclusively conduct, extract, remove, or dispose guano resources within the
area with full rights of ingress and egress
2. Right to occupy the same
Requirements
- Permit application shall be filed by the applicant personally or through its duly
authorized representative with the Provincial/City Mining Regulatory Board
- Any application that transcends into two or more regions shall be filed with the
Provincial/City Mining Regulatory Board which has the largest area covered by the
application, and had copy furnished the other Board concerned by the applicant
- A permit application shall be accepted only upon payment of the required fees to the
Provincial/City Mining Regulatory Board
- Any application with incomplete mandatory requirements shall not be accepted
- Upon payment of the filing and processing fees, the applicant shall submit at least two
sets of the following mandatory requirements applicable:
a. Location map/sketch plan of the proposed permit area showing the geographic
coordinates/meridional blocks and boundaries in relation to major environmental
features and other projects using NAMRIA topographic map in a scale of 1:50, 000
duly prepared, signed, and sealed by a deputized Geodetic Engineer
b. Certification from the Barangay Captain that the applicant has established domicile
in the area applied for
c. Area clearance from the Government agencies/LGUs concerned that may be affected
by the permit application or written permission from the landowner(s) of the area
applied for
d. ECC prior to extraction, removal, disposition and/or utilization and EPRP as
provided in Section 169
e. Declaration of the approximate quantity of guano resources available in the permit
area applied for
f. Other supporting papers as may be required
GEMSTONE GATHERING PERMIT
- Any qualified person may apply with the Provincial Governor/City Mayor through the
Provincial/City Mining Regulatory Board for the extraction, removal, and utilization of
loose stones useful as gemstones
a. for a term not exceeding 1 year from the date of issuance
b. renewable for like periods
- application for renewal shall be filed before the expiry date of the permit
- The permit holder should have complied with all the terms and conditions of the
original permit and has not been found guilty of violation of any provision of the Act
and its implementing rules and regulations
CANCELLATION, REVOCATION, TERMINATION OF QUARRY, SAND AND GRAVEL,
GRATUITOUS, GUANO, AND GEMSTONE GATHERING PERMIT
Grounds:
1. Failure to comply with the terms and conditions of the permit

2. Violations of any provisions
3. Failure to pay excise tax for two consecutive years
4. Any misrepresentations in any statements made in the application
5. If the commodity stipulated in the permit has been exhausted before the expiry date
6. When national interest and public welfare so require or for environmental protection or
ecological resources
TRANSPORT, SALE, AND PROCESSING OF MINERALS
Ore Transport Permit
A permit specifying the origin and quantity of non-processed minerals shall be required for
their transport
- The absence of the permit will be considered illegal mining and shall be a sufficient
cause for the government to collect or confiscate the ore and minerals.
A. MINERAL TRADING REGISTRATION

- No person shall be engaged in the trading of minerals and ore either locally or
internationally unless registered by Department of Trade and Industry and accredited
by this department
B. MINERALS PROCESSING PERMIT

- No person shall engage in processing of minerals without first securing the minerals
processing permit from the secretary.
C. ENVIRONMENTAL IMPACT ASSESSMENT

- Except during the exploration period of a mineral agreement or financial or technical
assistance agreement or an exploration permit, as environmental clearance certificate
shall be required under the Philippine Environmental Impact Assessment System
provided that a completed ecological environmental impact assessment.
SAFETY AND ENVIRONMENTAL PROTECTION
All contractors and permittees shall strictly comply with all the mines safety rules and
regulations as may be promulgated by the Secretary concerning the safe and sanitary upkeep
of the mining operations and achieve waste-free and efficient mine development.
Mine Labor
Q: Who are allowed to engage in Mine Labor?
A: In mining operations, employees must be at least 16 years old.
In underground Mining, employees must be at least 18 years old.
Q: When does the law require a licensed mining engineer and one registered foreman?
A: If the mining and quarrying operation employ more than 50 workers.
Note: The mining engineer must have at least five years of experience in mining operations.
Duties of the mines regional director:

 Require the contractor to remedy any practice connected with mining or quarrying
operations, which is not in accordance with safety and antipollution laws and regulations.
 Summarily suspend the mining or quarrying operations in case of imminent danger to life
or property.
Q: When is the suspension lifted?

A: Once the danger is removed or appropriate measures are taken by contractor or permittee.
SURFACE RIGHTS
 ownership rights in a parcel of real estate that are limited to the surface. It means the
entire surface of the land, reserving the minerals to the grantor.
 It does not include air rights or subsurface rights.
Easement Right
Mining areas, owned, occupied, or leased by other persons convenient for mining operations,
can be entered and occupied by the contractor upon just compensation.
Purpose?
 To build roads, railroads, mills, waste dump sites, tailings ponds, warehouses, staging
or storage areas and port facilities, tramways, runways, airports, electric transmission,
telephone or telegraph lines, dams and their normal flood and catchment areas, sites for
water wells, ditches, canals, new river beds, pipelines, flumes, cuts, shafts, tunnels, or
mills and other essential infrastructures in a mining operation.
Entry into the Private Lands and Concession Areas
 Subject to prior notification, holders of mining rights shall not be prevented from entry into
private lands and concession areas by surface owners, occupants, or concessionaires when
conducting mining operations therein;
 Any damage done to the land as a consequence of such operations shall be properly
compensated;
 The person authorized to conduct mining operations shall, prior thereto, post a bond with
the regional director.
Q: What will the permittee do in case the surface owner of the land, occupant or concessionaire
cannot be found?
A: He shall notify the concerned Regional Director, copy furnished the concerned local officials
in case of private land or the concerned Government agency, in case of concessionaires.
Note: A sworn declaration by the holder of mining right that they had exerted all efforts to locate such
surface owner/occupant/concessionaire should be attached on the notice.
Q: What is the remedy of the permittee in case where the surface owner of the land, occupant or
concessionaire thereof refuse to allow him entry into the land despite its receipt of the written
notice or refuse to receive said written notice or in case of disagreement over such entry?
A: Bring the matter before the Panel of Arbitrators for proper disposition.
Q: Are mining contractors given the right to enter a timber concession and cut timber within the
surface area belonging to another?
A: Yes, as embodied in section 2 of PD No. 705, the Revised Forestry Code of the Philippines,
stating that “the multiple uses of forest lands shall be oriented to the development and progress
requirements of the country, the advancement of science and technology, and the public
welfare.
TRANSPORT OF MINERAL/MINERAL PRODUCTS AND

CONFISCATION, SEIZURE, AND DISPOSITION OF ILLEGALLY
SOURCED MINERALS/MINERAL PRODUCTS
Ore Transport Permit

 (MGB Form No. 12-1)
 A permit issued by the Regional director who has jurisdiction over the area, or his duly
authorized representative to enable traders, retailers, processors and other mining rights
holder to validly transfer the minerals/mineral products and by products.
 Transport of sand and gravel shall be covered by a Delivery Receipt.
Q: When may a certification be issued instead of an ore transport permit?

A: When ore samples to be transported exclusively for assay and pilot tests purposes does
exceed two (2) metric tons.
 For MPSA and FTAA Contractors, Ore Transport Permits shall be issued: Provided, that
a written notice prior to shipment or transport of ores shall be furnished to the
concerned Regional Office for the purpose of monitoring mining activities in the contract
area.
 Administrative Order No. 2017-01 requires mining contractors to take part in the
Philippine Extractive Industries Transparency Initiative (PH-EITI) in accordance with
the requirements set by Philippines Multi-stakeholders Group.
Q: What happens if the mining contractor fails to comply with the disclosure requirements of
(PH-EITI)?
A: Their ECCs will be suspended and they will not be issued Ore Transport Permits and
Mineral Export Permits.
Basis of Arrests, Confiscations, and Seizures
 The absence of any of the foregoing documents shall be considered prima facie evidence
of illegal mining and shall cause the confiscation/seizure.
Q: What are to be confiscated and seized?

A: The minerals/mineral products and the tools and equipment including conveyance used.
Note: The confiscation and seizure will be in favor of the Government pursuant to P.D. No. 1281, subject
to further investigation.
 If it is found that the minerals/ mineral products seized have been mined without any
permit or authority under existing mining laws, rules and regulations, final confiscation
can be effected.
Q: What happens after final confiscation?
A: A complaint for theft of minerals will be filed against the offenders.
Q: Who have authority to arrest offenders and confiscate/seize?

A: The Bureau officers which include the Regional Director and other Bureau personnel, duly
authorized by the Director, and CENRO personnel, duly authorized by the Secretary
Who has custody of seized minerals?

a) Regional office- in case of apprehension by the Bureau field officer and in case of
apprehension by the PNP, Economic Intelligence and Investigation Bureau (EIIB), Coast
Guard and other Government law enforcement agencies
b) Bangko Sentral ng Pilipinas- If the confiscated gold and/or other precious metals
conform with BSP’s specifications or requirement.
c) Bureau/concerned Regional Office Metallurgy Laboratory for processing- If the
confiscated gold and/or other precious metals satisfy the minimum weight
requirements but it does not conform with the physical requirements.
Q: What if the seized mineral does not satisfy the minimum weight requirements?
A: The Chief Cashier/Accountant of the concerned Regional Office shall store the confiscated
metals in a safety deposit box of the nearest reputable banking institution duly accredited by
the Department Regional Office. But the inventory of metals reach the minimum BSP weight
specifications, the Chief Cashier/Accountant shall turn over the confiscated metals to the
Metallurgy Office.
SETTLEMENTS OF CONFLICTS
Panel of Arbitrators
Under section 201 of Administrative Order No. 2010-21 Implementing Rules and
Regulations of RA 7942 it provides that there shall be a Panel of Arbitrators in the Legal Staff of
the Regional Office composed of three members, two of whom must be members of the
Philippine Bar in good standing and one licensed Mining Engineer, Geologist or a professional
in a related field, all duly designated by the Secretary as recommended by the Director. Those
designated as members of the Panel shall serve as such in addition to their work in the
Department without additional compensation. The Regional Office shall provide administrative
support and structure to the Panel Arbitrators.
As much as practicable, the members of the Panel shall come from the different bureaus
of the Department in the region the presiding officer thereof shall be selected by the drawing of
lots. His/her tenure as presiding officer shall be on a yearly basis. The members of the Panel
shall perform their duties and obligations in hearing and deciding cases until their designation
is withdrawn or revoked by the Secretary.
Section 202 of the same IRR provides that: The Panel of Arbitrators shall have exclusive
and original jurisdiction to hear and decide on the following:
(a) Disputes involving rights to mining areas;
(b) Disputes involving mining permits, mineral agreements, financial or technical

assistance agreement.
(c) Disputes involving surface owners, occupants, and claimholders/concessionaires; and

(d) Disputes pending before the Regional Office and the Department at the date of the
effectivity of the Act: Provided, that appealed cases before the Department shall be
under the jurisdiction of the Board.
In settling of mining disputes by the Panel of Administrators, the court ruled in

Gonzales vs Climax Mining, that the Panel of Arbitrators has exclusive and original jurisdiction
to hear and decide mining disputes. However, such power is limited only if the mining disputes
questions of fact or matters requiring the application of technological knowledge an experience.
“Arbitration before the Panel of Arbitrators is proper only when there is a disagreement
between the parties as to some provisions of the contract between them, which needs the
interpretation and the application of that particular knowledge and expertise possessed
by members of that Panel. It is not proper when one of the parties repudiates the
existence or validity of such contract or agreement on the ground of fraud or oppression
as in this case. The validity of the contract cannot be subject of arbitration proceedings.
Allegations of fraud and duress in the execution of a contract are matters within the
jurisdiction of the ordinary courts of law. These questions are legal in nature and require
the application and interpretation of laws and jurisprudence which is necessarily a
judicial function.”
Appeal
Under Section 78 of RA 7942 states that “The decision or order of the panel of arbitrators
may be appealed by the party not satisfied thereto to the Mines Adjudication Board within
fifteen (15) days from receipt thereof which must decide the case within thirty (30) days from
submission thereof for decision.”
In addition, MAB decisions are appealable to the Court of Appeals under Rule 43 of the
Rules of Court. While Section 79 of the Philippine Mining Act provides that the petitions for
review of MAB decisions are to be brought directly to the Supreme Court, the MAB is a quasi-
judicial agency whose decision should be brought to the Court of Appeals. (Carpio vs. Sulu
Resources Development Corporation)
Mines Adjudication Board
The Mines Adjudication Board comprises of three (3) members. The Board shall
promulgate its own internal rules and regulations governing its administration and disposition
of appealed cases and the rules and regulations governing the following:
a. Litigation and disposition of mining cases before the Panel; and
b. Administration and disposition of appealed cases before the Board.
The Board shall have the following powers and functions:
a. To promulgate rules and regulations governing the hearing and disposition of cases
before it, as well as those pertaining to its internal functions, and such rules and
regulations as may be necessary to carry out its functions;
b. To administer oaths, summon the parties to a controversy, issue subpoenas requiring

the attendance and testimony of witnesses or the production of such books, papers,
contracts, records, statement of account, Agreements and other document as may be
material to a just determination of the matter under investigation and to testify in any
investigation or hearing conducted in pursuance of this Act;
c. To conduct hearings on all matters within its jurisdiction, proceed to hear and
determine the disputes in the absence of any party thereto who has been summoned or
served with notice to appear, conduct its proceedings or any part thereof in public or in
private, adjourn its hearing at any time and place, refer technical matters or accounts to
an expert and to accept his/her report as evidence after hearing of the parties upon due
notice, direct parties to be joined in or excluded from the proceedings, correct, amend or
waive any error, defect or irregularity, whether in substance or in form, give all such
directions as it may deem necessary or expedient in the determination of the dispute
before it and dismiss the mining dispute as part thereof, where it is trivial or where
further proceedings by the Board are not necessary or desirable;
d. To hold any person in contempt, directly or indirectly, and impose appropriate

penalties therefor; and
e. To enjoin any or all acts involving or arising from any case pending before it which, if
not restrained forthwith, may cause grave or irreparable damage to any of the parties to
the case or seriously affect social and economic stability.
In any proceedings before the Board, the rules of evidence prevailing in courts of law or
equity shall not be controlling and it is the spirit and intention of this Act that shall govern. The
Board shall use every and all reasonable means to ascertain the facts in each case speedily and
objectively and without regard to technicalities of law or procedure, all in the interest of due
process. In any proceedings before the Board, the parties may be represented by legal counsel.
The findings of fact of the Board shall be conclusive and binding on the parties and its decision
or order shall be final and executory.
A mining dispute is within the jurisdiction of the DENR, and has the authority to
exercise its technical knowledge or expertise over any mining operations or dispute. However,
it is devoid of jurisdiction where the issue involves the validity of mining contracts as this sis a
judicial question.
GOVERNMENT SHARE
The total government share in a mineral production sharing agreement shall be the
excise tax on mineral products as provided in RA 7729, amending section 151(a) of the National
Internal Revenue Code, as amended.
Rates of tax shall be levied, assessed and collected on mineral, mineral products and
quarry resources, excise tax as follows;
On coal and coke, a tax of P10 per metric ton. On nonmetallic minerals and quarry
resources, a tax of 2% based on the actual market value of the annual gross output at the time of
the removal—in the case of locally extracted or produced; or the valued used by the Bureau of
Customs in determining tariffs and customs duties, net of the excise tax and value added tax—
in the case of importation. On all metallic minerals, a tax based on the actual market value of the
gross output at the time of removal—in the case of locally extracted or produced; or the valued
used by the Bureau of Customs in determining tariffs and customs duties, net of the excise tax
and value added tax—in the case of importation, in accordance with the following schedule:
a) Copper and other metallic minerals:
a. On the first 3 years upon the effectivity this act—1%.
b. On the next 4th and 5th year—1 ½ %, and
c. On the next 6th year and thereafter—2%.
On indigenous petroleum, a tax of 15% of the fair international market value price, on
the first taxable sale, such as to be paid by the buyer or purchase within 15 days from the date of
actual or constructive delivery to the said buyer or purchaser.
The phrase “first taxable sale, barter, exchange or similar transaction” means the transfer
of indigenous petroleum in its original state to a first taxable transferee. The international fair
market value shall be determined in consultation with an appropriate government agency.
Government Share in Other Mineral Agreements
The share of the Government in co-production and joint-venture agreements shall be

negotiated by the Government and the contractor taking into consideration the:
a. capital investment of the project;
b. risks involved;
c. contribution of the project to the economy; and
d. other factors that will provide for a fair and equitable sharing between the
Government and the contractor.
The Government shall also be entitled to compensations for its other contributions
which shall be agreed upon by the parties, and shall consist, among other things, the
contractor's income tax, excise tax, special allowance, withholding tax due from the contractor's
foreign stockholders arising from dividend or interest payments to the said foreign
stockholders, in case of a foreign national, and all such other taxes, duties and fees as provided
for under existing laws.
The Government share in financial or technical assistance agreement shall consist of,
among other things, the contractor's corporate income tax, excise tax, special allowance,
withholding tax due from the contractor's foreign stockholders arising from dividend or interest
payments to the said foreign stockholder in case of a foreign national and all such other taxes,
duties and fees as provided for under existing laws.
The collection of Government share in financial or technical assistance agreement shall

commence after the financial or technical assistance agreement contractor has fully recovered its
pre-operating expenses, exploration, and development expenditures, inclusive.
INCENTIVES
Under Section 90 of RA 7942 it provides that the contractors in mineral agreements, and
financial or technical assistance agreements shall be entitled to the applicable fiscal and non-
fiscal incentives as provided for under Executive Order No. 226, otherwise known as the
Omnibus Investments Code of 1987. Provided, that holders of exploration permits may register
with the Board of Investments and be entitled to the fiscal incentives granted under the said
Code for the duration of the permits or extensions thereof: Provided, further, that mining
activities shall always be included in the investment priorities plan.
Incentives for Pollution Control Devices
Under section 91 it provides that pollution control devices acquired, constructed or

installed by contractors shall not be considered as improvements on the land or building where
they are placed, and shall not be subject to real property and other taxes or assessments:
Provided, however, that payment of mine wastes and tailings fees is not exempted.
Investment Guarantees
The contractor shall be entitled to the basic rights and guarantees provided in the
Constitution and such other rights recognized by the government as enumerated hereunder:
a. Repatriation of investments. The right to repatriate the entire proceeds of the liquidation
of the foreign investment in the currency in which the investment was originally made
and at the exchange rate prevailing at the time of repatriation.
b. Remittance of earnings. The right to remit earnings from the investment in the currency
in which the foreign investment was originally made and at the exchange rate prevailing
at the time of remittance.
c. Foreign loans and contracts. The right to remit at the exchange rate prevailing at the time
of remittance such sums as may be necessary to meet the payments of interest and
principal on foreign loans and foreign obligations arising from financial or technical
assistance contracts.
d. Freedom from expropriation. The right to be free from expropriation by the Government
of the property represented by investments or loans, or of the property of the enterprise
except for public use or in the interest of national welfare or defense and upon payment
of just compensation. In such cases, foreign investors or enterprises shall have the right
to remit sums received as compensation for the expropriated property in the currency in
which the investment was originally made and at the exchange rate prevailing at the
time of remittance.
e. Requisition of investment. The right to be free from requisition of the property

represented by the investment or of the property of the enterprises except in case of war
or national emergency and only for the duration thereof. Just compensation shall be
determined and paid either at the time or immediately after cessation of the state of war
or national emergency. Payments received as compensation for the requisitioned
property may be remitted in the currency in which the investments were originally
made and at the exchange rate prevailing at the time of remittance.
f. Confidentiality. Any confidential information supplied by the contractor pursuant to

this Act and its implementing rules and regulations shall be treated as such by the
Department and the Government, and during the term of the project to which it relates.
Conditions for Availment of Incentives
1. Compliance with the obligations- the contractor shall observe and abide by the provisions
of RA 7942 and its IRR and take adequate measures to ensure to its obligations are
faithfully discharged.
2. Compliance with incentives- the contractor should comply with the directives and
instruction of the Bureau may issue from time to time
3. Visitorial powers- the contractor shall allow the duly authorized representatives of the
Bureau to inspect and examine its books of accounts and other pertinent records and
documents to ascertain compliance with law, Implementing Rules and Regulations, and
the terms and conditions of the agreement.
4. Delinquent contractors- no availment of incentives may be allowed to contractors’ neglect

compliance with terms and conditions in the MA/FTAA, or with the terms and
conditions of registration with the BOI, including submission of reports and statistical
data which may be required.
5. Activities not covered by the MA or FTAA- the contractor proposing to engage in activities
not covered by the MA/FTAA shall install an adequate accounting system segregating
the investments, revenues, sales, receipts, purchases, payrolls, costs, expenses and profit
and losses of its operations covered by the MA/FTAA from those which are not covered,
or the Bureau may in appropriate cases, require the establishment of a separate entity for
the activity covered by the agreement.
GROUNDS FOR CANCELLATION, REVOCATION AND TERMINATION
The following are the grounds for cancellation, revocation and termination of a Mining
Permit/Mineral Agreement/FTAA:
a. 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
b. Non-payment of taxes and fees due the Government for two consecutive years; and
c. Failure to perform all other obligations, including abandonment, under the permits or
agreements;
d. Violation of any of the terms and conditions of the Permits or Agreements; and/or
e. Violation of existing laws, policies, and rules and regulations. Cancellation of an

Exploration Permit
For an Exploration Permit, The Secretary, Director, or Regional Director concerned may
cancel the Exploration Permit for violations by the Permittee of the terms and conditions.
Upon issuance of the Order declaring with finality the cancellation of the Permit
covering areas within Government Reservations, the said areas shall automatically be reverted
back to its original status.
Suspension or Cancellation of Tax Incentives and Credits
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:
1. Any violation of the Act, rules and regulations implementing the same or of the terms
and conditions in the Mineral Agreement or FTAA;
2. 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;
3. Whenever the project ceases to be viable and its continued operation would require
additional costs to the economy. In this case, the Bureau shall evaluate the status of the
project and shall decide if suspension/cancellation shall be imposed;
Withdrawal from the Mineral Agreement or FTAA
Whenever a Contractor decides to withdraw from business or suspend its operations

covered by the Agreement, written notice thereof shall be sent to the Director before decision is
implemented. Withdrawal from business operations shall automatically cancel the Mineral
Agreement or FTAA. Upon such withdrawal, the Contractor shall cease to be entitled to the
incentives. The effect of withdrawal from business or suspension of operations covered by the
Agreement shall, in each particular instance, be determined by the Bureau, taking into account
the reasons therefor; or
What is the effect of expiration and cancellation, revocation, and/or termination of a Permit
and Mineral Agreement or Financial Technical Assistance Agreement?
The IRR of RA 7942, section 232, provides that upon the expiration of a Mining Permit
or Mineral Agreement or Financial Technical Assistance Agreement, the mining operations may
be undertaken by the government through one of its agencies or through a qualified
independent contractor. In case of independent contractors, the contract shall be awarded to the
highest bidder in a public bidding held after due publication of the notice of the bidding. The
contractor or permit holder shall have the right to equal the highest bidder upon reimbursement
of all reasonable expenses of the highest bidder.
Upon cancellation or revocation or termination of a Mining Permit or Mineral

Agreement or Financial Technical Assistance Agreement, the Director shall cause the same to be
entered in the registration book and a notice shall be posted on the bulletin board of the Bureau
and Regional Office concerned and the mining area covered shall be open to mining
applications. The mining operations may be undertaken by the government through one of its
agencies or through a qualified independent contractor. In case of independent contractors, the
contract shall be awarded to the highest bidder in a public bidding held after due publication of
the notice of the bidding. If the cancellation or revocation or termination of the contract is due to
violation of the terms and conditions, the contractor or permit holder shall not have the right to
equal the highest bid.
PENAL PROVISIONS
Section 101. False Statements

Offender: any person
Punishable act(s):
 knowingly presenting any false application, declaration, or evidence to the Government

 publishing or causing to be published any prospectus or other information containing
any false statement relating to mines, mining operations or mineral agreements,
financial or technical assistance agreements and permits
Penalty: fine of not exceeding ten thousand pesos (P10,000.00)

Section 102. Illegal Exploration
Punishable act(s):
 undertaking exploration work without the necessary exploration permit
Penalty: fine of not exceeding fifty thousand pesos (P50,000.00)
Section 103. Theft of Minerals

In the case of associations, partnerships, or corporations, the president and each of the
directors thereof shall be responsible for the acts committed by such association,
corporation, or partnership.
Punishable act(s):
 extracting minerals and disposing the same without a mining agreement, lease, permit,
license
 stealing minerals or ores or the products thereof from mines or mills or processing
plants
Elements:
(1) the accused extracted, removed and/or disposed of minerals;
(2) these minerals belong to the Government or have been taken from a mining claim or
claims leased, held or owned by other persons; and
(3) the accused did not possess a mining lease or a temporary permit or any other permit to
mine granted by the Secretary or the Director under existing mining decrees, laws and
regulations
Penalty:
 imprisonment of six (6) months to six (6) years or a fine from Ten thousand pesos
(P10,000.00) to Twenty thousand pesos (P20,000.00) or both
 payment of damages and compensation for the minerals removed, extracted, and
disposed of
Section 104. Destruction of Mining Structures

Punishable act(s):
 willfully destroying or damaging structures in or on the mining area or on the mill sites
Penalty:
 imprisonment for a period not to exceed five (5) years

 payment of compensation for the damages which may have been caused
Section 105. Mines Arson
Punishable act(s):
 willfully setting fire to any mineral stockpile, mine or workings, fittings or a mine
Penalty:
 in accordance with the provisions of the Revised Penal Code (imprisonment of six years
and one day to twelve years)
 payment of compensation for the damages caused
Section 106. Willful Damage to a Mine

Punishable act(s):
 willfully damaging a mine

 unlawfully causing water to run into a mine
 obstructing any shaft or passage to a mine
 rendering useless, damaging or destroying any machine, appliance, apparatus, rope,
chain, tackle, or any other things used in a mine
Penalty:
 imprisonment not exceeding a period of five (5) years

 payment of compensation for the damages caused
Section 107. Illegal Obstruction to Permittees or Contractors

Punishable act(s):
 preventing or obstructing, without justifiable cause, the holder of any permit, agreement
or lease from undertaking his mining operations
Penalty: fine of not exceeding five thousand pesos (P5,000.00) or imprisonment not exceeding
one (1) year, or both
Section 108. Violation of the Terms and Conditions

of the Environmental Compliance Certificate
Punishable act(s):
 willfully violating or grossly neglecting to abide by the terms and conditions of the
environmental compliance certificate issued to said person and which causes
environmental damage through pollution
Penalty: imprisonment of six (6) months to six (6) years or a fine of fifty thousand pesos
(P50,000.00) to two hundred thousand pesos (P200,000.00), or both
Section 109. Illegal Obstruction to Government
Punishable act(s):
 illegally preventing or obstructing the Secretary, the Director or any of their

representatives in the performance of their duties under the provisions of the Act and of
the regulations promulgated
Penalty: fine of not exceeding five thousand pesos (P5,000.00) or imprisonment of not exceeding
one (1) year, or both
Section 110. Other Violations

Punishable act(s):
 any other violation of the Act and its implementing rules and regulations
Penalty: fine of not exceeding five thousand pesos (P5,000.00)
Section 111. Fines
The Secretary is authorized to charge fines for late or non-submission of reports in

accordance with the implementing rules and regulations of this Act.
SMALL-SCALE MINING
History of Small-Scale Mining in the Philippines
Small-scale gold mining in the Philippines has been practiced long before the colonization of the
country by the Spaniards. Traders from other countries traded their goods with gold. The
people of Cordillera had developed ways to mine and process gold for decorative and self-
adornment purposes. Gold particles and nuggets were then panned from streams and rivers.
Prior to 1980, small-scale gold mining was just limited to intermittent alluvial gold placer
mining. However, the continued increase in the price of gold and the increasing pressure for
alternative source of livelihood spearheaded the proliferation of gold rush areas in the country.
These are predominant in Davao del Norte, Benguet and Camarines Norte.
Notable developments in technology utilization were also undertaken. In the early 70’s, the
primary target was alluvial placer gold wherein recovery was mainly through direct panning or
by crude sluice boxes. The shift to high grade veins utilized mining access through small and
narrow passageway (dog holes). The ores were then manually pulverized with hammer, and
the gold was recovered by panning with or without the use of mercury.
Eventually, the vein ores were accessed with larger and timbered adits, tunnels and stopes. The
use of mechanized rod mills and more adequately line sluice boxes became prevalent, and more
extensive use of amalgamation in the milling and panning stage. Recently, the use of 5-50 tons
per day batch cyanidation plant utilizing carbon-in-pulp (CIP) process is being undertaken in
several areas particularly in Diwalwal, Davao del Norte.
Recognizing the increasing economic impact of small-scale mining sector, the government
promulgated PD No. 1899, one of the first last that directly governed small-scale mining
operations in view of its capacity to generate income for the rural poor.
To further promote, develop and rationalize small-scale mining activities, Congress passed R.A.
7076 in 1991. The People’s Small-Scale Mining Act was principally intended to generate more
employment opportunities in small-scale mining, and to bring about equitable sharing of the
wealth and natural resources of the country.
Governing Laws
1. R.A. 7076 People’s Small Scale Mining Act

- Governing law of small scale mining; aims rationalize viable small-scale mining
activities and to generate more employment opportunities.
2. DENR Administrative Order No. 34 of 1991

- Implementing Rules and regulations for the implementation of the People’s
Small-Scale Mining Program
3. EO 79 of 2012
- institutionalizes and implements reforms in the mining sector by providing
policies and guidelines to ensure environmental protection and responsible
mining in the utilization of mineral resources
4. DENR Administrative Order No. 3 of 2015
- Revised Implementing Regulations for the implementation of the People’s Small-
Scale Mining Act
Republic Act 7076

PEOPLE’S SMALL SCALE MINING ACT OF 1991
Policy: To promote, develop, protect and rationalize viable small-scale mining activities in
order to generate more employment opportunities and provide an equitable sharing of the
nation’s wealth and natural resources, giving due regard to existing rights
Definition of Terms
1. Small scale mining – Also referred to as Artisanal Mining. These are mining activities
that heavily rely on manual labor using simple tools and methods. It does not use
explosives or heavy mining equipment and requires only a small capital investment.
2. Small scale miners – Filipino citizens who, individually or in the company of other
Filipino citizens, voluntarily form a cooperative duly licensed by the DENR to engage,
under the terms and conditions of a contract, in the extraction or removal of minerals or
ore-bearing materials from the ground.
3. Small scale mining contract – 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
4. Small-scale mining contractor – An individual or a cooperative of small-scale miners,

registered with the Securities and Exchange Commission or other appropriate
government agency, which has entered into an agreement with the State for the small-
scale utilization of a plot of mineral land within a people’s small-scale mining area
5. “Minahang Bayan” or People’s Small-Scale Mining Area – an area declared as People’s

Small-Scale Mining Area
6. Mineralized Areas – Areas with naturally occurring mineral deposits of gold, silver,
chromite, kaolin, silica, marble, gravel, clay and like mineral resources
7. Active Mining Area – Areas 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
8. Existing Mining right – Perfected and subsisting claim, lease, license or permit covering
a mineralized area prior to its declaration as a people’s small-scale mining area
9. Claimowner – holder of an existing mining right

10. Processor – Person issued a license to engage in the treatment of minerals or ore-bearing
materials such as by gravity concentration, leaching beneficiation, cyanidation, cutting,
sizing, polishing and other similar activities
11. License – Privilege granted to a person to legitimately pursue his occupation as a small-
scale miner or processor
12. Mining plan – 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 in support thereof
People’s Small Scale Mining Program

- Implemented by the DENR Secretary, in coordination with other concerned government
agencies, designed to achieve an orderly, systematic and rational scheme for the small-
scale development and utilization of mineral resources in certain mineral areas in order
to address the social, economic, technical and environmental connected with small-scale
mining activities
Features:
1. The identification, segregation and reservation of certain mineral lands as people’s
small-scale mining areas;
2. The recognition of prior existing rights and productivity
3. The encouragement of the formation of cooperatives
4. The extension of technical and financial assistance and other social services
5. The extension of assistance in processing and marketing
6. The generation of ancillary livelihood activities
7. The regulation of the small-scale mining industry with the view to encourage growth
and productivity
8. The efficient collection of government revenue
Small-scale Mining Areas

- The Provincial/City Mining Regulatory Board is authorized to declare and set aside
people’s small-scale mining, giving priority to areas already occupied and actively
mined by small-scale miners.
- It is required that the areas are active mining areas and the minerals found therein are
technically and commercially suitable for small-scale mining activities
- Excluded areas are the following: forest, tourist, marine and parks and wildlife
reservations
Areas open for declaration as Minahang Bayan:
1. Areas already occupied and actively mined by small-scale miners before August 1, 1987,
provided that:
a. Such areas are not considered as active mining areas
b. The minerals found therein are technically and commercially suitable for small-
scale mining
c. The areas are not covered by existing forest rights or reservations and have not
been declared as tourist or protected areas, unless their status as such are
withdrawn by competent authorities
2. Public lands covered by mining applications, subject to certain conditions
3. Public lands covered by existing mining permits or contracts which are not active
mining areas
4. Private lands, subject to the consent of the landowner and a royalty payment that shall
in no case exceed one percent of the gross value of the minerals recovered and payment
of actual damages as determined by the Board due to the declaration of the Minahang
Bayan, among other rights and conditions
5. Ancestral Lands or Ancestral Domains, provided that the Free and Prior Informed
Consent from the Indigenous Cultural Community in accordance with the procedures
prescribed by the National Commission on Indigenous People; Provided that if the
ancestral lands/domains are declared as Minahang Bayan, the members of the ICC shall
be given the priority as small-scale mining contractors
Future people’s small-scale mining areas

1. Areas already occupied and actively mined by small-scale miners before August 1, 1987
2. Public lands not subject to any existing right
3. Public lands covered by existing mining rights which are not active mining areas
4. Private lands, except those with substantial improvements or used as a yard, stockyard,
garden, plant nursery, plantation, cemetery or burial site, water reservoir or separate
parcel of land with an area of 10,000 square meters or less
5. Ancestral lands with prior consent of the cultural communities concerned
6. Areas occupied by a community of traditional small-scale miners subject to the approval
of the said community
Ancestral lands
- No ancestral land may be declared as people’s small-scale mining area without the prior
consent of the cultural communities concerned.
- If declared as people’s small-scale mining areas, the members of the cultural
communities shall be given priority in the awarding of small-scale mining contracts
- Royalties shall be paid to the ICC by the parties to the mining contract
Small-scale mining under PD No. 1899
Definition of small-scale mining

- Any single unit mining operation having an annual production of not more than 50,000
metric tons of ore and satisfying the following:
a. The working is artisanal, either open cast or shallow underground mining,
without the use of sophisticated mining equipment
b. Minimal investment on infrastructures and processing plant
c. Heavy reliance on manual labor
d. Owned, managed, or controlled by an individual or entity under existing
mining laws, rules and regulations
The DENR issued DMC 2007-07 or “Clarificatory Guidelines in the Implementation of the
Small-Scale Mining Laws”, imposing the same production limits to small-scale miners under
P.D. 1899 and R.A. 7076.
Registration of small-scale miners
All small-scale miners must register with the Provincial/City Mining Regulatory Board and may
organize themselves into cooperatives in order to qualify for the awarding of a people’s small-
scale mining contract. They must submit a copy of a valid government-issued ID and proof of
Filipino citizenship.
Types of Agreement under Philippine Mining Laws
1. Co-Production Agreement – Mode of mining agreement whereby the government, aside

from inputting the mineral resources for which it gets an agreed share, short of creating
a new juridical entity, has other contributions for which it gets another share in addition
to the agreed share
2. Joint Venture Agreement – Mode of mining agreement whereby the government, aside
from inputting mineral resources for which it gets the agreed share, has a contribution to
the equity of the intending operator, and for which equity holding it shall receive a
proportional share of the profits by way of dividends
3. Production-sharing Agreement – Mode of mining agreement whereby the government

inputs only the mineral resources and for which it gets an agreed share from the gross
output value of the minerals produced, and net mining revenue before income tax.
Small-scale Mining License
An applicant for a small-scale mining contract must first obtain a small-scale mining license.
Requisites:
1. Application form duly accomplished and notarized
2. Payment of application fee of Php 1,000 to the Regional Office Concerned
3. Proof of registration with the SEC, Department of Trade and Industry, Cooperative
Development Authority or other appropriate government agency: Provided, That the
applicant shall be 1 00% Filipino.
The license, if granted, will be effective during the term of the small-scale mining contract. It is
only applicable to mining contracts within the province.
Application to Enter a Small-Scale Mining Contract
Individual miners or cooperatives of small-scale miners may file an application to enter a small-
scale mining contract within an area situated in a Minahang Bayan along with the below
attachments:
1. Duly accomplished and notarized application form

2. Application fee of 10,000 Php for non-metallic minerals and 20,000 Php for gold, silver
and/or chromite, payable to the Regional Office concerned
3. Copy of small-scale miners’ license
4. Location map of the proposed small-scale mining contract area, duly prepared, signed
and sealed by a deputized Geodetic Engineer
5. Sketch plan of the proposed small-scale mining contract area duly prepared, signed and
sealed by a deputized Geodetic Engineer
6. Proposed small-scale mining contract
7. Application for survey order
8. Proposed Two-Year Work Program
9. Potential Environmental Impact Management Plan
10. Certificate of Environmental Management and Community Relations Record or
Certificate of Exemption in lieu of the CEMCRR
11. Community Development and Management Program
12. Annual Safety and Health Program
13. Sworn declaration of the total area in hectares covered by the applicant’s
contracts/applications in the entire country
Award of People’s Small-Scale Mining Contracts
Small-scale mining contracts may be awarded by the board to small-scale miners who have
voluntarily organized and have been registered as an individual miner or cooperative, but only
one mining contract may be awarded at any one time within one year from the date of award.
Within thirty (30) days upon receipt of the application for small-scale mining contract and with
all the pertinent requirements complied with, the Regional Director, as Chairperson of the
Board, shall award the small-scale mining contract. A copy of the small-scale mining contract,
together with its supporting documents, shall be forwarded to the Director, for information and
record
Terms and Conditions of Small-Scale Mining Contract
1. The contract may cover non-metallic minerals, but in the case of metallic minerals, it
shall be limited to gold, silver or chromite. The term will be two years, renewable for the
same periods, but shall not exceed a total term of 6 years.
2. The small-scale mining contract confers upon the small-scale mining contractor the right
to extract and dispose of the authorized minerals within the small-scale mining contract
area but the ore produced shall not exceed 50,000 metric tons annually and shall be
processed in a custom mill.
3. The small-scale mining contractor must:
a. Conduct small-scale mining in accordance with the Two-year Work Program,
PEIMP, ASHP and CDMP, duly approved by the Regional Office concerned, and
the ECC;
b. Undertake extraction and/or breakage of materials without the use of explosives,
blasting accessories, explosives ingredients and/or sophisticated and/or heavy
equipment;
c. Not resort to hydraulicking or compressor mining at any stage of small-scale
mining within the small-scale mining contract area;
d. Not use mercury in any phase of small-scale mining;
e. Confine small-scale mining to its small-scale mining contract area;
f. Abide by DAO No. 97-30, otherwise known as the "Small-Scale Mine Safety
Rules and Regulations";
g. Comply with its obligations to the holder of a mining permit/contract, if
applicable;
h. Sell its production outputs to the Bangko Sentra/ ng Pilipinas (BSP) or thru its
authorized buying station(s)/agent(s), in the case of gold production;
i. Pay all taxes, royalties and/or government production share as provided by law
at the time the small-scale mining contract is signed;
j. Comply with pertinent rules and regulations on environmental protection and
conservation; and
k. Submit under oath at the end of each month a detailed production report and
annual financial report to the Board
Extent of Small-Scale Mining Contract Area
The board shall determine the reasonable size and shape of the contract area following the
meridional block system established by the Mineral Resources Development Decree of 1974, but
in no case shall the area exceed 20 hectares per contractor and the depth of length of the tunnel
or adit shall not exceed that recommended by the Director, taking into account the following
circumstances:
1. Size of membership and capitalization of the cooperative

2. Size of mineralized area
3. Quantity of mineral deposits
4. Safety of miners
5. Environmental impact and other considerations
6. Other related circumstances
Easement rights
Upon the declaration of a people’s small-scale mining area, the Director, in consultation with
the operator, claimowner, landowner or lessor of an affected area, shall determine the right of
the small-scale miners to existing facilities such as mining and logging roads, private roads, port
and communication facilities, and processing plants necessary for the effective implementation
of the program, subject to payment of reasonable fees to the operator, claimowner, landowner
or lessor.
Rights under a people’s small-scale mining contract
A small-scale mining contractor is entitled to the right to mine, extract and dispose of mineral
ores for commercial purposes. The contract cannot be subcontracted, assigned or transferred.
Rights of claimowners
In case a site declared and set aside as a people’s-scale mining area is covered by an existing
mining right, the claimowner and the small-scale miners are encouraged to enter into a
voluntary and acceptable contractual agreement with respect to the small-scale utilization of the
mineral values from the area. The claimowner shall be entitled to the following rights and
privileges:
1. Exemption from annual work obligations and payment of occupation fees, rental, and
real property taxes
2. Free access to the contract area to conduct metallurgical tests, explorations and other
activities provided that they do not duly interfere with the operations of the small-scale
miners
3. Royalty equivalent to 1.5% of the gross value of the metallic mineral output or 1% of the
gross value of the nonmetallic mineral output to be paid to the claimowner
Rights of private landowners
The private landowner or lawful possessor shall be notified of any plan or petition to declare his
land as a people’s small-scale mining area. He shall be heard by the Board in case he interposes
any opposition.
If a private land is declared as a people’s small-scale mining area, the landowner and the small-
scale miners are encouraged to enter into a voluntary and acceptable contractual agreement
with respect to the small-scale utilization of the mineral values from the private land.
The owner shall be entitled to actual damages which he may suffer as a result of such
declaration. In no case shall the royalties paid to the owner exceed 1% of the gross value of
minerals recovered.
Ownership of mill tailings
Mill tailings, also called mine dumps, culm dumps, slimes, tails, refuse, leach residue or
slickens, terra-cone, are the materials left over after the process of separating the valuable
fraction from the uneconomic fraction of an ore.
The small-scale mining contractor shall own all mill tailings produced from the contract area.
He may sell them or have them processed in any custom mill in the area. If he decides to sell
them, the claimowner shall have a preemptive right to purchase them at prevailing market
prices.
Sale of gold
All gold produced by small-scale miners in any mineral area shall be sold to the Central Bank or
its duly authorized representatives, which shall buy it at prices competitive with prevailing
world market values regardless of volume or weight. The Central Bank shall establish as many
buying stations in gold-rush areas to fully service the requirements of the small-scale miners in
the area.
The minimum weight per bar or disk for delivery and sale to the Central Bank shall not be less
than 300 grams. Small-scale miners with less than 300 grams of gold may sell the same to
Central bank's dully authorized representative.
Year-on-year Production of Gold from Small-Scale Mining

Custom mills
Custom mills are plants established by the government of thru a private sector within mineral
processing zones intended for the mineral processing of ores, tailings and/or mine wastes from
small-scale mining for a fee.
The establishment and operation of sale and efficient custom mills to process minerals or ore-
bearing materials is limited to mineral processing zones designated by the local government,
upon recommendation of the Board.
In mining areas where the private sector is unable to establish custom mills, the government
shall conduct such mills subject to the viability of the project. The Board shall issue licenses for
the operation of the custom mills and other processing plants subject to pollution control and
safety standards.
Assay laboratories shall be established to cross-check the integrity of custom mills and to render
metallurgical and laboratory services to mines.
Custom mills shall be designated as withholding agents for the royalties, production share or
other taxes due the government.
Assay laboratories - are responsible for analyzing ores, metals and minerals in a laboratory,
where they use various methods to identify the properties of these substances and their value.
In some instances, the Assayer will focus on analyzing samples in order to find specific types of
metals.
Government share and Allotment
The revenue to be derived by the Government from the operation of the mining program
established shall be subject to the sharing provided in the Local Government Code.
People’s Small-Scale Mining Protection Fund
Fifteen percent (15%) of the national government's share due the Government shall be allotted
as a People's Small-scale Mining Protection Fund which shall be used primarily for the
information dissemination and training of small-scale miners, on safety, health and
environmental protection, and the establishment of mine rescue and recovery teams including
the procurement of rescue equipment necessary in cases of emergencies such as landslides,
tunnel collapse, or other similar incidents. The fund shall also be made available to address the
needs of the small-scale miners brought about by accidents and/or fortuitous events.
Rescission of Contracts
Grounds for cancellation of awarded contracts:

1. Non-compliance with the terms and conditions of the contract and that of existing
mining laws, rules and regulations including those pertaining to mine safety,
environmental protection and conservation, tree cutting, mineral processing and
pollution control;
2. Non-compliance with the contractor’s obligations to existing mining claims holders or
private landowners as stipulated in Sec. 13, 17 and 18 of this Order;
3. Non-payment of fees, taxes, royalties or government share in accordance with the Order
and existing mining laws;
4. Abandonment of mining sites by the contractor; and
5. Ejectment from the People’s Small-Scale Mining Area of the contractor by the
government for reasons of national interest and security.
Fines - The Secretary may impose fines against the violator in an amount of not less than
Twenty thousand pesos (P20,000.00) and not more than One hundred thousand pesos
(P100,000.00). Nonpayment of the fine imposed shall render the small-scale mining contractor
ineligible for other small-scale mining contracts.
Reversion of People’s Small-Scale Miners - The DENR Secretary upon the recommendation of
the Director shall withdraw the status of the peoples small-scale mining areas when no longer
feasible for operation or when safety, health and environmental conditions warrant reversion
thereof to the State for proper disposition.
Actual Occupation by Small-Scale Miners
Small-scale miners who have been in actual operation of mineral lands on or before August 1,
1987 as determined by the Board shall not be dispossessed, ejected, or removed from said areas
provided they comply with the provisions of this act.
Provincial / City Mining Regulatory Board
There is hereby created under the direct supervision and control of the Secretary a
provincial/city mining regulatory board, herein called the Board, which shall be the
implementing agency of the Department, and shall exercise the following powers and function,
subject to the review of the Secretary:
a. Declares and segregates existing gold-rush area for small -scale mining;
b. Reserves for the future, mineralized areas/mineral lands for people's small-scale
mining;
c. Awards contracts to small-scale miners' cooperative;
d. Formulates and implements rules and regulations related to RA 7076;
e. Settles disputes, conflicts or litigations over conflicting claims within ninety(90) days
upon filing of protests or complaints; Provided, That any aggrieved party may appeal
within five (5) days from the Board's decision to the Secretary for final resolution
otherwise the same is considered final and executory; and
f. Performs such other functions as may be necessary to achieve the goals and objectives
of RA 7076.
Composition:
a. Representative from the DENR Regional Office concerned - Chairman
b. Governor or City Mayor or their duly authorized representative - Member
c. One (1) Small-Scale Mining representative -Member or as per Section 24.3
d. One (1) Large-Scale Mining representative - Member
e. One (1) representative from a non-government organizationMember; and,
f. Staff support to the Board to be provided by the Department.
Functions of the Secretary - The Secretary through his representative shall exercise direct
supervision and control over the program and activities of the small-scale miners within the
people's small-scale mining area. Within 90 days from the effectivity of this Act, promulgate
rules and regulations to effectively implement the provisions of the same, Priority shall be given
to such rules and regulations that will ensure the least disruption in the operations of the small-
scale miners. In the case on League of Provinces of the Philippines versus Department of
Environment and Natural Resources, the Supreme Court expounded that the DENR is, subject
to the law and higher authority, in charge of carrying out the State’s constitutional mandate to
control and supervise the exploration, development, utilization and conservation of the
county’s natural resources.
The enforcement of small-scale mining laws in the provinces is subject to the supervision,
control and review of the DENR under the Local Government Code of 1991. On the other hand,
small-scale mining is to be implemented by the DENR Secretary in coordination with other
concerned local government agencies. The Local Government Code did not fully devolve the
enforcement of the small-scale mining law to the provincial government, as its enforcement is
subject to the supervision, control, and review of the DENR Secretary. The constitutional
guarantee of local autonomy in the Constitution refers to the administrative autonomy of the
local government units or the decentralization of the government authority. It does not make
the local governments sovereign within the state.
Power of Control v. Power of Supervision - As opposed to power of supervision, the DENR

Secretary has the power to affirm, reverse or modify the decision of the Provincial Mining
Regulatory Board.
Applications: For small-scale mining permit shall be filed in the Office of the Provincial
Governor City Mayor through the Provincial/city Regulatory Board concerned for area outside
mineral reservations and in the Regional Office concerned for areas within mineral reservations.
Environmental Protection, Safety and Health - To ensure the protection of the environment
and the development of host and neighboring communities, the small-scale mining contractor
or mineral processor shall abide by the approved ECC, PEIMP, and CDMP, and comply with all
applicable laws, rules and regulations.
Cases on Small-scale Mining
G.R. No. 179669 June 4, 2014

SR Metals Inc. v. DENR
Facts:
On March 9, 2006, SR Metals Inc., San R Mining and Construction Corp., and Galeo Equipment
and Mining Company, were each awarded a 2-year Small-scale Mining Permit by the Provincial
Mining Regulatory Board of Agusan del Norte. These permits were granted after the
Environmental Management Bureau, Region XIII of the Department of Environment and
Natural Resources issued Environmental Compliance Certificates with a validity period of one
year. Their ECCs provided that limited the ore they were allowed to extract annually to 50,000
metric tonnes, pursuant to Sec.1 of PD 1899.
Agusan del Norte Governor Eripe John Amante subsequently questioned the quantity of ore
mined and shipped by the corporations. The companies denied having exceeded the extraction
limit. Having reservations about the corporations’ interpretation of the restriction, Amante
sought the opinion of the DOJ.
Meanwhile, the EMB sent the companies a Notice of Violation, informing them that they had
exceeded the prescribed extraction limit. On 2004, DENR Secretary, Angelo Reyes, sent them a
Cease and Desist Order against the mining corporations, suspending their operations.
On November 30, 2006, DOJ Secretary Raul M. Gonzalez replied to Governor Amante citing
DOJ Opinion No. 74, Series of 2006. The DOJ opined that PD 1899 was impliedly repealed by
R.A. 7076, with the definition of small-scale mining having no imposed limit.
The mining corporations filed a petition for Certiorari with the Court of Appeals with prayer for
a Temporary Restraining Order for the DENR in issuing the cease-and-desist order. The Office
of the Solicitor General defended the order, claiming that it was issued for ecological and health
reasons. The OSG, quoting a letter from the MGB Central Office, emphasized that in measuring
an extraction, the only deduction allowed from an extracted mass of ore is the weight of water,
not the soil.
The CA denied the petition of the mining corporations and agreed with the opinion of the OSG.
The companies moved for partial reconsideration while also attacking the validity of Sec.1 of PD
1899 which set the annual extraction limit.
Issues:
1. Whether or not Sec.1 of PD 1899 is unconstitutional for violating the equal protection
clause
2. Whether or not the interpretation of the mining companies of the extraction limit is
correct
Ruling:
1) PD 1899 applies to individuals, partnerships and corporations while RA 7076 applies to

cooperatives. There can be no implied repeal when both laws may stand together. It
does not violate the equal protection clause because the DENR issued DMC 2007-07 or
“Clarificatory Guidelines in the Implementation of the Small-Scale Mining Laws". The
DMC imposed the annual production limit of 50,000 DMT to small-scale miners under
PD 1899 and under RA 7076.
2) Keeping in mind environmental concerns, the Supreme Court agreed with the Solicitor
General. Allowing the corporations to extract millions of DMT of run-of-mine ore will
result to degradation of natural resources and possible landslides and flashfloods.
Even if their ECCs specified that they were allowed to extract 50,000 MTs of Ni-Co, this
should not be taken literally in the sense that the measurement should be based on the
Ni-Co in its purest form. This interpretation should apply to their permits as well.
G.R. No. 175368 April 11, 2013

League of Provinces v. DENR
Facts:
On March 28, 1996, Golden Falcon Mineral Exploration Corporation (Golden Falcon) filed with
the DENR Mines and Geosciences Bureau Regional Office No. III (MGB R-III) an Application for
Financial and Technical Assistance Agreement (FTAA) covering an area of 61,136 hectares
situated in the Municipalities of San Miguel, San Ildefonso, Norzagaray and San Jose del Monte,
Bulacan.
The MGB denied Golden Falcon’s application for failure to secure area clearances from the
Forest Management Sector and Lands Management Sector of the DENR. Golden Falcon filed an
appeal with the MGB Central Office.
On February 10, 2004, while Golden Falcon's appeal was pending, Eduardo D. Mercado,
Benedicto S. Cruz, Gerardo R. Cruz and Liberato Sembrano filed with the Provincial
Environment and Natural Resources Office (PENRO) of Bulacan their respective Applications
for Quarry Permit (AQP), which covered the same area subject of Golden Falcon's Application
for FTAA.
On July 16, 2004, the MGB-Central Office denied Golden Falcon’s appeal. On September 13,
2004, Atlantic Mines and Trading Corporation (AMTC) filed with the PENRO of Bulacan an
Application for Exploration Permit (AEP) covering 5,281 hectares of the area covered by Golden
Falcon's Application for FTAA.
Director Cabantog indorsed to the Provincial Governor of Bulacan the applications for Quarry
Permit which was later converted to Applications for Small-scale Mining Permits. On August
10, 2005, the governor of Bulacan issued the SSMP in favor of the individuals. AMTC appealed
the grant of the SSMPs to the individuals.
On August 8, 2006, the DENR Secretary rendered a decision in favor of AMTC. The DENR
Secretary agreed with MGB Director Horacio C. Ramos that the area was open to mining
location only on August 11, 2004, 15 days after the receipt by Golden Falcon on July 27, 2004 of a
copy of the MGB-Central Office's Order denying Golden Falcon's appeal.
The Applications for Quarry Permit were filed on February 10, 2004 when the area was still
closed to mining location; hence, the Small-Scale Mining Permits granted by the PMRB and the
Governor were null and void. On the other hand, the DENR Secretary declared that AMTC filed
its Application for Exploration Permit when the area was already open to other mining
applicants; thus, AMTC’s Application for Exploration Permit was valid.
Issues:
1. Whether or not the Local Government Code and the People’s Small-Scale Mining Act are
unconstitutional for providing executive control and infringing upon the local autonomy
of provinces
2. Whether or not the cancellation by the DENR of the small-scale permits amount to
control
Ruling:
1. No, both the Local Government Code and the People’s Small-Scale Mining Act are not
unconstitutional. The Constitution provides that the exploration, development and
utilization of natural resources shall be under the full control and supervision of the
State.
The Supreme Court clarified that the constitutional guarantee of local autonomy in the
Constitution refers to the administrative autonomy of local government units. It does
not make local governments sovereign within the state.
2. No, it does not amount to control. The DENR Secretary exercises quasi-judicial function
under R.A. No. 7076 and its Implementing Rules and Regulations to the extent necessary
in settling disputes, conflicts or litigations over conflicting claims. This can neither be
equated with "substitution of judgment" of the Provincial Governor in issuing Small-
Scale Mining Permits nor "control" over the said act of the Provincial Governor as it is a
determination of the rights of AMTC over conflicting claims based on the law.

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Philippine Mining Act of 1995

Republic Act 7942

People's Small-scale Mining Act of 1991

Evolution of Mining laws in the Philippines

1. Royal Decree of 1837

2. Philippine Bill of 1902

3. Commonwealth Act No. 137

4. Presidential Decree No. 463

5. Philippine Mining Act of 1995

• Local government empowerment;

Ownership of Mineral Resources

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES (DENR)

• The primary agency responsible for the:

• The Secretary shall have the authority:

- To enter into mineral agreements on behalf of the government upon the

• To participate in the monitoring of any mining activity as a member of the Multipartite

• To participate as a member of the Mine Rehabilitation Fund Committee;

MINES AND GEOSCIENCES BUREAU

• To undertake geological, mining, metallurgical, chemical and other researches, as well

• To recommend to the Secretary the granting of mineral agreements to duly qualified

Bureau conferred quasi-judicial powers

Section 7 of PD No. 1281

To make the adjudication of mining cases a purely administrative matter.

1. What coal areas should be exploited and developed;

Recording System (Sec 14, RA 7942)

Areas open to mining operation (Sec 18, RA 7942)

Mineral agreement or financial or technical assistance agreement applications shall not

• In military and other government reservations;

Upon prior written clearance by the government agency concerned.

Upon written consent of the government agency or private entity concerned.

• In areas covered by valid and existing mining rights;

• In areas expressly prohibited by law;

• In areas covered by small-scale miners as defined by law; and

• Areas covered by Financial or Technical Assistance Agreement (FTAA) applications

Mineral Agreement or Exploration Permit applications covering sand, gravel and/ or

Terms and Conditions of the Exploration Permit

A. Renewable for like periods but not to exceed:

B. No renewal of permit shall be allowed unless:

C. An exploration permit shall contain the following terms and conditions:

Content: discrepancies/ deviations; result of the survey; laboratory reports; geological

Maximum Areas for Exploration Permit

Declaration of Mining Project Feasibility

Within the term of the permit.

Effects when Granted:

Transfer or Assignment of Exploration Permit

 5 months after date of

APPROVAL AND ISSUANCE

Modes of Mineral Agreement

b. Co-production agreement (CA) is an agreement between the Government and the

c. Joint venture agreement (JVA) is an agreement where a joint-venture company is

Who are qualified to apply for a Mineral Agreement?

Maximum Areas for Mineral Agreement

1. Onshore, in any one province

2. Onshore, in the entire Philippines

3. Offshore, in the entire Philippines

What are the mandatory requirements in the acceptance of an MPSA application?

B. For a Corporation, Partnership, Association or Cooperative

a. The list of applications filed and the Mining Permit(s)/Contract(s) granted

6) Mining Project Feasibility Study (MGB Form No. 5-3); and

Any application with incomplete mandatory requirements shall not be accepted.

D. For Offshore applications, the following are the requirements:

Terms (Mineral Agreement)

Publication, Posting, Radio Announcement

The notice shall have the following: