REPUBLIC ACT NO.

7942        March 3, 1995

AN ACT INSTITUTING A NEW SYSTEM OF MINERAL RESOURCES EXPLORATION,

DEVELOPMENT, UTILIZATION, AND CONSERVATION

Be it enacted by the Senate and House of Representatives of the Philippines in Congress

assembled:

CHAPTER I
INTRODUCTORY PROVISIONS

Section 1
Title

This Act shall be known as the "Philippine Mining Act of 1995.”

Section 55
Minerals Processing Permit

No person shall engage in the processing of minerals without first securing a minerals processing
permit from the Secretary. Minerals processing permit shall be for a period of five (5) years
renewable for like periods but not to exceed a total term of twenty-five (25) years. In the case of
mineral ores or minerals produced by the small-scale miners, the processing thereof as well as the
licensing of their custom mills, or processing plants shall continue to be governed by the provisions
of Republic Act No. 7076.

Section 56
Eligibility of Foreign-owned/-controlled Corporation

A foreign-owned/-controlled corporation may be granted a mineral processing permit.

REPUBLIC ACT No. 7076             June 27, 1991

AN ACT CREATING A PEOPLE'S SMALL-SCALE MINING PROGRAM AND FOR OTHER

sPURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress

assembled:

Section 1. Title. – This Act shall be known as the "People's Small-scale Mining Act of 1991."

Section 3. Definitions. – For purposes of this Act, the following terms shall be defined as follows:

(i) "Processor" refers to a person issued a license to engage in the treatment of minerals or ore-
bearing materials such as by gravity concentration, leaching benefication, cyanidation, cutting,
sizing, polishing and other similar activities;
Section 18. Custom Mills. – The establishment and operation of safe and efficient customs mills to
process minerals or ore-bearing materials shall be limited to mineral processing zones duly
designated by the local government unit concerned upon recommendation of the Board.

In mining areas where the private sector is unable to establish custom mills, the Government shall
construct such custom mills upon the recommendation of the Board based on the viability of the
project.

The Board shall issue licenses for the operation of custom mills and other processing plants subject
to pollution control and safety standards.

The Department shall establish assay laboratories to cross-check the integrity of custom mills and to
render metallurgical and laboratory services to mines.

Custom mills shall be constituted as withholding agents for the royalties, production share or other
taxes due the Government.

ADMINISTRATIVE ORDER

NO. 2010-21

Sec.5. Definition of Terms

As used in and for purposes of these rules and regulations, the following terms shall mean:

b.d.“Mineral Processing” means the milling, beneficiation, leaching, smelting, cyanidation,

calcination or upgrading of ores, minerals, rocks, mill tailings, mine waste and/or other
metallurgical by- products or by similar means to convert the same into marketable products.

b.e.“Mineral Processing Permit” refers to the permit granted to a Qualified Person for mineral
processing.

b.z. “Permit Holder” means a holder of any mining permit or of Mineral Processing Permit
issued under these implementing rules and regulations except permits that authorize exploration
activities only.

Section 11. Mining Operations within Mineral and Government Reservations

Mining operations in Mineral Reservations shall be undertaken by the Department or through a

Qualified Person under any of the following modes:

1. Exploration Permit;
2. Mineral Agreement;
 3. FTAA;
4. Small-Scale Mining Permit; and
5. Quarry Permit.

In cases where the mining operations shall be directly undertaken by the Department, a
Memorandum of Agreement may be entered into by and between the Department and a qualified
government corporation/ entity authorizing the latter to explore, develop and/or utilize the
mineral resources found therein.

Mining operations in Government Reservations shall be first undertaken through an Exploration

Permit, subject to limitations prescribed therein, before the same is opened for Mineral
Agreement/FTAA application or other mining applications.

Applications for Exploration Permit/Mineral Agreement/FTAA within Mineral Reservations

shall be filed in the Regional Office concerned for its initial evaluation and endorsement to the
Bureau for final evaluation. In the event that the applied area covers both a Mineral Reservation
and a non-Mineral Reservation, the mining applicant may file separate applications covering the
Mineral Reservation area and the non-Mineral Reservation area, or file a single application
covering the whole area, in the Regional Office concerned.

Application for Exploration Permit/Mineral Agreement/FTAA/Quarry Permit within Mineral and

Government Reservations shall be governed by other applicable provisions of Chapters V, VI,
VII and VIII of these implementing rules and regulations.