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& Department of Environment and Natural Resources
MINES AND GEOSCIENCES BUREAU
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MEMORANDU!I IRCULAR
No. 2022 -_0) Of
OCT 11 2022
SUBJECT: PROCEDURAL GUIDELINES ON THE AMENDMENT OF
MINERAL PRODUCTION SHARING AGREEMENT BY
ANNEXING MINING APPLICATION/S PURSUANT TO DENR
ADMINISTRATIVE ORDER NO. 2014-06
Pursuant to Republic Act (RA) No. 7942 or the Philippine Mining Act of 1995,
Executive Order No. 79, Series of 2012, DENR Administrative Order (DAO) Nos.
2010-21 and 2014-06, the following guidelines on the procedural steps on the
processing of the amendment of Mineral Production Sharing Agreement by
annexing mining application/s are hereby provided:
Section 1. Criteria for Amendment of Contract Areas
All Contractors who meet the following criteria can amend their MPSA
contract areas by annexing applications for MPSA or Exploration Permit (EP):
1 The MPSA of interest shall be in the Operating Period;
2. The areals to be annexed to the MPSA contract area shall comply
with all the requirements for an MPSA application;
3. The area/s to be annexed shall be adjacent/contiguous to the MPSA
contract area;
4, The area/s to be annexed shall have the same target commodity as
the original MPSA; and
5. The area/s to be annexed shall have the available mineral
resources/reserves, as verified by a field validation of the Mines and
Geosciences Bureau Regional Office concerned.
Section 2. Filing and Processing of Amendment of Contract Areas
The amendment of contract areas under DAO No. 2014-06 shall be filed by
the applicant either personally or through its duly authorized representative with the
Regional Office concerned, for initial evaluation: Provided, That an application shall
be accepted only upon payment of the required fees to the Regional Office
concerned: Provided, further, That any application with incomplete mandatory
requirements shall not be accepted.
Within fifteen (15) working days from receipt of the application, the Regional
Office concerned shall conduct evaluation thereof and if found to be in order, it shall
endorse the application to this Office, for final review and subsequent endorsement,
if warranted, to the DENR Secretary for approval.
"MINING SHALL BE PRO-PEOPLE AND PRO-ENVIRONMENT
IN SUSTAINING WEALTH CREATION AND IMPROVED QUALITY OF LIFE.”
20. 22/)Section 3. Mandatory Requirements for the Amendment of Contract Areas
The applicant shall submit two (2) printed copies and one (1) digital copy of
the following requirements for amendment of contract areas by annexing other
mining application/s:
1. Letter of Intent duly signed by the company's President;
2. Mines and Geosciences Bureau-registered Secretary's Certificate
attesting that the company's President is the authorized representative
of the company in connection with the application for amendment;
3. Location Map/Sketch Plan of the amended MPSA contract area with
the consolidated area/s marked as separate parcels, using a 1:50,000
National Mapping and Resources Information Authority topographic
map, with the corresponding geographical coordinates and hectarage,
duly prepared, sealed and signed by a deputized Geodetic Engineer,
4. Proofis of payment of Amendment Fee pursuant to Section 1.1.7.a of
DAO No. 2005-08 (PhP20.00 per hectare or a fraction thereof but not
less than PhP25,000.00 per application);
5. Proofis of payment of Conversion Fee of EP to MPSA pursuant to
Section 1.1.5.a of DAO No. 2005-08 (PhP100.00 per hectare or a
fraction thereof but not less than PhP50,000.00 per conversion), if
applicable;
6. Amended Three-Year Development/Utilization Work Program for the
area covered by the amended MPSA;
7. Amended Environmental Compliance Certificate;
8. Amended Environmental Protection and Enhancement Program, and
Final Mine Rehabilitation and/or Decommissioning Plan;
9. Amended Social Development and Management Program;
10. Care and Maintenance Program;
11. Application for Order of Survey;
12. Final Exploration Report for the area/s to be annexed, duly prepared,
signed and sealed by a Competent Person pursuant to the pertinent
provisions of DAO No, 2010-09, and validated by the Mines and
Geosciences Bureau;
13. Mines and Geosciences Bureau-registered Affidavit of Undertaking
pursuant to DENR Memorandum Order No. 99-10;
14. Certificate of Environmental Management and Community Relations
Record;15,
16.
17.
18,
Section 4.
This Memorandum Circular shall take effect immediately.
Certification by the Mines and Geosciences Bureau Regional Office
concerned as to the compliance of the Contractor with the terms and
conditions of the MPSA including the level of implementation of the
Work Programs and compliance with the reporting requirement and
fiscal obligations;
Project approval/endorsement by majority of the Sanggunian
concerned for the area/s to be annexed;
National Commission on Indigenous Peoples Certification for the
area/s to be annexed; and
Updated proof of financial capability to undertake the implementation
of the activities under the Work Programs, in the form of latest Audited
Financial Statement and/or Annual Report, and credit lines/bank
guarantees/deposits,
Effectivity
0G. MONCANO j
Director +