SPANISH ROYAL DECREE May 14, 1867
Objectives of the Mining
Precious stone, and all substances properly metalliferous,
combustible, and saline, calcareous phosphates are the objects
of the Mining.
Rules when Digging
Spaniards or naturalised foreigners, Indians, Mestizos or
Chinese can make the dig. This is called the Trial pits, which
can not exceed an excavation of 2 linear metres square and 1
metre in depth. No trial pits shall be dug <40m from a building,
road, or other public easement and 1400 from fortification.
Authorities and Employees are not allowed due to Conflict of
Interest.
Unirrigated vs. Irrigated Land
In Unirrigated Land, permission of the owner or his
representative is needed before trial pits can be dug. If two
months should elapse without permission granted, the
Interested person may apply to the civil governor or chief of the
district. In Irrigated Land, only the owner can grant permission
for the digging of trial pits. The person applying shall inform the
civil governor or chief of the district for the proper purposes in
due time.
Size of the Mining Claim & No. of Claims
The claim may be measured either as a rectangle, square, or
group of squares not <20 meters square. The ordinary claim is
300m long by 200m wide; Iron/bit./etc is 500m long by 300m
wide. Lastly, the Auriferous Sands is 60,000 sq or superficial
meters.
Application of Mining Claim
Applying for a Mining Claim is through Exploration or
Registration. Exploring the area involves conducting trial pits
following the rules and regulations when the land is situated
either in Unirrigated or Irrigated Land. When registering, an
application must submit with a letter stating that a mineral has
been discovered. The explorer and register must submit these
requirements together with the surface plan.
After the application, checking the area is necessary to
determine if it is a free land. When it is a free land then mark off
the area, this serves as an Identification of the application.
Provide proof of evidence that the areas have been marked off
in a visible manner.
When approved, the application will be published in newspapers
together with the surface plan, if no adverse claims after 60
days, then the Mining Claim will be recorded and the Civil
Governor will approve.
Explorer Activity once Permission is granted
After obtaining a permission, follow the conditions prescribed in
Art. 50: A regular worker must be active for at least 183 days of
the year and 4 labourers per claim during half of the year. The
explorers have only 2 years to conduct their exploration in their
designated land.
When to Survey?
Survey shall be conducted if found minerals are mentioned in
Article 1, based on the opinion of Engineer, and if in order to
make said survey (In case of Irrigated Land, the consent of the
Civil Governor is required whether the owner granted
permission or not). Also within 4 months after filling the
registration, the applicant must request a survey.
Engineer's Investigation
Upon receiving a request, the Engineer has 6 months to
complete the Investigation and Survey. It can be extended up to
8 months if obstacles are encountered and this must be
documented.
What to do if ore has been discovered and if no found ore?
If the examination reveals that an ore has been discovered,
immediately survey the area according to the surface plan and
secure samples. If the Engineer finds a surface plan defective,
he shall correct it.
If no found ore, the claim will be considered as void unless a
request is submitted within 8 days, seeking permission to
conduct exploration again on the same site.
Rules & Penalty
Owners and explorers shall follow rules and regulations, failure
to do so have penalties. Offences shall be published by 200
escudos and 400 escudos if repeated. Crimes are punishable
by Common Law.
Working Condition
Regular work must be active and continued for 183 days for the
year and 4 laborers per claim during half of the year. This
amount of work must be performed consistently.
General Mining Conditions
Owners and explorers shall follow rules and regulations, failure
to do so have penalties. Offences shall be published by 200
escudos and 400 escudos if repeated. Crimes are punishable
by Common Law.
Regular work must be active and continued for 183 days for the
year and 4 laborers per claim during half of the year. This
amount of work must be performed consistently unless difficulty
is demonstrated. Workers can be placed in an area of interest
demanded by a company and if any objections or protest raise,
work must stop temporarily and restart it through bond, covering
damages and issues. Any harm or damages happened in a
mine must be compensated.
Miners have rights such as using parts of the claims, airflow,
and disposal. When the owner of the mines wishes to suspend
or abandon the mines shall inform the civil governor 1 month in
advance and must close the shafts.
Dumps & Scoriae
Dumps and Scoriae when abandoned are open again for
claiming. The process of owning the dump/scoriae is the same
procedures for granting registers of mining claims. When
planning to apply, request a petition to the civil governor with
surface plan and you’ll be required to dig 3 shafts in the claim to
examine and show the condition and characteristics of
dump/scoriae. The plans and surveys must be in the form of a
polygon or rectilinear. If there are no objections such as from
the former owner, then the Interested Person’s claim will be
granted.
Cancellation & Forfeiture
Lack of requisites and when deciding to abandon a mine will
lead to Discontinuous of Proceedings.
When the owner did not meet the conditions specified in
agreement, scoria and dumps are poorly managed, not paying
required tax, abandoning the claim without following the rules,
and voluntary renunciation will lead to Loss of Ownership. If
the first and fourth cases are due to war, epidemic, and any
force majeure are acceptable conditions when failing to meet
requirements and work.

Reduction Works
Workers of the mines can decide where to build their reduction
works but if the landowner did not agree, the worker can apply
the Law of Eminent Domain. When the civil governor decided
and the owner did not agree with it, the owner can appeal to the
governor general, whose decision shall be final. But when
bigger reduction works are to be established, authorization of
the Governor General is required.

Taxes
An annual tax of 40 escudos must be paid for ordinary mining
claims, 20 escudos for iron/bit/etc., and 50 escudos for every
40,000 square meters of scoriae and dumps. 20 escudos per
claim in exploration permission.
- Iron ore mining claims remain excluded from tax for 30
years from the date this law is published.
- All ore/metals may be exported from the Island without
paying export duties.
- Imports of Anthracite Coal is exempted from the payment
of import duties because this material is used for making
metals/metallurgy, unless new rules made about it.
- 3 % tax shall be paid on all mining products except
substances mentioned in Article 1.

When can you appeal and who can?

Anyone affected with the decision and those people who
protested locally can make an appeal.

When disagrees from the decision of Governor General, you

can appeal to the Council of Administration if the said situations
below:
- Reject permission to explore
- Decisions regarding granting/refusal ownership
- Decisions declaring forfeiture and cancellation
THE PHILIPPINE BILL OF 1902 July 01, 1992
- The PH Bill of 1902 is an act temporarily to provide for the
administration of the affairs of Civil Government in the
Philippine Islands, and for other purposes.
- That all affidavits required to be made under this Act may
be verified before any officer authorized to administer
oaths within the province or military department where the
claims may be situated, and all testimony and proofs may
be taken before any such officer, and, when duly certified
by the officer taking the same, shall have the same force
and effect as if taken before the proper provincial secretary
or such other officer as by the Government of the
Philippine Islands may be described as mining recorder.
- That all proceedings for the cancellation of perfected
Spanish concessions shall be conducted in the Courts of
the Philippine Islands having jurisdiction of the subject-
matter and of the parties.
- Philippine Island & US Citizens above 21 years old can
apply to enter Vacant Coal Lands not exceeding 64 ha for
individuals and 128 ha for corporations upon payment
($25 if 15 miles away from railroad; $50 if closer).
- Claims must be submitted to the appropriate
provincial secretary within sixty days after the claimant
has taken actual possession of the land and commenced
improvements on it. If improvements were already made
before the law's enactment, the claimant has sixty days
from three months after the law's passage to file a
declaratory statement. Additionally, it states that no sale
related to this law can occur until six months have passed
since its enactment.
- Group of people can't claim more than 64 hectares while
Individual can't claim more than 8 hectares.
- No holder shall be entitled for more than one claim on the
same vein or lode.
Who owns the Mineral Resources? Owner of the Patented
Land owns the resources beneath.
What are the Land Classifications?
- Timber/Forest Lands: These lands are primarily
designated for forestry purposes, including the production
of timber and other forest products. They are typically
under the control and management of the government to
ensure sustainable forestry practices.
- Mineral Lands: These lands contain valuable mineral
resources such as gold, copper, and other ores. They are
typically under the jurisdiction of the government, which
regulates their exploration, extraction, and management
through mining laws and regulations.
- Agricultural Lands: These lands are reserved for
agricultural purposes and may be subject to settlement,
cultivation, and development by private individuals or
entities under certain conditions and regulations imposed
by the government.
Can you lease a Mineral Land? No, because of Patented
System.
Who can mine? Citizens of the Philippine Islands & US are
allowed and open for exploration, occupation, and purchase.
If deposits found in an Occupied Agriculture Land
The Government and its authorized agents have the rights to
mine out the mineral deposits on the land if it is not patented.
But if the owner wishes to apply for patent, the owner needs to
pay the value of agriculture land + additional amount equal to
the value of the mineral deposits.
Who can locate? Any qualified person
Conditions for locating
Aiming for a square/rectangular shape measuring up to 1000 ft
in length and 1,000 ft in breadth. This plot should ideally be
rectangular with right angles at its corners but exceptions are
made if geologic features does not allow it or force majeure.
Marking & Identifying a Mining Claim
- Mineral claim is marked by placing a 2 post as close of
possible to me mineral vein or ledge.
- These 2 posts must not exceed 1,000 ft.
- On both posts, certain information must be written: Name
of Mineral Claim, Name of the Locator and the Date of the
location. The post one must be labelled as "Initial post",
with approximate compass bearing of post number 2, and
a statement of the member of feet lying to the right and left
of the line between the 2 posts.
- Submit an affidavit to confirm that legal notices and posts
have been displayed.
- Mining claim will be recorded by the Mining Recorder, this
must be done within 30 days from the date of locating the
claim.
- The claim holder must perform at least $100 worth of
labour to ensure that the work in the land is active and that
the claim holder is exploring and that there is a progress
happening.
Patent Procedures
- File an application for the patent.
- Post a coppy of Plat (showing the Claim's boundary with
distinct marked by monuments) and a notice of patent
application
- File an Affidavit of at least persons that such notice has
been dully posted.
- Application will be posted in a Newspapers: English and
Spanish, once a week for wo days. This is published to
inform everyone that a specific area has been applied. If
no adverse claims are filed within 60 days of publication, it
is assumed that the applicant is entitled to a paint.
Disputes
When 2 or more parties seek claim the same area, the first one
who will marked out the claim and followed the procedure will
have the rightful ownership. According to the Priority of such
location. But if there are errors in the record of the first one, it
could affect the claim’s validity. The rightful owner must comply
with the terms and conditions outline in this law., failing to do so
could nullify the claim.
Abandonment
A holder may at any time abandon any mineral claim by giving
notice, in writing, or such intention to abandon, to the provincial
secretary or other design.
COMMONWEALTH ACT NO. 137 November 07, 1936
- “The Mining Act”
- The terms "person," "holder," "occupant," "locator,"
"licensee," "lessee," "permittee," "owner," whenever used
in this Act, shall include an individual, a corporation, a
sociedad anomina, a limited partnership and an
unincorporated association, and words in the singular shall
include the plural, and vice versa. The term "ton" as used
in this Act shall mean a short ton of nine hundred seven
and two tenths (907.2 kg).
- Minerals found within areas Torrens titles are not
automatically owned.
- All other inorganic substances found in nature whether
in solid, liquid, gaseous, or intermediary forms are
classified as minerals under this Act.
- Mineral lands are those in which minerals exist in
sufficient quantity and quality.
- At least 60% of the capital of such associations or
corporations shall at all times be owned and held by
citizens of the Philippines.
- Upon the recommendation of the Secretary of
Agriculture and Commerce, the President may set apart
mineral land reservations, and he shall by proclamation
declare the establishment of such reservations.
- When certain lands are set aside for things other than
mining, people who already have mining rights on those
lands shall continue to enjoy all rights accorded them
under existing law.
- Lands within reservations for purposes other than mining
are found to be more valuable for their mineral contents
may be withdrawn from such reservations by the President
with the concurrence of the National Assembly.
- Aerolites or other bodies coming from sidereal space are
minerals within the meaning of this Act, the disposition of
which shall be determined by regulations.
- Individual cannot hold/lease >3 of lode claims and placer
claims on the same vein/ground. Corporations etc.,
cannot hold/lease >3 placer mining claims.
Who owns the Mineral Lands? The state
Disestablishment: This is done by the President when the
value of mineral resources in a reserved land is not enough.
Classification of Land (Under Mining Location)
1st Group: Metals/Metalliferous Ores
- Lode Deposits: 9 ha for Individual/Partnership/etc.
- Placer Deposits: 8 ha for Individual; 64 ha for Entire
Associations
2nd Group: Precious Stone (garnet, diamond, zircon, jade, etc.)
- 4 ha for any Qualified Locator
3rd Group: Fuels (combustible substances – oil shales, peat.,)
Not provided under this act but rather under:
- Act No. 2719: An act to provide for the leasing and
development of coal lands in the Philippines Islands.
- Act No. 2932: An Act to provide for the exploration,
location and lease of lands containing petroleum and other
mineral oils and gas in the Philippine Islands.
4th Group: Saline and Mineral Waters (salt, nitrates, sodic, etc)
- Not exceed 4 ha for any Qualified Locator
5th Group: Building Stone and Other non-metals
- Lode Deposits: 8 ha Indiv; 64 ha for entire associations
- Placer Deposits: 9 ha for Indiv, limited partnership, corp.
Who can prospect and who are restricted?
Prospectors may prospect for themselves or hired by other
corporations provided that there is a proper power of authority
in writing be given by the employer to this prospector, this shall
be recorded by a Mining Recorder concerned with the recording
of a Declaration of Location. Officers and Employees of the
executive and any branch of the government are restricted
because of their duties related to the administration or
disposition of mineral resources. You can only let your
prospector prospect in a land after a year of the effective date
(example: Nov 7, 1937).
Prospect in Private Lands
Ask first the landowner for a permission in writing. If the
landowner did not allow or did not agree on compensation, this
shall be fixed by agreement among the prospector, the Director
of the Bureau of Mines and the surface owner. Should no
agreement be reached, the matter is brought before the Court
of First Instance for resolution. However, if the prospector
deposits an amount deemed fair compensation with the court,
they may access the land pending final resolution of the dispute.
Then, the court decides how much the miner has to pay for any
damage they cause and figures out how much the land is worth.
This way, everyone's rights are protected, and there's a fair way
to settle any disagreements.
Lode Mineral Claim vs. Placer Claim
Lode refers to a mineral deposit that occurs in a well-defined,
linear zone within solid rock, like a vein or ledge. Placer
deposit consists of loose, valuable minerals that have been
eroded and transported by water from their original source and
concentrated in streambeds, riverbanks, or other alluvial
deposits.
Placer Claims
Placer mining claims may be of an irregular pattern following the
meanderings of a creek, river, or stream. Placer claims shall be
located in as nearly as possible rectangular form.
No Prospecting shall be allowed:
- Proclaimed Mineral Reservations as closed to Mining
Locations
- In lands covered by Patented Claims
- In lands in which minerals have been discovered prior to
the effective date of this act and are claimed by the
discoverer/his successors interest.
- In lands that have been located for Mining leases.
- Near or under bridges, cemeteries, and any other public
and private works.
What if it is impossible to mark the claim?
Then the claim may be marked by placing posts as nearly as
possible to the proper position of number one and number two
posts, and noting thereon the distance and direction of such
posts from such positions, which distance and direction shall be
set out in the declaration of location of the claim.
Work Obligation
Any person, association, or corporation holding a lease under
the provisions of this Act shall perform during each year,
while the lease is in force, not less than 200 pesos worth of
labor, or of improvements, on each mining claim of the 1st and
5th groups, and 100 pesos worth of labor, or of improvements
on each claim of the 2nd and 4th groups.
Application for Lode Claims Payments
- Any qualified person desiring to locate a lode mineral Failure to meet these requirements will lead to cancellation of
claim shall, subject to the provisions of this Act, enter and the area & open to relocation.
locate a plat of ground, measuring not more than 300 m in
Rentals (from 1st 2nd 4th and 5th groups): All collected will go
length by 300 m in breadth, in as nearly as possible a
50% in the province & 50% in the municipality.
rectangular form and all angles shall be right angles unless
Royalties: Equivalent to our excise tax today; Mineral products
the geologic feature does not allow it.
are based on Annual Gross Output.
- Lode claim is marked by placing a 2 post as close of
- 15% Lode Mines producing ore which average <10 pesos
possible to me mineral vein or ledge. These 2 posts must
but >7 pesos.
not exceed 300 m. On both posts (must be at least 15 or
- 25% Lode Mines producing ore which average <7 pesos.
12 cm in diameter and about 140 cm long; bury it to 40 cm
- 30% in the case of Gold Placer Mines.
depth), certain information must be written: Name of Lode
Taxes: All buildings/structures/ Facilities in Mining area; 50% to
Mineral Claim, Name of the Locator and the Date of the
the province 50% to municipality.
location. The post one must be labelled as "Initial post",
with approximate compass bearing of post number 2, and
a statement of the member of feet lying to the right and left
of the line between the 2 posts. The locator shall
immediately mark distinctly seen and place a post at the
point where he has found minerals in place, or on the
surface, on which shall be written “Discovery Post”.
- Lode Claim will be recorded with a declaration of location
(No lode or placer mining claim shall be recorded unless
the declaration of location be accompanied by an affidavit
made by the applicant or some person on his behalf). A
fee of 3 pesos is paid for each amended declaration of
location, affidavit, document, etc.
- Apply for a Mining Lease within 2 years from the date of
the recording of the claim.
- After submitting requirements, the Director of the
Bureau of Mines shall publish a notice once a week for a
period of 3 consecutive weeks, in the Official Gazette and
in two newspapers.
- If no adverse claims, lease may be granted. This is for 25
years and renewable for another 25 years.

Application for Mining Lease

Application must be filed within a year from the date of
recording.
- File Declaration of location
- Mining Recorder shall record the Declaration of Location
- Apply for lease within 2 years from the date of recording.
- Plat and notice will be published in newspaper; post of
affidavit of at least 2 persons. If there are adverse claims,
resolve it.
- If no adverse claims, Mining lease will be grated.
Lease contract is for 25 years and renewable for another as
years (subject to terms & conditions). Lease can be transfer
upon approval of the secretary of the Agriculture and
Commerce.

Classification of Land (Under Mining Lease)

1st Group: Metals/Metalliferous Ores
- Lode Deposits: Not more than 450 ha for
Individual/Partnership/etc.
- Placer Deposits: Not more than 400 ha for
corp/partnership.
2nd Group: Not more than 40 ha for Indiv and 320 ha for corp
4th Group: Not more than 24 ha for Indiv; 192 for corp.
5th Group: Building Stone and Other non-metals
- Lode Deposits: Not more than 450 ha Indiv and corp.
- Placer Deposits: Not more than 400 ha for Indiv; 3, 200
ha for association, corp, etc.
PD No. 1586 June 11, 1978

What is PD No. 1586
Establishing an Environmental Impact Statement System,
including other Environmental Management Related Measures
and for other Purposes.
What is the Policy (Sec. 1)?
State aims to achieve a balanced approach between socio-
economic growth and environmental protection.
What is Sec. 2?
The EIS System is created based on the requirement in
Presidential Decree No. 1151 for all government agencies,
government-owned corporations, and private entities to submit
an environmental impact statement for projects significantly
affecting the environment.
When proposed project undergoes EIA and shows that there are
no negative impacts in the Environment, instead of ECC, the
government will issue the Certificate of Non- Coverage.
- Certificate of Non-Coverage: It is a document issued by
the DENR's Environmental Management Bureau (EMB)
that exempts a project from obtaining an Environmental
Clearance Certificate (ECC). The certification serves
as evidence of the absence of any environmental threat
during the project's implementation.
- But if in mining, under the exploration stage, EIA is not
required. (therefore, ECC and Certificate of non-coverage
are not required). Instead, Environmental Work Program
is required - addresses any potential disturbance during
the exploration stage.

What is Sec. 4? Environmental Non-critical Project: Projects or undertakings

President - with advice from National Environmental Protection
Council (NEPC), can label projects or areas as Environmentally
Critical. And no one can start or run such projects without first
securing Environmental Compliance Certificate from the
President or his duly authorized agency. Ministry of Human
Settlements shall:
a) plan land or water use for critical projects or areas,
b) set environmental quality standards,
c) create programs to protect against disasters
d) carry out other tasks assigned by the President.
What is Sec. 5?
Non-critical Projects don't need to submit an EIS unless
requested by the NEPC, may however ask non-critical projects
to add extra environmental safeguards if needed.
What is Sec. 9?
Violators of this Decree, terms and conditions in the issuance of
the ECC, or other council rules shall be punished by suspension
or cancellation of their certificate or be fined up to P50,000.00
per violation, at the Council's discretion. The penalty will fund
an Environmental Revolving Fund which will support the
NEPC and NPCC in enforcing the decree.
Who makes the rules and regulations?
National Environmental Protection Council will make rules
for this Decree, possibly involving the National Pollution Control
Commission as per its responsibilities under P.D. No. 984.
that are not environmentally critical.
Programmatic Environmental Impact Statement (PEIS):
Documentation of comprehensive studies on environmental
baseline conditions of a contiguous area. It also includes an
assessment of the carrying capacity of the area to absorb
impacts from co-located projects such as those in industrial
estates or economic zones (ecozones).
How to secure ECC
- Applicant shall conduct a formal scoping, introducing the
project to the community.
- Assess the area (EIA) and prepare documents (EIS).
- Review and Evaluation of the EIA report.
- Substantive Review that involves Environmental
Management Bureau – an agency responsible for
implementing environmental policies, programs, and
regulations. Its primary mandate is to protect, conserve,
and manage the environment and natural resources to
promote sustainable development.
- EMB Personnel will endorse the recommendation whether
ECC will issue or not.
- Issuance of the decision document (ECC or Letter)
- When ECC is granted, transmit it to the Government
agency concern. Any violation of the ECC has penalty –
can be suspend/cancel or fine 50, 000 pesos for every
violation.

Differentiate EIA, EIS, and ECC

EIA is a comprehensive process of accessing the area,
identifying, evaluating, and mitigating the potential
environmental effects of proposed projects or activities. It
encompasses the entire process from initial planning stages to
decision-making and implementation.
EIS outline the status of the Environment in the affected area,
provides the baseline for understanding the potential
consequences of the proposed project, identifies positive and
negative impacts for the Environment and proposes Mitigation
Measures. It is a report that summarizes the findings of EIA.
ECC is a document issued by the government after the
evaluation of the EIS and other relevant documents. The ECC
signifies that the proposed project has undergone thorough
Environmental Review, complies with Environmental Laws and
Regulations, and incorporates necessary Mitigation Measures
to minimize Adverse Environmental Impacts. The ECC also
serves as authorization for the project to proceed.
PD No. 279 July 25, 1987

Explain Sec. 2 of Art. 12 of the 1987 Constitution

The state controls natural resource exploration, development,
and utilization. It can directly manage these activities or engage
in partnerships, such as, co-production, joint ventures, or
production sharing agreements where at least 60% of the capital
is owned by Filipino citizens. This agreement can last up to 25
years, renewable for another 25, and are governed by law.

Explain Sec. 2 of Art. 12 of the 1937 Constitution

The President may enter into agreements with foreign-owned
corporations involving either technical or financial assistance for
large-scale exploration, development, and utilization of
minerals, petroleum, and other mineral oils according to the
general terms and conditions provided by law.

Sec. 1
The Secretary of the DENR is hereby authorize to negotiate and
sign joint venture agreements for mineral exploration and
development with any Filipino citizen, corporation or association
at least sixty percent (60%) of whose capital is owned by Filipino
citizens
- Agreements can last up to 25yrs, renewable for another
25yrs, and must include certain terms.
- When making these agreements, parties can combine
multiple mining claims or leases into one area.

Sec. 3
Contracts made by the Secretary under Sections 1 and 2 need
the President's approval. Although the Secretary can negotiate
mineral exploration agreements, the President must approve
them for them to be valid.

Sec. 4
Secretary can review proposals from foreign-owned
corporations or investors for large-scale mineral projects. If the
Secretary recommended these proposals, The President may
approve these proposals. The President will consider their
contribution to economic growth & local scientific development.
For now, large-scale mining means projects with capital
investment of at least $50,000,000.