PHILIPPINE MINING ACT OF 1995 Republic Act (R.A.) No.

7942
AN ACT INSTITUTING A NEW
SYSTEM OF MINERAL RESOURCES
EXPLORATION, DEVELOPMENT,
UTILIZATION AND
CONSERVATION IN THE COUNTRY
DECLARATION OF POLICY
ALL MINERAL RESOURCES IN PUBLIC AND PRIVATE
LANDS WITHIN THE TERRITORY AND EXCLUSIVE
ECONOMIC ZONE OF THE REPUBLIC OF THE
PHILIPPINES ARE OWNED BY THE STATE. IT SHALL BE
THE RESPONSIBILITY OF THE STATE TO PROMOTE THEIR
RATIONAL EXPLORATION, DEVELOPMENT, UTILIZATION
AND CONSERVATION THROUGH THE COMBINED EFFORTS
OF GOVERNMENT AND THE PRIVATE SECTOR IN ORDER
TO ENHANCE NATIONAL GROWTH IN A WAY THAT
EFFECTIVELY SAFEGUARDS THE ENVIRONMENT AND
PROTECT THE RIGHTS OF AFFECTED COMMUNITIES.
OWNERSHIP OF MINERAL RESOURCES
SECTION 2, ARTICLE XII OF THE
CONSTITUTION
“SEC. 2. 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.”
REGALIAN DOCTRINE OR JURA
REGALIA
All lands of the public domain belong to the State, and
that State is the source of any asserted right to ownership
in land and charged with the conservation of such
patrimony
All lands not appearing to be clearly of private dominion
presumptively belong to the State
For the benefit of the State and not of private persons
MINERAL RESOURCES DECREE OF 1974 ( PD NO. 463)
OWNERSHIP OF MINERAL DEPOSITS BY STATE – DOMINANT PRINCIPLE
“Section 4. Minerals Excluded from other Rights to Lands. The
ownership or the right to use public or private lands whether
exposed or submerged, for agricultural, logging, industrial,
commercial, residential, petroleum exploration and/or exploitation
or purposes or any purpose other than mining, does not include the
ownership of, nor the right to develop, exploit or utilize, the mineral
deposits found in, on or under the surface of such lands, except
with respect to quarry resources as provided for this Decree.
Section 5. Mineral Deposits Open to Location and Lease. Subject to
any existing rights or reservations, all valuable mineral deposits in
public land including timber or forest land as defined in Presidential
Decree No. 389, otherwise known as the Forestry Reform Code or
in private land not closed to mining location, and the land which they
are found, shall be free and open to prospecting, occupation,
location and lease.”
SECTION 5 OF RA NO. 7942
“Mining operations in existing mineral reservations and such
other reservations as may thereafter be established, shall
be undertaken by the Department or through a contractor”
SECTION 2, ARTICLE XII
“…The exploration, development, and utilization of
natural resources shall be under the full control and
supervision of the State.”
NATIONALIZATION OF THE
NATURAL RESOURCES
a. To insure their conservation for Filipino posterity;
b. To serve as an instrument of national defense, helping prevent
the extension to the country of foreign control through peaceful
economic penetration; and
c. To avoid making the Philippines a source of international
conflicts with the consequent danger to its internal security and
independence
“FULL CONTROL AND SUPERVISION BY THE
STATE” IN THE EXPLORATION, DEVELOPMENT AND
UTILIZATION OF THE COUNTRY’S NATURAL
RESOURCES
Through direct undertaking or by entering into co-production, joint
venture, or production-sharing agreements, or by entering into
agreement with foreign-owned corporations for large-scale
exploration, development and utilization
1987 Constitution – more dynamic role in the exploration,
development, and utilization of the natural resources of the
country
Article XII, Section 2 of the 1987 Constitution
Vital to the public interest and the general welfare of the people
ACTIVITIES WHICH MAY BE UNDERTAKEN BY THE
STATE IN CONNECTION WITH ITS “FULL CONTROL
AND SUPERVISION”
1. The State may directly undertake such activities
2. The State may enter into co-production, joint venture or
production-sharing agreements with Filipino citizens or
qualified corporations
3. Congress may, by law, allow small-scale utilization of natural
resources by Filipino citizens
4. For the large-scale exploration, development and utilization of
minerals, petroleum and other mineral oils, the President may
enter into agreements with foreign-owned corporations
involving technical or financial assistance
THE FOLLOWING PROVISIONS THEREOF ESTABLISH
THE MECHANISM OF INSPECTION AND VISITORIAL
RIGHTS OVER MINING OPERATIONS AND INSTITUTE
REPORTORIAL REQUIREMENTS IN THIS MANNER:
Section 8 – DENR’s power of over-all supervision and periodic review for “the
conservation, management, development, and proper use of the State’s mineral
resources”
Section 9 – authorizes the Mines and Geosciences Bureau (MGB) under the DENR
To exercise “direct charge in the administration and disposition of mineral
resources”
Monitor the compliance by the contractor of the terms and conditions of the
mineral agreements
Confiscate surety and performance bonds
Deputize whenever necessary any member or unit of the Philippine National
Police, barangay, duly registered non-governmental organization (NGO) or any
qualified person to police mining activities
Section 66 – vests in the Regional Director “exclusive
jurisdiction over safety inspections of all installations, whether
surface or underground,” utilized in mining operations
Section 35 – incorporates into all Financial and Technical
Assistance Agreement (FTAAs) the following terms, conditions
and warranties:
The mining operations shall be conducted in accordance with
the provisions of this Act and its implementing rules and
regulations;
Work programs and minimum expenditures commitments;
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;
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;
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;
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.
RIGHTS OF A LOCATOR TO A PERFECT
MINING CLAIM
VESTED IN THE STATE, BUT THERE WAS A TIME
WHEN THE MINING LAWS PREVAILING IN THIS
JURISDICTION WERE COMPROMISING OF THE
FILIPINO PEOPLE’S INHERENT RIGHTS TO THEIR
NATURAL WEALTH.
MINING RIGHTS ACQUIRED UNDER THE
PHILIPPINE BILL OF 1902 AND PRIOR TO THE
EFFECTIVITY OF THE 1935 CONSTITUTION
WERE VESTED RIGHTS THAT COULD NOT BE
IMPAIRED EVEN BY THE GOVERNMENT
BUT MERE RECORDING OF MINING CLAIM,
WITHOUT PERFORMING ANNUAL WORK
OBLIGATION, DOES NOT CONVERT LAND INTO
MINERAL LAND
PD NO. 1214
Issued requiring all locators under the Philippine Bill of 1902 to
secure mining lease contracts under the provisions of PD No. 463
(Mineral Resources Development Decree of 1974)
Section 1. Holders of subsisting and valid patentable mining
claims, lode or placer, located under the provisions of the Act of
Congress of July 1, 1902, as amended, shall file a mining lease
application therefor with the Mines Regional office concerned
within a period of one (1) year from the approval of this
Decree, and upon the filling thereof, holders of the said claims
shall be considered to have waived their rights to the issuance
of mining patents therefor: Provided, however, That the non-
filing of the application for mining lease by the holders thereof
within the period herein prescribed shall cause the forfeiture of
all his rights to the claim.
Section 2. No mines temporary permit shall be required of a
holder of a patentable mining claim, lode or placer, in the
extraction and disposal of minerals taken therefrom prior to
the filling of the mining lease application therefor; Provided,
That upon the filling of the said application, the provisions of
Presidential Decree No. 463 shall apply: Provided, further,
That patent applications already published shall be
exempted from the publication requirements of Presidential
Decree No. 463.
Valid exercise of sovereign power of the State
Decree does not cover all mining claims located under
the Philippine Bill of 1902, but only those claims over
which their locators had failed to obtain a patent
And even then, locators may still avail of the
renewable twenty-five year lease prescribed by PD No.
463, the Mineral Development Resources Decree of 1974
Mere location does not mean absolute ownership over
the affected land or the mining claim
Segregates the located land or area from the public domain
by barring other would-be locators from locating the same
and appropriating for themselves the minerals found therein
To rule otherwise would imply that location is all that is
needed to acquire and maintain rights over a mining claim
Cannot approve or sanction because it is contrary to the
intention of the lawmaker that the locator should faithfully
and consistently comply with the requirements for annual
work and improvements in the located mining claim
ABANDONMENT
Giving up absolutely, with intent never again to resume or claim
one’s rights or interests
Actual , absolute, and irrevocable desertion of one’s right or
property
Concurrence of two elements:
Intent to abandon a right or claim
External act by which that intention is expressed and carried
into effect
Actual, not merely projected, relinquishment of a claim or right;
otherwise, the right or claim is not vacated or waived so as to be
susceptible of being appropriated by the next owner
Express terms, states that with the exception of
agricultural lands, all other natural resources shall not
be alienated
Mineral resources clearly beyond the commerce of man;
cannot be subject of a patent
A registered owner of land does not have the right to
extract or utilize minerals discovered underneath his
property without the permission of the State which
owns the minerals
NOT ANY AND ALL FORMS OF UTILIZATION OF
NATURAL RESOURCES ARE PROHIBITED
Constitution states that the Congress may, by law, allow small-
scale utilization of natural resources by its citizens
Section 6, Article XIII – directs the State, in the disposition and
utilization of natural resources, to apply the principles of
agrarian reform or stewardship
Section 7, Article XIII – mandates the State to protect the rights
of subsistence fishermen to the preferential use of marine and
resources
Section 2, Article XII – interpreted in harmony with the other
provisions of the Constitutions, cannot be construed as a
prohibition against any and all forms of utilization of natural
resources without the State’s direct participation
MINERAL RESOURCES
SECTION 5 OF RA NO. 7942
When the national interest so requires, such as when there is a need
to preserve strategic raw materials for industries critical to national
development, or certain minerals for scientific, cultural or ecological
value, the President may establish mineral reservations upon the
recommendation of the Director through the Secretary. Mining
operations in existing mineral reservations and such other reservations
as may thereafter be established, shall be undertaken by the
Department or through a contractor: Provided, That a small scale-
mining cooperative covered by Republic Act No. 7076 shall be
given preferential right to apply for a small-scale mining agreement
for a maximum aggregate area of twenty-five percent (25%) of such
mineral reservation, subject to valid existing mining/quarrying rights
as provided under Section 112 Chapter XX hereof. All submerged
lands within the contiguous zone and in the exclusive economic zone of
the Philippines are hereby declared to be mineral reservations.
Establishment of mineral reservations resides in the
President
Beyond the power of the DENR Secretary to withdraw
lands from forest reserves and to declare the same as
an area open for mining operations
Areas within a forest reserve are not open to mining
location
SECTION 6 OF RA NO. 7942
Mining operations in reserved lands other than mineral
reservations may be undertaken by the Department, subject to
limitations as herein provided. In the event that the Department
cannot undertake such activities, they may be undertaken by a
qualified person in accordance with the rules and regulations
promulgated by the Secretary. The right to develop and utilize the
minerals found therein shall be awarded by the President under
such terms and conditions as recommended by the Director and
approved by the Secretary: Provided, That the party who
undertook the exploration of said reservation shall be given
priority. The mineral land so awarded shall be automatically
excluded from the reservation during the term of the agreement:
Provided, further, That the right of the lessee of a valid mining
contract existing within the reservation at the time of its
establishment shall not be prejudiced or impaired.
Mining operations in reserved lands other than mineral
reservations may be undertaken by the DENR subject to certain
limitations
Does not disallow mining applications in all forest reserves but
only those specifically declared closed to mining applications
under Section 19 of the law, such as:
In military and other government reservations, except upon
prior written clearance by the government agency concerned;
In areas expressly prohibited by law; and
In old growth or virgin forests, proclaimed watershed forest
reserves, wilderness areas, mangrove forest, 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 RA No. 7586, and
DAO No. 25, series of 1992, and other laws
Section 15(b) of DAO No. 96-40 provides that government
reservations may be opened for mining applications upon prior
written clearance by the government agency having jurisdiction
over such reservation
Section 18 of RA No. 7942 allows mining in public or private
lands, including timber or forest lands subject to existing rights
and reservations
Section 47 of PD No. 705 permits mining operations in
forestlands which include the public forest, the permanent forest
or forest reserves, and forest reservations
DENR MEMORANDUM ORDER NO.
03-98
Lays down the guidelines in the issuance of area status and
clearance or consent for mining applications pursuant to RA No.
7942, provides that timber of forest lands, military and other
government reservations, forest reservations, forest reserves other
than critical watershed forest reserves, and existing DENR Project
Areas within timber or forest lands, reservations and reserves,
among others, are open to mining applications subject to area
status and clearance
LAW ENUMERATES REQUIREMENTS FOR THE
PROSPECTING AND EXPLORATION OF
GOVERNMENT RESERVED LAND
1. A prospecting permit from the agency that has jurisdiction over
the area;
2. An exploration permit from the MGB
3. If the exploration reveals the presence of commercial deposit,
the permittee applies with the MGB for the exclusion of the
area from the reservation;
4. Issuance of a Presidential proclamation excluding the area
from the reservation; and
5. A mining agreement approved by the DENR Secretary
AUTHORITY OF THE DEPARTMENT Authority of the Department
SECTION 8 OF RA NO.7942
“The Department shall be the primary government agency
responsible for the conservation, management,
development, and proper use of the State's mineral
resources including those in reservations, watershed areas,
and lands of the public domain. The Secretary shall have
the authority to enter into mineral agreements on behalf
of the Government upon the recommendation of the
Director, promulgate such rules and regulations as may
be necessary to implement the intent and provisions of
this Act.”
ROLE OF LOCAL GOVERNMENTS
FOLLOWING ROLES IN MINING PROJECTS
WITHIN THEIR RESPECTIVE JURISDICTIONS
a. To ensure that relevant law on public notice, public consultation and
public participation are complied with;
b. In coordination with the Bureau/Regional Office(s) and subject to valid
and existing mining rights, to approve application for small-scale
mining, sand and gravel, quarry, guano, gemstone gathering and
gratuitous permit and for industrial sand and gravel permits not
exceeding five hectare;
c. 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;
d. 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 in Environmental Compliance Certificate (ECC);
e. To participate in the monitoring of any mining activity as a
member of the Multipartite Monitoring Team referred to in
Section 185 hereof;
f. To participate as a member of the Mine Rehabilitation Fund
Committee as provided for in Sections 182 to 187 hereof;
g. 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;
h. To act as mediator between the indigenous cultural communities
and the contractors as may be requested;
i. To coordinate with the Department and Bureau in the
implementation of the Act and the implementing rules and
regulations in their respective jurisdiction. In areas covered by
the Southern Philippines Council for Peace and Development
(SPCPD). Autonomous Region of Muslim Mindanao (ARMM) and
future similar unit, the appropriate offices of said units shall
coordinate with the Department and Bureau in the
implementation of the Act and the implementing rules and
regulations; and
j. To perform such other power and functions as may be
provided for by applicable laws, rules and regulations
 ATOK BIG-WEDGE MINING COMPANY,
PETITIONER, VS. HON. INTERMEDIATE
APPELLATE COURT AND TUKTUKAN SAINGAN,
RESPONDENTS.
FACTS:
Subject
Land-41,296 square meters situated in the
barrio of Lucnab, Itogon, Benguet.
Parties:
ATOK BIG-WEDGE MINING COMPANY
(claiming that the said parcel of land is a
mineral land)
TUKTUKAN SAINGAN (claiming that the said
parcel of land is agricultural)
ATOK:
They contended that the said parcel of land was
being registered in the office of Mining Recorder in
1921 and 1931 pursuant to Philippine Bill of
1902. It is about sixteen years before Tuktukan
declared the land in question for taxation purposes
and thirty four (34) years before private
respondent filed the land registration proceedings
in 1965. They also showed the payment of annual
assessment fees for the said land since 1931.
TUKTUKAN:
Who was 70 years old at the time he testified shows that
he acquired the land from his father-in-law, Dongail, when
he married his daughter; that he was then 18 years old;
that at the time of his acquisition, it was planted with
camotes, casava, langka, gabi, coffee and avocados; that
he lived on the land since his marriage up to the present;
that he has been paying the taxes during the Japanese
occupation and even before it; that he was never disturbed
in his possession. Supporting his oral testimony, applicant
[Tuktukan] submitted tax declarations x x x both dated
March 20, 1948, the former for a rural land and the latter
for urban land and improvement therein.
ISSUE:
Whether or not the said parcel of land is a
mineral land or an agricultural land.
HELD:
The SC ruled in favor of the Tuktukan in the reasons that:
1. Tuktukan have proven that he had in possession of the
said land in a concept of an owner, continuously, open
and uninterrupted for a period of more than 30 years.
2. He had improve almost 90% of the said parcel of
land.
3. He had paid tax declaration of the said land since
1948 up to present.
It is evident that Atok had registered the land prior than
Tuktukan but still the SC ruled in favor of Tuktukan for the
reasons:
1. Payment of annual assessment fee is not enough proof.
There must be an annual performance of labor or
undertaking of improvements in the mine.
2. When an ocular survey was made, it was evident that
there was No improvements being made in the said
land and there is any sign of mining had happened in
the land. Hence, the petition is DENIED.
 LA BUGAL-BLAAN TRIBAL
ASSOCIATION, INC., V. RAMOS
FACTS:
On July 25, 1987, President Corazon C. Aquino issued Executive
Order (E.O.) No. 279 authorizing the DENR Secretary to accept,
consider and evaluate proposals from foreign-owned
corporations or foreign investors for contracts or agreements
involving either technical or financial assistance for large-scale
exploration, development, and utilization of minerals, which, upon
appropriate recommendation of the Secretary, the President may
execute with the foreign proponent.
On March 3, 1995, President Fidel V. Ramos approved R.A. No.
7942 to “govern the exploration, development, utilization and
processing of all mineral resources.”
On April 9, 1995, R.A. No. 7942 took effect. But shortly before
the effectivity of R.A. No. 7942, (March 30th), the President
entered into an Financial and Technical Assistance Agreement
(FTAA) with WMC Philippines, Inc. (WMCP) covering 99,387
hectares of land in South Cotabato, Sultan Kudarat, Davao del
Sur and North Cotabato. Subsequently, DENR Secretary Victor O.
Ramos issued DENR Administrative Order (DAO) No. 95-23, s.
1995, otherwise known as the Implementing Rules and Regulations
of R.A. No. 7942 which was also later repealed by DAO No. 96-
40, s. 1996.
Petitioners claim that the DENR Secretary acted without or in
excess of jurisdiction in signing and promulgating DENR
Administrative Order No. 96-40 implementing Republic Act No.
7942, the latter being unconstitutional.
ISSUE:
Whether or not the requisites for judicial review are
present to raise the constitutionality of Republic Act No.
7942.
HELD:
When an issue of constitutionality is raised, this Court can exercise
its power of judicial review only if the following requisites are
present:
(1) The existence of an actual and appropriate case;
(2) A personal and substantial interest of the party raising the
constitutional question;
(3) The exercise of judicial review is pleaded at the earliest
opportunity; and
(4) The constitutional question is the lis mota of the case.
Respondents claim that the first three requisites are not present.
Section 1, Article VIII of the Constitution states that “judicial power
includes the duty of the courts of justice to settle actual
controversies involving rights which are legally demandable and
enforceable.” The power of judicial review, therefore, is limited to
the determination of actual cases and controversies.
An actual case or controversy means an existing case or
controversy that is appropriate or ripe for determination, not
conjectural or anticipatory, lest the decision of the court would
amount to an advisory opinion. The power does not extend to
hypothetical questions since any attempt at abstraction could only
lead to dialectics and barren legal questions and to sterile
conclusions unrelated to actualities.
“Legal standing” or locus standi has been defined as a
personal and substantial interest in the case such that the
party has sustained or will sustain direct injury as a result
of the governmental act that is being challenged, alleging
more than a generalized grievance. The gist of the
question of standing is whether a party alleges “such
personal stake in the outcome of the controversy as to
assure that concrete adverseness which sharpens the
presentation of issues upon which the court depends for
illumination of difficult constitutional questions.” Unless a
person is injuriously affected in any of his constitutional
rights by the operation of statute or ordinance, he has no
standing.
Petitioners traverse a wide range of sectors. Among them are La
Bugal B’laan Tribal Association, Inc., a farmers and indigenous
people’s cooperative organized under Philippine laws representing
a community actually affected by the mining activities of WMCP,
members of said cooperative, as well as other residents of areas
also affected by the mining activities of WMCP. These petitioners
have standing to raise the constitutionality of the questioned FTAA
as they allege a personal and substantial injury. They claim that
they would suffer “irremediable displacement” as a result of the
implementation of the FTAA allowing WMCP to conduct mining
activities in their area of residence. They thus meet the
appropriate case requirement as they assert an interest adverse to
that of respondents who, on the other hand, insist on the FTAA’s
validity.
In view of the alleged impending injury, petitioners also have
standing to assail the validity of E.O. No. 279, by authority of
which the FTAA was executed.
Public respondents maintain that petitioners, being strangers to the
FTAA, cannot sue either or both contracting parties to annul it. In
other words, they contend that petitioners are not real parties in
interest in an action for the annulment of contract.
Public respondents’ contention fails. The present action is not
merely one for annulment of contract but for prohibition and
mandamus. Petitioners allege that public respondents acted
without or in excess of jurisdiction in implement