“When mining areas are so situated that for

purposes of more convenient mining operations it

is necessary to build, construct or install on the
mining areas or lands owned, occupied or leased
by other persons, such infrastructure as roads,

Section 75 railroads, mills, waste dump sites, tailings ponds,

warehouses, staging or storage areas and port

Easement facilities, tramways, runways, airports, electric

transmission, telephone or telegraph lines, dams

Rights
and their normal flood and catchment areas, sites
for water wells, ditches, canals, new river beds,
pipelines, flumes, cuts, shafts, tunnels, or mills,
the contractor, upon payment of just
compensation, shall be entitled to enter and
occupy said mining areas or lands.”
 C. Section 76 constitutes
compensable “taking” for public
use
CASE: DIPIDIO EARTH SAVER’ MULTIPURPOSE
ASSOCIATION, INC VS. GOZUN
 D. Determination of compensation
by the panel of Arbitrators is only
preliminary.

"While Section 105 empowers the Panel of Arbitrators to handle

cases involving entry refusal by surface owners or occupants,
leading to involuntary taking, the determination of just
compensation by the Panel or the Mines Adjudication Board is
not final unless agreed upon by all parties involved.
E. Surface Rights must be based on
compliance with legal requirements

According to the Regalian doctrine,

minerals found on private land belong to
the State, not the landowner.
 Voluntary Agreement
If a surface owner, occupant, or concessionaire willingly
allows mining rights holders to enter and use their land for
mining, they must register this voluntary agreement with
the relevant Regional Office. This agreement will be
legally binding on the involved parties, including their
heirs, successors, and assigns.
K. Transport of Mineral Products and Confiscation,
Seizure, and Disposition of Illegally-sourced
Minerals/Mineral Products
 ORE TRANSPORT PERMIT
an official authorization issued by the relevant mining
regulatory authority, often the Regional Director or their duly
authorized representative. This permit is required for the
legal transport of minerals, mineral products, and by-
products, including gold bullions. The permit ensures that the
transportation activities comply with regulations and
guidelines governing mining operations.
ARRESTS, If any required documents are missing, it's
considered as evidence of illegal mining.

CONFISCATIONS, This leads to the confiscation of minerals,

equipment, and conveyance used in the

AND SEIZURES offense, following PD No. 1281 and

pending further investigation.
L. SETTLEMENTS OF
CONFLICTS

Panel Arbitrators
 Settlement of mining disputes by
the Panel of Arbitrators

A mining dispute encompasses conflicts related to (a) rights to mining areas, (b) mineral
agreements, FTAAs, or permits, and (c) surface owners, occupants, and
claimholders/concessionaires. RA No. 7942 grants exclusive and original jurisdiction over
these disputes to the Panel of Arbitrators (POA).
 APPEAL

A decision or order from the Panel of Arbitrators (PA) can be appealed by a

party to the Mines Adjudication Board (MAB) within fifteen (15) days from
receiving it. The MAB is then required to make a decision on the case within
thirty (30) days from the submission for a decision.
 M. GOVERNMENT SHARE
The government's share in co-production and joint-venture agreements will be negotiated based on factors like
(a) project capital investment,
(b) associated risks,
(c) the project's contribution to the economy, and

(d) other considerations for fair sharing. The government is also entitled to compensation for its contributions,
including taxes on dividends or interest paid to foreign stockholders and other fees specified by existing laws.
INCENTIVES
• Fiscal and Non-fiscal Incentives
• Incentives for pollution control devices
• 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:
• Repatriation of Investment
• Remittance of earnings
• Foreign loans and contracts
• Freedom from expropriation
• Requisition of investment
• Confidentiality
O. GROUNDS FOR CANCELLATION,
REVOCATION, AND TERMINATION
• Late or non-filing of requirements
• Violation of the terms and conditions of
permits or agreements
• Non-payment of taxes and fees
 SUSPENSION OR
CANCELLATION OF TAX
INCENTIVES AND CREDITS
Grounds:
The Bureau may suspend or cancel wholly or partially any incentive granted under the rules and
regulations for any cause including the ff:
• Any violation of the Act, rules and regulations implementing the same or of the terms and
conditions in the Mineral Agreement or FTAA;
• 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;

• 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.
 Q. PENAL PROVISIONS

• False statements
• Destruction of mining structures
• Illegal explorations
• Mines Arson
• Theft of Minerals
• Willful damage to a mine
• Elements of the offense
• Illegal obstruction to permittees/ contractors
• Accused extracted, removed and/or disposed of
• Violation of the terms conditions of the
minerals
• These minerals belongs to the government environmental compliance certificate
• The accused did not possess a mining lease or a • Obstruction of government officials
temporary permit
 PEOPLE’S SMALL-
SCALE MINING ACT
OF 1991
REPUBLIC ACT NO. 7076
 HISTORY
Small-scale mining in the Philippines has been practices long before the Spaniards colonized
the country.

70’s- small-scale mining was limited to intermittent alluvial gold placer in which recover was
through direct panning or using crude sluice box.

80’s- it became a significant contributor to the minerals industry and the national economy
with the discovery of the gold-rush site in Davao and the sporadic panning activities that
followed in 37 other provinces.
● *Mineralized areas refer to areas with naturally occurring mineral deposits of
gold, silver, chromite, kaolin, silica, marble, gravel, and like mineral resources.

● *small-scale mining refers to mining activities which rely heavily on manual

labor using simple implement and methods and DO NOT use explosives or
heavy mining equipment.

● *small-scale miners refer to 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-beating materials from the ground.

● “Qualified Person” refers to any Filipino citizen of legal age and with capacity
to contract; or a 100% Filipino-owned corporation, partnership, association or
cooperative organized or authorized for the purpose of engaging in small-scale
mineral processing, with technical and financial capability to undertake mineral
processing, duly registered in accordance with law.
● "Active mining area" refers to 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 claim owner and/or under contract with an
operator, but in no case to exceed the maximum area allowed by law.

● "Existing mining right" refers to perfected and subsisting claim, lease, license or
permit covering a mineralized area prior to its declaration as a people's small-scale
mining area.

● “Minahang Bayan or People’s Small-Scale Mining Area” refers to the entire

area declared as People’s Small-Scale Area pursuant to RA No. 7076.

● “Board” refers to the Provincial/City Mining Regulatory Board composed of the

Regional Director concerned of the Mines and Geosciences Bureau as
Chairperson, and four members composed of duly appointed representatives of
the following offices/sectors: Governor or City Mayor, small-scale miners, large-
scale miners, and environmental non-government organizations.
 Policy
It is the policy of the State to promote, develop,
protect, and rationalize viable small-scale mining
activities in order to degenerate more employment
opportunities and provide an equitable sharing of the
nation’s wealth and natural resources, giving due
regard to existing rights.
PEOPLE’S SMALL-SCALE
MINING PROGRAM
a) The identification, segregation and reservation of
certain mineral lands as people’s small-scale mining
areas;
b) The recognition of prior existing rights and
productivity;
c) The encouragement of the formation of cooperatives;
d) The extension of technical and financial assistance,
and other social services;
e) The extension of assistance in processing and
marketing;
f) The generation of ancillary livelihood activities;
g) The regulation of the small-scale mining industry with
the view to encourage growth and productivity; and
h) The efficient collection of government revenue
 PEOPLE’S SMALL-SCALE MINING
a) Area already occupied and actively mined by small-scale miners before August 1,
1987; AREA
b) Public lands not subject to any existing rights;
c) Public lands covered by existing mining rights which are not active mining areas;
d) Private lands, subject to the consent of the landowner(s) and 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 the rights and conditions; and
e) Ancestral lands with prior consent of the cultural communities concerned.
 Registration of small-scale miners
All persons undertaking small-scale mining activities
shall register as miners with the Board and may
organize themselves into cooperative in order to
qualify for the awarding of a people’s small-scale
mining contract.
Award of people’s small-scale contracts
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.
 TERMS AND CONDITIONS OF THE
CONTRACT
a) Undertake mining activities only in accordance with
a mining plan duly approved by the Board;
f) File under oath at the end of each month a
detailed production and financial report to
b) Abide by the safety rules and regulations of the the Board; and
Mines and Geosciences Bureau;
g) Assume responsibility for the safety of persons
working in the mines.
c) Comply with his obligations as the holder of an
existing mining right;

d) Pay all taxes, royalties or government production

share as are now or may hereafter be provided
by law;

e) Comply with pertinent rules and regulations on

environmental protection and conservation,
particularly those on tree-cutting, mineral-
processing and pollution control;
 a) Size of membership and capitalization
of the cooperative;
b) Size of mineralized area;

Extent of Contract Area c)

d)
Quantity of mineral deposits;
Safety of miners;
e) Environment impact and other
considerations; and
f) Other related circumstances.
 Rights of Claimowners Rights of Private landowners

• Exemption from the performance of • Entitled to the payment of actual

annual work obligation and damages which he may suffer as
payment of occupation fees, a result of such declaration;
rentals, and real property taxes; • Royalties paid to the owner shall
• Subject to the approval of the in no case exceed one percent of
Board, free access to the contract the gross value of the minerals
area to conduct metallurgical tests, recovered.
explorations and other activities,
provided such activities do not
unduly interfere with the operations
of the small-scale miners; and
• Royalty equivalent to one and one
half percent of the gross value of
the metallic mineral output or one
percent of the gross value claim of
the nonmetallic mineral output to be
paid to the claimowner.
 Mill tailings Custom mills

© Northen Disptach © Semantic Scholar

Sale of Gold
SMALL-SCALE MINING UNDER PD
1899
Established a small-scale mining as a new dimension in mineral
development upon the following considerations:
● Abundance of cheap labor in the Philippines;
● Relative flexibility and simplicity of operations;
● Minimum capital requirements;
● Less fuel dependent operations and minimal effects on the
environment;
● Existence small tonnages requiring minimal capital investments
utilizing manual labor;
● Generation of more employment opportunities, alleviating the
living condition in the rural areas thereby contributing
additional foreign exchange earnings.
 DENR issued DMC 2007-07 or

SR Metals, “Clarificatory Guidelines in the

Implementation of the Small-Scale Mining
Laws” by imposing the annual production
Inc. vs. limit to 50,000 DMT to both SSMPs under
PD No. 1899 and SSMCs under RA 7076.
Reyes
 Composition of the Board
Chairperson
● Regional Director

Member/s
● Provincial Governor or City Mayor or his/her representative
● One small-scale mining representatives
● One large-scale mining representatives
● One representative from an environmental non-government
organization
 ENVIRONMETAL
PROTECTION, SAFETY
AND HEALTH
© Philippine Mining
Development Corporation
COAL DEVELOPMENT ACT
OF 1976
Presidential Decree No. 972, as amended by Presidential Decree No. 1174
Enacted: July 29, 1976
OBJECTIVES:

To promote an accelerated exploration, development, exploitation,

production and utilization of coal, encourage the participation of
the private sector with sufficient capital, technical and managerial
resources in the exploitation and production of coal resources, and
upgrade the technical and financial capabilities of the coal
industry.
BRIEF OVERVIEW:

THE ROLE OF COAL

IN THE PHILIPPINES
COAL DEVELOPMENT
PROGRAM

• Division into Coal Regions

• Exploration and Exploitation Programs
• Promotion and Development
• Special Coal Program
• Coordination with Government Agencies
 COAL EXPLORATION,
DEVELOPMENT, AND
PRODUCTION BY THE
GOVERNMENT
Section 4. Government to Undertake Coal Exploration
Development and Production.
“The Government, through the Energy Development Board,
its successors or assigns, shall undertake by itself the active
exploration, development and production of coal resources.
It may also execute coal operating contracts as hereafter
defined. “
SECTION 6. COAL a.

CONTRACT AREA By offering an area or areas for bids, specifying the minimum
requirements and conditions in accordance with this Decree: or

The Energy Development Board shall

determine in each coal region what areas, are
b.
available for coal operating contracts. In By negotiating with a qualified party for a coal operating contract
opening such contract areas, the Energy under the terms and conditions provided in this Decree.

Development Board may resort to either of

the following alternative procedures:
No person shall be entitled to more than fifteen
(15) blocks of coal lands in any one coal region.

Briefly explain the company's third proposed solution.

COVERAGE OF THE EXPLOITATION OF COAL
RESOURCES BY THE GOVERNMENT
THROUGH COAL OPERATING CONTRACTS:

• Public Lands
• Any unreserved/ unappropriated coal bearing lands
• Claims located and recorded by private parties areas covered by valid and subsisting coal revocable permits
• Coal Leases
• Government mineral reservations
• Coal areas, mines, whose leases/ permits are presently owned or operated/ held by government owned and controlled
corporations
• and , coal mineable areas operated/ held by government agencies

Back to Agenda Jeffries and Madison

 Section 5. Blocking System-

“The Energy Development Board shall establish coal regions delimiting its extent and
boundaries after taking into consideration the various coal bearing lands of the
Philippines. Each coal region shall be divided into meridional blocks or quadrangles of
two minutes (2′) of latitude and one and one-half minutes (1-1/2) of longtitude, each
block containing an area of one thousand (1,000) hectares, more or less, the boundaries
thereof to coincide with the full two minutes and one and one-half minutes of latitude and
longtitude, respectively, based on the Philippine Coast and Geodetic Survey Map, scale of
1:50,000.”
 Section 7. Existing
Permitees/Leaseholders

Coal revocable permits, coal leases and other existing rights granted by the government
for the exploration and exploitation of coal lands shall be deemed automatically canceled
and the area covered thereby shall revert back to the State for failure of the holders or the
qualified operators thereof for any cause whatsoever to consolidate their areas into coal
units or secure a coal operating contract within the period specified in this section.
 Section 8. Coal Operating Contract.

Each coal operating contract herein authorized shall, subject to the approval of the
President, be executed by the Energy Development Board.
In a coal operating contract, service, technology and financing are furnished by the
operator for which it shall be entitled to the stipulated fee and reimbursement of operating
expenses. Accordingly, the operator must be technically competent and financially
capable as determined by the Energy Development Board to undertake the coal operations
as required in the contract.
 SECTION 9. OBLIGATIONS OF
OPERATOR IN COAL
OPERATING CONTRACT.
The operator under a coal operating contract shall undertake, manage and execute the coal
operations which shall include:

Operator's Obligations: Government's Oversight and Requirements:

• Undertake, manage, and execute coal • Require operator to provide necessary services and technology.
• Demand requisite financing from the operator.
operations.
• Enforce work obligations and program specified in the contract.
• Conduct geological surveys and • Ensure operation adheres to good mining practices.
investigations. • Obtain prompt information and reports from the operator.
• Reach coal deposits through shaft sinking • Maintain detailed technical records and accounts.
and tunneling. • Allow access to equipment and sites for inspection.
• Full access to accounts, books, and records for authorized representatives.
• Extract and utilize coal deposits.
Back to Agenda Jeffries and Madison
 SECTION 11. MINIMUM
TERMS AND CONDITIONS.

(a) Spending Obligations and Work Requirements:
• Exploration Work Obligations
• Exception for Open Pit Mining
• Development and Production Obligations
• Excess Expenditures
• Penalty for Non-Compliance
• Drilling Requirements
(b) Exploration Period and Contract
Renewal:
• Exploration Period
• Extension for Compliance
• Lapse and Renewal
(c) Ownership of Installations
(d) Compliance with Laws
DOCTRINE OF PRIMARY
JURISDICTION

certain issues, particularly those within the expertise of an

administrative agency, shall be initially addressed by that agency
before the courts step in.
SECTION 16.
INCENTIVES TO
OPERATORS:

(a) Tax Exemption

(b) Customs Duty Exemption
(c) Accelerated Depreciation
(d) Foreign Loan and Contract Remittance
(e) Preference in Government Loans
(f) Foreign Personnel Approval
INCENTIVES FOR COAL
CONVERSION:

(a) Tax Exemption on Imported Equipment:

(b) Tax Credit on Domestic Equipment:
(c) Net Operating Loss Carryover:
(d) Capital Gains Tax Exemption:
(e) Accelerated Depreciation:
(f) Foreign Loans and Contracts:
(g) Preference in Government Loans
 CASE:
TORIBIO ORTEGA JR, ET AL
VS DOE AND DENR