MiningLaws AdministrativeOrdersRulesandRegulations DUU
MiningLaws AdministrativeOrdersRulesandRegulations DUU
MiningLaws AdministrativeOrdersRulesandRegulations DUU
MINING LAWS,
ADMINISTRATIVE ORDERS, AND
RULES AND REGULATIONS
2
I. Mining Laws
Superseded E.O No. 279, the interim mining law issued on July 25, 1987.
5
RA 7942
2. Basic Features:
Retained the Regalian Doctrine; allows foreign participation
and the rights to explore, develop, and utilize thru mineral
agreements and financial or technical agreement (E.O.
279)
2. Basic Features:
Authority of the Mines and Geosciences Bureau (MGB) [Sec. 9]
Direct charge in the administration and disposition of
mineral lands and mineral resources;
2. Basic Features:
2. Basic Features:
Different Mining Contracts
Major Mining Tenements (National Govt-DENR)
Exploration Permit
Mineral Agreements
Mineral Production Sharing Agreement
Co-Production Agreement
2. Basic Features:
Different Mining Contracts
Various Mining Tenements (LGU)
Quarry Permit
Gratuitous Permit
Guano Permit
2. Basic Features:
2. Basic Features:
Areas Closed to Mining (Section 19)
a) Military and other Government reservations, except upon
prior written clearance by the Government Agency
concerned;
b) Near or under public or private buildings, cemeteries,
archeological and historical sites, bridges, highways,
waterways, railroads, reservoirs, dams or other
infrastructure projects, public or private works including
plantations or valuable crops, except upon written consent
of the government agency or private entity concerned.
c) Areas covered by valid and existing mining rights
(tenements), whether applications or approved.
d) Areas expressly prohibited by law.
2. Basic Features:
Mineral Reservations (Sec. 5)
2. Basic Features:
Mineral Reservations (Sec. 5)
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 25% of such
mineral reservation, subject to valid existing
mining/quarrying rights as provided under Section 112,
Chapter XX.
2. Basic Features:
Mineral Reservations (Sec. 5)
All submerged lands within the contiguous zone and in
the exclusive economic zone of the Philippines are
declared to be mineral reservations.
Other Reservations (Sec. 6)
Mining operations in reserved lands other than mineral
reservations may be undertaken by the Department,
subject to limitations. In the event the Department
cannot undertake such activities, they may be
undertaken by a qualified person.
refers to the water, sea bottom and subsurface measured from the baseline of the Philippine Archipelago up to two
hundred (200) nautical miles offshore
2. Basic Features:
Mineral Reservations (Sec. 5)
All submerged lands within the contiguous zone and in
the exclusive economic zone of the Philippines are
declared to be mineral reservations.
Other Reservations (Sec. 6)
Mining operations in reserved lands other than mineral
reservations may be undertaken by the Department,
subject to limitations. In the event the Department
cannot undertake such activities, they may be
undertaken by a qualified person.
refers to the water, sea bottom and subsurface measured from the baseline of the Philippine Archipelago up to two
hundred (200) nautical miles offshore
EXPLORATION
DEVELOPMENT
PRODUCTION
FINAL MINE
REHABILITATION &
PROGRESSIVE DECOMMISSIONING
REHABILITATION
Department of Environment and Natural Resources
Republic of the Philippines 19
EXPLORATION means searching and
prospecting for mineral resources by
geological, geochemical and/or geophysical
surveys, remote sensing, test pitting,
trenching, drilling, shaft sinking, tunneling or
any other means for the purpose of
determining their existence, extent, quality
and quantity and the feasibility of mining
them for profit.
23
Timeline of Progression from Exploration to Utilization
ACTIVITY
Filing of
Exploration
MPSA
Development/
Utilization under
MPSA
Declaration of
Mining Project
Feasibility
PERIOD
2 yrs, 1 yr. 25 yrs,
renewable up renewable for
to 6 yrs. another 25 yrs.
National Integrated
Small-Scale
Protected Area
System Act
MINING Mining Laws
26
RA 7942
Environmental Documents
27
RA 7942
Environmental Documents
Environmental Impact Assessment (EIA)
28
RA 7942
Environmental Documents
29
RA 7942
Environmental Documents
31
FINANCIAL MECHANISMS
FOR THE
IMPLEMENTATION OF
ENVIRONMENTAL
PROGRAMS
32
FINANCIAL MECHANISM
CONTINGENT LIABILITY AND REHABILITATION FUND (CLRF)
There are two (2) forms of CLRF namely the Mine Rehabilitation Fund
(MRF) and the Mine Waste and Tailings Fees.
The MRF is composed of the Rehabilitation Cash Fund (RCF) and the
Monitoring Trust Fund (MTF).
33
CONTINGENT LIABILITY AND
REHABILITATION FUND (CLRF)
34
Final Mine Rehabilitation and Decommissioning
Fund (FMRDF).
35
Table 1 Schedule of Annual Cash Provisions to the
FMRDF
Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
E 1 year 1.000
x
p 2 years 1.000 -
e 3 years 0.500 0.500 -
c
T 4 years 0.556 0.333 0.111 -
e
d 5 years 0.437 0.313 0.187 0.063 -
6 years - 0.437 0.313 0.187 0.063 -
M
i 7 years - 0.367 0.300 0.180 0.123 0.030 -
n
e 8 years - 0.367 0.300 0.173 0.102 0.030 0.028 -
12 years - - 0.265 0.225 0.177 0.147 0.088 0.050 0.020 0.016 0.012 -
(i
n 13 years - - 0.207 0.180 0.150 0.130 0.100 0.080 0.063 0.050 0.030 0.010 -
y
e 14 years - - - 0.207 0.180 0.150 0.130 0.100 0.080 0.063 0.050 0.030 0.010 -
a
r 15years - - - 0.207 0.180 0.150 0.130 0.100 0.080 0.063 0.050 0.020 0.010 0.010 -
s)
36
SOCIAL AND
COMMUNITY
DEVELOPMENT
37
Social/Community Development
SOCIAL DEVELOPMENT AND
MANAGEMENT PROGRAM (SDMP)
38
Social/Community Development
Source of Funds
Mining companies shall allot a 1.5% of the operating cost
annually which shall be divided into:
39
RA 7942
2. Basic Features:
Auxiliary Rights
Timber Rights a right granted to contractor to cut trees
or timber within his mining area as may be necessary for
his mining operations subject to forestry laws, rules and
regulations;
Water Rights a contractor shall have water rights for
mining operations upon approval of application in
accordance with existing water laws, rules and
regulations;
Right to Possess Explosives a contractor/exploration
permittee shall have the right to possess and use
explosives within his contract/permit area as may be
necessary for his mining operations upon approval his
application;
Department of Environment and Natural Resources
Republic of the Philippines 40
RA 7942
2. Basic Features:
Auxiliary Rights
Easement Rights for purposes of more convenient
mining operations, a contractor shall be entitled to enter
and occupy mining areas or lands upon payment of just
compensation;
Entry into Private Lands and Concession Areas a right
granted to contractors, provided:
With prior notification to the surface owners,
occupants or concessionaires;
Damage done to the property shall be properly
compensated;
Post a bond with the Regional Director to gurantee
such compensation.
Department of Environment and Natural Resources
Republic of the Philippines 41
RA 7942
2. Basic Features:
Settlement of Conflicts - Creation of a quasi-judicial
bodies:
The PANEL OF ARBITRATORS in every regional office
of the MGB-DENR :
Composition: Three (3) Members duly designated
by the Secretary as recommended by the MGB
Director.
Two (2) of whom must be members of the
Philippine Bar in good standing; and
One (1) Licensed Mining Engineer or a
Professional in a related field
2. Basic Features:
Settlement of Conflicts: Creation of quasi-judicial bodies
2. Basic Features:
Settlement of Conflicts: Creation of quasi-judicial bodies
Powers and Functions
a) To promulgate rules and regulations governing the
hearing and disposition of cases;
b) To administer oaths, issue summons, subpoena to
testify or production of documents;
c) To conduct hearing and decide appealed cases;
d) To hold any person in contempt, directly or indirectly,
and impose appropriate penalties; and
e) To enjoin any or all acts involving or arising from the
any case pending which, if not restrained may cause
irreparable damage to any of the parties to the case
or seriously affect social and economic stability.
Department of Environment and Natural Resources
Republic of the Philippines 46
RA 7942
2. Basic Features:
Government Share
1. In Mineral Agreements
For Mineral Production Sharing Agreement:
The excise tax on mineral products equivalent to
2% of the actual market value of the gross output
For Co-Production and Joint Venture Agreements :
Negotiated based on: (a) the capital investment in
the project, (b) the risks involved, (c) the contribution
of the project to the economy and (d) other factors
that will provide for a fair and equitable sharing
between the parties.
2. In FTAA
2. Basic Features:
Incentives to Compliant Mining Contractors/Permittees
Small-Scale Mining
b. Non-payment of taxes and fees due the Government for two (2)
consecutive years;
58
RA 7942
MINING
(Exploration, Development and Utilization of Mineral Resources)
2. Major Features:
Sec. 2. Definition of Terms:
d. Annual Social Development and Management
Program refers to a yearly community
development programs/projects/activities based
on the approved five- year Social Development
and Management Program.
Sec. 16. Ancestral Lands
Par 6 - The implementation of this Section shall be
in accordance with Republic Act No. 8371,
otherwise known as The Indigenous Peoples
Rights Act of 1997and other pertinent laws.
Department of Environment and Natural Resources
Republic of the Philippines 63
RA 7942: DAO No. 2010-21
2. Major Features:
Sec. 17, Chapter V. Exploration Permit as the Initial Mode of
Entry in Mineral Exploration. Exploration activities maybe
directly undertaken by the Department or, in the event that
the Department can not undertake such exploration activities
by a Qualified Person in specified areas as determined by the
Secretary: Provided, That the conduct of mineral exploration
by a Qualified Person in all areas open to mining shall be
initially undertaken through an Exploration Permit, subject to
the provisions of Chapter VII on the FTAA.
2. Major Features:
Par. 1, Sec. 18, Chapter V. Term/Maximum Areas Allowed
under an Exploration Permit. Provided, further, That the
conduct of a feasibility study and filing of the declaration of
mining project feasibility shall be undertaken during the term
of the Exploration Permit, subject to the provisions of Section 30
hereof.
2. Major Features:
Sec. 19. Par 1. d.1. - For an individual copy of income
tax return for the preceding year and proof of bank deposit
or credit line in the amount of at least Two Million Five
Hundred Thousand Pesos (PhP2,500,000.00) x x x
2. Major Features:
Sec. 19. Par 3 Provided, that in case the aforesaid
requirements are not issued within the NCIPs prescribed
periods, the Exploration Permit applicant shall submit the
NCIPs Report on the Field-Based Investigation for the
applied area that does not overlap ancestral domain, or
the Memorandum of Agreement (MoA) executed by and
among the Exploration Permit applicant, ICC/IP concerned
and the NCIP for the applied area that affects the ICCs/IPs;
Provided, further, That the said Certificate of Non-Overlap
or Certification Precondition shall be submitted by the
Exploration Permit applicant within ninety (90) days from
issuance of the Exploration Permit.
2. Major Features:
Sec. 19-A. Transfer or Assignment of Exploration Permit
Application. Transfer or assignment of Exploration Permit
applications shall be allowed subject to the approval of the
Regional Director concerned taking into account the
national interest and public welfare: Provided, That such
transfer or assignment shall be subject to eligibility
requirements and shall not be allowed in cases involving
speculation.
70
Republic Act (RA) No. 7076
Brief Background
Laws Governing Small-Scale Mining
Brief Background
Laws Governing Small-Scale Mining
RA No. 7160 Local Government Code of 1991 (Oct. 10, 1991)
o DAO 30, Series of 1992
RA No. 7942 - An Act Instituting a New System of Mineral Resources
Exploration, Development, Utilization and Conservation (March 3, 1995)
o DAO 2010 21
Maintained co-existence of PD 1899 and RA 7076
EO No. 79 - Institutionalizing and Implementing Reforms in the
Philippine Mining Sector, Providing Policies and Guidelines to Ensure
Environmental Protection and Responsible Mining in the Utilization of
Mineral Resources (July 6, 2012)
o DAO 2012 07
Does not recognize PD 1899
Department of Environment and Natural Resources
Republic of the Philippines 73
B. Republic Act (RA) No. 7076
Permitting Mechanism
Proponent/Petitioner:
Contact Person:
Designation/Authority:
Area Location:
Total Area (Has.):
Target Mineral Commodity:
YES Viability
Notices to
Evaluation
conflicted areas;
Open for and Initial
Posting of Notices,
Declaration allocation Review by
Publication, NCIP
for Mineral the
Certificate of Non-
processing Secretary
overlap, favorable
Zone, if
NO endorsements
applicable
Petition/
Proposal
Denied
NO Declaration of
With Minahang
Opposition Clearance from Secure ECC (for the
/Protest DENR Secretary entire MB area) Bayan; Posting
and
Publication
YES
For
resolution
by the
Board
Petitioner
Board MGB-DENR Board
& EMB
MINING
Current Violations & INDUSTRY Advocacy Groups
Malpractices
98
Results of Anti-Mining Sentiment
101
THE MINING STUDY GROUPS
SPECIFIC TASKS:
3. Formulate the mining industry policy by the end of the year and
present it to the Presidents approval.
102
Actions Taken:
108
EXPECTED OUTCOME OF MINING POLICY REFORMS
On the May 2, 2017 Letter of the Office of the President to one of the
mining companies
ee
116
D. On the 75 MPSAs within the Watersheds (February 14, 2017)
117
E. DAO No. 2017-10 dated April 27, 2017 in re: Banning the Open
Pit Method of Mining for Copper, Gold, Silver and Complex Ores
in the Country
F. DAO No. 2017-07 dated March 10, 2017 in re: Mandating Mining
Contractors to Participate in the Philippine Extractive Industries
Transparency Initiative (PH-EITI)
* or indexation - a system of economic control in which certain variables (as wages and interest) are
tied to a cost-of-living index so that both rise of fall at the same rate and the detrimental effect of
inflation is theoretically eliminated 122
4. Accelerating annual infrastructure spending to account for 5
percent of the gross domestic product, with public-private
partnerships playing a key role;
*Keynote speech 63rd annual National Mine Safety and Environment Conference
125
Philippine Mine Safety and Environment association (Published Nov 21, 2017)
Policy 2: Streamlining of application procedures
www.denr.gov.ph www.mgb.gov.ph
Republic of the Philippines
DEPARTMENT OF ENVIRONMENT & NATURAL RESOURCES