Ra 7076

Download as pdf or txt
Download as pdf or txt
You are on page 1of 6

S. No. 1333 H. No. 10516 / 87 OG No. 36, 5161 ( (Sept.

9, 1991) ; 2 VLD 62 2d ; Malaya


7/3/91

[ REPUBLIC ACT NO. 7076, June 27, 1991 ]


AN ACT CREATING A PEOPLE'S SMALL-SCALE MINING
PROGRAM AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress


assembled:

SECTION 1. Title. - This Act shall be known as the "People's Small-scale Mining Act of
1991."

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to promote,
develop, protect and rationalize viable small-scale mining activities in order to generate
more employment opportunities and provide an equitable sharing of the nation's wealth
and natural resources, giving due regard to existing rights as herein provided.

SEC. 3. Definitions. - For purposes of this Act, the following terms shall be defined as
follows:

a. "Mineralized areas" refer to areas with naturally occurring mineral deposits of gold,
silver, chromite, kaolin, silica, marble, gravel, clay and like mineral resources;
b. "Small-scale mining" refers to mining activities which rely heavily on manual labor
using simple implements and methods and do not use explosives or heavy mining
equipment;
c. "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
Department of Environment and Natural Resources to engage, under the terms and
conditions of a contract, in the extraction or removal of minerals or ore-bearing
materials from the ground;
d. "Small-scale mining contract" refers to co-production, joint venture or mineral
production sharing agreement between the State and a small-scale mining contractor
for the small-scale utilization of a plot of mineral land;
e. "Small-scale mining contractor" refers to an individual or a cooperative of small-
scale miners, registered with the Securities and Exchange Commission or other
appropriate government agency, which has entered into an agreement with the State
for the small-scale utilization of a plot of mineral land within a people's small-scale
mining area;
f. "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;
g. "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;
h. "Claimowner" refers to a holder of an existing mining right;
i. "Processor" refers to a person issued a license to engage in the treatment of minerals
or ore-bearing materials such as by gravity concentration, leaching beneficiation,
cyanidation, cutting, sizing, polishing and other similar activities;
j. "License" refers to the privilege granted to a person to legitimately pursue his
occupation as a small-scale miner or processor under this Act;
k. "Mining plan" refers to a two-year program of activities and methodologies
employed in the extraction and production of minerals or ore-bearing materials,
including the financial plan and other resources in support thereof;
l. "Director" refers to the regional executive directer of the Department of
Environment and Natural Resources; and
m. "Secretary" refers to the Secretary of the Department of Environment and Natural
Resources.

SEC. 4. People's Small-scale Mining Program. - For the purpose of carrying out the
declared policy provided in Section 2 hereof, there is hereby established a People's Small-
scale Mining Program to be implemented by the Secretary of the Department of
Environment and Natural Resources, hereinafter called the Department, in coordination
with other concerned government agencies, designed to achieve an orderly, systematic and
rational scheme for the small-scale development and utilization of mineral resources in
certain mineral areas in order to address the social, economic, technical, and
environmental problems connected with small-scale mining activities.

The People's Small-scale Mining Program shall include the following features:

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.

SEC. 5. Declaration of People's Small-scale Mining Areas. - The Board is hereby


authorized to declare and set aside people's small-scale mining areas in sites onshore
suitable for small-scale mining, subject to review by the Secretary, immediately giving
priority to areas already occupied and actively mined by small-scale miners before August
1, 1987: Provided, That such areas are not considered as active mining areas: Provided,
further, That the minerals found therein are technically and commercially suitable for
small-scale mining activities: Provided, finally, That the areas are not covered by existing
forest rights or reservations and have not been declared as tourist or marine reserves, parks
and wildlife reservations, unless their status as such is withdrawn by competent authority.

SEC. 6. Future People's Small-scale Mining Areas. - The following lands, when suitable
for small-scale mining, may be declared by the Board as people's small-scale mining
areas:

a. Public lands not subject to any existing right;


b. Public lands covered by existing mining rights which are not active mining areas;
and
c. Private lands, subject to certain rights and conditions, except those with substantial
improvements or in bona fide and regular use as a yard, stockyard, garden, plant
nursery, plantation, cemetery or burial site, or land situated within one hundred
meters (100 m.) from such cemetery or burial site, water reservoir or a separate
parcel of land with an area of ten thousand square meters (10,000 sq. m.) or less.

SEC. 7. Ancestral Lands. - No ancestral land may be declared as a people's small-scale


mining area without the prior consent of the cultural communities concerned: Provided,
That, if ancestral lands are declared as people's small-scale mining areas, the members of
the cultural communities therein shall be given priority in the awarding of small-scale
mining contracts.

SEC. 8. Registration of Small-scale Miners. - All persons undertaking small-scale mining


activities shall register as miners with the Board and may organize themselves into
cooperatives in order to qualify for the awarding of a people's small-scale mining contract.

SEC. 9. Award of People's Small-scale Mining Contracts. - A people's small-scale mining


contract may be awarded by the Board to small-scale miners who have voluntarily
organized and have duly registered with the appropriate government agency as an
individual miner or cooperative: Provided, That only one (1) people's small-scale mining
contract may be awarded at any one time to a small-scale mining contractor who shall start
mining operations within one (1) year from the date of award: Provided, further, That
priority shall be given to small-scale miners residing in the province or city where the
small-scale mining area is located.

Applications for a contract shall be subject to a reasonable fee to be paid to the


Department of Environment and Natural Resources regional office having Jurisdiction
over the area.

SEC. 10. Extent of Contract Area. - The Board shall determine the reasonable size and
shape of the contract area following the meridional block system established under
Presidential Decree No. 463, as amended, otherwise known as the Mineral Resources
Development Decree of 1974, but in no case shall the area exceed twenty hectares (20
has.) per contractor and the depth or length of the tunnel or adit not exceeding that
recommended by the director taking into account the following circumstances:

a. Size of membership and capitalization of the cooperative;


b. Size of mineralized area;
c. Quantity of mineral deposits;
d. Safety of miners;
e. Environmental impact and other considerations; and
f. Other related circumstances.

SEC. 11. Easement Rights. - Upon the declaration of a people's small-scale mining area,
the director, in consultation with the operator, claimowner, landowner or lessor of an
affected area, shall determine the right of the small scale miners to existing facilities such
as mining and logging roads, private roads, port and communication facilities, processing
plants which are necessary for the effective implementation of the People's Small-scale
Mining Program, subject to payment of reasonable fees to the operator, claimowner,
landowner or lessor.

SEC. 12. Rights Under a People's Small-scale Mining Contract. - A people's small-scale
mining contract entitles the small-scale mining contractor to the right to mine, extract and
dispose of mineral ores for commercial purposes. In no case shall a small-scale mining
contract be subcontracted, assigned or otherwise transferred.

SEC. 13. Terms and Conditions of the Contract. - A contract shall have a term of two (2)
years, renewable subject to verification by the Board for like periods as long as the
contractor complies with the provisions set forth in this Act, and confers upon the
contractor the right to mine within the contract area: Provided, That the holder of a small-
scale mining contract shall have the following duties and obligations:

a. Undertake mining activities only in accordance with a mining plan duly approved by
the Board;
b. Abide by the Mines and Geosciences Bureau and the Small-scale Mining Safety
Rules and Regulations;
c. Comply with his obligations to 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;
f. File under oath at the end of each month a detailed production and financial report to
the Board; and
g. Assume responsibility for the safety of persons working in the mines.

SEC. 14. Rights of Claimowners. - In case a site declared and set aside as a people's-scale
mining area is covered by an existing mining right, the claimowner and the small-scale
miners therein are encouraged to enter into a voluntary and acceptable contractual
agreement with respect to the small-scale utilization of the mineral values from the area
under claim. In case of disagreement, the claimowner shall be entitled to the following
rights and privileges:

a. Exemption from the performance of annual work obligations and payment of


occupation fees, rental, and real property taxes;
b. Subject to the approval of the Board, free access to the contract area to conduct
metallurgical tests, explorations and other activities, provided such activities do not
unduly interfere with the operations of the small-scale miners; and
c. Royalty equivalent to one and one half percent (1 1/2%) of the gross value of the
metallic mineral output or one percent (1%) of the gross value of the nonmetallic
mineral output to be paid to the claimowner: Provided, That such rights and
privileges shall be available only if he is not delinquent in the performance of his
annual work obligations and other requirements for the last two (2) years prior to the
effectivity of this Act.

SEC. 15. Rights of Private Landowners. - The private landowner or lawful possessor shall
be notified of any plan or petition to declare his land as a people's small-scale mining
area. Said landowner may oppose such plan or petition in an appropriate proceeding and
hearing conducted before the Board.

If a private land is declared as a people's small-scale mining area, the owner and the small-
scale mining contractors are encouraged to enter into a voluntary and acceptable
contractual agreement for the small-scale utilization of the mineral values from the private
land: Provided, That the owner shall in all cases be entitled to the payment of actual
damages which he may suffer as a result of such declaration: Provided, further, That
royalties paid to the owner shall in no case exceed one percent (1%) of the gross value of
the minerals recovered as royalty.

SEC. 16. Ownership of Mill Tailings. - The small-scale mining contractor shall be the
owner of all mill tailings produced from the contract area. He may sell the tailings or have
them processed in any custom mill in the area: Provided, That, if the small-scale mining
contractor decide to sell its mill tailings, the claimowner shall have a preemptive right to
purchase said mill tailings at the prevailing market price.

SEC. 17. Sale of Gold. - All gold produced by small-scale miners in any mineral area shall
be sold to the Central Bank, or its duly authorized representatives, which shall buy it at
prices competitive with those prevailing in the world market regardless of volume or
weight.

The Central Bank shall establish as many buying stations in gold-rush areas to fully
service the requirements of the small-scale miners thereat.

SEC. 18. Custom Mills. - The establishment and operation of safe and efficient custom
mills to process minerals or ore-bearing materials shall be limited to mineral processing
zones duly designated by the local government unit concerned upon recommendation of
the Board.

In mining areas where the private sector is unable to establish custom mills, the
Government shall construct such custom mills upon the recommendation of the Board
based on the viability of the project.

The Board shall issue licenses for the operation of custom mills and other processing
plants subject to pollution control and safety standards.

The Department shall establish assay laboratories to crosscheck the integrity of custom
mills and to render metallurgical and laboratory services to miners.

Custom mills shall be constituted as withholding agents for the royalties, production share
or other taxes due the Government.

SEC. 19. Government Share and Allotment. - The revenue to be derived by the
Government from the operation of the mining program herein established shall be subject
to the sharing provided in the Local Government Code.

SEC. 20. People's Small-scale Mining Protection Fund. - There is hereby created a
People's Small-scale Mining Protection Fund which shall be fifteen percent (15%) of the
national government's share of the internal revenue tax or production share due the
Government which shall be used primarily for information dissemination and training of
small-scale miners on safety, health and environmental protection, and the establishment
of mine rescue and recovery teams including the procurement of rescue equipment
necessary in cases of emergencies such as landslides, tunnel collapse, or the like.

The fund shall also be made available to address the needs of the small-scale miners
brought about by accidents and/or fortuitous events.

SEC. 21. Rescission of Contracts and Administrative Fines. - The noncompliance with the
terms and conditions of the contract or violation of the rules and regulations issued by the
Secretary pursuant to this Act, as well as the abandonment of the mining site by the
contractor, shall constitute a ground for the cancellation of the contracts and the ejectment
from the people's small-scale mining area of the contractor. In addition, the Secretary may
impose fines against the violator in an amount of not less than Twenty thousand pesos
(P20,000.00) and not more than One hundred thousand pesos (P100,000.00). Nonpayment
of the fine imposed shall render the small-scale mining contractor ineligible for other
small-scale mining contracts.

SEC. 22. Reversion of People's Small-scale Mining Areas. - The Secretary, upon
recommendation of the director, shall withdraw the status of the people's small-scale
mining area when it can no longer feasibly operated on a small-scale mining basis or when
the safety, health and environmental conditions warrant that the same shall revert to the
State for proper disposition.

SEC. 23. Actual Occupation by Small-scale Miners. - Small-scale miners who have been
in actual operation of mineral lands on or before August 1, 1987 as determined by the
Board shall not be dispossessed, ejected or removed from said areas: Provided, That they
comply with the provisions of this Act.

SEC. 24. Provincial/City Mining Regulatory Board. - There is hereby created under the
direct supervision and control of the Secretary a provincial/city mining regulatory board,
herein called the Board, which shall be the implementing agency of the Department, and
shall exercise the following powers and functions, subject to review by the Secretary:

a. Declare and segregate existing gold-rush areas for small-scale mining;


b. Reserve future gold and other mining areas for small-scale mining;
c. Award contracts to small-scale miners;
d. Formulate and implement rules and regulations related to small-scale mining;
e. Settle disputes, conflicts or litigations over conflicting claims within a people's
small-scale mining area, an area that is declared a small-mining area; and
f. Perform such other functions as may be necessary to achieve the goals and
objectives of this Act.

SEC. 25. Composition of the Provincial/City Mining Regulatory Board. - The Board shall
be composed of the Department of Environment and Natural Resources' representative as
Chairman; and the representative of the governor or city mayor, as the case may be, one
(1) small scale mining representative, one (1) big-scale mining representative, and the
representative from a non-government organization who shall come from an
environmental group, as members.

The representatives from the private sector shall be nominated by their respective
organizations and appointed by the Department regional director. The Department shall
provide the staff support to the Board.

SEC. 26. Administrative Supervision over the People's Small-scale Mining Program. - The
Secretary through his representative shall exercise direct supervision and control over the
program and activities of the small-scale miners within the people's small-scale mining
area.

The Secretary shall within ninety (90) days from the effectivity of this Act promulgate
rules and regulations to effectively implement the provisions of the same. Priority shall be
given to such rules and regulations that will ensure the least disruption in the operations of
the small-scale miners.
SEC. 27. Penal Sanctions. - Violations of the provisions of this Act or of the rules and
regulations issued pursuant hereto shall be penalized with imprisonment of not less than
six (6) months nor more than six (6) years and shall include the confiscation and seizure of
equipment, tools and instruments.

SEC. 28. Repealing Clause. - All laws, decrees, letters of instruction, executive orders,
rules and regulations, and other issuances, or parts thereof, in conflict or inconsistent with
this Act are hereby repealed or modified accordingly.

SEC. 29. Separability Clause. - Any section or provision of this Act which may be
declared unconstitutional shall not affect the other sections or provisions hereof.

SEC. 30. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a national newspaper of general circulation.

Approved,

(Sgd.) JOVITO R. SALONGA (Sgd.) RAMON V. MITRA


President of the Senate Speaker of the House of Representatives

This Act which is a consolidation of House Bill No. 10516 and Senate Bill No. 1333 was
finally passed by the House of Representatives and the Senate on May 30, 1991.

(Sgd.) EDWIN P. ACOBA (Sgd.) CAMILO L. SABIO


Secretary General
Secretary of the Senate
House of Representatives

Approved: June 27, 1991

(Sgd.) CORAZON C. AQUINO


President of the Philippines

Source: Supreme Court E-Library


This page was dynamically generated
by the E-Library Content Management System (E-LibCMS)

You might also like