Philippine Mining Act of 1995": All Mineral Resources in Public and Private Lands Owned by The State
Philippine Mining Act of 1995": All Mineral Resources in Public and Private Lands Owned by The State
Philippine Mining Act of 1995": All Mineral Resources in Public and Private Lands Owned by The State
CHAPTER I
INTRODUCTORY PROVISIONS
Section 1. Title
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Section 3. Governing Principles
In implementing the policy stated in the preceding Section,
the Department shall adhere to the principle of sustainable
development which meets the needs of the present without
compromising the ability of the future generations to meet their own
needs, with the view of improving the total quality of life, both now
and in the future.
Consequently:
a. Mineral resource exploration, development,
utilization and conservation shall be governed
by the principle of sustainable mining, which
provides that the use of mineral wealth shall be
pro-environment and pro-people in sustaining
wealth creation and improved quality of life
under the following terms:
1. Mining is a temporary land use for
the creation of wealth which leads to
an optimum land use in the post-
mining stage as a result of
progressive and engineered mine
rehabilitation work done in cycle with
mining operations;
2. Mining activities must always be
guided by current best practices in
environmental management
committed to reducing the impacts of
mining and effectively and efficiently
protecting the environment;
3. The wealth accruing to the
Government and communities as a
result of mining should also lead to
other wealthgenerating opportunities
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for people and to other environment-
responsible endeavors;
4. Mining activities shall be undertaken
with due and equal emphasis on
economic and environmental
considerations, as well as for health, safety,
social and cultural concerns; and
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people empowerment and grassroots
development.
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exploration, development and
utilization of mineral resources; and
e. To enable the Government and the investor
to recover their share in the production,
utilization and processing of minerals to
attain sustainable development with due
regard to the environment, social equity and
fair return of investment.
Section 5. Definition of Terms
As used in and for purposes of these rules and regulations,
the following terms shall mean:
a. "Act" refers to R.A. No. 7942 otherwise known as
the
"Philippine Mining Act of 1995."
b. "Ancestral Lands" refer to all lands exclusively and
actually possessed, occupied or utilized by
Indigenous Cultural Communities by themselves or
through their ancestors in accordance with their
customs and traditions since time immemorial, and
as may be defined and delineated by law.
c. "Annual Environmental Protection and Enhancement
Program (AEPEP)" refers to a yearly environmental
management work plan based on the approved
environmental protection and enhancement strategy.
d. "Archipelagic Sea" refers to all waters within the
baseline of an archipelago except internal waters
such as roadsteads, lakes and rivers.
e. "Block or Meridional Block" means an area,
bounded by one-half (1/2) minute of latitude and
one-half (1/2) minute of longitude, containing
approximately eightyone (81) hectares.
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f. "Built-up Areas" refer to portions of land within the
municipality or barangay actually
occupied as residential, commercial or
industrial areas as embodied in a duly approved land
use plan by the appropriate Sanggunian.
g. "Bureau" means the Central Office of the Mines and
Geosciences Bureau under the Department.
h. "City" refers to an independent component city as
classified under the Local Government Code.
i. "Commercial Production" refers to the production of
sufficient quantity of minerals to sustain economic
viability of mining operations reckoned from the
date of commercial operation as declared by the
Contractor or as stated in the feasibility study, which
ever comes first.
j. "Community Relations Record" refers to the
applicant's proof of its community relations which
may consist, but is not limited to, sociocultural
sensitivity, the character of its past relations with
local communities, cultural appropriateness and
social acceptability of its resource management
strategies: Provided, That this shall not be required
in cases where the applicant has no previous
community-relations experience in resource use
ventures, locally or internationally.
k. "Conservation" means the wise use and optimum
utilization of mineral resources.
l. "Contiguous Zone" refers to water, sea bottom and
substratum measured twenty-four (24) nautical miles
seaward from the baseline of the
Philippine Archipelago.
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m. "Contract Area" means the land or body of water
delineated under a Mineral Agreement or FTAA
subject to the relinquishment obligations of the
Contractor and properly defined by longitude and
latitude.
n. "Contractor" means a Qualified Person acting alone
or in consortium who is a party to a Mineral
Agreement or
FTAA.
o. "Critical Watershed" refers to a drainage area of a
river system, lake or water reservoir supporting
existing and proposed hydroelectric power, domestic
water supply, geothermal power and irrigation
works, which needs immediate rehabilitation and
protection to minimize soil erosion, improve water
yield and prevent possible flooding.
p. "DENR Project Area" refers to specific portions of
land covered by an existing project of the
Department such as, but not limited to, Industrial
Forest Management Agreement (IFMA),
Community Forest Management
Agreement (CFMA), Community Forestry Program
(CFP), Forest Land Management Agreement
(FLMA) and Integrated Social Forestry Program
(ISFP).
q. "Department" means the Department of
Environment and Natural Resources of the Republic
of the
Philippines.
r. "Development" means the work undertaken to
explore
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and prepare an orebody or a mineral deposit for
mining, including the construction of necessary
infrastructure and related facilities.
s. "Development Stage" as used exclusively for FTAAs
means the period to prepare an explored orebody or
mineral deposit for mining including the
construction of necessary infrastructure and related
facilities.
t. "Director" means the Director of the Bureau.
u. "Ecological Profile or Eco-Profile" refers to
geographicbased instruments for planners and
decision-makers, which presents a description of the
environmental setting including the state of
environmental quality and evaluation of the
assimilative capacity of an area.
v. "Effluent" means any wastewater, partially or
completely treated, or any waste liquid flowing out
of mining operations, wastewater treatment plants or
tailings disposal system.
w. "Environment" refers to the physical factors of the
total surroundings of human beings, including the
land, water, atmosphere, climate, sound, odors,
tastes, the biological factors of animals and plants
and the social factors of aesthetics. In a broad sense,
it shall include the total environment of human
beings such as economic, social, cultural, political
and historical factors.
x. "Environmental Audit" refers to a systematic,
documented verification process of objectively
obtaining and evaluating audit evidence (verifiable
information, records or statements of facts) to
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determine whether or not specified environmental
activities, events, conditions, management systems
or information about these matters conform with
audit criteria (policies, practices, procedures or
requirements against which the auditor compares
collected audit evidence about the subject matter)
and communicating the results of this process to the
concerned stakeholders.
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can be direct or indirect, cumulative and positive or
negative.
aa. "Environmental Impact Assessment (EIA)" refers to
the process of predicting the likely
environmental consequences of implementing
projects or undertakings and designing appropriate
preventive, mitigating and enhancement measures.
ab. "Environmental Impact Statement (EIS)" refers to the
document(s) of studies on the environmental impacts
of a project including the discussions on direct and
indirect consequences upon human welfare and
ecological and environmental integrity. The EIS
may vary from project to project but shall contain in
every case all relevant information and details about
the proposed project or undertaking, including the
environmental impacts of the project and the
appropriate mitigating and enhancement measures.
ac. "Environmental Management Record" refers to an
applicant's high regard for the environment in its past
resource use ventures and proof of its present
technical and financial capability to undertake
resource protection, restoration and/or rehabilitation
of degraded areas and similar activities: Provided,
That this shall not be required in cases where the
applicant has no previous experience in resource use
ventures, locally or internationally.
ad. "Environmental Protection and Enhancement Program
(EPEP)" refers to the comprehensive and strategic
environmental management plan for the life of the
mining project on which AEPEPs are based and
implemented to achieve the environmental
management objectives, criteria and commitments
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including protection and rehabilitation of the
disturbed environment.
ae. "Environmental Work Program (EWP)" refers to the
comprehensive and strategic environmental
management plan to achieve the environmental
management objectives, criteria and
commitments including protection and
rehabilitation of the disturbed
environment during the exploration period.
af. "Exclusive Economic Zone" refers to the water, sea
bottom and subsurface measured from the baseline
of the Philippine Archipelago up to two hundred
(200) nautical miles offshore.
ag. "Exploration" means searching or 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.
ah. "Financial or Technical Assistance Agreement
(FTAA)" means a contract involving financial or
technical assistance for large-scale exploration,
development and utilization of mineral resources.
ai. "Force Majeure" means acts or circumstances beyond
the reasonable control of
Contractor/Permit
Holder/Permittee/Lessee including, but not limited
to, war, rebellion, insurrection, riots, civil
disturbance, blockade, sabotage, embargo, strike,
lockout, any dispute with surface owners and other
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labor disputes, epidemic, earthquake, storm, flood or
other adverse weather conditions, explosion, fire,
adverse action by Government or by any
instrumentality or subdivision thereof, act of God or
any public enemy and any cause as herein described
over which the affected party has no reasonable
control.
aj. "Foreign-owned Corporation" means any corporation,
partnership, association or cooperative duly registered in
accordance with law in which less than fifty percent (50%)
of the capital is owned by Filipino citizens. ak. "Forest
Reservations" refer to forest lands which have been reserved
by the President for any specific purpose or purposes
pursuant to P.D. No. 705, or by an appropriate law.
al. "Forest Reserves or Permanent Forests" refer to those
lands of the public domain which have been the
subject of the present system of classification and
determined to be needed for forest purposes pursuant
to P.D. No.
705.
am. "Government" means the Government of the Republic
of the Philippines.
an. "Government Reservations" refer to all proclaimed
reserved lands for specific purposes other than
Mineral Reservations.
ao. "Gross Output" means the actual market value of
minerals or mineral products from each mine or
mineral land operated as a separate entity, without
any deduction for mining, processing, refining,
transporting, handling, marketing or any other
expenses: Provided, That if the minerals or mineral
products are sold or consigned abroad by the
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Contractor under C.I.F. terms, the actual cost of
ocean freight and insurance shall be deducted:
Provided, further, That in the case of mineral
concentrates which are not traded in commodity
exchanges in the Philippines or abroad, such as
copper concentrates, the actual market value shall be
the world price quotations of the refined mineral
products content thereof prevailing in the said
commodity exchanges, after deducting the smelting,
refining, treatment, insurance, transportation and
other charges incurred in the process of converting
mineral concentrates into refined metal traded in
those commodity exchanges.
ap. "Ground Expenditures" mean the field and laboratory
expenditures incurred for searching and delineating
new or extension of orebodies in an approved FTAA
area, including expenditures for social preparation,
prefeasibility studies and reasonable administrative
expenses incurred for the FTAA project. Such
expenses include those for geological, geophysical,
geochemical and air-borne geophysical surveys,
borehole drillings, tunneling, test pitting, trenching
and shaft sinking. Contributions to the community
and environment-related expenses during the
exploration period shall form part of the ground
expenditures.
aq. "Indigenous Cultural Community" means a group or
tribe of indigenous Filipinos who have continuously
lived as communities on communally-bounded and
defined land since time immemorial and have
succeeded in preserving, maintaining and sharing
common bonds of languages, customs, traditions and
186
other distinctive cultural traits, and as may be
defined and delineated by law.
ar. "Initial Environmental Examination (IEE)" refers to the
document required of proponents describing the
environmental impact of, and mitigation and
enhancement measures for projects or undertakings
located in an Environmentally Critical Area (ECA)
as listed under Presidential Proclamation No. 2146,
Series of 1981, as well as other areas which the
President may proclaim as environmentally critical
in accordance with Section 4 of P.D. No. 1586.
as. "Lessee" means a person or entity with a valid and
existing mining lease contract.
at. "Metallic Mineral" means a mineral having a brilliant
appearance, quite opaque to light, usually giving a black or
very dark streak, and from which a metallic
element/component can be extracted/utilized for profit. au.
"Mill Tailings" means materials whether solid, liquid or
both segregated from the ores during
concentration/milling operations which have no
present economic value to the generator of the same.
av. "Minerals" refer to all naturally occurring inorganic
substances in solid, liquid, gas or any intermediate
state excluding energy materials such as coal,
petroleum, natural gas, radioactive materials and
geothermal energy.
aw. "Mineral Agreement" means a contract between the
Government and a Contractor, involving Mineral
Production Sharing Agreement, Co-Production
Agreement or Joint Venture Agreement.
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ax. "Mineral Land" means any area where mineral
resources, as herein defined, are found.
ay. "Mineral Processing" means the milling, beneficiation,
leaching, smelting, cyanidation, calcination or upgrading of
ores, minerals, rocks, mill tailings, mine waste and/or other
metallurgical by-products or by similar means to convert the
same into marketable products. az. "Mineral Processing
Permit" refers to the permit granted to a Qualified Person
for mineral processing.
ba. "Mineral Products" mean materials derived from ores,
minerals and/or rocks and prepared into a marketable
state by mineral processing.
bb. "Mineral Reservations" refer to areas established and
proclaimed as such by the President upon the
recommendation of the Director through the
Secretary, including all submerged lands within the
contiguous zone and Exclusive Economic Zone.
bc. "Mineral Resources" mean any concentration of ores,
minerals and/or rocks with proven or potential
economic value.
bd. "Mine Rehabilitation" refers to the process used to repair
the impacts of mining on the environment. The
long-term objectives of rehabilitation can vary from
simply converting an area to a safe and stable
condition to restoring the pre-mining conditions as
closely as possible with all the area's environmental
values intact and establishing a land use capability
that is functional and proximate to the land use prior
to the disturbance of the mine area.
be. "Mine Waste" means soil and/or rock materials from
surface or underground mining operations with no present
188
economic value to the generator of the same. bf. "Mining
Area" means a portion of the contract area identified by the
Contractor as defined and delineated in a Survey Plan duly
approved by the Director/concerned Regional Director for
purposes of development and/or utilization, and sites for
support facilities.
bg. "Mining Operations" mean mining activities
involving exploration, feasibility study,
development and utilization.
bh. "Mining Permits" include Exploration, Quarry, Sand and
Gravel (Commercial, Industrial and Exclusive),
Gratuitous (Government or Private), Guano,
Gemstone Gathering and Small-Scale Mining
Permits.
bi. "Mining Right" means a right to explore, develop or
utilize mineral resources.
bj. "Mining Application" means any application for mining
permit, Mineral Agreement or FTAA.
bk. "Net Income" means gross income from operations less
allowable deductions which are necessary or related
to mining operations.
bl. "Nonmetallic Mineral" refers to a mineral usually having
a dull luster, generally light-colored, transmits light,
usually giving either colorless or light colored streak
from which a nonmetallic element/component can be
extracted/utilized for a profit.
bm. "Nongovernmental Organization (NGO)"
includes nonstock, nonprofit organizations with
qualifications, expertise and objectivity in activities
dealing with resource and environmental
conservation, management and protection.
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bn. "Offshore" means the water, sea bottom and subsurface
from the shore or coastline reckoned from the mean
low tide level up to the two hundred (200) nautical
miles of the Exclusive Economic Zone.
bo. "Onshore" means the landward side from the mean low
tide level, including submerged lands in lakes, rivers
and creeks.
bp. "Ore" means naturally occurring substance or material
from which a mineral or an element can be mined
and/or processed for profit.
bq. "Ore Transport Permit" refers to the permit that may
be granted to a Contractor, accredited dealer, retailer,
processor and other Permit Holders to transport
minerals/mineral products.
br. "People's Organization (PO)" refers to a group of people
which may be an association, cooperative, federation
or other legal entity established by the community to
undertake collective action to address community
concerns and need and mutually share the benefits
from the endeavor.
bs. "Permittee" means the holder of an Exploration Permit.
The Permittee referred to in previous administrative
orders shall mean holders of permits subject of such
orders.
bt. "Permit Area" refers to area subject of mining permits.
bu. "Permit Holder" means a holder of any mining permit
issued under these implementing rules and
regulations other than Exploration Permit.
bv. "Pollution" refers to any alteration of the physical,
chemical and/or biological properties of any water,
air and/or land resources of the Philippines; or any
190
discharge thereto of any liquid, gaseous or solid
wastes; or any production of unnecessary noise or
any emission of objectionable odor, as will or is
likely to create or to render such water, air and land
resources harmful, detrimental or injurious to public
health, safety or welfare, or which will adversely
affect their utilization for domestic, commercial,
industrial, agricultural, recreational or other
legitimate purposes.
bw. "Pollution Control Devices and Facilities" refer to
infrastructure, machinery, equipment and/or
improvements used for impounding, treating or
neutralizing, precipitating, filtering, conveying and
cleansing mine industrial waste and tailings, as well
as eliminating or reducing hazardous effects of solid
particles, chemicals, liquids or other harmful
byproducts and gases emitted from any facility
utilized in mining operations for their disposal.
bx. "Pre-Operating Expenses" refer to all exploration
expenses, special allowance, administrative costs
related to the project, feasibility and environmental
studies and all costs of mine construction and
development incurred prior to commercial
production.
by. "President" refers to the President of the Republic of
the Philippines.
bz. "Private Land" refers to land belonging to any private
person or entity which includes alienable and
disposable land being claimed by a holder, claimant
or occupant who has already acquired a vested right
thereto under the law, including those whose
191
corresponding certificate or evidence of title or
patent has not been actually issued.
ca. "Public Land" refers to land of the public domain which
has been classified as agricultural land, mineral land,
forest or timber land subject to management and
disposition or concession under existing laws.
cb. "Qualified Person" means any Filipino citizen of
legal age and with capacity to contract; or a
corporation, partnership, association or cooperative
organized or authorized for the purpose of engaging
in mining, with technical and financial capability to
undertake mineral resources development
and duly registered in
accordance with law, at least sixty percent (60%) of
the capital of which is owned by Filipino citizens:
Provided,
That a legally organized foreign-owned corporation
shall be deemed a Qualified Person for purposes of
granting an Exploration Permit, FTAA or Mineral
Processing Permit only.
cc. "Quarrying" means the process of extracting, removing
and disposing quarry resources found on or
underneath the surface of public or private land.
cd. "Quarry Permit" refers to the permit granted to a
Qualified Person for the extraction and utilization of
quarry resources on public or private land.
ce. "Quarry Resources" refer to any common rock or other
mineral substances as the Director may declare to be
quarry resources such as, but not limited to, andesite,
basalt, conglomerate, coral sand, diatomaceous
earth, diorite, decorative stones, gabbro, granite,
192
limestone, marble, marl, red burning clays for
potteries and bricks, rhyolite, rock phosphate,
sandstone, serpentine, shale, tuff, volcanic cinders
and volcanic glass: Provided, That such quarry
resources do not contain metals or metallic
constituents and/or other valuable minerals in
economically workable quantities: Provided, further,
That nonmetallic minerals such as kaolin, feldspar,
bull quartz, quartz or silica, sand and pebbles,
bentonite, talc, asbestos, barite, gypsum, bauxite,
magnesite, dolomite, mica, precious and
semiprecious stones and other nonmetallic minerals
that may later be discovered and which the Director
declares to be of economically workable quantities,
shall not be classified under the category of "Quarry
Resources".
cf. "Regional Director" means the Regional Director of any
Regional Office.
cg. "Regional Office" means any of the Regional Offices of
the Mines and Geosciences Bureau.
ch. "Secretary" means the Secretary of the Department.
ci. "Service Contractor" means a person or entity who
enters into an agreement to undertake a specific work
related to mining or quarrying operations of a
Contractor/Permit Holder/Permittee/Lessee.
cj. "Special Allowance" refers to payment to the
claimowner or surface right owners particularly
during the transition period from P.D. No. 463 and
Executive Order No. 279, Series of 1987.
ck. "Stakeholders" refer to person(s)/entity(ies) who may be
significantly affected by the project or undertaking,
193
such as but not limited to, Contractor/Permit
Holder/Permittee/Lessee, members of the local
community industry, Local Government Units
(LGUs), Nongovernmental Organizations (NGOs)
and People's Organizations (POs).
cl. "State" means the Republic of the Philippines.
cm. "Tailings Disposal System" refers to a combination of
methods, equipment and manpower used in
handling, transporting, disposing and/or impounding
mill tailings.
cn. "Waste Dump" refers to a designated place where the
mine waste are accumulated or collected.
co. "Utilization" means the extraction, mineral processing
and/or disposition of minerals.
CHAPTER II
GOVERNMENT MANAGEMENT
194
President upon endorsement of the Director;
c. To enforce applicable related laws such as
Administrative Code, Civil Code, etc.; and
d. To exercise such other authority vested by the
Act and as provided for in these implementing
rules and regulations.
195
to mining applications as provided for in Section 15
hereof, the Bureau can undertake studies for
purposes of research and development;
c. To confiscate, after due process, surety, performance
and guaranty bonds after notice of violation;
d. To recommend to the Secretary the granting of
Mineral Agreements or to endorse to the
Secretary for action by the President the
grant of FTAAs, in favor of Qualified
Persons and to monitor compliance by the
Contractor with the terms and conditions of
the Mineral Agreements and FTAAs. For
this purpose, an efficient and effective
monitoring system shall be established to
ascertain periodically whether or not these
objectives are realized;
e. To cancel or to recommend cancellation, after due
process, mining rights, mining applications and
mining claims for noncompliance with
pertinent laws, rules and regulations;
f. To deputize, when necessary, any member or
unit of the Philippine National Police (PNP)
and barangay, duly registered and
Departmentaccredited Nongovernmental
Organization (NGO) or any Qualified Person
to police all mining activities;
g. To assist the Environmental Management Bureau
(EMB) under the Department and/or the
Department Regional Office in
the processing or conduct of Environmental
Impact
196
Assessment in mining projects; and
h. To exercise such other authority vested by the Act
and as provided for in these implementing rules and
regulations.
The Director may delegate such authority and other powers
and functions to the Regional Director.
197
acceptability of a mining project as a
requirement for securing an 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 Community(ies) and the Contractor(s)
as may be requested;
i. To coordinate with the Department and Bureau
in the implementation of the Act and these
implementing rules and regulations in their
respective jurisdictions. In areas covered by the
Southern Philippines Council for Peace and
Development (SPCPD), Autonomous Region of
Muslim Mindanao (ARMM) and future similar
units, the appropriate offices of said units shall
coordinate with the Department and Bureau in
the implementation of the Act and these
implementing rules and regulations; and
198
j. To perform such other powers and functions as
may be provided for by applicable laws, rules
and regulations.
CHAPTER III
MINERAL RESERVATIONS
AND GOVERNMENT RESERVATIONS
199
aside and establish an area as a Mineral Reservation 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 Secretary shall cause the periodic review of existing
Mineral Reservations by detailed geological, mineral and ecological
evaluation for the purpose of determining whether or not their
continued existence is consistent with the national interest and upon
his/her recommendation, the President may, by proclamation, alter
or modify the boundaries thereof or revert the same to the public
domain without prejudice to prior existing rights.
200
Section 11. Mining Operations within Mineral and
Government Reservations
a. Exploration Permit;
b. Mineral Agreement;
c. Financial or Technical Assistance Agreement
(FTAA);
d. Small-Scale Mining Permit; and
e. Quarry Permit.
201
may be applicable. Small-scale mining cooperatives covered by
R.A. No. 7076 shall be given preferential right to apply for a small-
scale mining contract for a maximum aggregate area of twenty-five
percent (25%) of a Mineral Reservation subject to valid and existing
mining rights.
202
b. Lands covered by expired/abandoned/
canceled mining/quarrying rights;
c. Mineral Reservations; and
d. Timber or forest lands as defined in existing laws.
203
No. 7586 and such areas expressly
prohibited thereunder, as well as
under Department Administrative
Order No. 25, Series of 1992, and
other laws;
3. Areas which the Secretary may
exclude based, inter alia, on proper
assessment of their environmental
impacts and implications on
sustainable land uses, such as built-up
areas and critical watersheds with
appropriate
barangay/municipal/city/provincial
Sanggunian ordinance specifying
therein the location and specific
boundary of the concerned area; and
4. Areas expressly prohibited by law.
204
2. Areas near or under public or private
buildings, cemeteries, archaeological and
historic sites, bridges, highways,
waterways, railroads, reservoirs, dams or
other infrastructure projects, public or
private works, including plantations or
valuable crops, upon written consent of
the concerned Government agency or
private entity subject to technical
evaluation and validation by the Bureau;
3. Areas covered by FTAA applications
which shall be opened for quarry
resources mining applications pursuant to
Section 53 hereof upon the written consent
of the FTAA applicants, except for sand
and gravel applications which shall
require no such consent;
4. Areas covered by small-scale mining
under R.A. No. 7076/P.D. No. 1899 upon
prior consent of the small-scale miners, in
which case a royalty payment, upon the
utilization of minerals, shall be agreed
upon by the concerned parties and shall
form a Trust Fund for the socioeconomic
development of the concerned
community; and
5. DENR Project Areas upon prior consent
from the concerned agency.
The Bureau shall cause the periodic review of areas closed
to mining applications for the purpose of determining whether or
not their continued closure is consistent with the national interest
205
and render its recommendations, if any, to the Secretary for
appropriate action.
206
may be credited to or charged against said royalty. Representatives
from the Bureau/concerned Regional Office(s), concerned
Department offices, concerned LGUs, relevant NGOs/POs and the
Office of the Northern/Southern Cultural Communities may be
requested to act as mediators between the concerned Indigenous
Cultural Community(ies) and the Contractor/Permit
Holder/Permittee in the negotiation for the royalty payment.
CHAPTER V
EXPLORATION PERMIT
207
Section 18. Term/Maximum Areas Allowed under an
Exploration Permit
208
two hundred forty (3,240)
hectares and
2. For corporations, partnerships,
associations or cooperatives - four
hundred (400) blocks or
approximately thirty-two thousand
four hundred (32,400) hectares.
c. Offshore, in the entire Philippines, beyond five
hundred meters (500 m) from the mean low tide
level -
209
and submission of five (5) sets of the following mandatory
requirements:
210
e. Proof of technical competence including,
among others, curricula vitae and track
records in exploration and environmental
management of the technical personnel who
shall undertake the activities in accordance
with the submitted Exploration and
Environmental Work
Programs;
f. Proof of financial capability to undertake the
Exploration and Environmental Work
Programs such as the following:
1. For individuals - Statement of assets
and liabilities duly sworn in
accordance with existing laws, credit
lines and income tax return for the
preceding year and
2. For corporations, partnerships,
associations or cooperatives - Latest
Audited Financial Statement and
where applicable, Annual Report for
the preceding year, credit lines, bank
guarantees and/or similar negotiable
instruments.
g. Photocopy of Articles of
Incorporation/Partnership/Association,
ByLaws and Certificate of Registration, duly
certified by the Securities and Exchange
Commission (SEC) or concerned authorized
Government agency(ies), for corporations,
partnerships, associations or cooperatives;
211
h. Declaration of the total area covered by
approved/pending Exploration
Permit(s)/
application(s); and
i. Other supporting papers as the
Bureau/concerned Regional Office may require
or the applicant may submit.
For offshore Exploration Permit applications, the following
additional requirements shall be submitted:
a. The name, port of registry, tonnage,
type and class of survey
vessel(s)/platform(s): Provided,
That if a foreign vessel is to be
used, the expected date of first
entry or appearance and final
departure of the survey vessel shall
be provided and all the necessary
clearances obtained;
b. A certification from the Coast and
Geodetic Survey Department of the
NAMRIA that the proposed
Exploration Work Program was
duly registered to provide update in
the publication
of "Notice to Mariners" together with a list of
safety measures to be regularly undertaken to
ensure the safety of navigation at sea and
prevent accident;
c. An agreement to:
212
1. Properly identify all installations,
vessels and other crafts involved in
exploration recognizable to all
vessels within reasonable distance;
2. Notify the Bureau thirty (30) calendar
days prior to the intention to remove
all scientific installations or
equipment and apparatus; and
3. Allow the Bureau's
authorized
personnel, Philippine Coast Guard
and other authorized persons during
reasonable hours to board the
vessel(s) while within the Exclusive
Economic Zone.
213
The Regional Office shall regularly provide the Bureau with
a list, consolidated map and status report of the Exploration Permit
applications filed in its jurisdiction.
214
In reservations/reserves/project areas under the jurisdiction
of the Department/Bureau/Regional Office(s) where consent/
clearance is denied, the applicant may appeal the same to the Office
of the Secretary.
If the proposed permit area is open for mining applications,
the Bureau/concerned Regional Office(s) shall give written notice
to the applicant to pay the corresponding Bureau/Regional Office(s)
clearance fee (Annex 5-A): Provided, That if a portion of the area
applied for is not open for mining applications, the concerned
Regional Office shall, within fifteen (15) working days from receipt
of said written notice, exclude the same from the coverage of
Exploration Permit application:
Provided, further, That in cases of overlapping of
claims/conflicts/complaints from landowners, NGOs, LGUs and
other concerned stakeholders, the Regional Director shall exert all
efforts to resolve the same.
215
The Bureau/concerned Regional Office(s) shall cause the
publication of the Notice once a week for two (2) consecutive weeks
in two (2) newspapers: one of general circulation published in
Metro Manila and another published in the municipality or province
where the proposed permit area is located, if there be such
newspapers; otherwise, in the newspaper published in the nearest
municipality or province.
216
publication/posting/radio announcement, with the concerned
Regional Office or through any concerned PENRO or CENRO for
filing in the concerned Regional
Office for purposes of its resolution by the Panel of Arbitrators
pursuant to the provisions of the Act and these implementing rules
and regulations. Upon final resolution of any adverse claim, protest
or opposition, the Panel of Arbitrators shall issue a Certification to
that effect within five (5) working days from the date of finality of
resolution thereof. Where no adverse claim, protest or opposition is
filed after the lapse of the period for filing the adverse claim, protest
or opposition, the Panel of Arbitrators shall likewise issue a
Certification to that effect within five (5) working days therefrom.
217
c. The term of the Permit shall be for a period of
two (2) years from date of issuance thereof,
renewable for like periods but not to exceed a
total term of six (6) years: Provided, That no
renewal of Permit shall be allowed unless the
Permittee has complied with the terms and
conditions of the Permit and shall not have been
found guilty of violation of any provision of the
Act and these implementing rules and
regulations;
d. The Permittee shall submit to the
Bureau/concerned Regional Office within
thirty (30) calendar days after the end of each
semester a report under oath of the
Exploration
Work Program implementation and
expenditures showing
discrepancies/deviations including the results
of the survey, laboratory reports, geological
reports/maps subject to semiannual
inspection and verification by the
Bureau/concerned Regional Office at the
expense of the Permittee: Provided, That any
expenditure in excess of the yearly budget of
the approved Exploration Work Program
may be carried forward and credited to the
succeeding years covering the duration of the
Permit;
e. The Permittee shall submit to the
Bureau/concerned Regional Office within
thirty (30) calendar days from the end of six
218
(6) months after the approval of the
Environmental
Work Program (EWP) and every six (6)
months thereafter a status report on its
compliance with the said EWP;
f. The Permittee shall annually relinquish at least
20% of the permit area during the first two (2)
years of exploration and at least 10% of the
remaining permit area annually during the
extended exploration period. However, if the
permit area is less than five thousand (5,000)
hectares, the Permittee need not relinquish any
part thereof. A separate report of relinquishment
shall be submitted to the Bureau/concerned
Regional Office with a detailed geologic report
of the relinquished area accompanied by maps at
a scale of 1:50,000 and results of analyses and
corresponding expenditures, among others. The
minimum exploration expenditures for the
remaining area after relinquishment shall be
based on the approved Exploration Work
Program;
g. The Secretary or his/her duly authorized
representative shall annually review the
performance of the Permittee;
h. The Permittee shall submit to the
Bureau/concerned Regional Office a final report
upon the expiration or relinquishment of the
Permit or its conversion into Mineral
Agreement or FTAA in a form and substance
comparable to published reports of respected
international organizations and shall incorporate
219
all the findings in the permit area, including
locations of samples, assays, chemical analyses
and assessment of the mineral potential. Such
report shall include complete detailed
expenditures incurred during the exploration;
220
m. The Permittee shall comply with pertinent
provisions of the Act and these implementing
rules and regulations; and
n. Other terms and conditions which
the
Bureau/concerned Regional Office may deem
appropriate.
221
Section 25. Transfer or Assignment of Exploration Permit
a. Justification of renewal;
b. Comprehensive and validated technical report
on the outcome of the two-year exploration
works, including their environmental effects
duly prepared, signed and sealed by a licensed
Mining Engineer or Geologist;
c. Audited report of expenditures incurred during
the exploration period;
222
d. Two-year Exploration Work Program (MGB
Form No. 5-4) duly prepared, signed and sealed
by a licensed Mining Engineer or
Geologist;
e. Environmental Work Program (MGB Form No.
16-1 or MGB Form No. 16-1A) as
provided for in Section 168 hereof; and
f. Other supporting papers as the
Department/Bureau may require or the applicant
may submit.
The Secretary may grant the renewal after field verification
by the Bureau/concerned Regional Office of the foregoing
requirements, which field verification shall be undertaken at the
expense of the Permittee.
223
obligations it may have, particularly with regard to ecological
management, at the time of relinquishment or cancellation.
224
e. Environmental Work Program (MGB Form
No. 16-1 or MGB Form No. 16-1A) during
the exploration period as provided for in Section
168 hereof or Environmental
Compliance Certificate prior to development,
construction and/or utilization and
Environmental Protection and Enhancement
Program (MGB Form No. 16-2) as provided
for in Section 169 hereof;
f. Proof of technical competence including,
among others, curricula vitae and track
records in mining operations and
environmental management of the technical
personnel who shall undertake the activities
in accordance with the submitted
Exploration/Development/Utilization Work Program
and Environmental Work/
Environmental Protection and Enhancement
Program, as deemed applicable;
g. Proof of financial capability to undertake the
activities pursuant to
Exploration/Development/Utilization Work
Program and Environmental
Work/Environmental Protection and
Enhancement Program, as deemed
applicable, such as statement of assets and
liabilities duly sworn in accordance with
existing laws, credit lines and income tax
return for the preceding year;
225
h. Proof of award of the area by the President
for areas within Government Reservations;
and
i. Other supporting papers as the
Department/Bureau may require or the applicant
may submit.
The processing of the application for a Mineral Agreement
or FTAA shall be in accordance with Chapters VI and VII,
respectively, of these implementing rules and regulations.
CHAPTER VI
MINERAL AGREEMENTS
226
c. Joint Venture Agreement (JVA) - an
agreement where a joint venture company is
organized by the Government and the
Contractor with both parties having equity
shares. Aside from earnings in equity, the
Government shall be entitled to a share in the
gross output.
Section 32. Eligibility of Applicant for Mineral Agreement
227
a. Onshore, in any one province -
228
associations or cooperatives - five
hundred (500) blocks or
approximately forty thousand five
hundred (40,500) hectares and
3. For the Exclusive Economic Zone - a
larger area to be determined by the
Secretary upon the recommendation
of the Director.
229
Section 35. Mandatory Requirements for Mineral Agreement
Application
a. For individuals -
230
Management Bureau and/or the
Department Regional Office. The
detailed guidelines for the
determination and applicability of
such records shall be specified by the
Secretary upon the recommendation
of the Director;
231
6. Proof of financial capability to undertake
the activities pursuant to
Exploration/Development/Utilization
Work Program and Environmental
Work/Environmental Protection and
Enhancement Program, as deemed
applicable, such as statement of
assets and liabilities duly sworn in
accordance with existing laws, credit
lines and income tax return for the
preceding year;
7. Declaration of the total area covered by
approved/pending Mineral
Agreement(s)/ application(s); and
8. Other supporting papers as
the Department/Bureau/
concerned
Regional Office may require or the applicant
may submit.
232
3. Location map/sketch plan of the
proposed contract area showing its
geographic
coordinates/meridional block(s)
and boundaries in relation to major
environmental features and other
projects using NAMRIA topographic
map in a scale of 1:50,000 duly
prepared, signed and sealed by a
deputized Geodetic Engineer;
4. Two-year Exploration Work Program
(MGB Form No. 5-4) or three-year
Development/Utilization Work
Program (MGB Form No. 6-2), as
deemed applicable, duly prepared,
signed and sealed by a licensed
Mining Engineer, Geologist or
Metallurgical Engineer;
5. When applicable, a
satisfactory Environmental
Management Record and
Community Relations Record as
determined by the Bureau
in consultation with the
Environmental
Management Bureau and/or the
Department Regional Office. The
detailed guidelines for the
determination and applicability of
such records shall be specified by the
Secretary upon the recommendation
of the Director;
233
6. Environmental Work Program (MGB
Form No. 16-1 or MGB Form No.
16-1A) during the exploration period
as provided for in Section 168 hereof
or Environmental Compliance
Certificate prior to development,
construction and/or utilization and
Environmental Protection and
Enhancement Program (MGB Form
No. 16-2) as provided for in Section
169 hereof;
7. Proof of technical
competence including, among
others, curricula vitae and track
records in mining operations and
environmental management of the
technical personnel who shall
undertake the activities in accordance
with the submitted
Exploration/Development/Utilization
Work Program and Environmental
Work/Environmental Protection and
Enhancement Program, as deemed
applicable;
8. Proof of financial capability to
undertake the activities pursuant to
Exploration/Development/Utilization
Work Program and Environmental
Work/Environmental Protection and
Enhancement Program, as deemed
applicable, such as latest Audited
Financial Statement and where
234
applicable, Annual Report for the
preceding year, credit lines, bank
guarantees and/or similar negotiable
instruments;
9. Declaration of the total area covered
by approved/pending Mineral
Agreement(s)/application(s); and
10. Other supporting papers as
the Department/ Bureau/
concerned Regional Office may
require or the applicant may submit.
If the applicant conducts or has
conducted mining operations in a foreign
country(ies), the Department shall verify the
relevant requirements through the Philippine
Embassy(ies) or Consulate(s) based in such
country(ies).
c. For holders of valid and existing mining lease
contracts, operating agreements, Quarry
Permits/licenses or unperfected mining/ uarry
claims, the following shall be submitted in addition
to the aforesaid requirements, whenever
applicable, namely:
1. Certification from the concerned
Regional Office that the
mining/quarry claims are valid and
subsisting;
2. Appropriate environmental report on
the rehabilitation of mined-out and/or
mine waste/tailings-covered areas
and anti-pollution measures
235
undertaken during the mining
operations;
3. Environmental Compliance Certificate for
any new phase outside of the originally
approved operation under the mining project;
4. Mining Project Feasibility Study (MGB
Form No. 5-3);
5. Three-year
Development/Construction/Utilizatio
n Work Program (MGB Form No. 6-
2), as deemed applicable, duly
prepared, signed and sealed by a
licensed Mining Engineer, Geologist
or Metallurgical Engineer;
6. Approved Survey Plan of the mining
area; and
7. Other supporting papers as the
Department/ Bureau/ concerned Regional
Office may require or the applicant may
submit.
236
Regional Office: Provided, finally, That any application with
incomplete mandatory requirements shall not be accepted.
The Regional Office shall regularly provide the Bureau with
a list, consolidated map and status report of Mineral Agreement
applications filed in its jurisdiction.
237
In reservations/reserves/project areas under the jurisdiction
of the Department/Bureau/Regional Office(s) where
consent/clearance is denied, the applicant may appeal the same to
the Office of the Secretary.
238
to major environmental features and projects and to the nearest
municipalities.
The Bureau/concerned Regional Office(s) shall cause the
publication of the Notice once a week for two (2) consecutive
weeks in two (2) newspapers: one of general circulation published
in Metro Manila and another published in the municipality or
province where the proposed contract area is located, if there be
such newspapers; otherwise, in the newspaper published in the
nearest municipality or province.
The Bureau/concerned Regional Office shall also cause the
posting for two (2) consecutive weeks of the Notice on the bulletin
boards of the Bureau, the concerned Regional Office(s), PENRO(s),
CENRO(s) and in the concerned province(s) and municipality(ies),
copy furnished the barangay(s) where the proposed contract area is
located. Where necessary, the Notice shall be in a language
generally understood in the concerned locality where it is posted.
239
Regional Office or through any concerned PENRO or CENRO for
filing in the concerned Regional
Office for purposes of its resolution by the Panel of Arbitrators
pursuant to the provisions of the Act and these implementing rules
and regulations. Upon final resolution of any adverse claim, protest
or opposition, the Panel of Arbitrators shall issue a Certification to
that effect within five (5) working days from the date of finality of
resolution thereof. Where no adverse claim, protest or opposition is
filed after the lapse of the period for filing the adverse claim, protest
or opposition, the Panel of Arbitrators shall likewise issue a
Certification to that effect within five (5) working days therefrom.
240
effectively carry out the objectives of the Agreement
with the understanding to timely utilize these
resources under its supervision pursuant to the
periodic work programs and related budgets, and
when proper, providing an exploration period up to
two (2) years from date of issuance thereof,
renewable for like periods but not to exceed a total
term of six (6) years, subject to annual review by the
Director in accordance with these implementing
rules and regulations;
c. Representations and warranties that the
applicant has all the qualifications and none of the
disqualifications for entering into the
Agreement;
d. A stipulation that the Contractor may relinquish
totally or partially the original contract area during
the exploration period. After the exploration period
and prior to or upon approval of declaration of
mining project feasibility, the Contractor shall
finally relinquish to the Government any portion of
the contract area which shall not be necessary for
mining operations and not covered by any
declaration of mining feasibility with the
corresponding submission to the Bureau/concerned
Regional Office of geologic report and pertinent
maps in the scale of 1:50,000. The minimum
exploration expenditures for the remaining area after
relinquishment shall be based on the approved
Exploration Work Program;
e. A stipulation that each mining area after final
relinquishment shall not be more than five thousand
(5,000) hectares for metallic minerals and two
241
thousand (2,000) hectares for nonmetallic minerals:
Provided, That the Director, with the approval of the
Secretary, may allow a Contractor to hold a larger
mining area depending upon the nature of the
deposit subject to technical verification and
evaluation by the Bureau as to the technical/financial
capability of the Contractor;
f. A stipulation that the mining operations shall be
conducted in accordance with the provisions of the
Act and these implementing rules and regulations;
g. A stipulation that the Contractor shall give
preference to goods and services produced and
offered in the Philippines of comparative
quality and cost. In particular, the Contractor
shall give preference to qualified Filipino
construction enterprises, construction
materials and skills available in the
Philippines, Filipino subcontractors for road
construction and transportation, and
Philippine household equipment, furniture
and food;
h. A stipulation that the Contractor is obliged to give
preference to Filipinos in all types of mining
employment for which they are qualified and that the
technology shall be transferred to the same;
i. A stipulation that the Contractor shall not
discriminate on the basis of gender and that
the Contractor shall respect the right of
women workers to participate in policy and
decisionmaking processes affecting their
rights and benefits;
242
j. A stipulation requiring the Contractor to effectively
use the best available appropriate anti-pollution
technology and facilities to protect the environment
and to restore or rehabilitate mined-out areas and
other areas affected by mine waste/mill tailings and
other forms of pollution or destruction in compliance
with the requirements of the ECC and P.D. No. 984.
This should be undertaken in coordination with the
EMB/Department Regional
Office;
k. A stipulation that the Contractor shall furnish the
Government an annual report of its mining
operations and records of geologic, accounting and
other relevant data, and that book of accounts
and records shall be open for inspection by the
Government;
l. A stipulation requiring the Contractor to dispose of
the minerals and by-products produced at the highest
market price and to negotiate for more advantageous
terms and conditions subject to the right to enter into
long-term sales or marketing contracts or foreign
exchange and commodity hedging contracts which
the Government acknowledges to be acceptable
notwithstanding that the sale price of the minerals
may from time to time be lower, or the terms and
conditions of sales are less favorable, than that
available elsewhere: Provided, That the Bureau is
furnished a copy of the said Sales Agreement subject
to confidentiality between the Bureau and the
Contractor;
m. A stipulation providing for consultation and
arbitration with respect to the interpretation and
243
implementation of the terms and conditions of the
Agreement;
n. A stipulation that the Contractor shall pay fees,
taxes, royalties and other obligations in accordance
with existing laws, rules and regulations;
o. A stipulation that alien employment shall be limited
to technologies requiring highly
specialized training and experience subject to the
required approval under existing laws, rules and
regulations;
p. A stipulation that in every case where foreign
technologies are utilized and where alien executives
are employed, an effective program of training
understudies shall be undertaken;
q. A stipulation that the Contractor shall conform with
laws, rules and regulations regarding, among others,
labor, safety and health standards;
r. A stipulation that the Contractor shall confine its
mining operations to its contract/mining area and
that it shall not interfere with the rights of other
Contractors/Lessees/operators/Permittees/Per
mit Holders;
s. A stipulation that the Contractor shall recognize and
respect the rights, customs and traditions of local
communities, particularly Indigenous
Cultural Communities;
t. A stipulation that the Contractor shall contribute to
the development of the host and neighboring
communities of the mining area, local
geoscience and mining technology in
accordance with Chapter XIV hereof;
244
u. A stipulation that the Contractor shall comply with
its obligations under its Environmental Protection
and Enhancement Program (EPEP) and its Annual
EPEP, including the allocation of the prescribed
annual environmental expense pursuant to Section
171 hereof;
v. A stipulation that the Contractor shall utilize the best
available appropriate and efficient mining and
processing technologies;
w. A stipulation that the Contractor shall undertake
exploration work on the area as specified in its
Agreement based on an approved Work
Program: Provided, That a negative variance of
at least twenty percent (20%) in the Work
Program and corresponding expenditures shall
be subject to approval of the
Director/concerned Regional Director;
x. A stipulation that the Contractor shall submit
annually starting from the date of approval of the
Agreement, progress reports of the exploration
activities in the prescribed form. This shall be
accompanied by raw geologic, geophysical and
geochemical data plotted in a 1:50,000 scale map, at
a minimum. A quarterly report containing activities
and accomplishments for each quarter shall also be
submitted. At the end of the exploration term, the
Contractor shall submit the final report with the
detailed list of activities with the corresponding
expenditures. The final report shall be accompanied
by a 1:50,000 geologic map of the contract area
acceptable by international standards. All reports
245
referred to herein shall be submitted to the
Bureau/concerned Regional Office;
y. A stipulation that the Mineral Agreement shall be
canceled, revoked or terminated for failure of the
Contractor to comply with the terms and conditions
thereof or for other grounds as provided for in
Section 230 hereof;
z. A stipulation that withdrawal by the Contractor from
the Mineral Agreement shall not release it from any
and all financial, environmental, legal and fiscal
obligations under the Agreement;
246
Regional Director 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.
247
That the term of the TEP shall be deducted from the exploration
period of the Mineral Agreement: Provided, further, That in the
event that the Mineral Agreement application is disapproved by the
Secretary, the TEP is deemed automatically canceled.
248
Section 45. Conversion of a Mineral Agreement into Any Other Mode
of Mineral Agreement or FTAA
249
recommendation of the Director: Provided, That any transfer or
assignment of a Mineral Agreement shall not be approved unless
the transferor/assignor or Contractor has complied with all the terms
and conditions of the Agreement and the provisions of the Act and
these implementing rules and regulations at the time of
transfer/assignment: Provided, further, That any transfer or
assignment shall be deemed automatically approved if not acted
upon by the Secretary within thirty (30) calendar days from official
receipt thereof, unless patently unconstitutional, illegal or where
such transfer or assignment is violative of pertinent rules and
regulations: Provided, finally, That the transferee assumes all the
obligations and responsibilities of the transferor/assignor under the
Mineral Agreement.
250
Section 48. Issuance of Special Mines Permit
251
g. Posting of Surety Bond prior to registration of the
SMP; and
h. Such other conditions and requirements not
inconsistent with the Act and these
implementing rules and regulations, as well as those
which the Secretary may deem to be for the national
interest and public welfare.
CHAPTER VII
FINANCIAL OR TECHNICAL ASSISTANCE AGREEMENT
252
Section 51. Maximum Areas Allowed under an FTAA
253
2. Comprehensive and validated
technical report on the outcome of the
two-year exploration works,
including environmental effects duly
prepared, signed and sealed by a
licensed Mining Engineer or
Geologist;
3. Audited report of
expenditures
incurred;
4. Work Program (MGB Form No. 5-4)
duly prepared, signed and sealed by a
licensed Mining Engineer or
Geologist;
5. Relinquishment report; and
6. Other supporting papers as
the
Department/Bureau/concerned
Regional Office may require or the
applicant may submit.
254
Any two (2) or more of the above periods may be
simultaneously undertaken in one approved contract area, as the
need of the Contractor may arise, subject to the pertinent provisions
of Section 59 hereof.
Section 53. Filing of FTAA Applications/Mandatory
Requirements
255
Government agency;
2. Duly certified Articles of Incorporation and
By-Laws;
3. Location map/sketch plan of the proposed
contract area showing its geographic
coordinates/meridional block(s) and
boundaries in relation to major
environmental features and other projects
using NAMRIA topographic map in a scale
of 1:50,000 duly prepared, signed and sealed
by a deputized Geodetic Engineer;
4. Two-year Exploration Work Program
(MGB Form No. 5-4) or three-year
Development/Utilization Work
Program (MGB Form No. 6-2), as
deemed applicable, duly prepared,
signed and sealed by a licensed
Mining Engineer, Geologist or
Metallurgical Engineer;
5. When applicable, a satisfactory
Environmental Management Record and
Community Relations Record as determined
by the Bureau in consultation with
the Environmental
Management Bureau and/or the
Department Regional Office. The
detailed guidelines for the
determination and applicability of
such records shall be specified by the
Secretary upon the recommendation
of the Director;
256
6. Environmental Work Program (MGB
Form No. 16-1 or MGB Form No.
16-1A) during the exploration period
as provided for in Section 168 hereof
or Environmental Compliance
Certificate prior to development,
construction and/or utilization and
Environmental Protection and
Enhancement Program (MGB Form
No. 16-2) as provided for in Section
169 hereof;
7. Proof of technical competence
including, among others, curricula vitae and
track records in mining operations and
environmental management of the technical
personnel who shall undertake the activities
in accordance with the submitted
Exploration/Development/Utilization
Work Program and Environmental
Work/Environmental Protection and
Enhancement Program, as deemed
applicable;
8. Certified copies, if any, of Exploration
Permits/contracts, operating
contracts, Mining Agreements,
leases, permits, transfers, assignments
or similar agreements it has entered
into with any local or foreign
juridical and natural persons;
9. Proof of financial capability to undertake the
activities pursuant to
Exploration/Development/Utilization
257
Work Program and Environmental
Work/Environmental Protection and
Enhancement Program, as deemed
applicable, such as latest Audited
Financial Statement and where
applicable, Annual Report for the
preceding year, credit lines, bank
guarantees and/or similar negotiable
instruments;
10. Declaration of the total area covered by
approved/pending FTAA(s)/
application(s); and
11. Other supporting papers as the
Department/ Bureau/ concerned Regional
Office may require or the applicant may
submit.
258
U.S. Dollars (US$4,000,000.00) or its
Philippine Peso equivalent;
d. Prior to construction, development and/or
utilization -
1. Feasibility Study;
2. Approved Survey Plan of the mining
area;
3. Environmental Compliance
Certificate; and
4. Environmental Protection and
Enhancement Program.
Provided, That any application with incomplete mandatory
requirements shall not be accepted.
259
relevant offices or agencies of the Government for their
information. Upon notification of the applicant by the Regional
Office as to transmittal of said document to the concerned
Department sector(s) and/or Government agency(ies), it shall be the
responsibility of the same applicant to secure the necessary area
status/consent/clearance from said Department sector(s) and/or
Government agency(ies). The concerned Department sector(s) must
submit the area status/consent/clearance on the proposed contract
area within thirty (30) working days from receipt of the notice:
Provided, That the concerned Department sector(s) can not
unreasonably deny area clearance/consent without legal and/or
technical basis: Provided, further, That if the area applied for falls
within the administration of two (2) or more Regional Offices, the
concerned Regional Office(s) which has/have jurisdiction over the
lesser area(s) of the application shall follow the same procedure.
260
Section 55. Publication/Posting/Radio Announcement of an
FTAA Application
261
The radio announcements shall be made daily for two (2)
consecutive weeks in a local radio program and shall consist of the
name and complete address of the applicant, area location, duration
of the FTAA applied for and instructions that information regarding
such application may be obtained at the Bureau/concerned Regional
Office(s). The publication and radio announcements shall be at the
expense of the applicant.
262
Section are fully complied with and any adverse
claim/protest/opposition thereto is finally resolved by the Panel of
Arbitrators.
Section 56. Terms and Conditions of an FTAA
1 2
2 2
3 8
4 8
5 18
6 23
263
first year of the exploration period of the
FTAA.
In the event that the Contractor
exceeds the minimum expenditure
requirement in any one (1) year, the amount
in excess may be carried forward and
deducted from the minimum expenditure
required in the subsequent year. In case the
minimum ground expenditure commitment
for a given year is not met for justifiable
reasons as determined by the
Bureau/concerned Regional Office, the
unexpended amount may be spent on the
subsequent year(s) of the exploration period.
b. A stipulation that the Contractor shall not, by virtue
of the FTAA, acquire any title over the
contract/mining area without prejudice to the
acquisition by the Contractor of the land/surface
rights through any mode of acquisition provided for
by law;
c. Representations and warranties that the Contractor
has, or has access to, all the financing, managerial
and technical capability
and technology required to promptly and
effectively carry out the objectives of the
Agreement with the understanding to timely
utilize these resources under its supervision
pursuant to the periodic work programs and
related budgets, and when proper, providing
an exploration period up to two (2) years,
extendible for another two (2) years, subject
to annual review by the Secretary in
264
accordance with these implementing rules
and regulations;
d. Representations and warranties that the
applicant has all the qualifications and none of the
disqualifications for entering into the
Agreement;
265
preference to qualified Filipino construction
enterprises, construction materials and skills
available in the Philippines, Filipino subcontractors
for road construction and transportation and
Philippine household equipment, furniture and food;
j. A stipulation that the Contractor is obliged to give
preference to Filipinos in all types of mining
employment for which they are qualified and that the
technology shall be transferred to the same;
k. A stipulation that the Contractor shall not
discriminate on the basis of gender and that
the Contractor shall respect the right of
women workers to participate in policy and
decisionmaking processes affecting their
rights and benefits;
l. A stipulation requiring the Contractor to effectively
use the best available appropriate anti-pollution
technology and facilities to protect the environment
and to restore or rehabilitate mined-out areas and
other areas affected by mine waste/mill tailings and
other forms of pollution or destruction in compliance
with the requirements of the ECC and P.D. No. 984.
This should be undertaken in coordination
with the EMB/Department Regional Office;
m. A stipulation that the Contractor shall furnish the
Government an annual report of its mining
operations and records of geologic, accounting and
other relevant data, and that book of accounts and
records shall be open for inspection by the
Government;
266
n. A stipulation requiring the Contractor to dispose of
the minerals and by-products produced at the highest
market price and to negotiate for more advantageous
terms and conditions subject to the right to enter into
longterm sales or marketing contracts or foreign
exchange and commodity hedging contracts which
the Government acknowledges to be acceptable
notwithstanding that the sale price of the minerals
may from time to time be lower, or the terms and
conditions of sales are less favorable, than that
available elsewhere: Provided, That the Bureau is
furnished a copy of the said Sale Agreement subject
to confidentiality between the Bureau and the
Contractor;
o. A stipulation providing for consultation and
arbitration with respect to the interpretation and
implementation of the terms and conditions of the
Agreement;
p. A stipulation that the Contractor shall pay fees,
taxes, royalties, shares and other obligations in
accordance with existing laws, rules and regulations;
q. A stipulation that alien employment shall be limited
to technologies requiring highly
specialized training and experience subject to the
required approval under existing laws, rules and
regulations;
r. A stipulation that in every case where foreign
technologies are utilized and where alien executives
are employed, an effective program of training
understudies shall be undertaken;
267
s. A stipulation that the Contractor shall conform with
laws, rules and regulations regarding, among others,
labor, safety and health standards:
t. A stipulation that the Contractor shall confine its
mining operations to its contract/mining area and
that it shall not interfere with the rights of
other Contractors/ Lessees/
operators/Permittees/Permit Holders;
u. A stipulation that the Contractor shall recognize and
respect the rights, customs and traditions of local
communities, particularly Indigenous
Cultural Communities;
v. A stipulation that the Contractor shall contribute to
the development of the host and neighboring
communities of the mining area, local
geoscience and mining technology in
accordance with Chapter XIV hereof;
w. A stipulation that the Contractor shall comply with
its obligations under its Environmental Protection
and Enhancement Program (EPEP) and its Annual
EPEP, including the allocation of the prescribed
annual environmental expense pursuant to Section
171 hereof;
x. A stipulation that the Contractor shall utilize the best
available appropriate and efficient mining and
processing technologies;
y. A stipulation that the Contractor shall undertake
exploration work on the area as specified in its
Agreement based on an approved Work
Program: Provided, That a negative variance
of at least twenty percent (20%) in the Work
268
Program and corresponding expenditures
shall be subject to approval of the
Director/concerned Regional Director;
z. A stipulation that the Contractor shall submit
annually starting from the date of approval of the
Agreement, progress reports of the exploration
activities in the prescribed form. This shall be
accompanied by raw geologic, geophysical and
geochemical data plotted in a 1:50,000 scale map, at
a minimum. A quarterly report containing activities
and accomplishments for each quarter shall also be
submitted. At the end of the exploration term, the
Contractor shall submit the final report with the
detailed list of activities with the corresponding
expenditures. The final report shall be accompanied
by a 1:50,000 geologic map of the contract area
acceptable by international standards. All reports
referred to herein shall be submitted to the
Bureau/concerned Regional Office;
aa. A stipulation that the FTAA shall be canceled,
revoked or terminated for failure of the Contractor to
comply with the terms and conditions thereof or for
other grounds as provided for in Section 230 hereof.
Should an FTAA be canceled,
revoked or terminated, it shall no longer be
required to meet the minimum expenditure
requirement for the remaining period:
Provided, That such cancellation, revocation
or termination is in accordance with Section
68 hereof.
269
ab. A stipulation that withdrawal by the Contractor
from the FTAA shall not release it from any
and all financial, environmental, legal and/or
fiscal obligations including settlement of all
obligations that should have accrued to the
Government during the term of the FTAA;
ac. A stipulation that the Contractor shall comply
with all other applicable provisions of the
Act and these implementing rules and
regulations; and
ad. Such other terms and conditions not
inconsistent with the Constitution, the Act
and these implementing rules and
regulations, as well as those which the
Secretary may deem to be for the national
interest and public welfare.
The Department shall formulate and promulgate such other
rules, regulations and guidelines necessary to ensure compliance
with the terms and conditions herein stated and to establish a fixed
and stable fiscal regime with respect to FTAAs.
270
Section 58. The Negotiating Panel
271
Director shall endorse the same to the Negotiating Panel for final
evaluation.
In case of FTAA applications in areas within Mineral
Reservations, within fifteen (15) working days from receipt of the
Certification issued by the Panel of Arbitrators as provided for in
Section 55 hereof, the same shall be evaluated and endorsed by the
Director to the Negotiating Panel for final evaluation.
272
for mining operations and not covered by any
declaration of mining feasibility with
corresponding submission to the
Bureau/concerned Regional
Office of geologic report and pertinent maps
in the scale 1:50,000: Provided, That each
mining area after final relinquishment shall
not be more than five thousand (5,000)
hectares: Provided, further, That the
Director, with the approval of the Secretary,
may allow a Contractor to hold a larger
mining area depending upon the nature of the
deposit and subject to Section 50 hereof and
technical verification by the Bureau.
c. The Contractor may, at its option, submit to
the Bureau/concerned Regional Office a
declaration of mining project feasibility over
any portion of its contract area prior to the
lapse of exploration or pre-feasibility period.
In such an event, the Contractor shall have
the right to continue its mineral exploration
or feasibility studies during the exploration
and feasibility periods, respectively, in
respect to the remaining contract area. Any
mining area declared out of such remaining
contract area may be covered by the original
Agreement or as a separate FTAA subject to
Subsection (b) herein.
A separate report of relinquishment shall be submitted to the
Bureau/concerned Regional Office with a detailed geologic report
of the relinquished area accompanied by maps at a scale of 1:50,000
and results of analyses and corresponding expenditures, among
273
others. The minimum exploration expenditures for the remaining
area after relinquishment shall be based on the approved
Exploration Work Program.
274
consideration/approval. The President shall notify Congress of the
approved FTAA within thirty (30) calendar days from the date of its
approval.
275
Section 64. Rights and Obligations of the Contractor
276
to Chapter VI hereof and all other applicable provisions of the Act
and these implementing rules and regulations: Provided, That the
term of the new Mineral Agreement shall be equivalent to the
remaining period of the FTAA. A copy of the Mineral Agreement
shall be submitted to the President.
277
finally, That the transferee assumes all the obligations and
responsibilities of the transferor/assignor under the FTAA.
278
CHAPTER VIII
QUARRY OPERATIONS
279
Section 71. Quarry Permit
280
processing covering an area of not more than
five (5) hectares for a term of one (1) year
from date of issuance thereof, renewable for
like period and in such quantities as may be
specified in the Permit: Provided, That only
one (1) Permit shall be granted to a Qualified
Person in a municipality at any one time
under such terms and conditions as provided
herein.
281
years from date of issuance thereof,
renewable for like periods but not to exceed
a total term of twenty-five
(25) years: Provided, further, That only one
(1) Permit shall be granted to a Qualified
Person in a municipality at any one time
under such terms and conditions as provided
herein.
282
Any Government entity/
instrumentality in need of quarry, sand and
gravel or loose/unconsolidated materials in
the construction of building(s) and/or
infrastructure for public use or other purposes
may apply for a Government Gratuitous
Permit (MGB Form No. 8-3B) with the
Provincial Governor/City
Mayor through the Provincial/City Mining
Regulatory Board for a period coterminous
with the construction stage of the project but
not to exceed one (1) year in public/private
land(s) covering an area of not more than two
(2) hectares. The applicant shall submit a
project proposal stating where the materials
to be taken shall be used and the estimated
volume needed.
283
Section 74. Mandatory Requirements for Quarry
or Commercial/Industrial Sand and Gravel Permit
Application
284
b. Area clearance from the concerned
Government agencies/Local Government
Units that may be affected by the permit
application or written permission from the
landowner(s) and surface owner(s) of the
area applied for;
c. Work Program (MGB Form No. 5-4 or MGB Form
No. 6-2) duly prepared, signed and sealed by a
licensed Mining Engineer or
Geologist;
d. When applicable, a satisfactory Environmental
Management Record and Community
Relations Record as determined by the
Bureau in consultation with the
Environmental Management Bureau and/or
the Department
Regional Office. The detailed guidelines for
the determination and applicability of such
records shall be specified by the Secretary
upon the recommendation of the Director;
e. Environmental Compliance Certificate prior to
extraction, removal and/or disposition and
Environmental Protection and Enhancement
Program (MGB Form No. 16-2) as provided for in
Section 169 hereof;
f. Proof of technical competence including, among
others, curricula vitae and track records in mining
operations and environmental management of
the technical personnel who shall undertake the
activities in accordance with
the submitted Work Program and
285
Environmental Protection and Enhancement
Program;
g. Proof of financial capability to undertake the
activities pursuant to Work Program and
Environmental Protection and Enhancement
Program, such as the following:
286
Section 75. Area Status/Clearance for a Quarry or Sand and
Gravel Permit Application
287
Within fifteen (15) working days from receipt of the permit
application, the concerned Regional Office(s) shall check in the
control maps if the area is free/open for mining applications.
If the proposed permit area is open for mining applications,
the concerned Regional Office(s) shall give written notice to the
applicant to pay the corresponding Regional Office(s) clearance fee
(Annex 5-A): Provided, That if a portion of the area applied for is
not open for mining applications, the concerned Regional Office
shall, within fifteen
(15) working days from receipt of said written notice, exclude the
same from the coverage of permit application: Provided, further,
That in cases of overlapping of claims/conflicts/complaints from
landowners,
NGOs, LGUs and other concerned stakeholders, the concerned
Regional Director/Provincial Governor/City Mayor shall exert all
efforts to resolve the same.
288
The concerned Regional Office/Provincial/City Mining
Regulatory Board shall cause the posting for two (2) consecutive
weeks of the Notice on the bulletin boards of the concerned
Regional Office(s), PENRO(s), CENRO(s) and in the concerned
province(s) and municipality(ies), copy furnished the barangay(s)
where the proposed permit area is located. Where necessary, the
Notice shall be in a language generally understood in the concerned
locality where it is posted.
Within thirty (30) calendar days from the last date of
posting, the authorized officer(s) of the concerned office(s) shall
issue a certification(s) that the posting have been complied with.
Any adverse claim, protest or opposition shall be filed directly,
within thirty (30) calendar days from the last date of posting, with
the concerned Regional Office or through any concerned PENRO or
CENRO for filing in the concerned Regional Office for purposes of
its resolution by the Panel of Arbitrators pursuant to the provisions
of the Act and these implementing rules and regulations. Upon
final resolution of any adverse claim, protest or opposition, the
Panel of Arbitrators shall issue a Certification to that effect within
five (5) working days from the date of finality of resolution thereof.
Where no adverse claim, protest or opposition is filed after the lapse
of the period for filing the adverse claim, protest or opposition, the
Panel of Arbitrators shall likewise issue a Certification to that effect
within five (5) working days therefrom.
289
Section 77. Processing/Registration/Issuance of a Quarry or Sand
and Gravel Permit
290
Gravel/Government Gratuitous/Guano/Gemstone
Gathering Permit
291
manner to achieve a safe, non-polluting and self-
sustaining post disturbance landform;
e. The Permit Holder shall conduct its operations in
accordance with the provisions of the Act and
these implementing rules and regulations;
f. The Permit Holder shall not discriminate on the
basis of gender and that the Permit Holder shall
respect the right of women workers to participate
in policy and decision-making processes affecting
their rights and benefits;
g. The Permit Holder shall conform to laws, rules
and regulations regarding, among others, labor,
safety and health standards;
h. The Permit Holder shall not interfere with the
rights of other Permit Holders/operators/
Contractors;
i. The Permit Holder shall recognize and respect the
rights, customs and traditions of local
communities, particularly Indigenous Cultural
Communities;
j. The Permit Holder shall immediately stop digging
and extracting materials the moment man-made
articles or artifacts are found. It shall notify the
Director of the National Museum of such findings,
in which case, the digging shall be under the
supervision of the National
Museum until said artifacts are recovered; and
k. The Permit shall be subject to cancellation,
revocation and termination as provided for in
Section 100 hereof.
292
Section 80. Specific Terms and Conditions of a Quarry
or Commercial/Industrial Sand and
Gravel or Government Gratuitous Permit
293
Permit Holder shall submit to the
concerned Regional Office/
Provincial/City Mining Regulatory
Board a final report with the detailed
list of activities and the
corresponding expenditures;
4. The Permit Holder shall furnish the
Government records of accounting and other
relevant data from its operations and that
book of accounts and records shall be open
for inspection by the Government;
5. The Permit/permit area can be
inspected and examined at all times by the
concerned Regional
Director/Provincial Governor/City
Mayor;
6. The Permit Holder shall not, by virtue of the
Permit, acquire any title over the permit area,
without prejudice to its acquisition of the
land/surface rights through any mode
of acquisition provided by law;
7. The Permit Holder shall pay fees, taxes and
other obligations in accordance with existing
laws, rules and regulations;
8. The Permit Holder shall comply with its
obligations under its ECC,
Environmental Protection and
Enhancement Program (EPEP) and Annual
EPEP, including the allocation of the
prescribed annual environmental expense
pursuant to Section 171
294
hereof;
9. The term of the Permit shall be for a
period as specified therein from date
of issuance thereof: Provided, That
no renewal of Permit shall be allowed
unless the Permit Holder has
complied with the terms and
conditions of the Permit and shall not
have been found guilty of violation of
any provision of the Act and these
implementing rules and regulations;
and
10. The Permit Holder shall comply with
pertinent provisions of the Act, these
implementing rules and regulations and such
other terms and conditions not inconsistent
with the Constitution, the Act and these rules
and regulations, as well as those which the
concerned
Regional Director/Provincial Governor/ City
Mayor may deem to be for the national
interest and public welfare.
295
extracting, hauling and transporting
the materials: Provided, That the
Permit Holder may enter into a
contract with a private person/entity
for the purpose of hauling and
transporting such materials;
3. The materials authorized to be removed
shall be strictly for infrastructure project
and in no case shall the same be
disposed of commercially, otherwise,
persons responsible thereof shall be
liable for prosecution under appropriate
laws;
4. Unless otherwise amended, the Permit
shall ipso facto terminate after the whole
quantity and kind of materials specified
therein have been removed or taken;
5. The Permit Holder shall file quarterly
with the concerned Regional Office/
Provincial/ City Mining Regulatory
Board a sworn statement of the quantity
of materials extracted, removed and/or
disposed under the Permit and the
amounts of fees paid therefor. At the
end of the term, the Permit Holder shall
submit to the concerned Regional
Office/ Provincial/City Mining
Regulatory Board a final report with
the detailed list of activities and the
corresponding expenditures;
296
6. The Permit/permit area can be
inspected and examined at all times by
the concerned Regional
Director/Provincial Governor/City
Mayor;
7. The Permit Holder shall comply with its
obligations under its ECC and
Environmental Protection and
Enhancement Program (EPEP),
including the allocation of the prescribed
environmental expense pursuant to
Section 171 hereof; and
8. The Permit Holder shall comply with
pertinent provisions of the Act, these
implementing rules and regulations
and such other terms and conditions
not inconsistent with the
Constitution, the Act and these rules
and regulations, as well as those
which the concerned Regional
Director/ Provincial Governor/City
Mayor may deem to be for the
national interest and public welfare.
297
confined sites for a term of one (1) year or upon the extraction of
the quantity as specified in the Permit: Provided, That only one (1)
Guano Permit shall be issued for the same cave or area: Provided,
further, That the maximum area for the Guano Permit that a
Qualified Person may hold at any one (1) time shall not be more
than five (5) hectares.
298
Board which has the largest area covered by the application, copy
furnished the other concerned Provincial/City Mining Regulatory
Board by the applicant: Provided, further, That a permit application
shall be accepted only upon payment of the required fees (Annex 5-
A) to the Provincial/City Mining Regulatory Board: Provided,
finally, That any application with incomplete mandatory
requirements shall not be accepted.
299
utilization and Environmental Protection and
Enhancement Program (MGB Form No. 16-2) as
provided for in Section 169 hereof;
e. Declaration of the approximate quantity of guano
resources available in the permit area applied for;
and
f. Other supporting papers as the concerned
Provincial/City Mining Regulatory Board may
require or the applicant may submit.
Section 83. Area Status/Clearance for a Guano Permit Application
Within fifteen (15) working days from receipt of the permit
application, the concerned Provincial/City Mining Regulatory
Board shall transmit a copy of the location map/sketch plan of the
applied area to the concerned Regional Office/pertinent Department
sector(s) affected by the permit application for area status, copy
furnished the concerned municipality(ies)/city(ies) and other
relevant offices or agencies of the Government for their
information. Upon notification of the applicant by the concerned
Provincial/City Mining Regulatory Board as to transmittal of said
document to the concerned Regional Office(s)/Department
sector(s)/Government agency(ies), it shall be the responsibility of
the same applicant to secure the necessary area
status/consent/clearance from said Regional Office(s)/Department
sector(s)/Government agency(ies). The concerned Regional
Office(s)/Department sector(s) must submit the area
status/consent/clearance on the proposed permit area within thirty
(30) working days from receipt of the notice: Provided, That the
concerned
Department sector(s) can not unreasonably deny area
clearance/consent without legal and/or technical basis: Provided,
further, That if the area applied for falls within the administration of
two (2) or more Provincial/City Mining Regulatory Boards, the
300
concerned Provincial/City Mining Regulatory Board(s) which
has/have jurisdiction over the lesser area(s) of the application shall
follow the same procedure.
301
days from receipt of the Notice. The Notice must contain, among
others, the name and complete address of the applicant, duration of
the permit applied for, extent of operation to be undertaken, area
location, geographical coordinates/meridional block(s) of the
proposed permit area and location map/sketch plan with index map
relative to major environmental features and projects and to the
nearest municipalities.
302
No permit shall be approved unless the requirements under this
Section are fully complied with and any adverse
claim/protest/opposition thereto is finally resolved by the Panel of
Arbitrators.
Section 85. Processing/Registration/Issuance of a
Guano Permit
303
Section 87. Specific Terms and Conditions of a Guano Permit
304
f. The Permit Holder shall pay fees, taxes and other
obligations in accordance with existing laws, rules
and regulations;
g. The Permit Holder shall comply with its obligations
under its ECC, Environmental Protection and
Enhancement Program (EPEP) and Annual EPEP,
including the allocation of the prescribed annual
environmental expense pursuant to Section 171
hereof;
h. The term of the Permit shall be for a period of one
(1) year from date of issuance thereof or upon the
extraction of the quantity as specified in the Permit;
and
305
Provided, further, That the Permit Holder has complied with all the
terms and conditions of the original Permit as provided herein and
has not been found guilty of violation of any provision of the Act
and these implementing rules and regulations.
306
b. Area clearance from the concerned
Government agencies/Local Government
Units that may be affected by the permit
application or written permission from the
landowner(s) and surface owner(s) of the
area applied for;
c. Declaration of the approximate quantity of
gemstone available in the permit area applied
for; and
d. Other supporting papers as the concerned
Provincial/City Mining Regulatory Board
may require or the applicant may submit.
Section 90. Area Status/Clearance for a Gemstone Gathering
Permit Application
307
(30) working days from receipt of the notice: Provided, That the
concerned
Department sector(s) can not unreasonably deny area
clearance/consent without legal and/or technical basis: Provided,
further, That if the area applied for falls within the administration of
two (2) or more Provincial/City Mining Regulatory Boards, the
concerned Provincial/City Mining Regulatory Board which
has/have jurisdiction over the lesser area(s) of the application shall
follow the same procedure.
In reservations/reserves/project areas under the jurisdiction
of the Department/Bureau/Regional Office(s) where consent/
clearance is denied, the applicant may appeal the same to the Office
of the Secretary.
Within fifteen (15) working days from receipt of the permit
application, the concerned Regional Office(s) shall check in the
control maps if the area is free/open for mining applications.
If the proposed permit area is open for mining applications,
the concerned Regional Office(s) shall give written notice to the
applicant to pay the corresponding Regional Office(s) clearance fee
(Annex 5-A): Provided, That if a portion of the area applied for is
not open for mining applications, the concerned Regional Office
shall, within fifteen (15) working days from receipt of said written
notice, exclude the same from the coverage of permit application:
Provided, further, That in cases of overlapping of
claims/conflicts/complaints from landowners,
NGOs, LGUs and other concerned stakeholders, the concerned
Regional Director/Provincial Governor/City Mayor shall exert all
efforts to resolve the same.
308
Section 91. Posting of a Gemstone Gathering Permit
Application
309
Panel of Arbitrators shall issue a Certification to that effect within
five (5) working days from the date of finality of resolution thereof.
Where no adverse claim, protest or opposition is filed after the lapse
of the period for filing the adverse claim, protest or opposition, the
Panel of Arbitrators shall likewise issue a Certification to that effect
within five (5) working days therefrom.
310
Section 93. Rights and Obligations of the Gemstone
Gathering Permit Holder
311
Permit shall ipso facto terminate after the
whole quantity of gemstones specified
therein have been removed or taken;
f. The Permit Holder shall file quarterly with
the Provincial/City Mining Regulatory Board
a sworn report of the quantity of gemstones
extracted, removed and/or disposed under the
Permit, the amounts of fees paid therefor, the
quantity/volume of gemstones sold or
disposed of during the period covered by the
report, their selling prices, the names and
addresses of the persons to whom the same
were sold, and the quantity/volume of
materials left in stock. At the end of the
term, the Permit Holder shall submit to the
Provincial/City Mining Regulatory Board a
final report with the detailed list of activities
and the corresponding expenditures;
g. The Permit/permit area can be inspected and
examined at all times by the concerned
Regional
Director/Provincial Governor/City Mayor;
h. The Permit Holder shall not, by virtue of the
Permit, acquire any title over the permit area,
without prejudice to its acquisition of the
land/surface rights through any mode of
acquisition provided by law;
i. The Permit Holder shall pay fees, taxes and
other obligations in accordance with existing
laws, rules and regulations;
j. The term of the Permit shall be for a period
as specified therein from date of issuance
312
thereof: Provided, That no renewal of Permit
shall be allowed unless the Permit Holder has
complied
with the terms and conditions of the Permit
and shall not have been found guilty of
violation of any provision of the Act and
these implementing rules and regulations;
k. The Permit Holder shall comply with
pertinent provisions of the Act, these
implementing rules and regulations and such
other terms and conditions not inconsistent
with the Constitution, the Act and these rules
and regulations, as well as those which the
Provincial Governor/City Mayor may deem
to be for the national interest and public
welfare.
313
Section 96. Surety Bond
To answer for and guarantee payment for whatever actual damages
that may be incurred by the quarry or sand and gravel operations, a
surety bond of Twenty Thousand Pesos (P=20,000.00) shall be
posted by the applicants, except for those applying for Gratuitous
and Exclusive Sand and Gravel Permits.
a. Justification of renewal;
b. Comprehensive and validated technical report
314
on the outcome of the operations, including
their environmental effects duly prepared,
signed and sealed by a licensed Mining
Engineer or
Geologist;
c. Audited report of expenditures incurred during
the operations period;
d. Work Program duly prepared, signed and sealed
by a licensed Mining Engineer or
Geologist;
e. Environmental Protection and Enhancement
Program (MGB Form No. 16-2) as provided for in
Section 169 hereof; and
f. Other supporting papers as the concerned
Regional Office/Provincial/City Mining
Regulatory Board may require or the applicant
may submit.
315
Section 100. Cancellation/Revocation/Termination of a
Quarry/Sand and Gravel/Gratuitous/Guano/
Gemstone Gathering Permit
316
Section 101. Effect of Cancellation/Revocation/Termination of
a Quarry/Sand and Gravel/Gratuitous/Guano/
Gemstone Gathering Permit
CHAPTER IX
SMALL-SCALE MINING
Section 103. General Provisions
Applications for Small-Scale Mining Permits shall be filed
with the Provincial Governor/City Mayor through the
concerned Provincial/City Mining Regulatory Board for areas
outside the Mineral Reservations and with the Director through the
Bureau for areas within the Mineral Reservations.
317
The guidelines and provisions specified in Mines Administrative
Order No. MRD-41, Series of 1984, Department Administrative
Order No. 28 and MRDB Administrative Order Nos. 3 and 3A
which are the implementing rules and regulations of P.D. No. 1899
and the guidelines and provisions of Department Administrative
Order No. 34, Series of 1992 which are the implementing rules and
regulations of R.A. No. 7076, insofar as they are not inconsistent
with the provisions of these implementing rules and regulations,
shall continue to govern smallscale mining operations.
CHAPTER X
SURFACE RIGHTS
318
Section 105. Entry Into Lands
The holder(s) of mining right(s) shall not be prevented from
entry into its/their contract/mining area(s) for the purpose(s) of
exploration, development and/or utilization: Provided, That written
notice(s) at its/their registered address(es) was/were sent to and duly
received by the surface owner(s) of the land(s), occupant(s) and
concessionaire(s) thereof and that a bond is posted in accordance
with Section 108 hereof.
319
Section 106. Voluntary Agreement
320
Mineral Reservations and the Regional Director for areas outside
Mineral Reservations based on the type of the land and the value of
the trees, plants and other existing improvements thereto.
CHAPTER XI
MINERAL PROCESSING PERMIT
321
Section 110. Application for Mineral Processing Permit/
Mandatory Requirements
322
Management Record and Community
Relations Record as determined by the
Bureau in consultation with the
Environmental Management Bureau and/or
the Department
Regional Office. The detailed guidelines for
the determination and applicability of such
records shall be specified by the Secretary
upon the recommendation of the Director;
f. Environmental Compliance Certificate;
g. Proof of technical competence including,
among others, curricula vitae and track
records in mineral processing and
environmental management of the technical
personnel who shall undertake the operation;
h. Proof of financial capability to undertake the
activities pursuant to Work Program and
Environmental Protection and Enhancement
Program, such as latest Audited Financial
Statement and where applicable, Annual
Report for the preceding year, credit lines,
bank guarantees and/or similar negotiable
instruments;
i. Interim Importation Permit/certification from
EMB on the use of chemicals (e.g. cyanide,
mercury) in compliance with R.A. No. 6969;
j. Brief history of applicant's activities for the
last five (5) years, if any;
k. Supply Contract/Agreement with mining
rights
holders, if applicable; and
323
l. Other supporting papers as the Secretary/
Director/concerned Regional Office
may require or the applicant may submit.
324
regulations; and the obligation to fully comply with the terms and
conditions of the Permit.
325
f. The Permit Holder shall not discriminate on the
basis of gender and that the Permit Holder shall
respect the right of women workers to participate in
policy and decision-making processes affecting their
rights and benefits;
g. The Permit Holder shall pay fees, taxes and other
obligations in accordance with existing laws, rules
and regulations;
h. The Permit Holder shall conform to laws, rules and
regulations regarding, among others, labor, safety
and health standards;
i. The Permit Holder shall comply with its
obligations under its ECC;
j. The term of the Permit shall be for a period of five
(5) years from date of issuance thereof, renewable
for like periods but not to exceed a total term of
twenty-five (25) years: Provided, That no renewal of
Permit shall be allowed unless the Permit Holder has
complied with all the terms and conditions of the
Permit and has not been found guilty of violation of
any provision of the Act and these implementing
rules and regulations.
k. The Permit Holder shall give preference to
goods and services produced and offered in
the Philippines of comparative quality and
cost. In particular, the Contractor shall give
preference to qualified Filipino construction
enterprises, construction materials and skills
available in the Philippines, Filipino sub-
contractors for road construction and
326
transportation and Philippine household
equipment, furniture and food;
l. The Permit Holder shall give preference to Filipinos
in all types of employment for which they are
qualified and that the technology shall be transferred
to the same;
m. In case of foreign-owned/controlled corporation,
representations and warranties that, except for
payments for dispositions for its equity, foreign
investments in local enterprises which are qualified
for repatriation, and local supplier's credits and such
other generally accepted and permissible financial
schemes for raising funds for valid business
purposes, the Permit Holder shall not raise any form
of financing from domestic sources of funds,
whether in Philippine or foreign currency, for
conducting its mineral processing;
n. Alien employment shall be limited to
technologies requiring highly specialized training
and experience subject to the required approval
under existing laws, rules and regulations;
o. In every case where foreign technologies are utilized
and where alien executives are employed, an
effective program of training understudies shall be
undertaken;
p. The Permit Holder shall utilize the best available
appropriate and efficient mineral processing
technology;
q. The Permit shall be subject to cancellation,
revocation and termination as provided for in
Section 115 hereof;
327
r. Withdrawal by the Permit Holder from the Permit
shall not release it from any and all financial,
environmental, legal and/or fiscal obligations;
s. The Permit Holder shall comply with all other
applicable provisions of the Act and these
implementing rules and regulations; and
t. Such other terms and conditions not
inconsistent with the Constitution, the Act
and these implementing rules and
regulations, as well as those which the
Secretary may deem to be for the national
interest and public welfare.
a. Justification of renewal;
b. Comprehensive and validated technical report
on the outcome of the operations, including
their environmental effects duly prepared,
signed and sealed by a licensed Mining
Engineer or
Metallurgical Engineer;
c. Audited report of expenditures incurred during the
operations period;
d. Work Program duly prepared, signed and
sealed by a licensed Metallurgical Engineer; and
328
e. Other supporting papers as the concerned Regional
Office may require or the applicant may submit.
Any renewal shall be approved by the Secretary upon the
recommendation of the Director/concerned Regional Director:
Provided, That no renewal of Permit shall be allowed unless the
Permit Holder has complied with all the terms and conditions of the
Permit and has not been found guilty of violation of any provision
of the Act and these implementing rules and regulations.
329
d. Any misrepresentation in any statement made
in the application or those made later in
support thereof; and
e. When national interest and public welfare so
require or for environmental protection or
ecological reasons.
The foregoing provisions notwithstanding,
cancellation/ revocation/termination of a Mineral Processing
Permit shall not release the Permit Holder from any and all
obligations it may have, particularly regarding ecological
management, to the public or private party(ies) at the time of
cancellation/revocation/termination.
CHAPTER XII
TRANSPORT OF MINERALS/MINERAL PRODUCTS
AND CONFISCATION, SEIZURE AND DISPOSITION
OF ILLEGALLY-SOURCED MINERALS/MINERAL
PRODUCTS
330
the transport of sand and gravel shall be covered by a Delivery
Receipt.
331
1281, subject to further investigation. If it is found that the
minerals/ mineral products seized have been mined, extracted or
removed without any permit or authority under existing mining
laws, rules and regulations, final confiscation can be effected to be
followed by the filing of the complaint for theft of minerals. The
Bureau officers which include the Regional Director and other
Bureau personnel, duly authorized by the Director, and CENRO
personnel, duly authorized by the Secretary, shall have authority to
arrest offenders and confiscate/seize illegally-sourced
minerals/mineral products and the tools, equipment and conveyance
used in the commission of offense.
Section 119. Execution of Sworn Statements
332
Section 121. Custody of the Confiscated/Seized Minerals/ Mineral
Products, Tools, Equipment and Conveyance
This shall be made in accordance with the following
procedures: a. In case of apprehension by the Bureau field
officer, the mineral products, tools, equipment and
conveyance used shall be deposited with the concerned
Regional Office or wherever it is most convenient, for
safekeeping. If the transfer of the seized products to the
aforecited offices is not immediately feasible, the same
shall be placed under the custody of any The
apprehending officer is authorized to seek
assistance from licensed mine operators to
provide transportation facilities for the
transfer of the confiscated items from the
place of apprehension to the place of
custody. licensed mine operator or the
nearest local public official such as the
Barangay Captain, Municipal/City Mayor,
Provincial Governor or the Philippine
National Police (PNP), at the discretion of
the confiscating officer taking into account
the safety of the confiscated items. In any
event, the custody shall be duly
acknowledged and received by the official
taking custody thereof:
Provided, That in the case of
seizure/confiscation by the Bureau the case
shall be referred to the concerned Regional
Office for further investigation and
disposition;
b. In case of apprehension by the PNP,
Economic
333
Intelligence and Investigation Bureau (EIIB),
Coast Guard and other Government law
enforcement agencies, the apprehending
agency shall notify the concerned Regional
Office and turn over the seized items thereto
forFor confiscated gold and/or other precious
metal(s), the concerned Regional Office shall
first determine if they conform with the
Bangko Sentral ng Pilipinas (BSP)
specifications or requirements for
acceptance. proper
investigation and disposition; and
c. If the confiscated gold and/or other precious
metal(s) satisfy(ies) the minimum weight
requirements but it does not conform with the
physical requirements, the said metal(s) shall
be delivered by the accountable officer
escorted by security officers to the
Bureau/concerned Regional Office
Metallurgy Laboratory for processing. In
cases where the weight requirement is not
satisfied, the Chief Cashier/Accountant of the
concerned Regional Office shall store the
confiscated metal(s) in a safety deposit box
of the nearest reputable banking institution
duly accredited by the Department Regional
Office. Once the inventory of metal(s)
reaches the minimum BSP weight
specifications, the Chief Cashier/Accountant
shall turn over the confiscated metal(s) to the
Metallurgy Office. The latter shall turn over
immediately after processing into saleable
334
form the metal(s) to the Chief
Cashier/Accountant. In each turnover,
accountability is transferred through a
Memorandum Receipt.
335
to the Bureau for proper handling and disposition, copy furnished
the Department.
336
sold directly to the BSP. The sale shall be
made as follows:
337
accordance with pertinent laws, rules and
regulations or policies on the matter.
338
procedure shall be followed by a report of the
concerned Regional Director to the Director.
b. Monthly Report
CHAPTER XIII
ACCREDITATION OF PROCESSORS, TRADERS,
DEALERS AND RETAILERS IN THE TRADING OF
MINERALS/MINERAL PRODUCTS AND BY-PRODUCTS Section
127. Scope
339
agricultural/industrial lime. Exempted are finished/manufactured
minerals and metal products such as cement, transit mixed concrete,
ceramics, polished decorative stone tiles, refined or alloyed metal
sheets, wires, bars, beams, plates, refined precious metal bars,
jewelry or ornaments and other mineral products in their final form
or stage ready for consumption by end-users.
340
Upon payment of the filing and processing fees (Annex 5-
A), the applicant shall submit at least five (5) sets of the following
mandatory requirements:
a. Duly accomplished application form as prescribed in
MGB Form No. 13-1;
b. Copy of the Permit/Contract of the Suppliers/sources
of minerals/mineral products/by-products or copy of
Certificate of Accreditation in case the source of
materials is a trader, dealer or retailer;
c. DTI Registration;
d. Proof of legal source or supply as supported by any
of the following documents:
1. Supply Contract/Agreement with a Permit
Holder/Contractor/ accredited dealer
producing the specified minerals/mineral
products/by-products;
2. Affidavit executed by a Permit
Holder/Contractor/accredited dealer to the
effect that it is willing or currently selling
and will continue to sell or supply the
applicant with the minerals/mineral
products/by-products specified in the
application;
3. Delivery or Purchase Receipts issued by a
Permit Holder, Contractor or previously
accredited dealer/trader; and
4. Ore Transport Permit (OTP) or Bill of Lading
which clearly indicates that the applicant is
the consignee of a Permittee or a duly
accredited dealer/trader/shipper.
341
e. Other supporting papers as the concerned Regional
Office may require or the applicant may
submit.
342
Section 132. Term of the Certificate of Accreditation
CHAPTER XIV
DEVELOPMENT OF MINING COMMUNITIES,
SCIENCES AND MINING TECHNOLOGY
343
direct mining and milling costs necessary to
implement Paragraphs (a) and (b) of this
Section: Provided, That the royalty payment
of one percent (1%) of the gross output for
the Indigenous Cultural Communities,
pursuant to
Section 16 hereof, may include the
aforementioned allotment to implement
Paragraphs (a) and (b) hereof.
344
d. Development and maintenance of community
housing projects for mine employees and
members of the community;
e. Establishment of training facilities for
manpower development for mine employees
and members of the community; and
f. Establishment of livelihood industries for the
dependents of the mine employees as well as
for other members of the community.
In addressing the future mine development, the
Contractor/Permit Holder/Lessee may involve the
concerned communities, Local/National Government or
concerned private institutions in the pre-construction and social
planning stage.
345
Science and Technology, who are not
employees of the mine;
c. Expenditures for scholars, fellows and
trainees on mining, geoscience and
processing technology and related subjects
such as community development and
planning, mineral and environmental
economics;
d. Expenditures on equipment and capital outlay
as assistance for developing research and
educational institutions which serve as a
venue for developing mining,
geoscience and processing technology and
the corresponding manpower training and
development; and
e. Other activities that the Director may
consider upon proper recommendation by the
concerned professional organizations and/or
research institutions, where appropriate.
346
reforestation and production of goods and
services needed by the mine and the
community. Where traditional self-
sustaining income generating activities are
identified to be present within the host and/or
neighboring communities, the
Contractor/Permit Holder/ Lessee shall work
with such communities towards the
preservation and/or enhancement of such
activities; and
c. Give preference to Filipino citizens, who
have established domicile in the host and
neighboring communities, in the hiring of
personnel for its mining operations. If
necessary skills and expertise are currently
not available, the Contractor/Permit
Holder/Lessee must immediately prepare and
undertake a training and recruitment program
at its expense.
Section 137. Development of Mining Technology and Geosciences
347
convenient and cost effective forms, subject
to the condition that the Contractor/Permit
Holder/Lessee may delay release of the said
information for a reasonable period of time
which shall not exceed three (3) years;
348
Section 138. Use of Indigenous Goods, Services
and Technologies
349
preference to Filipino citizens in all types of mining employment
within the country insofar as such citizens are qualified to perform
the corresponding work with reasonable efficiency and without
hazard to the safety of the operations. They, however, shall not be
hindered from hiring employees of his own selection, subject to the
provisions of Commonwealth Act No. 613, as amended, for
technical and specialized work which, in his judgment and with the
approval of the Director, requires highly-specialized training or
experience in exploration, development or utilization of mineral
resources: Provided, That in no case shall each employment exceed
five (5) years or the payback period of the project as stated in the
approved original feasibility study, whichever is longer: Provided,
further, That each foreigner employed as mine manager, vice
president for operations or in an equivalent managerial position in
charge of mining, milling, quarrying or drilling operations shall be
subject to the provision of Section 141 hereof: Provided, finally,
That each foreigner employed in a position lower than the
managerial level shall be hired on a consultancy basis.
350
in the country of domicile, the Director may
grant waivers or exemptions;
d. Secure working permits/visa
from other
concerned Government agency(ies); and
e. Submit other supporting papers deemed
necessary by the Secretary/Director/
concerned Regional Director.
CHAPTER XV
MINE SAFETY AND HEALTH
351
Contractor/Permittee/Lessee/Permit Holder to undertake mining/
quarrying operations unless they are duly accredited by the Bureau.
352
Section 144. Submission of Safety and Health Program
353
latter with existing rules and regulations:
Provided, further, That the safety records of
the Service Contractor
shall be included in a separate form in the
safety record of the Contractor/ Permittee/
Lessee/ Permit Holder.
c. A Service Contractor shall be required to
assign a safety engineer and/or safety
inspector if the service area requires close
supervision where imminent hazards exist.
354
Section 147. Qualifications for Registration as Safety Engineer or
Safety Inspector
a. For Registration as Safety Engineer:
355
1. For Permanent Registration -
i. A graduate in any
Engineering, Geology or
Chemistry course with one (1)
year experience in mining
operation; or
ii. A college graduate in any
Engineering, Geology
or
356
Chemistry course with at least
one (1) year experience in
safety work or two (2) years
experience in mining
operation; or
iii. At least high school graduate
with two (2) years experience
in safety work or three (3)
years experience in mining
operation.
Section 148. Mandatory Requirements for the Issuance of
Safety Engineer/Inspector Permit
357
Section 149. Term of Temporary Safety Engineer/Inspector
Permit
A Temporary Safety Engineer/Inspector Permit shall have a
term of one (1) year from the date of issuance thereof, renewable
every year.
358
installation; and
d. Authority to install shall be issued only after the
plans have been cleared and certified to conform
with the rules and regulations of the above-
mentioned laws.
359
day shall be charged to the applicant: Provided, That the minimum
charge shall not be less than Five Thousand Pesos (P=5,000.00).
Section 154. Power to Issue Orders
a. As the need arises, the concerned Regional
Director shall require the Contractor/
Permittee/Lessee/Permit Holder and Service
Contractor to remedy any practice connected
with mining or quarrying operations, which
is not in accordance with the provisions of
MAO
No. MRD-51; and
b. The same may summarily suspend, wholly or
partially, any activity related to
mining/quarrying operations, in case of
imminent danger to life or property, until the
danger is removed, or until appropriate
measures are taken by the Contractor/
Permittee/Lessee/Permit
Holder/Service Contractor.
Section 155. Report of Accidents
a. In case of any incident or accident, causing
or
creating the danger of loss of life or serious
physical injuries, the person in charge of the
operations shall report the same to the
concerned Regional Office where the
operations are situated within twenty-four
(24) hours, copy furnished the Bureau.
Failure to report the same without justifiable
reason shall be cause for the imposition of
360
administrative sanctions prescribed under
MAO
No. MRD-51; and
b. The Contractor/Permittee/Lessee/Permit
Holder/Service Contractor shall furnish the
Bureau/concerned Regional Office with the
following:
1. Monthly Contractor's/Permittee's/
Lessee's/Permit Holder's/Service
Contractor's Report of Accident or Sickness
(MGB Form No. 15-4);
2. Monthly General Accident Report (MGB
Form No. 15-5); and
3. Minutes of the Central Safety
Committee meetings.
A Contractor/Permittee/Lessee/Permit Holder/Service
Contractor shall have the right to possess and use explosives within
its contract/permit/lease area as may be necessary for its
mining/quarrying operations upon approval of an application by the
Philippine National Police through the recommendation by the
concerned Regional Office.
361
Section 157. Requirements in the Application for Purchaser's
License, License to Purchase/Transfer Explosives
or Blaster Foreman's License for Mining/
Quarrying Purposes
362
License to Purchase/Transfer Explosives or Blaster
Foreman's License for mining/quarrying purposes shall be endorsed
by the concerned Regional Office to the Philippine National Police
for consideration/approval.
363
reports of their explosive transactions (MGB Form No. 15-7) and
explosives and accessories consumption reports (MGB Form No.
158) within fifteen (15) working days after every calendar month.
Section 163. Mine Labor
364
CHAPTER XVI
ENVIRONMENTAL PROTECTION
365
condition prescribed in the Environmental
Compliance
Certificate and/or Environmental Protection and
Enhancement Program.
366
resources of Indigenous Cultural Communities and
other communities.
367
The applicants shall furnish the concerned Sangguniang
Panlalawigan with the said EWP. A status report as to compliance
with the EWP shall be submitted to the Bureau/concerned Regional
Office within fifteen (15) working days from the end of six (6)
months after the approval of the EWP and every six (6) months
thereafter.
368
life-of-mine shall include costings to enable
sufficient financial resources to be allocated
to meet the life-of-mine commitments. Such
financial requirements of the EPEP shall be
the basis for the lodging of the Mine
Rehabilitation Fund; and
b. Existing MPSA or FTAA Contractors with
ECCs and operating mines and quarries may
submit, within sixty (60) calendar days from
the effectivity of these implementing rules
and regulations, an EPEP covering all areas
to be affected by development, utilization
and processing under their contract and/or
lease. Environmental impact control and
rehabilitation activities proposed during the
remaining life-of-mine period shall include
costings to enable sufficient financial
resources to be allocated to meet the
environmental and rehabilitation
commitments. Such financial requirements
of the EPEP shall be the basis for the lodging
of the Mine Rehabilitation Fund.
369
program shall be based on practical and achievable options and
demonstrated practice. Finally, the program shall include
implementation schedules, system of environmental compliance
guarantees, monitoring, reporting and cost provisions. Where
proposed practices are unproven, a research program to prove the
impact control and rehabilitation technology shall be required.
370
The MRF Committee shall conduct a preliminary evaluation
on the submitted document as to its form and substance and may
impose additional requirements and documentation which are
deemed necessary. The MRF Committee shall endeavor to
complete the evaluation and processing of the EPEP within thirty
(30) calendar days from receipt thereof.
All preliminary evaluations shall be consolidated and
forwarded to the Contingent Liability and Rehabilitation Fund
(CLRF) Steering Committee (described in Sections 193 and 194
hereof) through the Bureau for final evaluation and approval. The
EPEP shall be acted upon by the CLRF Steering Committee within
thirty (30) calendar days from receipt thereof from the MRF
Committee. The Contractor/Permit Holder shall provide each of the
concerned Local Government Units with a copy of the approved
EPEP not later than thirty (30) calendar days prior to the intended
date of commencement of mining operation.
371
Section 171. Annual Environmental Protection and Enhancement
Program (AEPEP)
372
Section 173. Organization of a Mine Environmental Protection
and Enhancement Office (MEPEO)
373
An independent environmental audit shall be undertaken
regularly by the Contractor to identify environmental risks affecting
mining operations to serve as a basis for the development of an
effective environmental management system. The MMT, MRF
Committee and CLRF Steering Committee shall be furnished with
the results of the said audit.
374
Section 176. Presidential Mineral Industry Environmental
Awards
375
Contractor/Permit Holder. The ECC shall be the basis in the
preparation of EPEP.
376
Section 181. Mine Rehabilitation Fund
377
expenses incurred by the monitoring team:
Provided, That the Secretary shall be
authorized to increase the said amount when
national interest and public welfare so
require, upon the recommendation of the
Director. The Contractor/Permit Holder shall
notify the Chair or the Co-Chair of the MRF
Committee of its compliance with the deposit
requirement through a certification from the
bank.
378
Trust Fund in a mutually agreed Government
depository bank: Provided, That said amount
shall be deposited in four (4) equal quarterly
deposits within fifteen (15) calendar days
from the beginning of each quarter of the first
year following the approval of the EPEP.
379
Section 182. The Mine Rehabilitation Fund Committee
380
CLRF Steering Committee;
h. Ensures that the MTFs and RCFs shall be kept
separate and distinct from one another and maintains
independent and specific books of records for all
transactions of the said funds of each
Contractor/Permit Holder;
i. In the absence of fraud, bad faith or gross negligence
on the part of the MRF Committee or any person
acting on its behalf, the said Committee shall not be
liable for any loss or impairment of the MRFs
arising out or in connection with any act done or
performed or caused to be done or performed by the
said Committee pursuant to the provisions of these
implementing rules and regulations;
j. Prepares and submits to the Secretary/
Director, within thirty (30) calendar days
after the end of each year, an annual report of
accomplishments, including audited financial
statements and such periodic reports of
activities as may be required; and
k. Performs other functions as may be assigned by the
Secretary/Director.
381
Government, where this is applicable, as
Member;
d. Representative from the Local Government
Unit as Member;
e. Representative from the local NGOs and
community organizations, including People's
Organizations, church or civic organizations,
as
Member; and
f. Representative of the Contractor/Permit
Holder as Member.
382
be presided by the Chair or, in his/her absence, by the Co-Chair. In
the absence of the Chair and the Co-Chair, the meetings shall be
presided by either of their representatives. Unless otherwise
provided herein, a majority vote of the members present in the
meeting shall be required to give effect to any resolutions or
decisions of the Committee. The presiding officer of the meeting
shall not vote in any matter brought before the Committee except in
case of a tie.
383
The MMT may request the MRF Committee for technical
assistance when deemed necessary. The Head of the MMT shall
submit to the MRF Committee, at least five (5) working days before
the scheduled regular meetings of the latter, a report on the status
and/or result of its monitoring activities as provided for in Section
174 hereof, copy furnished the CLRF Steering Committee.
384
Section 187. Final Mine Rehabilitation/Decommissioning Plan
385
Section 190. Mine Waste and Tailings Fees (MWTF)
The basic fees that shall accrue to the MWT Reserve Fund
shall beP= 0.05/MT of mine waste produced andP= 0.10/MT of mill
tailings generated from the mining operations except where such
mine waste and mill tailings were utilized in the following manner:
a. Filling materials for underground mine
openings;
b. Filling materials for surface mine openings:
Provided, That such materials shall not affect
natural drainage systems as may be
determined by the Committee or its duly
authorized representative;
c. Filling materials for engineered tailings
dams, roads and housing areas: Provided,
That such areas shall not affect natural
drainage systems as may be so determined by
the Committee or his/her duly authorized
representative: Provided, further, That those
with tailings impoundment/disposal system
that were found to have discharged and/or to
be discharging solid fractions of tailings into
areas other than the approved tailings
disposal area shall pay P= 50.00/MT without
prejudice to other penalties and liabilities the
Contractor/Lessee/Permit Holder shall be
subject to under other existing laws, rules and
regulations: Provided, finally,
That said amount shall accrue to the MWT
Reserve Fund;
d. Concreting and manufacture of concrete
products; and
386
e. Mine waste impounded for future
use:
Provided, That a two-year work program on
the utilization of the said materials shall be
submitted together with the semiannual
report: Provided, further, That said materials
shall be utilized for its beneficial use within a
period of two (2) years. Mine waste
materials, which are not utilized within the
two-year period, shall be charged the
corresponding fee ofP= 0.05/MT. Non-
submission of the work program shall mean
disqualification from exemption from
payment of fees.
387
Contractor/Lessee/Permit Holder stating, among others, the
following:
a. The amounts of mine waste and/or mill tailings
produced, contained/stored/ impounded and/or
utilized; and
b. The manner by which the mine waste and/or
mill tailings produced were utilized.
388
Failure to comply with the said provision shall mean a ten percent
(10%) surcharge on the principal amount for every month of delay.
389
h. Prescribes documentary requirements
for
applications for compensation for damages;
i. Appoints and/or designates members of the
Technical Working Group to serve as the technical
staff of the Committee and Regional Investigation
and Assessment Teams, as provided for in Sections
196 and 198 hereof, to assist the Committee in the
investigation and assessment of the claims for
compensation for damages: Provided, That the
Committee shall exercise general supervision over
them;
j. Provides appropriate funds from the MRFs and
MWT Reserve Fund for the development and
implementation of research and other special
projects, which are deemed necessary in promoting
the environmental objectives of these implementing
rules and regulations;
k. Implements duly approved guidelines, rules and
regulations;
l. Formulates policy recommendations to
strengthen the environmental provisions of these
implementing rules and regulations for
consideration of the Secretary;
m. Recommends to the Secretary the granting of
allowances to officials and personnel
performing functions and duties relative to
the effective implementation of these
implementing rules and regulations;
n. Prepares and submits to the Secretary, within thirty
(30) calendar days after the end of each year, an
390
annual report of accomplishments and such periodic
reports of activities, as may be required; and
o. Performs other functions as may be assigned by the
Secretary.
Section 194. Composition of the CLRF Steering Committee
The CLRF Steering Committee shall be composed of the
following officials or their duly authorized representatives:
a. Director as Chair;
b. Director of Environmental Management
Bureau as Vice-Chair;
c. Director of Lands Management Bureau as
Member;
d. Director of Forest Management Bureau as
Member;
e. Director of Bureau of Soils and Water
Management as Member;
f. Director of Bureau of Plant Industry as
Member;
g. Director of Bureau of Fisheries and Aquatic
Resources as Member;
h. Administrator of the National
Irrigation
Administration as Member; and
i. Assistant Director of the Bureau as
Committee Coordinator.
391
The Bureau shall provide the secretariat and administrative
supports, as may be deemed necessary, to the CLRF Steering
Committee.
392
additional requirements and documentation deemed
necessary and consults with credible experts,
including the Director of the Philippine Social
Science Council, Director of the National Museum,
Offices of the
Northern and Southern Cultural
Communities, as well as other advisory
body(ies) that may be required to clarify
proposals and to discuss the adequacy of
control and rehabilitation measures;
c. Conducts annual environmental audit to ensure that
the approved EPEPs/AEPEPs shall be strictly
implemented by the Contractors/Permit
Holders;
d. Conducts continuing studies and research on policy
options, strategies and approaches to effective
implementation of environmental protection and
enhancement programs and recommends such
measures as may be required to address therefor to
the Committee;
e. Verifies the amounts of mine waste and mill tailings
generated by Contractors/Lessees/
Permit Holders;
f. Computes and collects the mine waste and tailings
fees to be paid by
Contractors/Lessees/Permit Holders;
g. Receives, processes, evaluates and conducts
preliminary investigations, if necessary, of
claims for damages and submits appropriate
recommendations to the CLRF Committee;
393
h. Assists in the investigation and assessment of
claims for damages and submits appropriate
recommendations to the CLRF Steering
Committee;
i. Develops, packages and recommends research and
other special projects concerning mining and the
environment;
j. Determines/estimates/prepares the cost of
rehabilitating damaged industrial,
commercial, residential, agricultural and
forest lands, marine and aquatic resources
and placer and lode small-scale mining areas
caused primarily by mining operations;
k. Coordinates and monitors the activities of the
Regional Investigation and Assessment Teams
(RIAT) as provided for in Section 193 hereof;
l. Drafts guidelines, rules, regulations, resolutions and
other documents in connection with the
environmental provisions of these implementing
rules and regulations; and
m. Performs other functions as may be assigned by the
CLRF Steering Committee.
Section 197. Contingent Liability and Rehabilitation Steering
Committee Administrative Fund
394
and materials, cost of communication services and adequate capital
outlay for the purchase of required photocopying machines,
computers, microfiche machines and other support equipment.
395
e. Creates, whenever and wherever deemed
necessary, Local Task Forces to assist the
RIAT in carrying out its functions; and
f. Performs other functions that may be assigned by
the Director.
396
f. Any Indigenous Cultural Community in case of
damage to burial grounds and
cultural resources.
397
Section 200. Evaluation of and Compensation for Claims for Damages
398
d. Damages to agricultural lands resulting in
partial loss of productivity may be
compensated at an amount equivalent to the
costs of rehabilitation;
e. Damages to industrial and residential lands
may be compensated at an amount equivalent
to the costs of rehabilitation;
f. Damages resulting in total or partial loss of
agricultural crops, forest products and/or
inland aquatic resources may be
compensated at an amount equivalent to the
loss of projected net income therefrom;
g. Damages to infrastructures may be
compensated at an amount equivalent to the
costs of rehabilitation to be determined by the
CLRF Steering Committee;
h. The amount of compensation for damages
shall be based on the amount claimed or the
amount assessed, whichever is lower;
i. In case of private leased lands, compensation
under these implementing rules and regulations
shall be paid in accordance with the sharing
agreement between the private landowner(s)
and the lessee(s). In the absence of such an
agreement, seventy-five percent (75%) of the
compensation shall be paid to the lessee and
twenty-five percent (25%) shall be paid to the
landowner;
j. Damages compensated by the operating
mining company(ies) shall no longer be
considered compensable under these
399
implementing rules and regulations: Provided,
That written approval has been secured from
the CLRF Steering Committee. Such payment
shall be credited to the concerned Contractor/
Lessee/ Permit Holder for the next paying
period. A waiver signed as a condition for
payment of
such compensation by the Contractor/Lessee/
Permit Holder shall also be considered as a
waiver under these implementing rules and
regulations;
k. Any damage to burial grounds and cultural
resources of an Indigenous Cultural
Community shall be compensated in an
amount to be determined by said Community,
the concerned Local Government Unit and/or
the National
Museum; and
l. The decision of the CLRF Committee shall be
final and executory unless appealed to the
Secretary within thirty (30) calendar days from
receipt of the decision.
CHAPTER XIX
CONFLICTS/ADVERSE CLAIMS/OPPOSITIONS
400
Director. Those designated as members of the Panel shall serve as
such in addition to their work in the Department without additional
compensation. The Regional Office shall provide administrative
support and structure to the Panel of Arbitrators.
As much as practicable, the members of the Panel shall
come from the different bureaus of the Department in the region.
The presiding officer thereof shall be selected by the drawing of
lots. His/her tenure as presiding officer shall be on a yearly basis.
The members of the Panel shall perform their duties and obligations
in hearing and deciding cases until their designation is withdrawn or
revoked by the Secretary.
401
The rules and regulations governing the litigation and
disposition of cases before the Panel of Arbitrators shall be
promulgated by the Mines Adjudication Board as provided for in
Section 207 hereof: Provided, That cases presently pending before
the different Panels may proceed in accordance with the rules
promulgated thereby.
402
with all supporting plans, documents, data and other documentary
evidences and affidavits of all witnesses.
The Panel shall render its decision within thirty (30) days,
after the submission of the case by the parties for decision.
CHAPTER XX
MINES ADJUDICATION BOARD/APPEALS
403
as members thereof. The Board shall promulgate its own internal
rules and regulations governing its administration and disposition of
appealed cases.
The Board shall resolve the appeal within thirty (30) days
from submission of the case by the parties for decision.
404
regulations as may be necessary to carry out
its functions;
b. To administer oaths, summon the parties to a
controversy, issue subpoenas requiring the
attendance and testimony of witnesses or the
production of such books, papers, contracts,
records, statement of account, Agreements
and other document as may be material to a
just determination of the matter under
investigation and to testify in any
investigation or hearing conducted in
pursuance of this Act;
c. To conduct hearings on all matters within its
jurisdiction, proceed to hear and determine
the disputes in the absence of any party
thereto who has been summoned or served
with notice to appear, conduct its proceedings
or any part thereof in public or in private,
adjourn its hearing at any time and place,
refer technical matters or accounts to an
expert and to accept his/her report as
evidence after hearing of the
parties upon due notice, direct parties to be
joined in or excluded from the proceedings,
correct, amend or waive any error, defect or
irregularity, whether in substance or in form,
give all such directions as it may deem
necessary or expedient in the determination
of the dispute before it and dismiss the
mining dispute as part thereof, where it is
trivial or where further proceedings by the
Board are not necessary or desirable;
405
d. To hold any person in contempt, directly or
indirectly, and impose appropriate penalties
therefor; and
e. To enjoin any or all acts involving or arising
from any case pending before it which, if not
restrained forthwith, may cause grave or
irreparable damage to any of the parties to the
case or seriously affect social and economic
stability.
CHAPTER XXI
GOVERNMENT SHARE IN MINERAL
AGREEMENTS/FTAAs
406
Section 212. Government Share in Mineral Production Sharing
Agreement
407
The Government share in an FTAA shall be negotiated by
the Government and the Contractor taking into consideration:
408
nearest Bureau of Internal Revenue (BIR) office where the
mining/contract area is located and in accordance with existing BIR
rules and regulations.
CHAPTER XXII
TAXES AND FEES
409
1. On all metallic minerals, a tax based
on the actual market value of the
gross output thereof at the time of
removal, in case of those locally
extracted or produced; or the value
used by the Bureau of Customs in
determining tariff and customs duties,
net of excise tax and value-added tax
in the case of importation in
accordance with the following
schedule:
410
of those locally extracted or
produced; or the value
used by the Bureau of Customs in
determining tariff and customs
duties, net of excise tax and value-
added tax in the case of importation.
411
The Secretary is authorized to increase the occupation fees
provided herein when the national interest and public welfare so
require, upon the recommendation of the Director.
Section 219. Manner and Place of Payment of Occupation Fees
The occupation fees shall be paid on the date the Mineral
Agreement/FTAA is registered with the appropriate office and on
the same date every year thereafter. It shall be paid to the Treasurer
of the Municipality/City where the onshore mining areas are
located, or to the Bureau in case of offshore mining areas. For this
purpose, the appropriate officer, (the Director for FTAAs or the
Regional Director for Mineral Agreements) shall submit to the
Treasurer of the Municipality/City where the onshore mining area is
located, a complete list of all onshore mining rights registered with
his/her office, indicating therewith the names of the holders, area
covered in hectares, name of Municipality/City and its provincial
location and date of registration. If the fee is not paid on the date
specified, the Contractor shall pay a surcharge of twenty-five
percent (25%) of the amount due in addition to the occupation fees.
412
onshore mining areas are located. In a chartered City, the full
amount shall accrue to the concerned City.
CHAPTER XXIII
INCENTIVES
413
Section 223. Availment of Incentives under EO 226, as Amended
Contractors can avail of fiscal and non-fiscal incentives
granted under EO 226, as amended, subject to their registration with
the Board of Investments (BOI) and compliance with requirements
provided for in the order and its rules and regulations. Exploration
Permittees registered with BOI can also avail of fiscal incentives
under EO 226, as amended, but only for the duration of the Permits
or effectivity of EO 226 as amended, whichever comes first. BOI
registration and enjoyment of incentives under said registration
shall be governed by the Investment Priorities Plan subject to the
provisions of EO 226, as amended, applicable rules and regulations
and future amendments thereof. The incentives availed of under
EO 226 shall be administered by BOI.
414
diagrams indicating their location and use in the operations. Such
report shall include the acquisition and installation cost of the
devices or infrastructure, the corresponding amount of tax
exemption availed of by the Contractor. If such devices and
infrastructure, after evaluation by the Bureau, were found necessary
and appropriate for the operations, the Director shall issue a
Certificate of Tax-Exemption covering the declared devices and
infrastructure for the purpose of availing of exemption from Local
Government taxes and assessment. The Director or his/her
representative shall monitor the utilization of these devices and
infrastructure in relation to the Contractor's operation to ascertain
that such are used for pollution control purposes.
415
operation of activity covered by such Agreement shall be
considered for purposes of availment of incentives on income tax-
carry forward of losses.
416
Late filing of application for availment of the incentive on
income tax-carry forward of losses shall incur a basic fine of one-
half percent (1/2%) of the amount of the net operating loss to be
carried over to applicable taxable year as provided for in Section 92
of the Act plus a daily fine of Five Pesos (=P5.00) but not to exceed
One Hundred Thousand Pesos (P=100,000) which shall be paid to
the Bureau.
417
This incentive may also be availed of for fixed assets
acquired before the date of the approval/conclusion of the Mineral
Agreement or FTAA, but only to the undepreciated portion of the
fixed assets.
418
Net Income from mining operations is defined as gross income
from operations less allowable deduction which are necessary or
related to mining operations. Allowable deductions shall include
mining, milling and marketing expenses, depreciation of properties
directly used in the mining operations: Provided, That such other
deductions allowed by the BIR can also be deducted to arrive at the
Net Income. This paragraph shall not apply to expenditures for the
acquisition or improvement of property of a character which is
subject to the allowances for depreciation.
419
granted to it and vice versa. It should then be a choice between
Income Tax Holiday or Income Tax-Carry Forward of Losses, with
the choice of the first availment governing the succeeding
availments. There shall be no switching of these two incentives
within the entire prescribed period within which the Contractor is
entitled to such incentives.
420
ensure that its obligations thereunder are
faithfully discharged;
b. Compliance with directives - The Contractor
shall comply with the directives and
instructions which the Bureau may issue
from time to time in pursuance of its
authority under the law;
c. Visitorial powers - The Contractor shall allow the
duly authorized representatives of the Bureau to
inspect and examine its books of accounts and other
pertinent records and documents to ascertain
compliance with the Act and its implementing rules
and regulations and the terms and conditions of the
Mineral
Agreement or FTAA;
d. Delinquent Contractors - No availment of incentives
may be allowed to a Contractor delinquent in
compliance with any of the terms and conditions of
the Mineral Agreement or
FTAA and/or with the terms and conditions
of registration with BOI as the case may
warrant, including submission of reports and
statistical data which may be required by the
Bureau and/or BOI; and
e. Activities not covered by the Mineral Agreement of
FTAA - The Contractor proposing to engage in
activities not covered by its Mineral Agreement or
FTAA shall install an adequate accounting system
segregating the investments, revenues, sales,
receipts, purchases, payrolls, costs, expenses and
profits and losses of its operations covered by
Mineral Agreement or FTAA from those which are
421
not covered; or the Bureau may, in appropriate
cases, require the establishment of a separate entity
for the activity covered by the Agreement in order to
facilitate the proper implementation of the Act.
422
d. Freedom from expropriation - There shall be
no expropriation by the Government of the
property represented by investments or loans
or of the property of the enterprise except for
public use or in the interest of national
welfare or defense and upon payment of just
compensation. In such cases, foreign
investors or enterprises shall have the right to
remit sums received as compensation for the
expropriated property in the currency in
which the investment was originally made
and at the exchange rate prevailing at the
time of remittance;
e. Requisition of investment - There shall be no
requisition of the property represented by the
investment or of the property of the
enterprises except in the event of war or
national emergency and only for the duration
thereof. Just compensation shall be
determined and paid either at the time of
requisition or immediately
after cessation of the state of war or national
emergency. Payments received as
compensation for the requisitioned property
may be remitted in the currency in which the
investments were originally made and at the
exchange rate prevailing at the time of
remittance; and
f. Confidentiality - Any information supplied
by the Contractor which have been agreed
upon by the parties in the negotiation as
confidential pursuant to the Act and these
423
implementing rules and regulations shall be
treated as such during the term of the project
to which it relates. However, the following
information shall not be classified as
confidential:
1. Production and sales of minerals;
2. Employment;
3. Royalty and tax payments;
4. Metallic and non-metallic reserves;
5. Operational parameters such as mining and
milling capacities and rates, mine and mill
recoveries, dilution factors, etc.; and
6. Other data as may be agreed upon by the
parties.
The term confidentiality refers only to
the act of divulging publicly any information
classified as such. It does not prevent the
Director or his/her representative(s) from
using the data internally within the Bureau
for monitoring and for policy, planning and
research studies. Documents not otherwise
covered by a valid confidentiality Agreement
between the concerned parties shall be made
available to the public upon the filing of an
appropriate request duly approved by the
authorized officer. Reproduction of such
documents shall be allowed upon
presentation of an approved written request
in sufficient form and payment of reasonable
fees.
CHAPTER XXIV
424
CANCELLATION, REVOCATION AND TERMINATION
OF A PERMIT/MINERAL AGREEMENT/FTAA
425
of the terms and conditions in the
Mineral Agreement or FTAA;
2. 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;
3. 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;
426
c. Refund and penalties - In case of cancellation
of the Mineral Agreement or FTAA, the
Bureau may in appropriate cases, recommend
to other incentive-dispensing agencies the
cancellation of registration without prejudice
to the imposition of the corresponding
penalties and refund of incentives availed of,
pursuant to the Act and these implementing
rules and regulations and under EO 226, laws
creating export processing zones and other
laws.
427
CHAPTER XXV
SURVEY OF PERMIT/CONTRACT/MINING AREAS
428
c. A notarized Survey Service Contract executed by
and between the Permittee/Contractor and the
deputized Geodetic Engineer, except when
the deputized Geodetic Engineer is employed
by the applicant and/or company interested
in the survey: Provided, That proof of
employment of the deputized Geodetic
Engineer is submitted;
d. Affidavit of the deputized Geodetic Engineer
representing that he/she can execute the survey of
the area and to submit the complete survey returns
thereof within the period prescribed by these
implementing rules and regulations;
e. A surety bond (Annex 5-A) for Order of
Survey, which shall be forfeited for failure of
the deputized Geodetic Engineer to execute
and/or comply with his/her obligations; and
f. Proof of payment of the required fees (Annex 5-A).
429
Section 236. Mineral Land Surveys
a. 20 cm x 20 cm x 50 cm concrete rectangular
monuments set 40 cm in the ground for
principal corners which fall on points with
exact minutes or half minute of latitude and
longitude; and
b. 15 cm in diameter x 50 cm long set 40 cm in
the ground for other corners of
the permit/contract or mining area.
430
corresponding corner numbers and survey numbers. The latitude
and longitude of the principal corners shall also be indicated on the
sides of the concrete monuments when they coincide with the full
one (1) minute and/or one-half (1/2) minute of latitude and
longitude.
When the permit/contract/mining area adjoins submerged
land, a witness corner monument along the boundary leading to the
shoreline shall be set on the ground to witness the boundary point-
corner of the mining rights at the mean low tide level of the sea or
lake. Concrete monuments, galvanized iron pipes, fixed rocks,
boulders or stakes and other monuments shall be set to define the
corners of the mining rights along the shoreline at mean low tide
level.
431
of Lands Surveys of the Philippines pursuant to Lands
Administrative Order No. 4 dated July 3, 1980: Provided, That
PRS-92 may be used in the execution of mineral land surveys
during the transition period (1993-2000) pursuant to the provisions
of Department Administrative Order No. 22, Series of 1994:
Provided, further, That reference points enumerated in Annex 25-B
can still be used if standardized and converted into PRS-92 subject
to implementing guidelines that may hereinafter be issued.
Section 238. Submission of Survey Returns
Survey returns shall be submitted to the Director/concerned
Regional Director within one (1) year from receipt of the Order of
Survey and shall consist of the following:
a. Duly notarized field notes with cover (MGB
Form No. 25-4) accomplished, signed and
sealed by a deputized Geodetic Engineer;
b. Azimuth computations from astronomical
observations (MGB Form No. 25-5),
topographic survey computations (MGB
Form No. 25-6), traverse computations
(MGB Form No. 25-7), area computations
(MGB Form No. 25-8), coordinate
conversion - geographic to grid (MGB Form
No. 25-9) and coordinate conversion - grid to
geographic (MGB Form No. 25-10) and
other reference computations, all in sets of
original and duplicate, properly
accomplished, signed and sealed by a
deputized
Geodetic Engineer;
c. Microfilm plan(s) in appropriate scale duly
accomplished with the corresponding
working sheet thereof;
432
d. Descriptive and field investigation report on
the permit/contract/mining area in
quintuplicate, duly signed by the deputized
Geodetic Engineer and authorized assistant,
if any, and duly notarized; and
e. A certification under oath by the Barangay
Captain that the survey was actually
undertaken in the locality.
433
Section 239. Withdrawal of Order of Survey
434
field verification of the subject area. Thereafter, the survey plan
shall be submitted to the Director/concerned Regional Director for
approval of the same within fifteen (15) working days from receipt
thereof.
435
Section 244. Priority Areas
436
Drilling equipment may be leased upon application by any
Qualified Person with the Director.
437
lessee has not violated any terms and
conditions of the original
Lease Agreement;
g. The Director or his/her duly authorized
representative shall see to it that the drill
machine pump and accessories are properly
used and maintained;
h. The Director or his/her duly authorized
representative may conduct an inspection of
the drilling operation at any time during the
term of the lease at the expense of the lessee;
i. The lessee shall pay the daily rental plus a
surcharge of 100% per day for failure to
return the leased equipment as stipulated in
the
Agreement;
j. The lessee has not violated any terms and
conditions of previous Lease Agreement; and
k. The violation of any terms and conditions of
the Lease Agreement shall be a ground for
cancellation of the same.
Section 249. Rights and Obligations of the Lessee
438
abnormal wear during the term of the lease. All
parts missing at the time the equipment is returned
shall be replaced within one (1) month from the
time such equipment are returned. For this
purpose, the lessee shall make the required cash
deposit. If the lessee returns the equipment in bad
condition and fails to restore them into running
condition or fails to replace the missing parts or
accessories within the allowable time, the lessor
shall use the cash deposit and/or forfeit the bond
without prior notice to the lessee to put the
equipment back into running condition or replace
any missing accessories. The lessee shall be
required to deposit additional cash to defray the
abovementioned expenses if the original cash
deposit for the purpose is insufficient;
c. Transportation of the drilling equipment and all its
accessories from the Bureau and return shall be for
the lessee's account;
d. The lessee shall submit monthly to the Director all
the information, data and footage obtained through
drilling which shall be treated as confidential.
Such information, however, shall be made
available to the public after a period of two (2)
years;
e. The lessee shall pay the required monthly rental
fee
(Annex 26-A);
f. To guarantee the faithful compliance with the
termsand conditions of the Lease Agreement and
to answer for any loss and/or damage of the
equipment during the term of the lease, the lessee
439
shall file with the Bureau the required surety bond
issued by a company accredited by the Insurance
Commission, which may either be in cash or with a
surety satisfactory to the Director;
g. The lessee shall pay in advance an amount
corresponding to two (2) months rentals and per
diems including transportation expenses of one (1)
driller upon the signing of the contract of Lease
Agreement. The rentals and per diems for
succeeding months shall be due and payable at the
beginning or the first day of every month;
h. Rentals not paid within thirty (30) calendar days
after they become due and payable shall bear a
surcharge of five percent (5%) per month until
fully paid. Rentals shall continue to be charged for
returned equipment not in running condition and
for accessories lost or missing until repaired and
replaced respectively; and
i. Balance of rentals and per diems paid and/or
depositsmade after termination of the lease shall be
applied to pending obligations of the lessee with
the lessor. Excess rentals or deposits shall be
refunded to the lessee.
Section 250. Receipts from Rentals
CHAPTER XXVII
440
FISCAL PROVISIONS AND SCHEDULE OF
PAYMENTS AND CHARGES FOR WORK
WHICH THE BUREAU MAY PERFORM
441
areas and make mineralographic, petrologic,
petrographic and paleontologic
examinations;
d. To verify and investigate mineral discoveries
and locations, exploration and development
work;
e. To perform fire and wet assays and smelting
and metallurgical tests of ores and to sample
ore piles for shipment;
f. To check and evaluate ore reserves for the
Securities and Exchange Commission, for
other Government entities and/or private
parties who may request or order for such
work;
g. To perform drafting or projection work;
h. To issue blue or white prints of survey plan
or sketch plan; and
i. To do such other work and/or service to
interested parties as may be requested and
which is within the scope of the functions of
the Bureau.
442
expenses, supplies and materials, sundry expenses and purchase of
furniture and equipment: Provided, That any balance in the payment
or charge left after the completion of the work requested may be
used by the Bureau/Regional Office in the maintenance of the work
force and equipment necessary to render the work or services
authorized in this order: Provided, further, That if the work is
discontinued due to some reasonable cause, whatever balance
remaining after deducting the expenses already incurred by the
Bureau/Regional Office in connection with the work, shall be
refunded by the Director/concerned Regional Director to the
applicant upon the latter's request.
443
Section 256. Services to Local Government Offices,
Instrumentalities or Agencies
For services or work requested by National or Local
Government offices, instrumentalities or agencies, the schedule of
payments and charges herein prescribed shall apply.
444
Section 260. Charges for Fieldwork, In General
445
CHAPTER XXVIII
RECORDING SYSTEM AND MINERAL GAZETTE
The Bureau and its Regional and other offices shall have a
Mining Recorder Unit in their respective offices to receive, record
and manage all mining documents submitted by concerned
individuals or companies relating to mining rights. However, same
unit may be established in Provincial Governor's/City Mayor's
Office.
Documents relating to applications for Mineral Agreements,
FTAAs, Exploration Permits and Small-Scale Mining Permits in
Mineral Reservations shall be registered at the Bureau.
446
b. Computation of fees to be paid by the
applicant;
c. Recording of mining documents;
d. Providing information and advice on the
status
of applications;
e. Inputting data relating to applications,
contracts and permits into the Mining Rights
Management
System;
f. Organizing and maintaining record holdings
on mining rights applications in accordance
with standard records management practices;
g. Issuing certifications and copies of mining
documents;
h. Follow-up compliance of requirements
needed in the processing of mining rights
applications; and
i. Projection/verification of area applied for
either through the mining rights management
system or control maps of the unit if free
from mining conflict.
447
a. Applications for mining rights:
1. Exploration Permits;
2. Mineral Agreements;
3.
4. FTAAs;
5. Quarry, Sand and Gravel, Guano,
Gemstone Gathering Permits; and
6. Small-Scale Mining Permits
1. Exploration Permits;
2. Mineral Agreements;
3. FTAAs;
4. Quarry, Sand and Gravel, Guano,
Gemstone Gathering Permits; and
5. Small-Scale Mining Permits
c. Miscellaneous Documents:
1. Powers of Attorney;
2. Deeds of Assignment/Transfer/
Conversion;
3. Operating Agreements;
4. Protests or Adverse Claims; and
5. All other instruments concerning or affecting
mining rights.
448
All applications for mining rights shall be recorded in their
corresponding mining register with the following information,
among others:
a. Application number;
b. Date and time of filing;
c. Applicant's/Proponent's name;
d. Location;
e. Area applied for in blocks/hectares;
f. Official receipt number; and
g. Amount paid.
For approved mining rights, the contract or permit number
and the Contractor's or Permit Holder's name should be recorded in
lieu of application number and applicant's/proponent's name,
respectively.
All miscellaneous documents shall be recorded in their
respective mining registers containing the following information:
a. Date and time of filing,
b. Document or application number,
c. Entity involved,
d. Document title,
e. Page number,
f. Book number,
g. Year series,
h. Amount paid and
i. Official receipt number.
449
Section 263. Administrative Fees relating to Mining
Registration
450
annual document inventory report which shall serve as a guide for
easy retrieval and reconstruction of file in case of loss.
451
shall plan and acquire an efficient and appropriate technology for
archiving these documents.
Section 266. Mineral Rights Management System
452
Section 267. Mineral Resources Database System
A mineral resources database shall also be established at the
Bureau and concerned Regional Office(s) to record all exploration
and related data from its own projects and those submitted by
mining rights holders to serve as repository of such information for
national and regional policy and planning studies, monitoring and
research purposes.
This database should be designed to be accessed by the mining
rights management system provided for in the previous Section and
other mining industry-related systems to be established or acquired
by the Bureau.
453
Section 269. Recording System and Publication Fund
CHAPTER XXIX
REPORTING REQUIREMENTS AND FINES
454
A Contractor or its operator or holder
of Mineral Processing Permit shall submit to
the
Director a sworn Monthly Report on
Production, Sales and Inventory of Metallic
Minerals and Employment as prescribed in
MGB Forms Nos. 29-1 to 29-9, whichever
mineral is applicable, within fifteen (15)
working days after the end of each calendar
month.
455
A holder of a Quarry Permit or its
operator shall submit to the Provincial
Governor/City Mayor, copy furnished the
Director and concerned Regional Director, a
sworn Quarterly Report on Production, Sales
and Inventory of Quarry Resources and
Employment as prescribed in MGB Form
No.
29-11 within fifteen (15) working days after
the end of each calendar quarter.
456
Regional Director, a sworn Monthly Report
on
Production, Sales and Inventory of Commercial
Sand and Gravel and Employment as
prescribed in MGB Form No. 29-13 within
fifteen (15) working days after the end of
each calendar month.
f. Quarterly Report on Production and Sales of
Small-Scale Metallic Mines and Employment
The holder of a Small-Scale Metallic
Mines Permit shall submit to the Provincial
Governor/City Mayor, copy furnished the
Director and concerned Regional Director, a
sworn Quarterly Report on Production and
Sales of Small-Scale Metallic Mines and
Employment as prescribed in MGB Form No.
29-14 for metallic minerals other than gold or
MGB Form No. 29-15 for gold mineral only,
within fifteen (15) working days after the end
of each calendar quarter.
457
Provincial Governor/City Mayor,
copy furnished the Director and the
concerned Regional Director, within two (2)
months after the end of each calendar year.
458
Operator shall submit to the Provincial
Governor/City Mayor, copy furnished the
Director and the concerned Regional
Director, a Quarterly Energy Consumption
Report using prescribed MGB Form No. 29-
18 within fifteen (15) working days after the
end of each calendar quarter.
459
Mineral Reserve/Resources Inventory Report
using the prescribed MGB Form No. 29-19,
on or before the end of the first quarter of
each calendar year.
The Contractor/Permittee/operator
may submit other types of mineral reserve
report provided that the required information
data contained in the said form must be
included in their report.
k. Monthly General Accident Report
460
l. Monthly Explosive Consumption Report
461
Form No. 29-20 within thirty (30) calendar
days after the end of each calendar quarter.
462
Permits, the Provincial Governor/City Mayor
shall be promptly notified in writing before
implementation of any mine suspension or
mine closure.
463
2nd Violation 3,000.00 30.00 3rd Violation
and 5,000.00 50.00
subsequent violations
464
- MGB Form No. 29-14
- MGB Form No. 29-15
- MGB Form No. 29-17
- MGB Form No. 29-18 b. Regional Director- MGB Form
No. 29-10
CHAPTER XXX
TRANSITORY AND MISCELLANEOUS PROVISIONS
465
with the applicable provisions of these implementing rules and
regulations.
466
Local Government Unit shall be endorsed to the concerned
Regional Office for its processing, evaluation and approval.
Section 273. Recognition of Valid and Existing Mining Claims and
Lease/Quarry Applications
467
the provisions of the Act) to any provision of these implementing
rules and regulations with the end in view of ensuring that the Act is
appropriately implemented, enforced and achieved.
Section 276. Effectivity
VICTOR O. RAMOS
Secretary
468