MGB IV-A IEC CAMPAIGN

Environmental Provisions
of
DAO 2010-21,
the Revised Implementing Rules and Regulations
of R.A 7942, otherwise known as the Philippine
Mining Act of 1995

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STAGES OF MINING OPERATIONS

EXPLORATION

LIFE
MINE OF CONSTRUCTION/
DEVELOPMENT
CLOSURE
MINE

COMMERCIAL
OPERATIONS

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 ENVIRONMENTAL
PROTECTION FOR EVERY
STAGE OF MINING
OPERATION
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Exploration Stage

Environmental Work Program (EWP)

1. Description of exploration works;
2. Identification of potential environmental effects on
land, water, ecology and community;
3. Environmental management measures which
include rehabilitation of explored areas,
maintenance of roads and campsite and drill site
rehabilitation

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Exploration Stage

Drill site Rehabilitation: Drill holes are covered with

Concrete and PVC fitting

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Exploration Stage

Campsite Rehabilitation: Stabilization of road side

Campsite Rehabilitation: Slope Stabilization on the

drilling area
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Development and Production Stage

Environmental Protection and
Enhancement Program (EPEP)
• Description of the expected and considered acceptable impacts and life-of-
mine environmental protection and enhancement strategies;
• Statement on post mining land-use potential for various types of disturbed
lands;
• Implementation schedules, system of environmental compliance guarantees,
monitoring, reporting and cost provisions.

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ANNUAL ENVIRONMENTAL PROTECTION AND ENHANCEMENT PROGRAM

• AEPEP shall be based on the approved EPEP and shall be

implemented during the year for which it shall be submitted.
• Submitted at least thirty (30) calendar days prior to the
beginning of every calendar year.
• Cost to implement the Annual EPEP:
- 3-5% of the Direct Mining and/or Milling Cost

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Mine Closure
FINAL MINE REHABILITATION AND
DECOMMISSIONING PLAN (FMRDP)
• It considers all mine closure scenarios and shall contain cost
estimates for the implementation of mine closure activities
such as removal of infrastructures, rehabilitation of disturbed
areas, maintenance and monitoring and the eventual
relinquishment of the area.

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Where do we get
rehabilitation and
monitoring funds
funds?

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Establishment of
Contingent Liability and
Rehabilitation Fund
An environmental guarantee fund mechanism to
ensure progressive and sustainable rehabilitation of
the effects of mining operation;

It shall be in the form of Mine Rehabilitation Fund,

Mine Waste and Tailings Fee, Environmental Trust
Fund and Final Mine Rehabilitation Fund
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What is CLRF
An environmental guarantee fund mechanism to
ensure progressive and sustainable rehabilitation of
the effects of mining operation;

It shall be in the form of Mine Rehabilitation Fund,

Mine Waste and Tailings Fee, Environmental Trust
Fund and Final Mine Rehabilitation Fund

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Components of CLRF
 Mine Rehabilitation Fund
 Mine Waste and Tailings Fee
 Final Mine Rehabilitation and Decommissioning Fund
 Environmental Trust Fund

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MINE REHABILITATION FUND

An environmental deposit to ensure availability of funds

for the satisfactory compliance with the commitments
under the EPEP/ AEPEP and in the physical and social
rehabilitation of areas and communities affected by the
mining activities;

Shall be deposited in a government depository bank

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MINE REHABILITATION FUND

REHABILITATION CASH MONITORING TRUST

FUND (RCF) FUND (MTF)
10% of the total amount Maintained at
to implement the EPEP or Php150,000.00
5M whichever is lower

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Rehabilitation Cash Fund

 10% of the EPEP cost or 5M whichever is
lower;

 Shall be established in a government

depository bank in four (4) equal quarterly
instalments after the approval of the EPEP;

 Shall be replenished annually to maintain

the minimum requirement
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Monitoring Trust Fund

Php150,000.00;
 Shall be established in a government depository bank;

 Shall be for the exclusive use in the monitoring program

approved by the MRFC which include among others the
maintenance and operating budget for transportation/travel,
cost of laboratory analysis, communication services,
consultancy works;

 Shall be replenished quarterly

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Final Mine Decommissioning and

Rehabilitation Fund (FMR/DF)
A FMR/DF shall be established by each operating Contractors/Permit
Holder o ensure that the full cost of the approved FMR/DP is accrued
before the end of the operating life of the mine. The FMR/DF shall be
deposited in a government depository bank and shall be used solely
for the implementation of the approved FMR/DP.

Annual Cash Provision shall be made based on the following formula:

Annual Provision = Cost of Implementing the Approved FMR/DP x

Percentage Required Per Table 1

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MGB IV-A IEC CAMPAIGN
Table 1. Schedule of Annual Cash Provisions to the FMR/DF
Operating Mine Life (in years)
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

E
X 1 YEAR 1.000
P
E 2YEARS 1.000
C
T 3 YEARS 0.500 0.500
E
D 4 YEARS 0.556 0.333 0.111

M 5 YEARS 0.437 0.313 0.187 0.083

I
N 6 YEARS 0.437 0.313 0.187 0.063
E
7 YEARS 0.367 0.300 0.180 0.123 0.030
L
I 8 YEARS 0.367 0.300 0.173 0.102 0.030 0.028
F
9 YEARS 0.367 0.300 0.153 0.092 0.040 0.028 0,020
E
10 YEARS 0.285 0,225 0.177 0.163 0.095 0.055 0.020
(
Y
R 11 YEARS 0.285 0.225 0.177 0.157 0.090 0.050 0.020 0.016
S
) 12 YEARS 0.285 0,225 0.177 0.147 0.088 0.050 0.020 0.016 0.012

13 YEARS 0,207 0.180 0.150 0.130 0.100 0.080 0.063 0.050 0.030 0.010

14 YEARS 0.207 0.180 0.150 0.130 0.100 0.080 0.063 0.050 0.030 0.010

15 YEARS 0.207 0.180 0.150 0.130 0.100 0.080 0.063 0.050 0.020 0.010 0.010

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ENVIRONMENTAL TRUST FUND (ETF)

Used to pay for damages not compensable by the Mine

Waste/Tailings Fees, i.e, damages resulting from the
operation of pier, power plant, etc.

Established through a Memorandum of Agreement

between MGB and EMB dated April 1999.

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Contingent Liability and Rehabilitation Fund

(CLRF)

ENVIRONMENTAL MINE MINE WASTES AND FINAL MINE

TRUST FUND (ETF) REHABILITATION TAILINGS FEE REHABILITATION
Minimum of FUND (MRF) RESERVED FUND AND
Php50,000.00 (MWTF) DECOMMISSIONING
Php0.050/MT of mine FUND (FMRDF)
waste (amount equivalent to
Php.0.10/MT of mill the cost of
tailings implementing the
FMR/DP)

REHABILITATION CASH MONITORING TRUST

FUND (RCF) FUND (MTF)
10% of the total amount to Maintained at
implement the EPEP or 5M Php150,000.00
whichever is lower

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Creation of the Mine

Rehabilitation Fund
Committee

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Mine Rehabilitation Fund Committee

• Shall conduct preliminary evaluation on the submitted EPEP;
• Manages and monitors the safety of the of the Mine
Rehabilitation Funds and FMRDF;
• Resolves issues involving the progressive mine rehabilitation
programs implemented;
• Hires credible experts to do independent studies and research
on environmental and engineering aspects of the project; and
• Deputizes the Multipartite Monitoring Team which will serve
as the monitoring arm of the MRFC.

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Mine Rehabilitation Fund Committee

The MRFC shall be composed of the following:
a. Regional Director of MGB as Chair;
b. Regional Director of the DENR as Co-Chair;
c. Regional Director of EMB as Member
d. Representative from the LGU as Member;
e. Representative from the local NGOs and community
organizations, including People’s Organization, church or
civic organizations as Member;
f. Representative of the Contractor/Permit Holder as
Member.

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MULTIPARTITE MONITORING TEAM

-MONITORING ARM OF THE MINE REHABILITATION FUND
COMMITTEE

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COMPOSITION OF THE MULTIPARTITE MONITORING TEAM

• Representative from MGB Regional Office, as Head

• Representative from DENR Regional Office
• Representative from EMB Regional Office
• Representative from an Environmental NGO/PO
• Representative from the Affected Community
• Representative from the Mining Company
• Representative from Indigenous Cultural Community/ies, (ICC), if
any

 Department of Environment and Natural Resources

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COMPOSITION OF MMT ACCORDING TO NEW DAO 2015-02

• Representative from EMB Regional Office, as Head

• Representative from MGB Regional Office
• Representative from DENR Regional Office
• Representative from an Environmental NGO/PO
• Representative from the Affected Community
• Representative from the Mining Company
• Representative from Indigenous Cultural Community/ies, (ICC), if
any

 Department of Environment and Natural Resources

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MGB IV-A IEC CAMPAIGN

Parameters Monitored Under AEPEP

Siltation Control Measure

Reforestation
Air Quality/Dust Control Measures
Mine Slope Stability
Dumpsite/Stockpile Management
Safety and Housekeeping
Information, Education, Communication Campaign

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Settling Ponds
Check Dams
Collector Sumps
Drainage Canals
Siltation Control System

30
MGB IV-A IEC CAMPAIGN
Siltation Control

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Tree Planting/ Reforestation

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Tree Planting/ Reforestation

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Quarry Slope Stability

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Slope Stabilization

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Rehabilitation of Mined-out Areas

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Safety and Housekeeping

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Social Development and Management Program

• To assist in the development of the host

and neighboring communities in the area
of infrastructure, health, livelihood,
education and culture;
• To develop a program for the advancement
of mining technology and geosciences as
well as Information, Education and
Communication campaign (IEC)
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Social Development and Management Program

• 1.5% of the total Operating Cost

 75% of which will be utilized in the
implementation of the SDMP
 10% will be used in the development
of mining technology and
geosciences
 15% will be used in the
implementation of IEC campaign

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Culture and Arts
Livelihood
MEDICAL MISSIONS
MEDICAL MISSIONS
MGB IV-A IEC CAMPAIGN

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