SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SEN ATE 
4. ~J 
S.B.No. __ _ 
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Introduced by Senator Sergio Osmena III 
EXPLANATORY NOTE 
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Industrial peace and stability are essential elements for inclusive economic 
growth and a major challenge facing the extractive industry today. 
In 1994, our country had about 7 billion metric tons in metallic mineral reserves 
and 50 billion metric tons in non-metallic reserves. Of the 9 million hectares of mineral 
resources (about 30% of the total land area of 30 million hectares), less than 0.5 million 
hectares are under exploration or development Because these resources are still to be 
fully tapped, mining operations have been escalating. 
The mineral resources are located within our lands or under our seas, which are 
also rich in other living or non-living resources that protect us and preserve life - water, 
forest covers, watersheds. These resources also sustain economic aqtivities like 
farming, eea-tourism, 'and fishing. Moreover, the lands also have CUltural, historical or 
ecological values. that are not easily measured in monetary terms or are even beyond 
pecuniary estimation. 
Since any mining operation necessarily involves the alteration of the land or the 
seabed, people who use the land or sea for settlement and livelihood are likely to be 
displaced by it 
The benefits derived from mining must therefore be balanced against its costs on 
people and the environment 
Since the enactment of the Philippine Mining Act of 1995 (RA 7942), which 
institutes a new system of mineral resources exploration, development, utilization, and 
conservation, and the Small-scale Mining Act of 1991 (RA 7076), which regulates small 
scale mining at the local level, significant developments have been observed: 
a. Extraction mining is a low job-generating activity, Average employment 
contribution over the years is only about 1/3 of 1 % of total employment. As of 
October 2009, mining and quarrying jobs numbered a scant 169,000. 
b. Mining has become one of the most contentious social justice issues. Farmers, 
farmworkers, indigenous peoples and fisherfolks live in the areas where 
minerals are usually located. Mining those minerals threaten or endanger their 
health, food supply, livelihood, culture and the integrity of their ancestral 
domains, Often, they are forced into situations of conflict among themselves or 
with the miners. 


c. Vulnerability of persons and communities to geohazards and' climate change 
impacts is significantly increased by presence of mining operations. The series 
of environmental calamities and disasters that many of us are still trying to 
cope with are glaring examples. 
i 
d. While mining is not the principal cause of denudation, it is certainly a major 
contributor to deforestation, which has reached the "irreversible" stage since 
only 3%-6% of old growth forest is left or 18%-23% of forestland including 
second-growth or reforested areas. In contrast, there is greater value earned 
from not cutting our trees to get minerals - the carbon sink value of our forests. 
It is estimated that the carbon sink value in a future carbon market of the 
Palawan forests is about P140 billion. 
e. From 2001 to 2005, the mining and quarrying sector contributed only within a 
range of 1.0% (in 2001) to 1.7% (in 2005) of COP, as observed in an ADB 
study. In 2006, its overall contribution to COP was 1.5%. 
f. From 2000 to 2009, the contribution of mining excise taxes (large-scale, small 
scale, non-metallic) to total excise tax collections was minimal at about 0.7%. 
Mining excise taxes relative to total BIR collections was even smaller at 
0.07%; 
g. The government receives only 2% excise tax share in mining production 
sharing agreements and, from 1997 to 2007, realized only 7.5% of the 
production value of mining. Among the causes is the redundant tax incentive 
scheme. 
h. There has been an anomalous discrepancy between exports and reported 
production values of minerals amounting to more than P277 Billion from 2000 
to 2009. Likewise, there has been a wide gap between potential excise taxes 
and actual tax collections - about P7.8 Billion over the same period. 
i. There is no consolidated data across government agencies on foreign 
exchange inflows and outflows to get accurate picture of the net foreign 
exchange benefits derived, if any. Large-scale mining typically cites gross 
investment inflows and export proceeds but do not include data on the foreign 
exchange outflows. Since they are allowed to recover and repatriate all pre-
operating costs (including investments) up to 5 years, the net flows are likely to 
be about only even. As for export proceeds, mining operations u?ually front-
load product'ion during the first five years, which happens to coincide with their 
tax exemptions. Profit remittance can, thus, be considerable. 
J. 
After 50 years of mining in our country, the industry is still extract-and export-
ore activity and there is no significant industrialization footprint. The backward 
linkages of mining is .46 or less than half of other industries and the forward 
linkages is a low .82 which does not put mining in "enough value adding 
activity" to merit priority. Mining has never played a major role in our 
development, even during the mining boom of the seventies and early eighties. 


In order to address the challenges facing the mining industry, this measure is 
being proposed. It seeks to provide a framework for the utilization and management of 
the country's mineral resources that addresses the needs of the domestic economy and 
upholds the rights of all stakeholders involved, including the workers, farmers, 
indigenous peoples and the local or host communities. 
I/.~ ~ 
iERGIO OSMENA III 
Senator 


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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
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JIL< 
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SENATE 
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S. B. No. 
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Introduced by Senator Sergio Osmeiia III 
AN ACT 
TO REGULATE THE RATIONAL EXPLORATION, DEVELOPMENT AND 
UTILIZATION 
OF 
MINERAL 
RESOURCES, 
AND 
TO 
ENSURE 
THE 
EQUITABLE SHARING OF BENEFITS FOR THE STATE, INDIGENOUS 
PEOPLES AND LOCAL COMMUNITIES, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Republic of 
the Philippines in Congress assembled: 
CHAPTER 1. DECLARATION OF POLICIES 
SECTION 1. Short Title. This Act shall be known as the "Philippine Mineral 
Resources Act of 2013". 
SEC. 2. - Declaration of Policy. It is hereby declared the policy of the State to: 
a) Maintain peace and order, protect life, liberty and property and promote 
the general welfare; 
I 
b) Advance the medium- and long-term needs of the Philippines; 
c) Encourage the advancement of the industry's technology with emphasis 
on existing indigenous knowledge, research and development; 
d) Protect and advance the right of the people to a balanced and healthful 
ecology in accord with the rhythm and harmony of nature; 
e) Value the dignity of every human person and guarantees full respect 
for human rights; 


f) Promote social justice in all phases of national development; 
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g) Recognize and promote the rights of indigenous cultural communities 
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within the framework of national unity and development and protect the 
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right to self- determination of the indigenous and Mora peoples; 
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h) Protect and promote the right to health of the people and instill health 
6 
consciousness among them; 
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i) Pursue an independent foreign policy. In its relations with other states 
8 
the paramount consideration shall be national sovereignty, territorial 
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integrity, national interest, and the right to self-determination; 
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j) Develop a self-reliant and independent national economy effectively 
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controlled by Filipinos; 
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k) Ensure the autonomy of local governments; 
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I) Give highest priority to the enactment of measures that protect and 
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enhance the right of all the people to human dignity, reduce social, 
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economic, and political inequalities, and remove cultural inequities by 
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equitably diffusing wealth and political power for the common good; 
17 
m) 
Encourage 
non-governmental, 
community-based, 
or 
sectoral 
18 
organizations that promote the welfare of the nation; and 
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n) Adopt and accept the generally accepted principles as embodied in the 
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International Covenant on Civil and Political Rights, International 
21 
Covenant on EconomiC, Social, Cultural Rights, UN Declaration on the 
22 
Rights of Indigenous Peoples, UN Convention on Biodiversity and 
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other international accords on human rights, labor rights, the rights of 
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women and children, and the protection and preservation of the 
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environment, of which the State is a party. 
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SEC. 3. Mining is vital to nation building and the economic advancement of our 
27 
people. The mineral industry plays an essential role in establishing a progressive, 
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independent and self reliant economy. 
2 


The State shall formulate a National Industrialization Program pursuant to the 
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principles 
of agncultural 
modernization, 
development 
of industrial 
and 
3 
manufacturing industries, and rational, sustainable, and equitable development of 
4 
the national economy. Pursuant to the foregoing, the State shall implement a 
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Mineral Management Plan that provides the framework for the utilization and 
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management of the country's mineral resources, which will address the needs of 
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the domestic economy and upholds the rights of industry workers, indigenous 
8 
peoples and local communities. 
9 
SEC. 4. The judicious stewardship of our mineral resources, as well as its 
10 
exploration, development and utilization shall comply with the following 
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principles: 
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a) The current export-orientation of mining is hereby reversed and a 
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domestic needs-based development of the industry shall be pursued 
14 
by the State as a step towards achieving genuine economic 
15 
development; 
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b) The mi(1ing industry shall be geared towards national indust(ialization 
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and shall be built for the production of raw materials such as base 
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metals, basic chemicals and petrochemicals needed by the basIc, 
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medium and heavy industries to produce as much consumer, 
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intermediate and capital goods With the country's stock of finite minerai 
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and non-mineral industrial raw materials and in the process provide 
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jobs to the country's vast human resources; 
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c) The community shall actively participate in the stewardship of mineral 
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resources. Community-based initiatives shall be encouraged and 
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supported; 
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d) The State and its members shall develop its human resources and 
27 
encourage the evolution of its own appropriate technologies. The State 
3 


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shall provide the appropriate support and protection to Filipino 
2 
corporations to further develop and increase their participation in the 
3 
industry; All mining industry investments shall be mutually-beneficial 
4 
and help achieve the specific target and goals of the National 
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Industrialization Program. To come up with the large capital 
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requirement for mining, the State must use local sources such as but 
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not limited to the granting of incentives and financial aid to lodl private 
8 
sector investors, re-channeling of government budget allocations for 
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foreign debt payments and military expenditures, and the proceeds 
10 
from the government shares of the Malampaya Natural Gas Project; 
11 
e) The State shall allow, in exceptional cases, foreign corporations to 
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invest in the mineral industry. Based on the National Industrialization 
13 
Program and the country's capability and capacity, the government 
1-1 
must identify the mineral areas where foreigners can help and invest 
15 
subject to rigorous screening and strict regulations as provided in this 
16 
Act and related laws. The participation of foreign companies in the 
17 
critical stages of minerals extraction and processing shall be in 
18 
accordance with a mandatory program or agreement for technology 
19 
transfer and equity shares that do not exceed 40 percent of the full 
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capital requirements; 
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Provided, that capital accumulation and reinvestment within the country 
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shall be primarily encouraged over profit repatriation by the foreign 
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companies and that foreign mining corporations, their principals, local 
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firms and conduits that have a bad track record in the Philippines are 
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banned from investing in the country; 
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f) In land and water use, the production of sufficient food free from 
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pollution towards food security shall always be the priority; 
4 


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g) Long-term mining development shall be programmed by the State in 
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accordance with the country's availability of resources, capability and 
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well being of the people, technological capacity and people's 
4 
acceptability. The right of Muslim Filipinos and indigenous peoples to 
5 
self-determination and ancestral domain shall be recognized and their 
6 
collective property rights are guaranteed by this Act; 
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h) Job security, adequate wages, benefits, and safe working conditions 
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for mine workers shall be ensured in state and privately owned mining 
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corporations. Their right to organize and form their own associations, 
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to collective bargaining and to strike shall be upheld. The state will 
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strictly prohibit forced and child labor in the industry; 
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i) Small-scale mining operations shall be supported and regulated by the 
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state. The state will encourage the formation of cooperatives among 
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small-scale miners and provide financial and technical support to 
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develop the labor-intensive and upgrade the backward technol~gies into 
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a more efficient and less environmentally destructive mining I process. 
\? 
Whenever small- scale mining are stopped, alternative and sustainable 
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livelihood shall be provided to the small-scale miners. 
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j) Mining operations shall not in any way create or exacerbate conflicts. 
20 
In no instance shall the Armed Forces of the Philippines (AFP), the 
21 
Philippine National Police (PNP) and private security and paramilitary 
22 
groups be used to coerce or force the entry and protection of mining 
23 
operations; 
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k) Mining industry research and development shall focus on harnessing 
25 
more economically-
efficient and less environmentally-destructive 
26 
methods. The advanced technologies from other countries that are 
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proven to be appropriate locally shall be adopted in the industry; 
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I) All mining operations shall be strictly regulated to ensure the domestic 
processing of mineral ores up to the secondary and tertiary stages of 
industrial production to develop our own basic and medium industries. 
Recycli~g programs and substitution in the use of minerals ishall be 
incorporated in the overall plan of mining development to redl!lce mine 
waste and pollution, and mining rehabilitation techniques. Indigenous 
. technologies that are relevant and appropriate, particularly with respect 
to the domestic processing of minerals shall be promoted, harnessed, 
expanded and upgraded; 
m) The State and its members shall share in the burden of satisfying the 
need for mineral resources primarily through reusing and recycling 
existing mineral products. Ecologically-sound practices at all stages of 
mining shall be promoted Mining technologies such as open-pit mining 
and submarine mine tailing disposal methods that are banned abroad 
and/or proven inappropriate in countries like the Philippines must all be 
banned. Environmental standards shall be set to ensure the protection 
and efficient utilization of the country's mineral resource base. 
Ecological considerations in mining development shall be given due 
emphasis and attention to substantially eliminate destructive effects 
that certain mining industrial processes might have on the people's 
health and the environment. Monitoring mechanisms with strong 
participation from the local communities will be instituted; 
n) Mining in environmentally-critical areas such as small island 
ecosystems, 
i 
primary forests and watersheds shall be banned. 
Dumping of mine wastes and tailings to rivers, lakes and seas are 
prohibited; The integrity of the environment shall not be compromised; 
and 
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0) Areas affected by mining shall be rehabilitated, including abandoned 
2 
mines. Violators shall be strictly punished and made to pay heavy 
3 
compensation to the State and the affected communities; 
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SEC. 5. 
The exploration, development and utilization of natural resources 
5 
must comply with the principles of intergenerational responsibility. 
6 
CHAPTER II. SCOPE AND GENERAL PRINCIPLES 
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SEC. 6. Scope. This Act shall govern the ownership, management and 
8 
governance of both metallic and non-metallic ore minerals onshore and offshore, 
9 
as well as quarry resources, sand and gravel, guano, and gemstones" and the 
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conservation, exploration, development, utilization, processing and transportation 
11 
thereof. The ownership, management and governance of petroleum, natural gas 
12 
and coal shall be governed by special laws. Offshore mining shall also be 
13 
governed by special laws. 
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This Act shall cover onshore and offshore, large-scale and small-scale mining 
15 
operations in the country, including mining projects in ancestral domains in 
16 
accordance to the existing national and international policies on our indigenous 
17 
peoples. 
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SEC. 7. Ore minerals form part of the country's irreplaceable and non-renewable 
19 
natural wealth and capital. The conservation of our mineral wealth is a 
20 
paramount public interest and mineral resources shall be utilized only in a 
21 
rational manner for national and local development as specified by law and the 
22 
National Industrialization Program and the Mineral Management Plan. The 
23 
economic benefits derived from mining shall be equitably distributed by, among 
7 


others, prioritizing development for local communities and all other stakl'holders 
2 
directly affected by mining operations. 
3 
SEC. 8. The State shall have primary role, responsibility and concern in the 
4 
management, conservation, utilization, and development of the mining industry 
5 
and shall ensure the peoples participation in policy making and implementation of 
6 
the same at all levels of government. The management of mineral resources 
7 
shall be a shared concern and responsibility among the national government, 
8 
corporations, all levels of local government, and the communities affected by the 
9 
exploration, development, and utilization of mineral resources. 
10 
SEC. 9. The State shall accord support to communities dependent on small-scale 
11 
mining whose operations shall strictly adhere to the provisions of this law. 
12 
SEC. 10. Subject to their right to self-determination, indigenous cultural 
13 
communitieslindigenous peoples (ICCsIIPs) own and have the responsibility to 
14 
manage the mineral resources in their respective ancestral domains, free from 
15 
external manipulation, interference, force threat, intimidation, coercion and other 
16 
analogous acts. The State shall support indigenous cultural communities in 
17 
developing capacities to effectively exercise their right and responsibility. 
18 
SEC. 11. Mining shall be limited in scale in accordance with this Act. 
19 
SEC. 12. Mineral resources development, utilization and processing shall be 
20 
reserved for Filipino citizens and for Filipino corporations. Exploration shall be 
21 
undertaken directly by the State for the benefit of the nation. 
8 


SEC. 13. Remining and recycling of mineral resources shall be prioritized over 
2 
the opening of new mines to maximize and recover the remaining minerals 
} 
resources from the rejects or wastes of previous mines and mining operations. 
4 
SEC. 14. The State shall prioritize the rehabilitation of the abandoned mines in 
5 
the country. The State shall ensure the fullest compliance of all government and 
6 
corporate entities in and on the closure of mines, the rehabilitation/restoration of 
7 
the immediate environs or each mining project/activity in the country as provided 
8 
by law. 
9 
SEC. 15. The State shall encourage and support Filipino private corporations and 
10 
mining cooperatives to participate and invest in the mining industry on mutually-
11 
beneficial grounds that will push forward the National Industrialization Program in 
12 
both small-scale and large-scale projects. 
13 
SEC. 16. Mineral resource extraction shall be allowed based on the Philippine 
14 
Government's National Industrial Plan. The sharing of profits from mining 
15 
activities, including the anticipated environmental and social costs on the affected 
16 
local communities of each mining project, should far outweigh ecological and 
17 
social benefits and costs from other land uses. The anticipated cost of 
18 
environmental and social impacts on the affected local communities, which shall 
19 
at all times be prevented and/or mitigated through the allocation of sufficient 
20 
funds for this purpose. In mining projects with foreign participation, a just return 
21 
of investment scheme for the foreign entrants into the industry shall be 
22 
prescribed by law. 
23 
SEC. 17. The State shall prioritize the development of mineral resources needed 
24 
for national development and the creation of domestic processing capacity for 
25 
industrial metals, ,the integration of agricultural modernization and other labor-
9 


intensive downstream industries. Mine planning shall be conducted to meet this 
2 
principle. The National Industrial Plan shall support national development based 
3 
on the principles of sustainable development and modernization of its economic 
~ 
base. This framework will define minerals to be extracted, volume to be extracted 
5 
and when to be extracted. This shall be matched with the approved mining areas 
6 
as identified by the Councils. These matched areas are eligible for mining 
7 
operations. 
8 
CHAPTER III. DEFINITION OF TERMS 
9 
SEC. 18. Definition of terms. As used in and for the purposes of this Act, the 
10 
following terms, whether used in singular or in plural form, shall mean: 
11 
a. Abandonment - the act of the contractor leaving a mine without 
l2 
rehabilitating the affected areas or completing such rehabilitation despite 
13 
the legal obligation to do the same; 
14 
b. Acid mine drainage - the dissolution, mobilization and transportation of 
15 
toxic metals from rocks resulting from the chemical reaction of (he acid-
I 
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generating minerals in rock and waste materials having high permeability 
17 
to both air and rainfall and other water inflows when land is opened up for 
18 
mining and initiates the chemical reaction, resulting to a perpetual 
19 
machine of acid generation; 
20 
c. Ancestral domains - all areas generally belonging to Indigenous 
21 
cultural communities/indigenous peoples (ICCsIIPs) comprising lands, 
22 
inland waters, coastal areas, and natural resources therein, held under a 
23 
claim of ownership, occupied or possessed by ICCsIIPs, by themselves or 
24 
through their ancestors, communally or individually since time immemorial, 
25 
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continuously to the present except when 
interrupted by war, force 
majeure or displacement by force, deceit, stealth or as a consequence of 
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government projects or any other voluntary dealings entered into by 
government and private individuals/corporations, and which are necessary 
to ensure their economic, social and cultural welfare. It shall include 
ancestral lands, forests, pasture, residential, agricultural, and other lands 
individually owned whether alienable and disposable or otherwise, hunting 
grounds, burial grounds, areas of worship, bodies of water, mineral and 
other natural resources, and lands which may no longer be extlusivelY 
, 
occupied by ICCslIPs but from which they traditionally and historically had 
access to for their subsistence and traditional activities, particularly the 
home ranges of ICCslIPs who are still nomadic and/or shifting cultivators 
d. Ancestral lands -
lands occupied, possessed and utilized by 
individuals, families and clans who are members of the ICCs/IPs by 
themselves or through their predecessors-in-interest, under claims of 
individual or traditional group ownership, continuously, to the present 
except when interrupted by war, force majeure or displacement by force, 
deceit, stealth, or as a consequence of government development 
aggression projects and other voluntary dealings entered into by 
government and private individuals/corporations including, but not limited 
to, residential lots, rice terraces or paddies, private forests, swidden farms 
and tree lots; 
e. Beneficiation - a process wherein a large fraction of the waste 
material is removed from the mineral ore; 
f. Buffer Zones -
identified areas outside the boundaries of and 
immediately adjacent to deSignated protected areas deSignated by law 
that need special development control in order to avoid or minimize harm 
to the protected area; 
g. Bureau - the Mines and Geosciences Bureau under the Depar.tment of 
Environment and Natural Resources; 
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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. The term shall also 
include arefls which are traditional human settlements, land-usesl or sea-
uses which are representative of a culture/cultures, or human inferaction 
with the environment especially when it has become vulnerable under the 
impact of irreversible change; 
p. Critical habitats - place or environment where species or subspecies 
naturally occur or has naturally established its population that are crucial 
to the survival of a species and essential for its conservation; 
q. Cultural sites - those that bear a unique or at least exceptional 
testimony to a cultural tradition or to a civilization which is living or which 
has disappeared or, directly or tangibly associated with events or living 
traditions, with ideas, or with beliefs, with artistic and literary works of 
outstanding universal significance; 
r. Customary laws - body of written and/or unwritten rules, usages, 
customs and practices traditionally recognized, accepted and observed by 
respective ICCslIPs and local communities; 
s. Decommissioning - the activity or process that begins after cessation 
of prospecting activities or mineral production (including metallurgical plant 
production). 
It involves, among others, the removal of unwanted 
infrastructure, making excavations and waste repositories safe and stable 
and surface rehabilitation with a view to negate or minimize any adverse 
, 
I 
environmental impacts remaining after cessation of mineral prod,uction. It 
includes the after-care or maintenance that may be needed. 
t. Downstream industries - are mining activities that cover minerals 
proceSSing, refining, manufacturing of intermediate and capital goods and 
marketing of such; 
13 


u. Ecological profile or eco-profile - geographic-based instruments for 
2 
planners and decision-makers which present an evaluation of the 
3 
environmental quality and carrying capacity of an area and measures the 
4 
specific interactions that will be affected by any and all mining operations; 
5 
v. Exploration - covers the methods of searching or prospecting for 
6 
mineral resources by non-invasive means for the purpose of determining 
7 
the existence, extent, quantity and quality thereof, which may include but 
8 
not limited to seismic, gravity, magnetic, electromagnetic, radar, induced 
9 
polarization, radio-wave and electro geochemical; 
10 
w. Extraction - ore-removal activities that take place at the mine site 
11 
itself; 
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x. Free, prior and informed consent (FPIC) - the consensus of all 
, : 
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members of the ICCs/IPs to be determined in accordance lJ\(ith their 
14 
respective customary laws and practices, free from any external 
15 
manipulation, interference, coercion, and other 
analogous acts and 
16 
obtained after fully disclosing the intent and scope, including the positive 
17 
and negative impacts, of all the activities, in a language and process 
18 
understandable and acceptable to the community; 
19 
y. Indigenous peoplesllndigenous cultural communities (IP/ICC) - refer 
20 
to a group of people or homogenous societies identified by self-ascription 
21 
and ascription by others, who have continuously lived as organized 
22 
community on communally bounded and defined territory, and who have, 
23 
under claims of ownership since time Immemorial, occupied, possessed 
24 
and utilized such territories, sharing common bonds of language, customs, 
25 
traditions and other distinctive cultural traits, or who have, through 
26 
. resistance to political, social and cultural inroads of colonization, non-
27 
indigenous religions and cultures, became historically differentiated from 
28 
the majority of Filipinos. ICCsllPs shall likewise include peoples who are 
14 


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regarded as indigenous on account of their descent from the populations 
, 
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which inhabited the country, at the time of conquest or colonization, or at 
3 
the time of inroads of non-indigenous religions and cultures, or the 
4 
establishment of present state boundaries, who retain some or all of their 
5 
own social, economic, cultural and political institutions, but who may have 
6 
been displaced from their traditional domains or who may have resettled 
7 
outside their ancestral domains, They are peoples who have a spiritual 
8 
relationship with the land; 
9 
z, Indigenous political structure - refers to organizational and cultural 
10 
leadership systems, institutions, relationships, patterns and processes for 
11 
decision-making and participation, identified by ICCs/IPs such as, but not 
12 
limited to, Council of Elders, Council of Timuays, Bodong Holders, and any 
13 
other tribunal or body of similar nature; 
14 
aa. Joint venture agreement - an agreement wherein the government and 
15 
a qualified person organize a joint-venture company, with both parties 
16 
having equity shares, to develop and manage mineral resources Aside 
17 
from earnings on the equity, the Government shall be entitled to a share in 
18 
the output computed at a certain percentage mutually agreed upon by and 
19 
beneficial to both parties. 
20 
bb. Key biodiversity areas - are sites of global biodiversity conservation 
I 
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significance: They are defined by standardized criteria and thresholds to 
22 
guide conservation interventions such as the establishment of protected 
23 
areas; 
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cc. Large-scale mining - mining in areas with more than twenty (20) 
25 
hectares, using mechanized tools and equipment, requiring considerable 
26 
capital and having large-scale environmental, social, cultural and economic 
27 
impacts with regard to resource use and/or consumption. 
J5 


dd. Mineral agreement - a contract entered into by the government, in 
2 
behalf of the State, and a private Filipino person, granting such person/s 
3 
the privilege to mine a specific contract area; 
4 
ee. Mineral resource - any concentration of minerals/rocks with potential 
5 
economic value; 
6 
ft. Mineral processing - the milling, beneficiation or upgrading of ores or 
7 
minerals and rocks or by similar means to convert the same into 
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marketable products; 
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gg. Minerals - all naturally occurring inorganic substance In solid, gas, 
. 
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liquid, or any intermediate state excluding energy matenals such as coal, 
, 
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petroleum, natural gas, radioactive materials, and geothermal energy; 
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hh. Mine development - preparing the mine site for production by shaft 
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sinking or pit excavation building of access roads, and constructing of 
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surface facilities; 
15 
ii. Mine wastes and tailings -rock materials from surface or underground 
16 
mining and milling operations with little or no economic value to the 
17 
generator of the same; 
18 
jj. Mining activity - any or all of the following activities' exploration, 
19 
extraction, utilization, processing, transportation and other activities 
20 
conducted for the same. 
21 
kk. Mining area - a portion of the contract area which has been identified 
22 
by the contractor wherein actual mining operations are conducted; 
23 
II. Mining operations - either all or any of the mining activities involving 
24 
exploration, feasibility, development, utilization, and processing; 
25 
mm. National industrialization - in the mining industry, this shall denote 
26 
the primacy of mineral production, processing and distfibution for the 
'27 
primary benefit of the domestic economy. This includes creating favorable 
28 
conditions for Filipino entrepreneurs to engage in mining through various 
16 


1 
state-private agreements that shall ensure that mining shall help spur more 
2 
domestic investments, increase agricultural production and produce both 
3 
consumer and producer goods and manufactures; 
4 
nn. National park - an area of the public domain essentially natural 
5 
wilderness, scenic, or historic in character which has been withdrawn from 
6 
settlement, occupancy, or any form of exploitation except in conformity with 
7 
an approved management plan and set aside exclusively to conserve the 
8 
area or preserve the scenery, the natural and historic objects, wild animals, 
9 
and plants therein mainly for the purpose of biodiversity conservation 
10 
and/or human enjoyment. 
11 
00. Native title - pre-conquest rights to lands and domains which, as far 
12 
back as memory reaches, have been held under a claim of private 
lJ 
ownership by 
ICCs/IPs, have never been public lands and are thus 
1~ 
indisputably presumed to have been held that way since before the 
15 
Spanish Conquest; 
16 
pp. Natural forest - forests composed of indigenous trees, not planted by 
17 
man, whose structure, functions, and dynamics have been largely the 
18 
result of natural succession processes 
I 
19 
qq. Natural parks - is a relatively large area not materially altered by 
20 
human activity where extractive resource uses are not allowed. These 
21 
parks are maintained to protect outstanding natural and scenic areas of 
22 
national or international significance for scientific, educational and 
23 
recreational use; 
24 
rr. Open-pit mining - Extracting metal ores and minerals that lie near the 
25 
surface by removing the overlying material and breaking and loading the 
26 
ore. Also known as open-cast mining and open-cut mining; 
27 
ss. Ore - a material that contains minerals in such quantities that it can be 
28 
mined and worked commercially to extract that mineral. The mineral is 
17 


2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
usually contained in chemical combination with some other element in 
addition to various impurities; 
tt. 
Pollution control and infrastructure devices -
infrastructure, 
machinery, equipment and/or improvements used for impouhding, 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 by-products 
i 
and gases emitted from any facility utilized in mining operations for their 
disposal; 
. uu. Private land - any land belonging to any private person which includes 
alienable and disposable land being claimed by a holder, claimant, or 
occupant who has already acquired a vested nght thereto under the law, 
although the corresponding certificate or evidence of title or patent has not 
been actually issued; 
vv. Processing - includes all treatment an ore receives after its extraction 
and beneficiation, which involves changes in the chemical nature of the 
mined minerals; 
ww. Progressive rehabilitation - rehabilitation which involves the staged 
treatment of disturbed areas during exploration, construction/development 
and mining operations; 
xx. Protected areas - identified portIOns of land and water set aside by 
reason of their unique physical and biological significance, managed to 
23 
enhance biological 
diversity and protected against destructive human 
24 
exploitation; 
25 
yy. Protected landscapes, seascapes, marine sanctuaries - areas of 
26 
national 
significance which are characterized by the harmonious 
27 
interaction of man and the environs while providing opportunities for public 
28 
enjoyment through recreation and tourism within the bounds of the normal 
29 
lifestyle and economic activity of these areas; 
18 


zz. Quarry resources - any common rock or other mineral substances as 
2 
the 
Director of the Mines and Geosciences may declare to be quarry 
3 
resources such as, but not limited to, andesite, basalt, conglomerate, coral 
4 
sand, diatomaceous earth, diorite, decorative stones, gabbro, granite, 
5 
limestone, marble, marl, red burning clay for potteries and bricks, rhyolite, 
6 
rock phosphate, sandstone, serpentine, shale, tuff, volcanic cinders, and 
7 
volcanic glass, Provided, That such quarry resources do not contain metals 
8 
or metallic constituents and lor other valuable minerals in economically 
9 
workable quantities; Provided further, That non-metallic minerals such as 
10 
kaolin, feldspar, bull quartz, quartz or silica, sand and pebbles, bentonite, 
II 
talc, asbestos, barite, gypsum, bauxite, magnesite, dolomite, mica, 
12 
precious and semi-precious stones, and other non-metallic minerals that 
13 
may later be discovered and which the Director declares the same to be of 
14 
economically workable quantities, shall not be classified under the category 
15 
of quarry re~ources; 
16 
aaa. Quarrying - process of extracting, removing and disposing quarry 
17 
resources found on or underneath the surface of private or public land, 
18 
bbb, Regional Director - the regional director of any mines regional office; 
19 
ccc, Regional Office - any of the mines regional offices; 
20 
ddd, Recycling - shall refer to the treating of used or waste materials 
21 
through a process of making them suitable for beneficial use and for other 
22 
purposes, and includes any process by which solid waste materials are 
23 
transformed into new products in such a manner that the original products 
24 
may lose their identity, and which may be used as raw materials for the 
25 
production of other goods or services: 
Provided, That the collection, 
26 
segregation and re-use of previously used packaging material shall be 
27 
deemed recycling under the Act. 
28 
eee, Rehabilitation - the process by which the land will be returned to a 
29 
form and productivity in conformity with a prior land use plan induding a 
19 


stable 
ecological 
state 
that 
does 
not 
contribute 
substantially 
to 
2 
environmental deterioration and is 
consistent with surrounding aesthetic 
3 
values; 
4 
fff. Remediation - removal of pollution or contaminants from envir6nmental 
5 
media for the general protection of the area and the people. 
6 
ggg. Remining - maximizing and recovering the remaining minerals from 
7 
the rejects or wastes of previous mines and mining operations, 
8 
hhh. Restoration - where the intent is to recreate an ecosystem as close 
9 
as possible to the original which existed at the site, with most of the 
10 
structure and productivity matching that of the original ecosystem, and most 
11 
of the original biodiversity: in time ecological processes and functions will 
12 
match those of the original forest; 
iii. Self-determination - refers to the right of a people to determine its own 
14 
political destiny as defined by existing Philippine laws. The right to self-
15 
determination includes the right of ICCs/lPs to choose their form of 
16 
government within existing national borders to achieve a greater degree of 
17 
autonomy to help preserve their culture, ancestral domain, and way of life; 
18 
jjj. Small-scale mining - mining activities which rely heavily on manual 
19 
labor using Simple implements and methods and do not use explosives or 
20 
any heavy mining equipment, primarily engaged in for sustainable living. 
21 
Impacts from small- scale mining shall not be large-scale, otherwise, the 
22 
mining activity shall be defined as large-scale mining; 
23 
kkk. small-s,cale mining permit - permit issued for small-scale mi1ing, 
24 
III. Strategic minerals - minerals needed for national industrialization, 
25 
including rural development; 
26 
mmm. Tailings Disposal System or Tailings Placement - the method 
27 
wherein the waste from mining operations are dumped, placed, or disposed. 
20 


nnn. Traditional small-scale mining - small-scale mining using traditional 
2 
means and without the use of chemical or mechanized extraction and 
3 
separation means, methods, implements, and/or equipment; 
4 
000. Watershed continuum - shall refer to an area consisting of the 
5 
watershed and its divide including its connection from the headwaters to the 
6 
reef or a land area drained by a stream or a fixed body of water and with 
7 
tributaries having a common outlet for surface runoff. It is the system by 
8 
which the mining-affected communities shall be determined following the 
9 
drainage of a stream or fixed body of water with tributaries having a 
10 
common outlet for surface runoff; 
J J 
ppp. Wildlife - undomesticated forms and varieties of flora and fauna. 
12 
CHAPTER IV. OWNERSHIP AND GOVERNANCE 
13 
SEC. 19. Authority of the Bureau. The Mines and Geosciences Bureau shall be 
14 
a scientific research institution under the Department of Environment and Natural 
15 
Resources (DENR) primarily conducting and developing research of mineral 
16 
resources and mining technologies and training of local communities, local 
17 
government units and indigenous peoples It shall also regulate the operations of 
18 
persons involved in mining activities. It shall also work with the Multi-Sectoral 
19 
Mineral Council in the monitoring of mining activities. 
20 
SEC. 20. Regional offices. The Bureau shall have as many regional offices in 
21 
the country as may be established by the Secretary, upon the recommendatton 
22 
of the Director. 
23 
SEC. 21. Bureau as repository of information. The Bureau shall be the central 
24 
repository of information regarding mineral lands, resources, permits, studies and 
25 
other information relevant to the operation of a mine, including the necessary 
21 


1 
requirements which a contractor is obliged to submit. All other governmental 
, 
' 
2 
offices and other bodies created under this Act shall copy furnish the Bureau of 
3 
all other information related to mining. 
-I 
SEC. 22. Recording system. There shall be established a national and regional 
5 
filing and recording system. A mineral resource database system shall be set up 
6 
in the Bureau which shall include, among others, a mineral rights management 
7 
system. 
8 
SEC. 23. Publication. The Bureau shall publish at least annually a mineral 
9 
gazette of nationwide circulation containing among others, a current list of 
to 
mineral rights, their locations specified in the appropriate map, mining rules and 
11 
regulations, other official acts affecting mining, and other information relevant to 
12 
mineral resources development. A system of publication fund shall be included in 
13 
the regular budget of the Bureau. 
1-1 
SEC. 
24. Bureau to conduct exploration activities. Exploration of mineral 
15 
resources shall be exclusively and directly undertaken by the State through the 
16 
Bureau. In no case shall this function be delegated or contracted out to private 
17 
corporations or persons. 
18 
SEC. 25. Non-invasive exploration. Exploration activities shall only be non-
19 
invasive such as seismic, gravity, magnetic, electromagnetic, radar, induced 
20 
polarization, radio-wave and electro-geochemical. 
21 
SEC. 26. Consent. The Bureau shall not enter into any private lands for the 
22 
purposes of exploration activities without the written consent of the land owner, 
23 
possessor and/or occupant; or the FPIC of the ICCIIP and payment of just 
22 


1 
compensation for the use of property. Neither shall the Bureau enter into any part 
2 
of the ancestral domains/lands of ICCs/IPs without their free and prior informed 
3 
consent. Further, the Bureau shall not enter into any distributed land under the 
4 
Comprehensive Agrarian Reform Program within the ten (10) years prohibited 
5 
period of the said program. 
6 
SEC. 27. Ownership of ICCs/IPs. The mineral resources within ancestral 
7 
domains/ancestral lands are the collective private property of the indigenous 
8 
cultural communities/indigenous peoples (ICCs/IPs) as provided by law. The 
I 
9 
management of such mineral resources shall build on the indigenous knowledge 
, 
10 
systems and practices of the ICCs/IPs. 
11 
SEC. 28. Free, prior and informed consent. No mining activity shall be 
12 
conducted within the ancestral domains/lands of ICCslIPs without their free, prior 
13 
and informed consent (FPIC), in addition to the conditions set for under the 
14 
succeeding sections of this Act. 
15 
SEC. 29. When ancestral domain is not formally recognized. When ancestral 
16 
domain is not covered by a Certificate of Ancestral Domain Title/Certificate of 
17 
Ancestral Land Title (CADT/CAL T), or is covered by a different title Issued in 
18 
favor of members of the ICCsIIPs, mineral resources shall nevertheless be 
19 
managed by the ICCs/IPs concerned when it can be presumed that the area is 
20 
part of ancestral domain An area is presumed to be part of ancestral domain by 
21 
virtue of historic rights and self- delineation by the ICCs/IPs. 
22 
SEC. 30. When ICCslIPs displaced from ancestral domain, and when 
23 
ancestral domain is already covered by other titles emanating from the state 
24 
other 
than 
CADT/CAL T. 
Native 
title 
over 
ancestral 
domain 
subsists 
25 
notwithstanding the fact that the ICCslIPs who hold such native title hElve been 
23 


1 
displaced therefrom or that such ancestral domains have been occupied by other 
2 
persons or corporations under another claim of title emanating from the State. In 
3 
such cases, ICCslIPs shall continue to own such mineral resources. 
4 
SEC. 
31. Questions on the validity of FPIC. In instances that there are 
5 
questions on the legality or validity of the issued free prior and informed consent, 
6 
mining operations shall not be allowed to be conducted in the ancestral domains 
7 
or lands of the ICes/IPs without the final resolution of such question on the 
8 
legality or validity of the FPIC. 
9 
SEC. 32. Ownership of the State. The mineral resources found outside 
10 
ancestral domains/lands shall be owned by the State. The State shall ensure that 
11 
the management of mineral resources shall be primarily for the benefit of the 
12 
local communities in whose territory the same shall be found. Any minerals 
13 
extracted shall be solely used for local industries consistent with the Minerals 
14 
Management Plan. The State may directly undertake development, utilization 
15 
and proceSSing of mineral resources or it may enter into mineral agreements with 
16 
eligible parties pursuant to the proviSions of this Act. 
17 
SEC. 33. Inventory of mineral resources. The Bureau shall identify and provide 
18 
an inventory of the available mineral resources, including the mine tailings and 
19 
wastes 
within the country. It shall submit to the DENR a report which shall 
20 
contain the following information: 
21 
a) the classification of minerals; 
22 
b) the quality and grade of the ore; 
23 
c) the potential mine life; 
24 
d) the geological description of the area; 
25 
e) the economic viability of mine tailings; 
24 


f) whether the area is a key biodiversity area or if it is a critical habitat; 
2 
g) and all other relevant information necessary for potential mineral 
3 
investments. 
-l 
The process for mineral exploration and/or approval for a mining permit shall not 
5 
commence without the said inventory. 
6 
SEC. 34. Identification of strategic minerals. The Bureau shall conduct 
7 
researches and studies prior to any mining operations to identify strategic mineral 
8 
resources. Only mineral resources that shall be needed for local industries, 
9 
agricultural modernization and rural development shall be opened to mining 
10 
subject to the implementing rules and regulations of this Act. 
11 
SEC. 35. Demarcation of mineral areas. The Bureau shall demarcate the 
12 
boundaries of all areas identified as containing commercial quantities of mineral 
13 
resources on the ground. 
14 
SEC. 36. Baseline information on watershed continuums. The baseline 
15 
information on all watersheds in the country shall be required and made available 
16 
to the public, online as much as possible. No mining permit shall be issued 
17 
without this baseline information. 
18 
SEC. 37. Affected local community and local government unit. For the 
19 
purposes of this Act, the affected local community and the affected local 
20 
government unit are defined in relation to the watershed continuum which is 
21 
potentially negatiyely impacted by mining operation in the demarcated $rea. The 
22 
local communities and the local government units therefore are those' who are 
23 
dependent on the watershed eco- system and its resources. 
25 


SEC. 38. Establishment of Multi-Sectoral Mineral Council. A Multi-Sectoral 
2 
Mineral Council shall be established for the purposes of this Act. There shall be 
3 
as many Multi-Sectoral Mineral Councils are there are watershed continuums 
4 
with demarcated mineral areas. 
5 
SEC. 39. Powers of the Council. The Council shall have the following powers, 
6 
among others: 
7 
a) To determine whether or not mining operations shall be allowed; 
8 
b) To deliberate on proposals for mineral agreements; 
9 
c) To approve the proposal for mineral agreements; 
10 
d) To monitor the conduct of mining operations; 
11 
e) To establish its internal rules of procedure which are not contradictory 
12 
to this Act; 
I 
13 
SEC. 40. Composition of the Multi-Sectoral Mineral Council. THe Multi-
i 
14 
Sectoral Mineral Council shall be composed of representatives from the Bureau, 
15 
one representative from each of the affected provincial governments/independent 
16 
component 
cities/highly 
urbanized 
cities, 
representatives 
from 
17 
peoples/community/sectoral/non-governmental organizations representatives of 
1S 
local government units, and the affected as many as the ICCs/IPs within the 
19 
watershed continuum. The Bureau shall be the convenor of the Council. 
20 
No mining operations shall be allowed without the Council having been properly 
21 
convened. 
22 
SEC. 41. Areas open to mining. The Council shall have the power to determine 
23 
whether or not the land where mineral resources are found shall be opened to 
24 
mining. Areas may only be opened to mining upon the unanimous vote of all the 
25 
members of the Council pursuant to the guidelines provided by this Act. In 
26 


1 
determining whether or not such area shall be opened, the following shall be 
2 
required: 
3 
a) Report of the Bureau on the conducted exploration; 
4 
b) Existence of downstream industries for the mineral resources; 
5 
c) Potential environmental impacts; 
6 
d) Potential cultural impacts; 
7 
e) Conflict and risk assessment; 
8 
f) Potential health impacts; 
9 
g) Potential economic benefits of the development and utilization of the 
10 
minerals; 
11 
h) Carrying capacity and the ecological profile of the area; 
12 
i) Existing and alternative land uses of the area; 
13 
j) Local government land use plan. 
14 
No mining application shall be allowed unless an environmental economic audit 
15 
or resource valuation of the proposed mining area has been conducted or 
16 
prepared applying acceptable valuation standards. This audit or resource 
17 
valuation shall be conducted in coordination with mUlti-sectoral group of experts 
18 
and community stakeholders. It shall include determination of the expected 
19 
economic returns and the potential negative impacts from mining on the 
20 
enjoyment and exercise of human rights, cultural rights, and on peace and 
21 
security. A detailed study must mention the flora, fauna and environmen! present 
! 
22 
in the mining claim and the impact of mining operations on the environment, the 
23 
possible environmental degradation and the attendant loss of subsistence 
24 
resources cause. There must be mention of existence of sacred areas or areas 
25 
otherwise of cultural significance and address the impacts of resource 
26 
exploitation on indigenous peoples and local communities. 
27 


This information shall be accessible to the public at all times. 
2 
Provided however, That in no case shall the Council open the following areas to 
3 
mining: 
4 
a) Areas declared by Local Government Units as No-Mining Zones as 
5 
specified by local ordinances, and other issuances; 
6 
b) Densely populated areas, especially residential areas; 
7 
c) Head waters of watershed areas; 
8 
d) Areas with potential for acid mine drainage; 
9 
e) Critical watersheds; 
10 
f) Critical habitats; 
11 
g) Climate disaster-prone areas; 
12 
h) Geohazard areas; 
13 
i) Small island ecosystems; 
14 
j) Cultural sites, which may include, but not limited to, sacred sites and 
15 
burial grounds; 
16 
k) Traditional swidden farms and hunting grounds; 
17 
I) Lands covered by the Comprehensive Agrarian Reform Law or Republic 
18 
Act No. 6657, as amended; 
19 
m) Prime agricultural lands, irrigable and irrigated lands as defined by 
20 
Republic Act No. 9700; 
21 
n) Cultural property enumerated under the National Cultural Heritage Act 
22 
of 2009 or Republic Act No.1 0066; 
23 
0) Community sites; 
2.( 
p) Key biodiversity areas; 
25 
q) High conflict areas; 
26 
28 


1 
r) The Province of Palawan pursuant to Republic Act No. 7611 ancj other 
2 
areas covered by local ordinances; 
3 
s) In military and other government reservations, except upon prior written 
4 
clearance by the government agency concerned; 
5 
t) Near or under public or private buildings, cemeteries, archeological and 
6 
historic sites, bridges, highways, waterways, railroads, reservoirs, dams 
7 
or other infrastructure projects, public or private works including 
8 
plantations or valuable crops, except upon written consent of the 
9 
government agency or private entity concerned; 
10 
u) In areas expressly prohibited by law or ordinances; 
11 
v) In areas covered by small-scale miners as defined by law unless with 
12 
prior consent of the small-scale miners, in which case a royalty payment 
13 
upon the utilization of minerals shall be agreed upon by the parties, said 
14 
royalty forming a trust fund for the socioeconomic development of the 
15 
community concerned; and 
16 
w) Old growth, natural or primary forests, watershed forest reserves, 
17 
wilderness area, mangrove forests, mossy forests, national parks, 
18 
protection forests, provincial/municipal forests, parks, greenbelts, game 
19 
refuge and bird sanctuaries and their respective buffer zones prohibited 
20 
under the National Integrated Protected Area System (NIPAS) under 
i 
21 
Republic Act No. 7586, Department Administrative Order No. 25, series 
22 
of 1992 and other laws and ordinances and those expressly prohibited 
23 
by other laws. 
24 
The determination whether or not the same are absolutely closed to mining shall 
25 
not 
only be limited to the existence of a law or ordinance declaring it as 
26 
protected areas, but also to the actual use of said area. 
29 


I 
SEC. 42. Manner of voting by the Council for opening an area to mining. 
2 
Sections 26 and 27 of the Local Government Code on consultation and consent 
3 
shall be strictly adhered to. Local government units at all levels shall conduct 
4 
mandatory public hearings with the affected local communities, to be carried out 
5 
within their respective territories and presenting those enumerated under Section 
6 
41. 
7 
After the inventory of the existing minerals, the formulation of a mine plan, and 
8 
9 
the existence of the baseline information of the particular watershed area, the 
I 
Bureau shall convene the Council. 
10 
The Council shall thereafter convene their respective constituents to determine 
II 
whether or not their respective territories shall be opened for mining. 
12 
Local government units, ICCsIIPs, NGOs and peoples organizations, shall 
13 
ensure that the Bureau shall comprehensively explain the goals and objectives 
14 
of the project or program, its negative and positive impact upon the people and 
15 
the community in terms of environmental or ecological balance, and the 
16 
measures that will be undertaken to prevent or minimize the adverse effects 
17 
thereof. Thereafter, the approval of the respective sanggunians of the affected 
18 
local government units shall be required in accordance to the sentiment of the 
19 
peoples of the local government unit as a result of the consultations conducted. 
20 
Provided, That the affected local government unit representatives shall meet and 
21 
shall relay the decision of their respective constituents to the provincial 
22 
government/independent 
component 
cities/highly 
urbanized' 
cities. 
The 
23 
24 
25 
provincial/component city/highly urbanized city government representative shall 
sit in the Council and shall carry the result of the vote of all the affected local 
government units within the province resulting from the process provid~d in the 
30 


preceding paragraph of this Section. There must be a unanimous vote among 
2 
the local government units for the purpose of opening a particular area for 
3 
mining. Failure to reach a unanimous vote for opening shall mean that the area is 
4 
closed to mining. All the proceedings shall at all times be recorded. 
5 
Provided moreover, That in case there are affected indigenous cultural 
6 
communitieslindigenous peoples within the watershed continuum, they shall also 
7 
bring the community's vote to the Council after undergoing their own processes 
8 
in accordance with their respective indigenous political structure, free from any 
9 
external manipulation, interference, coercion and other analogous acts, and 
10 
obtained after fully disclosing the intent and scope, including the positive and 
II 
negative impacts of the activity, in a language and process understandable and 
12 
acceptable to them. 
13 
Provided finally, That any member of the community may file a protest with the 
14 
Council during this period of consultations and deliberations for the Council's 
15 
consideration. 
I 
16 
SEC. 43. Violation of Section 52. Local government officials who are 
17 
administratively found to violate the preceding section and Section 52 of this Act 
18 
vis-a-vis the pertinent sections of the Local Government Code shall be removed 
19 
from office and perpetually disqualified from holding any elective or appointive 
20 
position in government, its divisions, subsidiaries and any government owned 
21 
and controlled corporations. 
22 
SEC. 44. Pool of consultants. There shall be a pool of independent consultants 
23 
that may assist the local government units, local communities or ICCs/iPs with 
24 
regard to the technical aspects of mining. 
31 


SEC. 45. Publication,· posting and radio announcement requirements. The 
2 
decision of the Council shall be published by the Bureau in the local newspaper 
3 
in the local language, shall be announced on the local radio programs for not less 
4 
than six (6) weeks and notices shall be distributed widely in communities. The 
5 
notice containing relevant information shall likewise be posted in conspicuous 
6 
places for the information of the general public and shall be announced during 
7 
the local market day. 
8 
CHAPTER V. MINERAL AGREEMENTS 
9 
SEC. 46. Modes of mineral agreement. A mineral agreement may only take 
10 
the following forms as herein defined. 
• 
11 
a) Mineral production sharing agreement - is an agreement where the 
12 
Government grants to the contractor the exclusive right to conduct mining 
13 
operations within a contract area and shares in the gross output. The 
14 
contractor shall provide the financing, technology, management and 
J 5 
personnel necessary for the implementation of this agreement; 
16 
b) Co-production agreement - is an agreement between the Government 
17 
and the contractor wherein the Government shall provide inputs to the 
18 
mining operations other than the mineral resource; and 
19 
c) Joint venture agreement - is an agreement where a jOint-venture 
20 
company is organized by the Government and the contractor with both 
21 
parties having equity shares. Aside from earnings in equity, the 
22 
Government shall be entitled to a share in the gross output. 
23 
In no case shall Financial or Technical Assistance Agreements, or any other 
24 
similar agreements, contracts, and/or executive issuances granting license or 
32 


permission to explore, develop and/or utilize mineral resources be awarded to 
2 
foreign entities or persons. 
3 
SEC. 47. Eligibility. Only Filipino citizens or corporations sixty percent (60%) of 
4 
whose equity is owned or controlled by such citizens shall be allowed to conduct 
5 
development, utilization and processing of mineral resources within the country. 
6 
SEC. 48. Identification of mining projects. With the unanimous vote of the 
7 
Council to open areas for mining operations, the Bureau shall prepare the 
8 
necessary information sheets on the said area for potential investments The 
9 
Bureau shall call for proposals to develop the mining area based on the Mineral 
10 
Management Plan. 
11 
SEC. 49. Pre-screening of mining proposals. Mining proposals shall be pre-
12 
screened by the Bureau according to the National Industrialization and Mineral 
I 
13 
Management Plan upon the submission of interested parties of the following: 
14 
a) demonstration of financial capability; 
15 
b) proven social and environmental track record, including those of its 
16 
officers and directors; 
17 
c) clear corporate structure and ownership; 
18 
d) proof of physical office and operations of the proponent within the 
19 
Philippines; 
20 
e) identification of potential investors; 
21 
f) mining project feasibility; 
22 
g) mining operation work plan; 
23 
h) proposed operation, mitigation and prevention methods and/or 
24 
equipment; 
25 
i) capacity to process minerals; 
33 


j) intent to develop downstream industries; 
2 
k) intent to contribute to local community development. 
3 
I) Submission of the Environmental and Social Impact Assessment and 
4 
Mitigation Plan. 
5 
The Council shall fix the minimum capitalization that any bidder must satisfy 
6 
based on its determination of the expected economic returns and the potential 
7 
negative impacts 
from mining, upon reference to an independent study 
8 
proposing such minimum capitalization. 
9 
Section 50. Environmental and Social Impact Assessment and Mitigation 
10 
Plan. The contractor shall submit an Environmental and Social Impact 
11 
Assessment and Mitigation Plan (ESIAMP) containing the means, methods, 
12 
processes and schedule by which the contractor shall conduct its operations and 
13 
mitigate negative environmental and social impacts. Social impact shall include 
14 
possible impacts on the enjoyment and exercise of human rights, cultural rights. 
15 
The ESIAMP shall include plans relative to mining operations; the rehabilitation, 
16 
regeneration and restoration of mineral areas; slope stabilization of mined out 
17 
and tailings covered areas; aquaculture, watershed development and water 
18 
conservation; the relocation and return of displaced population; and provisions 
19 
for alternative livelihood and socioeconomic development. 
20 
The ESIAMP shall also contain a Social Development Plan which shall likewise 
21 
contain the plans of the proponent for the development of the community through 
22 
the establishment of infrastructures and programs that shall be sustainable even 
23 
after the closure of the mine. 
34 


SEC. 51. Pre-qualification. The Bureau shall thereafter identify the top three (3) 
2 
proposals and shall recommend the same to the Council for deliberation. 
3 
SEC. 52. Deliberation of the proposals. After the Bureau's transmittal of its 
4 
recommendations to the Council together with all the submitted documents for 
5 
the pre- qualification, the Council shall initiate the deliberation process of the pre-
6 
qualified proposals. 
7 
Immediately thereafter, Sections 26 and 27 of the Local Government Code on 
8 
consultation and consent shall be strictly adhered to. Local government units at 
9 
all levels shall conduct mandatory public hearings with the affected local 
10 
communities, to be carried out within their respective territories and prlesenting 
11 
those enumerated under Section 43. Local government units, ICCsIIPs, NGOs 
12 
and peoples organizations, shall ensure that the mining applicant shall 
13 
comprehensively explain the goals and objectives of the project or program, its 
14 
negative and positive impact upon the people and the community in terms of 
15 
social, cultural and environmental or ecological balance, and the measures that 
16 
will be undertaken to prevent or minimize the adverse effects thereof. Thereafter, 
17 
the approval of the respective Sanggunians of the affected local government 
18 
units shall be required in accordance to the sentiment of the peoples of the local 
19 
government unit as a result of the consultations conducted. Provided, That the 
20 
affected local government unit representatives shall meet and shall relay the 
21 
decision 
of 
their 
respective 
constituents 
to 
the 
provincial 
22 
governmentlindependent component cities/highly urbanized cities through the 
23 
submission of the minutes of meeting declaring their decision with signatures 
24 
from the constituent. The provincial/component city/highly urbanized city 
25 
government representative shall sit in the Council and shall carry the result of the 
26 
vote of all the affected local government units within the province/independent 
35 


component city/hi9hly urbanized city resulting from the process provided in the 
2 
preceding paragraph of this Section. 
3 
In determining which proposal is acceptable to the people, a majority vote of the 
4 
local government units within the province/independent component city/highly 
5 
urbanized city shall be required. 
6 
The affected ICCs/IPs shall also deliberate on the proposals in accordance with 
7 
their own systems and processes free from any external manipulation, 
8 
interference, coercion and other analogous acts, and obtained after fully 
9 
disclosing the intent and scope, including the positive and negative impacts of 
10 
the activity, in a language and process understandable and acceptable to them. 
II 
After the respective processes are complied with, the Council shall then meet 
12 
and decide which proposal, if any, is most acceptable and consistent with their 
13 
own socio- economic, environmental and cultural programs and shall notify the 
14 
Bureau of the chosen proposal. 
15 
Section 53. Posting .and publication requirement. After notice, the Bureau 
18 
Provided, That any member of the community may contest the decision of the 
19 
Council within six (6) weeks upon the posting and publication of notice of the 
20 
acceptance of the proposal in the manner provided in Section 42. No mining 
21 
operations shall be allowed to be conducted pending any action questioning the 
22 
legality or validity of the proposal. 
36 


SEC. 54. Issuance of the permit. After the six (6) weeks from the date of the 
2 
posting and publication, if no contest is filed, the Bureau shall issue a permit in 
3 
accordance with the decision of the Council on the winning proposal 
4 
SEC. 55. Environmental and Social Impact Compliance Certificate. The 
5 
mining proponent shall be issued an Environmental and Social Impact 
6 
Compliance Certificate by the Bureau with the approval of the Council. Provided, 
7 
no amendments to the conditions of the Certificate shall be allowed, unless such 
8 
proposed amendment shall work for the benefit of the communities, and.in which 
I 
9 
case, the Council and the Bureau shall be notified of any amendments to the 
10 
ESIAMP and that the former should give their consent to the same, after the 
11 
proponent explaining in detail the reason for such amendment and the possible 
12 
impacts and consequences of these amendments. 
13 
Provided further, That any violation of the ESIAMP shall cause the cancellation of 
14 
the Certificate. 
15 
SEC. 56. Maximum areas for mineral agreements. The maximum area under 
16 
mineral agreements that a person can hold at anyone time shall be determined 
17 
by the Council. Provided, That the contract area per agreement shall not exceed 
18 
five hundred (500) hectares, Provided further, That no person shall be awarded 
19 
in excess of the total contract area of seven hundred-fifty (750) hectares in any 
20 
given watershed area. For the purposes of this Act, the prohibition on the 
21 
maximum area shall also include corporations that shall have common directors 
22 
or significant shareholders. 
23 
SEC. 57. Term of mineral agreement. The term of the mineral agreement shall 
24 
be equivalent to the mine life plus an additional five (5) years for the rehabilitation 
25 
of the mining area. Provided, That in no case shall a Mineral Agreeme~t have a 
37 


1 
term beyond fifteen (15) years, Provided further, That the contractor shall already 
2 
include rehabilitation/remediation of the mining area within the ten-year term. 
3 
In no case shall a Mineral Agreement be extended without just cause to be 
4 
determined by the Council, Provided, That the extension shall not cause the term 
5 
of the agreement to exceed the fifteen (15) year term mentioned in the preceding 
6 
section. Provided further, That for the purposes of this act, just cause shall mean 
7 
acts or events resulting from war, force majeure or those beyond the control of 
8 
the mining proponent not attributable to the same. 
9 
Provided finally, That in no case shall mineral agreements be renewed after the 
10 
expiration of the fifteen-year period. 
11 
SEC. 58. Prohibition on open-pit mining method and submarine tailings 
12 
disposal. Open-pit mining method for the extraction of mineral ores and the 
13 
submarine tailings disposal method shall be prohibited. 
14 
SEC. 
I 
59. Failure to initiate mining operations. Failure to commence the 
15 
development stage of the mining operations in accordance with the work 
16 
program within two (2) years from the award of the mineral agreement shall 
17 
cause the cancellation of the mineral agreement. The contractor thereafter 
18 
forfeits the value of the improvements Made upon the land. The contractor and 
19 
other corporations who are also run by the same directors and officers are 
20 
thereafter banned from bidding to conduct mining operations for ten (10) years 
21 
after failure to commence the development stage of the mining operations in 
22 
accordance with the work program. 
23 
SEC. 60. Mandatory consultations in each mining phase. Mandatory 
24 
consultations with affected communities shall be undertaken in each phase of 
38 


mining operation: exploration, extraction, processing, and mine closure to ensure 
2 
that the peoples shall be informed of the proposed plans and methods that are 
3 
proposed to be conducted. 
4 
SEC. 61. FPIC of ICCs/IPs on each stage of mining operation. The free and 
5 
prior informed consent of the ICCs/IPs shall be required at each and every stage 
, 
! 
6 
of the mining operations. Free and prior informed consent shall be secured in 
7 
accordance with the laws, practices and processes of the concerned ICCs/IPs. 
8 
The violation of any of the conditions imposed by the ICCslIPs on the contractor 
9 
shall cause the cancellation of the mineral agreement. Included in this process is 
10 
the explanation of the rights of ICCs/IPs of ownership and self-determination. 
1 J 
SEC. 62. Consent of private landowners. No person shall be allowed entry 
12 
into private lands without the written consent of the landowners, possessors or 
13 
lawful occupants of the land and/or the FPIC of the ICCIIP. 
14 
SEC. 63. Expropriation. Expropriation proceedings shall be filed with the regular 
15 
courts to determine whether the taking of private property for mining purposes 
16 
shall meet a public purpose and to determine just compensation. 
17 
SEC. 
64. Multi-partite monitoring. The Council shall form a multi-partite 
18 
monitoring team to monitor compliance by the contractor of the terms and 
19 
conditions of the mineral agreement. It may conduct ocular inspections of the 
20 
contract area at any time of the day and night. It shall also inspect all the books 
21 
of contractors and refer the same to independent auditors. The Multi-partite 
22 
monitoring team ,and/or the Bureau may confiscate surety, performahce and 
23 
guaranty bonds posted through an order to be promulgated by the DireCtor. The 
24 
Council, the Director or the local government authorities may deputize, when 
25 
necessary, any member or unit of the Philippine National Police, barangay, duly 
39 


1 
registered nongovernment organization (NGO) or any qualified person to police 
2 
any and all mining activities. 
3 
SEC. 65. Withdrawal from the mineral agreement. The contractor may 
4 
withdraw from the mineral agreement at any time for justifiable cause with one 
5 
(1) month's notice to the Bureau, the Council and/or the ICCs/IPs, and other 
6 
government agencies as may be provided by law. The Council, in cooperation 
7 
with other concerned government agencies, shall issue a clearance for 
8 
withdrawal upon certifying that the contractor has complied with all its legal 
9 
obligations, 
including the appropriate measures for mine 
closure 
and 
10 
rehabilitation. Funds and bonds which have been put up by the contractor 
11 
in accordance with this Act shall be forfeited. 
12 
SEC. 66. Non-transferability of mineral agreements. In no case shall mining 
13 
rights under this Act be transferrable. The contractor shall also immediate1ly notify 
i 
14 
the Council and the Bureau of any substantial change in the ownership and/or 
.15 
control of the corporation. Violation of this provision shall cause the cancellation 
16 
of the agreement and forfeiture of assets and eqUipment of the contractor in 
17 
favor of the State. 
18 
SEC. 
67. Access to information. All contractors for mineral permits and 
19 
agreements shall provide information to affected indigenous peoples, local 
20 
communities, and local governments. The following information, among others, 
21 
shall be required: 
22 
a) full disclosure of methods and processes of mining; 
23 
b) full disclosure of environmental and social risks; 
24 
c) full disclosure of ownership structure; 
25 
d) full disclosure of financial sources. 
40 


1 
All information and documents related to proposals, mineral agreements, permits 
2 
and mining operations shall not be considered confidential. 
I 
3 
Refusal to grant access to this information shall be cause for the disqualification 
4 
of prospective proponents or cancellation of mineral agreements and permits. 
5 
The Bureau, being the repository of all relevant information under this Act is 
6 
mandated to grant access to the public of any information in its custody. Refusal 
7 
or unnecessary delay by the officers of the Bureau to give information shall be 
8 
punishable by a fine of fifty thousand pesos (Php 50,000.00) for every instance of 
9 
refusal or unnecessary delay. 
10 
Information requested by indigents or marginalized sectors shall be given to them 
11 
for free. 
12 
CHAPTER VI. SMALL-SCALE MINING 
13 
SEC. 68. Applicability of RA 7076. Small-scale mining shall continue to be 
14 
governed by the provisions of Republic Act No. 7076 or the People's Small-Scale 
15 
Mining Act of 1991, Provided, That the Provincial/City Mining Regulatory Board 
16 
shall be composed of the Governor or City Mayor, as chairperson, as the case 
17 
may be, a repres~ntative from the DENR as co-chairperson, one (1)sm,all scale 
18 
mining 
reprE;lsentative, 
one 
(1) 
big-scale 
mining 
representative, 
one 
19 
representative from a nongovernment organization who shall come from an 
20 
environmental group, one representative from a people's organizi3tion (PO) 
21 
coming from the marginalized sector, and at least one (1) representative from the 
22 
indigenous communities, whenever applicable, as members. The representatives 
23 
from 
the 
private 
sector, 
nongovernment 
organization 
and 
indigenous 
41 


communities shall be selected by their respective organizations and/or 
2 
communities, and appointed by the PMRB or CMRB. 
3 
Provided further, That the conduct of small-scale mining shall also comply with 
4 
the prohibitions and regulations established herein for large-scale mining. Only 
5 
qualified individuals and cooperatives may apply for a small-scale mining permit. 
6 
SEC. 69. Maximum term of small-scale mining permits. The term for small-
7 
scale mining permits shall be three (3) years, extendable to a maximum of fifteen 
8 
(15) years. 
9 
SEC. 70. Traditional small-scale mining within ancestral domail1s. The 
10 
Council 
shall conduct regular monitoring activities within its jurisdiCtion to 
11 
determine if the provisions of relevant laws are complied with in traditional small-
12 
scale mining by ICCsllPs within their respective ancestral domains. 
13 
SEC. 71. FPIC in small-scale mining. Small-scale mining activities within any 
14 
ancestral domain by any person shall also require the free, prior informed 
15 
consent of ICCsIlPs. 
16 
SEC. 72. Requirement for an Environmental and Social Impact Compliance 
17 
Certificate. Small-scale mining shall likewise require an Environmental and 
18 
Social Impact Compliance Certificate. All small scale mining applicants or 
19 
proponents must show proof of compliance with the terms and conditions of its 
20 
Environmental and Social Impact Compliance Certificate (ESICC) prior to the 
21 
issuance of a small scale mining permit. Failure to submit this requirement will 
22 
result in the non-issuance of the SSMP. 
42 


SEC. 73. Envirol"!mental measures in small-scale mining. The State shall 
2 
immediately address the environmental and health hazards and proolems in 
3 
small-scale mining, including the use of hazardous chemicals, such as mercury, 
4 
cyanide and other chemicals, in the amalgamation of gold by small-scale miners. 
5 
SEC. 74. Prohibition on the use of mercury. Mercury use in small-scale mining 
6 
shall be prohibited. The Bureau shall research, develop and actively promote 
7 
appropriate 
technologies in small-scale mining including labor-intensive 
8 
methods, environmental protection and physical techniques or gold extraction 
9 
among small-scale miners. 
10 
SEC. 
75. Multi-sectoral monitoring team. A multi-sectoral monitoring team 
11 
shall be organized to monitor the SSMP permittee's compliance with the terms 
12 
and conditions of its SSMP and ECC. The MMT shall conduct ocular inspections 
13 
of the SSMP area at any time of the day and night and shall have visitorial 
14 
powers. 
15 
SEC. 
76. Alternative livelihood support. The state shall support the 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
improvement of the livelihood of small-scale-miners by extending the services for 
access to other more viable and sustainable forms of livelihood, and, if tre same 
is not pOSSible, the following support services: 
a) access to minerals markets and to financing; 
b) faCilitating partnership with mining companies or contractors by, among 
others, requiring mining companies to buy tailings from small-scale 
mining operations for further processing or recycling; 
c) facilitating partnership among small-scale mining cooperatives; and 
d) other incentives to attract informal small-scale miners to formalize their 
status. 
43 


SEC. 77. Buying stations. The Bangko Sentral ng Pilipinas shall ensure that 
2 
buying stations acquire gold from small-scale traders at prevailing international 
3 
gold market prices and the prevailing exchange rate set by the BSP Treasury 
4 
Department on a daily basis. 
5 
CHAPTER VII. QUARRY RESOURCES 
6 
SEC. 78. Quarry resources within ancestral domains. Gathering of quarry 
I 
7 
resources, sand and gravel, guano and other organic fertilizer materipls, and 
8 
gemstones within ancestral domains shall likewise be subject to the free prior 
9 
informed consent of ICCsIIPs. ICCslIPs and the government shall be entitled to 
10 
at least ten per cent (10%) of royalties depending on whether the resources are 
11 
found inside or outside ancestral domains. Permits shall be limited to a maximum 
12 
term of five (5) years, renewable for like periods but not exceeding a total term of 
13 
twenty five (25) years, and a maximum area of five (5) hectares. 
14 
SEC. 79. Quarry Permit. Any qualified Filipino may apply for a quarry permit on 
15 
privately- owned lands except ancestral domains and/or public lands for building 
16 
and construction materials such as marble, basalt, andesite, conglomerate, tuff, 
17 
adobe, granite, gabbro, serpentine, inset filling materials, clay for ceramic tiles 
18 
and building bricks, pumice, perlite and other similar materials that are extracted 
19 
by quarrying from the ground at the provincial/city mining regulatory board. The 
20 
provincial governor shall grant the permit after the applicant has complied with all 
21 
the requirements as prescribed by the rules and regulations set forth by this Act. 
22 
Provided that gathering/extraction of sand for its metallic contents such as 
23 
magnetite from the country's rivers and shorelines shall be require a mineral 
24 
agreement in lieu of a quarry permit. 
44 


The maximum area which a qualified person may hold at anyone time shall be 
2 
limited to a surface area of five hectares (5 has.): Provided, That in large-scale 
3 
quarry operations involving cement raw materials, marble, granite, sand and 
4 
gravel and construction aggregates, a qualified person and the government may 
5 
enter into a mineral agreement as defined herein. 
6 
A quarry permit shall have a term of five (5) years, renewable for like periods but 
7 
not to exceed a total term of twenty-five (25) years. No quarry permit shall be 
8 
issued or granted on any area covered by a mineral agreement. 
9 
SEC. 80. Quarry Fee and Taxes. A permittee shall pay a quarry fee as provided 
10 
for under the implementing rules and regulations. The permittee shall also pay 
11 
the excise tax as provided by pertinent laws. 
-
12 
SEC. 81. Cancellation of Quarry Permit. A quarry permit may be cancelled by 
13 
the provincial governor for violations of the provisions of this Act or its 
14 
implementing rules and regulations or the terms and conditions of said permit: 
I 
15 
Provided, That before the cancellation of such permit, the holder thereof shall be 
I 
16 
given the opportunity to be heard in an investigation conducted for the purpose. 
17 
SEC. 82. Commercial Sand and Gravel Permit. Any qualified person may be 
18 
granted a permit by the provincial governor to extract and remove sand and 
19 
gravel or other loose or unconsolidated materials outside ancestral domains 
20 
which are used in their natural state, without undergoing processing from an area 
21 
of not more than five hectares (5 has.) and in such quantities as may be specified 
22 
in the permit. 
23 
SEC. 83. Industrial Sand and Gravel Permit. Any qualified person may be 
24 
granted an industrial sand and gravel permit by the Bureau for the extraction of 
~5 


sand and gravel and other loose or unconsolidated materials outside ancestral 
2 
domains that necessitate the use of mechanical processing covering an area of 
3 
not more than five hectares (5 has.) at anyone time. The permit shall have a 
4 
term of five (5) years, renewable for a like period but not to exceed a total term of 
5 
twenty-five (25) years. 
i 
6 
SEC. 84. Exclusive Sand and Gravel Permit. Any qualified person may be 
, 
7 
granted an exclusive. sand and gravel permit by the provincial governor to quarry 
8 
and utilize sand and gravel or other loose or unconsolidated materials from public 
9 
lands for his own use, Provided, That there will be no commercial disposition 
10 
thereof. 
11 
SEC. 
85. Government Gratuitous Permit. Any government entity or 
12 
. instrumentality may be granted a gratuitous permit by the provincial governor to 
13 
extract sand and gravel, quarry or loose unconsolidated materials outside 
14 
ancestral domains needed in the construction of building and/or infrastructure for 
15 
public use or other purposes over an area of not more than two hectares (2 has.) 
16 
for a period coterminous with said construction. 
17 
SEC. 86. Private Gratuitous Permit. Any owner of land may be granted a 
18 
private gratuitous permit by the provincial governor to extract sand and gravel, 
19 
quarry or loose unconsolidated materials within his property. 
20 
SEC. 87. Guano Permit. Any qualified person may be granted a guano permit 
21 
by the provincial governor to extract and utilize loose unconsolidated guano and 
, 
22 
other organic fertilizer materials in any portion of a municipality where he/she has 
i 
23 
an established domicile outside ancestral domains. The permit shall be for 
24 
specific caves and/or for confined sites with locations verified by the 
25 
Department's field officer in accordance with existing rules and regulations. 
46 


Provided, That extraction does not violate and is consistent with the provisions in 
2 
the Cave Conservation Act and the Wildlife Act. 
3 
SEC. 88. Gemstone Gathering Permit. Any qualified Filipino may be granted a 
4 
non-exclusive gemstone gathering permit by the provincial governor to gather 
5 
loose stones useful as gemstones in rivers and other locations outside ancestral 
6 
domains. 
7 
SEC. 89. Council recommendation for approval. All permits under Chapter 
8 
VII of this Act shall require the recommendation of the Multi-Sectoral Mineral 
9 
Council prior to approval by the provincial government unit. The absence of a 
10 
recommendation from the Council prohibits the approval of ani permit in this 
11 
Chapter. 
I 
12 
CHAPTER VII" TRANSPORT, SALE AND PROCESSING OF MINERALS 
13 
SEC. 90. Ore transport permit. A permit specifying the origin and quantity of 
14 
non-processed mineral ores or minerals shall be required for their transport. 
15 
Transport permits shall be issued by the Bureau. The absence ot a permit shall 
16 
be considered as prima facie evidence of illegal mining and shall be sufficient 
17 
cause for the confiscation of the ores or minerals being transported, the tools and 
18 
equipment utilized, and the vehicle containing the same. 
19 
SEC. 91. Track record. Only mining companies with demonstrated capacity and 
20 
good environmental track record in mineral processing shall be allowed to extract 
21 
minerals. The Council shall encourage contractors to put up processing plants 
22 
within the community with the end in view of generating employment and 
23 
developing other downstream industries. 
47 


SEC. 92. Mineral trading registration. No person shall engage in the trading of 
2 
mineral products, either locally or Internationally, unless registered with the 
3 
Department of Trade and Industry and accredited by the Department, with a copy 
4 
of said registration'submitted to the Bureau. 
5 
SEC. 93. Mineral processing permit. No person shall engage in the processing 
6 
of minerals without first securing a minerals processing permit from the Council. 
7 
Minerals processing permits shall be for a period of five (5) years, renewable for 
8 
like periods but not to exceed a total term of twenty-five (25) years. 
9 
CHAPTER IX. DEVELOPMENT OF COMMUNITIES, SCIENCE AND 
10 
TECHNOLOGY 
11 
SEC. 94. Expenditure for community development. A contractor shall assist 
12 
in the development of the community, and the promotion of the general welfare 
13 
of its 
inhabitants towards sustainable development. Community development 
14 
projects shall in no way decrease the obligation of the corporation with regard to 
15 
royalties and fees due to communities or local government units. Community 
16 
development projects should be consistent with the Comprehensive Land Use 
17 
Plans (CLUP), Ancestral Domains Sustainable Development and Protection Plan 
18 
(ADSDPP) and annual investment plans of the local governments, CADTfCAL T 
19 
holders and the like. 
20 
SEC. 95. Empl~yment of Filipinos and training or members of t\le local 
21 
community. A contractor and/or permittee shall give preference to' Filipino 
22 
citizens in all types of mining employment within the country. Members of the 
23 
local community shall be trained in all aspects of the mining operations, including 
24 
remining, recycling, rehabilitation, and the management thereof 
48 


1 
SEC. 96. Use of indigenous goods, services and technologies. A contractor 
2 
shall give preference to the use of local goods, services, and the scientific and 
3 
technical resources in all stages of mining operations, where the same are of 
4 
equivalent quality and are available on equivalent terms as their imported 
5 
counterparts. 
6 
SEC. 
97. Donation/turn-over of facilities. Prior to the cessation of mining 
7 
operations occasioned by abandonment or withdrawal of operations, on public 
8 
lands by the contractor, the latter shall have a period of one (1) year therefrom 
9 
within which to remove improvements; otherwise all the infrastructure, facilities 
10 
and equipment shall be turned over or donated tax-free to the proper government 
, 
11 
authorities, nation?1 or local, to ensure that said infrastructure facilities and 
12 
equipment are continuously maintained and utilized by the host and neighboring 
13 
communities. A fine of one hundred thousand pesos (P100,OOO.OO) shall be 
14 
imposed for every day of delay. 
15 
CHAPTER X. BENEFIT SHARING, TAXES AND FEES 
16 
SEC. 
98. Taxes and fees. The contractor shall pay all taxes and fees as 
17 
required by law, including, but not limited to: 
18 
a) contractor's income tax; 
19 
b) customs, duties and fees on imported capital equipment; 
20 
c) value-added tax on imported goods and services; 
21 
d) withholding tax on interest payments on foreign loans; 
22 
e) withholding tax on dividends to foreign stockholders; 
23 
f) documentary stamps taxes; 
24 
g) capital gains tax; 
25 
h) excise tax on minerals; 
49 


1 
i) local business tax; 
2 
j) real property tax; 
3 
k) community tax, 
4 
I) occupation fees; 
5 
m) registration, accreditation, and permit fees; 
6 
n) water usage fees. 
7 
SEC. 99. Government share. Aside from the taxes and fees referred to in the 
8 
preceding section, Government shall have at least a share equivalent to ten per 
9 
cent (10%) of the gross revenues from the development and utilization of mineral 
10 
resources that are owned by it to be set aside for the general fund of the 
11 
government. 
12 
SEC. 
100. Indigenous cultural communities' royalty. In case of mineral 
13 
operations within ancestral domains, the contractor shall pay at least ten per cent 
14 
(10%) of the gross revenues as royalty to the ICCs/IPs. Community development 
15 
programs shall not be considered as royalty payment. The payment of the 
16 
royalties shall directly be given to the communities in a process that build on the 
17 
ICCs/IPs' traditional and customary laws. 
18 
Provided, That the royalty established in this Act shall be a minimurl) royalty 
19 
payment and may still be subject to other conditions to be agreed by the parties, 
20 
free from any external manipulation, interference, coercion, and other analogous 
21 
acts, and obtained after fully disclosing the intent and scope, including the 
22 
positive and negative impacts of the activity, in a language and process 
23 
understandable and acceptable to them. 
24 
SEC. 101. Scientific research and development fund. A Scientific Research 
25 
and Development Fund shall be set aside to be devoted to research and 
50 


development of clean mining technologies, improvement of mining processes, 
2 
mine rehabilitation, mitigating technologies, setting up and maintenance of an 
3 
independent pool of experts and operational expenses of the Bureau. 
4 
SEC. 102. Legal support services fund. A legal support fund shall be set aside 
5 
for the use of the communities and local government units for cases that they 
6 
may file against mining permittees or cases that may be filed against them by 
7 
mining companies in trying to do their responsibility of protecting the rights of the 
8 
marginalized groups, the environment and sustainable development in gereral. 
9 
SEC. 
103. Local Government Unit share. Local Government Units shall be 
10 
entitled to a share of the net revenues from mining operations which shall be paid 
11 
directly to the provincial/independent component city/highly urbanized city 
12 
treasurer/s for distribution to other local government units. To determine the 
13 
government share, the following variables shall be considered: 
14 
a) Classification of local government; 
15 
b) Vulnerability; 
16 
c) Human development index. 
17 
A percentage of this amount shall be set aside by the respective local 
18 
government units for Disaster Risk Management. This fund shall likewise benefit 
19 
ICCslIPs within the territory of the local government unit. 
20 
Provided, That the administrative and operational expenses of the Council shall 
21 
also be taken from this share. 
22 
SEC. 104. Mine wastes and tailings fees. A semi-annual fee to be known as 
. I 
23 
mine wastes ana tailings fee is hereby imposed on all operating mining 
51 


companies in accordance with the implementing rules and regulations. The mine 
2 
wastes and tailings fee shall accrue to a fund to be used as support funds for 
3 
monitoring activities of the Council. The Secretary is authorized to increase mine 
4 
wastes and tailings fees, when public interest so requires. 
5 
SEC. 105. Incentives. Incentives that shall be given to the contractors shall only 
6 
be limited to pollution control or mitigation devices. 
7 
SEC. 106. Deposit of capital and profits requirement. As part of their 
8 
demonstrated financial. capacity, all large-scale mining companies/contractors 
9 
are required to deposit their capital investment and profits in banks or financial 
10 
institutions that are owned, managed and operated by the Philippine government. 
11 
SEC. 107. General rule on profit repatriation. Contractors with foreign financial 
12 
assistance shall be allowed to repatriate their profits from mining projects that 
13 
should not exceed fifty percent (50 %) of the total posted at the end at every 
14 
fiscal year. Full disclosure of profits is required. The full repatriation of profits hall 
. 
i 
15 
be allowed one year after the cessation of mining activities and the prowessive 
16 
rehabilitation of a mining area as specified in the mineral agreement of each 
17 
contractor. 
18 
The guidelines for Sections 106 and 107 shall be issued by the Bangko Sentral 
19 
ng Pilipinas and shall be furnished to the Department, Bureau, Council and all 
20 
respective contractors in the industry. 
21 
CHAPTER XI. SAFETY AND ENVIRONMENTAL PROTECTION 
22 
A. Safety 
52 


SEC. 108. Mines safety. All contractors and permittees shall strictly comply with 
2 
all the mines and safety rules and regulations concerning the safe and sanitary 
3 
upkeep of the mines and mining development Government personnel involved 
4 
in the implementation of mines safety, occupational health and environmental 
5 
rules and regulations shall be covered under Republic Act No. 7305 or the 
6 
Magna Carta of Public Health Workers. 
7 
SEC. 
109. Mine labor. No person under sixteen (16) years of age shall be 
8 
employed in any place of mining operations and no person under eighteen (18) 
9 
years of age shall be employed in a mine. 
10 
SEC. 110. Mine supervision. All mining and quarrying operations shall have at 
11 
least one (1) licensed mining engineer for every fifty (50) employees. Such 
12 
engineer/s shall have at least five (5) years of experience in mining operations, 
13 
and one (1) registered foreman. 
14 
SEC. 111. Safety of workers. All mining companies shall provide safeguards to 
15 
the health and well-being of workers. The Regional Office of the Department of 
16 
Labor and Employment shall inspect all mining sites within their areas of 
17 
jurisdiction to determine the conditions of workers. Denial of entry shall be 
18 
punishable under this Act. Representatives of labor unions shall also have 
19 
visitorial rights. 
20 
SEC. 112. Mine inspection. The mines regional directors and the Council shall 
21 
have jurisdiction over the safety inspection of all installations, surface or 
22 
underground, in mining operations at reasonable hours of day or night and as 
, 
23 
much as possible in a manner that will not impede or obstruct work in progress of 
24 
a contractor or permittee. Monitoring reports and recommendations of the Bureau 
25 
shall be submitted to the Council. 
53 


2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
SEC. 113. Power to issue orders. The mines regional director, in consultation 
with the Environmental Management Bureau, forthwith or within such time as 
specified in the order, require the contractor to remedy any practice connected 
with mining, which is not in accordance with safety and anti-pollution laws and 
regulations. In case of imminent danger to life or property, the Director may 
summarily suspend the mining operation until the danger is removed, or 
appropriate measures are taken by the contractor. Unreasonable delay to 
remove the danger or introduce the necessary improvements by the contractor 
shall be a cause for the cancellation of the mineral agreement. 
SEC. 114. Report of accidents. 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 operations shall immediately report the same to the regional office 
where the operations are situated. Failure to report the same without j~stifiable 
j 
reason shall be cause for the imposition of administrative sanctions prescribed in 
the rules and regulations implementing this Act. 
B. Environmental Protection 
17 
SEC. 
115. Environmental Insurance. Contractors and mineral processing 
18 
permit holders shall be obliged to execute an insurance contract as an 
19 
environmental assurance for each and every source of pollution or disaster, 
20 
relative to the "worst case scenario" costs, following accepted actuarial 
21 
standards, Provided, That in no way shall this provision be construed to remove 
22 
or reduce the liability of the contractors and/or permit holders to compensate any 
23 
damage caused by their operations. Provided further, That the insurer shall be an 
24 
accredited international company in good standing. 
54 


-
Prior to the approval of the insurance contract by the DENR, the DENR shall 
2 
seek and consider the opinion of an independent expert as to the financial 
3 
credibility of the insurer. 
4 
SEC. 116. Calamity and Human Rights Protection Fund. Persons issued a 
5 
mineral agreement shall deposit five million pesos (Php 5,000,000.00) semi-
6 
annually in an interest-bearing account a common fund maintained by the 
7 
national government which shall be used for responding to, or ameliorating the 
8 
effects of calamities, natural disasters and human rights violations including 
9 
militarization, displacement, and forcible evacuation in any part of the country in 
10 
relation to mining activities. Provided, That in no way shall this provision be 
11 
construed to remove or reduce the liability of the contractors and/or permit 
12 
holders to compensate any damage caused by their operations. 
13 
SEC. 117. Performance Bond. The contractor shall put up a bond in an amount 
14 
equivalent to fifty per cent (50%) of the projected cost of rehabilitation as 
15 
validated by independent stUdies. This amount shall be deposited in an interest-
16 
bearing account. The bond shall be forfeited in the event that the contractor shall 
17 
fail or default in the rehabilitation or remediation of the mining area as included in 
18 
the work plan of the contractor or abandons the mine at any time of its 
19 
operations. 
20 
SEC. 
118. Rehabilitation. Contractors and permittees shall technically and 
21 
biologically rehabilitate the excavated, mined-out, tailings covered and disturbed 
22 
areas to the condition of environmental safety, as may be provided in the 
23 
implementing rules and regulations of this Act. A mine rehabilitation fund shall be 
24 
created, based on the contractor's approved work program, and shall be 
25 
deposited as a trust fund in a government depository bank and used for physical 
26 
and social rehabilitation of areas and communities affected by mining activities 
55 


I 
and for research on the social, technical and preventive aspects of rehabilitation. 
2 
Failure to fulfill the above obligation shall mean immediate suspension or closure 
3 
of the mining activities of the contractor/permittee concerned. 
4 
Mining firms are hereby mandated to reforest 100 hectares of land for everyone 
5 
hectare of land they utilize in the course of their mining operations. Mining firms 
6 
are also mandated to immediately restore and replant areas that they have 
7 
already finished excavating as they move on to other development sites: 
8 
Provided, however, that if mining firms cannot do the reforestation in their 
9 
immediate area they could do the reforestation in other areas provided they 
10 
comply with 100: 1 hectare ratio. Any mining firm found to have violated or have 
11 
not complied with the foregoing mandatory provisions shall be held liablelwith the 
12 
penalty of revocation of their mining permits and payment of a fine of 'not less 
13 
than One Million Pesos (P1 ,000,000.00). 
14 
The owners, officers and management employee of said mining firms shall also 
15 
be held liable and be subject to imprisonment of not less than one (1) year nor 
16 
more than three (3) years. 
17 
SEC. 119. Progressive rehabilitation. Contractors shall also conduct progressive 
18 
rehabilitation activities. 
19 
SEC. 120. Adoption of Precautionary Principle. When an activity related to 
20 
mining raises threats of harm to human health or the environment, precautIonary 
21 
measures shall be taken proactively even if some cause and effect relationship 
22 
are not fully established scientifically. The mining proponent and the Bureau shall 
23 
also be obliged to disclose whether or not the cause and effect have not yet been 
24 
scientifically established. 
56 


1 
SEC. 121. Adoption of Polluter Pays Principle. Polluters shall payifor the 
, 
2 
damage they cause to the environment. The amount of damages shall be 
3 
determined by accredited Independent consultants, to be chosen from a list and 
4 
agreed upon by both the mining proponent and by the Council 
5 
SEC. 122. Tailings impoundment. Tailings impoundments shall be built away 
6 
from critical watershed drainage areas. Furthermore, it shall be ensured that 
7 
impoundments will not endanger critical watershed areas or low lying valleys in 
8 
the event of accidents under abnormal conditions. Tailing impoundments and 
9 
dams shall meet the international standards for large dams. 
10 
SEC. 
123. Dumping of waste. Dumping of waste or tailings in any body of 
11 
water shall be prohibited. Provisions on the Clean Water Act and Clean Air Act 
12 
shall be strictly implemented. 
13 
SEC. 124. Use of toxic chemicals and methods. At all times, mining 
14 
contractors shall use chemicals or reagents which would resul~ to the least 
15 
environmental and social destruction. The use of mercury and cyanide for the 
16 
extraction of gold, silver and other minerals shall be prohibited. The use of blow 
17 
torching to separate gold from amalgam shall likewise be prohibited. 
18 
SEC. 
125. Preservation of topsoil. The removed topsoil, or the more 
19 
productive horizons of the soil shall be preserved for other uses. 
20 
SEC. 126. Priority use for water. The National Water Resources Board shall 
21 
investigate any existing use of water resources in the area whether or not 
22 
covered by any existing water permit or registration. Upon determination of any 
23 
existing use, the applicant shall procure the consent of all water users and/or the 
24 
free prior and informed consent of ICCslIPs with or without water permits within 
57 


the same groundwater network or any downstream users of water resources. In 
2 
all instances, priority shall be given to use of water for domestic, municipal, and 
3 
agricultural purposes. If potential negative impact on other water users is 
4 
identified, the water permit shall not be granted. For water resources within the 
5 
ancestral domain of indigenous peoples, no water permit shall be granted by the 
6 
National Water Resources Board without the free and prior informed consent of 
7 
indigenous peoples. 
8 
SEC. 127. Recyli~g of water resources. Water used in mining operatiqns shall 
9 
be recycled. Mining contractors shall be required to provide for the methods or 
10 
equipment for the recycling or reuse of water. Released contaminated water shall 
11 
be treated accordingly to meet national standards. Released water must at least 
12 
be equivalent in quality to the baseline water quality. 
13 
SEC. 128. Water user fee. A water user fee that reflects the value of water to 
14 
the country and community shall be imposed by the Council for water used in 
15 
mining operations. Contractors shall pay the fee to the National Water Resources 
16 
Board which shall use the same for monitoring and improvement of the affected 
17 
waterways and systems and the mitigation of negative impacts thereon to ensure 
J 8 
that communities shall have access to clean water. 
19 
C. Acid Mine Drainage 
20 
SEC. 129. Prohibition from using acid-generating waste rock to build roads 
21 
or dams. To prevent or mitigate acid mine drainage, there shall be a prohibition 
22 
against using acid-generating waste rock to build roads or dams or other 
23 
infrastructures. The use of such materials shall only be used after treatment to 
24 
neutralize the effect of acid mine drainage. 
58 


2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
)6 
17 
18 
19 
20 
21 
22 
23 
24 
SEC. 130. Establishment of a prediction and monitoring system. The Bureau 
shall establish a prediction and monitoring system to identify potential acid-
producing materials and monitor their production of acid waste. 
SEC. 131. Avoidance of waterways. Open pits, waste rock piles and tailings 
impoundments shall not be built near or on waterways to prevent contact and 
subsequent acid production and groundwater contamination. 
SEC. 132. Remining. Remining shall be prioritized over the opening of new 
mines to maximize and recover the remaining minerals from the rejects or wastes 
of previous mines and mining operations, Provided, That remining operations 
shall follow the processes, standards, parameters and guidelines set for mining 
operations in this Act. 
SEC. 133. Suits after the termination of contracts or projects. Recognizing 
that the effects of mining may be seen or felt, actions relating to the health of 
affected communities or peoples, environmental degradation and other similar 
effects may be maintained against the project proponent and/or persons even 
, 
after the mineral agreement or mining project has terminated. 
CHAPTER XII. RESOLUTION OF CONFLICTS 
SEC. 134. Panel of arbitrators. There shall be a panel of arbitrators in the 
regional office of the Department composed of three (3) members, two (2) of 
whom must be members of the Philippine Bar in good standing and one a 
licensed mining engineer or a professional in a related field, and duly designated 
by the Secretary as recommended by the Mines and Geosciences Bureau 
Director. Those designated as members of the panel shall serve as such in 
addition to their work in the Department without receiving any additional 
59 


2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
compensation. As much as practicable, said members 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 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. Within thirty (30) working days, after the submipsion of 
, 
the case by the parties for deciSion, the panel shall have exclusive and,original 
jurisdiction to hear and decide on the following. 
a) Questions involving compliance with the established technical 
guidelines and standards herein established, or those to be established 
by the implementing rules and regulations of this Act; 
b) Questions involving the compliance with technical procedures herein 
established, or those to be established by the implementing rules and 
regulations; and, 
c) Other similar instances wherein the technological and technical 
expertise of the Department shall be needed. 
Disputes involving real rights, contractual obligations and the other causes of 
action that are outside the technological and technical expertise of the Panel of 
Arbitrators shall be under the jurisdiction or the regular courts or as otherwise 
provided by other special laws. 
Provided, That disputes pending before the Bureau and the Departme~t at the 
date of the effectivity or this Act shall undergo an immediate review within sixty 
(60) working days upon the passage of this Act to determine the cause of action. 
Those which are outside the technical expertise of the Department or Bureau 
60 


shall be refiled with the appropriate court, without costs to the complainant or 
2 
petitioner. 
3 
SEC. 135. Appeal. The decision or order of the panel of arbitrators may be 
4 
appealed by the party not satisfied thereto to the Mines Adjudication Board within 
5 
fifteen (15) days from receipt thereof which must decide the case within thirty 
6 
(30) days from submission thereof for decision. 
7 
SEC. 136. Mines Adjudication Board (MAB). The Mines Adjudication Board 
8 
shall be composed of three (3) members. The Secretary of the DENR shall be 
9 
the Chairperson with the Director of the Mines and Geosciences Bureau and the 
to 
Undersecretary for Operations of the Department as members thereof. The 
11 
Board shall have the following powers and functions: 
i 
12 
a) To promulgate rules and regulations governing the hearing and 
I 
13 
disposition of cases before it, as well as those pertaining to its internal 
14 
functions, and such rules and regulations as may be necessary to 
15 
carry out its functions; 
16 
b) To administer oaths, summon the parties to a controversy, Issue 
17 
subpoenas requiring the attendance and testimony of witnesses or the 
18 
production of such books, papers, contracts, records, statement of 
19 
accounts, agreements, and other documents as may be material to a 
20 
just determination of the matter under investigation, and to testify in 
21 
any investigation or hearing conducted in pursuance of this Act; 
22 
c) To conduct hearings on all matters within its jurisdiction, proceed to 
23 
hear and determine the disputes in the absence of any party thereto who 
24 
has been summoned or served with notice to appear, conduct its 
61 


proceedings or any part 
thereof in public or in private, adjourn its 
2 
hearings at any time and place, refer technical matters or accounts to 
3 
an expert and to accept his report as evidence after hearing of the 
, 
I 
4 
parties upon due notice, direct parties to be joined in or excluded from 
, 
5 
the proceedings, correct, amend, or waive any error, defect or 
6 
irregularity, whether in substance or in form, give all such directions as it 
7 
may deem necessary or expedient in the determination of the dispute 
8 
before it, and dismiss the mining dispute as part thereof, where it is trivial 
9 
or where further proceedings by the Board are not necessary or 
10 
desirable: 
II 
d) To hold any person in contempt, directly or indirectly, and impose 
12 
appropriate penalties therefor; and 
13 
e) To enjoin any or all acts involving or arising from any case pending 
14 
before it which, if not restrained forthwith, may cause grave or irreparable 
15 
damage to any of the parties to the case or seriously affect social and 
16 
economic stability, 
17 
In any proceeding before the Board, the rules of evidence prevailing in courts of 
18 
law or equity shall not be controlling and it is the spirit and intention of this Act 
19 
that shall govern, The Board shall use every and all reasonable means to 
20 
ascertain the facts in each case speedily and objectively and without rbgard to 
i 
21 
technicalities of law or procedure, all in the interest of due process and social 
22 
justice, In any proceeding before the Board, the parties may be represented by 
23 
legal counsel. The findings of fact of the Board shall be conclusive and binding 
24 
on the parties and its decision or order shall be final and executory, 
62 


1 
A petition for review by certiorari and question of law may be filed by the 
2 
aggrieved party with the Supreme Court within thirty (30) days from receipt of the 
3 
order or decision of the Board. 
4 
CHAPTER XIII. ACCESS TO JUSTICE 
5 
SEC. 
137. Obligation to respect human rights. Corporations shall respect, 
6 
protect and promote the human rights of communities affected by mining, 
7 
including the right to life, liberty and property, freedom of movement, right of 
8 
public participation and the right to self-determination of indigenous cultural 
9 
communities. 
I 
10 
SEC. 138. Violations of human rights. Extrajudicial killing, torture, involuntary 
II 
disappearance, forcible displacement of populations, setting up of checkpoints, 
12 
and imposition of toll fees which impede the freedom of movement within mineral 
13 
areas, deprivation of food and water sources, vote-buying and bribery for the 
14 
purpose of securing consent or endorsement for the mining project, and other 
15 
analogous acts are violations of human rights. Violations of human rights by 
16 
contractors shall cause the immediate cancellation of mineral agreements. The 
17 
offending contractor, as well as corporations having the same directors and/or 
18 
officers as of the offending contractor shall be perpetually disqualified from being 
19 
granted a mineral agreement. All equipment and assets of the corporation or 
20 
person shall be confiscated in favor of the government. 
21 
SEC. 139. Use of paramilitary and military forces. All mining companies are 
22 
strictly prohibited from employing paramilitary groups. Use of private and military 
23 
forces shall result in the automatic cancellation of the mineral agreement and the 
24 
filing of appropriate civil, criminal and/or administrative charges. 
63 


SEC. 
140. Strategic Legal Action Against Public Participation (SLAPP). 
2 
SLAPPs shall be strictly prohibited. SLAPP is any legal action, whether civil, 
3 
criminal or administrative, filed to harass, vex, exert legal action or stifle legal 
4 
recourses of community members complaining against violations of this Act or 
5 
enforcing the provisions of the Act, or exercising their freedom of assembly or 
6 
right of public participation. The investigating prosecutor or court shall 
7 
immediately determine within a period of thirty (30) days from filing thereof 
8 
whether a legal action is a SLAPP and accordingly dismiss the same. 
9 
SEC. 
141. Indigents' suit. Indigents shall be exempt from payment of any 
10 
administrative or court fees, including docket fees for the filing of a case. Lawyers 
11 
shall be provided by the Public Attorney's Office to pauper litigants in case they 
12 
could not afford legal services. 
13 
SEC. 142. Application of the customary laws of ICCsIlPs. The contractor shall 
14 
respect the customary laws of the ICCs/IPs and shall submit to the processes of 
15 
their customary laws, Provided, That these laws are not contrary to the 
16 
provisions of the Constitution. 
17 
SEC. 143. Strict ,liability. Mining corporations are strictly liable for all qamages 
18 
that the mining operations might cause. In case of any actual damage, the 
19 
burden of proof shall lie with the corporations. 
20 
SEC. 144. Piercing the corporate veil. When the separate personality of the 
21 
corporation from its shareholders is being invoked as defense in order to 
22 
perpetuate a crime, fraud or other machinations, or evade liability, the separate 
23 
personality of the corporation shall be set aside. Civil, criminal and administrative 
24 
actions may thus be filed directly against the members of the Board of Directors, 
25 
officers and/or individual stockholders. 
64 


SEC. 145. Citizen suits. For the purpose of enforcing the provisions of this Act 
2 
or its implementing rules and regulations, any citizen may file appropriate civil, 
3 
criminal and administrative suits against any of the following: 
4 
a) Any person who violates or fails to comply with the provisions of this Act 
5 
or its implementing rules and regulations; 
6 
b) Any publi,c officer with respect to orders, rules and regulations 
7 
inconsistent with this Act; 
8 
9 
c) Any public officer who willfully 01' grossly neglects the performance of 
10 
an act specifically enjoined as a duty by this Act or its rules and 
11 
regulations; or abuses the authority in the performance of a duty/ies 
12 
under this Act or its implementing rules and regulations. 
13 
The court shall exempt such action from the payment of filing fees, except fees 
14 
for actions not capable of pecuniary estimation, and shall likewise, upon prima 
15 
facie showing of non-enforcement or violation complained of, exempt the plaintiff 
16 
from filing an injunction bond for the issuance of a preliminary injunction. 
17 
The court shall determine whether or not the complaint is malicious or baseless 
18 
and shall accordingly dismiss the petition within thirty (30) days upon the tiling of 
19 
the case. 
20 
CHAPTER XIV. PENAL PROVISIONS 
21 
SEC. 146. Grounds for the cancellation of mineral agreements and permits: 
i 
65 


a) Violation of any provision of this Act; 
2 
b) Human rights violations perpetrated by the contractor or any agent of 
} 
the contractor; 
4 
c) Non-payment of taxes; 
5 
d) Bribery, use of force, intimidation, threat, coercion of public officials and 
6 
communities; 
7 
e) Any act that shall create or contribute to conflicts; 
8 
f) Other analogous acts. 
9 
Provided, that, violations of environmental provisions shall cause the immediate 
to 
cancellation of mining permits, and the contractor shall be required to pay for the 
11 
rehabilitation, restoration or clean up of the impacts of such violations. 
12 
Corporations, corporate directors/officers found guilty of the above enumeration 
13 
may be subjected to a perpetual ban in the mining operations in the Philippines. 
14 
SEC. 147. False statements. Any person who knowingly presents ar1Y false 
I 
15 
application, declaration, or evidence to the Government or publishes or ciiluses to 
16 
be published any prospectus or other information containing any false statement 
17 
relating to mines, mining operations or mineral agreements and permits shall, 
18 
upon conviction, be penalized by a fine of not exceeding One Hundred Thousand 
19 
pesos (P1 00,000.00). 
20 
SEC. 148. Illegal exploration. Any person undertaking exploration work without 
21 
the necessary exploration permit shall, upon conviction, be penalized by a fine of 
22 
not exceeding Five Million pesos (P5,000,000.OO). 
23 
SEC. 149. Panning. Panning shall be considered an act of mining. Any person 
66 


undertaking panning without the necessary mining permit shall upon conviction, 
2 
be convicted of illegal panning penalized under Section 27 (RA 7076). In 
3 
addition, such person shall be liable to pay damages made to the environment by 
4 
reason of such panning. In the case of associations, partnerships, or 
5 
corporations, the president and each of the directors thereof shall be responsible 
6 
for the acts committed by such association, corporation, or partnership. 
7 
SEC. 150. Theft of minerals. Any person extracting minerals and disposing the 
8 
same without a mining agreement, lease, permit, license, or steals minerals or 
9 
ores or the products thereof from mines or mills or processing plants shall, upon 
10 
conviction, be imprisoned from six (6) months to six (6) years or pay a fine from 
11 
One 
Hundred 
thousand 
pesos 
(P100,000.00) 
to 
One 
Million 
pesos 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
(P1 ,000,000.00) or both, at the discretion of the appropriate court. In addition, he 
shall be liable to pay damages and compensation for the minerals removed, 
extracted, and disposed of. In the case of associations, partnerships, or 
corporations, the president and each of the directors thereof shall be responsible 
for the acts committed by such association, corporation, or partnership. 
SEC. 151. Unauthorized dealing, selling, and/or buying of gold. Any person, 
partnership or corporation who shall sell, buy or in any manner deal gold from 
any miner or person without being duly authorized by the Bangko Sentral ng 
Pilipinas shall be punished as unauthorized dealing and shall be penalized in 
accordance with the provisions in this Act. 
SEC. 152. Destruction of mining structures. Any person who willfully destroys 
or damages structures in or on the mining area or on the mill sites Sh~lI, upon 
conviction, be imprisoned for a period not to exceed five (5) years and shall, in 
addition, pay compensation for the damages which may have been caused 
thereby. 
67 


SEC. 
153. Mines arson. Any person who willfully sets fire to any mineral 
stockpile, mine or workings, fittings or a mine, shall be guilty of arson and shall 
be punished, upon conviction, by the appropriate court in accordance with the 
provisions of the Revised Penal Code and shall, in addition, pay compensation 
for the damages caused hereby. 
1 
SEC. 154. Willful damage to a mine. Any person who willfully damages a mine, 
2 
unlawfully causes water to run into a mine, obstructs any shaft or passage to a 
3 
mine, renders useless, damages or destroys any machine, appliance, apparatus, 
4 
rope, chain, tackle, or any other things used in a mine, shall be punished, upon 
5 
conviction, by the appropriate court, by imprisonment not exceeding a period of 
6 
five (5) years and shall, in addition, pay compensation for the damages caused 
7 
thereby. 
8 
9 
SEC. 155. Illegal obstruction to permittees or contractors. Any person who, 
10 
without justifiable cause, prevents or obstructs the holder of any permit, 
11 
agreement or lease from undertaking his mining operations shall be punished, 
12 
upon conviction by the appropriate court, by a fine not exceeding Five thousand 
13 
pesos (P5,000.00). 
14 
SEC. 156. Vitiation of FPIC. Any person found to have vitiated the consent of 
15 
the ICCs/IPs through bribery, threat, force, and/or intimidation, or any other 
16 
similar means, shall suffer the penalty of six (6) years and one (1) day to ten (10) 
17 
years in prison, and a fine of at least two million pesos (Php 2,000,000.00). If the 
18 
perpetrator is a government official, the penalty shall be eight (8) years and one 
19 
(1) day to twelve (12) years imprisonment, and a fine of at least four (4) million 
20 
pesos (Php 4,000,000.00). He/she shall be perpetually prohibited from assuming 
68 


• 
public office, and shall be disqualified from receiving other benefits by virtue of 
2 
his/her position in government. 
i 
3 
SEC. 157. Penalty for human rights violations. Contractors or other persons 
, 
4 
who have violated the human rights of communities in connection with the mining 
5 
operations shall be penalized with ten (10) years to fourteen (14) years 
6 
imprisonment and a fine of at least five million pesos (Php 5,000.000,00) and 
7 
shall indemnify the victims. 
8 
SEC. 158. Amendment to Section 27 of Republic Act No. 7076 or the Small-
9 
scale Mining Act. Violations of the provisions of RA 7076 or of the rules and 
10 
regulations issued pursuant hereto shall be penalized with imprisonment of six 
11 
(6) years and one (1) day to twelve (12) years. The State shall confiscate and 
12 
seize equipment, tools and instruments; effect immediate suspension or closure 
13 
of the mining activities of the permittee concerned, and revoke the permit. 
14 
SEC. 159. Abandonment. Contractors and/or permittees who shall abandon 
15 
mines shall be perpetually banned or disqualified from conducting mining 
16 
operations, directly or indirectly. The ban and/or disqualification shall include the 
17 
officers and directors of corporations that have abandoned mines .. 
18 
SEC. 
160. Confiscation of equipment and property. The equipment and 
19 
property of contractors and permit holders violating this Act shall be forl'eited in 
20 
favor of the government. 
21 
SEC. 
161. Non-application of the corporate veil. Any person violating the 
22 
provisions of Commonwealth Act No. 108, or the Anti-Dummy Law of the 
23 
Philippines as amended, or is found to have used the corporate structure to 
69 


• 
• 
1 
defeat the provisions of this Act shall suffer the penalty of five million pesos 
2 
(P5,OOO,OOO.OO) and perpetual ban in the mining industry. 
3 
SEC. 
162. Reinstatement of revoked permits. After notice and hearing, 
4 
revoked permits that have undergone due process may be reinstated, Provided, 
5 
That it may only be reinstated once. 
6 
CHAPTER XV. TRANSITORY PROVISIONS 
7 
SEC. 163. There shall be a moratorium on all mining activities until all the 
8 
systems are in place for the proper implementation of the law. 
I 
9 
SEC. 
164. All eXisting mining permits, licenses and agreements are hereby 
10 
deemed cancelled. Those mine workers and their families that may be displaced 
11 
during the transition period shall receive livelihood support and job placements to 
12 
be facilitated by the appropriate agencies of the State. 
13 
SEC. 165. The classification of public lands as mineral reservations pursuant to 
14 
pre-existing laws shall hereby cease. All such lands shall be closed to mining 
15 
unless opened thereto in accordance with the provisions of this Act. The 
16 
President's power to declare mineral reservations shall henceforth cease to exist. 
17 
A review of the current mineral land classification shall be conducted to 
18 
determine the best livelihood and economic option for the said area. 
19 
SEC. 166. The members of the panels of arbitrators and the provincial or city 
20 
mining regulatory boards established under Republic Act No. 7942 shall hold-
21 
over their positions until replaced in accordance with provisions of this Act. 
70 


• 
• 
1 
CHAPTER XVI. FINAL PROVISIONS 
2 
SEC. 167. Separability clause. The provisions of this Act are hereby declared 
3 
to be separable and, in the event of any such provisions are declared 
4 
unconstitutional, the other provisions which are not affected thereby shall remain 
:s 
in force and effect. 
6 
SEC. 
168. Repealing clause. Republic Act 7942, Presidential Decree 463, 
7 
Presidential Decree 512, and other related mining laws are hereby repealed. All 
8 
provisions in laws, decrees, issuances and other regulations inconsistent with 
9 
this present law shall be deemed amended or repealed if the inconsistency is 
10 
irreconcilable. 
11 
SEC. 
169. Funds. The amount of One Hundred Billion Pesos (PhP 
12 
100,000,000,000.00) is hereby appropriated for the proper functioning of the 
13 
Bureau, the Council, and other bodies established under this Act of which half of 
14 
the said amount shall be allotted for the baseline mineral exploratLon activities of 
15 
the Bureau. 
16 
SEC. 170. Implementing rules and regulations. The implementing rule,s and 
17 
regulations of this Act shall be the product of joint collaboration I by the 
18 
Department, and representatives from the local government units, peoples' 
19 
organizations, sectoral organizations and non-governmental organizations, and 
20 
shall be drawn up after appropriate and exhaustive public consultations at all 
21 
levels nationwide. 
22 
SEC. 171. Effectivity clause. This Act shall take effect within fifteen (15) days 
23 
following its publication in two national newspapers of general circulation in the 
24 
Philippines. 
71 


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~ .' 
Approved, 
72