Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO.______ 
Introduced by HONORABLE STELLA LUZ A. QUIMBO 
AN ACT ESTABLISHING THE FISCAL REGIME AND REVENUE SHARING 
ARRANGEMENT FOR LARGE-SCALE METALLIC MINING, AND FOR OTHER 
PURPOSES 
EXPLANATORY NOTE 
Executive Order No. 79 dated 6 July 2012 requires a new legislation rationalizing 
existing sharing schemes on mining revenues. This is pursuant to the recommendation 
of the Climate Change Adaptation and Mitigation and Economic Development Clusters 
in a Joint Resolution dated 16 March 2012 setting the direction and laying the 
foundation for the implementation of Responsible Mining Policies, foremost among 
which is to improve environmental mining standards and increase revenues to 
promote sustainable economic development and social growth, both at the national 
and local levels. 
This Bill proposes a fiscal regime and revenue sharing arrangement between the 
Government and the mining Contractor for large-scale metallic mineral mining 
operations, wherein the Government Share shall be ten percent (10%) of Gross 
Revenue or fifty-five percent (55%) of the Adjusted Net Mining Revenue (ANMR), 
whichever is higher. In the event that the ANMR Margin exceeds fifty percent (50%) 
due to increase in metal prices or other factors, the Government, as owner of the 
mineral, shall get fifty-five percent (55%) of the Threshold ANMR plus sixty percent 
(60%) on the excess ANMR. Adjusted Net Mining Revenue is arrived at after deducting 
from Gross Revenue the allowable deductible expenses. 
Payment to the Government shall be in lieu of all national and local taxes including 
income tax, royalty for indigenous cultural communities (ICC), duties on imported 
specialized capital mining equipment, fees for mayors and/or business permits and 
other fees and charges imposed by the host LGUs. However, the Contractor shall pay 
real property tax, value added tax, capital gains tax, stock transaction tax, 
documentary stamp tax, withholding tax on passive income, donor’s tax, 
July 22, 2022
10:29 am
2246


environmental fee, Securities and Exchange Commission (SEC) fee, water usage fee, 
and administrative and judicial cost and penalty. 
 
The Government Share shall be allocated as follows: sixty percent (60%) to the 
National Government and forty percent (40%) to the Local Government Units. If the 
contract area is in an ancestral domain, the royalties for the ICCs shall be taken from 
the Government Share. Thereafter, the Net Government Share shall be allocated to 
the NG and the LGUs at the ratio stated earlier. 
 
The Bill also prescribes that mining areas that will be covered shall be declared as 
Mining Industry Zones which will be administered by the Philippine Mining 
Development Corporation. The PMDC shall provide assistance to the Contractor in 
having its business registered with the appropriate government agencies and in 
applying with the concerned entities for the provision of services needed in the 
operation of the business. On the other hand, the Mines and Geosciences Bureau 
(MGB) of the Department of Environment and Natural Resources (DENR) shall 
continue to exercise its functions as mandated by existing laws unless otherwise 
amended by the Bill. 
 
A salient feature of the Bill provides for more speedy remittances of the LGU shares 
of ten days from the end of each quarter. 
 
The Bill shall govern and apply to new Mineral Agreements (MAs) and Financial or 
Technical Assistance Agreements (FTAAs) covering large-scale metallic mineral 
mining operations that are entered into upon the effectivity of the Act. It shall also cover 
existing MAs and FTAAs where such agreements provide that any terms and 
conditions resulting from repeal or amendment of any existing laws or regulations or 
from the enactment of a law, regulation or administrative order shall be considered 
part of said agreements. It shall also govern the renewal and renegotiation of existing 
MAs or FTAAs. 
 
The Bill was previously filed by Former Rep. “Miro” S. Quimbo in the Third Reading 
during the 17th Congress. In light of the foregoing, the urgent passage of this Bill is 
earnestly sought. 
 
 
 
 
 
 
 STELLA LUZ A. QUIMBO 
     Representative 
                 Second District, Marikina City 
 
 
 
 
 
 
 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO.______ 
Introduced by HONORABLE STELLA LUZ A. QUIMBO 
AN ACT ESTABLISHING THE FISCAL REGIME AND REVENUE SHARING 
ARRANGEMENT FOR LARGE-SCALE METALLIC MINING, AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
1 
Congress assembled: 
2 
3 
CHAPTER I 
4 
GENERAL PROVISIONS 
5 
6 
SECTION 1. TITLE. – This Act shall be known as the “Philippine Fiscal Regime and 
7 
Revenue Sharing Arrangement for Large-scale Metallic Mining Act of 2014”. 
8 
9 
SECTION 2. DECLARATION OF POLICY. 
10 
11 
a. All mineral resources in public and private lands within the territory and
12 
exclusive economic zone of the Republic of the Philippines are owned by the
13 
State. The exploration, extraction and utilization of these resources shall be
14 
allowed based on real contributions to the economic growth of the country,
15 
and subject to the exercise by the State of its regulatory powers to promote
16 
and protect the general welfare of the country.
17 
b. The State shall effectively safeguard the environment and protect the rights of
18 
affected communities.
19 
c. The State shall get a fair and equitable share of the revenues and economic
20 
benefits derived from the mineral resources. Any economic rent arising from
21 
such exploration, extraction and utilization belongs to the State.
22 
d. The State shall establish a fiscal regime for the large-scale exploration,
23 
development and commercial utilization of mineral resources in the country
24 
that shall apply to the Contractor.
25 
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e. The State shall promote investments in mining areas allowed by the 
1 
Government consistent with the revenue sharing arrangements under this Act. 
2 
f. The State shall encourage mining investments to develop value-adding and 
3 
downstream industries pursuant to the development program of the country. 
4 
 
5 
SECTION 3. DEFINITION OF TERMS. As used herein, the following terms shall be 
6 
defined as follows: 
7 
 
8 
a. “Adjusted Net Mining Revenue” means gross revenue less allowable costs 
9 
that include production costs as defined in item (t) hereof and the actual 
10 
general and administrative costs, but not to exceed ten percent (10%) of the 
11 
direct mining, milling and processing costs. Other allowable costs may be 
12 
determined in the Implementing Rules and Regulations of this Act. Pre-
13 
operating expenses may be allowed as deduction provided that the amount 
14 
shall be deducted within a five-year period from start of commercial operation. 
15 
The interest expenses, and bank and financial charges shall not be allowed 
16 
as deductible expenses from the gross revenue. 
17 
b. “Adjusted Net Mining Revenue Margin” means total adjusted net margin 
18 
revenue divided by gross revenue. 
19 
c. “Administrative and Judicial Costs” means fees, charges, and or penalties 
20 
imposed by administrative agencies in the exercise of their regular 
21 
administrative functions and or quasi-judicial functions, and those imposed by 
22 
the judiciary under the relevant laws and rules and regulations. 
23 
d. “Contract Area” means the land or body of water delineated under a mineral 
24 
agreement or financial or technical assistance agreement properly defined by 
25 
longitude and latitude. 
26 
e. “Contractor” means a qualified person, acting alone or in consortium, who is a 
27 
party to a mineral agreement or to a financial or technical assistance 
28 
agreement. 
29 
f. “Co-production Agreement” means an agreement between the Government 
30 
and the Contractor wherein the Government shall provide inputs to the mining 
31 
operations other than the mineral source. 
32 
g. “Direct Milling and Processing Costs” means expenditures and expenses 
33 
directly incurred in the mechanical and physical processing and/or chemical 
34 
separation of the ore from the waste to produce marketable mineral products. 
35 
h. “Direct Mining Costs” means expenditures and expenses directly incurred in 
36 
all activities preparatory to and in the actual extraction of the ore from the 
37 
earth and transporting it to the mill plant for mineral processing. 
38 
i. “Excess Adjusted Net Mining Revenue” means the adjusted net mining 
39 
revenue that is in excess of the threshold adjusted net mining revenue or the 
40 
difference between the total adjusted net mining revenue and the threshold 
41 
adjusted net mining revenue. 
42 


j. “Final Mining Area” means the contract area or portion(s) thereof identified by 
1 
the Contractor as defined and delineated in a survey plan duly approved by 
2 
the Director / Regional Director concerned of the Mines and Geosciences 
3 
Bureau for purposes of large-scale mining, development and utilization of 
4 
mineral resources, and sites for support facilities. 
5 
k. “Financial or Technical Assistance Agreement” means a contract involving 
6 
financial or technical assistance for large-scale exploration, development and 
7 
utilization of mineral resources. 
8 
l. “Joint-venture Agreement” means an agreement where a joint-venture 
9 
company is organized by the Government and the Contractor with both 
10 
parties having equity shares. Aside from earnings in equity, the Government 
11 
shall be entitled to a share in the gross output. 
12 
m. “Large scale metallic mining” means mining activities involving metallic 
13 
minerals and which are not classified as small-scale mining. 
14 
n. “Metallic Mineral” means a mineral having a brilliant appearance, quite 
15 
opaque to light, usually giving a black or very black streak, and from which a 
16 
metallic element/component can be extracted/utilized for profit. 
17 
o. “Mineral Agreement” means a means a contract between the Government 
18 
and a Contractor, involving mineral production-sharing agreement, co-
19 
production agreement, or joint-venture agreement. 
20 
p. “Mineral Processing” means the milling, beneficiation, leaching, smelting, 
21 
cyanidation, calcinations, upgrading or by similar means, of ores, minerals, 
22 
rocks, mill tailings, mine waste and other metallurgical by-products to convert 
23 
the same into marketable products. 
24 
q. “Mineral Production-sharing Agreement” means an agreement where the 
25 
Government grants to the Contractor the exclusive right to conduct mining 
26 
operations within a contract area and shares in the revenue pursuant to 
27 
Section 7 of this Act. The Contractor shall provide the financing, technology, 
28 
management and personnel necessary for the implementation of this 
29 
agreement. 
30 
r. “Mineral Products” means materials derived from ores, minerals and/or rocks 
31 
and prepared into a marketable state by mineral processing. 
32 
s. “Mining Industry Zone” means a final mining area as defined in Section 3 (j) of 
33 
this Act, endorsed by the Secretary of the Department of Environment and 
34 
Natural Resources for declaration as such and whose metes and bounds are 
35 
fixed and delimited by a Presidential Proclamation. 
36 
t. “Production Cost” means the direct mining, milling and processing costs, and 
37 
other allowable costs which are necessary and directly related to mining 
38 
operations. 
39 
u. “Small-scale mining” means mining activities which rely heavily on manual 
40 
labor using simple implements and methods and do not use explosives or 
41 
heavy mining equipment. 
42 
v. “Threshold Adjusted Net Mining Revenue” means fifty percent (50%) of the 
43 
gross revenue. 
44 


 
1 
The definitions of the terms under Section 3 (e), (f), (k), (l), (o), and (q), and under 
2 
Section 3 (h), (n), (p), and (r) were lifted from Republic Act No. 7942, known as the 
3 
“Philippine Mining Act of 1995” and its Implementing Rules and Regulations, 
4 
respectively, as such the meaning ascribed thereto under RA 7942 and its IRR shall 
5 
be maintained. 
6 
 
7 
CHAPTER II 
8 
SCOPE OF APPLICATION 
9 
 
10 
SECTION 4. SCOPE. This Act shall govern and apply to new Mineral Agreements 
11 
(MAs) and Financial or Technical Assistance Agreements (FTAAs) covering large-
12 
scale metallic mineral mining operations that are entered into upon the effectivity of 
13 
this Act. This shall also cover existing MAs and FTAAs where such agreements 
14 
provide that any terms and conditions resulting from repeal or amendment of any 
15 
existing laws or regulations or from the enactment of a law, regulation or 
16 
administrative order shall be considered a part of said agreements. 
17 
 
The renewal and renegotiation of existing MAs and FTAAs shall also be 
18 
governed by this Act. 
19 
 
20 
CHAPTER III 
21 
DECLARATION OF MINING INDUSTRY ZONE 
22 
 
23 
SECTION 5. MINING INDUSTRY ZONES. All mining areas governed by this Act 
24 
shall be declared by the President as Mining Industry Zones (MIZs) through a 
25 
Presidential Proclamation upon endorsement by the Secretary of the Department 
26 
of Environment and Natural Resources (DENR). For this purpose, only the mining 
27 
areas approved and certified by the Mines and Geosciences Bureau (MGB) may 
28 
be endorsed by the DENR Secretary to the President. 
29 
 
The MGB approval and certification process shall pass through consultation 
30 
with the concerned Local Government Units (LGUs) and the Indigenous Cultural 
31 
Communities (ICCs), if the mining area is within an ancestral domain. This 
32 
consultation process shall include an LGU endorsement for the establishment of 
33 
the mining area as MIZ. In consideration of the payment to LGU of 40% of the total 
34 
government share referred to in Section 12 of this Act, the LGU endorsement shall 
35 
include a waiver of its power to regulate the mining business operations through 
36 
issuance of business permits and other license requirements imposed by the LGU 
37 
pursuant to the Local Government Code of 1991, as amended. 
38 
 
The establishment of the MIZ must conform to the following criteria: 
39 
a. The proposed area is a “Go Zone” as identified by an appropriate 
40 
government agency or under any applicable law; 
41 
b. The final mining area shall be endorsed by the Secretary of the 
42 
Department of Environment and Natural Resources (DENR) to the 
43 
President; 
44 


c. The final mining area must have a significant advantage to the 
1 
economy and its potential profitability can be established; and 
2 
d. Other criteria as may be determined by the Mining Industry 
3 
Coordinating Council (MICC) or an inter-agency Group that may be 
4 
created, tasked or assigned by the President. 
5 
No mining operations can be undertaken in any mining area without the 
6 
LGU/ICC endorsement and the Presidential Proclamation of an MIZ. 
7 
 
8 
SECTION 6. RELATIONSHIP BETWEEN THE LGU AND THE MIZ 
9 
ADMINISTRATION. Once an MIZ is established, the administration of all mining 
10 
activities within the zone shall exclusively pertain to the MIZ Administrator referred to 
11 
in Section 15 of this Act. Any local issuances and/or directions that may be issued by 
12 
the host LGU, which may affect or relate to mining operations and other incidental 
13 
activities thereto, shall be consistent with and shall conform to the provisions of this 
14 
Act and to the laws, regulations, policies and decisions taken by the National 
15 
Government. 
16 
 
17 
CHAPTER IV 
18 
FISCAL REGIME AND REVENUE SHARING ARRANGEMENT 
19 
 
20 
SECTION 7. FISCAL REGIME AND REVENUE SHARING ARRANGEMENT FOR 
21 
MAs AND FTAAs. For every final mining area, the Government Share that shall be 
22 
paid by the Contractor shall be whichever is higher of the following: 
23 
 
24 
a. Ten percent (10%) of Gross Revenue; or 
25 
 
26 
b. Fifty-five percent (55%) of Adjusted Net Mining Revenue; Provided, that in the 
27 
event that the ANMR Margin exceeds fifty percent (50%) due to increase in 
28 
metal prices or other factors, the Government, as owner of the mineral, shall 
29 
get fifty-five percent (55%) of the Threshold ANMR, as defined in this Act, plus 
30 
sixty percent (60%) of the Excess ANMR. 
31 
 
32 
The payment of Government Share shall be in lieu of all national and local taxes 
33 
including corporate income tax, royalty for the ICCs, duties on imported specialized 
34 
capital mining equipment, fees for mayor’s and/or business permits, and other fees 
35 
and charges imposed by the host LGUs pursuant to Local Government Code of 1991, 
36 
as amended; Provided that the Contractor shall still be liable for the payment of real 
37 
property tax, value added tax, capital gains tax, stock transaction tax, documentary 
38 
stamp tax, withholding tax on passive income, donor’s tax, environmental fee, 
39 
Securities and Exchange Commission (SEC) fee, water usage fee, and administrative 
40 
and judicial cost and penalty. 
41 
 
42 
The list of exceptions shall be reviewed annually, or as often as may be necessary; 
43 
provided, however, that none of the exceptions indicated herein shall be delisted. 
44 
 
45 


For purposes of this section, each final mining area is treated as a separate taxable 
1 
entity. If the Contractor has more than one final mining area in a contract area or is a 
2 
party to more than one mineral agreement, each final mining area shall be treated as 
3 
a separate taxable entity. 
4 
 
5 
SECTION 8. SOCIAL AND ENVIRONMENTAL FUNDS. In accordance with existing 
6 
laws, rules and regulations, the Contractor shall continue to allocate and spend funds 
7 
for the following: 
8 
 
9 
a. Social development and management program (SDMP) and community 
10 
development program (CDP) for the host communities; 
11 
b. Environmental Protection and Enhancement Program (EPEP); and 
12 
c. Contingent Liability and Rehabilitation Fund (CLRF) which consists of the 
13 
following: 
14 
i. 
Mine Rehabilitation Fund (MRF which further consists of the Monitoring 
15 
Trust Fund and Rehabilitation Cash Fund); 
16 
ii. 
Mine Wastes and Tailings (MWT) Fees; and 
17 
iii. 
Final Mine Rehabilitation and Decommissioning Fund (FMRDF). 
18 
 
19 
In addition, the Contractor shall allocate funds to cover costs for the following: 
20 
a. Restoration/rehabilitation of areas and communities affected by disasters 
21 
arising from mining operations; and 
22 
b. Perpetual liability insurance to cover damages in the mining area where the 
23 
Contractor previously conducted mining operations, as well as in identified 
24 
impact areas. 
25 
 
26 
SECTION 9. RECOVERABLE PRE-OPERATING EXPENSES. Pre-operating 
27 
Expenses allowed for recovery under this Act shall be limited to actual expenses and 
28 
capital expenditures relating to the following which shall have been incurred before 
29 
the commencement of commercial operation: 
30 
 
31 
a. Cost of acquisition, maintenance and administration of the contract area; 
32 
b. Cost of exploration, evaluation of explored areas, feasibility and 
33 
environmental studies and rehabilitation of areas affected during the pre-
34 
operating period; 
35 
c. Cost of meaningful CSR projects and activities undertaken for the affected 
36 
communities within the contract area; 
37 
d. Payments to landowners, surface rights holders, claim owners and Indigenous 
38 
Peoples or Indigenous Cultural Communities, if any; 
39 
e. Training expenses for personnel; 
40 
f. Consultancy fees incurred for work directly related to the mining operations 
41 
and consistent with the Contractor’s approved work program; 
42 


g. Cost of the establishment and administration of field and regional offices 
1 
including administrative overheads incurred within the Philippines which are 
2 
properly allocable to the mining operations and directly related to the 
3 
performance of the Contractor’s obligations; 
4 
h. Costs of constructing and developing the mine which include machinery and 
5 
equipment and real property; and 
6 
i. General and administrative expenses actually incurred by the Contractor to 
7 
support the exploration and the construction and development of the mine. 
8 
 
9 
The actual costs of (c), (f) and (i) shall be allowed to be deducted but their 
10 
aggregate amount shall not exceed five percent (5%) of the aggregate cost of (b) 
11 
and (h). 
12 
 
13 
Payments made to Government, both national and local, shall not be considered 
14 
for recovery. All Pre-Operating Expenses reported for recovery shall be subject to 
15 
verification by the MGB and/or PMDC or their designated representative or auditor. 
16 
 
17 
SECTION 10. FISCAL REGIME FOR CO-PRODUCTION AND JOINT-VENTURE 
18 
AGREEMENTS. The share of the Government in Co-production and Joint-venture 
19 
agreements shall be negotiated by the Government and the Contractor provided that 
20 
the Government Share shall not be less than the share for MAs and FTAAs as 
21 
prescribed in Section 7 of this Act. 
22 
 
23 
SECTION 11. MINING CONTRACT. The fiscal regime and revenue sharing 
24 
arrangement provided herein and the applicable terms and conditions provided 
25 
under existing laws shall be embodied in the MAs and FTAAs that shall be prepared 
26 
by the MGB. 
27 
 
28 
CHAPTER V 
29 
ALLOCATION OF GOVERNMENT SHARE 
30 
 
31 
SECTION 12. ALLOCATION. The Government Share shall be allocated as follows: 
32 
a. National Government (NG): sixty percent (60%) 
33 
b. Local Government Units (LGUs) hosting the MIZ: forty percent (40%). 
34 
 
35 
If the contract area is in an ancestral land/domain, the royalty for the ICC shall be 
36 
taken from the Government Share. Thereafter, the Net Government Share shall be 
37 
allocated to the National Government (NG) and the LGUs at the above stated ratio. 
38 
 
39 


SECTION 13. PAYMENT AND DISTRIBUTION OF GOVERNMENT SHARE. The 
1 
Government Share shall be remitted and paid quarterly by the Contractor to the 
2 
Government. 
3 
 
The ICC share shall be directly remitted and paid by the Contractor to the ICC 
4 
within five (5) days from the end of each quarter. 
5 
 
Within five (5) days from the end of each quarter, the Contractor shall pay the 
6 
Government Share, net of the ICC share, if applicable, through the Electronic Filing 
7 
and Payment System (EFPS) facility of the BIR or its accredited bank which shall 
8 
credit such payment to the Bureau of Treasury (BTr) on the following banking day 
9 
from payment. The BTr, within five (5) banking days from receipt thereof, shall 
10 
deposit the forty percent (40%) LGU share to the account of the LGUs through their 
11 
respective GFIs or their authorized agent bank. 
12 
 
The distribution of the LGU shares and the royalties allocated to the ICCs 
13 
shall be based on existing laws. The utilization of these shares shall be covered by 
14 
Section 18 of this Act. 
15 
 
The Government Share shall be recorded by the BIR as follows: 
16 
 
17 
a. Fifty percent (50%) as Corporate Income Tax; and 
18 
b. Fifty percent (50%) as Royalty Tax. 
19 
 
20 
SECTION 14. ENVIRONMENTAL / REHABILITATION FUND. An 
21 
Environmental/Rehabilitation Fund of one-half of one percent (1/2 of 1%) from the 
22 
NG share to be treated as a Trust Fund shall be established for government 
23 
environmental mining programs. The specific activities and projects under these 
24 
programs shall be determined and approved by the MICC or by an inter-agency 
25 
Group created by the President. The utilization of this fund shall be covered by 
26 
Section 18 of this Act. 
27 
 
28 
CHAPTER VI 
29 
ADMINISTRATION OF THE MINING INDUSTRY ZONE 
30 
 
31 
SECTION 15. ADMINISTRATION OF THE MIZ. The Philippine Mining Development 
32 
Corporation (PMDC) created through Presidential Memorandum dated April 9, 2003, 
33 
shall be designated as Administrator of MIZs proclaimed under this Act. It shall have 
34 
the following powers and functions: 
35 
a. Formulate policies, rules and regulations to implement its functions under this 
36 
Act; 
37 
b. Evaluate and determine the Government Share on a monthly basis, which the 
38 
Contractor shall remit and pay to the National Government (NG) and to the 
39 
LGUs on a quarterly basis; 
40 
c. Ensure that Government Shares are computed in accordance with this Act; 
41 


d. Establish a One Stop Action unit, composed of all government agencies 
1 
involved in the operation of MIZs, whose designated representatives are 
2 
clothed with authority to act and approve or deny any matter relative to their 
3 
respective agencies; 
4 
e. Provide assistance to the Contractor in having its business registered with the 
5 
appropriate government agencies such as the Securities and Exchange 
6 
Commission (Sec), Social Security System (SSS), Department of Labor and 
7 
Employment (DOLE) and Bureau of Internal Revenue (BIR); 
8 
f. Provide assistance to the Contractor in applying with the concerned entities 
9 
for the provision of utilities and other services needed in the operation of the 
10 
business such as supply of electricity or power, water, telecommunications, 
11 
and security in the area and waste disposal; 
12 
g. Issue import permits, building permits, business permits and other necessary 
13 
permits to the Contractor; 
14 
h. Gather and verify data on the production and sales of the Contractor including 
15 
the assaying of the mineral product. The data shall include tonnage or 
16 
volume, value, market price and assay results, such as composition, 
17 
percentage of metals, grade, purity, among others. 
18 
i. Create and maintain a mineral revenue database system of the MIZ for 
19 
reporting purposes and support the implementation of the Extractive 
20 
Industries Transparency Initiative (EITI); 
21 
j. Render annual reports to the President and to the MICC or inter-agency 
22 
Group that may be created by the President; and 
23 
k. Perform such other functions and duties relevant under this Act. 
24 
 
25 
For this purpose, a one-time allocation of One Hundred Million Pesos 
26 
(Php100,000,000.00) shall be appropriated for the administrative, promotional and 
27 
operational expenses relating to the MIZs of the PMDC and all fees and charges 
28 
collected by the PMDC shall be retained by the said office to sustain its operations. 
29 
 
30 
CHAPTER VII 
31 
INCENTIVE 
32 
 
33 
SECTION 16. CAPITAL EQUIPMENT INCENTIVE. The Contractor shall be entitled 
34 
to duty-free importation of specialized capital mining equipment that are directly 
35 
needed in the exploration, extraction and processing of its mineral ores. 
36 
 
37 
CHAPTER VIII 
38 
INSTITUTIONAL ARRANGEMENTS 
39 
 
40 
SECTION 17. MINES AND GEOSCIENCE BUREAU. The MGB shall continue to 
41 
exercise its functions as mandated by existing laws unless otherwise amended by 
42 
this Act. 
43 


 
1 
SECTION 18. FUND UTILIZATION AND OTHER REPORTS. The LGUs, ICCs 
2 
through the NCIP, the DENR and other concerned agencies allocated funds from the 
3 
Government Share shall regularly submit reports to PMDC on completed projects 
4 
and activities where their respective shares were utilized. They shall also be required 
5 
to submit updated lists of current mining contractors, locations of mining projects and 
6 
the areas covered or occupied by the mineral deposits, land area and population of 
7 
the mining host communities, and other relevant information. 
8 
 
9 
SECTION 19. ADMINISTRATIVE ARRANGEMENTS. The mandates, powers and 
10 
functions provided in this Act shall be carried out through an agreement between and 
11 
among the PMDC, MGB and other concerned agencies in accordance with the 
12 
implementing rules and regulations promulgated under this Act, for purposes of 
13 
coordination and consistency in policy formulation and implementation. 
14 
 
15 
CHAPTER IX 
16 
TRANSITORY AND MISCELLANEOUS PROVISIONS 
17 
 
18 
SECTION 20. IMPLEMENTING RULES AND REGULATIONS. A committee shall, 
19 
within ninety (90) days from the effectivity of this Act, promulgate rules and 
20 
regulations to implement the intent and provisions of this Act. The Committee shall 
21 
be chaired by the DTI and composed of the following: 
22 
 
23 
a. Department of Environment and Natural Resources; 
24 
b. Department of Finance; 
25 
c. National Economic and Development Authority; 
26 
d. Department of Budget and Management; 
27 
e. Department of Interior and Local Government; 
28 
f. Bureau of Internal Revenue; 
29 
g. Board of Investments; 
30 
h. Bureau of Local Government Finance; and 
31 
i. Philippine Mining Development Corporation. 
32 
 
33 
SECTION 21. VESTED RIGHT. Valid MAs and FTAAs existing prior to the effectivity 
34 
of this Act that do not provide that any terms and conditions resulting from a repeal 
35 
or amendment of any existing laws or regulations or from the enactment of a law, 
36 
regulation or administrative order shall be considered a part of said agreements shall 
37 
continue to be governed by the terms and conditions contained in their respective 
38 
mining contracts. 
39 
 
40 


SECTION 22. REPEALING CLAUSE. Sections 80, 81, 83, 84, 86, 87, 88, 90, 92 
1 
and 93 of Republic Act No. 7942 are hereby repealed or amended to the extent that 
2 
they relate to the Scope of this Act. 
3 
 
Any laws, rules and regulations, decrees and executive orders inconsistent 
4 
with the provisions of this Act are hereby repealed and modified accordingly. 
5 
 
6 
SECTION 23. SEPARABILITY CLAUSE. If any provision of this Act is subsequently 
7 
declared unconstitutional, the validity of the remaining provisions hereof shall remain 
8 
in full force and effect. 
9 
 
10 
SECTION 24. EFFECTIVITY CLAUSE. This Act shall take effect fifteen (15) days 
11 
after its publication in at least two (2) national newspapers of general circulation. 
12 
 
Approved,