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SIXTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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Second Regular Session 
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'14 
AUG26 P4:03 
SENATE 
2'3''''111 
S. B. No. ----l::!!..Y_'-l_'-='% 
HECEIVED HY:'~:., 
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV 
AN ACT 
PROVIDING FOR THE MANDATORY DOMESTIC PROCESSING OF ALL MINERAL ORES, 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7942 OTHERWISE KNOWN AS 
THE PHILIPPINE MINING ACT OF 1995 AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
According to the Mines and Geosciences Bureau (MGB), the Philippines is among the 
top five countries with the highest overall mineral reserves in the world. Given the country's 
vast amounts of mineral resources, the Philippine mining industry has great potential to be a 
major growth sector for our economy. With a proper framework for the responsible utilization 
and management of the country's mineral resources, mining can generate much-needed 
exports, foreign investments, government revenues and employment. 1 
At present, the potential of the mining industry remains unrealized. The contribution of 
mining to the economy is low, accounting for less than 1% of GDP from 2003 to 2012. One of 
the reasons for this is the limited capability for mineral processing within the country. 
Consequently, most of the industry's products are exported in primary form, with little added 
value. 
The proposed bill requires that all extracted minerals be processed within the country 
before export, thereby triggering the development of our country's mineral processing industry 
and enhancing the value of our mineral products. Ultimately, this measure seeks to generate 
more domestic income, attract more investments, and lead to more jobs and livelihood for the 
Filipino people. 
In light of the ASEAN Economic Integration, the proposed measure therefore seeks to 
raise the value of our Philippine exports and expand the industry's contribution to our 
economic pie. 
In view of the foregoing, the approval ofthis bill is earnestly sought. 
{,v.~ 
~~ 
Senator aolo Benigno" am" A. Aquino IV 
1 Senate Economic Planning Office (2013). RealiZing the Philippines' Mining Potential. 
http://www.senate.gov.ph/publications/PB 2013-12 - Mining Policy Brief final revised 010614.pdf 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S.B. No. 2374 
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV 
AN ACT 
'14 
~UG 26 P 4 :03 
PROVIDING FOR THE MANDATORY DOMESTIC PROCESSING OF ALL MINERAL ORES, 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7942 OTHERWISE KNOWN AS 
THE PHILIPPINE MINING ACT OF 1995 AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Section 3{y) of Republic Act No. 7942 otherwise known as "The Philippine 
2 
Mining Act of 1995" is hereby amended to read as follows: 
3 
(y) Mineral processing means [the milling, benefication or upgrading of 
4 
ores or minerals and rocks or by similar means to convert the same into 
5 
marketable 
products.] 
THE 
PROCESS 
OF 
SEPARATING 
COMMERCIALLY 
6 
VALUABLE MINERALS FROM THEIR MINERAL ORES. 
7 
SECTION 2. Section 53 of Republic Act No. 7942 otherwise known as "The Philippine 
8 
Mining Act of 1995" is hereby amended to read as follows: 
9 
Section 53: Ore Transport Permit. A permit specifying the origin AND 
10 
DESTINATION WITHIN THE PHILIPPINES and quantity of non-processed mineral 
11 
ores or minerals shall be required for their transport. Transport permits shall be 
12 
issued by the mines regional director who has jurisdiction over the area where 
13 
the ores were extracted. In the case of mineral ores or minerals being 
14 
transported from the small-scale mining areas to the custom mills or processing 
15 
plants, the Provincial Mining Regulatory Board (PMRB) concerned shall formulate 
16 
their own policies to govern such transport of ores produced by small-scale 
17 
miners. The absence of a permit shall be considered as prima facie evidence of 
18 
illegal mining and shall be sufficient cause for the Government to confiscate the 
19 
ores or minerals being transported, the tools and equipment utilized, and the 
20 
vehicle containing the same. Ore samples not exceeding two metric tons (2 m.t.) 
21 
to be used exclusively for assay or pilot test purposes shall be exempted from 
22 
such requirement. 
23 
SECTION 3. Section 55 of Republic Act No. 7942 otherwise known as "The Philippine 
24 
Mining Act of 1995" is hereby amended to read as follows: 
25 
Section 55: Minerals Processing and Minerals Processing Permit. ANY MINERAL 
26 
ORES EXTRACTED UNDER THE PROVISIONS OF THIS ACT SHALL BE PROCESSED 
27 
WITHIN THE COUNTRY. NO PERSON GRANTED WITH PERMIT FOR PURPOSES 
28 
OF MINING OPERATION SHALL BE ALLOWED TO EXPORT, THE UNPROCESSED 
29 
MINERAL ORES TO OTHER COUNTRY FOR PUPOSES OF TRADING OF MINERAL 
30 
PRODUCTS. 


t 
" 
'.' .. 
1 
ANY PERSON EXPORTING THE UNPROCESSEED MINERAL ORES SHALL, UPON 
2 
CONVICTION, BE IMPRISONED FROM SIX (6) YEARS AND ONE (1) DAY TO 
3 
TWELVE (12) YEARS AND PAY THE FINE AMOUNTING TO TWICE THE VALUE OF 
4 
THE SEIZED MINERAL ORES. IN ADDITION, THE CARGO CONTAINING THE 
5 
UNPROCESSED MINERAL ORES SHALL BE CONFISCATED IN FAVOR OF THE 
6 
STATE. IN THE CASE OF ASSOCIATIONS, PARTNERSHIPS, OR CORPORATIONS, 
7 
THE PRESIDENT AND EACH OF THE DIRECTORS IN CASE OF PARTNERSHIPS, 
8 
SHALL BE RESPONSIBLE FOR THE ACTS COMMITTED BY SUCH ASSOCIATION, 
9 
PARTNERSHIP, OR CORPORATION. 
10 
No person shall engage in the processing of minerals without first 
11 
securing a minerals processing permit from the Secretary. Minerals processing 
12 
permit shall be a period of five (5) years renewable for like periods but not to 
13 
exceed a total term of twenty-five (25) years. In the case of mineral ores or 
14 
minerals produced by the small-scale miners, the processing thereof as well as 
15 
the licensing of their custom mills, or processing plants shall continue to be 
16 
governed by the provisions of Republic Act No. 7076. 
17 
SECTION 4. Implementing Rules and Regulations. - For purposes of the implementation 
18 
of this Act, the Secretary of the Department of Environment and Natural Resources shall issue' 
19 
such rules and regulations necessary for the effective implementation of this Act. 
20 
SECTION 5. Repealing Clause. - All other laws, decrees, orders, issuances and rules and 
21 
regulations or parts thereof inconsistent with this Act, are hereby repealed or modified 
22 
accordingly. 
23 
SECTION 6. Separability Clause. -
All other provIsions of Republic Act No. 7942 
24 
otherwise known as "The Philippine Mining Act of 1995" not otherwise affected by the 
25 
provisions ofthis Act shall remain in full force and effect. 
26 
SECTION 7. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
27 
publication in at least two (2) national newspapers of general circulation. 
28 
Approved,