HOUSE OF REPRES ENTATINES

RECEIVED
apache Wipes part 01 AUG 2016
House of Representation : t
Quezon City, Metro Manila ~

SEVENTEENTH CONGRES|
First Regular Session er ereTRATON UNIT

1S aNd AER SERVICE

House Bill No._ 2165

Introduced by Honorable ERLPE JOHN “PING” M. AMANTE

EXPLANATORY NOTE

This Bill seeks to amend certain provisions of Republic Act No. 7942 otherwise
known as the Philippine Mining Act of 1995 particularly on the mandatory domestic
processing of mineral ores.

‘The Philippines is endowed with rich natural resources which includes among
others rich mineral reserve which is a big potential to the growing sector of mining
industry. The country’s estimated mineral reserves are placed at about 14.5 Billion
Metric tons of metallic minerals and about 67.6 Billion Metric tons of non-metallic
minerals which are estimated to be One Trillion Dollar industry. The Philippines is
said to be the Fifth richest country in mineral reserves.

This measure will impose a complete ban on the export of unprocessed mineral
ores to encourage the growth and develop the capability of mineral processing
industry in the country.

Among the positive attributes and significant contribution of this measure is
the increase in the domestic revenue which will be a big impact the economic growth
of the country. It will encourage investments mainly on the mineral processing sector
which in turn creates and offers more jobs and provides increase in the domestic
revenues through taxes and duties.

The establishment of mineral processing plants is also seen to be one of the
major drivers towards economic growth because the transformation of the extracted
primary mineral or the mineral ores to a higher quality and quantity of the processed
minerals will result to the value-adding of the minerals. Value-adding approach in
mineral processing refers to the enhancement of the quality and quantity of the
minerals through different stages and ranges of processing activity, thus, stabilization
and increase in prices of the output is expected.

In view of the foregoing, the approval of this Bill is earnestly sought.

moe M. AMANTE



Republic of the Bhilippines
House of Representatives
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

21e5
House Bill No,_ “169

Introduced by Honorable ERLPE JOHN “PING” M. AMANTE

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.

Be it enacted by the Senate and the House of Representatives in session
assembled:

Section 1. Section 3 (y) of Republic Act No 7942 otherwise known as “The
Philippine Mining Act of 1995” is hereby amended to read as follows:

(y) MINERAL PROCESSING MEANS (the milling, beneficiation or upgrading of
ores or minerals and rocks or by similar means to convert the same into
marketable products.) THE PROCESS OF SEPARATING COMMERCIALLY
VALUABLE MINERALS FROM THEIR MINERAL ORES.

Section 2. Section 53 of Republic Act No 7942 otherwise known as “The
Philippine Mining Act of 1995” is hereby amended to read as follows:

Section 53
Ore Transport Permit

A permit specifying the origin AND DESTINATION WITHIN THE PHILIPPINES
and quantity of non-processed mineral ores or minerals shall be required for
their transport. Transport permits shall be issued by the mines regional
director who has jurisdiction over the area where the ores were extracted. In
the case of mineral ores or minerals being transported from the small-scale
mining areas to the custom mills or processing plants, the Provincial Mining
Regulatory Board (PMRB) concerned shall formulate their own policies to
govern such transport of ores produced by small-scale miners. The absence of
a permit shall be considered as prima facie evidence of illegal mining and shall
be sufficient cause for the Government to confiscate the ores or minerals being


transported, the tools and equipment utilized, and the vehicle containing the
same. Ore samples not exceeding two metric tons (2 m.t.) to be used
exclusively for assay or pilot test purposes shall be exempted from such
requirement.

Section 3. Section 55 of Republic Act No 7942 otherwise known as “The
Philippine Mining Act of 1995” is hereby amended to read as follows:
Section 55
Minerals Processing and Minerals Processing Permit

ANY MINERAL ORES EXTRACTED UNDER THE PROVISIONS OF THIS ACT
SHALL BE PROCESSED WITHIN THE COUNTRY. NO PERSON GRANTED
WITH PERMIT FOR PURPOSES OF MINING OPERATION SHALL BE
ALLOWED TO EXPORT, THE UNPROCESSED MINERAL ORES TO OTHER
COUNTRY FOR PURPOSES OF TRADING OF MINERAL PRODUCTS.

ANY PERSON EXPORTING THE UNPROCESSED MINERAL ORES SHALL,
UPON CONVICTION, BE IMPRISONED FROM SIX (6) YEARS AND ONE (1)
DAY TO TWELVE (12) YEARS AND PAY THE FINE AMOUNTING TO TWICE
THE VALUE OF THE SIEZED MINERAL ORES. IN ADDITION, THE CARGO
CONTAINING THE UNPROCESSED MINERAL ORES SHALL BE
CONFISCATED IN FAVOR OF THE STATE. IN THE CASE OF
ASSOCIATIONS, PARTNERSHIPS, OR CORPORATIONS, THE PRESIDENT
AND EACH OF THE DIRECTORS IN CASE OF ASSOCIATIONS AND
CORPORATIONS AND ALL PARTNERS IN CASE OF PARTNERSHIPS,
SHALL BE RESPONSIBLE FOR THE ACTS COMMITTED BY SUCH
ASSOCIATION, PARTNERSHIP, OR CORPORATION.

No person shall engage in the processing of minerals without first securing a
minerals processing permit from the Secretary. Minerals processing permit
shall be for a period of five (5) years renewable for like periods but not to
exceed a total term of twenty-five (25) years. In the case of mineral ores or
minerals produced by the small-scale miners, the processing thereof as well as
the licensing of their custom mills, or processing plants shall continue to be
governed by the provisions of Republic Act No. 7076.

Section 4. Implementing Rules and Regulations. For purposes of the
implementation of this Act, the Secretary of the Department of Environment
and Natural Resources shall issue such rules and regulations necessary for
the effective implementation of this Act.

Section 5. Repealing Clause - All other laws, decrees, orders,
issuances and rules and regulations or parts thereof inconsistent with this Act,
are hereby repealed or modified accordingly.

Section 6. Separability Clause - All other provisions of Republic Act No
7942 otherwise known as “The Philippine Mining Act of 1995” not otherwise
affected by the provisions of this Act shall remain in full force and effect.


Section 7. Effectivity Clause - This Act shall take effect fifteen (15) days
after its publication in at least two (2) national newspapers of general

circulation.

Approved,