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i wet “Sep
Republic of the Philippines f° REGEN
HOUSE OF REPRESENTATIVES fF HER 17

Quezon City

Seventeenth Congress
First Regular Session

HOUSE OF REPRESENTATIVES
HB. No. ‘S980

Introduced by Representative H. Harry L. Roque Jr.

EXPLANATORY NOTE

‘The Constitution, Article 2, Section 16 provides:

‘The State shall protect and advance the right of the people to a
balanced and healthful ecology in accord with the rhythm and harmony of
nature,

The passage of Republic Act No, 7076 way back in 1991 gave birth to a mining
Policy that aimed to“... promote, develop, protect and rationalize viable small-scale mining
activities in order to generate more employment opportunities and provide an equitable
Sharing of the nation’s wealth and natural resources....”, This law, and a number of
regulations that came afigr it, paved the way for noticeable economic growth in the industry
‘The most recent Mining Industry Statistics! released by the Mines & Geosciences Bureau
indicate that at least P328.6 Billion Gross Production Value is attributable to small-scale gold

mining alone between the years 1997-2014.

* _bitnJlwsew.mngh ov ph‘File/Statatica/HistoricalMinerallndustryStatstics pdf. Release date: 20

February 2015. Last accessed on 8 May 2015.


Unfortunately, economic growth from mining also comes with its own set of
environmental hazards. In one particular case recently decided by the Supreme Court?, an
issue arose from a confusing interpretation of the lack of an annual extraction limit in small-
scale mining operations. The Court was quick to strike down the argument that the law in
current operation docs not put a limit, or if it does, that such limit should only apply to
extractions already in its “purest form” and not with its gangue, /e., the unwanted rocks and
minerals. The Court points out that this kind of interpretation will cause “irreversible
degradation of the natural resources and possible landslides and flashfloods”.

Even with a final ruling from the Supreme Court, the confusion still remains as two
different laws governing small-scale mining co-exist: P.D. No. 1899? and R.A. No. 7076
While E.0. 79% and DMC 2007-07° attempts to harmonize the implementation of the two,
DOJ Opinion No. 74, Series of 2006 still concluded that as nothing from R.A. No. 7076
speaks of an annual production limit, Section 1 of P.D. No. 1899 should be considered
impliedly repealed by R.A. No, 7076, the later law.

‘The conflict in the prevailing statutes, implementing rules and legal opinion from the
involved government agencies thus result in a colossal disparity: big mining corporations —
operating as small-scale miners — profit in the billions while the communities where these
miners operate receive benefits arguably incommensurate to the permanent ecological
destruction brought about by massive extraction.

With the advent of climate change, we need to shift our focus from pure exploitation

to one which balances between utilization and preservation. Every move for a more stringent

* SR Metals, Inc. et.al. v, Department of Environment and Natural Resources (DENR), 724 SCRA $35
(2014)

! Establishing Small-Scale Mining as a New Dimension in Mineral Development

* Insttutionalizing and Implementing Reforms in the Philippine Mining Sector Providing Policies and
Guidelines to Ensure Environmental Protection and Responsible Mining in the Utilization of Mineral
Resources. Issued on 06 July 2012 by President Benigno S. Aquino IIL

* Clatificatory Guidelines in the Implementation of the Small-Scale Mining Laws. Issued on $ July
2007 by the Department of Environment and Natural Resources (DENR)

2


environmental protection should be supported by a coherent legislative policy that leaves no
room for confusion in terms of implementation.

4

H. HARRY L. ROQUE JR,


aune

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Seventeenth Congress
First Regular Session

HOUSE OF REPRESENTATIVES

HB.No._598q-

Introduced by Representative H. Harry L. Roque Jr

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

IMPOSING AN ANNUAL PRODUCTION LiNEtr IN SMALL-SCALE MINING
ACTIVITIES, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7076,
OTHERWISE KNOWN AS THE “PEOPLE'S SMALL-SCALL MINING ACT OF 1991"

SECTION 1. Section 2 of Republic Act No, 7076, otherwise known as the “People's
‘Small-Scale Mining Act of 1991”, is hereby amended to read as follows:

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the
State to promote, develop, protect and rationalize viable small-scale mining
activities in order to generate more employment opportunities and provide an
equitable sharing of the nation’s wealth and natural resources, giving due
regard to existing rights as herein provided AND ENVIRONMENTAL
STANDARDS IN EXISTING RULES AND REGULATIONS.

SECTION 2. Section 12 of the same Act is hereby amended to read as follows:

SEC. 12. Rights Under a People's Small-scale Mining Contract, A
people's small-scale mining contract entitles the small- scale mining
contractor to the right to mine, extract and dispose of mineral ores for
commercial purposes UP TO AN ANNUAL PRODUCTION LIMIT OF


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50,000 DRY METRIC TONS (DMT[S]) OF ORE FOR METALLIC
MINERALS, OR 50,000 DRY METRIC TONS (DMT{s]) OF THE
MATERIAL ITSELF FOR NON-METALLIC MINERALS. In no case
shall a small-scale mining contract be subcontracted, assigned or otherwise
transferred.

PROVIDED, THAT FOR PURPOSES OF COMPUTING THE
ANNUAL PRODUCTION LIMIT FOR BOTH METALLIC AND NON-
METALLIC MINERALS, THE TERM “ORES” SHALL REFER TO
THE EXTRACTION AS IT EMERGES FROM THE MINE, ‘e.,
BEFORE TREATMENT, EXCLUDING ONLY ITS WATER OR

MOISTURE CONTENT.

SECTION 3. Separability Clause. — If any provision or part hereof, is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain
valid and subsisting.
SECTION 4. Repealing Clause. - All laws, orders, issuances, rules and regulations or
part thereof inconsistent with the provisions of this Act are hereby repealed, amended or
modified accordingly
SECTION 5. Fffectivity Clause. - This Act shall take effect within fifteen (15) days
after its publication in the Official Gazette or in at least two (2) newspapers of general

circulation, whichever comes earlier.

Approved,

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