EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S. No
SENATE
353
SrrH'Mc 
t 
ol tlic 
Ctni?
•19 
JU Lll 
P 1 :10
RECE'Vm ri'
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
TO 
REGULATE 
THE 
RATIONAL 
EXPLORATION, 
DEVELOPMENT 
AND 
UTILIZATIO N OF MINERAL RESOURCES, AND TO ENSURE THE EQUITABLE 
SHARING OF BENEFITS FOR THE STATE, INDIGENOUS PEOPLES AND LOCAL 
COMMUNITIES, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Philippines holds a large reserve of mineral resources and is considered as 
among the most mineralized countries in the world. It is 3rd richest in the world for gold 
per unit area, 4th richest in copper, 5th in nickel, and 6th for chromite. These mineral 
resources have been sought to contribute to national development, however in the past 
twenty years, the mining industry has not contributed significantly to the economy and 
even caused negative impacts to communities, including detrimental environmental 
destructions where the mines are located.
The present mining law (Republic Act 7942) has clearly failed to regulate the 
development and exploitation of our mineral resources in a way where benefits are 
maximized by Filipino communities and by the State, with mitigated impacts to other 
environmental and natural resources, industries and the rights of Filipino communities. 
The present fiscal regime for mining does not allow us to maximize the benefits of our 
non-renewable resource.
Mining as an economic activity is not only an issue of resource use but also 
concerns water and food security, environment, human rights and indigenous people's 
rights and a rights-based approach to sustainable development.
In the past decade, the mining industry has only contributed an annual average 
of 0.7-1% to the Gross Domestic Product compared to other industries because the 
government receives only 2% excise tax share, and employs 200,000-250,000 or only


0.6% of total employment.
Meanwhile, it should be noted that the ecotouhsm, agriculture, fisheries and 
forestry sectors have been found to be seriously threatened by the mining industry. 
Downstream mining activities are not necessarily promoted because our present mining 
law allows for export of our ores and processing elsewhere.
Mining largely affects forest covers, watersheds, agricultural lands and water 
systems that sustain us. With only 10% forest cover, entry of mining projects will 
further threaten our biodiversity including important bird and key biodiversity areas. 
Other than land and water pollution, mining also causes coral reef degradation as 
tailings and siltation find its way to the sea, and eventually affects our food source.
Mining concessions have encroached in areas where indigenous and rural 
communities, including farmers and fisher folks reside, and this threaten their health, 
food supply, livelihood, culture, integrity of their ancestral domain—their rights. Under 
the current system, mining is prioritized over other land uses. Further the current 
mining policy gives companies the right to water, timber, and easement, and to use 
explosives.
Many cases of mining-related conflicts, violence and human rights violations have 
been documented and reported, most of which are continuing and remain unaddressed. 
This is aggravated by the presence of paramilitary forces in mining areas, also allowed 
for by the government.
Needless to say, the present law has allowed for the plunder of our finite mineral 
resources at the expense of the environment and the Filipino people.
The present mining law, an outdated one, also has not considered the 
occurrence of impacts of climate change and disaster risks. In the past five years alone, 
many large-scale mining-related disasters have been reported. The Philippines is among 
the top five most vulnerable countries to the impacts of climate change. Mining 
operations and climate-induced extreme weather events aggravate the impacts of 
disasters to the ecosystem and communities.
There is a need to overhaul the current mining policy framework to ensure the


proper management and utilization of our mineral resources, and to address the current 
mining issues. 
Likewise, the new policy must also be climate sensitive and should 
factor in the impacts of climate change to the industry and Filipino communities.
In order to address the challenges in the mining industry and the proper 
management of our mineral, this measure is being proposed. This bill seeks to 
guarantee that the exploration, development and utilization of mineral resources will 
primarily benefit the Filipino people; prioritizes sustainable livelihood choices for 
communities; gives utmost importance to food security and livable conditions for the 
people; ensures that the gains from the mining industry would be maximized while 
preventing or mitigating its adverse effects; recognizes that the issue of environment 
and sustainable development is local and thus prioritizes local participation in decisions 
surrounding mining; ensures the protection of human rights of communities and 
individuals; and imposes harsh penalties for the violation of its provisions.
The passage of this bill is earnestly sought.
RISA HONTIVEROS
HONTIVEROS 
Senator


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S. No. 
353
o( lltr c  * t f'.irw
*19 
JUL11 
PI ’-10
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
TO 
REGULATE 
THE 
RATIONAL 
EXPLORATION, 
DEVELOPMENT 
AND 
UTILIZATIO N 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 o f Representatives o f the Philippines in 
Congress assembled:
CHAPTER I
DECLARATION OF POLICIES
1 
Section 1. Short Title. -  This Act shall be known as the "Alternative Minerals
2 
Management Act o f 2019!'
3 
Sec. 2. Declaration o f Policy. -  It is hereby declared the policy of the State to:
4 
a) Maintain peace and order, protect life, liberty and property and promote
5 
the general welfare;
6 
b) Advance the medium- and long-term needs of the Philippines;
7 
c) Encourage the advancement of the industry's technology with emphasis
8 
on existing indigenous knowledge, research and development;
9 
d) Protect and advance the right of the people to a balanced and healthful
10 
ecology in accord with the rhythm and harmony of nature;
11 
e) Value the dignity of every human person and guarantees full respect for
12 
human rights;
13 
f) Promote social justice in all phases of national development;
14 
g) Recognize and promote the rights of indigenous cultural communities
15 
within the framework of national unity and development and protect the
16 
right to self-determination of the indigenous and Moro peoples;
17 
h) Protect and promote the right to health of the people and instill health
18 
consciousness among them;


1 
i) Pursue an independent foreign policy. In its relations with other states
2 
the paramount consideration shall be national sovereignty, territorial
3 
integrity, national interest, and the right to self-determination;
4 
j) Develop a self-reliant and independent national economy effectively
5 
controlled by Filipinos;
6 
k) Ensure the autonomy of local governments;
7 
I) Give highest priority to the enactment of measures that protect and
8 
enhance the right of all the people to human dignity, reduce social,
9 
economic, and political inequalities, and remove cultural inequities by
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equitably diffusing wealth and political power for the common good;
11 
m) Encourage 
non-governmental, 
community-based, 
or 
sectoral
12 
organizations that promote the welfare of the nation; and
13 
n) Adopt and accept the generally accepted principles as embodied in the
14 
International Covenant 
on Civil and Political Rights, International
15 
Covenant on Economic, Social, Cultural Rights, UN Declaration on the
16 
Rights of Indigenous Peoples, UN Convention on Biodiversity and other
17 
international accords on human rights, labor rights, the rights of women
18 
and children, and the protection and preservation of the environment, of
19 
which the State is a party.
20 
Sec. 3. -  The State shall formulate a National Industrialization Program pursuant
21 
to the principles of agricultural 
modernization, development of industrial and
22 
manufacturing industries, and rational, sustainable, and equitable development of the
23 
national economy. The State shall, therefore, promote the development of mineral
24 
processing to maximize the benefits or value-added from mining. Towards this end, it
25 
shall encourage the establishment and development of manufacturing plants that will
26 
utilize locally processed mineral products as well as mining firms that will process
27 
mineral ores first for domestic purposes and before exporting them to other countries.
28 
Pursuant to the foregoing, the State shall implement a Mineral Management Plan that
29 
provides the framework for the utilization and management of the country's mineral
30 
resources, which will address the needs of the domestic economy and uphold the rights
31 
of industry workers, indigenous peoples and local communities.
32 
Sec. 4. -  The judicious stewardship of our mineral resources, as well as its
33 
exploration, development and utilization shall comply with the following principles:
34 
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 by
36 
the State as a step towards achieving genuine economic development;


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b) The mining industry shall be geared towards national industrialization 
and shall be built for the production of raw materials such as base 
metals, basic chemicals and petrochemicals needed by the basic, 
medium 
and 
heavy 
industries 
to 
produce 
as 
much 
consumer, 
intermediate and capital goods with the country's stock of finite mineral 
and non-mineral industrial raw materials and in the process provide jobs 
to the country's vast human resources;
c) The community shall actively participate in the stewardship of mineral 
resources. 
Community-based initiatives shall be encouraged and 
supported;
d) The State and its members shall develop its human resources and 
encourage the evolution of its own appropriate technologies. The State 
shall provide the appropriate support and protection to Filipino 
corporations to further develop and increase their participation in the 
industry. All mining industry investments shall be mutually-beneficial and 
help 
achieve 
the 
specific 
target 
and 
goals 
of 
the 
National 
Industrialization Program. To come up with the large capital requirement 
for mining, the State must use local sources such as but not limited to 
the granting of incentives and financial aid to local private sector 
investors, re-channeling of government budget allocations for foreign 
debt payments and military expenditures, and the proceeds from the 
government shares of the Malampaya Natural Gas Project;
e) The State shall allow, in exceptional cases, foreign corporations to invest 
in the mineral industry. Based on the National Industrialization Program 
and the country's capability and capacity, the government must identify 
the mineral areas where foreigners can help and invest subject to 
rigorous screening and strict regulations as provided in this Act and 
related laws. The participation of foreign companies in the critical stages 
of minerals extraction and processing shall be in accordance with a 
mandatory program or agreement for technology transfer and equity 
shares that do not exceed forty (40) percent of the full capital 
requirements.
Provided, That capital accumulation and reinvestment within the country 
shall be primarily encouraged over profit repatriation by the foreign 
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 
banned from investing in the country;
f) In land and water use, the production of sufficient food free from 
pollution towards food security shall always be the priority;
g) Long-term mining development shall be programmed by the State in 
accordance with the country's availability of resources, capability and 
well-being 
of 
the 
people, 
technological 
capacity 
and 
people's 
acceptability. The right of Musiim Filipinos and indigenous peoples to 
self-determination and ancestral domain shall be recognized and their 
collective property rights are guaranteed by this Act;
h) Job security, adequate wages, benefits, and safe working conditions for 
mine workers shall be ensured in state- and privateiy-owned mining 
corporations. Their right to organize and form their own associations, to 
collective bargaining and to strike shail be upheld. The state will strictly 
prohibit forced and child labor in the industry;
i) Small-scale mining operations shall be supported and regulated by the 
state. The state will encourage the formation of cooperatives among 
smail-scale miners and provide financial and technical support to 
develop the labor-intensive and upgrade the backward technologies into 
a more efficient and less environmentally destructive mining process. 
Whenever smali- scale mining is stopped, alternative and sustainable 
livelihood shall be provided to the smali-scale miners.
j) Mining operations shall not in any way create or exacerbate conflicts. In 
no instance shall the Armed Forces of the Philippines (AFP), the 
Philippine National Police (PNP) and private security and paramilitary 
groups be used to coerce or force the entry and protection of mining 
operations;
k) Mining industry research and development shall focus on harnessing 
more economically- efficient and 
less environmentally destructive 
methods. The advanced technologies from other countries that are 
proven to be appropriate locally shall be adopted in the industry;
l) All mining operations shall be strictly regulated to ensure the domestic 
processing of mineral ores up to the secondary and tertiary stages of 
industriai production to develop our own basic and medium industries. 
Recycling programs and substitution in the use of minerals shall be 
incorporated in the overall plan of mining development to reduce mine


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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, 
primary and secondary 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
o) Areas affected by mining shall be rehabilitated, including abandoned 
mines. Violators shall be strictly punished and made to pay heavy 
compensation to the State and the affected communities;
Sec. 5. -  The exploration, development and utilization of natural resources must 
comply with the principles of intergenerational responsibility.
Sec. 6. -  For purposes of, or in relation to expropriation, it is hereby declared 
that mining is not for a public purpose.
Sec. 7. -  Mining agreements shall not be considered as vested rights, but, are 
mere privilege that the State can grant or revoke anytime for a legitimate purpose.
CHAPTER I I
SCOPE AND GENERAL PRINCIPLES
Sec. 8. Scope. -  This 
Act shall govern the ownership, management and 
governance of both metallic and non-metallic ore minerals onshore and offshore, as well


1 
as quarry resources, sand and gravel, guano, and gemstones, and the conservation,
2 
exploration, development, utilization, processing and transportation thereof. 
The
3 
ownership, management and governance of petroleum, natural gas and coal shall be
4 
governed by special laws. Offshore mining shall also be governed by special laws.
5 
This Act shall cover onshore and offshore, large-scale and small-scale mining operations
6 
in the country, including mining projects in ancestral domains in accordance to the
7 
existing national and international policies on our indigenous peoples.
8 
Sec. 9. -  Ore minerals form part of the country's irreplaceable and non-
9 
renewable natural wealth and capital. 
The conservation of our mineral wealth is a
10 
paramount public interest and mineral resources shall be utilized only in a rational
11 
manner for national and local development as specified by law and the National
12 
Industrialization Program and the Mineral Management Plan. The economic benefits
13 
derived from mining shall be equitably distributed by, among others, prioritizing
14 
development for local communities and all other stakeholders directly affected by
15 
mining operations.
16 
Sec. 10. -  The State shall have primary role, responsibility and concern in the
17 
management, conservation, utilization, and development of the mining industry and
18 
shall ensure the peoples participation in policy making and implementation of the same
19 
at all levels of government. The management of mineral resources shall be a shared
20 
concern and responsibility among the national government, corporations, all levels of
21 
local government, and the communities affected by the exploration, development, and
22 
utilization of mineral resources.
23 
Sec. 11. -  The State shall accord support to communities dependent on smali-
24 
scale mining whose operations shall strictly adhere to the provisions of this law.
25 
Sec. 12. -  Subject to their right to self-determination, indigenous cultural
26 
communities/ indigenous peoples (ICCs/IPs) own and have the responsibility to manage
27 
the mineral resources in their respective ancestral domains, free from external
28 
manipulation, interference, force threat, intimidation, coercion and other analogous
29 
acts. The State shall support indigenous cultural communities in developing capacities
30 
to effectively exercise their right and responsibility.
31 
Sec. 13. -  Mining shall be limited in scale in accordance with this Act.
32 
Sec. 14. -  Mineral resources development, utilization and processing shall be
33 
reserved for Filipino citizens and for Filipino corporations. Exploration shall be
34 
undertaken directly by the State for the benefit of the nation.
35 
Sec. 15. -  Remining and recycling of mineral resources shall be prioritized over
36 
the opening of new mines to maximize and recover the remaining minerals resources


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from the rejects or wastes of previous mines and mining operations.
Sec. 16. -  The State shall prioritize the rehabilitation of the abandoned mines in 
the country. 
The State shall ensure the fullest compliance of all government and 
corporate entities in and on the closure of mines, the rehabilitation/restoration of the 
immediate environs or each mining project/activity in the country as provided by law.
Sec. 17. -  The State shall encourage and support Filipino private corporations 
and mining cooperatives to participate and invest in the mining industry on mutually- 
beneficial grounds that will push forward the National Industrialization Program in both 
small-scale and large-scale projects.
Sec. 18. -  Mineral resource extraction shall be allowed based on the Philippine 
Government's National Industrial Plan. The sharing of profits from mining activities, 
including the anticipated environmental and social costs on the affected local 
communities of each mining project, should far outweigh ecological and social benefits 
and costs from other land uses. The anticipated cost of environmental and social 
impacts on the affected local communities, which shall at all times be prevented and/or 
mitigated through the allocation of sufficient funds for this purpose. In mining projects 
with foreign participation, a just return of investment scheme for the foreign entrants 
into the industry shall be prescribed by law.
Sec. 19. -  The State shall prioritize the development of mineral resources needed 
for national development and the creation of domestic processing capacity for industrial 
metals, the integration of agricultural 
modernization and other labor-intensive 
downstream industries. Mine planning shall be conducted to meet this principle.
The National Industrial Plan shall support national development based on the principles 
of sustainable development and modernization of its economic base. This framework 
will define minerals to be extracted, volume to be extracted and when to be extracted. 
This shall be matched with the approved mining areas as identified by the Councils. 
These matched areas are eligible for mining operations.
CHAPTER I I I  
DEFINITION OF TERMS
Sec. 20. Definition o f Terms. -  As used in and for the purposes of this Act, the 
following terms, whether used in singular or in plural form, shall mean:
a) Abandonment -  the act of the contractor leaving a mine without 
rehabilitating the affected areas or completing such rehabilitation 
despite the legal obligation to do the same;
b) Acid mine drainage -  the dissolution, mobilization and transportation of


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toxic metals from rocks resulting from the chemical reaction of the acid­
generating 
minerals 
in 
rock 
and 
waste 
materials 
having 
high 
permeability to both air and rainfall and other water inflows when land is 
opened up for mining and initiates the chemical reaction, resulting to a 
perpetual machine of acid generation;
c) Ancestral domains -  all areas generally belonging to indigenous cultural 
communities/indigenous peoples (ICCs/IPs) 
comprising lands, inland 
waters, coastal areas, and natural resources therein, held under a claim 
of ownership, occupied or possessed by ICCs/IPs, by themselves or 
through 
their 
ancestors, 
communally 
or 
individually 
since 
time 
immemorial, continuously to the present except when interrupted by 
war, force majeure or displacement by force, deceit, stealth or as a 
consequence of 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 exclusively occupied by ICCs/IPs but from 
which they traditionally and historically had access to for their 
subsistence and traditional activities, particularly the home ranges of 
ICCs/IPs 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 - -d, 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


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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 (MGB) under the 
Department of Environment and Natural Resources (DENR);
h) Carrying capacity -  the capacity of natural and human environments to 
accommodate and absorb change without experiencing conditions of 
ecologicai instability and attendant degradation;
i) Certificate o f Ancestrai Domains Title (CADT) -  title formally recognizing
the rights of possession and ownership of ICCs/IPs over their ancestral 
domains identified and delineated in accordance with law;
j) Certificate o f Ancestral Lands Title (CALT) -  a title formally recognizing
the rights of ICCs/IPs over their ancestral lands;
k) Closure o f mines -  permanent cessation of operations at a mine or mine 
processing site after completion of the decommissioning process;
l) Consensus -  the decision 
communally 
reached 
after appropriate
participatory consultation and discussion, free from any external 
manipulation, interference and coercion, and other analogous cases and 
obtained after fully disclosing the intent and scope, including the 
positive and negative impacts of the activity, in a language and process 
understandable to the community or group.
[w)Consent -  the free, prior and informed assent of the relevant person/s, 
ICCs/IPs, barangay assemblies, landowner or occupant or possessor, 
given after fully disclosing the intent and scope, including the positive 
and negative impacts of the activity, in a language and process 
understandable to said persons or communities or assemblies;
n) Contract area -  the area delineated as specifically provided by a mineral 
agreement for the development or utilization of mineral resources found 
therein;
o) Critical watershed -  refers to a drainage area of a river system, lake or 
water reservoir supporting existing and proposed hydroelectric power, 
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 areas which are traditional human settlements, land-uses, or 
sea-uses which are representative of a culture/cultures, or human


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interaction 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 ICCs/IPs 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 environmental impacts remaining after cessation of mineral 
production. It includes the aftercare 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;
u) Ecological profile or eco-profiie 
-  geographic-based instruments for 
planners and decision-makers which present an evaluation of the 
environmental quality and carrying capacity of an area and measures 
the specific interactions that will be affected by any and all mining 
operations;
v) Exploration -  covers the methods of searching or prospecting for mineral 
resources by non-invasive means for the purpose of determining the 
existence, extent, quantity and quality thereof, which may include but 
not limited to seismic, gravity, magnetic, electromagnetic, radar, induced 
polarization, radio-wave and electro geochemical;
w) Extraction -  ore-removal activities that take place at the mine site itself;
x) Free, prior, and informed consent (EPIC) -  the consensus of all members
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of the ICCs/IPs to be determined in accordance with their respective 
customary laws and practices, free from any external manipulation, 
interference, coercion, and other analogous acts and obtained after fully 
disclosing the intent and scope, including the positive and negative 
impacts, of all the activities, in a language and process understandable 
and acceptable to the community;
y) Indigenous peoples/Indigenous cultural communities (IP/ICC) -  refer to 
a group of people or homogenous societies identified by self-ascription 
and ascription by others, who have continuously lived as organized 
community on communally bounded and defined territory, and who 
have, under claims of ownership since time immemorial, occupied, 
possessed and utilized such territories, sharing common bonds of 
language, customs, traditions and other distinctive cultural traits, or who 
have, through resistance to political, social and cultural inroads of 
colonization, non-indigenous religions and cultures, became historically 
differentiated from the majority of Filipinos. ICCs/IPs shall likewise 
include peoples who are regarded as indigenous on account of their 
descent from the populations which inhabited the country, at the time of 
conquest or colonization, or at the time of inroads of non-indigenous 
religions and cultures, or the establishment of present state boundaries, 
who retain some or all of their own social, economic, cultural and 
political institutions, but who may have been displaced from their 
traditional domains or who may have resettled outside their ancestral 
domains. They are peoples who have a spiritual relationship with the 
land;
z) Indigenous political structure -  refers to organizational and cultural 
leadership systems, institutions, relationships, patterns and processes 
for decision-making and participation, identified by ICCs/IPs such as, but 
not limited to. Council of Elders, Council of Timuays, Bodong Holders, 
and any other tribunal or body of similar nature;
aa) Joint venture agreement -  an agreement wherein the government and 
a qualified person organize a joint-venture company, with both parties 
having equity shares, to develop and manage mineral resources. Aside 
from earnings on the equity, the Government shall be entitled to a share 
in the output computed at a certain percentage mutually agreed upon 
by and beneficial to both parties.
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bb) Key biodiversity areas -  are sites of global biodiversity conservation 
significance. They are defined by standardized criteria and thresholds to 
guide conservation interventions such as the establishment of protected 
areas;
cc) Large-scaie mining -  mining in areas with more than twenty (20) 
hectares, using mechanized tools and equipment, requiring considerable 
capital and having large-scale environmental, social, cultural and 
economic impacts with regard to resource use and/or consumption;
dd) Mineral agreement -  a contract entered into by the government, in 
behalf of the State, and a private Filipino person, granting such person/s 
the privilege to mine a specific contract area;
ee) Mineral resource -  any concentration of minerals/rocks with potential 
economic value;
ff) Mineral processing -  the milling, beneficiation or upgrading of ores or 
minerals and rocks or by similar means to convert the same into 
marketable products;
gg) Minerals -  all naturally occurring inorganic substance in solid, gas, 
liquid, or any intermediate state excluding energy materials such as 
coal, petroleum, natural gas, radioactive materials, and geothermal 
energy;
hh) Mine development -  preparing the mine site for production by shaft 
sinking or pit excavation building of access roads, and constructing of 
surface facilities;
ii) Mine wastes and tailings -rock materials from surface or underground 
mining and milling operations with little or no economic value to the 
generator of the same;
jj) Mining activity -  any or all of the following activities: exploration, 
extraction, utilization, processing, transportation and other activities 
conducted for the same;
kk) Mining area -  a portion of the contract area which has been identified 
by the contractor wherein actual mining operations are conducted;
II) Mining operations -  either all or any of the mining activities involving 
exploration, feasibility, development, utilization, and processing;
mm) National industrialization -  in the mining industry, this shall denote the 
primacy of mineral production, processing and distribution for the 
primary benefit of the domestic economy. This includes creating
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favorable conditions for Filipino entrepreneurs to engage in mining 
through various state-private agreements that shall ensure that mining 
shall help spur more domestic investments, increase agricultural 
production and produce both consumer and producer goods and 
manufactures;
nn) National park -  an area of the public domain essentially natural 
wilderness, scenic, or historic in character which has been withdrawn 
from settlement, occupancy, or any form of exploitation except in 
conformity with an approved management plan and set aside exclusively 
to conserve the area or preserve the scenery, the natural and historic 
objects, wild animals, and plants therein mainly for the purpose of 
biodiversity conservation and/or human enjoyment;
00) Natural forest -  forests composed of indigenous trees, not planted by 
man, whose structure, functions, and dynamics have been largely the 
result of natural succession processes;
pp) Natural parks -  is a relatively large area not materially altered by 
human activity where extractive resource uses are not allowed. These 
parks are maintained to protect outstanding natural and scenic areas of 
national or international significance for scientific, educational and 
recreational use;
qq) Open-pit mining -  Extracting metal ores and minerals that lie near the 
surface by removing the overlying material and breaking and loading the 
ore. Also known as open-cast mining and open-cut mining;
rr) Ore -  a material that contains minerals in such quantities that it can be 
mined and worked commercially to extract that mineral. The mineral is 
usually contained in chemical combination with some other element in 
addition to various impurities;
ss) Pollution control and infrastructure devices -  infrastructure, machinery, 
equipment and/or improvements used for impounding, 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 
and gases emitted from any facility utilized in mining operations for their 
disposal;
tt) Private land -  any land belonging to any private person which includes 
alienable and disposable land being claimed by a holder, claimant, or
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occupant who has already acquired a vested right thereto under the law, 
although the corresponding certificate or evidence of title or patent has 
not been actually issued;
uu) Processing -  includes all treatment an ore receives after its extraction 
and beneficiation, which involves changes in the chemical nature of the 
mined minerals;
w ) Progressive rehabilitation -  rehabilitation which involves the staged 
treatment 
of 
disturbed 
areas 
during 
exploration, 
construction/development and mining operations;
ww) Protected areas -  identified portions of land and water set aside by 
reason of their unique physical and biological significance, managed to 
enhance biological diversity and protected against destructive human 
exploitation;
xx) Protected landscapes, seascapes, marine sanctuaries -  areas of national 
significance which are characterized by the harmonious interaction of 
man and the environs while providing opportunities for public enjoyment 
through recreation and tourism within the bounds of the normal lifestyle 
and economic activity of these areas;
yy) Quarry resources -  any common rock or other mineral substances as 
the Director of the Mines and Geosciences may declare to be quarry 
resources such as, but not limited to, andesite, basalt, conglomerate, 
coral sand, diatomaceous earth, diorite, decorative stones, gabbro, 
granite, limestone, marble, marl, red burning clay for potteries and 
bricks, rhyolite, rock phosphate, sandstone, serpentine, shale, tuff, 
volcanic cinders, and volcanic glass. Provided, That such quarry 
resources do not contain metals or metallic constituents and /or other 
valuable minerals in economically workable quantities; Provided further. 
That non-metallic minerals such as kaolin, feldspar, bull quartz, quartz or 
silica, sand and pebbles, bentonite, talc, asbestos, barite, gypsum, 
bauxite, magnesite, dolomite, mica, precious and semi-precious stones, 
and other non-metallic minerals that may later be discovered and which 
the Director declares the same to be of economically workable 
quantities, shall not be classified under the category of quarry 
resources;
zz) Quarrying -  process of extracting, removing and disposing quarry 
resources found on or underneath the surface of private or public land;
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aaa) Regional D irector- the regional director of any mines' regional office; 
bbb) Regional Office -  any of the mines' regional offices; 
ccc) Recycling -  shall refer to the treating of used or waste materials 
through a process of making them suitable for beneficial use and for 
other purposes, and includes any process by which solid waste materials 
are transformed into new products in such a manner that the original 
products may lose their identity, and which may be used as raw 
materials for the production of other goods or services: Provided, That 
the collection, segregation and re-use of previously used packaging 
material shall be deemed recycling under the Act; 
ddd) Rehabilitation -  the process by which the land will be returned to a 
form and productivity in conformity with a prior land use plan including a 
stable ecological state that does not contribute substantially to 
environmental deterioration and is consistent with surrounding aesthetic 
values;
eee) Remediation 
-  
removal 
of 
pollution 
or 
contaminants 
from 
environmental media for the general protection of the area and the 
people;
fff) Remining -  maximizing and recovering the remaining minerals from the 
rejects or wastes of previous mines and mining operations; 
ggg) Restoration -  where the intent is to recreate an ecosystem as close as 
possible to the original which existed at the site, with most of the 
structure and productivity matching that of the original ecosystem, and 
most of the original biodiversity: in time ecological processes and 
functions will match those of the original forest; 
hhh) Self-determination -  refers to the right of a people to determine its 
own political destiny as defined by existing Philippine laws. The right to 
self-determination has includes the right of ICCs/IPs to choose their 
form of government within existing national borders to achieve a greater 
degree of autonomy to help preserve their culture, ancestral domain, 
and way of life;
iii) Small-scale mining -  mining activities which rely heavily on manual labor 
using simple implements and methods and do not use explosives or any 
heavy mining equipment, primarily engaged in for sustainable living. 
Impacts from small-scale mining shall not be large-scale, otherwise, the 
mining activity shall be defined as large-scale mining;
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jjj) Small-scale mining p e rm it- permit issued for small-scale mining;
2 
kkk) Strategic minerals -  minerals needed for national industrialization,
3 
including rural development;
4 
III) Tailings Disposal System or Tailings Placement- the method wherein the
5 
waste from mining operations are dumped, placed, or disposed;
6 
mmm) Traditional small-scale mining -  small-scale mining using traditional
7 
means and without the use of chemical or mechanized extraction and
8 
separation means, methods, implements, and/or equipment;
9 
nnn) Watershed continuum — shall refer to an area consisting of the
10 
watershed and its divide including its connection from the headwaters to
11 
the reef or a land area drained by a stream or a fixed body of water and
12 
with tributaries having a common outlet for surface runoff. It is the
13 
system by which the mining-affected communities shall be determined
14 
following the drainage of a stream or fixed body of water with tributaries
15 
having a common outlet for surface runoff;
16 
ooo) Wildlife -  undomesticated forms and varieties of flora and fauna.
17
18 
CHAPTER IV
19 
OWNERSHIP AND GOVERNANCE
20
21 
Sec. 21. Authority o f the Bureau. -  The Mines and Geosciences Bureau shall be a
22 
scientific research institution under the Department of Environment and Natural
23 
Resources (DENR) primarily conducting and developing research of mineral resources
24 
and mining technologies and training of local communities, local government units and
25 
indigenous peoples. It shall also regulate the operations of persons involved in mining
26 
activities. It shall also work with the Multi-Sectoral Mineral Council in the monitoring of
27 
mining activities.
28 
Sec. 22. Regional offices. -  The Bureau shall have as many regional offices in the
29 
country as may be established by the Secretary, upon the recommendation of the
30 
Director.
31 
Sec. 23. Bureau as repository o f information. -  The Bureau shall be the central
32 
repository of information regarding mineral lands, resources, permits, studies and other
33 
information relevant to the operation of a mine, including the necessary requirements
34 
which a contractor is obliged to submit. All other governmental offices and other bodies
35 
created under this Act shall copy furnish the Bureau of all other information related to
36 
mining.
37 
Sec. 24. Recording system. -  There shall be established a national and regional
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filing and recording system. A mineral resource database system shall be set up in the
2 
Bureau which shall include, among others, a mineral rights management system.
3 
Sec. 25. Publication. -  The Bureau shall publish at least annually a mineral
4 
gazette of nationwide circulation containing among others, a current list of mineral
5 
rights, their locations specified in the appropriate map, mining rules and regulations,
6 
other official acts affecting mining, and other information relevant to mineral resources
7 
development. A system of publication fund shall be included in the regular budget of
8 
the Bureau.
9 
Sec. 26. Bureau to conduct exploration activities. -  Exploration of mineral
10 
resources shall be exclusively and directly undertaken by the State through the Bureau.
11 
In no case shall this function be delegated or contracted out to private corporations or
12 
persons.
13 
Sec. 27. Non-invasive exploration. -  Exploration activities shall only be non-
14 
invasive such as seismic, gravity, magnetic, electromagnetic, radar, induced polarization,
15 
radio-wave and electro-geochemical.
16 
Sec. 28. Consent -  The Bureau shall not conduct any exploration activity without
17 
the free, prior and informed written consent of relevant landowner, possessor and/or
18 
occupant; the affected communities; and/or of the ICC/IP. Neither shall the Bureau
19 
enter into any part of the ancestral domains/lands of ICCs/IPs without their free and
20 
prior informed consent. Further, the Bureau shall not enter into any distributed land
21 
under the Comprehensive Agrarian Reform Program within the 10 years prohibited
22 
period of the said program.
23 
Sec. 29. Ownership o f ICCs/IPs. -  The mineral resources within ancestral
24 
domains/ancestral lands are the collective private property of the indigenous cultural
25 
communities/indigenous peoples (ICCs/IPs) as provided by law. The management of
26 
such mineral resources shall build on the indigenous knowledge systems and practices
27 
of the ICCs/IPs.
28 
Sec. 30. Free, prior, and informed consent -  No mining activity shall be
29 
conducted within the ancestral domains/lands of ICCs/IPs without their free, prior, and
30 
informed consent (FPIC), in addition to the conditions set forth under the succeeding
31 
sections of this Act.
32 
Sec. 31. When ancestral domain is not formally recognized. -  When ancestral
33 
domain is not covered by a Certificate of Ancestral Domain Title/Certificate of Ancestral
34 
Land Title (CADT/CALT), or is covered by a different title issued in favor of members of
35 
the ICCs/IPs, mineral resources shall nevertheless be managed by the ICCs/IPs
36 
concerned when it can be presumed that the area is part of ancestral domain. An area
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is presumed to be part of ancestral domain by virtue of historic rights and self-
2 
delineation by the ICCs/IPs.
3 
Sec. 32. When ICCs/IPs displaced from ancestral domain, and when ancestral
4 
domain is already covered by other titles emanating from the State other than
5 
CADT/CALT. 
-  IP/ICC rights over ancestral domain subsists notwithstanding the fact
6 
that the ICCs/IPs who hold such rights have been displaced therefrom or that such
7 
ancestral domains have been occupied by other persons or corporations under another
8 
claim of title emanating from the State. In such cases, ICCs/IPs shall continue to own
9 
such mineral resources.
10 
Sec. 33. Questions on the validity ofFPIC. -  In instances that there are questions
11 
on the legality or validity of the issued free, prior, and informed consent, mining
12 
operations shall not be allowed to be conducted in the ancestral domains or lands of the
13 
ICCs/IPs without the final resolution of such question on the legality or validity of the
14 
FPIC.
15 
Sec. 34. Ownership o f the State. -  The mineral resources found outside ancestral
16 
domains/lands shall be owned by the State. The State shall ensure that the
17 
management of mineral resources shall be primarily for the benefit of the local
18 
communities in whose territory the same shall be found. Any minerals extracted shall
19 
be solely used for local industries consistent with the Minerals Management Plan. The
20 
State may directly undertake development, utilization and processing of mineral
21 
resources or it may enter into mineral agreements with eligible parties pursuant to the
22 
provisions of this Act.
23 
Sec. 35. Inventory o f mineral resources. -  The Bureau shall identify and provide
24 
an inventory of the available mineral resources, including the mine tailings and wastes
25 
within the country. 
It shall submit to the DENR a report which shall contain the
26 
following information:
27 
a. 
the classification of minerals;
28 
b. 
the quality and grade of the ore;
29 
c. 
the potential mine life;
30 
d. 
the geological description of the area;
31 
e. 
the economic viability of mine tailings;
32 
f. 
whether the area is a key biodiversity area or if it is a critical habitat; and
33 
g. 
all other relevant information necessary for potential 
mineral investments
34 
The process for mineral exploration and/or approval for a mining permit shall not
35 
commence without the said inventory.
36 
Sec. 36. Identification o f strategic minerals. -  The Bureau shall conduct
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researches and studies prior to any mining operations to identify strategic mineral
2 
resources. Only mineral resources that shall be needed for local industries, agricultural
3 
modernization and rural development shall be opened to mining subject to the
4 
implementing rules and regulations of this Act.
5 
Sec. 37. Demarcation o f mineral areas. -  The Bureau shall demarcate the
6 
boundaries of all areas identified as containing 
commercial quantities of mineral
7 
resources on the ground.
8 
Sec. 38. 
Baseline Information on watershed continuums. -  The baseline
9 
information on all watersheds in the country shall be required and made available to the
10 
public, online as much as possible. No mining permit shall be issued without this
11 
baseline information.
12 
Sec. 39. Affected local community and local government unit. -  For the purposes
13 
of this Act, the affected local community and the affected local government unit are
14 
defined in relation to the watershed continuum which is potentially negatively impacted
15 
by mining operation in the demarcated area. The local communities and the local
16 
government units therefore are those who are dependent on the watershed eco-system
17 
and its resources.
18 
Sec. 40. Establishment o f Multi-Sectoral Mineral Councils. 
-  A Multi-Sectoral
19 
Mineral Council shall be established for the purposes of this Act. 
There shall be as
20 
many Multi-Sectoral Mineral Councils are there are watershed continuums with
21 
demarcated mineral areas.
22 
Sec. 41. Powers o f the Council. -  The Council shall have the following powers,
23 
among others:
24 
a. 
To determine whether or not mining operations shall be allowed;
25 
b. 
To deliberate on proposals for mineral agreements;
26 
c. 
To approve the proposal for mineral agreements;
27 
d. 
To monitor the conduct of mining operations; and
28 
e. 
To establish its internal rules of procedure which are not contradictory to
29 
this Act.
30 
Sec. 42. Composition o f the Multi-Sectoral Mineral Council. -  The Multi-Sectoral
31 
Mineral Council 
shall 
be composed of representatives from the Bureau, one
32 
representative 
from 
each 
of the 
affected 
provincial 
governments/independent
33 
component 
cities/highly 
urbanized 
cities, 
representatives 
from
34 
peoples/community/sectoral/non-governmental 
organizations 
as 
many 
as 
the
35 
representatives of local government units, and the affected ICCs/IPs within the
36 
watershed continuum. The Bureau shall be the convener of the Council.
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No mining operations shall be allowed without the Council having been properly
2 
convened.
3 
Sec. 43. Areas open to mining. -  The Council shall have the power to determine
4 
whether or not the land where mineral resources are found shall be opened to mining.
5 
Areas may only be opened to mining upon the vote of two-thirds of all the members of
6 
the Council pursuant to the guidelines provided by this Act. In determining whether or
7 
not such area shall be opened, the following shall be required:
8 
a. 
Report of the Bureau on the conducted exploration;
9 
b. 
Existence of downstream industries for the mineral resources;
10 
c. 
Potential environmental impacts;
11 
d. 
Potential cultural impacts;
12 
e. 
Conflict and risk assessment;
13 
f. 
Potential health impacts;
14 
g. 
Potential economic benefits of the development and utilization of the
15 
minerals;
16 
h. 
Carrying capacity and the ecological profile of the area;
17 
i. 
Existing and alternative land uses of the area; and
18 
j. 
Local government land use plan.
19 
No mining application shall be allowed unless an environmental economic audit or
20 
resource valuation of the proposed mining area has been conducted or prepared
21 
applying acceptable valuation standards. This audit or resource valuation shall be
22 
conducted in coordination with multisectoral group of experts and community
23 
stakeholders. It shall include determination of the expected economic returns and the
24 
potential negative impacts from mining on the enjoyment and exercise of human rights,
25 
cultural rights, and on peace and security. A detailed study must mention the flora,
26 
fauna and environment present in the mining claim and the impact of mining operations
27 
on the environment, the possible environmental degradation and the attendant loss of
28 
subsistence resources cause. There must be mention of existence of sacred areas or
29 
areas otherwise of cultural significance and address the impacts of resource exploitation
30 
on indigenous peoples and local communities.
31 
This information shall be accessible to the public at all times. P r o v i d e d i n  no case
32 
shall the Council open the following areas to mining:
33 
a) Areas declared by Local Government Units as No-Mining Zones as specified by
34 
local ordinances, and other issuances;
35 
b) Densely populated areas, especially residential areas;
36 
c) Head waters of watershed areas;
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d) Areas with potential for acid mine drainage;
e) Critical watersheds;
f) Critical habitats;
g) Climate disaster-prone areas;
h) Geohazard areas;
i) Small island ecosystems;
j) Cultural sites, which may include, but not limited to, sacred sites and burial 
grounds;
k) Traditional swidden farms and hunting grounds;
l) Lands covered by the Comprehensive Agrarian Reform Law or Republic Act No. 
6657, as amended;
m) 
Prime agricultural lands, irrigable and irrigated lands as defined by 
Republic Act No. 9700;
n) Cultural property enumerated under the National Cultural Heritage Act of 2009 
or Republic act No. 10066;
o) Community sites;
p) Key biodiversity areas;
q) High conflict areas;
r) The Province of Palawan pursuant to Republic Act No. 7611 and other areas 
covered by local ordinances;
s) In military and other government reservations, except upon prior written 
clearance by the government agency/agencies concerned;
t) Near or under public or private buildings, cemeteries, archaeological and 
historic sites, bridges, highways, waterways, railroads, reservoirs, dams or 
other infrastructure projects, public or private works including plantations or 
valuable 
crops, 
except 
upon 
written 
consent 
of 
the 
government 
agency/agencies or private entity concerned;
u) In areas expressly prohibited by law or ordinances;
v) In areas covered by small-scale miners as defined by law unless with prior 
consent of the small-scale miners, in which case a royalty payment upon the 
utilization of minerals shall be agreed upon by the parties, said royalty forming 
a trust fund for the socioeconomic development of the community concerned; 
and
w) Old growth, natural or primary and secondary forests, watershed forest 
reserves, wilderness areas, mangrove forests, mossy forests, national parks, 
protection forests, provincial/municipal forests, parks, greenbelts, game refuges
21


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and bird sanctuaries and their respective buffer zones prohibited under the
2 
National Integrated Protected Area System (NIPAS) under Republic Act No.
3 
7586, Department Administrative Order No. 25, series of 1992 and other laws
4 
and ordinances and those expressly prohibited by other laws.
5 
The determination whether or not the same are absolutely closed to mining shall not
6 
only be limited to the existence of a law or ordinance declaring it as protected areas,
7 
but also to the actual use of said area.
8 
Sec. 44. Process o f determination for opening an area to mining. -  After the
9 
submission of the exploration report and the resource valuation report, the Bureau shall
10 
convene the Council. The Council shall thereafter convene their respective constituents
11 
to determine whether or not their respective territories shall be opened for mining.
12 
Sections 26 and 27 of the Local Government Code on consultation and consent shall be
13 
strictly adhered to. Local government units at all levels shall conduct mandatory public
14 
hearings with the affected local communities, to be carried out within their respective
15 
territories and presenting those enumerated under Section 41.
16 
The decision of the respective Sanggunians of all the local government units in the
17 
watershed continuum shall be made in accordance to the sentiment of the peoples of
18 
the local government unit as a result of the consultations conducted.
19 
Provided, That each Sangguniang Barangay within the watershed continuum shall
20 
convene their respective barangay assemblies for the purpose of this section. Local
21 
government units shall ensure that the Bureau shall comprehensively explain the goals
22 
and objectives of the project or program, its negative and positive impact upon the
23 
people and the community in terms of environmental or ecological balance, and the
24 
measures that will be undertaken to prevent or minimize the adverse effects thereof.
25 
The free prior and informed consent of all barangay assemblies within the watershed
26 
continuum shall be a condition precedent for any mining activity.
27 
Provided further, That no mining activity shall be approved by the council without the
28 
free and prior informed consent of all indigenous peoples within the watershed
29 
continuum.
30 
For the purposes of declaring that an area is open for mining, the Council shall ensure
31 
that all the requisites under Section 41 and 42 have been complied with.
32 
Provided fmaiiy. That any member of the community may file a protest with the Council
33 
during the period of consultations and deliberations for the Council's consideration.
34 
Sec. 45. 
Violation o f Section 54. -  Local government officials who are
35 
administratively found to violate the preceding section and Section 54 of this Act vis-a-
36 
vis the pertinent sections of the Local Government Code shall be removed from office
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and perpetually disqualified from holding 
any elective or 
appointive position in
2 
government, its divisions, subsidiaries and any government owned and controlled
3 
corporations.
4 
Sec. 46. Poo! o f consultants. -  There shall be a pool of independent consultants
5 
that may assist the local government units, local communities or ICCs/IPs with regard
6 
to the technical aspects of mining.
7 
Sec. 47. Publication, posting and radio announcement requirements. The decision
8 
of the Council shall be published by the Bureau in the local newspaper in the local
9 
language, shall be announced on the local radio programs for not less than six (6)
10 
weeks and notices shall be distributed widely in communities. The notice containing
11 
relevant information shall likewise be posted in conspicuous places for the information
12 
of the general public and shall be announced during the local market day.
13
14 
CHAPTER V
15 
MINERAL AGREEMENTS
16
17 
Sec. 48. Modes o f mineral agreement -  A mineral agreement may only take the
18 
following forms as herein defined;
19 
a) Mineral production sharing agreement -  is an agreement where the
20 
Government grants to the contractor the exclusive right to conduct
21 
mining operations within a contract area and shares in the gross output.
22 
The contractor shall provide the financing, technology, management and
23 
personnel necessary for the implementation of this agreement;
24 
b) Co-production agreement -  is an agreement between the Government
25 
and the contractor wherein the Government shall provide inputs to the
26 
mining operations other than the mineral resource; and
27 
c) Joint venture agreement -  is an agreement where a joint-venture
28 
company is organized by the Government and the contractor with both
29 
parties having equity shares. Aside from earnings in equity, the State
30 
shall be entitled to a share in the gross output.
31 
In no case shall Financial or Technical Assistance Agreements, or any other similar
32 
agreements, contracts, and/or executive issuances granting license or permission to
33 
explore, develop and/or utilize mineral resources be awarded to foreign entities or
34 
persons.
35 
Sec. 49. Eligibility. -  Only Filipino citizens or corporation's sixty percent (60%) of
36 
whose equity is owned or controlled by such citizens shall be allowed to conduct
37 
development, utilization and processing of mineral resources within the country.
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Sec. 50. Identification o f mining projects. -  With the vote of two-thirds of all the
2 
members of the Council, to open areas for mining operations, the Bureau shall prepare
3 
the necessary information sheets on the said area for potential investments. The Bureau
4 
shall call for proposals to develop the mining area based on the Mineral Management
5 
Plan.
6 
Sec. 51. Pre-screening o f mining proposais. -  Mining proposals shall be pre-
7 
screened by the Bureau according to the National Industrialization Program and Mineral
8 
Management Plan upon the submission of interested parties of the following:
9 
a) demonstration of financial capability;
10 
b) proven social and environmental track record, including those of its officers
11 
and directors;
12 
c) clear corporate structure and ownership;
13 
d) proof of physical office and operations of the proponent within the
14 
Philippines;
15 
e) identification of potential investors;
16 
f) mining project feasibility;
17 
g) mining operation work plan;
18 
h) proposed operation, mitigation and prevention methods and/or equipment;
19 
i) capacity to process minerals;
20 
j) intent to develop downstream industries;
21 
k) intent to contribute to local community development; and
22 
I) Submission of the Environmental and 
Social Impact Assessment and
23 
Mitigation Plan
24 
The Council shall fix the minimum capitalization that any bidder must satisfy based on
25 
its determination of the expected economic returns and the potential negative impacts
26 
from mining, upon reference to an independent study proposing such minimum
27 
capitalization.
28 
Sec. 52. Environmental and Social Impact Assessment and Mitigation Plan. -  The
29 
contractor shall submit an Environmental and Social Impact Assessment and Mitigation
30 
Plan (ESIAMP) containing the means, methods, processes and schedule by which the
31 
contractor shall conduct its operations and mitigate negative environmental and social
32 
impacts. Social impact shall include possible impacts on the enjoyment and exercise of
33 
human rights, cultural rights. The ESIAMP shall include plans relative to mining
34 
operations; the rehabilitation, regeneration and restoration of mineral areas; slope
35 
stabilization of mined out and tailings covered areas; aquaculture, watershed
36 
development and water conservation; the relocation and return of displaced population;
24


1 
and provisions for alternative livelihood and socioeconomic development.
2 
The ESIAMP shall also contain a Social Development Plan which shall likewise contain
3 
the plans of the proponent for the development of the community through the
4 
establishment of infrastructures and programs that shall be sustainable even after the
5 
closure of the mine.
6 
Sec. 53. Pre-qualification. -  The Bureau shall thereafter identify the top three (3)
7 
proposals and shall recommend the same to the Council for deliberation.
8 
Sec. 54. Deliberation o f the proposals. -  Pre-conditions provided in Section 45 on
9 
the free, prior and informed consent of persons, landowners, possessors or occupants,
10 
communities or barangay assemblies, IPs/ICCs, and/or local Sanggunians shall likewise
11 
be required under this Section.
12 
Sec. 55. Posting and publication requirement -  After notice, the Bureau shall
13 
notify the proponent of the accepted proposal and cause the publication and posting of
14 
the accepted proposal.
15 
Provided, That any member of the community may contest the decision of the Council
16 
within six (6) weeks upon the posting and publication of notice of the acceptance of the
17 
proposal in the manner provided in Section 44. No mining operations shall be allowed to
18 
be conducted pending any action questioning the legality or validity of the proposal.
19 
Sec. 56. Issuance o f the perm it -  After six (6) weeks from the date of the
20 
posting and publication, if no contest is filed, the Bureau shall issue a permit in
21 
accordance with the decision of the Council on the winning proposal.
22 
Sec. 57. Environmental and Soda! Impact Compliance Certificate. -  The mining
23 
proponent shall be issued an Environmental and Social Impact Compliance Certificate by
24 
the Bureau with the approval of the Council.
25 
Provided, That no amendments to the conditions of the Certificate shall be allowed,
26 
unless such proposed amendment shall work for the benefit of the communities, and in
27 
which case, the Council and the Bureau shall be notified of any amendments to the
28 
ESIAMP and that the former should give their consent to the same, after the proponent
29 
explaining in detail the reason for such amendment and the possible impacts and
30 
consequences of these amendments.
31 
Provided further. That any violation of the ESIAMP shall cause the cancellation of the
32 
Certificate.
33 
Sec. 58. Maximum areas for mineral agreements. -  The maximum area under
34 
mineral agreements that a person can hold at any one time shall be determined by the
35 
Council. Provided, That the contract area per agreement shall not exceed five hundred
36 
(500) hectares;
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1 
Provided further, That no person shall be awarded in excess of the total contract area of
2 
seven hundred-fifty (750) hectares in any given watershed area. For the purposes of
3 
this Act, the prohibition on the maximum area shall also include corporations that shall
4 
have common directors or significant shareholders.
5 
Sec. 59. Term o f mineral agreement -  The term of the mineral agreement shall
6 
be equivalent to the mine life plus an additional five (5) years for the rehabilitation of
7 
the mining area. Provided, That in no case shall a Mineral Agreement have a term
8 
beyond fifteen (15) years. Provided further. That the contractor shall already include
9 
rehabilitation/remediation of the mining area within the ten-year term.
10 
In no case shall a Mineral Agreement be extended without just cause to be determined
11 
by the Council, Provided, That the extension shall not cause the term of the agreement
12 
to exceed the fifteen (15) year term mentioned in the preceding section. 
Provided
13 
further. That for the purposes of this Act, just cause shall mean acts or events resulting
14 
from war, force majeure or those beyond the control of the mining proponent not
15 
attributable to the same.
16 
Provided finally. That in no case shall mineral agreements be renewed after the
17 
expiration of the fifteen-year period.
18 
Sec. 60. Prohibition on open-pit mining method and submarine tailings disposal.
19 
-  Open-pit mining method for the extraction of mineral ores and the submarine tailings
20 
disposal method shall be prohibited.
21 
Sec. 61. Failure to initiate mining operations. -  Failure to commence the
22 
development stage of the mining operations in accordance with the work program
23 
within two (2) years from the award of the mineral agreement shall cause the
24 
cancellation of the mineral agreement. The contractor thereafter forfeits the value of
25 
the improvements made upon the land. The contractor and other corporations who are
26 
also run by the same directors and officers are thereafter banned from bidding to
27 
conduct mining operations for ten (10) years after failure to commence the
28 
development stage of the mining operations in accordance with the work program.
29 
Sec. 
62. 
Mandatory consultations in each mining phase. 
-  Mandatory
30 
consultations with affected persons and communities shall be undertaken in each phase
31 
of mining operation: exploration, extraction, processing, and mine closure to ensure
32 
that the peoples shall be informed of the proposed plans and methods that are
33 
proposed to be conducted.
34 
Sec. 63. FPIC on each stage o f mining operation. -  The free and prior informed
35 
consent of the ICCs/IPs, the barangay assemblies, and private landowners, possessors,
36 
occupants shall be required at each and every stage of the mining operations.
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1 
As to ICCs/IPs, their free and prior informed consent shall be secured in accordance
2 
with their laws, practices and processes. 
Violation of any of the conditions imposed by
3 
the ICCs/IPs on the contractor shall cause the cancellation of the mineral agreement.
4 
Included in this process is the explanation of the rights of ICCs/IPs of ownership and
5 
self-determination.
6 
Sec. 64. Multi-partite monitoring. -  The Council shall form a multi-partite
7 
monitoring team to monitor compliance by the contractor of the terms and conditions of
8 
the mineral agreement. It may conduct ocular inspections of the contract area at any
9 
time of the day and night. It shall also inspect all the books of contractors and refer the
10 
same to independent auditors. The Multi-partite monitoring team and/or the Bureau
11 
may confiscate surety, performance and guaranty bonds posted through an order to be
12 
promulgated by the Director. 
The Council, the Director or the local government
13 
authorities may deputize, when necessary, any member or unit of the Philippine
14 
National Police, barangay, duly registered nongovernment organization (NGO) or any
15 
qualified person to police any and all mining activities.
16 
Sec. 65. Withdrawal from the mineral agreement -  The contractor may withdraw
17 
from the mineral agreement at any time for justifiable cause with one (1) month's
18 
notice to the Bureau, the Council and/or the ICCs/IPs, and other government agencies
19 
as may be provided by law. The Council, in cooperation with other 
concerned
20 
government agencies, shall issue a clearance for withdrawal upon certifying that the
21 
contractor has complied with all its legal obligations, including the appropriate measures
22 
for mine closure and rehabilitation. Funds and bonds which have been put up by the
23 
contractor in accordance with this Act shall be forfeited.
24 
Sec. 66. Non-transferabiiity o f mineral agreements. -  In no case shall mining
25 
rights under this Act be transferrable. The contractor shall also immediately notify the
26 
Council and the Bureau of any substantial change in the ownership and/or control of
27 
the corporation. Violation of this provision shall cause the cancellation of the agreement
28 
and forfeiture of assets and equipment of the contractor in favor of the State.
29 
Sec. 67. Access to information. -  All contractors for mineral permits and
30 
agreements shall provide information to affected indigenous peoples, local communities,
31 
and local governments. The following information, among others, shall be required:
32 
a) 
The full disclosure of methods and processes of mining;
33 
b) 
The full disclosure of environmental and social risks;
34 
c) 
The full disclosure of ownership structure; and
35 
d) 
The full disclosure of financial sources.
36 
All information and documents related to proposals, mineral agreements, permits and
27


1 
mining operations shall not be considered confidential. Refusal to grant access to this
2 
information shall be cause for the disqualification of prospective proponents or
3 
cancellation of mineral agreements and permits.
4 
The Bureau, being the repository of all relevant information under this Act is mandated
5 
to grant access to the public of any information in its custody. Refusal or unnecessary
6 
delay by the officers of the Bureau to give information shall be punishable by a fine of
7 
fifty thousand pesos (PhP 50,000.00) for every instance of refusal or unnecessary delay.
8 
Information requested by indigents or marginalized sectors shall be given to them for
9 
free.
10
11 
CHAPTER V I
12 
SMALL-SCALE M IN IN G
13
14 
Sec. 68. Applicability o f RA 7076. -  Small-scale mining shall continue to be
15 
governed by the provisions of Republic Act No. 7076 or the People's Small-Scale Mining
16 
Act of 1991, Provided, That the Provincial/City Mining Regulatory Board shall be
17 
composed of the Governor or City Mayor, as chairperson, as the case may be, a
18 
representative from the DENR as co-chairperson, 
one (1) small-scale mining
19 
representative, one (1) large-scale mining representative, one representative from a
20 
nongovernment organization who shall come from an environmental group, one
21 
representative from a people's organization (PO) coming from the marginalized sector,
22 
and at least one (1) representative from the indigenous communities, whenever
23 
applicable, as members. The representatives from the private sector, non-government
24 
organization and indigenous communities shall be selected by their respective
25 
organizations and/or communities, and appointed by the PMRB or CMRB: Provided
26 
further, That the conduct of small-scale mining shall also comply with the prohibitions
27 
and regulations established herein for large-scale mining. Only qualified individuals and
28 
cooperatives may apply for a small-scale mining permit.
29 
Sec. 69. Maximum term o f small-scale mining permits. -  The term for small-scale
30 
mining permits shall be three (3) years, extendable to a maximum of fifteen (15) years.
31 
Sec. 70. Traditional small-scale mining within ancestral domains. -  The Council
32 
shall conduct regular monitoring activities within its jurisdiction 
to determine if the
33 
provisions of relevant laws are complied with in traditional small-scale mining by
34 
ICCs/IPs within their respective ancestral domains.
35 
Sec. 71. FPIC in small-scale mining. -  Small-scale mining activities within any
36 
ancestral domain by any person shall also require the free, prior, and informed consent
37 
of ICCs/IPs.
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Sec. 72. Requirement for an Environmental and Social Impact Compliance 
Certificate. -  Small-scale mining shall likewise require an Environmental and Social 
Impact Compliance Certificate. All small-scale mining applicants or proponents must 
show proof of compliance with the terms and conditions of its Environmental and Social 
Impact Compliance Certificate (ESICC) prior to the issuance of a small-scale mining 
permit. Failure to submit this requirement will result in the non-issuance of the small- 
scale mining permit (SSMP).
Sec. 73. Environmental measures in small-scale mining. -  The State shall 
immediately address the environmental and health hazards and problems in small-scale 
mining, including the use of hazardous chemicals, such as mercury, cyanide and other 
chemicals, in the amalgamation of gold by small-scale miners.
Sec. 74. Prohibition on the use o f mercury. -  Mercury use in small-scale mining 
shall be prohibited. The Bureau shall research, develop and actively promote 
appropriate technologies in small-scale mining including labor-intensive methods, 
environmental protection and physical techniques of gold extraction among small-scale 
miners.
Sec. 75. Multisectoral monitoring team. -  A multisectoral monitoring team shall 
be organized to monitor the SSMP permittee's compliance with the terms and conditions 
of its SSMP and ECC. The MMT shall conduct ocular inspections of the SSMP area at any 
time of the day and night and shall have visitorial powers.
Sec. 
76. 
Alternative livelihood support. 
-  The state shall 
support the 
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 the 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.
Sec. 77. Buying stations. -  The Bangko Sentral ng Pilipinas shall ensure that 
buying stations acquire gold from small-scale traders at prevailing international gold 
market prices and the prevailing exchange rate set by the BSP Treasury Department on 
a daily basis.
29


1 
CHAPTER V II
2 
QUARRY RESOURCES
3
4 
Sec. 78. Quarry resources within ancestrai domains. -  Gathering of quarry
5 
resources, sand and gravel, guano and other organic fertilizer materials, and gemstones
6 
within ancestral domains shall likewise be subject to the free prior informed consent of
7 
ICCs/IPs. ICCs/IPs and the government shall be entitled to at least ten per cent (10%)
8 
of royalties depending on whether the resources are found inside or outside ancestral
9 
domains. Permits shall be limited to a maximum term of five (5) years, renewable for
10 
like periods but not exceeding a total term of twenty five (25) years, and a maximum
11 
area of five (5) hectares.
12 
Sec. 79. Quarry Permit -  Any qualified Filipino may apply for a quarry permit on
13 
privately- owned lands except ancestral domains and/or public lands for building and
14 
construction materials such as marble, basalt, andesite, conglomerate, tuff, adobe,
15 
granite, gabbro, serpentine, inset filling materials, clay for ceramic tiles and building
16 
bricks, pumice, perlite and other similar materials that are extracted by quarrying from
17 
the ground at the provincial/city mining regulatory board. The provincial governor shall
18 
grant the 
permit after the applicant has complied with all the requirements as
19 
prescribed 
by the rules and regulations set forth by this Act. 
Provided, That
20 
gathering/extraction of sand for its metallic contents such as magnetite from the
21 
country's rivers and shorelines shall be require a mineral agreement in lieu of a quarry
22 
permit.
23 
The maximum area which a qualified person may hold at any one time shall be limited
24 
to a surface area of five hectares (5 has.): Provided, That in large-scale quarry
25 
operations involving cement raw materials, 
marble, granite, sand and gravel and
26 
construction aggregates, a qualified person and the government may enter into a
27 
mineral agreement as defined herein.
28 
A quarry permit shall have a term of five (5) years, renewable for like periods but not to
29 
exceed a total term of twenty-five (25) years. No quarry permit shall be issued or
30 
granted on any area covered by a mineral agreement.
31 
Sec. 80. Quarry Fee and Taxes. -  A permittee shall pay a quarry fee as provided
32 
for under the implementing rules and regulations. The permittee shall also pay the
33 
excise tax as provided by pertinent laws.
34 
Sec. 81. Cancellation o f Quarry Permit -  A quarry permit may be cancelled by
35 
the provincial governor for violations of the provisions of this Act or its implementing
36 
rules and regulations or the terms and conditions of said permit: Provided, That before
37 
the cancellation of such permit, the holder thereof shall be given the opportunity to be
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heard in an investigation conducted for the purpose.
Sec. 82. Commercial Sand and Gravel Permit. -  Any qualified person may be 
granted a permit by the provincial governor to extract and remove sand and gravel or 
other loose or unconsolidated materials outside ancestral domains which are used in 
their natural state, without undergoing processing from an area of not more than five 
hectares (5 has.) and in such quantities as may be specified in the permit.
Sec. 83. Industrial 
Sand and Gravel 
Permit -  Any qualified person may be
granted an industrial sand 
and gravel permit 
by the Bureau 
for the extraction of sand
and gravel and other loose or unconsolidated materials outside ancestral domains that 
necessitate the use of mechanical processing covering an area of not more than five 
hectares (5 has.) at any one time. The permit shall have a term of five (5) years, 
renewable for a like period but not to exceed a total term of twenty-five (25) years.
Sec. 
84. Exclusive Sand and 
Gravel Permit -  Any qualified person 
may be
granted an exclusive sand 
and gravel permit 
by the provincial governor to quarry and
utilize sand and gravel or other loose or unconsolidated materials from public lands for 
his own use. Provided, That there will be no commercial disposition thereof
Sec. 
85. 
Government Gratuitous Permit 
-  Any 
government 
entity 
or 
instrumentality may be granted a gratuitous permit by the provincial governor to extract 
sand and gravel, quarry or loose unconsolidated materials outside ancestral domains 
needed in the construction of building and/or infrastructure for public use or other 
purposes over an area of not more than two hectares (2 has.) for a period coterminous 
with said construction.
Sec. 86. Private Gratuitous Permit -  Any owner of land may be granted a private 
gratuitous permit by the provincial governor to extract sand and gravel, quarry or loose 
unconsolidated materials within his property.
Sec. 87. Guano Permit -  Any qualified person may be granted a guano permit by 
the provincial governor to extract and utilize loose unconsolidated guano and other 
organic fertilizer materials in any portion of a municipality where he/she has an 
established domicile outside ancestral domains. The permit shall be for specific caves 
and/or for confined sites with locations verified by the Department's field officer in 
accordance with existing rules and regulations. Provided, That extraction does not 
violate and is consistent with the provisions in the Cave Conservation Act and the 
Wildlife Act.
Sec. 88. Gemstone Gathering Permit -  Any qualified Filipino may be granted a 
non-exclusive gemstone gathering permit by the provincial governor to gather loose 
stones useful as gemstones in rivers and other locations outside ancestral domains.
31


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Sec. 89. Council recommendation for approval -  All permits under Chapter VII of 
this Act shall require the recommendation of the Multi-Sectoral Mineral Council prior to 
approval by the provincial government unit. The absence of a recommendation from the 
Council prohibits the approval of any permit in this Chapter.
CHAPTER V III
TRANSPORT, SALE AND PROCESSING OF MINERALS
Sec. 90. Ore transport perm it -  A permit specifying the origin and quantity of 
non-processed mineral ores or minerals shall be required for their transport. Transport 
permits shall be issued by the Bureau. The absence of a permit shall be considered as 
prima facie evidence of illegal mining and shall be sufficient cause for the confiscation 
of the ores or minerals being transported, the tools and equipment utilized, and the 
vehicle containing the same.
Sec. 91. Mineral trading registration. -  No person shall engage in the trading of 
mineral products, either locally or internationally, unless registered with the Department 
of Trade and Industry and accredited by the Department, with a copy of said 
registration submitted to the Bureau.
Sec. 92. Track record. -  Only mining companies with demonstrated capacity and 
good environmental track record in mineral processing shall be given mineral processing 
permit. The Council shall encourage contractors to put up processing plants within the 
community with the end in view of generating employment and developing other 
downstream industries.
Sec. 93. Minerai processing perm it -  No individual, partnership, partnership, 
cooperative, corporation or other entity shall engage in the Secretary of the 
Department. Of Environment and Natural Resources (DENR).
In the case of small-scale miners, the processing of mineral ores they produce, 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.
In the case of individuals, corporations, partnerships, cooperatives or other entities who 
are parties to a Mineral Agreement or a Financial or Technical Assistance Agreement, 
holders of quarry and industrial sand and gravel permits, the approved work program 
for the production period shall be sufficient requirement for them to process minerals in 
lieu of a mineral processing permit.
A mineral processing permit shall be for a period of ten (10) years, renewable for like 
periods: Provided, That renewal shall not be allowed unless the permit holder has 
complied with all the terms and conditions of the permit and has not been found guilty
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of violation of any provision of this Act and its implementing rules and regulations.
After due process, a mineral processing permit may be suspended, revoked or cancelled 
by the DENR for violation of its terms and conditions, or of pertinent laws, rules and 
regulations.
Mineral processing shall be included in the Investment Priority plan to be prepared by 
the Board of Investment in accordance with Executive Order No. 226, as amended, 
otherwise known as the Omnibus Investment Code of 1987 and shall always be listed as 
a preferred area of investment.
CHAPTER IX
DEVELOPMENT OF COMMUNITIES, SCIENCE, AND TECHNOLOGY
Sec. 94. Expenditure for community deveiopment -  A contractor shall assist in 
the development of the community, and the promotion of the general welfare of its 
inhabitants towards sustainable development. Community development projects shall in 
no way decrease the obligation of the corporation with regard to royalties and fees due 
to communities or local government units. Community development projects should be 
consistent with the Comprehensive Land Use Plans (CLUP), Ancestral Domains 
Sustainable Development and Protection Plan (ADSDPP) and annual investment plans of 
the local governments, CADT/CALT holders and the like.
Sec. 95. Employment o f Filipinos and training o f members o f the local 
community. -  A contractor and/or permittee shall give preference to Filipino citizens in 
all types of mining employment within the country. 
Members of the local community 
shall be trained in all aspects of the mining operations, including remining, recycling, 
rehabilitation, and the management thereof.
Sec. 96. Use o f indigenous goods, services and technologies. -  A contractor shall 
give preference to the use of local goods, services, and the scientific and technical 
resources in all stages of mining operations, where the same are of equivalent quality 
and are available on equivalent terms as their imported counterparts.
Sec. 97. Donation/turnover o f facilities. -  Prior to the cessation of mining 
operations occasioned by abandonment or withdrawal of operations, on public lands by 
the contractor, the latter shall have a period of one (1) year therefrom within which to 
remove improvements; otherwise all the infrastructure, facilities and equipment shall be 
turned over or donated tax-free to the proper government authorities, national or local, 
to ensure that said infrastructure facilities and equipment are continuously maintained 
and utilized by the host and neighboring communities. A fine of one hundred thousand 
pesos (PhP100,000.00) shall be imposed for every day of delay.
33


2 
CHAPTER X
3 
BENEFIT SHARING, TAXES AND FEES
4
5 
Sec. 98. Taxes and fees. -  The contractor shall pay all taxes and fees as required
6 
by law, including, but not limited to;
7 
a) contractor's income tax;
8 
b) customs, duties and fees on imported capital equipment;
9 
c) value-added tax on imported goods and services;
10 
d) withholding tax on interest payments on foreign loans;
11 
e) withholding tax on dividends to foreign stockholders;
12 
f) documentary stamps taxes;
13 
g) capital gains tax;
14 
h) excise tax on minerals;
15 
i) local business tax;
16 
j) real property tax;
17 
k) community tax;
18 
I) occupation fees;
19 
m) registration, accreditation, and permit fees; and
20 
n) water usage fees.
21 
Sec. 99. 
Government share. -  Aside from the taxes and fees referred to in the
22 
preceding section. Government shall have at least a share equivalent to ten per cent
23 
(10%) of the gross revenues from the development and utilization of mineral resources
24 
that are owned by it to be set aside for the general fund of the government to be used,
25 
among others, for special projects such as energy development and generation and the
26 
management and conservation of protected areas in areas within the vicinity or
27 
adjacent to mining operations.
28 
Sec. 100. Indigenous cultural communities' royalty. -  In case of mineral
29 
operations within ancestral domains, the contractor shall pay at least ten percent (10%)
30 
of the gross revenues as royalty to the ICCs/IPs. Community development programs
31 
shall not be considered as royalty payment. The payment of the royalties shall directly
32 
be given to the communities in a process that build on the ICCs/IPs' traditional and
33 
customary laws: Provided, That the royalty established in this Act shall be a minimum
34 
royalty payment and may still be subject to other conditions to be agreed by the
35 
parties, free from any external manipulation, interference, coercion, and other
36 
analogous acts, and obtained after fully disclosing the intent and scope, including the
37 
positive and negative impacts of the activity, in a language and process understandable
34


1 
and acceptable to them.
2 
Sec. 101. Scientific research and deveiopment fund. -  A Scientific Research and
3 
Development Fund shall be set aside to be devoted to research and development of
4 
clean mining technologies, improvement of mining processes, mine rehabilitation,
5 
mitigating technologies, setting up and maintenance of an independent pool of experts,
6 
and operational expenses of the Bureau.
7 
Sec. 102. Legai support services fund. -  A legal support fund shall be set aside
8 
for the use of the communities and local government units for cases that they may file
9 
against mining permittees or cases that may be filed against them by mining companies
10 
in trying to do their responsibility of protecting the rights of the marginalized groups,
11 
the environment and sustainable development in general.
12 
Sec. 103. Locai Government Unit share. -  Local Government Units shall be
13 
entitled to a share of the net revenues from mining operations which shall be paid
14 
directly to the provincial/independent component city/highly urbanized city treasurer/s
15 
for distribution to other local government units. To determine the government share,
16 
the following variables shall be considered:
17 
a) 
Classification of local government;
18 
b) 
Vulnerability; and
19 
c) 
Human development index.
20 
A percentage of this amount shall be set aside by the respective local government units
21 
for Disaster Risk Management. 
This fund shall likewise benefit ICCs/IPs within the
22 
territory of the local government unit. Provided, That the administrative and operational
23 
expenses of the Council shall also be taken from this share.
24 
Sec. 104. Mine wastes and taiiings fees. -  A semi-annual fee to be known as
25 
mine wastes and tailings fee is hereby imposed on all operating mining companies in
26 
accordance with the implementing rules and regulations. The mine wastes and tailings
27 
fee shall accrue to a fund to be used as support funds for monitoring activities of the
28 
Council. The Secretary is authorized to increase mine wastes and tailings fees, when
29 
public interest so requires.
30 
Sec. 105. Incentives. -  Incentives that shall be given to the contractors shall only
31 
be limited to pollution control or mitigation devices.
32 
Sec. 106. Deposit o f capitai and profits requirement -  As part of their
33 
demonstrated financial capacity, all large-scale mining companies/contractors are
34 
required to deposit their capital investment and profits in banks or financial institutions
35 
that are owned, managed and operated by the Philippine government.
36 
Sec. 107. Generai ruie on profit repatriation. -  Contractors with foreign financial
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assistance shall be allowed to repatriate their profits from mining projects that should 
not exceed fifty percent (50 %) of the total posted at the end of every fiscal year. Full 
disclosure of profits is required. The full repatriation of profits shall be allowed one year 
after the cessation of mining activities and the progressive rehabilitation of a mining 
area as specified in the mineral agreement of each contractor.
The guidelines for Sections 106 and 107 shall be issued by the Bangko Sentral ng 
Pilipinas and shall be furnished to the Department, Bureau, Council and all respective 
contractors in the industry.
CHAPTER X I
SAFETY AND ENVIRONMENTAL PROTECTION 
A. SAFETY
Sec. 108. Mines safety. -  All contractors and permittees shall strictly comply with 
all the mines and safety rules and regulations concerning the safe and sanitary upkeep 
of the mines and mining development. 
Government personnel involved in the 
implementation of mines safety, occupational health and environmental rules and 
regulations shall be covered under Republic Act No. 7305 or the Magna Carta of Public 
Health Workers.
Sec. 109. Mine iabor. -  No person under sixteen (16) years of age shall be 
employed in any place of mining operations and no person under eighteen (18) years of 
age shall be employed in a mine.
Sec. 110. Mine supervision. -  All mining and quarrying operations shall have at 
least one (1) licensed mining engineer for every fifty (50) employees. Such engineer/s 
shall have at least five (5) years of experience in mining operations, and one (1) 
registered foreman.
Sec. 111. Safety o f workers. -  All mining companies shall provide safeguards to 
the health and well-being of workers. The Regional Office of the Department of Labor 
and Employment shall inspect all mining sites within their areas of jurisdiction to 
determine the conditions of workers. Denial of entry shall be punishable under this Act. 
Representatives of labor unions shall also have visitorial rights.
Sec. 112. Mine inspection. -  The mines regional directors and the Council shall 
have jurisdiction over the safety inspection of all installations, surface or underground, 
in mining operations at reasonable hours of day or night and as much as possible in a 
manner that will not impede or obstruct work in progress of a contractor or permittee. 
Monitoring reports and recommendations of the Bureau shall be submitted to the 
Council.
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Sec. 113. Power to issue orders. -  The mines regional director, in consultation
2 
with the Environmental Management Bureau, forthwith or within such time as specified
3 
in the order, require the contractor to remedy any practice connected with mining,
4 
which is not in accordance with safety and anti-pollution laws and regulations. In case
5 
of imminent danger to life or property, the Director may summarily suspend the mining
6 
operation until the danger is removed, or appropriate measures are taken by the
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contractor. Unreasonable delay to remove the danger or introduce the necessary
8 
improvements by the contractor shall be a cause for the cancellation of the mineral
9 
agreement.
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Sec. 114. Report o f accidents. -  In case of any incident or accident, causing or
11 
creating the danger of loss of life or serious physical injuries, the person in charge of
12 
operations shall immediately report the same to the regional office where the
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operations are situated. Failure to report the same without justifiable reason shall be
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cause for the imposition of administrative sanctions prescribed in the rules and
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regulations implementing this Act.
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B. ENVIRONMENTAL PROTECTION
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Sec. 115. Environmental Insurance. -  Contractors and mineral processing permit
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holders shall be obliged to execute an insurance contract as an environmental
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assurance for each and every source of pollution or disaster, relative to the "worst case
22 
scenario" costs, following accepted actuarial standards. Provided, That in no way shall
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this provision be construed to remove or reduce the liability of the contractors and/or
24 
permit holders to compensate any damage caused by their operations. Provided further,
25 
That the insurer shall be an accredited international company in good standing.
26 
Prior to the approval of the insurance contract by the DENR, the DENR shall seek and
27 
consider the opinion of an independent expert as to the financial credibility of the
28 
insurer.
29 
Sec. 116. Calamity and Human Rights Protection Fund. -  Persons issued a
30 
mineral agreement shall deposit five million pesos (PhP 5,000,000.00) semi-annually in
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an interest-bearing account a common fund maintained by the national government
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which shall be used for responding to, or ameliorating the effects of calamities, natural
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disasters and human rights violations including militarization, displacement, and forcible
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evacuation in any part of the country in relation to mining activities. Provided, That in
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no way shall this provision be construed to remove or reduce the liability of the
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contractors and/or permit holders to compensate any damage caused by their
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operations.
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Sec. 117. Performance Bond. -  The contractor shall put up a bond in an amount
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equivalent to fifty per cent (50%) of the projected cost of rehabilitation as validated by
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independent studies. This amount shall be deposited in an interest-bearing account.
4 
The bond shall be forfeited in the event that the contractor shall fail or default in the
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rehabilitation or remediation of the mining area as included in the work plan of the
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contractor or abandons the mine at any time of its operations.
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Sec. 118. Rehabilitation. -  Contractors and permittees shall technically and
8 
biologically rehabilitate the excavated, mined-out, tailings covered and disturbed areas
9 
to the condition of environmental safety, as may be provided in the implementing rules
10 
and regulations of this Act. A mine rehabilitation fund shall be created, based on the
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contractor's approved work program, and shall be deposited as a trust fund in a
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government depository bank and used for physical and social rehabilitation of areas and
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communities affected by mining activities and for research on the social, technical and
14 
preventive aspects of rehabilitation. Failure to fulfill the above obligation shall mean
15 
immediate suspension or closure of the mining activities of the contractor/permittee
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concerned.
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Mining firms are hereby mandated to reforest 100 hectares of land for every one
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hectare of land they utilize in the course of their mining operations. Mining firms are
19 
also mandated to immediately restore and replant areas that they have already finished
20 
excavating as they move on to other development sites: Provided, That if mining firms
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cannot do the reforestation in their immediate area they could do the reforestation in
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other areas provided they comply with 100:1 hectare ratio. Any mining firm found to
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have violated or have not complied with the foregoing mandatory provisions shall be
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held liable with the penalty of revocation of their mining permits and payment of a fine
25 
of not less than One Million Pesos (PhP 1,000,000).
26 
The owners, officers and management employee of said mining firms shall also be held
27 
liable and be subject to imprisonment of not less than one (1) year nor more than three
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(3) years.
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Sec. 119. Progressive rehabilitation. -  Contractors shall also conduct progressive
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rehabilitation activities.
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Sec. 120. Adoption o f Precautionary Principle. -  When an activity related to
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mining raises threats of harm to human health or the environment, precautionary
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measures shall be taken proactively even if some cause and effect relationship are not
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fully established scientifically. The mining proponent and the Bureau shall also be
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obliged to disclose whether or not the cause and effect have not yet been scientifically
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Sec. 121. Adoption o f Polluter Pays Principle. -  Polluters shall pay for the damage
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they cause to the environment. The amount of damages shall be determined by
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accredited independent consultants, to be chosen from a list and agreed upon by both
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the mining proponent and by the Council.
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Sec. 122. Tailings impoundment -  Tailings impoundments shall be built away
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from critical watershed drainage areas. Furthermore, it shall be ensured that
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impoundments will not endanger critical watershed areas or low-lying valleys in the
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event of accidents under abnormal conditions. Tailing impoundments and dams shall
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meet the international standards for large dams.
10 
Sec. 123. Dumping o f waste. -  Dumping of waste or tailings in any body of water
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shall be prohibited. Provisions on the Clean Water Act and Clean Air Act shall be strictly
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implemented.
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Sec. 124. Use o f toxic chemicals and methods. -  At all times, mining contractors
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shall use chemicals or reagents which would result to the least environmental and social
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destruction. The use of mercury and cyanide for the extraction of gold, silver and other
16 
minerals shall be prohibited. The use of blow torching to separate gold from amalgam
17 
shall likewise be prohibited.
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Sec. 125. Preservation o f topsoil. -  The removed topsoil, or the more productive
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horizons of the soil shall be preserved for other uses.
20 
Sec. 126. Priority use for water. -  The National Water Resources Board shall
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investigate any existing use of water resources in the area whether or not covered by
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any existing water permit or registration. Upon determination of any existing use, the
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applicant shall procure the consent of all water users and/or the free prior and informed
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consent of ICCs/IPs with or without water permits within the same groundwater
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network or any downstream users of water resources. In all instances, priority shall be
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given to use of water for domestic, municipal, and agricultural purposes. If potential
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negative impact on other water users is identified, the water permit shall not be
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granted. For water resources within the ancestral domain of indigenous peoples, no
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water permit shall be granted by the National Water Resources Board without the free
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and prior informed consent of indigenous peoples.
31 
Sec. 127. Recycling o f water resources. -  Water used in mining operations shall
32 
be recycled. Mining contractors shall be required to provide for the methods or
33 
equipment for the recycling or reuse of water. Released contaminated water shall be
34 
treated accordingly to meet national standards. Released water must at least be
35 
equivalent in quality to the baseline water quality.
36 
Sec. 128. Water user fee. -  A water user fee that reflects the value of water to
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the country and community shall be imposed by the Council for water used in mining 
operations. Contractors shall pay the fee to the National Water Resources Board which 
shall use the same for monitoring and improvement of the affected waterways and 
systems and the mitigation of negative impacts thereon to ensure that communities 
shall have access to clean water.
C. ACID MINE DRAINAGE
Sec. 129. Prohibition from using acid-generating waste rock to buiid roads or 
dams. -  To prevent or mitigate acid mine drainage, there shall be a prohibition against 
using acid-generating waste rock to build roads or dams or other infrastructures. The 
use of such materials shall only be used after treatment to neutralize the effect of acid 
mine drainage.
Sec. 130. Estabiishment o f 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 o f 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 o f 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 X II
RESOLUTION OF CONFLICTS
Sec. 134. Panei o f 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
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recommended by the Mines and Geosciences Bureau Director. Those designated as
2 
members of the panel shall serve as such in addition to their work in the Department
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without receiving any additional compensation As much as practicable, said members
4 
shall come from the different bureaus of the Department in the region. The presiding
5 
officer thereof shall be selected by the drawing of lots. His tenure as presiding officer
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shall be on a yearly basis. The members of the panel shall perform their duties and
7 
obligations in hearing and deciding cases until their designation is withdrawn or revoked
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by the Secretary. Within thirty (30) working days, after the submission of the case by
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the parties for decision, the panel shall have exclusive and original jurisdiction to hear
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and decide on the following;
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a) Questions involving compliance with the established technical guidelines
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and standards herein established, or those to be established by the
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implementing rules and regulations of this Act;
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b) Questions involving the compliance with technical procedures herein
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established, or those to be established by the implementing rules and
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regulations; and
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c) Other similar instances wherein the technological and technical expertise
18 
of the Department shall be needed.
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Disputes involving real rights, contractual obligations and the other causes of action
20 
that are outside the technological and technical expertise of the Panel of Arbitrators
21 
shall be under the jurisdiction of the regular courts or as otherwise provided by other
22 
special laws.
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Provided, That disputes pending before the Bureau and the Department at the date of
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the effectivity of this Act shall undergo an immediate review within sixty (60) working
25 
days upon the passage of this Act to determine the cause of action. Those which are
26 
outside the technical expertise of the Department or Bureau shall be refiled with the
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appropriate court, without costs to the complainant or petitioner.
28 
Sec. 135. 
Appeal. -  The decision or order of the panel of arbitrators may be
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appealed by the party not satisfied thereto to the Mines Adjudication Board within
30 
fifteen (15) days from receipt thereof which must decide the case within thirty (30)
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days from submission thereof for decision.
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Sec. 136. Mines Adjudication Board (MAB). -  The Mines Adjudication Board shall
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be composed of three (3) members. The Secretary of the DENR shall be the
34 
Chairperson with the Director of the Mines and Geosciences Bureau and the
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Undersecretary for Operations of the Department as members thereof. The Board shall
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have the following powers and functions:
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a) To promulgate rules and regulations governing the hearing and disposition
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of cases before it, as well as those pertaining to its internal functions, and
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such rules and regulations as may be necessary to carry out its functions;
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b) To administer oaths, summon the parties to a controversy, issue
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subpoenas requiring the attendance and testimony of witnesses or the
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production of such books, papers, contracts, records, statement of
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accounts, agreements, and other documents as may be material to a just
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determination of the matter under investigation, and to testify in any
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investigation or hearing conducted in pursuance of this Act;
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c) To conduct hearings on all matters within its jurisdiction, proceed to hear
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and determine the disputes in the absence of any party thereto who has
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been summoned or served with notice to appear, conduct its proceedings
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or any part thereof in public or in private, adjourn its hearings at any time
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and place, refer technical matters or accounts to an expert and to accept
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his report as evidence after hearing of the parties upon due notice, direct
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parties to be joined in or excluded from the proceedings, correct, amend,
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or waive any error, defect or irregularity, whether in substance or in form,
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give all such directions as it may deem necessary or expedient in the
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determination of the dispute before it, and dismiss the mining dispute as
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part thereof, where it is trivial or where further proceedings by the Board
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are not necessary or desirable:
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d) To hold any person in contempt, directly or indirectly, and impose
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appropriate penalties therefor; and
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e) To enjoin any or all acts involving or arising from any case pending before
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it which, if not restrained forthwith, may cause grave or irreparable
26 
damage to any of the parties to the case or seriously affect social and
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economic stability.
28 
In any proceeding before the Board, the rules of evidence prevailing in courts of law or
29 
equity shall not be controlling and it is the spirit and intention of this Act that shall
30 
govern. The Board shall use every and all reasonable means to ascertain the facts in
31 
each case speedily and objectively and without regard to technicalities of law or
32 
procedure, all in the interest of due process and social justice. In any proceeding before
33 
the Board, the parties may be represented by legal counsel. The findings of fact of the
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Board shall be conclusive and binding on the parties and its decision or order shall be
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final and executory.
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A petition for review by certiorari and question of law may be filed by the aggrieved
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party with the Supreme Court within thirty (30) days from receipt of the order or
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decision of the Board.
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CHAPTER X III
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ACCESS TO JUSTICE
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Sec. 137. Obligation to respect human rights. -  Corporations shall respect,
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protect and promote the human rights of communities affected by mining, including the
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right to life, liberty and property, freedom of movement, right of public participation and
10 
the right to self-determination of indigenous cultural communities.
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Sec. 138. Violations o f human rights. -  Extrajudicial killing, torture, involuntary
12 
disappearance, forcible displacement of populations, setting up of checkpoints, and
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imposition of toll fees which impede the freedom of movement within mineral areas,
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deprivation of food and water sources, vote-buying and bribery for the purpose of
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securing consent or endorsement for the mining project, and other analogous acts are
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violations of human rights. Violations of human rights by contractors shall cause the
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immediate cancellation of mineral agreements. The offending contractor, as well as
18 
corporations having the same directors and/or officers as of the offending contractor
19 
shall be perpetually disqualified from being granted a mineral agreement. All equipment
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and assets of the corporation or person shall be confiscated in favor of the government.
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Sec. 139. Use o f paramilitary and military forces. -  All mining companies are
22 
strictly prohibited from employing paramilitary groups. 
Use of private and military
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forces shall result in the automatic cancellation of the mineral agreement and the filing
24 
of appropriate civil, criminal and/or administrative charges.
25 
Sec. 140. Strategic Legal Action Against Public Participation (SLAPP). -  SLAPPs
26 
shall be strictly prohibited. 
SLAPP is any legal action, whether civil, criminal or
27 
administrative, filed to harass, vex, exert legal action or stifle legal recourses of
28 
community members complaining against violations of this Act or enforcing the
29 
provisions of the Act, or exercising their freedom of assembly or right of public
30 
participation. The investigating prosecutor or court shall immediately determine within a
31 
period of thirty (30) days from filing thereof whether a legal action is a SAPP and
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accordingly dismiss the same.
33 
Sec. 141. Indigents' suit -  Indigents shall be exempt from payment of any
34 
administrative or court fees, including docket fees for the filing of a case. Lawyers shall
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be provided by the Public Attorney's Office to pauper litigants in case they could not
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afford legal services.
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Sec. 142. Application o f the customary laws o f ICCs/IPs. -  The contractor shall
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respect the customary laws of the ICCs/IPs and shall submit to the processes of their 
customary laws, Provided, That these laws are not contrary to the provisions of the 
Constitution.
Sec. 143. Strict iiabiiity. -  Mining corporations are strictly liable for all damages 
that the mining operations might cause. In case of any actual damage, the burden of 
proof shall lie with the corporations.
Sec. 144. Piercing the corporate veil. -  When the separate personality of the 
corporation from its shareholders is being invoked as defense in order to perpetuate a 
crime, fraud or other machinations, or evade liability, the separate personality of the 
corporation shall be set aside. 
Civil, criminal and administrative actions may thus be 
filed directly against the members of the Board of Directors, officers and/or individual 
stockholders.
Sec. 145. Citizen suits. -  For the purpose of enforcing the provisions of this Act 
or its implementing rules and regulations, any citizen may file appropriate civil, criminal 
and administrative suits against any of the following:
a) Any person who violates or fails to comply with the provisions of this Act 
or its implementing rules and regulations;
b) Any public officer with respect to orders, rules and regulations 
inconsistent with this Act; or
c) Any public officer who willfully or grossly neglects the performance of an 
act specifically enjoined as a duty by this Act or its rules and regulations; 
or abuses the authority in the performance of a duty or duties under this 
Act or its implementing rules and regulations.
The court shall exempt such action from the payment of filing fees, except fees for 
actions not capable of pecuniary estimation, and shall likewise, upon prima facie 
showing of non-enforcement or violation complained of, exempt the plaintiff from filing 
an injunction bond for the issuance of a preliminary injunction.
The court shall determine whether or not the complaint is malicious or baseless and 
shall accordingly dismiss the petition within thirty (30) days upon the filing of the case.
CHAPTER XIV 
PENAL PROVISIONS
Sec. 146. Grounds for the canceiiation o f mineral agreements and permits. -
a) Violation of any provision of this Act;
b) Human rights violations perpetrated by the contractor or any agent of 
the contractor;
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c) Non-payment of taxes;
d) Bribery, use of force, intimidation, threat, coercion of public officials and 
communities;
e) Any act that shall create or contribute to conflicts; and
f) Other analogous acts.
Provided, That, violations of environmental provisions shall cause the immediate 
cancellation of mining permits, and the contractor shall be required to pay for the 
rehabilitation, restoration or clean-up of the impacts of such violations.
Corporations, corporate directors and/or officers found guilty of the above enumeration 
may be subjected to a perpetual ban in the mining industry in the Philippines.
Sec. 147. False statements. -  Any person who knowingly presents any false 
application, declaration, or evidence to the Government or publishes or causes to be 
published any prospectus or other information containing any false statement relating to 
mines, mining operations or mineral agreements and permits shall, upon conviction, be 
penalized by a fine of not exceeding One Hundred Thousand pesos (PhP100,000.00).
Sec. 148. Illegal exploration. -  Any person undertaking exploration work without 
the necessary exploration permit shall, upon conviction, be penalized by a fine of not 
exceeding Five Million pesos (P5,000,000.00).
Sec 149. Theft o f minerals. -  Any person extracting minerals and disposing the 
same without a mining agreement, lease, permit, license, or steals minerals or ores or 
the products thereof from mines or milis or processing plants shall, upon conviction, be 
imprisoned from six (6) months to six (6) years or pay a fine from One Hundred 
thousand pesos (P100,000.00) to One Million pesos (PhPl,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. 150. Unauthorized dealing, selling, and/or buying o f 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 Sentra! ng Pilipinas shall 
be punished as unauthorized dealing and shall be penalized in accordance with the 
provisions in this Act.
Sec. 151. Destruction o f mining structures. -  Any person who willfully destroys or 
damages structures in or on the mining area or on the mill sites shall, upon conviction, 
be imprisoned for a period not to exceed five (5) years and shall, in addition, pay
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compensation for the damages which may have been caused thereby.
Sec. 152. 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.
Sec. 153. Willful damage to a mine. -  Any person who willfully damages a mine, 
unlawfully causes water to run into a mine, obstructs any shaft or passage to a mine, 
renders useless, damages or destroys any machine, appliance, apparatus, rope, chain, 
tackle, or any other things used in a mine, shall be punished, upon conviction, by the 
appropriate court, by imprisonment not exceeding a period of five (5) years and shall, in 
addition, pay compensation for the damages caused thereby.
Sec. 154. Illegal obstruction to permittees or contractors. -  Any person who, 
without justifiable cause, prevents or obstructs the holder of any permit, agreement or 
lease from undertaking his mining operations shall be punished, upon conviction by the 
appropriate court, by a fine not exceeding Five thousand pesos (PhP 5,000.00).
Sec. 155. Vitiation o f FPIC. -  Any person found to have vitiated the consent of 
the ICCs/IPs through bribery, threat, force, and/or intimidation, or any other similar 
means, shall suffer the penalty of six (6) years and one (1) day to ten (10) years in 
prison, and a fine of at least two million pesos (PhP 2,000,000.00). If the perpetrator is 
a government official, the penalty shall be eight (8) years and one (1) day to twelve 
(12) years imprisonment, and a fine of at least four (4) million pesos (PhP 
4,000,000.00). He/she shall be perpetually prohibited from assuming public office and 
shall be disqualified from receiving other benefits by virtue of his/her position in 
government.
Sec. 156. Penalty for human rights violations. -  Contractors or other persons who 
have violated the human rights of communities in connection with the mining 
operations shall be penalized with ten (10) years to fourteen (14) years imprisonment 
and a fine of at least five million pesos (PhP 5,000.000,00) and shall indemnify the 
victims.
Sec. 157. Amendment to Section 27 o f Republic Act No. 7076 or the Small-scale 
Mining Act. -  Violations of the provisions of RA 7076 or of the rules and regulations 
issued pursuant hereto shall be penalized with imprisonment of six (6) years and 1 day 
to twelve (12) years. The State shall confiscate and seize equipment, tools and 
instruments; effect immediate suspension or closure of the mining activities of the 
permittee concerned and revoke the permit.
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Sec. 158. Abandonment. -  Contractors and/or permittees who shall abandon 
mines shall be perpetually banned or disqualified from conducting mining operations, 
directly or indirectly. The ban and/or disqualification shall include the ofTicers and 
directors of corporations that have abandoned mines.
Sec. 159. Confiscation o f equipment and property. -  The equipment and property 
of contractors and permit holders violating this Act shall be forfeited in favor of the 
government.
Sec. 160. Non-appHcation o f the corporate veil. -  Any person violating the 
provisions of Commonwealth Act No. 108, or the Anti-Dummy Law of the Philippines as 
amended, or is found to have used the corporate structure to defeat the provisions of 
this Act shall suffer the penalty of five million pesos (PhP 5,000,000.00) and perpetual 
ban in the mining industry.
Sec. 161. Reinstatement o f revoked permits. -  After notice and hearing, revoked 
permits that have undergone due process may be reinstated. Provided, That it may only 
be reinstated once.
CHAPTER XV
TRANSITORY PROVISIONS
Sec. 162. -  There shall be a moratorium on all mining activities until all the 
systems are in place for the proper implementation of the law.
Sec. 163. -  All existing mining permits, licenses and agreements are hereby 
deemed cancelled. Those mine workers and their families that may be displaced during 
the transition period shall receive livelihood support and job placements to be facilitated 
by the appropriate agencies of the State.
Sec. 164. -  The classification of public lands as mineral reservations pursuant to 
pre-existing laws shall hereby cease. All such lands shall be closed to mining unless 
opened thereto in accordance with the provisions of this Act. The President's power to 
declare mineral reservations shall henceforth cease to exist. 
A review of the current 
mineral land classification shall be conducted to determine the best livelihood and 
economic option for the said area.
Sec. 165. -  The members of the panels of arbitrators and the provincial or city 
mining regulatory boards established under Republic Act No. 7942 shall hold-over their 
positions until replaced in accordance with provisions of this Act.
CHAPTER XVI 
FINAL PROVISIONS
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Sec. 166. Separability Clause. -  The provisions of this Act are hereby declared to 
be separable and, in the event of any such provisions are declared unconstitutional, the 
other provisions which are not affected thereby shall remain in force and effect.
Sec. 167. Repealing Clause. -  Republic Act No. 7942, Presidential Decree 463, 
Presidential Decree 512, and other related mining laws are hereby repealed. All 
provisions in laws, decrees, issuances and other regulations inconsistent with this 
present law shall be deemed amended or repealed if the inconsistency is irreconcilable.
Sec. 
168. 
Funds. -  The amount of One 
Hundred 
Billion 
Pesos (PhP 
100,000,000,000.00) is hereby appropriated for the proper functioning of the Bureau, 
the Council, and other bodies established under this Act of which half of the said 
amount shall be allotted for the baseline mineral exploration activities of the Bureau.
Sec. 169. Implementing Rules and Regulations. -  The implementing rules and 
regulations of this Act shall be the product of joint collaboration by the Department, and 
representatives from the local government units, peoples' organizations, sectoral 
organizations and non-governmental organizations, and shall be drawn up after 
appropriate and exhaustive public consultations at all levels nationwide.
Sec. 170. Effectivity. -  This Act shall take effect within fifteen (15) days following 
its publication in two (2) national newspapers of general circulation in the Philippines.
Approved,
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