r~l'n':l !r' 
(@ll!O:' ~,lf Hl,,·~\r!'fl>br~ 
SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
) 
'14 
AUG 18 P 4 :15 
SENATE 
S. No. 2362 
Introduced by Senator Ralph G. Recto 
AN ACT 
ESTABLISHING 
ARRANGEMENT 
PURPOSES 
THE 
FISCAL 
REGIME 
AND 
REVENUE 
SHARING 
FOR LARGE-SCALE METALLIC MINING, AND FOR OTHER 
Explanatory Note 
The Philippines, is the 5th richest country in the world in terms of mineral resources, third 
in gold, fourth in copper and fifth in nickel resources. I 
Our mining industry offers so much growth potential. Thus, to take advantage of the 
immense possibilities in this sector, this bill aims to provide for an equitable and competitive tax 
regime to revitalize and strengthen the mineral resource sector; provide long-ternl benefits that 
would outweigh costs; and establish a stronger link between the growth of the sector and overall 
national development. 
In 2012, President Benigno Aquino III expressed in his State of the Nation Address the 
government's aim to raise its revenues fi'om the mining industry. He appealed for the passage of 
a law that would ensure that the government receives just benefits from mining while protecting 
the environment. Executive Order No. 79 was issued on July 6,2012 to lay down general reform 
directions in the mining industry. 
In response to the President's call for reforms in the mining sector, this measure proposes a 
fiscal regime and revenue arrangement between the government and the mining contractor, 
taking into consideration the role of the government as the owner of the minerals and the impact 
of mining activities on the environment and commnnity. 
All Mineral Agreements (MAs) and Financial or Technical Assistance Agreements 
(FTAAs) covering large-scale metallic mineral mining operations shall be governed by the new 
fiscal regime proposed in this bill. 
Of the 30 million hectares of our total land area, 9 million hectares is identified as having. 
high mineral potential, of which only 3.11 % or 0.932 million hectares is covered by mining 
contractsipennits.2 
Guided by the government's commitment to responsible minerals development, only 
mining areas declared as Mining Industry Zones (MIZ) can undertake mining operations and 
shall be administered by the Philippine Mining Development Corporation. 
1 Atty. Ronald S. Recidoro. EO 79 and Beyond: The State and Prospects of the Philippine Mining Industry. Chamber 
of Mines of the Philippines. http://www.slideshare.netlronnierecidoro/mining-l 0 I-the-basics-of-mming-and-the-
philippine-mining-industry 
2 http://www.mgb.gov.ph/Files/ltemLinks/ThePhilippineMineraIsIndustryAtAGlance.jpg 


As a piece of legislation that intends to provide long-term benefits to the government, the 
following provisions are included: 
a) Fiscal regime and revenue sharing agreement wherein the government share shaH be ten 
percent (10%) of gross revenue or fifty-five percent (55%) of Adjusted Net Mining 
Revenue whichever is higher; 
b) Establishment of social and environmental funds; 
c) Allocation of government share wherein the national government shall receive sixty 
percent (60%) while the host local government unit shall get forty percent (40%); and 
d) Establishment of Environmental/Rehabilitation Fund for government environmental 
mining programs determined by the Mining Industry Coordinating Council. 
In order to enhance government accountability, the local government units, indigenous 
cultural communities through the National Commission on Indigenous Peoples, the Department 
of Environment and Natural Resources and other agencies concerned shall regularly submit fund 
utilization and other reports. 
Likewise, this bill also aJms to attract quality investments by providing the following 
incentives:. 
a) Recoverable Pre-operating Expenses; and 
b) Duty-free importation of specialized capital mining equipment. 
The mining sector, composed of only 41 operating metallic mines and 3 processing 
plants/smelters, with total investments of US$6.67 billion from 2004 to 2013/ has contributed· 
0.7% to GDP with a gross production value of P157.1 billion in 2013. In the same year, the 
sector has employed 250,000 or 0.6% of the country's total employment; and has paid a total of 
P18.879 billion in taxes, fees and royalties. 4 
The benefit of this sector to the economy in tenns of exports, jobs, and national and local 
revenues is substantial. Our aJ'chipelago has an estimated value of $1.4 trillion in metallic and 
non-metallic mineral reserves.5 If we can tap at least 3.5% of these mineral reserves, the national 
government can settle its total outstanding debt amounting to P5.632 trillion. 6 
With the foregoing considered, immediate passage of this bill is earnestly sought. 
/mjma 
3 http://www.mgb.gov.phlFiles/ItemLinks/ThePhilippineMineralsIndustryAtAGlance.jpg 
4 Mining Industry Statistics. Mines and Geosciences Bureau. July 8, 2014. 
5 Arangkada Philippines 2010: 
A Business Perspective. .lomt Foreign Chambers. December 2010. 
http://www.investphilippines.info/arangkada/seven-winners/mining/backgroundl 
6 Selected Economic And Financial Indicators. August 7,2014. http://www.bsp.gov.phlstatisticslkeystat/sefi.pdf 


~£IWll' 
SIXTEENTH CONGRESS OF THE 
) 
{f)tflfr d \!le ,~~t'l·t"'nr\! 
REPUBLIC OF THE PHILIPPINES) 
Second Regular Session 
) 
'14 
IIUG 18 P4 ·:15 
SENATE 
S.No. 2362 
RECEIVED flY, 
Introduced by Senator Ralph G. Recto 
AN ACT 
ESTABLISHING 
ARRANGEMENT 
PURPOSES 
THE 
FISCAL 
REGIME 
AND 
REVENUE 
SHARING 
FOR LARGE-SCALE METALLIC MINING, AND FOR OTHER 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
1 
SECTION 1. Short Title. - This Act shall be known as the "Philippine Mineral Resource 
2 
Revenue Sharing Act of2014". 
3 
SEC. 2. Declaration of Policy. -
4 
( a) All mineral resources in public and private lands within the tenitory and exclusive 
5 
economic zone of the Republic of the Philippines are owned by the State. The 
6 
exploration, extraction and utilization of these resources shall be allowed based on real 
7 
contributions to the economic growth of the country, and subject to the exercise by the 
8 
State of its regulatory powers to promote and protect the general welfare of the country; 
9 
(b) The State shall effectively safeguard the environment and protect the rights of affected 
1 0 
communities; 
11 
(c) The State shall get a fair and equitable share of the revenues and economic 
12 
benefits derived from the mineral resources. Any economic rent arising from such 
13 
exploration, extraction and utilization belongs to the State; 
14 
(d) TIle State shall establish a fiscal reginle for the large-scale exploration, development 
15 
and commercial utilization of mineral resources in the country that shall apply to the 
16 
Contractor; 
17 
(e) The State shall promote investments in mining areas allowed by the Govemment 
18 
consistent with the revenue sharing arrangements under this Act; and 
19 
20 
21 
22 
23 
24 
25 
(f) TIle State shall encourage mining investments to develop value-adding and 
downstream industries pursuant to the development program ofthe country. 
SEC. 3. Definition of Terms. - As used in this Act, the following shall mean: 
(a) "Adjusted Net Mining Revenue" means gross revenue less allowable costs 
that include production costs as defined in item (t) hereof and the actual 
general and administrative costs, but not to exceed ten percent (10%) of the 
direct mining, milling and processing costs. Other allowable costs may be 
Page 1 of 10 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
determined in the hnplementing Rules and Regulations of this Act. Prc-
operating expenses may be allowed as deduction provided that the' amount 
shall be deducted within a five-year period from start of commercial 
operation. The interest expenses, and bank and financial charges shall not be 
allowed as deductible expenses from the gross revenue. 
(b) "Adjusted Net Mining Revenue Margin" means total adjusted net m1l11l1g 
revenue divided by gross revenue. 
(e) "Administrative and Judicial Costs" means fees, charges, and or penalties 
imposed by administrative agencies in the exercise of their regular 
administrative functions and or quasi-judicial functions, and those imposed by 
the judiciary under the relevant laws and rules and regulations. 
(d) "Contract Area" means the land or body of water -delineated under a mineral 
agreement or financial or technical assistance agreement properly defined by 
longitude and latitude. 
(e) "Contractor" means a qualified person, acting alone or in consortium, who is a 
party to a mineral agreement or to a financial or technical assistance 
agreement. 
(f) "Co-production Agreement" means an agreement between the Government 
and the Contractor wherein the Government shall provide inputs to the mining 
operations other than the mineral resource. 
(g) "Direct Milling and Processing Costs" means expenditures and expenses 
directly incuned in the mechanical and physical processing and/or chemical 
separation of the ore from the waste to produce marketable mineral products. 
(h) "Direct Mining Costs" means expenditures and expenses directly incurred in 
all activities preparatory to and in the actl:lal extraction of the ore from the 
earth and transporting it to the mill plant for mineral processing. 
(i) "Excess Adjusted Net Mining Revenue" means the adjusted net m1l11l1g 
revenue that is in excess of the threshold adjusted net mining revenue or the 
difference between the total adjusted net mining revenue and the threshold 
adjusted net mining revenue. 
0) "Final Mining Area" means the contract area or portion( s) thereof identified 
by the Contractor as defined and delineated in a survey plan duly approved by 
the Director I Regional Director concerned of the Mines and Geosciences 
Bureau for purposes of large-scale mining, development and utilization of 
mineral resources, and sites for support facilities. 
(k) "Financial or Technical Assistance Agreement" means a contract involving 
financial or technical assistance for large-scale exploration, development and 
utilization of mineral resources. 
Page 2 of 10 


2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
(I) "Joint-venture Agreement" means an agreement where a joint-venture 
company is organized by the Government and the Contractor with both parties 
having equity shares. Aside from earnings in equity, the Government shall be 
entitled to a share in the gross output. 
(m) "Large scale metallic mining" means mmmg activities involving metallic 
minerals and which are not classified as small-scale mining. 
(n) "Metallic Mineral" means a mineral having a brilliant appearance, quite 
opaque to light, usually giving a black or very black streak, and from which a 
metallic element! component can be extracted! utilized for profit. 
(0) "Mineral Agreement" means a contract between the Government and a 
Contractor, involving mineral production-sharing agreement, co-production 
agreement, or joint-venture agreement. 
(P) "Mineral Processing" means the milling, beneficiation, leaching, smelting, 
cyanidation, calcination, upgrading or by similar means, of ores, minerals, 
rocks, mill tailings, mine waste and other metallurgical by-products to convert 
the same into marketable products. 
(q) "Mineral Production-sharing Agreement" means an agreement where the 
Government grants to the Contractor the exclusive right to conduct mining 
operations within a contract area and shares in the revenue pursuant to Section 
7 of this Act. The Contractor shall provide the financing, technology, 
management and personnel necessary for the implementation of this 
agreement. 
(r) "Mineral Products" means materials derived from ·ores, minerals and!or rocks· 
and prepared into a marketable state by mineral processing. 
(s) "Mining Industry Zone" means a final mining area as defined in Section 3 CD 
of this Act, endorsed by the Secretary of the Department of Environment and 
Natural Resources for declaration as such and whose metes and bounds are 
fixed and delimited by a Presidential Proclamation. 
(t) "Production Cost" means the direct mining, milling and processing costs, and 
other allowable costs which are necessary and directly related to mining 
operations. 
(u) "Small-scale mining" means mining activities which rely heavily on manual 
labor using simple implements and methods and do not use explosives or 
heavy mining equipment. 
(v) "Threshold Adjusted Net Mining Revenue" means fifty percent (50%) of the 
gross revenue. 
Page 3 of 10 


1 
CHAPfERll 
2 
SCOPE OF APPLICATION 
3 
SEC. 4. Scope. This Act shall govern and apply to new Mineral Agreements (MAs) and 
4 
Financial or Technical Assistance Agreements (FTAAs) covering large-scale metallic mineral 
5 
mining operations that are entered into upon the effectivity of this Act. This shall also cover 
6 
existing MAs and FTAAs where such agreements provide that any terms and conditions 
7 
resulting from repeal or amendment of any existing laws or regulations or from the enactment of 
8 
a law, regulation or administrative order shall be considered a part of said agreements. 
9 
The renewal and renegotiation of existing MAs and FT AAs shall also be governed by this 
10 
Act. 
11 
CHAPfERm 
12 
DECLARATION OF MINING INDUSTRY WNE 
13 
SEC. 5. Mining Industry Zones. All mining areas governed by this Act shall be declared 
14 
by the President as Mining Industry Zones (MIZs) through a Presidential Proclamation upon 
15 
endorsement by the Secretary of the Department of Environment and Natural Resources 
16 
(DENR). For this purpose, only the mining areas approved and certified by the Mines and 
17 
Geosciences Bureau (MOB) may be endorsed by the DENR Secretary to the President. 
18 
The MGB approval and certification process shall pass through consultation with the 
19 
concerned Local Government Units (LGUs) and the Indigenous Cultural Communities (ICC), if 
20 
the mining area is within an ancestral domain. This consultation process shall include an LGU 
21 
endorsement for the establishment of the mining area as MIZ. In consideration of the payment to 
22 
LGU of 40% of the total government share referred to in Section 12 of this Act, the LGU 
23 
endorsement shall include a waiver of its power to regulate the mining business operations 
24 
through issuance of business pennits and other license requirements imposed by the LGU 
25 
pursuant to the Local Government Code of 1991, as amended. 
26 
The establishment of the MIZ must conform to the following criteria: 
27 
(a) The proposed area is a "Go Zone" as identified by an appropriate government 
28 
agency or under any applicable law; 
29 
(b) The final mining area shall be endorsed by the Secretary of the Department of 
30 
Environment and Natural Resources (DENR) to the President; 
31 
(c) The final mining area must have a significant advantage to the economy and its 
32 
potential profitability can be established; and 
33 
(d) Other criteria as may be detennined by the Mining Industry Coordinating 
34 
Council (MICC) or an inter-agency Group that .may be created, tasked or. 
35 
assigned by the President. 
36 
No mining operations can be undertaken in any mining area without the LGU/ICC 
37 
endorsement and the Presidential proclamation of an MIZ. 
Page 4 of 10 


1 
SEC. 6. Relationship between the LGU and the MIZ Administration. Once an MIZ is 
2· 
established, the administration of all mining activities within the zone shall exclusively pertain to 
3 
the MIZ Administrator referred to in Section 15 of this Act. Any local issuances and/or 
4 
directions that may be issued by the host LGU, which may affect or relate to mining operations 
5 
and other incidental activities thereto, shall be consistent with and shall conform to the 
6 
provisions of this Act and to the laws, regulations, policies and decisions taken by the National 
7 
Government. 
8 
CHAPTER IV 
9 
FISCAL REGIME AND REVENUE SHARING ARRANGEMENT 
10 
SEC. 7. Fiscal Regime and Revenue Sharing Arrangementfor MAs and FTAAs. For every 
11 
final mining area, the Government Share that shall be paid by the Contractor shall be whichever 
12 
is higher of the following: 
13 
(a) Ten percent (10%) of Gross Revenue; or 
14 
(b) Fifty-five percent (55%) of Adjusted Net Mining Revenue (ANMR): 
15 
Provided, That in the event that the ANMR Margin exceeds fifty percent 
16 
(50%) due to increase in metal prices or other factors, the Government, as 
17 
owner of the mineral, shall get fifty-five percent (55%) of the Threshold 
18 
ANMR, as defined in this Act, plus sixty percent (60%) of the Excess ANMR. 
19 
The payment of Government Share shall be in lieu of all national and local taxes. 
20 
including corporate income tax, royalty for the ICCs, duties on imported specialized capital 
21 
mining equipment, fees for mayor's and/or business pennits, and other fees and charges imposed 
22 
by the host LGUs pursuant to Local Government Code of 1991, as amended. 
23 
The Contractor shall be liable to pay real property tax, value added tax, capital gains tax, 
24 
stock transaction tax, documentary stamp tax, withholding tax on passive income, donor's tax, 
25 
environmental fee, Securities and Exchange Commission (SEC) fee, water usage fee, and 
26 
administrative and judicial cost and penalty. 
27 
The list of exceptions shall be reviewed annually, or as often as may be necessary; 
28 
provided, however, that none of the exceptions indicated herein shall be delisted. 
29 
For purposes of this section, each final mining area is treated as a separate taxable entity. 
30 
If the Contractor has more than one final mining area in a contract area or is a party to more than 
31 
one mineral agreement, each final mining area shall be treated as a separate taxable entity. 
32 
SEC. 8. Social and Environmental Funds. In accordance with existing laws, rules and 
33 
regulations, the Contractor shall continue to allocate and spend funds for the following: 
34 
(a) Social development and management program (SDMP) and community 
35 
development program (CDP) for the host communities; 
36 
(b) Environmental Protection and Enhancement Program (EPEP); and 
37 
(c) Contingent Liability and Rehabilitation Fund (CLRF) which consists of the 
38 
following: 
Page 5 of 10 


1 
(i) Mine Rehabilitation Fund (MRF which further consists of the 
2 
Monitoring Tmst Fund and Rehabilitation Cash Fund); 
3 
(ii) Mine Wastes and Tailings (MWT) Fees; and 
4 
(iii) Final Mine Rehabilitation and Decommissioning Fund (FMRDF). 
5 
In addition, the Contractor shall allocate funds to cover costs for the following: 
6 
(a) Restoration! rehabilitation of areas and communities affected by disasters 
7 
arising from mining operations; and 
8 
(b) Perpetual liability insurance to cover damages in the mining area where the 
9 
Contractor previously conducted mining operations, as well as in identified 
10 
impact areas. 
11 
SEC. 9. Recoverable Pre-Operating Expenses .. Pre-operating Expenses allowed for 
12 
recovery under this Act shall be limited to actual expenses and capital expenditures relating to 
13 
the following which shall have been incurred before the commencement of commercial 
14 
operation: 
15 
(a) Cost of acquisition, maintenance and administration of the contract area; 
16 
(b) Cost of exploration, evaluation of explored areas, feasibility 
and 
17 
environmental studies, and rehabilitation of areas affected during the pre-
18 
operating period; 
19 
(c) Cost of meaningful CSR projects and activities undertaken for the affected 
20 
commlmities within the contract area; 
21 
(d) Payments to landowners, surface rights holders, claim owners and Indigenous 
22 
Peoples or Indigenous Cultural Communities, if any; 
23 
(e) Training expenses for personnel; 
24 
(f) Consultancy fees incurred for work directly related to the mining operations 
25 
and consistent with the Contractor's approved work program; 
26 
(g) Cost for the establishment and administration of field and regional offices 
27 
including administrative overheads incurred within the Philippines which are 
28 
properly allocable to the mining operations and directly related to the 
29 
performance of the Contractor's obligations; 
30 
(h) Costs of constructing and developing the mine which include machinery and 
31 
equipment and real property; and 
32 
(i) General and administrative expenses actually incurred by the Contractor to 
33 
support the exploration and the constmction and development of the mine. 
34 
The actual costs of ( c), (f) and (i) shall be allowed to bc deducted but their aggregate 
35 
amount shall not exceed five percent (5%) of the aggregate cost of (b) and (h). 
36 
Payments made to Government, both national and local, shall not be considered for 
37 
recovery. All Pre-Operating Expenses reported for recovery shall be subject to verification by 
38 
the MGB andlor PMDC or their designated representative or auditor. 
Page 6 of 10 


SEC. 10. Fiscal Regime for Co-production and Joint-venture Agreements. The share of 
2 
the Government in Co-production and Joint-venture agreements shall be negotiated by the 
3 
Government and the Contractor provided that the Government Share shall not be less than the 
4 
share for MAs and FTAAs as prescribed in Section 7 of this Act. 
5 
SEC. 11. Mining Contract. The fiscal regime and revenue sharing arrangement provided 
6 
herein and the applicable terms and conditions provided under existing laws shall be embodied in 
7 
the MAs and FTAAs that shall be prepared by the MGB. 
8 
CHAPfERV 
9 
ALLOCATION OF GOVERNMENT SHARE 
10 
SEC. 12. Allocation. The Government Share shall be allocated as follows: 
11 
(a) National Government (NG): sixty percent (60%) 
12 
(b) Local Government Units (LGUs) hosting the MIZ: forty percent (40%) 
13 
If the contract area is in an ancestral land/domain, the royalty for the ICC shall be taken 
14 
from the Government Share. Thereafter, the Net Government Share shall be allocated to the 
15 
National Government (NG) and the LGUs at the above stated ratio. 
16 
SEC. 13. Payment and Distribution of Government Share. The Government Share shall be 
17 
remitted and paid quarterly by the Contractor to the Government. 
18 
The ICC share shall be directly remitted and paid by the Contractor to the ICC within five 
19 
(5) days from the end of each quarter. 
20 
Within five (5) days from the end of each quarter, the Contractor shall pay the 
21 
Government Share, net of the ICC share, if applicable, through the Electronic Filing and 
22 
Payment System (EFPS) facility of the BIR or its accredited bank which shall credit snch 
23 
payment to the Bureau of Treasury (BTr) on the following banking day from payment. The BTr, 
24 
within five (5) banking days from receipt thereof, shall deposit the forty percent (40%) LGU 
25 
share to the account ofthe LGUs through their respective GFIs or their authorized agent bank. 
26 
The distribution of the LGU shares and the royalties allocated to the ICCs shall be based 
27 
on existing laws. The utilization ofthese shares shall be covered by Section 18 of this Act. 
28 
The Government Share shall be recorded by the BIR as follows: 
29 
(a) Fifty percent (50%) as Corporate Income Tax; and 
30 
(b) Fifty percent (50%) as RoyaItyTax. 
31 
SEC. 14. Environmental/Rehabilitation Fund. An Environmental/Rehabilitation Fund of 
32 
one-half of one percent (1/2 of 1 %) from the NG share to be treated as a Trust Fund shall be 
33 
established for government environmental mining programs. The specific activities and projects 
34 
under these programs shall be determined and approved by the MICC or by an inter-agency 
35 
Group created by the President. The utilization ofthis fund shall be covered by Section 18 of this 
36 
Act. 
37 
CHAPTER VI 
38 
ADMINISTRATION OF THE MINING INDUSTRY WNE 
Page 7 of 10 


SEC. 15. Administration of the MIZ. The Philippine Mining'Development Corporation 
2 
(PMDC) created through Presidential Memorandum dated April 9, 2003, shall be designated as 
3 
Administrator of MIZs proclaimed under this Act. It shall have the following powers and 
4 
functions: 
5 
6 
7 
8 
9 
(a) Formulate policies, mles and regulations to implement its functions under this 
Act; 
(b) Evalnate and detennine the Government Share on a monthly basis, which the 
Contractor shall remit and pay to the National Government (NG) and to the 
LGUs on a quarterly basis; 
(c) Ensure that Government Shares are computed in accordance with this Act; 
(d) Establish a One Stop Action unit, composed of all government agencies 
involved in the·operation of MIZs, whose designated representatives are 
clothed with authority to act and approve or deny any matter relative to their 
respective agencies; 
(e) Provide assistance to the Contractor in having its business registered with the 
appropriate government agencies such as the Securities and Exchange 
Commission (SEC), Social Security System (SSS), Department of Labor and 
Employment (DOLE) and Bureau ofInternal Revenue (BIR); 
(f) Provide assistance to the Contractor in applying with the concerned entities 
for the provision of utilities and other services needed in the operation of the 
business such as Supply of electricity or power, water, telecommunications, 
security in the area and waste disposal; 
(g) Issue import pennits, building permits, business pennits and other necessary 
pelmits to the Contractor; 
(h) Gather and verify data on the production and sales of the Contractor including 
the assaying of the mineral product. The data shall include tonnage or volume, 
value, market price and assay resnlts, such as composition, percentage of 
metals, grade, purity, among others; 
(i) Create and maintain a mineral revenue database system of the MIZ for 
reporting purposes and support the implementation of the Extractive Industries 
Transparency Initiative (EIT!); 
(j) Render annual reports to the President and to the MICC or inter· agency Group 
that may be created by the President; and 
(k) Perfonn such other functions and duties relevant under this Act. 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
For this 
purpose, 
a 
one-time 
allocation 
of One 
Hundred 
Million 
Pesos 
36 
(Php 1 00,000,000.00) shall be appropriated for the administrative, promotional and operational 
37 
expenses relating to the MIZs of the PMDC and all fees and charges collected by the PMDC 
38 
shall be retained by the said office to sustain its operations. 
Page 8 oflO 


1 
CHAPTER VII 
2 
INCENTIVE 
3 
SEC. 16. Capital Equipment Incentive. The Contractor shall be entitled to duty-free 
4 
importation of specialized capital mining equipment that are directly needed in the exploration, 
5 
extraction and processing of its mineral ores. 
6 
CHAPTER VIII 
7 
INSTITUTIONAL ARRANGEMENTS 
8 
SEC. 17. Mines and Geosciences Bureau. TheMGB shaH continue to exercise its functions 
9 
as mandated by existing laws unless otherwise amended by this Act. 
10 
SEC. 18. Fund Utilization and Other Reports. The LGUs, ICCs through the National 
11 
Commission on Indigenous Peoples (NCIP), the DENR and other agencies concerned allocated 
12 
with funds from the Government Share shall regularly submit reports to PMDC on completed' 
13 
projects and activities where their respective shares were utilized. They shall also be required to 
14 
submit updated lists of current mining contractors, locations of mining projects and the areas 
15 
covered or occupied by the mineral deposits, land area and population of the mining host 
16 
communities, and other relevant information. 
17 
SEC. 19. Administrative Arrangements. The mandates, powers and functions provided in 
18 
this Act shall be carried out through an agreement between and among the PMDC, MGB and 
19 
other agencies concerned in accordance with the implementing rules and regulations 
20 
promUlgated under this Act, for purposes of coordination and consistency in policy formulation 
21 
and implementation. 
22 
CHAPTER IX 
23 
TRANSITORY AND MISCELLANEOUS PROVISIONS 
24 
SEC. 20. Vested Right. Valid MAs and FT AAs existing prior to the effectivity of this Act 
25 
that do not provide that any tenns and conditions resulting from repeal or amendment of any 
26 
existing laws or regulations or from the enactment of a law, regulation or administrative order 
27 
shall be considered a part of said agreements shall continue to be governed by the terms and 
28 
conditions contained in their respective mining contracts. 
29 
SEC. 21. Implementing Rules and Regulations. A committee shall, within ninety (90) 
30 
days from the effectivity of this Act, promulgate rules and regulations to implement the intent 
31 
and provisions of this Act. The Committee shall be chaired by the DTI and composed of the 
32 
following: 
33 
(a) Department of Environment and Natural Resources; 
34 
(b) Department of Finance; 
35 
(c) National Economic and Development Authority; 
36 
(d) Department of Budget and Management; 
37 
( e) Department of Interior and Local Government; 
38 
(f) Bureau of Internal Revenue; 
Page 9 of 10 


1 
(g) Board of Investments; 
2 
(h) Bureau of Local Government Finance; 
3 
(i) National Commission on Indigenous Peoples; and 
4 
(j) Philippine Mining Development Corporation 
5 
SEC. 22. Separability Clause. If any provision of this Act is subsequently declared 
6 
unconstitutional, the validity of the remaining provisions hereof shall remain in full force and 
7 
effect. 
8 
SEC. 23. Repealing Clause. Sections 80, 81, 83, 84, 86, 87, 88, 90, 92 and 93 of 
9 
Republic Act. No. 7942 are hereby repealed or amended to the extent that they relate to the 
10 
Scope of this Act. 
11 
Any laws, rules and regulations, decrees and executive orders inconsistent with the 
12 
provisions of this Act are hereby repealed and modified accordingly. 
13 
SEC. 24. Effectivity Clause. The Act shall take effect after fifteen (15) days following its 
14 
publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
15 
Approved, 
Page 10 of 10