Republic of the Philippines J. ®*"
HOUSE OF REPRESENTATIVES /¢ Ke
Quezon City, Philippines Ss RECEIVED,
ie 1S AUG ‘
SIXTEENTH CONGRESS |}
First Regular Session

248

HOUSE BILL NO.

INTRODUCED BY HON. MARCELINO “MARCY” R. TEODORO

EXPLANATORY NOTE

‘The country’s natural resources form a great part of the nation's wealth.
Consequently, all activities which have the propensity to impair the quality of our natural
resources should be subjected to scrutiny before being allowed to continue.

One of the industries which have massive societal and environmental impacts is
the mining industry. It is essentially an extractive industry which results in the depletion
of nonrenewable resources.

However, despite the naturally polluting tendency of the mining industry, the
Philippine government's legislation and policies are largely pro-mining beginning with
the passage of the Philippine Mining Act or Republic Act No. 7942 in 1995. It sought to
liberalize the mining industry to foreign investment in order to meet the demands of
globalization. The law was eventually declared unconstitutional by the Supreme Court in
the leading case of La Bugal B'laan Tribal Association y. Ramos, a decision that was
overturned less than a year later. The history of that case mirrors the proclivity of the
government to act against its better judgment once the so-called profits of mining are
brought into the picture. Indeed, the law has continued to serve as a platform for every
administration's determined pursuit of mining as its most lucrative attraction for foreign
investors, especially the previous administration. In executive issuances E.O. 270 and
270-A, the previous administration outlined a national policy agenda for the revitalization
of the mining industry as a pillar of growth. It declared that the vast mineral resources of
‘our country should be utilized for economic development and poverty alleviation,
especially in the rural areas. It further fast-tracked the procedures for processing mining
applications and diluted the authority of the local governments over mining issues.

Considering the history of serious mining accidents and the mining corporations’
poor record in complying with our inadequate mining laws, the government's deference
to the mining industry should be better examined. The baseless messianic view that the
mining industry will attract foreign investment and save the country's faltering economy
should be pitted against the numerous controversies over the massive social, economic
and environmental impacts of the mining industry. In particular, the easy access of
mining companies into indigenous peoples’ lands and ancestral domains and the
controversy over mining in watersheds and other protected areas must be studied
thoroughly.

Furthermore, the devastating effects of mining on the health of the environment
and communities on the long-term and at a large scale are both well-documented and
unprecedented. Mining is an intrinsically dirty, wasteful and destructive industry — it
threatens 40% of the world’s undeveloped forests, causes the emission of 142 million tons
of acid-rain-causing sulphur dioxide each year, and consumes from seven to ten percent
(7-10%) of the world's energy. The creation of one gold ring generates three (3) tons of


waste, mostly left behind in indigenous people's domains where half of the world’s gold is
mined.

In the Philippines, the Marcopper disaster in Marinduque is one of the most
notorious examples dramatizing the Philippines’ own struggle with the hazards of mining.
More than three million tons of toxic sludge were released into the Boac River in 1996
when a drainage tunnel burst, rendering the river biologically dead. This after two
decades of environmental havoc has already been brought about by Placer Dome, the
Canadian mining firm responsible for the Marcopper mines, which caused the dumping,
via surface disposal, of more than 200 million tons of mine tailings directly into the
shallow waters of Calancan Bay, covering corals and sea grasses and the bottom of the
bay with 80 square kilometers of tailings.

Yet, despite these statistics and experiences, our policy-makers have championed
mining as the virtual savior of our economy and made it a “pet project” of sorts, laboring
under the illusion that it can still bring high revenues for the government. The reality,
however, is that the mining industry is currently one of the weakest sectors in the global
market. The big transnational mining companies have cut their workforces by the
thousands and mining projects have been shelved with the global financial crisis which
Karsten Fuelster, a mining division business development official for the International
Finance Corp. have said is leading to “substantial short-term demand destruction.” He
adds that prices for metals apart from gold are expected to fall and projects will get
delayed and exploration curtailed, while “funding difficulties will get worse” before they
get better and that fund-raising will become “nearly impossible for non-producing
companies” and that “many will not survive.”

Even historically speaking, mining has never been shown to drive national
economic development and is not expected to do so now. especially vis-a-vis the social,
cultural, environmental, health, and even the economic costs it entails. In the Philippines,
mineral-rich provinces continue to have higher poverty incidences despite the operations
of mining companies. Instead, mining has exacerbated conflicts, resulted in the
displacement of indigenous peoples and other rural communities, heightened the numbers
of extra-judicial killings and human rights violations, and caused and exacerbated the
pollution and depletion of natural resources which for generations have sustained
livelihoods and defined the people's way of life. To pour resources into an industry which
contributes only 1.2% of the country's GDP, instead of, say, into the agricultural sector
which accounts for 35.7% of the country's labor force and economically contributes more
to the country's GDP at 18%' simply defies good common sense.

The promotion of mining, therefore, in this time of crisis will translate not only to
bad investment but also to the waste of what little resources we have remaining, these
resources referring to both money in the bank and to those that are most essential such as
water and food. There is an obvious and urgent need to shift our present framework on
mining. We need to rethink our current priorities and recognize that it is not only
impossible but also unwise to separate mining from the discussion of resource use, water,
food security, environment, human rights, indigenous peoples and economics.

If there is truly a need for mining and if we are to engage in the mining industry
as a nation, then there are certain safeguards that we need to establish to be able to meet
the needs of our people now and in the future. There must be a shift of land use priorities
towards sustainable development and food security. The benefits of mining for the
Filipino people should clearly be established before even considering exposing our land
and our people to the risks and hazards that are entailed.

Against this backdrop, the exploration of our mineral wealth must be understood
within the context of environmental protection and sustainable development. The policies

1 Based on figures for the year 2008


of the State should be aimed at preventing disasters rather than mere remedial in nature.
Since the effects of the mining industry are irreversible and the remedies or rehabilitation
of the environment after disasters have occurred would be merely an exercise in futility,
it would be better to formulate policies that will abate the occurrence of such deleterious
events.

In this regard, the policies, principles and provisions contained in the 1995
Mining Act sorely lack what is needed to effectively respond to the needs of the Filipino
people and to survive the current economic and environmental crisis that we together
face. This bill is therefore proposed to take the place of the current mining law and,
among others:

~ guarantee that the exploration, development and utilization of mineral
resources are primarily for the benefit of the Filipino people;

- prioritize more viable and more sustainable livelihood choices for
communities, giving utmost importance to food security and livable
conditions for the people;

- ensure that the gains from the mining industry would be maximized while
preventing or mitigating its adverse effects of the same;

- recognize that the issue of environment is local and prioritize local
participation in decisions surrounding mining; and

— protect human rights of communities and individuals and impose harsh
penalties for the violations thereof.

In view of the foregoing, passage of this bill is earnestly sought.

MARCELINO “MARCY” R. TEODORO
Representative,
1" District, City of Marikina


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

SIXTEENTH CONGRESS
First Regular Session

2486

HOUSE BILL NO.

INTRODUCED BY HON. MARCELINO “MARCY” R. TEODORO

AN ACT
TO REGULATE THE RATIONAL EXPLORATION, DEVELOPMENT AND
UTILIZATION 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 House of Representatives of the Philippines in Congress
assembled:
CHAPTER I. DECLARATION OF POLICIES

SECTION 1. Short Title. - This Act shall be known as the “Philippine Mineral
Resources Act of 2013.”

SEC. 2. Declaration of Policy. It is hereby declared the policy of the State to:

a) Maintain peace and order, protect life, liberty and property and promote the
general welfare;

b) Protect and advance the right of the people to a balanced and healthful ecology in
accord with the rhythm and harmony of nature;

c) Value the dignity of every human person and guarantee full respect for human
rights;

d) Promote social justice in all phases of national development;

e) Recognize and promote the rights of indigenous cultural communities within the

framework of national unity and development;

f) Protect and promote the right to health of the people and instill health
consciousness among them;

Pursue an independent foreign policy. In its relations with other states, the
paramount consideration shall be national sovereignty, territorial integrity,
national interest, and the right to self-determination;

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hy

Develop a self-reliant and independent national economy effectively controlled by
Filipinos;

i) Ensure the autonomy of local governments;


j) Give highest priority to the enactment of measures that protect and enhance the
right of all people to human dignity, reduce social, economic, and political
inequalities, and remove cultural inequities by equitably diffusing wealth and
political power for the common good;

k) Encourage non-govemnmental, community-based, or sectoral organizations that
promote the welfare of the nation;

1) Adopt and accept the generally accepted principles as embodied in the
Intemational Covenant on Civil and Political Rights, International Covenant on
Economic, Social, Cultural Rights, UN Declaration on the Rights of Indigenous
Peoples, UN Convention on Biodiversity and other applicable international
instruments.

SEC. 3. To this end, the State shall also endeavor to achieve an ecologically sound,
economically viable, gender fair, equitable system of land and resource management that
upholds the human rights of indigenous peoples and local communities towards
sustainable development.

SEC. 4. The exploration, development and utilization of natural resources must comply
with the principles of intergenerational responsibility.

SEC. 5. The judicious stewardship of our mineral resources requires that:

a)

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;

b)

In land and water use, the production of sufficient food free from pollution
towards food security shall always be the priority;

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The State and its members shall develop its human resources and encourage the
evolution of its own appropriate technologies;

d) The community shall actively participate in the stewardship of mineral resources.
Community-based initiatives shall be encouraged and supported;

é

Mining operations shall not in any way create or exacerbate conflicts; and

f) The integrity of the environment is not compromised.

CHAPTER II. SCOPE AND GENERAL PRINCIPLES.

SEC. 6. Scope. - This Act shall govern the ownership, management and governance of
ore minerals onshore, as well as quarry resources, sand and gravel, guano, and
gemstones, and the conservation, exploration, development, utilization, processing and
transportation thereof. The ownership, management and governance of petroleum and
coal shall be governed by special laws. Offshore mining shall also be governed by special
laws.

SEC. 7. Ore minerals form part of the country’s irreplaceable and non-renewable natural
wealth and capital. The conservation of our mineral wealth is a paramount public interest
and mineral resources shall be utilized only in a rational manner. The economic benefits
derived from mining shall be equitably distributed by, among others, prioritizing
development for local communities and all other stakeholders directly affected by mining
operations.



SEC. 8. The management of mineral resources shall be a shared concem and
responsibility among the national government, corporations, all levels of local
government, and the communities affected by the exploration, development, and
utilization of mineral resources.

SEC. 9. The extraction of mineral resources shall only be allowed if the ecological and
social benefits and costs of mining 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 shall at all times be prevented and/or mitigated through the
allocation of sufficient funds for this purpose.

SEC. 10. The State shall accord support to communities dependent on small-scale mining
whose operations shall strictly adhere to the provisions of this law.

SEC. 11. Subject to their right to self-determination, indigenous cultural
‘communities/indigenous peoples (ICCs/IPs) own and have the responsibility to manage
the mineral resources in their respective ancestral domains, free from external
manipulation, interference, force, threat, intimidation, coercion and other analogous acts.
The State shall support indigenous cultural communities in developing capacities to
effectively exercise their right and responsibility.

‘SEC. 12. Mining shall be limited in scale in accordance with this Act.

SEC. 13. Mineral resources development, utilization and processing shall be reserved for
Filipino citizens and for Filipino corporations. Exploration shall be undertaken directly
by the State for the benefit of the nation.

SEC. 14, Remaining and recycling of mineral resources shall be prioritized over the
opening of new mines to maximize and recover the remaining mineral resources from
rejects or wastes of previous mines and mining operations.

SEC. 15. The State shall prioritize the rehabilitation of the abandoned mines in the
country.

SEC. 16. The State shall prioritize the development of mineral resources needed for
national development and the creation of domestic processing capacity for industrial
metals and other labor-intensive downstream industries. Mine planning shall be
conducted to meet this principle. In this regard, the State shall formulate a Minerals
Utilization Framework that will support national development based on the principles of
sustainable development. This framework will define the 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 IIL. DEFINITION OF TERMS

SEC. 17. Definition of 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 rehabilitation or
completing such rehabilitation despite the legal obligation to do the same.

b) Acid mine drainage — the dissolution, mobilization and transportation of toxic
metals from rocks resulting from the chemical reaction of acid-generating
minerals in rock and waste materials having high permeability to both air and


d)

e)

8)

h)

5)

LS)

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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.

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 possess 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, worship areas, 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 had access to for their subsistence and
traditional activities, particularly the home ranges of ICCs/IPs who are still
nomadic and/or shifting cultivators.

Ancestral lands ~ lands occupied, possessed and utilized by individuals, families
and clans who are members of the ICCs/IPs since time immemorial, 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 projects and other voluntary dealings entered into by
the government and private individuals/corporations including, but not limited to,
residential lots, rice terraces or paddles, private forests, swidden farms and tree
lots.

Beneficiation — process wherein a large fraction of the waste mineral is removed
from the ore;

Buffer Zones — identified areas outside the boundaries of and immediately
adjacent to designated protected areas that need special development control in
order to avoid or minimize harm to the protected area.

Bureau — the Mines and Geosciences Bureau under the Department of Science
and Technology.

Carrying Capacity — the capacity of natural and human environments to
accommodate and absorb change without experiencing conditions of instability
and attendant degradation.

Certificate of Ancestral Domains Title (CADT) —a title formally recognizing the
rights of possession and ownership of ICCs/IPs over their ancestral domains
identified and delineated in accordance with law.

Certificate of Ancestral Lands Title (CALT) ~ a title formally recognizing the
rights of ICCs/IPs over their ancestral lands.

Closure of mines — permanent cessation of operations at a mine or a mine
processing site after completion of the decommissioning process.

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 of such
decision, in a language and process understandable to the community or group.

m) Consent ~ the voluntary assent of the landowner or those who have been in open,
continuous, exclusive and notorious possession of the land for more than ten (10)
years in good faith, or thirty (30) years in bad faith, free from any external
manipulation, interference and coercion, 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 said landowner or occupant.

n) Contract area — the area delineated as specifically provided by a mineral
agreement for the development or utilization of mineral resources found therein.

0) Critical watershed — 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 (or
cultures), or human interaction with the environment especially when it has
become vulnerable under the impact of irreversible change.

p) Critical habitats — places or environments 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.

1) 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 and adverse environmental
impacts remaining after cessation of mineral production. It includes after-care or
maintenance that may be needed.

) Ecological profile or eco-profile — 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 mining operations.

u) Exploration — the 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 scismic, gravity, magnetic,
electromagnetic, radar, induced polarization, radio-wave and electrogeochemical.

y) Extraction — ore-removal activities that take place at the mine site itself.

w) Free, prior and informed consent — the consensus of all members 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 the activity in a language and process
understandable and acceptable to the community.

x) Indigenous peoples/Indigenous cultural communities (IPs/ICCs) ~ refer to a group
of people or homogeneous societies identified by self-ascription and ascription by
others, who have continuously lived as an 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.

y) Indigenous political structure ~ refer 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.

2) 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.

aa) Key biodiversity areas — 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.

bb) Large-scale mining - mining in areas 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.

cc) Mineral Agreement
State, and a private Fili
specific contract area.

contract entered into by the government, in behalf of the
ino person, granting such person/s the privilege to mine a

dd) Mineral resource- any concentration of minerals/rocks with potential economic
value.

ee) Mineral processing — the milling, beneficiation or upgrading of ores or minerals
and rocks or by similar means to convert the same into marketable products.

£8) Minerals ~ all naturally occurring inorganic substance in solid, gas, liquid, or any
intermediate state excluding energy materials such as coal, petroluem, natural gas,
radioactive materials, and geothermal energy.


gg) Mine development ~ preparing the mine site for production by shaft sinking or pit
excavation building of access roads, and constructing of surface facilities.

hh) Mine
and mi

stes and tailings — rock materials from surface or underground mining
ing operations with no economic value to the generator of the same.

ii) Mining activity — any or all of the following activities: exploration, extraction,
utilization, processing, transportation and other activities conducted for the same.

jj) Mining area ~ a portion of the contract area which has been identified by the
contractor wherein actual mining operations are conducted.

kk) Mining operations — either all or any of the mining activities involving
exploration, feasibility, development, utilization, and processing.

Il) National Park —an area of 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.

mm)Native title ~ pre-conquest rights to lands and domains which, as far back as
memory reaches, have been held under a claim of private ownership by ICCs/IPs,
have never been public lands and are thus indisputably presumed to have been
held that way since before the Spanish Conquest.

nn) 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.

00) Natural Parks ~ is a relatively large area not materially altered by human activity
where extractive resources uses are not allowed and maintained to protect
outstanding natural and scenic areas of national or international significance for
scientific, educational and recreational use.

pp) 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; open-cut mining.

qq) Ore — a material that contains minerals in such quantities that it can be mined and
worked commercially to extract the mineral. The mineral is usually contained in
chemical combination with some other element in addition to various impurities.

1) 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 byproducts and gases emitted from any facility utilized in
mining operations for their disposal.

ss) Private land — any land belonging to any private person which includes alienable
and disposable land being claimed by a holder, claimant, or 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.


tt) Processing — includes all treatment an ore receives after its extraction and
beneficiation, which involves changes in the chemical nature of the mine
minerals.

uu) Progressive rehabilitation ~ rehabilitation which involves the staged treatment of
disturbed areas during exploration, construction/development and mining
operations.

wv) 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.

ww)Protected landscapes/seascapes — areas of national significance which are
characterized by the harmonious interaction of man and land while providing
opportunities for public enjoyment through recreation and tourism within the
normal lifestyle and economic activity of these areas.

xx) Quarry resources — any common rock or other mineral substances as the Director
of 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 grass, 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.

yy) Quarrying — process of extracting, removing and disposing quarry resources
found on or underneath the surface of private or public land.

zz) Regional Director — the regional director of any mines regional office.
aaa)Regional Office — any of the mines regional offices.

bbb)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 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.

ccc)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.

ddd)Remediation — removal of pollution or contaminants from environmental media
for the general protection.

eee)Remining — maximizing and recovering the remaining minerals from the rejects
or wastes of previous mines and mining operations.


fff) 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 productiv
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.

ggg)Small-scale mining — mining activities that rely heavily on manual labor using
simple implements and methods and do not use explosives or 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.

hhh)Small-scale mining permit ~ permit issued for small-scale mining.

iii) Strategic minerals — minerals needed for national development.

ings Disposal System or Tailings Placement ~ the method wherein the waste
from mining operations are dumped, placed or disposed.

ii)

kkk)Traditional small-scale mining ~ small-scale mining using traditional means and
without the use of chemical or mechanized extraction and separation means,
methods, implements, and/or equipment.

Il!) Watershed continuum — shall refer to an area consisting of the watershed and its
divide including its connection from the headwaters to the reef or a land area
drained by a stream or a fixed body of water and with tributaries having a
common outlet for surface runoff. It is the system by which the mining-affected
‘communities shall be determined following the drainage of a stream or fixed body
of water with tributaries having a common outlet for surface runoff.

mmm)Wildlife — undomesticated forms and varieties of flora and fauna.

CHAPTER IV. OWNERSHIP AND GOVERNANCE

SEC. 18. Authority of the Bureau. ~ The Mines and Geosciences Bureau shall be a
scientific research institution under the Department of Science and Technology (DOST),
primarily conducting and developing research of mineral resources and mining
technologies and training of local communities, local government units and indigenous
peoples. It shall also regulate the operations of persons involved in mining activities. It
shall also work with the Multi-Sectoral Mineral Council in the monitoring of mining
activities.

SEC. 19. Regional Offices. — The Bureau shall have as many regional offices in the
country as may be established by the Secretary, upon the recommendation of the
Director.

SEC. 20. Bureau as repository of information. — The Bureau shall be the central
repository of information regarding mineral lands, resources, permits, studies and other
information relevant to the operation of a mine, including the necessary requirements
which a contractor is obliged to submit. All other governmental offices and other bodies
created under this Act shall copy furnish the Bureau of other information related to
mining.

SEC. 21. Recording System. ~ There shall be established a national and regional filing
and recording system. A mineral resource database system shall be set up in the Bureau
which shall include, among others, a mineral rights management system.


SEC. 22. Publication. — The Bureau shall publish at least annually a mineral gazette of
nationwide circulation containing among others, a current list of mineral rights, their
location in the map, mining rules and regulations, other official acts affecting mining, and
other information relevant to mineral resources development. A system of publication
fund shall be included in the regular budget of the Bureau.

SEC. 23. Bureau to Conduct Exploration Activities. — Exploration of mineral resources
shall be exclusively and directly undertaken by the State through the Bureau. In no case
shall this function be delegated or contracted out to private corporations or persons.

SEC. 24. Non-invasive Exploration. ~ Exploration activities shall only be non-invasive
such as, but not limited to seismic, gravity, magnetic, electromagnetic, radar, induced
polarization, radio-wave and electrogeochemical.

SEC. 25. Consent. — The Bureau shall not enter into any private lands for the purposes of
exploration activities without the written consent of the landowner, possessor and/or
occupant, or the FPIC of the ICC/IP and payment of just compensation for the use of
property. Neither shall the Bureau enter into any part of the ancestral domains/lands of
ICCs/Ps without their free and prior informed consent. Further, the Bureau shall not
enter into any distributed land under the Comprehensive Agrarian Reform Program
within the 10-year prohibited period of the said program.

SEC. 26. Ownership of ICCs/IPs. — Mineral resources within the ancestral
domains/ancestral lands are the collective private property of the ICCs/IPs. The
management of such mineral resources shall build on indigenous knowledge systems and
practices.

SEC. 27. Free, Prior and Informed Consent. ~ No mining activity shall be conducted
within the ancestral domains/lands of ICCs/IPs without their free, prior and informed
consent (FPIC), in addition to the conditions set for under the succeeding sections.

SEC. 28. When an Ancestral Domain is not Formally Recognized. ~ When an ancestral
domain is not covered by a Certificate of Ancestral Domain Title/Certificate of Ancestral
Land Title (CADT/CALT), or is covered by a different title issued in favor of members.
‘of the ICCs/IPs, the mineral resources shall nevertheless be managed by the ICCs/IPs
‘concerned when it can be presumed that the area is part of ancestral domain. An area is
presumed to be part of an ancestral domain by virtue of historic rights and self-
delineation.

SEC. 29. When ICCs/IPs displaced from ancestral domain, and when ancestral
domain is already covered by other titles emanating from the State other than
CADT/CALT. ~ Native title over ancestral domain subsists notwithstanding the fact that
the ICCs/IPs who hold such native title have been displaced therefrom or that such
ancestral domains have been occupied by other persons or corporations under another
claim of title emanating from the State. In such cases, ICCs/IPs shall continue to own
such mineral resources.

SEC. 30. Questions on the validity of FPIC. — In instances that there are questions on
the legality or validity of the issued free prior and informed consent, mining operations
shall not be allowed to be conducted in the ancestral domains or lands of the ICCs/IPs
without the final resolution of such question on the legality or validity of the FPIC.

SEC. 31. Ownership of the State. — The mineral resources found outside ancestral
domains/lands shall be owned by the State. The State shall ensure that the management of
mineral resources shall be primarily for the benefit of the local communities in whose
territory the same shall be found. Any minerals extracted shall be solely used for local
industries consistent with the Minerals Utilization Framework. The State may directly


undertake development, utilization and processing of mineral resources or it may enter
into mineral agreements with eligible parties pursuant to the provisions of this Act.

SEC. 32. Inventory of Mineral Resources. — The Bureau shall identify and provide an
inventory of the available mineral resources, including the mine tailings within the
country. It shall submit to the DOST a report which shall contain the following
information:

a) the classification of minerals;
b) the quality and grade of the ore;
c) the potential mine lif
d) the geological description of the area;

e) the economic viability of mine tailings;

f) whether the area is a key biodiversity area or if'it is a critical habitat; and
) all other relevant information necessary for potential mineral investments.

The process for exploration and/or approval for a mining permit shall not commence
without the said inventory.

SEC. 33. Identification of Strategic Minerals. — The Bureau shall conduct researches
and studies prior to any mining operations to identify strategic mineral resources. Only
mineral resources that shall be needed for local industries shall be mined.

SEC. 34, Demarcation of Mineral Areas, — The Bureau shall demarcate the boundaries
of all areas identified as containing commercial quantities of mineral resources on the
ground

SEC. 35. Baseline information on watershed continuums. — The baseline information
‘on all watersheds in the country shall be required and made available to the public, online
as much as possible. No mining permit shall be issued without this baseline information.

SEC. 36. Affected local community and local government unit. — For the purposes of
this Act, the affected local community and the affected local government unit are defined
in relation to the watershed continuum which is potentially negatively impacted by
mining operations in the demarcated area. The local communities and the local
government units therefore are those who are dependent on the watershed eco-system and
its resources.

SEC. 37. Establishment of Multi-Sectoral Mineral Council. — A Multi-Sectoral Mineral
Council shall be established for the purposes of this Act. There shall be as many Multi-
Sectoral Mineral Councils as there are watershed continuums with demarcated mineral
areas.

SEC. 38. Powers of the Council. — The Council shall have the following powers, among
others:

a) To determine whether or not mining operations shall be allowed;

b) To deliberate on proposals for mineral agreements;

¢) To approve the proposal for mineral agreements;

4d) To monitor the conduct of mining operations; and

e) To establish its internal rules of procedure which are not contradictory to this Act.

SEC. 39. Composition of the Multi-Sectoral Mineral Council. — The Multi-Sectoral
Mineral Council shall be composed of a representative of the Bureau, a representative
from the DENR, one representative from each of the affected provincial
governments/independent component cities! highly urbanized cities, representatives from
peoples’ organizations as many as the representatives of local government units, the


affected ICCs/IPs within the watersheds continuum and representatives from the
marginalized sectors that will be greatly affected by the proposed mining project. The
Bureau shall be the convenor of the Council.

No mining operations shall be allowed without the Council having been properly
convened.

SEC. 40, Areas Open to Mining. — The Council shall have the power to determine
whether or not the land where mineral resources are found shall be opened to mining.
Areas may only be opened to mining upon the unanimous vote of all the members of the
Council pursuant to the guidelines provided by this Act. In determining whether or not
such area shall be opened, the following shall be required:

a) Report of the Bureau on the conducted exploration;

b) Existence of downstream industries for the mineral resources;

) Potential environmental impacts;

d) Potential cultural impacts;

e) Conflict and risk assessment;

f) Potential health impacts;

2) Potential economic benefits of the development and utilization of the minerals;
h) Carrying capacity and the ecological profile of the area;

i) Existing and altemnative land uses of the area;

j) Local government land use plan.

No mining application shall be allowed unless an environmental economic audit or
resource valuation of the proposed mining area have been conducted or prepared
applying acceptable valuation standards. This audit or resource valuation shall be
conducted in coordination with multisectoral group of experts and community
stakeholders. It shall include determination of the expected economic returns and the
potential negative impacts from mining on the enjoyment and exercise of human rights,
cultural rights, and on peace and security. A detailed study must mention the flora, fauna
and environment present in the mining claim and the impact of mining operations on the
environment, the possible environmental degradation and the attendant loss of
subsistence resources cause. There must be mention of existence of sacred areas or areas
otherwise of cultural significance and address the impacts of resource exploitation on
indigenous peoples.

This information shall be accessible to the public at all times.
Provided however, That in no case shall the Council open the following areas to mining:

a) Head waters of watershed areas;

b) Areas with potential for acid mine drainage;

ical watersheds;

d) Critical habitats;

¢) Climate disaster-prone areas;

f) Geohazard areas;

g) Small island ecosystems;

h) Cultural sites, which may include, but not limited to, sacred sites and burial
grounds;

i) Traditional swidden farms and hunting grounds;

j) Lands covered by the Comprehensive Agrarian Reform Law or Republic Act No.
6657, as amended;

k) Prime agricultural lands, irrigable and irrigated lands as defined by Republic Act
‘No. 9700;

1) Cultural property enumerated under the National Cultural Heritage Act of 2009 or
Republic Act No. 10066;



m) Key biodiversity areas;

n) High conflict areas;

0) The Province of Palawan pursuant to Republic Act No. 7611 and other areas
covered by local ordinances;

p) In military and other government reservations, except upon prior written
clearance by the government agency concemed;

q) Near or under public or private buildings, cemeteries, archeological 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 or private entity
concerned;

1) Inareas expressly prohibited by law or ordinances;

s) 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

t) Old growth, natural or primary forests, watershed forest reserves, wilderness area,
mangrove forests, mossy forests, national parks, protection forests,
provincial/municipal forests, parks, greenbelts, game refuge and bird sanctuaries
and their respective buffer zones as defined by law, in areas covered by the
National Integrated Protected Area System (NIPAS) under Republic Act No.
7586 and those expressly prohibited by other laws.

The determination whether or not the same are absolutely closed to mining shall not only
be limited to the existence of a law or ordinance declaring it as protected areas, but also
to the actual use of the said area.

SEC. 41. Manner of Voting by the Council for Opening an Area to Mining. ~ Sections
26 and 27 of the Local Government Code on consultation and consent shall be strictly
adhered to. Local government units at all levels shall conduct mandatory public hearin
with the affected local communities, to be carried out within their respective territories
and presenting those enumerated under Section 40.

After the inventory of the existing minerals, the formulation of a mine plan, and the
existence of the baseline information of the particular watershed area, the Bureau shall
convene the Council.

The Council shall thereafter respectively convene their constituents to determine whether
or not their respective territories shall be opened for mining.

Local government units, ICCs/IPs, NGOs and peoples organizations shall ensure that the
Bureau shall comprehensively explain the goals and objectives of the project or program,
its negative and positive impact upon the people and the community in terms of
environmental or ecological balance, and the measures that will be undertaken to prevent
or minimize the adverse effects thereof. Thereafter, the approval of the respective
sanggunians of the affected local government units shall be required in accordance to the
sentiment of the people of the local government unit as a result of the consultations
conducted.

Provided, That the affected local government unit representatives shall meet and shall
relay the decision of their respective constituents to the _ provincial
government/independent component cities/highly urbanized cities. The
provincial/component city/highly urbanized city government representative shall sit in
the Council and shall carry the result of the vote of all the affected local government units
within the province resulting from the process provided in the preceding paragraph of this
Section. There must be a unanimous vote among the local government units for the
purpose of opening a particular area for mining, Failure to reach a unanimous vote for


‘opening shall mean that the area is closed to mining. The proceedings shall at all times be
recorded.

Provided moreover, That in case there are affected indigenous cultural
communities/indigenous peoples within the watershed continuum, they shall also bring
the community's vote to the Council after undergoing their own processes in accordance
with their respective indigenous political structure, 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 the activity, in a language
and process understandable and acceptable to them.

Provided finally, That any member of the community may file a protest with the Council
during this period of consultations and deliberations for the Council's consideration.

SEC. 42. Violation of Section 51. — Local government officials who are administratively
found to violate the preceding section and Section 51 of this Act vis-a-vis the pertinent
sections of the Local Government Code shall be removed from office and perpetually
disqualified from holding any elective or appointive position in government, its divisions,
subsidiaries and any government owned and controlled corporations.

SEC. 43. Pool of Consultants. ~ There shall be a pool of independent consultants that
may assist the local government units, local communities or ICCs/IPs with regard to the
technical aspects of mining.

SEC. 44. Publication, Posting and Radio Announcement Requirements. ~The decision
of the Council shall be published by the Bureau in the local newspaper in the local
language, shall be announced on the local radio programs for not less than six (6) weeks
and notices shall be distributed widely in communities. The notice containing relevant
information shall likewise be posted in conspicuous places for the information of the
general public and shall be announced during the local market day.

CHAPTER V. MINERAL AGREEMENTS

SEC. 45. Modes of Mineral Agreement. — A mineral agreement may only take the
following forms as herein defined:

a) Mineral production sharing agreement — an agreement where the Government
grants to the contractor the exclusive right to conduct mining operations within a
contract area and shares in the gross output. The contractor shall provide the
financing, technology, management and personnel necessary for the
implementation of this agreement.

b) Co-production agreement ~ an agreement between the Government and the
contractor wherein the Government shall provide inputs to the mining operations
other than the mineral resource.

©) Joint venture agreement — 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.

In no case shall Financial or Technical Assistance Agreements, or any other similar
agreements, contracts, and/or executive issuances granting license or permission to
explore, develop and/or utilize mineral resources be awarded to foreign persons.


SEC. 46. Eligibility. — Only Filipino citizens or corporations sixty percent (60%) of
whose equity is owned or controlled by such citizens shall be allowed to conduct
development, utilization and processing of mineral resources within the country.

SEC. 47. Identification of Mining Projects. ~ With the unanimous vote of the Council to
open areas for mining operations, the Bureau shall prepare the necessary information
sheets on the said area for potential investments. The Bureau shall call for proposals to
develop the mining area.

SEC. 48. Pre-screening of Mining Proposals. ~ Mining proposals shall be pre-screened
by the Bureau upon the submission of interested parties of the following:

a) demonstration of financial capability;

b) proven social and environmental track record, including those of its officers and
directors;

¢) clear corporate structure and ownership:

d) proof of physical office and operations of the proponent within the Philippines;

¢) identification of potential investors;

f) mining project feasibility;

g) mining operation work plan;

h) proposed operation, mitigation and prevention methods and/or equipment;

i) capacity to process minerals;

)_ intent to develop downstream industries;

k) intent to contribute to local community development; and

1) submission of the Environmental and Social Impact Prevention and Mitigation
Plan.

‘The Council shall fix the minimum capitalization that any bidder must satisfy based on its
determination of the expected economic returns and the potential negative impacts from
mining, upon reference to an independent study proposing such minimum capitalization.

SEC. 49. Environmental and Social Impact Prevention and Mitigation Plan, — The
contractor shall submit an Environmental and Social Impact Prevention and Mitigation
Plan (ESIPMP) containing the means, methods, processes and schedule by which the
contractor shall conduct its operations and prevent or mitigate negative environmental
and social impacts. Social impact shall include possible impacts on the enjoyment and
exercise of human rights, cultural rights, and on peace and security. The ESIPMP shall
also include not only plans relative to mining operations but also to rehabilitation,
regeneration, restoration of mineral areas, slope stabilization of mined out and tailings
covered areas, aquaculture, watershed development, water conservation, relocation and
retumn of displaced population, provision of alternative livelihood and socioeconomic
development.

The ESIPMP shall also contain a Social Development Management Plan which shall
likewise contain the plans of the proponent for the development of the community
through the establishment of infrastructures and programs that shall be sustainable even
after the closure of the mine.

SEC. 50, Pre-qualification. — The Bureau shall thereafter identify the top three (3)
proposals and shall recommend the same to the Council for deliberation.

SEC. 51. Deliberation of the Proposals. — After the Bureau's transmittal of its
recommendations to the Council together with all the submitted documents for the pre-
qualification, the Council shall initiate the deliberation process of the pre-qualified
proposals.


Immediately thereafter, Sections 26 and 27 of the Local Government Code on
consultation and consent shall be strictly adhered to. Local government units at all levels
shall conduct mandatory public hearings with the affected local communities, to be
carried out within their respective territories and presenting those enumerated under
Section 48. Local government units, ICCs/IPs, NGOs and peoples organizations, shall
ensure that the mining applicant shall comprehensively explain the goals and objectives
of the project or program, its negative and positive impact upon the people and the
community in terms of social, cultural and environmental or ecological balance, and the
measures that will be undertaken to prevent or minimize the adverse effects thereof.
Thereafter, the approval of the respective sanggunians of the affected local government
units shall be required in accordance to the sentiment of the peoples of the local
‘government unit as a result of the consultations conducted.

Provided, That the affected local government unit representatives shall meet and shall
relay the decision of their respective constituents to the _ provincial
government/independent component cities/highly urbanized cities through the submission
of the minutes of meeting declaring their decision with signatures from the constituent.
‘The provincial/independent component city/highly urbanized city representative shall sit
in the Council and shall carry the result of the vote of all the affected local government
units within the province/independent component city/highly urbanized city resulting
from the process provided in the preceding paragraph of this Section.

In determining which proposal is acceptable to the people, a majority vote of the local
government units within the province/independent component city/highly urbanized city
shall be required.

The affected ICCs/IPs shall also deliberate on the proposals in accordance with their own
systems and processes 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 the activity, in a language and process
understandable and acceptable to them.

After the respective processes are complied with, the Council shall then meet and decide
which proposal, if any, is most acceptable and consistent with their own socio-economic,
environmental and cultural programs and shall notify the Bureau of the chosen proposal.

SEC. 52. Posting and Publication Requirement. — After notice, the Bureau shall notify
the proponent of the accepted proposal and cause the publication and posting of the
accepted proposal.

Provided, That any member of the community may contest the decision of the Council
within six (6) weeks upon the posting and publication of notice of the acceptance of the
proposal in the manner provided in Section 41. No mining operations shall be allowed to
be conducted pending any action questioning the legality or validity of the proposal.

SEC. 53. Issuance of the Permit. — After six (6) weeks from the date of posting and
publication, if no contest is filed, the Bureau shall issue a permit in accordance with the
decision of the Council on the winning proposal.

SEC. 54. Environmental and Social Impact Compliance Certificate. - The mining
proponent shall be issued an Environmental and Social Impact Compliance Certificate by
the Bureau with the approval of the Council.

Provided, no amendments to the conditions of the Certificate shall be allowed, unless
such proposed amendment shall work for the benefit of the communities, and in which
case, the Council and the Bureau shall be notified of any amendments to the ESIPMP and
that the former should give their consent to the same, after the proponent explaining in


detail the reason for such amendment and the possible impacts and consequences of these
amendments.

Provided further, That any violation of the ESIPMP shall cause the cancellation of the
Certificate.

SEC. 55. Maximum Areas for Mineral Agreements. ~The maximum area under mineral
agreements that a person can hold at any one time shall be determined by the Council,
Provided, That the contract area per agreement shall not exceed five hundred (500)
hectares, Provided further, That no person shall be awarded in excess of the total contract
area of seven hundred-fifly (750) hectares in any given watershed area, For the purposes
of this Act, the prohibition on the maximum area shall also include corporations that shall
have common directors or significant shareholders.

SEC. 56. Term of Mineral Agreement. ~ The term of the mineral agreement shall be
equivalent to the mine life plus an additional five (5) years for the rehabilitation of the
mining area. Provided, That in no case shall a Mineral Agreement have a term beyond
fifteen (15) years, Provided further, That the contractor shall already include
rehabilitation/remediation of the mining area within the ten-year term.

In no case shall a Mineral Agreement be extended without just cause to be determined by
the Council, Provided, That the extension shall not cause the term of the agreement to
exceed the fifteen (15) year term mentioned in the preceding section. Provided further,
That for the purposes of this Act, just cause shall mean acts or events resulting from war,
force majeure or those beyond the control of the mining proponent not attributable to the
same.

Provided finally, That in no case shall mineral agreements be renewed after the expiration
of the fifteen-year period.

SEC. 57. Prohibition on open-pit mining method. ~ Open-pit mining method for the
extraction of mineral ores shall be prohibited

SEC. 58. Failure to Initiate Mining Operations. ~ Failure to initiate mining operations
in accordance with the work program within two (2) years from the award of the mineral
agreement shall cause the cancellation of the mineral agreement. The contractor
thereafter forfeits the value of the improvements made upon the land. The contractor and
other corporations who are also run by the same directors and officer are thereafter
banned from bidding to conduct mining operations for ten (10) years after failure to
initiate its mining operations in accordance with the work program.

SEC. 59. Mandatory Consultations in Each Mining Phase. ~ Mandatory consultations
with affected communities shall be undertaken in each phase of the mining operation:
exploration, extraction, processing, and mine closure to ensure that the people shall be
informed of the proposed plans and methods that are proposed to be conducted.

SEC. 60. FPIC of ICCs/IPs on Each Stage of Operation. — The free and prior informed
consent of the ICCs/IPs shall be required at each and every stage of the mining
operations. Free and prior informed consent shall be secured in accordance with the laws,
practices and processes of the concerned ICCs/IPs. The violation of any of the conditions
imposed by the ICCs/IPs on the contractor shall cause the cancellation of the mineral
agreement. Included in this process is the explanation of the rights of ICCs/IPs of
ownership and self-determination.

SEC. 61. Consent of Private Landowners. — No person shall be allowed entry into
private lands without the written consent of the landowners, possessors or lawful
‘occupants of the land and/or the FPIC of the ICC/IP.


SEC. 62. Expropriation. — Expropriation proceedings shall be filed with the regular
courts to determine whether the taking of private property for mining purposes shall meet
a public purpose and to determine just compensation.

SEC. 63. Multi-partite Monitoring. ~ The Council shall form a multi-partite monitoring
team to monitor compliance by the contractor of the terms and conditions of the mineral
agreement. It may conduct ocular inspections of the contract area at any time of the day
and night. It shall also inspect all the books of contractors and refer the same to
independent auditors. The multi-partite monitoring team and/or the Bureau may
confiscate surety, performance and guaranty bonds posted through an order to be
promulgated by the Director. The Council, the Director or the local government
authorities may deputize, when necessary, any member or unit of the Philippine National
Police, barangay, duly registered nongovernment organization (NGO) or any qualified
person to police all mining activities.

SEC. 64. Withdrawal from the Mineral Agreement. — The contractor may withdraw
from the mineral agreement at any time for justifiable cause with one (1) month's notice
to the Bureau, the Council and/or the ICCs/IPs, and other government agencies as may be
provided by law. The Council, in cooperation with other concerned government agencies,
shall issue a clearance for withdrawal upon certifying that the contractor has complied
with all its legal obligations, including the appropriate measures for mine closure and
rehabilitation. Funds and bonds which have been put up by the contractor in accordance
with this Act shall be forfeited.

SEC. 65. Non-transferability of Mineral Agreements. — In no case shall mining rights
under this Act be transferable. The contractor shall also notify the Council and the
Bureau of any substantial change in the ownership and/or control of the corporation.
Violation of this provision shall cause the cancellation of the agreement and forfeiture of
assets and equipment of the contractor.

SEC. 66. Access to Information. — All contractors for mineral permits and agreements
shall provide information to affected indigenous peoples, local communities, and local
governments. The following information, among others, shall be required:

a) full disclosure of methods and processes of mining;
) full disclosure of environmental and social risks;

¢) full disclosure of ownership structure; and

d) full disclosure of financial sources.

All information and documents related to proposals, mineral agreements, permits and
mining operations shall not be considered confidential.

Refusal to grant access to this information shall be cause for the disqualification of
prospective proponents or cancellation of mineral agreements and permits.

The Bureau, being the repository of all relevant information under this Act is mandated to
grant access to the public of any information in its custody. Refusal or unnecessary delay
by the officers of the Bureau to give information shall be punishable by a fine of Fifty
Thousand Pesos (P50,000.00) for every instance of refusal or unnecessary delay.

Information requested by indigents or marginalized sectors shall be given to them for
free.

CHAPTER VI. SMALL-SCALE MINING

SEC. 67. Applicability of R.A. 7076. ~ Small-scale mining shall continue to be governed
by the provisions of Republic Act No. 7076 or the People's Small-Scale Mining Act of


1991, Provided, That the Provincial/City Mining Regulatory Board shall be composed of
the Governor or City Mayor, as chairperson, as the case may be, a representative from the
DENR as co-chairperson, one (1) small-scale mining representative, one (1) big-scale
mining representative, one (I) representative from a nongovernment organization who
shall come from an environmental group, one (1) representative from a people's
organization (PO) coming from the marginalized sector, and at least one (1)
representative from the indigenous communities, whenever applicable, as members. The
representatives from the private sector, nongovernment organization and indigenous
communities shall be selected by their respective organizations and/or communities, and
appointed by the PMRB or CMRB.

Provided further, That the conduct of small-scale mining shall also comply with the
prohibitions and regulations established herein for large-scale mining. Only qualified
individuals and cooperatives may apply for a small-scale mining permit.

SEC. 68. Maximum term of small-scale mining permits. — The term for small-scale
mining permits shall be three (3) years, extendable to a maximum of fifteen (15) years.

SEC. 69. Traditional small-scale mining within ancestral domains. ~ The Council shall
conduct regular monitoring activities within its jurisdiction to determine if the provisions
of relevant laws are complied with in traditional small-scale mining by ICCs/IPs within
their respective ancestral domains.

SEC. 70. FPIC in small-scale mining. ~ Small-scale mining within ancestral domains
by any person shall also require the free, prior informed consent of ICCs/IPs.

SEC. 71. Requirement for an Environmental Compliance Certificate. ~ Small-scale
mining shall likewise require an Environmental Compliance Certificate. All small-scale
mining applicants or proponents must show proof of compliance with the terms and
conditions of its Environmental Compliance Certificate (ECC) prior to the issuance of a
small scale mining permit. Failure to submit this requirement will result in the non-
issuance of the SMP.

SEC. 72. Environmental measures in small-scale mining. ~ The State shall immediately
address the environmental and health problems in small-scale mining, including the use
of hazardous chemicals, such as mercury and cyanide, in the amalgamation of gold by
small-scale miners.

SEC. 73. Prohibition on the use of 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. 74. 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. 75. 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;


¢) facilitating partnership among small-scale mining cooperatives; and
d) other incentives to attract informal small-scale miners to formalize their status.

SEC. 76. Buying stations. ~ The Bangko Sentral ng Pilipinas shall ensure that buying
stations acquire gold from small-scale traders at prevailing international gold market
price and prevailing exchange rate set by the BSP Treasury Department on a daily basis.

CHAPTER VII. QUARRY RESOURCES

SEC. 77. Quarry resources within ancestral domains. ~ Gathering of quarry resources,
sand and gravel, guano and other organic fertilizer materials, and gemstones within
ancestral domains shall likewise be subject to the FPIC of ICCs/IPs. ICCs/IPs and the
government shall be entitled to at least ten per cent (10%) of royalties depending on
whether the resources are found inside or outside ancestral domains. Permits shall be
limited to a maximum term of five (5) years, renewable for like periods but not exceeding
a total term of twenty five (25) years, and a maximum area of five (5) hectares.

SEC. 78. Quarry Permit. — Any qualified person may apply to the provineial/city mining
regulatory board for a quarry permit on privately-owned lands except ancestral domains
and/or public lands for building and construction materials such as marble, basalt,
andesite, conglomerate, tuff, adobe, granite, gabbro, serpentine, inset filling materials,
clay for ceramic tiles and building bricks, pumice, perlite and other similar materials that
are extracted by quarrying from the ground. The provincial governor shall grant the
permit after the applicant has complied with all the requirements as prescribed by the
rules and regulations.

‘The maximum area which a qualified person may hold at any one time shalll be five (5)
hectares: Provided, That in large-scale quarry operations involving cement raw materials,
marble, granite, sand and gravel and construction aggregates, a qualified person and the
‘government may enter into a mineral agreement as defined herein.

A quarry permit shall have a term of five (5) years, renewable for like periods but not to
exceed a total term of twenty-five (25) years. No quarry permit shall be issued or granted
on any area covered by a mineral agreement.

SEC. 79. Quarry Fee and Taxes. ~ A permittee shall pay a quarry fee as provided for
under the implementing rules and regulations. The permittee shall also pay the exise tax
as provided by pertinent laws.

SEC. 80. Cancellation of Quarry Permit. ~ A quarry permit may be cancelled by the
provincial governor for violations of the provisions of this Act or its implementing rules
and regulations or the terms and conditions of said permit: Provided, That before the
cancellation of such permit, the holder thereof shall be given the opportunity to be heard
in an investigation conducted for the purpose.

SEC. 81. 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 (5) hectares and
in such quantities as may be specified in the permit.

SEC. 82. 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 more than five (5) hectares 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. 83. 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. 84, 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. 85. 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. 86. 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 has 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. 87. Gemstone Gathering Permit. ~ Any qualified person 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.

CHAPTER VIII. TRANSPORT, SALE AND PROCESSING OF MINERALS

SEC. 88. Ore Transport Permit. ~ 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. 89. Track Record. — Only mining companies with demonstrated capacity and good
environmental track record in mineral processing shall be allowed to extract minerals.
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. 90. 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. 91. Mineral Processing Permit. — No person shall engage in the processing of
minerals without first securing a mineral processing permit from the Council. Mineral
processing permits shall be for a period of five (5) years, renewable for like periods but
not to exceed a total term of twenty-five (25) years.


CHAPTER IX. DEVELOPMENT OF COMMUNITIES, SCIENCE AND.
TECHNOLOGY

SEC. 92. Expenditure for Community Development. — 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 LGUs, and the like.

SEC. 93. Employment of Filipinos and training of members of the local community. —
A contractor 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. 94, Use of Indigenous Goods, Services and Technologies. — A contractor shall
give preference to the use of local goods, services and scientific and technical resources
in the mining operations, where the same are of equivalent quality and are available on
equivalent terms as their imported counterparts.

SEC. 95. Donation/Turn Over of 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
(100,000.00) shall be imposed for every day of delay.

CHAPTER X. BENEFIT SHARING, TAXES AND FEES

SEC. 96. Taxes and Fees. — The contractor shall pay all taxes and fees as required by
law, including, but not limited to:

a) contractor's income tax;

b) customs, duties and fees on imported capital equipment;
©) value-added tax on imported goods and services;

d) withholding tax on interest payments on foreign loans;
e) withholding tax on dividends to foreign stockholders;
£) documentary stamp taxes;

g) capital gains tax;

hh) excise tax on minerals;

i) local business tax;

i) real property tax;

k) community tax;

1) occupation fees;

m) registration and permit fees:

n) water usage fees.

SEC. 97. Government Share. — Aside from the taxes and fees referred to in the preceding
section, the Government shall have at least a share equivalent to ten per cent (10%) of the


gross revenues from the development and utilization of mineral resources that are owned
by it to be set aside for the general fund of the government.

SEC. 98. Indigenous Cultural Communities! Royalty. — In case of mineral operations
within ancestral domains, the contractor shall pay at least ten per cent (10%) of the gross
revenues as royalty to the ICCs/IPs. Community development programs shall not be
considered as royalty payment. The payment of the royalties shall directly be given to the
communities in a process that build on traditional and customary laws.

Provided, That the royalty established in this Act shall be a minimum royalty payment
and may still be subject to other conditions to be agreed by the parties, 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
the activity, in a language and process understandable and acceptable to them,

SEC. 99. Scientific Research and Development Fund. — A Scientific Research and
Development Fund shall be set aside to be devoted to research and development of clean
mining technologies, improvement of mining processes, mine rehabilitation, mitigating
technologies, setting up and maintenance of an independent pool of experts, and
operational expenses of the Bureau.

SEC. 100. Legal Support Services Fund. ~ A legal support fund shall be set aside for the
use of the communities and local government units for cases that they may file against
mining permittees or cases that may be filed against them by mining companies in trying
to do their responsibility of protecting the rights of the marginalized groups, the
environment and sustainable development in general.

SEC. 101. Local Government Unit Share. — Local Government Units shall be entitled to
a share of the net revenues from mining operations which shall be paid directly to the
provincial/independent component city/highly urbanized city treasurer/s for distribution
to other local government units. To determine the government share, the following
variables shall be considered:

a) Classification of local government;
b) Vulnerability;
c) Human development index.

A percentage of this amount shall be set aside by the respective local government units
for Disaster Risk Management. This fund shall likewise benefit the ICCs/IPs within the
territory of the local government unit.

Provided, That the administrative and operational expenses of the Council shall also be
taken from this share.

SEC. 102. Mine Wastes and Tailings Fees. — A semi-annual fee to be known as mine
wastes and tailings fee is hereby imposed on all operating mining companies in
accordance with the implementing rules and regulations. The mine wastes and tailings fee
shall accrue to a fund to be used as support funds for monitoring activities of the Council.
The Secretary is authorized to increase mine wastes and tailings fees, when public
interest so requires.

SEC. 103. Incentives. — Incentives that shall be given to the contractors shall only be
limited to pollution control or mitigation devices.


CHAPTER XI. SAFETY AND ENVIRONMENTAL PROTECTION
A. Safety

SEC. 104, 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
mining development. Government personnel involved in the implementation of mines
safety, health and environmental rules and regulations shall be covered under Republic
Act No. 7305 or the Magna Carta of Public Health Workers.

SEC. 105. Mine Labor. ~ 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. 106. 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. 107. Safety of 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. 108. 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

SEC. 109, Power to Issue Orders. ~ The Mines Regional Director, in consultation with
the Environmental Management Bureau, forthwith or within such time as specified in the
order, require the contractor to remedy any practice connected with mining, which is not
in accordance with safety and anti-pollution laws and regulations. In case of imminent
danger to life or property, the Director may summarily suspend the mining operation until
the danger is removed, or appropriate measures are taken by the contractor. Unreasonable
delay to remove the danger or introduce the necessary improvements by the contractor
shall be a cause for the cancellation of the mineral agreement.

SEC. 110. Report of Accidents. —In case of any incident or accident, causing or creating
the danger of loss of life or serious physical injuries, the person in charge of operations
shall immediately report the same to the regional office where the operation are situated.
Failure to report the same without justifiable reason shall be cause for the imposition of
administrative sanctions prescribed in the rules and regulation implementing this Act.

B. Environmental Protection

SEC. 111. Environmental Insurance. ~ Contractors and mineral processing permit
holders shall be obliged to execute an insurance contract as an environmental assurance
for each and every source of pollution or disaster, relative to the “worst case scenario”
costs, following accepted actuarian standards, Provided, That in no way shall this
provision be construed to remove or reduce the liability of the contractors and/or permit
holders to compensate any damage caused by their operations. Provided further, That the
insurer shall be an accredited international company in good standing.


Prior to the approval of the insurance contract by the DOST, the DOST shall seek and
consider the opinion of an independent expert as to the financial credibility of the insurer.

SEC. 112. Calamity and Human Rights Protection Fund. ~ Persons issued a mineral
agreement shall deposit Five Million Pesos (P5,000,000.00) semi-annually in an interest-
bearing account, a common fund maintained by the national government which shall be
used for, responding to, or ameliorating the effects of calamities, natural disasters and
human rights violations including militarization, displacement, and forcible evacuation in
any part of the country in relation to mining activities. Provided, That in no way shall this
provision be construed to remove or reduce the liability of the contractors and/or permit
holders to compensate any damage caused by their operations.

SEC. 113. Performance Bond. ~ The contractor shall put up a bond in an amount
equivalent to fifty per cent (50%) of the projected cost of rehabilitation as validated by
independent studies. This amount shall be deposited in an interest-bearing account. The
bond shall be forfeited in the event that the contractor shall fail or default in the
rehabilitation or remediation of the mining area as included in the work plan of the
contractor or abandons the mine at any time of its operations.

SEC. 114. Rehabilitation. — Contractors and permittees shall technically and biologically
rehabilitate the excavated, mined-out, tailings covered and disturbed areas to the
condition of environmental safety, as may be provided in the implementing rules and
i of this Act. A mine rehabilitation fund shall be created, based on the
approved work program, and shall be deposited as a trust fund in a
government depository bank and used for physical and social rehabilitation of areas and
communities affected by mining activities and for research on the social, technical and
preventive aspects of rehabilitation. Failure to fulfill the above obligation shall mean
immediate suspension or closure of mining activities of the contractor/permittee
concerned.

SEC. 115. Progressive Rehabilitation. — Contractors shall also conduct progressive
rehabilitation activities.

SEC. 116. Adoption of Precautionary Principle. — When an activity related to mining
raises threats of harm to human health or the environment, precautionary measures shall
be taken proactively even if some cause and effect relationship are not fully established
scientifically. The mining proponent and the Bureau shall also be obliged to disclose
whether or not the cause and effect have not yet been scientifically established.

SEC. 117. Adoption of Polluter Pays Principle. ~ Polluters shall pay for the damage they
cause to the environment. The amount of damages shall be determined by accredited
independent consultants, to be chosen from a list and agreed upon by both the mining
proponent and by the Council.

SEC. 118. Tailings Impoundment, - Tailings impoundments shall be built away from
critical watershed drainage areas. Furthermore. it shall be ensured that it will not
endanger critical watershed areas or low-lying valleys in the event of accidents under
abnormal conditions. Tailings impoundments and dams shall meet the international
standards for large dams.

SEC. 119. Dumping of waste. ~ Dumping of waste or tailings in any body of water shall
be prohibited. Provisions of the Clean Water Act shall be strictly implemented.

SEC. 120. Use of toxic chemicals and methods. — At all times, mining contractors shall
use chemicals or reagents which would result to the least environmental and social
destruction. The use of mercury and cyanide for the extraction of gold, silver and other


minerals shall be prohibited. The use of blow torching to separate gold from amalgam
shall likewise be prohibited.

SEC. 121. Preservation of topsoil. - The removed topsoil, or the more productive
horizons of the soil shall be preserved for other uses.

SEC. 122. Priority use for water. ~ The Natural Water Resources Board shalll investigate
any existing use of water resources in the area whether or not covered by any existing
water permit or registration. Upon determination of any existing use, the applicant shall
procure the consent of all water users and/or the free prior and informed consent of ICCs/
IPs with or without water permits within the same groundwater network or any
downstream users of water resources. In all instances, priority shall be given to use of
water for domestic, municipal, and agricultural purposes. If potential negative impacts on
other water users are identified, the water permit shall not be granted. For water resources
within the ancestral domain of indigenous peoples, no water permit shall be granted by
the National Water Resources Board without the free prior and informed consent of
ICCs/IPs.

SEC. 123. Recycling of water resources. ~ Water used in mining operations shall be
recycled. Mining contractors shall be required to provide for the methods or equipments
for the recycling or reuse of water. Released contaminated water shall be treated
accordingly to meet national standards. Released water must at least be equivalent in
quality to the baseline water quality.

SEC. 124. Water user fee. — A water user fee that reflects the value of water to 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. 125. Prohibition from using acid-generating waste rock to build 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. 126. Establishment of a prediction and monitoring system. — A prediction and
monitoring system shall be in place to identify potential acid-producing materials and
monitor their production of acid waste.

SEC. 127. Avoidance of 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. 128. 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.

SEC. 129. Suits after the termination of contracts or projects. — Recognizing that the
effects of mining may be seen or felt, actions relating to 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 XII. RESOLUTION OF CONFLICTS

SEC. 130. Panel of 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 (1) a licensed mining engineer
ora professional in a related field, and duly designated by the Secretary as recommended
by the Mines and Geosciences Bureau Director. Those designated members of the panel
shall serve as such in addition to their work in the Department without receiving any
additional compensation. As much as practicable, said members shall come from the
different bureaus of the Department in the region. The presiding officer thereof shall be
selected by the drawing of lots. His/her tenure as presiding officer shall be on a yearly
basis. The member of the panel shall perform their duties and obligations in hearing and
deciding cases until their designation is withdrawn or revoked by the Secretary. Within
thirty (30) working days, after the submission of the case by the parties for decision, the
panel shall have exclusive and original jurisdiction to hear and decide on the following:

a. Questions involving compliance with the established technical guidelines and
standards herein established, or those to be established by the implementing rules
and regulations of this Act;

b. Questions involving the compliance with technical procedures herein established,
or those to be established by the implementing rules and regulations; and

¢. Other similar instances wherein the technological and technical expertise of the
Department shall be needed.

Disputes involving real rights, contractual obligations and other causes of action that are
outside the technological and technical expertise of the Panel of Arbitrators shall be
under the jurisdiction of the regular courts or as otherwise provided by other special laws.

Provided, That disputes pending before the Bureau and the Department at the date of the
effectivity of this Act shall undergo an immediate review within sixty (60) working days
upon the passage of this Act to determine the cause of action. Those which are outside
the technical expertise of the Department or Bureau shall be refiled with the appropriate
court, without costs to the complainant or petitioner.

SEC. 131. Appeal. ~ The decision or order of the panel of arbitrators may be appealed by
the party not satisfied thereto to the Mines Adjudication Board within fifteen (15) days
from receipt thereof which must decide the case within thirty (30) days from submission
thereof for decision.

SEC. 132. Mines Adjudication Board (MAB). — The Mines Adjudication Board shall be
composed of three (3) members. The Secretary of the DOST shall be the Chairperson
with the Director of the Mines and Geosciences Bureau and the Undersecretary for
Operations of the Department as members thereof. The Board shall have the following
powers and functions:

a. To promulgate rules and regulations governing the hearing and disposition of
cases before it, as well as those pertaining to its internal functions, and such rules
and regulations as may be necessary to carry out its functions;

b. To administer oaths, summon the parties to a controversy, issue subpoenas
requiring the attendance and testimony of witnesses or the production of such
books, papers, contracts, records, statement of accounts, agreements, and other
documents as may be materials to a just determination of the matter under
investigation, and to testify in any investigation or hearing conducted in
pursuance of this Act:


c. To conduct hearings on all matters within its jurisdiction, proceed to hear and
determine the disputes in the absence of any party thereto who has been
summoned or served with notice to appear, conduct its proceedings or any part
thereof in public or private, adjourn its hearings at any time and place, refer
technical matters or accounts to an expert and to accept his/her report as evidence
after hearing of the parties upon due notice, direct parties to be joined in or
excluded from the proceedings, correct, amend, or waive any error, defect or
irregularity, whether in substance or in form, give all such directions as it may
deem necessary or expedient in the determination of the dispute before it, and
dismiss the mining dispute as part thereof, where it is trivial or where further
proceedings by the Board are not necessary or desirable:

1. To hold any person in contempt, directly or indirectly, and impose
appropriate penalties therefore; and

. To enjoin any or all acts involving or arising from any case pending before it
which, if not restrained forthwith, may cause grave or irreparable damage to
any of the parties to the case or seriously affect social and economic stability.

In any proceeding before the Board, the rules of evidence prevailing in courts of law or
equity shall not be controlling and it is the spirit and intention of this Act that shall
govern. The Board shall use every and all reasonable means to ascertain the facts in each
case speedily and objectively and without regard to technicalities of law or procedure, all
in the interest of due process and social justice. In any proceeding before the Board, the
parties may be represented by a legal counsel. The findings of fact of the Board shall be
conclusive and binding on the parties and its decision or order shall be final and executor.

A petition for review by certiorari and question of law may be filed by the aggrieved
party with the Supreme Court within thirty (30) days from the receipt of the order or
decision of the Board.

CHAPTER XIII. ACCESS TO JUSTICE

SEC. 133. Obligation to respect human rights. ~ Corporations shall respect, protect and
promote the human rights of communities affected by mining, including the right to life,
liberty and property, freedom of movement, right of public participation and the right to
self-determination of ICCs/IPs.

SEC. 134. Violations of human rights. — Extrajudicial killing, torture, involuntary
disappearance, forcible displacement of populations, and imposition of toll fees which
impede the freedom of movement within mineral areas, deprivation of food and water
sources, vote-buying and bribery for the purpose of securing the consent of endorsement
for the mining project, and other analogous acts are violations of human rights.
Violations of human right by contractors shall cause the immediate cancellation of
mineral agreements. The offending contractor shall be perpetually disqualified from
being granted a mineral agreement. All equipment and assets of the corporation or person
shall be confiscated in favor of the government.

SEC. 135. Use of paramilitary and military forces. — All mining companies are strictly
prohibited to employ paramilitary groups. Use of private and military forces shall result
in the cancellation of the mineral agreement and the filing of appropriate civil, criminal
and/or administrative charges.

SEC. 136. Strategic Legal Action Against Public Participation (SLAPP). — SLAPPs
shall be strictly prohibited. SLAPP is any legal action, whether civil, criminal or
administrative. filed to harass, vex, exert legal action or stifle legal recourses of


community members complaining against violations of this Act or enforcing the
provisions of this Act, or exercising their freedom of assembly or right of public
participation. The investigating prosecutor or court shall immediately determine within a
period of thirty (30) days from filing thereof whether a legal action is a SLAPP and
accordingly dismiss the same.

SEC. 137. Indigents’ Suit. — Indigents shall be exempt from payment of any
administrative or court fees, including docket fees for the filing of a case. Lawyers shall
be provided to pauper litigants in case they could not afford legal services.

SEC. 138. Application of the customary laws of ICCs/IPs. — The contractor shall respect
the customary laws of the ICCs/IPs and shall submit to processes of their customary laws,
Provided, That these laws are not contrary to the provisions of the Constitution.

SEC. 138. Strict liability, — 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. 140. Piercing the corporate veil. — When the separate personality of the
corporation from its shareholders is being invoked as defense in order to perpetuate
crime, fraud or other machinations, or evade liability, the separate personality of the
corporations shall be set aside. Civil, criminal and administrative actions may thus be
filed directly against the members of the Board of Directors, officer and/or individual
stakeholders.

SEC. 141. 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;

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/ies under this Act or its implementing
rules and regulations.

The court shall exempt such actions from the payment of filing fees, except fees for
actions not capable of pecuniary estimations, 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.

Within thirty (30) days upon the filing of the case, the court will determine whether or
not the complaint is malicious or baseless and shall accordingly dismiss the petition.
CHAPTER XIV. PENAL PROVISIONS
SEC. 142. Grounds for the cancellation of permits:
a. Violation of any provision of this Act;
b. Human rights violations perpetrated by the contractor or any agent of the

contractor;
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;

f. Other analogous acts.

Provided, That violations of environmental provisions shall cause the immediate
cancellation of permits, including but not limited to Sections 118, 119, 120, 121, 125, and
127, and the contractor shall be required to pay for the rehabilitation, restoration or clean
up of the impacts of such violations.

Corporations, corporate directors/officers found guilty of the above enumerations may be
subjected to perpetual ban in the mining operations.

SEC. 143. 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 not exceeding One Hundred Thousand Pesos (P100,00.00)..

SEC. 144. Ilegal 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. 145. Panning. ~ Panning shall be considered an act of mining, Any person
undertaking panning without the necessary mining permit shall upon conviction, be
convicted of illegal panning penalized under Section 27 (R.A. 7076). In addition, such
person shall be liable to pay damages made to the environment by reasons of such
panning. 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. 146. Theft of 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 mills 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 (P1,000,000.00) or both, at the
discretion of the appropriate court. In addition, he/she 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. 147. Unauthorized Dealing, Selling, and/or Buying of 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 Sentral ng Pilipinas shall be
punished as unauthorized dealing and shall be penalized in accordance with Section 144
of this Act.

SEC. 148. Vitiation of 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 (P2,000,000.00). 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 Million Pesos (P4,000,000.00). 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. 149. Violation 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 (P5,000,000.00) and shall indemnify the victims.

SEC. 150, Amendment to Section 27 of Republic Act No. 7076 or the Small-scale
Mining Act. — Violation of the provision of R.A. 7076 or of the rules and regulations
issued pursuant hereto shall be penalized with imprisonment of six (6) years and one (1)
day to twelve (12) years, and shall include the confiscation and seizure of equipment,
tools and instruments, immediate suspension or closure of the mining activities of the
permittee concerned and revocation or cancellation of permit.

SEC. 151. 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 officers and directors of
corporations that have abandoned mines.

SEC. 152. Confiscation of equipment and property. ~ The equipment and property of
contractors and permit holders violating this Act shall be forfeited in favors of the
government.

SEC. 153. Non-application of 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 the Act shall
suffer the penalty of Five Million Pesos (P5,000,000.00) and perpetual ban in the mining
industry.

SEC. 154. Reinstatement of 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.

s 155. There shall be a moratorium on all mining activities until all the systems are in
place for the proper implementation of the law.

SEC. 156. All existing mining permits, licenses and agreements are deemed cancelled.

SEC. 157. 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. 158. 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 the provisions of this Act.

CHAPTER XVL. FINAL PROVISIONS
SEC. 159. Separability Clause. — The provisions of this Act are hereby declared to be

separable and, in the event that any such provisions are declared unconstitutional, the
other provisions which are not affected thereby shall remain in full force and effect.


SEC. 160. 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 and other regulations inconsistent with this present law shall
be deemed amended or repealed if the inconsistency is irreconcilable.

SEC. 161. Funds. ~ The amount of One Hundred Billion Pesos (P100,000,000,000.00) is
hereby appropriated for the proper functioning of the Bureau, the Council, and other
bodies established under this Act.

SEC. 162. 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 public consultations.

SEC. 163. Effectivity Clause. — This Act shall take effect within fifteen (15) days
following its publication in two (2) newspapers of general circulation in the Philippines.

Approved,