TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S.B. No. 395
j 
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of V..-•it
25 JUL 10 P3 24
RilCtlVED EV:
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
REGULATING THE RATIONAL EXPLORATION, DEVELOPMENT AND 
UTILIZATION OF MINERAL RESOURCES, REPEALING FOR THIS PURPOSE 
REPUBLIC ACT NO. 7942 OR THE "PHILIPPINE MINING ACT OF 1995", AND 
APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
The Philippines holds a large reserve of mineral resources and is considered as 
among the most mineralized countries in the world. It is 3rd richest in the world for 
gold per unit area, 4th richest in copper, 5th in nickel, and 6th for chromite. These 
mineral resources have been sought to contribute to national development; however, 
in the past twenty years, the mining industry has not contributed significantly to the 
economy and even caused negative impacts to communities, including detrimental 
environmental destructions where the mines are located.
The present mining law (Republic Act 7942) has clearly failed to regulate the 
development and exploitation of our mineral resources in a way where benefits are 
maximized by Filipino communities and by the State, with mitigated impacts to other 
environmental and natural resources, industries, and the rights of Filipino 
communities. The present fiscal regime for mining does not allow us to maximize the 
benefits of our non-renewable resource.
Mining as an economic activity is not only an issue of resource use but also 
concerns water and food security, environment, human rights and indigenous people's 
rights and a rights-based approach to sustainable development.
In the past decade, the mining industry has only contributed an annual average 
of 0.7-1% to the Gross Domestic Product compared to other industries because the 
government receives only 4% excise tax share, and employs 200,000-250,000 or only 
0.6% of total employment.


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


primarily benefit the Filipino people; prioritize sustainable livelihood choices for 
communities; give 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; recognize that the issue of environment 
and sustainable development is local and thus prioritizes local participation in decisions 
surrounding mining; ensure the protection of human rights of communities and 
individuals; and impose harsh penalties for the violation of its provisions.
The passage of this bill is earnestly sought.
1
RISA HONTIVEROS 
Senator


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
)
SENATE
S.B. No. 395
. 
of t'jf S' 1' •:: >
25 JULIO P3 -24 
\
RFXfc1’ TO bY: _
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
REGULATING THE RATIONAL EXPLORATION, DEVELOPMENT AND 
UTILIZATION OF MINERAL RESOURCES, REPEALING FOR THIS PURPOSE 
REPUBLIC ACT NO. 7942 OR THE "PHILIPPINE MINING ACT OF 1995", AND 
APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. Short Title. -This Act shall be known as the "Philippine Mineral
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Resources Act."
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SEC. 2. Declaration of Policy. - It is enshrined in the Philippine Constitution
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that the State owns all the mineral, coal, natural gas and petroleum resources within
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its national territory, its terrestrial, fluvial and marine domains, including its territorial
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seas, the seabed, the subsoil, the insular shelves, and other submarine areas within
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its archipelagic baselines. The appropriate utilization, sound management of the
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country's finite mineral resources and the enjoyment of the benefits of such is
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exclusive to the Filipino people. These resources shall in no way be alienated.
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The Philippine mining industry shall be developed within the framework of
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national industrialization through the nationalization of the industry towards self-
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sufficiency. The pursuit of mining industry development is integrative to the country's
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priorities in achieving genuine agrarian reform, the modernization of its agricultural
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base, and rural development.
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The State shall take the lead in mining industry development that shall be
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pursued according to a National Industrialization Program (NIP) and Mining Plan (MP)
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that adheres to the medium- and long-term needs of the country, the advancement
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of the industry's technology with emphasis on existing indigenous knowledge.


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research and development, the right to self-determination of the indigenous and Moro
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peoples and the generally accepted principles as embodied in the International
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Covenants on Civil and Political Rights, on Economic, Social and Cultural Rights, the
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UN Declaration on the Rights of Indigenous Peoples and other international accords
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on human rights, labor rights, the rights of women and children, and the protection
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and preservation of the environment, of which the State is a party.
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Consistent with the policy of the State to protect and advance the right of the
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people to a balanced and healthful ecology in accord with the rhythm and harmony of
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nature, it shall be the objective of the State to:
Maintain peace and order, protect life, liberty and property and promote the 
general welfare;
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A.
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E.
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F.
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existing indigenous knowledge, research and development;
Protect and advance the right of the people to a balanced and healthful ecology 
in accord with the rhythm and harmony of nature;
Value the dignity of every human person and guarantees full respect for human 
rights and affirms the role of women in nation building, promotes women's 
empowerment, and pursues equal opportunities for women and men through 
equal access to, control over, and ownership of resources;
Promote social justice in all phases of national development;
Recognize and promote the rights of indigenous cultural communities within 
the framework of national unity and development and protect the right to self- 
determination of the indigenous and Moro peoples;
Promote social justice and climate justice in all phases of national development, 
which is consistent with a 1.5°C pathway towards carbon neutrality by 2050 or 
sooner;
Promote just transition of the workforce and the creation of decent work and 
quality jobs in accordance with nationally defined development priorities;


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L. Protect the integrity of all ecosystems towards increasing the ability of the
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people to adapt to the adverse impacts of climate change;
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M. Protect and promote the right to health of the people and instill health
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consciousness among them;
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N. Pursue an independent foreign policy. In its relations with other states the
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paramount consideration shall be national sovereignty, territorial integrity,
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national interest, and the right to self-determination;
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0. Develop a self-reliant and independent national economy effectively controlled
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by Filipinos;
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P. Ensure the autonomy of local governments;
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Q. Give highest priority to the enactment of measures that protect and enhance
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the right of all the people to human dignity, reduce social, economic, and
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political inequalities, and remove cultural inequities by equitably diffusing
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wealth and political power for the common good;
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R. Encourage non-governmental, community-based, or sectoral organizations that
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promote the welfare of the nation; and
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S. Adopt and accept the generally accepted principles as embodied in the
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International Covenant on Civil and Political Rights, International Covenant on
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Economic, Social, Cultural Rights, UN Declaration on the Rights of Indigenous
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Peoples, UN Convention on Biodiversity and other international accords on
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human rights, labor rights, the rights of women and children, and the protection
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and preservation of the environment, of which the State is a party.
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SEC. 3. National Industrialization Program. - The State shall formulate
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a National Industrialization Program pursuant to the principles of agricultural
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modernization, development of industrial and manufacturing industries, and rational,
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sustainable, and equitable development of the national economy. The State shall
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prioritize the development of mineral resources that are needed for national
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development and for the creation of domestic processing capacity for industrial metals,
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the integration of agricultural modernization, and downstream industries that will
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generate employment. The State shall likewise promote the development of mineral
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processing to maximize the benefits or value-added from mining. Towards this end, it
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shall encourage the establishment and development of manufacturing plants that will


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utilize locally processed mineral products as well as mining firms that will process
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mineral ores first for domestic purposes and before exporting them to other countries.
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The National Industrialization Plan to be implemented by the State shall be
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economically-viable, ecologically-sound, and in aid to the nation's efforts to attaining
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food self-sufficiency, rural development and national industrialization. The National
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Industrialization Program shall provide a comprehensive economic framework for
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genuine national development, including agricultural modernization, public
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infrastructure in energy, transportation, communication, and downstream mineral
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industries. The National Industrialization Program pursuant to the principles of climate
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justice should result in concrete changes in the mining industry, specifically with
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regard to energy consumption, resource utilization, emissions, and inclusive
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development.
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SEC. 4. Guiding Principles. — The judicious stewardship of our mineral
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resources, as well as its exploration, development and utilization shall comply with the
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following principles:
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A. The current export-orientation of mining is hereby reversed and a domestic
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needs-based development of the industry shall be pursued by the State as
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a step towards achieving genuine economic development;
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B. The mining industry shall be geared towards national industrialization and
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shall be built for the production of raw materials such as base metals, basic
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chemicals and petrochemicals needed by the basic, medium and heavy
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industries to produce as much consumer, intermediate and capital goods
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with the country's stock of finite mineral and non-mineral industrial raw
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materials and in the process provide jobs to the country's vast human
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resources. The extraction of energy transition minerals (ETMs) shall also be
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pursued in support of the country's just transition to renewable energy;
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C. The community shall actively participate in the stewardship of mineral
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resources. 
Community-based initiatives shall be encouraged and
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supported;
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D. The State shall provide the appropriate support and protection to Filipino
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corporations to further develop and increase their participation in the
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industry. All mining industry investments shall be mutually-beneficial and


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help achieve the specific target and goals of the National Industrialization 
Program. To come up with the large capital requirement for mining, the 
State must use local sources such as but not limited to the granting of 
incentives and financial aid to local private sector investors, re-channelling 
of government budget allocations for foreign debt payments and military 
expenditures, and the proceeds from the government shares of the 
Malampaya Natural Gas Project, and/or similar projects;
E. The State shall allow, in exceptional cases, foreign corporations to invest in 
the mineral industry. Based on the National Industrialization Program and 
the country's capability and capacity, the government must identify the 
mineral areas where foreigners can help and invest subject to rigorous 
screening and strict regulations as provided in this Act and related laws. 
The participation of foreign companies in the critical stages of minerals 
extraction and processing shall be in accordance with a mandatory program 
or agreement for technology transfer and equity shares that do not exceed 
40 percent of the full capital requirements: Provided, That capital 
accumulation and reinvestment within the country shall be primarily 
encouraged over profit repatriation by the foreign companies and that 
foreign mining corporations, their principals, local firms and conduits that 
have a bad track record in the Philippines are banned from investing in the 
country;
F. The development of the mining industry should primarily be geared to serve 
the needs of the country's agrarian reform program and help modernize 
Philippine agriculture. Mining shall be prohibited in prime agricultural lands;
G. Inland and water use, the production of sufficient food free from pollution 
towards food security shall always be the priority;
H. Mining shall also be prohibited in areas specified for food production, 
fisheries development, watershed and heritage areas, sacred sites of 
indigenous people, and in small island ecosystems. Mining in 
environmentally-critical areas such as small island ecosystems, primary 
forests and environmentally sensitive watersheds such as, but not limited 
to, the areas surrounding the Verde Island Passage connecting and


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surrounding the provinces of Batangas, Marinduque, Occidental Mindoro, 
Oriental Mindoro and Romblon, shall be banned. Dumping of mine wastes 
and tailings to rivers, lakes and seas are prohibited. Additionally, off-site 
effects of mining shall not have disadvantageous effects on downstream 
areas;
I. 
Mining shall also be prohibited in areas declared by local government units 
as No-Mining Zones; in prime agricultural lands, irrigable and irrigated lands 
as defined by Republic Act 9700, and, in areas wherein cultural properties 
are found, as enumerated under Republic Act 10066;
J. Long-term mining development shall be programmed by the State in 
accordance with the country's availability of resources, capability and well­
being of the people, technological capacity and people's acceptability. The 
right of Muslim Filipinos or the Moro people and indigenous peoples to self- 
determination and ancestral domain shall be recognized and their collective 
property rights are guaranteed by this Act;
K. Job security, adequate and equal wages, benefits, and safe working 
conditions for mine workers shall be ensured in state- and privately-owned 
mining corporations. Their right to organize and form their own 
associations, to collective bargaining and to strike shall be upheld. The State 
shall strictly prohibit forced and child labor in the industry. It shall likewise 
disallow gender discrimination in mining operations;
L. Small-scale mining operations shall be supported and regulated by the 
state. The state will encourage the formation of cooperatives among small- 
scale miners and provide financial and technical support to develop the 
labor-intensive and upgrade the backward technologies into a more efficient 
and less environmentally destructive mining process. Whenever small-scale 
mining activities are stopped, alternative and sustainable livelihood shall be 
provided to the small-scale miners;
M. In no instance shall the Armed Forces of the Philippines (AFP), the Philippine 
National Police (PNP) and private security and paramilitary groups be used 
to coerce or force the entry and protection of mining operations;


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N. Mining industry research and development shall focus on harnessing more 
economically-efficient and less environmentally-destructive methods. The 
advanced technologies from other countries that are proven to be 
appropriate locally shall be adopted in the industry;
O. All mining operations shall be strictly regulated to ensure the domestic 
processing of mineral ores up to the secondary and tertiary stages of 
industrial production to develop our own basic and medium industries. 
Recycling programs and substitution in the use of minerals shall be 
incorporated in the overall plan of mining development to reduce mine 
waste and pollution, and mining rehabilitation techniques. Indigenous 
technologies that are relevant and appropriate, particularly with respect to 
the domestic processing of minerals shall be promoted, harnessed, 
expanded and upgraded;
P. Ecologically-sound practices at all stages of mining shall be promoted. 
Mining technologies such as open-pit mining and submarine mine tailing 
disposal methods that are banned abroad or proven inappropriate in 
countries like the Philippines must and shall all be banned. Environmental 
standards shall be set to ensure the protection and efficient utilization of 
the country's mineral resource base. Ecological considerations in mining 
development shall be given due emphasis and attention to substantially 
eliminate destructive effects that certain mining industrial processes might 
have on the people's health and the environment. Monitoring mechanisms 
with strong participation from the local communities will be instituted;
Q. Areas affected by mining shall be rehabilitated, including abandoned mines. 
Violators shall be strictly punished and made to pay heavy compensation to 
the State and the affected communities.
R. The exploration, development and utilization of natural resources must 
comply with the principles of intergenerational responsibility;
S. Mining agreements shall not be considered as vested rights, but, are mere 
privilege that the State can grant or revoke anytime for a legitimate 
purpose.
CHAPTER II


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SCOPE AND GENERAL PRINCIPLES
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SEC. 5. Scope. - This Act shall govern the ownership, management and
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governance of both metallic and non-metallic ore minerals onshore and offshore, as
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well as quarry resources, sand and gravel, guano, and gemstones, and the
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conservation, exploration, development, utilization, processing and transportation
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thereof. The ownership, management and governance of petroleum, natural gas and
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coal shall be governed by special laws. Offshore mining shall also be governed by
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special laws.
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This Act shall cover onshore and offshore, large-scale and small-scale mining
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operations in the country, including mining projects in ancestral domains in
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accordance to the existing national and international policies on our indigenous
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peoples.
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SEC. 6. Ore minerals form part of the country's irreplaceable and non-
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renewable natural wealth and capital. The conservation of our mineral wealth is a
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paramount public interest and mineral resources shall be utilized in a rational manner
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for national and local development as specified by law and consistent with the National
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Industrialization Program and the just transition to renewable energy. The economic
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benefits derived from mining shall be equitably distributed by, among others,
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prioritizing development for local communities and all other stakeholders including
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neighboring communities directly affected by mining operations.
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SEC. 7. The State shall have primary role, responsibility and concern in the
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management, conservation, utilization, and development of the mining industry and
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shall ensure the people's participation in policy making and implementation of the
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same at all levels of government. Mining shall be a shared concern and responsibility
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of the national and local governments, corporations, and the communities affected by
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the exploration, development, and utilization of mineral resources.
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SEC. 8. The State shall implement specific programs to lend empowering
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support to small-scale operators in order to enable them to become legitimate small-
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scale mining operators. It shall likewise accord support to communities dependent on
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small-scale mining whose operations shall strictly adhere to the provisions of this law.
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SEC. 9. The State shall support indigenous cultural communities/ indigenous
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peoples (ICCs/IPs) in developing capacities to effectively exercise their rights and


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responsibility, including their priority rights in the harvesting and utilization of natural
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resources in their ancestral domain and their right to self-determination. ICCs/IPs
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have the shared responsibility with the State to manage the mineral resources in their
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respective ancestral domains. They shall be free from external interference,
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manipulation, threats, intimidation, coercion and other analogous acts.
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SEC. 10. Mineral resources development, utilization and processing shail be
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reserved for Filipino citizens and for Filipino corporations. Exploration shali be
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undertaken directly by the State for the benefit of the nation.
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SEC. 11. The State shall also give priority to the re-mining and recycling of
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mineral resources as the first option instead of opening new mines to maximize the
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remaining mineral resources from the wastes of previous mine projects subject to the
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environmental, social and economic costs, following the principles of circularity. The
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rehabilitation of abandoned mines shall also be given importance.
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SEC. 12. The State shall ensure the fullest compliance of all government and
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corporate entities in and on the closure of mines, the rehabilitation or restoration of
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the immediate environs of each mining project or activity in the country as provided
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by law. The rehabilitation of abandoned mines shall also be given importance.
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SEC. 13. The State shall support small-scale Filipino mining corporations and
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mining cooperatives to venture into large-scale mining projects through Joint-Venture
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Agreements and invest on mutually-beneficial grounds that will push forward the
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National Industrialization Program.
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SEC. 14. - Mineral resource extraction shall be allowed based on the National
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Industrialization Plan and the requirements of a just transition to renewable energy as
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provided in this Act. The sharing of profits from mining activities, including the
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anticipated environmental, cultural and social costs on the affected local communities
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of each mining project, should far outweigh ecological and social benefits and costs
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from other land uses. The anticipated cost of environmental, cultural and social
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impacts on the affected local communities, which shall at all times be prevented or
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mitigated through the allocation of sufficient funds for this purpose. In mining projects
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with foreign participation, a just return of investment scheme for the foreign entrants
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into the industry shall be prescribed by law.
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CHAPTER III


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DEFINITION OF TERMS
SEC. 15. Definition of terms. - As used in this Act:
A. Abandonment refers to the contractor's act of leaving the entire mining 
lease in a state that has not met agreed rehabilitation standards;
B. Acid mine drainage refers to the dissolution, mobilization and transportation 
of toxic metals from rocks arising from the chemical reaction of acid­
generating minerals in rock and waste materials that possess high 
permeability to air, rainfall and other water inflows when land is opened up 
for mining that initiates the chemical reaction, resulting to a perpetual 
machine of acid generation;
C. Ancestrai domain refers to all areas generally belonging to indigenous 
cultural communities/indigenous peoples (ICCs/IPs) comprising the lands, 
inland waters, coastal areas, and natural resources therein, held under a 
claim of ownership, occupied or possessed by ICCs/IPs, by themselves or 
through their ancestors, communally or individually since time immemorial, 
continuously to the present except when interrupted by war, force majeure, 
deceit, stealth or as a consequence of government projects or any other 
voluntary dealings entered into by government and private individuals or 
corporations, and which are necessary to ensure their economic, social and 
cultural welfare. It shall include ancestral lands, forest, pasture, residential, 
agricultural, and other lands individually owned whether alienable and 
disposable or otherwise; hunting grounds, burial grounds, areas of worship, 
bodies of water, mineral and other natural resources, and lands which may 
no longer be exclusively occupied by ICCs/IPs but from which they 
traditionally and historically had access to for their subsistence and 
traditional activities, particularly the home ranges of ICCs/IPs who are still 
nomadic or shifting cultivators;
D. Ancestrai iands refer to lands occupied, possessed and utilized by 
individuals, families and clans who are members of 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
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force, deceit, stealth, or as a consequence of government development 
aggression projects and other dealings entered into by government and 
private individuals/corporations including, but not limited to, residential lots, 
rice terraces or paddies, forests, swidden farms and tree lots;
E. Beneficiation refers to a process wherein a large fraction of the waste 
material is removed from the mineral ore;
F. Buffer Zones refer to identified areas that are outside the boundaries of, 
and immediately adjacent to protected areas designated by law that need 
special development control in order to avoid or minimize harm to the said 
protected areas;
G. Carrying capacity refers to the capacity of the natural and human 
environments to accommodate and absorb changes without giving rise to 
conditions of ecological instability and degradation;
H. Certificate of Ancestral Domain Title (CADT) refers to a title formally 
recognizing the rights of possession and ownership of ICCs/IPs over their 
ancestral domains identified and delineated in accordance with this law;
I. Certificate of Ancestral Lands Title (CALT) refers to a title formally 
recognizing the rights of ICCs/IPs over their ancestral lands;
J. Closure of mines refers to the permanent termination of operations at a 
mine or mine processing site after its complete decommission;
K. Consent refers to the voluntary assent of the landowner or those who have 
been in open, continuous, and exclusive 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, scope, and the positive and negative impacts of 
the activity, in a language and process understandable to the said 
landowner or occupant;
L. Contract area refers to the area delineated as specifically provided by a 
mineral agreement for the development or utilization of mineral resources 
found therein;
M. Critical watershed refers to a drainage area of a river system, lake or water 
reservoir that supports any existing and proposed hydroelectric power.
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domestic water supply, geothermal power and irrigation sources and works, 
that 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 areas for human settlements, land-uses, 
or sea-uses which are representative of cultures, or human interaction with 
the environment especially when it has become vulnerable under the impact 
of irreversible change;
N. Critical habitats refer to areas where species and/or subspecies naturally 
occur or that have naturally established its population that are crucial to the 
survival of other species and are essential for its conservation;
O. Cultural sites refer to sites that bear a unique or 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;
P. Customary laws refer to a body of written or unwritten rules, usages, 
customs and practices that are traditionally recognized, accepted and 
observed by respective ICCs/IPs and local communities;
Q. Decommissioning refers to the activity or process that commences after the 
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 any adverse 
environmental impacts remaining after cessation of mineral production. It 
includes the after-care or maintenance that may be needed;
R. Downstream industries refer to mining activities that cover minerals 
processing, refining, manufacturing of intermediate and capital goods and 
marketing of such;
S. Ecologicalprohle refers to a geographic-based instrument for planners and 
decision-makers which present an evaluation of the environmental quality 
and carrying capacity of an area and measures the specific interactions that 
will be affected by any and all mining operations;
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T. Energy transition minerals (ETMs), or simply transition minerals, are those 
which are required for the just minerals transition;
U. Exploration refers to all methods of searching or prospecting for mineral 
resources for the purpose of determining the existence, extent, quantity and 
quality thereof, which may include but are not limited to seismic, gravity, 
magnetic, electromagnetic, radar, induced polarization, radio-wave and 
electro-geochemical;
V. Extraction refers to ore-removal activities that take place at the mine site 
itself;
W. Free, prior and informed consent (EPIC) refers to 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 all the activities, in a language and process 
understandable and acceptable to the community;
X. Indigenous peopies/Indigenous cultural communities (IPs/ICCs) refer to a 
group of people or homogenous societies identified by self-ascription and 
ascription by others, who have continuously lived as organized communities 
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
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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 refers to organizational and cultural leadership 
systems, institutions, relationships, patterns and processes for decision­
making and participation as 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;
Z. Joint Venture Agreement refers to 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 shali be entitled to a share in the 
output computed at a certain percentage mutually agreed upon by and 
beneficial to both parties;
AA. Just transition refers to the transformation of the economic system as 
well as the energy system/s that support it which both must be founded on 
ecological and social wellbeing. It also includes promoting the welfare of 
workers affected by the transition to clean energy;
Just minerals transition refers to the judicious, efficient, and democratic use 
of energy transition minerals required of the shift to renewable energy;
CC. Key biodiversity areas refer to places of international importance for the 
conservation of biodiversity;
DD. Large-scale mining refers to mining in areas with more than twenty (20) 
hectares, using mechanized tools and equipment, requiring considerable 
capital and having large-scale environmental, social, cultural and economic 
impacts with regard to resource use and/or consumption;
EE. Mineral Agreement refers to a contract entered into by the government, in 
behalf of the State, and a private Filipino person, granting such person/s 
the privilege to mine a specific contract area;
FF. Mineral resource refers to any concentration of minerals/rocks with potential 
economic value;
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GG. Mineral processing refers to the milling, beneficiation or upgrading of 
ores or minerals and rocks or by similar means to convert the same into 
marketable products;
HH. Minerals refer to all naturally occurring inorganic substances in solid, 
gas, liquid, or any intermediate state excluding energy materials such as 
petroleum, natural gas, radioactive materials, and geothermal energy;
II. Mine development refers to the preparation of the mine site for production 
by shaft sinking or pit excavation, building of access roads, and constructing 
of surface facilities;
JJ. Mine wastes and tailings refer to rock materials from surface or underground 
mining and milling operations with little or no economic value to the 
generator of the same;
KK.Mining activity refers to any or all of the following activities: exploration, 
extraction, utilization, processing, transportation and other activities 
conducted for the same;
LL. Mining area refers to a portion of the contract area which has been identified 
by the contractor wherein actual mining operations shall be conducted;
MM. Mining operations refer to any and all of the mining activities involving 
the acts of exploration, feasibility, development, utilization, and processing;
NN. Nationai park refers to an area of the public domain that is a natural 
wilderness that is scenic or historic in character and has been withdrawn 
from settlement, occupancy, or any form of exploitation except in 
conformity with an approved management plan and set aside exclusively to 
conserve the area or preserve the scenery, the natural and historic objects, 
wild animals, and plants therein mainly for the purpose of biodiversity 
conservation and/or human enjoyment;
00. Native title refers to 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;
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PP. Natural forest refers to a forest composed of indigenous, native or endemic 
trees, with high biodiversity, whose structure, functions, and dynamics have 
been largely the result of natural succession processes;
QQ. Natural park refers to a relatively large area not materially altered by 
human activity where extractive resource activities are not allowed. These 
parks are maintained to protect outstanding natural and scenic areas of 
national or international significance for scientific, educational and 
recreational use;
RR. Open-pit mining refers to a process of extracting metal ores and minerals 
that lie near the surface by removing the overlying material and breaking 
and loading the ore. Also known as open- cast mining and open-cut mining;
SS. Ore refers to a materiai that contains minerals in such quantities that can 
be mined and worked commercially to extract that mineral. The mineral is 
usually contained in chemical combination with some other element in 
addition to various impurities;
TT. Pollution control and infrastructure devices refer to infrastructure, 
machinery, equipment and/or improvements used for the impounding, 
treating, or neutralizing, precipitating, filtering, conveying and cleansing 
mine industrial waste and tailings as well as reducing or eliminating 
hazardous effects of solid particles, chemicals, liquids or other harmful by­
products and gases emitted from any facility utilized in mining operations 
for their disposal;
UU. Processing refers to all the treatment an ore receives after its extraction 
and beneficiation, which involves changes in the chemical nature of the 
mined minerals;
.Progressive rehabilitation refers to a rehabilitation that involves the staged 
treatment of disturbed areas during mining exploration, 
construction/development and extraction operations;
WW. Protected areas refer to identified portions of land and water set aside 
by reason of their unique physical and biological significance that are 
managed to enhance the biological diversity and protected against 
destructive human exploitation;
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VX. Quarry resources refQv to any common rock or other mineral substances as 
the Director of the Mines and Geosciences Bureau (MGB) may declare to be 
quarry resources such as andesite, basalt, conglomerate, coral sand, 
diatomaceous earth, diorite, decorative stones, gabbro, granite, limestone, 
marble, marl, red burning clay for potteries and bricks, rhyolite, rock 
phosphate, sandstone, serpentine, shale, tuff, volcanic cinders, and volcanic 
glass;
YY. Quarrying refers to the process of extracting, removing and disposing quarry 
resources found on or underneath the surface of private or public land;
ZZ. Recycling refers 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 that may be used as raw materials for the production of other 
goods or services:
AAA. Rehabilitation refers to 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;
BBB. Remediation refers to the removal of pollution or contaminants from 
environmental media for general protection of the area and the people;
CCC. Remining refers to the process of maximizing and recovering the 
remaining minerals from the rejects or wastes of previous mines and mining 
operations;
DDD. Restoration refers to the act of bringing back the original, or the closest 
possible state, of the forest and biodiversity, with the productivity matching 
that of the original ecosystem;
EEE. Self-determination refers to the right of a people to determine its own 
political destiny as defined by existing laws. The right to self-determination 
includes the right of ICCs/IPs to choose their form of government within 
existing national borders to achieve a greater degree of autonomy to help 
preserve their culture, ancestral domain, and way of life;
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FFF. Small-scale mining refers to mining activities which rely heavily on
2 
manual labor using simple implements and methods and do not use
3 
explosives or any heavy mining equipment, primarily engaged in for
4 
sustainable living. Impacts from small-scale mining shall not be large-scale,
5 
otherwise, the mining activity shall be defined as large-scale mining;
6 
GGG. Strategic minerals refer to minerals needed for national industrialization,
7 
including rural development. It shall also include energy transition minerals
8 
required for the country's just transition to renewable energy;
9 
HHH. Tailings Disposal System or Tailings Placement refers to the method
10 
wherein the mining wastes are dumped, placed, or disposed;
11 
III. Traditional small-scale mining refers to small-scale mining using traditional
12 
means and without the use of chemical or mechanized extraction and
13 
separation means, methods, implements, and/or equipment;
14 
JJJ. Watershed system refers to an area consisting of the watershed and its
15 
divide including its connection from the headwaters to the reef or a land
16 
area drained by a stream or a fixed body of water and with tributaries having
17 
a common outlet for surface run-off. It is the system by which the mining-
18 
affected communities shall be determined following the drainage of a
19 
stream or fixed body of water with tributaries having a common outlet for
20 
surface runoff;
21 
CHAPTER IV
22 
OWNERSHIP AND GOVERNANCE
23 
SEC. 16. Ownership of mineral resources. - The State owns the mineral
24 
resources, facilities and technology within its national territory and shall utilize and
25 
manage these for the benefit of the Filipino people on the national and local levels.
26 
Consistent with the State's recognition of the indigenous and Moro peoples' right to
27 
self-determination, government shall ensure that the management of mineral
28 
resources shall be primarily for the benefit of the local communities in whose territory
29 
the same shall be found. Any minerals extracted shall be used for local industries
30 
consistent with the National Industrialization Plan and the country's just transition to
31 
renewable energy. The State may directly undertake the development, utilization and
18


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processing of mineral resources or enter into mineral agreements with eligible parties
2 
pursuant to the provisions of this Act.
3 
SEC. 17. Consent in Private Lands. - The MGB shall not allow entry into
4 
any private lands for the purposes of exploration activities without the written consent
5 
of the land owner, possessor or occupant and payment of just compensation for the
6 
use of property. Neither shall the MGB allow entry into any land under dispute.
7 
SEC. 18. Minerai resources in Ancestral Domains. — The mineral
8 
resources within the ancestral domains/ancestral lands are the collective private
9 
property of the indigenous cultural communities/indigenous peoples (ICCs/IPs), as
10 
provided by law. The management of such mineral resources shall build on the
11 
indigenous knowledge systems and practices of the ICCs/IPs. A non-member of
12 
ICCs/IPs concerned may be allowed to take part in the development and utilization of
13 
the natural resources for a period of not exceeding twenty-five (25) years renewable
14 
for not more than twenty-five (25) years: Provided, That a formal and written
15 
agreement is entered into with the ICCs/IPs concerned or that the community,
16 
pursuant to its own decision making process, has agreed to allow such operation:
17 
Provided, finally. That the NCIP may exercise visitorial powers and take appropriate
18 
action to safeguard the rights of the ICCs/IPs under the same contract.
19 
SEC. 19. Free and Prior Informed Consent and Certification
20 
Precondition. - No mining activity shall be conducted within or covering ancestral
21 
domains or lands without securing the Free and Prior Informed Consent from the
22 
concerned ICCs/IPs and Certification Precondition issued by the National Commission
23 
on Indigenous Peoples (NCIP), certifying therein that the concerned ICCs/IPs gave
24 
their consent to that particular project after undergoing the Free and Prior Informed
25 
Consent (FPIC) process.
26 
In instances when there are questions on the legality or validity of the issued
27 
free, prior, and informed consent before the NCIP, mining operations shall not be
28 
allowed to be conducted in the ancestral domains or lands of the ICCs/IPs without the
29 
final resolution of such question on the legality or validity of the FPIC.
30 
SEC. 20. When ancestral domain is yet to be formally recognized. -
31 
Mineral resources within identified ancestral domains delineated by the ICCs/IPs in
32 
accordance with existing law, rules and regulations, and/or by virtue of historic rights
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and self-delineation shall be managed by the ICCs/IPs concerned whether these
2 
domains are covered with Certificates of Title or not.
3 
SEC. 21. ICCs/IPs displaced from ancestral domain due to mining. -
4 
The native title over an ancestral domain subsists notwithstanding the fact that the
5 
ICCs/IPs who hold such title have been displaced therefrom or that such ancestral
6 
domains have been occupied by other persons or corporations under another claim of
7 
title emanating from the State. In such cases, ICCs/IPs shall continue to own such
8 
mineral resources.
9 
SEC. 22. Authority of the Mines and Geosciences Bureau. - The Mines
10 
and Geosciences Bureau (MGB) shall be a scientific research institution under the
11 
Department of Environment and Natural Resources (DENR), primarily conducting the
12 
research and development of mineral resources and mining technologies, and the
13 
training of local communities, local government units and indigenous peoples. It shall
14 
also regulate the operations of persons involved in ail mining activities. It shail aiso
15 
work with the Multi-Sectoral Mineral Council in the monitoring of mining activities, as
16 
provided in this Act.
17 
SEC. 23. Regional Offices. - The MGB shall have as many regional offices in
18 
the country as may be estabiished by the DENR Secretary, upon the recommendation
19 
of the MGB Director.
20 
SEC. 24. MGB as repository of information. — The MGB shall be the central
21 
repository of information regarding mineral lands, resources, permits, studies and
22 
other information relevant to the operation of a mine, including the necessary
23 
requirements that a contractor is obliged to submit. All other governmental offices and
24 
other bodies created under this Act shall furnish copies to the MGB of all other
25 
information related to mining.
26 
SEC. 25. Access to Information. - All contractors for mineral permits and
27 
agreements shall provide information to the MGB and the affected indigenous peoples,
28 
local communities, and local government units. The following information of full
29 
disclosure, among others, shall be required:
30 
A. the methods and processes of mining to be used by the contractor;
31 
B. the environmental and social risks;
32 
C. the ownership structure of the contractor/company; and
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D. the sources of financing, including loan agreements.
2 
All information and documents related to the proposals, mineral agreements,
3 
permits and mining operations shall not be considered confidential. The refusal to
4 
grant access to the aforementioned information shall be cause for the disqualification
5 
of prospective proponents, or the cancellation of mineral agreements and permits.
6 
The MGB, being the repository of all relevant information under this Act is
7 
mandated to grant the public access to any information in its custody. The refusal or
8 
unnecessary delay by officers of the MGB to provide information shall be punishable
9 
by a fine of fifty thousand pesos (Php 50,000.00) for every instance of refusal or
10 
unnecessary delay. Information requested by indigents or marginalized sectors shall
11 
be provided to them for free.
12 
SEC. 26. Recording System. - There shall be established a national and
13 
regional filing and recording system. A mineral resource database system shall be set
14 
up in the MGB which shall include, among others, a mineral rights management
15 
system.
16 
SEC. 27. Publication. - The MGB shall publish annually a mineral gazette of
17 
nationwide circulation containing, among others, a current list of mineral rights, their
18 
locations specified in the appropriate map, mining rules and regulations, other official
19 
acts affecting mining, and other relevant information to mineral resources
20 
development. A publication fund shall be included in the regular budget of the MGB.
21 
SEC. 28. Exploration activities. - Exploration of mineral resources shall be
22 
undertaken by the State, through the MGB, or by private entities through a Joint
23 
Venture Agreement. All exploration activities shall be strictly monitored by the MGB to
24 
ensure that mineral resources are not extracted before the corresponding
25 
environmental, social, indigenous and community benefit assessments have been
26 
done.
27 
All results of exploration of mineral resources shall be submitted and shared
28 
with the State through the MGB.
29 
The State shall also carry out human resource training and development,
30 
scientific research and technological application and development in geological
31 
baseline surveys of minerals and mineral activities.
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SEC. 29. Inventory of mineral resources. - The MGB shall identify and
2 
provide an inventory of all the available mineral resources, including the mine tailings
3 
and wastes within the country. It shall submit to the DENR a report which shall contain
4 
the following information:
5 
a. 
the classification of minerals;
6 
b. 
the quality and grade of the ore;
7 
c. 
the potential mine life;
8 
d. 
the geological description of the area;
9 
e. 
the economic viability of mine tailings; and
10 
f. all other relevant information necessary for potential mineral
11 
investments.
12 
The process for mineral exploration and the approval for any mining permit
13 
shall not commence without the said inventory.
14 
SEC. 30. Strategic minerals. - The MGB shall conduct researches and
15 
studies prior to any mining operations to identify strategic mineral resources. Mineral
16 
resources needed for local industries, agricultural modernization, rural development,
17 
and just transition shall be opened to mining subject to the implementing rules and
18 
regulations of this Act.
19 
SEC. 31. Demarcation of mineral areas. - The MGB shall demarcate the
20 
boundaries of all areas identified as containing commercial quantities of mineral
21 
resources.
22 
SEC. 32. Information on watershed continuums. - The baseline
23 
information on all watersheds in the country shall be required and made accessible to
24 
the public in all forms, including the websites of the MGB and the National Water
25 
Resources Board (NWRB). No mining permit shall be issued without this baseline
26 
information.
27 
SEC. 33. Affected local community and local government unit - For
28 
the purposes of this Act, the affected local community and local government unit are
29 
defined in relation to any area which has the potential to be negatively impacted by
30 
mining operations in the demarcated area. The local communities and the local
31 
government units therefore, are those who are dependent on the watershed eco-
32 
system and its resources.
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SEC. 34. Establishment of the Multi-Sectoral Mineral Council. - A Multi-
2 
Sectoral Mineral Council shall be established for the purposes of this Act. There shall
3 
be as many Multi-Sectoral Mineral Councils as there are watershed continuums with
4 
demarcated mineral areas.
5 
SEC. 35. Powers and Functions of the Multi-Sectoral Mineral Council.
6 
- The Council shall have the following powers:
7 
A. Define a review period, for each mineral area, where comments on mining
8 
proposals shall be submitted to the MGB;
9 
B. Call for public hearings to present and formally discuss mining applications
10 
and gather options and public feedback or comments before a project
11 
should be approved by the MGB;
12 
C. Determine whether or not mining operations shall be allowed;
13 
D. Deliberate on proposals for mineral agreements;
14 
E. Monitor the conduct of mining operations;
15 
F. Establish its internal rules of procedure which are not contradictory to this
16 
Act;
17 
G. Provide public comment on all public submissions and justify their decision;
18 
and
19 
H. Recommend the cancellation of a permit.
20 
SEC. 36. Composition of the Multi-Sectoral Mineral Council. - The Multi-
21 
Sectoral Mineral Council shall be composed of:
22 
A. a representative from the MGB, who may come from the concerned
23 
Provincial DENR Office;
24 
B. one (1) representative from each of the affected provincial governments or
25 
independent component cities or highly urbanized cities (LGUs);
26 
C. representatives from an established municipal-level
27 
peoples/community/sectoral/ICCs or IP organizations affected by the
28 
proposed mining project and whose numbers shall be equal to or as many
29 
as the number of those representing the affected LGUs; and,
30 
D. two (2) representatives from non-government organizations of at least five
31 
years (5) of prior existence.
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The MGB shall be the convenor of the Council. No mining operations shall be
2 
allowed without the Council having been properly convened. [Change during TWGs)
3 
SEC. 37. Areas open to mining. - The power to determine whether or not
4 
the land where mineral resources are found shall be opened to mining is vested in the
5 
Council. Areas may only be opened to mining upon the two-thirds vote of all the
6 
members of the Council pursuant to the guidelines provided by this Act. In determining
7 
whether or not such area shall be opened, the following shall be taken into
8 
consideration:
9 
A. MGB report on the exploration conducted;
10 
B. Existence of downstream industries for the mineral resources;
11 
C. Potential environmental, public health and cultural impacts;
12 
D. Conflict and risk assessment;
13 
E. Potential economic benefits of the development and utilization of the
14 
minerals;
15 
F. Carrying capacity and the ecological profile of the area;
16 
G. Existing and alternative land uses of the area; and
17 
H. Local government land use plan.
18 
No mining application shall be allowed by the Council unless an 
environmental
19 
economic audit or resource valuation of the proposed mining area has been conducted
20 
applying acceptable valuation standards. This audit or resource valuation shall be
21 
conducted in coordination with a multi-sectoral group of experts and community
22 
stakeholders. It shall include the determination of the expected economic returns and
23 
the potential negative impacts from mining. A detailed study must mention the
24 
biodiversity present in the mining claim and the impact of mining operations on the
25 
environment, the possible environmental degradation and the attendant loss of
26 
subsistence resources. There must be mention of existence of sacred areas or areas
27 
of cultural significance and address the impacts of resource exploitation on indigenous
28 
and local communities.
29 
In no case shall the Council open the following areas to mining:
30 
A. Areas declared by the Local Government Units as No-Mining Zones as
31 
specified by local ordinances and other issuances;
32 
B. densely populated areas, especially residential areas;
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C. prime agricultural lands, irrigable and irrigated lands as defined by Republic 
Act 9700;
D. lands subject for agrarian reform;
E. areas with potential for acid mine drainage;
F. critical watersheds and critical habitats;
G. geohazard and climate disaster-prone areas;
H. small island ecosystems;
I. cultural sites, which may include, but not limited to, sacred sites and burial 
grounds;
J. traditional swidden farms and hunting grounds;
K. cultural property enumerated under Republic Act 10066, or the "National 
Cultural Heritage Act of 2009";
L. key biodiversity areas;
M. high conflict areas;
N. the Province of Palawan pursuant to Republic Act 7611, or the "Strategic 
Environmental Plan for Palawan Act";
O. in military and other government reservations, except upon prior written 
clearance by the government agency concerned;
P. near or under public or private buildings, cemeteries, archaeological and 
historic sites, bridges, highways, waterways, railroads, reservoirs, dams or 
other infrastructure projects, public or private works including agricultural 
crop plantations;
Q. 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, with said 
royalty forming a trust fund for the socioeconomic development of the 
community concerned;
R. 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 existing 
laws and ordinances; and
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S. in areas expressly prohibited by law or ordinances.
2 
The determination whether or not the same are absolutely closed to mining
3 
shall not only be limited to the existence of a law or ordinance declaring it as protected
4 
areas, but also to the actual use of said area.
5 
SEC. 38 Manner of voting by the Council for opening an area to
6 
mining. - The MGB shall convene the Council once the inventory of the existing
7 
minerals, the formulation of a mine plan, and the existence of the baseline information
8 
of the particular watershed area are submitted. The Council shall thereafter convene
9 
their respective constituents to determine whether or not their respective territories
10 
shall be opened for mining.
11 
Sections 26 and 27 of the Republic Act 7160 or the "Local Government Code of
12 
1991" on consultation and consent shall be strictly adhered to. Local government units
13 
at all levels shall conduct mandatory public hearings with the affected local
14 
communities, to be carried out within their respective territories and presenting those
15 
enumerated under Section 40 of this Act. Local government units, ICCs/IPs, NGOs and
16 
people's organizations, shall ensure that the MGB shall comprehensively explain the
17 
goals and objectives of the project or program, its negative and positive impact upon
18 
the people and the community in terms of environmental or ecological balance, and
19 
the measures that will be undertaken to prevent or minimize the adverse effects
20 
thereof.
21 
Thereafter, the approval of the respective Sanggunian of the affected local
22 
government units shall be required in accordance to the sentiment of the peoples of
23 
the local government unit as a result of the consultations conducted: Provided, That
24 
the affected local government unit representatives shall meet and relay the decision
25 
of their respective constituents to the provincial government/independent component
26 
cities/highly urbanized cities. The provincial/component city/highly urbanized city
27 
government representative shall sit in the Council and shall carry the result of the vote
28 
of all the affected local government units within the province resulting from the
29 
process as provided in this Act. There must be a two-thirds vote among all the affected
30 
LGUs for the purpose of opening a particular area for mining in its jurisdiction. Failure
31 
to reach a two-thirds vote for opening shall mean that the area is closed to mining.
32 
All the proceedings shall at all times be recorded.
26


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In case there are affected indigenous cultural communities/indigenous peoples,
2 
they shall also bring the community's vote to the Council after undergoing their own
3 
processes in accordance with their respective indigenous political structure, free from
4 
any external manipulation, interference, coercion and other analogous acts, and
5 
obtained after fully disclosing the intent and scope, including the positive and negative
6 
impacts of the activity, in a language and process understandable and acceptable to
7 
them.
8 
Any member of the community may file a protest with the Council during any
9 
point in the period of consultations and deliberations for the Council's consideration.
10 
SEC. 38. Poo! of consultants. - There shall be a pool of independent
11 
consultants that shall assist the local government units, local communities or ICCs/IPs
12 
with regard to the technical aspects of mining. Ensure that consultants include experts
13 
in gender-related concerns, representatives from women's organizations, and women
14 
from the local community.
15 
SEC. 39. Publication, posting and radio announcement requirements.
16 
- Any decision of the Council shall be published by the MGB in the local newspaper in
17 
the local language, shall be announced on local radio programs for not less than six
18 
(6) weeks and notices shall be distributed widely in communities. The notice
19 
containing relevant information shall likewise be posted in conspicuous places for the
20 
information of the general public and shall be announced during the local market day.
21 
CHAPTERV
22 
MINERAL AGREEMENTS
23 
SEC. 40. Modes of Mineral Agreement. - The following are the mineral
24 
agreements as herein defined;
25 
A. Mineral production sharing agreement - an agreement where the Government
26 
grants to the contractor the exclusive right to conduct mining operations within
27 
a contract area and shares in the gross output. The contractor shall provide the
28 
financing, technology, management and personnel necessary for the
29 
implementation of this agreement;
30 
B. Co-production agreement - an agreement between the Government and the
31 
contractor wherein the Government shall provide inputs to the mining
32 
operations other than the mineral resource; and
27


1 
C. Joint venture agreement- an agreement where a joint-venture company is
2 
organized by the Government and the contractor with both parties having
3 
equity shares. Aside from earnings in equity, the Government shall be entitled
4 
to a share in the gross output.
5 
In no case shall Financial or Technical Assistance Agreements, or any other
6 
similar agreements, contracts, or executive issuances granting license or permission
7 
to explore, develop or utilize mineral resources be awarded to foreign entities or
8 
persons.
9 
SEC. 41. Eligibility. - Only Filipino citizens or corporations sixty percent
10 
(60%) of whose equity is owned or controlled by such citizens shall be allowed to
11 
conduct the development, utilization and processing of mineral resources within the
12 
country.
13 
SEC. 42. Identification of mining projects. - With the vote of all the
14 
members of the Council to open areas for mining operations, the MGB shall prepare
15 
the necessary information sheets on the said area for potential investments. The MGB
16 
shall call for proposals to develop the mining area based on the National Mining Plan
17 
(NMP).
18 
SEC. 43. Pre-screening of mining proposals. - Mining proposals shall be
19 
pre-screened by the MGB according to the National Industrialization Plan and a just
20 
minerals transition and upon the submission of interested parties of the following:
21 
A. demonstration of financial capability;
22 
B. proven social and environmental track record, including those of its officers and
23 
directors;
24 
C. clear corporate structure and ownership;
25 
D. proof of physical office and operations of the proponent within the Philippines;
26 
E. identification of potential investors;
27 
F. mining project feasibility and operational work 
plan to include proposed
28 
operation, mitigation and prevention methods and/or equipment;
29 
G. capacity to process minerals;
30 
H. intent to develop downstream industries and contribute to local community
31 
development; and
28


1 
I. submission of the Environmental and Social Impact Assessment and Mitigation
2 
Plan.
3 
The Council shall fix the minimum capitalization that any bidder must satisfy
4 
based on its determination of the expected economic returns and the potential
5 
negative impacts from mining, upon reference to an independent study proposing
6 
such minimum capitalization.
7 
SEC. 44. Environmental and Social Impact Assessment and Mitigation
8 
Plan. - The contractor shall submit an Environmental and Social Impact Assessment
9 
and Mitigation Plan (ESIAMP) containing the means, methods, processes and schedule
10 
by which the contractor shall conduct its operations and mitigate negative
11 
environmental and social impacts. Social impact shall include possible impacts on the
12 
enjoyment and exercise of human rights, cultural rights, and the right to a healthful
13 
ecology. The ESIAMP shall include plans relative to mining operations; the
14 
rehabilitation, regeneration and restoration of mineral areas; slope stabilization of
15 
mined out and tailings covered areas; aquaculture, watershed development and water
16 
conservation; the relocation and return of displaced population; and provisions for
17 
alternative livelihood and socioeconomic development.
18 
The ESIAMP shall also contain a Social Development Plan which shall likewise
19 
contain the plans of the proponent for the development of the community through
20 
the establishment of infrastructures and programs that shall be sustainable even
21 
after the closure of the mine. It shall include a gender analysis that looks into the
22 
power relations between women and men in the household and community, and in
23 
terms of activities, access to, control, and ownership of resources. It shall also
24 
ascertain how mining operations will affect women's condition and position in the
25 
household and community. Finally, it shall develop a gender action plan, based on
26 
the gender analysis, to include clear targets and indicators in mitigating negative
27 
environmental and social impacts on women and ensuring women's participation and
28 
tangible benefits from the mining operations and rehabilitation.
29 
The ESGIAMP shall be responsive to the issues and needs of women, LGBTQI
30 
individuals, children, persons with disabilities, and older persons. It shall likewise
31 
ensure that their rights are protected and respected.
29


1 
SEC. 45. Pre-qualification. - The MGB shall thereafter identify the top five
2 
(5) proposals and shall recommend the same to the Council for deliberation.
3 
SEC. 46. Deliberation. - After the MGB's transmittal of its recommendations
4 
to the Council together with all the submitted documents for the pre-qualification, the
5 
Council shall initiate the deliberation process of the pre-qualified proposals.
6 
Immediately thereafter, Sections 26 and 27 of the Local Government Code on
7 
consultation and consent shall be strictly adhered to. Local government units at all
8 
levels shall conduct mandatory public hearings with the affected local communities, to
9 
be carried out within their respective territories and presenting those enumerated
10 
under Section 38. Local government units, ICCs/IPs, NGOs and people's organizations,
11 
shall ensure that the mining applicant shall comprehensively explain the goals and
12 
objectives of the project or program, its negative and positive impact upon the people
13 
and the community in terms of social, cultural and environmental or ecological
14 
balance, and the measures that will be undertaken to prevent or minimize the adverse
15 
effects thereof. Thereafter, the approval of the respective Sanggunian of the affected
16 
local government units shall be required in accordance to the sentiment of the peoples
17 
of the local government unit as a result of the consultations conducted.
18 
The affected local government unit representatives shall meet and shall relay
19 
the decision of their respective constituents to the provincial government, independent
20 
component cities, or highly urbanized cities. The provincial, component city, or highly
21 
urbanized city government representative shall sit in the Council and shall carry the
22 
result of the vote of all the affected local government units within the province,
23 
independent component city, or highly urbanized city resulting from the process
24 
provided in the preceding paragraph of this Section.
25 
In determining which proposal is acceptable to the people, a majority vote of
26 
the local government units within the province/independent component city/highly
27 
urbanized city shall be required.
28 
The affected ICCs/IPs shall also deliberate on the proposals in accordance with
29 
their own systems and processes free from any external manipulation, interference,
30 
coercion and other analogous acts, and obtained after fully disclosing the intent and
31 
scope, including the positive and negative impacts of the activity, in a language and
32 
process understandable and acceptable to them.
30


1 
After the respective processes are complied with, the Council shall then meet
2 
and decide which proposal, if any, is most acceptable and consistent with their own
3 
socio-economic, environmental and cultural programs and shall notify the MGB of the
4 
chosen proposal.
5 
Section 47. Posting and Publication Requirement - After notice, the
6 
MGB shall notify the proponent of the accepted proposal and cause the publication
7 
and posting of the accepted proposal: Provided, That any member of the community
8 
may contest the decision of the Council within six (6) weeks upon the posting and
9 
publication of notice of the acceptance of the proposal in the manner provided for in
10 
Section 38. No mining operations shall be allowed pending any action questioning the
11 
legality or validity of the proposal.
12 
SEC. 48. Issuance of the Permit - The MGB shall only issue permit in
13 
accordance with the decision of the council on the winning proposal only upon showing
14 
compliance with the FPIC processes as evidenced by Certification Precondition issued
15 
by the NCIP in accordance with Section 59 of RA 8371, or a written FPIC of the affected
16 
sectors in accordance with the provisions of this Act in areas outside ancestral
17 
domains.
18 
SEC. 49. Environmental and Social Impact Compliance Certificate. -
19 
The mining proponent shall be Issued an Environmental and Social Impact Compliance
20 
Certificate by the Environmental Management Bureau with the approval of the Council,
21 
Provided, That no amendments to the ESIAMP shall be allowed, unless any proposed
22 
amendment shall benefit the affected communities and that the Council and the MGB
23 
shall be notified of any amendments to the ESIAMP, that the former shall give their
24 
consent to the same, after the proponent explains in detail the reason for such
25 
amendment/s and the possible impacts and consequences of these: Provided, further,
26 
That any violation of the ESIAMP shall cause the cancellation of the Certificate.
27 
SEC. 49. Maximum areas for mineral agreements. - The maximum area
28 
under mineral agreements that an entity can hold at any one time shall be determined
29 
by the Council: Provided, That the contract area per agreement shall not exceed five
30 
hundred (500) hectares: Provided, further. That no entity shail be awarded in excess
31 
of the total contract area of seven hundred-fifty (750) hectares in any given watershed
31


1 
area. For the purposes of this Act, the prohibition on the maximum area shall also
2 
include corporations that shall have common directors or significant shareholders.
3 
SEC. 50. Term of mineral agreement. - The term of the mineral agreement
4 
shall be equivalent to the mine life plus an additional five (5) years for the
5 
rehabilitation of the mining area. Provided, That in no case shall a Mineral Agreement
6 
have a term beyond fifteen (15) years. Provided further. That the contractor shall
7 
already include rehabilitation/remediation of the mining area within the ten-year term.
8 
In no case shall a Mineral Agreement be extended without just cause to be
9 
determined by the Council: Provided, That the extension shall not cause the term of
10 
the agreement to exceed the fifteen (15) year term mentioned in the preceding
11 
section: Provided further. That for the purposes of this Act, just cause shall mean acts
12 
or events resulting from war, force majeure or those beyond the control of the mining
13 
proponent not attributable to the same: Provided finaliy. That in no case shall mineral
14 
agreements be renewed after the expiration of the fifteen-year period.
15 
SEC. 51. Prohibition on open-pit mining methods and submarine
16 
tailings disposal.- lUe open-pit mining methods and the submarine tailings disposal
17 
method shall be prohibited.
18 
SEC. 52. Failure to initiate mining operations. - Failure to initiate mining
19 
operations in accordance with the work program within five (5) years from the award
20 
of the mineral agreement shall cause the cancellation of the mineral agreement. The
21 
contractor thereafter forfeits the value of the improvements made upon the land. The
22 
contractor and other corporations who are also run by the same directors and officers
23 
are thereafter banned from bidding to conduct mining operations for ten (10) years
24 
after failure to initiate its mining operations in accordance with the work program.
25 
SEC. 53. Mandatory consultations in each mining phase. - Mandatory
26 
consultations with affected persons and communities shall be undertaken in each
27 
phase of mining operation: exploration, extraction, processing, and mine closure to
28 
ensure that the peoples shall be informed of the proposed plans and methods that
29 
are proposed to be conducted. Consultations should be inclusive, participatory,
30 
transparent, timely, and free of harassment, threats, and risk.
31 
Section 54. FPIC of ICCs/IPs on each stage of mining. - The consent of
32 
the ICCs/IPs and the CP issuance shall be required at each and every stage of the
32


1 
mining operation through a process of FPIC which will be facilitated by the National
2 
Commission on Indigenous Peoples. Any violation relative thereto is subject to the
3 
penalties as provided under the NCIP FPIC Guidelines and shall be a ground for the
4 
cancellation of the mineral agreement.
5 
As to the ICCs/IPs, their free and prior informed consent shall be secured in
6 
accordance with their customary laws, practices and processes. The procedure to
7 
secure the FPIC of the ICCs/IPs shall be facilitated by the NCIP and the CP issuance
8 
be made pursuant to the IPRA and existing guidelines. Any violation relative thereto
9 
is subject to the penalties as provided under the existing NCIP FPIC Guidelines and
10 
shall be a ground for the cancellation of the mineral agreement.
11 
SEC. 55. Monitoring. -The Council shall form a multi-partite monitoring team
12 
to monitor the contractor's compliance to the terms and conditions of the mineral
13 
agreement. It may conduct ocular inspections of the contract area at any time and
14 
inspect all the books of contractors and refer the same to independent auditors. The
15 
multi-partite monitoring team or the MGB may confiscate surety, performance and
16 
guaranty bonds posted through an order to be promulgated by the Director. The
17 
Council, the Director or the local government authorities may deputize, when
18 
necessary, any member or unit of the Philippine National Police (PNP), barangay, duly
19 
registered non-government organization (NGO) or any qualified person to police any
20 
and all mining activities. The composition of the multi-partite monitoring team and
21 
multi-sectoral monitoring team shall include women from the local community and
22 
representatives from women's organizations. The monitoring framework must include
23 
gender indicators.
24 
SEC. 56. Withdrawal from the Mineral Agreement - The contractor may
25 
withdraw from the mineral agreement at any time for justifiable cause with one (1)
26 
month's notice to the MGB, the Council or the ICCs/IPs, and other government
27 
agencies as provided in this Act. The Council, in cooperation with other concerned
28 
government agencies, shall issue a clearance for withdrawal upon certifying that the
29 
contractor has complied with all its legal obligations, including the appropriate
30 
measures for mine closure and rehabilitation. Funds and bonds which have been put
31 
up by the contractor in accordance with this Act shall be forfeited.
33


1 
SEC. 57. Prohibition on the Transfer of Mineral Agreements. — In no
2 
case shall mining rights under this Act be transferable. The contractor shall also
3 
immediately notify the Council and the MGB of any change in the ownership and/or
4 
control of the corporation and its financing program. Violation of this provision shall
5 
cause the cancellation of the mineral agreement and forfeiture of the contractor's
6 
assets in favor of the State.
7 
CHAPTER VI
8 
SMALL-SCALE MINING
9 
SEC. 58. Governance of Small-scale mining. — Small-scale mining shall
10 
continue to be governed by the provisions of Republic Act 7076 or the "People's Small-
11 
Scale Mining Act of 1991"; Provided, That the Provincial or City Mining Regulatory
12 
Board shall be composed of the Governor or City Mayor, as chairperson, as the case
13 
may be, a DENR representative as co-chairperson, one (1) small scale mining
14 
representative, one (1) large-scale mining representative, one representative from an
15 
environmental non-government organization, one representative from a people's
16 
organization (PO) coming from the marginalized sector, and at least one (1)
17 
representative from the indigenous communities, whenever applicable, as members.
18 
The representatives from the private sector, nongovernment organization and
19 
indigenous communities shall be selected by their respective organizations or
20 
communities, and appointed by the PMRB or CMRB; Provided, further, That the
21 
conduct of small-scale mining shall also comply with the prohibitions and regulations
22 
established herein for large-scale mining. Only individuals and cooperatives may apply
23 
for a small-scale mining permit.
24 
SEC. 59. Maximum term of small-scale mining permits. - The term for
25 
small-scale mining permits shall be three (3) years, extendable to a maximum of
26 
fifteen (15) years.
27 
SEC. 60. Traditional small-scale mining within ancestral domains. -
28 
The Council shall conduct regular monitoring activities within its jurisdiction to
29 
determine if the provisions of relevant laws are complied with in traditional small-scale
30 
mining by ICCs/IPs within their respective ancestral domains.
31 
SEC. 61. FPICin small-scale mining. - Small-scale mining activities within
32 
any ancestral domain by any person shall also require the FPIC of ICCs/IPs.
34


1 
SEC. 62. Requirement for Environmental and Social Impact
2 
Compliance Certificate. - Small-scale mining shall likewise require an
3 
Environmental and Social Impact Compliance Certificate (ESICC). All small-scale
4 
mining applicants or proponents must show proof of compliance with the terms and
5 
conditions of its ESICC prior to the issuance of a small-scale mining permit (SSMP).
6 
Failure to submit this requirement will result in the non-issuance of the SSMP.
7 
SEC. 63. Environmental measures in small-scale mining. - The State
8 
shall immediately address the environmental and health hazards and problems in
9 
small-scale mining, including the use of mercury, cyanide and other chemicals, in the
10 
amalgamation of gold by small-scale miners.
11 
The MGB shall immediately conduct research to focus on developing and
12 
promoting appropriate, clean, efficient, cuiturally-sensitive and industrially-viable
13 
technologies that shall mitigate the environmental and health effects of mercury and
14 
cyanide use and eventually replace the current practice. Mercury use in small-scale
15 
mining shall be prohibited. The Bureau shall research, develop and actively promote
16 
appropriate technologies in small-scale mining including labor-intensive methods,
17 
environmental protection and physical techniques of gold extraction among small-
18 
scale miners.
19 
SEC. 64. Monitoring small-scale mining. - A multi-sectoral monitoring
20 
team shall be organized by the Council to monitor SSMP permittees' compliance with
21 
the terms and conditions of their respective SSMPs and ESICCs. The team shall
22 
conduct ocular inspections of SSMP areas at any time and shall have visitorial powers.
23 
SEC. 65. Livelihood support. - The State shall support the improvement of
24 
the livelihood of small-scale-miners by extending services for access to other more
25 
viable and sustainable forms of livelihood, and, if the same is not possible, the
26 
following support services:
27 
A. access to minerals markets and to financing;
28 
B. facilitating partnership with mining companies or contractors by, among
29 
others, requiring mining companies to buy tailings from small-scale mining
30 
operations for further processing or recycling;
31 
C. facilitating partnerships among small-scale mining cooperatives; and
35


1 
D. other incentives to attract informal small-scale miners to formalize their
2 
status.
3 
SEC. 66. Buying stations.—The Bangko Sentra! ng Pilipinas shall ensure that
4 
buying stations acquire gold from small-scale traders at prevailing international gold
5 
market prices and the prevailing exchange rate set by the BSP Treasury Department
6 
on a daily basis.
7 
CHAPTER VII
8 
QUARRY RESOURCES
9 
SEC. 67. Quarry resources within ancestral domains. - Gathering of
10 
quarry resources, sand and gravel, guano and other organic fertilizer materiais, and
11 
gemstones within ancestral domains shall likewise be subject to the FPIC of ICCs/IPs.
12 
ICCs/IPs and the government shall be entitled to ten percent (10%) of royalties
13 
depending on whether the resources are found inside or outside ancestral domains.
14 
Permits shall have a term of five (5) years, renewable for like period but not to exceed
15 
a total term of twenty (20) years, and, only at a maximum surface area of five (5)
16 
hectares.
17 
SEC. 68. Quarry Permit - Any qualified Filipino may apply for a quarry permit
18 
on privately- owned lands and ancestral domains and public lands for building and
19 
construction materials such as marble, basalt, andesite, conglomerate, tuff, adobe,
20 
granite, gabbro, serpentine, inset filling materials, clay for ceramic tiies and building
21 
bricks, pumice, perlite and other similar materials that are extracted by quarrying from
22 
the ground at the provincial/city mining regulatory board.
23 
The provincial governor shall grant the permit after the applicant has complied
24 
with all the requirements as prescribed by the rules and regulations set forth by this
25 
Act. Provided that gathering/extraction of sand for its metailic contents such as
26 
magnetite from the country's rivers and shorelines shali be require a minerai
27 
agreement in lieu of a quarry permit.
28 
The maximum area which a quaiified person may hold at any one time shall be
29 
limited to a surface area of five hectares (5 has.) Provided, That in large-scale quarry
30 
operations invoiving cement raw materials, marble, granite, sand and gravel and
31 
construction aggregates, a qualified person and the government may enter into a
32 
mineral agreement as defined herein.
36


1 
A quarry permit shall have a term of five (5) years, renewable for like periods
2 
but not to exceed a total term of twenty (20) years. No quarry permit shall be issued
3 
or granted for any area that is covered by a mineral agreement.
4 
SEC. 69. Quarry fees and taxes. - A quarry permittee shall pay quarry fees
5 
as provided for under the implementing rules and regulations. The permittee shall also
6 
pay excise taxes as provided by pertinent laws.
7 
SEC. 70. Cancellation of quarry permit - A quarry permit may be cancelled
8 
by the provincial governor for violations of the provisions of this Act, its implementing
9 
rules and regulations or the terms and conditions of said permit: Provided, That before
10 
the cancellation of such permit, the holder thereof shall be given the opportunity to
11 
be heard in an investigation conducted for the purpose.
12 
SEC. 71. Commercial sand and gravel permit - Any qualified person may
13 
be granted a permit by the provincial governor to extract and remove sand and gravel
14 
or other loose or unconsolidated materials outside ancestral domains which are used
15 
in their natural state, without undergoing processing from an area of not more than
16 
five hectares (5 has.) and in such quantities as may be specified in the permit.
17 
SEC. 72. Industrial sand and gravel permit - Any qualified person may
18 
be granted an industrial sand and gravel permit by the MGB for the extraction of sand
19 
and gravel and other loose or unconsolidated materials outside ancestral domains that
20 
necessitate the use of mechanical processing covering an area of not more than five
21 
hectares (5 has.) at any one time. The permit shall have a term of three (3) years,
22 
renewable for a like period but not to exceed a total term of twenty (20) years.
23 
SEC. 73. Exclusive sand and gravel permit - Any qualified person may be
24 
granted an exclusive sand and gravel permit by the provincial governor to quarry and
25 
utilize sand and gravel or other loose or unconsolidated materials from public lands
26 
for his own use. Provided, That there will be no commercial disposition thereof.
27 
SEC. 74. State gratuitous permit - Any government entity or
28 
instrumentality may be granted a gratuitous permit by the provincial governor to
29 
extract sand and gravel, quarry or loose unconsolidated materials outside ancestral
30 
domains needed in the construction of building and/or infrastructure for public use or
31 
other purposes over an area of not more than two (2) hectares for a period co-
32 
terminus with the said construction.
37


1 
SEC. 75. Private Gratuitous Permit - Any owner of land may be granted a
2 
private gratuitous permit by the provincial governor to extract sand and gravel, quarry
3 
or loose unconsolidated materials within the said private property.
4 
SEC. 76. Guano permit - Any qualified Filipino may be granted a guano
5 
permit by the provincial governor to extract and utilize loose unconsolidated guano
6 
and other organic fertilizer materials in any portion of a municipality where said person
7 
has an established domicile outside ancestral domains. The permit shall be for specific
8 
caves or for confined sites with locations verified by the DENR field officer in
9 
accordance with existing rules and regulations: Provided, That extraction does not
10 
violate and is consistent with the provisions of existing laws, rules and regulations,
11 
such as the Wildlife Life Act, among others.
12 
SEC. 77. Gemstone gathering permit. - Any qualified Filipino may be
13 
granted a non-exclusive gemstone gathering permit by the provincial governor to
14 
gather loose stones useful as gemstones in rivers and other locations outside ancestral
15 
domains.
16 
SEC. 78. Council recommendation for approval. - No permit under
17 
Chapter VII of this Act shall be issued without the recommendation of the Multi-
18 
Sectoral Mineral Council prior to approval by the provincial government unit.
19 
CHAPTER VIII
20 
TRANSPORT, SALE AND PROCESSING OF MINERALS
21 
SEC. 79. Ore transport permit - A permit specifying the origin and quantity
22 
of non-processed mineral ores or minerals shall be required for their transport.
23 
In the case of mineral ores or minerals being transported from the areas
24 
declared as Minahang Bayanto custom mills or processing plants, the Minahang Bayan
25 
Council concerned shall formulate their own policies to govern such transport of ores
26 
produced by small-scale mining cooperatives.
27 
Transport permits shall be issued by the MGB. The absence of a permit shall
28 
be considered as prima facie evidence of illegal mining and shall be sufficient cause
29 
for the confiscation of the ores or minerals being transported, the tools and equipment
30 
utilized, and the vehicle containing the same.
31 
SEC. 80. Track record. - Only mining companies with demonstrated capacity
32 
and good environmental track record in mineral processing shall be allowed to extract
38


1 
minerals. The Council shall encourage contractors to put up processing plants within
2 
the community with the end in view of generating employment and developing other
3 
downstream industries.
4 
Section 81. Mineral trading registration. — No person shall engage in the
5 
trading of mineral products, either locally or internationally, unless accredited by the
6 
DENR and duly registered with the Department of Trade and Industry (DTI) with a
7 
copy of said accreditation and registration submitted to the MGB.
8 
SEC. 82. Mineral Processing Permit. - No individual, partnership,
9 
partnership, cooperative, corporation or other entity shall engage in the processing of
10 
minerals without first securing a minerals processing permit from the Council. Minerals
11 
processing permits shall be for a period of five (5) years, renewable for like periods
12 
but not to exceed a total term of twenty-five (25) years.
13 
In the case of small-scale miners, the processing of mineral ores they produce,
14 
as well as the licensing of their custom mills or processing plants, shall continue to be
15 
governed by the provisions of Republic Act No. 7076.
16 
In the case of individuals, corporations, partnerships, cooperatives or other
17 
entities who are parties to a Minerai Agreement or a Financiai or Technicai Assistance
18 
Agreement, holders of quarry and industrial sand and gravel permits, the approved
19 
work program for the production period shall be sufficient requirement for them to
20 
process minerals in lieu of a mineral processing permit.
21 
A mineral processing permit shall be for a period of five (5) years, renewable
22 
for like periods: Provided, That renewal shall not be allowed unless the permit holder
23 
has complied with all the terms and conditions of the permit and has not been found
24 
guilty of violation of any provision of this Act and its implementing rules and
25 
regulations.
26 
After due process, a mineral processing permit may be suspended, revoked or
27 
cancelled by the DENR for violation of its terms and conditions, or of pertinent laws,
28 
rules and regulations.
29 
Minerai processing shail be included in the Investment Priority plan to be
30 
prepared by the Board of Investment in accordance with Executive Order No. 226, as
31 
amended, otherwise known as the "Omnibus Investment Code of 1987" and shall
32 
always be listed as a preferred area of investment.
39


1 
CHAPTER IX
2 
DEVELOPMENT OF COMMUNITIES, SCIENCE AND TECHNOLOGY
3 
SEC. 83. Expenditure for community development - A contractor shall
4 
assist in the development of the community, and the promotion of the general welfare
5 
of its inhabitants towards sustainable development. Community development projects
6 
shall in no way decrease the obligation of the corporation with regard to royalties and
7 
fees due to communities and/or local government units. Community development
8 
projects should be consistent with the Comprehensive Land Use Plans (CLUP),
9 
Ancestral Domains Sustainable Development and Protection Plan (ADSDPP) and
10 
annual investment plans of the local governments, CADT/CALT holders, and the like.
11 
SEC. 84. Preferential option for Filipino laborf experts and training of
12 
members of the local community. — A contractor or permittee shall give
13 
preference to Filipino citizens in all types of mining employment within the country.
14 
Members of the local community shall be trained in all aspects of the mining
15 
operations, including remining, recycling, and the management thereof. It shall
16 
employ and train 20-30% women in all aspects of mining operations keeping in mind
17 
the core labor standards and ensuring that acts of discrimination on the basis of sex
18 
and gander are not committed in recruitment, hiring, promotion, and provision of
19 
benefits.
20 
SEC. 85. Use of indigenous goods, services and technologies. - A
21 
contractor shall give preference to the use of local goods, services, and the scientific
22 
and technical resources in all stages of mining operations, where the same are of
23 
equivalent quality and are available on equivalent terms as their imported
24 
counterparts.
25 
SEC. 86. Donation or turnover of facilities. - Prior to the cessation of
26 
mining operations by abandonment or withdrawal of operations on public lands by the
27 
contractor, the latter shall have a period of one (I) year therefrom within which to
28 
remove improvements. Otherwise, all the infrastructure, facilities and equipment shall
29 
be turned over or donated tax-free to the proper government authorities, national or
30 
local, to ensure that said infrastructure facilities and equipment are continuously
31 
maintained and utilized by the State. A fine of one hundred thousand pesos
32 
(PhPI00,000.00) shall be imposed for every day of delay.
40


1 
CHAPTER X
2 
BENEFIT SHARING, TAXES AND FEES
3 
SEC. 87. Taxes and fees. - The contractor shall pay all taxes and fees as
4 
required by law, including the following:
5 
A. contractor's income tax;
6 
B. customs, duties and fees on imported capital equipment;
7 
C. value-added tax on imported goods and services;
8 
D. withholding tax on interest payments to foreign loans and on dividends to
9 
foreign stockholders;
10 
E. documentary stamps tax;
11 
F. capital gains tax;
12 
G. excise tax on minerals;
13 
H. local business tax;
14 
I. real property tax;
15 
J. community tax;
16 
K. occupation fees;
17 
L. registration, accreditation and permit fees; and
18 
M. water usage fees.
19 
SEC. 88. Government share. - Aside from the taxes and fees referred to in
20 
the preceding section. Government shall have a share equivalent or greater than ten
21 
percent (10%) of the gross revenues from the development and utilization of mineral
22 
resources that are owned by it to be set aside for the general fund of the government
23 
to be used, among others, for special projects such as energy development and
24 
generation and the management and conservation of protected areas in areas within
25 
the vicinity or adjacent to mining operations.
26 
SEC. 89. Indigenous cultural communities' royalty. - In case of mineral
27 
operations within ancestral domains, the contractor shall allot at least ten percent
28 
(10%) of the gross revenues as royalty to the ICCs/IPs. Community development
29 
programs shall not be considered as royalty payment. The payment of the royalties
30 
shall directly be given to the communities in a process that build on the ICCs/IPs'
31 
traditional and customary laws: Provided, That the royalty established in this Act shall
32 
be free from any external manipulation, interference, coercion, and other analogous
41


1 
acts, and obtained after fully disclosing the intent and scope, including the positive
2 
and negative impacts of the activity, in a language and process understandable and
3 
acceptable to them.
4 
SEC. 90. Scientific research and deveiopment fund. - A Scientific
5 
Research and Development Fund shall be set aside to be devoted to research and
6 
development of clean mining technologies, improvement of mining processes, mine
7 
rehabilitation, mitigating technologies, the setting up and maintenance of an
8 
independent pool of experts, and operational expenses of the MGB.
9 
Section 91. Legal services fund. - A legal support fund shall be set aside
10 
for the use of the communities and local government units for cases that they may
11 
file against mining permittees or cases that may be filed against them by mining
12 
companies in trying to do their responsibility of protecting the rights of the
13 
marginalized groups, the environment and sustainable development in general.
14 
Section 92. Local Government Unit share. - Local Government Units shall
15 
be entitled to a share of the net revenues from mining operations which shall be paid
16 
directly to the treasurer's office of the provincial/independent component city/highly
17 
urbanized city for distribution to other local government units. To determine the
18 
government share, the following variables shall be considered:
19 
A. Classification of local government;
20 
B. Vulnerability; and
21 
C. Human development index.
22 
A percentage of this amount shall be set aside by the respective local
23 
government units for Disaster Risk Management. This fund shall likewise benefit
24 
ICCs/IPs within the territory of the local government unit: Provided, That the
25 
administrative and operational expenses of the Council shall also be taken from this
26 
share.
27 
SEC. 93. Mine wastes and tailings fees. - A semi-annual fee denoted as
28 
mine wastes and tailings fee is hereby imposed on all operating mining companies in
29 
accordance with the implementing rules and regulations. The mine wastes and tailings
30 
fee shall accrue to a fund to be used as support funds for the monitoring activities of
31 
the Council. The DENR Secretary is authorized to increase mine wastes and tailings
32 
fees, when public interest so requires.
42


1 
SEC. 94. Incentives. -Incentives that shall be given to the contractors shall
2 
be limited only to pollution control or mitigation devices.
3 
SEC. 95. Deposit of capita! and profits requirement. - As part of their
4 
demonstrated financial capacity, all large-scale mining companies or contractors are
5 
required to deposit their capital investment and profits in banks or financial institutions
6 
that are owned, managed and operated by the Philippine government.
7 
SEC. 96. General rule on profit repatriation. - Contractors with foreign
8 
financial assistance shall be allowed to repatriate their profits from mining projects
9 
that should not exceed fifty (50) percent of the total profits posted at the end of every
10 
fiscal year. Full disclosure of profits is required. The full repatriation of profits shall be
11 
allowed one year after the cessation of mining activities and the progressive
12 
rehabilitation of a mining area as specified in the mineral agreement of each
13 
contractor.
14 
The guidelines for Sections 95 and 96 shall be issued by the Bangko Sentralng
15 
Pilipinas and shall be furnished to the DENR, MGB, Council and all respective
16 
contractors in the industry.
17 
CHAPTER XI
18 
SAFETY AND ENVIRONMENTAL PROTECTION
19 
SEC. 97. Mines safety. - All contractors and permittees shall strictly comply
20 
with all the rules and regulations concerning the safety and sanitary upkeep of mines
21 
and mining development.
22
23 
Government personnel involved In the implementation of mines safety,
24 
occupational health and environmental rules and regulations shall be covered under
25 
Republic Act 7305 or the "Magna Carta of Public Health Workers".
26 
SEC. 98. Mine workers. - No person under sixteen (16) years of age shall
27 
be employed In any place of mining operations and no person under eighteen (18)
28 
years of age shall be employed In a mine.
29 
SEC. 99. Mine supervision. - All mining and quarrying operations that
30 
employ more than fifty (50) workers shall have at least one (1) licensed mining
31 
engineer with at least five (5) years of experience in mining operations, and one (1)
32 
registered foreman.
43


1 
SEC. 100. Safety of workers. - All mining companies shall provide
2 
safeguards to the health and well-being of workers. The Regional Office of the
3 
Department of Labor and Employment shall inspect all mining sites within their areas
4 
of jurisdiction to determine the conditions of workers. Denial of entry shall be
5 
punishable under this Act. Representatives of trade unions shall also have visitorial
6 
rights.
7 
SEC. 101. Mine inspection. - The regional directors of the MGB and the
8 
Council shall have jurisdiction over the safety inspection of all installations, surface or
9 
underground, in mining operations at reasonable hours of day or night and in a
10 
manner that shall not impede or obstruct work in progress of a contractor or permittee.
11 
Monitoring reports and recommendations of the MGB shall be submitted to the Council.
12 
Measures shall be taken to prevent gender-based violence in the mining sites.
13 
SEC. 102. Power to issue orders. - The regional directors of the MGB shall,
14 
in consultation with the Environmental Management Bureau (EMB), within such time
15 
as specified in the order, require the contractor to remedy any practice connected with
16 
mining, which is not in accordance with safety and anti-pollution laws and regulations.
17 
In case of imminent danger to life or property, the MGB Director may summarily
18 
suspend the mining operation until the danger is removed, or appropriate measures
19 
are taken by the contractor. Unreasonable delay to remove the danger or introduce
20 
the necessary improvements by the contractor shall be a cause for the cancellation of
21 
the mineral agreement.
22 
SEC. 103. Report of incidents and accidents. - In case of any incident or
23 
accident, causing or creating the danger of loss of life or serious physical injuries, the
24 
person in charge of operations shall immediately report the same to the regional office
25 
where the operations are situated. Failure to report the same without justifiable reason
26 
shall be cause for the imposition of administrative sanctions prescribed in the rules
27 
and regulations implementing this Act. Incidents of gender-based violence shall also
28 
be reported.
29 
SEC. 104. Environmental Protection. - Every contractor shall undertake an
30 
environmental protection and enhancement program covering the period of the
31 
mineral agreement or permit. Such environmental program shall be incorporated in
32 
the work program which the contractor or permittee shall submit as an accompanying
44


1 
document to the application for a mineral agreement or permit. The work program
2 
shall include not only plans relative to mining operations but also for the rehabilitation,
3 
regeneration, revegetation and reforestation of mineralized areas, slope stabilization
4 
of mined-out and tailings covered areas, aquaculture, watershed development and
5 
water conservation; and socioeconomic development.
6 
SEC. 105. Environmental Impact Assessment (EIA). - Except during the
7 
exploration period of a mineral agreement or an exploration permit, an environmental
8 
clearance certificate shall be required based on an environmental impact assessment
9 
and procedures under the Philippine Environmental Impact Assessment System,
10 
including Sections 26 and 27 of the Local Government Code of 1991 which require
11 
national agencies to maintain ecological balance, and prior consultation with the local
12 
government units, nongovernmental and people's organizations and other concerned
13 
sectors of the community: Provided, That a completed ecological profile of the
14 
proposed mining area shall also constitute part of the environmental impact
15 
assessment.
16 
POs and NGOs shall be allowed and encouraged to participate in ensuring that
17 
contractors or permittees shall observe all the requirements of environmental
18 
protection.
19 
SEC. 106. Environmental Insurance. - Contractors and mineral processing
20 
permit holders shall be obliged to execute an insurance contract as environmental
21 
assurance for each and every source of pollution or disaster, relative to the worst-case
22 
scenario costs, following accepted actuarial standards. Provided, That in no way shall
23 
this provision be construed as to remove or reduce the liability of the contractors or
24 
permit holders to compensate any damage caused by their operations; Provided,
25 
further. That the insurer shall be an accredited international company in good
26 
standing.
27 
Prior to the approval of the insurance contract, the DENR shall seek and
28 
consider the opinion of an independent expert as to the financial credibility of the
29 
insurer. This may also include climate risk insurance, which will protect against the
30 
loss of assets, livelihoods and even lives in the post-disaster period. It will also provide
31 
reliable and dignified post-disaster relief and incentives for preventing catastrophes.
45


1 
Risk insurance will also mitigate weather-affected public and private investments and
2 
economic development.
3 
SEC. 107. Calamity/ Climate and Human Rights Protection Fund. -
4 
Persons issued a mineral agreement shall deposit 1/12 of their gross income semi-
5 
annually in an interest-bearing account a common fund maintained by the national
6 
government which shall be used for responding to, or mitigating the effects of
7 
calamities, natural disasters and human rights violations including militarization,
8 
displacement, and forcible evacuation in any part of the country in relation to mining
9 
activities: Provided, That in no way shall this provision be construed to remove or
10 
reduce the liability of the contractors or permit holders to compensate any damage
11 
caused by their operations.
12 
This Fund shall include responses to other climate impacts to strengthen climate
13 
protection. These impacts, especially when vulnerable groups are affected, require
14 
immediate attention and should be prioritized by the fund.
15 
SEC. 108. Performance Bond. - The contractor shall put up a bond in an
16 
amount equivalent to fifty percent (50%) of the projected cost of rehabilitation as
17 
validated by independent studies.
18 
This amount shall be deposited in an interest-bearing account. The bond shall
19 
be forfeited in the event that the contractor shall fail or default in the rehabilitation or
20 
remediation of the mining area as included in the work plan of the contractor or
21 
abandons the mine at any time of its operations.
22 
SEC. 109. Final Mine Rehabilitation and Decommissioning Fund. -
23 
Contractors and permittees shall technically 
and biologically rehabilitate the
24 
excavated, mined-out, tailings-covered and disturbed areas to the condition of
25 
environmental safety, as provided in the implementing rules and regulations of this
26 
Act. A mine rehabilitation fund shall be created, based on the contractor's approved
27 
work program, and shall be deposited as a trust fund in a government depository bank
28 
and used for physical and social rehabilitation of areas and communities affected by
29 
mining activities and for research on the social, technical and preventive aspects of
30 
rehabilitation. Failure to fulfill the above obligation shall mean immediate suspension
31 
or closure of the mining activities of the contractor or permittee concerned.
46


1 
A Final Mine Rehabilitation and Decommissioning Fund (FMRDF) shail be
2 
established by each operating Contractor or Permit Holder to ensure that the full cost
3 
of the approved Final Mine Rehabilitation and Decommissioning Plan (FMRDP) is
4 
accrued before the end of the operating life of the mine- The FMRDF shall be deposited
5 
as trust fund in Government depository bank and shall be used solely for the
6 
implementation of the approved FMRDP.
7 
Annual cash provisions shall be made by contractors or permit holders to a
8 
FMRDF 3 based on the formula:
9 
Annual provision Cost of Implementing the Approved FMRIDP x Percentage
10 
Required per Table I
11 
Based on the expected mine life, the initial annual cash provision shall be made
12 
to the MRF Committee within sixty (60) days from the date of the FMRIDP's approval
13 
and every anniversary date thereafter; Provided, That, on application by the contractor
14 
or permit holder, the MIRF Committee may allow a later date for the payment of the
15 
first annual provision. Failure to fulfill the above obligation shall mean immediate
16 
suspension or closure of the mining activities of the contractor or permittee concerned.
17 
Mining firms are also mandated to immediately restore and replant areas that
18 
they have already finished excavating as they move on to other development sites:
19 
Provided, however, That if mining firms cannot do reforestation in their immediate
20 
area they could do the reforestation in other areas provided they comply with 100:1
21 
hectare ratio. Any mining firm found to have violated or have not complied with the
22 
foregoing mandatory provisions shall be held liable with the penalty of revocation of
23 
their mining permits and payment of a fine of not less than One Million Pesos (P
24 
1,000,000). The owners, officers and management employee of said mining firms shall
25 
also be held liable and be subject to imprisonment of not less than one year not more
26 
than three (3) years.
27 
Mining companies should not only restore affected areas to their previous
28 
condition, but rather should also improve these areas' climate resiliency in light of
29 
projections of worsening climate impacts. Further, mining companies shall include in
30 
their rehabilitation plan facilitating the transition to green economy models (GEMs).
31 
This will ensure that community members, including those whose livelihoods may
32 
have been affected by the mining operations and previous employees of the mining
47


1 
company, will have sustainable jobs even after closure of mining operations.
2 
Moreover, it will create green jobs that will contribute to the further rehabilitation
3 
and protection of the mine-degraded areas.
4 
SEC. 110. Progressive rehabilitation. - Contractors shall also conduct
5 
progressive rehabilitation activities.
6 
SEC. 111. Adoption of the precautionary principle. - When an activity
7 
related to mining raises threats of harm to public health or the environment,
8 
precautionary measures shall be taken proactively even if some cause and effect
9 
relationship have yet to be scientifically established of which the mining proponent
10 
and the MGB shall also be obliged to disclose publicly.
11 
SEC. 112. Adoption of "polluter pays"principle. - Polluters shall pay for
12 
the damage they cause to the environment. The amount of damages shall be
13 
determined by accredited independent consultants, to be chosen from a list and
14 
agreed upon by both the mining proponent and by the Council.
15 
SEC. 113. Tailings impoundment. - Tailings impoundments shall be built
16 
away from critical watershed drainage areas. Furthermore, it shall be ensured
17 
impoundments will not endanger critical watershed areas and low-lying valleys in the
18 
event of accidents under abnormal conditions. Tailing impoundments and dams shall
19 
meet the international standards for large dams.
20 
SEC. 114. Dumping of waste. — Dumping of waste or tailings in any body of
21 
water shall be prohibited. Provisions of Republic Act No. 9275, or the "Clean Water
22 
Act of 2004" and Republic Act No. 8749 or the "Philippine Clean Air Act of 1999" shall
23 
be strictly implemented.
24 
SEC. 115. Use of toxic chemicals and methods. - At all times, mining
25 
contractors shall use chemicals or reagents which would result to the least
26 
environmental and social destruction. The use of mercury and cyanide for the
27 
extraction of gold, silver and other minerals shall be prohibited. The use of blow
28 
torching to separate gold from amalgam shall likewise be prohibited.
29 
SEC. 116. Preservation of topsoil. - The removed topsoil, or the more
30 
productive horizons of the soil shall be preserved for other uses.
31 
SEC. 117. Priority use for water. - The National Water Resources Board
32 
(NWRB) shall investigate any existing use of water resources in the area whether or
48


1 
not covered by any existing water permit or registration. Upon determination of any
2 
existing use, the applicant shall procure the consent of all water users and/or the FPIC
3 
of ICCs/IPs with or without water permits within the same groundwater network or
4 
any downstream users of water resources. In ail instances, priority shall be given to
5 
use of water for domestic, municipal, and agricultural purposes. If potential negative
6 
impact on other water users is identified, the water permit shall not be granted. For
7 
water resources within the ancestral domain of indigenous peoples, no water permit
8 
shall be granted by the NWRB without the FPIC of the indigenous peoples.
9 
SEC. 118. Recycling of water resources. - Water used in mining operations
10 
shall be recycled. Mining contractors shall be required to provide for the methods and
11 
equipment for the recycling or reuse of water. Released contaminated water shall be
12 
treated accordingly to meet national standards. Released water must at least be
13 
equivalent in quality to the baseline water quality.
14 
SEC. 119. Water user’s fee. — A water user's fee that reflects the value of
15 
water to the country and community shall be imposed by the Council for water used
16 
in mining operations.
17 
Contractors shall pay the fee to the NWRB which shall use the same for
18 
monitoring and improvement of the affected waterways and systems and the
19 
mitigation of negative impacts thereon to ensure that communities shall have access
20 
to clean water.
21 
SEC. 120. Prohibition from using acid-generating waste rock for
22 
infrastructure. - The use of acid-generating waste rock to build roads, dams or
23 
other infrastructures is prohibited. The use of such materials shall only be used after
24 
treatment to neutralize the effect of acid mine drainage.
25 
SEC. 121. Establishment of a prediction and monitoring system. - The
26 
MGB shall establish a prediction and monitoring system to identify potential acid-
27 
producing materials and monitor their production of acid waste.
28 
SEC. 122. Avoidance of waterways. - Open pits, waste rock piles and
29 
tailings impoundments shall not be built near or on waterways to prevent contact and
30 
subsequent acid production and groundwater contamination.
31 
SEC. 123. Remining. - Remining shall be prioritized over the opening of new
32 
mines to maximize and recover the remaining minerals from the rejects or wastes of
49


1 
previous mines and mining operations, Provided, That remining operations shail foliow
2 
the processes, standards, parameters and guidelines set for mining operations in this
3 
Act.
4 
SEC. 124. Suits after the termination of contracts or projects. -
5 
Recognizing that the effects of mining may be seen or felt, actions relating to the
6 
health of affected communities or peoples, environmental degradation and other
7 
similar effects may be maintained against the project proponent and/or persons even
8 
after the mineral agreement or mining project has terminated.
9 
CHAPTER XII
10 
RESOLUTION OF CONFLICTS
11 
SEC. 125. Pane! of Arbitrators. - There shail be a panel of arbitrators in the
12 
regional offices of the DENR composed of three (3) members, two (2) of whom must
13 
be members of the Philippine Bar in good standing, and one a licensed mining engineer
14 
or a professional in a reiated fieid, and duly designated by the DENR Secretary as
15 
recommended by the MGB Director. Those designated as members of the panel shall
16 
serve as such in addition to their work in the DENR without receiving any additional
17 
compensation. As much as practicable, said members shall come from the different
18 
bureaus of the DENR in the region. The presiding officer thereof shall be selected by
19 
the drawing of lots. His tenure as presiding officer shall be on a yearly basis. The
20 
members of the panel shall perform their duties and obligations in hearing and
21 
deciding cases until their designation is withdrawn or revoked by the DENR Secretary.
22 
Within thirty (30) working days, after the submission of the case by the parties for
23 
decision, the panel shall have exclusive and original jurisdiction to hear and decide on
24 
the following:
25 
A. Questions involving compliance with the established technical guidelines and
26 
standards herein established, or those to be established by the implementing
27 
rules and regulations of this Act;
28 
B. Questions involving the compliance with technical procedures herein
29 
established, or those to be 
established by the impiementing rules and
30 
regulations; and,
31 
C. Other similar instances wherein the technological and technical expertise of the
32 
DENR shall be needed.
50


1 
Disputes involving real rights, contractual obligations and other causes of action
2 
that are not in any way connected with the abovementioned scope of jurisdiction shall
3 
be under the jurisdiction of the regular courts or as otherwise provided by other special
4 
laws: Provided, That disputes pending before the MGB and the DENR at the date of
5 
the effectivity of this Act shall undergo an immediate review within sixty (60) working
6 
days upon the passage of this Act to determine the cause of action. Those which are
7 
outside the technical expertise of the DENR or MGB shall be refiled with the
8 
appropriate court, without costs to the complainant or petitioner. All Decisions or
9 
orders to stop mining operations or to clean or rehabilitate mining operations and
10 
surrounding communities shall be immediately executory.
11 
SEC. 126. Appeal. - The decision or order of the panel of arbitrators may be
12 
appealed by the party not satisfied thereto to the Mines Adjudication Board within
13 
fifteen (15) days from receipt thereof, which must decide the case within thirty (30)
14 
days from submission thereof for decision.
15 
SEC. 127. Mines Adjudication Board (MAB). - The Mines Adjudication
16 
Board shall be composed of three (3) members. The DENR Secretary shall be the
17 
Chairperson while the MGB Director and the Undersecretary for Operations of the
18 
DENR shall serve as the members thereof. The Board shall have the following powers
19 
and functions:
20 
A. promulgate rules and regulations governing the hearing and disposition of
21 
cases before it, as well as those pertaining to its internal functions, and such
22 
rules and regulations as may be necessary to carry out its functions;
23 
B. administer oaths, summon parties to a controversy, issue subpoenas
24 
requiring the attendance and testimony of witnesses or the production of
25 
such books, papers, contracts, records, statement of accounts, agreements,
26 
and other documents as may be material to a just determination of the
27 
matter under investigation, and to testify in any investigation or hearing
28 
conducted in pursuance of this Act;
29 
C. conduct hearings on all matters within its jurisdiction, proceed to hear and
30 
determine the disputes in the absence of any party thereto who has been
31 
summoned or served with notice to appear, conduct its proceedings or any
32 
part thereof in public or in private, adjourn its hearings at any time and
51


1 
place, refer technical matters or accounts to an expert and to accept his
2 
report as evidence after hearing of the parties upon due notice, direct
3 
parties to be joined in or excluded from the proceedings, correct, amend,
4 
or waive any error, defect or irregularity, whether in substance or in form,
5 
give all such directions as it may deem necessary or expedient in the
6 
determination of the dispute before it, and dismiss the mining dispute as
7 
part thereof, where it is trivial or where further proceedings by the Board
8 
are not necessary or desirable:
9 
1. To hold any person in contempt, directly or indirectly, and impose
10 
appropriate penalties therefor; and
11 
2. To enjoin any or all acts involving or arising from any case
12 
pending before it which, if not restrained forthwith, may cause grave or
13 
irreparable damage to any of the parties to the case or seriously affect
14 
social and economic stability.
15 
In any proceeding before the Board, the rules of evidence prevailing in courts
16 
of law or equity shall not be controlling and it is the spirit and intention of this Act that
17 
shall govern. The Board shall use every and all reasonable means to ascertain the
18 
facts in each case speedily and objectively and without regard to technicalities of law
19 
or procedure, all in the interest of due process and social justice. In any proceeding
20 
before the Board, the parties may be represented by legal counsel. The findings of
21 
fact of the Board shall be conclusive and binding on the parties and its decision or
22 
order shall be final and executory.
23 
A petition for review by certiorari and question of law may be filed by the
24 
aggrieved party with the Court of Appeals within thirty (30) days from receipt of the
25 
order or decision of the Board.
26 
SEC. 128. Exceptions. - In no case, however, shall the following cases be
27 
subject to arbitration:
28 
A. Cases wherein a mining application was already dismissed or vetoed as
29 
provided under Sec. 41 of this Act;
30 
B. Cases which involve criminal liability;
31 
CHAPTER XIII
32 
ACCESS TO JUSTICE
52


1 
SEC. 129. Human Rights obligations. - Corporations shall respect, protect
2 
and promote the human rights of communities affected by mining, including the right
3 
to life, liberty and property, freedom of movement, right of public participation and
4 
the right to self-determination of indigenous cultural communities.
5 
SEC. 130. Violations of human rights. - Extrajudicial killing, torture,
6 
involuntary disappearance, forcible displacement of populations, setting up of
7 
checkpoints and imposition of toll fees which impede the freedom of movement within
8 
mineral areas, deprivation of food and water sources, vote-buying and bribery for the
9 
purpose of securing consent or endorsement for the mining project, and other
10 
analogous acts are violations of human rights. Violations of human rights by
11 
contractors shall cause the immediate cancellation of mineral agreements. The
12 
offending contractor, as well as corporations having the same directors and/or officers
13 
as of the offending contractor shall be perpetually disqualified from being granted a
14 
mineral agreement.
15 
All equipment and assets of the corporation or person shall be confiscated in
16 
favor of the State.
17 
SEC. 131. Use of paramilitary and military forces. - All mining companies
18 
are strictly prohibited from using or funding paramilitary groups. Using private,
19 
paramilitary and military forces to threaten and harass individuals and communities
20 
shall result in the automatic cancellation of the mineral agreement and the filing of
21 
appropriate civil, criminal and/or administrative charges.
22 
SEC. 132. Strategic Legal Action Against Public Participation (SLAPP).
23 
- SLAPP is any legal action, whether civil, criminal or administrative, filed to harass,
24 
vex, exert legal action or stifle legal recourses of citizens complaining against violations
25 
of this Act or enforcing the provisions of the Act, or exercising their freedom of
26 
assembly or right of public participation. On motion that alleges that the action is a
27 
SLAPP, the investigating prosecutor or court shall immediately determine within a
28 
period of thirty (30) days from filing thereof whether a legal action is a SLAPP and
29 
accordingly dismiss the same.
30 
SEC. 133. Indigents suit - Indigents shall be exempt from payment of any
31 
administrative or court fees, including docket fees for the filing of a case. Lawyers
53


1 
shall be provided by the Public Attorney's Office to pauper litigants in case they could
2 
not afford legal services.
3 
SEC. 134. Application of the customary laws of ICCs/IPs. - The
4 
contractor shall respect the customary laws of the ICCs/IPs and ensure that such laws
5 
shall be adhered to. Provided, That, in applying this provision in relation to other
6 
national laws, as well as in resolving disputes, the integrity of the ancestral domains,
7 
culture, values, practices, institutions, customary laws and traditions of the ICCs/IPs
8 
shall be given primacy. Interpretation of this provision shall be resolved in favor of
9 
ICCs/IPs.
10 
SEC. 135. Strict liability. - Mining corporations are required to observe
11 
extra-ordinary diligence in all its actions in relation to mining operations and are strictly
12 
liable for all damages that the mining operations might cause. In case of any actual
13 
damage, the burden of proof shall lie with the corporations.
14 
SEC. 136. Surmounting the corporate veil. - When the separate
15 
personality of the corporation from its shareholders is being invoked as defense in
16 
order to perpetuate a crime, fraud, evade liability, and conduct other machinations,
17 
the separate personality of the corporation shall be set aside. Civil, criminal and
18 
administrative actions may thus be filed directly against the members of the Board of
19 
Directors, officers and the individual stockholders. The corporation shall publish in its
20 
website and in the Securities and Exchange Commission the names and addresses of
21 
its officers in the Philippines anyone of whom is authorized to receive summons and
22 
other court processes on its behalf.
23 
SEC. 137. Citizen Suits. - For the purpose of enforcing the provisions of this
24 
Act and its implementing rules and regulations, any citizen may file appropriate civil,
25 
criminal and administrative suits against any of the following:
26 
A. Any person who violates or fails to comply with the provisions of this Act or its
27 
implementing rules and regulations;
28 
B. Any public officer with respect to orders, rules and regulations inconsistent with
29 
this
30 
Act;
31 
C. Any public officer who willfully or grossly neglects the performance of an act
32 
specifically enjoined as a duty by this Act or its rules and regulations; or abuses
54


1 
the authority in the performance of a duties under this Act or its implementing
2 
rules and regulations.
3 
The court shall exempt such action from the payment of filing fees, except fees
4 
for actions not capable of pecuniary estimation, and shall likewise, upon prima facie
5 
showing of non-enforcement or violation complained of, exempt the plaintiff from filing
6 
an injunction bond for the issuance of a preliminary injunction.
7 
CHAPTER XIV
8 
PENAL PROVISIONS
9 
SEC. 138. Grounds for the cancellation of mineral agreements and
10 
permits. - The following shall be ground for cancellation of mineral agreements and
11 
permits.
12 
A. Late or non-compliance with the requirements and prohibitions set forth in
13 
this Act, or in its implementing rules and regulations;
14 
B. Violation of the Terms and Conditions of Permits or Agreements. Any act or
15 
omission contrary to what is stipulated in the exploration permit, mining
16 
agreements and other contracts shall cause the immediate revocation and
17 
termination of the said permit or agreement. Likewise, any person who
18 
knowingly presents any false application, declaration, or evidence to the
19 
Government or publishes or causes the publication of any prospectus or
20 
other information containing any false statement relating to mines, mining
21 
operations or mineral agreements and permits shall, upon conviction, not
22 
only cause the immediate revocation and termination of the said permit or
23 
agreement, but shall also be penalized by a fine of not exceeding One
24 
Hundred Thousand Pesos (PI00,000.00).
25 
C. Human rights violations perpetrated by the contractor or any of its agents;
26 
D. Failure to pay the taxes and fees provided forth in this Act;
27 
E. Bribery, use of force, intimidation, threat, coercion of public officials and
28 
communities;
29 
F. Any act that shall create or contribute to conflicts between community
30 
members; and
31 
G. Other analogous acts. Provided, That violations of Chapter XI of this Act
32 
shall cause the immediate cancellation of mining permits, including but not
55


1 
limited to provisions of this Act, and the contractor shall be required to pay
2 
for the rehabilitation, restoration or clean-up of the impacts of such
3 
violations.
4 
Corporations, corporate directors or officers found guilty of the above
5 
enumeration shall be perpetually banned for participating directly or indirectly in any
6 
and all mining operations in the Philippines.
7 
SEC. 139. Illegal exploration. - Any person undertaking exploration work,
8 
upon conviction, shall be penalized by a fine of not exceeding Five Million pesos
9 
(P5,000,000.00).
10 
SEC. 140. Theft of minerals. - Any person, except traditional miners and
11 
small-scale panners, extracting minerals and disposing the same without a mining
12 
agreement, lease, permit, license; or steals minerals or ores or the products thereof
13 
from mines, mills or processing plants shall, upon conviction, be imprisoned from six
14 
(6) months to six (6) years or pay a fine from One Hundred thousand pesos (PlOO,
15 
000.00) to One Million pesos (PI, 000,000.00) or both, at the discretion of the
16 
appropriate court. In addition, the person shall be liable to pay damages and
17 
compensation for the minerals removed, extracted, and disposed of. In the case of
18 
associations, partnerships, or corporations, the president and each of the directors
19 
thereof shall be responsible for the acts committed by such association, corporation,
20 
or partnership.
21 
SEC. 141. Vitiation ofFPIC. - Any person found to have vitiated the consent
22 
of the ICCs/IPs through bribery, threat, force, and/or intimidation, or any other similar
23 
means, shall suffer the penalty of six (6) years and one (1) day to ten (10) years in
24 
prison, and a fine of at least two million pesos (P2,000,000.00). If the perpetrator is
25 
a government official, the penalty shall be eight (8) years and one (1) day to twelve
26 
(12) years imprisonment, and a fine of at least four million pesos (P4,000,000.00).
27 
He/she shall be perpetually prohibited from assuming public office, and shall be
28 
disqualified from receiving other benefits by virtue of his/her position in government.
29 
SEC. 142. Penalty for human rights violations. - Contractors or other
30 
persons who have committed human rights violations in connection with the mining
31 
operations shall be penalized with ten (10) to fourteen (14) years imprisonment and
32 
a fine of at least five million pesos (^5,000,000.00) and shall indemnify the victims.
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1 
SEC. 143. Abandonment - Contractors or permittees who shall abandon
2 
mines shall be perpetually banned or disqualified from directly or indirectly conducting
3 
mining operations. The ban or disqualification shall include the officers and directors
4 
of corporations that have abandoned mines.
5 
SEC. 144. Confiscation of equipment and property. - The equipment and
6 
property of contractors and permit holders violating this Act shall be forfeited in favor
7 
of the State.
8 
SEC. 145. Non-appiication of the corporate veil. -Any person violating
9 
the provisions of Commonwealth Act No. 108, as amended, or is found to have used
10 
the corporate structure to defeat the provisions of this Act shall suffer the penalty of
11 
five million pesos (P5,000,000.00) and a perpetual ban in the mining industry.
12 
SEC. 146. Unauthorized dealing, selling, or buying of gold. — Any
13 
person, partnership or corporation who shall sell, buy or in any manner deal gold from
14 
any miner or person without being duly authorized by the Bangko Sentral ng Pilipinas
15 
shall be punished as unauthorized dealing and shall be penalized in accordance with
16 
Section 138 of this Act.
17 
SEC. 147. Amendment to Section 27 of Republic Act 7076 or the
18 
Small-scale Mining Act. - Violations of the provisions of Republic Act 7076 or of
19 
the rules and regulations issued pursuant hereto shall be penalized with imprisonment
20 
of six years and one day to twelve years. The State shall confiscate and seize
21 
equipment, tools and instruments; effect immediate suspension or closure of the
22 
mining activities of the permittee concerned, and revoke the permit.
23
24 
SEC. 148. Confiscation of equipment and property. - The equipment and
25 
property of small- scale contractors and permit holders who violate this Act shall be
26 
forfeited in favor of the State.
27 
SEC. 149. Administrative Penalties for local government officials. -
28 
Local government officials who are administratively found to violate provisions of this
29 
Act, vis-a-vis the pertinent sections of Republic Act No. 7160 or the "Local Government
30 
Code of 1991" shall be removed from office and perpetually disqualified from holding
31 
any elective or appointive position in government, its divisions, subsidiaries and any
32 
government-owned and -controlled corporations.
57


1 
SEC. 150. Reinstatement of revoked permits. - After notice and hearing,
2 
revoked permits that have undergone due process may be reinstated: Provided, That
3 
it may only be reinstated once.
4 
CHAPTER XV
5 
TRANSITORY PROVISIONS
6 
SEC. 151. Moratorium, - There shall be a moratorium on all new mining
7 
activities until all the systems are in place for the proper implementation of this Act.
8 
SEC. 152. Existing Mining Permits, Contracts and Agreements. - The
9 
DENR shall conduct a review and audit of all mining permits, licenses and agreements
10 
for the purpose of determining: (i) whether their continuance shall be advantageous
11 
for the Government in accordance with the Mining Plan, and (ii) the level of compliance
12 
of the grantee or concessionaire with its statutory and contractual undertakings and
13 
obligations in accordance to this Act and other pertinent laws concerning
14 
environmentai protection and conservation. Mine workers and their families that may
15 
be displaced during the transition period shall receive livelihood support and job
16 
placements to be facilitated by the appropriate agencies of the State.
17 
SEC. 153. Review of mineral land classification. - A review of the current
18 
mineral land classification shall be conducted to determine the best livelihood and
19 
economic options for each area. No mining operations can start within mineral
20 
reservations unless finally determined to be in compliance with this Act.
21 
SEC. 154. The members of the panels of arbitrators and the provincial or city
22 
mining regulatory boards established under Republic Act No. 7942 shall hold-over their
23 
positions until replaced in accordance with provisions of this Act.
24 
CHAPTER XVI
25 
FINAL PROVISIONS
26 
SEC. 154. Appropriations. -The amount of One Hundred Billion Pesos
27 
(P100,000,000,000) is hereby appropriated for the proper functioning of the Bureau,
28 
the Council, and other bodies established under this Act of which half of the said
29 
amount shall be allotted for the baseline mineral exploration activities of the MGB.
30 
SEC. 155. Implementing Rules and Regulations. - Within ninety (90)
31 
days from the effectivity of this Act, the Secretary of the Department of Environment
32 
and Natural Resources shall, in consultation with representatives from the NCIP, LGUs,
58


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
NGOs, POs, indigenous peoples organizations, sectoral organizations, and other 
concerned government agencies, issue rules and regulations for the effective 
implementation of this Act.
SEC. 156. Separability Clause. - If any section or provision of this Act is 
held unconstitutional or invalid, the remaining sections or provisions with the 
provisions not affected thereby shall continue to be in full force and effect.
SEC. 157. Repealing Clause. - All laws, decrees, executive orders, rules and 
regulations, issuance or parts thereof inconsistent with this Act are hereby repealed 
or modified accordingly.
SEC. 158. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
59