1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
3rd Regular Session 
House Bill No. ________ 
Introduced by Representative ERIC GO YAP 
EXPLANATORY NOTE 
Gifted with abundant commercial and marketable metallic and non-metallic minerals, 
the Philippines has the beaming opportunity to source its widespread economic 
growth through the mining sector alone. The mining industry, comprising of large-
scale and small-scale sectors, contributed around 0.8 percent to the Philippines’ gross 
domestic product in 2018, according to the Mines and Geoscience Bureau (MGB). 
The Philippine Institute for Development Studies (PIDS), in its Policy Note No. 2020-07 
(August 2020), stated that small-scale mining is responsible for around 70 percent of 
the total mining outputs in the country albeit remaining informal and due to lack of 
government monitoring and regulation and persistence of black markets. Despite the 
enactment of Republic Act No. 7076 or the Small-scale Mining Act which mandates the 
designation of small-scale mining areas or Minahang Bayan which are areas where 
small-scale miners can operate legally, enabling the government to better monitor and 
regulate their extractive activities while helping promote the safety of these workers, 
protect the environment, and generate revenues for government, the informalities in 
the practice of small-scale mining remain prevalent.  
Such prevalence, according to the Philippine Institute for Development Studies (PIDS) 
Policy Note No. 2020-06 (April 2020) widely stems from the inherent difficulty to 
comply with the conditions set forth by RA 7076 intertwined with the confusion and 
social concerns that penetrate small-scale mining communities. Concerns on the 
decreasing number of Minahang Bayan despite numerous applications for its 
declaration also becomes pertinent to the increasing illegalities and informalities in 
the sector. 
In this regard,  after the multiple actions of the DENR to revise the Small-Scale Mining 
Act’s Implementing Rules and Regulations to recognize the rights small-scale miners 
and ensure environmental protection through its Department Orders, this Bill seeks 
to streamline the process and impose the proposed application time period of the 
stakeholders in the registration of small-scale miners as well as the DENR’s 
declaration of Minahang Bayan, subject to the preexisting conditions that are faced by 
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2 
 
 
the small-scale miners. The Bill aims to mitigate the confusion among stakeholders 
and at the same time ease the requirements and processes set forth in the small-scale 
miners’ registration and Minahang Bayan declaration, in order to increase the Minahang 
Bayan areas so that majority of mining areas are now equipped with the operations of 
small-scale mining monitoring of the government in pursuit of its thrust to better 
protect the environment and ramp up the mining sector.  
 
In view of the foregoing, approval of this bill is earnestly sought. 
 
 
 
 
HON. ERIC GO YAP 


1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
3rd Regular Session 
House Bill No. ________ 
Introduced by Representative ERIC GO YAP 
AN ACT 
STREAMLINING THE REGISTRATION AND LICENSING OF MINAHANG 
BAYAN 
AND 
ENSURING 
ENVIRONMENTAL 
PROTECTION 
AND 
RESPONSIBLE MINING IN THE UTILIZATION OF MINERAL RESOURCES, 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7076, OTHERWISE 
KNOWN AS "AN ACT CREATING A PEOPLE'S SMALL-SCALE MINING 
PROGRAM, AND FOR OTHER PURPOSES" 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: 
SECTION 1. A new Section 4 is hereby provided, to read as follows: 
“SECTION 4. SCOPE OF MINAHANG BAYAN. NO SMALL-
SCALE MINING SHALL BE UNDERTAKEN OUSTIDE A MINAHANG 
BAYAN AND THAT NO ENTITY SHALL ENGAGE IN SMALL-SCALE 
MINING WITHOUT A SMALL-SCALE MINING CONTRACT. 
LIKEWISE, NO PERSON SHALL WORK OR BE HIRED TO WORK IN 
SMALL-SCALE MINING AND OTHER SIMILAR OPERATIONS 
UNLESS REGISTERED WITH THE BOARD.” 
SECTION 2. Section 8 is hereby amended and renumbered, to read as follows: 
“SEC. 9. REGISTRATION AND LICENSING OF LOCAL 
FILIPINO 
MINERS. 
– 
ALL 
PERSONS 
UNDERTAKING 
OR 
INTENDING TO UNDERTAKE ARTISANAL, SMALL-SCALE, AND 
LARGE-SCALE MINING OPERATIONS WITHIN A DECLARED 
MINING AREA SHALL APPLY FOR AND LICENSE WITH THE 
BOARD ACCORDING TO THE MINING SECTOR OF THEIR 
MEMBERSHIP, AS THE CASE MAY BE, SUBJECT TO PAYMENT OF 
THE CORRESPONDING LICENSE APPLICATION FEE AND THE 
FOLLOWING REQUIREMENTS: 
A.
FILIPINO CITIZEN;
B.
LEGAL AGE;
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C. 
WITH ANY GOVERNMENT ISSUED ID; 
D. 
BARANGAY CLEARANCE AS PROOF OF RESIDENCY; 
AND 
E. 
CERTIFICATE OF ATTENDED SKILLS AND SAFETY 
TRAININGS CONDUCTED BY MGB RO CONCERNED. 
 
A LICENSE SHALL BE ISSUED TO THE APPLICANT FREE OF 
CHARGE UPON COMPLETION OF THE MANDATORY 8-HOUR 
OCCUPATIONAL SAFETY AND HEALTH ORIENTATION AND 
BASIC TRAINING ON ENVIRONMENTALLY SUSTAINABLE 
MINING PRACTICES. SUCH LICENSE SHALL BE VALID FOR AT 
LEAST THREE (3) YEARS, UNLESS SOONER REVOKED FOR 
VIOLATION OF MINING RULES AND REGULATIONS, AND 
RENEWABLE FOR THE SAME PERIOD AFTER COMPLETION OF 
THE ORIENTATION OF TRAINING REQUIREMENTS.” 
 
SEC. 5. A new Section 10 is hereby provided to read as follows: 
 
SEC. 10. PROCEDURE IN THE DECLARATION OF MINAHANG 
BAYAN. THE FOLLOWING PROCEDURE SHALL BE OBSERVED IN 
THE DECLARATION OF A MINAHANG BAYAN: 
 
A. THE PETITIONER SHALL FILE WITH THE BOARD A PETITION 
FOR DECLARATION OF AN AREA AS MINAHANG BAYAN, 
SPECIFYING THEREIN THE COVERAGE OF THE PROPOSED 
AREA DESCRIBED IN GEOGRAPHIC COORDINATES OF AT 
LEAST FOUR (4) CORNERS OF THE PROPOSED AREA(S) 
FOLLOWING THE MERIDIONAL BLOCK SYSTEM UNDER 
SECTION 11 HEREOF.  
 
WITHIN FIVE (5) DAYS UPON RECEIPT OF THE PETITION, THE 
BOARD SHALL FORWARD THE SAME TO THE FOLLOWING: 
 
1. REGIONAL OFFICE CONCERNED — SHALL CHECK IN ITS 
CONTROL MAP THE STATUS OF THE PROPOSED AREA 
VIS-À-VIS THE PRIOR AND EXISTING MINING RIGHTS 
AND APPLICATIONS, AS WELL AS AREAS CLOSED TO 
MINING APPLICATIONS PURSUANT TO THE EXISTING 
LAWS, RULES, AND REGULATIONS; 
 
2. NATIONAL COMMISSION ON INDIGENOUS PEOPLES 
(NCIP) — THE BOARD TO OBTAIN THE LIST OF ICCS/IPS 
LEGITIMATE LEADERS TO BE NOTIFIED ABOUT THE 
PETITION AND SHALL CONDUCT A CONSULTATION 
WITH THE ICCS/IPS CONCERNED; 
 
3. OTHER DENR SECTORS CONCERNED — FOR AREA 
STATUS/CLEARANCE; 


 
3 
 
 
 
4. PROVINCE/CITY GOVERNMENT CONCERNED — AREA 
STATUS/CLEARANCE (LOCAL ISSUANCES RE: CLOSED TO 
MINING, ZONING, AGRICULTURE/TOURISM, AMONG 
OTHERS); AND 
 
5. ALL SANGGUNIAN CONCERNED FOR THE PURPOSE OF 
THE PERTINENT PROVISIONS OF SECTIONS 26 AND 27 OF 
RA NO. 7160. AT LEAST THE MAJORITY OF THE 
SANGGUNIAN 
CONCERNED 
SHALL 
ENDORSE 
THE 
DECLARATION OF THE PROPOSED MINAHANG BAYAN. 
IN CASE OF AN OPPOSITION OF A SANGGUNIAN 
CONCERNED, SAID OPPOSITION SHALL BE FILED WITHIN 
FIFTEEN (15) DAYS FROM RECEIPT OF THE NOTICE, WITH 
THE BOARD FOR RESOLUTION; 
 
6. RESULT OF THE AREA STATUS/CLEARANCE FROM THE 
DENR SECTORS AND PROVINCE/CITY GOVERNMENT 
CONCERNED SHALL BE SUBMITTED TO THE BOARD 
WITHIN FIFTEEN (15) DAYS FROM RECEIPT OF THE 
PERTINENT PETITION. A COPY OF THE SUBMITTED AREA 
STATUS/CLEARANCE SHALL BE FURNISHED TO THE 
REGIONAL OFFICE CONCERNED BY THE BOARD. 
 
B. IN CASE THE AREA IS FOUND TO BE OPEN FOR DECLARATION 
AS MINAHANG BAYAN, THE REGIONAL OFFICE CONCERNED 
SHALL EVALUATE WITHIN TWENTY (20) DAYS WHETHER THE 
SAID AREA IS TECHNICALLY AND ECONOMICALLY VIABLE 
FOR SMALL-SCALE MINING, TAKING INTO CONSIDERATION, 
AMONG OTHERS, THE NECESSARY ALLOCATION FOR A 
MINERAL PROCESSING ZONE, IF MINERAL PROCESSING 
SHALL BE CONDUCTED, AND LIMITATIONS UNDER SECTION 
8 HEREOF. REPRESENTATIVE OF AFFECTED ICCS/IPS SHALL BE 
INVOLVED IN THE DETERMINATION OF THE AREA STATUS 
AND EVALUATION ASSESSMENT CONDUCTED BY THE 
REGIONAL OFFICE. 
 
WITHIN FIFTEEN (15) WORKING DAYS FROM THE CONDUCT 
OF THE AREA STATUS AND EVALUATION ASSESSMENT, THE 
REGIONAL OFFICE CONCERNED SHALL SUBMIT THE RESULT 
OF ITS EVALUATION TO THE BOARD, FOR CONSIDERATION. A 
COPY OF THE EVALUATION RESULT SHALL BE PROVIDED TO 
THE SECRETARY THRU THE DIRECTOR. 
 
C. IN CASE THE PROPOSED AREA IS SITUATED INSIDE AREAS 
CLOSED TO MINING APPLICATIONS, THE BOARD SHALL 
RETURN THE PETITION. 
 


 
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D. IN CASE THE PROPOSED AREA IS IN CONFLICT WITH 
EXISTING MINING PERMIT(S)/CONTRACT(S) OR MINING 
APPLICATION(S) 
FALLING 
WITHIN 
THE 
CATEGORIES 
ENUMERATED IN PARAGRAPHS (B) AND (C) OF SECTION 7 
HEREOF, THE BOARD SHALL FORMALLY NOTIFY THE 
HOLDER(S) OF MINING PERMIT(S)/CONTRACT(S) OR MINING 
APPLICANT(S) CONCERNED OF THE PROPOSED MINAHANG 
BAYAN, COPY FURNISHED THE PETITIONER. 
 
E. IN CASE THE PROPOSED AREA COVERS PRIVATE LAND(S) AS 
CITED IN PARAGRAPH (D) OF SECTION 7 HEREOF, THE BOARD 
SHALL FORMALLY NOTIFY THE LANDOWNER(S) OR LAWFUL 
POSSESSOR(S) CONCERNED OF THE PROPOSED MINAHANG 
BAYAN, COPY FURNISHED THE PETITIONER. 
 
F. UPON RECEIPT OF THE EVALUATION DONE BY THE MGB RO, 
THE BOARD SHALL PREPARE AND CAUSE THE POSTING OF 
THE NOTICE OF THE PROPOSED MINAHANG BAYAN ON THE 
BULLETIN BOARDS OF THE REGIONAL OFFICE CONCERNED 
AND OFFICES OF THE PROVINCIAL GOVERNOR AND 
MUNICIPAL/CITY MAYOR CONCERNED, FOR SEVEN (7) DAYS, 
COPY FURNISHED THE BARANGAY(S) CONCERNED. WHERE 
NECESSARY, THE NOTICE SHALL BE IN A LANGUAGE 
GENERALLY UNDERSTOOD IN THE LOCALITY CONCERNED 
WHERE IT IS POSTED. THE BOARD SHALL ALSO CAUSE THE 
PUBLICATION OF THE SAME NOTICE ONCE IN A NEWSPAPER 
OF LOCAL OR NATIONAL CIRCULATION. THE PETITIONER 
SHALL SHOULDER THE COST OF PUBLICATION. 
 
G. WITHIN FIVE (5) DAYS FROM THE LAST DATE OF POSTING 
AND PUBLICATION, THE AUTHORIZED OFFICER(S) OF THE 
OFFICE(S) CONCERNED AND THE PUBLISHER OF THE 
NEWSPAPER CONCERNED SHALL ISSUE A CERTIFICATION(S) 
THAT THE POSTING AND PUBLICATION REQUIREMENTS 
HAVE BEEN COMPLIED WITH. ANY ADVERSE CLAIM, PROTEST 
OR OPPOSITION SHALL BE FILED DIRECTLY, WITHIN TEN (10) 
DAYS FROM THE DATE OF PUBLICATION OR FROM THE LAST 
DATE OF POSTING, WITH THE BOARD FOR RESOLUTION. 
 
H. THE BOARD SHALL ACT ON ALL ADVERSE CLAIM, PROTEST 
OR OPPOSITION WITHIN FIFTEEN (15) DAYS AFTER IT IS 
SUBMITTED FOR RESOLUTION. THE DECISION OF THE BOARD 
MAY BE APPEALED TO THE SECRETARY WITHIN FIFTEEN (15) 
DAYS FROM RECEIPT OF THE DECISION OF THE BOARD. 
 
I. WHERE NO ADVERSE CLAIM, PROTEST OR OPPOSITION IS 
FILED WITHIN THE TEN (10)-DAY PRESCRIBED PERIOD, OR 
UPON FINAL RESOLUTION OF THE ADVERSE CLAIM, PROTEST 


 
5 
 
 
OR OPPOSITION IN FAVOR OF THE PETITIONER, THE BOARD 
SHALL FORWARD, WITHIN THREE (3) WORKING DAYS UPON 
RECEIPT OF ALL THE CERTIFICATES OF COMPLIANCE WITH 
THE PUBLICATION AND POSTING REQUIREMENTS, ALL THE 
PERTINENT DOCUMENTS FOR THE DECLARATION OF THE 
PROPOSED MINAHANG BAYAN TO THE SECRETARY THRU 
THE DIRECTOR, FOR REVIEW. THE DIRECTOR SHALL REVIEW 
THE SUBMITTED PERTINENT DOCUMENTS WITHIN FIFTEEN 
(15) WORKING DAYS UPON RECEIPT. 
 
J. IF THE ABOVE REQUIREMENTS ARE FULLY COMPLIED WITH, 
THE SECRETARY SHALL CLEAR THE DECLARATION OF THE 
PROPOSED MINAHANG BAYAN. 
 
K. THE BOARD SHALL DECLARE THE AREA AS MINAHANG BAYAN 
THRU A RESOLUTION WITHIN FIFTEEN (15) WORKING DAYS 
FROM RECEIPT OF THE CLEARANCE FROM THE SECRETARY 
 
L. THE BOARD SHALL CAUSE THE POSTING OF THE NOTICE OF 
DECLARATION OF THE MINAHANG BAYAN ON THE BULLETIN 
BOARDS OF THE REGIONAL OFFICE CONCERNED AND 
OFFICES OF THE PROVINCIAL GOVERNOR, MUNICIPAL/CITY 
MAYOR CONCERNED, AND THE BARANGAY(S) CONCERNED. 
WHERE NECESSARY, THE NOTICE OF DECLARATION SHALL BE 
IN 
A 
LANGUAGE 
GENERALLY 
UNDERSTOOD 
IN 
THE 
LOCALITY CONCERNED WHERE IT IS POSTED. 
 
M. THE BOARD MAY ACCEPT APPLICATIONS FOR SMALL-SCALE 
MINING 
CONTRACTS 
AFTER 
THE 
POSTING 
OF 
THE 
DECLARATION: PROVIDED, THAT FOR MINAHANG BAYAN 
WITHIN AREAS SUBJECT OF SECTION 7(E) HEREOF, ONLY 
APPLICATIONS BY SMALL-SCALE MINERS WHOSE MEMBERS 
ARE PART OF THE ICC THEREIN SHALL BE ACCEPTED WITHIN 
THE FIRST THIRTY (30) DAYS: PROVIDED, FURTHER, THAT FOR 
MINAHANG BAYAN OUTSIDE AREAS SUBJECT OF SECTION 
7(E) HEREOF, ONLY APPLICATIONS BY SMALL-SCALE MINERS 
RESIDING 
IN 
THE 
PROVINCE 
OR 
CITY 
WHERE 
THE 
MINAHANG BAYAN IS LOCATED SHALL BE ACCEPTED 
WITHIN THE FIRST THIRTY (30) DAYS. 
 
 
SEC. 5. A new Section 10 is hereby provided to read as follows: 
 
SECTION 10. APPLICATION TO ENTER INTO A SMALL-SCALE MINING 
CONTRACT. LICENSED SMALL-SCALE MINERS WITH THE CAPACITY 
TO CONTRACT, SUBJECT TO THE CONDITIONS UNDER SECTION 9 


 
6 
 
 
HEREOF, SHALL FILE WITH THE BOARD A SMALL-SCALE MINING 
CONTRACT APPLICATION WITHIN AN AREA SITUATED IN A 
MINAHANG 
BAYAN 
TOGETHER 
WITH 
THE 
FOLLOWING 
MANDATORY REQUIREMENTS IN FIVE (5) COPIES: 
 
A. DULY ACCOMPLISHED APPLICATION FORM (FORM NO. SSM-
01); 
 
B. APPLICATION 
FEE 
OF 
PHP10,000.00 
PAYABLE 
TO 
THE 
PROVINCIAL/CITY GOVERNMENT CONCERNED, WITHOUT 
PREJUDICE TO OTHER FEES AND CHARGES THAT MAY BE 
IMPOSED BY THE LOCAL GOVERNMENT CONCERNED BY WAY 
OF AN ORDINANCE; 
 
C. FOR 
INDIVIDUAL—CERTIFIED 
PHOTOCOPY 
OF 
DTI 
REGISTRATION; 
 
D. FOR ASSOCIATION OR COOPERATIVE—PHOTOCOPY OF 
ARTICLES OF ASSOCIATION/ COOPERATION, BY-LAWS, AND 
CERTIFICATE OF REGISTRATION, DULY CERTIFIED BY THE 
SECURITIES 
AND 
EXCHANGE 
COMMISSION 
(SEC) 
OR 
AUTHORIZED GOVERNMENT AGENCY(IES) CONCERNED, OR 
CERTIFICATION 
FROM 
THE 
BUREAU/REGIONAL 
OFFICE 
CONCERNED 
THAT 
SAID 
DOCUMENTS 
ARE 
DULY 
REGISTERED IN THAT OFFICE; 
 
E. SKETCH PLAN AT A CONVENIENT SCALE WITH LOCATION 
MAP OF THE PROPOSED SMALL-SCALE MINING CONTRACT 
AREA 
SHOWING 
ITS 
GEOGRAPHIC 
COORDINATES/MERIDIONAL BLOCK(S) AND BOUNDARIES IN 
RELATION 
TO 
THE 
MINAHANG 
BAYAN, 
MAJOR 
ENVIRONMENTAL FEATURES AND OTHER PROJECTS USING A 
NATIONAL 
MAPPING 
AND 
RESOURCES 
INFORMATION 
AUTHORITY (NAMRIA) TOPOGRAPHIC MAP IN A SCALE OF 
1:10,000 DULY PREPARED, SIGNED AND SEALED BY A 
DEPUTIZED GEODETIC ENGINEER; AND 
 
F. PROPOSED TWO (2)-YEAR WORK PROGRAM (FORM NO. SSM-
02). 
 
THE AUTHORIZED CAPITALIZATION FOR AN APPLICATION FOR 
SSMC SHALL BE TEN MILLION PESOS (PHP 10,000,000.00) WITH 
MINIMUM PAID UP CAPITAL OF SIX HUNDRED TWENTY-FIVE 
THOUSAND PESOS (PHP625,000.00). 
 
WITHIN THREE (3) WORKING DAYS UPON RECEIPT OF THE 
APPLICATION, 
THE 
BOARD 
SHALL 
CHECK 
THROUGH 
THE 


 
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MINAHANG BAYAN CONTROL MAP IF THE AREA IS FREE FROM 
CONFLICT AND INFORM THE APPLICANT ABOUT THE STATUS OF 
THE AREA. IN CASE THE APPLIED AREA IS IN CONFLICT TOTALLY, 
THE BOARD SHALL RETURN THE APPLICATION. IN CASE THE 
APPLIED AREA IS PARTIALLY IN CONFLICT, THE BOARD SHALL 
RETURN THE APPLICATION FOR REVISION AND RESUBMISSION 
WITHIN FIFTEEN (15) WORKING DAYS: PROVIDED, THAT ONLY ONE 
(1) PEOPLE'S SMALL-SCALE MINING CONTRACT MAY BE AWARDED 
AT ANY ONE TIME TO A SMALL-SCALE MINING CONTRACTOR IN 
THE ENTIRE COUNTRY. 
 
THE CERTIFICATE OF NON-OVERLAP FOR AREAS WITHOUT ICCS/IPS 
SHALL BE SECURED BY THE SMALL-SCALE MINING CONTRACT 
APPLICATION ACCORDANCE WITH THE EXISTING NCIP RULES AND 
REGULATIONS AND SHALL BE SUBMITTED TO THE BOARD SEVEN 
(7) DAYS FROM RECEIPT OF THE CERTIFICATE. 
 
THE CERTIFICATION PRECONDITION SHALL BE SECURED BY THE 
SMALL-SCALE MINING CONTRACT APPLICANT IN ACCORDANCE 
WITH THE EXISTING NCIP RULES AND REGULATIONS AND SHALL 
BE SUBMITTED TO THE BOARD SEVEN (7) DAYS FROM RECEIPT OF 
THE CERTIFICATE. 
 
IN CASE THE CERTIFICATION PRECONDITION IS NOT ISSUED 
WITHIN THE NCIP'S PRESCRIBED PERIODS, THE SMALL-SCALE 
MINING CONTRACT APPLICANT SHALL SUBMIT THE NCIP'S FIELD-
BASED INVESTIGATION REPORT/VALIDATION REPORT FOR THE 
APPLIED AREA AND THE MEMORANDUM OF AGREEMENT WITH 
THE ICCS/IPS CONCERNED. 
 
THE SMALL-SCALE MINING CONTRACT APPLICANT SHALL SECURE 
AN ENVIRONMENTAL COMPLIANCE CERTIFICATE (ECC), WHICH 
SHALL BE SUBMITTED TO THE BOARD PRIOR TO THE ISSUANCE OF 
THE SMALL-SCALE MINING CONTRACT. 
 
THE POTENTIAL ENVIRONMENTAL IMPACT MANAGEMENT PLAN 
(PEIMP) 
(FORM 
NO. 
SSM-03), 
COMMUNITY 
DEVELOPMENT 
MANAGEMENT PLAN (CDMP) (FORM NO. SSM-04) AND ANNUAL 
SAFETY AND HEALTH PROGRAM (ASHP) (FORM NO. SSM-05) SHALL 
BE SUBMITTED TO THE BOARD, FOR APPROVAL WITHIN FIFTEEN 
(15) WORKING DAYS FROM RECEIPT. 
 
 
 
SEC. 7. Section 9 of R.A. 7076 is hereby, renumbered, amended, and integrated, to 
read as follows: 
 
[Section 9. Award of People's Small-scale Mining Contracts. – A people's 
small-scale mining contract may be awarded by the Board to small-scale miners 


 
8 
 
 
who have voluntarily organized and have duly registered with the appropriate 
government agency as an individual miner or cooperative; Provided, that only 
one (1) people's small-scale mining contract may be awarded at any one time 
to a small-scale mining operations within one (1) year from the date of award: 
provided, further, that priority shall be given or city where the small-scale 
mining area is located. 
 
Applications for a contract shall be subject to a reasonable fee to be paid to the 
Department of Environment and Natural Resources regional office having 
jurisdiction over the area.] 
 
SECTION 
11. 
AWARD 
OF 
PEOPLE'S 
SMALL-SCALE 
MINING 
CONTRACT. WITHIN FIFTEEN (15) WORKING DAYS UPON RECEIPT 
OF ALL THE PERTINENT REQUIREMENTS, THE BOARD SHALL 
AWARD THE SMALL-SCALE MINING CONTRACT. A COPY OF THE 
SMALL-SCALE 
MINING 
CONTRACT, 
TOGETHER 
WITH 
ITS 
SUPPORTING DOCUMENTS, SHALL BE FORWARDED TO THE 
DIRECTOR FOR INFORMATION AND RECORD WITHIN THREE (3) 
WORKING DAYS AFTER THE REGISTRATION OF THE CONTRACT 
WITH THE BOARD: PROVIDED, THAT THE SMALL-SCALE MINING 
CONTRACTOR SHALL START MINING OPERATIONS WITHIN ONE (1) 
YEAR FROM THE DATE OF AWARD. 
 
SEC. 8. Section 13 of R.A. 7076 is hereby, renumbered, amended, and integrated, to 
read as follows: 
 
[Section 13. Terms and Conditions of the Contract. – A contract shall have a 
term of two (2) years, renewable subject to verification by the Board for like 
periods as long as the contractor complies with the provisions set forth in this 
Act, and confers upon the contractor the right to mine within the contract area: 
provided, that the holder of a small-scale mining contract shall have the 
following duties and obligations: 
 
(a) Undertake mining activities only in accordance with a mining plan duly 
approved by the Board; 
 
(b) Abide by the Mines and Geosciences Bureau and the small-scale Mining 
Safety Rules and Regulations; 
 
(c) Comply with his obligations to the holder of an existing mining right; 
 
(d) Pay all taxes, royalties or government production share as are now or may 
hereafter be provided by law; 
 
(e) Comply with pertinent rules and regulations on environmental protection 
and conservation, particularly those on tree-cutting mineral-processing and 
pollution control; 


 
9 
 
 
 
(f) File under oath at the end of each month a detailed production and financial 
report to the Board; and 
 
(g) Assume responsibility for the safety of persons working in the mines.] 
 
 
SECTION 14. TERMS AND CONDITIONS OF SMALL-SCALE MINING 
CONTRACT. THE FOLLOWING TERMS AND CONDITIONS SHALL BE 
INCORPORATED IN THE SMALL-SCALE MINING CONTRACT: 
 
A. THE SMALL-SCALE MINING CONTRACT SHALL HAVE A TERM 
OF TWO (2) YEARS, RENEWABLE FOR LIKE PERIODS: 
PROVIDED, 
(I) 
THAT 
THE 
SMALL-SCALE 
MINING 
CONTRACTOR HAS COMPLIED WITH THE TERMS AND 
CONDITIONS OF THE SMALL-SCALE MINING CONTRACT AND 
THE PROVISIONS OF RA NO. 7076 AS VERIFIED BY THE BOARD; 
(II) THAT THE APPLICATION FOR RENEWAL SHALL BE FILED 
NOT LATER THAN SIXTY (60) DAYS PRIOR TO THE EXPIRY OF 
THE SMALL-SCALE MINING CONTRACT; (III) THAT THE 
APPLICATION FOR RENEWAL SHALL BE ACCOMPANIED BY 
THE FOLLOWING: 
 
1. DULY ACCOMPLISHED APPLICATION FORM (REFER TO 
FORM NO. SSM-01); 
 
2. PROOF 
OF 
PAYMENT 
OF 
APPLICATION 
FEE 
OF 
PHP10,000.00, 
PAYABLE 
TO 
THE 
PROVINCIAL/CITY 
GOVERNMENT CONCERNED; 
 
3. CERTIFICATION 
FROM 
THE 
BOARD 
AS 
TO 
THE 
COMPLIANCE WITH THE TERMS AND CONDITIONS OF 
THE SMALL-SCALE MINING CONTRACT, WHICH SHALL 
BE ISSUED NOT EARLIER THAN SIXTY (60) DAYS PRIOR TO 
THE 
EXPIRATION 
OF 
THE 
SMALL-SCALE 
MINING 
CONTRACT; 
 
4. PROPOSED TWO (2)-YEAR WORK PROGRAM COVERING 
THE RENEWAL PERIOD; AND 
 
5. THE 
POTENTIAL 
ENVIRONMENTAL 
IMPACT 
MANAGEMENT 
PLAN 
(PEIMP), 
COMMUNITY 
DEVELOPMENT 
MANAGEMENT 
PLAN (CDMP) 
AND 
ANNUAL SAFETY AND HEALTH PROGRAM (ASHP) SHALL 
BE APPROVED BY THE BOARD WITHIN FIFTEEN (15) DAYS 
FROM RECEIPT; 
 


 
10 
 
 
B. THE SMALL-SCALE MINING CONTRACT CONFERS UPON THE 
SMALL-SCALE 
MINING 
CONTRACTOR 
THE 
RIGHT 
TO 
EXTRACT AND DISPOSE OF THE AUTHORIZED MINERALS 
WITHIN THE SMALL-SCALE MINING CONTRACT AREA: 
PROVIDED, THAT THE EXTRACTED ORE SHALL NOT EXCEED 
FIFTY THOUSAND (50,000) METRIC TONS ANNUALLY; 
 
C. UPDATED GENERAL INFORMATION SHEET OR GIS; 
 
D. THE SMALL-SCALE MINING CONTRACTOR SHALL: 
 
1. BEFORE THE CONDUCT OF MINING OPERATIONS: 
 
I. ESTABLISH SURVEY MONUMENT OF THE AREA; 
II. HAVE AN APPROVED PEIMP, CDMP AND ASHP; 
 
2. CONDUCT SMALL-SCALE MINING IN ACCORDANCE 
WITH THE TWO (2)-YEAR WORK PROGRAM, PEIMP, ASHP 
AND CDMP, DULY APPROVED BY THE BOARD, AND THE 
ECC; 
 
3. ANY 
APPLICANT 
FOR 
SSMC 
WHO 
IS 
NOT 
THE 
PETITIONER SHALL REIMBURSE THE LATTER THE COST 
OF THE EXPENSES FOR THE DECLARATION OF THE 
MINAHANG BAYAN PROPORTIONATE TO THE APPLIED 
CONTRACT AREA; 
 
4. NOT UNDERTAKE HYDRAULICKING OR COMPRESSOR 
MINING AT ANY STAGE OF SMALL-SCALE MINING 
WITHIN THE SMALL-SCALE MINING CONTRACT AREA; 
 
5. NOT USE MERCURY IN ANY PHASE OF SMALL-SCALE 
MINING; 
 
6. CONFINE SMALL-SCALE MINING TO ITS SMALL-SCALE 
MINING CONTRACT AREA; 
 
7. ABIDE BY THE APPROPRIATE AND UP-TO-DATE SMALL-
SCALE MINE SAFETY RULES AND REGULATIONS; 
 
8. COMPLY WITH ITS OBLIGATIONS TO THE HOLDER OF A 
MINING PERMIT/CONTRACT, IF APPLICABLE; 
 
9. SELL ITS PRODUCTION OUTPUTS TO THE BANGKO 
SENTRAL NG PILIPINAS (BSP) OR THRU ITS ACCREDITED 
TRADERS FOR EVENTUAL SALE TO THE BSP, IN THE CASE 
OF GOLD PRODUCTION; 


 
11 
 
 
 
10. PAY ALL TAXES, ROYALTIES AND/OR GOVERNMENT 
PRODUCTION SHARE AS PROVIDED BY LAW AT THE TIME 
THE SMALL-SCALE MINING CONTRACT IS AWARDED 
UNLESS EXEMPTED; 
 
11. COMPLY WITH PERTINENT RULES AND REGULATIONS 
ON 
ENVIRONMENTAL 
PROTECTION 
AND 
CONSERVATION, PARTICULARLY THOSE ON TREE-
CUTTING, MINERAL PROCESSING AND POLLUTION 
CONTROL; 
 
12. SUBMIT UNDER OATH AT THE END OF EACH QUARTER A 
DETAILED 
PRODUCTION 
REPORT 
AND 
ANNUAL 
FINANCIAL REPORT TO THE BOARD; AND 
 
13. ASSUME RESPONSIBILITY FOR THE SAFETY OF PERSONS 
WORKING IN THE MINES AND COMPLIANCE WITH RA 
NO. 9231, AN ACT PROVIDING FOR THE ELIMINATION OF 
THE WORST FORMS OF CHILD LABOR AND AFFORDING 
STRONGER PROTECTION FOR THE WORKING CHILD, 
AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 7610, 
AS AMENDED, OTHERWISE KNOWN AS THE "SPECIAL 
PROTECTION OF CHILDREN AGAINST CHILD ABUSE, 
EXPLOITATION AND DISCRIMINATION ACT". 
 
 
SEC. 22. A new Section 23 is hereby provided, to read as follows: 
 
SEC. 
23. 
CANCELLATION 
OF 
SMALL-SCALE 
MINING 
CONTRACTS/MPL. A SMALL-SCALE MINING CONTRACT/MINERAL 
PROCESSOR'S LICENSE MAY BE CANCELLED, AFTER DUE 
PROCESS, ON THE FOLLOWING GROUNDS: 
 
A. GROSS VIOLATION OF THE TERMS AND CONDITIONS OF 
THE 
SMALL-SCALE 
MINING 
CONTRACT/MINERAL 
PROCESSOR'S LICENSE; 
 
B. FAILURE TO OPERATE WITHIN ONE (1) YEAR AFTER THE 
APPROVAL OF THE SSMC/MPL; 
 
C. NON-PAYMENT OF FEES, TAXES, ROYALTIES, AND/OR 
GOVERNMENT PRODUCTION SHARE IN ACCORDANCE 
WITH THIS ADMINISTRATIVE ORDER AND OTHER 
APPLICABLE LAWS, RULES, AND REGULATIONS FOR TWO 
(2) CONSECUTIVE YEARS; 
 


 
12 
 
 
D. ABANDONMENT 
OF 
THE 
SMALL-SCALE 
MINING 
CONTRACT AREA OR MINERAL PROCESSING PLANT FOR 
ONE (1) YEAR BY THE SMALL-SCALE MINER OR MINERAL 
PROCESSOR, RESPECTIVELY; 
 
E. ANY 
MATERIAL 
MISREPRESENTATION 
IN 
ANY 
STATEMENT MADE IN THE APPLICATION OR THOSE 
MADE LATER IN SUPPORT THEREOF; 
 
F. WHEN NATIONAL INTEREST AND PUBLIC WELFARE SO 
REQUIRE OR FOR ENVIRONMENTAL PROTECTION OR 
ECOLOGICAL REASONS; 
 
G. WHEN THE MINAHANG BAYAN HAS BEEN REVERTED 
PURSUANT TO SECTION 37 HEREOF; 
 
H. VIOLATION OF ANY PROVISION OF RA NO. 7076 AND THIS 
ADMINISTRATIVE ORDER, AND OTHER APPLICABLE 
LAWS, RULES, AND REGULATION; AND 
 
I. VIOLATION OF THE PERTINENT PROVISIONS OF DAO 99-
32 
ALSO 
KNOWN 
AS 
"POLICY 
GUIDELINES 
AND 
STANDARDS FOR MINE WASTES AND MILL TAILINGS 
MANAGEMENT" AND SECTION 29 HEREOF. 
 
THE 
FOREGOING 
PROVISIONS 
NOTWITHSTANDING, 
THE 
CANCELLATION 
OF 
A 
SMALL-SCALE 
MINING 
CONTRACT/MINERAL 
PROCESSOR'S 
LICENSE 
SHALL 
NOT 
RELEASE THE SMALL-SCALE MINER/MINERAL PROCESSOR FROM 
ANY AND ALL OBLIGATIONS HE/SHE/IT MAY HAVE. 
 
WHEN SMALL-SCALE MINING CONTRACTS ARE CANCELLED FOR 
ANY OF THE ABOVE-MENTIONED GROUNDS, EXCEPT FOR 
ITEMSFAND G, THE SECRETARY, THRU THE BOARD, MAY IMPOSE 
FINES OF AN AMOUNT NOT LESS THAN TWENTY THOUSAND 
PESOS (PHP20,000.00) BUT NOT MORE THAN ONE HUNDRED 
THOUSAND PESOS (PHP100,000.00). NON-PAYMENT OF THE FINE 
IMPOSED 
SHALL 
RENDER 
THE 
SMALL-SCALE 
MINING 
CONTRACTOR INELIGIBLE FOR OTHER SMALL-SCALE MINING 
CONTRACTS. 
 
SEC. 23. A new Section 24 is hereby provided, to read as follows: 
 
SECTION 24. REVERSION OF MINAHANG BAYAN. THE SECRETARY, 
UPON 
RECOMMENDATION 
OF 
THE 
DIRECTOR, 
SHALL 
WITHDRAW THE STATUS OF THE PEOPLE'S SMALL-SCALE 
MINING AREA WHEN IT CAN NO LONGER BE FEASIBLY 
OPERATED ON A SMALL-SCALE MINING BASIS OR WHEN THE 


 
13 
 
 
SAFETY, 
HEALTH 
AND 
ENVIRONMENTAL 
CONDITIONS 
WARRANT THAT THE SAME SHALL REVERT TO THE STATE FOR 
PROPER DISPOSITION. 
 
WHEN THE GOVERNMENT, THRU THE BOARD, DETERMINES 
THAT A MINAHANG BAYAN CAN NO LONGER BE LEGALLY OR 
FEASIBLY OPERATED ON A SMALL-SCALE BASIS, THE SECRETARY, 
THRU THE DIRECTOR, SHALL PROVIDE WRITTEN NOTICE TO ALL 
SMALL-SCALE MINING CONTRACTORS WITHIN THE AREA. 
 
SEC. 24. A new Section 25 is hereby provided, to read as follows: 
 
SEC 25. ASSISTANCE TO SMALL-SCALE MINERS. THE DEPARTMENT, 
IN 
COORDINATION 
WITH 
THE 
BOARD 
AND 
OTHER 
GOVERNMENT AGENCIES CONCERNED, MAY EXTEND ANY OF 
THE FOLLOWING ASSISTANCE TO SMALL-SCALE MINERS: 
 
A. ORGANIZATION OF SMALL-SCALE MINERS INTO 
COOPERATIVES OR ASSOCIATIONS; 
 
B. TECHNICAL AND FINANCIAL ASSISTANCE AND 
SOCIAL SERVICES; 
 
C. PROCESSING AND MARKETING ASSISTANCE; AND 
 
D. GENERATION 
OF 
ANCILLARY 
LIVELIHOOD 
ACTIVITIES 
 
SEC. 25. A new Section 26 is hereby provided, to read as follows: 
 
SEC 26. PENAL SANCTIONS. VIOLATION ON THE PART OF THE 
MINING OPERATOR AND ITS OFFICERS OF ANY OF THE 
PROVISIONS OF THIS ACT, AFTER CONVICTION, SHALL BE 
PENALIZED WITH IMPRISONMENT OF NOT LESS THAN SIX (6) 
YEARS, AND SHALL INCLUDE THE CONFISCATSION AND SEIZURE 
BY THE BOARD OF THE EQUIPMENT, TOOLS AND CONVEYANCE 
USED IN THE COMMISSION OF THE OFFENSE. 
 
 
FAILURE ON THE PART OF THE BOARD OR ITS OFFICERS OR 
PERSONNEL TO COMPLY WITH THE MANDATED REGLEMENTARY 
PERIOD FOR PROCESSING OF ANY APPLICATION SUBMITTED 
HEREIN PROVIDED SHALL HOLD THE OFFICER OR PERSONNEL 
ADMINISTRATIVELY LIABLE WITH A PENALTY OF SUSPENSION 
OR FINE, OR BOTH, WHICH SHALL BE SUBJECT TO THE COURT’S 
DISCRETION, WITHOUT PREJUDICE TO ANY OTHER LEGAL 
RECOURSE OF THE AGGRIEVED PARTY UNDER OTHER RELEVANT 
APPLICABLE LAWS, RULES, REGULATIONS. 


 
14 
 
 
 
SEC. 26. A new Section 27 is hereby provided, to read as follows: 
 
SECTION 27. ACTUAL OCCUPATION BY SMALL-SCALE MINERS. ALL 
DECLARED MINAHANG BAYAN SHALL BE RECOGNIZED UNLESS 
REVERTED. ALL VALID AND EXISTING SSMC/MPL SHALL BE 
RECOGNIZED UNTIL THEIR EXPIRATION. RENEWAL OF SSMC 
AND MPL SHALL BE GOVERNED BY THE PROVISIONS OF RA NO. 
7076 AND THIS ADMINISTRATIVE ORDER. 
 
EXISTING 
SMALL-SCALE 
PROCESSING 
MILLS/PLANTS 
NOT 
SITUATED IN THE DESIGNATED MPZ SHALL BE RELOCATED 
WITHIN ONE YEAR UPON THE EFFECTIVITY OF THIS ORDER, 
UNLESS 
SUCH 
LOCATION 
OF 
EXISTING 
SMALL-SCALE 
PROCESSING 
MILLS/PLANTS 
IS 
DESIGNATED 
AS 
MPZ. 
OTHERWISE, THE BOARD MAY CANCEL, REVOKE OR SUSPEND 
THE MPL. 
 
SEC. 27. Implementing Rules and Regulations. - The DENR Secretary shall, in 
consultation with the DILG, DOLE, DTI and small-scale mining stakeholders, 
promulgate the rules and regulations to effectively implement the provisions 
within ninety (90) days from the effectivity of this Act. Priority shall be given to 
such rules and regulations of the small-scale miners.  
 
SEC. 28. Repealing Clause. - All laws, decrees, issuances, rules, and regulations 
inconsistent with the provisions of this Act are hereby repealed or modified 
accordingly. 
 
SEC. 29. Separability Clause. - If any of the sections or provisions of this Act is held 
invalid, all other provisions not affected thereby shall remain valid. 
 
SEC. 30. Effectivity. - This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in a national newspaper of general circulation. 
 
Approved,