u
NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S.B. No. 376
r' . ‘
•22 JUL 12 All :46
Rl-CEiVTD B\
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
TO REGULATE THE RATIONAL EXPLORATION, DEVELOPMENT AND 
UTILIZATION OF MINERAL RESOURCES, AND TO ENSURE THE EQUITABLE 
SHARING OF BENEFITS FOR THE STATE, INDIGENOUS PEOPLES AND LOCAL 
COMMUNITIES, AND FOR OTHER PURPOSES
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 bean sought to contribute to national development, however in the past 
twenty years, the mining industry has not contributed significantly to the economy and 
even caused negative impacts to communities, including detrimental environmental 
destructions where the mines are located.
The present mining law (Republic Act 7942) has clearly failed to regulate the 
development and exploitation of our mineral resources in a way where benefits are 
maximized by Filipino communities and by the State, with mitigated impacts to other 
environmental and natural resources, industries and the rights of Filipino communities. 
The present fiscal regime for mining does not allow us to maximize the benefits of our 
non-renewable resource.
Mining as an economic activity is not only an issue of resource use but also 
concerns water and food security, environment, human rights and Indigenous people's 
rights and a rights-based approach to sustainable development.
In the past decade, the mining industry has only contributed an annual average of 
0.7-1% to the Gross Domestic Product compared to other industries because the 
government receives only 2% excise tax share, and employs 200,000-250,000 or only 
0.6% of total employment.
Meanwhile, it should be noted that the 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; prioritizes sustainable livelihood choices for communities; 
gives utmost Importance to food security and livable conditions for the people; ensures 
that the gains from the mining industry would be maximized while preventing or 
mitigating its adverse effects; recognizes that the issue of environment and sustainable 
development is local and thus prioritizes local participation in decisions surrounding


mining; ensures the protection of human rights of communities and individuals; and 
imposes harsh penalties for the violation of its provisions.
The passage of this bill is earnestly sought.
RISA HOrmVEROS 
Senator


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S.B. No.
)
)
)
SENATE
376
'(g5ff(rp of li)c
72 JUL 12 All -46
RHCEIVIDBV:
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
TO REGULATE THE RATIONAL EXPLORATION, DEVELOPMENT AND 
UTILIZATION OF MINERAL RESOURCES, AND TO ENSURE THE EQUITABLE 
SHARING OF BENEFITS FOR THE STATE, INDIGENOUS PEOPLES AND LOCAL 
COMMUNITIES, AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Phiiippines in 
Congress assembied:
CHAPTER I
DECLARATION OF POLICIES
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Section 1. Short Tide. - This Act shall be known as the Aiternative Minerals
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Management Act of2022!'
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Sec. 2. Declaration of Policy, - It is hereby declared the policy of the State to:
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a) Maintain peace and order, protect life, liberty and property and promote
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the general welfare;
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b) Ad yance the medium- and long-term needs of the Philippines;
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c) Encourage the advancement of the industry's technology with emphasis
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on existing Indigenous knowledge, research and development;
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d) Protect and advance the right of the people to a balanced and healthful
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ecology In accord with the rhythm and harmony of nature;
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e) Value the dignity of every human person and guarantees full respect for
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human rights;
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f) Promote social justice In all phases of national development;
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g) Recognize and promote the rights of indigenous cultural communities
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within the framework of national unity and development and protect the
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right to self-determination of the indigenous and Moro peoples;
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h) Protect and promote the right to health of the people and Instill health
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consciousness among them;


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i) 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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j) Develop a self-reliant and independent national economy effectively
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controlled by Filipinos;
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k) Ensure the autonomy of local governments;
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I) Give highest priority to the enactment of measures that protect and
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enhance the right of all the people to human dignity, reduce social,
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economic, and political inequalities, and remove cultural inequities by
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equitably diffusing wealth and political power for the common good;
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m) Encourage non-governmental, community-based, or sectoral
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organizations that promote the welfare of the nation; and
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n) Adopt and accept the generally accepted principles as embodied in the
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International Covenant on Civil and Political Rights, International
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Covenant on Economic, Social, Cultural Rights, UN Declaration on the
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Rights of Indigenous Peoples, UN Convention on Biodiversity and other
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international accords on human rights, labor rights, the rights of women
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and children, and the protection and preservation of the environment, of
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which the State is a party.
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Sec. 3. - The State shall formulate a National Industrialization Program pursuant
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to the principles of agricultural modernization, development of industrial and
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manufacturing industries, and rational, sustainable, and equitable development of the
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national economy. The State shall, therefore, 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 mineral
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ores first for domestic purposes and before exporting them to other countries.
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Pursuant to the foregoing, the State shall implement a Mineral Management Plan that
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provides the framework for the utilization and management of the country's mineral
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resources, which will address the needs of the domestic economy and uphold the rights
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of Industry workers, indigenous peoples and local communities.
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Sec. 4. - The judicious stewardship of our mineral resources, as well as Its
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exploration, development and utilization shall comply with the following principles:
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a) The current export-orientation of mining is hereby reversed, and a
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domestic needs-based development of the industry shall be pursued by
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the State as a step towards achieving genuine economic development;


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b) The mining industry shall be geared towards national industrialization and 
shall be built for the production of raw materials such as base metals, 
basic chemicals and petrochemicals needed by the basic, medium and 
heavy industries to produce as much consumer, intermediate and capital 
goods with the country's stock of finite mineral and non-mineral industrial 
raw materials and in the process provide jobs to the country's vast human 
resources;
c) The community shall actively participate In the stewardship of mineral 
resources. Community-based initiatives shall be encouraged and 
supported;
d) The State and its members shall develop its human resources and 
encourage the evolution of Its own appropriate technologies The State 
shall provide the appropriate support and protection to Filipino 
corporations to further develop and increase their participation In the 
industry. All mining Industry investments shall be mutually-beneficlal and 
help achieve the specific target and goals of the National Industrialization 
Program. To come up with the large capital requirement for mining, the 
State must use local sources such as but not limited to the granting of 
incentives and financial aid to local private sector Investors, re-channeling 
of government budget allocations for foreign debt payments and military 
expenditures, and the proceeds from the government shares of the 
Malampaya Natural Gas Project;
e) The State shall allow, in exceptional cases, foreign corporations to invest 
In the mineral Industry. Based on the National Industrialization Program 
and the country's capability and capacity, the government must identify 
the mineral areas where foreigners can help and invest subject to rigorous 
screening and strict regulations as provided in this Act and related laws. 
The participation of foreign companies in the critical stages of minerals 
extraction and processing shall be in accordance with a mandatory 
program or agreement for technology transfer and equity shares that do 
not exceed forty (40) percent of the full capital requirements.
Provided, That capital accumulation and reinvestment within the country 
shall be primadiy 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;


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f) In land and water use, the production of sufficient food free from pollution 
towards food security shall always be the priority;
g) Long-term mining development shall be programmed by the State in 
accordance with the country's availability of resources, capability and well­
being of the peopie, technological capacity and people's acceptability. The 
right of Muslim Filipinos and indigenous peoples to self-determination and 
ancestral domain shall be recognized and their collective property rights 
are guaranteed by this Act;
h) Job security, adequate wages, benefits, and safe working conditions for 
mine workers shall be ensured in state- and privately-owned mining 
corporations. Their right to organize and form their own associations, to 
collective bargaining and to strike shall be upheld. The state will strictly 
prohibit forced and child labor in the Industry;
I) Small-scale mining operations shall be supported and regulated by the 
state. The state will encourage the formation of cooperatives among 
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 Is stopped, alternative and sustainable livelihood shall 
be provided to the small-scale miners.
j) Mining operations shall not in any way create or exacerbate conflicts. In 
no instance shall the Armed Forces of the Philippines (AFP), the Philippine 
National Police (PNP) and private security and paramilitary groups be used 
to coerce or force the entry and protection of mining operations;
k) Mining Industry research and development shall focus on harnessing more 
economically- efficient and less environmentally destructive methods. The 
advanced technologies from other countries that are proven to be 
appropriate locally shall be adopted in the industry;
l) All mining operations shall be strictly regulated to ensure the domestic 
processing of nfmeral 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


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to the domestic processing of minerals shall be promoted, harnessed,
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expanded and upgraded;
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m) The State and its members shall share In the burden of satisfying the need
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for mineral resources primarily through reusing and recycling existing
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mineral products. Ecologically-sound practices at all stages of mining shall
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be promoted. Mining technologies such as open-pit mining and
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submarine mine tailing disposal methods that are banned abroad and/or
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proven inappropriate in countries like the Philippines must all be banned.
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Environmental standards shall be set to ensure the protection and efficient
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utilization of the country's mineral resource base. Ecological
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considerations in mining development shall be given due emphasis and
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attention to substantially eliminate destructive effects that certain mining
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industrial processes might have on the people's health and the
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environment. Monitoring mechanisms with strong participation from the
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local communities will be instituted;
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n) Mining In environmentally critical areas such as small island ecosystems,
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primary and secondary forests and watersheds shall be banned. Dumping
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of mine wastes and tailings to rivers, lakes and seas are prohibited; The
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integrity of the environment shall not be compromised; and
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o) Areas affected by mining shall be rehabilitated, including abandoned
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mines. Violators shall be strictly punished and made to pay heavy
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compensation to the State and the affected communities;
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Sec. 5. - The exploration, development and utilization of natural resources must
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comply with the principles of intergenerational responsibility.
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Sec. 6. - For purposes of, or in relation to expropriation. It is hereby declared that
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mining is not for a public purpose.
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Sec. 7. - Mining agreernents shall not be considered as vested rights, but, are
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mere privilege that the State can grant or revoke anytime for a legitimate purpose.
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CHAPTER II
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SCOPE AND GENERAL PRINCIPLES
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Sec. 8. 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 well
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as quarry resources, sand and gravel, guano, and gemstones, and the conservation,
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exploration, development, utilization, processing and transportation thereof. The
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ownership, management and governance of petroleum, natural gas and coal shall be


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governed by special laws. Offshore mining shall also be governed by special laws.
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This Act shall cover onshore and offehore, large-scale and small-scale mining operations
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in the country, including mining projects in ancestral domains in accordance to the
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existing national and International policies on our indigenous peoples.
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Sec. 9. - Ore minerals form part of the country's irreplaceable and non-renewable
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natural wealth and capital. The conservation of our mineral wealth is a paramount public
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interest and mineral resources shall be utilized only in a rational manner for national and
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local development as specified by law and the National Industrialization Program and the
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Mineral Management Plan. The economic benefits derived from mining shall be equitably
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distributed by, among others, prioritizing development for local communities and all other
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stakeholders directly affected by mining operations.
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Sec. 10. - 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 shall
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ensure the peoples participation in policy making and implementation of the same at all
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levels of government. The management of mineral resources shall be a shared concern
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and responsibility among the national government, corporations, all levels of local
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government, and the communities affected by the exploration, development, and
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utilization of mineral resources.
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Sec. 11. - The State shall accord support to communities dependent on small-scale
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mining whose operations shall strictly adhere to the provisions of this law.
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Sec. 12. - Subject to their right to self-determination, indigenous cultural
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communities/ indigenous peoples (ICCs/IPs) own and have the responsibility to manage
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the mineral resources in their respective ancestral domains, free from external
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manipulation, intetference, force threat, intimidation, coercion and other analogous acts.
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The State shall support indigenous cultural communities in developing capacities to
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effectively exercise their right and responsibility.
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Sec. 13. - Mining shall be limited in scale in accordance with this Act.
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Sec. 14. - Mineral resources development, utilization and processing shall be
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reserved for Filipino citizens and for Filipino corporations. Exploration shall be undertaken
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directly by the State for the benefit of the nation.
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Sec. 15. - Remining and recycling of mineral resources shall be prioritized over the
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opening of new mines to maximize and recover the remaining minerals resources from
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the rejects or wastes of previous mines and mining operations.
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Sec. 16. - The State shall prioritize the rehabilitation of the abandoned mines In
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the country. 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/restoration of the


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Immediate environs or each mining project/activity in the country as provided by law.
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Sec. 17. - The State shall encourage and support Filipino private corporations and
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mining cooperatives to participate and Invest in the mining industry on mutually-beneficial
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grounds that will push forward the National Industrialization Program in both small-scale
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and large-scale projects.
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Sec. 18. - Mineral resource extraction shall be allowed based on the Philippine
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Government's National Industrial Plan. The sharing of profits from mining activities,
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including the anticipated environmental 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 from
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other land uses. The anticipated cost of environmental and social impacts on the affected
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local communities, which shall at all times be prevented and/or mitigated through the
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allocation of sufficient funds for this purpose. In mining projects with foreign participation,
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a just return of investment scheme for the foreign entrants into the industry shall be
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prescribed by law.
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Sec. 19. - The State shall prioritize the development of mineral resources needed
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for national development and the creation of domestic processing capacity for industrial
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metals, the integration of agricultural modernization and other labor-intensive
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downstream industries. Mine planning shall be conducted to meet this principle.
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The National Industrial Plan shall support national development based on the principles
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of sustainable development and modernization of its economic base. This framework will
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define minerals to be extractea, volume to be extracted and when to be extracted. This
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shall be matched with the approved mining areas as Identified by the Councils. These
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matched areas are eligible for mining operations.
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CHAPTER III
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DEFINITION OF TERMS
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Sec. 20. Definition of Terms. - As used in and for the purposes of this Act, the
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following terms, whether used in singular or in plural form, shall mean:
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a) Abandonment - the act of the contractor leaving a mine without
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rehabilitating the affected areas or completing such rehabilitation despite
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the legal obligation to do the same;
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b) Acid mine drainage - the dissolution, mobilization and transportation of
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toxic metals from rocks resulting from the chemical reaction of the acid-
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generating minerals in rock and waste materials having high permeability
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to both air and rainfall and other water inflows when land is opened up
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for mining and Initiates the chemical reaction, resulting to a perpetual
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machine of acid generation;
c) Ancestral domains - all areas generally belonging to indigenous cultural 
communities/indigenous peoples (ICCs/IPs) comprising lands, inland 
waters, coastal areas, and natural resources therein, held under a claim 
of ownership, occupied or possessed by ICCs/IPs, by themselves or 
through their ancestors, communally or Individually since time 
immemorial, continuously to the present except when interrupted by war, 
force majeure or displacement by force, deceit, stealth or as a 
consequence of government projects or any other voluntary dealings 
entered into by government and private individuals/corporations, and 
which are necessary to ensure their economic, social and cultural welfare. 
It shall Include ancestral lands, forests, pasture, residential, agricultural, 
and other lands individually owned whether alienable and disposable or 
otherwise, hunting grounds, burial grounds, areas of worship , bodies of 
water, mineral and other natural resources, and lands which may no 
longer be exclusively occupied by ICCs/IPs but from which they 
traditionally and historically had access to for their subsistence and 
traditional activities, particularly the home ranges of ICCs/IPs who are still 
nomadic and/or shifting cultivators
d) Ancestral lands - lands occupied, possessed and utilized by individuals, 
families and clans who are members of the ICCs/IPs by themselves or 
through their predecessors-in-interest, under claims of Individual or 
traditional group ownership, continuously, to the present except when 
interrupted by war, force majeure or displacement by force, deceit, 
stealth, or as a consequence of government development aggression 
projects and other voluntary dealings entered Into by government and 
private individuals/corporations including, but not limited to, residential 
lots, rice terraces or paddies, private forests, swidden farms and tree lots;
e) Beneficiation - a process wherein a large fraction of the waste material is 
removed from the mineral ore;
f) Butter Zones- identified areas outside the boundaries of and immediately
adjacent to designated protected areas designated by law that need 
special development control in order to avoid or minimize harm to the 
protected area;
g) Bureau-the Miiies and Geosciences Bureau (MGB) under the Department 
of Environment and Natural Resources (DENR);
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h) Carrying capacity - the capacity of natural and human environments to 
accommodate and absorb change without experiencing conditions of 
ecological instability and attendant degradation;
i) Certificate of Ancestrai Domains Titie (CADT) - title formally recognizing
the rights of possession and ownership of ICCs/IPs over their ancestral 
domains identified and delineated in accordance with law;
j) Certificate of Ancestrai Lands Titie (CALT)- a title formally recognizing the
rights of ICCs/IPs over their ancestral lands;
k) Closure of mines- permanent cessation of operations at a mine or mine 
processing site after completion of the decommissioning process;
l) Consensus - the decision communally reached after appropriate
participatory consultation and discussion, free from any external 
manipulation, Interference and coercion, and other analogous cases and 
obtained after fully disclosing the intent and scope, including the positive 
and negative impacts of the activity, in a language and process 
understandable to the community or group.
xx\)Consent- the free, prior and Informed assent of the relevant person/s, 
ICCs/IPs, barangay assemblies, landowner or occupant or possessor, 
given after fully disclosing the Intent and scope, including the positive and 
negative impacts of the activity. In a language and process understandable 
to said persons or communities or assemblies;
n) Contract area - the area delineated as specifically provided by a mineral 
agreement for the development or utilization of mineral resources found 
therein;
o) Critical watershed- refers to a drainage area of a river system, lake or 
water reservoir supporting existing and proposed hydroelectric power, 
domestic water supply, geothermal power and irrigation works, which 
needs immediate rehabilitation and protection to minimize soil erosion, 
improve water yield and prevent possible flooding. The term shall also 
include areas which are traditional human settlements, land-uses, or sea- 
uses which are representative of a culture/cultures, or human interaction 
with the environment especially when it has become vulnerable under the 
impact of irreversible change;
p) Critical habitats - place or environment where species or subspecies 
naturally occur or has naturally established its population that are crucial 
to the survival of a species and essentia! for Its conservation;


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q) Cultural sites- those that bear a unique or at least exceptional testimony 
to a cultural tradition or to a civilization which is living or which has 
disappeared or, directly or tangibly associated with events or living 
traditions, with ideas, or with beliefs, with artistic and literary works of 
outstanding universal significance;
r) Customary laws- body of written and/or unwritten rules, usages, customs 
and practices traditionally recognized, accepted and observed by 
respective ICCs/IPs and local communities;
s) Decommissioning - the activity or process that begins after cessation of 
prospecting activities or mineral production (including metallurgical plant 
production). It involves, among others, the removal of unwanted 
infrastructure, making excavations and waste repositories safe and stable 
and surface rehabilitation with a view to negate or minimize any adverse 
environmental Impacts remaining after cessation of mineral production. It 
includes the aftercare or maintenance that may be needed;
t) Downstream industries - are mining activities that cover minerals
processing, refining, manufacturing of intermediate and capital goods and 
marketing of such;
u) Ecological profile or eco-profiie - geographic-based Instruments for 
planners and decision-makers which present an evaluation of the 
environmental quality and carrying capacity of an area and measures the 
specific Interactions that will be affected by any and all mining operations;
v) Exploration - covers the methods of searching or prospecting for mineral 
resources by non-invasive means for the purpose of determining the 
existence, extent, quantity and quality thereof, which may include but not 
limited to seismic, gravity, magnetic, electromagnetic, radar, induced 
polarization, radio-wave and electro geochemical;
w) Extraction- ore-removal activities that take place at the mine site Itself;
x) Free, prior, and informed consent (EPIC) - the consensus of all members 
of the ICCs/IPs to be determined in accordance with their respective 
customary laws and practices, free from any external manipulation, 
interference, coercion, and other analogous acts and obtained after fully 
disclosing the intent and scope. Including the positive and negative 
impacts, of all the activities, in a language and process understandable 
and acceptable to the community;
y) Indigenous peopies/Indigenous cultural communities (IP/ICC) - refer to a
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group of people or homogenous societies identified by self-ascription and 
ascription by others, who have continuously lived as organized community 
on communally bounded and defined territorv', 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 cf present state boundaries, who retain some or all of their 
own social, economic, cultural and political institutions, but who may have 
been displaced from their traditional domains or who may have resettled 
outside their ancestral domains. They are peoples who have a spiritual 
relationship with the land;
z) Indigenous political structure - refers to organizational and cultural 
leadership systems, institutions, relationships, patterns and processes for 
decision-making and participation, identified by ICCs/IPs such as, but not 
limited to, Council of Elders, Council of Timuays, Bodong Holders, and any 
other tribunal or body of similar nature;
aa) Joint venture agreement- an agreement wherein the government and a 
qualified person organize a joint-venture company, with both parties 
having equity shares, to develop and manage mineral resources. Aside 
from earnings on the equity, the Government shall be entitled to a share 
in the output computed at a certain percentage mutually agreed upon by 
and beneficial to both parties.
bb) Key biodiversity areas - are sites of global biodiversity conservation 
significance. They are defined by standardized criteria and thresholds to 
guide conservation Interventions such as the establishment of protected 
areas;
cc) Large-scale mining - mining in areas with more than twenty (20) 
hectares, using mechanized tools and equipment, requiring considerable 
capital and having large-scale environmental, social, cultural and 
economic impacts with regard to resource use and/or consumption;
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dd) Mineral agreement- a contract entered into by the government, in behalf 
of the State, and a private Filipino person, granting such person/s the 
privilege to mine a specific contract area;
ee) Mineral resource - any concentration of minerals/rocks with potential 
economic value;
ff) Mineral processing - the milling, beneficiation or upgrading of ores or 
minerals and rocks or by similar means to convert the same into 
marketable products;
gg) Minerals- all naturally occurring Inorganic substance in solid, gas, liquid, 
or any intermediate state excluding energy materials such as coal, 
petroleum, natural gas, radioactive materials, and geothermal energy;
hh) Mine development - preparing the mine site for production by shaft 
sinking or pit excavation building of access roads, and constructing of 
surface facilities;
ii) Mine wastes and tailings -rock materials from surface or underground 
mining and milling operations with little or no economic value to the 
generator of the same;
jj) Mining activity - any or all of the following activities: exploration, 
extraction, utilization, processing, transportation and other activities 
conducted for the same;
kk) Mining area--a portion of the contract area which has been identified by 
the contractor wherein actual mining operations are conducted;
II) Mirrng operations - either all or any of the mining activities involving 
exploration, feasibility, development, utilization, and processing;
mm) National industrialization - in the mining industry, this shall denote the 
primacy of mineral production, processing and distribution for the primary 
benefit of the domestic economy. This includes creating favorable 
conditions for Filipino entrepreneurs to engage in mining through various 
state-private agreements that shall ensure that mining shall help spur 
more domestic investments, increase agricultural production and produce 
both consumer and producer goods and manufactures;
nn) National park - an area of the public domain essentially natural 
wilderness, scenic, or historic in character which has been withdrawn from 
settlement, occupancy, or any form of exploitation except in conformity 
with an approved management plan and set aside exclusively to conserve 
the area or preserve the scenery, the natural and historic objects, wild
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animals, and plants therein mainly for the purpose of biodiversity 
conservation and/or human enjoyment; 
oo) Natural forest - forests composed of indigenous trees, not planted by 
man, whose structure, functions, and dynamics have been largely the 
result of natural succession processes/ 
pp) Natural parks- is a relatively large area not materially altered by human 
activity where extractive resource uses are not allowed. These parks are 
maintained to protect outstanding natural and scenic areas of national or 
International significance for scientific, educational and recreational use; 
qq) Open-pit mining - Extracting metal ores and minerals that lie near the 
surface by removing the overlying material and breaking and loading the 
ore. Also known as open-cast mining and open-cut mining; 
rr) Ore - a material that contains minerals in such quantities that it can be 
mined and worked commercially to extract that mineral. The mineral is 
usually contained in chemical combination with some other element in 
addition to various Impurities;
ss) Pollution control and infrastructure devices - infrastructure, machinery, 
equipment and/or improvements used for Impounding, treating, or 
neutralizing, precipitating, filtering, conveying and cleansing mine 
industrial waste and tailings as well as eliminating or reducing hazardous 
effects of solid particles, chemicals, liquids or other harmful by-products 
and gases emitted from any facility utilized in mining operations for their 
disposal;
tt) Private land- any land belonging to any private person which includes 
alienable and disposable land being claimed by a holder, claimant, or 
occupant who has already acquired a vested right thereto under the law, 
although the corresponding certificate or evidence of title or patent has 
not been actually issued;
uu) Processing - includes all treatment an ore receives after its extraction 
and beneficiation, which involves changes In the chemical nature of the 
mined minerals;
w) Progressive rehabilitation - rehabilitation which involves the staged 
treatment of disturbed areas during exploration, 
construction/development and mining operations; 
ww) Protected areas - identified portions of land and water set aside by 
reason of their unique physical and biological significance, managed to
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enhance biological diversity and protected against destructive human 
exploitation;
xx) Protected landscapes, seascapes, marine sanctuaries - areas of national 
significance which are characterized by the harmonious interaction of man 
and the environs while providing opportunities for public enjoyment 
through recreation and tourism within the bounds of the normal lifestyle 
and economic activity of these areas;
yy) Quarry resources- any common rock or other mineral substances as the 
Director of the Mines and Geosciences may declare to be quarry resources 
such as, but not limited to, andesite, basalt, conglomerate, coral sand, 
diatomaceous earth, diorite, decorative stones, gabbro, granite, 
limestone, marble, marl, red burning clay for potteries and bricks, rhyolite, 
rocK phosphate, sandstone, serpentine, shale, tuff, volcanic cinders, and 
volcanic glass. Provided, That such quarry resources do not contain metals 
or metallic constituents and /or other valuable minerals In economically 
workable quantities; Provided further. That non-metallic minerals such as 
kaolin, feldspar, bull quartz, quartz or silica, sand and pebbles, bentonite, 
talc, asbestos, barite, gypsum, bauxite, magnesite, dolomite, mica, 
precious and semi-precious stones, and other non-metallic minerals that 
may later be discovered and which the Director declares the same to be 
of economically workable quantities, shall not be classified under the 
category of quarry resources;
zz) Quarrying - process of extracting, removing and disposing quarry 
resources found on or underneath the surface of private or public land/ 
aaa) Regional Director- the regional director of any mines' regional office; 
bbb) Regional Office- any of the mines' regional offices; 
ccc) Recycling- shall refer to the treating of used or waste materials through 
a process of making them suitable for beneficial use and for other 
purposes, and includes any process by which solid waste materials are 
transformed into new products in such a manner that the original products 
may lose their identity, and which may be used as raw materials for the 
production of other goods or services: Provided, That the collection, 
segregation and re-use of previously used packaging material shall be 
deemed recycling under the Act;
ddd) Rehabilitation-\he process by which the land will be returned to a form 
and productivity in conformity with a prior land use plan including a stable
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ecological state that does not contribute substantially to environmental 
deterioration and is consistent with surrounding aesthetic values; 
eee) Remediation-’ removal of pollution or contaminants from environmental 
media for the general protection of the area and the people; 
fff) Remining - maximizing and recovering the remaining minerals from the 
rejects or wastes of previous mines and mining operations;
999) Restoration - where the intent is to recreate an ecosystem as close as 
possible to the original which existed at the site, with most of the structure 
and productivity matching that of the original ecosystem, and most of the 
original biodiversity: in time ecological processes and functions will match 
those of the original forest;
hhh) Self-determination- refers to the right of a people to determine its own 
political destiny as defined by existing Philippine laws. The right to self- 
determination has includes the right of ICCs/IPs to choose their form of 
government within existing national borders to achieve a greater degree 
of autonomy to help preserve their culture, ancestral domain, and way of 
life;
HI) Small-scale mining - mining activities which rely heavily on manual labor 
using simple implements and methods and do not use explosives or any 
heavy mining equipment, primarily engaged in for sustainable living. 
Impacts from small-scale mining shall not be large-scale, otherwise, the 
mining activity shall be defined as large-scale mining; 
jjj) Small-scale mining permit- permit Issued for small-scale mining; 
kkk) Strategic minerals - minerals needed for national industrialization, 
including rural development;
111) Tailings Disposal System or Tailings Placement- the method wherein the 
waste from mining operations are dumped, placed, or disposed; 
mmm) Traditional small-scale mining - small-scale mining using traditional 
means and without the use of chemical or mechanized extraction and 
separation means, methods. Implements, and/or equipment; 
nnn) Watershed continuum ~ shall refer to an area consisting of the 
watershed and its divide including its connection from the headwaters to 
the reef or a land area drained by a stream or a fixed body of water and 
with tributaries having a common outlet for surface runoff. It is the system 
by which the mining-affected communities shall be determined following 
the drainage of a stream or fixed body of water with tributaries having a
15


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common outlet for surface runoff;
2 
ooo) Wildlife - undomesticated forms and varieties of flora and fauna.
3
4 
CHAPTER IV
5 
OWNERSHIP AND GOVERNANCE
6
7 
Sec. 21. Authority of the Bureau. - The Mines and Geosciences Bureau shall be a
8 
scientific research institution under the Department of Environment and Natural
9 
Resources (DENR) primarily conducting and developing research of mineral resources and
10 
mining technologies and training of local communities, local government units and
11 
indigenous peoples. It shall also regulate the operations of persons involved in mining
12 
activities. It shall also work with the Multi-Sectoral Mineral Council in the monitoring of
13 
mining activities.
14 
Sec. 22. Regional offices. - The Bureau shall have as many regional offices In the
15 
country as may be established by the Secretary, upon the recommendation of the Director.
16 
Sec. 23. Bureau as repository of information. - The Bureau shall be the central
17 
repository of information regarding mineral lands, resources, permits, studies and other
18 
information relevant to the operation of a mine, including the necessary requirements
19 
which a contractor Is obliged to submit. Ail other governmental offices and other bodies
20 
created under this Act shall copy furnish the Bureau of all other information related to
21 
mining.
22 
Sec. 24. Recording system. - There shall be established a national and regional
23 
filing and recording system. A mineral resource database system shall be set up in the
24 
Bureau which shall include, among others, a mineral rights management system.
25 
Sec. 25. Publication. - The Bureau shall publish at least annually a mineral gazette
26 
of nationwide circulation containing among others, a current list of mineral rights, their
27 
locations specified In the appropriate map, mining rules and regulations, other official acts
28 
affecting mining, and other Information relevant to mineral resources development. A
29 
system of publication fund shall be included in the regular budget of the Bureau.
30 
Sec. 26. Bureau to conduct exploration activities. - Exploration of mineral
31 
resources shall be exclusively and directly undertaken by the State through the Bureau.
32 
In no case shall this function be delegated or contracted out to private corporations or
33 
persons.
34 
Sec. 27. Non-invasive exploration. - Exploration activities shall only be non-invasive
35 
such as seismic, gravity, magnetic, electromagnetic, radar, induced polarization, radio-
36 
wave and electro-geochemical.
37 
Sec. 28. Consent - The Bureau shall not conduct any exploration activity without
16


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the free, prior and informed written consent of relevant landowner, possessor and/or
2 
occupant; the affected communities; and/or of the ICC/IP. Neither shall the Bureau enter
3 
into any part of the ancestral domains/lands of ICCs/IPs without their free and prior
4 
informed consent Further, the Bureau shall not enter into any distributed land under the
5 
Comprehensive Agrarian Reform Program within the 10 years prohibited period of the
6 
said program.
7 
Sec. 29. Ownership of ICCs/IPs. - The mineral resources within ancestral
8 
domains/ancestral lands are the collective private property of the indigenous cultural
9 
communities/indigenous peoples (ICCs/IPs) as provided by law. The management of such
10 
mineral resources shall build on the Indigenous knowledge systems and practices of the
11 
ICCs/IPs.
12 
Sec. 30. Free, prior, and informed consent - No mining activity shall be conducted
13 
within the ancestral domains/lands of ICCs/IPs without their free, prior, and informed
14 
consent (FPIC), In addition to the conditions set forth under the succeeding sections of
15 
this Act.
16 
Sec. 31. When ancestrai domain is not formaiiy recognized. - When ancestral
17 
domain Is not covered by a Certificate of Ancestral Domain Title/Certificate of Ancestral
18 
Land Title (CADT/CALT), or is covered by a different title issued in favor of members of
19 
the ICCs/IPs, mineral resources shall nevertheless be managed by the ICCs/IPs concerned
20 
when it can be presumed that the area is part of ancestral domain. An area is presumed
21 
to be part of ancestral domain by virtue of historic rights and self delineation by the
22 
ICCs/IPs.
23 
Sec. 32. When ICCs/IPs dispiaced from ancestrai domain, and when ancestrai
24 
domain is aiready covered by other tides emanating from the State other than
25 
CADT/CALT. - IP/ICC rights over ancestral domain subsists notwithste nding the fact that
26 
the ICCs/IPs who hold such rights have been displaced therefrom or that such ancestral
27 
domains have been occupied by other persons or corporations under another claim of
28 
title emanating from the State. In such cases, ICCs/IPs shall continue to own such
29 
mineral resources.
30 
Sec. 33. Questions on the validity of FPIC. - In Instances that there are questions
31 
on the legality or validity of the issued free, prior, and informed consent, mining operations
32 
shall not be allowed to be conducted in the ancestral domains or lands of the ICCs/IPs
33 
without the final resolution of such question on the legality or validity of the FPIC.
34 
Sec. 34. Ownership of the State. - The mineral resources found outside ancestral
35 
domains/lands shall be owned by the State. The State shall ensure that the management
36 
of mineral resources shall be primarily for the benefit of the local communities in whose
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a.
b.
c.
d.
e.
f.
g-
territory the same shall be found. Any minerals extracted shall be solely used for local 
Industries consistent with the Minerals Management Plan. The State may directly 
undertake development, utilization and processing of mineral resources or it may enter 
into mineral agreements with eligible parties pursuant to the provisions of this Act.
Sec. 35. Inventory of mineral resources, - The Bureau shall identify and provide 
an inventory of the available mineral resources, including the mine tailings and wastes 
within the country. It shall submit to the DENR a report which shall contain the following 
information:
the classification of minerals; 
the quality and grade of the ore; 
the potential mine life; 
the geological description of the area; 
the economic viability of mine tailings;
whether the area is a key biodiversity area or if it is a critical habitat; and 
all other relevant information necessary for potential mineral Investments 
The process for mineral exploration and/or approval for a mining permit shall not 
commence without the said inventory.
Sec. 36. Identification of strategic minerals. - The Bureau shall conduct researches 
and studies prior to any mining operations to identify strategic mineral resources. Only 
mineral resources that shall be needed for local industries, agricultural modernization and 
rural development shall be opened to mining subject to the implementing rules and 
regulations of this Act.
Sec. 37. Demarcation of mineral areas. - The Bureau shall demarcate the 
boundaries of all areas Identified as containing commercial quantities of mineral resources 
on the ground.
Sec. 38. Baseline information on watershed continuums. - The baseline 
information on all watersheds in the country shall be required and made available to the 
public, online as much as possible. No mining permit shall be issued without this baseline 
Information.
Sec. 39. Affected local community and local government unit - For the purposes 
of this Act, the affected local community and the affected local government unit are 
defined in relation to the watershed continuum which is potentially negatively impacted 
by mining operation in the demarcated area. The local communities and the local 
government units therefore are those who are dependent on the watershed eco-system 
and its resources.
Sec. 40. Establishment of Multi-Sectoral Mineral Councils. - A Multi-Sectoral
18


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Mineral Council shall be established for the purposes of this Act. There shall be as many
2 
Multi-Sectoral Mineral Councils are there are watershed continuums with demarcated
3 
mineral areas.
4 
Sec. 41. Powers of the Council. - The Council si .all have the following powers,
5 
among others:
6 
a. To determine whether or not mining operations shall be allowed;
7 
b. 
To deliberate on proposals for mineral agreements;
8 
c. 
To approve the proposal for mineral agreements;
9 
d. 
To monitor the conduct of mining operations; and
10 
e. 
To establish its internal rules of procedure which are not contradictory to
11 
this Act.
12 
Sec. 42. Composition of the Multi-Sectoral Mineral Council. - The Multi-Sectoral
13 
Mineral Council shall be composed of representatives from the Bureau, one representative
14 
from each of the affected provincial governments/independent component cities/highly
15 
urbanized cities, representatives from peoples/community/sectoral/non-governmental
16 
organizations as many as the representatives of local government units, and the affected
17 
ICCs/IPs within the watershed continuum. The Bureau shall be the convener of the
18 
Council.
19 
No mining operations shall be allowed without the Council having been properly
20 
convened.
21 
Sec. 43. Areas open to mining. - The Council shall have the power to determine
22 
whether or not the land where mineral resources are found shall be opened to mining.
23 
Areas may only be opened to mining upon the vote of two-thirds of all the members of
24 
the Council pursuant to the guidelines provided by this Act. In determining whether or
25 
not such area shall be opened, the following shall be reo- Hred:
26 
a. 
Report of the Bureau on the conducted exploration;
27 
b. 
Existence of downstream Industries for the mineral resources;
28 
c. 
Potential environmental impacts;
29 
d. 
Potential cultural impacts;
30 
e. 
Conflict and risk assessment;
31 
f. 
Potential health Impacts;
32 
g. Potential economic benefits of the development and utilization of the
33 
minerals;
34 
h. 
Carrying capacity and the ecological profile of the area;
35 
i. 
Existing and alternative land uses of the area; and
36 
j. 
Local government land use plan.
19


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9
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i


1 
common outlet for surface runoff;
2 
ooo) Wildlife - undomesticated forms and varieties of flora and fauna.
3
4 
CHAPTER IV
5 
OWNERSHIP AND GOVERNANCE
6
7 
Sec. 21. Authority of the Bureau. - The Mines and Geosciences Bureau shall be a
8 
scientific research institution under the Department of Environment and Natuial
9 
Resources (DENR) primarily conducting and developing research of mineral resources and
10 
mining technologies and training of local communities, local government units and
11 
indigenous peoples. It shall also regulate the operations of persons involved in mining
12 
activities. It shall also work with the Multi-Sectoral Mineral Council In the monitoring of
13 
mining activities.
14 
Sec. 22. Regional offices. - The Bureau shall have as many regional offices In the
15 
country as may be established by the Secretary, upon the recommendation of the Director.
16 
Sec. 23. Bureau as repository of information. - The Bureau shall be the central
17 
repository of information regarding mineral lands, resources, permits, studies and other
18 
information relevant to the operation of a mine. Including the necessary requirements
19 
which a contractor is obliged to submit. All other governmental offices and other bodies
20 
created under this Act shall copy furnish the Bureau of all other Information related to
21 
mining.
22 
Sec. 24. Recording system. - There shall be established a national and regional
23 
filing and recording system. A mineral resource database system shall be set up in the
24 
Bureau which shall include, among others, a mineral rights management system.
25 
Sec. 25. Publication. - The Bureau shall publish at least annually a mineral gazette
26 
of nationwide circulation containing among others, a current list of mineral rights, their
27 
locations specified In the appropriate map, mining rules and regulations, other official acts
28 
affecting mining, and other information relevant to mineral resources development. A
29 
system of publication fund shall be included in the regular budget of the Bureau.
30 
Sec. 26. Bureau to conduct exploration activities. - Exploration of mineral
31 
resources shall be exclusively and directly undertaken by the State through the Bureau.
32 
In no case shall this function be delegated or contracted out to private corporations or
33 
persons.
34 
Sec. 27. Non-invasive exploration. - Exploration activities shall only be non-invasive
35 
such as seismic, gravity, magnetic, electromagnetic, radar, induced polarization, radio-
36 
wave and electro-geochemical.
37 
Sec. 28. Consent - The Bureau shall not conduct any exploration activity without
16


1 
the free, prior and informed written consent of relevant landowner, possessor and/or
2 
occupant; the affected communities; and/or of the ICC/IR Neither shall the Bureau enter
3 
into any part of the ancestral domains/lands of ICCs/IPs without their free and prior
4 
informed consent. Further, the Bureau shall not enter into any distributed land under the
5 
Comprehensive Agrarian Reform Program within the 10 years prohibited period of the
6 
said program.
7 
Sec. 29. Ownership of ICCs/IPs, - The mineral resources within ancestral
8 
domains/ancestral lands are the collective private property of the indigenous cultural
9 
communities/indigenous peoples (ICCs/IPs) as provided by law. The management of such
10 
mineral resources shall build on the Indigenous knowledge systems and practices of the
11 
ICCs/IPs.
12 
Sec. 30. Free, prior, and informed consent - No mining activity shall be conducted
13 
within the ancestral domains/lands of ICCs/IPs without their free, prior, and informed
14 
consent (FPIC), in addition to the conditions set forth under the succeeding sections of
15 
this Act.
16 
Sec. 31. When ancestrai domain is not formaiiy recognized. - When ancestral
17 
domain is not covered by a Certificate of Ancestrai Domain Title/Certificate of Ancestral
18 
Land Title (CADT/CALT), or Is covered by a different title Issued In favor of members of
19 
the ICCs/IPs, mineral resources siiall nevertheless be managed by the ICCs/IPs concerned
20 
when it can be presumed that the area is part of ancestral domain. An area is presumed
21 
to be part of ancestrai domain by virtue of historic rights and self-delineation by the
22 
ICCs/IPs.
23 
Sec. 32. When ICCs/IPs displaced from ancestral domain, and when ancestral
24 
domain is already covered by other titles emanating from the State other than
25 
CADT/CALT. - IP/ICC rights over ancestral domain subsists notwithstanding the fact that
26 
the ICCs/IPs who hold such rights have been displaced therefrom or that such ancestral
27 
domains have been occupied by other persons or corporations under another claim of
28 
title emanating from the State. In such cases, ICCs/IPs shall continue to own such
29 
mineral resources.
30 
Sec. 33. Questions on the validity of FPIC. - In instances that there are questions
31 
on the legality or validity of the issued free, prior, and informed consent, mining operations
32 
shall not be allowed to be conducted in the ancestral domains or lands of the ICCs/IPs
33 
without the final resolution of such question on the legality or validity of the FPIC.
34 
Sec. 34. Ownership of the State. - The mineral resources found outside ancestral
35 
domains/lands shall be owned by the State. The State shall ensure that the management
36 
of mineral resources shall be primarily for the benefit of the local communities in whose
17


1 
territory the same shall be found. Any minerals extracted shall be solely used for local
2 
industries consistent with the Minerals Management Plan. The State may directly
3 
undertake development, utilization and processing of mineral resources or it may enter
4 
into mineral agreements with eligible parties pursuant to the provisions of this Act.
5 
Sec. 35. Inventory of mineral resources, - The B'lreau shall identify and provide
6 
an inventory of the available mineral resources, including the mine tailings and wastes
7 
within the country. It shall submit to the DENR a report which shall contain the following
8 
information:
9 
a. 
the classification of minerals;
10 
b. 
the quality and grade of the ore;
11 
c. the potential mine life;
12 
d. 
the geological description of the area;
13 
e. 
the economic viability of mine tailings;
14 
f. 
whether the area is a key biodiversity area or If it is a critical habitat; and
15 
g. 
all other relevant Information necessary for potential mineral investments
16 
The process for mineral exploration and/or approval for a mining permit shall not
17 
commence without the said inventory.
18 
Sec. 36. Identification of strategic minerals. - The bureau shall conduct researches
19 
and studies prior to any mining operations to identify strategic mineral resources. Only
20 
mineral resources that shall be needed for local industries, agricultural modernization and
21 
rural development shall be opened to mining subject to the implementing rules and
22 
regulations of this Act.
23 
Sec. 37. Demarcation of mineral areas. - The Bureau shall demarcate the
24 
boundaries of all areas identified as containing commercial quantities of mineral resources
25 
on the ground.
26 
Sec. 38. Baseline information on watershed continuums. - The baseline
27 
information on all watersheds in the country shall be required and made available to the
28 
public, online as much as possible. No mining permit shall be issued without this baseline
29 
Information.
30 
Sec. 39. Affected local community and local government unit - For the purposes
31 
of this Act, the affected local community and the affected local government unit are
32 
defined In relation to the watershed continuum which is potentially negatively Impacted
33 
by mining operation In the demarcated area. The local communities and the local
34 
government units therefore are those who are dependent on the watershed eco-system
35 
and its resources.
36 
Sec. 40. Establishment of Muiti-Sectora! Mineral Councils. - A Multi-Sectoral
18


1 
Mineral Council shall be established for the purposes of this Act. There shall be as many
2 
Multi-Sectoral Mineral Councils are there are watershed continuums with demarcated
3 
mineral areas.
4 
Sec. 41. Powers of the Council. - The Council siiall have the following powers,
5 
among others:
6 
a. To determine whether or not mining operations shall be allowed;
7 
b. 
To deliberate on proposals for mineral agreements;
8 
c. 
To approve the proposal for mineral agreer^ents;
9 
d. 
To monitor the conduct of mining operations; and
10 
e. 
To establish its Internal rules of procedure which are not contradictory to
11 
this Act.
12 
Sec. 42. Composition of the Muiti-Sectorai Mineral Council. - The Multi-Sectoral
13 
Mineral Council shall be composed of representatives from the Bureau, one representative
14 
from each of the affected provincial governments/independent component cities/highly
15 
urbanized cities, representatives from peoples/community/sectoral/non-governmental
16 
organizations as many as the representatives of local government units, and the affected
17 
ICCs/IPs within the watershed continuum. The Bureau shall be the convener of the
18 
Council.
19 
No mining operations shall be allowed without the Council having been properly
20 
convened.
21 
Sec. 43. Areas open to mining. - The Council shall have the power to determine
22 
whether or not the land where mineral resources are found shall be opened to mining.
23 
Areas may only be opened to mining upon the vote of two-thirds of all the members of
24 
the Council pursuant to the guidelines provided by this Act. In determining whether or
25 
not such area shall be opened, the following shall be required:
26 
a. 
Report of the Bureau on the conducted exploration;
27 
b. 
Existence of downstream industries for the mineral resources;
28 
c. 
Potential environmental impacts;
29 
d. 
Potential cultural impacts;
30 
e. 
Conflict and risk assessment;
31 
f. 
Potential health impacts;
32 
g. Potential economic benefits of the development and utilization of the
33 
minerals;
34 
h. 
Carrying capacity and the ecological profile of the area;
35 
i. 
Existing and alternative land uses of the area; and
36 
j. 
Local government land use plan.
19


1 
No mining application shall be allowed unless an environmental economic audit or
2 
resource valuation of the proposed mining area has been conducted or prepared applying
3 
acceptable valuation standards. This audit or resource valuation shall be conducted in
4 
coordination with multisectoral group of experts and community stakeholders. It shall
5 
Include determination of the expected economic returns and the potential negative
6 
impacts from mining on the enjoyment and exercise of human rights, cultural rights, and
7 
on peace and security. A detailed study must mention the flora, fauna and environment
8 
present in the mining claim and the impact of mining operations on the environment, the
9 
possible environmental degradation and the attendant loss of subsistence resources
10 
cause. There must be mention of existence of sacred areas or areas otherwise of cultural
11 
significance and address the impacts of resource exploitation on Indigenous peoples and
12 
local communities.
13 
This information shall be accessible to the public at all times. Provided That. In no case
14 
shall the Council open the following areas to mining:
15 
a) Areas declared by Local Government Units as No-Mining Zones as specified by
16 
local ordinances, and other issuances;
17 
b) Densely populated areas, especially residential areas;
18 
c) Head waters of watershed areas;
19 
d) Areas with potential for acid mine drainage;
20 
e) Critical watersheds;
21 
f) Critical habitats;
22 
g) Climate disaster-prone areas;
23 
h) Geohazard areas;
24 
i) Small island ecosystems;
25 
j) Cultural sites, which may Include, but not limited to, sacred sites and burial
26 
grounds;
27 
k) Traditional swidden farms and hunting grounds;
28 
I) Lands covered by the Comprehensive Agrarian Reform Law or Repu> )lic Act No.
29 
6657, as amended;
30 
m) Prime agricultural lands, irrigable and irrigated lands as defined by Republic
31 
Act No. 9700;
32 
n) Cultural property enumerated under the National Cultural Heritage Act of 2009
33 
or Republic act No. 10066;
34 
o) Community sites;
35 
p) Key biodiversity areas;
36 
q) High conflict areas;
20


1 
r)The Province of Palawan pursuant to Republic Act No. 7611 and other areas
2 
covered by local ordinances;
3 
s) In military and other government reservations, except upon prior written
4 
clearance by the government agency/agencies concerned;
5 
t)Near or under public or private buildings, cemeteries, archaeological and historic
6 
sites, bridges, highways, waterways, railroads, reservoirs, dams or other
7 
infrastructure projects, public or private works including plantations or valuable
8 
crops, except upon written consent of the government agency/agencies or
9 
private entity concerned;
10 
u) In areas expressly prohibited by law or ordinances;
11 
v) In areas covered by small-scale miners as defined by law unless with prior
12 
consent of the small-scale miners, in which case a royalty payment upon the
13 
utilization of minerals shall be agreed upon by the parties, said royalty forming a
14 
trust fund for the socioeconomic development of the community concerned; and
15 
w)Old growth, natural or primary and secondary forests, watershed forest
16 
reserves, wilderness areas, mangrove forests, mossy forests, national parks,
17 
protection forests, provincial/municipal forests, parks, green belts, game refuges
18 
and bird sanctuaries and their respective buffer zones prohibited under the
19 
National Integrated Protected Area System (NIPAS) under Republic Act No. 7586,
20 
Department Administrative Order No. 25, series of 1992 and other laws and
21 
ordinances and those expressly prohibited by other laws.
22 
The determination whether or not the same are absolutely closed to mining shall not only
23 
be limited to the existence of a law or ordinance declaring it as protected areas, but also
24 
to the actual use of said area.
25 
Sec. 44. Process of determination for opening an area to mining. - After the
26 
submission of the exploration report and the resource valuation report, the Bureau shall
27 
convene the Council. The Council shall thereafter convene their respective constituents
28 
to determine whether or not their respective territories shall be opened for mining.
29 
Sections 26 and 27 of the Local Government Code on consultation and consent shall be
30 
strictly adhered to. Local government units at all levels shall conduct mandatory public
31 
hearings with the affected local communities, to be carded out witfiin their respective
32 
territories and presenting those enumerated under Section 41.
33 
The decision of the respective Sanggunians of all the local government units In the
34 
watershed continuum shall be made in accordance to the sentiment of the peoples of the
35 
local government unit as a result of the consultations conducted.
36 
Provided, That each Sangguniang Barangay within the watershed continuum shall
21


1 
convene their respective barangay assemblies for the purpose of this section. Local
2 
government units shall ensure that the Bureau shall comprehensively explain the goals
3 
and objectives of the project or program, its negative and positive impact upon the people
4 
and the community in terms of environmental or ecological balance, and the: measures
5 
that will be undertaken to prevent or minimize the adverse effects thereof. The free prior
6 
and informed consent of all barangay assemblies within the watershed continuum shall
7 
be a condition precedent for any mining activity.
8 
Provided further, That no mining activity shall be approved by the council without the free
9 
and prior informed consent of all indigenous peoples within the watershed continuum.
10 
For the purposes of declaring that an area is open for mining, the Council shall ensure
11 
that all the requisites under Section 41 and 42 have been complied with.
12 
Provided finally. That any member of the community may file a protest with the Council
13 
during the period of consultations and deliberations for the CoundFs consideration.
14 
Sec. 45. Violation of Section 54, - Local government officials who are
15 
administratively found to violate the preceding section and Section 54 of this Act vis-a-
16 
vis the pertinent sections of the Local Government Code shall be removed from office and
17 
perpetually disqualified from holding any elective or appointive position in government,
18 
its divisions, subsidiaries and any government owned and controlled corporations.
19 
Sec. 46. Pool of consultants, - There shall be a pool of independent consultants
20 
that may assist the local government units, local communities or ICCs/IPs with regard to
21 
the technical aspects of mining.
22 
Sec. 47. Publication, posting and radio announcement requirements. The decision
23 
of the Council shall be published by the Bureau in the local newspaper in the local
24 
language, shall be announced on the local radio programs for not less than six (6) weeks
25 
and notices shall be distributed widely In communities. The notice containing relevant
26 
information shall likewise be posted in conspicuous places for the information of the
27 
general public and shall be announced during the local market day.
28
29 
CHAPTER V
30 
MINERAL AGREEMENTS
31
32 
Sec. 48. Modes of mineral agreement - A mineral agreement may only take the
33 
following forms as herein defined;
34 
a) Mineral production sharing agreement - Is an agreement where the
35 
Government grants to the contractor the exclusive right to conduct mining
36 
operations within a contract area and shares in the gross output. The
22


1 
contractor shall provide the financing, technology, management and
2 
personnel necessary for the implementation of this agreement;
3 
b) Co-production agreement - is an agreement between the Government
4 
and the contractor wherein the Government shall provide inputs to the
5 
mining operations other than the mineral resource; and
6 
c) Joint venture agreement - is an agreement where a joint-venture
7 
company is organized by the Government and the contractor with both
8 
parties having equity shares. Aside from earnings in equity, the State shall
9 
be entitled to a share in the gross output.
10 
In no case shall Financial or Technical Assistance Agreements, or any other similar
11 
agreements, contracts, and/or executive issuances granting license or permission to
12 
explore, develop and/or utilize mineral resources be awarded to foreign entities or
13 
persons.
14 
Sec. 49. Eiigibiiity. - Only Filipino citizens or corporation's sixty percent (60%) of
15 
whose equity is owned or controlled by such citizens shall be allowed to conduct
16 
development, utilization and processing of mineral resouices within the country.
17 
Sec. 50. Identification of mining projects. - With the vote of two-thirds of all the
18 
members of the Council, to open areas for mining operations, the Bureau shall prepare
19 
the necessary information sheets on the said area for potential investments. The Bureau
20 
shall call for proposals to develop the mining area based on the Mi lera! Management
21 
Plan.
22 
Sec. 51. Pre-screening of mining proposais. - Mining proposals shall be pre-
23 
screened by the Bureau according to the National Industrialization Program and Mineral
24 
Management Plan upon the submission of Interested parties of the following:
25 
a) demonstration of financial capability;
26 
b) proven social and environmental track record, including those of its officers
27 
and directors;
28 
c) clear corporate structure and ownership;
29 
d) proof of physical office and operations of the proponent within the Philippines;
30 
e) identification of potential investors;
31 
f) mining project feasibility;
32 
g) mining operation work plan;
33 
h) proposed operation, mitigation and prevention methods and/or equipment;
34 
i) capacity to process minerals;
35 
j) intent to develop downstream industries;
36 
k) intent to contribute to local community development; and
23


1 
I) Submission of the Environmental and Social Impact Assessment and
2 
Mitigation Plan
3 
The Council shall fix the minimum capitalization that any bidder must satisfy based on Its
4 
determination of the expected economic returns and the potential negative impacts from
5 
mining, upon reference to an independent study proposing such minimum capitalization.
6 
Sec. 52. Environmental and Social Impact Assessment and Mitigation Plan. - The
7 
contractor shall submit an Environmental and Social Impact Assessment and Mitigation
8 
Plan (ESIAMP) containing the means, methods, processes and schedule by which the
9 
contractor shall conduct its operations and mitigate negative environmental and social
10 
impacts. Social impact shall Include possible Impacts on the enjoyment and exercise of
11 
human rights, cultural rights. The ESIAMP shall include plans relative to mining
12 
operations; the rehabilitation, regeneration and restoration of mineral areas; slope
13 
stabilization of mined out and tailings covered areas; aquaculture, watershed
14 
development and water conservation; the relocation and return of displaced population;
15 
and provisions for alternative livelihood and socioeconomic development.
16 
The ESIAMP shall also contain a Social Development Plan which shall likewise contain the
17 
plans of the proponent for the development of the community through the establishment
18 
of infrastructures and programs that shall be sustainable even after the closure of the
19 
mine.
20 
Sec. 53. Pre-qualification. - The Bureau shall thereafter identify the top three (3)
21 
proposals and shall recommend the same to the Council for deliberation.
22 
Sec. 54. Deliberation of the proposals. - Pre-conditions provided In Section 45 on
23 
the free, prior and informed consent of persons, landowners, possessors or occupants,
24 
communities or barangay assemblies, IPs/ICCs, and/or local Sanggunians shall likewise
25 
be required under this Section.
26 
Sec. 55. Posting and publication requirement - After notice, the Bureau shall notify
27 
the proponent of the accepted proposal and cause the publication and posting of the
28 
accepted proposal.
29 
Provided, That any member of the community may contest the decision of the Council
30 
within six (6) weeks upon the posting and publication of notice of the acceptance of the
31 
proposal in the manner provided in Section 44. No mining operations shall be allowed to
32 
be conducted pending any action questioning the legality or validity of the proposal.
33 
Sec. 56. Issuance of the permit - After six (6) weeks from the date of the posting
34 
and publication, if no contest is filed, the Bureau shall issue a permit In accordance with
35 
the decision of the Council on the winning proposal.
36 
Sec. 57. Environmental and Social Impact Compliance Certificate. - The mining
24


1 
proponent shall be issued an Environmental and Social Impact Compliance Certificate by
2 
the Bureau with the approval of the Council.
3 
Provided, That no amendments to the conditions of the Certificate shall be allowed, unless
4 
such proposed amendment shall work for the benefit of the communities, and in which
5 
case, the Council and the Bureau shall be notified of any amendments to the E5IAMP and
6 
that the former should give their consent to the same, after the proponent explaining in
7 
detail the reason for such amendment and the possible impacts and consequences of
8 
these amendments.
9 
Provided further, That any violation of the ESIAMP shall cause the cancellation of the
10 
Certificate.
11 
Sec. 58. Maximum areas for minerai agreements. - The maximum area under
12 
mineral agreements that a person can hold at any one time shall be determined by the
13 
Council. Provided, That the contract area per agreement shall not exceed five hundred
14 
(500) hectares;
15 
Provided further. That no person shall be awarded in excess of the total contract area of
16 
seven hundred-fifty (750) hectares In any given watershed area. For the purposes of this
17 
Act, the prohibition on the maximum area shall also include corporations that shall have
18 
common directors or significant shareholders.
19 
Sec. 59. Term of minerai agreement - The term of the mineral agreement shall
20 
be equivalent to the mine life plus an additional five (5) years for the rehabilitation of the
21 
mining area. Provided, That in no case shall a Mineral Agreement have a term beyond
22 
fifteen (15) years. Provided further. That the contractor shall already Include
23 
rehabilitation/remediation of the mining area within the ten-year term.
24 
In no case shall a Mineral Agreement be extended without just cause to be determined
25 
by the Council, Provided, That the extension shall not cause the term of the agreement
26 
to exceed the fifteen (15) year term mentioned in the preceding section. Provided further,
27 
That for the purposes of this Act, just cause shall mean acts or events resulting from war,
28 
force majeure or those beyond the control of the mining proponent not attributable to
29 
the same.
30 
Provided finally. That in no case shall mineral agreements be renewed after the expiration
31 
of the fifteen-year period.
32 
Sec. 60. Prohibition on open-pit mining method and submarine tailings disposal -
33 
Open-pit mining method for the extraction of mineral ores and the submarine tailings
34 
disposal method shall be prohibited.
35 
Sec. 61. Failure to initiate mining operations. - Failure to commence the
36 
development stage of the mining operations in accordance with the work program within
25


1 
two (2) years from the award of the mineral agreement shall cause the cancellation of
2 
the mineral agreement. The contractor thereafter forfeits the value of the improvements
3 
made upon the land. The contractor and other corporations who are also run by the same
4 
directors and officers are thereafter banned from bidding to conduct mining operations
5 
for ten (10) years after failure to commence the development stage of the mining
6 
operations in accordance with the work program.
7 
Sec. 62. Mandatory consultations in each mining phase, - Mandatory consultations
8 
with affected persons and communities shall be underlaken in each phase of mining
9 
operation: exploration, extraction, processing, and mine closure to ensure that the
10 
peoples shall be informed of the proposed plans and methods that are proposed to be
11 
conducted.
12 
Sec. 63. FPIC on each stage of mining operation, - The free and prior Informed
13 
consent of the ICCs/IPs, the barangay assemblies, and private landowners, possessors,
14 
occupants shall be required at each and every stage of the mining operations.
15 
As to ICCs/IPs, their free and prior informed consent shall be secured in accordance with
16 
their laws, practices and processes. Violation of any of the conditions imposed by the
17 
ICCs/IPs on the contractor shall cause the cancellation of the mineral agreement.
18 
Included in this process is the explanation of the rights of ICCs/IPs of ownership and self-
19 
determination.
20 
Sec. 64. Muiti-partite monitoring. - The Council shall form a multi-partite
21 
monitoring team to monitor compliance by the contractor of the terms and conditions of
22 
the mineral agreement. It may conduct ocular inspections of the contract area at any
23 
time of the day and night. It shall also inspect all the books of contractors and refer the
24 
same to independent auditors. The Multi-partite monitoring team and/or the Bureau may
25 
confiscate surety, performance and guaranty bonds posted through an order to be
26 
promulgated by the Director. The Council, the Director or the local government
27 
authorities may deputize, when necessary, any member or unit of the Philippine National
28 
Police, barangay, duly registered nongovernment organization (NGO) or any qualified
29 
person to police any and ail mining activities.
30 
Sec. 65. Withdrawal from the mineral agreement - The contractor may withdraw
31 
from the mineral agreement at any time for justifiable cause with one (1) month's notice
32 
to the Bureau, the Council and/or the ICCs/IPs, and other government agencies as may
33 
be provided by law. The Council, in cooperation with other concerned government
34 
agencies, shall issue a clearance for withdrawal upon certifying that the contractor has
35 
complied with all its legal obligations, including the appropriate measures for mine closure
36 
and rehabilitation. Funds and bonds which have been put up by the contractor in
26


1 
accordance with this Act shall be forfeited.
2 
Sec. 66. Non-transferabHity of mineral agreements. - In no case shall mining rights
3 
under this Act be transferrable. The contractor shall also immediately notify the Council
4 
and the Bureau of any substantial change in the ownership and/or control of the
5 
corporation. Violation of this provision shall cause the cancellation of the agreement and
6 
forfeiture of assets and equipment of the contractor In favor of the State.
7 
Sec. 67. Access to information. - All contractors for mineral permits and
8 
agreements shall provide information to affected indigenous peoples, local communities,
9 
and local governments. The following information, among others, shall be required:
10 
a) 
The full disclosure of methods and processes of mining;
11 
b) 
The full disclosure of environmental and social risks;
12 
c) 
The full disclosure of ownership structure; and
13 
d) 
The full disclosure of financial sources.
14 
All information and documents related to proposals, mineral agreements, permits and
15 
mining operations shall not be considered confidential. 
Refusal to grant access to this
16 
information shall be cause for the disqualification of prospective proponents or
17 
cancellation of mineral agreements and permits.
18 
The Bureau, being the repository of all relevant information under this Act is mandated
19 
to grant access to the public of any information in its custody. Refusal or unnecessaiy
20 
delay by the officers of the Bureau to give information shall be punishable by a fine of
21 
fifty thousand pesos (PhP 50,000.00) for every Instance of refusal or unnecessary delay.
22 
Information requested by indigents or marginalized sectors shall be given to them for
23 
free.
24
25 
CHAPTER VI
26 
SMALL-SCALE MINING
27
28 
Sec. 68. Applicability of RA 7076. - Small-scale mining shall continue to be
29 
governed by the provisions of Republic Act No. 7076 or the People's Small-Scale Mining
30 
Act of 1991, Provided, That the Provincial/City Mining Regulatory Board shall be
31 
composed of the Governor or City Mayor, as chairperson, as the case may be, a
32 
representative from the DENR as co-chairperson, one (1) small-scale mining
33 
representative, one (1) large-scale mining representative, one representative from a
34 
nongovernment organization who shall come from an environmental group, one
35 
representative from a people's organization (PO) coming from the marginalized sector,
36 
and at least one (1) representative from the indigenous communities, whenever
37 
applicable, as members. The representatives from the private sector, non-government
27


1 
organization and indigenous communities shall be selected by their respective
2 
organizations and/or communities, and appointed by the PMRB or CMRB: Provided
3 
further/ That the conduct of small-scale mining shall also comply with the prohibitions and
4 
regulations established herein for large-scale mining. Only qualified individuals and
5 
cooperatives may apply for a small-scale mining permit.
6 
Sec. 69. Maximum term of smaii-scaie mining permits. - The term for small-scale
7 
mining permits shall be three (3) years, extendable to a maximum of fifteen (15) years.
8 
Sec. 70. Traditional small-scale mining within ancestral domains. - The Council
9 
shall conduct regular monitoring activities within its jurisdiction to determine if the
10 
provisions of relevant laws are complied with in traditional small-scale mining by ICCs/IPs
11 
within their respective ancestral domains.
12 
Sec. 71. FPIC in small-scale mining. - Small-scale mining activities within any
13 
ancestral domain by any person shall also require the free, prior, and Informed consent
14 
of ICCs/IPs.
15 
Sec. 72. Requirement for an Environmental and Social Impact Compliance
16 
Certificate. - Small-scale mining shall likewise require an Environmental and Social Impact
17 
Compliance Certificate. All small-scale mining applicants or proponents must show proof
18 
of compliance with the terms and conditions of Its Environmental and Social Impact
19 
Compliance Certificate (ESICC) prior to the issuance of a small-scale mining permit.
20 
Failure to submit this requirement will result in the non-issuance of the small-scale mining
21 
permit (SSMP).
22 
Sec, 73. Environmental measures in small-scale mining. - The State shall
23 
immediately address the environmental and health hazards and problems in small-scale
24 
mining, including the use of hazardous chemicals, such as mercury, cyanide and other
25 
chemicals, in the amalgamation of gold by small-scale miners.
26 
Sec. 74. Prohibition on the use of mercury. - Mercury use in small-scale mining
27 
shall be prohibited. The Bureau shall research, develop and actively promote appropriate
28 
technologies in small-scale mining Including labor-intensive methods, environmental
29 
protection and physical techniques of gold extraction among small-scale miners.
30 
Sec. 75. Multisectoral monitoring team. - A multisectoral monitoring team shall be
31 
organized to monitor the SSMP permittee's compliance with the terms and conditions of
32 
Its SSMP and EGC. The MMT shall conduct ocular Inspections of the SSMP area at any
33 
time of the day and night and shall have visitorial powers.
34 
Sec. 76. Alternative livelihood support. - The state shall support the improvement
35 
of the livelihood of small-scale-miners by extending the services for access to other more
36 
viable and sustainable forms of livelihood, and, if the same is not possible, the following
28


1 
support services:
2 
a) access to minerals markets and to financing;
3 
b) facilitating partnership with mining companies or contractors by, among
4 
others, requiring mining companies to buy tailings from small-scale mining
5 
operations for further processing or recycling;
6 
c) facilitating partnership among small-scale mining cooperatives; and
7 
d) other incentives to attract Informal small-scale miners to formalize their
8 
status,
9 
Sec. 77. Buying stations. - The Bangko Sentral ng Pilipinas shall ensure that buying
10 
stations acquire gold from small-scale traders at prevailing international gold market
11 
prices and the prevailing exchange rate set by the BSP Treasury Department on a daily
12 
basis.
13
14 
CHAPTER VII
15 
QUARRY RESOURCES
16
17 
Sec. 78. Quarry resources within ancestral domains. - Gathering of quarry
18 
resources, sand and gravel, guano and other organic fertilizer materials, and gemstones
19 
within ancestral domains shall likewise be subject to the free prior Informed consent of
20 
ICCs/IPs. ICCs/IPs and the government shall be entitled to at least ten per cent (10%)
21 
of royalties depending on whether the resources are found inside or outside ancestral
22 
domains. Permits shall be limited to a maximum term of five (5) years, renewable for
23 
like periods but not exceeding a total term of twenty five (25) years, and a maximum
24 
area of five (5) hectares.
25 
Sec. 79. Quarry Permit - Any qualified Filipino may apply for a quarry permit on
26 
privately- owned lands except ancestral domains and/of” public lands for building and
27 
construction materials such as marble, basalt, andesite, conglomerate, tuff, adobe,
28 
granite, gabbro, serpentine, inset filling materials, clay for ceramic tiles and building
29 
bricks, pumice, perlite and other similar materials that are extracted by quarrying from
30 
the ground at the provincial/city mining regulatory board. The provincial governor shall
31 
grant the permit after the applicant has complied with all the requirements as prescribed
32 
by the rules and regulations set forth by this Act. Provided, That gathering/extraction of
33 
sand for Its metallic contents such as magnetite from the country's rivers and shorelines
34 
shall be require a mineral agreement In lieu of a quarry permit.
35 
The maximum area which a qualified person may hold at any one time shall be limited to
36 
a surface area of five hectares (5 has.): Provided, That in large-scale quarry operations
37 
involving cement raw materials, marble, granite, sand and gravel and construction
29


1 
aggregates, a qualified person and the government may enter into a mineral agreement
2 
as defined herein.
3 
A quarry permit shall have a term of five (5) years, renevvable for like periods but not to
4 
exceed a total term of twenty-five (25) years. No quarry permit shall be Issued or granted
5 
on any area covered by a mineral agreement.
6 
Sec. 80. Quarry Fee and Taxes. - A permittee shall pay a quarry fee as provided
7 
for under the implementing rules and regulations. The permittee shall also pay the excise
8 
tax as provided by pertinent laws.
9 
Sec. 81. Cancellation of Quarry Permit - A quarry permit may be cancelled by the
10 
provincial governor for violations of the provisions of this Act or its implementing rules
11 
and regulations or the terms and conditions of said permit: Provided, That before the
12 
cancellation of such permit, the holder thereof shall be given the opportunity to be heard
13 
in an investigation conducted for the purpose.
14 
Sec. 82. Commercial Sand and Gravel Permit - Any qualified person may be
15 
granted a oermit by the provincial governor to extract and remove sand and gravel or
16 
other loose or unconsolidated materials outside ancestral domains which are used in their
17 
natural state, without undergoing processing from an area of not more than five hectares
18 
(5 has.) and In such quantities as may be specified in the permit.
19 
Sec. 83. Industrial Sand and Gravel Permit - Any qualified person may be granted
20 
an industrial sand and gravel permit by the Bureau for the extraction of sand and gravel
21 
and other loose or unconsolidated materials outside ancestral domains that necessitate
22 
the use of mechanical processing covering an area of not more than five hectares (5 has.)
23 
at any one time. The permit shall have a term of five (5) years, renewable for a like period
24 
but not to exceed a total term of twenty-five (25) years.
25 
Sec. 84. Exclusive Sand and Gravel Permit - Any qualified person may be granted
26 
an exclusive sand and gravel permit by the provincial governor to quarry and utilize sand
27 
and gravel or other loose or unconsolidated materials from public lands for his own use,
28 
Provided, That there will be no commercial disposition thereof.
29 
Sec. 85. Government Gratuitous Permit - Any government entity or instrumentality
30 
may be granted a gratuitous permit by the provincial governor to extract sand and gravel,
31 
quarry or loose unconsolidated materials outside ancestral domains needed in the
32 
construction of building and/or infrastructure for public use or other purposes over an
33 
area of not more than two hectares (2 has.) for a period coterminous with said
34 
construction.
35 
Sec. 86. Private Gratuitous Permit - Any owner of land may be granted a private
36 
gratuitous permit by the provincial governor to extract sand and gravel, quarry or loose
30


1 
unconsolidated materials within his property.
2 
Sec. 87. Guano Permit - Any qualified person may be granted a guano permit by
3 
the provincial governor to extract and utilize loose unconsolidated guano and other
4 
organic fertilizer materials in any portion of a municipality where he/she has an
5 
established domicile outside ancestral domains. The permit shall be for specific caves
6 
and/or for confined sites with locations verified by the Department's field officer in
7 
accordance with existing rules and regulations. Provided, That extraction does not violate
8 
and is consistent with the provisions in the Cave Conservation Act and the Wildlife Act.
9 
Sec. 88. Gemstone Gathering Permit - Any qualified Filipino may be granted a
10 
non-exclusive gemstone gathering permit by the provincial governor to gather loose
11 
stones useful as gemstones in rivers and other locations outside ancestral domains.
12 
Sec. 89. Council recommendation for approval. - All permits under Chapter VII of
13 
this Act shall require the recommendation of the Multi-Sectoral Mineral Council prior to
14 
approval by the provincial government unit. The absence of a recommendation from the
15 
Council prohibits the approval of any permit in this Chapter.
16
17 
CHAPTER VIII
18 
TRANSPORT, SALE AND PROCESSING OF MINERALS
19
20 
Sec. 90. Ore transport permit - A permit specifying the origin and quantity of non-
21 
processed mineral ores or minerals shall be required for their transport. Transport permits
22 
shall be issued by the Bureau. The absence of a permit shall be considered as prima
23 
facie evidence of illegal mining and shall be sufficient cause for the confiscation of the
24 
ores or minerals being transported, the tools and equipment utilized, and the vehicle
25 
containing the same.
26 
Sec. 91. Mineral trading registration. - No person shall engage in the trading of
27 
mineral products, either locally or internationally, unless registered with the Department
28 
of Trade and Industry and accredited by the Department, with a copy of said registration
29 
submitted to the Bureau.
30 
Sec. 92. Track record. - Only mining companies with demonstrated capacity and
31 
good environmental track record in mineral processing shall be given mineral processing
32 
permit. Tfie Council shall encourage contractors to put up processing plants within the
33 
community with the end in view of generating employment and developing other
34 
downstream industries.
35 
Sec. 93. Mineral processing permit - No individual, partnership, partnership,
36 
cooperative, corporation or other entity shall engage in the Secretary of the Department.
37 
Of Environment and Natural Resources (DENR).
31


1 
In the case of small-scale miners, the processing of mineral ores they produce, as well as
2 
the licensing of their custom mills or processing plants, shall continue to be governed by
3 
the provisions of Republic Act No. 7076.
4 
In the case of individuals, corporations, partnerships, cooperatives or other entities who
5 
are parties to a Mineral Agreement or a Financial or Technical Assistance Agreement,
6 
holders of quarry and industrial sand and gravel permits, the approved work program for
7 
the production period shall be sufficient requirement for them to process minerals In lieu
8 
of a mineral processing permit.
9 
A mineral processing permit shall be for a period of ten (10) years, renewable for like
10 
periods: Provided, That renewal shall not be allowed unless the permit holder has
11 
complied with all the terms and conditions of the permit and has not been found guilty
12 
of violation of any provision of this Act and its Implementing rules and regulations.
13 
After due process, a mineral processing permit may be suspended, revoked or cancelled
14 
by the DENR for violation of its terms and conditions, or of pertinent laws, rules and
15 
regulations.
16 
Mineral processing shall be Included in the Investment Priority plan to be prepared by the
17 
Board of Investment in accordance with Executive Order No. 226, as amended, otherwise
18 
known as the Omnibus Investment Code of 1987 and shall always be listed as a preferred
19 
area of investment.
20
21 
CHAPTER IX
22 
DEVELOPMENT OF COMMUNITIES, SCIENCE, AND TECHNOLOGY
23
24 
Sec. 94. Expenditure for community development - A contractor shall assist in the
25 
development of the community, and the promotion of the general welfare of its
26 
inhabitants towards sustainable development. Community development projects shall in
27 
no way decrease the obligation of the corporation with regard to royalties and fees due
28 
to communities or local government units. Community development projects should be
29 
consistent with the Comprehensive Land Use Plans (CLUP), Ancestral Domains
30 
Sustainable Development and Protection Plan (ADSDPP) and annual investment plans of
31 
the local governments, CADT/CAlT holders and the like.
32 
Sec. 95. Empioyment of Fiiipinos and training of members of the locai community.
33 
- A contractor and/or permittee shall give preference to Filipino citizens in all types of
34 
mining employment within the country. Members of the local community shall be trained
35 
in all aspects of the mining operations, including remining, recycling, rehabilitation, and
36 
the management thereof.
37 
Sec. 96. Use of indigenous goods, services and technologies. - A contractor shall
32


1 
give preference to the use of local goods, services, and the scientific and technical
2 
resources in all stages of mining operations, where the same are of equivalent quality
3 
and are available on equivalent terms as their imported counterparts.
4 
Sec. 97. Donation/turnover of facilities. - Prior to the cessation of mining
5 
operations occasioned by abandonment or withdrawal of operations, on public lands by
6 
the contractor, the latter shall have a period of one (1) year therefrom within which to
7 
remove Improvements; otherwise ail the infrastructure, facilities and equipment shall be
8 
turned over or donated tax-free to the proper government authorities, national or local,
9 
to ensure that said infrastructure facilities and equipment are continuously maintained
10 
and utilized by the host and neighboring communities. A fine of one hundred thousand
11 
pesos (PhP100,000.00) shall be imposed for every day of delay.
12
13 
CHAPTER X
14 
BENEFIT SHARING, TAXES AND FEES
15
16 
Sec. 98. Taxes and fees. - The contractor shall pay all taxes and fees as required
17 
by law. Including, but not limited to:
18 
a) contractor's Income tax;
19 
b) customs, duties and fees on imported capital equipment;
20 
c) value-added tax on Imported goods and services;
21 
d) withholding tax on interest payments on foreign loans;
22 
e) withholding tax on dividends to foreign stockholders;
23 
f) documentary stamps taxes;
24 
g) capital gains tax;
25 
h) excise tax on minerals;
26 
i) local business tax;
27 
j) real property tax;
28 
k) community tax;
29 
I) occupation fees;
30 
m) registration, accreditation, and permit fees; and
31 
n) water usage fees.
32 
Sec. 99. Government share. - Aside from the taxes and fees referred to in the
33 
preceding section. Government shall have at least a share equivalent to ten per cent
34 
(10%) of the gross revenues from the development and utilization of mineral resources
35 
that are owned by It to be set aside for the general fund of the government to be used,
36 
among others, for special projects such as energy development and generation and the
37 
management and conservation of protected areas in areas within the vicinity or adjacent
33


1 
to mining operations.
2 
Sec. 100. Indigenous cultural communities' royalty, - In case of mineral operations
3 
within ancestral domains, the contractor shall pay at least ten percent (10%) of the gross
4 
revenues as royalty to the ICCs/IPs. Community development programs shall not be
5 
considered as royalty payment. The payment of the royalties shall directly be given to the
6 
communities in a process that build on the ICCs/IPs' traditional and customary laws:
7 
Provided, That the royalty established in this Act shall be a minimum royalty payment and
8 
may still be subject to other conditions to be agreed by the parties, free from any external
9 
manipulation, interference, coercion, and other analogous acts, and obtained after fully
10 
disclosing the intent and scope, including the positive and negative impacts of the activity,
11 
in a language and process understandable and acceptable to them.
12 
Sec. 101. Scientific research and development fund, - A Scientific Research and
13 
Development Fund shall be set aside to be devoted to research and development of clean
14 
mining technologies, improvement of mining processes, mine rehabilitation, mitigating
15 
technologies, setting up and maintenance of an independent pool of experts, and
16 
operational expenses of the Bureau.
17 
Sec. 102. Legal support services fund. - A legal support fund shall be set aside
18 
for the use of the communities and local government units for cases that they may file
19 
against mining permittees or cases that may be filed against them by mining companies
20 
in trying to do their responsibility of protecting the rights of the marginalized groups, the
21 
environment and sustainable development in general.
22 
Sec. 103. Local Government Unit share. - Local Government Units shall be entitled
23 
to a share of the net revenues from mining operations which shall be paid directly to the
24 
provincial/independent component city/highly urbanized city treasurer/s for distribution
25 
to other local government units. To determine the government share, the following
26 
variables shall be considered:
27 
a) 
Classification of local government;
28 
b) 
Vulnerability; and
29 
c) 
Human development index.
30 
A percentage of this amount shall be set aside by the respective local government units
31 
for Disaster Risk Management. This fund shall likewise benefit ICCs/IPs within the
32 
territory of the local government unit. Provided, That the administrative and operational
33 
expenses of the Council shall also be taken from this share.
34 
Sec. 104. Mine wastes and tailings fees. - A semi-annual fee to be known as mine
35 
wastes and tailings fee Is hereby imposed on all operating mining companies in
36 
accordance with the implementing rules and regulations. The mine wastes and tailings
34


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
fee shall accrue to a fund to be used as support funds for monitoring activities of the 
Council. The Secretary is authorized to increase mine wastes and tailings fees, when 
public interest so requires.
Sec. 105. Incentives, - Incentives that shall be given to the contractors shall only 
be limited to pollution control or mitigation devices.
Sec. 106. Deposit of capitai and profits requirement - As part of their 
demonstrated financial capacity, all large-scale mining companies/contractors are 
required to deposit their capital investment and profits In banks or financial institutions 
that are owned, managed and operated by the Philippine gover nment.
Sec. 107. Generai ruie on profit repatriation, - Contractors with foreign financial 
assistance shall be allowed to repatriate their profits from mining projects that should not 
exceed fifty percent (50 %) of the total posted at the end of every fiscal year. Full 
disclosure of profits is required. The full repatriation of profits shall be allowed one year 
after the cessation of mining activities and the progressive rehabilitation of a mining area 
as specified In the mineral agreement of each contractor.
The guidelines for Sections 106 and 107 shall be Issued by the Bangko Sentral ng Pilipinas 
and shall be furnished to the Department, Bureau, Council and all respective contractors 
in the industry.
CHAPTER XI
SAFETY AND ENVIRONMENTAL PROTECTION 
A. SAFETY
Sec. 108. Mines safety. - All contractors and permittees shall strictly comply with 
all the mines and safety rules and regulations concerning the safe and sanitary upkeep 
of the mines and mining development. Government personnel involved In the 
implementation of mines safety, occupational health and environmental rules and 
regulations shall be covered under Republic Act No. 7305 or the Magna Carta of Public 
Health Workers.
Sec. 109. Mine iabor. - No person under sixteen (16) years of age shall be 
employed in any place of mining operations and no person under eighteen (18) years of 
age shall be employed in a mine.
Sec. 110. Mine supervision. - All mining and quarrying operations shall have at 
least one (1) licensed mining engineer for every fifty (50) employees. Such engineer/s 
shall have at least five (5) years of experience In mining operations, and one (1) registered 
foreman.
Sec. 111. Safety of workers. - All mining companies shall provide safeguards to
35


1 
the health and well-being of workers. The Regional Office of the Department of Labor
2 
and Employment shall inspect all mining sites within their areas of jurisdiction to
3 
determine the conditions of workers. Denial of entry shall be punishable under this Act.
4 
Representatives of labor unions siiall also have visitorial rights.
5 
Sec. 112. Mine Inspection. - The mines regional directors and the Council shall
6 
have jurisdiction over the safety inspection of all installations, surface or underground, in
7 
mining operations at reasonable hours of day or night and as much as possible in a
8 
manner that will not impede or obstruct work in progress of a contractor or permittee.
9 
Monitoring reports and recommendations of the Bureau shall be submitted to the Council.
10 
Sec. 113. Power to issue orders. - The mines regional director, in consultation with
11 
the Environmental Management Bureau, forthwith or within such time as specified in the
12 
order, require the contractor to remedy any practice connected with mining, which is not
13 
In accordance with safety and anti-pollution laws and regulations. In case of imminent
14 
danger to life or property, the Director may summarily suspend the mining operation until
15 
the danger is removed, or appropriate measures are taken by the contractor.
16 
Unreasonable delay to remove the danger or Introduce the necessary improvements by
17 
the contractor shall be a cause for the cancellation of the mineral agreement.
18 
Sec. 114. Report of accidents. - In case of any incident or accident, causing or
19 
creating the danger of loss of life or serious physical injuries, the person in charge of
20 
operations shall immediately report the same to the regional office where the operations
21 
are situated. Failure to report the same without justifiable reason shall be cause for the
22 
Imposition of administrative sanctions prescribed in the rules and regulations
23 
Implementing this Act.
24
25 
B. ENVIRONMENTAL PROTECTION
26
27 
Sec. 115. Environmental Insurance. - Contractors and mineral processing permit
28 
holders shall be obliged to execute an insurance contract as an environmental assurance
29 
for each and every source of pollution or disaster, relative to the "worst case scenario"
30 
costs, following accepted actuarial standards. Provided, That in no way shall this provision
31 
be construed to remove or reduce the liability of the contractors and/or permit holders to
32 
compensate any damage caused by their operations. Provided further. That the insurer
33 
shall be an accredited international company in good standing.
34 
Prior to the approval of the insL4rance contract by the DENR, the DLNR shall seek and
35 
consider the opinion of an independent expert as to the financial credibility of the insurer.
36 
Sec. 116. Calamity and Human Rights Protection Fund. - Persons Issued a mineral
37 
agreement shall deposit five million pesos (PhP 5,000,000.00) semi-annually In an
36


1 
interest-bearing account a common fund maintained by the national government which
2 
shall be used for responding to, or ameliorating the effects of calamities, natural disasters
3 
and human rights violations Including militarization, displacement, and forcible evacuation
4 
in any part of the country in relation to mining activities. Provided, That in no way shall
5 
this provision be construed to remove or reduce the liability of the contractors and/or
6 
permit holders to compensate any damage caused by their operations.
7 
Sec. 117. Performance Bend. - The contractor shall put up a oond in an amount
8 
equivalent to fifty per cent (50%) of the projected cost of rehabilitation as validated by
9 
independent studies. This amount shall be deposited in an interest-bearing account. The
10 
bond shall be forfeited in the event that the contractor shall fail or default in the
11 
rehabilitation or remediation of the mining area as Included In the work plan of the
12 
contractor or abandons the mine at any time of its operations.
13 
Sec. 118. Rehabilitation. - Contractors and permittees shall technically and
14 
biologically rehabilitate the excavated, mined-out, tailings covered and disturbed areas to
15 
the condition of environmental safety, as may be provided in the implementing rules and
16 
regulations of this Act. A mine rehabilitation fund shall be created, based on the
17 
contractor's approved work program, and shall be deposited as a trust fund in a
18 
government depository bank and used for physical and social rehabilitation of areas and
19 
communities affected by mining activities and for research on the social, technical and
20 
preventive aspects of rehabilitation. Failure to fulfill the above obligation shall mean
21 
immediate suspension or closure of the mining activities of the contractor/permittee
22 
concerned.
23 
Mining firms are hereby mandated to reforest 100 hectares of land for every one hectare
24 
of land they utilize in the course of their mining operations. Mining firms are also
25 
mandated to immediately restore and replant areas that they have already finished
26 
excavating as they move on to other development sites: Provided, That if mining firms
27 
cannot do the reforestation in their immediate area they could do the reforestation in
28 
other areas provided they comply with 100:1 hectare ratio. Any mining firm found to have
29 
violated or have not complied with the foregoing mandatory provisions shall be held liable
30 
with the penalty of revocation of their mining permits and payment of a fine of not less
31 
than One Million Pesos (PhP 1,000,000).
32 
The owners, officers and management employee of said mining firms shall also be held
33 
liable and be subject to imprisonment of not less than one (1) year nor more than three
34 
(3) years.
35 
Sec. 119. Progressive rehabilitation. - Contractors shall also conduct progressive
36 
rehabilitation activities.
37


1 
Sec. 120. Adoption of Precautionary Principle. - When an activity related to mining
2 
raises threats of harm to human health or the environment, precautionary measures shall
3 
be taken proactively even if some cause and effect relationship are not fully established
4 
scientifically. The mining proponent and the Bureau shall also be obliged to disclose
5 
whether or not the cause and effect have not yet been scientifically established.
6 
Sec. 121. Adoption of Polluter Pays Principle. - Polluters shall pay for the damage
7 
they cause to the environment. The amount of damages shall be determined by
8 
accredited Independent consultants, to be chosen from a list and agreed upon by both
9 
the mining proponent and by the Council.
10 
Sec. 122. Tailings impoundment - Tailings Impoundments shali be built away from
11 
critical watershed drainage areas. Furthermore, it shall be ensured that Impoundments
12 
will not endanger critical watershed areas or low-lying valleys In the event of accidents
13 
under abnormal conditions. Tailing impoundments and dams shall meet the International
14 
standards for large dams.
15 
Sec. 123. Dumping of waste. - Dumping of waste or tailings In any body of water
16 
shall be prohibited. Provisions on the Clean Water Act and Clean Air Act shall be strictly
17 
implemented.
18 
Sec. 124. Use of toxic chemicals and methods. - At all times, mining contractors
19 
shall use chemicals or reagents which would result to the least environmental and social
20 
destruction. The use of mercury and cyanide for the extraction of gold, silver and other
21 
minerals shall be prohibited. The use of blow torching to separate gold from amalgam
22 
shall likewise be prohibited.
23 
Sec. 125. Preservation of topsoil. - The removed topsoil, or the more productive
24 
horizons of the soil shall be preserved for other uses.
25 
Sec. 126. Priority use for water. - The National Water Resources Board shall
26 
investigate any existing use of water resources in the area whether or not covered by any
27 
existing water permit or registiatlon. Upon determination of any existing use, the
28 
applicant shall procure the consent of all water users and/or the free prior and Informed
29 
consent of ICCs/IPs with or without water permits within the same groundwater network
30 
or any downstream users of water resources. In all instances, priority shall be given to
31 
use of water for domestic, municipal, and agricultural purposes. If potential negative
32 
Impact on other water users is Identified, the water permit shall not be granted. For water
33 
resources within the ancestral domain of indigenous peoples, no water permit shall be
34 
granted by the National Water Resources Board without the free and prior informed
35 
consent of indigenous peoples.
36 
Sec. 127. Recycling of water resources. - Water used in mining operations shall be
38


1
2
3
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37
recycled. Mining contractors shall be required to provide for the methods or equipment 
for the recycling or reuse of water. Released contaminated water shall be treated 
accordingly to meet national standards. Released water must at least be equivalent In 
quality to the baseline water quality.
Sec. 128. Water user fee. - A water user fee that reflects the value of water to 
the country and community shall be imposed by the Council for water used in mining 
operations. Contractors shall pay the fee to the National Water Resources Board which 
shall use the same for monitoring and improvement of the affected waterways and 
systems and the mitigation of negative impacts thereon to ensure that communities shall 
have access to clean water.
C. ACID MINE DRAINAGE
Sec. 129. Prohibition from using acid-generating waste rock to buiidroads or dams. 
- To prevent or mitigate acid mine drainage, there shall be a prohibition against using 
acid-generating waste rock to build roads or dams or other infrastructures. The use of 
such materials shall only be used after treatment to neutralize the effect of acid mine 
drainage.
Sec. 130. Estabiishment of a prediction and monitoring system.-The Bureau shall 
establish a prediction and monitoring system to identify potential acid-producing materials 
and monitor their production of acid waste.
Sec. 131. Avoidance of waterways. - Open pits, waste rock piles and tailings 
Impoundments shall not be built near or on waterways to prevent contact and subsequent 
acid production and groundwater contamination.
Sec. 132. Remining. - Remining shall be prioritized over the opening of new mines 
to maximize and recover the remaining minerals from the rejects or wastes of previous 
mines and mining operations. Provided, That remining operations shall follow the 
processes, standards, parameters and guidelines set for mining operations in this Act.
Sec. 133. Suits after the termination of contracts or projects. - Recognizing that 
the effects of mining may be seen or felt, actions relating to the health of affected 
communities or peoples, environmental degradation and other similar effects may be 
maintained against the project proponent and/or persons even after the mineral 
agreement or mining project has terminated.
CHAPTER XII
RESOLUTION OF CONFLICTS


1 
Sec. 134. Pane! of arbitrators. - There shall be a panel of arbitrators in the regional
2 
office of the Department composed of three (3) members, two (2) of whom must be
3 
members of the Philippine Bar in good standing and one a licensed mming engineer or a
4 
professional in a related field, and duly designated by the Secretary as recommended by
5 
the Mines and Geosciences Bureau Director. Those designated as members of the panel
6 
shall serve as such in addition to their work in the Department without receiving any
7 
additional compensation As much as practicable, said members shall come from the
8 
different bureaus of the Department in the region. The presiding officer thereof shall be
9 
selected by the drawing of lots. His tenure as presiding officer shall be on a yearly basis.
10 
The members of the panel shall perform their duties and obligations in hearing and
11 
deciding cases until their designation is withdrawn or revoked by the Secretary. Within
12 
thirty (30) working days, after the submission of the case by the parties for decision, the
13 
panel shall have exclusive and original jurisdiction to hear and decide on the following:
14 
a) Questions involving compliance with the established technical guidelines
15 
and standards herein established, or those to be established by the
16 
Implementing rules and regulations of this Act;
17 
b) Questions involving the compliance with technical procedures herein
18 
established, or those to be established by the implementing rules and
19 
regulations; and
20 
c) Other similar instances wherein the technological and technical expertise
21 
of the Department shall be needed.
22 
Disputes involving real rights, contractual obligations and the other causes of action that
23 
are outside the technological and technical expertise of the Panel of Arbitrators shall be
24 
under the jurisdiction of the regular courts or as otherwise provided by other special laws.
25 
Provided, That disputes pending before the Bureau and the Department at the date of
26 
the effectivity of this Act shall undergo an immediate review within sixty (60) working
27 
days upon the passage of this Act to determine the cause of action. Those which are
28 
outside the technical expertise of the Department or Bureau shall be refiled with the
29 
appropriate court, without costs to the complainant or petitioner.
30 
Sec. 135. Appeal - The decision or order of the panel of arbitrators may be
31 
appealed by the party not satisfied thereto to the Mines Adjudication Board within fifteen
32 
(15) days from receipt thereof which must decide the case within thirty (30) days from
33 
submission thereof for decision.
34 
Sec. 136. Mines Adjudication Board (MAB). - The Mines Adjudication Board shall
35 
be composed of three (3) members. The Secretary of the DENR shall be the Chairperson
36 
with the Director of the Mines and Geosciences Bureau and the Undersecretary for
40


1 
Operations of the Department as members thereof. The Board shall have the following
2 
powers and functions:
3 
a) To promulgate rules and regulations governing the hearing and disposition
4 
of cases before it, as well as those pertaining to its internal functions, and
5 
such rules and regulations as may be necessary to carry out its functions;
6 
b) To administer oaths, summon the parties to a controversy, issue subpoenas
7 
requiring the attendance and testimony of witnesses or the production of
8 
such books, papers, contracts, records, statement of accounts,
9 
agreements, and other documents as may be material to a just
10 
determination of the matter under Investigation, and to testify in any
11 
investigation or hearing conducted in pursuance of this Act;
12 
c) To conduct hearings on all matters within its jurisdiction, proceed to hear
13 
and determine the disputes In the absence of any party thereto who has
14 
been summoned or served with notice to appear, conduct Its proceedings
15 
or any part thereof in public or in private, adjourn its hearings at any time
16 
and place, refer technical matters or accounts to an expert and to accept
17 
his report as evidence after hearing of the parties upon due notice, direct
18 
parties to be joined in or excluded from the proceedings, correct, amend,
19 
or waive any error, defect or irregularity, whether In substance or In form,
20 
give all such directions as it may deem necessary or expedient in the
21 
determination of the dispute before it, and dismiss the mining dispute as
22 
part thereof, where it is trivial or where further proceedings by the Board
23 
are not necessary or desirable:
24 
d) To hold any person in contempt, directly or indirectly, and impose
25 
appropriate penalties therefor; and
26 
e) To enjoin any or all acts involving or arising from any case pending before
27 
it which, if not restrained forthwith, may cause grave or irreparable damage
28 
to any of the parties to the case or seriously affect social and economic
29 
stability.
30 
In any proceeding before the Board, the rules of evidence prevailing in courts of law or
31 
equity shall not be controlling and it is the spirit and intention of this Act that shall govern.
32 
The Board shall use every and all reasonable means to ascertain the facts in each case
33 
speedily and objectively and without regard to technicalities of law or procedure, all in
34 
the interest of due process and social justice. In any proceeding before the Board, the
35 
parties may be represented by legal counsel. The findings of fact of the Board shall be
36 
conclusive and binding on the parties and Its decision or order shall be final and executory.
41


1 
A petition for review by certiorari and question of law may be filed by the aggrieved party
2 
with the Supreme Court within thirty (30) days from receipt of the order or decision of
3 
the Board.
4
5 
CHAPTER XIII
6 
ACCESS TO JUSTICE
7
8 
Sec. 137. Obligation to respect human rights. - Corporations shall respect, protect
9 
and promote the human rights of communities affected by mining, including the right to
10 
life, liberty and property, freedom of movement, right of public participation and the right
11 
to self-determination of indigenous cultural communities.
12 
Sec. 138. Violations of human rights. - Extrajudicial killing, torture, involuntary
13 
disappearance, forcible displacement of populations, setting up of checkpoints, and
14 
imposition of toll fees which impede the freedom of movement within mineral areas,
15 
deprivation of food and water sources, vote-buying and bribery for the purpose of
16 
securing consent or endorsement for the mining project, and other analogous acts are
17 
violations of human rights. Violations of human rights by contractors shall cause the
18 
immediate cancellation of mineral agreements. The offending contractor, as well as
19 
corporations having the same directors and/or officers as of the offending contractor shall
20 
be perpetually disqualified from being granted a mineral agreement. All equipment and
21 
assets of the corporation or person shall be confiscated in favor of the government.
22 
Sec. 139. Use of paramilitary and military forces. - All mining companies are strictly
23 
prohibited from employing paramilitary groups. Use of private and military forces shall
24 
result in the automatic cancellation of the mineral agreement and the filing of appropriate
25 
civil, criminal and/or administrative charges.
26 
Sec. 140. Strategic Legal Action Against Public Participation (SLAPP). - SLAPPs
27 
shall be strictly prohibited. SlAPP is any legal action, whether civil, criminal or
28 
administrative, filed to harass, vex, exert legal action or stifle legal recourses of
29 
community members complaining against violations of this Act or enforcing the provisions
30 
of the Act, or exercising their freedom of assembly or right of public participation. The
31 
investigating prosecutor or cour^ shall immediately determine within a period of thirty
32 
(30) days from filing thereof whether a legal action is a SLAPP and accordingly dismiss
33 
the same.
34 
Sec. 141. Indigents' suit - IndIgents shall be exempt from payment of any
35 
administrative or court fees, including docket fees for the filing of a case. Lawyers shall
36 
be provided by the Public Attorney's Office to pauper litigants in case they could not afford
37 
legal services.
42


1 
Sec. 142. Application of the customary laws of ICCs/IPs. - The contractor shall
2 
respect the customary laws of the ICCs/IPs and shall submit to the processes of their
3 
customary laws, Provided, That these laws are not contrary to the provisions of the
4 
Constitution.
5 
Sec. 143. Strict iiabiiity. - Mining corporations are strictly liable for all damages
6 
that the mining operations might cause. In case of any actual damage, the burden of
7 
proof shall lie with the corporations.
8 
Sec. 144. Piercing the corporate veil. - When the separate personality of the
9 
corporation from Its shareholders is being invoked as defense In order to perpetuate a
10 
crime, fraud or other machinations, or evade liability, the separate personality of the
11 
corporation shall be set aside. Civil, criminal and administrative actions may thus be filed
12 
directly against the members of the Board of Directors, officers and/or individual
13 
stockholders.
14 
Sec. 145. Citizen suits. - For the purpose of enforcing the provisions of this Act or
15 
its implementing rules and regulations, any citizen may file appropriate civil, criminal and
16 
administrative suits against any of the following:
17 
a) Any person who violates or fails to comply with the provisions of this Act
18 
or Its Implementing rules and regulations;
19 
b) Any public officer with respect to orders, rules and regulations inconsistent
20 
with this Act; or
21 
c) Any public officer who willfully or grossly neglects the performance of an
22 
act specifically enjoined as a duty by this Act or its rules and regulations;
23 
or abuses the authority in the performance of a duty or duties under this
24 
Act or Its implementing rules and regulations.
25 
The court shall exempt such action from the payment of f'tmg fees, except fees for actions
26 
not capable of pecuniary estimation, and shall likewise, upon prima facie showing of non-
27 
enforcement or violation complained of, exempt the plaintiff from filing an Injunction bond
28 
for the issuance of a preliminary injunction.
29 
The court shall determine whether or not the complaint is malicious or baseless and shall
30 
accordingly dismiss the petition within thirty (30) days upon the filing of the case.
31
32 
CHAPTER XIV
33 
PENAL PROVISIONS
34
35 
Sec. 146. Grounds for the cancellation of mineral agreements and permits. -
36 
a) Violation of any provision of this Act;
43


1 
b) Human rights violations perpetrated by the contractor or any agent of the
2 
contractor;
3 
c) Non-payment of taxes;
4 
d) Bribery, use of force, intimidation, threat, coercion of public officials and
5 
communities;
6 
e) Any act that shall create or contribute to conflicts; and
7 
f) Other analogous acts.
8 
Provided^ That, violations of environmental provisions shall cause the immediate
9 
cancellation of mining permits, and the contractor shall be required to pay for the
10 
rehabilitation, restoration or clean-up of the impacts of such violations.
11 
Corporations, corporate directors and/or officers found guilty of the c^bove enumeration
12 
may be subjected to a perpetual ban in the mining industry in the Philippines.
13 
Sec. 147. False statements. - Any person who knowingly presents any false
14 
application, declaration, or evidence to the Government or publishes or causes to be
15 
published any prospectus or othe*" information containing any false sta tement relating to
16 
mines, mining operations or mineral agreements and permits shall, upon conviction, be
17 
penalized by a fine of not exceeding One Hundred Thousand pesos (PhP100,000.00).
18 
Sec. 148. Illegal exploration. - Any person undertaking exploration work without
19 
the necessary exploration permit shall, upon conviction, be penalized by a fine of not
20 
exceeding Five Million pesos (P5,000,000.00).
21 
Sec 149. Theft of minerals. - Any person extracting minerals and disposing the
22 
same without a mining agreement, lease, permit, license, or steals minerals or ores or
23 
the products thereof from mines or mills or processing plants shall, upon conviction, be
24 
imprisoned from six (6) months to six (6) years or pay a fine from One Hundred thousand
25 
pesos (P100,000.00) to One Million pesos (PhPl,000,000.00) or both, at the discretion of
26 
the appropriate court. In addition, he shall be liable to pay damages and compensation
27 
for the minerals removed, extracted, and disposed of. In the case of associations,
28 
partnerships, or corporations, the president and each of the directors thereof shall be
29 
responsible for the acts committed by such association, corporation, or partnership.
30 
Sec. 150. Unauthorized dealing, selling, and/or buying of goid. - Any person,
31 
partnership or corporation who shall sell, buy or in any manner deal gold from any miner
32 
or person without being duly authorized by the Bangko Sentra! no Pilipinas shall be
33 
punished as unauthorized dealing and shall be penalized in accordance with the provisions
34 
In this Act.
35 
Sec. 151. Destruction of mining structures. - Any person who willfully destroys or
36 
damages structures in or on the mining area or on the mill sites shall, upon conviction.
44


1 
be imprisoned for a per!od not to exceed five (5) years and shat , in addition, pay
2 
compensation for the damages which may have been caused thereby.
3 
Sec. 152. Mines arson. - Any person who willfully sets fire to any mineral stockpile,
4 
mine or workings, fittings or a mine, shall be guilty of arson and shall be punished, upon
5 
conviction, by the appropriate court in accordance with the provisions of the Revised
6 
Penal Code and shall, in addition, pay compensation for the damages caused hereby.
7 
Sec. 153. Willful damage to a mine. - Any person who willfully damages a mine,
8 
unlawfully causes water to run into a mine, obstructs any shaft or passage to a mine,
9 
renders useless, damages or destroys any machine, appliance, apparatus, rope, chain,
10 
tackle, or any other things used in a mine, shall be punished, upon conviction, by the
11 
appropriate court, by Imprisonment not exceeding a period of five (5) years and shall, in
12 
addition, pay compensation for the damages caused thereby.
13 
Sec. 154. Illegal obstruction to permittees or contractors. - Any person who,
14 
without justifiable cause, prevents or obstructs the holder of any pei mit, agreement or
15 
lease from undertaking his mining operations shall be punished, upon conviction by the
16 
appropriate court, by a fine not exceeding Five thousand pesos (PhP 5,000.00).
17 
Sec. 155. Vitiation of FPIC - Any person found to have vitiated the consent of the
18 
ICCs/IPs through bribery, threat, force, and/or intimidation, or any other similar means,
19 
shall suffer the penalty of six (6) years and one (1) day to ten (10) years in prison, and
20 
a fine of at least two million pesos (PhP 2,000,000.00). If the perpetrator is a government
21 
official, the penalty shall be eight (8) years and one (1) day to twelve (12) years
22 
Imprisonment, and a fine of at least four (4) million pesos (PhP 4,000,000.00). He/she
23 
shall be perpetually prohibited from assuming public office and shall be disqualified from
24 
receiving other benefits by virtue of his/her position in government.
25 
Sec. 156. Penaity for human rights vioiations. - Contractors or other persons who
26 
have violated the human rights of communities in connection with the mining operations
27 
shall be penalized with ten (10) years to fourteen (14) years imprisonment and a fine of
28 
at least five million pesos (PhP 5,000.000,00) and shall indemnify the victims.
29 
Sec. 157. Amendment to Section 27 of Republic Act No. 7076 or the Smali-scale
30 
Mining Act - Violations of the provisions of RA 7076 or of the rules and regulations issued
31 
pursuant hereto shall be penalized with imprisonment of S'x (6) years and 1 day to twelve
32 
(12) years. The State shall confiscate and seize equipment, tools and Instruments; effect
33 
immediate suspension or closure of the mining activities of the permittee concerned and
34 
revoke the permit.
35 
Sec. 158. Abandonment - Contractors and/or permittees who shall abandon mines
36 
shall be perpetually banned or disqualified from conducting mining operations, directly or
45


1
2
3
4
5
6
7
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21 
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25
26
27
28
29
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31
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33
34
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36
37
38
indirectly. The ban and/or disqualification shall include the officers and directors of 
corporations that have abandoned mines.
Sec. 159. Confiscation of equipment and property. - The equipment and property 
of contractors and permit holders violating this Act shall be forfeited in favor of the 
government.
Sec. 160. Non-application of the corporate veil. - Any person violating the 
provisions of Commonwealth Act No. 108, or the Anti-Dummy Law of the Philippines as 
amended, or is found to have used the corporate structure to defeat the provisions of this 
Act shall suffer the penalty of five million pesos (PhP 5,000,000.00) and perpetual ban in 
the mining industry.
Sec. 161. Reinstatement of revoked permits. - After notice and hearing, revoked 
permits that have undergone due process may be reinstated. Provided, That it may only 
be reinstated once.
CHAPTER XV
TRANSITORY PROVISIONS
Sec. 162. - There shall be a moratorium on all mining activities until all the systems 
are in place for the proper implementation of the law.
Sec. 163. - All existing mining permits, licenses and agreements are hereby 
deemed cancelled. Those mine workers and their families that may be displaced during 
the transition period shall receive livelihood support and job placements to be facilitated 
by the appropriate agencies of the State.
Sec. 164. - The classification of public lands as mineral reservations pursuant to 
pre-existing laws shall hereby cease. All such lands shall be closed to mining unless 
opened thereto in accordance with the provisions of this Act. The President s power to 
declare mineral reservations shall henceforth cease to exist. A review of the current 
mineral land classification shall be conducted to determine the best livelihood and 
economic option for the said area.
Sec. 165. - The members of the panels of arbitrators and the provincial or city 
mining regulatory boards established under Republic Act No. 7942 shall hold-over their 
positions until replaced in accordance with provisions of this Act.
CHAPTER XVI 
FINAL PROVISIONS
Sec. 166. Separability Clause. - The provisions of this Act are hereby declared to 
be separable and, in the event of any such provisions are declared unconstitutional, the
46


1 
other provisions which are not affected thereby shall remain in force and effect.
2 
Sec. 167. Repealing Clause. - Republic Act No. 7942, Presidential Decree 463,
3 
Presidential Decree 512, and other related mining laws are hereby repealed. All provisions
4 
in laws, decrees, issuances and other regulations inconsistent with this present law shall
5 
be deemed amended or repealed if the inconsistency is irreconcilable.
6 
Sec. 168. Funds. - The amount of One Hundred Billion Pesos (PhP
7 
100,000,000,000.00) is hereby appropriated for the proper functioning of the Bureau, the
8 
Council, and other bodies established under this Act of which half of the said amount
9 
shall be allotted for the baseline mineral exploration activities of the Bureau.
10 
Sec. 169. Implementing Rules and Regulations. - The implementing rules and
11 
regulations of this Act shall be the product of joint collaboration by the Department, and
12 
representatives from the local government units, peoples' organizations, sectoral
13 
organizations and non-governmental organizations, and shall be drawn up after
14 
appropriate and exhaustive public consultations at all levels nationwide.
15 
Sec. 170. Effectivity, - This Act shall take effect within fifteen (15) days following
16 
its publication In two (2) national newspapers of general circulation In the Philippines.
Approved,
47