fe ov SENSE
f 9” RECEIVED

one, FEB 06 2q17
SEVENTEENTH CONGRESS ) li T

REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Maximo B. Rodriguez, Jr.
House Bill No. 4959
EXPLANATORY NOTE

This bill seeks to protect the rights of indigenous peoples affected by any mining
operation in ancestral domains, amending for the purpose Republic Act (RA) No. 7942
otherwise known as the "Philippine Mining Act of 1995," which was enacted to promote the
rational exploration, development, utilization and conservation of all mineral resources in
public and private lands within the country including ancestral lands.

After the approval of RA 7942, Republic Act No. 8371, otherwise known as the
‘Indigenous Peoples Rights Act,” was enacted to protect the rights of Indigenous Cultural
Communities (ICCS) and Indigenous Peoples (IPs) to their ancestral domains and ensure
their economic, social and cultural well being, among others. Section 46 of the said Act
provides, in part, that “The Ancestral Domains Office ... shall issue, upon the free and prior
informed consent of the ICCs/Ps concerned, certification prior to the grant of any license,
lease or permit for the exploration of natural resources affecting the interests of ICCs/Ps or
their ancestral domains.”

Thus, the Certification Precondition must be secured from the National Commission
on Indigenous Peoples (NCIP) before all departments and governmental agencies shall
issue, renew or grant any concession, license or lease to any project proponent or enter into
any product-sharing agreement with any party who plans to utilize natural resources within
the ancestral domains. Therefore, without the free and prior informed consent of the
concerned Indigenous Peoples community and appropriate Certification Precondition from
the NCIP, no permit should be issued by the DENR and other concemed agencies.

The said provision of the Indigenous Peoples Rights Act, however, has created
confusion among the stakeholders in the mining sector because the Philippine Mining Act of
1995 and its implementing guidelines do not explicitly provide for such requirement.

Further, Section 17 of Republic Act No. 7942 provides that royalty payment shall be
agreed upon by the parties which shall form part of a trust fund for the socioeconomic well-
being of the ICCs or IPs without indicating the exact amount to be paid by the contractor,
permit holder or mining operator. This particular provision has likewise led to disagreements
concerning the royalty payment.

It is therefore necessary to make the appropriate amendments to the Mining Act of
1996 to protect the rights of the indigenous peoples and ease the confusion regarding said
provisions.

In view of the foregoing, approval of this bill is earnestly recommended

W

MAXIMO B. RODRIGUEZ, JR.


a

SEVENTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES {
First Regular Session

HOUSE OF REPRESENTATIVES

_ Introduced by Representative Maximo B. Rodriguez, Jr.
House Bill No, 4959

AN ACT
PROTECTING THE RIGHTS OF INDIGENOUS PEOPLES AFFECTED BY MINING
OPERATIONS IN ANCESTRAL DOMAINS, AMENDING FOR THE PURPOSE REPUBLIC
ACT NO. 7942, OTHERWISE KNOWN AS THE “PHILIPPINE MINING ACT OF 1995”

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled.

SECTION 1. Section 16 of Republic Act No. 7942, otherwise known as the “Philippine
Mining Act of 1995,” is hereby amended to read as follows:

“SEC. 16. Opening of Ancestral Lands for Mining Operations. ~ No
ancestral land shall be opened for mining operations without the FREE AND
prior INFORMED consent of the indigenous cultural community [concemed]
AND A CERTIFICATION PRECONDITION ISSUED FOR THE PURPOSE BY
THE NATIONAL COMMISSION ON INDIGENOUS PEOPLES, AS
SPECIFIED UNDER SECTION 89 OF REPUBLIC ACT NO. 8371.”

SEC. 2. Section 17 of the same Actis also hereby amended to read as follows

“SEC. 17. Royalty Payments for indigenous Cultural Communities. ~

In the event of an agreement with an indigenous cuftural community pursuant

to the preceding section, [the] A royalty payment upon utilization of the

minerals shall be [agreed upon by the parties] GIVEN TO THE INDIGENOUS

CULTURAL COMMUNITY BY THE CONTRACTOR, PERMIT HOLDER, OR

MINING OPERATOR. The said royalty SHALL BE FIVE PERCENT (5%) OF

THE GROSS OUTPUT AND shall form part of a trust fund for the
socioeconomic well-being of the indigenous cultural community.”

SEC. 3. This Act shall take effect fifteen (15) days following its publication in at least two (2)
national newspapers of general circulation.

Approved,