Republic of the Philippines
HOUSE OF REPRESENTATIVES

PRESS
ee Wy
Quezon City SX 7.

eo 2)
§ RECEIVES, wi. |
n

NINETEENTH CONGRESS
Fifst Regular Session

59

HOUSE BILL NO.

Introduced by
KABATAAN PARTY-LIST Representative Raoul Danniel A. Manuel,
ACT TEACHERS PARTY-LIST Representative France L. Castro,
and GABRIELA wouew PARTY Representative Arlene D. Brosas

AN ACT
RE-ORIENTING THE PHILIPPINE MINING INDUSTRY TOWARDS NATIONAL
INDUSTRIALIZATION AND ENSURING THE HIGHEST INDUSTRY DEVELOPMENT
STANDARDS, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

In 1995, the Philippines passed Republic Act (RA) 7942, which liberalized every
aspect of the domestic mining industry, allowing foreign access and control of our
mineral resources including exploration, development and utilization. RA 7942
superseded the country's previous laws on mining, such as the interim Presidential
Decree 463 issued by President Ferdinand Marcos in 1974 and, even laws upheld by
the United States colonial government, including the U.S. Mining Act of 1972, the
Mining Law of 1905, and Commonwealth Act 137 or the Mining Act of 1935.

Yet, even at the onset, RA 7942 was already opposed. Its constitutionality was
questioned by a broad range of sotial sectors and civil society organizations (CSOs),

including environmental groups, lawyers, scientists, academics, patriots, and

agricultural and indigenous peoples’ organizations.



In 2004, the Supreme Court
unconstitutional, in the case of the

(C) of the Philippines finally declared RA 7942 as
Bugal B'laan Tribal Association vs. Ramos.

«
Le
However, before the year ended, the SC reversed its own decision and instead adopted

policy shifts such as moving on from

investments. Thereafter, the Execu'

administrative orders to supposedly
create a favorable climate for foreig

Historically, state policy has

for increased foreign economic inve!
Philippine government has pursued
effect limiting the industry to extract i

dependence on foreign capital and
entities.

This policy, however, has cre
environment, and the people. Twen!

signed into law and implemented ui
ecosystems, and its citizens are sul

implementation and its policy thrust.

Disasters caused by decade:

of the worst environmental tragedie!
Philippines at least every few years!

river biologically dead in 1996, just
signed into law; the Lafayette mine

Minerals Policy was made official in
2012, barely a month after former Pi

which supposedly aims to regulate
law.

Other phenomena related t«

io
land subsidence, acid mine drained,

increasing frequency over the past
mountainous, agricultural, and aqu

The losses sustained by the
comparison to the promised gains

did not reap the full benefits from th

‘active tolerance’ to ‘promotion’ of mining
e Department issued various executive and
harmonize laws with the Mining Act of 1995 and to
investors

ti

framed the Philippine minerals industry as a driver
tment and a domestic source of employment. The
the policy of liberalizing the mining industry and in
n and export of raw mineral ores, to import

chnologies, and to control by foreign and private

ated an unsustainable situation for the nation, the
ly-one years have passed since RA 7942 was

\der four (4) administrations. Now, the country, its
jering from the various adverse impacts of the law's

ut
iff

of liberalized mining operations have caused some
in the country. Mining disasters take place in the
the Marcopper tragedy that rendered the Boac

a year after the Philippine Mining Act of 1995 was
pill in Rapu-Rapu Island, shortly after the National
2005; and now, the Philex mine spill in August

res. Benigno Aquino Ill issued Executive Order 79,
fhe industry pending the passage of a new mining

ining operations in local communities, such as
nd landslides, have been documented with
ears. The damage done to the country's

fatic ecosystems has been immense.

country’s other environmental resources loom in
f the industry. Contrary to projections, the country
le current mining liberalization policy.



The real benefits of mining in
employment, government revenues,
alleviation is, in fact, not significant
Foundation, 97% of mineral product
proving the export-oriented nature of
industrialization and profit instead o'
country's local industries.

Additionally, the mining indus|
20 years of wanton mining liberalizat

lerms of its contributions to the country’s GDP,
investments, national industrialization and poverty

According to independent think-tank IBON

ion in the Philippines goes to foreign industries,
Philippine mining. It supports other countries’
being instrumental in the development of the

ry has remained a weak economic contributor after
ion. Foreign investments in mining fell from

US$1.45 billion in 2013 to US$693.1 million in 2014.

The share of mining in the gross domestic product is only 0.7%, while its

contribution to employment is only,
taxes, royalties and fees amounted
total tax revenues.

at 0.6%. Government shares from mining in
fo Php22.83 billion in 2013 or a measly 1.33% of

It is also important to note that mining has the highest poverty incidence of any

sector in the country at 48.7 percen
incidence include CARAGA (47.5%),
(44.92%), with the national average
correlation between mining and pov
mining firms that mining improves t

The current policy on mining hi

displacement of affected communiti
indigenous people's communities,
of our natural wealth, are being disp
exigency, or collusion in relation to
affected by the downstream environ
diminished productivity and food ins!

Grave human rights violation
Indigenous peoples organization

The notable mining areas with high poverty

the Zamboanga Peninsula (42.75%), Bicol region
lat 26 percent. This data shows, at the very least, a
rty that counters the claims of foreign-backed
le quality of life of the immediate communities

1as spawned more physical, social, and economic

s among other human rights violations. Foremost,

hose ancestral lands hold some of the last bastions

ossessed of their lands, whether through coercion,
ining projects. Agricultural and fishing communities

mental impacts of mining also suffer from

ecurity.

also arise in mining-affected communities.
‘TRIBU Kalipunan ng mga Katutubong Mamamayan

ng Pilipinas notes that in the administration of former Pres. Aquino III, there have been
at least 21 killings of indigenous pegples related to the defense of their lands from big

mining interests. One of the most revolting is the 2012 killing of pregnant Blaan lumad

leader Juvy Capion and her two other small children in Tampakan, North Cotabato,


when elements of the 27th Infantry
waging pangayaw or tribal war vers
2006.

Under the administration of P’

attalion strafed their home. The Blaan has been
is Multinational mining corporation Xstrata since

esident Rodrigo Duterte, the Philippines garnered

the highest number of environmental defenders killed in Asia with 48 deaths recorded in

his first year in office, in 2017. The
and logging.

President Duterte was credite

He appointed environment crusade

illings are linked with plantations, mining, poaching

\d for his consistent stand opposing open pit mining
Gina Lopez as the chief of the Department of the

Environment and Natural Resources in 2016. Secretary Lopez ordered the closure of 27

mining sites for violating environmer

Roy Cimatu quietly lifted the morato

ital laws. However, her successor, retired general
ium on mining exploration, opening practically all

mineral lands for mining interests. He also reversed the closure of 23 out of the 27

mining sites, essentially reversing t!

There are also other docume|
where citizen's rights to public parti

je previous decision

ited cases of both physical and legal harassment,
ipation are violated with impunity, such as in the

site of the Didipio Gold Copper Project owned by Australia-New Zealand firm

OceanaGold Corporation, the Runrt

ino Gold-Molybdenum Project of FCF Minerals Corp

owned by UK firm Metals Exploration Pic, and the Pao Gold-Copper Exploration Project
by Australian firm Royalco Resources Ltd in Nueva Vizcaya. Among the issues faced by

the mine-affected areas are forced
destruction of their homes and props
(SLAPP) suits, and harassment

Indeed, the current law, polic
industry are unsustainable from an
rights perspective. These can not a
of protecting the country's remainin
from more plunder; in the interest of
and reap the gains from the count

CSOs, grassroots communitit
clamoring for the repeal of RA 794
2002, the multisectoral Dapitan Init
commitment of non-government en
new legislation based on certain pri

isplacement of people from their land and homes,
erty, Strategic Lawsuits Against Public Participation

. and practices governing the Philippine mining
economic, ecological, legal, cultural, and human

\d should not be pursued any further, in the interest
finite mineral resources and national patrimony
allowing State and Filipino citizens to fully benefit
's vast mineral wealth.

s, and local governments have long been
and the passage of an alternative legislation. In
tive and the Dapitan Declaration affirmed the
ities and advocates to work for the enactment of
inciples.



In 2005, the People's Mining
Philippine mining industry, was draft
Patrimony through a series of consul
In the 17 Congress, the People’s
additions from other alternative mini

‘olicy (PMP), an alternative policy framework for the
ed and affirmed by the nationwide network Defend
tations with people's organizations and CSOs

ining Bill was enriched and improved with input and
bills and inputs from experts in mining,

environment, indigenous people's rights taxation, among others.

Local government officials at
measures such as moratoriums on |
the grassroots level of the past year
policy and legislation for the Philippi

Thus, this bill is an amalgamat
seek to reorient the Philippine minin
development and judicious use of o

he provincial level have also upheld LGU-based
rge-scale and/or open pit mining. These efforts at
are now converging into concrete proposals in

1e government to heed and take action on.

tion of previous alternative policy proposals which
industry towards the wise and sustainable
mineral resources. It defines the significant roles

that mining and a prosperous minerals industry play in attaining a progressive,

independent, industrialized and self:
extensive mineral wealth as part of i
potential to propel the country towar

It is estimated that the count
metallic mineral reserves (such as.

ol
deposits. Combined, the total han

billion to US$1 trillion: ten times the
times larger than its entire external

If properly regulated and dev
developing a strong, self-reliant and

reliant economy. It seeks to place the Philippine’s
's national patrimony, a resource that has the
ds industrialization and self-sufficiency

has around 7.1 billion metric tons (BMT) of
Id, copper, and nickel) and 51 BMT of non-metallic
f these reserves could reach around US$840
country's gross domestic product and 14 to 17

ebt.

oped, these resources will be a requisite to
progressive economy, founded on a healthy

balance between agriculture and industrialization and programmed to break the cycle of

the country’s underdevelopment.

This bill was first filed in the 1
Congress and again in the 18" Con
response to the critical need for an
industry, which should be anchored
people's rights and welfare, environ
sovereignty and patrimony, and nati

‘5th Congress, and, then re-filed in the 16" and 17th

gress, enriched by experience and discussions, in
ternative framework, a new regime for the mining
on the principles of social justice, respect for

mental conservation, defense of national

jonal industrialization.


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

_/

RAOVL DANNIEY A. MANUEL
Kabataan Partyl



‘Rept
HOUSE

NINE
Fi

HOUS

Iblic of the Philippines
IF REPRESENTATIVES
Quezon City

EENTH CONGRESS
st Regular Session

259
E BILL NO.

Introduced by KABATAAN PART"
ACT TEACHERS PART"
and GABRIELA WOMEN’S

-LIST Representative Raoul Danniel A. Manuel,
-LIST Representative France L. Castro,
PARTY Representative Arlene D. Brosas

RE-ORIENTING THE PHILIPPI
INDUSTRIALIZATION AND ENS!

AN ACT
IE MINING INDUSTRY TOWARDS NATIONAL
IRING THE HIGHEST INDUSTRY DEVELOPMENT

STANDARDS, |AND FOR OTHER PURPOSES

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

Congress assembled:

CHAPTER!

DECLARATION OF POLICIES

Section 1. Short Title. This Act shall

be known as the PEOPLE’S MINING ACT.

Section 2. Declaration of Policy. It

enshrined in the Philippine Constitution that the State

owns all the mineral, coal, natural gas and petroleum resources within its national territory,
its terrestrial, fluvial and marine domains, including its territorial seas, the seabed, the subsoil,
the insular shelves, and other sutimarine areas within its archipelagic baselines. The
appropriate utilization, sound management of the country’s finite mineral resources and the
enjoyment of the benefits of such is exclusive to the Filipino people. These resources shall in
no way be alienated

The Philippine mining industry shall be developed within the framework of national
industrialization through the nationalization of the industry towards self-sufficiency. The
pursuit of mining industry development is integrative to the country's priorities in achieving
genuine agrarian reform, the modernization of its agricultural base, and rural development.

The State shall take the lead in mini
to a National Industrialization Progt

industry development that shall be pursued according
im (NIP) and Mining Plan (MP) that adheres to the

following:

a. the medium- and long-term needs of the Philippines;

b. the advancement of the industry's technology with emphasis on existing indigenous
knowledge, research and development;

<. the right to self-determination jof the indigenous and Moro peoples;



4.

the generally accepted principl

and Political Rights, on Econort

the Rights of Indigenous Peo

labor rights, the rights of womel

the environment, of which the

a balanced and healthful ecolo;

s as embodied in the International Covenants on Civil

ic, Social and Cultural Rights, the UN Declaration on

jes and other international accords on human rights,
and children, and the protection and preservation of

tate is a party; and

y.

Section 3. Mining is important to nation building and the economic advancement of our
people. The mineral industry play:

independent and self-reliant economy,

The State shall craft and implement its

that provides the framework for the
resources, which will address the ne

industry workers, indigenous peoples

an essential role in establishing a progressive,

National Industrialization Program and a Mining Plan
tilization and management of the country's mineral
s of the domestic economy and upholds the rights of
nd local communities.

The said Mining Plan to be implemented by the State shall be economically-viable,
ecologically-sound, and in aid to the
development and national industrializ:

nation’s efforts to attaining food self-sufficiency, rural
tion

The Mining Pian shall be crafted in accord with the National Industrialization Program that
will provide a comprehensive economic framework for genuine national development,
including agricultural modernization, public infrastructure in energy, transportation,
communication, and downstream mineral industries.

Section 4.The exploration, development and utilization of natural resources shall comply with
the following principles:

1. The current export-orientation of mining is hereby reversed and a
domestic needs-based development of the industry shall be pursued by the State as
a step towards achieving genuine economic development;

2. The mining indut
and shall be built for the prot

chemicals and petrochemicals|

try shall be geared towards national industrialization
luction of raw materials such as base metals, basic
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-mine}

jobs to the country's vast hum:

3. The State shall p}

corporations to further devel
mining industry investments sI
target and goals of the Nation
capital requirement for mining,
to the granting of incentives
channelling of government bu
expenditures, and the proces
Natural Gas Project, and/or si

ral industrial raw materials and in the process provide
in resources;

rovide the appropriate support and protection to Filipino
p and increase their participation in the industry. All
ll be mutually-beneficial and help achieve the specific
| Industrialization Program. To come up with the large
ithe State must use local sources such as but not limited
and financial aid to local private sector investors, re-
get allocations for foreign debt payments and military
ds from the government shares of the Malampaya
ilar projects;



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4. The State shall allow, in exceptional cases, foreign corporations to invest
jin the mineral industry. Based on the National Industrialization Program and the
country's capability and capacity, the government must identify the mineral areas
where foreigners can help and invest subject to rigorous screening and strict
regulations as provided in this Act and related laws. The participation of foreign
companies in the critical stages of minerals extraction and processing shall be in
accordance with a mandatory| program or agreement for technology transfer and
equity shares that do not exceed 40 percent of the full capital requirements;

Provided, that capital accumulation and reinvestment within the country shall be
primarily encouraged over profit repatriation by the foreign companies and that foreign
mining corporations, their pringipals, local firms and conduits that have a bad track
record in the Philippines are banned from investing in the country;

5. The development of the mining industry should primarily be geared to
serve the needs of the country’s agrarian reform program and help modernize
Philippine agriculture. Mining shall be prohibited in prime agricultural lands.

6. Inland and water Use, the production of sufficient food free from pollution
towards food security shall always be the priority

7. Mining shall also be prohibited in areas specified for food production,

fisheries development, waters
people, and in small island ect

hed and heritage areas, sacred sites of indigenous
systems. Mining in environmentally-critical areas such

as small island ecosystems, primary forests and environmentally sensitive watersheds

such as, but not limited to, the

reas surrounding the Verde Island Passage connecting

and surrounding the provinces pf Batangas, Marinduque, Occidental Mindoro, Oriental

Mindoro and Romblon, shall be banned. Dumping of mine wastes and tailings to rivers,
lakes and seas are prohibited, Additionally, off-site effects of mining shall not have
disadvantageous effects on downstream areas;

8. Mining shall also be prohibited in areas declared by local government
units as No-Mining Zones; in prime agricultural lands, irrigable and irrigated lands as
defined by Republic Act 9700, and, in areas wherein cultural properties are found, as
enumerated under Republic Act 10066;

9. Long-term mining development shall be programmed by the State in
accordance with the country's availability of resources, capability and well-being of the
people, technological capacity and people's acceptability. The right of Muslim Filipinos
or the Moro people and indigenous peoples to self-determination and ancestral
domain shall be recognized arid their collective property rights are guaranteed by this
Act;

10. Job security, adgquate 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 theif own associations, to collective bargaining and to strike
shall be upheld. The state will strictly prohibit forced and child labor in the industry;


11. Small-scale mining operations shall be supported and regulated by the
state. The state will encourage the formation of cooperatives among small-scale
miners and provide financial and technical support to develop the labor-intensive and
upgrade the backward technologies into a more efficient and less environmentally
destructive mining process. Whenever small-scale mining activities are stopped,
alternative and sustainable livelihood shall be provided to the small-scale miners;

12. 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;

13. Mining industry research and development shall focus on harnessing
more economically-efficient and less environmentally-destructive methods. The
advanced technologies from oher countries that are proven to be appropriate locally
‘shall be adopted in the industry;

14. All mining operations shall be strictly regulated to ensure the domestic
processing of mineral ores up to the secondary and tertiary stages of industrial
production to develop our own basic and medium industries. Recycling programs and
substitution in the use of minetals shall be incorporated in the overall plan of mining
development to reduce mine waste and pollution, and mining rehabilitation techniques.
Indigenous technologies that ate relevant and appropriate, particularly with respect to
the domestic processing of minerals shall be promoted, harnessed, expanded and
upgraded;

15. Ecologically-sound practices at all stages of mining shall be promoted.
Mining technologies such as ppen-pit mining and submarine mine tailing disposal
methods that are banned abroad and/or proven inappropriate in countries like the
Philippines must and shall all be banned. Environmental standards shall be set to
ensure the protection and efficient utilization of the country's mineral resource base.
Ecological considerations in ae development shall be given due emphasis and

attention to substantially eliminate destructive effects that certain mining industrial
processes might have on the people's health and the environment. Monitoring
mechanisms with strong partic|pation from the local communities will be instituted;

16. Areas affected by mining shall be rehabilitated, including abandoned
mines. Violators shall be strictly punished and made to pay heavy compensation to
the State and the affected communities.

CHAPTER Il
SCOPE AND GENERAL PRINCIPLES

Section 5. Scope. This Act shall cover the ownership, management and governance of
both metallic and non-metallic minerals, as well as quarry resources, sand and gravel,
guano, magnetite, and gemstones; including the conservation, exploration, development,
utilization, processing and transportation thereof. The ownership, management and

10



governance of petroleum, natural gas
mining shall also be governed by spe‘

and coal shall be governed by special laws. Offshore
ial laws.

This Act shall cover onshore and offshore, large-scale and small-scale mining operations in

the country, including mining projects
national and international policies on

in ancestral domains in accordance to the existing
ur indigenous peoples.

Section 6. All ore minerals are part of the national patrimony and form part of the country’s
imreplaceable and non-renewable natural wealth and capital. The conservation of our

mineral wealth is of paramount public

interest and mineral resources shall be utilized only in

a rational manner for national and local development as specified by law and the National
Industrialization Program and the Mining Plan.

Section 7. The State shall have prim

management, conservation, utilization,

ensure the people's participation in p
levels of government. Mining shall be
and local governments, corporations,
development, and utilization of miner

ry role, responsibility and concer in the

and development of the mining industry and shall
licy making and implementation of the same at all
shared concern and responsibility of the national
ind the communities affected by the exploration,
resources.

Section 8. The State shall support small-scale Filipino mining corporations and mining

cooperatives to venture into large-scal

le mining projects through Joint-Venture Agreements

and invest on mutually-beneficial grounds that will push forward the National

Industrialization Program

Section 9. Mineral resource extraction shall be allowed based on the country’s Mining

Plan. The sharing of profits from mini
and social costs on the affected local

9 activities, including the anticipated environmental
ommunities of each mining project, should

substantially exceed the returns compared to alternative land uses. The environmental and

social costs shall be prevented and/or
of sufficient funds for this purpose. In
of investment scheme for the foreign

Section 10. The State shall support it
(ICCs/IPs) in developing capacities to
including their right to self-determinatit

mitigated at all times with the appropriate allocation
mining projects with foreign participation, a just return
ntrants into the industry shall be prescribed by law.

\digenous cultural communities/indigenous peoples
effectively exercise their rights and responsibility,
in. ICCs/IPs have the shared responsibility with the

State to manage the mineral resoures in their respective ancestral domains, They shall be
ni

free from external interference, ma
analogous acts.

Section 11. The State shall prioritize
for national development and for the
metals, the integration of agricultural
generate employment. The Mining PI
build basic, medium and heavy indus
advances and modernization of its ect
meet this principle. The National Indu
modernization of its economic base

ation, threats, intimidation, coercion and other

the development of mineral resources that are needed
reation of domestic processing capacity for industrial
modernization, and downstream industries that will

in shall be formulated to meet the country’s needs to
ries for the country to attain sustainable development
nomic base. The Mining Plan shall be crafted to

trial Plan shall support national development and

his framework will define minerals to be extracted,

volume to the extracted and when to be extracted. This shall be matched with the approved

cb



mining areas as identified by the Multi

eligible for mining operations.

Section 12. The State shall also give

resources as the first option instead of

mineral resources from the wastes of

Sectoral Mining Councils. These matched areas are

riority to the re-mining and recycling of mineral
opening new mines to maximize the remaining
revious mine projects subject to the environmental,

social and economic costs. The rehabilitation of abandoned mines shall also be given

importance.

Section 13. The State shall ensure the fullest compliance of all government and corporate
entities in and on the closure of mines, the rehabilitation/restoration of the immediate

environs of each mining project/activi
of abandoned mines shall also be giv

in the country as provided by law. The rehabilitation
n importance.

CHAPTER lil

DEFINITION OF TERMS

Section 14. Definition of terms. For|the purposes of this Act, the following terms shall

mean:

a. Abandonment - the contra

{tor’s act of leaving the entire mining lease in a state

that has not met agreed rehabilitation standards;

b. Acid mine drainage - the dissolution, mobilization and transportation of toxic

metals from rocks arising from
rock and waste materials that
water inflows when land is op
resulting to a perpetual machi

c. Ancestral domain - all are:
communities/indigenous peop!
coastal areas, and natural res:

the chemical reaction of acid-generating minerals in
‘ossess high permeability to air, rainfall and other
ined up for mining that initiates the chemical reaction,
eof acid generation

s generally belonging to indigenous cultural
s (ICCs/IPs) comprising the lands, inland waters,
urces therein, held under a claim of ownership,

occupied or possessed by ICGs/IPs, by themselves or through their ancestors,

communally or individually sin
except when interrupted by w.
‘of government projects or any|
and private individuals/corpor:
economic, social and cultural

ce time immemorial, continuously to the present

r, force majeure, deceit, stealth or as a consequence
other voluntary dealings entered into by government
tions, and which are necessary to ensure their

elfare. It shall include ancestral lands, forest, pasture,

residential, agricultural, and other lands individually owned whether alienable and
disposable or otherwise; hunting grounds, burial grounds, areas of worship, bodies
of water, mineral and other natural resources, and lands which may no longer be
exclusively occupied by ICCs/IPs but from which they traditionally and historically
had access to for their subsistence and traditional activities, particularly the home
ranges of ICCs/IPs who are still nomadic and/or shifting cultivators.

d. Ancestral lands - lands occupied, possessed and utilized by individuals, families
and clans who are members of ICCs/IPs since time immemorial, by themselves or
through their predecessors-intinterest, 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

12


government development aggression projects and other dealings entered into by
government and private individi als/corporations including, but not limited to,
residential lots, rice terraces or paddies, forests, swidden farms and tree lots;

e. Beneficiation — a process wherein a large fraction of the waste material is

removed from the mineral ore;

{. Buffer Zones - identified areas that are outside the boundaries of, and
immediately adjacent to protected areas designated by law that need special
development control in order to avoid or minimize harm to the said protected areas;

g. Bureau — denotes the Mine:

and Geosciences Bureau (MGB) under the

Department of Environment and Natural Resources (DENR),

h. Carrying capacity - the capacity of the natural and human environments to
accommodate and absorb changes without giving rise to conditions of ecological

instability and degradation;

i. Certificate of Ancestral Do!
the rights of possession and 0
identified and delineated in act

j. Certificate of Ancestral Lai

ins Title (CADT) — a title that formally recognizes
nership of ICCs/IPs over their ancestral domains
iordance with law;

ds Title (CALT) - a title formally recognizing the

tights of ICCs/IPs over their ancestral lands;

k. Closure of mines — the permanent termination of operations at a mine or mine

processing site after its compl

|, Consensus - the decision c
consultations and discussions

te decommission;

llectively reached after the appropriate participatory
at are free from any external manipulation,

interference and coercion, and other analogous acts; and obtained after fully

disclosing the intent and scopé
mining activity in a language ai
group;
m. Consent - the voluntary as
open, continuous, and exclusi
in good faith, or thirty (30) yea

the positive and negative imp:

. including the positive and negative impacts, of the
id process understandable to the community or

ent of the landowner or those who have been in
e possession of the land for more than ten (10) years
ts in bad faith, free from any external manipulation,

cts of the activity, in a language and process

interference and coercion, wpa after fully disclosing the intent, scope, and

understandable to the said lar

n. Contract area - the area d
agreement for the developme

©. Critical watershed - refers
reservoir that supports any ex
water supply, geothermal po
immediate rehabilitation and
and prevent possible flooding

jowner or occupant;

lineated as specifically provided by a mineral
t or utilization of mineral resources found therein;

to a drainage area of a river system, lake or water
isting and proposed hydroelectric power, domestic

ler and irrigation sources and works, that needs
rotection to minimize soil erosion, improve water yield
The term shall also include areas which are traditional

13



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areas for human settlements, land-uses, or sea-uses which are representative of a
culture (or cultures), or human interaction with the environment especially when it
has become vulnerable under the impact of irreversible change;

p. Critical habitats — areas where species and/or subspecies naturally occur or that
have naturally established its p pulation that are crucial to the survival of other
species and are essential for its conservation;

g, Cultural sites - those that bear a unique or exceptional testimony to a cultural
tradition or to a civilization which is living or which has disappeared or, directly or
tangibly associated with events or living traditions, with ideas, or with beliefs, with
artistic and literary works of outstanding universal significance;

+. Customary laws - body of written and/or unwritten rules, usages, customs and
practices that are traditionally recognized, accepted and observed by respective
ICCs/IPs and local communities;

s. Decommissioning - the activity or process that commences after the cessation of
prospecting activities or mineral production, including metallurgical plant production.
It involves, among others, the femoval of unwanted infrastructure, making
excavations and waste repositories safe and stable; and surface rehabilitation with a
view to negate any adverse environmental impacts remaining after cessation of
mineral production. It includes the after-care or maintenance that may be needed;

t Downstream industries — are mining activities that cover minerals processing,
refining, manufacturing of intermediate and capital goods and marketing of such;

u. Ecological profile - geographic-based instruments for planners and decision-
makers which present an evaluation of the environmental quality and carrying

capacity of an area and measures the specific interactions that will be affected by
any and all mining operations;

v. Exploration — covers all methods of searching or prospecting for mineral
resources for the purpose of determining the existence, extent, quantity and quality
thereof, which may include but are not limited to seismic, gravity, magnetic,
electromagnetic, radar, induced polarization, radio-wave and electro-geochemical,

w. Extraction - ore-removal activities that take place at the mine site itself,

x. Free, prior and informed ¢onsent (FPIC) - 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 pier 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 peoples/indigenous cultural communities (IP/ICC) - refer to a
group of people or homogendus societies identified by self-ascription and ascription
by others, who have continudusly lived as organized communities on communally
bounded and defined territory, and who have, under claims of ownership since time

14


immemorial, occupied, posses
bonds of language, customs, t

ed and utilized such territories, sharing common
ditions and other distinctive cultural traits, or who

have, through resistance to political, social and cultural inroads of colonization, non-

indigenous religions and cultu
of Filipinos. ICCs/IPs shall like
on account of their descent fro

s, became historically differentiated from the majority
ise include peoples who are regarded as indigenous
the populations which inhabited the country, at the

time of conquest or colonization, or at the time of inroads of non-indigenous religions
and cultures, or the establishment of present state boundaries, who retain some or

all of their own social, economi
been displaced from their tradi
their ancestral domains. They
land;

ji¢, cultural and political institutions, but who may have
ional domains or who may have resettled outside
re peoples who have a spiritual relationship with the

z. Indigenous political structure - refers to organizational and cultural leadership

systems, institutions, relations!

ips, patterns and processes for decision-making and

participation as identified by ICCs/IPs such as, but not limited to, Council of Elders,
Council of Timuays, Bodong Holders, and any other tribunal or body of similar

nature;

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 manag
equity, the Government shall
certain percentage mutually a

bb. Key biodiversity areas -
conservation of biodiversity;

cc. Large-scale mining - mini
mechanized tools and equipm

mineral resources. Aside from earnings on the
entitled to a share in the output computed at a
d upon by and beneficial to both parties;

re places of international importance for the

ing in areas with more than twenty (20) hectares, using
nt, requiring considerable capital and having large-

scale environmental, social, cultural and economic impacts with regard to resource

use and/or consumption;

dd. Mineral Agreement - a contract entered into by the government, in behalf of the

State, and a private Filipino p
specific contract area;

ee. Mineral resource - any c
value;

ff. Mineral processing - the
and rocks or by similar means|

gg. Minerals - all naturally 0
intermediate state excluding e

‘on, granting such person/s the privilege to mine a

ncentration of minerals/rocks with potential economic

iling, beneficiation or upgrading of ores or minerals
to convert the same into marketable products;

urring inorganic substances in solid, gas, liquid, or any
nergy materials such as petroleum, natural gas,

radioactive materials, and geathermal energy;

hh. Mine development - prej
excavation, building of acces:

ring the mine site for production by shaft sinking or pit
roads, and constructing of surface facilities;

15



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;

ji. 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 shall be conducted;

Il. Mining operations — any and all of the mining activities involving the acts of
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 that is a natural wilderness that is
scenic or historic in character and has been withdrawn from settiement, occupancy,
of 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 anim:
biodiversity conservation andi

Is, and plants therein mainly for the purpose of
human enjoyment;

00. Native title - pre-conquest|rights to lands and domains which, as far back as
memory reaches, have been held under a claim of private ownership by ICCs/IPs,

have never been public lands
that way since before the Spa

ind are thus indisputably presumed to have been held
fish Conquest;

pp. Natural forest - forests composed of indigenous, native or endemic trees, with
re

high biodiversity, whose struct

result of natural succession pr

, functions, and dynamics have been largely the
cesses;

qq. Natural parks - is a relatively large area not materially altered by human activity
where extractive resource fee are not allowed. These parks are maintained to

protect outstanding natural an
for scientific, educational and

rr. Open-pit mining - Extracti
removing the overlying mater

scenic areas of national or international significance
creational use;

\g metal ores and minerals that lie near the surface by
| and breaking and loading the ore. Also known as

open-cast mining and open-cut mining;

ss. Ore - a material that contains minerals in such quantities that can be mined and

worked commercially to extra
chemical combination with so

that mineral. The mineral is usually contained in
e other element in addition to various impurities;

16



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tt Pollution control and infrastructure devices - infrastructure, machinery,
equipment and/or improvements used for the impounding, treating, or neutralizing,
precipitating, filtering, conveying and cleansing mine industrial waste and tailings as
well as reducing or eliminating hazardous effects of solid particles, chemicals, liquids
or other harmful by-products and gases emitted from any facility utilized in mining
operations for their disposal;

uu. 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 yet to be issued;

w. Processing - includes alll the treatment an ore receives after its extraction and
beneficiation, which involves changes in the chemical nature of the mined minerals;

ww. Progressive rehabilitation — a rehabilitation that involves the staged treatment
of disturbed areas during mining exploration, construction/development and
extraction operations;

xx. Protected areas - identified portions of land and water set aside by reason of
their unique physical and biological significance that are managed to enhance the
biological diversity and protected against destructive human exploitation;

yy. 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;

zz. Quarry resources - any common rock or other mineral substances as the
Director of the Mines and Geosciences Bureau (MGB) may declare to be quarry
resources such as, but not limited to, andesite, basalt, conglomerate, coral sand,
diatomaceous earth, diorite, décorative stones, gabbro, granite, limestone, marble,
marl, red burning clay for potteries and bricks, rhyolite, rock phosphate, sandstone,
serpentine, shale, tuff, volcani¢ 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;

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;

Provided further, That apes minerals such as kaolin, feldspar, bull quartz,

aaa. Quarrying - process of ¢xtracting, removing and disposing quarry resources
found on or underneath the surface of private or public land;

bbb. Regional director - the irector of any MGB regional office;
7



ccc. Regional office - any of the MGB regional offices;

ddd. Recycling - shall refer to

includes any process by which

treating of used or waste materials through a

solid waste materials are transformed into new

process of making them we for beneficial use and for other purposes, and

products that may be used as r

services:

Provided, That the collection, s

materials shall be deemed re

eee. Rehabilitation - the pro
productivity in conformity with

w materials for the production of other goods or

.gregation and re-use of previously used packaging
ling under this Act;

.s by which the land will be returned to a form and
prior land use plan, including a stable ecological

state that does not contribute substantially to environmental deterioration;

fff. Remediation - removal of pollution or contaminants from environmental media

for general protection of the art

a and the people;

ggg. Remining - maximizing ahd recovering the remaining minerals from the rejects
or wastes of previous mines arid mining operations,

hhh. Restoration - the act of b}

of the forest and biodiversity,
ecosystem;

iii, Self-determination - refers’

destiny as defined by existing

inging back the original, or the closest possible state,
ith the productivity matching that of the original

to the right of a people to determine its own political
hilippine laws. The right to self-determination has

includes the right of ICCs/IPs bi choose their form of government within existing

national borders to achieve a
culture, ancestral domain, and

eater degree of autonomy to help preserve their
way of life;

jjj. Small-scale mining - mining activities which rely heavily on manual labor using

simple implements and metho
equipment, primarily engaged

is and do not use explosives or any heavy mining
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;

kkk. Small-scale mining permit - permit issued for small-scale mining opeartions;

ll, Strategic minerals - miner
development;

mmm. Tailings Disposal Sys
mining wastes are dumped, pl

nnn. Tra
and without the use of chemi
methods, implements, and/or

is needed for national industrialization, including rural

em or Tailings Placement - the method wherein the

jaced, or disposed;

ional small-scale mining - small-scale mining using traditional means
al or mechanized extraction and separation means,
equipment;

18



wevaneune

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50

000. Watershed system - shal
divide including its connection
by a stream or a fixed body of

surface run-off. It is the system

determined following the drain:
having a common outlet for sui

ppp. Wildlife - undomesticated

il refer to an area consisting of the watershed and its
ftom the headwaters to the reef or a land area drained
ter and with tributaries having a common outlet for
y which the mining-affected communities shall be
e of a stream or fixed body of water with tributaries
face runoff,

forms and varieties of flora and fauna.

CHAPTER IV

OWNERSHIP AND GOVERNANCE

Section 15. Authority of the Bureau,

a scientific research institution under

The Mines and Geosciences Bureau (MGB) shall be
e Department of Environment and Natural

Resources (DENR), primarily conducting the research and development of mineral
resources and mining technologies, and the training of local communities, local government

units and indigenous peoples. It shall

mining activities. It shall also work wit

of mining activities, as provided in thi

also regulate the operations of persons involved in all
the Multi-Sectoral Mineral Council in the monitoring
Act.

Section 16. Regional Offices. The Bureau shall have as many regional offices in the

country as may be established by the

Section 17. Bureau as repository o'

repository of information regarding mil

information relevant to the operation

‘Secretary, upon the recommendation of the Director.

information. The Bureau shall be the central
eral lands, resources, permits, studies and other
)f a mine, including the necessary requirements that a

contractor is obliged to submit. All other governmental offices and other bodies created

under this Act shall furnish copies to t

Section 18. Access to Information.

1¢ Bureau of all other information related to mining.

All contractors for mineral permits and agreements

shall provide information to the Bureali and the affected indigenous peoples, local

communities, and local government ul

among others, shall be required:

nits. The following information of full disclosure,

mining to be used by the contractor,

contractor/company,

(a) the methods and processes of
(b) the environmental and social risks,
(c) the ownership structure of the
(d) the sources of financing, inclu

All information and documents relate
mining operations shall not be consi
aforementioned information shall be
proponents, or the cancellation of mit

The Bureau, being the repository of
grant the public access to any inform
by officers of the Bureau to provide i
thousand pesos (PhP 50,000.00) for

ing loan agreements;

to the proposals, mineral agreements, permits and
red confidential. The refusal to grant access to the
‘ause for the disqualification of prospective

eral agreements and permits.

I relevant information under this Act is mandated to
tion in its custody. The refusal or unnecessary delay
formation shall be punishable by a fine of fifty

very instance of refusal or unnecessary delay.

19



Information requested by indigents or marginalized sectors shall be provided to them for

free.

Section 19. Recording System. There shall be established a national and regional filing

and recording system. A mineral resot

which shall include, among others, a

ce database system shall be set up in the Bureau
mineral rights management system.

Section 20. Publication. The Bureau|shall publish at least annually a mineral gazette of

nationwide circulation containing amor
locations specified in the appropriate
affecting mining, and other relevant in
publication fund shall be included in t!

1g others, a current list of mineral rights, their

‘ap, mining rules and regulations, other official acts
mation to mineral resources development. A
regular budget of the Bureau

Section 21. Bureau on exploration activities. All results of exploration of mineral
resources shall be submitted and shared with the State through the Bureau.

Section 22. Regulation of explorati

n phase. All exploration activities shall be strictly

monitored by the MGB to ensure that State rights to mining or mineral resources are not
extracted even before mining has beeh allowed and after the subsequent environmental,
social, indigenous and community benefit assessments and approvals have been done.

Section 23. Government has the primary responsibility for mining exploration. The
State will also carry out human resolirce training and development, scientific research
and technological application and development in geological baseline surveys of

minerals and mineral activities.

Section 24. Exploration by private

Agreement as described in this Act
to invest and cooperate with state-ow!

baseline surveys of minerals.

Section 25. The State shall invest it

service of socio-economic developm
by the State.

Section 26. Non-invasive explorati
seismic, gravity, magnetic, electromat
electro-geochemical whenever possi

Section 27. Consent. The Bureau st

ntities shall only be allowed in a Joint Venture
| The State encourages organizations and individuals
1ed geological organizations in conducting geological

exploration and mining. Minerals important in the
int, national defense and security shall be invested on

n. Exploration activities shall be non-invasive such as
netic, radar, induced polarization, radio-wave and
le.

all not allow entry into any private lands for the

purposes of exploration activities without the written consent of the land owner, possessor

and/or occupant, or the FPIC of the I

of property. Neither shall the Bureau

Section 28. Ownership of ICCs/IPs
domains/ancestral lands are the colle
communities/indigenous peoples (IC
mineral resources shall build on the i

ICCs/IPs.

CIIP, and, payment of just compensation for the use
Allow entry into any land under dispute.

The mineral resources within the ancestral

ctive private property of the indigenous cultural
's/IPs), as provided by law. The management of such
\digenous knowledge systems and practices of the

20



Section 29. Free, prior and informed consent (FPIC). No mining activity shall be
conducted within the ancestral domairs/lands of the ICCs/IPs without their free, prior and
informed consent (FPIC), in addition to the conditions set forth in the succeeding sections of
this Act.

For instances wherein there are questions on the legality or validity of the issued FPIC,
mining operations shall not be allowed in the ancestral domains or lands of the ICCs/IPs
without the final resolution of such question on the legality or validity of the FPIC.

Section 30. When ancestral domain is yet to be formally recognized. When an
ancestral domain is not covered by a Certificate of Ancestral Domain Title (CADT) or
Certificate of Ancestral Land Title (CALT), or is covered by a different title issued in favor of
members of the ICCs/IPs, then mineral resources shall nevertheless be managed by the
ICCs/IPs concerned when it can be presumed that the area is part of their ancestral
domain. An area is presumed to be part of an ancestral domain by virtue of historic rights
and self-delineation of the ICCs/IPs.

Section 31. ICCs/IPs displaced from ancestral domain due to mining. The native title
over an ancestral domain subsists notwithstanding the fact that the ICCs/IPs who hold such
title have been displaced therefrom or that such ancestral domains have been occupied by
other persons or corporations under another claim of title emanating from the State. In
such cases, ICCs/IPs shall continue to own such mineral resources.

Section 32. Questions on the validity of FPIC. In instances that there are questions on
the legality or validity of the issued free, prior, and informed consent (FPIC) , mining
operations shall not be allowed to be conducted in the ancestral domains or lands of the
ICCs/IPs without the final resolution of such question on the legality or validity of such
FPIC.

Section 33. Ownership of mineral resources. The State owns the mineral resources,
facilities and technology within its national territory and shall utilize and manage these for
the benefit of the Filipino people on the national and local levels. Consistent with the State's
recognition of the indigenous and Mofo peoples’ right to self-determination, government
shall ensure that the management of mineral resources shall be primarily for the benefit of
the local communities in whose territory the same shall be found. Any minerals extracted
shall be used for local industries consistent with the Mining Plan. The State may directly
undertake the development, utlizatioh and processing of mineral resources or enter into
mineral agreements with eligible parties pursuant to the provisions of this Act

Section 34. Inventory of mineral resources. The Bureau shall identify and provide an
inventory of all 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

a. the classification of minerals;
b. the quality and grade of thelore;
c. the potential mine life;
d. the geological description of the area;

e. the economic viability of mine tailings; and

fall other relevant information necessary for potential mineral investments

21



The process for mineral exploration and the approval for any mining permit shall not
commence without the said inventory

Section 35. Strategic minerals. The Bureau shall conduct researches and studies prior to
any mining operations to identify strategic mineral resources. Mineral resources needed for
local industries, agricultural modernization and rural development shall be opened to mining
subject to the implementing rules and regulations of this Act.

Section 36. Demarcation of mineral|areas. The Bureau shall demarcate the boundaries
of all areas identified as containing commercial quantities of mineral resources.

Section 37. Information on watershed continuums. The baseline information on all
watersheds in the country shall be required and made accessible to the public in all forms,
including the websites of the Bureau and the National Water Resources Board (NWRB). No
mining permit shall be issued without this baseline information.

Section 38. Affected local community and local government unit. For the purposes of
this Act, the affected local community|and local government unit are defined in relation to
any area which has the potential to be negatively impacted by mining operations in the
demarcated area. The local communes and the local government units therefore, are
those who are dependent on the watérshed eco-system and its resources.

Section 39. Establishment of the Multi-Sectoral Mineral Council. A Multi-Sectoral
Mineral Council shall be established for the purposes of this Act. There shall be as many
Multi-Sectoral Mineral Councils per ptovince corresponding to demarcated mineral areas.

Section 40. Powers and Functions of the Council. The Council shall have the following
powers, among others:

a. To define a review period, for each mineral area, where comments on mining
proposals shall be submitted to the Bureau;

b. To call for public hearings to present and formally discuss mining applications
and gather options and public feedback or comments before a project should be
approved by the Bureau.

To determine whether or npt mining operations shall be allowed;

To deliberate on proposals for mineral agreements,

To monitor the conduct of mining operations;

To establish its internal rules of procedure which are not contradictory to this Act,
To provide public comment on all public submissions and justify their decision;
and
h. To recommend the cancellation of a permit.

@-eao

Section 41. Composition of the Multi-Sectoral Mineral Council. The Multi-Sectoral
Mineral Council shall be composed of::

(a)a representative from the Bureau, who may come from the concerned Provincial
DENR Office;

2



(b) one (1) representative from each of the affected provincial governments/independent
component cities/highly urbanized cities (LGUs);

(©) representatives from an established municipal-level
peoples/community/sectoral/ICCs or IP organizations affected by the proposed mining
project and whose numbers shall be equal to or as many as the number of those
representing the affected LGUs; and,

(6) two (2) representatives from no
prior existence,

government organizations of at least five years (5) of

The Bureau shall be the convenor of the Council. No mining operations shall be allowed
without the Council having been properly convened.

Section 42. Areas open to mining. The power to determine whether or not the land where
mineral resources are found shall be opened to mining is vested in the Council. Areas may
only be opened to mining upon the two-thirds vote of all the members of the Council
pursuant to the guidelines provided by this Act. In determining whether or not such area
shall be opened, the following shall bé taken into consideration:

a. Bureau report on the exploration conducted;

b. Existence of downstream industries for the mineral resources;
c. Potential environmental, public health and cultural impacts;

d. Conflict and risk assessment;
e. Potential economic benefits pf the development and utilization of the minerals;
£. Carrying capacity and the ecplogical profile of the area;

g. Existing and alternative land|uses of the area; and

h. Local government land use plan.

No mining application shall be allowed by the Council unless an environmental economic

audit or resource valuation of the pro}
acceptable valuation standards. This
coordination with a multi-sectoral gro

include the determination of the expe¢

impacts from mining. A detailed stud
claim and the impact of mining opera
degradation and the attendant loss of

}osed mining area has been conducted applying
udit or resource valuation shall be conducted in

p of experts and community stakeholders. It shall
fed economic returns and the potential negative
must mention the biodiversity present in the mining
ons on the environment, the possible environmental
‘subsistence resources. There must be mention of

existence of sacred areas or areas of cultural significance and address the impacts of
resource exploitation on indigenous and local communities.

No mining application shall be alloweti by the Council unless an environmental economic

audit or resource valuation of the proj
acceptable valuation standards. This
coordination with a multi-sectoral grot

include the determination of the expet

impacts from mining. A detailed stud
claim and the impact of mining opera
degradation and the attendant loss of
of existence, if any, of sacred areas

impacts of resource exploitation on in

udit or resource valuation shall be conducted in

p of experts and community stakeholders. It shall
ted economic returns and the potential negative
must mention the biodiversity present in the mining
ions on the environment, the possible environmental
subsistence resources. There must be mention also
r areas of cultural significance and address the
\digenous and local communities.

per mining area has been conducted applying

23



This information shall be accessible to|

a) Areas declared by the Local G
local ordinances and other issu
b) densely populated areas, espe

¢) prime agricultural lands, irrigabl
9700;

d) lands subject for agrarian reform;

the public at all times.

Provided however, That in no case shall the Council open the following areas to mining:

ernment Units as No-Mining Zones as specified by
nces;

ially residential areas;
and irrigated lands as defined by Republic Act

e) areas with potential for acid mine drainage;

f) critical watersheds and critical h
9) geohazard and climate disaster

h) small island ecosystems;

labitats;

prone areas;

i) cultural sites, which may include, but not limited to, sacred sites and burial grounds;

j) traditional swidden farms and hunting grounds;

k) cultural property enumerated u
|) key biodiversity areas;
m) high conflict areas;

n) the Province of Palawan pursua|

\der Republic Act 10066;

int to Republic Act 7611;

©) in military and other government reservations, except upon prior written clearance by

the government agency concen
p) near or under public or private

ed;
uildings, cemeteries, archaeological and historic

sites, bridges, highways, waterways, railroads, reservoirs, dams or other

infrastructure projects, public o

q) in areas covered by small-scale
of the

private works including agricultural crop plantations,;
miners as defined by law unless with prior consent

24


small-scale miners, in which case a royalty payment upon the utilization of minerals

shall be agreed upon by the pa

fies, with said royalty forming a trust fund for the

socioeconomic development of the community concerned;

1) old growth, natural or primary f
mangrove forests, mossy forest
provincial/municipal forests, par

rests, watershed forest reserves, wilderness area,
national parks, protection forests,
KS, greenbelts, game refuge and bird sanctuaries

and their respective buffer zones as defined by existing laws and ordinances, and

s) In areas expressly prohibited b;

law or ordinances.

The determination whether or not the $ame are absolutely closed to mining shall not only

be limited to the existence of a law or

the actual use of said area.

rdinance declaring it as protected areas, but also to

Section 43. Manner of voting by the Council for opening an area to mining, Sections

26 and 27 of the Local Government Ci
adhered to. Local government units al
with the affected local communities, t

\de on consultation and consent shall be strictly
all levels shall conduct mandatory public hearings
be carried out within their respective territories and

presenting those enumerated under Section 42 of this Act.

The Bureau shall convene the Council

formulation of a mine plan, and the e:
watershed area are submitted

The Council shall thereafter convene

once the inventory of the existing minerals, the
istence of the baseline information of the particular

their respective constituents to determine whether or

not their respective territories shall be opened for mining.

Local government units, ICCs/IPs, Ni
Bureau shall comprehensively explait
negative and positive impact upon th
or ecological balance, and the measi
adverse effects thereof.

Thereafter, the approval of the respe
units shall be required in accordance
government unit as a result of the cor

Provided, That the affected local gov
decision of their respective constitue

component cities/highly urbanized cit

city government representative shall

of all the affected local government ul

provided in this Act. There must be a
purpose of opening a particular area
thirds vote for opening shall mean th
shall at all times be recorded.

{Os and peoples organizations, shall ensure that the
the goals and objectives of the project or program, its
people and the community in terms of environmental
that will be undertaken to prevent or minimize the

tive Sanggunians of the affected local government
(0 the sentiment of the peoples of the local
sultations conducted.

nment unit representatives shall meet and relay the
its to the provincial government/independent

jes. The provincial/component city/highly urbanized
it in the Council and shall carry the result of the vote
its within the province resulting from the process as
‘two-thirds vote among all the affected LGUs for the
F mining in its jurisdiction. Failure to reach a two-
tthe area is closed to mining. All the proceedings

25



woevanauenn

10

12
13
14
15
16
7
18
19
20
2
22
23
24
25
26
2
28
29
30
31
32
33
34
35
36
37
38
39
40
a
42
43
44
45
46
47

49
50

Provided further, That in case there ai

affected indigenous cultural

communities/indigenous peoples, they shall also bring the community's vote to the Council

after undergoing their own processes i

political structure, free from any exter

analogous acts, and obtained after full
positive and negative impacts of the ai

and acceptable to them.

Provided finally, That any member of t

accordance with their respective indigenous

| manipulation, interference, coercion and other
disclosing the intent and scope, including the
tivity, in a language and process understandable

e community may file a protest with the Council

during any point in the period of consultations and deliberations for the Council's

consideration.

Section 44. Violation of Section 56.

Local government officials who are

administratively found to violate the preceding sections and Section 56 of this Act (section
on the Deliberation of Proposals) vis-8-vis the pertinent sections of the Local Government

Code shall be removed from office an
appointive position in government, its
and controlled corporations.

Section 45. Pool of consultants. Th
shall assist the local government unit
technical aspects of mining

Section 46. Publication, posting

an
of the Council shall be published bite

language, shall be announced on lo

notices shall be distributed widely in ct
information shall likewise be posted in

public and shall be announced during

perpetually disqualified from holding any elective or
visions, subsidiaries and any government owned

re shall be a pool of independent consultants that
local communities or ICCs/IPs with regard to the

adio announcement requirements. Any decision
Bureau in the local newspaper in the local

| radio programs for not less than six (6) weeks and
munities. The notice containing relevant
conspicuous places for the information of the general
the local market day

CHAPTER V

MINERAL AGREEMENTS

Section 47. Modes of Mineral Agreement. The following are the mineral agreements as

herein defined;

a. Mineral production shari
grants to the contractor the
contract area and shares in|

ig agreement - an agreement where the Government
xclusive right to conduct mining operations within a
the gross output. The contractor shall provide the

financing, technology, management and personnel necessary for the

implementation of this agre
b. Co-production agreement
contractor wherein the Govt
other than the mineral reso\

<. Joint venture agreement

ment;

- an agreement between the Government and the
ernment shall provide inputs to the mining operations
ee; and

an agreement where a joint-venture company is

organized by the Government and the contractor with both parties having equity

shares. Aside from earning
share in the gross output.

in equity, the Government shall be entitled to a

26



In no case shall Financial or Technical Assistance Agreements, or any other similar

agreements, contracts, and/or executi
explore, develop and/or utilize mineral

e issuances granting license or permission to
resources be awarded to foreign entities or persons.

Section 48. Eligibility. Only Filipino citizens or corporations sixty percent (60%) of whose

equity is owned or controlled by such

itizens shall be allowed to conduct the development,

utilization and processing of mineral résources within the country.

Section 49. Identification of mining
affected communities as reported by t
Bureau shall prepare the necessary in|
investments. The Bureau shall call for
National Mining Plan (NMP).

projects. With at least two-thirds vote of the mining-
ie Council to open areas for mining operations, the
formation sheets on the said area for potential
proposals to develop the mining area based on the

Section 50. Pre-screening of mining proposals. Mining proposals shall be pre-screened

by the Bureau according to the Nation:
and upon the submission of interested

a. demonstration of financial ca}

| Industrialization and Mineral Development Plan
parties of the following:

ability;

b. proven social and environmental track record, including those of its officers and

directors;
c. clear corporate structure and

ownership;

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

e. identification of potential inv
f. mining project feasibility and
mitigation and prevention methi
g. capacity to process minerals}

h. intent to develop downstream

development; and,
i, submission of the Environmet
Plan

The Council shall fix the minimum ca
determination of the expected econor
mining, upon reference to an indepen:

Section 1. Environmental and Soc
contractor shall submit an Environme!
Plan (ESIAMP) containing the means,
contractor shall conduct its operations,

stors;
perational work plan to include proposed operation,
ds and/or equipment;

industries and contribute to local community

tal and Social Impact Assessment and Mitigation

talization that any bidder must satisfy based on its
ic returns and the potential negative impacts from
fent study proposing such minimum capitalization.

ial Impact Assessment and Mitigation Plan. The
tal and Social Impact Assessment and Mitigation
methods, processes and schedule by which the
and mitigate negative environmental and social

impacts. Social impact shall include possible impacts on the enjoyment and exercise of

human rights, cultural rights, and the
plans relative to mining operations; th
mineral areas; slope stabilization of m

ight to a healthful ecology. The ESIAMP shall include
rehabilitation, regeneration and restoration of
ined out and tailings covered areas; aquaculture,

watershed development and water conservation; the relocation and return of displaced

population; and provisions for alternative

/e livelihood and socioeconomic development.

7



The ESIAMP shall also contain a Social Development Plan which shall likewise contain the

plans of the proponent for the develo}

infrastructures and programs that shall

Section 52. Pre-qualification. The Bi

pment of the community through the establishment of
be sustainable even after the closure of the mine.

ireau shall thereafter identify the top five (5)

proposals and shall recommend the same to the Council for deliberation.

Section 53. Deliberation. After the Bt

Council together with all the submitte

initiate the deliberation process of the

Immediately thereafter, Sections 26 ai

and consent shall be strictly adhered

reau's transmittal of its recommendations to the
documents for the pre-qualification, the Council shall
re-qualified proposals.

\d 27 of the Local Government Code on consultation
fo. Local government units at all levels shall conduct

mandatory public hearings with the affected local communities, to be carried out within their
respective territories and presenting those enumerated under Section 40. Local government
units, (CCs/IPs, NGOs and peoples organizations, shall ensure that the mining applicant
shall comprehensively explain the goals and objectives of the project or program, its
negative and positive impact upon the people and the community in terms of social, cultural
and environmental or ecological balance, and the measures that will be undertaken to

prevent or minimize the adverse effec

thereof. Thereafter, the approval of the respective

sanggunians of the affected local government units shall be required in accordance to the
sentiment of the peoples of the local government unit as a result of the consultations

conducted.

Provided, That the affected local government unit representatives shall meet and shall relay
the decision of their respective constituents to the provincial government/independent
component cities/highly urbanized cities. The provincial/component city/highly urbanized

city government representative shall
of all the affected local government u
city/highly urbanized city resulting fro
this Section.

it in the Council and shall carry the result of the vote
its within the province/independent component
the process provided in the preceding paragraph of

In determining which proposal is acceptable to the people, a majority vote of the local

government units within the province/
‘shall be required.

independent component city/highly urbanized city

The affected ICCs/IPs shall also delitlerate on the proposals in accordance with their own
systems and processes free from sane manipulation, interference, coercion and

other analogous acts, and obtained a

positive and negative impacts of the
and acceptable to them.

fer fully disclosing the intent and scope, including the
tivity, in a language and process understandable

After the respective processes are complied with, the Council shall then meet and decide

which proposal, if any, is most accep
environmental and cultural programs|

Section 54. Posting and Publicati
the proponent of the accepted propo
accepted proposal.

table and consistent with their own socio-economic,
and shall notify the Bureau of the chosen proposal.

Requirement. After notice, the Bureau shall notify
al and cause the publication and posting of the

28



Provided, That any member of the community may contest the decision of the Council
within six (6) weeks upon the posting "and publication of notice of the acceptance of the
proposal in the manner provided for in|Section 38 . No mining operations shall be allowed
pending any action questioning the legality or validity of the proposal

Section 55. Permit issuance. If no c:
posting and publication, the DENR sh:
Council on the winning proposal that
affected.

ntest is filed after six (6) weeks from the date of
Il issue a permit in accordance with the report of the
jon 2/3 affirmation of each of the municipalities

Section 56. Environmental and Social Impact Compliance Certificate. The mining
proponent shall be issued an Environmental and Social Impact Compliance Certificate by
the Environmental Management Bureau with the approval of the Council

Provided, That no amendments to the ESIAMP shall be allowed, unless any proposed
amendment shall benefit the affected communities and that the Council and the Bureau
shall be notified of any amendments to the ESIAMP, that the former shall give their consent
to the same, after the proponent explains in detail the reason for such amendments and
the possible impacts and consequences of these.

Provided further, That any violation of
Certificate.

the ESIAMP shall cause the cancellation of the

Section 57. Maximum areas for mineral agreements. The maximum area under mineral
agreements that an entity can hold atlany one time shall be determined by the Council,
Provided That the contract area per agreement shall not exceed five hundred (500)
hectares.

Provided further, That no entity shall
seven hundred-fifty (750) hectares in
‘Act, the prohibition on the maximum
common directors or significant shar

Section 58. Term of Mineral Agreer
equivalent to the mine life plus an ad
area. Provided , That Mine Agreeme!

.e awarded in excess of the total contract area of
any given watershed area. For the purposes of this
rea shall also include corporations that shall have
holders.

ent. The term of the mineral agreement shall be
itional five (5) years for the rehabilitation of the mining
its will not exceed fifteen (15) years at most and

may be extended multiple times with the total extension period not exceeding fifteen
(18) years. Provided further, That the|contractor shall already include
rehabilitation/remediation of the mining area within the first fifteen-year term.

Inno case shall a Mineral Agreement be extended without just cause to be determined by
the Council

Section 59ds and the submarine tailings disposal method shall be prohibited.

Section 57. Failure to initiate mining operations. Failure to initiate mining operations in
accordance with the work program within five (5) years from the award of the mineral

agreement shall cause the cancellati
forfeits the value of the improvement
corporations who are also run by the

of the mineral agreement. The contractor thereafter
made upon the land. The contractor and other
‘same directors and officers are thereafter banned

29



from bidding to conduct mining operations for ten (10) years after failure to initiate its mining
operations in accordance with the work program

Section 60. Mandatory consultations for each mining phase. Mandatory consultations

and consent/approval shall be under

operation: exploration, extraction, pro
affected communities shall be informe!

methods to be conducted.

Section 61. FPIC of ICCs/IPs on eac!

be required at each and every stage

accordance with the laws, practices ai
violation of any of the conditions impo:
cancellation of the mineral agreement,
ownership and self-determination sha

Section 62. Consent of private land
lands without the written consent of thi

land and/or the FPIC of the ICC/IP.

Section 63. Expropriation. Expropri

to determine whether the taking of pri
purpose and to determine just compet

ken by the Council in each phase of mining
Jessing, and mine closure to ensure that mining-
and shall approve of the proposed plans and

stage of mining. The FPIC of the ICCs/IPs shall
the mining operations. The FPIC shall be secured in
id processes of the concerned ICCs/IPs. The
‘ed by the ICCs/IPs on the contractor shall cause the
Explanation of the rights of ICCs/IPs over
|| be included in this process.

ners. No person shall be allowed entry into private
landowners, possessors or lawful occupants of the

tion proceedings shall be filed with the regular courts
ate property for mining purposes shall meet a public
sation

Section 64. Monitoring. The Council shall form a multi-partite monitoring team to monitor

the contractor's compliance to the ten
conduct ocular inspections of the cont
contractors and refer the same to ind
and/or the Bureau may confiscate su
an order to be promulgated by the Dit
government authorities may deputize,

mns and conditions of the mineral agreement. It may
‘act area at any time and inspect all the books of
pendent auditors. The multi-partite monitoring team
ty, performance and guaranty bonds posted through
.ctor. The Council, the Director or the local

when necessary, any member or unit of the

Philippine National Police (PNP), barangay, duly registered non-government organization

(NGO) or any qualified person to poli

Section 65. Withdrawal from the Mi
the mineral agreement at any time fo
Bureau, the Council and/or the ICCs/|

¢e any and all mining activities

ineral Agreement. The contractor may withdraw from
justifiable cause with one (1) month's notice to the
IPs, and other government agencies as provided in

this Act. The Council, in cooperation with other concerned government agencies, shall

issue a clearance for withdrawal upo
legal obligations, including the appro
Funds and bonds which have been p!
shall be forfeited.

Section 66. Prohibition on the Tran

rights under this Act be transferable.

Council and the Bureau of any chang

and its financing program. Violation
mineral agreement and forfeiture of t

certifying that the contractor has complied with all its
riate measures for mine closure and rehabilitation.
lut up by the contractor in accordance with this Act

\sfer of Mineral Agreements. In no case shall mining
‘The contractor shall also immediately notify the

fe in the ownership and/or control of the corporation

f this provision shall cause the cancellation of the

e contractor's assets in favor of the State.

CHAPTER VI

30



SMALL-SCALE MINING

Section 67. Applicability of RA 7076,
the provisions of Republic Act 7076 or!
Provided, That the Provincial/City Mini

Small-scale mining shall continue to be governed by
the People's Small-Scale Mining Act of 1991,
1g Regulatory Board shall be composed of the

Governor or City Mayor, as chairperson, as the case may be, a DENR representative as co-

chairperson, one (1) small scale minin
representative, one representative fro
one representative from a people's or
and at least one (1) representative fro!

as members. The representatives from

indigenous communities shall be sele
communities, and appointed by the PI

Provided further, That the conduct of

representative, one (1) large-scale mining

m an environmental non-government organization,
Janization (PO) coming from the marginalized sector,
mn the indigenous communities, whenever applicable,
the private sector, nongovernment organization and
ted by their respective organizations and/or

IRB or CMRB.

mall-scale mining shall also comply with the

prohibitions and regulations established herein for large-scale mining. Only individuals and

cooperatives may apply for a small-s

Section 68. Maximum term of small

le mining permit.

:scale mining permits. The term for small-scale

mining permits shall be three (3) years, extendable to a maximum of fifteen (15) years

Section 69. Traditional small-scale
conduct regular monitoring activities
relevant laws are complied with in tra
respective ancestral domains.

Section 70. FPIC in small-scale min}
domain by any person shall also requ

Section 71. Requirement for Enviro}
Certificate. Small-scale mining shall I

proof of compliance with the terms ani

ining within ancestral domains. The Council shall
thin its jurisdiction to determine if the provisions of
itional small-scale mining by ICCs/IPs within their

ing. Small-scale mining activities within any ancestral
ire the FPIC of ICCs/IPs.

ynmental and Social Impact Compliance
kewise require an Environmental and Social Impact

conditions of its ESICC prior to the issuance of a

Compliance Certificate (ESIC). All rae scale mining applicants or proponents must show

small scale mining permit (SSMP). F
issuance of the SSMP.

jlure to submit this requirement will result in the non-

Section 72. Environmental measures in small-scale mining. The State shall

immediately address the environment
mining, including the use of mercury,
gold by small-scale miners.

The Bureau shall immediately condu
appropriate, clean, efficient, culturally;
shall mitigate the environmental and
eventually replace the current practicg

Section 73. Monitoring small-scalp
fr

organized by the Council to monit
conditions of their respective SSMPs
of SSMP areas at any time and shall

fl and health hazards and problems in small-scale
cyanide and other chemicals, in the amalgamation of

t research to focus on developing and promoting
sensitive and industrially-viable technologies that
ealth effects of mercury and cyanide use and

mining. A multi-sectoral monitoring team shall be
SSMP permittees’ compliance with the terms and
ind ESICCs. The team shall conduct ocular inspections

have visitorial powers.

31



Section 74. Livelihood support. The |State shall support the improvement of the livelihood

of small-scale-miners by extending ser

ices for access to other more viable and sustainable

forms of livelihood, and, if the same is not possible, the following support services:

(a) access to minerals markets and to

(b) facilitating partnership with mining

mining companies to buy tailings from

or recycling;
(0) facilitating partnerships among sm:

(d) other incentives to attract informal

financing;

ompanies or contractors by, among others, requiring
‘small-scale mining operations for further processing
ll-scale mining cooperatives; and

mall-scale miners to formalize their status.

Section 75. Buying stations. The Bangko Sentral ng Pilipinas shall ensure that buying
stations acquire gold from small-scale traders at prevailing international gold market prices
and the prevailing exchange rate set by the BSP Treasury Department on a daily basis.

CHAPTER VII

QUARRY RESOURCES

Section 76. Quarry resources within ancestral domains. Gathering of quarry resources,

sand and gravel, guano and other org

ancestral domains shall likewise be si

government shall be entitled to ten per

resources are found inside or outside
(5) years, renewable for like period bi

only at a maximum surface area of fiv

nic fertilizer materials, and gemstones within
bject to the FPIC of ICCs/IPs. ICCs/IPs and the

nt (10%) of royalties depending on whether the
ncestral domains. Permits shall have a term of five
not to exceed a total term of twenty (20) years, and,
(6) hectares.

Section 77. Quarry Permit. Any qualified Filipino may apply for a quarry permit on

privately-owned lands and ancestral
materials such as marble, basalt, andi
serpentine, inset filling materials, clay
and other similar materials that are e:
provincial/city mining regulatory boar
the applicant has complied with all th

jomains and public lands for building and construction
site, conglomerate, tuff, adobe, granite, gabbro,

for ceramic tiles and building bricks, pumice, perlite
acted by quarrying from the ground at the

The provincial governor shall grant the permit after
requirements as prescribed by the rules and

regulations set forth by this Act. Provided that gathering/extraction of sand for its metallic

contents such as magnetite from the
mineral agreement in lieu of a quarry

The maximum area which a qualified
surface area of five hectares (5 has.)
involving cement raw materials, marb]
aggregates, a qualified person and th
defined herein

Aquarry permit shall have a term of fi
a total term of twenty (20) years. No)
that is covered by a mineral agreemef

‘ountry’s rivers and shorelines shall be require a
permit.

‘erson may hold at any one time shall be limited to a
Provided, That in large-scale quarry operations

le, granite, sand and gravel and construction

fe government may enter into a mineral agreement as

fe (5) years, renewable for like periods but not to exceed
quarry permit shall be issued or granted for any area
nt.

32



Section 78. Quarry fees and taxes
for under the implementing rules and
as provided by pertinent laws.

Section 79. Cancellation of quarry

provincial governor for violations of the
regulations or the terms and condition:

A quarry permittee shall pay quarry fees as provided
egulations. The permittee shall also pay excise taxes

provisions of this Act, its implementing rules and

ce A quarry permit may be cancelled by the
of said permit. Provided, That before the

cancellation of such permit, the holder thereof shall be given the opportunity to be heard in

an investigation conducted for the pul

Section 80. Commercial sand and g
permit by the provincial governor to e’

unconsolidated materials outside an

without undergoing processing from at

such quantities as may be specified it

Section 81. Industrial sand and gra’

industrial sand and gravel permit by t!

pose.

vel permit. Any qualified person may be granted a
act and remove sand and gravel or other loose or
tral domains which are used in their natural state,
area of not more than five hectares (5 has.) and in
in| the permit.

el permit. Any qualified person may be granted an
Bureau for the extraction of sand and gravel and

other loose or unconsolidated materials outside ancestral domains that necessitate the use
of mechanical processing covering an|area of not more than five hectares (5 has.) at any

‘one time. The permit shall have a terr

of three (3) years, renewable for a like period but not

to exceed a total term of twenty (20) years.

Section 82. Exclusive sand and gravel permit. Any qualified person may be granted an
exclusive sand and gravel permit by the provincial governor to quarry and utilize sand and
gravel or other loose or unconsolidated materials from public lands for his own use,
Provided, That there will be no commercial disposition thereof.

Section 83. State gratuitous permit, Any government entity or instrumentality may be
granted a gratuitous permit by the provincial governor to extract sand and gravel, quarry or
loose unconsolidated materials outside ancestral domains needed in the construction of
building and/or infrastructure for publi¢ use or other purposes over an area of not more than
two hectares (2 has.) for a period co-terminus with the said construction.

Section 84. Private Gratuitous Permit. Any owner of land may be granted a private
gratuitous permit by the provincial governor to extract sand and gravel, quarry or loose
unconsolidated materials within his property

Section 85. Guano permit. Any qualified Filipino may be granted a guano permit by the
provincial governor to extract and utilize loose unconsolidated guano and other organic
fertilizer materials in any portion of a municipality where he/she has an established domicile
outside ancestral domains. The permit shall be for specific caves and/or for confined sites
with locations verified by the Department's field officer in accordance with existing rules and
regulations. Provided, That extraction does not violate and is consistent with the provisions
in the Cave Conservation Act and the Wildlife Act.

Section 86. Gemstone gathering permit. Any qualified Filipino may be granted a non-
exclusive gemstone gathering permit by the provincial governor to gather loose stones
useful as gemstones in rivers and other locations outside ancestral domains.

33


Section 87. Council recommendation for approval. All permits under Chapter VII of this

Act shall require the recommendation

if the Multi-Sectoral Mineral Council prior to approval

by the provincial government unit The|absence of a recommendation from the Council

prohibits the approval of any permit in

his Chapter.
CHAPTER VIII

TRANSPORT, SALE/AND PROCESSING OF MINERALS

Section 88. Ore transport permit. A

ermit specifying the origin and quantity of non-

processed mineral ores or minerals shall be required for their transport.

In the case of mineral ores or mineral:

to the custom mills or processing plant

formulate their own policies to govern
mining cooperatives.

being transported from the Minahang Bayan areas
s, the Minahang Bayan Council concerned shall
uch transport of ores produced by small-scale

Transport permits shall be issued by the Bureau. The absence of a permit shall be

considered as prima facie evidence of

illegal mining and shall be sufficient cause for the

confiscation of the ores or minerals being transported, the tools and equipment utilized, and

the vehicle containing the same.

Section 89. Track record. Only mining companies with demonstrated capacity and good

environmental track record in mineral
Council shall encourage contractors t.

rocessing shall be allowed to extract minerals. The
put up processing plants within the community with

the end in view of generating employment and developing other downstream industries,

products, either locally or international

ly, unless accredited by the Department and duly

Section 90. Mineral trading rarely No person shall engage in the trading of mineral

registered with the Department of Tra

je and Industry (DTI) with a copy of said accreditation

and registration submitted to the Bureau.

Section 91. Mineral Processing Per
cooperative, corporation or other enti
first securing a minerals processing p
shall be for a period of five (5) years,
term of twenty-five (25) years

In the case of small-scale miners, the

it. No individual, partnership, partnership,
shall engage in the processing of minerals without
rmit from the Council. Minerals processing permits
fenewable for like periods but not to exceed a total

processing of mineral ores they produce, as well as

the licensing of their custom mills or processing plants, shall continue to be governed by the

provisions Of Republic Act No. 7076.

In the case of individuals, corporation
parties to a Mineral Agreement or a Fi
of quarry and industrial sand and gra

, partnerships, cooperatives or other entities who are
inancial or ‘Technical Assistance Agreement, holders
lel permits, the approved work program for the

production period shall be sufficient requirement for them to process minerals in lieu of a

mineral processing permit

Amineral processing permit shall be for a period of ten (10) years, renewable for like

periods: Provided, That renewal shall

inot be allowed unless the permit holder has complied

34



.

.

with all the terms and conditions of th
any provision of this Act and its imple

After due process, a mineral processi
the DENR for violation of its terms an
regulations.

Mineral processing shall be included i

permit and has not been found guilty of violation of
renting rules and regulations.

ig permit may be suspended, revoked or cancelled by
conditions, or of pertinent laws, rules and

the Investment Priority plan to be prepared by the

Board of Investment in accordance with Executive Order No, 226, as amended, otherwise

known as the Omnibus Investment C:
area of investment.

DEVELOPMENT OF COMI

Section 92. Expenditure for commu}

development of the community, and
towards sustainable development. Cot

decrease the obligation of the corporal

communities and/or local government

le of 1987 and shall always be listed as a preferred

CHAPTER IX
JUNITIES, SCIENCE AND TECHNOLOGY

ity development. A contractor shall assist in the

le promotion of the general welfare of its inhabitants
munity development projects shall in no way

ion with regard to royalties and fees due to

units. Community development projects should be

consistent with the Comprehensive Land Use Plans (CLUP), Ancestral Domains

Sustainable Development and Protect
the local governments, CADT/CALT hi

the local community. A contractor a

jon Plan (ADSDPP) and annual investment plans of
‘ders, and the like.

\d/or permittee shall give preference to Filipino

Section 93. Preferential option order labor, experts and training of members of

citizens in all types of mining employ
community shall be trained in all aspe
recycling, and the management there

give preference to the use of local go:

ent within the country. Members of the local
ts of the mining operations, including remining,
yf

ds, services, and the scientific and technical

Section 94. Use of indigenous ree services and technologies. A contractor shall

resources in all stages of mining oper:
are available on equivalent terms as t

Section 95. Donation or turnover of
by abandonment or withdrawal of op
shall have a period of one (1) year th
Othenwise, all the infrastructure, facili
tax-free to the proper government aut
infrastructure facilities and equipment
A fine of one hundred thousand peso:
delay.

tions, where the same are of equivalent quality and
ir imported counterparts

facilities. Prior to the cessation of mining operations
rations on public lands by the contractor, the latter
refrom within which to remove improvements.

jes and equipment shall be turned over or donated
‘ities, national or local, to ensure that said

are continuously maintained and utilized by the State.
(PhP100,000.00) shall be imposed for every day of

CHAPTER X

BENEFIT SHARING, TAXES AND FEES

Section 96. Taxes and fees. The contractor shall pay all taxes and fees as required by

law, including, but not limited to:

35



a. contractor's income tax;
b. customs, duties and fees on

c. value-added tax on imported

d. withholding tax on interest p:
stockholders;

e. documentary stamps tax;

f. capital gains tax;

g. excise tax on minerals;

h. local business tax;

i. real property tax;

j. community tax;

k. occupation fees;

joods and services;
ments to foreign loans and on dividends to foreign

roan capital equipment;

\. registration, accreditation and permit fees;

m. water usage fees.

Section 97. Government share. Asi

preceding section, Government shall

fe from the taxes and fees referred to in the
ave a share equivalent or greater than ten percent

(10%) of the gross revenues from oe. development and utilization of mineral

resources that are owned by it to be

to be used, among others, for spec

set aside for the general fund of the government
jal projects such as energy development and

generation and the management abe conservation of protected areas in areas within

the vicinity or adjacent to mining oj

ion 98. Indigenous cultural cot
within ancestral domains, the contra
revenues as royalty to the ICCs/IPs.
considered as royalty payment. The
communities in a process that build 0

manipulation, interference, coercion,

erations.

munities’ royalty. In case of mineral operations
r shall allot at least ten percent (10%) of the gross
‘ommunity development programs shall not be
yyment of the royalties shall directly be given to the
the ICCs/IPs' traditional and customary laws.

ind other analogous acts, and obtained after fully

Provided, That the royalty ‘coment this Act shall be free from any external

disclosing the intent and scope, inclu
in a language and process understan|

Section 99. Scientific research and
Development Fund shall be set aside
mining technologies, improvement of
technologies, the setting up and mail
operational expenses of the Bureau.

ing the positive and negative impacts of the activity,
fable and acceptable to them.

development fund. A Scientific Research and
to be devoted to research and development of clean
ining processes, mine rehabilitation, mitigating
‘enance of an independent pool of experts, and

Section 100. Legal services fund. A legal support fund shall be set aside for the use of

the communities and local governme!
permittees or cases that may be filed

t units for cases that they may file against mining
against them by mining companies in trying to do their

responsibility of protecting the rights of the marginalized groups, the environment and

sustainable development in general

Section 101. Local Government Unit share. Local Government Units shall be entitled to a

share of the net revenues from minin|
treasurer's office of the provincial/ind}

9 operations which shall be paid directly to the
ppendent component city/highly urbanized city for

36



1
2
3
4
5
6
7
8
9

10
11
12
13
14
15
16
7
18
19
20
a
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
a1
42
43
44
4s
46
47
48
49
50

.

x

distribution to other local government

following variables shall be considered:

nits. To determine the government share, the

a. Classification of local government;
b. Vulnerability; and

c. Human development index.

A percentage of this amount shall be set aside by the respective local government units for

Disaster Risk Management. This fund

the local government unit.

Provided, That the administrative and
taken from this share.

shall likewise benefit \CCs/IPs within the territory of

perational expenses of the Council shall also be

Section 102. Mine wastes and tailings fees. A semi-annual fee denoted as mine wastes

and tailings fee is hereby imposed on
the implementing rules and regulation
fund to be used as support funds for

is authorized to increase mine wastes

Section 103. Incentives. Incentives th

only to pollution control or mitigation di

Section 104, Deposit of capital and
financial capacity, all large-scale mini
capital investment and profits in banks
and operated by the Philippine gover

Section 105. General rule on profit
assistance shall be allowed to repatri
exceed fifty percent (50 %) of the total
of profits is required. The full repatriati
cessation of mining activities and the
specified in the mineral agreement of

The guidelines for Sections 98 and 9
and shall be furnished to the Depart
the industry.

Il operating mining companies in accordance with
. The mine wastes and tailings fee shall accrue to a
je monitoring activities of the Council. The Secretary
land tailings fees, when public interest so requires.

at shall be given to the contractors shall be limited
evices.

ofits requirement. As part of their demonstrated

1g companies/contractors are required to deposit their

or financial institutions that are owned, managed
ent

repatriation. Contractors with foreign financial

te their profits from mining projects that should not
posted at the end of every fiscal year. Full disclosure
n of profits shall be allowed one year after the
rogressive rehabilitation of a mining area as

ach contractor

shall be issued by the Bangko Sentral ng Pilipinas
ent, Bureau, Council and all respective contractors in

CHAPTER XI

SAFETY AND ENVIRONMENTAL PROTECTION

Section 106. Mines safety. All contr

A. Safety

ictors and permittees shall strictly comply with all the

rules and regulations concerning the gafety and sanitary upkeep of mines and mining

development. Government personnel
occupational health and environment
Republic Act 7305 or the Magna Cart

involved in the implementation of mines safety,
rules and regulations shall be covered under
of Public Health Workers.

37



weyvanuauene

10

12
13
14
15
16
7
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
a
42
43
44
45
46
47
48
49
50

Section 107. Mine workers. No person under sixteen (16) years of age shall be employed
in any place of mining operations and ho person under eighteen (18) years of age shall be

employed in a mine.

Section 108, Mine supervision. All
than fifty (50) workers shall have at le:
(5) years of experience in mining oper

Section 109. Safety of workers. All
health and well-being of workers. The
Employment shall inspect all mining sit
conditions of workers. Denial of entry
trade unions shall also have visitorial

Section 110. Mine inspection. The r
have jurisdiction over the safety inspe
mining operations at reasonable hour
impede or obstruct work in progress of
recommendations of the Bureau shall

Section 111. Power to issue orders.

lining and quarrying operations that employ more
st one (1) licensed mining engineer with at least five
tions, and one (1) registered foreman

ining companies shall provide safeguards to the
‘egional Office of the Department of Labor and

fes within their areas of jurisdiction to determine the

hall be punishable under this Act. Representatives of

ights.

gional directors of the Bureau and the Council shall
ion of all installations, surface or underground, in
of day or night and in a manner that shall not

a contractor or permittee. Monitoring reports and

e submitted to the Council.

The regional directors of the Bureau, in consultation

with the Environmental Management Bureau (EMB), forthwith or within such time as

specified in the order, require the cont
which is not in accordance with safety
imminent danger to life or property, th
operation until the danger is removed,
Unreasonable delay to remove the dai
contractor shall be a cause for the cant

Section 112. Report of accidents. In
the danger of loss of life or serious ph
shall immediately report the same to t!

factor to remedy any practice connected with mining,
ind anti-pollution laws and regulations, In case of
Director may summarily suspend the mining

or appropriate measures are taken by the contractor.
ger oF introduce the necessary improvements by the

cellation of the mineral agreement.

‘case of any incident or accident, causing or creating
sical injuries, the person in charge of operations
je regional office where the operations are situated.

Failure to report the same without justifiable reason shall be cause for the imposition of

administrative sanctions prescribed in

rules and regulations implementing this Act

B. Environmental Protection

Section 113. Environmental Protect
environmental protection and enhani
agreement or permit. Such environm
program which the contractor or permil
the application for a mineral agreemer
plans relative to mining operations but|
reforestation of mineralized areas, slo}
areas, aquaculture, watershed develo}
development.

n. Every contractor shall undertake an
‘ent program covering the period of the mineral
intal program shall be incorporated in the work
fee shall submit as an accompanying document to
or permit. The work program shall include not only
also to rehabilitation, regeneration, revegetation and
e stabilization of mined-out and tailings covered
ment and water conservation; and socioeconomic

Section 114. Environmental Impact Assessment (EIA). Except during the exploration
p

period of a mineral agreement or an e3
certificate shall be required based on

oration permit, an environmental clearance
n environmental impact assessment and procedures

38



x

under the Philippine Environmental Impact Assessment System, including Sections 26 and
27 of the Local Government Code of 1991 which require national agencies to maintain
ecological balance, and prior consultation with the local government units,
nongovernmental and people's organizations and other concerned sectors of the
community: Provided, That a completad ecological profile of the proposed mining area shall
also constitute part of the environmental impact assessment. People's organizations and
nongovernmental organizations shall He allowed and encouraged to participate in ensuring
that contractors/permittees shall observe all the requirements of environmental protection.

Section 115. Environmental Insurance. Contractors and mineral processing permit
holders shall be obliged to execute an|insurance contract as environmental assurance for
each and every source of pollution or disaster, relative to the worst case scenario costs,
following accepted actuarial standards, Provided, That in no way shall this provision be
construed to remove or reduce the liability of the contractors and/or permit holders to
compensate any damage caused by their operations. Provided further, That the insurer
shall be an accredited international company in good standing.

Prior to the approval of the insurance ¢ontract, the DENR shall seek and consider the
opinion of an independent expert as td the financial credibility of the insurer.

Section 116. Calamity and Human Rights Protection Fund. Persons issued a mineral
agreement shall deposit 1/12 of their gross income semi-annually in an interest-bearing
account a common fund maintained by the national government which shall be used for
responding to, or ameliorating the effects of calamities, natural disasters and human rights
Violations including militarization, displacement, and forcible evacuation in any part of the
country in relation to mining activities. Provided, That in no way shall this provision be
construed to remove or reduce the liability of the contractors and/or permit holders to
compensate any damage caused by their operations.

Section 117. Performance Bond. Th contractor shall put up a bond in an amount
equivalent to fifty percent (50%) of the projected cost of rehabilitation as validated by
independent studies. This amount shall be deposited in an interest-bearing account. The
bond shall be forfeited in the event that the contractor shall fail or default in the
rehabilitation or remediation of the mining area as included in the work plan of the
contractor or abandons the mine at arly time of its operations.

Section 118. Final Mine Rehabilitation and Decommissioning Fund. Contractors and
permittees shall technically and biologically rehabilitate the excavated, mined-out, tailings
covered and disturbed areas to the cohdition of environmental safety, as provided in the
implementing rules and regulations of this Act. A mine rehabilitation fund shall be created,
based on the contractor's approved work program, and shall be deposited as a trust fund in
a government depository bank and used for physical and social rehabilitation of areas and
communities affected by mining activities and for research on the social, technical and
preventive aspects of rehabilitation. Failure to fulfil the above obligation shall mean
immediate suspension or closure of the mining activities of the contractor/permittee
concerned.

A Final Mine Rehabilitation and Decommissioning Fund (FMRDF) shall be established by
each operating Contractor or Permit Holder to ensure that the full cost of the approved Final
Mine Rehabilitation and Decommissioning Plan (FMRDP) is accrued before the end of the

39


eNausenn

‘

operating life of the mine- The FMRDF

shall be deposited as trust fund in Government

depository bank and shall be used solely for the implementation of the approved FMRDP.

Annual cash provisions shall be made:
‘on the formula:

Annual provision Cost of Implementit

Based on the expected mine life, the i
Committee within sixty (60) days from
anniversary date thereafter; Provided,
the MIRF Committee may allow a lat
Failure to fulfil the above obligation shi
mining activities of the contractor/pe

Mining firms are also mandated to im
already finished excavating as they mt
however, that if mining firms cannot

firm found to have violated or have no}

by Contractors/Permit Holders to a FMRDF 3 based

1g the Approved FMR/DP x Percentage Required per
Table |

tial annual cash provision shall be made to the MRF
e date of the FMR/DP's approval and every

That, on application by the Contractor/Permit Holder,

date for the payment of the first annual provision.

lI mean immediate suspension or closure of the
ittee concerned.

\ediately restore and replant areas that they have
ve on to other development sites: Provided,
reforestation in their immediate area they could do

complied with the foregoing mandatory provisions

the reforestation in other areas ree they comply with 100:1 hectare ratio. Any mining

shall be held liable with the penalty of
fine of not less than One Million Pesos

‘evocation of their mining permits and payment of a
(P 1,000,000). The owners, officers and

management employee of said mining firms shall also be held liable and be subject to

imprisonment of not less than one ye

tat

Section 119. Progressive rehal
rehabilitation activities.

Section 120. Adoption of the precai
raises threats of harm to public health
taken proactively even if some cause
established of which the mining prop
publicly.

ir not more than three (3) years.

ion. Contractors shall also conduct progressive

tionary principle. When an activity related to mining
or the environment, precautionary measures shall be
ind effect relationship have yet to be scientifically

rent and the Bureau shall also be obliged to disclose

Section 121. Adoption of polluter pays principle. Polluters shall pay for the damage they

cause to the environment. The amour
independent consultants, to be choset
proponent and by the Council

Section 122 Tailings impoundment,
critical watershed drainage areas. Ful
endanger critical watershed areas ani
abnormal conditions. Tailing impound!
standards for large dams.

Section 123. Dumping of waste. Du
prohibited. Provisions of the Clean W:

it of damages shall be determined by accredited
from a list and agreed upon by both the mining

Tailings impoundments shall be built away from
thermore, it shall be ensured impoundments will not
low-lying valleys in the event of accidents under
rents and dams shall meet the international

ping of waste or tailings in any body of water shall be
ter Act and Clean Air Act shall be strictly implemented



Section 124. Use of toxic chemicals
use chemicals or reagents which woul
destruction. The use of mercury and c
minerals shall be prohibited. The use
likewise be prohibited.

Section 125. Preservation of topsoil
horizons of the soil shall be preserved

Section 126. Priority use for water.

and methods. At all times, mining contractors shall
result to the least environmental and social

fanide for the extraction of gold, silver and other

f blow torching to separate gold from amalgam shall

The removed topsoil, or the more productive
ifor other uses.

The National Water Resources Board (NWRB) shall

investigate any existing use of water fesources in the area whether or not covered by any
Ip

existing water permit or registration,
shall procure the consent of all water u
permits within the same groundwater
In all instances, priority shall be given t
purposes. If potential negative impact
not be granted. For water resources
water permit shall be granted by the NI

on determination of any existing use, the applicant

ers and/or the FPIC of ICCs/IPs with or without water

jetwork or any downstream users of water resources.
use of water for domestic, municipal, and agricultural

n other water users is identified, the water permit shall

ithin the ancestral domain of indigenous peoples, no
RB without the FPIC of the indigenous peoples.

Section 127. Recycling of water resources. Water used in mining operations shall be

recycled. Mining contractors shall be r

quired to provide for the methods and equipment for

the recycling or reuse of water. Released contaminated water shall be treated accordingly

to meet national standards. Released
baseline water quality

Section 128. Water user’s fee. A wat
country and community shall be impo:

operations. Contractors shall pay the f
monitoring and improvement of the aff
negative impacts thereon to ensure thi

ater must at least be equivalent in quality to the

r user's fee that reflects the value of water to the
sd by the Council for water used in mining

@ to the NWRB which shall use the same for

cted waterways and systems and the mitigation of
it communities shall have access to clean water.

C. Acid Mine Drainage

Section 129. Prohi
use of acid-generating waste rock to bi
The use of such materials shall only
mine drainage.

Section 130. Establishment of a pré
establish a prediction and monitoring
and monitor their production of acid wi

Section 131.
impoundments shall not be built near
acid production and groundwater cont

Section 132. Remining. Remining sl
maximize and recover the remaining rt
and mining operations, Provided, Th
standards, parameters and guidelines

n from using acid-generating waste rock for infrastructure. The

lild roads, dams or other infrastructures is prohibited.
used after treatment to neutralize the effect of acid

diction and monitoring system. The Bureau shall
‘system to identify potential acid-producing materials
ste.

or on waterways to prevent contact and subsequent
mination.

Avoidance of weeraren Open pits, waste rock piles and tailings

all be prioritized over the opening of new mines to

inerals from the rejects or wastes of previous mines
lat remining operations shall follow the processes,
set for mining operations in this Act.

a


Section 133. Suits after the termination of contracts or projects. Recognizing that the

effects of mining may be seen or felt,
or peoples, environmental degradatio’
the project proponent and/or persons
terminated.

RESOL'
Section 134. Panel of Arbitrators. Thi

of the Department composed of thres
the Philippine Bar in good standing, a

actions relating to the health of affected communities
and other similar effects may be maintained against
Wven after the mineral agreement or mining project has

CHAPTER XII
ITION OF CONFLICTS

re shall be a panel of arbitrators in the regional offices
(3) members, two (2) of whom must be members of
\d one a licensed mining engineer or a professional in

a related field, and duly designated by|the Secretary as recommended by the MGB Director.

Those designated as members of the
the Department without receiving any
members shall come from the differ

panel shall serve as such in addition to their work in
ditional compensation. As much as practicable, said
nt bureaus of the Department in the region. The

presiding officer thereof shall be selected by the drawing of lots. His tenure as presiding
officer shall be on a yearly basis. The members of the panel shall perform their duties and
obligations in hearing and deciding cases until their designation is withdrawn or revoked by
the Secretary. Within thirty (30) working days, after the submission of the case by the parties
for decision, the panel shall have exclusive and original jurisdiction to hear and decide on the

following:
a. Questions involving co

rules and regulations of

b. Questions involving tHe compliance with technical

established, or those
regulations; and,

c. Other similar instances

ipliance with the established technical guidelines and
hed, or those to be established by the implementing
his Act;

procedures herein
be established by the implementing rules and

herein the technological and technical expertise of the

Department shall be needed.

Disputes involving real rights, contract
in anyway connected with the abovel

ial obligations and other causes of action that are not
mentioned scopes of jurisdiction shall be under the

jurisdiction of the regular courts or as otherwise provided by other special laws.

Provided, That disputes pending before the Bureau and the Department at the date of the

effectivity of this Act shall undergo an

immediate review within sixty (60) working days upon

the passage of this Act to determine the cause of action. Those which are outside the

technical expertise of the Departmen
without costs to the complainant or
operations or to clean or rehabilitate
be immediately executory.

the party not satisfied thereto to the

or Bureau shall be refiled with the appropriate court,
petitioner. All Decisions or orders to stop mining
mining operations and surrounding communities shall

lines Adjudication Board within fifteen (15) days from

Section 135. Appeal. The decision tines of the panel of arbitrators may be appealed by

receipt thereof, which must decide th
for decision

case within thirty (30) days from submission thereof

42



Section 136. Mines Adjudication Board (MAB). The Mines Adjudication Board shall be

composed of three (3) members. The
the Mines and Geosciences Bureau
Department as members thereof. The

a. promulgate rules and regul
before it, as well as those

regulations as may be nece!

b, administer oaths, summon
attendance and testimony
contracts, records, stateme|
may be material to a just d

testify in any investigation

« conduct hearings on all
determine the disputes in
summoned or served with
thereof in public or in priv
technical matters or accou!
after hearing of the partie
excluded from the proce
irregularity, whether in subs
necessary or expedient in
the mining dispute as part
by the Board are not neces!

1. To hold any pers
appropriate penaltie

2, To enjoin any or all
it which, if not restrai
to any of the partie:
stability.

In any proceeding before the Board, t!
shall not be controlling and its the spi
shall use every and all reasonable

objectively and without regard to tect
process and social justice. In any
represented by legal counsel. The fini
on the parties and its decision or ord.

A petition for review by certiorari and
the Court of Appeals within thirty (30)

Sec. 137. Exceptions.

In no case, however, shall the followi

‘Secretary of the DENR shall be the Chairperson with
jirector and the Undersecretary for Operations of the
Board shall have the following powers and functions:

tions governing the hearing and disposition of cases
}ertaining to its internal functions, and such rules and
sary to carry out its functions;

arties to a controversy, issue subpoenas requiring the

ff witnesses or the production of such books, papers,
it of accounts, agreements, and other documents as
termination of the matter under investigation, and to
hearing conducted in pursuance of this Act;

fatters within its jurisdiction, proceed to hear and
the absence of any party thereto who has been
‘tice to appear, conduct its proceedings or any part
te, adjourn its hearings at any time and place, refer
its to an expert and to accept his report as evidence
upon due notice, direct parties to be joined in or
ings, correct, amend, or waive any error, defect or
tance or in form, give all such directions as it may deem

‘ereof, where it is trivial or where further proceedings
ary or desirable:

te determination of the dispute before it, and dismiss

nin contempt, directly or indirectly, and impose
therefor; and

(cts involving or arising from any case pending before
ined forthwith, may cause grave or irreparable damage
to the case or seriously affect social and economic

rules of evidence prevailing in courts of law or equity
rit and intention of this Act that shall govern. The Board
leans to ascertain the facts in each case speedily and
nicalities of law or procedure, all in the interest of due
proceeding before the Board, the parties may be
ings of fact of the Board shall be conclusive and binding
shall be final and executory.

juestion of law may be filed by the aggrieved party with
days from receipt of the order or decision of the Board.

g cases be subject to arbitration:

43



‘A. Cases wherein a mining appli¢ation was already dismissed or vetoed as provided

under Sec. 41 of this Act;

B. Cases which involve criminal liability;

CHAPTER Xill

ACCESS TO JUSTICE

Section 138. Human Rights obligations. Corporations shall respect, protect and promote

the human rights of communities affe
property, freedom of movement, right

ted by mining, including the right to life, liberty and
f public participation and the right to self-

determination of indigenous cultural communities.

Section 139. Violations of human rights. Extrajudicial killing, torture, involuntary
disappearance, forcible displacement of populations, setting up of checkpoints and

imposition of toll fees which impede t!

deprivation of food and water source:

}e freedom of movement within mineral areas,
| vote-buying and bribery for the purpose of securing

consent or endorsement for the mining project, and other analogous acts are violations of
human rights. Violations of human rights by contractors shall cause the immediate
cancellation of mineral agreements. The offending contractor, as well as corporations

having the same directors and/or offi

fers as of the offending contractor shall be perpetually

disqualified from being granted a mineral agreement. All equipment and assets of the

corporation or person shall be confis

Section 140. Use of paramilitary a
prohibited from using and/or funding

ited in favor of the State.

military forces. All mining companies are strictly
aramilitary groups. Using private, paramilitary and

military forces to threaten and harass individuals and communities shall result in the

automatic cancellation of the mineral
and/or administrative charges.

Section 141. Strategic Legal Actio
any legal action, whether civil, crimins

action or stifle legal recourses of citiz

enforcing the provisions of the Act, 0
participation. On motion that alleges

agreement and the filing of appropriate civil, criminal

Against Public Participation (SLAPP). SLAP is

| or administrative, filed to harass, vex, exert legal
ens complaining against violations of this Act or
‘exercising their freedom of assembly or right of public
fhat the action is a SLAPP, the investigating

prosecutor or court shall immediately) determine within a period of thirty (30) days from filing
thereof whether a legal action is a SLAPP and accordingly dismiss the same.

Section 142. Indigents suit. Indigents shall be exempt from payment of any administrative

or court fees, including docket fees fc
Public Attorney's Office to pauper litis

Section 143. Application of the cu:
respect the customary laws of the IC
Provided, That, in applying this provi
resolving disputes, the integrity of th
institutions, customary laws and tradi

Interpretation of this provision shall b'

Section 140. Strict liability. Mining
diligence in all its actions in relation

r the filing of a case. Lawyers shall be provided by the
jants in case they could not afford legal services.

tomary laws of ICCs/IPs. The contractor shall
/IPs and ensure that such laws shall be adhered to.
ion in relation to other national laws, as well as in
ancestral domains, culture, values, practices,
itions of the ICCs/IPs shall be given primacy.
e resolved in favor of ICCs/IPs.
corporations are required to observe extra-ordinary
mining operations and are strictly liable for all

44



damages that the mining operations might cause. In case of any actual damage, the burden

of proof shall lie with the corporations.

Section 144. Surmounting the corp

rate veil. When the separate personality of the

corporation from its shareholders is bging invoked as defense in order to perpetuate a

crime, fraud, evade liability, and cond
corporation shall be set aside. Civil, cr
directly against the members of the Bi

ct ‘other machinations, the separate personality of the
minal and administrative actions may thus be filed
ard of Directors, officers and the individual

stockholders. The corporation shall publish in its website and in the Securities and

Exchange Commission the names ani

addresses of its officers in the Philippines anyone of

whom is authorized to receive summons and other court processes on its behalf.

Section 145. Citizen Suits. For the purpose of enforcing the provisions of this Act and its

implementing rules and regulations, aj

y citizen may file appropriate civil, criminal and

administrative suits against any of the! following:

a. Any person who violates or
implementing rules and regulal

b. Any public officer with respect

this Act;

cc. Any public officer who willfull

specifically

enjoined as a duty by this Act
the

performance of a duty/ies und:

The court shall exempt such action fr
and shall likewise, upon prima facie showing of non-

not capable of pecuniary estimation,
enforcement or violation complained
the issuance of a preliminary injuncti

Pl
Section 146. Grounds for the cancel

a. Late or non-compliance wit

ils to comply with the provisions of this Act or its
jons;

to orders, rules and regulations inconsistent with

ly or grossly neglects the performance of an act

its rules and regulations; or abuses the authority in
1 this Act or its implementing rules and regulations.
m the payment of filing fees, except fees for actions

f, exempt the plaintiff from filing an injunction bond for
n.

CHAPTER XIV
NAL PROVISIONS

ation of mineral agreements and permits:

the requirements and prohibitions set forth in this

Act, or in its implementing rulgs and regulations;

b. Violation of the Terms and Conditions of Permits or Agreements. Any act or

omission contrary to what is stipulated in the exploration permit, mining agreements
and other contracts shall cause the immediate revocation and termination of the said
permit or agreement. Likewise, any person who knowingly presents any false
application, declaration, or evidence to the Government or publishes or causes the
publication of any prospectus or other information containing any false statement
relating to mines, mining operations or mineral agreements and permits shall, upon
conviction, not only cause the immediate revocation and termination of the said

45


permit or agreement, but shall
Hundred Thousand Pesos (P1

c. Human rights violations perp

c. Failure to pay the taxes and

Iso be penalized by a fine of not exceeding One
}0,000.00).

trated by the contractor or any of its agents;

fees provided forth in this Act;

d. Bribery, use of force, intimidation, threat, coercion of public officials and

communities;

e. Any act that shall create or contribute to conflicts between community members;

f. Other analogous acts.

Provided, that violations of Chapter XI of this Act shall cause the immediate cancellation of

mining permits, including but not limit
required to pay for the rehabilitation, r

Corporations, corporate directors/offi

.d to provisions of this Act, and the contractor shall be
storation or clean-up of the impacts of such violations.

fers found guilty of the above enumeration shall be

perpetually banned for participating directly or indirectly in any and all mining operations in

the Philippines.

Section 147. Illegal exploration. An)

person undertaking exploration work, upon

conviction, shall be penalized by a fing of not exceeding Five Million pesos

(P5,000,000.00).

Section 148. Theft of minerals. Any|person, except traditional miners and small-scale
panners, extracting minerals and disposing the same without a mining agreement, lease,

permit, license; or steals minerals or

res or the products thereof from mines, mills or

processing plants shall, upon conviction, be imprisoned from six (6) months to six (6) years
or pay a fine from One Hundred thousand pesos (P100, 000.00) to One Million pesos (P1,
(000,000.00) or both, at the discretion of the appropriate court. In addition, he shall be liable
to pay damages and compensation for the minerals removed, extracted, and disposed of. In

the case of associations, partnership:
directors thereof shall be responsible’

corporation, or partnership.

Section 149. Vitiation of FPIC. Any

ICCs/IPs through bribery, threat, force

suffer the penalty of six (6) years an
least two million pesos (PhP 2,000,0
penalty shall be eight (8) years and

fine of at least four million pesos (Ph

from assuming public office, and shal

of his/her position in government.

, or corporations, the president and each of the
for the acts committed by such association,

person found to have vitiated the consent of the
, and/or intimidation, or any other similar means, shall
one (1) day to ten (10) years in prison, and a fine of at
10.00). if the perpetrator is a government official, the

ine (1) day to twelve (12) years imprisonment, and a

P 4,000,000.00). He/she shall be perpetually prohibited
| be disqualified from receiving other benefits by virtue

Section 150. Penalty for human rights violations. Contractors or other persons who

have committed human rights violati
penalized with ten (10) to fourteen (1
pesos (PhP 5,000,000.00) and shall

ns in connection with the mining operations shall be
4) years imprisonment and a fine of at least five million
indemnify the victims.

46



Section 151. Abandonment. Contractors and/or permittees who shall abandon mines shall
be perpetually banned or disqualified from directly or indirectly conducting mining
operations. The ban and/or disqualification shall include the officers and directors of
corporations that have abandoned mines.

Section 152. Confiscation of equipment and property. The equipment and property of
contractors and permit holders violating this Act shall be forfeited in favor of the State.

Section 153. Non-application of the|corporate veil. Any person violating the provisions
‘of Commonwealth Act No. 108, or the|Anti-Dummy Law of the Philippines as amended, or
is found to have used the corporate structure to defeat the provisions of this Act shall suffer
the penalty of five million pesos (P5,000,000.00) and a perpetual ban in the mining industry

Section 154. Unauthorized dealing, selling, and/or buying of gold. Any person,
partnership or corporation who shall sell, buy or in any manner deal gold from any miner or
person without being duly authorized by the Bangko Sentral ng Pilipinas shall be punished
as unauthorized dealing and shall be penalized in accordance with Section 146 of this Act

Section 155. Amendment to Section 27 of Republic Act 7076 or the Small-scale Mining
‘Act. Violations of the provisions of Republic Act 7076 or of the rules and regulations issued
pursuant hereto shall be penalized with imprisonment of six years and one day to twelve
years. The State shall confiscate and seize equipment, tools and instruments, effect
immediate suspension or closure of the mining activities of the permittee concerned, and
revoke the permit.

Section 156. Confiscation of equipment and property. The equipment and property of
small-scale contractors and permit holders who violate this Act shall be forfeited in favor of
the State.

Section 157. Local government officials who are administratively found to violate provisions
of this Act, vis-a-vis the pertinent sections of the Local Government Code shall be removed
from office and perpetually disqualified from holding any elective or appointive position in
government, its divisions, subsidiaries and any government-owned and controlled
corporations.

Section 158. Reinstatement of revaked permits. After notice and hearing, revoked
permits that have undergone due probess may be reinstated, Provided, That it may only be
reinstated once.

CHAPTER XV
~~ PROVISIONS

Section 159. There shall be a moratgrium on all new mining activities until all the systems
are in place for the proper implementation of this Act.

Section 160. Review of Existing Mining Permits, Contracts and Agreements. The
DENR shall conduct a review and audit of all mining permits, licenses and agreements for
the purpose of determining: (i) whether their continuance shall be advantageous for the

47



Government in accordance with the Mining Plan, and (i) the level of compliance of the
grantee or concessionaire with its statutory and contractual undertakings and obligations in
accordance to this Act and other pertinent laws concerning environmental protection and

conservation. Mine workers and their

mmilies 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

Section 161. The classification of public lands as mineral reservations pursuant to pre-

existing laws shall hereby cease. A
conducted to determine the best liveli
operations can start within mineral re:
compliance with this Act.

Section 162. The members of the pai
regulatory boards established under

view of the current mineral land classification shall be
jood and economic options for each area. No mining
vations unless finally determined to have been in

els of arbitrators and the provincial or city mining
‘epublic Act No. 7942 shall hold-over their positions

until replaced in accordance with provisions of this Act.

Fil

(CHAPTER XVI
|AL PROVISIONS

Section 163. Separability clause. The provisions of this Act are hereby declared to be

separable and, in the event of any su
provisions which are not affected ther

Section 164. Repealing clause. Pre:

h provisions are declared unconstitutional, the other
by shall remain in force and effect.

idential Decree 463, Presidential Decree 512,

Republic Act 7942, and other related mining laws are hereby repealed. All provisions in

laws, decrees, issuances and other r

amended or repealed if the inconsiste}

Section 165. Funds. The amount of

ulations inconsistent with this Act shall be deemed
cy is irreconcilable.

Ine Hundred Billion Pesos (PhP 100,000,000,000) is

hereby appropriated for the proper furjctioning of the Bureau, the Council, and other bodies

established under this Act of which hé
mineral exploration activities of the Bi

Section 166. Implementing Rules a
regulations of this Act shall be promul
collaborative efforts to draft and finali
government units, people's organizati
organizations and non-governmental
consultations at all levels nationwide.

Section 167. Effectivity Clause. Thi:

if of the said amount shall be allotted for the baseline
reau,

\d Regulations. The implementing rules and
fated by the Department and the MGB after

e the same with representatives from the local

ns, indigenous peoples organizations, sectoral
ganizations in exhaustive and appropriate public

Act shall take effect within fifteen (15) days following

its publication in two national newspapers of general circulation in the Philippines

Approved,

48