SEVENTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES
First Regular Session
S EN A TE
>.B. No. 1191
-- 
-.- .A 
.
■16 
OCT- 6  
P i : 3 2
KI (
,fY:
Introduced by Senator Poe
AN ACT
TO REGULATE THE RATIONAL EXPLORATION, DEVELOPMENT AND 
UTILIZATION OF MINERAL RESOURCES, AND TO ENSURE THE EQUITABLE 
SHARING OF BENEFITS FOR THE STATE, INDIGENOUS PEOPLES AND 
LOCAL COMMUNITIES, AND FOR OTHER PURPOSES
Explanatory Note
It is our vision to make economic growth not only inclusive but also sustainable for 
all Filipinos through the judicious disposition, utilization, management, conservation, and 
rehabilitation of the country’s natural resources. Through rational and respectful development 
practices, we can ensure that the country’s precious resources will not only contribute to
poverty alleviation but will remain to be equitably accessible to the present and future 
generations.
The Philippines is a highly mineralized country, with approximately 14 million 
hectares of land known to be potential sites for metallic and non-metallic mineral reserves.
As promising a venture as it may seem to be, the country’s mining industry remains beset 
with challenges.
The Philippine mining industry remains underutilized, as shown by low GDP 
contribution at only 0.7Vo in the first quarter of 2015. The government revenue share is only 
at around PhP2 billion a year in revenues, or less than 1% of the country’s Gross Domestic 
Product. The flawed provisions of Republic Act No. 7492, otherwise known as “the 
Philippine Mining Act of 1995,” are said to be the culprit behind these limited investments 
and flawed mining policies, thus further stunting the local economy.
There are also other issues that have historically plagued the country’s mining 
industry. Among these are the reported cases of militarization and human rights violations as 
well as nature-induced disasters in large-scale mining operations. Today’s mining issues are 
intricately connected to the issue of development aggression, where businesses and their 
operations are being guaranteed protection by State actors, with mining companies forming 
no exception. On this matter, the prior administration directed the creation of special Civilian 
Armed Forces Geographical Units (CAFGUs) specifically to protect mining concerns in the


name of anti-insurgency. This has affected even surrounding Lumad communities in utter 
disregard of their fundamental rights to autonomy and utilization of their ancestral domains, 
at times resulting in violence and killings. Indigenous communities and villages are caught in 
the crossfire.
If properly regulated and managed, the Philippine mining industry can be a promising 
sector for inclusive growth and true human development, particularly if our laws will breathe 
life and meaning to the right of communities and indigenous peoples to development and to 
participate in the development process. The bill thus seeks to provide the framework for the 
utilization and management of the country's mineral resources, which will address the needs 
of the domestic economy and uphold the rights of various stakeholders -  from industry 
workers to indigenous peoples and local communities. It also seeks to increase the 
government share to ten percent (10%) from the gross revenues it earns from the 
development and utilization of mineral resources, which shall be set aside for the general 
fund of the government.
It is high time to reorient Philippine mining policy towards national interest, 
environmental protection, and social justice. Fair, just, and sustainable management of our 
national resources can be achieved through the establishment of a rational minerals 
management regime.
In view of the foregoing, speedy approval of this bill is eagerly sought.


SEVENTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES
First Regular Session
SEN  A.T
S.B. No.Yf91
of fV-fij't-rrri.ir
16 
OCT - 6  
p  I :32
KIN
* V;
Introduced by Senator Poe
AN ACT
TO REGULATE THE RATIONAL EXPLORATION, DEVELOPMENT AND 
UTILIZATION OF MINERAL RESOURCES, AND TO ENSURE THE EQUITABLE 
SHARING OF BENEFITS FOR THE STATE, INDIGENOUS PEOPLES AND 
LOCAL COMMUNITIES, AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Republic of the 
Philippines in Congress assembled:
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CHAPTER 1. DECLARATION OF POLICIES
SECTION 1. Short Title. - This Act shall be known as the "Philippine Mineral 
Resources Aet of 2016".
SECTION 2. Declaration of Policy. - It is hereby declared the policy of the State to;
a) Maintain peace and order, protect life, liberty and property and promote the general 
welfare;
b) Advance the medium- and long-term needs of the Philippines;
e) Encourage the advancement of the industry's technology with emphasis on existing 
indigenous knowledge, research and development;
d) Protect and advance the right of the people to a balanced and healthful ecology in 
accord with the rhythm and harmony of nature;


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e) Value the dignity of every human person and guarantees full respect for human 
rights;
f) Promote social justice in all phases of national development;
g) Recognize and promote the rights of indigenous cultural communities within the 
framework of national unity and development and protect the right to self- 
determination of the indigenous and Moro peoples;
h) Protect and promote the right to health of the people and instill health 
consciousness among them;
i) Pursue an independent foreign policy. In its relations with other states, the 
paramount consideration shall be national sovereignty, territorial integrity, national 
interest, and the right to self-determination;
j) Develop a self-reliant and independent national economy effectively controlled by 
Filipinos;
k) Ensure the autonomy of local governments;
l) Give highest priority to the enactment of measures that protect and enhance the 
right of all the people to human dignity, reduce soeial, economic, and political 
inequalities, and remove cultural inequities by equitably diffusing wealth and political 
power for the common good;
m) 
Encourage non-governmental, community-based, or sectoral 
promote the welfare of the nation; and
organizations that
n) 
Adopt and accept the generally accepted principles as embodied in the 
International Covenant on Civil and Political Rights, International Covenant on 
Eeonomic, Social, Cultural Rights, UN Declaration on the Rights of Indigenous 
Peoples, UN Convention on Biodiversity and other international accords on human


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rights, labor rights, the rights of women and children, and the protection and 
preservation of the environment, of which the State is a party.
SECTION 3. Mining is vital to nation building and the economic advancement of our 
people. The mineral industry plays an essential role in establishing a progressive, 
independent, and self-reliant economy.
The State shall formulate a National Industrialization Program pursuant to the 
principles of agricultural modernization, development of industrial and manufacturing 
industries, and rational, sustainable, and equitable development of the national economy. 
Pursuant to the foregoing, the State shall implement a Mineral Management Plan that 
provides the framework for the utilization and management of the country's mineral 
resources, which will address the needs of the domestic economy and upholds the rights of 
industry workers, indigenous peoples and local communities.
SECTION 4. 
The judicious stewardship of our mineral resources, as well as its 
exploration, development and utilization shall comply with the following principles:
a) 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;
b) The mining industry shall be geared towards national industrialization and shall be 
built for the production of raw materials such as base metals, basic chemicals and 
petrochemicals needed by the basic, medium and heavy industries to produce as much 
consumer, intermediate, and capital goods with the country's stock of finite mineral 
and non-mineral industrial raw materials and in the process provide jobs to the 
country's vast human resources;
c) The community shall actively participate in the stewardship of mineral resources. 
Community-based initiatives shall be encouraged and supported;
d) The State and its members shall develop its human resources and encourage the 
evolution of its own appropriate technologies. The State shall provide the appropriate
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support and protection to Filipino corporations to further develop and increase their 
participation in the industry. All mining industry investments shall be mutually- 
beneficial and help achieve the specific target and goals of the National 
Industrialization Program. To come up with the large capital requirement for mining, 
the State must use local sources such as but not limited to the granting of incentives 
and financial aid to local private sector investors, re-channelling of government 
budget allocations for foreign debt payments and military expenditures, and the 
proceeds from the government shares of the Malampaya Natural Gas Project;
e) The State shall allow, in exceptional cases, foreign corporations to invest in the 
mineral industry. Based on the National Industrialization Program and the country's 
capability and capacity, the government must identify the mineral areas where 
foreigners can help and invest subject to rigorous screening and strict regulations as 
provided in this Act and related laws. The participation of foreign companies in the 
critical stages of minerals extraction and processing shall be in accordance with a 
mandatory program or agreement for technology transfer and equity shares that do not 
exceed 40 percent of the full capital requirements; Provided, that capital accumulation 
and reinvestment within the country shall be primarily encouraged over profit 
repatriation by the foreign companies and that foreign mining corporations, their 
principals, local firms and conduits that have a bad track record in the Philippines are 
banned from investing in the country;
f) In land and water use, the production of sufficient food free from pollution towards 
food security shall always be the priority;
g) Long-term mining development shall be programmed by the State in accordance 
with the country's availability of resources, capability and well being of the people, 
technological capacity and people's acceptability. The right of Muslim Filipinos and 
indigenous peoples to self-determination and ancestral domain shall be recognized 
and their collective property rights are guaranteed by this Act;
h) Job security, adequate wages, benefits, and safe working conditions for mine 
workers shall be ensured in state and privately owned mining corporations. Their right 
to organize and form their own associations, to collective bargaining and to strike
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shall be upheld. The state will strictly prohibit forced and child labor in the industry;
i) Small-scale mining operations shall be supported and regulated by the State. The 
State will encourage the formation of cooperatives among small-scale miners and 
provide financial and technical support to develop the labor-intensive and upgrade the 
backward technologies into a more efficient and less environmentally destructive 
mining process. Whenever small-scale mining are stopped, alternative and sustainable 
livelihood shall be provided to the small-scale miners.
j) Mining operations shall not in any way create or exacerbate conflicts. In no instance 
shall the Armed Forces of the Philippines (AFP), the Philippine National Police 
(PNP) and private security and paramilitary groups be used to coerce or force the 
entry and protection of mining operations;
k) Mining industry research and development shall focus on harnessing more 
economically-efficient and less environmentally-destructive methods. The advanced 
technologies from other countries that are proven to be appropriate locally shall be 
adopted in the industry;
l) All mining operations shall be strictly regulated to ensure the domestic processing 
of mineral ores up to the secondary and tertiary stages of industrial production to 
develop our own basic and medium industries. Recycling programs and substitution in 
the use of minerals shall be incorporated in the overall plan of mining development to 
reduce mine waste and pollution, and mining rehabilitation techniques. Indigenous 
technologies that are relevant and appropriate, particularly with respect to the 
domestic processing of minerals shall be promoted, harnessed, expanded and 
upgraded;
m) The State and its members shall share in the burden of satisfying the need for 
mineral resources primarily through reusing and recycling existing mineral products. 
Ecologically-sound practices at all stages of mining shall be promoted. Mining 
technologies such as open-pit mining and submarine mine tailing disposal methods 
that are banned abroad or proven inappropriate in countries like the Philippines must 
all be banned. Environmental standards shall be set to ensure the protection and
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efficient utilization of the country's mineral resource base. Ecological considerations 
in mining development shall be given due emphasis and attention to substantially 
eliminate destructive effects that certain mining industrial processes might have on 
the people's health and the environment. Monitoring mechanisms with strong 
participation from the local communities will be instituted;
n) Mining in environmentally-critical areas such as small island ecosystems, primary 
forests and watersheds shall be banned. Dumping of mine wastes and tailings to 
rivers, lakes and seas are prohibited. The integrity of the environment shall not be 
compromised; and
o) 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.
SECTION 5. The exploration, development and utilization of natural resources must 
comply with the principles of intergenerational responsibility.
CHAPTER II. SCOPE AND GENERAL PRINCIPLES
SECTION 6. Scope. - This Act shall govern the ownership, management and 
governance of both metallic and non-metallic ore minerals onshore and offshore, as well as 
quarry resources, sand and gravel, guano, and gemstones and the conservation, exploration, 
development, utilization, processing and transportation thereof. The ownership, management 
and governance of petroleum, natural gas and coal shall be governed by special laws. 
Offshore mining shall also be governed by special laws.
This Act shall cover onshore and offshore, large-scale and small-scale mining 
operations in the country, including mining projects in ancestral domains in accordance to the 
existing national and international policies on our indigenous peoples.
SECTION 7. Ore minerals form part of the country's irreplaceable and non­
renewable natural wealth and capital. The conservation of our mineral wealth is a paramount 
public interest and mineral resources shall be utilized only in a rational manner for national
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and local development as specified by law and the National Industrialization Program and the 
Mineral Management Plan. The economic benefits derived from mining shall be equitably 
distributed by, among others, prioritizing development for local communities and all other 
stakeholders directly affected by mining operations.
SECTION 8. The State shall have primary role, responsibility, and concern in the 
management, conservation, utilization, and development of the mining industry and shall 
ensure the peoples participation in policy making and implementation of the same at all levels 
of government. The management of mineral resources shall be a shared concern and 
responsibility among the national government, corporations, all levels of local government, 
and the communities affected by the exploration, development, and utilization of mineral 
resources.
SECTION 9. The State shall accord support to communities dependent on small- 
scale mining whose operations shall strictly adhere to the provisions of this law.
SECTION 10. Subject to their right to self-determination, Indigenous Cultural 
Communities/Indigenous Peoples (ICCs/IPs) own and have the responsibility to manage the 
mineral resources in their respective ancestral domains, free from external manipulation, 
interference, force threat, intimidation, coercion and other analogous acts. The State shall 
support indigenous cultural communities in developing capacities to effectively exercise their 
right and responsibility.
SECTION 11. Mining shall be limited in scale in accordance with this Act.
SECTION 12. Mineral resources development, utilization and processing shall be 
reserved for Filipino citizens and for Filipino corporations. Exploration shall be undertaken 
directly by the State for the benefit of the nation.
SECTION 13. Remining and recycling of mineral resources shall be prioritized over 
the opening of new mines to maximize and recover the remaining minerals resources from 
the rejects or wastes of previous mines and mining operations.


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SECTION 14. The State shall prioritize the rehabilitation of the abandoned mines in 
the country. 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 or each mining project/activity in the country as provided by law.
SECTION 15. The State shall encourage and support Filipino private corporations 
and mining cooperatives to participate and invest in the mining industry on mutually- 
beneficial grounds that will push forward the National Industrialization Program in both 
small-scale and large-scale projects.
SECTION 16. Mineral resource extraction shall be allowed based on the Philippine 
Government's National Industrial Plan. The sharing of profits from mining activities, 
including the anticipated environmental and social costs on the affected local communities of 
each mining project, should far outweigh ecological and social benefits and costs from other 
land uses. The anticipated cost of environmental and social impacts on the affected local 
communities, which shall at all times be prevented and/or mitigated through the allocation of 
sufficient funds for this purpose. In mining projects with foreign participation, a just return of 
investment scheme for the foreign entrants into the industry shall be prescribed by law.
SECTION 17. The State shall prioritize the development of mineral resources needed 
for national development and the creation of domestic processing capacity for industrial 
metals, the integration of agricultural modernization and other labor-intensive downstream 
industries. Mine planning shall be conducted to meet this principle. The National Industrial 
Plan shall support national development based on the principles of sustainable development 
and modernization of its economic base. This framework will define minerals to be extracted, 
volume to be extracted, and when to be extracted. This shall be matched with the approved 
mining areas as identified by the Councils. These matched areas are eligible for mining 
operations.
CHAPTER III. DEFINITION OF TERMS
SECTION 18. Definition of terms. - As used in and for the purposes of this Act, the 
following terms, whether used in singular or in plural form, shall mean:


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a. "Abandonment” - the act of the contractor leaving a mine without rehabilitating the 
affected areas or completing such rehabilitation despite the legal obligation to do the 
same;
b. "Acid mine drainage ” - the dissolution, mobilization, and transportation of toxic 
metals from rocks resulting from the chemical reaction of the acid-generating 
minerals in rock and waste materials having high permeability to both air and rainfall 
and other water inflows when land is opened up for mining and initiates the chemical 
reaction, resulting to a perpetual machine of acid generation;
c. "Ancestral domains” - all areas generally belonging to Indigenous Cultural 
Communities/Indigenous Peoples (ICCs/IPs) comprising lands, inland waters, coastal 
areas, and natural resources therein, held under a claim of ownership, occupied or 
possessed by ICCs/IPs, by themselves or through their ancestors, communally or 
individually since time immemorial, continuously to the present except when 
interrupted by war, force majeure or displacement by force, deceit, stealth or as a 
consequence of government projects or any other voluntary dealings entered into by 
government and private individuals/corporations, and which are necessary to ensure 
their economic, social and cultural welfare. It shall include ancestral lands, forests, 
pasture, residential, agricultural, and other lands individually owned whether alienable 
and disposable or otherwise, hunting grounds, burial grounds, areas of worship, 
bodies of water, mineral and other natural resources, and lands which may no longer 
be exclusively occupied by ICCs/IPs but from which they traditionally and 
historically had access to for their subsistence and traditional activities, particularly 
the home ranges of ICCs/IPs who are still nomadic and/or shifting cultivators;
d. "Ancestral lands” - lands occupied, possessed and utilized by individuals, families 
and clans who are members of the ICCs/IPs by themselves or through their 
predecessors-in-interest, under claims of individual or traditional group ownership, 
continuously, to the present except when interrupted by war, force majeure or 
displacement by force, deceit, stealth, or as a consequence of government 
development aggression projects and other voluntary dealings entered into by 
government and private individuals/corporations including, but not limited to, 
residential lots, rice terraces or paddies, private forests, swidden farms and tree lots;
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e. “Beneficiation” - a process wherein a large fraction of the waste material is 
removed from the mineral ore;
f. '"'‘Buffer Zones” - identified areas outside the boundaries of and immediately 
adjacent to designated protected areas designated by law that need special 
development eontrol in order to avoid or minimize harm to the protected area;
g. “Bureau ” - the Mines and Geoscienees Bureau under the Department of 
Environment and Natural Resources;
h. “Carrying capacity" -  the capacity of natural and human environments to 
accommodate and absorb change without experiencing conditions of ecological 
instability and attendant degradation;
i. “Certificate of Ancestral Domains Title (CADT) ” -  title formally recognizing the 
rights of possession and ownership of ICCs/IPs over their ancestral domains identified 
and delineated in accordance with law;
j. “Certificate of Ancestral Lands Title (CALT)’ 
rights of ICCs/lPs over their ancestral lands;
a title formally reeognizing the
k. “Closure of mines" -  permanent cessation of operations at a mine or mine 
processing site after completion of the decommissioning process;
l. “Consensus" -  the decision communally reached after appropriate participatory 
consultation and discussion, free from any external manipulation, interference and 
coercion, and other analogous cases and obtained after fully diselosing the intent and 
scope, including the positive and negative impacts of the aetivity, in a language and 
process understandable to the eommunity or group;
m. “Consent ” -  the voluntary assent of the landowner or those who have been in 
open, continuous, exclusive and notorious possession of the land for more than ten 
(10) years in good faith, or thirty (30) years in bad faith, free from any external 
manipulation, interference and coercion, and obtained after fully disclosing the intent
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and scope, including the positive and negative impacts of the activity, in a language 
and process understandable to the said landowner or occupant;
n. “Contract area" -  the area delineated as specifically provided by a mineral 
agreement for the development or utilization of mineral resources found therein;
o. “Critical watershed” -  a drainage area of a river system, lake or water reservoir 
supporting existing and proposed hydroelectric power, domestic water supply, 
geothermal power and irrigation-works, which needs immediate rehabilitation and 
protection to minimize soil erosion, improve water yield and prevent possible 
flooding. The term shall also include areas which are traditional human settlements, 
land-uses or sea-uses which are representative of a eulture/cultures, or human 
interaction with the environment especially when it has become vulnerable under the 
impact of irreversible change;
p. “Critical habitats" - place or environment where species or subspecies naturally 
occur or has naturally established its population that are crucial to the survival of a 
species and essential for its conservation;
q. “Cultural sites” - those that bear a unique or at least exceptional testimony to a 
cultural tradition or to a civilization which is living or which has disappeared or, 
directly or tangibly associated with events or living traditions, with ideas, or with 
beliefs, with artistic and literary works of outstanding universal significance;
r. Customary laws” - body of written and/or unwritten rules, usages, customs and 
practices traditionally recognized, accepted and observed by respective ICCs/lPs and 
local communities;
s. “Decommissioning” - the activity or process that begins after eessation of 
prospecting activities or mineral production (including metallurgical plant 
production). It involves, among others, the removal of unwanted infrastructure, 
making excavations and waste repositories safe and stable and surface rehabilitation 
with a view to negate or minimize any adverse environmental impacts remaining after
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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 or eco-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 the methods of searching or prospecting for mineral 
resources by non-invasive means for the purpose of determining the existence, extent, 
quantity and quality thereof, which may include but not limited to seismic, gravity, 
magnetic, electromagnetic, radar, induced polarization, radio-wave and electro 
geochemical;
w. “Extraction ” - ore-removal activities that take place at the mine site itself;
X. “Free, prior and informed consent (EPIC) ” - the consensus of all members of the 
ICCs/IPs to be determined in accordance with their respective customary laws and 
practices, free from any external manipulation, interference, coercion, and other 
analogous acts and obtained after fully disclosing the intent and scope, including the 
positive and negative impacts, of all the activities, in a language and process 
understandable and aceeptable to the community;
y. “Indigenous Peoples/lndigenous Cultural Communities (IP/ICC)” -  a group of 
people or homogenous societies identified by self-ascription and ascription by others, 
who have continuously lived as organized community on communally bounded and 
defined territory, and who have, under claims of ownership since time immemorial, 
occupied, possessed and utilized such territories, sharing common bonds of language, 
customs, traditions and other distinctive cultural traits, or who have, through 
resistance to political, social and cultural inroads of colonization, non-indigenous 
religions and cultures, became historically differentiated from the majority of
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Filipinos. ICCs/lPs shall likewise include peoples who are regarded as indigenous on 
account of their descent from the populations which inhabited the country, at the time 
of conquest or colonization, or at the time of inroads of non-indigenous religions and 
cultures, or the establishment of present state boundaries, who retain some or all of 
their own social, economic, cultural and political institutions, but who may have been 
displaced from their traditional domains or who may have resettled outside their 
ancestral domains. They are people who have a spiritual relationship with the land;
z. “Indigenous political structure ” - organizational and cultural leadership systems, 
institutions, relationships, patterns and processes for decision-making and 
participation, identified by ICCs/IPs such as, but not limited to. Council of Elders, 
Council of Timuays, Bodong Holders, and any other tribunal or body of similar 
nature;
aa. “Joint venture agreement” - an agreement wherein the government and a qualified 
person organize a joint-venture company, with both parties having equity shares, to 
develop and manage mineral resources. Aside from earnings on the equity, the 
Government shall be entitled to a share in the output computed at a certain percentage 
mutually agreed upon by and beneficial to both parties;
bb. 
Key biodiversity areas” - are sites of global biodiversity conservation 
significance. They are defined by standardized criteria and thresholds to guide 
conservation interventions such as the establishment of protected areas;
cc. “Large-scale mining” - mining in areas with more than twenty (20) hectares, 
using mechanized tools and equipment, requiring considerable capital and having 
large-scale environmental, social, cultural and economic impacts with regard to 
resource use and/or consumption;
dd. “Mineral agreemenK - a contract entered into by the government, on behalf of 
the State, and a private Filipino person, granting such person/s the privilege to mine a 
specific contract area;
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ee. “Mineral resource ” - any concentration of minerals/rocks with potential economic 
value;
ff. “Mineral processing” - the milling, beneficiation or upgrading of ores or minerals 
and rocks or by similar means to convert the same into marketable products;
gg. “Minerals ” - all naturally occurring inorganic substance In solid, gas, liquid, 
or any intermediate state excluding energy materials such as coal, petroleum, natural 
gas, radioactive materials, and geothermal energy;
hh. “Mine development” - preparing the mine site for production by shaft sinking or 
pit excavation building of access roads, and construction of surface facilities;
ii. “Mine wastes and tailings ” - rock materials from surface or underground mining 
and milling operations with little or no economic value to the generator of the 
same;
jj. 
“Mining activity” - any or all of the following activities' exploration, 
extraction, utilization, processing, transportation and other activities conducted for 
the same;
kk. “Mining area ” - a portion of the contract area which has been identified by the 
contractor wherein actual mining operations are conducted;
II. “Mining operations” - either all or any of the mining activities involving 
exploration, feasibility, development, utilization, and processing;
mm. “National industrialization” - in the mining industry, this shall denote the 
primacy of mineral production, processing, and distribution for the primary 
benefit of the domestic economy. This includes creating favorable conditions for 
Filipino entrepreneurs to engage in mining through various state-private agreements 
that shall ensure that mining shall help spur more domestic investments, increase 
agricultural production and produce both consumer and producer goods and 
manufactures;
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nn. "National park" - an area of the public domain essentially natural 
wilderness, scenic, or historic in character which has been withdrawn from settlement, 
occupancy, or any form of exploitation except in conformity with an approved 
management plan and set aside exclusively to conserve the area or preserve the 
scenery, the natural and historic objects, wild animals, and plants therein mainly for 
the purpose of biodiversity conservation or 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 and are thus indisputably presumed to have been held 
that way since before the Spanish Conquest;
pp. "Natural forest" - forests composed of indigenous trees, not planted by man, 
whose structure, functions, and dynamics have been largely the result of natural 
succession processes;
qq. "Natural parks" - is a relatively large area not materially altered by human 
activity where extractive 
resource 
uses 
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not allowed. 
These parks are 
maintained to protect outstanding natural and scenic areas of national or international 
significance for scientific, educational and recreational use;
rr. "Open-pit mining" - extracting metal ores and minerals that lie near the surface by 
removing the overlying material and breaking and loading the ore. Also known as 
open-cast mining and open-cut mining;
ss. “Ore ” - a material that eontains minerals in such quantities that it can be mined 
and worked commercially to extract that mineral. The mineral is usually contained in 
chemical combination with some other element in addition to various impurities;
tt. '’‘'Pollution control and infrastructure devices” - infrastructure, machinery, 
equipment or improvements used for impounding, treating, or 
neutralizing, 
precipitating, filtering, eonveying and cleansing mine industrial waste and tailings 
as well as eliminating or redueing hazardous effects of solid particles, chemicals, 
liquids or other harmful by-products and gases emitted from any facility utilized in
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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 night thereto under the law, although the 
corresponding certificate or evidence of title or patent has not been actually issued;
vv. “Processing” - includes all treatment an ore receives after its extraction and 
beneficiation, which involves changes in the chemical nature of the mined minerals;
ww. “Progressive rehabilitation” - rehabilitation which involves the staged treatment 
of disturbed areas during exploration, construction/development and mining 
operations;
XX. “Protected areas ” - identified portions of land and water set aside by reason of 
their unique physical and biological significance, managed to enhance 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 people 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 Geoseiences may declare to be quarry resources such as, 
but not limited to, andesite, basalt, conglomerate, coral sand, diatomaceous earth, 
diorite, decorative stones, gabbro, granite, limestone, marble, marl, red burning 
clay for potteries and bricks, rhyolite, rock phosphate, sandstone, serpentine, shale, 
tuff, volcanic cinders, and volcanic glass. Provided, That such quarry resources do 
not contain metals or metallic constituents and/or other valuable minerals in 
economically workable quantities; Provided further. That non-metallic minerals such 
as kaolin, feldspar, bull quartz, quartz or silica, sand and pebbles, bentonite, talc, 
asbestos, barite, gypsum, bauxite, magnesite, dolomite, mica, precious and semi-
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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;
aaa. “Quarrying” - process of extracting, removing and disposing quarry resources 
found on or underneath the surface of private or public land;
bbb. “Regional Director ” - the regional director of any mines regional office;
ccc. “Regional Office " - any of the mines regional offices;
ddd. “Recycling” - the treating of used or waste materials through a process of 
making them suitable for beneficial use and for other purposes, and includes any 
process by which solid waste materials are transformed into new products in such a 
manner that the original products may lose their identity, and which may be used as 
raw materials for the production of other goods or services: Provided, That the 
collection, segregation and re-use of previously used packaging material shall be 
deemed recycling under the Act;
eee. “Rehabilitation ” - the process by which the land will be returned to a form and 
productivity in conformity with a prior land use plan including a stable 
ecological 
state that does not contribute substantially to environmental deterioration and 
is consistent with surrounding aesthetic values;
fff. “Remediation ” - removal of pollution or contaminants from environmental media 
for the general protection of the area and the people;
ggg. “Remining” - maximizing and recovering the remaining minerals from the 
rejects or wastes of previous mines and mining operations;
hhh. Restoration ” - where the intent is to recreate an ecosystem as close as possible 
to the original which existed at the site, with most of the structure and 
productivity matching that of the original ecosystem, and most of the original 
biodiversity: in time ecological processes and functions will match those of the
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original forest;
iii. "Self-determination ” - the right of a people to determine its own political destiny 
as defined by existing Philippine laws. The right to self- determination includes the 
right of ICCs/lPs to choose their form of government within existing national 
borders to achieve a greater degree of autonomy to help preserve their culture, 
ancestral domain, and way of life;
jjj. 
"Small-scale mining" - mining activities which rely heavily on manual labor 
using simple implements and methods and do not use explosives or any heavy mining 
equipment, primarily engaged in for sustainable living. Impacts from small-scale 
mining shall not be large-scale, otherwise, the mining activity shall be defined as 
large-scale mining;
kkk. "Small-scale mining permit" - permit issued for small-scale mining;
111. "Strategic minerals" - minerals needed for national industrialization, including 
rural development;
mmm. "Tailings Disposal System or Tailings Placement" - the method wherein the 
waste from mining operations are dumped, placed, or disposed;
nnn. "Traditional small-scale mining" - small-scale mining using traditional means 
and without the use of chemical or mechanized extraction and separation means, 
methods, implements, or equipment;
000. "Watershed continuum" - an area consisting of the watershed and its divide 
including its connection from the headwaters to the reef or a land area drained by a 
stream or a fixed body of water and with tributaries having a common outlet for 
surface runoff. It is the system by which the mining-affected communities shall be 
determined following the drainage of a stream or fixed body of water with 
tributaries having a common outlet for surface runoff;
ppp. "Wildlife " - undomesticated forms and varieties of flora and fauna.
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CHAPTER IV. OWNERSHIP AND GOVERNANCE
SECTION 19. Authority of the Bureau. - The Mines and Geosciences Bureau shall be 
a scientific research institution under the Department of Environment and Natural Resources 
(DENR) primarily conducting and developing research of mineral resources and 
mining technologies and training of local communities, local government units and 
indigenous peoples. It shall also regulate the operations of persons involved in mining 
activities. It shall also work with the Multi-Sectoral Mineral Council in the monitoring of 
mining activities.
SECTION 20. Regional offices. - The Bureau shall have as many regional offices in 
the country as may be established by the Secretary, upon the recommendation of the Director.
SECTION 21. Bureau as repository of information. - The Bureau shall be the central 
repository of information regarding mineral lands, resources, permits, studies and other 
information relevant to the operation of a mine, including the necessary requirements which a 
contractor is obliged to submit. All other governmental offices and other bodies created 
under this Act shall copy furnish the Bureau of all other information related to mining.
SECTION 22. Recording system. - There shall be established a national and regional 
filing and recording system. A mineral resource database system shall be set up in the Bureau 
which shall include, among others, a mineral rights management system.
SECTION 23. Publication. - The Bureau shall publish at least annually a mineral 
gazette of nationwide circulation containing among others, a current list of mineral rights, 
their locations specified in the appropriate map, mining rules and regulations, other official 
acts affecting mining, and other information relevant to mineral resources development. A 
system of publication fund shall be included in the regular budget of the Bureau.
SECTION 24. Bureau to conduct exploration activities. - Exploration of mineral 
resources shall be exclusively and directly undertaken by the State through the Bureau. In no 
case shall this function be delegated or contracted out to private corporations or persons.
SECTION 25. Non-invasive exploration. - Exploration activities shall only be non-
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invasive such as seismic, gravity, magnetic, electromagnetic, radar, induced polarization, 
radio-wave and electro-geochemical.
SECTION 26. Consent. - The Bureau shall not enter into any private lands for the 
purposes of exploration activities without the written consent of the land owner, possessor or 
occupant; or the FPIC of the ICC/IP and payment of just compensation for the use of 
property. Neither shall the Bureau enter into any part of the ancestral domains/lands of 
ICCs/IPs without their free and prior informed consent. Further, the Bureau shall not enter 
into any distributed land under the Comprehensive Agrarian Reform Program within the ten 
(10) years prohibited period of the said program.
SECTION 27. Ownership of ICCs/IPs. - The mineral resources within ancestral 
domains/ancestral lands are the collective private property of the ICCs/IPs as provided 
by 
law. 
The management of such mineral resources shall build on the indigenous 
knowledge, systems and practices of the ICCs/IPs.
SECTION 28. Free, prior and informed consent. - No mining activity shall be 
conducted within the ancestral domains/lands of ICCs/IPs without their free, prior and 
informed consent (FPIC), in addition to the conditions set for under the succeeding sections 
of this Act.
SECTION 29. When ancestral domain is not formally recognized. - When ancestral 
domain is not covered by a Certificate of Ancestral Domain Title/Certificate of Ancestral 
Land Title (CADT/CALT), or is covered by a different title issued in favor of members of 
the ICCs/IPs, mineral resources shall nevertheless be managed by the ICCs/IPs concerned 
when it can be presumed that the area is part of ancestral domain An area is presumed to be 
part of ancestral domain by virtue of historic rights and self- delineation by the ICCs/IPs.
SECTION 30. When ICCs/IPs displaced from ancestral domain, and when ancestral 
domain is already covered by other titles emanating from the state other than CADT/CALT. - 
Native title over ancestral domain subsists notwithstanding the fact that the ICCs/IPs 
who hold such native 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.
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SECTION 31. 
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, mining 
operations shall not be allowed to be conducted in the ancestral domains or lands of the 
ICCs/lPs without the final resolution of such question on the legality or validity of the FPIC.
SECTION 32. 
Ownership of the State. - The mineral resources found outside 
ancestral domains/lands shall be owned by the State. The State 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 solely used for 
local industries consistent with the Minerals Management Plan. The State may directly 
undertake development, utilization, and processing of mineral resources or it may enter into 
mineral agreements with eligible parties pursuant to the provisions of this Act.
SECTION 33. Inventory of mineral resources. - The Bureau shall identify and 
provide an inventory of the available mineral resources, including the mine tailings and 
wastes 
within the country. It shall submit to the DENR a report which shall contain the 
following information:
a) the classification of minerals;
b) the quality and grade of the ore;
c) the potential mine life;
d) the geological description of the area;
e) the economie viability of mine tailings;
f) whether the area is a key biodiversity area or if it is a critical habitat;
g) and 
all 
other 
relevant 
information 
necessary 
for 
potential 
mineral 
investments.
The process for mineral exploration or approval for a mining permit shall not 
commence without the said inventory.
SECTION 34. Identification of strategic minerals. - The Bureau shall conduct 
researches and studies prior to any mining operations to identify strategic mineral resources. 
Only mineral 
resources 
that 
shall 
be 
needed for local 
industries, agricultural 
modernization, and rural development shall be opened to mining subject to the
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implementing rules and regulations of this Act.
SECTION 35. Demarcation of mineral areas. - The Bureau shall demarcate the 
boundaries of all areas identified as containing commercial quantities of mineral resources on 
the ground.
SECTION 36. 
Baseline information on watershed continuums. - The baseline 
information on all watersheds in the country shall be required and made available to the 
public, online as much as possible. No mining permit shall be issued without this baseline 
information.
SECTION 37. Affected local community and local government unit. - For the 
purposes of this Act, the affected local community and the affected local government 
unit are defined in relation to the watershed continuum which is potentially negatively 
impacted by mining operation in the demarcated area. The local communities and the local 
government units therefore are those who are dependent on the watershed eco-system and its 
resources.
SECTION 38. Establishment of 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 are there are watershed continuums with demarcated 
mineral areas.
SECTION 39. Powers of the Council. - The Council shall have the following powers, 
among others:
a) To determine whether or not mining operations shall be allowed;
b) To deliberate on proposals for mineral agreements;
c) To approve the proposal for mineral agreements;
d) To monitor the conduct of mining operations; and
e) To establish its internal rules of procedure which are not contradictory to this Act.
SECTION 40. 
Composition of the Multi-Sectoral Mineral Council. - The Multi 
Sectoral Mineral Council shall be composed of representatives from the Bureau, one
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representative from eaeh of the affected provincial governments/independent component 
cities/highly urbanized cities, representatives from peoples/community/sectoral/non- 
govemmental organizations representatives of local government units, and the affected as 
many as the ICCs/IPs within the watershed continuum. The Bureau shall be the convenor of 
the Council.
No mining operations shall be allowed without the Council having been properly 
convened.
SECTION 41. Areas open to mining. - The Council shall have the power to determine 
whether or not the land where mineral resources are found shall be opened to mining. Areas 
may only be opened to mining upon the unanimous 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 be required:
a) Report of the Bureau on the conducted exploration;
b) Existence of downstream industries for the mineral resources;
c) Potential environmental impacts;
d) Potential cultural impacts;
e) Conflict and risk assessment;
f) Potential health impacts;
g) Potential economic benefits of the development and utilization of the minerals;
h) Carrying capacity and the ecological profile of the area;
i) Existing and alternative land uses of the area; and
j) Local government land use plan.
No mining application shall be allowed unless an environmental economic audit or 
resource valuation of the proposed mining area has been conducted or prepared 
applying acceptable valuation standards. This audit or resource valuation shall be 
conducted in coordination with multi-sectoral group of experts and community stakeholders. 
It shall include determination of the expected economic returns and the potential 
negative impacts from mining on the enjoyment and exercise of human rights, cultural 
rights, and on peace and security. A detailed study must mention the flora, fauna and 
environment present in the mining claim and the impact of mining operations on the
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environment, the possible environmental degradation and the 
attendant loss of
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subsistence resources cause. There must be mention of existence of sacred areas or areas
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otherwise of cultural significance and address the impacts of resource exploitation on
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indigenous peoples and local communities.
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This information shall be accessible to the public at all times; Provided, That in no
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case shall the Council open the following areas to mining:
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a) Areas declared by Local Government Units as No-Mining Zones as specified by
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local ordinances, and other issuances;
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b) Densely populated areas, especially residential areas;
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c) Head waters of watershed areas;
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d) Areas with potential for acid mine drainage;
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e) Critical watersheds;
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f) Critical habitats;
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g) Climate disaster-prone areas;
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h) Geohazard areas;
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i) Small island ecosystems;
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j) Cultural sites, which may include, but not limited to, sacred sites and burial
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grounds;
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k) Traditional swidden farms and hunting grounds;
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1) Lands covered by the Comprehensive Agrarian Reform Law or Republic Act No.
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6657, as amended;
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m) Prime agricultural lands, irrigable and irrigated lands as defined by Republic Act
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No. 9700;
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n) Cultural property enumerated under the National Cultural Heritage Act of 2009 or
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Republic Act No. 10066;
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o) Community sites;
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p) Key biodiversity areas;
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q) High conflict areas;
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r) The Province of Palawan pursuant to Republic Act No. 7611 and other areas
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covered by local ordinances;
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s) In military and other government reservations, except upon prior written clearance
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by the government agency concerned;
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t) Near or under public or private buildings, cemeteries, archaeological and historic 
sites, bridges, highways, waterways, railroads, reservoirs, dams or other 
infrastructure projects, public or private works including plantations or valuable 
crops, except upon written consent of the government agency or private entity 
concerned;
u) In areas expressly prohibited by law or ordinances;
v) In areas covered by small-scale miners as defined by law unless with prior consent 
of the small-scale miners, in which case a royalty payment upon the utilization of 
minerals shall be agreed upon by the parties, said royalty forming a trust fund for 
the socioeconomic development of the community concerned; and
w) Old growth, natural or primary forests, watershed forest reserves, wilderness 
area, mangrove forests, mossy forests, national parks, protection forests, 
provincial/municipal forests, parks, greenbelts, game refuge and bird sanctuaries 
and their respective buffer zones prohibited under the National Integrated 
Protected Area System (NIPAS) under Republic Act No. 7586, Department 
Administrative Order No. 25, series of 1992 and other laws and ordinances and 
those expressly prohibited by other laws.
The determination whether or not the same are absolutely closed to mining shall not 
only be limited to the existence of a law or ordinance declaring it as protected areas, 
but also to the actual use of said area.
SECTION 42. Manner of voting by the Council for opening an area to mining. - 
Sections 26 and 27 of the Local Government Code on consultation and consent shall be 
strictly adhered to. 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 41.
After the inventory of the existing minerals, the formulation of a mine plan, and the 
existence of the baseline information of the particular watershed area, the Bureau shall 
convene the Council.
The Council shall thereafter convene their respective constituents to determine 
whether or not their respective territories shall be opened for mining.
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Local government units, ICCs/lPs, NGOs and peoples organizations, shall ensure 
that the Bureau 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 
environmental or ecological balance, and the measures that will be undertaken to prevent 
or minimize the adverse effects 
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 
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provincial 
government/independent 
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cities/highly 
urbanized cities. 
The 
provincial/component city/highly urbanized city government representative shall sit in the 
Council and shall carry the result of the vote of all the affected loeal government units within 
the province resulting from the process provided in the preceding paragraph of this Section. 
There must be a unanimous vote among the local government units for the purpose of 
opening a particular area for mining. Failure to reach a unanimous vote for opening shall 
mean that the area is closed to mining. All the proceedings shall at all times be recorded; 
Provided, moreover. That in case there are affected ICCs/lPs within the watershed 
continuum, they shall also bring the community's vote to the Council after undergoing their 
own processes in accordance with their respective indigenous political structure, free from 
any external manipulation, interference, coercion and other analogous acts, and 
obtained after fully disclosing the intent and scope, including the positive and negative 
impacts of the activity, in a language and process understandable and acceptable to them; 
Provided, finally. That any member of the community may file a protest with the Council 
during this period of consultations and deliberations for the Council's consideration.
SECTION 43. Violation of Section 52. - Local government officials who are 
administratively found to violate the preceding section and Section 52 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 44. Pool of consultants. - There shall be a pool of independent consultants 
that may assist the local government units, local communities or ICCs/lPs with regard to the 
technical aspects of mining.
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SECTION 45. Publication, posting and radio announcement requirements. - The 
decision of the Council shall be published by the Bureau in the local newspaper in the local 
language, shall be announced on the local radio programs for not less than six (6) weeks and 
notices shall be distributed widely in communities. The notice containing relevant 
information shall likewise be posted in conspicuous places for the information of the general 
public and shall be announced during the local market day.
CHAPTER V. MINERAL AGREEMENTS
SECTION 46. Modes of mineral agreement. - A mineral agreement may only take the 
following forms as herein defined:
a) Mineral production sharing agreement - is an agreement where the 
Government grants to the contractor the exclusive right to conduct mining 
operations within a contract area and shares in the gross output. The contractor 
shall provide the financing, technology, management and personnel necessary 
for the implementation of this agreement;
b) Co-production agreement - is an agreement between the Government and the 
contractor wherein the Government shall 
provide 
inputs to the mining 
operations other than the mineral resource; and
c) Joint venture agreement - is an agreement where a joint-venture company is 
organized by the Government and the contractor with both parties having equity 
shares. Aside from earnings in equity, the Government shall be entitled to a 
share in the gross output.
In no case shall Financial or Technical Assistance Agreements, or any other similar 
agreements, contracts, or executive issuances granting license permission to explore, develop 
or utilize mineral resources be awarded to foreign entities or persons.
SECTION 47. Eligibility. - Only Filipino citizens or corporations sixty percent (60%) 
of whose equity is owned or controlled by such citizens shall be allowed to conduct 
development, utilization and processing of mineral resources within the country.
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SECTION 48. Identification of mining projects. - With the unanimous vote of the 
Council to open areas for mining operations, the Bureau shall prepare the necessary 
information sheets on the said area for potential investments. The Bureau shall call for 
proposals to develop the mining area based on the Mineral Management Plan.
SECTION 49. Pre-screening of mining proposals. - Mining proposals shall be pre­
screened by the Bureau according to the National Industrialization and Mineral Management 
Plan upon the submission of interested parties of the following:
a) demonstration of financial capability;
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 investors;
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mining project feasibility;
g) mining operation work plan;
h) proposed operation, mitigation and prevention methods and/or equipment;
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capacity to process minerals;
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intent to develop downstream industries;
k) intent to contribute to local community development; and
l) 
submission of the Environmental and Social Impact Assessment and Mitigation 
Plan.
The Council shall fix the minimum capitalization that any bidder must satisfy based 
on its determination of the expected economic returns and the potential negative impacts 
from mining, upon reference to an independent study proposing such minimum 
capitalization.
SECTION 50. Environmental and Social Impact Assessment and Mitigation Plan. - 
The contractor shall submit an Environmental and Social Impact Assessment and Mitigation 
Plan (ESIAMP) containing the means, methods, processes and schedule by which the 
contractor shall conduct its operations and mitigate negative environmental and social
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impacts. Social impact shall include possible impacts on the enjoyment and exercise of 
human rights, cultural rights.
The ESIAMP shall include plans relative to mining operations; the rehabilitation, 
regeneration and restoration of mineral areas; slope stabilization of mined out and tailings 
covered areas; aquaculture, watershed development and water conservation; the relocation 
and return of displaced population; and provisions for alternative livelihood and 
socioeconomic development.
The ESIAMP shall also contain a Social Development Plan which shall likewise 
contain the plans of the proponent for the development of the community through the 
establishment of infrastructures and programs that shall be sustainable even after the closure 
of the mine.
SECTION 51. Pre-qualification. - The Bureau shall thereafter identify the top three 
(3) proposals and shall recommend the same to the Council for deliberation.
SECTION 52. Deliberation of the proposals. - After the Bureau's transmittal of its 
recommendations to the Council together with all the submitted documents for the pre­
qualification, the Council shall initiate the deliberation process of the pre-qualified proposals.
Immediately thereafter. Sections 26 and 27 of the Local Government Code on 
consultation and consent shall be strictly adhered to. 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 43. 
Local government units, ICCs/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 effects 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/
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independent component cities/highly urbanized cities through the submission of the minutes 
of meeting declaring their decision with signatures from the constituent. The 
provincial/component city/highly urbanized city government representative shall sit in the 
Council and shall carry the result of the vote of all the affected local government units within 
the province/independent component city/highly urbanized city resulting from the process 
provided in the preceding paragraph of this Section.
In determining which proposal is acceptable to the people, a majority vote of the local 
government units within the province/independent component city/highly urbanized city shall 
be required.
The affected ICCs/IPs shall also deliberate on the proposals in accordance with their 
own systems and processes free from any external manipulation, interference, coercion and 
other analogous acts, and obtained after fully disclosing the intent and scope, including the 
positive and negative impacts of the activity, in a language and process understandable and 
acceptable to them.
After the respective processes are complied with, the Council shall then meet and 
decide which proposal, if any, is most acceptable and consistent with their own socio­
economic, environmental and cultural programs and shall notify the Bureau of the chosen 
proposal.
SECTION 53. Posting and publication requirement. - After notice, the Bureau shall 
notify the proponent of the accepted proposal and cause the publication and posting of the 
accepted proposal; 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 in Section 42. No mining operations shall be allowed 
to be conducted pending any action questioning the legality or validity of the proposal.
SECTION 54. Issuance of the permit. - After the six (6) weeks from the date of the 
posting and publication, if no contest is filed, the Bureau shall issue a permit in accordance 
with the decision of the Council on the winning proposal.
SECTION 55. Environmental and Social Impact Compliance Certificate (ESICC). -
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The mining proponent shall be issued an Environmental and Social Impact Compliance 
Certificate (ESICC) by the Bureau with the approval of the Council. Provided, no 
amendments and to the conditions of the Certificate shall be allowed, unless such proposed 
amendment shall work for the benefit of the communities, and in which case, the Council and 
the Bureau shall be notified of any amendments to the ESIAMP and that the former should 
give their consent to the same, after the proponent explaining in detail the reason for such 
amendment and the possible impacts and consequences of these amendments; Provided 
further. That any violation of the ESIAMP shall cause the cancellation of the Certificate.
SECTION 56. Maximum areas for mineral agreements. - The maximum area under 
mineral agreements that a person can hold at anyone 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 person shall be awarded in excess of the total contract area of 
seven hundred-fifty (750) hectares in any given watershed area. For the purposes of this Act, 
the prohibition on the maximum area shall also include corporations that shall have common 
directors or significant shareholders.
SECTION 57. Term of mineral agreement. - The term of the mineral agreement shall 
be equivalent to the mine life plus an additional five (5) years for the rehabilitation of the 
mining area. Provided, That in no case shall a Mineral Agreement have a term beyond fifteen 
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years. 
Provided 
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That 
the 
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rehabilitation/remediation of the mining area within the ten-year term.
In no case shall a Mineral Agreement be extended without just cause to be determined 
by the Council, Provided, That the extension shall not cause the term of the agreement to 
exceed the fifteen (15) year term mentioned in the preceding section. Provided further. That 
for the purposes of this Act, just cause shall mean acts or events resulting from war, force 
majeure or those beyond the control of the mining proponent not attributable to the same; 
Provided finally, That in no case shall mineral agreements be renewed after the expiration of 
the fifteen-year period.
SECTION 58. Prohibition on open-pit mining method and submarine tailings 
disposal. - Open-pit mining method for the extraction of mineral ores and the submarine 
tailings disposal method shall be prohibited.
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SECTION 59. Failure to initiate mining operations. - Failure to commence the 
development stage of the mining operations in accordance with the work program within two 
(2) years from the award of the mineral agreement shall cause the cancellation of the mineral 
agreement. The contractor thereafter forfeits the value of the improvements Made upon the 
land. The contractor and other corporations who are also run by the same directors and 
officers are thereafter banned from bidding to conduct mining operations for ten (10) years 
after failure to commence the development stage of the mining operations in accordance with 
the work program.
SECTION 60. Mandatory consultations in each mining phase. - Mandatory 
consultations with affected communities shall be undertaken in each phase of mining 
operation: exploration, extraction, processing, and mine closure to ensure that the peoples 
shall be informed of the proposed plans and methods that are proposed to be conducted.
SECTION 61. FPIC of ICCs/IPs on each stage of mining operation. - The free and 
prior informed consent of the ICCs/lPs shall be required at each and every stage of the 
mining operations. FPIC shall be secured in accordance with the laws, practices and 
processes of the concerned ICCs/IPs.
The violation of any of the conditions imposed by the ICCs/IPs on the contractor shall 
cause the eancellation of the mineral agreement. Included in this process is the explanation of 
the rights of ICCs/IPs of ownership and self-determination.
SECTION 62. Consent of private landowners. - No person shall be allowed entry 
into private lands without the written consent of the landowners, possessors or lawful 
occupants of the land and/or the FPIC of the ICCIIP.
SECTION 63. Expropriation. - Expropriation proceedings shall be filed with the 
regular courts to determine whether the taking of private property for mining purposes shall 
meet a publie purpose and to determine just eompensation.
SECTION 64. Multi-partite monitoring. - The Council shall form a multi-partite 
monitoring team to monitor compliance by the contractor of the terms and conditions of the 
mineral agreement. It may eonduct ocular inspections of the contract area at any time of the
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day and night. It shall also inspect all the books of contractors and refer the same to 
independent auditors. The Multi-partite monitoring team and/or the Bureau may confiscate 
surety, performance and guaranty bonds posted through an order to be promulgated by the 
Director.
The Council, the Director or the local government authorities may deputize, when 
necessary, any member or unit of the Philippine National Police, barangay, duly registered 
NGO or any qualified person to police any and all mining activities.
SECTION 65. Withdrawal from the mineral agreement. - The contractor may 
withdraw from the mineral agreement at any time for justifiable cause with one (1) month's 
notice to the Bureau, the Council and/or the ICCs/lPs, and other government agencies as may 
be provided by law. The Council, in cooperation with other concerned government agencies, 
shall issue a clearance for withdrawal upon certifying that the contractor has complied with 
all its legal obligations, including the appropriate measures for mine closure and 
rehabilitation. Funds and bonds which have been put up by the contractor in accordance with 
this Act shall be forfeited.
SECTION 66. Non-transferability of mineral agreements. - In no case shall mining 
rights under this Act be transferrable. The contractor shall also immediately notify the 
Council and the Bureau of any substantial change in the ownership and/or control of the 
corporation. Violation of this provision shall cause the cancellation of the agreement and 
forfeiture of assets and equipment of the contractor in favor of the State.
SECTION 67. Access to information. - All contractors for mineral permits and 
agreements shall provide information to affected indigenous peoples, local communities, and 
local governments. The following information, among others, shall be required:
a) full disclosure of methods and processes of mining;
b) full disclosure of environmental and social risks;
c) full disclosure of ownership structure; and
d) full disclosure of financial sources.
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All information and documents related to proposals, mineral agreements, permits and 
mining operations shall not be considered confidential. Refusal to grant access to this 
information shall be cause for the disqualification of prospective proponents or cancellation 
of mineral agreements and permits.
The Bureau, being the repository of all relevant information under this Act is 
mandated to grant access to the public of any information in its custody. Refusal or 
unnecessary delay by the officers of the Bureau to give information shall be punishable by a 
fine of fifty thousand pesos (Php 50,000.00) for every instance of refusal or unnecessary 
delay. Information requested by indigents or marginalized sectors shall be given to them for 
free.
CHAPTER VI. SMALL-SCALE MINING
SECTION 68. Applicability of RA 7076. - Small-scale mining shall continue to be 
governed by the provisions of Republic Act No. 7076 or the People's Small-Scale Mining Act 
of 1991, Provided, That the Provincial/City Mining Regulatory Board shall be composed of 
the Governor or City Mayor, as chairperson, as the case may be, a representative from the 
DENR as co-chairperson, one (1) small scale mining representative, one (1) big-scale mining 
representative, one representative from a nongovernment organization who shall come from 
an environmental group, one representative from a people's organization (PO) coming from 
the marginalized sector, and at least one (1) representative from the indigenous communities, 
whenever applicable, as members. The representatives from the private sector, 
nongovernment organization and indigenous communities shall be selected by their 
respective organizations and/or communities, and appointed by the PMRB or CMRB; 
Provided further, That the conduct of small-scale mining shall also comply with the 
prohibitions and regulations established herein for large-scale mining. Only qualified 
individuals and cooperatives may apply for a small-scale mining permit.
SECTION 69. Maximum term of small-scale mining permits. - The term for small- 
scale mining permits shall be three (3) years, extendable to a maximum of fifteen (15) years.
SECTION 70. Traditional small-scale mining within ancestral domains. - The 
Council shall conduct regular monitoring activities within its jurisdiction to determine if the
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provisions of relevant laws are complied with in traditional small-scale mining by ICCs/lPs 
within their respective ancestral domains.
SECTION 71. FPIC in small-scale mining. - Small-scale mining activities within any 
ancestral domain by any person shall also require the free, prior informed consent of 
ICCs/IPs.
SECTION 72. Requirement for an Environmental and Social Impact Compliance 
Certificate (ESICC). - Small-scale mining shall likewise require an ESICC. All small scale 
mining applicants or proponents must show proof of compliance with the terms and 
conditions of its ESICC prior to the issuance of a small scale mining permit. Failure to submit 
this requirement will result in the non-issuance of the SSMP.
SECTION 73. Environmental measures in small-scale mining. - The State shall 
immediately address the environmental and health hazards and problems in small-scale 
mining, including the use of hazardous chemicals, such as mercury, cyanide and other 
chemicals, in the amalgamation of gold by small-scale miners.
SECTION 74. Prohibition on the use of mercury. - Mercury use in small-scale 
mining shall be prohibited. The Bureau shall research, develop and actively promote 
appropriate technologies in small-scale mining including labor-intensive methods, 
environmental protection and physical techniques or gold extraction among small-scale 
miners.
SECTION 75. Multi-sectoral monitoring team. - A multi-sectoral monitoring team 
shall be organized to monitor the SSMP permittee's compliance with the terms and conditions 
of its SSMP and ECC. The MMT shall conduct ocular inspections of the SSMP area at any 
time of the day and night and shall have visitorial powers.
SECTION 76. Alternative livelihood support. - The state shall support the 
improvement of the livelihood of small-scale-miners by extending the services for access to 
other more viable and sustainable forms of livelihood, and, if the same is not possible, the 
following support services:
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a) access to minerals markets and to financing;
b) facilitating partnership with mining companies or contractors by, among others, 
requiring mining companies to buy tailings from small-scale mining operations for 
further processing or recycling;
c) facilitating partnership among small-scale mining cooperatives; and
d) other incentives to attract informal small-scale miners to formalize their status.
SECTION 77. Buying stations. - The Bangko Sentral ng Pilipinas (BSP) 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 78. Quarry resources within ancestral domains. - Gathering of quarry 
resources, sand and gravel, guano and other organic fertilizer materials, and gemstones within 
ancestral domains shall likewise be subject to the FPIC of ICCs/lPs. ICCs/lPs and the 
government shall be entitled to at least ten per cent (10%) of royalties depending on whether 
the resources are found inside or outside ancestral domains. Permits shall be limited to a 
maximum term of five (5) years, renewable for like periods but not exceeding a total term of 
twenty five (25) years, and a maximum area of five (5) hectares.
SECTION 79. Quarry Permit. - Any qualified Filipino may apply for a quarry permit 
on privately- owned lands except ancestral domains and/or public lands for building and 
construction materials such as marble, basalt, andesite, eonglomerate, tuff, adobe, granite, 
gabbro, serpentine, inset filling materials, clay for ceramic tiles and building bricks, pumice, 
perlite and other similar materials that are extracted by quarrying from the ground at the 
provincial/city mining regulatory board. The provincial governor shall grant the permit after 
the applieant has complied with all the 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 country's rivers and shorelines shall be require a mineral 
agreement in lieu of a quarry permit.
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The maximum area which a qualified person may hold at anyone time shall be limited 
to a surface area of five hectares (5 has.); Provided, That in large-scale quarry operations 
involving cement raw materials, marble, granite, sand and gravel and construction 
aggregates, a qualified person and the government may enter into a mineral agreement as 
defined herein.
A quarry permit shall have a term of five (5) years, renewable for like periods but not 
to exeeed a total term of twenty-five (25) years. No quarry permit shall be issued or granted 
on any area eovered by a mineral agreement.
SECTION 80. Quarry Fee and Taxes. - A permittee shall pay a quarry fee as 
provided for under the implementing rules and regulations. The permittee shall also pay the 
excise tax as provided by pertinent laws.
SECTION 81. Cancellation of Quarry Permit. - A quarry permit may be cancelled by 
the provincial governor for violations of the provisions of this Act or its implementing rules 
and regulations or the terms and conditions of said permit; Provided, That before the 
cancellation of sueh permit, the holder thereof shall be given the opportunity to be heard in an 
investigation eonducted for the purpose.
SECTION 82. Commercial Sand and Gravel Permit. - Any qualified person may be 
granted a permit by the provineial governor to extract and remove sand and gravel or other 
loose or unconsolidated materials outside aneestral domains whieh are used in their natural 
state, without undergoing processing from an area of not more than five hectares (5 has.) and 
in such quantities as may be specified in the permit.
SECTION 83. Industrial Sand and Gravel Permit. - Any qualified person may be 
granted an industrial sand and gravel permit by the 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 
anyone time. The permit shall have a term of five (5) years, renewable for a like period but 
not to exceed a total term of twenty-five (25) years.
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SECTION 84. 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 85. Government 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 public use or other purposes over an area of 
not more than two hectares (2 has.) for a period coterminous with said construction.
SECTION 86. 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 87. Guano Permit. - Any qualified person 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 specifie 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 88. 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.
SECTION 89. Council recommendation for approval. - All permits under Chapter 
VII of this Act shall require the recommendation of 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 this Chapter.
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CHAPTER VII. TRANSPORT, SALE AND PROCESSING OF MINERALS
SECTION 90. Ore transport permit. - A permit specifying the origin and quantity of 
non-processed mineral ores or minerals shall be required for their transport. Transport 
permits shall be issued by the Bureau. The absence of 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 91. Track record. - Only mining companies with demonstrated capacity 
and good environmental track record in mineral processing shall be allowed to extract 
minerals. The Council shall encourage contractors to put up processing plants within the 
community with the end in view of generating employment and developing other downstream 
industries.
SECTION 92. Mineral trading registration. - No person shall engage in the trading 
of mineral products, either locally or internationally, unless registered with the Department of 
Trade and Industry and accredited by the Department, with a copy of said registration 
submitted to the Bureau.
SECTION 93. Mineral processing permit. - No person shall engage in the processing 
of minerals without first securing a minerals processing permit from the Council. Minerals 
processing permits shall be for a period of five (5) years, renewable for like periods but not to 
exceed a total term of twenty-five (25) years.
CHAPTER IX. DEVELOPMENT OF COMMUNITIES, SCIENCE AND
TECHNOLOGY
SECTION 94. Expenditure for community development. - A contractor shall assist in 
the development of the community, and the promotion of the general welfare of its 
inhabitants towards sustainable development. Community development projects shall in no 
way decrease the obligation of the corporation with regard to royalties and fees due to 
communities or local government units. Community development projects should be 
consistent with the Comprehensive Land Use Plans (CLUP), Ancestral Domains Sustainable
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Development and Protection Plan (ADSDPP) and annual investment plans of the local 
governments, CADT/CALT holders and the like.
SECTION 95. Employment of Filipinos and training or members of the local 
community. - A contractor and/or permittee shall give preference to Filipino citizens in all 
types of mining employment within the country. Members of the local community shall be 
trained in all aspects of the mining operations, including remining, recycling, rehabilitation, 
and the management thereof.
SECTION 96. Use of indigenous goods, services and technologies. - A contractor 
shall give preference to the use of local goods, services, and the scientific and technical 
resources in all stages of mining operations, where the same are of equivalent quality and are 
available on equivalent terms as their imported counterparts.
SECTION 97. Donation/turn-over of facilities. - Prior to the cessation of mining 
operations occasioned by abandonment or withdrawal of operations, on public lands by the 
contractor, the latter shall have a period of one (1) year there from within which to remove 
improvements; otherwise all the infrastructure, facilities and equipment shall be turned over 
or donated tax-free to the proper government authorities, national or local, to ensure that said 
infrastructure facilities and equipment are continuously maintained and utilized by the host 
and neighboring communities. A fine of one hundred thousand pesos (PI 00,000.00) shall be 
imposed for every day of delay.
CHAPTER X. BENEFIT SHARING, TAXES AND FEES
SECTION 98. Taxes and fees. - The contractor shall pay all taxes and fees as 
required by law, including, but not limited to:
a) contractor's income tax;
b) customs, duties and fees on imported capital equipment;
c) value-added tax on imported goods and services;
d) withholding tax on interest payments on foreign loans;
e) withholding tax on dividends to foreign stockholders;
f) documentary stamps taxes;
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g) capital gains tax;
h) excise tax on minerals;
i) local business tax;
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real property tax;
k) community tax;
l) occupation fees;
m) registration, accreditation, and permit fees;
n) water usage fees.
SECTION 99. Government share. - Aside from the taxes and fees referred to in the 
preceding section. Government shall have at least a share equivalent to ten percent (10%) of 
the gross revenues from the development and utilization of mineral resources that are owned 
by it to be set aside for the general fund of the government.
SECTION 100. Indigenous cultural communities' royalty. - In case of mineral 
operations within ancestral domains, the contractor shall pay at least ten per cent (10%) of the 
gross revenues as royalty to the ICCs/IPs. Community development programs shall not be 
considered as royalty payment. The payment of the royalties shall directly be given to the 
communities in a process that build on the ICCs/lPs' traditional and customary laws; 
Provided, That the royalty established in this Act shall be a minimum royalty payment and 
may still be subject to other conditions to be agreed by the parties, free from any external 
manipulation, interference, coercion, and other analogous acts, and obtained after fully 
disclosing the intent and scope, including the positive and negative impacts of the activity, in 
a language and process understandable and acceptable to them.
SECTION 101. Scientific research and development fund. - A Scientific Research 
and Development Fund shall be set aside to be devoted to research and development of clean 
mining technologies, improvement of mining processes, mine rehabilitation, mitigating 
technologies, setting up and maintenance of an independent pool of experts and operational 
expenses of the Bureau.
SECTION 102. Legal support services fund. - A legal support fund shall be set aside 
for the use of the communities and local government units for cases that they may file against 
mining permittees or cases that may be filed against them by mining companies in trying to
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do their responsibility of protecting the rights of the marginalized groups, the environment 
and sustainable development in general.
SECTION 103. Local Government Unit share. - Local Government Units shall be 
entitled to a share of the net revenues from mining operations which shall be paid directly to 
the provincial/independent eomponent city/highly urbanized city treasurer/s for distribution 
to other local government units. To determine the government share, the following variables 
shall be considered:
a) Classification of local government;
b) Vulnerability;
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 shall likewise benefit ICCs/IPs within the 
territory of the loeal government unit. Provided, That the administrative and operational 
expenses of the Council shall also be taken from this share.
SECTION 104. Mine wastes and tailings fees. - A semi-annual fee to be known as 
mine wastes and tailings fee is hereby imposed on all operating mining companies in 
accordance with the implementing rules and regulations. The mine wastes and tailings fee 
shall accrue to a fund to be used as support funds for monitoring activities of the Council. 
The Secretary is authorized to inerease mine wastes and tailings fees, when public interest so 
requires.
SECTION 105. Incentives. - Incentives that shall be given to the eontractors shall 
only be limited to pollution eontrol or mitigation devices.
SECTION 106. Deposit of capital and profits requirement. - As part of their 
demonstrated finaneial eapaeity, all large-scale mining companies/eontraetors are required to 
deposit their capital investment and profits in banks or finaneial institutions that are owned, 
managed and operated by the Philippine government.
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SECTION 107. General rule on profit repatriation. - Contractors with foreign 
financial assistance shall be allowed to repatriate their profits from mining projects that 
should not exceed fifty percent (50%) of the total posted at the end at every fiscal year. Full 
disclosure of profits is required. The full repatriation of profits shall be allowed one year after 
the cessation of mining activities and the progressive rehabilitation of a mining area as 
specified in the mineral agreement of each contractor.
The guidelines for Sections 106 and 107 shall be issued by BSP and shall be furnished 
to the Department, Bureau, Council and all respective contraetors in the industry.
CHAPTER XL SAFETY AND ENVIRONMENTAL PROTECTION
A. Safety
SECTION 108. Mines safety. - All contractors and permittees shall strictly comply with 
all the mines and safety rules and regulations concerning the safe and sanitary upkeep of the 
mines and mining development Government personnel involved in the implementation of 
mines safety, occupational health and environmental rules and regulations shall be covered 
under Republic Act No. 7305 or the Magna Carta of Public Health Workers.
SECTION 109. Mine labor. - No person under sixteen (16) years of age shall be 
employed in any place of mining operations and no person under eighteen (18) years of age 
shall be employed in a mine.
SECTION 110. Mine supervision. - All mining and quarrying operations shall have at 
least one (1) licensed mining engineer for every fifty (50) employees. Such engineer/s shall 
have at least five (5) years of experience in mining operations, and one (1) registered 
foreman.
SECTION 111. Safety of workers. - All mining companies shall provide safeguards to 
the health and well-being of workers. The Regional Office of the Department of Labor and 
Employment shall inspect all mining sites within their areas of jurisdiction to determine the 
conditions of workers. Denial of entry shall be punishable under this Act. Representatives of 
labor unions shall also have visitorial rights.
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SECTION 112. Mine inspection. - The mines regional directors and the Council shall 
have jurisdiction over the safety inspection of all installations, surface or underground, in 
mining operations at reasonable hours of day or night and as much as possible in a manner 
that will not impede or obstruct work in progress of a contractor or permittee. Monitoring 
reports and recommendations of the Bureau shall be submitted to the Council.
SECTION 113. Power to issue orders. - The mines regional director, in consultation with 
the Environmental Management Bureau, forthwith or within such time as specified in the 
order, require the contractor to remedy any practice connected with mining, which is not in 
accordance with safety and anti-pollution laws and regulations. In case of imminent danger to 
life or property, the Director may summarily suspend the mining operation until the danger is 
removed, or appropriate measures are taken by the contractor. Unreasonable delay to remove 
the danger or introduce the necessary improvements by the contractor shall be a cause for the 
cancellation of the mineral agreement.
SECTION 114. Report of accidents. - In case of any incident or accident, causing or 
creating the danger of loss of life or serious physical injuries, the person in charge of 
operations shall immediately report the same to the 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 the rules and regulations implementing this Act.
B. Environmental Protection
SECTION 115. Environmental Insurance. - Contractors and mineral processing permit 
holders shall be obliged to execute an insurance contract as an 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 contract by the DENR, the DENR shall seek and consider the opinion of an 
independent expert as to the financial credibility of the insurer.
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SECTION 116. Calamity and Human Rights Protection Fund. - Persons issued a mineral 
agreement shall deposit five million pesos (Php 5,000,000.00) semi-annually in an interest- 
bearing aeeount a eommon 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. - The contractor shall put up a bond in an amount 
equivalent to fifty per cent (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 any time of its operations.
SECTION 118. Rehabilitation. - Contractors and permittees shall technically and 
biologically rehabilitate the excavated, mined-out, tailings covered and disturbed areas to the 
condition of environmental safety, as may be 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 fulfill the above obligation shall mean immediate suspension or 
closure of the mining activities of the contractor/permittee concerned.
Mining firms are hereby mandated to reforest 100 hectares of land for everyone hectare of 
land they utilize in the course of their mining operations. Mining firms are also mandated to 
immediately restore and replant areas that they have already finished excavating as they 
move on to other development sites: Provided, however, that if mining firms cannot do the 
reforestation in their immediate area they could do the reforestation in other areas provided 
they comply with 100: 1 hectare ratio. Any mining firm found to have violated or have not 
complied with the foregoing mandatory provisions shall be held liable with the penalty of
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revocation of their mining permits and payment of a fine of not less than One Million Pesos 
(PI ,000,000.00).
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 (1) year nor more than three (3) 
years.
SECTION 119. Progressive rehabilitation. - Contractors shall also conduct progressive 
rehabilitation activities.
SECTION 120. Adoption of Precautionary Principle. - When an activity related to 
mining raises threats of harm to human health or the environment, precautionary measures 
shall be taken proactively even if some cause and effect relationship are not fully established 
scientifically. The mining proponent and the Bureau shall also be obliged to disclose whether 
or not the cause and effect have not yet been scientifically established.
SECTION 121. Adoption of Polluter Pays Principle. - Polluters shall pay for the damage 
they cause to the environment. The amount of damages shall be determined by accredited 
Independent consultants, to be chosen from a list and agreed upon by both the mining 
proponent and by the Council
SECTION 122. Tailings impoundment. - Tailings impoundments shall be built away 
from critical watershed drainage areas. Furthermore, it shall be ensured that impoundments 
will not endanger critical watershed areas or low lying valleys in the event of accidents under 
abnormal conditions. Tailing impoundments and dams shall meet the international standards 
for large dams.
SECTION 123. Dumping of waste. - Dumping of waste or tailings in any body of water 
shall be prohibited. Provisions on the Clean Water Act and Clean Air Act shall be strictly 
implemented.
SECTION 124. Use of toxic chemicals and methods. - At all times, mining contractors 
shall use chemicals or reagents which would result to the least environmental and social 
destruction. The use of mercury and cyanide for the extraction of gold, silver and other
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minerals shall be prohibited. The use of blow torching to separate gold from amalgam shall 
likewise be prohibited.
SECTION 125. Preservation of topsoil. - The removed topsoil or the more productive 
horizons of the soil shall be preserved for other uses.
SECTION 126. Priority use for water. - The National Water Resources Board shall 
investigate any existing use of water resources in the area whether or not covered by any 
existing water permit or registration. Upon determination of any existing use, the applicant 
shall procure the consent of all water users and/or the free prior and informed consent of 
ICCs/IPs with or without water permits within the same groundwater network or any 
downstream users of water resources. In all instances, priority shall be given to use of water 
for domestic, municipal, and agricultural purposes. If potential negative impact on other 
water users is identified, the water permit shall not be granted. For water resources within the 
ancestral domain of indigenous peoples, no water permit shall be granted by the National 
Water Resources Board without the free and prior informed consent of indigenous peoples.
SECTION 127. Recycling of water resources. - Water used in mining operations shall be 
recycled. Mining contractors shall be required to provide for the methods or equipment for 
the recycling or reuse of water. Released contaminated water shall be treated accordingly to 
meet national standards. Released water must at least be equivalent in quality to the baseline 
water quality.
SECTION 128. Water user fee. - A water user fee that reflects the value of water to the 
country and community shall be imposed by the Council for water used in mining operations. 
Contractors shall pay the fee to the National Water Resources Board which shall use the same 
for monitoring and improvement of the affected waterways and systems and the mitigation of 
negative impacts thereon to ensure that communities shall have access to clean water.
C. Acid Mine Drainage
SECTION 129. Prohibition from using acid-generating waste rock to build roads or 
dams. - To prevent or mitigate acid mine drainage, there shall be a prohibition against using
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acid-generating waste rock to build roads or dams or other infrastructures. The use of such 
materials shall only be used after treatment to neutralize the effect of acid mine drainage.
SECTION 130. Establishment of a prediction and monitoring system. - The Bureau shall 
establish a prediction and monitoring system to identify potential acid producing materials 
and monitor their production of acid waste.
SECTION 131. Avoidance of waterways. - Open pits, waste rock piles and tailings 
impoundments shall not be built near or on waterways to prevent contact and subsequent acid 
production and groundwater contamination.
SECTION 132. Remining. - Remining shall be prioritized over the opening of new mines 
to maximize and recover the remaining minerals from the rejects or wastes of previous mines 
and mining operations, Provided, That remaining operations shall follow the processes, 
standards, parameters and guidelines set for mining operations in this Act.
SECTION 133. Suits after the termination of contracts or projects. - Recognizing that 
the effects of mining may be seen or felt, actions relating to the health of affected 
communities or peoples, environmental degradation and other similar effects may be 
maintained against the project proponent or persons even after the mineral agreement or 
mining project has terminated.
CHAPTER XII. RESOLUTION OF CONFLICTS
SECTION 134. Panel of arbitrators. - There shall be a panel of arbitrators in the 
regional office of the Department composed of three (3) members, two (2) of whom must be 
members of the Philippine Bar in good standing and one a licensed mining engineer or a 
professional in a related field, and duly designated by the Secretary as recommended by the 
Mines and Geosciences Bureau Director. Those designated as members of the panel shall 
serve as such in addition to their work in the Department without receiving any additional 
compensation. As much as practicable, said members shall come from the different 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
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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 compliance with the established technical guidelines and 
standards herein established, or those to be established by the implementing rules 
and regulations of this Act;
b) Questions involving the compliance with technical procedures herein established, 
or those to be established by the implementing rules and regulations; and
c) Other similar instances wherein the technological and technical expertise of the 
Department shall be needed.
Disputes involving real rights, contractual obligations and the other causes of action 
that are outside the technological and technical expertise of the Panel of Arbitrators shall be 
under the jurisdiction or 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 or 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 Department or Bureau shall be refiled with the appropriate court, 
without costs to the complainant or petitioner.
SECTION 135. Appeal. - The decision or order of the panel of arbitrators may be 
appealed by the party not satisfied thereto to the Mines Adjudication Board within fifteen 
(15) days from receipt thereof which must decide the case within thirty (30) days from 
submission thereof for decision.
SECTION 136. Mines Adjudication Board (MAB) - The Mines Adjudication Board 
shall be composed of three (3) members. The Secretary of the DENR shall be the Chairperson 
with the Director of the Mines and Geosciences Bureau and the Undersecretary for 
Operations of the Department as members thereof The Board shall have the following 
powers and functions:
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a) To promulgate rules and regulations governing the hearing and disposition of 
cases before it, as well as those pertaining to its internal functions, and such rules 
and regulations as may be necessary to carry out its functions;
b) To administer oaths, summon the parties to a controversy. Issue subpoenas 
requiring the attendance and testimony of witnesses or the production of such 
books, papers, contracts, records, statement of accounts, agreements, and other 
documents as may be material to a just determination of the matter under 
investigation, and to testify in any investigation or hearing conducted in 
pursuance of this Act;
c) To conduct hearings on all matters within its jurisdiction, proceed to hear and 
determine the disputes in the absence of any party thereto who has been 
summoned or served with notice to appear, conduct its proceedings or any part 
thereof in public or in private, adjourn its hearings at any time and place, refer 
technical matters or accounts to an expert and to accept his report as evidence 
after hearing of the parties upon due notice, direct parties to be joined in or 
excluded from the proceedings, correct, amend, or waive any error, defect or 
irregularity, whether in substance or in form, give all such directions as it may 
deem necessary or expedient in the determination of the dispute before it, and 
dismiss the mining dispute as part thereof, where it is trivial or where further 
proceedings by the Board are not necessary or desirable:
d) To hold any person in contempt, directly or indirectly, and impose appropriate 
penalties therefor; and
e) To enjoin any or all acts involving or arising from any case pending before it 
which, if not restrained forthwith, may cause grave or irreparable damage to any 
of the parties to the case or seriously affect social and economic stability.
In any proceeding before the Board, the rules of evidence prevailing in courts of law 
or equity shall not be controlling and it is the spirit and intention of this Act that shall govern. 
The Board shall use every and all reasonable means to ascertain the facts in each case 
speedily and objectively and without regard to technicalities of law or procedure, all in the
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interest of due process and social justice. In any proceeding before the Board, the parties may 
be represented by legal counsel. The findings of fact of the Board shall be conclusive and 
binding on the parties and its decision or order shall be final and executory.
A petition for review by certiorari and question of law may be filed by the aggrieved 
party with the Supreme Court within thirty (30) days from receipt of the order or decision of 
the Board.
CHAPTER XIII. ACCESS TO JUSTICE
SECTION 137. Obligation to respect human rights. - Corporations shall respect, 
protect and promote the human rights of communities affected by mining, including the right 
to life, liberty and property, freedom of movement, right of public participation and the right 
to self-determination of indigenous cultural communities.
SECTION 138. Violations of human rights. - Extrajudicial killing, torture, 
involuntary disappearance, forcible displacement of populations, setting up of checkpoints, 
and imposition of toll fees which impede the freedom of movement within mineral areas, 
deprivation of food and water sources, 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 or officers 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 confiscated in favor of the government.
SECTION 139. Use ofparamilitary and military forces. - All mining companies are 
strictly prohibited from employing paramilitary groups. Use of private and military forces 
shall result in the automatic cancellation of the mineral agreement and the filing of 
appropriate civil, criminal and/or administrative charges.
SECTION 140. Strategic Legal Action Against Public Participation (SLAPP). - 
SLAPPs shall be strictly prohibited. SLAPP is any legal action, whether civil, criminal or 
administrative, filed to harass, vex, exert legal action or stifle legal recourses of community
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members complaining against violations of this Act or enforcing the provisions of the Act, or 
exercising their freedom of assembly or right of public participation. 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 141. Indigents' suit. - Indigents shall be exempt from payment of any 
administrative or court fees, including docket fees for the filing of a case. Lawyers shall be 
provided by the Public Attorney's Office to pauper litigants in case they could not afford legal 
services.
SECTION 142. Application of the customary laws of ICCs/lPs. - The contractor shall 
respect the customary laws of the ICCs/IPs and shall submit to the processes of their 
customary laws. Provided, That these laws are not contrary to the provisions of the 
Constitution.
SECTION 143. Strict liability. - Mining corporations are strictly liable for all 
damages that the mining operations might cause. In case of any actual damage, the burden of 
proof shall lie with the corporations.
SECTION 144. Piercing the corporate veil. - When the separate personality of the 
corporation from its shareholders is being invoked as defense in order to perpetuate a crime, 
fraud or other machinations, or evade liability, the separate personality of the corporation 
shall be set aside. Civil, criminal and administrative actions may thus be filed directly against 
the members of the Board of Directors, officers and/or individual stockholders.
SECTION 145. Citizen suits. - For the purpose of enforcing the provisions of this Act 
or its implementing rules and regulations, any citizen may file appropriate civil, criminal and 
administrative suits against any of the following:
a) Any person who violates or fails to comply with the provisions of this Act or its 
implementing rules and regulations;
b) Any public officer with respect to orders, rules and regulations inconsistent with 
this Act;
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c) Any public officer who willfully or grossly neglects the performance of an act 
specifically enjoined as a duty by this Act or its rules and regulations; or abuses 
the authority in the performance of a duty/ies under this Act or its implementing 
rules and regulations.
The court shall exempt such action from the payment of filing fees, except fees for 
actions not capable of pecuniary estimation, and shall likewise, upon prima facie showing of 
non-enforcement or violation complained of, exempt the plaintiff from filing an injunetion 
bond for the issuance of a preliminary injunction.
The court shall determine whether or not the complaint is malicious or baseless and 
shall aeeordingly dismiss the petition within thirty (30) days upon the filing of the case.
CHAPTER XIV. PENAL PROVISIONS
SECTION 146. Grounds for the cancellation of mineral agreements and permits:
a) Violation of any provision of this Act;
b) Human rights violations perpetrated by the contraetor or any agent of the 
contractor;
c) Non-payment of taxes;
d) Bribery, use of foree, intimidation, threat, coercion of public officials and 
communities;
e) Any act that shall create or contribute to conflicts; and
f) Other analogous acts.
Violations of environmental provisions shall eause the immediate to cancellation of 
mining permits, and the contraetor shall be required to pay for the rehabilitation, restoration 
or clean up of the impacts of such violations.
Corporations, corporate directors/officers found guilty of the above enumeration may 
be subjected to a perpetual ban in the mining operations in the Philippines.
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SECTION 147. False statements. - Any person who knowingly presents any false 
application, declaration, or evidence to the Government or publishes or causes to be 
published any prospectus or other information containing any false statement relating to 
mines, mining operations or mineral agreements and permits shall, upon conviction, be 
penalized by a fine of not exceeding One Hundred Thousand pesos (PI 00,000.00).
SECTION 148. Illegal exploration. - Any person undertaking exploration work 
without the necessary exploration permit shall, upon conviction, be penalized by a fine of not 
exceeding Five Million Pesos (P5,000,000.00).
SECTION 149. Panning. - Panning shall be considered an act of mining. Any person 
undertaking panning without the necessary mining permit shall upon conviction, be convicted 
of illegal panning penalized under Section 27 (RA 7076). In addition, such person shall be 
liable to pay damages made to the environment by reason of such panning. In the case of 
associations, partnerships, or corporations, the president and each of the directors thereof 
shall be responsible for the acts committed by such association, corporation, or partnership.
SECTION 150. Theft of minerals. - Any person extracting minerals and disposing the 
same without a mining agreement, lease, permit, license, or steals minerals or ores or the 
products thereof from mines or 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 (PI00,000.00) to One Million Pesos (PI ,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, partnerships, or 
corporations, the president and each of the directors thereof shall be responsible for the acts 
committed by such association, corporation, or partnership.
SECTION 151. Unauthorized dealing, selling, 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 BSP shall be punished as unauthorized dealing and 
shall be penalized in accordance with the provisions in this Act.
SECTION 152. Destruction of mining structures. - Any person who wilfully destroys 
or damages structures in or on the mining area or on the mill sites shall, upon conviction, be
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imprisoned for a period not to exceed five (5) years and shall, in addition, pay compensation 
for the damages which may have been caused thereby.
SECTION 153. Mines arson. - Any person who wilfully sets fire to any mineral 
stockpile, mine or workings, fittings or a mine, shall be guilty of arson and shall be punished, 
upon conviction, by the appropriate court in accordance with the provisions of the Revised 
Penal Code and shall, in addition, pay compensation for the damages caused hereby.
SECTION 154. Willful damage to a mine. - Any person who wilfully damages a 
mine, unlawfully causes water to run into a mine, obstructs any shaft or passage to a mine, 
renders useless, damages or destroys any machine, appliance, apparatus, rope, chain, tackle, 
or any other things used in a mine, shall be punished, upon conviction, by the appropriate 
court, by imprisonment not exceeding a period of five (5) years and shall, in addition, pay 
compensation for the damages caused thereby.
SECTION 155. Illegal obstruction to permittees or contractors. - Any person who, 
without justifiable cause, prevents or obstructs the holder of any permit, agreement or lease 
from undertaking his mining operations shall be punished, upon conviction by the appropriate 
court, by a fine not exceeding Five Thousand Pesos (P5,000.00).
SECTION 156. Vitiation of FPIC. - Any person found to have vitiated the consent of 
the ICCs/IPs through bribery, threat, force, and/or intimidation, or any other similar means, 
shall suffer the penalty of six (6) years and one (1) day to ten (10) years in prison, and a fine 
of at least Two Million Pesos (Php 2,000,000.00). If the perpetrator is a government official, 
the penalty shall be eight (8) years and one (1) day to twelve (12) years imprisonment, and a 
fine of at least Four Million Pesos (Php 4,000,000.00). The person shall be perpetually 
prohibited from assuming publie office, and shall be disqualified from receiving other 
benefits by virtue of his/her position in government.
SECTION 157. Penalty for human rights violations. - Contractors or other persons 
who have violated the human rights of communities in connection with the mining operations 
shall be penalized with ten (10) years to fourteen (14) years imprisonment and a fine of at 
least Five Million Pesos (Php 5,000.000,00) and shall indemnify the victims.
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SECTION 158. Amendment to Section 27 of Republic Act No. 7076 or the Small- 
scale Mining Act. - Violations of the provisions of RA 7076 or of the rules and regulations 
issued pursuant hereto shall be penalized with imprisonment of six (6) years and one (1) day 
to twelve (12) 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 159. Abandonment. - Contractors or permittees who shall abandon mines 
shall be perpetually banned or disqualified from conducting mining operations, directly or 
indirectly. The ban and/or disqualification shall include the officers and directors of 
corporations that have abandoned mines.
SECTION 160. Confiscation of equipment and property. - The equipment and 
property of contractors and permit holders violating this Act shall be forfeited in favor of the 
government.
SECTION 161. 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 perpetual ban in the 
mining industry.
SECTION 162. Reinstatement of revoked permits. - After notice and hearing, 
revoked permits that have undergone due process may be reinstated. Provided, That it may 
only be reinstated onee.
CHAPTER XV. TRANSITORY PROVISIONS
SECTION 163. There shall be a moratorium on all mining activities until all the 
systems are in place for the proper implementation of the law.
SECTION 164. All existing mining permits, licenses and agreements are hereby 
deemed cancelled. Those mine workers and their families that may be displaced during the
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transition period shall receive livelihood support and job placements to be facilitated by the 
appropriate agencies of the State.
SECTION 165. The classification of public lands as mineral reservations pursuant to 
pre-existing laws shall hereby cease. All such lands shall be closed to mining unless opened 
thereto in accordance with the provisions of this Act. The President's power to declare 
mineral reservations shall henceforth cease to exist. A review of the current mineral land 
classification shall be conducted to determine the best livelihood and economic option for the 
said area.
SECTION 166. The members of the panels of arbitrators and the provincial or city 
mining regulatory boards established under Republic Act No. 7942 shall hold-over their 
positions until replaced in accordance with provisions of this Act.
SECTION 167. Separability clause. - The provisions of this Act are hereby declared 
to be separable and, in the event of any such provisions are declared unconstitutional, the 
other provisions which are not affected thereby shall remain in force and effect.
SECTION 168. Repealing clause. - Republic Act 7942, Presidential Decree 463, 
Presidential Decree 512, and other related mining laws are hereby repealed. All provisions in 
laws, decrees, issuances and other regulations inconsistent with this present law shall be 
deemed amended or repealed if the inconsistency is irreconcilable.
SECTION 169. Funds. - The amount of One Hundred Billion Pesos (PhP 
100,000,000,000.00) is hereby appropriated for the proper functioning of the Bureau, the 
Council, and other bodies established under this Act of which half of the said amount shall be 
allotted for the baseline mineral exploration activities of the Bureau.
SECTION 170. Implementing rules and regulations. - The implementing rules and 
regulations of this Act shall be the product of joint collaboration by the Department, and 
representatives from the local government units, peoples' organizations, sectoral 
organizations and non-govemmental organizations, and shall be drawn up after appropriate 
and exhaustive public consultations at all levels nationwide.
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SECTION 171. Effectivity clause. - This Act shall take effect within fifteen (15) days 
following its publication in two national newspapers of general circulation in the Philippines.
Approved,
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