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Republic of the Philippines RECEIVED
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Quezon City pave:_30 JUN

REGISTRATION UNIT

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| BY!
SEVENTEENTH CONGRESS |
First Regular Session |
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PILLS AND INDEX SERVICE

House Bill No, 48% a

Introduced by Representatives GLORIA MACAPAGAL ARROYO and PROSPERO
PICHAY JR.

AN ACT PRESCRIBING STANDARDS FOR RESPONSIBLE MINING

EXPLANATORY NOTE

The Duterte Administration is committed to promoting a robust and dynamic economy,
with every sector contributing to its growth. The Administration supports each and every
venture that contributes to the health of the economy but it is clear that for whatever
venture we go into, it should be in a responsible manner.

The Duterte Administration is not anti-mining. The Administration views the mining
industry as a key player in the Philippine economy. Responsible mining plays a key role
in the Philippines. The key word here is ‘responsible.’ You have to do it right. If you
cannot do it right, then get out of mining. The Duterte Administration wants the
standards of responsible mining in developed countries like Canada and Australia
applied in the Philippines to ensure the protection of the environment.

On April 5, 2016, the Initiative for Responsible Mining Assurance based in Canada
released a draft standard for responsible mining. This measure is based on that draft
standard

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

GLORIAMACAPAGAL ARROYO
2" District, Pampanga



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

3
House Bill No. 488

Introduced by Representatives GLORIA MACAPAGAL ARROYO and PROSPERO
PICHAY JR.

AN ACT PRESCRIBING STANDARDS FOR RESPONSIBLE MINING

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

CHAPTER 1
TITLE AND DECLARATION OF POLICY

SECTION 1. Short Title. — This Act shall be known as the Mining
Responsibility Act of 2016. It shall hereinafter be referred to as the Act.

SECTION 2. Declaration of Policy.— It is hereby declared the policy of the State
that mining should

Respect the human rights and aspirations of affected communities;
Provide safe, healthy and respectful workplaces;

Avoid or minimize harm to the environment; and

Leave positive legacies

SECTION 3. Scope. — This Act shall prescribe standards of responsible mining,
including business integrity, social responsibility, environmental responsibility,
reclamation and closure, and management systems

SECTION 4. Definition of Terms. —

(a) “Biological diversity’ - or “biodiversity’refers to the variability among living
organisms from all sources including, inter alia, terrestrial, marine and other
aquatic ecosystems and the ecological complexes of which they are a part; this
includes diversity within species, between species and of ecosystems;

(b) “Conflict-affected areas” refer to areas identified by the presence of armed
conflict, widespread violence, including violence generated by criminal networks,
or other risks of serious and widespread harm to people. Armed conflict may take
a variety of forms, such as a conflict of international or non-international
character, which may involve two or more states, or may consist of wars of
liberation, or insurgencies, civil wars. High-risk areas” are those where there is a
high risk of conflict or of widespread or serious abuses;


(c) “Consultation” involves an exchange of information between stakeholders, which
provides an opportunity for stakeholders to raise concerns and comment on the
impacts and merits of a proposal or activity before a decision is made. In
principle the company should take into account the concerns and views
expressed by stakeholders in the final decision;

(d) “Cultural heritage” is the legacy of physical structures, landscapes and artifacts,
as well as intangible attributes of a group or society, such as activities or
knowledge that has cultural, scientific, spiritual or religious value;

(e) "Cyanide" is an industrial chemical used in the processing of gold and silver at
many mine sites and as a minor processing reagent at some base metal mines;

() “Free, Prior and Informed Consent’ refers to consent based on: engagement
that is free from external manipulation, coercion and intimidation; notification,
sufficiently in advance of commencement of any activities, that consent will
besought; full disclosure of information regarding all aspects of a proposed
project or activity in a manner that is accessible and understandable to the
people whose consent is being sought; acknowledgment that the people whose
consent is being sought can approve or reject a project or activity, and that the
entities seeking consent will abide by the decision;

() “Grievance Mechanism” refers to any routinized, State-based or non-State-
based, judicial or non-judicial process through which grievances concerning
business-related human rights abuses can be raised and remedy can be sought;

(h) "Indigenous Peoples” refers to peoples who: identify themselves and are
recognized and accepted by their community as indigenous; demonstrate
historical continuity with pre-colonial and/or pre-settler societies; have strong
links to territories and surrounding natural resources; have distinct social,
economic or political systems; maintain distinct languages, cultures and beliefs;
form non-dominant groups of society; an resolve to maintain and reproduce their
ancestral environments and systems as distinctive peoples and communities. In
some regions, there may be a preference to use other terms such as: tribes, first
peoples/nations, aboriginals, ethnic groups, adivasi and janajati. All such terms
fall within this modern understanding of “indigenous”,

(i) “Mercury” metal is a byproduct of some mining operations, due to the presence
of mercury minerals in ore bodies such as gold, silver, copper and zinc deposits;

(j) “Monitoring” is an iterative and cyclical process that leads to a re-assessment of
relevant environmental, social and health management plans, as part of an

adaptive project management process;

(k) "Mining Project” refers to any set of activities undertaken for the purposes of
extracting mineral resources. Mining projects may include exploration, mine
construction, mining, mine closure and related activities either as separately or in
combination;

(

“Occupational health impacts” related to the mining industry may include physical
injuries; musculoskeletal disorders; noise-induced hearing loss; hand-arm
vibration syndrome; skin cancer; dermatitis; heat exhaustion; hypothermia; eye
disorders related to radiation exposure; asphyxiation; pneumonia; respiratory
disorders; damage to internal organs and other effects related to chemical/metal
exposures, decreased mental health and wellbeing; and others;

(m) “Operating Company” refers to the legal entity that is responsible for the
implementation of a mining project;


(n) “Protected Area” refers to a clearly defined geographical space, recognized,
dedicated and managed, through legal or other effective means, to achieve the
long-term conservation of nature with associated ecosystem services and cultural
values;

(0) “Reclamation” refers to the process of reconverting disturbed land to its former or
other productive uses, “Closure” refers to the activities which are required to
maintain compliance with environmental regulations during and_ following
completion of reclamation;

(p) “Resettlement” refers to voluntary resettlement or involuntary resettlement.
Voluntary resettlement refers to voluntary land transactions (i.e., market
transactions in which the seller is not obliged to sell and the buyer cannot resort
to expropriation or other compulsory procedures sanctioned by the legal system
of the host country if negotiations fail). Involuntary resettlement refers to physical
displacement (relocation or loss of shelter) and to economic displacement (loss
of assets or access to assets that leads to loss of income sources or other
means of livelihood) as a result of project-related land acquisition and/or
restrictions on land use. Resettlement is considered involuntary when affected
persons or communities do not have the right to refuse land acquisition or
restrictions on land use that result in physical or economic displacement. This
occurs in cases of lawful expropriation or temporary or permanent restrictions on
land use and negotiated settlements in which the buyer can resort to
expropriation or impose legal restrictions on land use if negotiations with the
seller fail;

(q) "Shall’ indicates a requirement of a standard;
(r) “Shall Not” indicates a prohibition;

(s) “Stakeholder” refers to any individual who may affect or be affected by an
organization's activities.

CHAPTER 2
BUSINESS INTEGRITY

SECTION 5. Legal Compliance. — All mining operating companies in the
Philippines shall comply with all laws of the Republic applicable to mining

SECTION 6. Revenue and Payments Transparency. — All mining companies
shall provide communities and the general public with the information they need to
understand and assess the fairness of financial arrangements, such as revenue and
payments, related to mining operations.

CHAPTER 3
SOCIAL RESPONSIBILITY

SECTION 7. Fair Labor and Working Conditions. — Mining companies shall
protect the basic rights of workers they employ directly and those that are employed by
their contractors and suppliers.

SECTION 8. Occupational Health and Safety.— Any mining company
operating in the Philippines shall provide a safe and healthy environment that protects
and promotes workers’ health and their working capacity. This shall be accomplished
through consultation and cooperation with workers and/or their representatives to
identify workplace hazards and risks, implement measures to eliminate or minimize


workplace hazards and risks, and develop and provide information and training
programs to promote workplace safety and health

SECTION 9. Emergency Preparedness and Response. — Mining companies
shall identify, plan for and are prepared to respond effectively to potential emergency
situations, in close cooperation with workers, trade unions, local communities, local
authorities, environmental organizations and other stakeholders, thereby reducing the
likelihood of accidents and emergencies and minimizing loss of life, injuries and damage
to property, environment, health and social well-being if they occur.

SECTION 10. Human Rights Due Diligence and Compliance. — Companies
involved in mining projects shall fulfill their responsibilities to respect human rights

SECTION 11. Mining and Conflict-Affected or High-Risk Areas. —Mining
companies in conflict-affected or high-risk areas shall ensure that they do not
intentionally or unintentionally cause, contribute to, or benefit from human rights abuses
or armed conflict.

SECTION 12, Security and Human Rights. ~ Security for mining projects shall
be managed in a manner that respects, protects and promotes human rights and
fundamental freedoms.

SECTION 13. HIV/AIDS, Tuberculosis and Malaria. — Mining projects shall
ensure that effective measures are taken to mitigate the spread and the impacts of
HIV/AIDS, tuberculosis and malaria.

SECTION 15. Community and Stakeholder Engagement. - Mining projects
shall carry out effective stakeholder engagement that enables communities to play a
meaningful role in mining-related decisions that affect their health, wellbeing, safety,
livelihoods and futures, in order to achieve broad community support.

SECTION 16. Obtaining Community Support and Delivering Benefits. -
Companies engaging in mining shall demonstrate that they have broad community
support, and are able to provide tangible benefits that meet the needs of communities.

SECTION 17. Free, Prior and Informed Consent. — In complying with Philippine
laws on free, prior and informed consent of indigenous peoples in cases where
development projects may affect them, mining companies shall respect the rights,
dignity, aspirations, culture and livelihoods of indigenous peoples.

SECTION 18. Cultural Heritage. — Wherever and whenever mining development
occurs, it shall proceed in a manner that respects and protects the cultural heritage of
communities

SECTION 19. Resettlement. - If resettlement associated with a mining project is
unavoidable, the mining company involved shall ensure that affected people are:
meaningfully involved in resettlement decisions; compensated equitably; and have the
opportunity to improve their living standards and income-earning capacity over pre-
resettlement levels

CHAPTER 4
ENVIRONMENTAL RESPONSIBILITY

SECTION 20. Water Quality. - Mining projects shall minimize the pollution of
ground and surface water, and achieve the quality specifications listed in criteria
prescribed by international environmental coalitions for fresh and ground water.

SECTION 21. Water Quantity. - Mining projects minimize their consumptive use
of water and the impacts caused by their dewatering operations. Provided. That the
amount and timing of project water use shall ensure that the detrimental impact of
dewatering on the environmental flows of affected streams and springs is minimized.


SECTION 22. Mine Waste Management. - Mine waste (tailings, waste rock, and
overburden) and mine facilities (waste rock piles, tailings impoundments, open pits,
underground workings, etc.) shall be managed in a manner that eliminates offsite
contamination, and leaves remaining mine features in a condition that brings about the
least environmental and financial risk, and the most potentially useful land use, to future
users.

SECTION 23. Air Quality. — Pre-mine air quality conditions shall be protected
and maintained through the reduction and control of physical and chemical emissions
into the air.

SECTION 24. Noise. - Pre-mine aural conditions shall be protected and
maintained through the reduction and control of noise pollution.

SECTION 25. Greenhouse Gas Emissions.- Energy efficiency in the mining
sector shall be promoted and maintained and the sector's impacts on climate change
shall be reduced through the increase of energy efficiency, reduction of energy
consumption, and reduction of mines’ emissions of greenhouse gases.

SECTION 26. Protected Areas. - In protected areas where even if all technically
and economically feasible steps to reduce adverse impacts on the objectives for which
the areas have been designated for protection were to be implemented, mining would
jeopardize those values, mining should not take place. Provided, That if in cases where
responsible exploration and mining development in or adjacent to such protected areas
may be compatible with the objectives for which the areas have been designated for
protection, mining and related activities shall respect, support and strengthen the
effectiveness of such legally designated protected areas in the country.

SECTION 27. Biodiversity Outside Officially Protected Areas. ~ Even outside
officially protected areas, mining and related activities shall not contribute to the global
loss of biodiversity. Provided, That biodiversity losses shall be minimized but that,
where they occur, they shall be compensated for by verified gains in other locations and
through long-term requirements for restoration where possible.

SECTION 28. Cyanide. - Human health and the environment shall be protected
by the responsible management of cyanide, consistent with the Intemational Cyanide
Management Code for all mines that store bulk quantities of cyanide, or that use
cyanide in a mill process.

SECTION 29. Mercury Management. -Human health and the environment and
the environment shall be protected by encouraging the responsible management of
mercury. Provided, That scientific understanding of the issues and the technology to
monitor and control mercury emissions shall be improved

CHAPTER 5
RECLAMATION AND CLOSURE

SECTION 30. Reclamation and Closure. - Consideration of the long-term
environmental and social potential of a mine site after mining operations have ceased
shall be integrated into mining project management throughout the mine life cycle, from
its beginning to its end. Provided, That the full costs of site reclamation and closure
shall borne by the mine's financial beneficiaries, and shall not be passed on to the
public.


CHAPTER 6
MANAGEMENT SYSTEMS

SECTION 31. Environmental and Social Impact Assessment. - Environmental
and social impacts of any mining project shall be evaluated in a comprehensive and
integrated manner, Provided, That the concems of stakeholders and affected
communities shall be explicitly identified, addressed and incorporated into planning and
decisions-making in order to anticipate, avoid, and when that is not possible, minimize
and compensate for impacts on affected communities, workers and the environment.

SECTION 32. Environmental and Social Impact Monitoring. - The
environmental and social impacts of a mining project shall be effectively monitored over
time, in a comprehensive and integrated manner; Provided, that the monitoring program
shall address the concerns of stakeholders and affected communities; Provided, further,
That systems shall be in place to respond to and where possible address adverse
impacts that are identified in an effective and timely manner.

SECTION 33. Grievance Mechanism and Access to Other Remedies. -
Affected communities and individuals shall have access to an effective mechanism for
raising concerns and grievances related to operating company activities, without limiting
individuals’ ability to seek remedy for the same complaints through other non-judicial or
judicial mechanisms.

CHAPTER 7
FINAL PROVISIONS

SECTION 34, Implementing Rules and Regulations. ~ The Department of
Environment and Natural Resources shall, in consultation with relevant government
agencies, the mining industry participants, non-government organizations and
stakeholders, promulgate the Implementing Rules and Regulations, including penal
provisions, of the Act within six (6) months from the effectivity of this Act, subject to the
approval by the President of the Philippines.

SECTION 35. Separability Clause. — Any provision of this Act declared
unconstitutional shall not affect the validity of the other provisions thereof.

SECTION 37. Repealing Clause. — All orders, rules, regulations and other
issuances, or parts thereof, which are inconsistent with this Act, are hereby repealed or
modified accordingly,

Approved,