Republic of the Philippines
House of Representatives

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO, 2712

Introduced by Rep. Luisa Lloren Cuaresma
Lone District of Nueva Vizcaya

EXPLANATORY NOTE

Republic Act No. 7942, otherwise known as the Philippine Mining of 1995, provides
for several ways by which mining companies can be granted mining concessions such as the
Financial and Technical Assistance Agreement (FTAA) and the Mineral Agreement as stated
in Sections 27 and 33 of RA 7942.

However, it is observed that these contracts are only entered into between mining
company and the officials of the Mines and Geosciences Bureau, the DENR and the Office of
the President. No legislative franchise is required of mining large-scale mining projects despite
the fact that these projects have large-scale environmental impacts. Mining adversely affects
no only the environment but the community where it is located. It would seem that the mining
law was written to avoid the requirement of a legislative franchise to make it much easier for
miners to avoid the scrutiny of the members of Congress and make the approval process for
mining contracts easier to navigate.

As I have stated during my privilege speech sometime in August of 2016, “If the
telecommunications industry, which does not cause too much environmental impact; which
does not result in contamination of water sources; and which does not cause massive
deforestation, requires a legislative franchise to operate, then with more reason that we should
impose the same requirement to an inherently destructive industry like mining.”

This bill is part of the legislative commitments and environmental advocacy of this
representation and the present administration, meant to provide scrutiny for mining projects
and protection of our environment.

With this, support for this measure is certainly sought.

fis Ceheymy
ISA sn ain, Kees


Republic of the Philippines
House of Represeutatines

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 2712

Introduced by Rep. Luisa Lloren Cuaresma
Lone District of Nueva Vizcaya

AN ACT REQUIRING A LEGISLATIVE FRANCHISE AS A PRE-REQUISITE TO
THE ISSUANCE OF A MINERAL AGREEMENT OR FINANCIAL AND
TECHNICAL ASSISTANCE AGREEMENT (FTAA) FOR ANY MINING PROJECT
IN THE PHILIPPINES, AMENDING FOR THIS PURPOSE SECTIONS 27 AND 33
OF RA 7942 OTHERWISE KNOWN AS THE MINING ACT OF 1995.

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

SECTION 1. — Section 27 of Republic Act No. 7942 is hereby amended to read as
follows:

“Section 27. Eligibility — A qualified person may enter into any of the three (3)
modes of mineral agreement with the government for the exploration, development and
utilization of mineral resources after the passage of a legislative franchise granting said
qualified person the franchise to undertake exploration, development and utilization of mineral
resources in the Philippines: Provided, That in case the applicant has been in the mining
industry for any length of time, he should possess a satisfactory environmental track record as
determined by the Mines and Geosciences Bureau and in consultation with the Environmental
Management bureau of the Department. Any mineral agreement entered into by any
government office without such legislative franchise shall be void.”

SECTION 2. - Section 33 of Republic Act No. 7942 is hereby amended to read as
follows:
“Section 33. Eligibility — Any qualified person with technical and financial

capability to undertake large-scale exploration, development, and utilization of mineral
resources in the Philippines may enter into a financial or technical assistance agreement with


the Government after the passage of a legislative franchise granting said qualified person the
franchise to undertake large-scale exploration, development, and utilization of mineral
resources in the Philippines. Any financial or technical assistance agreement, exploration
permit, entered into by any government office without such legislative franchise shall be void.”

SECTION 3.— Repealing Clause — Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent
with any provision of this Act is herby amended or modified accordingly.

SECTION 4. Effectivity Clause - This Act shall take fifteen (15) days following its
publication in the Official Gazette or in at least two (2) newspaper of general circulation.

Approved,