EXPLANATORY NOTE
This  bill  seeks  to  protect  the  rights  of  indigenous  peoples  affected  by  any  mining
operation  in  ancestral  domains,  amending  for  the  purpose  Republic  Act  (RA)  No.  7942,
otherwise known as the "Ph/.//.pp/.ne M/.n/.ng Act of 7995," which was enacted to promote the
rational  exploration,  development,  utilization  and  conservation  of  all  mineral  resources  in
public and private lands within the country including ancestral lands.
After  the  approval  of  RA  7942,  Republic  Act  No.  8371,  otherwise  known  as  the
"/ndt.genous  Peap/es Ri.ghfs Act," was  enacted  to  protect the  rights  of  Indigenous  Cultural
Communities  (lccs) and  Indigenous  Peoples  (lps) to  their ancestral  domains  and  ensure
their  economic,  social  and  cultural  well  being,  among  others.    Section  46  of the  said  Act
pr?v'ldes,. .ln par+, tha_1 :Th9_4ne_e_stral  Domains Office  ... shall  issue,  upon the free and  prior
irformed  conspn_t of_the  IC_Cs/lps concerned,  certification  prior to the  grant of any lic6nse,
lease or permit for the exploration of natural resources affecting the interests of ldcs/lps dr
their ancestral domains."
Thus,  the  Certification  Precondition  must be secured from  the  National  Commission
on  Indigenous  Peoples  (NCIP)  before  all  departments  and  governmental  agencies  shall
issue, renew or grant any concession, license or lease to any project proponent or enter into
any product-sharing  agreement with  any party who  plans to  utilize  natural  resources within
the  ancestral  domains.     Therefore,  without  the  free  and  prior  informed  consent  of  the
concerned  Indigenous  Peoples  community  and  appropriate  Certification  Precondition  from
the NCIP, no permit should be issued by the DENR and other concerned agencies.
The  said  provision  of  the  Indigenous  Peoples  Rights  Act,  however,   has  created
confusion among the stakeholders in the mining sector because the Philippine Mining Act of
1995 and its implementing guidelines do not explicitly provide for such requirement.
Further,  Section  17 of Republic Act No.  7942  provides that royalty payment shall  be
agreed  upon  by the parties which shall form  part of a trust fund for the socioeconomic well-
being  of the  lccs  or lps without indicating  the exact amount to  be  paid  by the contractor,
permit holder or mining operator.   This particular provision has likewise led to disagreements
concerning the royalty payment.
It is therefore  necessary to  make the appropriate amendments to the  Mining Act of
1995 to protect the rights of the indigenous peoples and ease the confusion  regarding said
provisions.
In view of the foregoing, approval of this bill is earnestly recommended.


NINETEENTH CONGRESS                  )
REPUBLIC OF THE PHILIPPINES    )
First Regular session                            )
HOUSE OF REPRESENTATIVES
Introduced by Representative Rufus a. Roclriguez
House Bill No,I RE0
AN ACT
PROTECTING   THE   RIGHTS   OF   INDIGENOUS   PEOPLES   AFFECTED   BY   MINING
OPERATIONS IN ANCESTRAL  DOMAINS,  AMENDING  FOR THE  PURPOSE  REPUBLIC
ACT NO. 7942, OTHERWISE KNOWN AS THE ``PHILIPPINE MINING ACT OF 1995"
Be it ep?ct.ed by the Senate and  House of Representatives of the Philippines in Congress
assembled:
SECTION  1.    Section   16  of  Republic  Act  No.  7942,  otherwise  known  as  the  "Ph/./I.pp/.ne
Mf.ni'ng Act of 7995," is hereby amended to read as follows:
``SEC.  16.    Opening  Of Ancestral  Lands for  Mining  Operations. -No
ancestral  land  shall  be opened for mining  operations without the  FREE AND
prior  INFORMED  consent  of the  indigenous  cultural  community  [concerned]
AND A CERTIFICATION PRECONDITION  ISSUED FOR THE PURPOSE BY
THE     NATIONAL     COMMISSION     ON     INDIGENOUS     PEOPLES,     AS
SPECIFIED UNDER SECTION 59 0F REPUBLIC ACT NO.  8371.''
SEC. 2.  Section 17 of the same Act is also hereby amended to read as follows:
"S;EC.17.   Royalty Payments for Indigenous Cultural Communities. -
In the event of an agreement with an indigenous cultural community pursuant
to  the   preceding   section,   [the]  A  royalty  payment  upon   utilization  of  the
minerals shall be [agreed upon by the parties] GIVEN TO THE INDIGENOUS
CULTURAL  COMMUNITY  BY THE  CONTRACTOR,  PERMIT  HOLDER,  OR
MINING OPERATOR.   The said royalty SHALL BE FIVE PERCENT (5°/o) OF
THE   GROSS   OUTPUT   AND   shall   form   part   of   a   trust   fund   for   the
socioeconomic well-being of the indigenous cultural community."
SEC. 3.   This Act shall take effect fifteen (15) days following its publication in at least two (2)
national newspapers of general circulation.
Approved,
2