REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
‘Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

House pin No.__ 7662

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

‘The Philippines is among the world’s mineral-rich countries, ranking fifth for gold, nickel,
copper, and chromite deposits. Moreover, it is home to the largest copper-gold deposit in the world.
There is an estimated $840 billion worth of untapped mineral wealth in the country as of 2012,
according to the Mines and Geosciences Bureau.

Considering such facts, Government must ensure that the exploitation of these valuable
resources yield the greatest possible benefit in favor of the Filipino people. Stricter mining laws and
regulations should be enforced in order to maximize profitability for this country’s mining industry
trade of our mineral resources that has, time and again, cost us a great deal of

Caveat venditor. It is now time to strengthen R.A. No. 7942, otherwise known as The
Philippine Mining Act of 1955 to include mandatory inspections of all raw mineral materials by the
Mines and Geosciences Bureau to determine whether more valuable mineral elements are present in
such materials. This is to ensure that we are not getting shortchanged in the conduct of mineral
trade. Furthermore, this proposed measure also seeks to ensure that all raw mineral ores are
processed domestically, with an end goal of increasing domestic revenue and encourage
investments on the mineral processing sector.

It is the hope of this representation that this proposed measure will pave the way towards a
more robust mining sector in the Philippines, providing more jobs and generating more profit that
shall aid the continuous development of the country.

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

.

YA. ALEJANO.
Representative
Magdalo Parsa sa Pilipino Party-List


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City
SEVENTEENTH CONGRESS

7662

House Bill No.

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
PROVIDING FOR THE MANDATORY DOMESTIC PROCESSING OF ALL MINERAL
ORES BEFORE EXPORTATION AND CERTIFICATION SHOWING PRESENCE OR
LACK OF RARE EARTH ELEMENTS, AMENDING FOR THE PURPOSE REPUBLIC
ACT NO. 7942 OTHERWISE KNOWN AS THE PHILIPPINE MINING ACT OF 1955 AND
FOR OTHER PURPOSES

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

SECTION 1. Section 3(y) of Republic Act No. 7942, otherwise known as the Philippine
Mining Act of 1955 is hereby amended as follows:

(¥) Mineral processing means the milling, benefication or upgrading of ores or
minerals and rocks or by similar means to convert the same into marketable products,
AND/OR THE PROCESS OF SEPARATING COMMERCIALLY VALUABLE
MINERALS FROM THEIR MINERAL ORES.

SEC. 2. Section 53 of Republic Act No. 7942, otherwise known as The Philippine Mining
Act of 1995 is hereby amended to read as follows:

Section 53. Ore Transport Permit. A permit specifying the origin AND

DESTINATION and quantity of non-processed mineral ores or minerals shall be
required for their transport. Transport permits shall be issued by the mines regional
director who has jurisdiction over the area where the ores were extracted. In the case
of mineral ores or minerals being transported from the small-scale mining areas to

the custom mills or processing plants, the Provincial Mining Regulatory Board
concerned shall formulate their own policies to govern such transport of ores produced
by small- scale miners. The absence of a permit shall be considered prima facie
evidence of illegal mining and shall be sufficient cause for the Government to confiscate
the ores ‘or minerals being transported, the tools and equipment utilized, and the
vehicle containing the same. Ore samples not exceeding two metric tons (2
m4.) to be used exclusively for assay or pilot test purposes shall be exempted from

such requirement.


SEC. 3. Section 55 of Republic Act No. 7942, otherwise known as The Philippine Mining
Act of 1955 is hereby amended to read as follows:

Section 55. Minerals Processing and Minerals Processing Permit. ANY MINERAL
ORES EXTRACTED UNDER THE PROVISIONS OF THIS ACT SHALL BE
PROCESSED WITHIN THE COUNTRY. NO PERSON GRANTED WITH

PERMIT FOR PURPOSES OF MINING OPERATION SHALL BE ALLOWED TO
EXPORT ‘THE UNPROCESSED MINERAL ORES TO OTHER COUNTRY FOR
PURPOSES OF TRADING MINERAL PRODUCTS WITHOUT A CERTIFICATION
OF COMPLIANCE SHOWING PRESENCE OR LACK OF RARE EARTH

ELEMENTS OR OTHER VALUABLE MINERALS.

ANY PERSON EXPORTING THE UNPROCESSED MINERAL ORES

WITHOUT THE AFOREMENTIONED CERTIFICATE OF COMPLIANCE SHALL,
UPON CONVICTION, BE IMPRISONED FROM SIX (6) YEARS AND ONE (1)
DAY TO TWELVE (12) YEARS AND PAY THE FINE AMOUNTING TO TWICE
THE VALUE OF THE SEIZED MINERAL ORES. IN ADDITION, THE CARGO.

CONTAINING THE UNPROCESSED MINERAL ORES SHALL BE
CONFISCATED IN FAVOR OF THE STATE. IN THE CASE OF

ASSOCIATIONS, PARTNERSHIPS, OR CORPORATIONS, THE PRESIDENT AND
EACH OF THE DIRECTORS IN SHALL BE RESPONSIBLE FOR THE ACTS
COMMITTED BY SUCH ASSOCIATION, PARTNERSHIP, OR CORPORATION.

No person shall engage in the processing of minerals without first securing a
minerals processing permit shall be for a period of five (5) years renewable for like
periods but not exceed to exceed a total term if twenty-five (25) years. In the case of
mineral ores or minerals produced by the small-scale miners, the processing thereof

as well as the licensing of their custom mills or processing plants shall continue to be
‘governed by the provisions of Republic Act No. 7076

SEC. 4. Implementing Rules and Regulations.—The Secretary of the Department of
Environment and Natural Resources shall promulgate the necessary rules and regulations for the
effective implementation of this Act.

SEC. 5. Repealing Clause.— All laws, decrees, orders, rules and regulations, or other
issuances or parts thereof inconsistent with the provisions of this Act are hereby repealed.

SEC. 6. Separability Clause.—Should any jision herein be declared unconstitutional,
the same shall not affect the validity of the other provisions of this Act.

SEC. 7. Effectivity—This Act shall take effect fifteen (15) days after its publication in the
Official Gazette in at least two (2) newspapers of general circulation.

Approved,