1
operation of any mining claim in any part of the Philippines shall be filed with the
2
Secretary for investigation. The protest or adverse claims shall be accompanied by
3
a/l plans, documents,
and other data upon which the protest or adverse claim is
4
based.
5
6
All protest and adverse claims shall be filed no later than fifteen(15) days after the
7
date of the first publication of the application for mineral agreement. No protest or
8
adverse claims shan be entertained after the lapse of fifteen (15) days from first
9
publication. When a protest or adverse claim is filed, all proceedings in connection
10
with
the
application
for
mineral
agreement,
financial
or technical
assistance
11
agreement, or permits shall be stayed until the controversy is settled and decided by
12
the Secretary.
13
14
Section
83. Priority
Rights.-
In case of conflict of mining claims, priority of
15
recording shall determine the riglli to the area, notwithstanding any defect in form or
16
technicality. Provided that in case of discrepancy, between the area described in tile
17
application for mineral agreement, financial or technical assistance agreement or
18
permit and the actual area occupied in the ground, the former shall prevail subject to
19
any question as to having complied with all tile requirements under this law.
20
21
Section
84. Appeals>
Any party not satisfied with the decision or order of
22
the Secretary may, within fifteen(15) days from receipt thereof, appeal to the Office of
23
the President.
24
25
In all cases, the decision of the Secretary shall be executory notwithstanding any
26
appeal unless the President of the Philippines, the Court of Appeals or the Supreme
27
Court direct otherwise and the prevailing party has the right to immediately take
28
possession
and conduct exploration and mining operations as the case may be,
29
provided that the prevailing party shall deposit in escrow in a Government bank an
30
amount to be fixed by the Secretary for the protection of tile interest of the party to
31
whom the mining claims are ultimately awarded.
32
33
A petition for review by certiorari and questions of law may be filed by tile aggrieved
34
party before tile Court of Appeals within thirty(30) days from receipt of the decision or
35
order of the President of the Philippines. Any party not satisfied with the decision or
36
order of the Court of Appeals may file an appeal before the Supreme Court within
e
37
thirty(30) days from receipt thereof.
38
Page 34 of 45


2
Chapter XIX
FISCAL PROVISIONS
3
4
Section
85. Government Share.-
The total Government share in mineral
5
agreements
shall be the excise tax on mineral products as provided for in the
6
National Internal Revenue Code and a royalty equivalent to three percent(3%) of the
7
gross value of minerals sold for mineral agreements and other types of permits and
8
five
percent(5%)
of the gross value of minerals sold for financial
or technical
9
assistance agreements.
10
11
Provided
that
in the
case of limestone,
pozzolan,
shale
or silica
for
cement
12
manufacture and other industries similarly situated in which local prices are not set,
13
tile gross value shall be the higher of the values determined
by a private licensed
14
Mining Engineer with more than five(5) years experience in
enterprise or mine
15
valuation and the Mines and Geosciences Bureau.
16
17
Section
86.
Government
Share
in
Other
Mineral
Agreements.-
18
Government share in co-production and joint venture agreements, in addition to that
19
provided in Section 70 of this law shall be negotiated by the Secretary with the
20
Contractors concerned provided that the Government shall earn a reasonable rate of
21
return on its investments.
22
23
Section
87. Occupation
Fees.-
There shall be collected from the holders
24
of mineral
agreements,
financial
or technical
assistance
agreements
or permits
25
occupation
fees
in
amounts
to
be
prescribed
by
the
Secretary
under
the
26
Implementing Rules and Regulations of this law.
27
28
29
30
3'1
The Secretary is authorized to increase the fees provided herein, subject to existing
laws, rules and regulations
32
Section
88. Manner of Payment of Occupation
Fees.-
The fees shall be
paid on the date the mineral agreement, financial or technical assistance agreement
or permit is registered with the appropriate mines regional office and on the same
date every year thereafter. It shall be paid to the Treasurer of the Municipality or City
where the onshore mining areas are located or to the Secretary in case of offshore
mining areas. If the fee is not paid on or before tile due date, a penalty of twenty five
percent(25%) shall be imposed.
33
34
35
36
37
38
Page 35 of 45


1
Section
89.
Mine
Waste
and
Tailings
Fees.-
A semi-annual
fee
to be
2
known
as Mine Waste
and Tailings
Fee is hereby
imposed
on all operating
mines.
3
This
fee
shall
accrue
to a reserve
fund
to be used
exclusively
for
payment
for
4
damages
to:
5
(a) Lives and personal
safety
6
(b) Lands,
agricultural
crops,
and
forest
products,
marine
life
and
quatic
7
resources,
cultural
resources,
and
8
(c) Infrastructure
and the revegetation
and rehabilitation
of silted farm
lands
9
and other
areas
devoted
to
agriculture
and
fishing
caused
by mining
10
pollution
11
This
is in addition
to the suspension
or closure
of the activities
of the Contractor
at
12
any time and the penal sanctions
imposed
upon the same.
13
The
Secretary
is authorized
to increase
mine wastes
and tailings
fees when
public
14
interest
so requires.
15
16
Section 90. lFiling Fees and Other
Charges
- The Secretary
is authorized
'17
to charge
reasonable
filing fees or other charges
as he may prescribe
in accordance
18
with the Implementing
Rules and Regulations.
19
20
Chapter
XX
21
INCENTIVES
22
23
Section 91. Mining Claims
-
Except
as provided
herein, no other
taxes,
24
fees
or
imposts
may
be imposed
by the
National
and/or
Local
Governments
on
25
mining
claims
involving
mineral
agreements,
financial
or
technical
assistance
26
agreement
and permits.
27
28
Section 92. Environmental Protection and Enhancement Structures and
29
Equipment. - Environmental
Protection
and Enhancement
structures
and equipment
30
such as but not limited to tailings
dams,
sedimentation
ponds,
pipelines,
flumes
and
31
similar
structures
and equipment
as may be determined
by the Secretary
shall not be
32
subject
to real property
or other taxes.
33
34
Chapter
XXI
35
GROUNDS
FOR CANCELLATION,
REVOCATION
AND TERMINATION
36
37
Section 93. Fixed
Causes
of Cancellation
-
The
causes
of cancellation
S
38
provided
for in this law shall
be considered
as inherent
in all mineral
agreements,
39
financial
or technical
assistance
agreements
or permits
or other rights hereunder
and
Page 36 of 45


~
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
no new cause or modification of such causes shall apply to any mineral agreement,
financial or technical assistane agreement or permit existing at the time such new or
modified causes are made effective.
Section
94.
Violation
of
Terms
and
Conditions
of
Agreements
and
Permits-
Gross violation of the terms and conditions of the mineral agreement,
financial or technical assistance agreement or permit shall be sufficient ground for
the cancellation of the same.
Section
95. Falsehood
and Omission
of Facts - All statements made in the
application
for mineral agreement, financial or technical assistance agreement or
permit shall be considered as conditions and essential parts thereof and any false
statement or omission of facts which may alter, change or affect susbtantially the
facts set forth in said statements shall be a ground for the termination of any mineral
agreement, financial or technical assistance agreement or permit.
Chapter
XXII
PENAL
PROVISIONS
Section
96. False
Statements
-
Any person who knowingly presents or
causes
to
be presented
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,
mineral agreement/s, financial or technical assistance agreement/s or permit/s shall
be guilty of perjury if such statement is made under oath and shall be punished, upon
conviction,
in accordance with the provisions of the Revised Penal Code. If the
statement is not under oath, he shall be punished, upon conviction with a fine of Ten
Million Pesos(P 10,000,000).
Section
97. Intentional
Overlapping
- Any person who shall intentionally
overlap any mining claim knowing fully well that the area is already covered by
another valid and subsisting mining claim shall be guilty of falsification of public
documents punishable under the Revised Penal Code.
Section
98. Destruction
of Claim
Monuments
and
Marks
-
Any person
who
willfully
and
maliciously
defaces,
removes
or
disturbs
any
stake,
post,
Ir
monuments,
boundary line or any other mark lawfully placed on mining claims or
destroys, injures or defaces any rules or notices required under this law shall be
Page 37 of 45


1
2
3
4
punished,
upon
conviction,
by a fine
of One
Million
Pesos(P
1,000,000)
besides
paying
compensation
for the
expenses
incurred
in replacing
the defaced,
altered,
removed
or disturbed
stakes,
posts, monuments,
boundary
lines, notices
or any other
,
mark.
5
6
Section
99. Theft of Minerals -
Any
person
who,
without
a
mineral
7
agreement,
financial
or
technical
assistance
agreement
or
permit
shall
extract,
8
remove,
and
or
dispose
of
minerals
for
commercial
purposes
belonging
to
the
9
Government
or
from
a
mining
claim
held
by
other
persons
without
the
written
10
permission
of such
claim
owner
shall
be deemed
to have
stolen
the
ores
or the
11
producst
therefrom
from the mines or mills. He shall, upon conviction,
be imprisoned
12
from
six(6)
months
to six(6)
years
or pay a fine of double
the value
of the minerals
'13
stolen
or both
at the
discretion
of 'the Court,
beside
paying
compensation
for the
14
minerals
extracted
and
disposed
of, the
royalty,
taxes,
and
the
damage
caused
15
thereby.
16
17
Section 100. Fraudulent Conveyance of Mining Interest -
Any
person,
18
who, with intent to gain knowingly
sells, transfers
or conveys
any false mining claim/s
19
or any
false
right,
title,
or interest
in such
mining
claims
which
were
not actually
20
located
on the ground
and do not exist as such claims
shall be guilty
of estafa
and
21
shall be punished
upon conviction,
in accordance
with the provisions
of the Revised
22
Penal
Code.
23
24
Section "101.Salting of Minerals and Mineral Lands -
Any person
who
25
knowingly
places
or deposits
or becomes
accessory
to the placing
or depositing
of
26
any mineral
in any land for the purposes
of "salting"
or misleading
other persons
as
27
to the value
of the
mineral
deposits
in such
land or who,
knowingly
co-mingles
or
28
causes
to be co-mingled
samples
of minerals
with any other substance/s
whatsoever
29
which
increases
the value or in any way changes
the nature
of said minerals
for the
30
purpose
of deceiving,
cheating,
or defrauding
any person,
shall be punished, upon
31
conviction,
by imprisonment
not exceeding
a period of thirty(30)
years besides
paying
32
compensation
for the damage
which have been caused thereby.
33
34
Section 102. Pollution from Mine Wastes and Mill Tailings - Any person
35
who
willfully
causes
or permits
sludge
or tailings
and other
mine and mill wastes
to
36
accumulate
in or flow from
his mineral
agreement,
financial
or technical
assistance
37
agreement
or permit
so as to cause
danger,
injury or obstruction
to any public
road,
IE
38
rivers
or streams
or other
public
property
shall be punished,
upon
conviction,
by a
Page 38 of 45


L
'I
1
2
3
4
5
6
7
8
9
10
1'1
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
fine
not
exceeding
Five
Million
Pesos(P
5,000,000.00)
or
imprisonment
not
exceeding
six (6) years or both at the discretion of the Court besides
paying
compensation for the damage thereby.
Section
103.
Interference
with
Mine Water
Rights
-
Any person who
wilfully takes water from a mine, mill, dam, reservoir or from any other source of mine
water or prevents the water from 'entering said mine or mill, dam, reservoir or any
other source of mine water or in any way interferes in the full enjoyment of water
rights previously granted and lawfully held by another person, shall be punished,
upon conviction, by a fine not exceeding Five Million Pesos(P 5,000,000.00)
or
imprisonment not exceeding six(6) months or both at the discretion of the court
Section
104.
Destruction
of Mining
Structures
-
Any person who
willfully
destroys
or
damages
structure
in
or
in
Contract
Areas
for
mineral
agreements, financial or technical assistance agreements or permits or on mill sites,
shall be punished,
upon conviction, by imprisonment not to exceed six(6) years
besides
paying compensation
for the damages which
may have been caused
thereby.
Section
105. Mine Arson -
Any person who willfuly sets fire to any mine,
workings,
mill or fittings shall
be punished, upon conviction, by imprisonment in
accordance
with
the
provisions
of the
Revised
Penal
Code
besides
paying
compenstion for the damage caused thereby.
Section
106.
Willfull
Damage
to a Mine -
Any person who willfully
damages,
unlawfully causes water to flow into a mine, or obstructs any shaft or
passage
to
a
mine, or
renders
useless,
damages
or destroys
any
machine,
equipment,
apparatus, rope, chain or any other thing used in a mine, shall
be
punished,
upon conviction, by imprisonment not exceeding six(6) years, besides
paying compensation for the damage caused thereby.
Section
107. Illegal
Obstruction
to Government
Officials
-
Any person
who willfully obstructs, harasses, and/or threatens the Secretary or his authorized
representatives in the performance of duties pursuant to this law, shall
be punished,
upon conviction,
by a fine not exceeding One Million Pesos(P 1,000,000) or by
imprisonment not exceeding one(1) year or both at the discretion of the Court.
Section
108.
Illegal
Obstruction
to Contractor
or Permittee
-
Any
person who, without justifiable cause prevents or obstructs a Contractor or Permittee
Page 39 of 45












,.
1
2
3
4
5
6
Section 128. Effectivity Clause.- This Act shall take
effect
fifteen(1S)
days
¥
following
its publication
in the
Official
Gazette
or in a major
daily
newspaper
of
general
circulation
in the Philippines.
Approved.
Page 45 of 45
r: