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HOUSE OFREPRESENrArIvEs (= DATE July 14, 2025 0
Quezon City o TIME 1:35 Sem
‘4 BY
TWENTIETH CONGRESS
First Regular Session \

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HOUSE BILL No. 1852

Introduced by AKBAYAN Representatives Percival Cendajia, Atty. Jose Manuel “Chel”
Diokno, and Dadah Kiram Ismula and Dinagat Islands Representative Kaka Bag-a0

AN ACT
REGULATING THE RATIONAL EXPLORATION, DEVELOPMENT AND
UTILIZATION OF MINERAL RESOURCES, REPEALING FOR THIS PURPOSE
REPUBLIC ACT NO. 7942 OR THE “PHILIPPINE MINING ACT OF 1995”, AND
APPROPRIATING FUNDS THEREFOR

Explanatory Note

The Philippines is the most disaster-prone country in the world.

Despite its minimal contributions to global GHG emissions at 0.40 percent, the Philippines ranked
first among 193 countries with the highest disaster risks in the 2022 World Risk Index.' According
to the Philippine Development Plan 2023-2028, between 2011 and 2021, the country incurred
PHP673.30 billion worth of damage and losses due to tropical cyclones alone.? These are expected
to increase reaching up to 7.6 percent of the country’s gross domestic product by 2030 and 13
percent by 2040. As alarming as it sounds, climate change alone could worsen poverty and
inequality if no adequate action were taken immediately.

‘Ate. K. barr, S. Kc, o 2022, WodetakRapr 2022 Foci: iphakzaon. Bachar: Binds Entei Ha
remiss Hinson Law af Peace en Arma Cnt, a Urey Beto. Mpesiableeh sttechenenicIc3c
26a5/WorldRiskReport-2022_ Online.

* The Social Sector (Le., Housing, Education, Health and Nutrion, Culture, and Social Protection) contributed to 45.21% of the total
‘amount ofthe loss and ). This was folowed by the Productive Sector (Le., Agriculture and Fisheries, Industry, Trade, and
Te ae. Power Supply, Watar Supply, Iigaton Syston,
Governance & DRRM, Environment, Livek
ond etl pact Assume) corte lest oe county lows ana damage om

‘Telecom, Flood Control) at 11.13%. The
Employment, Macroeconomic Assessment
2011 to 2024 at only 10.00%,

° World Bank Group. 2022. Philippines Country Climate and Development Report. CCOR Series,
‘itps:/Wwww worldbank.orglen/country/philippines/pub'ication/philippines-county-climate-and-development report


One of the sectors that impacts our country’s climate change vulnerability is the mining industry.

According to the National Economic Development Authority (NEDA), the mining sector is
contributing to the country’s gross domestic product (GDP) at only 0.5 percent in 2023, developing
only 0.17 percent of the country’s mineral deposits. Further, employment in mining and quarrying
remains low at 212,247 or 0.45 percent of total employment in the country.

Meanwhile, mining sites have been reported to have caused serious environmental destruction and
suffering over the years. Land destruction, subsidence and water loss, pollution of water and soil,
siltation of rivers, serious health problems affecting local communities, loss of flora, fauna,
biodiversity, and food insecurity, dislocation of indigenous people from ancestral land and
traditional livelihoods, and human rights violations have been documented in various case studies.*

Clearly, the environmental, human, and economic costs of the export-oriented mining industry in
the country ofiset its miniscule benefit in terms of taxes, fees, and royalties as well as employment
generation and mineral production, among others.

‘Thus, the perennial recommendation of various stakeholders has been the development of a new
mining policy that should support the Filipino people’s efforts towards industrialization, ensuring
the creation of jobs, food security, a stable economy, mitigation of environmental degradation, and
environmental rehabilitation.

This is echoed in the Philippine Development Plan 2023-2028 as the current government is
“exploring opportunities to increase value addition in the mineral industry while ensuring
macroeconomic stability and accelerating climate action.”* Moreover, the NEDA is proposing a
suitable tax regime for extractive industries which will institutionalize the Extractive Industries
Transparency Initiative (EITI) principles, and develop downstream metallic and non-metallic
mineral processing to bolster the expansion of domestic manufacturing industries focused on green
technologies.”

The Philippine Mineral Resources Act is the policy solution to a greener mining industry.

It proposes to manage our minerals for national industrialization, prohibit mining in areas that are
sources of food and water, and place greater safeguards for affected communities. It will replace
the 1995 Mining Act and instead of exporting as raw materials, minerals mined in the Philippines
will be processed in the country to boost downstream industries, modernize agriculture, and
improve our manufacturing sector.

* Case Study on the Impacts of Mining and Dams on the Environment and Indigenous Peoples in Benguet, Cordilea, Philippines
by the Cordilera Peoples Alliance

* Ii.

National Economic Development Authority, Philippine Development Plan (PDP) 2023-2028 httpslipdp.neda. gov. phiwp-
‘contentiuploads/2023/07/Chapter-15.pdf

7 Unlocking Potential: PH Mining Sector Polsed to Drive Green Tech, High-Quality Job Growth. NEDA.
https:neda gov. ph/unlocking-potential-ph-mining-sector-poised-1o-crve-green-ech-high-qualtyjob-growth-neda/ May 10, 2024.


The proposed legislature shall declare as “‘no-go zones” critical watersheds, critical habitats,
climate disaster-prone areas, geo-hazard areas, key biodiversity areas, prime agricultural lands, old
growth, natural or secondary forests, watershed forest reserves, wildemess areas, among others.
Furthermore, it would require mining corporations to set a sizeable rehabilitation fund after
mining.

It would also honor the right of indigenous peoples to self-determination, the right of local
communities to participation, and right of local government to autonomy. It would also consider

human rights abuses committed by mining corporations as grounds for suspension or cancellation
of mining licenses.

The Philippine Mineral Resources Act is a critical piece of legislation that will not only help our
economy, protect our environment, and promote the welfare of our local communities. It would
also help mitigate the climate change impact of extractive industries and contribute to a disaster-
resilient Philippines.

In this light, the passage of this bill is eamestly sought.

thas. Q
PERCIV: ANA

Akbayan Representative
JOSE EO DADAQJKIRAM ISMULA
“C I. DIOKNO Akbayan Representative
Akba\ah Representative
J. BAC

Dinagai is Representative


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILLNO. 1852

Introduced by AKBAYAN Representatives Percival Cendafia, Atty. Jose Manuel “Chel”
Diokno, and Dadah Kiram Ismula and Dinagat Islands Representative Kaka Bag-ao

AN ACT
REGULATING THE RATIONAL EXPLORATION, DEVELOPMENT AND
UTILIZATION OF MINERAL RESOURCES, REPEALING FOR THIS PURPOSE
REPUBLIC ACT NO. 7942 OR THE “PHILIPPINE MINING ACT OF 1995”, AND
APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Short Title. - This Act shall be known as the “Philippine Mineral
Resources Act.”

SEC. 2. Declaration of Policy. — It is enshrined in the Philippine Constitution that the
State owns all the mineral, coal, natural gas and petroleum resources within its national
territory, its terrestrial, fluvial and marine domains, including its territorial seas, the seabed, the
subsoil, the insular shelves, and other submarine areas within its archipelagic baselines. The
appropriate utilization, sound management of the country’s finite mineral resources and the
enjoyment of the benefits of such is exclusive to the Filipino people. These resources shall in
no way be alienated.

The Philippine mining industry shall be developed within the framework of national
industrialization through the nationalization of the industry towards self-sufficiency. The
Pursuit of mining industry development is integrative to the country’s priorities in achieving
genuine agrarian reform, the modernization of its agricultural base, and rural development.

‘The State shall take the lead in mining industry development that shall be pursued
according to a National Industrialization Program (NIP) and Mining Plan (MP) that adheres to
the medium- and long-term needs of the country, the advancement of the industry’s technology
with emphasis on existing indigenous knowledge, research and development, the right to self:
determination of the indigenous and Moro peoples and the generally accepted principles as

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embodied in the International Covenants on Civil and Political Rights, on Economic, Social
and Cultural Rights, the UN Declaration on the Rights of Indigenous Peoples and other
international accords on human rights, labor rights, the rights of women and children, and the

protection and preservation of the environment, of which the State is a party.

Consistent with the policy of the State to protect and advance the right of the people to

a balanced and healthful ecology in accord with the rhythm and harmony of nature, it shall be
the objective of the State to:

A

B.
Cc

ns

Maintain peace and order, protect life, liberty and property and promote the general
welfare;

Advance the medium- and long-term needs of the Philippines;

Encourage the advancement of the industry’s technology with emphasis on existing
indigenous knowledge, research and development;

. Protect and advance the right of the people to a balanced and healthful ecology in accord

with the rhythm and harmony of nature;

. Value the dignity of every human person and guarantees full respect for human rights

and affirms the role of women in nation building, promotes women’s empowerment,
and pursues equal opportunities for women and men through equal access to, control
over, and ownership of resources;

. Promote social justice in all phases of national development;

Recognize and promote the rights of indigenous cultural communities within the
framework of national unity and development and protect the right to self-determination

of the indigenous and Moro peopl

|. Promote social justice and climate justice in all phases of national development, which

is consistent with a 1.5°C pathway towards carbon neutrality by 2050 or sooner;
Promote just transition of the workforce and the creation of decent work and quality
jobs in accordance with nationally defined development priorities;

Promote climate-smart and judicious stewardship of mineral resources;

Support a just minerals transition in the shift to renewable energy;

Protect the integrity of all ecosystems towards increasing the ability of the people to
adapt to the adverse impacts of climate change;

|. Protect and promote the right to health of the people and instill health consciousness

among them;


N. Pursue an independent foreign policy. In its relations with other states the paramount
consideration shall be national sovereignty, territorial integrity, national interest, and
the right to self-determination;

O. Develop a self-reliant and independent national economy effectively controlled by
Filipinos;

P. Ensure the autonomy of local governments;

Q. Give highest priority to the enactment of measures that protect and enhance the right of
all the people to human dignity, reduce social, economic, and political inequalities, and
remove cultural inequities by equitably diffusing wealth and political power for the
common good;

R. Encourage non-governmental, community-based, or sectoral organizations that
promote the welfare of the nation; and

S. Adopt and accept the generally accepted principles as embodied in the International
Covenant on Civil and Political Rights, International Covenant on Economic, Social,
Cultural Rights, UN Declaration on the Rights of Indigenous Peoples, UN Convention
on Biodiversity and other international accords on human rights, labor rights, the rights
of women and children, and the protection and preservation of the environment, of
which the State is a party.

SEC. 3, National Industrialization Program, — The State shall formulate a National
Industrialization Program pursuant to the principles of agricultural modernization,
development of industrial and manufacturing industries, and rational, sustainable, and
equitable development of the national economy. The State shall prioritize the development of
mineral resources that are needed for national development and for the creation of domestic
processing capacity for industrial metals, the integration of agricultural modernization, and
downstream industries that will generate employment. The State shall likewise promote the
development of mineral processing to maximize the benefits or value-added from mining.
Towards this end, it shall encourage the establishment and development of manufacturing
plants that will utilize locally processed mineral products as well as mining firms that will
process mineral ores first for domestic purposes and before exporting them to other countries,

The National Industrialization Plan to be implemented by the State shall be
economically-viable, ecologically-sound, and in aid to the nation’s efforts to attaining food
self-sufficiency, rural development and national industrialization. The National
Industrialization Program shall provide a comprehensive economic framework for genuine
national development, including agricultural modernization, public infrastructure in energy,

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transportation, communication, and downstream mineral industries. The National
Industrialization Program pursuant to the principles of climate justice should result in concrete
changes in the mining industry, specifically with regard to energy consumption, resource
utilization, emissions, and inclusive development.

SEC. 4. Guiding Principles. — The judicious stewardship of our mineral resources, as

well as its exploration, development and utilization shall comply with the following principles:

‘A. The current export-orientation of mining is hereby reversed and a domestic needs-
based development of the industry shall be pursued by the State as a step towards
achieving genuine economic development;

B. The mining industry shall be geared towards national industrialization and shall be
built for the production of raw materials such as base metals, basic chemicals and
petrochemicals needed by the basic, medium and heavy industries to produce as
much consumer, intermediate and capital goods with the country's stock of finite
mineral and non-mineral industrial raw materials and in the process provide jobs to
the country's vast human resources. The extraction of energy transition minerals
(ETMs) shall also be pursued in support of the country’s just transition to renewable
energy;

C, The community shall actively participate in the stewardship of mineral resources.
Community-based initiatives shall be encouraged and supported;

D. The State shall provide the appropriate support and protection to Filipino
corporations to further develop and increase their participation in the industry. All
mining industry investments shall be mutually-beneficial and help achieve the
specific target and goals of the National Industrialization Program. To come up with
the large capital requirement for mining, the State must use local sources such as
but not limited to the granting of incentives and financial aid to local private sector
investors, re-channelling of government budget allocations for foreign debt
payments and military expenditures, and the proceeds from the government shares
of the Malampaya Natural Gas Project, and/or similar projects;

E, The State shall allow, in exceptional cases, foreign corporations to invest in the
mineral industry. Based on the National Industrialization Program and the country's
capability and capacity, the government must identify the mineral areas where
foreigners can help and invest subject to rigorous screening and strict regulations
as provided in this Act and related laws. The participation of foreign companies in
the critical stages of minerals extraction and processing shall be in accordance with

4


a mandatory program or agreement for technology transfer and equity shares that
do not exceed 40 percent of the full capital requirements: Provided, That
capital accumulation and reinvestment within the country shall be primarily
encouraged over profit repatriation by the foreign companies and that foreign
mining corporations, their principals, local firms and conduits that have a bad track
record in the Philippines are banned from investing in the country;

. The development of the mining industry should primarily be geared to serve the

needs of the country's agrarian reform program and help modemize Philippine
agriculture. Mining shall be prohibited in prime agricultural lands;

i. Inland and water use, the production of sufficient food free from pollution towards

food security shall always be the priority;

|. Mining shall also be prohibited in areas specified for food production, fisheries

development, watershed and heritage areas, sacred sites of indigenous people, and
in small island ecosystems. Mining in environmentally-critical areas such as small
island ecosystems, primary forests and environmentally sensitive watersheds such
as, but not limited to, the areas surrounding the Verde Island Passage connecting
and surrounding the provinces of Batangas, Marinduque, Occidental Mindoro,
Oriental Mindoro and Romblon, shall be banned. Dumping of mine wastes and
tailings to rivers, lakes and seas are prohibited. Additionally, off-site effects of
mining shall not have disadvantageous effects on downstream areas;

Mining shall also be prohibited in areas declared by local government units as No-
Mining Zones; in prime agricultural lands, irrigable and irrigated lands as defined
by Republic Act 9700, and, in areas wherein cultural properties are found, as
enumerated under Republic Act 10066;

Long-term mining development shall be programmed by the State in accordance
with the country's availability of resources, capability and well-being of the people,
technological capacity and people's acceptability. The right of Muslim Filipinos or
the Moro people and indigenous peoples to self-determination and ancestral domain
shall be recognized and their collective property rights are guaranteed by this Act;

. Job security, adequate and equal wages, benefits, and safe working conditions for

mine workers shall be ensured in state- and privately-owned mining corporations,
Their right to organize and form their own associations, to collective bargaining
and to strike shall be upheld. The State shall strictly prohibit forced and child labor


in the industry. It shall likewise disallow gender discrimination in mining

operations;

.. Small-scale mining operations shall be supported and regulated by the state. The

state will encourage the formation of cooperatives among small-scale miners and
provide financial and technical support to develop the labor-intensive and upgrade
the backward technologies into a more efficient and less environmentally
destructive mining process. Whenever small-scale mining activities are stopped,
alternative and sustainable livelihood shall be provided to the small-scale miners;

|. In no instance shall the Armed Forces of the Philippines (AFP), the Philippine

National Police (PNP) and private security and paramilitary groups be used to
coerce or force the entry and protection of mining operations;

I. Mining industry research and development shall focus on harnessing more

economically-efficient and less environmentally-destructive methods. The
advanced technologies from other countries that are proven to be appropriate locally
shall be adopted in the industry;

. All mining operations shall be strictly regulated to ensure the domestic processing

of mineral ores up to the secondary and tertiary stages of industrial production to
develop our own basic and medium industries. Recycling programs and substitution
in the use of minerals shall be incorporated in the overall plan of mining
development to reduce mine waste and pollution, and mining rehabilitation
techniques. Indigenous technologies that are relevant and appropriate, particularly
with respect to the domestic processing of minerals shall be promoted, harnessed,
expanded and upgraded;

. Ecologically-sound practices at all stages of mining shall be promoted. Mining

technologies such as open-pit mining and submarine mine tailing disposal methods
that are banned abroad or proven inappropriate in countries like the Philippines
must and shall all be banned. Environmental standards shall be set to ensure the
protection and efficient utilization of the country's mineral resource base.
Ecological considerations in mining development shall be given due emphasis and
attention to substantially eliminate destructive effects that certain mining industrial
processes might have on the people's health and the environment. Monitoring
mechanisms with strong participation from the local communities will be instituted;


Q Areas affected by mining shall be rehabilitated, including abandoned mines.
Violators shall be strictly punished and made to pay heavy compensation to the
State and the affected communities.

R. The exploration, development and utilization of natural resources must comply with

the principles of intergenerational responsibility;

S. Mining agreements shall not be considered as vested rights, but, are mere privilege

that the State can grant or revoke anytime for a legitimate purpose.
CHAPTER I
SCOPE AND GENERAL PRINCIPLES

SEC. 5. Scope. —This Act shall govern the ownership, management and governance of
both metallic and non-metallic ore minerals onshore and offshore, as well as quarry resources,
sand and gravel, guano, and gemstones, and the conservation, exploration, development,
utilization, processing and transportation thereof. The ownership, management and
governance of petroleum, natural gas and coal shall be governed by special laws. Offshore
mining shall also be governed by special laws.

This Act shall cover onshore and offshore, large-scale and small-scale mining
operations in the country, including mining projects in ancestral domains in accordance to the
existing national and international policies on our indigenous peoples.

SEC. 6. Ore minerals form part of the country’s irreplaceable and non-renewable
natural wealth and capital. The conservation of our mineral wealth is a paramount public
interest and mineral resources shall be utilized in a rational manner for national and local
development as specified by law and consistent with the National Industrialization Program
and the just transition to renewable energy. The economic benefits derived from mining shall
be equitably distributed by, among others, prioritizing development for local communities and
all other stakeholders including neighboring communities directly affected by mining
operations.

SEC. 7. The State shall have primary role, responsibility and concen in the
management, conservation, utilization, and development of the mining industry and shall
ensure the people's participation in policy making and implementation of the same at all levels
of government. Mining shall be a shared concer and responsibility of the national and local
governments, corporations, and the communities affected by the exploration, development, and
utilization of mineral resources.

SEC. 8. The State shall implement specific programs to lend empowering support to
small-scale operators in order to enable them to become legitimate small-scale mining

7


operators. It shall likewise accord support to communities dependent on small-scale mining
whose operations shall strictly adhere to the provisions of this law.

SEC. 9. The State shall support indigenous cultural communities/ indigenous peoples
(ICCs/IPs) in developing capacities to effectively exercise their rights and responsibility,
including their priority rights in the harvesting and utilization of natural resources in their
ancestral domain and their right to self-determination. ICCs/IPs have the shared responsibility
with the State to manage the mineral resources in their respective ancestral domains. They shall
be free from external interference, manipulation, threats, intimidation, coercion and other
analogous acts.

SEC. 10. Mineral resources development, utilization and processing shall be reserved
for Filipino citizens and for Filipino corporations. Exploration shall be undertaken directly by
the State for the benefit of the nation.

SEC. 11. The State shall also give priority to the re-mining and recycling of mineral
resources as the first option instead of opening new mines to maximize the remaining mineral
resources from the wastes of previous mine projects subject to the environmental, social and
economic costs, following the principles of circularity. The rehabilitation of abandoned mines
shall also be given importance.

SEC. 12. The State shall ensure the fullest compliance of all government and corporate
entities in and on the closure of mines, the rehabilitation or restoration of the immediate
environs of each mining project or activity in the country as provided by law. The rehabilitation
of abandoned mines shall also be given importance.

SEC. 13. The State shall support small-scale Filipino mining corporations and mining
cooperatives to venture into large-scale mining projects through Joint-Venture Agreements and
invest on mutually-beneficial grounds that will push forward the National Industrialization
Program.

SEC. 14. ~ Mineral resource extraction shall be allowed based on the National
Industrialization Plan and the requirements of a just transition to renewable energy as provided
in this Act. The sharing of profits from mining activities, including the anticipated
environmental, cultural and social costs on the affected local communities of each mining
project, should far outweigh ecological and social benefits and costs from other land uses. The
anticipated cost of environmental, cultural and social impacts on the affected local
communities, which shall at all times be prevented or mitigated through the allocation of
sufficient funds for this purpose. In mining projects with foreign participation, a just return of
investment scheme for the foreign entrants into the industry shall be prescribed by law.

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CHAPTER Ill
DEFINITION OF TERMS

SEC. 15. Definition of terms. — As used in this Act:

A. Abandonment refers to the contractor's act of leaving the entire mining lease in a
state that has not met agreed rehabilitation standards;

B. Acid mine drainage refers to the dissolution, mobilization and transportation of
toxic metals from rocks arising from the chemical reaction of acid-generating
minerals in rock and waste materials that possess high permeability to air, rainfall
and other water inflows when land is opened up for mining that initiates the
chemical reaction, resulting to a perpetual machine of acid generation;

C. Ancestral domain refers to all areas generally belonging to indigenous cultural
communities/indigenous peoples (ICCs/IPs) comprising the lands, inland waters,
coastal areas, and natural resources therein, held under a claim of ownership,
occupied or possessed by ICCs/IPs, by themselves or through their ancestors,
communally or individually since time immemorial, continuously to the present
except when interrupted by war, force majeure, deceit, stealth or as a consequence
of government projects or any other voluntary dealings entered into by government
and private individuals or corporations, and which are necessary to ensure their
economic, social and cultural welfare. It shall include ancestral lands, forest,
pasture, residential, agricultural, and other lands individually owned whether
alienable and disposable or otherwise; hunting grounds, burial grounds, areas of
worship, bodies of water, mineral and other natural resources, and lands which may
no longer be exclusively occupied by ICCs/IPs but from which they traditionally
and historically had access to for their subsistence and traditional activities,
particularly the home ranges of ICCs/IPs_ who are still nomadic or shifting
cultivators;

D. Ancestral lands refer to lands occupied, possessed and utilized by individuals,
families and clans who are members of ICCs/IPs since time immemorial, by
themselves or through their predecessors-in-interest, under claims of individual or
traditional group ownership, continuously, to the present except when interrupted
by war, force majeure or displacement by force, deceit, stealth, or as a consequence
of government development aggression projects and other dealings entered into by
government and private individuals/corporations including, but not limited to,
residential lots, rice terraces or paddies, forests, swidden farms and tree lots;

9


. Beneficiation refers to a process wherein a large fraction of the waste material is

removed from the mineral ore;

. Buffer Zones refer to identified areas that are outside the boundaries of, and

immediately adjacent to protected areas designated by law that need special

development control in order to avoid or minimize harm to the said protected areas;

.. Carrying capacity refers to the capacity of the natural and human environments to

accommodate and absorb changes without giving rise to conditions of ecological
instability and degradation;

. Certificate of Ancestral Domain Title (CADT) refers to a title formally recognizing

the rights of possession and ownership of ICCs/IPs over their ancestral domains
identified and delineated in accordance with this law;

Certificate of Ancestral Lands Title (CALT) refers to a title formally recognizing
the rights of ICCs/IPs over their ancestral lands;

Closure of mines refers to the permanent termination of operations at a mine or mine
processing site after its complete decommission;

. Consent refers to the voluntary assent of the landowner or those who have been in

open, continuous, and exclusive possession of the land for more than ten (10) years
in good faith, or thirty (30) years in bad faith, free from any external manipulation,
interference and coercion, and obtained after fully disclosing the intent, scope, and
the positive and negative impacts of the activity, in a language and process
understandable to the said landowner or occupant;

. Contract area refers to the area delineated as specifically provided by a mineral

agreement for the development or utilization of mineral resources found therein;

. Critical watershed refers to a drainage area of a river system, lake or water reservoir

that supports any existing and proposed hydroelectric power, domestic water
supply, geothermal power and irrigation sources and works, that needs immediate
rehabilitation and protection to minimize soil erosion, improve water yield and
prevent possible flooding. The term shall also include areas which are traditional
areas for human settlements, land-uses, or sea-uses which are representative of
cultures, or human interaction with the environment especially when it has become
vulnerable under the impact of irreversible change;

. Critical habitats refer to areas where species and/or subspecies naturally occur or

that have naturally established its population that are crucial to the survival of other
species and are essential for its conservation;

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©. Cultural sites refer to sites that bear a unique or exceptional testimony to a cultural
tradition or to a civilization which is living or which has disappeared or, directly or
tangibly associated with events or living traditions, with ideas, or with beliefs, with
artistic and literary works of outstanding universal significance;

P. Customary laws refer to a body of written or unwritten rules, usages, customs and
practices that are traditionally recognized, accepted and observed by respective
ICCs/IPs and local communities;

Q. Decommissioning refers to the activity or process that commences after the
cessation of prospecting activities or mineral production, including metallurgical
plant production. It involves, among others, the removal of unwanted infrastructure,
making excavations and waste repositories safe and stable; and surface
rehabilitation with a view to negate any adverse environmental impacts remaining
after cessation of mineral production. It includes the after-care or maintenance that
may be needed;

R. Downstream industries refer to mining activities that cover minerals processing,
refining, manufacturing of intermediate and capital goods and marketing of such;

S. Ecological profile refers to a geographic-based instrument for planners and
decision-makers which present an evaluation of the environmental quality and
carrying capacity of an area and measures the specific interactions that will be
affected by any and all mining operations;

T. Energy transition minerals (ETMs), or simply transition minerals, are those which
are required for the just minerals transition;

U. Exploration refers to all methods of searching or prospecting for mineral resources
for the purpose of determining the existence, extent, quantity and quality thereof,
which may include but are not limited to seismic, gravity, magnetic,
electromagnetic, radar, induced polarization, radio-wave and electro-geochemical;

V. Extraction refers to ore-removal activities that take place at the mine site itself;

W. Free, prior and informed consent (FPIC) refers to the consensus of all members of
the ICCs/IPs to be determined in accordance with their respective customary laws
and practices, free from any external manipulation, interference, coercion, and other
analogous acts and obtained after fully disclosing the intent and scope, including
the positive and negative impacts, of all the activities, in a language and process
understandable and acceptable to the community;


X. Indigenous peoples/Indigenous cultural communities (IPs/ICCs) refer to a group of
people or homogenous societies identified by self-ascription and ascription by
others, who have continuously lived as organized communities on communally
bounded and defined territory, and who have, under claims of ownership since time
immemorial, occupied, possessed and utilized such territories, sharing common
bonds of language, customs, traditions and other distinctive cultural traits, or who
have, through resistance to political, social and cultural inroads of colonization,
non-indigenous religions and cultures, became historically differentiated from the
majority of Filipinos. ICCs/IPs shall likewise include peoples who-are regarded as
indigenous on account of their descent from the populations which inhabited the
country, at the time of conquest or colonization, or at the time of inroads of non-
indigenous religions and cultures, or the establishment of present state boundaries,
who retain some or all of their own social, economic, cultural and political
institutions, but who may have been displaced from their traditional domains or who
may have resettled outside their ancestral domains. They are peoples who have a
spiritual relationship with the land;

Y. Indigenous political structure refers to organizational and cultural leadership
systems, institutions, relationships, patterns and processes for decision-making and
participation as identified by ICCs/IPs such as, but not limited to, Council of Elders,
Council of Timuays, Bodong Holders, and any other tribunal or body of similar
nature;

Z. Joint Venture Agreement refers to an agreement wherein the government and a
qualified person organize a joint-venture company, with both parties having equity
shares, to develop and manage mineral resources. Aside from earnings on the
equity, the Government shall be entitled to a share in the output computed at a
certain percentage mutually agreed upon by and beneficial to both parties;

AA. Just transition refers to the transformation of the economic system as well as
the energy system/s that support it which both must be founded on ecological and
social wellbeing. It also includes promoting the welfare of workers affected by the
transition to clean energy;

BB. Just minerals transition refers to the judicious, efficient, and democratic use of
energy transition minerals required of the shift to renewable energy;

CC. Key biodiversity areas refer to places of international importance for the
conservation of biodiversity;


Bauwnun

DD. Large-scale mining refers to mining in areas with more than twenty (20)
hectares, using mechanized tools and equipment, requiring considerable capital and
having large-scale environmental, social, cultural and economic impacts with
regard to resource use and/or consumption;

EE.Mineral Agreement refers to a contract entered into by the government, in behalf of
the State, and a private Filipino person, granting such person/s the privilege to mine
a specific contract area;

FF. Mineral resource refers to any concentration of minerals/rocks with potential
economic value;

GG. Mineral processing refers to the milling, beneficiation or upgrading of ores or
minerals and rocks or by similar means to convert the same into marketable
products;

HH. Minerals refer to all naturally occurring inorganic substances in solid, gas,
liquid, or any intermediate state excluding energy materials such as petroleum,
natural gas, radioactive materials, and geothermal energy;

|. Mine development refers to the preparation of the mine site for production by shaft
sinking or pit excavation, building of access roads, and constructing of surface
facilities;

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Mine wastes and tailings refer to rock materials from surface or underground
mining and milling operations with little or no economic value to the generator of
the same;

KK. Mining activity refers to any or all of the following activities: exploration,
extraction, utilization, processing, transportation and other activities conducted for
the same;

LL.Mining area refers to a portion of the contract area which has been identified by the
contractor wherein actual mining operations shall be conducted;

MM. Mining operations refer to any and all of the mining activities involving the acts
of exploration, feasibility, development, utilization, and processing;

NN. National park refers to an area of the public domain that is a natural wilderness
that is scenic or historic in character and has been withdrawn from settlement,
occupancy, or any form of exploitation except in conformity with an approved
management plan and set aside exclusively to conserve the area or preserve the
scenery, the natural and historic objects, wild animals, and plants therein mainly for
the purpose of biodiversity conservation and/or human enjoyment;

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00. Native title refers to pre-conquest rights to lands and domains which, as far back
as memory reaches, have been held under a claim of private ownership by ICCs/IPs,
have never been public lands and are thus indisputably presumed to have been held
that way since before the Spanish Conquest;

PP. Natural forest refers to a forest composed of indigenous, native or endemic trees,
with high biodiversity, whose structure, functions, and dynamics have been largely
the result of natural succession processes;

QQ. Natural park refers to a relatively large area not materially altered by human
activity where extractive resource activities are not allowed. These parks are
maintained to protect outstanding natural and scenic areas of national or
international significance for scientific, educational and recreational use;

RR. Open-pit mining refers to a process of extracting metal ores and minerals that
lie near the surface by removing the overlying material and breaking and loading
the ore. Also known as open- cast mining and open-cut mining;

SS. Ore refers to a material that contains minerals in such quantities that can be mined
and worked commercially to extract that mineral. The mineral is usually contained
in chemical combination with some other element in addition to various impurities;

TT-.Pollution control and infrastructure devices refer to infrastructure, machinery,
equipment and/or improvements used for the impounding, treating, or neutralizing,
precipitating, filtering, conveying and cleansing mine industrial waste and tailings
as well as reducing or eliminating hazardous effects of solid particles, chemicals,
liquids or other harmful by- products and gases emitted from any facility utilized in
mining operations for their disposal;

UU. Processing refers to all the treatment an ore receives after its extraction and
beneficiation, which involves changes in the chemical nature of the mined minerals;

VV. Progressive rehabilitation refers to a rehabilitation that involves the staged
treatment of disturbed areas during mining exploration, construction/development
and extraction operations;

WW. Protected areas refer to identified portions of land and water set aside by reason
of their unique physical and biological significance that are managed to enhance the
biological diversity and protected against destructive human exploitation;

XX. Quarry resources refer to any common rock or other mineral substances as the
Director of the Mines and Geosciences Bureau (MGB) may declare to be quarry
resources such as andesite, basalt, conglomerate, coral sand, diatomaceous earth,

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diorite, decorative stones, gabbro, granite, limestone, marble, marl, red burning clay
for potteries and bricks, rhyolite, rock phosphate, sandstone, serpentine, shale, tuff,
volcanic cinders, and volcanic glass;

YY. Quarrying refers to the process of extracting, removing and disposing quarry
resources found on or underneath the surface of private or public land;

ZZ.Recycling refers to the treating of used or waste materials through a process of
making them suitable for beneficial use and for other purposes, and includes any
process by which solid waste materials are transformed into new products that may
be used as raw materials for the production of other goods or services:

AAA. Rehabilitation refers to the process by which the land will be returned to a form
and productivity in conformity with a prior land use plan, including a stable
ecological state that does not contribute substantially to environmental
deterioration;

BBB. Remediation refers to the removal of pollution or contaminants from
environmental media for general protection of the area and the people;

CCC. Remining refers to the process of maximizing and recovering the remaining
minerals from the rejects or wastes of previous mines and mining operations;

DDD. Restoration refers to the act of bringing back the original, or the closest possible
state, of the forest and biodiversity, with the productivity matching that of the
original ecosystem;

EEE. Self-determination refers to the right of a people to determine its own political
destiny as defined by existing laws. The right to self-determination includes the
right of ICCs/IPs to choose their form of government within existing national
borders to achieve a greater degree of autonomy to help preserve their culture,

ancestral domain, and way of life;

FFF. Small-scale mining refers to mining activities which rely heavily on manual
labor using simple implements and methods and do not use explosives or any heavy
mining equipment, primarily engaged in for sustainable living. Impacts from small-
scale mining shall not be large-scale, otherwise, the mining activity shall be defined
as large-scale mining;

GGG. Strategic minerals refer to minerals needed for national industrialization,
including rural development. It shall also include energy transition minerals

required for the country’s just transition to renewable energy;


HHH. Tailings Disposal System or Tailings Placement refers to the method wherein
the mining wastes are dumped, placed, or disposed;

IIL. Traditional small-scale mining refers to small-scale mining using traditional means
and without the use of chemical or mechanized extraction and separation means,
methods, implements, and/or equipment;

JJ. Watershed system refers to an area consisting of the watershed and its divide
including its connection from the headwaters to the reef or a land area drained by a
stream or a fixed body of water and with tributaries having a common outlet for
surface run-off. It is the system by which the mining-affected communities shall be
determined following the drainage of a stream or fixed body of water with
tributaries having a common outlet for surface runoff;

CHAPTER IV
OWNERSHIP AND GOVERNANCE

SEC. 16. Ownership of mineral resources. — The State owns the mineral resources,
facilities and technology within its national territory and shall utilize and manage these for the
benefit of the Filipino people on the national and local levels. Consistent with the State's
recognition of the indigenous and Moro peoples’ right to self-determination, government shall
ensure that the management of mineral resources shall be primarily for the benefit of the local
communities in whose territory the same shall be found. Any minerals extracted shall be used
for local industries consistent with the National Industrialization Plan and the country’s just
transition to renewable energy. The State may directly undertake the development, utilization
and processing of mineral resources or enter into mineral agreements with eligible parties
pursuant to the provisions of this Act.

SEC. 17. Consent in Private Lands. ~The MGB shall not allow entry into any private
lands for the purposes of exploration activities without the written consent of the land owner,
possessor or occupant and payment of just compensation for the use of property. Neither shall
the MGB allow entry into any land under dispute.

SEC. 18. Mineral resources in Ancestral Domains. — The mineral resources within
the ancestral domains/ancestral lands are the collective private property of the indigenous
cultural communities/indigenous peoples (ICCs/IPs), as provided by law. The management of
such mineral resources shall build on the indigenous knowledge systems and practices of the
ICCs/IPs. A non-member of ICCs/IPs concerned may be allowed to take part in the
development and utilization of the natural resources for a period of not exceeding twenty-five
(25) years renewable for not more than twenty-five (25) years: Provided, That a formal and

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written agreement is entered into with the ICCs/IPs concerned or that the community, pursuant
to its own decision making process, has agreed to allow such operation: Provided, finally, That
the NCIP may exercise visitorial powers and take appropriate action to safeguard the rights of
the ICCs/IPs under the same contract.

SEC. 19. Free and Prior Informed Consent and Certification Precondition. — No
mining activity shall be conducted within or covering ancestral domains or lands without
securing the Free and Prior Informed Consent from the concemed ICCs/IPs and Certification
Precondition issued by the National Commission on Indigenous Peoples (NCIP), certifying
therein that the concerned ICCs/IPs gave their consent to that particular project after
undergoing the Free and Prior Informed Consent (FPIC) process.

In instances when there are questions on the legality or validity of the issued free, prior,
and informed consent before the NCIP, mining operations shall not be allowed to be conducted
in the ancestral domains or lands of the ICCs/IPs without the final resolution of such question
on the legality or validity of the FPIC.

SEC. 20, When ancestral domain is yet to be formally recognized. - Mineral resources
within identified ancestral domains delineated by the ICCs/IPs in accordance with existing law,
rules and regulations, and/or by virtue of historic rights and self-delineation shall be managed
by the ICCs/IPs concerned whether these domains are covered with Certificates of Title or not.

SEC. 21. ICCY/IPs displaced from ancestral domain due to mining. — The native title
over an ancestral domain subsists notwithstanding the fact that the ICCs/IPs who hold such
title have been displaced therefrom or that such ancestral domains have been occupied by other
persons or corporations under another claim of title emanating from the State. In such cases,
ICCs/IPs shall continue to own such mineral resources.

SEC. 22. Authority of the Mines and Geosciences Bureau. — The Mines and
Geosciences Bureau (MGB) shall be a scientific research institution under the Department of
Environment and Natural Resources (DENR), primarily conducting the research and
development of mineral resources and mining technologies, and the training of local
communities, local government units and indigenous peoples. It shall also regulate the
operations of persons involved in all mining activities. It shall also work with the Multi-
Sectoral Mineral Council in the monitoring of mining activities, as provided in this Act.

SEC. 23. Regional Offices. - The MGB shall have as many regional offices in the
country as may be established by the DENR Secretary, upon the recommendation of the MGB
Director.


SEC. 24. MGB as repository of information. — The MGB shall be the central repository
of information regarding mineral lands, resources, permits, studies and other information
relevant to the operation of a mine, including the necessary requirements that a contractor is
obliged to submit. All other governmental offices and other bodies created under this Act shall
furnish copies to the MGB of all other information related to mining.

SEC. 25. Access to Information. — All contractors for mineral permits and agreements
shall provide information to the MGB and the affected indigenous peoples, local communities,
and local government units. The following information of full disclosure, among others, shall
be required:

A. the methods and processes of mining to be used by the contractor;

B. the environmental and social risks;

C. the ownership structure of the contractor/company; and

D. the sources of financing, including loan agreements.

All information and documents related to the proposals, mineral agreements, permits
and mining operations shall not be considered confidential. The refusal to grant access to the
aforementioned information shall be cause for the disqualification of prospective proponents,
or the cancellation of mineral agreements and permits.

The MGB, being the repository of all relevant information under this Act is mandated
to grant the public access to any information in its custody. The refusal or unnecessary delay
by officers of the MGB to provide information shall be punishable by a fine of fifty thousand
pesos (Php 50,000.00) for every instance of refusal or unnecessary delay. Information
requested by indigents or marginalized sectors shall be provided to them for free.

SEC. 26. Recording System. — There shall be established a national and regional filing
and recording system. A mineral resource database system shall be set up in the MGB which
shall include, among others, a mineral rights management system.

SEC. 27. Publication. - The MGB shall publish annually a mineral gazette of
nationwide circulation containing, among others, a current list of mineral rights, their locations
specified in the appropriate map, mining rules and regulations, other official acts affecting
mining, and other relevant information to mineral resources development. A publication fund
shall be included in the regular budget of the MGB.

SEC. 28. Exploration activities. — Exploration of mineral resources shall be undertaken.
by the State, through the MGB, or by private entities through a Joint Venture Agreement. All
exploration activities shall be strictly monitored by the MGB to ensure that mineral resources


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are not extracted before the corresponding environmental, social, indigenous and community
benefit assessments have been done.

All results of exploration of mineral resources shall be submitted and shared with the
State through the MGB.

The State shall also carry out human resource training and development, scientific
research and technological application and development in geological baseline surveys of
minerals and mineral activities.

SEC. 29. Inventory of mineral resources. — The MGB shall identify and provide an
inventory of all the available mineral resources, including the mine tailings and wastes within
the country. It shall submit to the DENR a report which shall contain the following information:
the classification of minerals;
the quality and grade of the ore;
the potential mine life;

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the geological description of the area;
the economic viability of mine tailings; and

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all other relevant information necessary for potential mineral investments.

The process for mineral exploration and the approval for any mining permit shall not
commence without the said inventory.

SEC. 30. Strategic minerals. — The MGB shall conduct researches and studies prior to
any mining operations to identify strategic mineral resources. Mineral resources needed for
local industries, agricultural modernization, rural development, and just transition shall be
opened to mining subject to the implementing rules and regulations of this Act.

SEC. 31. Demarcation of mineral areas. ~ The MGB shall demarcate the boundaries
of all areas identified as containing commercial quantities of mineral resources.

SEC. 32, Information on watershed continuums, ~ The baseline information on all
watersheds in the country shall be required and made accessible to the public in all forms,
including the websites of the MGB and the National Water Resources Board (NWRB). No
mining permit shall be issued without this baseline information.

SEC. 33. Affected local community and local government unit, —For the purposes of
this Act, the affected local community and local government unit are defined in relation to any
area which has the potential to be negatively impacted by mining operations in the demarcated
area, The local communities and the local government units therefore, are those who are
dependent on the watershed eco-system and its resources.


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SEC. 34. Establishment of the Multi-Sectoral Mineral Council. — A Multi-Sectoral
Mineral Council shall be established for the purposes of this Act. There shall be as many Multi-
Sectoral Mineral Councils as there are watershed continuums with demarcated mineral areas.

SEC. 35. Powers and Functions of the Multi-Sectoral Mineral Council. — The
Council shall have the following powers:

A. Define a review period, for each mineral area, where comments on mining

proposals shall be submitted to the MGB;

B. Call for public hearings to present and formally discuss mining applications and
gather options and public feedback or comments before a project should be
approved by the MGB;

. Determine whether or not mining operations shall be allowed;
. Deliberate on proposals for mineral agreements;
Monitor the conduct of mining operations;
Establish its internal rules of procedure which are not contradictory to this Act;
. Provide public comment on all public submissions and justify their decision; and

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. Recommend the cancellation of a permit.

SEC. 36. Composition of the Multi-Sectoral Mineral Council. ~ The Multi-Sectoral

Mineral Council shall be composed of:

A. a representative from the MGB, who may come from the concerned Provincial
DENR Office;

B. one (1) representative from each of the affected provincial governments or
independent component cities or highly urbanized cities (LGUs);

C. representatives from an established municipal-level
peoples/community/sectoral/ICCs or IP organizations affected by the proposed
mining project and whose numbers shall be equal to or as many as the number of
those representing the affected LGUs; and,

D. two (2) representatives from non-government organizations of at least five years (5)
of prior existence,

‘The MGB shall be the convenor of the Council. No mining operations shall be allowed

without the Council having been properly convened. [Change during TWGs)

SEC. 37. Areas open to mining. — The power to determine whether or not the land

where mineral resources are found shall be opened to mining is vested in the Council. Areas
may only be opened to mining upon the two-thirds vote of all the members of the Council

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pursuant to the guidelines provided by this Act. In determining whether or not such area shall
be opened, the following shall be taken into consideration:
A. MGB report on the exploration conducted;
. Existence of downstream industries for the mineral resources;
. Potential environmental, public health and cultural impacts;
Conflict and risk assessment;
. Potential economic benefits of the development and utilization of the minerals;
Carrying capacity and the ecological profile of the area;
. Existing and alternative land uses of the area; and

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. Local government land use plan.

No mining application shall be allowed by the Council unless an environmental
economic audit or resource valuation of the proposed mining area has been conducted applying
acceptable valuation standards. This audit or resource valuation shall be conducted in
coordination with a multi-sectoral group of experts and community stakeholders. It shall
include the determination of the expected economic retums and the potential negative impacts
from mining. A detailed study must mention the biodiversity present in the mining claim and
the impact of mining operations on the environment, the possible environmental degradation
and the attendant loss of subsistence resources. There must be mention of existence of sacred
areas or areas of cultural significance and address the impacts of resource exploitation on
indigenous and local communities.

Inno case shall the Council open the following areas to mining:

A. Areas declared by the Local Government Units as No-Mining Zones as specified
by local ordinances and other issuances;

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. densely populated areas, especially residential areas;

C. prime agricultural lands, irrigable and irrigated lands as defined by Republic Act
9700;

. lands subject for agrarian reform;

areas with potential for acid mine drainage;

critical watersheds and critical habitats;

geohazard and climate disaster-prone areas;

. small island ecosystems;

cultural sites, which may include, but not limited to, sacred sites and burial grounds;

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traditional swidden farms and hunting grounds;

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K. cultural property enumerated under Republic Act 10066, or the “National Cultural
Heritage Act of 2009”;

L. key biodiversity areas;

M. high conflict areas;

N. the Province of Palawan pursuant to Republic Act 7611, or the “Strategic
Environmental Plan for Palawan Act”;

. in military and other government reservations, except upon prior written clearance
by the government agency concerned;

P. near or under public or private buildings, cemeteries, archaeological and historic
sites, bridges, highways, waterways, railroads, reservoirs, dams or other
infrastructure projects, public or private works including agricultural crop
plantations;

Q. in areas covered by small-scale miners as defined by law unless with prior consent
of the small-scale miners, in which case a royalty payment upon the utilization of
minerals shall be agreed upon by the parties, with said royalty forming a trust fund
for the socioeconomic development of the community concerned;

R. old growth, natural or primary forests, watershed forest reserves, wildemess area,
mangrove forests, mossy forests, national parks, protection _ forests,
provincial/municipal forests, parks, greenbelts, game refuge and bird sanctuaries
and their respective buffer zones as defined by existing laws and ordinances; and

S. in areas expressly prohibited by law or ordinances.

The determination whether or not the same are absolutely closed to mining shall not
only be limited to the existence of a law or ordinance declaring it as protected areas, but also
to the actual use of said area.

SEC. 38 Manner of voting by the Council for opening an area to mining. The MGB
shall convene the Council once the inventory of the existing minerals, the formulation of a
mine plan, and the existence of the baseline information of the particular watershed area are
submitted. The Council shall thereafter convene their respective constituents to determine
whether or not their respective territories shall be opened for mining.

Sections 26 and 27 of the Republic Act 7160 or the “Local Government Code of 1991”
‘on consultation and consent shall be strictly adhered to. Local government units at all levels
shall conduct mandatory public hearings with the affected local communities, to be carried out
within their respective territories and presenting those enumerated under Section 40 of this Act.
Local government units, ICCs/IPs, NGOs and people’s organizations, shall ensure that the

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MGB shall comprehensively explain the goals and objectives of the project or program, its
negative and positive impact upon the people and the community in terms of environmental or
ecological balance, and the measures that will be undertaken to prevent or minimize the adverse
effects thereof.

Thereafter, the approval of the respective Sanggunian of the affected local government
units shall be required in accordance to the sentiment of the peoples of the local government
unit as a result of the consultations conducted: Provided, That the affected local government
unit representatives shall meet and relay the decision of their respective constituents to the
provincial government/independent component citics/highly urbanized cities. The
provincial/component city/highly urbanized city goverment representative shall sit in the
Council and shall carry the result of the vote of all the affected local government units within
the province resulting from the process as provided in this Act. There must be a two-thirds vote
among all the affected LGUs for the purpose of opening a particular area for mining in its
jurisdiction. Failure to reach a two-thirds vote for opening shall mean that the area is closed to
mining. All the proceedings shall at all times be recorded.

In case there are affected indigenous cultural communities/indigenous peoples, they
shall also bring the community's vote to the Council after undergoing their own processes in
accordance with their respective indigenous political structure, free from any extemal
manipulation, interference, coercion and other analogous acts, and obtained after fully
disclosing the intent and scope, including the positive and negative impacts of the activity, in
a language and process understandable and acceptable to them.

Any member of the community may file a protest with the Council during any point in
the period of consultations and deliberations for the Council's consideration.

SEC. 38, Pool of consultants. ~ There shall be a pool of independent consultants that
shall assist the local government units, local communities or ICCs/IPs with regard to the
technical aspects of mining, Ensure that consultants include experts in gender-related concems,
representatives from women’s organizations, and women from the local community.

SEC. 39. Publication, posting and radio announcement requirements. — Any decision
of the Council shall be published by the MGB in the local newspaper in the local language,
shall be announced on local radio programs for not less than six (6) weeks and notices shall be
distributed widely in communities. The notice containing relevant information shall likewise
be posted in conspicuous places for the information of the general public and shall be
announced during the local market day.

CHAPTERV

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MINERAL AGREEMENTS

SEC. 40. Modes of Mineral Agreement. — The following are the mineral agreements
as herein defined;

A. Mineral production sharing agreement - an agreement where the Government grants to
the contractor the exclusive right to conduct mining operations within a contract area
and shares in the gross output. The contractor shall provide the financing, technology,
management and personnel necessary for the implementation of this agreement;

B. Co-production agreement - an agreement between the Government and the contractor
wherein the Government shall provide inputs to the mining operations other than the
mineral resource; and

C. Joint venture agreement- an agreement where a joint-venture company is organized by
the Government and the contractor with both parties having equity shares. Aside from
earnings in equity, the Government shall be entitled to a share in the gross output.

In no case shall Financial or Technical Assistance Agreements, or any other similar
agreements, contracts, or executive issuances granting license or permission to explore,
develop or utilize mineral resources be awarded to foreign entities or persons.

SEC. 41. Eligibility. — Only Filipino citizens or corporations sixty percent (60%) of
whose equity is owned or controlled by such citizens shall be allowed to conduct the
development, utilization and processing of mineral resources within the country.

SEC. 42. Identification of mining projects. - With the vote of all the members of the
Council to open areas for mining operations, the MGB shall prepare the necessary information
sheets on the said area for potential investments. The MGB shall call for proposals to develop
the mining area based on the National Mining Plan (NMP).

SEC. 43. Pre-screening of mining proposals. - Mining proposals shall be pre-screened
by the MGB according to the National Industrialization Plan and a just minerals transition and
upon the submission of interested parties of the following:

‘A. demonstration of financial capability;

B. proven social and environmental track record, including those of its officers and

directors;
. clear corporate structure and ownership;
). proof of physical office and operations of the proponent within the Philippines;
. identification of potential investors;

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. mining project feasibility and operational work plan to include proposed operation,
mitigation and prevention methods and/or equipment;

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G. capacity to process minerals;

H. intent to develop downstream industries and contribute to local community
development; and

I. submission of the Environmental and Social Impact Assessment and Mitigation Plan.

‘The Council shall fix the minimum capitalization that any bidder must satisfy based on
its determination of the expected economic returns and the potential negative impacts from
mining, upon reference to an independent study proposing such minimum capitalization.

SEC. 44. Environmental and Social Impact Assessment and Mitigation Plan. - The
contractor shall submit an Environmental and Social Impact Assessment and Mitigation Plan
(ESIAMP) containing the means, methods, processes and schedule by which the contractor
shall conduct its operations and mitigate negative environmental and social impacts. Social
impact shall include possible impacts on the enjoyment and exercise of human rights, cultural
rights, and the right to a healthful ecology. The ESIAMP shall include plans relative to mining
operations; the rehabilitation, regeneration and restoration of mineral areas; slope stabilization
of mined out and tailings covered areas; aquaculture, watershed development and water
conservation; the relocation and return of displaced population; and provisions for alternative
livelihood and socioeconomic development.

The ESLAMP shall also contain a Social Development Plan which shall likewise
contain the plans of the proponent for the development of the community through the
establishment of infrastructures and programs that shall be sustainable even after the closure
of the mine. It shall include a gender analysis that looks into the power relations between
women and men in the household and community, and in terms of activities, access to,
control, and ownership of resources. It shall also ascertain how mining operations will affect
women’s condition and position in the household and community. Finally, it shall develop a
gender action plan, based on the gender analysis, to include clear targets and indicators in
mitigating negative environmental and social impacts on women and ensuring women’s
participation and tangible benefits from the mining operations and rehabilitation,

The ESGIAMP shall be responsive to the issues and needs of women, LGBTQI
individuals, children, persons with disabilities, and older persons. It shall likewise ensure that
their rights are protected and respected.

SEC. 45. Pre-qualification. - The MGB shall thereafter identify the top five (5)
proposals and shall recommend the same to the Council for deliberation.

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SEC. 46. Deliberation. — After the MGB's transmittal of its recommendations to the
Council together with all the submitted documents for the pre-qualification, the Council shall
initiate the deliberation process of the pre-qualified proposals.

Immediately thereafter, Sections 26 and 27 of the Local Government Code on
consultation and consent shall be strictly adhered to. Local government units at all levels shall
conduct mandatory public hearings with the affected local communities, to be carried out
within their respective territories and presenting those enumerated under Section 38. Local
government units, ICCs/IPs, NGOs and people’s organizations, shall ensure that the mining
applicant shall comprehensively explain the goals and objectives of the project or program, its
negative and positive impact upon the people and the community in terms of social, cultural
and environmental or ecological balance, and the measures that will be undertaken to prevent
or minimize the adverse effects thereof. Thereafter, the approval of the respective Sanggunian
of the affected local government units shall be required in accordance to the sentiment of the
peoples of the local government unit as a result of the consultations conducted.

The affected local government unit representatives shall meet and shall relay the
decision of their respective constituents to the provincial government, independent component
cities, or highly urbanized cities. The provincial, component city, or highly urbanized city
government representative shall sit in the Council and shall carry the result of the vote of all
the affected local government units within the province, independent component city, or highly
urbanized city resulting from the process provided in the preceding paragraph of this Section.

In determining which proposal is acceptable to the people, a majority vote of the local
government units within the province/independent component city/highly urbanized city shall
be required.

The affected ICCs/IPs shall also deliberate on the proposals in accordance with their
own systems and processes free from any external manipulation, interference, coercion and
other analogous acts, and obtained after fully disclosing the intent and scope, including the
positive and negative impacts of the activity, in a language and process understandable and
acceptable to them.

After the respective processes are complied with, the Council shall then meet and
decide which proposal, if any, is most acceptable and consistent with their own socio-
economic, environmental and cultural programs and shall notify the MGB of the chosen
proposal.

Section 47. Posting and Publication Requirement. — After notice, the MGB shall
notify the proponent of the accepted proposal and cause the publication and posting of the

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accepted proposal: Provided, That any member of the community may contest the decision of
the Council within six (6) _ weeks upon the posting and publication of notice of the
acceptance of the proposal in the manner provided for in Section 38. No mining operations
shall be allowed pending any action questioning the legality or validity of the proposal.

SEC. 48. Issuance of the Permit, - The MGB shall only issue permit in accordance
with the decision of the council on the winning proposal only upon showing compliance with
the FPIC processes as evidenced by Certification Precondition issued by the NCIP in
accordance with Section 59 of RA 8371, or a written FPIC of the affected sectors in accordance
with the provisions of this Act in areas outside ancestral domains.

SEC. 49. Environmental and Social Impact Compliance Certificate. — The mining
proponent shall be issued an Environmental and Social Impact Compliance Certificate by the
Environmental Management Bureau with the approval of the Council, Provided, That no
amendments to the ESIAMP shall be allowed, unless any proposed amendment shall benefit
the affected communities and that the Council and the MGB shall be notified of any
amendments to the ESIAMP, that the former shall give their consent to the same, after the
proponent explains in detail the reason for such amendment/s and the possible impacts and
consequences of these: Provided, further, That any violation of the ESIAMP shall cause the
cancellation of the Certificate.

SEC. 49. Maximum areas for mineral agreements. - The maximum area under
mineral agreements that an entity can hold at any one time shall be determined by the Council:
Provided, That the contract area per agreement shall not exceed five hundred (500) hectares:
Provided, further, That no entity shall be awarded in excess of the total contract area of seven
hundred-fifty (750) hectares in any given watershed area. For the purposes of this Act, the
prohibition on the maximum area shall also include corporations that shall have common
directors or significant shareholders.

SEC. 50. Term of mineral agreement. — The term of the mineral agreement shall be
equivalent to the mine life plus an additional five (5) years for the rehabilitation of the mining
area. Provided, That in no case shall a Mineral Agreement have a term beyond fifteen (15)
years, Provided further, That the contractor shall already include rehabilitation/remediation of
the mining area within the ten-year term.

In no case shall a Mineral Agreement be extended without just cause to be determined
by the Council: Provided, That the extension shall not cause the term of the agreement to
exceed the fifteen (15) year term mentioned in the preceding section: Provided further, That

for the purposes of this Act, just cause shall mean acts or events resulting from war, force

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majeure or those beyond the control of the mining proponent not attributable to the same:
Provided finally, That in no case shall mineral agreements be renewed after the expiration of
the fifteen-year period.

SEC. 51. Prohibition on open-pit mining methods and submarine tailings disposal. —
‘The open-pit mining methods and the submarine tailings disposal method shall be prohibited.

SEC. 52. Failure to initiate mining operations. — Failure to initiate mining operations
in accordance with the work program within five (5) years from the award of the mineral
agreement shall cause the cancellation of the mineral agreement. The contractor thereafter
forfeits the value of the improvements made upon the land. The contractor and other
corporations who are also run by the same directors and officers are thereafter banned from
bidding to conduct mining operations for ten (10) years after failure to initiate its mining
operations in accordance with the work program.

SEC. 53. Mandatory consultations in each mining phase. - Mandatory
consultations with affected persons and communities shall be undertaken in each phase of
mining operation: exploration, extraction, processing, and mine closure to ensure that the
peoples shall be informed of the proposed plans and methods that are proposed to be
conducted. Consultations should be inclusive, participatory, transparent, timely, and free of
harassment, threats, and risk.

Section 54. FPIC of ICCW/IPs on each stage of mining. ~The consent of the ICCs/IPs
and the CP issuance shall be required at each and every stage of the mining operation through
a process of FPIC which will be facilitated by the National Commission on Indigenous Peoples.
Any violation relative thereto is subject to the penalties as provided under the NCIP FPIC
Guidelines and shall be a ground for the cancellation of the mineral agreement.

Asto the ICCs/IPs, their free and prior informed consent shall be secured in accordance
with their customary laws, practices and processes. The procedure to secure the FPIC of the
ICCs/IPs shall be facilitated by the NCIP and the CP issuance be made pursuant to the IPRA
and existing guidelines. Any violation relative thereto is subject to the penalties as provided
under the existing NCIP FPIC Guidelines and shall be a ground for the cancellation of the
mineral agreement.

SEC. 55. Monitoring. — The Council shall form a multi-partite monitoring team to
monitor the contractor's compliance to the terms and conditions of the mineral agreement. It
may conduct ocular inspections of the contract area at any time and inspect all the books of
contractors and refer the same to independent auditors. The multi-partite monitoring team or
the MGB may confiscate surety, performance and guaranty bonds posted through an order to

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be promulgated by the Director. The Council, the Director or the local government authorities
may deputize, when necessary, any member or unit of the Philippine National Police (PNP),
barangay, duly registered non-government organization (NGO) or any qualified person to
police any and all mining activities. The composition of the multi-partite monitoring team and
multi-sectoral monitoring team shall include women from the local community and
representatives from women’s organizations. The monitoring framework must include gender
indicators.

SEC. 56. Withdrawal from the Mineral Agreement, — The contractor may withdraw
from the mineral agreement at any time for justifiable cause with one (1) month's notice to the
MGB, the Council or the ICCs/IPs, and other government agencies as provided in this Act. The
Council, in cooperation with other concerned government agencies, shall issue a clearance for
withdrawal upon certifying that the contractor has complied with all its legal obligations,
including the appropriate measures for mine closure and rehabilitation. Funds and bonds which
have been put up by the contractor in accordance with this Act shall be forfeited.

SEC. 57. Proh
mining rights under this Act be transferable. The contractor shall also immediately notify the

ion on the Transfer of Mineral Agreements. — In no case shall

Council and the MGB of any change in the ownership and/or control of the corporation and its
financing program. Violation of this provision shall cause the cancellation of the mineral
agreement and forfeiture of the contractor's assets in favor of the State.
CHAPTER VI
SMALL-SCALE MINING

SEC. 58. Governance of Small-scale mining. - Small-scale mining shall continue to
be governed by the provisions of Republic Act 7076 or the “People’s Small-Scale Mining Act
of 1991”; Provided, That the Provincial or City Mining Regulatory Board shall be composed
of the Governor or City Mayor, as chairperson, as the case may be, a DENR representative as
co-chairperson, one (1) small scale mining representative, one (1) large-scale mining
representative, one representative from an environmental non-government organization, one
representative from a people's organization (PO) coming from the marginalized sector, and at
least one (1) representative from the indigenous communities, whenever applicable, as
members. The representatives from the private sector, nongovernment organization and
indigenous communities shall be selected by their respective organizations or communities,
and appointed by the PMRB or CMRB; Provided, further, That the conduct of small-scale
mining shall also comply with the prohibitions and regulations established herein for large-
scale mining. Only individuals and cooperatives may apply for a small-scale mining permit.

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SEC. 59. Maximum term of small-scale mining permits. - The term for small-scale
mining permits shall be three (3) years, extendable to a maximum of fifteen (15) years.

SEC. 60, Traditional small-scale mining within ancestral domains. — The Council
shall conduct regular monitoring activities within its jurisdiction to determine if the provisions
of relevant laws are complied with in traditional small-scale mining by ICCs/IPs within their
respective ancestral domains.

SEC. 61. FPIC in small-scale mining. ~ Small-scale mining activities within any
ancestral domain by any person shall also require the FPIC of ICCs/IPs.

SEC. 62. Requirement for Environmental and Social Impact Compliance Certificate.
— Small-scale mining shall likewise require an Environmental and Social Impact Compliance
Certificate (ESICC). All small-scale mining applicants or proponents must show proof of
compliance with the terms and conditions of its ESICC prior to the issuance of a small-scale
mining permit (SSMP). Failure to submit this requirement will result in the non-issuance of the
SSMP.

SEC. 63. Environmental measures in small-scale mining. — The State shall
immediately address the environmental and health hazards and problems in small-scale mining,
including the use of mercury, cyanide and other chemicals, in the amalgamation of gold by
small-scale miners.

‘The MGB shall immediately conduct research to focus on developing and promoting
appropriate, clean, efficient, culturally-sensitive and industrially-viable technologies that shall
mitigate the environmental and health effects of mercury and cyanide use and eventually
replace the current practice. Mercury use in small-scale mining shall be prohibited. The Bureau
shall research, develop and actively promote appropriate technologies in small-scale mining
including labor-intensive methods, environmental protection and physical techniques of gold
extraction among small-scale miners.

SEC. 64. Monitoring small-scale mining. ~ A multi-sectoral monitoring team shall be
organized by the Council to monitor SSMP permittees’ compliance with the terms and
conditions of their respective SSMPs and ESICCs. The team shall conduct ocular inspections
of SSMP areas at any time and shall have visitorial powers.

SEC. 65, Livelihood support. — The State shall support the improvement of the
livelihood of small-scale-miners by extending services for access to other more viable and
sustainable forms of livelihood, and, if the same is not possible, the following support services:

A. access to minerals markets and to financing;

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B. facilitating partnership with mining companies or contractors by, among others,
requiring mining companies to buy tailings from small-scale mining operations for
further processing or recycling;

C. facilitating partnerships among small-scale mining cooperatives; and

D. other incentives to attract informal small-scale miners to formalize their status.

SEC. 66. Buying stations. - The Bangko Sentral ng Pilipinas shall ensure that buying
stations acquire gold from small-scale traders at prevailing international gold market prices and
the prevailing exchange rate set by the BSP Treasury Department on a daily basis.

CHAPTER VII
QUARRY RESOURCES

SEC. 67. Quarry resources within ancestral domains, — Gathering of quarry resources,
sand and gravel, guano and other organic fertilizer materials, and gemstones within ancestral
domains shall likewise be subject to the FPIC of ICCs/IPs. ICCs/IPs and the government shall
be entitled to ten percent (10%) of royalties depending on whether the resources are found
inside or outside ancestral domains. Permits shall have a term of five (5) years, renewable for
like period but not to exceed a total term of twenty (20) years, and, only at a maximum surface
area of five (5) hectares.

SEC. 68. Quarry Permit. ~ Any qualified Filipino may apply for a quarry permit on
privately- owned lands and ancestral domains and public lands for building and construction
materials such as marble, basalt, andesite, conglomerate, tuff, adobe, granite, gabbro,
serpentine, inset filling materials, clay for ceramic tiles and building bricks, pumice, perlite and
other similar materials that are extracted by quarrying from the ground at the provincial/city
mining regulatory board.

The provincial governor shall grant the permit after the applicant has complied with all
the requirements as prescribed by the rules and regulations set forth by this Act. Provided that
gathering/extraction of sand for its metallic contents such as magnetite from the country's rivers
and shorelines shall be require a mineral agreement in lieu of a quarry permit.

‘The maximum area which a qualified person may hold at any one time shall be limited
to a surface area of five hectares (5 has.) Provided, That in large-scale quarry operations
involving cement raw materials, marble, granite, sand and gravel and construction aggregates,
a qualified person and the government may enter into a mineral agreement as defined herein.

A quarry permit shall have a term of five (5) years, renewable for like periods but not
to exceed a total term of twenty (20) years. No quarry permit shall be issued or granted for any
area that is covered by a mineral agreement.

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SEC. 69. Quarry fees and taxes. — A quarry permittee shall pay quarry fees as provided
for under the implementing rules and regulations. The permittee shall also pay excise taxes as
provided by pertinent laws.

SEC. 70. Cancellation of quarry permit. ~ A quarry permit may be cancelled by the
provincial governor for violations of the provisions of this Act, its implementing rules and
regulations or the terms and conditions of said permit: Provided, That before the cancellation
of such permit, the holder thereof shall be given the opportunity to be heard in an investigation
conducted for the purpose.

SEC. 71. Commercial sand and gravel permit. — Any qualified person may be granted
a permit by the provincial governor to extract and remove sand and gravel or other loose or
‘unconsolidated materials outside ancestral domains which are used in their natural state,
without undergoing processing from an area of not more than five hectares (5 has.) and in such
quantities as may be specified in the permit.

SEC. 72. Industrial sand and gravel permit. — Any qualified person may be granted
an industrial sand and gravel permit by the MGB for the extraction of sand and gravel and other
loose or unconsolidated materials outside ancestral domains that necessitate the use of
mechanical processing covering an area of not more than five hectares (5 has.) at any one time.
The permit shall have a term of three (3) years, renewable for a like period but not to exceed a
total term of twenty (20) years.

SEC. 73. Exclusive sand and gravel permit. Any qualified person may be granted an
exclusive sand and gravel permit by the provincial governor to quarry and utilize sand and
gravel or other loose or unconsolidated materials from public lands for his own use, Provided,
That there will be no commercial disposition thereof.

SEC. 74. State gratuitous permit. — Any government entity or instrumentality may be
granted a gratuitous permit by the provincial governor to extract sand and gravel, quarry or
loose unconsolidated materials outside ancestral domains needed in the construction of
building and/or infrastructure for public use or other purposes over an area of not more than
two (2) hectares for a period co-terminus with the said construction.

SEC. 75. Private Gratuitous Permit. — Any owner of land may be granted a private
gratuitous permit by the provincial governor to extract sand and gravel, quarry or loose
unconsolidated materials within the said private property.

SEC. 76. Guano permit. — Any qualified Filipino may be granted a guano permit by
the provincial governor to extract and utilize loose unconsolidated guano and other organic
fertilizer materials in any portion of a municipality where said person has an established

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domicile outside ancestral domains, The permit shall be for specific caves or for confined sites
with locations verified by the DENR field officer in accordance with existing rules and
regulations: Provided, That extraction does not violate and is consistent with the provisions of
existing laws, rules and regulations, such as the Wildlife Life Act, among others.

SEC. 77. Gemstone gathering permit. — Any qualified Filipino may be granted a
non-exclusive gemstone gathering permit by the provincial governor to gather loose stones
useful as gemstones in rivers and other locations outside ancestral domains.

SEC. 78. Council recommendation for approval. ~ No permit under Chapter VII of
this Act shall be issued without the recommendation of the Multi-Sectoral Mineral Council
prior to approval by the provincial government unit.

CHAPTER VU
TRANSPORT, SALE AND PROCESSING OF MINERALS

SEC. 79. Ore transport permit. — A permit specifying the origin and quantity of non-
processed mineral ores or minerals shall be required for their transport.

In the case of mineral ores or minerals being transported from the areas declared as
Minahang Bayan to custom mills or processing plants, the Minahang Bayan Council concemed
shall formulate their own policies to govern such transport of ores produced by small-scale
mining cooperatives.

Transport permits shall be issued by the MGB. The absence of a permit shall be
considered as prima facie evidence of illegal mining and shall be sufficient cause for the
confiscation of the ores or minerals being transported, the tools and equipment utilized, and the
vehicle containing the same.

SEC. 80. Track record. —Only mining companies with demonstrated capacity and good
environmental track record in mineral processing shall be allowed to extract minerals. The
Council shall encourage contractors to put up processing plants within the community with the
end in view of generating employment and developing other downstream industries.

Section 81. Mineral trading registration. — No person shall engage in the trading of
mineral products, either locally or internationally, unless accredited by the DENR and duly
registered with the Department of Trade and Industry (DTI) with a copy of said accreditation
and registration submitted to the MGB.

SEC. 82. Mineral Processing Permit. — No individual, partnership, partnership,
cooperative, corporation or other entity shall engage in the processing of minerals without first
securing a minerals processing permit from the Council. Minerals processing permits shall be

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for a period of five (5) years, renewable for like periods but not to exceed a total term of twenty-
five (25) years.

In the case of small-scale miners, the processing of mineral ores they produce, 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.

In the case of individuals, corporations, partnerships, cooperatives or other entities who
are parties to a Mineral Agreement or a Financial or Technical Assistance Agreement, holders
of quarry and industrial sand and gravel permits, the approved work program for the production
period shall be sufficient requirement for them to process minerals in lieu of a mineral
processing permit.

A mineral processing permit shall be for a period of five (5) years, renewable for like
periods: Provided, That renewal shall not be allowed unless the permit holder has complied
with all the terms and conditions of the permit and has not been found guilty of violation of
any provision of this Act and its implementing rules and regulations,

After due process, a mineral processing permit may be suspended, revoked or cancelled
by the DENR for violation of its terms and conditions, or of pertinent laws, rules and
regulations.

Mineral processing shall be included in the Investment Priority plan to be prepared by
the Board of Investment in accordance with Executive Order No. 226, as amended, otherwise
known as the “Omnibus Investment Code of 1987” and shall always be listed as a preferred
area of investment,

CHAPTER IX
DEVELOPMENT OF COMMUNITIES, SCIENCE AND TECHNOLOGY

SEC. 83. Expenditure for community development. — A contractor shall assist in the
development of the community, and the promotion of the general welfare of its inhabitants
towards sustainable development. Community development projects shall in no way decrease
the obligation of the corporation with regard to royalties and fees due to communities and/or
local government units. Community development projects should be consistent with the
Comprehensive Land Use Plans (CLUP), Ancestral Domains Sustainable Development and
Protection Plan (ADSDPP) and annual investment plans of the local governments,
CADT/CALT holders, and the like.

SEC. 84. Preferential option for Filipino labor, experts and training of members of
the local community. — A contractor ot permittee shall give preference to Filipino citizens in
all types of mining employment within the country. Members of the local community shall be

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trained in all aspects of the mining operations, including remining, recycling, and the
management thereof. It shall employ and train 20-30% women in all aspects of mining
‘operations keeping in mind the core labor standards and ensuring that acts of discrimination on
the basis of sex and gander are not committed in recruitment, hiring, promotion, and provision
of benefits.

SEC. 85. Use of indigenous goods, services and technologies. — A contractor shall
give preference to the use of local goods, services, and the scientific and technical resources in
all stages of mining operations, where the same are of equivalent quality and are available on
equivalent terms as their imported counterparts.

SEC. 86. Donation or turnover of facilities. — Prior to the cessation of mining
operations by abandonment or withdrawal of operations on public lands by the contractor, the
latter shall have a period of one (1) year therefrom within which to remove improvements.
Otherwise, all the infrastructure, facilities and equipment shall be tuned over or donated tax-
free to the proper government authorities, national or local, to ensure that said infrastructure
facilities and equipment are continuously maintained and utilized by the State. A fine of one
hundred thousand pesos (PhP100,000.00) shall be imposed for every day of delay.

CHAPTER X
BENEFIT SHARING, TAXES AND FEES

SEC. 87. Taxes and fees. — The contractor shall pay all taxes and fees as required by
law, including the following:

A. contractor's income tax;

B. customs, duties and fees on imported capital equipment;

C. value-added tax on imported goods and services;

D. withholding tax on interest payments to foreign loans and on dividends to foreign

stockholders;
. documentary stamps tax;
capital gains tax;

excise tax on minerals;

moms

local business tax;

real property tax;
community tax;

. occupation fees;
.. Tegistration, accreditation and permit fees; and

ZrASs

|. water usage fees.

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SEC. 88. Government share. — Aside from the taxes and fees referred to in the
preceding section, Government shall have a share equivalent or greater than ten percent (10%)
of the gross revenues from the development and utilization of mineral resources that are owned
by it to be set aside for the general fund of the government to be used, among others, for special
projects such as energy development and generation and the management and conservation of
protected areas in areas within the vicinity or adjacent to mining operations.

SEC. 89. Indigenous cultural communities’ royalty. — In case of mineral operations
within ancestral domains, the contractor shall allot at least ten percent (10%) of the gross
revenues as royalty to the ICCs/IPs. Community development programs shall not be considered
as royalty payment. The payment of the royalties shall directly be given to the communities in
a process that build on the ICCs/IPs' traditional and customary laws: Provided, That the royalty
established in this Act shall be free from any external manipulation, interference, coercion, and
other analogous acts, and obtained after fully disclosing the intent and scope, including the
positive and negative impacts of the activity, in a language and process understandable and
acceptable to them.

SEC. 90. Scientific research and development fund. — A Scientific Research and
Development Fund shall be set aside to be devoted to research and development of clean
mining technologies, improvement of mining processes, mine rehabilitation, mitigating
technologies, the setting up and maintenance of an independent pool of experts, and operational
expenses of the MGB.

Section 91. Legal services fund. — A legal support fund shall be set aside for the use of
the communities and local government units for cases that they may file against mining
permittees or cases that may be filed against them by mining companies in trying to do their
responsibility of protecting the rights of the marginalized groups, the environment and
sustainable development in general.

Section 92. Local Government Unit share.— Local Government Units shall be entitled
to a share of the net revenues from mining operations which shall be paid directly to the
treasurer's office of the provincial/independent component city/highly urbanized city for
distribution to other local government units. To determine the government share, the following
variables shall be considered:

A. Classification of local government;

B. Vulnerability; and

C. Human development index.

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A percentage of this amount shall be set aside by the respective local government units
for Disaster Risk Management. This fund shall likewise benefit ICCs/IPs within the territory
of the local government unit: Provided, That the administrative and operational expenses of
the Council shall also be taken from this share,

SEC. 93. Mine wastes and tailings fees.— A semi-annual fee denoted as mine wastes
and tailings fee is hereby imposed on all operating mining companies in accordance with the
implementing rules and regulations. The mine wastes and tailings fee shall accrue to a fund to
be used as support funds for the monitoring activities of the Council. The DENR Secretary is
authorized to increase mine wastes and tailings fees, when public interest so requires.

SEC. 94. Incentives. —Incentives that shall be given to the contractors shall be limited
only to pollution control or mitigation devices.

SEC. 95. Deposit of capital and profits requirement. — As part of their demonstrated
financial capacity, all large-scale mining companies or contractors are required to deposit their
capital investment and profits in banks or financial institutions that are owned, managed and
operated by the Philippine government.

SEC. 96. General rule on profit repatriation. — Contractors with foreign financial
assistance shall be allowed to repatriate their profits from mining projects that should not
exceed fifty (50) percent of the total profits posted at the end of every fiscal year. Full disclosure
of profits is required. The full repatriation of profits shall be allowed one year after the cessation
of mining activities and the progressive rehabilitation of a mining area as specified in the
mineral agreement of each contractor.

The guidelines for Sections 95 and 96 shall be issued by the Bangko Sentral ng Pilipinas
and shall be furnished to the DENR, MGB, Council and all respective contractors in the
industry.

CHAPTER XI
SAFETY AND ENVIRONMENTAL PROTECTION

SEC. 97. Mines safety. — All contractors and permittees shall strictly comply with all

the rules and regulations concerning the safety and sanitary upkeep of mines and mining

development.
Government personnel involved in the implementation of mines safety, occupational

health and environmental rules and regulations shall be covered under Republic Act 7305 or
the “Magna Carta of Public Health Workers”.

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SEC. 98, Mine workers. —No person under sixteen (16) years of age shall be employed
in any place of mining operations and no person under eighteen (18) years of age shall be
employed in a mine.

SEC. 99. Mine supervision. — All mining and quarrying operations that employ more
than fifty (50) workers shall have at least one (1) licensed mining engineer with at least five
(5) years of experience in mining operations, and one (1) registered foreman.

SEC. 100. Safety of workers. — All mining companies shall provide safeguards to the
health and well-being of workers. The Regional Office of the Department of Labor and
Employment shall inspect all mining sites within their areas of jurisdiction to determine the
conditions of workers. Denial of entry shall be punishable under this Act. Representatives of
trade unions shall also have visitorial rights.

SEC. 101. Mine inspection. — The regional directors of the MGB and the Council shall
have jurisdiction over the safety inspection of all installations, surface or underground, in
mining operations at reasonable hours of day or night and in a manner that shall not impede or
obstruct work in progress of a contractor or permittee. Monitoring reports and
recommendations of the MGB shall be submitted to the Council. Measures shall be taken to
prevent gender-based violence in the mining sites.

SEC. 102. Power to issue orders. — The regional directors of the MGB shall, in
consultation with the Environmental Management Bureau (EMB), within such time as
specified in the order, require the contractor to remedy any practice connected with mining,
which is not in accordance with safety and anti-pollution laws and regulations. In case of
imminent danger to life or property, the MGB Director may summarily suspend the mining
operation until the danger is removed, or appropriate measures are taken by the contractor.
Unreasonable delay to remove the danger or introduce the necessary improvements by the
contractor shall be a cause for the cancellation of the mineral agreement.

SEC. 103. Report of incidents and accidents. — In case of any incident or accident,
causing or creating the danger of loss of life or serious physical injuries, the person in charge
of operations shall immediately report the same to the regional office where the operations are
situated. Failure to report the same without justifiable reason shall be cause for the imposition
of administrative sanctions prescribed in the rules and regulations implementing this Act.
Incidents of gender-based violence shall also be reported.

SEC. 104. Environmental Protection. — Every contractor shall undertake an
environmental protection and enhancement program covering the period of the mineral
agreement or permit. Such environmental program shall be incorporated in the work program

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which the contractor or permittee shall submit as an accompanying document to the application
for a mineral agreement or permit. The work program shall include not only plans relative to
mining operations but also for the rehabilitation, regeneration, revegetation and reforestation
of mineralized areas, slope stabilization of mined-out and tailings covered areas, aquaculture,
watershed development and water conservation; and socioeconomic development.

SEC. 105. Environmental Impact Assessment (EIA). ~ Except during the exploration
period of a mineral agreement or an exploration permit, an environmental clearance certificate
shall be required based on an environmental impact assessment and procedures under the
Philippine Environmental Impact Assessment System, including Sections 26 and 27 of the
Local Government Code of 1991 which require national agencies to maintain ecological
balance, and prior consultation with the local government units, nongovernmental and people's
organizations and other concemed sectors of the community: Provided, That a completed
ecological profile of the proposed mining area shall also constitute part of the environmental
impact assessment.

POs and NGOs shall be allowed and encouraged to participate in ensuring that
contractors or permittees shall observe all the requirements of environmental protection.

SEC. 106. Environmental Insurance. — Contractors and mineral processing permit
holders shall be obliged to execute an insurance contract as environmental assurance for each
and every source of pollution or disaster, relative to the worst-case scenario costs, following
accepted actuarial standards, Provided, That in no way shall this provision be construed as to
remove or reduce the liability of the contractors or permit holders to compensate any damage
caused by their operations; Provided, further, That the insurer shall be an accredited
international company in good standing.

Prior to the approval of the insurance contract, the DENR shall seek and consider the
opinion of an independent expert as to the financial credibility of the insurer. This may also
include climate risk insurance, which will protect against the loss of assets, livelihoods and
even lives in the post-disaster period. It will also provide reliable and dignified post-disaster
relief and incentives for preventing catastrophes. Risk insurance will also mitigate weather-
affected public and private investments and economic development.

SEC. 107. Calamity, Climate and Human Rights Protection Fund. — Persons issued
a mineral agreement shall deposit 1/12 of their gross income semi-annually in an interest-
bearing account a common fund maintained by the national government which shall be used
for responding to, or mitigating the effects of calamities, natural disasters and human rights
violations including militarization, displacement, and forcible evacuation in any part of the

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:: Provided, That in no way shall this provision be

country in relation to mining activiti
construed to remove or reduce the liability of the contractors or permit holders to compensate
any damage caused by their operations.

This Fund shall include responses to other climate impacts to strengthen climate
protection. These impacts, especially when vulnerable groups are affected, require immediate
attention and should be prioritized by the fund.

SEC. 108. Performance Bond. — The contractor shall put up a bond in an amount
equivalent to fifty percent (50%) of the projected cost of rehabilitation as validated by
independent studies.

This amount shall be deposited in an interest-bearing account. The bond shall be
forfeited in the event that the contractor shall fail or default in the rehabilitation or remediation
of the mining area as included in the work plan of the contractor or abandons the mine at any
time of its operations.

SEC. 109, Final Mine Rehabilitation and Decommissioning Fund. — Contractors and
permittees shall technically and biologically rehabilitate the excavated, mined-out, tailings-
covered and disturbed areas to the condition of environmental safety, as provided in the
implementing rules and regulations of this Act. A mine rehabilitation fund shall be created,
based on the contractor's approved work program, and shall be deposited as a trust fund in a
government depository bank and used for physical and social rehabilitation of areas and
communities affected by mining activities and for research on the social, technical and
preventive aspects of rehabilitation. Failure to fulfill the above obligation shall mean immediate
suspension or closure of the mining activities of the contractor or permittee concerned.

A Final Mine Rehabilitation and Decommissioning Fund (FMRDF) shall be established
by each operating Contractor or Permit Holder to ensure that the full cost of the approved Final
Mine Rehabilitation and Decommissioning Plan (FMRDP) is accrued before the end of the
operating life of the mine- The FMRDF shall be deposited as trust fund in Government
depository bank and shall be used solely for the implementation of the approved FMRDP.

Annual cash provisions shall be made by contractors or permit holders to a FMRDF 3
based on the formula:

Annual provision Cost of Implementing the Approved FMRIDP x Percentage Required
per Table I

Based on the expected mine life, the initial annual cash provision shall be made to the
MRF Committee within sixty (60) days from the date of the FMRIDP's approval and every
anniversary date thereafter; Provided, That, on application by the contractor or permit holder,

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the MIRF Committee may allow a later date for the payment of the first annual provision.
Failure to fulfill the above obligation shall mean immediate suspension or closure of the mining
activities of the contractor or permittee concerned.

‘Mining firms are also mandated to immediately restore and replant areas that they have
already finished excavating as they move on to other development sites: Provided, however,
That if mining firms cannot do reforestation in their immediate area they could do the
reforestation in other areas provided they comply with 100:1 hectare ratio. Any mining firm
found to have violated or have not complied with the foregoing mandatory provisions shall be
held liable with the penalty of revocation of their mining permits and payment of a fine of not
less than One Million Pesos (P 1,000,000). The owners, officers and management employee of
said mining firms shall also be held liable and be subject to imprisonment of not less than one
year not more than three (3) years.

Mining companies should not only restore affected areas to their previous condition,
but rather should also improve these areas’ climate resiliency in light of projections of
worsening climate impacts. Further, mining companies shall include in their rehabilitation
plan facilitating the transition to green economy models (GEMS). This will ensure that
community members, including those whose livelihoods may have been affected by the
mining operations and previous employees of the mining company, will have sustainable jobs
even after closure of mining operations. Moreover, it will create green jobs that will
contribute to the further rehabilitation and protection of the mine-degraded areas.

SEC. 110. Progressive rehabilitation. — Contractors shall also conduct progressive
rehabilitation activities.

SEC. 111. Adoption of the precautionary principle. - When an activity related to
‘mining raises threats of harm to public health or the environment, precautionary measures shall
be taken proactively even if some cause and effect relationship have yet to be scientifically
established of which the mining proponent and the MGB shall also be obliged to disclose
publicly.

SEC. 112. Adoption of “polluter pays” principle. —Polluters shall pay for the damage
they cause to the environment. The amount of damages shall be determined by accredited
independent consultants, to be chosen from a list and agreed upon by both the mining proponent
and by the Council.

SEC. 113. Tailings impoundment. —Tailings impoundments shall be built away from
critical watershed drainage areas. Furthermore, it shall be ensured impoundments will not
endanger critical watershed areas and low-lying valleys in the event of accidents under

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abnormal conditions. Tailing impoundments and dams shall meet the international standards
for large dams.

SEC. 114. Dumping of waste. — Dumping of waste or tailings in any body of water
shall be prohibited. Provisions of Republic Act No. 9275, or the “Clean Water Act of 2004”
and Republic Act No. 8749 or the “Philippine Clean Air Act of 1999” shall be strictly
implemented.

SEC. 115. Use of toxic chemicals and methods. — At all times, mining contractors shall
use chemicals or reagents which would result to the least environmental and social destruction.
The use of mercury and cyanide for the extraction of gold, silver and other minerals shall be
prohibited. The use of blow torching to separate gold from amalgam shall likewise be
prohibited.

SEC. 116. Preservation of topsoil. ~ The removed topsoil, or the more productive
horizons of the soil shall be preserved for other uses.

SEC. 117. Priority use for water. ~ The National Water Resources Board (NWRB)
shall investigate any existing use of water resources in the area whether or not covered by any
existing water permit or registration. Upon determination of any existing use, the applicant
shall procure the consent of all water users and/or the FPIC of ICCs/IPs with or without water
permits within the same groundwater network or any downstream users of water resources. In
all instances, priority shall be given to use of water for domestic, municipal, and agricultural
purposes. If potential negative impact on other water users is identified, the water permit shall
not be granted. For water resources within the ancestral domain of indigenous peoples, no water
permit shall be granted by the NWRB without the FPIC of the indigenous peoples.

SEC. 118. Recycling of water resources. - Water used in mining operations shall be
recycled. Mining contractors shall be required to provide for the methods and equipment for
the recycling or reuse of water. Released contaminated water shall be treated accordingly to
meet national standards. Released water must at least be equivalent in quality to the baseline
water quality.

SEC. 119. Water user's fee. — A water user's fee that reflects the value of water to the
country and community shall be imposed by the Council for water used in mining operations.

Contractors shall pay the fee to the NWRB which shall use the same for monitoring and
improvement of the affected waterways and systems and the mitigation of negative impacts
thereon to ensure that communities shall have access to clean water.

SEC. 120. Prohibition from using acid-generating waste rock for infrastructure, —
‘The use of acid-generating waste rock to build roads, dams or other infrastructures is

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prohibited. The use of such materials shall only be used after treatment to neutralize the effect
of acid mine drainage.

SEC. 121. Establishment of a prediction and monitoring system. — The MGB shall
establish a prediction and monitoring system to identify potential acid-producing materials and
monitor their production of acid waste.

SEC. 122. Avoidance of waterways. — Open pits, waste rock piles and tailings
impoundments shall not be built near or on waterways to prevent contact and subsequent acid
production and groundwater contamination.

SEC. 123. Remining. — Remining shall be prioritized over the opening of new mines
to maximize and recover the remaining minerals from the rejects or wastes of previous mines
and mining operations, Provided, That remining operations shall follow the processes,
standards, parameters and guidelines set for mining operations in this Act.

SEC. 124. Suits after the termination of contracts or projects. - Recognizing that the
effects of mining may be seen or felt, actions relating to the health of affected communities or
peoples, environmental degradation and other similar effects may be maintained against the
project proponent and/or persons even after the mineral agreement or mining project has
terminated.

CHAPTER XII
RESOLUTION OF CONFLICTS

SEC. 125. Panel of Arbitrators. — There shall be a panel of arbitrators in the regional
offices of the DENR composed of three (3) members, two (2) of whom must be members of
the Philippine Bar in good standing, and one a licensed mining engineer or a professional in a
related field, and duly designated by the DENR Secretary as recommended by the MGB
Director. Those designated as members of the panel shall serve as such in addition to their work
in the DENR without receiving any additional compensation. As much as practicable, said
members shall come ftom the different bureaus of the DENR in the region. The presiding
officer thereof shall be selected by the drawing of lots. His tenure as presiding officer shall be
on a yearly basis, The members of the panel shall perform their duties and obligations in
hearing and deciding cases until their designation is withdrawn or revoked by the DENR
Secretary. Within thirty (30) working days, after the submission of the case by the parties for
decision, the panel shall have exclusive and original jurisdiction to hear and decide on the

following:

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‘A. Questions involving compliance with the established technical guidelines and standards
herein established, or those to be established by the implementing rules and regulations
of this Act;

B. Questions involving the compliance with technical procedures herein established, or
those to be established by the implementing rules and regulations; and,

C. Other similar instances wherein the technological and technical expertise of the DENR
shall be needed.

Disputes involving real rights, contractual obligations and other causes of action that
are not in any way connected with the abovementioned scope of jurisdiction shall be under the
jurisdiction of the regular courts or as otherwise provided by other special laws: Provided, That
disputes pending before the MGB and the DENR at the date of the effectivity of this Act shall
undergo an immediate review within sixty (60) working days upon the passage of this Act to
determine the cause of action. Those which are outside the technical expertise of the DENR or
MGB shall be refiled with the appropriate court, without costs to the complainant or petitioner.
All Decisions or orders to stop mining operations or to clean or rehabilitate mining operations
and surrounding communities shall be immediately executory.

SEC. 126. Appeal. — The decision or order of the panel of arbitrators may be appealed
by the party not satisfied thereto to the Mines Adjudication Board within fifteen (15) days from
receipt thereof, which must decide the case within thirty (30) days from submission thereof for
decision.

SEC. 127. Mines Adjudication Board (MAB). ~The Mines Adjudication Board shall
be composed of three (3) members. The DENR Secretary shall be the Chairperson while the
MGB Director and the Undersecretary for Operations of the DENR shall serve as the members
thereof. The Board shall have the following powers and functions:

A. promulgate rules and regulations governing the hearing and disposition of cases
before it, as well as those pertaining to its internal functions, and such rules and
regulations as may be necessary to carry out its functions;

B. administer oaths, summon parties to a controversy, issue subpoenas requiring the
attendance and testimony of witnesses or the production of such books, papers,
contracts, records, statement of accounts, agreements, and other documents as may
be material to a just determination of the matter under investigation, and to testify
in any investigation or hearing conducted in pursuance of this Act;

C. conduct hearings on all matters within its jurisdiction, proceed to hear and
determine the disputes in the absence of any party thereto who has been summoned

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or served with notice to appear, conduct its proceedings or any part thereof in public
or in private, adjourn its hearings at any time and place, refer technical matters or
accounts to an expert and to accept his report as evidence after hearing of the parties
upon due notice, direct parties to be joined in or excluded from the proceedings,
correct, amend, or waive any error, defect or irregularity, whether in substance or
in form, give all such directions as it may deem necessary or expedient in the
determination of the dispute before it, and dismiss the mining dispute as part
thereof, where it is trivial or where further proceedings by the Board are not
necessary or desirable:

1. To hold any person in contempt, directly or indirectly, and impose
appropriate penalties therefor; and

2. To enjoin any or all acts involving or arising from any case pending
before it which, if not restrained forthwith, may cause grave or irreparable damage
to any of the parties to the case or seriously affect social and economic stability.

In any proceeding before the Board, the rules of evidence prevailing in courts of law or
equity shall not be controlling and it is the spirit and intention of this Act that shall govern. The
Board shall use every and all reasonable means to ascertain the facts in each case speedily and
objectively and without regard to technicalities of law or procedure, all in the interest of due
process and social justice. In any proceeding before the Board, the parties may be represented
by legal counsel. The findings of fact of the Board shall be conclusive and binding on the
parties and its decision or order shall be final and executory.

A petition for review by certiorari and question of law may be filed by the aggrieved
party with the Court of Appeals within thirty (30) days from receipt of the order or decision of
the Board.

SEC. 128. Exceptions. — In no case, however, shall the following cases be subject to
arbitration:

A. Cases wherein a mining application was already dismissed or vetoed as provided

under Sec. 41 of this Act;

B. Cases which involve criminal liability;

(CHAPTER XIII
ACCESS TO JUSTICE

SEC. 129. Human Rights obligations. — Corporations shall respect, protect and

promote the human rights of communities affected by mining, including the right to life, liberty

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and property, freedom of movement, right of public participation and the right to self:
determination of indigenous cultural communities.

SEC. 130. Violations of human rights. — Extrajudicial killing, torture, involuntary
disappearance, forcible displacement of populations, setting up of checkpoints and imposition
of toll fees which impede the freedom of movement within mineral areas, deprivation of food
and water sources, vote-buying and bribery for the purpose of securing consent or endorsement
for the mining project, and other analogous acts are violations of human rights. Violations of
human rights by contractors shall cause the immediate cancellation of mineral agreements. The
offending contractor, as well as corporations having the same directors and/or officers as of the
offending contractor shall be perpetually disqualified from being granted a mineral agreement.

All equipment and assets of the corporation or person shall be confiscated in favor of
the State.

SEC. 131. Use of paramilitary and military forces. — All mining companies are strictly
prohibited from using or funding paramilitary groups. Using private, paramilitary and military
forces to threaten and harass individuals and communities shall result in the automatic
cancellation of the mineral agreement and the filing of appropriate civil, criminal and/or
administrative charges.

SEC, 132. Strategic Legal Action Against Public Participation (SLAPP). - SLAPP is
any legal action, whether civil, criminal or administrative, filed to harass, vex, exert legal action
or stifle legal recourses of citizens complaining against violations of this Act or enforcing the
provisions of the Act, or exercising their freedom of assembly or right of public participation.
On motion that alleges that the action is a SLAPP, the investigating prosecutor or court shall
immediately determine within a period of thirty (30) days from filing thereof whether a legal
action is a SLAPP and accordingly dismiss the same.

SEC. 133. Indigents suit. — Indigents shall be exempt from payment of any
administrative or court fees, including docket fees for the filing of a case. Lawyers shall be
provided by the Public Attomey's Office to pauper litigants in case they could not afford legal
services.

SEC. 134. Application of the customary laws of ICCs/IPs. ~ The contractor shall
respect the customary laws of the ICCs/IPs and ensure that such laws shall be adhered to.
Provided, That, in applying this provision in relation to other national laws, as well as in
resolving disputes, the integrity of the ancestral domains, culture, values, practices, institutions,
customary laws and traditions of the ICCs/IPs shall be given primacy. Interpretation of this

provision shall be resolved in favor of ICCs/IPs.

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SEC. 135. Strict liability. — Mining corporations are required to observe extra-ordinary
diligence in all its actions in relation to mining operations and are strictly liable for all damages
that the mining operations might cause. In case of any actual damage, the burden of proof shall
lie with the corporations.

SEC. 136. Surmounting the corporate veil. - When the separate personality of the
corporation from its sharcholders is being invoked as defense in order to perpetuate a crime,
fraud, evade liability, and conduct other machinations, the separate personality of the
corporation shall be set aside. Civil, criminal and administrative actions may thus be filed
directly against the members of the Board of Directors, officers and the individual stockholders.
‘The corporation shall publish in its website and in the Securities and Exchange Commission
the names and addresses of its officers in the Philippines anyone of whom is authorized to
receive summons and other court processes on its behalf.

SEC. 137. Citizen Suits. — For the purpose of enforcing the provisions of this Act and
its implementing rules and regulations, any citizen may file appropriate civil, criminal and
administrative suits against any of the following:

A. Any person who violates or fails to comply with the provisions of this Act or its
implementing rules and regulations;

B. Any public officer with respect to orders, rules and regulations inconsistent with this
Act;

C. Any public officer who willfully or grossly neglects the performance of an act
specifically enjoined as a duty by this Act or its rules and regulations; or abuses the
authority in the performance of a duties under this Act or its implementing rules and
regulations.

The court shall exempt such action from the payment of filing fees, except fees for
actions not capable of pecuniary estimation, and shall likewise, upon prima facie showing of
non-enforcement or violation complained of, exempt the plaintiff from filing an injunction
bond for the issuance of a preliminary injunction.

CHAPTER XIV
PENAL PROVISIONS

SEC. 138. Grounds for the cancellation of mineral agreements and permits. ~The
following shall be ground for cancellation of mineral agreements and permits.

A. Late or non-compliance with the requirements and prohibitions set forth in this Act,

or in its implementing rules and regulations;

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B. Violation of the Terms and Conditions of Permits or Agreements. Any act or
omission contrary to what is stipulated in the exploration permit, mining agreements
and other contracts shall cause the immediate revocation and termination of the said
permit or agreement. Likewise, any person who knowingly presents any false
application, declaration, or evidence to the Government or publishes or causes the
publication of any prospectus or other information containing any false statement
relating to mines, mining operations or mineral agreements and permits shall, upon
conviction, not only cause the immediate revocation and termination of the said
permit or agreement, but shall also be penalized by a fine of not exceeding One
Hundred Thousand Pesos (P100,000.00).

C. Human rights violations perpetrated by the contractor or any of its agents;

D. Failure to pay the taxes and fees provided forth in this Act;

E. Bribery, use of force, intimidation, threat, coercion of public officials and
communities;

F. Any act that shall create or contribute to conflicts between community members;
and

G. Other analogous acts, Provided, That violations of Chapter XI of this Act shall
cause the immediate cancellation of mining permits, including but not limited to
provisions of this Act, and the contractor shall be required to pay for the
rehabilitation, restoration or clean-up of the impacts of such violations.

Corporations, corporate directors or officers found guilty of the above enumeration

shall be perpetually banned for participating directly or indirectly in any and all mining
operations in the Philippines.

SEC. 139. Mlegal exploration. — Any person undertaking exploration work, upon

conviction, shall be penalized by a fine of not exceeding Five Million pesos (P5,000,000.00).

SEC. 140. Theft of minerals. - Any person, except traditional miners and small-scale

panners, extracting minerals and disposing the same without a mining agreement, lease, permit,
license; or steals minerals or ores or the products thereof from mines, mills or processing plants
shall, upon conviction, be imprisoned from six (6) months to six (6) years or pay a fine from
One Hundred thousand pesos (P100, 000.00) to One Million pesos (P1, 000,000.00) or both, at
the discretion of the appropriate court. In addition, the person shall be liable to pay damages
and compensation for the minerals removed, extracted, and disposed of. In the case of
associations, partnerships, or corporations, the president and each of the directors thereof shall
be responsible for the acts committed by such association, corporation, or partnership.

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SEC. 141. Vitiation of FPIC. — Any person found to have vitiated the consent of the
ICCs/IPs through bribery, threat, force, and/or intimidation, or any other similar means, shall
suffer the penalty of six (6) years and one (1) day to ten (10) years in prison, and a fine of at
least two million pesos (P2,000,000.00). If the perpetrator is a government official, the penalty
shall be eight (8) years and one (1) day to twelve (12) years imprisonment, and a fine of at least
four million pesos (P4,000,000.00). He/she shall be perpetually prohibited from assuming
public office, and shall be disqualified from receiving other benefits by virtue of his/her
position in government.

SEC. 142. Penalty for human rights violations. — Contractors or other persons who
have committed human rights violations in connection with the mining operations shall be
penalized with ten (10) to fourteen (14) years imprisonment and a fine of at least five million
pesos (P5,000,000.00) and shall indemnify the victims.

SEC. 143. Abandonment. — Contractors or permittees who shall abandon mines shall
be perpetually banned or disqualified from directly or indirectly conducting mining operations.
The ban or disqualification shall include the officers and directors of corporations that have
abandoned mines.

SEC. 144. Confiscation of equipment and property. — ‘The equipment and property of
contractors and permit holders violating this Act shall be forfeited in favor of the State.

SEC. 145. Non-application of the corporate veil. ~Any person violating the provisions
of Commonwealth Act No. 108, as amended, or is found to have used the corporate structure
to defeat the provisions of this Act shall suffer the penalty of five million pesos (P5,000,000.00)
and a perpetual ban in the mining industry.

SEC. 146. Unauthorized dealing, selling, or buying of gold. Any person, partnership
or corporation who shall sell, buy or in any manner deal gold from any miner or person without

being duly authorized by the Bangko Sentral ng Pilipinas shall be punished as unauthorized
dealing and shall be penalized in accordance with Section 138 of this Act.

SEC. 147. Amendment to Section 27 of Republic Act 7076 or the Small-scale Mining
Act. ~ Violations of the provisions of Republic Act 7076 or of the rules and regulations issued
pursuant hereto shall be penalized with imprisonment of six years and one day to twelve years.
The State shall confiscate and seize equipment, tools and instruments; effect immediate
suspension or closure of the mining activities of the permittee concerned, and revoke the

permit.

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SEC. 148. Confiscation of equipment and property. —The equipment and property of
small- scale contractors and permit holders who violate this Act shall be forfeited in favor of
the State.

SEC. 149. Administrative Penalties for local government officials. — Local
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be removed from office and perpetually disqualified from holding any elective or appointive

government officials who are administratively found to violate provisions of this Act, vi

the pertinent sections of Republic Act No. 7160 or the “Local Government Code of 1991

position in government, its divisions, subsidiaries and any government-owned and -controlled
corporations.

SEC. 150. Reinstatement of revoked permits. — After notice and hearing, revoked
permits that have undergone due process may be reinstated: Provided, That it may only be
reinstated once.

CHAPTER XV
TRANSITORY PROVISIONS

SEC, 151. Moratorium. — There shall be a moratorium on all new mining activities
until all the systems are in place for the proper implementation of this Act.

SEC. 152. Existing Mining Permits, Contracts and Agreements. — The DENR shall
conduct a review and audit of all mining permits, licenses and agreements for the purpose of
determining: (i) whether their continuance shall be advantageous for the Government in
accordance with the Mining Plan, and (ii) the level of compliance of the grantee or
concessionaire with its statutory and contractual undertakings and obligations in accordance to
this Act and other pertinent laws concerning environmental protection and conservation. Mine
workers and their families that may be displaced during the transition period shall receive
livelihood support and job placements to be facilitated by the appropriate agencies of the State,

SEC. 153. Review of mineral land classification. — A review of the current mineral
land classification shall be conducted to determine the best livelihood and economic options
for each area, No mining operations can start within mineral reservations unless finally
determined to be in compliance with this Act.

SEC. 154. The members of the panels of arbitrators and the provincial or city mining
regulatory boards established under Republic Act No. 7942 shall hold-over their positions until
replaced in accordance with provisions of this Act.

CHAPTER XVI
FINAL PROVISIONS

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SEC. 154. Appropriations. -The amount of One Hundred Billion Pesos
(P100,000,000,000) is hereby appropriated for the proper functioning of the Bureau, the
Council, and other bodies established under this Act of which half of the said amount shall be
allotted for the baseline mineral exploration activities of the MGB.

SEC. 155. Implementing Rules and Regulations. — Within ninety (90) days from the
effectivity of this Act, the Secretary of the Department of Environment and Natural Resources
shall, in consultation with representatives from the NCIP, LGUs, NGOs, POs, indigenous
peoples organizations, sectoral organizations, and other concerned government agencies, issue
rules and regulations for the effective implementation of this Act.

SEC. 156. Separability Clause. — If any section or provision of this Act is held
unconstitutional or invalid, the remaining sections or provisions with the provisions not
affected thereby shall continue to be in full force and effect.

SEC. 157. Repealing Clause. — All laws, decrees, executive orders, rules and
regulations, issuance or parts thereof inconsistent with this Act are hereby repealed or modified
accordingly.

SEC. 158. Effectivity. — This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,

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