Republic of the Philippines a
HOUSE OF REPRESENTATIVES > RECEWED %
Diliman, Quezon City e owe'15 8 Praate
Fifteenth Congress -
First Regular Session

Housé Bill Nod 474

HON. BERNARDO M. VERGARA AND HON. RONALD M. COSALAN

EXPLANATORY NOTE

INVESTMENTS in the mining industry serve a critical role in accelerating national
development, especially in alleviating poverty incidence through increased employment
and livelihood opportunities. It is therefore vital for government to provide a favorable
environment in the creation of support systems that will encourage a sustainable mineral
exploration and processing program, identify responsive research and development
priorities, and enhance capability building for industry manpower.

‘As an initial endeavor towards these support systems, it is essential for the
government to establish a Minerals Development Council that will set clear, stable, and
enduring investment and regulatory practices, raise industry standards, and promote a
favorable environment for mining investments towards a responsible mining industry
whose activities are undertaken in compliance with environmentally protective laws,
rules and regulations.

Under this bill, this Council will be composed of all stakeholders to ensure that
policies promulgated will redound to the national welfare, safeguard the ecological
integrity of areas affected by mining operation, and make certain that economic and
social benefits derived from mining are equitably shared by and among local government

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Diliman, Quezon City

Fifteenth Congress
First Regular Session

HOase Bill No, 5474

HON. BERNARDO M. VERGARA AND HON. RONALD M. COSALAN

“AN ACT CREATING THE MINERALS DEVELOPMENT COUNCIL OF THE
PHILIPPINES, DEFINING ITS POWERS AND FUNCTIONS, APPROPRIATING
FUNDS THEREFOR, AND FOR OTHER PURPOSES.”

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

SECTION 1, Declaration of Policy. Pursuant to the regalia doctrine of State
ownership of all mineral resources, it is hereby declared the policy of the Government to
promote the responsible exploration, development and utilization of mineral resources, in
a manner that adheres to the principles of sustainable development and due regard for
justice and equity, and respect for Philippine sovereignty, by mobilizing the entire
government bureaucracy to support, enhance, and strengthen the operations and programs
relative to minerals development.

SECTION 2, Guiding Principles. The pursuit of the foregoing policy shall be guided
by the following principles

a, Government recognizes the critical role of investments in the
mineral industry for national development, especially in poverty
alleviation through increased employment and livelihood
opportunities

b. Support systems shall be established for a sustainable exploration,
development, and utilization of mineral resources, a responsive
research and development priorities, and a capability building
effort for continuing industry manpower.

¢. Investment and regulatory policies shall be instituted for clear,
stable, predictable and forward-looking standards in attracting and
facilitating investments in mining towards an equitably prosperous
mining industry

d, Value-added regulations shall be emphasized to encourage
optimum benefits from minerals for the Filipino people through the
development of downstream industries that will contribute greater
productivity and efficiency.

e. Efficient technologies shall be adopted to ensure the judicious
extraction and maximum utilization of non-renewable mineral
Fesources $o as to enhance greater sustainability

£. The protection of the environment shall be a paramount obligation
in every stage of mining operations, towards which goal adequate
mitigation and progressive rehabilitation measures shall be
instituted.

g, The ecological integrity of areas affected by mining operations.
including biodiversity resurces and small-istand ecosystems, shall
be upheld so as to enhance public welfare, safety, and
environmental quality.


fh. Mining operations shall be conducted within the framework of
multiple land use and sustainable utilization of mineralized areas.

i. The remediation and rehabilitation of abandoned mines shall be
prioritized to address the negative effects of past mining projects.

j. The economic and social benefits derived from mining shall be
equitably shared by and among the various units of government
and the affected communities.

k. Sustained information, education and communication programs
about the mining industry shall be undertaken vigorously, jointly
with the industry and other stakeholders, to enhance public
awareness, to attain full respect for community rights, and to
‘encourage informed decisions on mining and related projects, both
at the national and local levels.

1. Continuous and meaningful consultation processes with the
industry and all stakeholders shall be instituted so as to integrate
concems on minerals in resource management policy and planning

SECTION 3. Creation of the Minerals Development Council. To carry out the
provisions of this Act, there is hereby created a Minerals Development Council,
hereinafter referred to as the Council, under the Office of the President. The Council shall
have the primary responsibility of advancing the government policy of responsible and
sustainable development of the State's mineral resources.

SECTION 4. Composition. The Council shall be composed of the heads of offices of
the following:

Department of Environment and Natural Resources - Chairman
Presidential Adviser for Multilateral Development ~ Vice Chairman
Department of Interior and Local Government - Member
Department of Finance - Member

National Economic and Development Authority - Member
Department of Trade and Industry - Member

Department of Agrarian Reform - Member

Department of Agriculture + - Member

‘Department of National Defense - Member

Department of Labor and Employment - Member

Presidential Management Staff - Member

National Commission on Indigenous Peoples - Member
National Anti-Poverty Commission - Member

Philippine Information Agency - Member

‘Chamber of Mines of the Philippines - Member

League of Municipalities of the Philippines - Member

League of Provinces of the Philippines - Member

League of Cities of the Philippines - Member

Liga ng mga Barangay sa Pilipinas - Member

‘The Chairman, serving in an ex officio capacity, shall preside at all meetings of the
Council and ensure that all policies, directive, plans and programs of the Council are
faithfully carried out

There shall be an Executive Director with the rank of Undersecretary who shall be
appointed by the President to manage the day-to-day affairs of the Council

The representatives from the members of the Council shall have the rank of
Undersecretaries. The Chamber of Mines of the Philippines shall be represented by its
President.



SECTION 5. Meetings. The Council shall meet regularly at least once a month or as
often as necessary at the call of the chairperson or a majority of the members. A majority
of the members of the Council shall constitute a quorum to do business. The members of
the Council shall be entitled to honoraria based on existing government accounting and
auditing rules and regulations.

SECTION 6. Powers and Functions. The Council shall exercise, among others, the
following powers and functions:

a. Enlist the assistance of any branch, department, bureau, office, agency, or
instrumentality of the government, including government-owned and
controlled corporations, to implement programs relative to mineral
development, to harmonize investment-related requirements and
procedures, and to facilitate investments in the minerals sector.

b. Assist investors in the minerals sector by providing information, guidance,
direction and solutions.

¢. Facilitate easier direction of tasks and reporting of accomplishments of the
objective set out in the Minerals Action Plan that arose from Executive
Order No. 270, series of 2004, as amended, otherwise known as
the National Policy Agenda on Revitalizing Mining in the Philippines.

4. Review all aspects related to the investments in the mineral industry,
recommend short-term and long-term measures, and take appropriate
actions to address critical policy institutional implementation, and
operational issues and concerns relative to the investments in the mineral
industry, and monitor the effective implementation of all programs on
minerals development

e. Advise the President on timely and effective solutions to the problems
affecting the influx of investments in the minerals industry.

f Promote investments in the minerals industry, including but not limited to,
organizing and coordinating investment road shows, missions, trade fora,
ete,

Prepare and submit reports to the President on the status of investments in
the minerals industry.

h. Create regional Mineral Development Councils in key regions where there
exist mineral development projects as determined by the DENR-MGB,
and

i. Perform such other functions as may be directed by the President.

SECTION 7, Funding. Initial funding for the operations of the Mineral Development
Council shall be sourced from such available resources as may be determined by the
Department of Budget and Management

SECTION 8, /mplementing Guidelines. ‘The Mineral Development Council shall
adopt such operating guidelines as may be necessary to implement and achieve the
objectives of this Act.

SECTION 9, Annual Report. The Council shall, within ninety (90) days after the end
of every fiscal year, submit to the President and to Congress an annual report on its
compliance with, or accomplishments under this Act, together with its plans and
recommendations to improve and develop its capability to enforce the provisions of this
Act: mda complete accountng of wansactions with respect to any funds received under



SECTION 10. Repealing Clause. All other laws, decrees, orders, issuances, rules and
regulations which are inconsistent with the provisions of this Act are hereby repealed,
amended or modified accordingly.

SECTION 11. Separability Clause. If, for any reason, any provision of this Act, or
any part thereof, is declared invalid or unconstitutional, all other sections or provisions
not affected thereby shall remain in force and effect.

SECTION 12. Effectivity. This Act shall take effect fifteen (15) days after
publication in the Official Gazette and two (2) newspapers of general circulation.

APPROVED,