Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGKESS
First Regular Session

HOUSE BILL No. 2519

Jotoduced by Reps. TEDDY A. CASINO, LUZVIMINDA C. ILAGAN, NERI JAVIER,
COLMENARES, RAFAEL V. MARIANO, RAYMOND V. PALATINO,
ESMERENCIANA A. DE JESUS and ANTONIO L. TINIO

EXPLANATORY NOTE

In 1993, the Philippines passed Republic .\ct (RL) 7942, which liberalized foreign access and control
in every aspect of the domestic mining industry, inclading exploration, development and utilization.
RA 7942 superseded the country's previous laws on mining, such as the interim Presidential Decree
463 issued by Presiden Ferdinand Marcos in 1974 and laws upheld by the United States colonial
government, including the US. Mining Act of 1972, the Mining Law of 1905, and Commonwealth
Act 13° or the Mining Act of 1935.

KA 7942 was opposed right from the start, lis constitutionality was questioned by a broad range of
social sectors and civil society organivations (CSOs), including environmental groups, lawyers,
scientists, academics, patriots, and agricultural and indigenous peoples associations.

In 2004, the Supreme Court (SC) of the Philippines finally declared RA 7942 as unconstitutional, in
the case of the La Bugal B'laan Tribal Association rs. Ramos, But before the year ended, the SC reversed
its own decision, and instead went on to adopt policy shifts such as moving from ‘active tolerance’ to
‘promotion’ of mining investments. ‘The executive branch issued various executive and
administrative orders to harmonize laws with the Mining Act of 1995 and to create a favorable
climate fur forcign investors.

Historically, state policy has framed the Philippine minerals industry as a driver for increased foreign
economic investment and a domestic source of employment. The Philippine government has,
pursued the policy of liberalizing the mining industry within the context of tying the industry to
extraction and export orientation of raw mineral ores, import dependence on foreign capital and
technologies, and control by foreign and private entities.

This policy has created an unsustainable situation for the nation, the environment, and the people
Fifteen years have passed since RA 7942 was sigaed into law and implemented under four
Presidential administrations. Now, the country, its ecosystems, and its citizens are suffering from the
various adverse impacts of the law's implementation and its policy thrust.



Disasters caused by decades of liberalized mining operations have caused some of the worst
eoviroamental tragedies in the country. The Marcopper mining disaster in 1996, one of the
country’s worst industrial accidents to date, has left the Boac iver biologically dead. ‘The Rapu-Rapu
mine accident in 2005 caused one of the country’s worst mining-related fish kills, crossing over from
Albay Gulf 0 Sorsogon Bay. Other phenomenon related to mining operations in local commoaities,
such as land subsidence, acid mine drainape, and landslides, have been documented with increasing
frequency over the past years. The damage done to the country's mountainous, agricultural, and
aquatic ecosystems has been immense.

The losses sustained by the country’s other environmental resources loom in comparison to the
promised gains of the industry. Contrary tw projections, the country did not reap the full benefits
from the current mining liberalization policy: As of September 2009, mining investments have oaly
totaled P100.8 billion or U'S$2.1 billion since 2004 ~ merely 35 percent of the rotal mining
investments targeted in the Medium Term Philippine Development Plan (MIPDP) for the period of
2004 to 2010. The industry's contribution to the Philippine Gross Domestic Product in 2008 is
negligible at 1.4 percent. As of 2007, the government was abie to collect only minimal earnings from
the industry: only P2 billion in paid-up investments in mining, rotal taxes of P26 billion (1'S$0-55
billion) or only 8 percent of its total target in 2007.

Many of the comnnunities which were opened up to mining ate still among the poorest
municipalities nationwide. Meager, unstable and low-paying jobs in the mining industry have
contributed to labor insecurity, a diminished quality of life, and unrest among Filipino workers, their
families, and their communities. The industry has failed to meet its promises of creating more jabs,
creating only 13,642 jobs, or 5.36 percent of its intended projection of 239,000 indirect and direct
employment, in 2008. Most of the few jobs available ro local workers are contractual, dangerous,
and low-paying in nature,

The current policy on mining has spawned more physical, social and economic displacement of
affected communities and human nghts violations. Indigenous people's communities and their
ancestral domain, the last bastions of our pre-colonial heritage, have been dispossessed of their
lands, whether through coercion, exigency, or collusion in relation to mining projects. Agricultural
and fishing communities affected by the downstream environmental impacts of mining suffer from
diminished productivity and food insccurity. In the past ten years, more than 20 Filipinos have been
Victims of extrajudicial killings in circumstances related to their advocacy against mining projects.
Others have documented cases of both physical and legal harassment, where citizen's rights ta
public participation are violated with impunity

‘The current law, policy, and practices currently governing the Philippine mining industry are
unsustainable from an economic, ecological, legal, cultural, and humaa sights perspective. They can
aot and should not be pursued any further, in the interest of protecting the country’s remaining
finite mineral resources and oational patsimony from more plunder; in the interest of allowing State
and Filipino citizens to fully benefit and reap the gains from the country's vast mineral wealth.

CSOs, grassroots communities, and local governments have long been clamoring for the repeal of
RA. 7942 and the passage of alternative legislation. In 2002, the multisectoral Dapitan Initiative, and
the Dapitan Declaration affirmed the commitment of non-government entities and advocates to
work for the enactment of new legislation based on certain principles,


I 2008, the People's Mining Policy (PMP), an akernative policy framework for the Philippine
mining adustry, was drafted and affirmed by the nationwide nerwork Defend Patrimony though a
series of consultations with people's organizations and CSOs,

Local government officials at the provincial level have also upheld LGU-based measures such as
moratoriums on large-scale and/or open pit mming, These efforts at the grassroots level of the past
years are now converging into concrete proposals in policy and legislation for the Philippine
government fo heed and take action on.

‘This bull 1s an amalgamation of previous alternative policy proposals which seek ro reosent the
Philippine mining industry towards the wise and sustainable development and judicious use of our
mineral resources, It defines the significant roles that mining and a prosperous minerals industry in
attaununy a progressive, independent and seli-reliant economy. Tt seeks to situate the Philippine’s
extensive mineral wealth is part of its national paccimony, a resource that has the potential to propel
the country towards industrialzation and self sufficiency.

Iris estimated that the countre has around 7.1 billion metric tons (BMT) of metallic mineral
reserves (such as jrold, coppers, and nickel) and 51 BMT of non-metallic deposits. Combined, the
total value of these resetves could reach around ('S§840 billion to US§1 tillion: ten times the
country's gross domestic product and 14 to 1? times larger than its cntire external debe

If properly regulated and developed, these resources will be a requisire to developing a stroag, self
reliant and progressive economy, founded on a healthy balance between agriculture and
industriabzation and programmed to break the cycle of the countey’s underdevelopment.

This bill will address the oeed for an alternative framework (or the mining industry which should be
anchored on the principles of social justice, respect for people’s rights and welfare, environmental
conservation, defense of national sovereignty and patrimony, and national industrializarion

In view of the forgoing, the passage of rhis bill is earnestly sought

BCose

!DDY A. CASINO

. Bayan Muna Party-list on Qeo:

JAVIER COLME!

Approved.

Meoa Party-list
RAYM! YV. PALATINO
Anakpawis Party-list Kabatafn Party-list
; /
ne CS Er
EMERENC! A. DE JESUS ‘ONI tio

Gabriela Women’s Party ACT Teachers Party-list


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILLNo. 245

Introduced by Reps. TEDDY A. CASINO, LUZVIMINDA C. ILAGAN, NERI JAVIER
COLMENARES, RAFAEL V. MARIANO, RAYMOND V. PALATINO,
EMERENCIANA A. DE JESUS and ANTONIO L, TINIO.

AN ACT
RE-ORIENTING THE PHILIPPINE MINING INDUSTRY, ENSURING THE
HIGHEST INDUSTRY DEVELOPMENT STANDARDS, AND FOR OTHER.
PURPOSES

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

CHAPTER I
DECLARATION OF POLICIES

Section 1. Short Title. This Act shall be known as the PEOPLE’S MINING ACT OF 2011.

Section 2. Declaration of Policy. It is enshrined in the Philippine Constitution that the State owns
all he mineral, coal, natural gas and petroleum resources within its national territory, its terrestrial,
fluvial and marine domains, including its tercitorial sea, the seabed, the subsoil, the insular shelves,
and other submarine areas within its archipelagic baselines. The appropsiate 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
industrializatioa through the natioaalization 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 and Mining Plan thar adheres to the following:

a. the medium- and long-term needs of the Philippines;


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

©. the tight to self-determination of the indigenous and Moro peoples;

4. the generally accepted principles as 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 tights, the
rights of women and children, and the protection and preservation of the environment, of
which the State is a party; and

€. abalanced and healthful ecology.

Section 3. Mining is important to nation building and the economic advancement of our people.

The mineral industry plays an essential role in establishing a propressive, independent and self
reliant economy,

The State shall endeavor to craft and implement its National Industrialization Program and Mining
Plan that provides the framework for the utilization and management of the country’s mineral
resources that will address the needs of the domestic economy and upholds the rights of industry
workers, indigenous peoples and local communities.

The said Mining 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 and rural development.

Section 4.1}he exploration, development and utilization of natural resources shall comply with the
following principles:

(ly 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 achicving
genuine economic development;

2} 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 faite mineral and non-mineral
industrial raw msterials and in the process provide jobs to the country’s vast human

resoutces;

(3) the State shall provide the appropriate support and protection to Filipino corporations 10
further develop and increase their participation in the industry. All mining industry
investinents shall be routually-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 sid co local private sector investors, xe-channeling of government budget
allocations for foreign debt payments and military expenditures, and the proceeds from the
government shares of the Malampaya Natural Gas Project;

(4) the State shall allow, in exceptional cases, forcign corporations to invest in the mineral
industry. Based on the National [ndustrialization Program and the country’s capability and
capacity, the government must identify the mineral areas wheze foreigners can help and


invest subject (0 rigorous screening and strict regulations as provided in this Act and related
laws. ‘I'he participation of foreign companies in the critical stages of minerals extraction and
processing shall be in accordance with a mandatory program or agreement fot technology
transfer and equity shares that do not exceed 40 percent of the full capital requirements;

Provided, that capital accumplation and reinvestment within the country shail 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 arc banned from investing in the country;

(5) the development of the mining industry shall help modernize Philippine agriculrure, aid
genuine agrarian reform by prohibiting mining in prime agricultural lands, areas specificd for
food production, fisheries development and small jshad ecosystems. Additional’, off-site
effecis of mining shall not have disadvantageous effects on downstream areas;

(6) long-term mining development shall be programmed by the State in accordance with the
county's availability of resources, capability and well being of the people, technological
capacity and people’s acceptability. ‘/he right of Muslim Filipinos and indigenous peoples to
self-determination and ancestral domain shall be recognized and their collective property
rights ate guaranteed by this Act;

©) job security, adequate wages, benefits, and safe working conditions for mine workers shall be
ensured in state and privately owned mining corporations. Theie right to organize and form
their own associations, ro collective bargaining and to strike shall be upheld. The state will
strictly prohibit forced and child labor in the industry.

8) small-scale mining operations shall be supported and regulated by the state. The stare 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 envixoamenually destructive mining process. Whenever small-
scale mining are stopped, akernative and sustainable livelihood shall be provided to the
small-scale miners

(9) im 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 ot force the
entry and protection of mining operations;

(10) mining industry research and development shall focus on harnessing more cconomically-
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;

(21) 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 ate relevant
and appropriate, parucularly with respect to the domestic processing of minerals shall be
promoted, harnessed, expanded and upgraded;


(12) 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 and/or proven inappropriate in countries like the Philippines must 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 climinate destructive effects that ccrtain
mining industrial processes might have on the people's health and the environment.
Monitoring mechanisms with strong patticipation from the local communities will be
instituted;

(13; mining in environmencally-ccitical areas such as small island ecosystems, primary forests and
watersheds shall be banned. Dumping of mine wastes and tailings to rivers, lakes and seas
are prohibited;

(14) areas affected by mining shall be rehabilitated, including abandoned mines. Violators shall
be strictly punished and made to pay heavy compensation to the Stare and the affected
communities.

CHAPTER II
SCOPE AND GENERAL PRINCIPLES

Section 5. Scope, This Act shall cover the ownership, management and governance of both
metalic and non-metallic minerals, as well as quarry resources, sand and gravel, guano, magnetite,
and gemstones; including the conservation, exploration, development, utilization, processing and
transportation thereof. The ownership, management and governance of petroleum, aanural 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.

Section 6, All ore minerals are part of the national patrimony and form part of the country’s
isrplaccable and non-renewable natural wealth and capital. ‘The conservation of our mineral wealth
is of paramount public interest and mineral resources shall be utilized only in a cational manner for
national and local development as specified by law and the National Industrialization Program and
the Mining Plan.

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

Section 8. The State shall encourage and support Filipino private corporations and mining
cooperatives to participate and invest in the mining industry on mutvally-beneficial grounds that will
push forward the National Industeialization Program in both small-scale and large-scale projects


Section 9. Mineral resource extraction shall be allowed based on the Philippine Government's
National Industrial Plan. The sharing of profits from mining activities, including the anticipated
environmental and social costs on the affected local communitics of each mining project, should
substantially exceed the returns compared to alternative land uses. ‘The environmental and social
costs shall be prevented and/or mitigated at all times with the appropriate allocation of sufficient
funds for this purpose. In mining projects with forcign participation, a just return of investment
scheme for the foreign entrants into the industry shall be prescribed by law.

Section 10. The State shall support indigenous cultural communities/indigenous peoples
{CCs/1Ps) in developing capacities to effectively exercise their rights and responsibility, including
their right to sclf-determination. 1CCs/IPs have the shared responsibility with the State to manage
the mineral resources in their respective ancestral domains, They shall be fice from external
interference, manipulation, threats, intimidation, coercion and other analogous acts.

Section 11, The State shall prioritize the development of mincral resources that are necded for
national development and for the creation of domestic processing capacity for industrial metals, che
integration of agricultural modernization, and downstream industries that will generate employment.
‘The Mining Plan shail be formulated to meet the country’s needs to build basic, medium and heavy
industries for the country tw attain sustainable development advances and modernization of its
economic base.

Section 12. 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 ta the environmental, social and economic costs

Section 13, The State shall ensure the fullest compliance of all government and corporate entities in
and on the closure of mines, the rehabilitation/restoration of the immediate environs or each
mining project/activity in the country as provided by law

CHAPTER III
DEFINITION OF TERMS

Section 14, Definition of terms, For the purposes of this Act, the following terms shall mean:

a. Abandonment - the contractor's act of leaving a mine project without rehabilitating the
affected areas despite the legal obligation to do the same;

b. Acid mine drainage - the dissolution, mobilization and transportation of taxic 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 othet 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 - 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 iadividually since
time immemorial, continuously to the ptesent except when interrupted by was, fore majeure,


deceit, stealth or as a consequence of government projects or any other voluntary dealings
entered into by government and private individuals /corporations, and which are necessary to
ensure their economic, social and cultural welfare. Ic shall include ancestral lands, forest,
pasture, residential, agricultural, and other lands individually owned whether alicnable and
disposable or otherwise; bunting grounds, burial grounds, arcas of worship, bodies of watcr,
mineral and other natural resources, and lands which may no longer be exclusively occupied
by ICCs/TPs 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 and/or shifting cultivators.

4. Ancestral lands - lands occupied, possessed and utilized by individuals, families and clans
who are members of ICCs/IPs since time immemorial, by themselves or thtough their
predecessors-in-interest, under claims of individual or traditional group ownership,
continuously, to the present except when interrupted by war, fone majeure ot displacement by
force, deceit, stealth, or as a consequence of government development aggtession 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;

¢. Beneficiation —a process whetcin a large fraction of the waste material is removed from
the mineral ore;

£ Buffer Zones — identified areas that are outside the boundaties 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;

g Bureau — denotes the Mines and Geosciences Bureau (MGB) under the Department of
Environment and Natural Resources (DENR);

h, Carrying capacity - the capacity of the aatural and human environments to
accommodate and absorb changes without giving tise to conditions of ecological instability
and degradation;

i. Certificate of Ancestral Domaine Title (CADT) - « title that formally recognizes the
nights of possession and ownership of ICCs/IPs over their ancestral domains idennified and
dclineated in accordance with law;

j- Certificate of Ancestral Lands Title (CALT) - a tide formally recognizing the tights of
ICCs/IPs over their ancestral lands,

k. Closure of mines - the permanent termination of operations at a mine ot tine
Processing site after its complete decommission;

1 Consensus - the decision collectively reached after the approptiate participatory
consultations and discussions that are free from any external manipulation, interference and
coercion, and other analogous acts; and obtained after fully disclosing the intent and scope,
inchading the positive and negative impacts, of the mining activity in a language and process
understandable to the community or group;


m, Consent - the voluntary assent of the landowner of those who have been in open,
continuous, and exclusive possession of che 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;

n. Contract atea - the area delineated as specifically provided by a mineral agreement for the
development of utilization of mineral resources found therein;

o. 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, thar needs immediate rehabilitation and
protection ta minimize soil erosion, improve water yield and prevent possible Jooding, The
term shall also include areas which are traditional arcas for human settlements, land-uses, or
sea-uses which arc representative of a culture (or cultures), or human interaction with the
cavironment especially when it has become vulnerable under the impact of irreversible
change;

p. Critical habitats — areas where species and/or subspecies naturally occur ot that have
naturally established its population that are crucial to the survival of other species and are
essential for its conservation;

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

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

s Decommissioning - the activity or procews that commences after the cessation of
prospecting activities or mineral production, including metallurgical plant production. Le
involves, among others, the removal of uawanted 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:

+ Downstream industries — are mining activities that cover minerals processing, refining,
manufacturing of intermediate and capital goods and marketing of such;

u. Ecological profile - geographic-hased instruments for planners and decision-makers
which present an evaluation of the environmental quality and carrying cajyacity of an area
and measures the specific interactions that will be affected by any and all mining operations;


v. Exploration — covers the methods of searching or prospecting for mineral resources by
non-invasive means for the purpose of determining the existence, extent, quantity and
quality thereof, which may include but are not limited to seismic, gravity, magnetic,
electromagnetic, tadar, induced polarization, radio-wave and electro geochemical;

w. Extraction - ore-removal activities that take place at the mine site itselé

x. Free, prior and informed consent (FPIC) - the consensus of all members of the
ICCs/LPs 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, inchading the positive and negative
impacts, of all the activities, in a language and process understandable and acceptable to the
community;

¥ Indigenous peoples/Indigenous cultural communities (IP/ICC) - 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 tertitory, and who bave, under claims of ownership since time immemorial,
occupied, possessed and utilized such tertitorics, sharing common bonds of language,
customs, traditions and other distinctive cultueal traits, or who have, through resistance to
political, social and cultural inroads of colonization, non-indigenous teligions and cultures,
became historically differentiated from the majority of Filipinos. ICCs/IPs shall likewise
inchide peopics who are regarded as indigenous on account of their descent from the
populations which iohabited the country, at the time of conquest or colonization, or at the
time of inroads of non-indigenous religions and cultures, of the establishment of present
state boundaries, who retain some ot all of their owa social, economic, culeural 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;

z. Indigenous political structure - refers to organizational and cultural leadership systems,
institutions, relationships, patterns and processes for decision-making and participation as
identified by ICCs/1Ps such as, but not limited to, Council of Elders, Council of Timuays,
Bodong Holders, and any other tribunal or body of similar nature,

aa. Joint Venture Agreement - an agreement wherein the government and a qualified
person organize a joint-venture company, with both parties having equity shares, co 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;

bb. Key biodiversity areas - are places of international importance for the conservation of
biodiversity;

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


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

ce. Minetal resource - any concentration of minerals/tocks with potential economic value;

ff. Mineral processing - the milling, beneficiation or upgrading of ores or minerals and
rocks or by similar means to convert the same into markerable products;

8 Minerals - all naturally occurring inorganic substances in solid, gas, liquid, or any
intermediate state excluding energy materials such as petroleum, natural gas, cadioactive
materials, and geothermal energy;

hh. Mine development - preparing the mine site for production by shaft sinking ot pit
excavation, building of access roads, and coastructing of surface facili

ii, Mine wastes and tailings - rock materials from surface or uaderground mining and
milling operations with litde or no economic value f0 the genctator of the same;

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

kk. Mining area - a portion of the contract area which has been identified by the contractor
wherein actual mining operations shall be conducted:

IL Mining operations — any and all of the mining activities involving the acts of
exploration, feasibility, development, utilization, and processing;

mm. National Industrialization — in the mining industry, this shall denote the primacy of
mineral production, processing and distribution for the primary benefit of the domestic
economy, ‘his includes creating farorable conditions for Filipino entrepreneurs to engage
in mining through various state-private agreements that shall ensure that mining shall help
spur mote domestic investments, increase agriculcaral production and produce both
consumer and producer goods and manufactures;

on. National park - 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, of 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;

oa. Native title - pre-conquest rights to lands and domains which, as far back as memory
teaches, have been held under a chim 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 - forests composed of indigenous trees, not planted by man, whose
structure, functions, and dynamics have been largely the result of natural succession
processes;

qq. Natural parks - is « 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 arcas of national of international significance for scientific,
educational and recreational use;

rt Open-pit mining - 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,

sx Ore - a material chat contains mincrals 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;

t. Pollution control and infrastructure devices - infrastructure, machinery, equipment
and/or improvements used for the impounding, treating, ot neutralizing, precipicating,
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. Private land - any land belonging to any private person which includes alienabie and
disposable land being claimed by a bolder, claimant, or occupant who has already acquired a
vested right thereto under the law, although the corresponding certificate or evidence of nde
‘or patent has yet to be issued;

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

ww, Progressive rehabilitation — a rehabilitation that involves the staged treatment of
disturbed areas during mining exploration, construction /development and extraction
operations;

xx, Protected areas - identified portions of land and water set aside by reason of cheit

unique physical and biological significance that are managed to enhance the biological
diversity and protected against destructive human exploitation;

yy: Protected landscapes, seascapes, marine sanctuaries - areas of national significance
which are characterized by the harmonious interaction of man and the environs while
providing oppornnities for public enjoyment through recreation and tourism within the
bounds of the normal lifestyle and economic activity of these areas;

72. Quatty resoutces - 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, but
not liaited to, andesite, basalt, conglomerate, coral sand, diatomaceous earth, diorite,
decotative stones, gabbro, granite, limestone, marble, marl, red burning clay for potteries and


bricks, rhyolite, rock phosphate, sandstone, serpentine, shale, ruff, volcanic cinders, and
volcanic glass;

Provided, That such quarry resources do not contain metals or metallic constiments and /or
other valuable minerals in economically workable quantities;

Provided further, ‘Vaat non-metallic minerals such as kaolin, feldspar, bull quartz, quartz. or
silica, sand and pebbles, bentonite, talc, asbestos, banite, gypsum, bauxite, magnesite,
dolomite, mica, precious and semi-precious stones, and other non-metallic minerals that may
liter be discovered and which the Director declares the same to be of econotnicallr
workable quantities, shall not be classified under the category of quarry resources;

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

bbb, Regional director - the director of any MGB regional office;
cce, Regional office - any of the MGB regional offices;

ddd. Recycling - shall refer to the treating of used o waste materials through a process of
making them suitable for beneficial use and for other purposes, and inchades 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:

Provided, That the collection, segregation and re-use of previously used packaging materials
shall be deemed recycling under this Act,

cce. Rehabilitation - the peocess by which the laad will be returned to a form and
productivity in conformity with a prior land use plan, including a stable ccological state that
does not contribute substantially to environmental deterioration;

féf. Remediation - removal of pollution of contaminants from eavironmental media for
general protection of the arca and the people;

ggg: Remining - maximizing and recovering the remaining minerals from the rejects or
wastes of previous mines and mining operations;

hhh. Restoration - the act of bringing back the original, or the closest possible state, of the
forest and biodiversity:

iii Self-determination - refers to the right of a people to determine its own political destiny
as defined by existing Philippine laws. ‘Vhe right to seif-determination has includes the right
of ICCs/IPs to choose their form of government within existing national botders to achieve
a greater degree of autooomy to help preserve their culeurc, ancestral domain, and way of
life;

ij Small-scale mining - mining activities which rely heavily on manual labor using simple
implements and methods and do not use explosives or any heavy mining equipment,


primarily cngaged 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;

kkk. Small-scale mining permit - permit issued for small-scale mining

UL Strategic minerals - minerals needed for national industrialization, including rural
development;

mmm. Tailings Disposal System ot Tailings Placement - the method wherein the mining
wastes are dumped, placed, or disposed;

non. Traditional small-scale mining - small-scale mining using traditional means and
without the use of chemical or mechanized extraction and separation means, methods,
implements, and/or equipmear,

000, Watershed system - land area drained by a stream or a fixed body of water and with
tributatics having a common outlet for surface run-off. It is the system by which the mining-
affected communitics shall be determined following the drainage of a stream or fixed body
‘of water with tributaries having a common outlet for surface runoff

ppp. Wildlife - uadomesticated forms and varieties of flora and fauna

CHAPTER IV
OWNERSHIP AND GOVERNANCE

Section 15. Anthority of the 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
W: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 activites.

Section 16. Regional Offices. The Bureau shall have as many regional offices in the country as may
be established by the Secretary, upon the recommendation of the Director.

Section 17. Bureau as repository of information. The Bureau 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 subtnit.
All other governmental offices and other bodies created under this Act shall furnish copies to the
Bureau of all other information related to mining

Section 18, Access to Information. All contractors for mineral permits and agreements shall
provide information to the Bureau and the affected indigenous peoples, local communities, and local
goverament units. The following information of full disclosure, among others, shall be requited:

{@) the methods and processes of mining tw be used by the contractor,
(©) the environmental and social risks,
(©) the ownership structure of the contractor / company,


(@) the sources of financing, including loan agreements;

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

‘The Bureau, being the repository of all relevant information under this Act is mandated to grant the
public access te any information in its custody. ‘The refusal or unnecessary delay by officers of the
Bureau 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.

Section 19. Recording System. There shall be established a national and regional filing and
recording system. A mincral resource database system shall be set up in the Bureau which shall
include, among others, a mineral rights management system.

Section 20. Publication. The Bureau shall publish at least annually a mineral garctte 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. .\ publication fund shall be included in the regular
budget of the Bureau,

Section 21. Bureau to conduct exploration activities. The exploration of mineral resources shall
be exclusively and directly undertaken by the State through the Bureau.

Section 22, Non-invasive exploration. Exploration activities shall exhaust all non-invasive methods
such as seismic, gravity, magnetic, electromagnetic, radar, induced polarization, radio-wave and
electro-geochemical before proceeding to drilling,

Section 23. Consent. The Bureau shall not enter into any private lands for the purposes of
exploration activities without the written consent of the land owner, possessor and/or occupant, ot
the FPIC of the ICC/IP and payment of just compensation for the use of property.

Section 24. Ownership of ICCs/IPs. The mineral resources within 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,

Section 25, Free, prior and informed consent (FPIC). No mining activity shall be conducted
within the ancestral domains/lands of ICCs/IPs without their free, prior and informed conseat
(EPIC), in addition to the conditions set for in the succeeding sections of this Act.

For instances wherein there are questions on the legalicy or validity of the issued FPIC, mining
operations shall not be allowed in the ancestral domains or lands of the ICCs/IPs without the final
resalution of such question on the legality or validity of the FPIC.



Section 26. When ancestral domain is yet to be formally recognized. When an ancestral domain
is not covered by a Certificate of Ancestral Domain Title (CADT) ot Certificate of Ancestral Land
Title (CALL), ot is covered by a different tile issucd in favor of members of the ICCs/IPs, then
minetal resources shall nevertheless he managed by the ICCs/IPs concerned when it can be
presumed that the area is part of ancestral domain. An arca is presumed to be part of an ancestral
domain by virtue of historic rights and self-detincation of dhe ICCs/IPs

Section 27. ICC8/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 claitn of tide emanating from the State. In such cases, ICCs/IPs shall
continue to own such mineral resources.

Section 28. Ownership of mineral resources. ‘he 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 mincral resources shall be primarily for the benefit of the local communities in
whose tertitory the same shall be found. Any minerals extracted shall be used for local industries
consistent with the Mining Plan. The State may directly undertake the development, utilization and
processing of mincral resources ot enter into mineral agreements with eligible parties pursuant (o
the provisions of this Act.

Section 29. Inventory of mineral resources. The Bureau shall identify and provide an inventory of
all the available mincral resources, including the mine tailings and wastes within the councry. It shall
submic to the DENR a report which shall contain che following information:

a. the classification of minerals;

b the quality and grade of the ore;

©. the potential mine life;

4. the geological description of the arca;

€ the economic viability of mine tailings; and

£ all other rclevant information necessary for potential mineral investments.

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

Section 30. Strategic minerals. The Bureau shall conduct researches and studies prior to any
maining operations to identify strategic mineral resources. Mincral resources needed fot local
industries, agriculrural modernization and rural development shall be opened to mining subject to
the implementing rules and regulations of this Act.

Section 31. Demarcation of mineral areas. The Bureau shall demarcate the boundaries of all areas
identified as containing commercial quantities of mineral resources.

Section 32. Information on watershed continuums. The baseline information oa all warersheds in
the country shall be required and made accessible to the public in all forms, including the websites


of the Bureau and the National Water Resources Board (NWRB). No mining permit shall be issued
without this baseline information

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

Section 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 us many Multi-Sectotai
Mineral Councils as there ate demarcated mincral areas.

Section 35. Powers of the Council. ‘fhe Council shall have the following powers, among others:

a. To determine whether or not mining operations shall be allowed;

b. To deliberate on proposals for mineral agreements;

¢ To approve the proposal for mineral agreements;

d. ‘lo monitor the conduct of mining operations; and

€ To establish its internal rules of procedure which are not contradictory to this Act.

Section 36. Composition of the Multi-Sectoral Mineral Council. The Multi-Sectoral Mineral
Council shall be composed of representatives from (a) the Bureau, a representative from the
DENR, one representative from each of the affected provincial governments /independent
component cities/highly urbanized cities (LGUs); () as many representatives from the
stakeholders in mining-affected communities; and (c) representatives from
peopies/community/sectoral organizations, non-government organizations and the 1CCs/IPs that
will be affected by the proposed mining project.

‘The Bureau shall be the convenor of the Council. No mining operations shall be allowed without
the Council having been properly convened.

Section 37. Areas open to mining. The power to determine whether or not the land where mineral
sesources are found shall be opened to muning is vested in the Council. Areas may only be opened to
mining upon the two-thirds vote of all the members of che Council 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. Bureau report on the exploration conducted;

b. Existence of downstream industries for the mineral resources;

¢. Potential environmental, public bealth and culeural impacts;

4. Conflict and risk assessment,

¢. Potential economic benefits of the development and utilization of the minerals;
£ Carrying capacity and the ecological profile of the atca;

g Ecxisting and alternative land uses of the area; and

h, Local government land use pian.


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
gtoup of experts and community stakeholders, It shall include the determination of the expected
economic returns 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 af subsistence
resources. There must be mention of existenice of sacred arcas or areas of cultural significance and
address the itnpacts of resource exploitation on indigenous and local communities.
This information shall be accessible to the public at all times.
Prosided bowever, ‘Vhat in no case shall the Council open the following areas to mining:

a. densely populated areas, especially residential areas;

b. prime agricultural lands, irtigabie 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;

¥ Stnall island ecosystems;

h. cultural sites, which may include, but not limited to, sacred sites and burial grounds;
i. craditional swidden farms and hunting grounds;

j. cultural property enumerated under Republic Act 10066;

k. key biodiversity areas;

L high conflict areas;

m. the Province of Palawan pursuant to Republic Act 7611;

no. in military and other government reservations, except upon prior written clearance by the
government agency concerned;

©. neat or under public or private buildings, cemeteries, archeological and historic sites,
bridges, highways, waterways, railroads, reservoirs, dams or other infrastructure projects,
public or private works including agricuttural crop plantations, except upon wnitten consent
of the government agency and/or private entity concerned;

p- 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;

4. Old growth, natural or primary forests, watershed forest reserves, wilderness area,
mangrove forests, mossy forests, national parks, protection forests, provincial/ municipal
forests, parks, greeabelts, game refuge and bird sanctuaries and their respective buffer zones
as defined by existing laws and ordinances; and

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 ir as protected areas, but also 10 the actual use of
said area.

Section 38. Manner of voting by the Council for opening an area to mining, 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 carticd out within their respective territories and presenting those enumerated
under Section 37 of this Act

‘The Bureau 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.

Local government units, ICCs/IPs, NGOs and peoples organizations, shall ensure that the Bureau
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 ecalogical
balance, and the measures that will be undertaken to prevent or minimize the adverse effects thereot,

‘Thereafter, the approval of the respective sanggunians 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 cities /highly
urbanized cities. The provincial/component city/highly urbanized city government representative
shall sit in che Council and shall carry the result of the vote of all the affected local goverament
units within the province resulting from the process ax provided in this Act. There must be a two-
thirds vote among the local government units for the purpose of opening a particular area for
mining, Failure to reach a two-thirds vote for opening shall mean that the area is closed to mining:
Ail che proceedings shall at all times be recorded.

Provided farther, That in case there are affected indigenous cultural communities /indigenous peoples
within the watershed system, 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 extcrnal manipulation, interference, coercion and other analogous acts, and obtained
after fully disclosing che intent and scope, including the positive and negative impacts of the activity,
in a language and process understandable and acceptable to then.

Provided finally, That aay membet of the community may file a protest with the Council during ang
point in the period of consultations and deliberations for the Council's considetation

Section 39. Pool of consultants. There shall be a pool of independent consultants that shall assist
the local government units, local communities or ICCs/1Ps with regard to the technical aspects of
mining

Section 40. Publication, posting and radio announcement requirements. Any decision of the
Council shall be published by the Bureau in the local newspaper in the local language, shall be
announced on local radio programs for not less than six (6) weeks and notices shail 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.

CHAPTER V
MINERAL AGREEMENTS

Section 41. Modes of Mineral Agreement. The following are the mineral agreements as herein
defined;

{@) Mineral production sharing agreement - an agreement where the Government grants
to the contractor the exclusive tight to conduct mining operations within 2 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 whercin the Government shali provide inputs to the mining operations other
than the mineral resource; and

(©) 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 ouput.

Tn no case shall Financial or ‘echnical Assistance Agreements, or any other similar agrcemnents,
contracts, and/or executive issuances granting license or permission to explore, develop and/or
uulize mineral resources be awarded to foreign entities or persons.

Section 42. 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, unlizaden and
Processing of mineral resources within the country.

Section 43. Identification of mining peojects. With at least two-thirds vote of the Council ta
open arcas for mining operations, the Buzeau shall prepare the necessary information sheets on the


said area for potential investments. The Bureau shall call for proposals to develop the mining area
based on the National Mining Plan (NMP).

Section 44. Pre-screening of mining proposals. Mining proposals shall be pre-screened by the
Bureau according to the National Industrialization and Mineral Development Plan and upon the
submission of interested parties of the following:

a, demonstration of financial capability;

». proven social and enviroamental crack record, including those of its officers and ditectors:
¢ clear corporate structure and ownership;

d. proof of physical office and operations of the proponcat within the Philippines;

¢. identification of potential investors;

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

8 capacity to process minerals;

fh. 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.

Section 45. Envitonmental and Social Impact Assessment and Mitigation Plan. The contractor
shall submit an Environmental and Social Impact Assessment and Mitigation Plan (ESLAMP)
containing the means, methods, processes and schedule by which the contractor shall conduct its
operations and mitigate negative eovironmental and social impacts. Social impact shall include
possibie impacts on the enjoyment and excrcise of human rights, cultural tights. The ESLAMP shall
include plans relative to mining operations; the rehabilitation, regeneration and restoration of
mineral areas; slope stabilization of mincd 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 Plaa which shall likewise contain the plans of
the proponent for the development of the community through the establishment of infrastrucnires
and programs that shall be sustainable even after the closure of the mine.

Section 46, Pre-qualification. The Bureau shall thercafter identify the top three (3) proposals and
shail recommend the same to the Council for deliberation.

Section 47. Deliberation. After the Bureau’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 bearings with the affected local communitics, to be carried out within their respective
tertitorics and presenting those enumerated under Section 38. Local government units, ICCs/IPs,


NGOs and peoples organizations, shall ensure that the mining applicant shall compreheasively
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 sangewmians of the affected local government units shall be required in
accordance to the sentiment af 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 shall relay the
decision of their respective constituents to the provincial government/independent component
cities /highly urbanized cities. The provincial/component city /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/highly urbanized cite resulting
from the process provided in the preceding paragraph of this Section.

Jo determining which proposal is acceptable to the people, a majority vote of the local government
unis within the province /independeat 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 exteroal manipulation, interference, coercion and other analogous 2ets,
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.

Mer the respective processes ure 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 Bureau of the chosen proposal.

Section 48. Posting and Publication Requirement. After notice, the Bureau shall notify the
proponent of the accepted proposal and cause the publication and posting of the accepted
proposal

Prosided, 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 Section38 . No mining operations shall be allowed pending any action questioning
the legality ot validity of the proposal

Section 49. Permit issuance. If no contest is filed after six (6) weeks from the date of posting and
publication, the Bureau shall issue a permit in accordance with the decision of the Council on the
winning proposal

Section 50, Environmental and Social Impact Compliance Certificate. The mining proponent
shall be issued un Frviroamental and Social Impact Compliance Certificate by the Bureau with the
approval of the Council

Provided, That n0 amendments to the ESLAMP shall be allowed, unless any proposed amendment
shall benefie the affected communities and thar the Council and the Bureav shall be notified of any
amendments to the ESLAMP, 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 ESLAMP shall cause the cancellation of the Certificate,

Section 51. Maximum areas for mineral agreements, The maximum area under mineral
agreements that a person can hold at any one time shall be determined by the Council, Pronided That
the contract area per agreement shall not exceed five hundred (5000) hectares.

Provided further, That n0 person shall be awarded in excess of the total contract area of seven
hundred-fifty (750) hectares in any given watershed arca. For the purposes of this Act, the
prohibition oo the maximum atea shall also include corporations that shall have common discctors
‘ot significant shareholders.

Section 52. Term of Mineral Agreement. ‘Ihe teem of the mincral 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.

To no case shall 2 Mineral Agreement be extended without just cause to be determined by the
Council. Provided, That the extension shall aot cause the term of the agreement to exceed the fifteen
(15) year term mentioned in the preceding section. Pronided further, That for the purposes of this Act,
just cause shall mean acts or events resulting from war, force majeure or those beyond the control of
the mining proponent not attributable to the same.

Section 53. Prohibition on open-pit mining methods and submarine tailings disposal. The
‘open-pit mining methods and the submarine tailings disposal method shall be prohibited.

Section 34. Failure to initiate mining operations, Failure to initiate mining operations in
accordance with the work program within two (2) 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 mace upon the land. The contractor and other corporations who are also run by
the same directors and officers arc thereafter banned from bidding ro conduct mining operations for
cen (10) years after failure to initiate its mining operations in accordance with the work program.

Section 55. Mandatory consultations for each mining phase. Mandatory consultations and
consent/approval shall be undertaken by the Council in each phase of mining operation:
exploration, extraction, processing, and mine closure to ensure that mining-affected communities
shall be informed and shall approve of the proposed plans and methods to be conducted.

Section 56. FPIC of ICCs/IPs on each stage of mining. ‘he FPIC of the ICCs/1Ps shall be
required at each and every stage of the mining operations The FPIC shall be secured in accordance
with the laws, practices and processes of the concerned ICCs/IPs, ‘The violation of any of the
conditions imposed by the ICCs/IPs on the contractor shall cause the cancellation of the mineral
agreement.


Section 57. Consent of private landowners. No person shall be allowed entry into private lands
without the written consent of the landowners, possessors or lawful occupants of the land and/or
the FPIC of the ICC/TP.

Section 58. Expropriation. Uxpropriation proceedings shall be filed with the tegular courts to
determine whether the taking of ptivate property for mining purposes shall meet a public purpose
and to determine just compensation.

Section 59. Monitoring. The Council shall form a mult-partite monitoring team to monitor the
contractor's compliance to the terms and conditions of the mineral agreement. Tt 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 and/or the Bureau may
confiscate surety, performance and guaranty bonds posted through aa order to be promulgated by
the Director. ‘he Council, the Director or the local government authorities may deputize, when
necessary, any member o unit of the Philippine National Police (PNP), barangay, duly registered
‘non-government organization (NGO) ot any qualified person to police any and all mining activities

Section 60. 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 Bureau, the
Council and/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 measutes for mine closure and rehabilitation. Funds and bonds which have been put up
by the comtractor in accordance with this Act shall be forfeited,

Section 61. Prohibition on the Transfer of Mineral Agreements, [n no case shall mining rights
under this Act be transfetable. The contractor shall also immediately notify the Council and the
Bureau of anv change in the ownership and/or control of che 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

Section 62. Applicability of RA 7076. 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/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 a
environmental nongovernment 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,
noagovernment organization and indigenous communities shall be selected by theie respective
organizations and/ar 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 mar apply
for a small-scale mining permit.


Section 63. 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.

Section 64. Traditional small-scale mining within ancestral domains. The Council shall conduct
regular monitoring activities within its jurisdiction co detcrmine if the provisions of relevant laws are
complied with in traditional small-scale mining by ICCs/TPs within their respective ancestral
domains

Section 65. FPIC in small-scale mining. Small-scale mining activities within any ancestral domain
by any person shall also requite the FPIC of ICCs/TPs.

Section 66. Requirement for Environmental and Social Impact Compliance Certificate. Small-
scale mining shall likewise requite an Environmental and Social Impact Compliance Certificate
(ESIC). All small scale mining applicants or proponents must show proof of compliance with che
terms and conditions of its ESICC prior to the issuance of a smail scale mining, permit (SMP).
Failure to submit this requirement will result in the aoa-issuance of the SSMP.

Section 67. 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 Bureau shall immediately conduct research to focus on developing and promoting appropriate,
clean, efficient, cultuzally-sensitive and iodustrially-viable technologies that shall mitigate the
environmental and health effects of mercury and cyanide use and eventually replace the current
practice

Section 68. Monitoring small-scale mining. A multi-sectoral monitoring team shall be organized
by the Council to monitor SSMP permiriccs’ compliance with the terms aod conditions of their
respective SSMPs and ESICCs The team shall conduct ocular inspections of SSMP areas at any
time and shall have visitorial powers.

Section 69. Livelihood support, The State shall support the improvement of the livelihood of
small-scale-mminers 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:

(@) access to minerals markets and to financing;

()) facilitating parmership with mining companies or contractors by, among others, requiring mining
companies to buy tailings from small-scale mining operations for further processing or recyeling;

(© facilitating partnerships among small-seale mining cooperatives; and
(@ other incentives to attract informal small-scale miners to formalize their status.
Section 70. Buying stations, The Bangko Sentral ng Pilipinas shall ensure chat buying stations

acquire gold from small-scale traders at prevailing international gold market ptices and the prevailing
exchange rate set by the BSP Treasury Department on a daily basis.


CHAPTER VII
QUARRY RESOURCES

Section 71. 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, 1CCs/IPs and the government shalll be entitled to ten
percent (10) of royalties depending on whether the resources are found inside or outside ancestral
domains. Permits shall be limited to a maximum unextendable term of five (5) years and a maximum
area of five (5) hectares.

Section 72. Quarry Permit. Any qualified Filipino may apply for a quarry permit on privately-
owned lands except ancestral domains and/or public lands for building and construction materials
such as marble, basalt, andesite, conglomerate, tuff, adobe, granite, gabbro, serpentine, inset Gilling
materials, clay for ccramic 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 licu of a quarry permit.

The maximum area which a qualified person may hold at any one time shall be limited co 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.

-\ quarry permit shall have a term of five (5) years, renewable for like periods but aot to exceed a
tout term of twenty (20) years. No quarry permit shall be issued or granted for any area that is
covered by a mineral agreement,

Section 73. Quarry fees and taxes. A quarry permittee shall pay quarry fees as provided for under
the implementing rules and regulations. ‘Ihe permittee shall also pay excise taxes as provided by
pertinent laws,

Section 74. 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 oppormuniy to be heard in an investigation conducted for the
Purpose.

Section 75. Commercial sand and gravel permit. Any qualified person may be granted a pertnit
by the provincial governor to extract and remove sand and gravel ot 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.

Section 76. Industrial sand and gravel permit. Any qualified person may be granted an industrial
sand aad gravel permit by the Bureau 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.

Section 77. Exclusive sand and gravel permit. Any qualified person may be granted an exchasive
saad 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, Thar there will be no
commercial disposition thereof.

Section 78. 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 hectares (2 has)
for a period co-terminous with the said construction.

Section 79. Guano permit. Any qualified Filipino may be granted a guano permit by the provincial
govemor to extract and utilize loose unconsolidated guano and other otganic fertilizer materials in
any portion of a municipality where he/she has an established domicile outside ancestral domains.
‘The permit shall be for specific caves and/or for confined sites with locations verified by the
Department's field officer in accordance with existing rules and regulations.

Section 80. Gemstone gatheting permit. Any qualified Filipino may be granted a non-exclusive

gemstone gathering permit by the provincial govemor to gather loose stones useful as gemstones in
rivers and other locations

Section 81. Council recommendation for approval. All peemits under Chaptct VII of this Act
shall require the recommendation of the Multi-Sectoral Mineral (‘ouncil prior to approval by the
provincial government unit. ‘he absence of a recommendation from the Council prohibits the
approval of any permit in this Chapter.

CHAPTER VII
TRANSPORT, SALE AND PROCESSING OF MINERALS

Section 82. Ore transport permit. A permit specifying the origin aad quantity of non-processed
mineral ores or minerals shall be required for their transport. Transport permits shall be issued by
the Bureau. ‘the absence of a permit shall be considered as prima fant 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.

Section 83, Track record. Only mining companies with demonstrated capacity and good
environmenia) 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 dowastream industries.

Section 84. Mineral trading registration. No person shall engage in the trading of mineral
products, either locally or internationally, unless accredited by the Department and duly registered


with the Department of Trade and Industry (DTI) with a copy of said accreditation and registration
submitted to the Bureau.

Section 85.Mineral Processing Permit. No person shall engage in the processing of minerals
without first securing 4 minerals processing permit from the Council. Mincrais processing permits
shall be for a period of five (5) years, cenewable for like periods but not to exceed a total term of
twenty-five (25) years.

CHAPTER IX
DEVELOPMENT OF COMMUNITIES, SCIENCE AND TECHNOLOGY

Section 86. Expenditure for community development. A contractor shall assist in the
development of the community, and the promotion of the genceal welfare of its inhabitants towards
sustainable development. Community development projects shall in no way decrease the obligation
of the corporation with regard to rosalties and fees due to communities and/or local government
unit, Community development projects should be consistent with the Comprehensive Land Use
Plans (CLUP), Ancestral Domains Sustainable Developmeat and Protection Plan (ADSDPP) and
annual investment plans of the local governments, CADT/CALT holders, and the like.

Section 87. Preferential option for Filipino labor, experts and training of members of the
local community. A contractor and/or permittee shall give preference to Filipino citizens in all
types of mining employment within the country. Members of the local community shall be trained
in all aspects of the mining operations, including remining, recycling, and the management thereof.

Section 88, 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 equivaleat quality and are available on equivalent terms
as their imported counterparts.

Section 89. Donation or turnover of facilities. Priur tn 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. Othetwise, all the
infrastructure, facilities and equipment shall be tumed over or donated tax-free (o the proper
government authorities, national or local, to ensure that said infrastructure facilitics and equipment
are continuously maintained and utilized by the State. A fine of onc hundred thousand pesos
(PHP100,000.00) shall be imposed for every day of delay.

CHAPTER X
BENEFIT SHARING, TAXES AND FEES

Section 90, Taxes and fees. ‘Lhe contractor shall pay all taxes and fees as required by law, including,
but not limited to:

a. contractor’s income tax;

b. customs, duties and fees on imported capital equipment,

< value-added tax on imported goods and services;

2. sithholding tax on interest payments to foreign loans and on dividends to foreign
stockholders;


¢. documentary stamps tax;

f. capital gains tax;

g excise tax on minerals;

b. local business tax;

i real property tax;

j. community tax;

k. occupation fees;

|. registration, accreditation and permit fees;
m. water usage fees.

Section 91. Government share. Aside from the taxes and fees referred to in the preceding section,
Government shall have at least a share equivalent to ten percent (10%) of the gross revenues fron
the development and utilization of mineral resources that are owned by it to be set aside for the
general fund of the government.

Section 92. Indigenous cultural communities’ royalty. In case of mineral operations within
ancestral domains, the contractor shall allot Yeast ten perceat (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.

Section 93. Scientific research and development fund. A Scientific Research and Development
Fund shall be set aside to be devoted ro research and development of clean mining technologies,
improvement of mining processes, mitigating technologies, the setting up and maintenance of an
independent pool of experts, and operational expenses of the Bureau.

Section 94. 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 95. Local Governaient 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;
bs. Vulnerability; and
c. Human development index.


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 tertitory of the local
government unit,

Provided, ‘That the administrative and operational cxpeases of the Council shall also be taken from.
this share.

Section 96. Mine wastes and tailings fees. \ 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 Secretary is authorized to increase mine wastes and
tailings fecs, when public interest so requires.

Section 97. Incentives. Incentives that shall be given to the contractors shall be limited only eo
pollution control or mitigetion devices.

Section 98. Deposit of capital and profits requirement. As part of their demonstrated financial
capacity, all large-scale mining companies/contractors are required to deposit their capital
investment and profits in bunks or financial institutions that are owaed, managed and operated by
the Philippine government.

Section 99. General role on profit repatriation. Conmractors with forcign financial assistance shall
be allowed to reparriate their profits from mining projects that should not exceed fifty percent (50
4) of the cotal 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 habilitation of 4 mining area as specified in the mineral agreement of each contractor.

‘The guidelines for Sections 98 and 99 shall be issued by the Bangko Sentral ng Pilipinas and shall be
furnished to the Department, Bureau, Council and all respective contractors in the industry.

CHAPTER XI
SAFETY AND ENVIRONMENTAL PROTECTION

A Safety

Section 100. Mines safety. All contractors and permittees shall strictly comply with all the rules and
segulacions concerning the safety and sanitary upkeep of mines and mining development.
Government personnel involved in the implementation of mines xafety, occupational health and
environmental rules and regulations shall be cavered under Republic Act 7305 ot the Magna Casta
of Public Health Workers.

Seerion 101. Mine workers, No person under sixteen (16) years of age shall be employed in any
place of mining operations and no person under cighteen (18) years of age shall be employed in a
mine.

Section 102. Mine supervision. All mnining and quarrying operations that employ more than fifty
(60) workers shall have at least one (1) licensed mining engincer with at least five (5) years of
experience in mining operations, and one (1) registered foreman,


Section 103. 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 Himplorment 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 sights.

Section 104. Mine inspection, The regional directors of the Bureau and the Council shall have
jusisdiction 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
Burcau shall be submitted to the Council,

Section 105. Power to issue orders. The regional directors of the Bureau, in consultation with the
Environmental Management Bureau (FMB), forthwith or within such time as specified in the order,
‘equite the contractor to remedy any practice connected with mining, which is nor in accordance
with safety and anti-pollution laws and regulations. In case of imminent danger to life or property,
the Director may summarily suspend the mining operation until the danger is removed, or
appropriate measures are taken by the contractor. Uareasonabile delay to remove the danger or
introduce the necessary improvements by the contractor shail be a cause for the cancellation of the
mincral agreement

Section 106. Report of accidents. In case of any incident ot accident, causing or creating the
danger of loss of life o setious 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.

B. Environmental Protection

Section 107. 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. ‘hat in no way shall this provision be construed to remove or reduce the liability of the
contractors and/or permit holders to compensate any damage caused by theit operations. Provided
_furtber, 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.

Section 108. Calamity and Human Rights Protection Fund, Persons issucd a mineral agreement
shall deposit five millioa pesos (PhP 5,000,000.00) semi-annually in an interest-bearing account a
common fund maintained by the national government which shall be used for responding to, or
ameliorating the effects of calamities, natural disasters and human rights violations including
militarization, displacement, and forcible evacuation in any part of the country in relation to mining
activities. Provided, That in no way shall this provision be constmed to temove at reduce the liability
of the contractors and/or permit holders to compensate any damage caused by their operations.


‘Section 109. Performance Bond. The contractor shall put up a bond in an amount equivalent co
fifiy percent (50%) of the projected cost of rehabilitation as validated by independent studies. his
amount shall be deposited in an interest-bearing account. ‘The bond shall be forfeited in the event
thac the contractor shall fail or default in the rehabilitation or remediation of the mining area as
included in che work plan of the contractor or abandons che mine at any time of its operations.

Section 110. Rehabilitation, Contractors and permittees shall technically and biologically
rehabilitate che excavated, mined-our, 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 fond 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/permittee concerned.

Section 111. Progressive rebabilitation. Contractors shall also conduct progressive rehabilitation

activities

Section 112. Adoption of the precautionary principle. When an activity related to mining raises
threats of harm to public health or the environment, precautionary measutes shall be taken
Proactively even if some cause and effect relationship have yet to be scientifically established of
which the mining proponent and the Bureau shall also be obliged to disclose publi

Section 113. 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 aad by the
Council,

Section 114. Tailings impoundment. Tailings impoundments shall be built away from critical
watershed drainage areas. Furthermare, it shall be ensured impoundments will not endanger critical
watershed areas and low-lying valleys in the event of accidents under abnormal conditions. ‘Tailing
impoundments and dams shall meet the international standards for large dams.

Section 115. Dumping of waste. Dumping of waste or tailings in any body of water shall be
prohibited. Provisions of the Clean Water Act and Clean Air Act shall be strictly implemented.

Section 116. Use of toxic chemicals and methods. Ac all times, mining contractors shall use
chemicals or reagents which would result co the least environmental and social destruction.

Section 117. Preservation of topsoil. The removed topsoil, or the more productive hotizons of the
soil shall be preserved for other uses.

Section 118. Priotity 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 aur 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.

Section 119. Recyling of water resources. Watcr 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 watcr. Released contaminated water shall be treated accordingly to meet national standards.
Released water must at least be equivalent in quality co the baseline water quality.

Section 120. 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
Pax 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.

C. Acid Mine Drainage

Section 121. Prohibition from using acid-generating waste rock for infrastructure. The use of
acid-generating waste rock to build roads, dams of other infrastructures is prohibited. The use of
such materials shall only be used after treatment to neutralize the effect of acid mine drainage.

Section 122. Establishment of a prediction and monitoring system. The Bureau shall establish a
prediction and monitoring system to identify potential acid-producing materials and monitor their
production of acid waste.

Section 123. Avoidance of waterways. Open pits, waste rock piles and tailings impoundments shall
sor be built near or on waterways to prevent contact and subsequent acid production and
groundwater contamination.

Section 124. Remining. Remining shall be prioritized over the opening of new mines to maximize
and tecover the remaining minerals from the rejects or wastes of previous mines and

‘operations, Protided, That cemining operations shall follow the processes, standards, parameters and
guidelines set for mining operations in this Act.

Section 125. Suits after the tetmination of comtracts of projects. Recognizing that the effects of
mining may be seen or felt, actions tclating 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 agrcement or mining project has terminated.

CHAPTER XII
RESOLUTION OF CONFLICTS

Sectioa 126. Panel of Arbitrators. ‘There shall be a panel of arbitrators in the regional offices of
the Department composed of three (3) members, two (2) af 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 Secretary as recommended by the MGB Ditector. Those designated
as members of the panel shall serve as such in addition to their work in the Department without
receiving any additional compensation. As much as practicable, said members shall come from the


Gifferent bureaus of the Department in the region. The presiding officer thereof shall be selected by
the drawing of lots. His tenure as presiding officer shail be on a yearly basis. The members of the
panel shall perform their duties and obligations in hearing and deciding cases until their designation
4s withdrawn or revoked by the 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:

2 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 hercin established, or
those to be established by the implementing cules and regulations; and,

¢. Other similar instances wherein the technological and technical expertise of the
Department shall be needed.

Disputes involving real rights, contractual obligations and the other causes of action that are outside
the technological and technical expertise of the Panel of Arbitrators shall be under the jurisdiction
of the regular courts or as otherwise provided by other special laws.

Provided, hat disputes pending before the Bureau and the Department at the date of the effectivity
of this Act shall undergo an immediate teview within sixty (60) working days upon the passage of
this et to determine the cause of action. Those which are outside the technical expertise of the
Department ot Burean shall be refiled with the appropriate court, without costs to the complainant
oF petitioner.

Section 127. Appeal. The decision or order of the panei of arbitrators may be appealed by the party
not satisfied thereto to the Mines Adjudication Board within fifteen (15) days from receipt chereof,
which must decide the case within thirty (30) davs from submission thereof for decision.

Section 128. Mines Adjudication Board (MAB). The Mines Adjudication Boatd shall be
composed of three (3) members. The Secretary of the DENR shall be the Chairperson with the
Mines and Geosciences Bureau Director and the Undersecretary for Operations of the Department
‘as 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 ¢o its internal functions, and such rules and regulations as
may be necessary to carry out its functions;

b, administer oaths, summon pattics 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;

© 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 or served with


notice to appear, conduct its proccedings or any part thercof 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, of waive
any error, defect or irregularity, whether in substance or in form, give all such directions
as it may deem necessary ot expedient in the determination of the dispute before it, and
dismiss the mining dispure as part thereof, where it is trivial or where further
proceedings by the Board ate not necessary or desirable:

1. To hold any person in contempt, directly or indirectly, and impose appropriate
penaltics 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 ot scriously affect social and economic stability:

In any procecding before the Board, the rules of evidence prevailing in courts of law or equity shall
not be controlling and it is the spitit 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 (0 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 conelusive and binding on the parties and its decision or order
shall be final and executory.

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

CHAPTER XIII
ACCESS TO JUSTICE

Section 129, Human Rights obligations, Corporations shall respect, protect and promote the
human rights of communities affected by mining, including the right to life, iberty and property,
freedom of movement, right of public participation and the tight to self-determination of
indigenous cultural communities.

Section 130. Violations of human rights, Hxtrajudicial 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 eadorsement 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 he
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.

Section 131. Use of paramilitary and military forces. All mining companies ate strictly prohibited
from employing paramilitary groups. The use of private and military forces shall result in the


automatic cancellation of the mineral agreement and the filing of appropsiate civil, criminal and/or
administrative charges.

Section 132. Strategic Legal Action Against Public Participation (SLAPP). SLAP is aay legal
action, whether civil, criminal or administrative, filed to harass, vex, excrt Jegal action ot stifle legal
recourses of citizens complaining against violations of this Act or enforcing the provisions of the
Act, of exercising their freedom of assembly of right of public participation. ‘The investigating
Prosecutor or court shall immediately determine within a petiod of thirty (30) days from filing
thereof whether a legal action is a SLAPP and accordingly dismiss the same.

Section 133. Indigents suit. Indigents shall be exempt from payment of any administrative or court
fees, including docket fees for the fling of a case. Iawyers shall be provided by the Public Attorney
‘Office to pauper litigants in case they could not afford legal services.

Section 134. Application of the customary laws of ICCs/IPs. The contractor shall respect the
customary laws of the ICCs/IPs and shall submit to the processes of the same, Provided, That these
laws are not contrary to the provisions of the Constitution.

Section 135. Strict liability. Mining corporations 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.

Section 136. Surmounting the corporate veil When the separate personality of the corporation
from its shareholders 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

Section 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 onders, rules and regulations inconsisteat with this Act,

©. Any public officer who willfully or grossty 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 duty/ies 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
viokition complained of, exempt the plaintiff from filing an injunction bond for the issuance of a
preliminary inyunction.

‘The court shall determine whether or not the complaint is malicious or baseless and shall
accordingly dismiss the petition within thirty (30) days upoa the filing of the case.


CHAPTER XIV
PENAL PROVISIONS

Section 138. Grounds for the cancellation of mineral agreements and permits
a. Violation of any provision of this Act
. Fluman rights violations perpetrated by the contractot or any of its agents;
c. Noa-payment of taxes;
d. Bribery, use of force, intimidation, threat, coercion of public officials and communities;
¢. Any act that shall create or contribute to conflicts;
£ Other analogous acts,

Provided. that violations of environmental provisions 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/officers found guilty of che above enumeration shall be
perpetually banned for participating directly or indirectly in any and all mining operations in the
Philippines.

Section 139. False statements. Any person who knowingly presents any false application,
declaration, or evidence to the Government ot publishes or causes the publication of anr
Prospectus ot other information containing any false statement relating to mines, mining operations
‘or mineral agreements and permits shall, upon conviction, be penalized by a fine of aot exceeding
‘One Hundred ‘Thousand Pesos (100,000.00).

Section 149. Illegal exploration. Aay person undertaking exploration work, upon conviction, shall
be penalized by a fine of aot exceeding Five Million pesos (P5,000,000.00).

Section 141. Theft of minerals. Any person extracting minerals and disposing the same without a
mining agreement, lease, permit, license; or steals minerals ot ores ot the products thereof from
‘mines, mulls or processing plants shall, upon conviction, be imprisoned from six (6) months to six
(©) sears or pay a fine fom One Hundred thousand pesos (P100,000.00) to One Million pesos
P'1,000,000.00) or both, at the discretion of the appropriate court. In addition, he shall be liable co
pay damages and compensation for the minerals removed, extracted, and disposed of. In the ease 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 parmership.

Section 142. Destruction of mining structures. Any person who willfully destroys ot damages
structures in or on the mining arca or oa the mill sites shall, upon conviction, be imprisoned for a
Pesiod not to exceed five (5) years and shall, in addition, pay compensation for the damages which
may have been caused thereby.


Section 143. Mines arson. Any person who willfully scrs fire 10 any mineral stockpile, mine or
workings, fittings or a mine, shall be guilty of arson and shall be punished, upon conviction, by the
appropriate court in accordance with the provisions of the Revised Penal Code and shall, ia
addition, pay compensation for the damages caused hereby.

Section 144. Willful damage to a mine. Any person who willfully damages a mine, unlawfully
‘causes water to ron into a mine, obstructs any shaft or passage to a tine, renders useless, damages
ot destroys any machine, appliance, apparams, rope, chain, tackle, ot any other things used in a mine,
shall be punished, upon conviction, by the appropriate court, by imprisonment not exceeding a
penod of five (5) years and shall, in addition, pay compensation for the damages caused thereby

Section 145. Illegal obstruction to permittees or contractors, Any person who, without
justifiable cause, prevents or obstructs the holder uf any permit, agreement or lease from
undertaking his mining operations shall be punished, upon conviction by the appropriate court, by a
fine not exceeding Hive thousand pesos (P5,000.00)

Section 146. Vitiation of FPTC. 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 (PhP 2,000,000.00). If the perpetrator is a government official, the penalty shall be eight (8)
Fears and one (1) day to twelve (12) years imprisonment, and a fine of at least four million pesos
(PhP 4,000,000.00). He/she shall be perpetually prohibited from assuming public office, and shall be
disqualiGed from receiving other benefits by virtue of his/her position in government.

Section 147. Penalty for human rights violations. Contractors or other persons who have
committed buman 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 (PhP
5,000,000.00) and shall indemnify the victims

Section 148. Abandonment. Contractors and/or permittees who shall abandon mines shall be
perpetualty banned or disqualified from directly or indirectly conducting mining operations The ban
and/or disqualification shall include the officers and directors of corporations that have abandoned
mines.

Section 149. 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.

Section 150. Non-application of the corporate veil. Any person violating the provisions of
Commonwealth Act No. 108, or the Anti-Dummy Law of the Philippines as amended, or is found
to have used the corporate structure to defeat the provisions of this Act shall suffer the penalty of
fixe million pesos (P5,000,000.00) and a perpetual ban in the mining industry.

Section 151. Unauthorized dealing, selling, and/or buying of gold. Any person, parmnership or
corporation who shall sell, buy or in any manner deal gold from any miner of person without being
duly authorized by the Bangko Sentral ng Pilipinas shall be punished as unauthorized dealing and
shall be penalized in accordance with provisions in this Act.


Section 152. Amendment to Section 27 of Republic Act 7076 of the Small-scale Mining Act.
‘Violations of the provisions of Republic Act 7076 of of the rules aad regulations issued pursuant
hereto shall be penalized with imprisonment of six years and one day to twelve years. The State shall
confixcate and seize equipment, tools and instruments; effect immediate suspension or closure of
the mining activities of the permittee concerned, and revoke the permit.

Section 153. Confiscation of equipment and property. The equipment and property of small-
scale contractors and permit holders who violate this Act shall be forfcited in favor of the State.

Section 154. Local government officials who are administratively found to violate provisions of this
Act, vis-a-vis the pertinent sections of the Local Government Code shall be removed from office
and perpetually disqualified from holding any elective of appointive position in yovernment, its
divisions, subsidiaries and any government-owned and -controlled corporations.

Section 155. Reinstatement of revoked permits. After notice and heating, revoked permits that
have undergone due process may be reinstated, Provided, That it may only be reinstated once.

CHAPTER XV
‘TRANSITORY PROVISIONS

Section 156. There shall be 2 moratorium on all new mining activities until all che systems are in
place for the proper implementation of this Act

Section 157. All existing mining permits, licenses and agreements are hereby decmed cancelled.
‘Yhose mine workers and their families that mar be displaced during the transition period shall
receive livelihood support and job placements to be facilitated by the appropriate agencies of the
State

Section 158. The classification of public lands as mineral reservations pursuant to pre-existing laws
shall hereby cease. The President's power to declare mineral resetvations shall henceforth cease to
exist. All such lands shall be closed co mining unless opened thereto in accordance with the
provisions of this :\ct. A review of the current mineral land classification shall be conducted co
determine the best livelihood and economic options for cach area.

Section 159. The members of the panels of arbitrators and the provincial or city mining egulatory
boards established under Republic Act No. 7942 shall hold-over theit positions until replaced in
accordance with provisions of this Act.

CHAPTER XVI
FINAL PROVISIONS

Section 160. Separability clause. The provisions of this Act are hereby declated to be separable
and, in the event of any such provisions are declared unconstitutional, the other provisions which
are not affected thereby shall remain in force and effect.

Section 161. Repealing clause. Presidential Decree 463, Presidential Decree 512, Republic Act
7942, and other related mining laws are hereby repealed. All provisions in laws, decrees, issuances


and other regulations inconsistent with this Act shall be deemed amended or repealed if the
inconsistency is irreconcilable.

Section 162. Funds. The amount of One Hundred Billion Pesos (PhP 100,000,000,000) is hereby
appropriated for the proper functioning of the Bureau, che 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 Bureau.

Section 163. Implementing Rules and Regulations. The implementing rules and regulations of
this Act shall be promulgated by the Department after collaborative efforts to draft and finalize the
same with representatives from the local government units, peoples organizations, sectoral

‘organizations and non-governmental organizations in exhaustive and appropriate public
consukations at all levels nationwide.

Section 164. Effectivity Clause, This Act shall take effect within fifteen (15) days following its
publication in two national newspapers of general circulation in the Philippines.

Approsed,