FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regu lar Session 
SENATE 
S.B. No. 3126 
:) , 
d,' 
;{Itt'ff :t II,' 
",'LHll 
"I Z FEB 1 'i ;' ':J :" 0 
n 
,'; l': --t 00,,"-_ 
"j 
Introduced by SENATOR SERGIO R. OSMENA III 
EXPLANATORY NOTE 
Industrial peace and stability are essential elements for inclusive economic growth and 
a major challenge facing the extractive industry today. 
In 1994, our country had about 7 billion metric tons in metallic mineral reserves and 50 
billion metric tons in non-metallic reserves. Of the 9 million hectares of mineral 
resources (about 30% of the total land area of 30 million hectares), less than 0.5 million 
hectares are under exploration or development. Because these resources are still to be 
fully tapped, mining operations have been escalating. 
The mineral resources are located within our lands or under our seas, which are also 
rich in other living or non-living resources that protect us and preserve life - water, 
forest covers, watersheds. These resources also sustain economic activities like farming, 
eco-tourism, and fishing. Moreover, the lands also have cultural, historical or ecological 
values that are not easily measured in monetary terms or are even beyond pecuniary 
estimation. 
Since any mining operation necessarily involves the alteration of the land or the seabed, 
people who use the land or sea for settlement and livelihood are likely to be displaced 
by it. 
The benefits derived from mining must therefore be balanced against its costs on people 
and the environment. 
Since the enactment of the Philippine Mining Act of 1995 (RA 7942), which institutes a 
new system of mineral resources exploration, development, utilization, and 
conservation, and the Small-scale Mining Act of 1991 (RA 7076), which regulates small-
scale mining at the local level, significant developments have been observed: 
a. Extraction mining is a low job-generating activity. Average employment 
contribution over the years is only about 1/3 of 1 % of total employment. As of 
October 2009, mining and quarrying jobs numbered a scant 169,000. 


b. Mining has become one of the most contentious social justice issues. Farmers, 
farmworkers, indigenous peoples and fisherfolks live in the areas where 
minerals are usually located. Mining those minerals threaten or endanger 
their health, food supply, livelihood, culture and the integrity of their 
ancestral domains. Often, they are forced into situations of conflict among 
themselves or with the miners. 
c. Vulnerability of persons and communities to geohazards and climate change 
impacts is significantly increased by presence of mining operations. The 
series of environmental calamities and disasters that many of us are still 
trying to cope with are glaring examples. 
d. While mining is not the principal cause of denudation, it is certainly a major 
contributor to deforestation, which has reached the "irreversible" stage since 
only 3%-6% of old growth forest is left or 18%-23% of forestland including 
second-growth or reforested areas. In contrast, there is greater value earned 
from not cutting our trees to get minerals - the carbon sink value of our 
forests. It is estimated that the carbon sink value in a future carbon market of 
the Palawan forests is about P140 billion. 
e. From 2001 to 2005, the mining and quarrying sector contributed only within a 
range of 1.0% (in 2001) to 1.7% (in 2005) of CDP, as observed in an ADB 
study. In 2006, its overall contribution to CDP was 1.5%. 
f. 
From 2000 to 2009, the contribution of mining excise taxes (large-scale, small 
scale, non-metallic) to total excise tax collections was minimal at about 0.7%. 
Mining excise taxes relative to total BIR collections was even smaller at 0.07%; 
g. The government receives only 2% excise tax share in mining production 
sharing agreements and, from 1997 to 2007, realized only 7.5% of the 
production value of mining. Among the causes is the redundant tax incentive 
scheme. 
h. There has been an anomalous discrepancy between exports and reported 
production values of minerals amounting to more than P277 Billion from 2000 
to 2009. Likewise, there has been a wide gap between potential excise taxes 
and actual tax collections - about P7.8 Billion over the same period. 
i. There is no consolidated data across government agencies on foreign 
exchange inflows and outflows to get accurate picture of the net foreign 
exchange benefits derived, if any. Large-scale mining typically cites gross 
investment inflows and export proceeds but do not include data on the 
foreign exchange outflows. Since they are allowed to recover and repatriate 
all pre-operating costs (including investments) up to 5 years, the net flows are 
likely to be about only even. As for export proceeds, mining operations 
usually front-load production during the first five years, which happens to 
coincide with their tax exemptions. Profit remittance can, thus, be 
considerable. 


J. 
After 50 years of mining in our country, the industry is still extract-and-
export-ore activity and there is no significant industrialization footprint. The 
backward linkages of mining is .46 or less than half of other industries and 
the forward linkages is a low .82 which does not put mining in "enough value 
adding activity" to merit priority. Mining has never played a major role in 
our development, even during the mining boom of the seventies and early 
eighties. 
In order to address the challenges facing the mining industry, this measure is being 
proposed. It seeks to provide a framework for the utilization and management of the 
country's mineral resources that addresses the needs of the domestic economy and 
upholds the rights of all stakeholders involved, including the workers, farmers, 
indigenous peoples and the local or host communities. 
/() , I,-?U.-R )/~/ 
SERGIO OSMENA III 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
Second Regular Sess ion 
) 
SENATE 
S.B. No. 3126 
Introduced by: Senator Sergio Osmena III 
"I;; IlG 15 :"5 :5U 
AN ACT TO REGULATE THE RATIONAL EXPLORATION, DEVELOPMENT AND 
UTILIZATION OF MINERAL RESOURCES, AND TO ENSURE THE EQUITABLE 
SHARING OF BENEFITS FOR THE STATE, INDIGENOUS PEOPLES AND LOCAL 
COMMUNITIES, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
CHAPTER 1. DECLARATION OF POLICIES 
1 
Section 1. Short Title. This Act shall be known as the "Philippine Mineral Resources Act 
2 
of 2011". 
3 
Section 2. Declaration of Policy. It is hereby declared the policy of the State to: 
4 
a) Maintain peace and order, protect life, liberty and property and promote the 
5 
general welfare; 
6 
7 
b) Advance the medium- and long-term needs of the Philippines; 
o 


1 
C) Encourage the advancement of the industry's technology with emphasis on 
2 
existing indigenous knowledge, research and development; 
3 
4 
d) Protect and advance the right of the people to a balanced and healthful ecology 
5 
in accord with the rhythm and harmony of nature; 
6 
7 
e) Value the dignity of every human person and guarantees full respect for human 
8 
rights; 
9 
10 
f) Promote social justice in all phases of national development; 
11 
12 
g) Recognize and promote the rights of indigenous cultural communities within the 
13 
framework of national unity and development and protect the right to self-
14 
determination of the indigenous and Moro peoples; 
15 
16 
h) Protect and promote the right to health of the people and instill health 
17 
consciousness among them; 
18 
19 
i) Pursue an independent foreign policy. In its relations with other states the 
20 
paramount consideration shall be national sovereignty, territorial integrity, 
21 
national interest, and the right to self-determination; 
22 
23 
j) Develop a self-reliant and independent national economy effectively controlled 
24 
by Filipinos; 
25 
26 
k) Ensure the autonomy of local governments; 
27 
28 
1) Give highest priority to the enactment of measures that protect and enhance the 
29 
right of all the people to human dignity, reduce social, economic, and political 
30 
inequalities, and remove cultural inequities by equitably diffusing wealth and 
31 
political power for the common good; 
32 
33 
m) Encourage non-governmental, community-based, or sectoral organizations that 
34 
promote the welfare of the nation; and 
35 
36 
n) Adopt and accept the generally accepted principles as embodied in the 
37 
International Covenant on Civil and Political Rights, International Covenant on 
38 
Economic, Social, Cultural Rights, UN Declaration on the Rights of Indigenous 
39 
Peoples, UN Convention on Biodiversity and other international accords on 
40 
human rights, labor rights, the rights of women and children, and the protection 
41 
and preservation of the environment, of which the State is a party. 
42 
1 


1 
Section 3. Mining is vital to nation building and the economic advancement of our 
2 
people. The mineral industry plays an essential role in establishing a progressive, 
3 
independent and self reliant economy. 
4 
The State shall formulate a National Industrialization Program pursuant to the 
5 
principles of agricultural modernization, development of industrial and manufacturing 
6 
industries, and rational, sustainable, and equitable development of the national 
7 
economy. Pursuant to the foregoing, the State shall implement a Mineral Management 
8 
Plan that provides the framework for the utilization and management of the country's 
9 
mineral resources, which will address the needs of the domestic economy and upholds 
10 
the rights of industry workers, indigenous peoples and local communities. 
11 
Section 4. The judicious stewardship of our mineral resources, as well as its exploration, 
12 
development and utilization shall comply with the following principles: 
13 
a) The current export-orientation of mining is hereby reversed and a domestic 
14 
needs-based development of the industry shall be pursued by the State as a step 
15 
towards achieving genuine economic development; 
16 
17 
b) The mining industry shall be geared towards national industrialization and shall 
18 
be built for the production of raw materials such as base metals, basic chemicals 
19 
and petrochemicals needed by the basic, medium and heavy industries to 
20 
produce as much consumer, intermediate and capital goods with the country's 
21 
stock of finite mineral and non-mineral industrial raw materials and in the 
22 
process provide jobs to the country's vast human resources; 
23 
24 
c) The community shall actively participate in the stewardship of mineral 
25 
resources. Community-based initiatives shall be encouraged and supported; 
26 
27 
d) The State and its members shall develop its human resources and encourage the 
28 
evolution of its own appropriate technologies. The State shall provide the 
29 
appropriate support and protection to Filipino corporations to further develop 
30 
and increase their participation in the industry; All mining industry investments 
31 
shall be mutually-beneficial and help achieve the specific target and goals of the 
32 
National Industrialization Program. To come up with the large capital 
33 
requirement for mining, the State must use local sources such as but not limited 
34 
to the granting of incentives and financial aid to local private sector investors, re-
35 
channeling of government budget allocations for foreign debt payments and 
36 
37 
38 
military expenditures, and the proceeds from the government shares of the 
Malampaya Natural Gas Project; 
39 
e) The State shall allow, in exceptional cases, foreign corporations to invest in the 
40 
mineral industry. Based on the National Industrialization Program and the 
2 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
country's capability and capacity, the government must identify the mineral 
areas where foreigners can help and invest subject to rigorous screening and 
strict regulations as provided in this Act and related laws. The participation of 
foreign companies in the critical stages of minerals extraction and processing 
shall be in accordance with a mandatory program or agreement for technology 
transfer and equity shares that do not exceed 40 percent of the full capital 
requirements; 
Provided, that capital accumulation and reinvestment within the country shall be 
primarily encouraged over profit repatriation by the foreign companies and that 
foreign mining corporations, their principals, local firms and conduits that have a 
bad track record in the Philippines are banned from investing in the country; 
14 
f) In land and water use, the production of sufficient food free from pollution 
15 
towards food security shall always be the priority; 
16 
17 
g) Long-term mining development shall be programmed by the State in accordance 
18 
with the country's availability of resources, capability and well being of the 
19 
people, technological capacity and people's acceptability. The right of Muslim 
20 
Filipinos and indigenous peoples to self-determination and ancestral domain 
21 
shall be recognized and their collective property rights are guaranteed by this 
22 
Act; 
23 
24 
h) Job security, adequate wages, benefits, and safe working conditions for mine 
25 
workers shall be ensured in state and privately owned mining corporations. 
26 
Their right to organize and form their own associations, to collective bargaining 
27 
and to strike shall be upheld. The state will strictly prohibit forced and child 
28 
labor in the industry; 
29 
30 
i) Small-scale mining operations shall be supported and regulated by the state. The 
31 
state will encourage the formation of cooperatives among small-scale miners and 
32 
provide financial and technical support to develop the labor-intensive and 
33 
upgrade 
the 
backward 
technologies 
into 
a 
more efficient and 
less 
34 
environmentally destructive mining process. Whenever small- scale mining are 
35 
stopped, alternative and sustainable livelihood shall be provided to the small-
36 
scale miners. 
37 
j) Mining operations shall not in any way create or exacerbate conflicts. In no 
38 
instance shall the Armed Forces of the Philippines (AFP), the Philippine National 
39 
Police (PNP) and private security and paramilitary groups be used to coerce or 
40 
force the entry and protection of mining operations; 
41 
3 


1 
k) Mining industry research and development shall focus on harnessing more 
2 
economically-
efficient and less environmentally-destructive methods. The 
3 
advanced technologies from other countries that are proven to be appropriate 
4 
locally shall be adopted in the industry; 
5 
6 
I) All mining operations shall be strictly regulated to ensure the domestic 
7 
processing of mineral ores up to the secondary and tertiary stages of industrial 
8 
production to develop our own basic and medium industries. Recycling 
9 
programs and substitution in the use of minerals shall be incorporated in the 
10 
overall plan of mining development to reduce mine waste and pollution, and 
11 
mining rehabilitation techniques. Indigenous technologies that are relevant and 
12 
appropriate, particularly with respect to the domestic processing of minerals 
13 
shall be promoted, harnessed, expanded and upgraded; 
14 
15 
m) The State and its members shall share in the burden of satisfying the need for 
16 
mineral resources primatily through reusing and recycling existing mineral 
17 
products. Ecologically-sound practices at all stages of mining shall be promoted. 
18 
Mining technologies such as open-pit mining and submarine mine tailing 
19 
disposal methods that are banned abroad and/or proven inappropriate in 
20 
countries like the Philippines must all be banned. Environmental standards shall 
21 
be set to ensure the protection and efficient utilization of the country's mineral 
22 
resource base. Ecological considerations in mining development shall be given 
23 
due emphasis and attention to substantially eliminate destructive effects that 
24 
certain mining industrial processes might have on the people's health and the 
25 
environment. Monitoring mechanisms with strong participation from the local 
26 
communities will be instituted; 
27 
28 
n) Mining in environmentally-critical areas such as small island ecosystems, 
29 
primary forests and watersheds shall be banned. Dumping of mine wastes and 
30 
tailings to rivers, lakes and seas are prohibited; The integrity of the environment 
31 
shall not be compromised; and 
32 
33 
0) Areas affected by mmmg shall be rehabilitated, including abandoned mines. 
34 
Violators shall be strictly punished and made to pay heavy compensation to the 
35 
State and the affected communities; 
36 
Section 5.The exploration, development and utilization of natural resources must 
37 
comply with the principles of intergenerational responSibility. 
4 


CHAPTER II. SCOPE AND GENERAL PRINCIPLES 
1 
Section 6. Scope. This Act shall govern the ownership, management and governance of 
2 
both metallic and non-metallic ore minerals onshore and offshore, as well as quarry 
3 
resources, sand and gravel, guano, and gemstones, and the conservation, exploration, 
4 
development, utilization, processing and transportation thereof. 
The ownership, 
5 
management and governance of petroleum, natural gas and coal shall be governed by 
6 
special laws. Offshore mining shall also be governed by special laws. 
7 
This Act shall cover onshore and offshore, large-scale and small-scale mining operations 
8 
in the country, including mining projects in ancestral domains in accordance to the 
9 
existing national and international policies on our indigenous peoples. 
10 
Section 7. Ore minerals form part of the country's irreplaceable and non-renewable 
11 
natural wealth and capital. The conservation of our mineral wealth is a paramount 
12 
public interest and mineral resources shall be utilized only in a rational manner for 
13 
national and local development as specified by law and the National Industrialization 
14 
Program and the Mineral Management Plan. The economic benefits derived from 
15 
mining shall be eqUitably distributed by, among others, prioritizing development for 
16 
local communities and all other stakeholders directly affected by mining operations. 
17 
Section 8. The State shall have primary role, responsibility and concern in the 
18 
management, conservation, utilization, and development of the mining industry and 
19 
shall ensure the peoples participation in policy making and implementation of the same 
20 
at all levels of government. The management of mineral resources shall be a shared 
21 
concern and responsibility among the national government, corporations, all levels of 
22 
local government, and the communities affected by the exploration, development, and 
23 
u tiliza tion of mineral resources. 
24 
Section 9. The State shall accord support to communities dependent on small-scale 
25 
mining whose operations shall strictly adhere to the provisions of this law. 
26 
Section 10. Subject to their right to self-determination, indigenous cultural 
27 
communities/indigenous peoples (ICCs/IPs) own and have the responsibility to manage 
28 
the mineral resources in their respective ancestral domains, free from external 
29 
manipulation, interference, force threat, intimidation, coercion and other analogous 
30 
acts. The State shall support indigenous cultural communities in developing capacities 
31 
to effectively exercise their right and responsibility. 
32 
Section 11. Mining shall be limited in scale in accordance with this Act. 
5 


1 
Section 12. Mineral resources development, utilization and processing shall be reserved 
2 
for Filipino citizens and for Filipino corporations. Exploration shall be undertaken 
3 
directly by the State for the benefit of the nation. 
4 
Section 13. Remining and recycling of mineral resources shall be prioritized over the 
5 
opening of new mines to maximize and recover the remaining minerals resources from 
6 
the rejects or wastes of previous mines and mining operations. 
7 
Section 14. The State shall prioritize the rehabilitation of the abandoned mines in the 
8 
country. The State shall ensure the fullest compliance of all government and corporate 
9 
entities in and on the closure of mines, the rehabilitation/restoration of the immediate 
10 
environs or each mining project/activity in the country as provided by law. 
11 
Section 15. The State shall encourage and support Filipino private corporations and 
12 
mining cooperatives to participate and invest in the mining industry on mutually-
13 
beneficial grounds that will push forward the National Industrialization Program in 
14 
both small-scale and large-scale projects. 
15 
Section 16. Mineral resource extraction shall be allowed based on the Philippine 
16 
Government's National Industrial Plan. The sharing of profits from mining activities, 
17 
including the anticipated environmental and social costs on the affected local 
18 
communities of each mining project, should far outweigh ecological and social benefits 
19 
and costs from other land uses. The anticipated cost of environmental and social 
20 
impacts on the affected local communities, which shall at all times be prevented and/or 
21 
mitigated through the allocation of sufficient funds for this purpose. In mining projects 
22 
with foreign participation, a just return of investment scheme for the foreign entrants 
23 
into the industry shall be prescribed by law. 
24 
Section 17. The State shall prioritize the development of mineral resources needed for 
25 
national development and the creation of domestic processing capacity for industrial 
26 
metals, the integration of agricultural modernization and other labor-intensive 
27 
downstream industries. Mine planning shall be conducted to meet this principle. The 
28 
National Industial Plan shall support national development based on the principles of 
29 
sustainable development and modernization of its economic base. This framework will 
30 
define minerals to be extracted, volume to be extracted and when to be extracted. This 
31 
shall be matched with the approved mining areas as identified by the Councils. These 
32 
matched areas are eligible for mining operations. 
6 


CHAPTER III. DEFINITION OF TERMS 
1 
Section 18. Definition of terms. As used in and for the purposes of this Act, the 
2 
following terms, whether used in singular or in plural form, shall mean: 
3 
a. 
Abandonment - the act of the contractor leaving a mine without rehabilitatating 
4 
the affected areas or completing such rehabilitation despite the legal obligation to do 
5 
the same; 
6 
b. 
Acid mine drainage - the dissolution, mobilization and transportation of toxic 
7 
metals from rocks resulting from the chemical reaction of the acid-generating 
8 
minerals in rock and waste materials having high permeability to both air and 
9 
rainfall and other water inflows when land is opened up for mining and initiates the 
10 
chemical reaction, resulting to a perpetual machine of acid generation; 
11 
c. 
Ancestral domains -
all areas generally belonging to indigenous cultural 
12 
communities/indigenous peoples (ICCs/IPs) comprising lands, inland waters, coastal 
13 
areas, and natural resources therein, held under a claim of ownership, occupied or 
14 
possessed by ICCs/IPs, by themselves or through their ancestors, communally or 
15 
individually since time immemorial, continuously to the present except when 
16 
interrupted by war, force majeure or displacement by force, deceit, stealth or as a 
17 
consequence of government projects or any other voluntary dealings entered into by 
18 
government and private individuals/corporations, and which are necessary to ensure 
19 
their economic, social and cultural welfare. It shall include ancestral lands, forests, 
20 
pasture, residential, agricultural, and other lands individually owned whether 
21 
alienable and disposable or otherwise, hunting grounds, burial grounds, areas of 
22 
worship, bodies of water, mineral and other natural resources, and lands which may 
23 
no longer be exclusively occupied by ICCs/IPs but from which they traditionally and 
24 
historically had access to for their subsistence and traditional activities, particularly 
25 
the home ranges of ICCs/IPs who are still nomadic and/or shifting cultivators 
26 
d. 
Ancestral lands -
lands occupied, possessed and utilized by individuals, 
27 
families and clans who are members of the ICCs/IPs by themselves or through their 
28 
predecessors-in-interest, under claims of individual or traditional group ownership, 
29 
continuously, to the present except when interrupted by war, force majeure or 
30 
displacement by force, deceit, stealth, or as a consequence of government 
31 
development aggression projects and other voluntary dealings entered into by 
32 
government and private individuals/corporations including, but not limited to, 
33 
residential lots, rice terraces or paddies, private forests, swidden farms and tree lots; 
34 
e. 
Beneficiation - a process wherein a large fraction of the waste material is 
35 
removed from the mineral ore; 
7 


1 
f. 
Buffer Zones - identified areas outside the boundaries of and immediately 
2 
adjacent to designated protected areas designated by law that need special 
3 
development control in order to avoid or minimize harm to the protected area; 
4 
g. 
Bureau -
the Mines and Geosciences Bureau under the Department of 
5 
Environment and Natural Resources; 
6 
h. 
Carrying capacity -
the capacity of natural and human environments to 
7 
accommodate and absorb change without experiencing conditions of ecological 
8 
instability and attendant degradation; 
9 
i. 
Certificate of Ancestral Domains Title (CADT) - title formally recognizing the 
10 
rights of possession and ownership of ICCs/IPs over their ancestral domains 
11 
identified and delineated in accordance with law; 
12 
j. 
Certificate of Ancestral Lands Title (CALT) - a title formally recognizing the 
13 
rights of ICCs/IPs over their ancestral lands; 
14 
k. 
Closure of mines - permanent cessation of operations at a mine or mine 
15 
processing site after completion of the decommissioning process; 
16 
1. 
Consensus - the decision communally reached after appropriate participatory 
17 
consultation and discussion, free from any external manipulation, interference and 
18 
coercion, and other analogous cases and obtained after fully disclosing the intent and 
19 
scope, including the positive and negative impacts of the activity, in a language and 
20 
process understandable to the community or group. 
21 
m. Consent - the voluntary assent of the landowner or those who have been in 
22 
open, continuous, exclusive and notorious possession of the land for more than ten 
23 
(10) years in good faith, or thirty (30) years in bad faith, free from any external 
24 
manipulation, interference and coercion, and obtained after fully disclosing the intent 
25 
and scope, including the positive and negative impacts of the activity, in a language 
26 
and process understandable to the said landowner or occupant; 
27 
n. 
Contract area -
the area delineated as specifically provided by a mineral 
28 
agreement for the development or utilization of mineral resources found therein; 
29 
o. 
Critical watershed - refers to a drainage area of a river system, lake or water 
30 
reservoir supporting existing and proposed hydroelectric power, domestic water 
31 
supply, geothermal power and irrigation works, which needs immediate 
32 
rehabilitation and protection to minimize soil erosion, improve water yield and 
33 
prevent possible flooding. The term shall also include areas which are traditional 
34 
human settlements, land-uses, or sea-uses which are representative of a 
35 
culture/cultures, or human interaction with the environment especially when it has 
36 
become vulnerable under the impact of irreversible change; 
8 


1 
p. 
Critical habitats - place or environment where species or subspecies naturally 
2 
occur or has naturally established its population that are crucial to the survival of a 
3 
species and essential for its conservation; 
4 
q. 
Cultural sites - those that bear a unique or at least exceptional testimony to a 
5 
cultural tradition or to a civilization which is living or which has disappeared or, 
6 
directly or tangibly associated with events or living traditions, with ideas, or with 
7 
beliefs, with artistic and literary works of outstanding universal significance 
8 
r. 
Customary laws - body of written and/or unwritten rules, usages, customs and 
9 
practices traditionally recognized, accepted and observed by respective ICCs/IPs and 
10 
local communities; 
11 
s. 
Decommissioning -
the activity or process that begins after cessation of 
12 
prospecting activities or mineral production (including metallurgical plant 
13 
production). It involves, among others, the removal of unwanted infrastructure, 
14 
making excavations and waste repositories safe and stable and surface rehabilitation 
15 
with a view to negate or minimize any adverse environmental impacts remaining 
16 
after cessation of mineral production. It includes the after-care or maintenance that 
17 
may be needed. 
18 
t. 
Downstream industries - are mining activities that cover minerals processing, 
19 
refining, manufacturing of intermediate and capital goods and marketing of such; 
20 
u. 
Ecological profile or eco-profile - geographic-based instruments for planners 
21 
and decision-makers which present an evaluation of the environmental quality and 
22 
carrying capacity of an area and measures the specific interactions that will be 
23 
affected by any and all mining operations; 
24 
v. 
Exploration - covers the methods of searching or prospecting for mineral 
25 
resources by non-invasive means for the purpose of determining the existence, 
26 
extent, quantity and quality thereof, which may include but not limited to seismic, 
27 
gravity, magnetic, electromeganetic, radar, induced polarization, radio-wave and 
28 
electro geochemical; 
29 
w. Extraction - ore-removal activities that take place at the mine site itself; 
30 
x. 
Free, prior and informed consent (FPIC) - the consensus of all members of the 
31 
ICCs/IPs to be determined in accordance with their respective customary laws and 
32 
practices, free from any external manipulation, interference, coercion, and other 
33 
analogous acts and obtained after fully disclosing the intent and scope, including the 
34 
positive and negative impacts, of all the activities, in a language and process 
35 
understandable and acceptable to the community; 
9 


1 
y. 
Indigenous peoples/Indigenous cultural communities (IP/ICC) - refer to a 
2 
group of people or homogenous societies identified by self-ascription and ascription 
3 
by others, who have continuously lived as organized community on communally 
4 
bounded and defined territory, and who have, under claims of ownership since time 
5 
immemorial, occupied, possessed and utilized such territories, sharing common 
6 
bonds of language, customs, traditions and other distinctive cultural traits, or who 
7 
have, through resistance to political, social and cultural inroads of colonization, non-
8 
indigenous religions and cultures, became historically differentiated from the 
9 
majority of Filipinos. ICCs/IPs shall likewise include peoples who are regarded as 
10 
indigenous on account of their descent from the populations which inhabited the 
11 
country, at the time of conquest or colonization, or at the time of inroads of non-
12 
indigenous religions and cultures, or the establishment of present state boundaries, 
13 
who retain some or all of their own social, economic, cultural and political 
14 
institutions, but who may have been displaced from their traditional domains or who 
15 
may have resettled outside their ancestral domains. They are peoples who have a 
16 
spiritual relationship with the land; 
17 
z. 
Indigenous political structure - refers to organizational and cultural leadership 
18 
systems, institutions, relationships, patterns and processes for decision-making and 
19 
participation, identified by ICCs/IPs such as, but not limited to, Council of Elders, 
20 
Council of Timuays, Bodong Holders, and any other tribunal or body of similar 
21 
nature; 
22 
aa. Joint venture agreement -
an agreement wherein the government and a 
23 
qualified person organize a joint-venture company, with both parties having equity 
24 
shares, to develop and manage mineral resources. 
Aside from earnings on the 
25 
equity, the Government shall be entitled to a share in the output computed at a 
26 
certain percentage mutually agreed upon by and beneficial to both parties. 
27 
bb. Key biodiversity areas -
are sites of global biodiversity conservation 
28 
significance. They are defined by standardized criteria and thresholds to guide 
29 
conservation interventions such as the establishment of protected areas; 
30 
cc. 
Large-scale mining - mining in areas with more than twenty (20) hectares, using 
31 
mechanized tools and equipment, requiring considerable capital and having large-
32 
scale environmental, social, cultural and economic impacts with regard to resource 
33 
use and/or consumption. 
34 
dd. Mineral agreement - a contract entered into by the government, in behalf of the 
35 
State, and a private Filipino person, granting such person/s the privilege to mine a 
36 
specific contract area; 
37 
ee. Mineral resource - any concentration of minerals/rocks with potential economic 
38 
value; 
10 


1 
ff. 
Mineral processing - the milling, beneficiation or upgrading of ores or minerals 
2 
and rocks or by similar means to convert the same into marketable products; 
3 
gg. Minerals - all naturally occurring inorganic substance in solid, gas, liquid, or 
4 
any intermediate state excluding energy materials such as coal, petroleum, natural 
5 
gas, radioactive materials, and geothermal energy; 
6 
hh. Mine development - preparing the mine site for production by shaft sinking or 
7 
pit excavation building of access roads, and constructing of surface facilities; 
8 
ii. 
Mine wastes and tailings -rock materials from surface or underground mining 
9 
and milling operations with little or no economic value to the generator of the same; 
10 
jj. 
Mining activity - any or all of the following activities: exploration, extraction, 
11 
utilization, processing, transportation and other activities conducted for the same. 
12 
kk. Mining area - a portion of the contract area which has been identified by the 
13 
contractor wherein actual mining operations are conducted; 
14 
ll. 
Mining operations -
either all or any of the mining activities involving 
15 
exploration, feasibility, development, utilization, and processing; 
16 
mm.National industrialization -
in the mining industry, this shall denote the 
17 
primacy of mineral production, processing and distribution for the primary benefit of 
18 
the domestic economy. This includes creating favorable conditions for Filipino 
19 
entrepreneurs to engage in mining through various state-private agreements that 
20 
shall ensure that mining shall help spur more domestic investments, increase 
21 
agricultural production and produce both consumer and producer goods and 
22 
manufactures; 
23 
nn. National park - an area of the public domain essentially natural wilderness, 
24 
scenic, or historic in character which has been withdrawn from settlement, 
25 
occupancy, or any form of exploitation except in conformity with an approved 
26 
management plan and set aside exclusively to conserve the area or preserve the 
27 
scenery, the nahlral and historic objects, wild animals, and plants therein mainly for 
28 
the purpose of biodiversity conservation and/or human enjoyment. 
29 
00. Native title - pre-conquest rights to lands and domains which, as far back as 
30 
memory reaches, have been held under a claim of private ownership by ICCs/IPs, 
31 
have never been public lands and are thus indisputably presumed to have been held 
32 
that way since before the Spanish Conquest; 
33 
pp. Natural forest - forests composed of indigenous trees, not planted by man, 
34 
whose structure, functions, and dynamics have been largely the result of natural 
35 
succession processes 
11 


1 
qq. Natural parks - is a relatively large area not materially altered by human 
2 
activity where extractive resource uses are not allowed. These parks are maintained 
3 
to protect outstanding natural and scenic areas of national or international 
4 
significance for scientific, educational and recreational use; 
5 
rr. 
Open-pit mining - Extracting metal ores and minerals that lie near the surface 
6 
by removing the overlying material and breaking and loading the ore. Also known as 
7 
open-cast mining and open-cut mining; 
8 
ss. 
Ore - a material that contains minerals in such quantities that it can be mined 
9 
and worked commercially to extract that mineral. The mineral is usually contained in 
10 
chemical combination with some other element in addition to various impurities; 
11 
tt. 
Pollution control and infrastructure devices -
infrastructure, machinery, 
12 
equipment and/or improvements used for impounding, treating, or neutralizing, 
13 
precipitating, filtering, conveying and cleansing mine industrial waste and tailings as 
14 
well as eliminating or reducing hazardous effects of solid particles, chemicals, liquids 
15 
or other harmful by-products and gases emitted from any facility utilized in mining 
16 
operations for their disposal; 
17 
uu. Private land -
any land belonging to any private person which includes 
18 
alienable and disposable land being claimed by a holder, claimant, or occupant who 
19 
has already acquired a vested right thereto under the law, although the 
20 
corresponding certificate or evidence of title or patent has not been actually issued; 
21 
vv. Processing - includes all treatment an ore receives after its extraction and 
22 
beneficiation, which involves changes in the chemical nature of the mined minerals; 
23 
ww. Progressive rehabilitation - rehabilitation which involves the staged treatment 
24 
of disturbed areas during exploration, construction/development and mining 
25 
operations 
26 
xx. Protected areas - identified portions of land and water set aside by reason of 
27 
their unique physical and biological significance, managed to enhance biological 
28 
diversity and protected against destructive human exploitation; 
29 
yy. Protected landscapes, seascapes, marine sanctuaries -
areas of national 
30 
significance which are characterized by the harmonious interaction of man and the 
31 
environs while providing opportunities for public enjoyment through recreation and 
32 
tourism within the bounds of the normal lifestyle and economic activity of these 
33 
areas 
34 
zz. Quarry resources -
any common rock or other mineral substances as the 
35 
Director of the Mines and Geosciences may declare to be quarry resources such as, 
36 
but not limited to, andesite, basalt, conglomerate, coral sand, diatomaceous earth, 
12 


1 
diorite, decorative stones, gabbro, granite, limestone, marble, marl, red burning clay 
2 
for potteries and bricks, rhyolite, rock phosphate, sandstone, serpentine, shale, tuff, 
3 
volcanic cinders, and volcanic glass, Provided, That such quarry resources do not 
4 
contain metals or metallic constituents and lor other valuable minerals in 
5 
economically workable quantities; Provided further, That non-metallic minerals such 
6 
as kaolin, feldspar, bull quartz, quartz or silica, sand and pebbles, bentonite, talc, 
7 
asbestos, barite, gypsum, bauxite, magnesite, dolomite, mica, precious and semi-
8 
precious stones, and other non-metallic minerals that may later be discovered and 
9 
which the Director declares the same to be of economically workable quantities, shall 
10 
not be classified under the category of quarry resources; 
11 
aaa. Quarrying - process of extracting, removing and disposing quarry resources 
12 
found on or underneath the surface of private or public land. 
13 
bbb. Regional Director - the regional director of any mines regional office; 
14 
ccc. Regional Office - any of the mines regional offices; 
15 
ddd.Recycling - shall refer to the treating of used or waste materials through a 
16 
process of making them suitable for beneficial use and for other purposes, and 
17 
includes any process by which solid waste materials are transformed into new 
18 
products in such a manner that the original products may lose their identity, and 
19 
which may be used as raw materials for the production of other goods or services: 
20 
Provided, That the collection, segregation and re-use of previously used packaging 
21 
material shall be deemed recycling under the Act. 
22 
eee. Rehabilitation - the process by which the land will be returned to a form and 
23 
productivity in conformity with a prior land use plan induding a stable ecological 
24 
state that does not contribute substantially to environmental deterioration and is 
25 
consistent with surrounding aesthetic values; 
26 
fff. Remediation - removal of pollution or contaminants from environmental media 
27 
for the general protection of the area and the people. 
28 
ggg. Remining - maximizing and recovering the remaining minerals from the rejects 
29 
or wastes of previous mines and mining operations; 
30 
hhh. Restoration - where the intent is to recreate an ecosystem as close as possible to 
31 
the original which existed at the site, with most of the structure and productivity 
32 
matching that of the original ecosystem, and most of the original biodiversity: in time 
33 
ecological processes and functions will match those of the original forest; 
34 
iii. Self-determination - refers to the right of a people to determine its own political 
35 
destiny as defined by existing Philippine laws. The right to self-determination has 
36 
includes the right of ICCs/IPs to choose their form of government within existing 
13 


1 
national borders to achieve a greater degree of autonomy to help preserve their 
2 
culture, ancestral domain, and way of life; 
3 
iii. 
Small-scale mining - mining activities which rely heavily on manual labor 
4 
using simple implements and methods and do not use explosives or any heavy 
5 
mining equipment, primarily engaged in for sustainable living. Impacts from small-
6 
scale mining shall not be large-scale, otherwise, the mining activity shall be defined 
7 
as large-scale mining; 
8 
kkk. Small-scale mining permit - permit issued for small-scale mining 
9 
Ill. Strategic minerals - minerals needed for national industrialization, including 
10 
rural development 
11 
mmm. 
Tailings Disposal System or Tailings Placement - the method wherein 
12 
the waste from mining operations are dumped, placed, or disposed. 
13 
nnn. Traditional small-scale mining - small-scale mining using traditional means 
14 
and without the use of chemical or mechanized extraction and separation means, 
15 
methods, implements, and/or equipment; 
16 
000. Watershed continuum - shall refer to an area consisting of the watershed and its 
17 
divide including its connection from the headwaters to the reef or a land area drained 
18 
by a stream or a fixed body of water and with tributaries having a common outlet for 
19 
surface runoff. It is the system by which the mining-affected communities shall be 
20 
determined following the drainage of a stream or fixed body of water with tributaries 
21 
having a common outlet for surface runoff; 
22 
ppp.Wildlife - undomesticated forms and varieties of flora and fauna. 
CHAPTER IV. OWNERSHIP AND GOVERNANCE 
23 
Section 19. Authority of the Bureau. The Mines and Geosciences Bureau shall be a 
24 
scientific research institution under the Department of Environment and Natural 
25 
Resources (DENR) primarily conducting and developing research of mineral resources 
26 
and mining technologies and training of local communities, local government units and 
27 
indigenous peoples. It shall also regulate the operations of persons involved in mining 
28 
activities. It shall also work with the Multi-Sectoral Mineral Council in the monitoring 
29 
of mining activities. 
14 


1 
Section 20. Regional offices. The Bureau shall have as many regional offices in the 
2 
country as may be established by the Secretary, upon the recommendation of the 
3 
Director. 
4 
Section 21. Bureau as repository of information. The Bureau shall be the central 
5 
repository of information regarding mineral lands, resources, permits, studies and other 
6 
information relevant to the operation of a mine, including the necessary requirements 
7 
which a contractor is obliged to submit. All other governmental offices and other bodies 
8 
created under this Act shall copy furnish the Bureau of all other information related to 
9 
mining. 
10 
Section 22. Recording system. There shall be established a national and regional filing 
11 
and recording system. A mineral resource database system shall be set up in the Bureau 
12 
which shall include, among others, a mineral rights management system. 
13 
Section 23. Publication. The Bureau shall publish at least annually a mineral gazette of 
14 
nationwide circulation containing among others, a current list of mineral rights, their 
15 
locations specified in the appropriate map, mining rules and regulations, other official 
16 
acts affecting mining, and other information relevant to mineral resources development. 
17 
A system of publication fund shall be included in the regular budget of the Bureau. 
18 
Section 24. Bureau to conduct exploration activities. Exploration of mineral resources 
19 
shall be exclusively and directly undertaken by the State through the Bureau. In no case 
20 
shall this function be delegated or contracted out to private corporations or persons. 
21 
Section 25. Non-invasive exploration. Exploration activities shall only be non-invasive 
22 
such as seismic, gravity, magnetic, electromagnetic, radar, induced polarization, radio-
23 
wave and electro-geochemical. 
24 
Section 26. Consent. The Bureau shall not enter into any private lands for the purposes 
25 
of exploration activities without the written consent of the land owner, possessor and/or 
26 
occupant; or the FPIC of the ICC/IP and payment of just compensation for the use of 
27 
property. Neither shall the Bureau enter into any part of the ancestral domains/lands of 
28 
ICCs/IPs without their free and prior informed consent. Further, the Bureau shall not 
29 
enter into any distributed land under the Comprehensive Agrarian Reform Program 
30 
within in the 10 years prohibited period of the said program. 
31 
Section 27. Ownership of ICCs/IPs. The mineral resources within ancestral 
32 
domains/ancestral lands are the collective private property of the indigenous cultural 
33 
communities/indigenous peoples (ICCs/IPs) as provided by law. The management of 
34 
such mineral resources shall build on the indigenous knowledge systems and practices 
35 
of the ICCs/IPs. 
36 
Section 28. Free, prior and informed consent. No mining activity shall be conducted 
37 
within the ancestral domains/lands of ICCs/IPs without their free, prior and informed 
15 


1 
consent (FPIC), in addition to the conditions set for under the succeeding sections of 
2 
this Act. 
3 
Section 29. When ancestral domain is not formally recognized. 
When ancestral 
4 
domain is not covered by a Certificate of Ancestral Domain Title/Certificate of Ancestral 
5 
Land Title (CADT/CALT), or is covered by a different title issued in favor of members 
6 
of the ICCs/IPs, mineral resources shall nevertheless be managed by the ICCs/IPs 
7 
concerned when it can be presumed that the area is part of ancestral domain. An area is 
8 
presumed to be part of ancestral domain by virtue of historic rights and self-delineation 
9 
by the ICCs/IPs. 
10 
Section 30. When ICCs/IPs displaced from ancestral domain, and when ancestral 
11 
domain is already covered by other titles emanating from the state other than 
12 
CADT/CALT. Native title over ancestral domain subsists notwithstanding the fact that 
13 
the ICCs/IPs who hold such native title have been displaced therefrom or that such 
14 
ancestral domains have been occupied by other persons or corporations under another 
15 
claim of title emanating from the State. In such cases, ICCs/IPs shall continue to own 
16 
such mineral resources. 
17 
Section 31. Questions on the validity of FPIC. In instances that there are questions on 
18 
the legality or validity of the issued free prior and informed consent, mining operations 
19 
shall not be allowed to be conducted in the ancestral domains or lands of the ICCs/IPs 
20 
without the final resolution of such question on the legality or validity of the FPIC. 
21 
Section 32. Ownership of the State. The mineral resources found outside ancestral 
22 
domains/lands shall be owned by the State. The State shall ensure that the management 
23 
of mineral resources shall be primarily for the benefit of the local communities in whose 
24 
territory the same shall be found. Any minerals extracted shall be solely used for local 
25 
industries consistent with the Minerals Management Plan. The State may directly 
26 
undertake development, utilization and processing oLmineral resources or it may enter 
27 
into mineral agreements with eligible parties pursuant to the provisions of this Act. 
28 
Section 33. Inventory of mineral resources. The Bureau shall identify and provide an 
29 
inventory of the available mineral resources, including the mine tailings and wastes 
30 
within the country. It shall submit to the DENR a report which shall contain the 
31 
following information: 
32 
a) the classification of minerals; 
33 
b) the quality and grade of the ore; 
34 
c) the potential mine life; 
35 
d) the geological description of the area; 
36 
e) the economic viability of mine tailings; 
16 


1 
f) whether the area is a key biodiversity area or if it is a critical habitat; 
2 
g) and all other relevant information necessary for potential mineral investments. 
3 
The process for mineral exploration and/or approval for a mining permit shall not 
4 
commence without the said inventory. 
5 
Section 34. Identification of strategic minerals. The Bureau shall conduct researches 
6 
and studies prior to any mining operations to identify strategic mineral resources. Only 
7 
mineral resources that shall be needed for local industries, agricultural modernization 
8 
and rural development shall be opened to mining subject to the implementing rules and 
9 
regula tions of this Act. 
10 
Section 35. Demarcation of mineral areas. The Bureau shall demarcate the boundaries 
11 
of all areas identified as containing commercial quantities of mineral resources on the 
12 
ground. 
13 
Section 36. Baseline information on watershed continuums. The baseline information 
14 
on all watersheds in the country shall be required and made available to the public, 
15 
online as much as possible. No mining permit shall be issued without this baseline 
16 
information. 
17 
Section 37. Affected local community and local government unit. For the purposes of 
18 
this Act, the affected local community and the affected local government unit are 
19 
defined in relation to the watershed continuum which is potentially negatively 
20 
impacted by mining operation in the demarcated area. The local communities and the 
21 
local government units therefore are those who are dependent on the watershed eco-
22 
system and its resources. 
23 
Section 38. Establishment of Multi-Sectoral Mineral Council. 
A Multi-Sectoral 
24 
Mineral Council shall be established for the purposes of this Act. There shall be as 
25 
many Multi-Sectoral Mineral Councils are there are watershed continuums with 
26 
demarcated mineral areas. 
27 
Section 39. Powers of the Council. The Council shall have the following powers, among 
28 
others: 
29 
a) To determine whether or not mining operations shall be allowed; 
30 
b) To deliberate on proposals for mineral agreements; 
31 
c) To approve the proposal for mineral agreements; 
32 
d) To monitor the conduct of mining operations; 
33 
e) To establish its internal rules of procedure which are not contradictory to this 
34 
Act; 
17 


1 
Section 40. Composition of the Multi-Sectoral Mineral Council. The Multi-Sectoral 
2 
Mineral Council shall be composed of representatives from the Bureau, one 
3 
4 
5 
6 
representative from each of the affected provincial governments/independent 
component 
cities/highly 
urbanized 
cities, 
representatives 
from 
peoples/community/sectoral/non-governmental 
organizations 
representatives of local government units, and the affected 
as 
many 
as 
the 
ICCs/IPs within the 
7 
watershed continuum. The Bureau shall be the convenor of the Council. 
8 
No mining operations shall be allowed without the Council having been properly 
9 
convened. 
10 
Section 41. Areas open to mining. The Council shall have the power to determine 
11 
whether or not the land where mineral resources are found shall be opened to mining. 
12 
Areas may only be opened to mining upon the unanimous vote of all the members of 
13 
the Council pursuant to the guidelines provided by this Act. In determining whether or 
14 
not such area shall be opened, the following shall be required: 
15 
a) Report of the Bureau on the conducted exploration; 
16 
b) Existence of downstream industries for the mineral resources; 
17 
c) Potential environmental impacts; 
18 
d) Potential cultural impacts; 
19 
e) Conflict and risk assessment; 
20 
f) Potential health impacts; 
21 
g) Potential economic benefits of the development and utilization of the minerals; 
22 
h) Carrying capacity and the ecological profile of the area; 
23 
i) Existing and alternative land uses of the area; 
24 
j) Local government land use plan. 
25 
No mining application shall be allowed unless an environmental economic audit or 
26 
resource valuation of the proposed mining area has been conducted or prepared 
27 
applying acceptable valuation standards. This audit or resource valuation shall be 
28 
conducted in coordination with multisectoral group of experts and community 
29 
stakeholders. It shall include determination of the expected economic returns and the 
30 
potential negative impacts from mining on the enjoyment and exercise of human rights, 
31 
cultural rights, and on peace and security. A detailed study must mention the flora, 
32 
fauna and environment present in the mining claim and the impact of mining 
33 
operations on the environment, the possible environmental degradation and the 
34 
attendant loss of subsistence resources cause. There must be mention of existence of 
18 


1 
sacred areas or areas otherwise of cultural significance and address the impacts of 
2 
resource exploitation on indigenous peoples and local communities. 
3 
This information shall be accessible to the public at all times. 
4 
Provided however, That in no case shall the Council open the following areas to mining: 
5 
a) Areas declared by Local Government Units as No-Mining Zones as specified by 
6 
local ordinances, and other issuances; 
7 
b) Densely populated areas, especially residential areas; 
8 
c) Head waters of watershed areas; 
9 
d) Areas with potential for acid mine drainage; 
10 
e) Critical watersheds; 
11 
f) Critical habitats; 
12 
g) Climate disaster-prone areas; 
13 
h) Geohazard areas; 
14 
i) Small island ecosystems; 
15 
j) 
Cultural sites, which may include, but not limited to, sacred sites and burial 
16 
grounds; 
17 
k) Traditional swidden farms and hunting grounds; 
18 
1) 
Lands covered by the Comprehensive Agrarian Reform Law or Republic Act No. 
19 
6657, as amended; 
20 
m) Prime agricultural lands, irrigable and irrigated lands as defined by Republic Act 
21 
No. 9700; 
22 
n) Cultural property enumerated under the National Cultural Heritage Act of 2009 
23 
or Republic act No. 10066; 
24 
0) Community sites; 
25 
p) Key biodiversity areas; 
26 
q) High conflict areas; 
27 
r) The Province of Palawan pursuant to Republic Act No. 7611 and other areas 
28 
covered by local ordinances; 
19 


1 
s) In military and other government reservations, except upon prIor written 
2 
clearance by the government agency concerned; 
3 
t) Near or under public or private buildings, cemeteries, archeological and historic 
4 
sites, bridges, highways, waterways, railroads, reservoirs, dams or other 
5 
infrastructure projects, public or private works including plantations or valuable 
6 
crops, except upon written consent of the government agency or private entity 
7 
concerned; 
8 
u) In areas expressly prohibited by law or ordinances; 
9 
v) In areas covered by small-scale miners as defined by law unless with prior 
10 
consent of the small-scale miners, in which case a royalty payment upon the 
11 
utilization of minerals shall be agreed upon by the parties, said royalty forming a 
12 
trust fund for the socioeconomic development of the community concerned; and 
13 
w) Old growth, natural or primary forests, watershed forest reserves, wilderness 
14 
area, mangrove forests, mossy forests, national parks, protection forests, 
15 
provincial/municipal forests, parks, greenbelts, game refuge and bird sanctuaries 
16 
and their respective buffer zones prohibited under the National Integrated 
17 
Protected Area System (NIPAS) under Republic Act No. 7586, Department 
18 
Administrative Order No. 25, series of 1992 and other laws and ordinances and 
19 
those expressly prohibited by other laws. 
20 
The determination whether or not the same are absolutely closed to mining shall not 
21 
only be limited to the existence of a law or ordinance declaring it as protected areas, but 
22 
also to the actual use of said area. 
23 
Section 42. Manner of voting by the Council for opening an area to mining. Sections 
24 
26 and 27 of the Local Government Code on consultation and consent shall be strictly 
25 
adhered to. Local government units at all levels shall conduct mandatory public 
26 
hearings with the affected local communities, to be carried out within their respective 
27 
territories and presenting those enumerated under Section 41. 
28 
After the inventory of the existing minerals, the formulation of a mine plan, and the 
29 
existence of the baseline information of the particular watershed area, the Bureau shall 
30 
convene the Council. 
31 
The Council shall thereafter convene their respective constituents to determine whether 
32 
or not their respective territories shall be opened for mining. 
33 
Local government units, ICCs/IPs, NGOs and peoples organizations, shall ensure that 
34 
the Bureau shall comprehensively explain the goals and objectives of the project or 
35 
program, its negative and positive impact upon the people and the community in terms 
36 
of environmental or ecological balance, and the measures that will be undertaken to 
20 


1 
prevent or minimize the adverse effects thereof. Thereafter, the approval of the 
2 
respective sanggunians of the affected local government units shall be required in 
3 
accordance to the sentiment of the peoples of the local government unit as a result of the 
4 
consultations conducted. 
5 
Provided, That the affected local government unit representatives shall meet and shall 
6 
relay 
the 
decision 
of 
their 
respective 
constituents 
to 
the 
provincial 
7 
government/independent 
component 
cities/highly 
urbanized 
cities. 
The 
8 
provincial/component city/highly urbanized city government representative shall sit in 
9 
the Council and shall carry the result of the vote of all the affected local government 
10 
units within the province resulting from the process provided in the preceding 
11 
paragraph of this Section. There must be a unanimous vote among the local government 
12 
units for the purpose of opening a particular area for mining. Failure to reach a 
13 
unanimous vote for opening shall mean that the area is closed to mining. All the 
14 
proceedings shall at all times be recorded. 
15 
Provided 
moreover, 
That 
in 
case 
there 
are 
affected 
indigenous 
cultural 
16 
communities/indigenous peoples within the watershed continuum, they shall also bring 
17 
the community's vote to the Council after undergoing their own processes in 
18 
accordance with their respective indigenous political structure, free from any external 
19 
manipulation, interference, coercion and other analogous acts, and obtained after fully 
20 
disclosing the intent and scope, including the positive and negative impacts of the 
21 
activity, in a language and process understandable and acceptable to them. 
22 
Provided finally, That any member of the community may file a protest with the Council 
23 
during this period of consultations and deliberations for the Council's consideration. 
24 
Section 43. Violation of Section 52. Local government officials who are administratively 
25 
found to violate the preceding section and Section 52 of this Act vis-a-vis the pertinent 
26 
sections of the Local Government Code shall be removed from office and perpetually 
27 
disqualified from holding any elective or appointive position in government, its 
28 
divisions, subsidiaries and any government owned and controlled corporations. 
29 
Section 44. Pool of consultants. There shall be a pool of independent consultants that 
30 
may assist the local government units, local communities or ICCs/IPs with regard to the 
31 
technical aspects of mining. 
32 
Section 45. Publication, posting and radio announcement requirements. The decision 
33 
of the Council shall be published by the Bureau in the local newspaper in the local 
34 
language, shall be announced on the local radio programs for not less than six (6) weeks 
35 
and notices shall be distributed widely in communities. The notice containing relevant 
36 
information shall likewise be posted in conspicuous places for the information of the 
37 
general public and shall be announced during the local market day. 
21 


CHAPTER V. MINERAL AGREEMENTS 
1 
Section 46. Modes of mineral agreement. A mineral agreement may only take the 
2 
following forms as herein defined; 
3 
a) Mineral production sharing agreement - is an agreement where the Government 
4 
grants to the contractor the exclusive right to conduct mining operations within a 
5 
contract area and shares in the gross output. The contractor shall provide the 
6 
financing, 
technology, 
management and 
personnel 
necessary 
for 
the 
7 
implementation of this agreement; 
8 
b) Co-production agreement - is an agreement between the Government and the 
9 
contractor wherein the Government shall provide inputs to the mining 
10 
operations other than the mineral resource; and 
11 
c) Joint venture agreement - is an agreement where a joint-venture company is 
12 
organized by the Government and the contractor with both parties having equity 
13 
14 
shares. Aside from earnings in equity, the Government shall be entitled to a 
share in the gross output. 
15 
In no case shall Financial or Technical Assistance Agreements, or any other similar 
16 
agreements, contracts, and/or executive issuances granting license or permission to 
17 
explore, develop and/or utilize mineral resources be awarded to foreign entities or 
18 
persons. 
19 
Section 47. Eligibility. Only Filipino citizens or corporations sixty percent (60%) of 
20 
whose equity is owned or controlled by such citizens shall be allowed to conduct 
21 
development, utilization and processing of mineral resources within the country. 
22 
Section 48. Identification of mining projects. With the unanimous vote of the Council 
23 
to open areas for mining operations, the Bureau shall prepare the necessary information 
24 
sheets on the said area for potential investments. The Bureau shall call for proposals to 
25 
develop the mining area based on the Mineral Management Plan. 
26 
Section 49. Pre-screening of mining proposals. Mining proposals shall be pre-screened 
27 
by the Bureau according to the National Industrialization and Mineral Management 
28 
Plan upon the submission of interested parties of the following: 
29 
a) demonstration of financial capability; 
30 
b) proven social and environmental track record, including those of its officers and 
31 
directors; 
32 
c) clear corporate structure and ownership; 
22 


1 
d) proof of physical office and operations of the proponent within the Philippines; 
2 
e) identification of potential investors; 
3 
f) mining project feasibility; 
4 
g) mining operation work plan; 
5 
h) proposed operation, mitigation and prevention methods and/or equipment; 
6 
i) capacity to process minerals; 
7 
j) intent to develop downstream industries; 
8 
k) intent to contribute to local community development. 
9 
I) Submission of the Environmental and Social Impact Assessment and Mitigation 
10 
Plan 
11 
The Council shall fix the minimum capitalization that any bidder must satisfy based on 
12 
its determination of the expected economic returns and the potential negative impacts 
13 
from mining, upon reference to an independent study proposing such minimum 
14 
capitalization. 
15 
Section 50. Environmental and Social Impact Assessment and Mitigation Plan. The 
16 
contractor shall submit an Environmental and Social Impact Assessment and Mitigation 
17 
Plan (ESIAMP) containing the means, methods, processes and schedule by which the 
18 
contractor shall conduct its operations and mitigate negative environmental and social 
19 
impacts. Social impact shall include possible impacts on the enjoyment and exercise of 
20 
human rights, cultural rights. The ESIAMP shall include plans relative to mining 
21 
operations; the rehabilitation, regeneration and restoration of mineral areas; slope 
22 
stabilization of mined out and tailings covered areas; aquaculture, watershed 
23 
development and water conservation; the relocation and return of displaced 
24 
population; and provisions for alternative livelihood and socioeconomic development. 
25 
The ESIAMP shall also contain a Social Development Plan which shall likewise contain 
26 
the plans of the proponent for the development of the community through the 
27 
establishment of infrastructures and programs that shall be sustainable even after the 
28 
closure of the mine.5ection 
29 
51. Pre-qualification. The Bureau shall thereafter identify the top three (3) proposals 
30 
and shall recommend the same to the Council for deliberation. 
31 
Section 52. Deliberation of the proposals. After the Bureau's transmittal of its 
32 
recommendations to the Council together with all the submitted documents for the pre-
33 
qualification, the Council shall initiate the deliberation process of the pre-qualified 
34 
proposals. 
23 


1 
Immediately thereafter, Sections 26 and 27 of the Local Government Code on 
2 
consultation and consent shall be strictly adhered to. Local government units at all 
3 
levels shall conduct mandatory public hearings with the affected local communities, to 
4 
be carried out within their respective territories and presenting those enumerated under 
5 
Section 43. Local government units, ICCs/IPs, NGOs and peoples organizations, shall 
6 
ensure that the mining applicant shall comprehensively explain the goals and objectives 
7 
of the project or program, its negative and positive impact upon the people and the 
8 
community in terms of social, cultural and environmental or ecological balance, and the 
9 
measures that will be undertaken to prevent or minimize the adverse effects thereof. 
10 
Thereafter, the approval of the respective Sanggunians of the affected local government 
11 
units shall be required in accordance to the sentiment of the peoples of the local 
12 
government unit as a result of the consultations conducted. 
13 
Provided, That the affected local government unit representatives shall meet and shall 
14 
relay 
the 
decision 
of 
their 
respective 
constituents 
to 
the 
provincial 
15 
government/independent component cities/highly urbanized cities through the 
16 
submission of the minutes of meeting declaring their decision with signatures from the 
17 
constituent. 
The provincial/component city/highly urbanized city government 
18 
representative shall sit in the Council and shall carry the result of the vote of all the 
19 
affected local government units within the province/independent component 
20 
city/highly urbanized city resulting from the process provided in the preceding 
21 
paragraph of this Section. 
22 
In determining which proposal is acceptable to the people, a majority vote of the local 
23 
government units within the province/independent component city/highly urbanized 
24 
city shall be required. 
25 
The affected ICCs/IPs shall also deliberate on the proposals in accordance with their 
26 
own systems and processes free from any external manipulation, interference, coercion 
27 
and other analogous acts, and obtained after fully disclosing the intent and scope, 
28 
including the positive and negative impacts of the activity, in a language and process 
29 
understandable and acceptable to them. 
30 
After the respective processes are complied with, the Council shall then meet and 
31 
decide which proposal, if any, is most acceptable and consistent with their own socio-
32 
economic, environmental and cultural programs and shall notify the Bureau of the 
33 
chosen proposal. 
34 
Section 53. Posting and pUblication requirement. After notice, the Bureau shall notify 
35 
the proponent of the accepted proposal and cause the publication and posting of the 
36 
accepted proposal. 
37 
Provided, That any member of the community may contest the decision of the Council 
38 
within six (6) weeks upon the posting and pUblication of notice of the acceptance of the 
24 


1 
proposal in the manner provided in Section 42. No mining operations shall be allowed 
2 
to be conducted pending any action questioning the legality or validity of the proposal. 
3 
Section 54. Issuance of the permit. After the six (6) weeks from the date of the posting 
4 
and publication, if no contest is filed, the Bureau shall issue a permit in accordance with 
5 
the decision of the Council on the winning proposal. 
6 
Section 55. Environmental and Social Impact Compliance Certificate. The mining 
7 
proponent shall be issued an Environmental and Social Impact Compliance Certificate 
8 
by the Bureau with the approval of the Council. 
9 
Provided, no amendments to the conditions of the Certificate shall be allowed, unless 
10 
such proposed amendment shall work for the benefit of the communities, and in which 
11 
case, the Council and the Bureau shall be notified of any amendments to the ESIAMP 
12 
and that the former should give their consent to the same, after the proponent 
13 
explaining in detail the reason for such amendment and the possible impacts and 
14 
consequences of these amendments. 
15 
Provided further, That any violation of the ESIAMP shall cause the cancellation of the 
16 
Certificate. 
17 
Section 56. Maximum areas for mineral agreements. The maximum area under mineral 
18 
agreements that a person can hold at anyone time shall be determined by the Council, 
19 
Provided, That the contract area per agreement shall not exceed five hundred (500) 
20 
hectares, Provided further, That no person shall be awarded in excess of the total contract 
21 
area of seven hundred-fifty (750) hectares in any given watershed area. For the 
22 
purposes of this Act, the prohibition on the maximum area shall also include 
23 
corporations that shall have common directors or significant shareholders. 
24 
Section 57. Term of mineral agreement. The term of the mineral agreement shall be 
25 
equivalent to the mine life plus an additional five (5) years for the rehabilitation of the 
26 
mining area. Provided, That in no case shall a Mineral Agreement have a term beyond 
27 
fifteen (15) years, Provided further, That the contractor shall already include 
28 
rehabilitation/remediation of the mining area within the ten-year term. 
29 
In no case shall a Mineral Agreement be extended without just cause to be determined 
30 
by the Council, Provided, That the extension shall not cause the term of the agreement to 
31 
exceed the fifteen (15) year term mentioned in the preceding section. Provided further, 
32 
That for the purposes of this act, just cause shall mean acts or events resulting from war, 
33 
force majeure or those beyond the control of the mining proponent not attributable to 
34 
the same. 
35 
Provided finally, That in no case shall mineral agreements be renewed after the 
36 
expiration of the fifteen-year period. 
25 


1 
Section 58. Prohibition on open-pit mining method and submarine tailings disposal. 
2 
Open-pit mining method for the extraction of mineral ores and the submarine tailings 
3 
disposal method shall be prohibited. 
4 
Section 59. Failure to initiate mining operations. Failure to commence the development 
5 
stage of the mining operations in accordance with the work program within two (2) 
6 
years from the award of the mineral agreement shall cause the cancellation of the 
7 
mineral agreement. The contractor thereafter forfeits the value of the improvements 
8 
made upon the land. The contractor and other corporations who are also run by the 
9 
same directors and officers are thereafter banned from bidding to conduct mining 
10 
operations for ten (10) years after failure to commence the development stage of the 
11 
mining operations in accordance with the work program. 
12 
Section 60. Mandatory consultations in each mining phase. Mandatory consultations 
13 
with affected communities shall be undertaken in each phase of mining operation: 
14 
exploration, extraction, processing, and mine closure to ensure that the peoples shall be 
15 
informed of the proposed plans and methods that are proposed to be conducted. 
16 
Section 61. FPIC of ICCs/IPs on each stage of mining operation. The free and prior 
17 
informed consent of the ICCs/IPs shall be required at each and every stage of the 
18 
mining operations. Free and prior informed consent shall be secured in accordance with 
19 
the laws, practices and processes of the concerned ICCs/IPs. The violation of any of the 
20 
conditions imposed by the ICCs/IPs on the contractor shall cause the cancellation of the 
21 
mineral agreement. Included in this process is the explanation of the rights of ICCs/IPs 
22 
of ownership and self-determination. 
23 
Section 62. Consent of private landowners. No person shall be allowed entry into 
24 
private lands without the written consent of the landowners, possessors or lawful 
25 
occupants of the land and/or the FPIC of the ICC/IP. 
26 
Section 63. Expropriation. Expropriation proceedings shall be filed with the regular 
27 
courts to determine whether the taking of private property for mining purposes shall 
28 
meet a public purpose and to determine just compensation. 
29 
Section 64. Multi-partite monitoring. The Council shall form a multi-partite monitoring 
30 
team to monitor compliance by the contractor of the terms and conditions of the mineral 
31 
agreement. It may conduct ocular inspections of the contract area at any time of the day 
32 
and night. It shall also inspect all the books of contractors and refer the same to 
33 
independent auditors. The Multi-partite monitoring team and/or the Bureau may 
34 
confiscate surety, performance and guaranty bonds posted through an order to be 
35 
promulgated by the Director. 
The Council, the Director or the local government 
36 
authorities may deputize, when necessary, any member or unit of the Philippine 
37 
National Police, barangay, duly registered nongovernment organization (NGO) or any 
38 
qualified person to police any and all mining activities. 
26 


1 
Section 65. Withdrawal from the mineral agreement. The contractor may withdraw 
2 
from the mineral agreement at any time for justifiable cause with one (1) month's notice 
3 
to the Bureau, the Council and/or the ICCs/IPs, and other government agencies as may 
4 
be provided by law. The Council, in cooperation with other concerned government 
5 
agencies, shall issue a clearance for withdrawal upon certifying that the contractor has 
6 
complied with all its legal obligations, including the appropriate measures for mine 
7 
closure and rehabilitation. Funds and bonds which have been put up by the contractor 
8 
in accordance with this Act shall be forfeited. 
9 
Section 66. Non-transferability of mineral agreements. In no case shall mining rights 
10 
under this Act be transferrable. The contractor shall also immediately notify the Council 
11 
and the Bureau of any substantial change in the ownership and/or control of the 
12 
corporation. Violation of this provision shall cause the cancellation of the agreement 
13 
and forfeiture of assets and eqUipment of the contractor in favor of the State. 
14 
Section 67. Access to information. All contractors for mineral permits and agreements 
15 
shall provide information to affected indigenous peoples, local communities, and local 
16 
governments. The following information, among others, shall be required: 
17 
a) full disclosure of methods and processes of mining 
18 
b) full disclosure of environmental and social risks 
19 
c) full disclosure of ownership structure 
20 
d) full disclosure of financial sources 
21 
All information and documents related to proposals, mineral agreements, permits and 
22 
mining operations shall not be considered confidential. 
23 
Refusal to grant access to this information shall be cause for the disqualification of 
24 
prospective proponents or cancellation of mineral agreements and permits. 
25 
The Bureau, being the repository of all relevant information under this Act is mandated 
26 
to grant access to the public of any information in its custody. Refusal or unnecessary 
27 
delay by the officers of the Bureau to give information shall be punishable by a fine of 
28 
fifty thousand pesos (Php 50,000.00) for every instance of refusal or unnecessary delay. 
29 
Information requested by indigents or marginalized sectors shall be given to them for 
30 
free. 
27 


CHAPTER VI. SMALL-SCALE MINING 
1 
Section 68. Applicability of RA 7076. Small-scale mining shall continue to be governed 
2 
by the provisions of Republic Act No. 7076 or the People's Small-Scale Mining Act of 
3 
1991, Provided, That the Provincial/City Mining Regulatory Board shall be composed of 
4 
the Governor or City Mayor, as chairperson, as the case may be, a representative from 
5 
the DENR as co-chairperson, one (1) small scale mining representative, one (1) big-scale 
6 
mining representative, one representative from a nongovernment organization who 
7 
shall come from an environmental group, one representative from a people's 
8 
organization (PO) coming from the marginalized sector, 
and at least one (1) 
9 
representative from the indigenous communities, whenever applicable, as members. 
10 
The representatives from the private sector, nongovernment organization and 
11 
indigenous communities shall be selected by their respective organizations and/or 
12 
communities, and appointed by the PMRB or CMRB. 
13 
Provided further, That the conduct of small-scale mining shall also comply with the 
14 
prohibitions and regulations established herein for large-scale mining. Only qualified 
15 
individuals and cooperatives may apply for a small-scale mining permit. 
16 
Section 69. Maximum term of small-scale mining permits. The term for small-scale 
17 
mining permits shall be three (3) years, extendable to a maximum of fifteen (15) years. 
18 
Section 70. Traditional small-scale mining within ancestral domains. The Council 
19 
shall conduct regular monitoring activities within its jurisdiction to determine if the 
20 
provisions of relevant laws are complied with in traditional small-scale mining by 
21 
ICCs/IPs within their respective ancestral domains. 
22 
Section 71. FPIC in small-scale mining. Small-scale mining activities within any 
23 
ancestral domain by any person shall also require the free, prior informed consent of 
24 
ICCs/IPs. 
25 
Section 72. Requirement for an Environmental and Social Impact Compliance 
26 
Certificate. Small-scale mining shall likewise require an Environmental and Social 
27 
Impact Compliance Certificate. All small scale mining applicants or proponents must 
28 
show proof of compliance with the terms and conditions of its Environmental and 
29 
Social Impact Compliance Certificate (ESICC) prior to the issuance of a small scale 
30 
mining permit. Failure to submit this requirement will result in the non-issuance of the 
31 
SSMP. 
32 
Section 73. Environmental measures in small-scale mining. The State shall 
33 
immediately address the environmental and health hazards and problems in small-scale 
34 
mining, including the use of hazardous chemicals, such as mercury, cyanide and other 
35 
chemicals, in the amalgamation of gold by small-scale miners. 
28 


1 
Section 74. Prohibition on the use of mercury. Mercury use in small-scale mining shall 
2 
be prohibited. The Bureau shall research, develop and actively promote appropriate 
3 
technologies in small-scale mining including labor-intensive methods, environmental 
4 
protection and physical techniques or gold extraction among small-scale miners. 
5 
Section 75. Multisectoral monitoring team. A multisectoral monitoring team shall be 
6 
organized to monitor the SSMP permittee's compliance with the terms and conditions 
7 
of its SSMP and ECC. The MMT shall conduct ocular inspections of the SSMP area at 
8 
any time of the day and night and shall have visitorial powers. 
9 
Section 76. Alternative livelihood support. The state shall support the improvement of 
10 
the livelihood of small-scale-miners by extending the services for access to other more 
11 
viable and sustainable forms of livelihood, and, if the same is not possible, the following 
12 
support services: 
13 
a) access to minerals markets and to financing; 
14 
b) facilitating partnership with mining companies or contractors by, among others, 
15 
requiring mining companies to buy tailings from small-scale mining operations 
16 
for further processing or recycling; 
17 
c) facilitating partnership among small-scale mining cooperatives; and 
18 
d) other incentives to attract informal small-scale miners to formalize their status. 
19 
Section 77. Buying stations. The Bangko Sentral ng Pilipinas shall ensure that buying 
20 
stations acquire gold from small-scale traders at prevailing international gold market 
21 
prices and the prevailing exchange rate set by the BSP Treasury Department on a daily 
22 
basis. 
CHAPTER VII. QUARRY RESOURCES 
23 
Section 78. Quarry resources within ancestral domains. Gathering of quarry resources, 
24 
sand and gravel, guano and other organic fertilizer materials, and gemstones within 
25 
ancestral domains shall likewise be subject to the free prior informed consent of 
26 
ICCs/IPs. ICCs/IPs and the government shall be entitled to at least ten per cent (10%) of 
27 
royalties depending on whether the resources are found inside or outside ancestral 
28 
domains. Permits shall be limited to a maximum term of five (5) years, renewable for 
29 
like periods but not exceeding a total term of twenty five (25) years, and a maximum 
30 
area of five (5) hectares. 
29 


1 
Section 79. Quarry Permit. Any qualified Filipino may apply for a quarry permit on 
2 
privately- owned lands except ancestral domains and/or public lands for building and 
3 
construction materials such as marble, basalt, andesite, conglomerate, tuff, adobe, 
4 
granite, gabbro, serpentine, inset filling materials, clay for ceramic tiles and building 
5 
bricks, pumice, perlite and other similar materials that are extracted by quarrying from 
6 
the ground at the provincial/city mining regulatory board. The provincial governor 
7 
shall grant the permit after the applicant has complied with all the requirements as 
8 
prescribed by the rules and regulations set forth by this Act. Provided that 
9 
gathering/extraction of sand for its metallic contents such as magnetite from the 
10 
country's rivers and shorelines shall be require a mineral agreement in lieu of a quarry 
11 
permit. 
12 
The maximum area which a qualified person may hold at anyone time shall be limited 
13 
to a surface area of five hectares (5 has.): Provided, That in large-scale quarry operations 
14 
involving cement raw materials, marble, granite, sand and gravel and construction 
15 
aggregates, a qualified person and the government may enter into a mineral agreement 
16 
as defined herein. 
17 
A quarry permit shall have a term of five (5) years, renewable for like periods but not to 
18 
exceed a total term of twenty-five (25) years. No quarry permit shall be issued or 
19 
granted on any area covered by a mineral agreement. 
20 
Section 80. Quarry Fee and Taxes. A permittee shall pay a quarry fee as provided for 
21 
under the implementing rules and regulations. The permittee shall also pay the excise 
22 
tax as provided by pertinent laws. 
23 
Section 81. Cancellation of Quarry Permit. A quarry permit may be cancelled by the 
24 
provincial governor for violations of the provisions of this Act or its implementing rules 
25 
and regulations or the terms and conditions of said permit: Provided, That before the 
26 
cancellation of such permit, the holder thereof shall be given the opportunity to be 
27 
heard in an investigation conducted for the purpose. 
28 
Section 82. Commercial Sand and Gravel Permit. Any qualified person may be granted 
29 
a permit by the provincial governor to extract and remove sand and gravel or other 
30 
loose or unconsolidated materials outside ancestral domains which are used in their 
31 
natural state, without undergoing processing from an area of not more than five 
32 
hectares (5 has.) and in such quantities as may be specified in the permit. 
33 
Section 83. Industrial Sand and Gravel Permit. Any qualified person may be granted 
34 
an industrial sand and gravel permit by the Bureau for the extraction of sand and gravel 
35 
and other loose or unconsolidated materials outside ancestral domains that necessitate 
36 
the use of mechanical processing covering an area of not more than five hectares (5 has.) 
37 
at anyone time. The permit shall have a term of five (5) years, renewable for a like 
38 
period but not to exceed a total term of twenty-five (25) years. 
30 


1 
Section 84. Exclusive Sand and Gravel Permit. Any qualified person may be granted an 
2 
exclusive sand and gravel permit by the provincial governor to quarry and utilize sand 
3 
and gravel or other loose or unconsolidated materials from public lands for his own 
4 
use, Provided, That there will be no commercial disposition thereof. 
5 
Section 85. Government Gratuitous Permit. Any government entity or instrumentality 
6 
may be granted a gratuitous permit by the provincial governor to extract sand and 
7 
gravel, quarry or loose unconsolidated materials outside ancestral domains needed in 
8 
the construction of building and/or infrastructure for public use or other purposes over 
9 
an area of not more than two hectares (2 has.) for a period coterminous with said 
10 
construction. 
11 
Section 86. Private Gratuitous Permit. Any owner of land may be granted a private 
12 
gratuitous permit by the provincial governor to extract sand and gravel, quarry or loose 
13 
unconsolidated materials within his property. 
14 
Section 87. Guano Permit. Any qualified person may be granted a guano pennit by the 
15 
provincial governor to extract and utilize loose unconsolidated guano and other organic 
16 
fertilizer materials in any portion of a municipality where he/she has an established 
17 
domicile outside ancestral domains. The permit shall be for specific caves and/or for 
18 
confined sites with locations verified by the Department's field officer in accordance 
19 
with existing rules and regulations. Provided, That extraction does not violate and is 
20 
consistent with the provisions in the Cave Conservation Act and the Wildlife Act. 
21 
Section 88. Gemstone Gathering Permit. Any qualified Filipino may be granted a non-
22 
exclusive gemstone gathering permit by the provincial governor to gather loose stones 
23 
useful as gemstones in rivers and other locations outside ancestral domains. 
24 
Section 89. Council recommendation for approval. All permits under Chapter VII of 
25 
this Act shall require the recommendation of the Multi-Sectoral Mineral Council prior to 
26 
approval by the provincial government unit. The absence of a recommendation from 
27 
the Council prohibits the approval of any permit in this Chapter. 
28 
29 
CHAPTER VIII. TRANSPORT, SALE AND PROCESSING OF MINERALS 
30 
31 
Section 90. Ore transport permit. A permit specifying the origin and quantity of non-
32 
processed mineral ores or minerals shall be required for their transport. Transport 
33 
permits shall be issued by the Bureau. The absence ot a permit shall be considered as 
34 
prima facie evidence of illegal mining and shall be sufficient cause for the confiscation 
35 
of the ores or minerals being transported, the tools and equipment utilized, and the 
36 
vehicle containing the same. 
31 


1 
Section 91. Track record. Only mining companies with demonstrated capacity and good 
2 
environmental track record in mineral processing shall be allowed to extract minerals. 
3 
The Council shall encourage contractors to put up processing plants within the 
4 
community with the end in view of generating employment and developing other 
5 
downstream industries. 
6 
Section 92. Mineral trading registration. No person shall engage in the trading of 
7 
mineral products, either locally or internationally, unless registered with the 
8 
Department of Trade and Industry and accredited by the Department, with a copy of 
9 
said registration submitted to the Bureau. 
10 
Section 93. Mineral processing permit. No person shall engage in the processing of 
11 
minerals without first securing a minerals processing permit from the Council. 
12 
Minerals processing permits shall be for a period of five (5) years, renewable for like 
13 
periods but not to exceed a total term of twenty-five (25) years. 
CHAPTER IX. DEVELOPMENT OF COMMUNITIES, SCIENCE AND 
TECHNOLOGY 
14 
Section 94. Expenditure for community development. A contractor shall assist in the 
15 
development of the community, and the promotion of the general welfare of its 
16 
inhabitants towards sustainable development. Community development projects shall 
17 
in no way decrease the obligation of the corporation with regard to royalties and fees 
18 
due to communities or local government units. Community development projects 
19 
should be consistent with the Comprehensive Land Use Plans (CLUP), Ancestral 
20 
Domains Sustainable Development and Protection Plan (ADSDPP) and annual 
21 
investment plans of the local governments, CADT/CALT holders and the like. 
22 
Section 95. Employment of Filipinos and training or members of the local community. 
23 
A contractor and/or permittee shall give preference to Filipino citizens in all types of 
24 
mining employment within the country. Members of the local community shall be 
25 
trained in all aspects of the mining operations, including remining, recycling, 
26 
rehabilitation, and the management thereof. 
27 
Section 96. Use of indigenous goods, services and technologies. A contractor shall give 
28 
preference to the use of local goods, services, and the scientific and technical resources 
29 
in all stages of mining operations, where the same are of equivalent quality and are 
30 
available on eqUivalent terms as their imported counterparts. 
31 
Section 97. Donation/turn over of facilities. Prior to the cessation of mining operations 
32 
occasioned by abandonment or withdrawal of operations, on public lands by the 
32 


1 
contractor, the latter shall have a period of one (1) year therefrom within which to 
2 
remove improvements; otherwise all the infrastructure, facilities and equipment shall 
3 
be turned over or donated tax-free to the proper government authorities, national or 
4 
local, to ensure that said infrastructure facilities and equipment are continuously 
5 
maintained and utilized by the host and neighboring communities. A fine of one 
6 
hundred thousand pesos (P100,000.00) shall be imposed for every day of delay. 
CHAPTER X. BENEFIT SHARING, TAXES AND FEES 
7 
Section 98. Taxes and fees. The contractor shall pay all taxes and fees as required by 
8 
law, including, but not limited to: 
9 
a) contractor's income tax; 
10 
b) customs, duties and fees on imported capital eqUipment; 
11 
c) value-added tax on imported goods and services; 
12 
d) withholding tax on interest payments on foreign loans; 
13 
e) withholding tax on dividends to foreign stockholders; 
14 
f) documentary stamps taxes; 
15 
g) capital gains tax; 
16 
h) excise tax on minerals; 
17 
i) local business tax; 
18 
j) real property tax; 
19 
k) community tax; 
20 
1) occupation fees; 
21 
m) registration, accreditation, and permit fees; 
22 
n) water usage fees. 
23 
Section 99. 
Government share. Aside from the taxes and fees referred to in the 
24 
preceding section, Government shall have at least a share equivalent to ten per cent 
25 
(10%) of the gross revenues from the development and utilization of mineral resources 
26 
that are owned by it to be set aside for the general fund of the government. 
33 


1 
Section 100. Indigenous cultural communities' royalty. In case of mineral operations 
2 
within ancestral domains, the contractor shall pay at least ten per cent (10%) of the gross 
3 
revenues as royalty to the ICCs/IPs. Community development programs shall not be 
4 
considered as royalty payment. The payment of the royalties shall directly be given to 
5 
the communities in a process that build on the ICCs/IPs' traditional and customary 
5 
laws. 
7 
Provided, That the royalty established in this Act shall be a minimum royalty payment 
8 
and may still be subject to other conditions to be agreed by the parties, free from any 
9 
external manipulation, interference, coercion, and other analogous acts, and obtained 
10 
after fully disclosing the intent and scope, induding the positive and negative impacts 
11 
of the activity, in a language and process understandable and acceptable to them. 
12 
Section 101. Scientific research and development fund. A Scientific Research and 
13 
Development Fund shall be set aside to be devoted to research and development of 
14 
clean mining technologies, improvement of mining processes, mine rehabilitation, 
15 
mitigating technologies, setting up and maintenance of an independent pool of experts, 
16 
and operational expenses of the Bureau. 
17 
Section 102. Legal support services fund. A legal support fund shall be set aside for 
18 
the use of the communities and local government units for cases that they may file 
19 
against mining permittees or cases that may be filed against them by mining companies 
20 
in trying to do their responsibility of protecting the rights of the marginalized groups, 
21 
the environment and sustainable development in general. 
22 
Section 103. Local Government Unit share. Local Government Units shall be entitled to 
23 
a share of the net revenues from mining operations which shall be paid directly to the 
24 
provincial/independent component city/highly 
urbanized 
city 
treasurer/s for 
25 
distribution to other local government units. To determine the government share, the 
25 
following variables shall be considered: 
27 
a) Classification of local government; 
28 
b) Vulnerability; 
29 
c) Human development index. 
3D 
A percentage of this amount shall be set aside by the respective local government units 
31 
for Disaster Risk Management. This fund shall likewise benefit ICCs/IPs within the 
32 
territory of the local government unit. 
33 
Provided, That the administrative and operational expenses of the Council shall also be 
34 
taken from this share. 
35 
Section 104. Mine wastes and tailings fees. A semi-annual fee to be known as mine 
36 
wastes and tailings fee is hereby imposed on all operating mining companies in 
34 


1 
accordance with the implementing rules and regulations. The mine wastes and tailings 
2 
fee shall accrue to a fund to be used as support funds for monitoring activities of the 
3 
Council. The Secretary is authorized to increase mine wastes and tailings fees, when 
4 
public interest so requires. 
5 
Section 105. Incentives. Incentives that shall be given to the contractors shall only be 
6 
limited to pollution control or mitigation devices. 
7 
Section 106. Deposit of capital and profits requirement. As part of their demonstrated 
8 
financial capacity, all large-scale mining companies/contractors are required to deposit 
9 
their capital investment and profits in banks or financial institutions that are owned, 
10 
managed and operated by the Philippine government. 
11 
Section 107. General rule on profit repatriation. Contractors with foreign financial 
12 
assistance shall be allowed to repatriate their profits from mining projects that should 
13 
not exceed fifty percent (50 %) of the total posted at the end at every fiscal year. Full 
14 
disclosure of profits is required. The full repatriation of profits shall be allowed one year 
15 
after the cessation of mining activities and the progressive rehabilitation of a mining 
16 
area as specified in the mineral agreement of each contractor. 
17 
The guidelines for Sections 106 and 107 shall be issued by the Bangko Sentral ng 
18 
Pilipinas and shall be furnished to the Department, Bureau, Council and all respective 
19 
contractors in the industry. 
CHAPTER XI. SAFETY AND ENVIRONMENTAL PROTECTION 
A. Safety 
20 
Section 108. Mines safety. All contractors and permittees shall strictly comply with all 
21 
the mines and safety rules and regulations concerning the safe and sanitary upkeep of 
22 
the mines and mining development. 
Government personnel involved in the 
23 
implementation of mines safety, occupational health and environmental rules and 
24 
regulations shall be covered under Republic Act No. 7305 or the Magna Carta of Public 
25 
Health Workers. 
26 
Section 109. Mine labor. No person under sixteen (16) years of age shall be employed in 
27 
any place of mining operations and no person under eighteen (18) years of age shall be 
28 
employed in a mine. 
29 
Section 110. Mine supervision. All mining and quarrying operations shall have at least 
30 
one (1) licensed mining engineer for every fifty (50) employees. Such engineer/s shall 
35 


1 
have at least five (5) years of experience in mining operations, and one (1) registered 
2 
foreman. 
3 
Section 111. Safety of workers. All mining companies shall provide safeguards to the 
4 
health and well-being of workers. The Regional Office of the Department of Labor and 
5 
Employment shall inspect all mining sites within their areas of jurisdiction to determine 
6 
the conditions of workers. 
Denial of entry shall be punishable under this Act. 
7 
Representatives of labor unions shall also have visitorial rights. 
8 
Section 112. Mine inspection. The mines regional directors and the Council shall have 
9 
jurisdiction over the safety inspection of all installations, surface or underground, in 
10 
mining operations at reasonable hours of day or night and as much as possible in a 
11 
manner that will not impede or obstruct work in progress of a contractor or permittee. 
12 
Monitoring reports and recommendations of the Bureau shall be submitted to the 
13 
Council. 
14 
Section 113. Power to issue orders. The mines regional director, in consultation with the 
15 
Environmental Management Bureau, forthwith or within such time as specified in the 
16 
order, require the contractor to remedy any practice connected with mining, which is 
17 
not in accordance with safety and anti-pollution laws and regulations. In case of 
18 
imminent danger to life or property, the Director may summarily suspend the mining 
19 
operation until the danger is removed, or appropriate measures are taken by the 
20 
contractor. Unreasonable delay to remove the danger or introduce the necessary 
21 
improvements by the contractor shall be a cause for the cancellation of the mineral 
22 
agreement. 
23 
Section 114. Report of accidents. In case of any incident or accident, causing or creating 
24 
the danger of loss of life or serious physical injuries, the person in charge of operations 
25 
shall immediately report the same to the regional office where the operations are 
26 
situated. Failure to report the same without justifiable reason shall be cause for the 
27 
imposition of administrative sanctions prescribed in the rules and regulations 
28 
implementing this Act. 
B. Environmental Protection 
29 
Section 115. Environmental Insurance. Contractors and mineral processing permit 
30 
holders shall be obliged to execute an insurance contract as an environmental assurance 
31 
for each and every source of pollution or disaster, relative to the "worst case scenario" 
32 
costs, following accepted actuarial standards, Provided, That in no way shall this 
33 
provision be construed to remove or reduce the liability of the contractors and/or permit 
34 
holders to compensate any damage caused by their operations. Provided further, That the 
35 
insurer shall be an accredited international company in good standing. 
36 


1 
Prior to the approval of the insurance contract by the DENR, the DENR shall seek and 
2 
consider the opinion of an independent expert as to the financial credibility of the 
3 
insurer. 
4 
Section 116. Calamity and Human Rights Protection Fund. Persons issued a mineral 
5 
agreement shall deposit five million pesos (Php5,000,000.00) semi-annually in an 
6 
interest-bearing account a common fund maintained by the national government which 
7 
shall be used for responding to, or ameliorating the effects of calamities, natural 
8 
disasters and human rights violations including militarization, displacement, and 
9 
forcible evacuation in any part of the country in relation to mining activities. Provided, 
10 
That in no way shall this provision be construed to remove or reduce the liability of the 
11 
contractors and/or permit holders to compensate any damage caused by their 
12 
operations. 
13 
Section 117. Performance Bond. The contractor shall put up a bond in an amount 
14 
equivalent to fifty per cent (50%) of the projected cost of rehabilitation as validated by 
15 
independent shldies. This amount shall be deposited in an interest-bearing account. 
16 
The bond shall be forfeited in the event that the contractor shall fail or default in the 
17 
rehabilitation or remediation of the mining area as included in the work plan of the 
18 
contractor or abandons the mine at any time of its operations. 
19 
Section 118. Rehabilitation. 
Contractors and permittees shall technically and 
20 
biologically rehabilitate the excavated, mined-out, tailings covered and disturbed areas 
21 
to the condition of environmental safety, as may be provided in the implementing rules 
22 
and regulations of this Act. A mine rehabilitation fund shall be created, based on the 
23 
contractor's approved work program, and shall be deposited as a trust fund in a 
24 
government depository bank and used for physical and social rehabilitation of areas 
25 
and communities affected by mining activities and for research on the social, technical 
26 
and preventive aspects of rehabilitation. Failure to fulfill the above obligation shall 
27 
mean 
immediate 
suspension or 
closure 
of 
the 
mining 
activities 
of 
the 
28 
contractor/permittee concerned. 
29 
Mining firms are hereby mandated to reforest 100 hectares of land for everyone 
30 
hectare of land they utilize in the course of their mining operations. Mining firms are 
31 
also mandated to immediately restore and replant areas that they have already finished 
32 
excavating as they move on to other development sites: Provided, however, that if 
33 
mining firms cannot do the reforestation in their immediate area they could do the 
34 
reforestation in other areas provided they comply with 100:1 hectare ratio. Any mining 
35 
firm found to have violated or have not complied with the foregoing mandatory 
36 
provisions shall be held liable with the penalty of revocation of their mining permits 
37 
and payment of a fine of not less than One Million Pesos (Pl,OOO,OOO). 
37 


1 
The owners, officers and management employee of said mining firms shall also 
2 
be held liable and be subject to imprisonment of not less than one (1) year nor more 
3 
than three (3) years. 
4 
Section 119. Progressive rehabilitation. Contractors shall also conduct progressive 
5 
rehabilitation activities. 
6 
Section 120. Adoption of Precautionary Principle. When an activity related to mining 
7 
raises threats of harm to human health or the environment, precautionary measures 
8 
shall be taken proactively even if some cause and effect relationship are not fully 
9 
established scientifically. The mining proponent and the Bureau shall also be obliged to 
10 
disclose whether or not the cause and effect have not yet been scientifically established. 
11 
Section 121. Adoption of Polluter Pays Principle. Polluters shall pay for the damage 
12 
they cause to the environment. The amount of damages shall be determined by 
13 
accredited independent consultants, to be chosen from a list and agreed upon by both 
14 
the mining proponent and by the Council. 
15 
Section 122. Tailings impoundment. Tailings impoundments shall be built away from 
16 
critical watershed drainage areas. Furthermore, it shall be ensured that impoundments 
17 
will not endanger critical watershed areas or low lying valleys in the event of accidents 
18 
under abnormal conditions. Tailing impoundments and dams shall meet the 
19 
international standards for large dams. 
20 
Section 123. Dumping of waste. Dumping of waste or tailings in any body of water 
21 
shall be prohibited. Provisions on the Clean Water Act and Clean Air Act shall be 
22 
strictly implemented. 
23 
Section 124. Use of toxic chemicals and methods. At all times, mining contractors shall 
24 
use chemicals or reagents which would result to the least environmental and social 
25 
destruction. The use of mercury and cyanide for the extraction of gold, silver and other 
26 
minerals shall be prohibited. The use of blow torching to separate gold from amalgam 
27 
shall likewise be prohibited. 
28 
Section 125. Preservation of topsoil. The removed topsoil, or the more productive 
29 
horizons of the soil shall be preserved for other uses. 
30 
Section 126. Priority use for water. The National Water Resources Board shall 
31 
investigate any existing use of water resources in the area whether or not covered by 
32 
any existing water permit or registration. Upon determination of any existing use, the 
38 


1 
applicant shall procure the consent of all water users and/or the free prior and informed 
2 
consent of ICCs/IPs with or without water permits within the same groundwater 
3 
network or any downstream users of water resources. In all instances, priority shall be 
4 
given to use of water for domestic, municipal, and agricultural purposes. If potential 
5 
negative impact on other water users is identified, the water permit shall not be 
6 
granted. For water resources within the ancestral domain of indigenous peoples, no 
7 
water permit shall be granted by the National Water Resources Board without the free 
8 
and prior informed consent of indigenous peoples. 
9 
Section 127. Recyling of water resources. Water used in mining operations shall be 
10 
recycled. Mining contractors shall be required to provide for the methods or equipment 
11 
for the recycling or reuse of water. Released contaminated water shall be treated 
12 
accordingly to meet national standards. Released water must at least be equivalent in 
13 
quality to the baseline water quality. 
14 
Section 128. Water user fee. A water user fee that reflects the value of water to the 
15 
country and community shall be imposed by the Council for water used in mining 
16 
operations. Contractors shall pay the fee to the National Water Resources Board which 
17 
shall use the same for monitoring and improvement of the affected waterways and 
18 
systems and the mitigation of negative impacts thereon to ensure that communities 
19 
shall have access to clean water. 
C. Acid Mine Drainage 
20 
Section 129. Prohibition from using acid-generating waste rock to build roads or 
21 
dams. To prevent or mitigate acid mine drainage, there shall be a prohibition against 
22 
using acid-generating waste rock to build roads or dams or other infrastructures. The 
23 
use of such materials shall only be used after treatment to neutralize the effect of acid 
24 
mine drainage. 
25 
Section 130. Establishment of a prediction and monitoring system. The Bureau shall 
26 
establish a prediction and monitoring system to identify potential acid-producing 
27 
materials and monitor their production of acid waste. 
28 
Section 131. Avoidance of waterways. Open pits, waste rock piles and tailings 
29 
impoundments shall not be built near or on waterways to prevent contact and 
30 
subsequent acid production and groundwater contamination. 
31 
Section 132. Remining. Remining shall be prioritized over the opening of new mines to 
32 
maximize and recover the remaining minerals from the rejects or wastes of previous 
33 
mines and mining operations, Provided, That remining operations shall follow the 
34 
processes, standards, parameters and guidelines set for mining operations in this Act. 
39 


1 
Section 133. Suits after the tennination of contracts or projects. Recognizing that the 
2 
effects of mining may be seen or felt, actions relating to the health of affected 
3 
communities or peoples, environmental degradation and other similar effects may be 
4 
maintained against the project proponent and/or persons even after the mineral 
5 
agreement or mining project has terminated. 
CHAPTER XII. RESOLUTION OF CONFLICTS 
6 
Section 134. Panel of arbitrators. There shall be a panel of arbitrators in the regional 
7 
office of the Department composed of three (3) members, two (2) of whom must be 
8 
members of the Philippine Bar in good standing and one a licensed mining engineer or 
9 
a professional in a related field, and duly designated by the Secretary as recommended 
10 
by the Mines and Geosciences Bureau Director. Those deSignated as members of the 
11 
panel shall serve as such in addition to their work in the Department without receiving 
12. 
any additional compensation As much as practicable, said members shall come from the 
13 
different bureaus of the Department in the region. The presiding officer thereof shall be 
14 
selected by the drawing of lots. His tenure as presiding officer shall be on a yearly basis. 
15 
The members of the panel shall perform their duties and obligations in hearing and 
16 
deciding cases until their designation is withdrawn or revoked by the Secretary. Within 
17 
thirty (30) working days, after the submission of the case by the parties for decision, the 
18 
panel shall have exclusive and original jurisdiction to hear and decide on the following: 
19 
a) Questions involving compliance with the established technical guidelines and 
20 
standards herein established, or those to be established by the implementing 
21 
rules and regulations of this Act; 
2.2 
b) Questions involving the compliance with technical procedures herein 
23 
established, or those to be established by the implementing rules and regulations; 
24 
and, 
25 
c) Other similar instances wherein the technological and technical expertise of the 
26 
Department shall be needed. 
27 
Disputes involving real rights, contractual obligations and the other causes of action 
28 
that are outside the technological and technical expertise of the Panel of Arbitrators 
29 
shall be under the jurisdiction or the regular courts or as otherwise provided by other 
30 
special laws. 
31 
Provided, That disputes pending before the Bureau and the Department at the date of 
32 
the effectivity or this Act shall undergo an immediate review within sixty (60) working 
33 
days upon the passage of this Act to determine the cause of action. Those which are 
40 


1 
outside the technical expertise of the Department or Bureau shall be refiled with the 
2 
appropriate court, without costs to the complainant or petitioner. 
3 
Section 135. Appeal. The decision or order of the panel of arbitrators may be appealed 
4 
by the party not satisfied thereto to the Mines Adjudication Board within fifteen (15) 
5 
days from receipt thereof which must decide the case within thirty (30) days from 
6 
submission thereof for decision. 
7 
Section 136. Mines Adjudication Board (MAB). The Mines Adjudication Board shall be 
8 
composed of three (3) members. The Secretary of the DENR shall be the Chairperson 
9 
with the Director of the Mines and Geosciences Bureau and the Undersecretary for 
10 
Operations of the Department as members thereof. The Board shall have the following 
11 
powers and functions: 
12 
a) To promulgate rules and regulations governing the hearing and disposition of 
13 
cases before it, as well as those pertaining to its internal functions, and such rules 
14 
and regulations as may be necessary to carry out its functions; 
15 
b) To administer oaths, summon the parties to a controversy, Issue subpoenas 
16 
requiring the attendance and testimony of witnesses or the production of such 
17 
books, papers, contracts, records, statement of accounts, agreements, and other 
18 
documents as may be material to a just determination of the matter under 
19 
20 
investigation, and to testify in any investigation or hearing conducted in 
pursuance of this Act; 
21 
c) To conduct hearings on all matters within its jurisdiction, proceed to hear and 
22 
determine the disputes in the absence of any party thereto who has been 
23 
summoned or served with notice to appear, conduct its proceedings or any part 
24 
thereof in public or in private, adjourn its hearings at any time and place, refer 
25 
technical matters or accounts to an expert and to accept his report as evidence 
26 
after hearing of the parties upon due notice, direct parties to be joined in or 
27 
excluded from the proceedings, correct, amend, or waive any error, defect or 
28 
irregularity, whether in substance or in form, give all such directions as it may 
29 
deem necessary or expedient in the determination of the dispute before it, and 
30 
dismiss the mining dispute as part thereof, where it is trivial or where further 
31 
proceedings by the Board are not necessary or desirable: 
32 
d) To hold any person in contempt, directly or indirectly, and impose appropriate 
33 
penalties therefor; and 
34 
e) To enjoin any or all acts involving or arising from any case pending before it 
35 
which, if not restrained forthwith, may cause grave or irreparable damage to any 
36 
of the parties to the case or seriously affect social and economic stability. 
41 


1 
In any proceeding before the Board, the rules of evidence prevailing in courts of law or 
2 
equity shall not be controlling and it is the spirit and intention of this Act that shall 
3 
govern. The Board shall use every and all reasonable means to ascertain the facts in 
4 
each case speedily and objectively and without regard to technicalities of law or 
5 
procedure, all in the interest of due process and social justice. In any proceeding before 
6 
the Board, the parties may be represented by legal counsel. The findings of fact of the 
7 
Board shall be conclusive and binding on the parties and its decision or order shall be 
8 
final and executory. 
9 
A petition for review by certiorari and question of law may be filed by the aggrieved 
10 
party with the Supreme Court within thirty (30) days from receipt of the order or 
11 
decision of the Board. 
CHAPTER XIII. ACCESS TO JUSTICE 
12 
Section 137. Obligation to respect human rights. Corporations shall respect, protect 
13 
and promote the human rights of communities affected by mining, including the right 
14 
to life, liberty and property, freedom of movement, right of public participation and the 
15 
right to self-determination of indigenous cultural communities. 
16 
Section 138. Violations of human rights. Extrajudicial killing, torture, involuntary 
17 
disappearance, forcible displacement of populations, setting up of checkpoints, and 
18 
imposition of toll fees which impede the freedom of movement within mineral areas, 
19 
deprivation of food and water sources, vote-buying and bribery for the purpose of 
20 
securing consent or endorsement for the mining project, and other analogous acts are 
21 
violations of human rights. Violations of human rights by contractors shall cause the 
22 
immediate cancellation of mineral agreements. The offending contractor, as well as 
23 
corporations having the same directors and/or officers as of the offending contractor 
24 
shall be perpetually disqualified from being granted a mineral agreement. All 
25 
equipment and assets of the corporation or person shall be confiscated in favor of the 
26 
government. 
27 
Section 139. Use of paramilitary and military forces. All mining companies are strictly 
28 
prohibited from employing paramilitary groups. Use of private and military forces 
29 
shall result in the automatic cancellation of the mineral agreement and the filing of 
30 
appropriate civil, criminal and/or administrative charges. 
31 
Section 140. Strategic Legal Action Against Public Participation (SLAPP). SLAPPs 
32 
shall be strictly prohibited. 
SLAPP is any legal action, whether civil, criminal or 
33 
administrative, filed to harass, vex, exert legal action or stifle legal recourses of 
34 
community members complaining against violations of this Act or enforcing the 
42 


1 
provISIons of the Act, or exercising their freedom of assembly or right of public 
2 
participation. The investigating prosecutor or court shall immediately determine within 
3 
a period of thirty (30) days from filing thereof whether a legal action is a SLAPP and 
4 
accordingly dismiss the same. 
5 
Section 141. Indigents' suit. Indigents shall be exempt from payment of any 
6 
administrative or court fees, including docket fees for the filing of a case. Lawyers shall 
7 
be provided by the Public Attorney's Office to pauper litigants in case they could not 
8 
afford legal services. 
9 
Section 142. Application of the customary laws of ICCs/IPs. The contractor shall 
10 
respect the customary laws of the ICes/IPs and shall submit to the processes of their 
11 
customary laws, Provided, That these laws are not contrary to the provisions of the 
12 
Constitution. 
13 
Section 143. Strict liability. Mining corporations are strictly liable for all damages that 
14 
the mining operations might cause. In case of any actual damage, the burden of proof 
15 
shall lie with the corporations. 
16 
Section 144. Piercing the corporate veil. When the separate personality of the 
17 
corporation from its shareholders is being invoked as defense in order to perpetuate a 
18 
crime, fraud or other machinations, or evade liability, the separate personality of the 
19 
corporation shall be set aside. Civil, criminal and administrative actions may thus be 
20 
filed directly against the members of the Board of Directors, officers and/or individual 
21 
stockholders. 
22 
Section 145. Citizen suits. For the purpose of enforcing the provisions of this Act or its 
23 
implementing rules and regulations, any citizen may file appropriate civil, criminal and 
24 
administrative suits against any of the following: 
25 
a) Any person who violates or fails to comply with the provisions of this Act or its 
26 
implementing rules and regulations; 
27 
b) Any public officer with respect to orders, rules and regulations inconsistent with 
28 
this Act; 
29 
c) Any public officer who willfully 01' grossly neglects the performance of an act 
30 
specifically enjoined as a duty by this Act or its rules and regulations; or abuses 
31 
the authority in the performance of a duty/ies under this Act or its implementing 
32 
rules and regulations. 
33 
The court shall exempt such action from the payment of filing fees, except fees for 
34 
actions not capable of pecuniary estimation, and shall likewise, upon prima facie 
35 
showing of non-enforcement or violation complained of, exempt the plaintiff from filing 
36 
an injunction bond for the issuance of a preliminary injunction. 
43 


1 
The court shall determine whether or not the complaint is malicious or baseless and 
2 
shall accordingly dismiss the petition within thirty (30) days upon the tiling of the case. 
CHAPTER XIV. PENAL PROVISIONS 
3 
Section 146. Grounds for the cancellation of mineral agreements and permits: 
4 
a) Violation of any provision of this Act; 
5 
b) Human rights violations perpetrated by the contractor or any agent of the 
6 
contractor; 
7 
c) Non-payment of taxes; 
8 
d) Bribery, use of force, intimidation, threat, coercion of public officials and 
9 
communities; 
10 
e) Any act that shall create or contribute to conflicts; 
11 
f) Other analogous acts. 
12 
Provided, that, violations of environmental provisions shall cause the immediate 
13 
cancellation of mining permits, and the contractor shall be required to pay for the 
14 
rehabilitation, restoration or clean up of the impacts of such violations. 
15 
Corporations, corporate directors/officers found guilty of the above enumeration may 
16 
be subjected to a perpetual ban in the mining operations in the Philippines. 
17 
Section 147. False statements. Any person who knowingly presents any false 
18 
application, declaration, or evidence to the Government or publishes or causes to be 
19 
published any prospectus or other information containing any false statement relating 
20 
to mines, mining operations or mineral agreements and permits shall, upon conviction, 
21 
be penalized by a fine of not exceeding One Hundred Thousand pesos (PlOO,OOO.OO). 
22 
Section 148. Illegal exploration. Any person undertaking exploration work without the 
23 
necessary exploration permit shall, upon conviction, be penalized by a fine of not 
24 
exceeding Five Million pesos (P5,000,000.00). 
25 
Section 149. Panning. Panning shall be considered an act of mining. Any person 
26 
undertaking panning without the necessary mining permit shall upon conviction, be 
27 
convicted of illegal panning penalized under section 27 (RA 7076). In addition, such 
28 
person shall be liable to pay damages made to the environment by reason of such 
29 
panning. In the case of associations, partnerships, or corporations, the president and 
44 


1 
each of the directors thereof shall be responsible for the acts committed by such 
2 
association, corporation, or partnership. 
3 
Section 150. Theft of minerals. Any person extracting minerals and disposing the same 
4 
without a mining agreement, lease, permit, license, or steals minerals or ores or the 
5 
products thereof from mines or mills or processing plants shall, upon conviction, be 
6 
imprisoned from six (6) months to six (6) years or pay a fine from One Hundred 
7 
thousand pesos (P100,OOO.OO) to One Million pesos (P1,OOO,OOO.OO) or both, at the 
8 
discretion of the appropriate court. In addition, he shall be liable to pay damages and 
9 
compensation for the minerals removed, extracted, and disposed of. In the case of 
10 
associations, partnerships, or corporations, the president and each of the directors 
11 
thereof shall be responsible for the acts committed by such association, corporation, or 
12 
partnership. 
13 
Section 151. Unauthorized dealing, selling, andlor buying of gold. Any person, 
14 
partnership or corporation who shall sell, buy or in any manner deal gold from any 
15 
miner or person without being duly authorized by the Bangko Sentral ng Pilipinas shall 
16 
be punished as unauthorized dealing and shall be penalized in accordance with the 
17 
provisions in this Act. 
18 
Section 152. Destruction of mining structures. Any person who willfully destroys or 
19 
damages structures in or on the mining area or on the mill sites shall, upon conviction, 
20 
be imprisoned for a period not to exceed five (5) years and shall, in addition, pay 
21 
compensation for the damages which may have been caused thereby. 
22 
Section 153. Mines arson. Any person who willfully sets fire to any mineral stockpile, 
23 
mine or workings, fittings or a mine, shall be guilty of arson and shall be punished, 
24 
upon conviction, by the appropriate court in accordance with the provisions of the 
25 
Revised Penal Code and shall, in addition, pay compensation for the damages caused 
26 
hereby. 
27 
Section 154. Willful damage to a mine. Any person who willfully damages a mine, 
28 
unlawfully causes water to run into a mine, obstructs any shaft or passage to a mine, 
29 
renders useless, damages or destroys any machine, appliance, apparatus, rope, chain, 
30 
tackle, or any other things used in a mine, shall be punished, upon conviction, by the 
31 
appropriate court, by imprisonment not exceeding a period of five (5) years and shall, in 
32 
addition, pay compensation for the damages caused thereby. 
33 
Section 155. Illegal obstruction to permittees or contractors. Any person who, without 
34 
justifiable cause, prevents or obstructs the holder of any permit, agreement or lease 
35 
from undertaking his mining operations shall be punished, upon conviction by the 
36 
appropriate court, by a fine not exceeding Five thousand pesos (PS,OOO.OO). 
37 
Section 156. Vitiation of FPIC. Any person found to have vitiated the consent of the 
38 
ICCs/IPs through bribery, threat, force, and/or intimidation, or any other similar means, 
45 


1 
shall suffer the penalty of six (6) years and one (1) day to ten (10) years in prison, and a 
2 
fine of at least two million pesos (Php 2,000,000.00). If the perpetrator is a government 
3 
official, the penalty shall be eight (8) years and one (1) day to twelve (12) years 
4 
imprisonment, and a fine of at least four (4) miliion pesos (Php 4,000,000.00). He/she 
5 
shall be perpetually prohibited from assuming public office, and shall be disqualified 
6 
from receiving other benefits by virtue of his/her position in government. 
7 
Section 157. Penalty for human rights violations. Contractors or other persons who 
8 
have violated the human rights of communities in connection with the mining 
9 
operations shall be penalized with ten (10) years to fourteen (14) years imprisonment 
10 
and a fine of at least five million pesos (Php 5,000.000,00) and shall indemnify the 
11 
victims. 
12 
Section 158. Amendment to Section 27 of Republic Act No. 7076 or the Small-scale 
13 
Mining Act. Violations of the provisions of RA 7076 or of the rules and regulations 
14 
issued pursuant hereto shall be penalized with imprisonment of six years and 1 day to 
15 
12 years. The State shall confiscate and seize equipment, tools and instruments; effect 
16 
immediate suspension or closure of the mining activities of the permittee concerned, 
17 
and revoke the permit. 
18 
Section 159. Abandonment. Contractors and/or permittees who shall abandon mines 
19 
shall be perpetually banned or disqualified from condUcting mining operations, directly 
20 
or indirectly. The ban and/or disqualification shall include the officers and directors of 
21 
corporations that have abandoned mines. 
22 
Section 160. Confiscation of equipment and property. The equipment and property of 
23 
contractors and permit holders violating this Act shall be forfeited in favor of the 
24 
government. 
25 
Section 161. Non-application of the corporate veil. Any person violating the provisions 
26 
of Commonwealth Act No. 108, or the Anti-Dummy Law of the Philippines as 
27 
amended, or is found to have used the corporate structure to defeat the provisions of 
28 
this Act shall suffer the penalty of five million pesos (P5,000,000.00) and perpetual ban 
29 
in the mining industry. 
30 
Section 162. Reinstatement of revoked permits. After notice and hearing, revoked 
31 
permits that have undergone due process may be reinstated, Provided, That it may only 
32 
be reinstated once. 
46 


CHAPTER XV. TRANSITORY PROVISIONS. 
1 
Section 163. There shall be a moratorium on all mining activities until all the systems 
2 
are in place for the proper implementation of the law. 
3 
Section 164. All existing mining permits, licenses and agreements are hereby deemed 
4 
cancelled. Those mine workers and their families that may be displaced during the 
5 
transition period shall receive livelihood support and job placements to be facilitated by 
6 
the appropriate agencies of the State. 
7 
Section 165. The classification of public lands as mineral reservations pursuant to pre-
8 
existing laws shall hereby cease. All such lands shall be closed to mining unless opened 
9 
thereto in accordance with the provisions of this Act. The President's power to declare 
10 
mineral reservations shall henceforth cease to exist. 
A review of the current mineral 
11 
land classification shall be conducted to determine the best livelihood and economic 
12 
option for the said area. 
13 
Section 166. The members of the panels of arbitrators and the provincial or city mining 
14 
regulatory boards established under Republic Act No. 7942 shall hold-over their 
15 
positions until replaced in accordance with provisions of this Act. 
CHAPTER XVI. FINAL PROVISIONS 
16 
Section 167. Separability clause. The provisions of this Act are hereby declared to be 
17 
separable and, in the event of any such provisions are declared unconstitutional, the 
18 
other provisions which are not affected thereby shall remain in force and effect. 
19 
Section 168. Repealing clause. Republic Act 7942, Presidential Decree 463, Presidential 
20 
Decree 512, and other related mining laws are hereby repealed. All provisions in laws, 
21 
decrees, issuances and other regulations inconsistent with this present law shall be 
22 
deemed amended or repealed if the inconsistency is irreconcilable. 
23 
Section 169. Funds. The amount of One Hundred Billion Pesos (PhP 100,000,000,000.00) 
24 
is hereby appropriated for the proper functioning of the Bureau, the Council, and other 
25 
bodies established under this Act of which half of the said amount shall be allotted for 
26 
the baseline mineral exploration activities of the Bureau. 
27 
Section 170. Implementing rules and regulations. 
The implementing rules and 
28 
regulations of this Act shall be the product of joint collaboration by the Department, 
29 
and representatives from the local government units, peoples' organizations, sectoral 
47 


1 
organizations and non-governmental organizations, and shall be drawn up after 
2 
appropriate and exhaustive public consultations at all levels nationwide. 
3 
Section 171. Effectivity clause. This Act shall take effect within fifteen (15) days 
4 
following its publication in two national newspapers of general circulation in the 
5 
Philippines. 
6 
Approved, 
48