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Republic of the Philippines {

House of Representatives ema

Quezon City, Aleteo Manila ae Ppt

SIXTEENTH CONGRESS \
Second Regular Session

House Bill No,_ 4728

Introduced by Honorable ERLPE JOHN “PING” M. AMANTE

EXPLANATORY NOTE

This Bill seeks to amend certain provisions of Republic Act No, 7942 otherwise
known as the Philippine Mining Act of 1995 particularly on the mandatory domestic
processing of mineral ores.

‘The Philippines is endowed with rich natural resources which includes among,
others rich mineral reserve which is a big potential to the growing sector of mining
industry. The country’s estimated mineral reserves are placed at about 14.5 Billion
Metric tons of metallic minerals and about 67.6 Billion Metric tons of non-metallic
minerals which are estimated to be One Trillion Dollar industry. The Philippines is said
to be the Fifth richest country in mineral reserves.

‘This measure will impose a complete ban on the export of unprocessed mineral
ores to encourage the growth and develop the capability of mineral processing industry
in the country.

Among the positive attributes and significant contribution of this measure is the
increase in the domestic revenue which will be a big impact the economic growth of the
country. It will encourage investments mainly on the mineral processing sector which in
turn creates and offers more jobs and provides increase in the domestic revenues
through taxes and duties.

‘The establishment of mineral processing plants is also seen to be one of the major
drivers towards economic growth because the transformation of the extracted primary
mineral or the mineral ores to a higher quality and quantity of the processed minerals
will result to the value-adding of the minerals, Value-adding approach in mineral
processing refers to the enhancement of the quality and quantity of the minerals through
different stages and ranges of processing activity, thus, stabilization and increase in
prices of the output is expected.

In view of the foregoing, the approval of this Bill is earnestly sought.

EREPE “PING” M. AMANTE


Repl ofthe Bhp
House of Representatives
Qurxon Gity, Meten Manila

SIXTEENTH CONGRESS
Second Regular Session

House Billo, 4728

Introduced by Honorable ERLPE JOHN “PING” M. AMANTE.

AN ACT
PROVIDING FOR THE MANDATORY DOMESTIC PROCESSING OF ALL
MINERAL ORES, AMENDING FOR THE PURPOSE REPUBLIC ACT NO.
7942 OTHERWISE KNOWN AS THE PHILIPPINE MINING ACT OF 1995
AND FOR OTHER PURPOSES.

Be it enacted by the Senate and the House of Representatives in session

assembled:

Section 1. Section 3 (y] of Republic Act No 7942 otherwise known as “The
Philippine Mining Act of 1995” is hereby amended to read as follows:

(y) MINERAL PROCESSING MEANS (the milling, beneficiation or upgrading of
ores or minerals and rocks or by similar means to convert the same into
marketable products.) THE PROCESS OF SEPARATING COMMERCIALLY
VALUABLE MINERALS FROM THEIR MINERAL ORES.

Section 2. Section 53 of Republic Act No 7942 otherwise known as “The
Philippine Mining Act of 1995” is hereby amended to read as follows:

Section 53
Ore Transport Permit

A permit specifying the origin AND DESTINATION WITHIN THE
PHILIPPINES and quantity of non-processed mineral ores or mineral all
be required for their transport. Transport permits shall be issued by the
mines regional director who has jurisdiction over the area where the ores
were extracted. In the case of mineral ores or minerals being transported
from the small-scale mining areas to the custom mills or processing plants,
the Provincial Mining Regulatory Board (PMRB) concerned shall formulate
their own policies to govern such transport of ores produced by small-scale



miners. The absence of a permit shall be considered as prima facie evidence
of illegal mining and shall be sufficient cause for the Government to
confiscate the ores or minerals being transported, the tools and equipment
utilized, and the vehicle containing the same. Ore samples not exceeding
two metric tons (2 m.t) to be used exclusively for assay or pilot test
purposes shall be exempted from such requirement.

Section 3. Section 55 of Republic Act No 7942 otherwise known as “The
Philippine Mining Act of 1995” is hereby amended to read as follows:

Section 55
Minerals Processing and Minerals Processing Permit

ANY MINERAL ORES EXTRACTED UNDER THE PROVISIONS OF THIS
ACT SHALL BE PROCESSED WITHIN THE COUNTRY. NO PERSON
GRANTED WITH PERMIT FOR PURPOSES OF MINING OPERATION
SHALL BE ALLOWED TO EXPORT, THE UNPROCESSED MINERAL ORES
TO OTHER COUNTRY FOR PURPOSES OF TRADING OF MINERAL
PRODUCTS.

ANY PERSON EXPORTING THE UNPROCESSED MINERAL ORES SHALL,
UPON CONVICTION, BE IMPRISONED FROM SIX (6) YEARS AND ONE (1)
DAY TO TWELVE (12) YEARS AND PAY THE FINE AMOUNTING TO
TWICE THE VALUE OF THE SIEZED MINERAL ORES. IN ADDITION, THE
CARGO CONTAINING THE UNPROCESSED MINERAL ORES SHALL BE
CONFISCATED IN FAVOR OF THE STATE. IN THE CASE OF
ASSOCIATIONS, PARTNERSHIPS, OR CORPORATIONS, THE PRESIDENT
AND EACH OF THE DIRECTORS IN CASE OF ASSOCIATIONS AND
CORPORATIONS AND ALL PARTNERS IN CASE OF PARTNERSHIPS,
SHALL BE RESPONSIBLE FOR THE ACTS COMMITTED BY SUCH
ASSOCIATION, PARTNERSHIP, OR CORPORATION.

No person shall engage in the processing of minerals without first securing a
minerals processing permit from the Secretary. Minerals processing permit
shall be for a period of five (5) years renewable for like periods but not to
exceed a total term of twenty-five (25) years. In the case of mineral ores or
minerals produced by the small-scale miners, the processing thereof as well
as the licensing of their custom mills, or processing plants shall continue to
be governed by the provisions of Republic Act No. 7076.

Section 4. Implementing Rules and Regulations. For purposes of the
implementation of this Act, the Secretary of the Department of Environment
and Natural Resources shall issue such rules and regulations necessary for
the effective implementation of this Act.

Section 5. Repealing Clause - All other laws, decrees, orders,
issuances and rules and regulations or parts thereof inconsistent with this
Act, are hereby repealed or modified accordingly.


Section 6. Separability Clause - All other provisions of Republic Act
No 7942 otherwise known as “The Philippine Mining Act of 1995” not
otherwise affected by the provisions of this Act shall remain in full force and
effect.

Section 7. Bffectivity Clause - This Act shall take effect fifteen (15)
days after its publication in at least two (2) national newspapers of general
circulation.

Approved,