bce cama

Quezon City, Metro Manila
Eighteenth Congress
First Regular Session

HOUSE BILL NO. °321

ep. Jose
EXPLANATORY NOTE

The Philippines, being the second country in the world with the
longest coastline, is one of the major sources of black sand which is
being exported to other countries in its raw form.

Magnetite, which is extracted from black sand, is one of the most
economically important iron ores. Because of its high iron content,
magnetic iron ore deposits are highly prized. The iron from magnetite
is the source ore utilized to create steel used in modern infrastructure.
Magnetite is also used to make high density concrete in nuclear
reactors, not to mention an important material component of power
plants as it is used to generate electricity.

The many industrial uses for the materials produced from black
sand mining results in a massive international demand, which in turn
results into high profits for those engaged in black sand mining. While
black sand mining per se is not illegal, unscrupulous companies had
taken advantage of the laxity by which permits are issued that the
Mining Industry Coordinating Council (MICC) had issued Resolution
No. 4 or the “Adoption of Immediate Measures to Address Black Sand
Mining Operations in the Country."

The Philippines, being one of the fastest developing countries in
the region, is at the receiving end by losing billions of dollars from our
importation of processed products needed for our continuous
industrialization, not to mention the current administrations “build,
build, build” initiative. The importation of these processed products


are very costly, while the raw materials used for these products were
exported from our country at a very cheap price.

The country is also losing potential revenues as these expensive
processed products could have been processed locally, generating jobs
in the locality from where they are mined, not to mention lowering the
price for these high-value products as we would no longer need to
import the same.

This bill proposes to prohibit the exportation of black sand in its
raw form and to require all black sand mining companies either
individually or collectively, to institute, build, or lease advanced
processing plants for magnetite within the province where they are
conducting actual mining operations of magnetite. The processed
magnetite may now be allowed to be exported out of the country.

In view of the foregoing, the immediate passage of this bill is
earnestly sought.

Noose TO” C. SINGSON JR.

Probinsyano Ako Party List


Quezon City, Metro Manila
Eighteenth Congress
First Regular Session

HOUSE BILL NO, °321

Introduced by Rep. Jose “Bonito” C. gson, Jr.

AN ACT PROHIBITING THE EXPORTATION OF BLACK SAND
AND ITS DERIVATIVES IN ITS RAW FORM TO OTHER
COUNTRIES

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

Sec. 1 Title. - This act shall be known as the “Black Sand Processing Act
of 2020”

Sec. 2. Declaration of State Policy.- Article 12, Section 2 of the 1987
Philippine Constitution states that “All lands of the public domain,
waters, minerals, coal, petroleum, and other mineral oils, all forces of
potential energy, fisheries, forests or timber, wildlife, flora and fauna, and
other natural resources are owned by the State. With the exception of
agricultural lands, all other natural resources shall not be alienated. The
exploration, development, and utilization of natural resources shall be
under the full control and supervision of the State.”

Sec. 3 Definition of Terms. - As used in this Act

a.) “Advance Processing” refers to the processing of magnetite into
any processed product as a result of any advanced and/or complex
physical or chemical transformation process.

b.) “Black Sand” Dark sand containing small fragments of magnetite
usually found as part of a geological deposit.

c.) “Initial Processing” refers to the process of separating magnetite
from the black sand raw material with the use of a magnetic
separator.

d.) | “Magnetite” a rock mineral and an oxide of iron that is attracted to
magnet and can be magnetized to become a permanent magnet
itself.


e.) “Mining Companies” private domestic corporations duly
registered under the laws of the Republic of the Philippines,
holding valid and existing mineral production sharing agreement
(MPSA), engaged in actual mining operations/activities of Black
Sand.

f.) “Processing Plant” facility where black sand is processed from raw
material into iron or steel products as well as other valuable
processed product.

g.) “Processed Product” Any magnetite-based products other than
iron and steel product that are produced by advanced processing
such as but not limited to its uses for magnets, power plants,
navigation devices, abrasives, toners, paints, dyes, etc.

h.) “Raw Material” Black Sand extracted from mining activities prior
to its processing into iron or steel products and other valuable
processed product.

i) “Trading Companies” domestic or foreign private entities duly
registered in accordance with Philippine laws engaged in the
business of trading black sand and its derivatives from mining
companies.

Sec. 4 Prohibition on Exportation - The exportation of black sand and its

derivatives in its raw form to other countries is prohibited under this act.

Black sand mining/ trading entities may only export processed products

or raw materials that have undergone advanced processing.

Sec. 5 Establishment of Advanced Processing Plants - mining
companies and trading companies are required to bring mined black
sand and its derivatives in its raw form for initial or advanced processing
in processing establishments operating within the Philippines with
preference to processing establishments found within the region where
such raw materials were mined. Such entities involved in the mining and
trading of black sand and its derivatives are not precluded from owning
or leasing such processing plants duly established in accordance with
Philippine laws.

Sec. 6 Implementing Rules and Regulation - The Implementing Rules
and Regulation for this act shall be promulgated by a joint committee
comprised of representatives from the Department of Environment and


Natural Resources (DENR) and the Department of Trade and Industry
(DTI)

Sec. 7 Penal Provision - Any individual or Entity who violates any
provision of this act shall suffer imprisonment of not less than six (6)
years and a fine of not less than Five Million Pesos (P5,000,000.00)

Sec. 8 Seizure and Confiscation - In cases of seizures and confiscation,
Section 3 Paragraph (f) of Presidential Decree 1281 shall apply.

Sec. 9 Repealing Clause - All laws, decrees, orders, rules and regulations
or other issuances or parts thereof inconsistent with the provisions of this
Act are hereby repealed and modified accordingly.

Sec. 10 Separability Clause - If any clause, sentence, paragraph or part
of this Act shall be adjudged by any court of competent jurisdiction to be
invalid, such judgement shall not affect, impair or invalidate the
remainder of this act, but shall be confined in its operation to the clause,
sentence, paragraph or part thereof directly involved.

Sec. 11 Effectivity - This act shall take effect fifteen (15) days following
the completion of its publication either in the official gazette or in a
newspaper of general circulation in the Philippines.

Approved.