EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE 
S. No._1439
Senate
of tljr fercrrtnrf)
20
Introduced by Senator Grace Poe
RECEivlDB'.'
AN ACT
IMPROVING THE DISCLOSURE AND TRANSPARENCY OF THE EXTRACTIVE 
INDUSTRIES
Explanatory Note
The Philippines is known for its abundant minerals, oil and gas reserves and is 
estimated to possess about 21.5 billion metric tons of metal deposits, highest in 
Southeast Asia. The Philippines has potential deposits of petroleum of about 8.9 
billion barrel of oil equivalent (bboe) or a total of about 1 million square kilometers1. 
Mineral, oil and gas are finite resources, with a single opportunity to gain from its 
extraction.
Thus, ensuring that the Filipino people maximize benefits from it while 
minimizing losses is essential. Proper management of these resources may 
contribute to economic growth and social development. In contrast, if left 
unimpeded, it may cause permanent environmental damage and create conflict 
within and among communities.
Communities have experienced adverse environmental and social impacts 
from mining: fish kill in Lake Mainit near the operation of Greenstone Resources 
Corporation2; breaching of Philex Padcal Mine tailings pond in Itogon, Benguet, 
releasing over 20 million metric tons of sediments and toxic materials into water 
channels in August 20123; incidents of mine collapse in Semirara Mining and Power 
Corporation's Painan pit in 2013 and 2015 costing the lives of over a dozen
1 Data from the Philippine Extractive Industries Transparency Initiative Report 2014.
2 http://www.mindanews.com/top-stories/2015/12/15/mayor-threatens-to-close-mining-firm-if-found- 
responsible-for-fish-kill-in-lake-
mainit/?utm_campaign=shareaholic&utm_medium=facebook&utm_source=socialnetwork.
3 https://ejatlas.org/conflict/philex-padcal-mining-disaster-benguet-philippines.


workers4; landslide and destruction of homes in Itogon, Benguet forcing the Mines 
and Geoscience Bureau (MGB) to review the mining areas in 20165; the killing and 
displacement of Lumads in Mindanao because of development aggression6; and the 
proven water, air, and soii poilution, and siitation in Zambales and Pangasinan 
caused by five mining firms as decided in a Supreme Court case where a Writ of 
Kalikasan was issued.7
In 2015, the Caraga Region was host to 21 of 40 operating large-scale 
metallic mines8. Based on the Fourth PH-EITI Annual Report, a reconciled amount of 
Phpl86 million9 was collected in taxes and fees by local government units in the 
region from the 12 mining entities in Caraga that participated in PH-EUI10. 
Coilections from national wealth including mining taxes11 and proceeds from mineral 
resources12 for the same period was at Phpl62 million. Current policies mandate 
social and environmental expenditures for the development of mining communities, 
and for the protection and enhancement of impacted areas. A total of Php980 million 
was declared as mandatory expenditures in 2015. In addition, operating large-scale 
metallic mining companies in the Caraga Region employed about 13,80013 individuals 
during the period. Despite the mandatory payments, programs, and individuals 
employed, development in the area is slow. Per 2015 Philippine Statistics Authority, 
the Caraga Region has a poverty incidence of 39.1%, weli above the national 
poverty level of 21.6%14.
Minerals, coal, petroleum, gas, and other mineral oils are owned by the 
State15 on behalf of Its citizens. As such, management of these resources are of 
public concern.
The Extractive Industries Transparency Initiative (EITI) is an international 
standard of open and accountable governance in mining, oil, and gas sectors16. The
4 http://www.gmanetwork.eom/news/news/regions/524006/ocd-9-workers-dead-after-semirara- 
mining-mishap/story/.
5 http://www.sunstar.com.ph/baguio/local-news/2016/01/05/geologists-cordillera-mull-review-mining- 
areas-450153.
6 http://www.abs-cbnnews.com/blogs/opinions/ll/09/15/on-eve-of-apec-summit-ph-leaders-ignore- 
cost-of-development-on-social-margins.
7 http://www.sunstar.com.ph/manila/local-news/2016/06/21/sc-issues-writ-kalikasan-vs-5-mining- 
firms-480726.
8 Fourth Ph-Em Report, p. 35-36.
9Fourth Ph-Em Report, p. 345. Locally collected taxes and fees include local business tax, real 
property tax and special education funds, among others.
10 Fourth Ph-Em Report, p. 438.
11 Fourth Ph-Em Report, p. 357.
12 Fourth Ph-Em Report, p.363.
13 Fourth Ph-Em Report, p. 114-117.
14 https://psa.gov.ph/poverty-press-releases/data - Table 2
15 Article XII, Section 2 of the 1987 Constitution.
16 https://eiti.org/who-we-are


Philippines expressed its commitment to participate in EUI through Executive Order 
No. 79 S. 201217. Further, the Philippines, as one of the founding countries of the 
Open Government Partnership (OGP), aims to increase access to information, public 
accountability, and civic participation. EUI compliance is one of the country's 
commitments to the OGP.
Moreover, EUI fulfills the people's constitutional right to information under 
Section 7, Article III of the 1987 Constitution. Composed of representatives from 
government, extractive companies, and civil society organizations, the EUI provides 
a platform for the regular and systematic reporting, review, and assessment of 
information concerning the industry. It also strengthens multi-sectoral participation 
in extractives governance.
Transparency is a cornerstone of governance. This bill aims to ensure 
sustained transparency in the extractive industries. In so doing, government 
commits to disclose timely, complete, and accurate information and documents 
pertinent to resource extraction to enable evidence-based management. Further, it 
intends to continue producing the PH-EUl Annual Report. To date, the Philippines 
has published four Annual Reports. The said Reports contain information on fees, 
taxes, and other mandatory payments made by mining, oil, and gas companies. The 
Report may be expanded to extensively discuss social and environmental costs and 
benefits. Moreover, it may also be extended to reflect economic linkages. With 
access to such information, citizens are empowered to meaningfully participate in 
resource management.
In the wake of fiscal rationalization, monitoring the impact of taxes and 
incentives to assess if they meet their set objectives is key. Institutionalizing PH-EUI 
is therefore urgently needed. The passage of this bill is earnestly sought.
^ a GRACE POE
17 Section 14, Executive Order No. 79, s. 2012.


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
^eutife
o( tl)c feu-trrtnr^)
SENATE
S. No. 1489
20 MAY “4
Introduced by Senator Grace Poe
AN ACT
IMPROVING THE DISCLOSURE AND TRANSPARENCY OF THE EXTRACTIVE 
INDUSTRIES
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled.
1 
Section 1. Title. - This Act shail be known as the "Open Extractives Data Act."
2 
Sec. 2. Declaration of Policy. - Under Section 7, Articie III of the Phiiippine
3 
Constitution, the right of the peopie to information on matters of public concern shall
4 
be recognized - access to official records, and to documents, and papers pertaining
5 
to official acts, transactions, or decisions shall be afforded the citizen. Accordingly,
6 
the following are declared policies of the State:
7 
a. The State shall adopt and implement a policy of full public disclosure of all
8 
its transactions involving public interest.
9 
b. All natural resources are owned by Filipinos represented by the State. The
10 
State shall be under the full control and supervision of the exploration,
11 
development, and utilization of natural resources.
12 
c. The State shall be responsible for promoting the rational exploration,
13 
development, utilization, and conservation of the country's mineral
14 
resources through the combined efforts of government and the private
15 
sector in order to enhance national growth in a way that effectively
16 
safeguards the environment and protects the rights of affected
17 
communities
18 
d. The State shall protect and advance the right of the people to a balanced
19 
and healthful ecology in accord with the rhythm and harmony of nature.


1 
Sec. 3. Objectives. - In pursuit of Section 28, Articie II of the Phiiippine
2 
Constitution, this Act shall have the following objectives:
3 
a. To ensure sustained Philippine government's commitment to participate in
4 
the Extractive Industries Transparency Initiative (EITI) that sets
5 
international standards for transparency and accountability in the
6 
extractive industries and in government;
7 
b. To promote better understanding of the public on the nature of extractive
8 
industries and the benefits of transparent and accountable governance of
9 
our natural resources;
10 
c. To promote genuine participation of civil society in the design,
11 
implementation, evaluation and modification of policies and actions of the
12 
Government associated with resource governance in the Philippines;
13 
d. To require all entities engaged in the extraction of natural resources to
14 
participate in such initiative;
15 
e. To ensure that the initiative is effectively integrated in other related
16 
government reform agenda and make the information required by EITI
17 
available and accessible through government reporting 
systems and
18 
structures; and
19 
f. To ensure material information is disclosed and payments are reconciled.
20 
Sec. 4. Definition of Terms. - For purposes of this Act, the following terms
21 
shall be defined as follows:
22 
a. Beneficial owner refers to the natural person/s who directly or indirectly
23 
ultimately owns or controls the corporate entity.
24 
b. Contract refers to an agreement between the Government and a
25 
contractor for the exploration, development, production and utilization of
26 
natural resources for commercial and other uses as authorized by law.
27 
c. Contractor refers to a qualified person acting alone or in consortium who
28 
is a party to a contract as defined under this Act.
29 
d. Extractive Industries refer to the mining, oil, gas, and coal sectors and all
30 
other sectors that require the extraction of natural 
resources for
31 
commercial and other uses;
32 
Sec. 5. Institutionalization of the PH-ETTL - The Philippine Extractive


1 
Industries Transparency Initiative (hereinafter referred to as PH-EITI) is hereby
2 
institutionaiized to ensure that ail of what is due to the Fiiipino people and the
3 
Government on account of the exploration, deveiopment, production and utilization
4 
of natural resources are (a) verifiably paid; (b) duly accounted for; and (c)
5 
judiciously utilized for the benefit of ali Fiiipinos and on the basis of intergenerationai
6 
equity and sustainabiiity.
7 
Sec. 6. Applicability and Coverage. - For the purposes of this Act, the
8 
foliowing sectors shall be covered by and within the scope of the PH-EITI: (a) the
9 
mining sector; (b) the oii and gas sector; (c) the coai sector; and (d) such other
10 
sectors as may be determined by the PH-EITI Multi Stakeholder Group, as defined in
11 
the succeeding section.
12 
Sec. 7. Composition of the PH-EUI Muiti Stakeholder Group. -The PH-EITI
13 
shall be implemented and operationalized through the Muiti-Stakeholder Group
14 
(MSG) chaired by the Secretary of the Department of Finance (DOF) and co-chaired
15 
in rotation and by fixed term of the Secretary of the Department of Environment and
16 
Naturai Resources (DENR) and the Secretary of Department of Energy (DOE).
17 
It shail specificaily consist of the foiiowing members:
18 
a. Six (6) Government Representatives from the DOF, DOE, DENR
19 
Environmental Management Bureau, DENR Mines and Geosciences
20 
Bureau), Department of Interior and Local Government (DILG),
21 
National Commission on Indigenous Peoples (NCIP).
22 
b. Six (6) Business Group Representatives which shali inciude, but not be
23 
limited to, a representative from the mineral industry, from the oil and
24 
gas sector, from the coal sector, and other sectors as may be
25 
determined by the PH-EITI MSG; and
26 
c. Six (6) Civii Society Organizations (CSOs) Representatives, which must
27 
include at least one indigenous peoples (IP) representative and one (1)
28 
a Labor Union Representative in the extractive industries.
29 
The Business Group and the CSOs shall each designate six (6) fuil and six (6)
30 
alternate representatives to the PH-EITI-MSG. Each organization, upon the decision
31 
of its members and through its own independent processes and governance
32 
mechanisms, can at any time replace their representatives in the PH-EITI-


1 
MSG; Provided that such replacement shall only serve for the unexpired term of the
2 
representative replaced. Permanent and alternate members shall attend and
3 
participate in the PH-EITI-MSG meetings.
4 
Sec. 8. Powers and Functions of the PH-EITI MSG. - The PH-Em-MSG shail
5 
have the foliowing powers and functions:
6 
a. Define the strategic direction and scope of EITI in the Philippines;
7 
b. Craft, pubiish, review, and update a work pian in consultation with key
8 
PH-Em stakeholders and oversee the implementation of the same;
9 
c. Procure the services of an independent administrator to perform
10 
reconciliation of payments and mandatory expenditures with receipts
11 
by government and other covered entities, applying international
12 
auditing and professionai standards;
13 
d. Require relevant government agencies to disclose to the PH-Em MSG
14 
all information required by it for the production of regular and annual
15 
reports;
16 
e. Produce all regular reports with contextual information about the
17 
extractive industries as may be required by PH-Em implementation;
18 
f. Direct and supervise the PH-Em Secretariat in its various activities and
19 
establish its internai rules of procedure;
20 
g. Conduct outreach activities and road shows to promote better public
21 
understanding of the extractive industries and the benefits of
22 
transparent and accountable governance of our natural resources;
23 
h. Identify discrepancies and undertake measures to enhance capacity of
24 
any relevant organ of the Government or local government authority
25 
having statutory responsibility to monitor revenues and payments by
26 
all extractive industry companies to the Government; and
27 
i. Perform such other functions as may be germane to the purpose for
28 
which it was created and consistent with this Order and the Em
29 
Principles.
30 
Sec. 9. PH-Em Secretariat - The PH-Em shall be assisted by a PH-Em
31 
Secretariat whose composition shall be determined by the Secretary of Finance, in
32 
consultation with the PH-Em-MSG.


1 
The PH-EUI Secretariat shall be composed of administrative and technical
2 
personnel as the PH-Em-MSG may deem necessary to assist the PH-Em-MSG in
3 
efficiently and effectively carrying out its powers and functions. The creation of
4 
plantilla positions and hiring of personnel to carry out the functions enumerated
5 
herein shall be authorized in coordination with, and subject to the approval of the
6 
Department of Budget and Management (DBM).
7 
Sec. 10. Disclosure of Materia! Information and Reconciliation of Payments. -
8 
Disclosure shall adhere to the open data principles. All contractors shall disclose all
9 
fiscal payments and mandatory expenditures while all government and concerned
10 
entities shall disclose complete, timely and accurate information on receipts to the
11 
PH-EITI MSG for reconciliation for the production of the annual Em report.
12 
Utilization of shares in national wealth which are subject of special accounts shall be
13 
reported to PH-Em. It shall be published in the government website and any widely
14 
accessible media, among others.
15 
Sec. 11. Disaggregation of Shares from the National Wealth by Sector. - Local
16 
government units shall report the direct and non-direct payments made by extractive
17 
industries, and shall provide a detailed expenditure report against these collections
18 
and receipts through the Environment and Natural Resources Data Management
19 
Tool (ENRDMT). The report shall include the following:
20 
a) Receipts of shares from national wealth within the LGU's jurisdiction;
21 
b) Expenditures of LGUs coming from receipts/collections from the
22 
extractive industries and share from national wealth; and
23 
c) Such other monetary and non-monetary benefits received by LGUs
24 
from extractive industries and shared from national wealth.
25 
The reports shall be submitted quarterly. The ENRDMT data shall be uploaded by all
26 
concerned local treasurers of each respective local government units to the system
27 
on or before the following dates:
28 
i. For the first three quarterly reports: on or before the 30th month
29 
following the end of each quarter; and
30 
ii. For the year-end report: on or before April 30 of the subsequent
31 
fiscal year.


1 
Sec. 12. Annual Report. - The PH-EITI shall submit an annual report to the
2 
President and Congress, in any case not later than April 30 of each year.
3 
The annual report to be prepared, submitted and published by the PH-EITI shall
4 
include, but not limited to:
5 
a) Report of Payments and Revenues including government spending of these
6 
proceeds;
7 
b) Report and Audit of Contracts and Monitoring Reports;
8 
c) Civil society assessment of the Em Process.
9 
The annual report shall comply with the international standards of Em and include
10 
additional reporting requirements as agreed upon by the PH-Em MSG.
11 
Sec. 13. Beneficial Ownership. - A publicly available register of the beneficial
12 
owners of the corporate entities that apply for, or hold a participating interest in an
13 
exploration or production oil, gas or mining license or contract, including the
14 
identities of their beneficial owners, the level of ownership and details about how
15 
ownership or controi is exerted, shall be developed and maintained.
16 
Information about the identity of the beneficial owner should include, but not
17 
be limited to:
18 
a. Name of the beneficial owner;
19 
b. Nationality;
20 
c. Country of residence
21 
d. Tax Identity Number
22 
e. Date of birth
23 
f. Residential or service address
24 
g. Contact details
25 
Disclosed information on beneficial ownership should also be included in the Annual
26 
Report.
27 
Sec. 14. Penalties. - Non-participation in or non-disclosure of the information
28 
required by PH-Em shall constitute a breach or violation by extractive companies of
29 
their contracts as defined under this Act, and shall be meted the appropriate
30 
penalties, including suspension or termination of the contract.
31 
Failure of extractive companies to compiy with requirements provided by the
32 
PH-Em MSG shall cause suspension of the pertinent Environmental Compliance


1 
Certificate (ECC) and non-issuance of Ore Transport Permit and/or Mineral Export
2 
Permit.
3 
Failure of government agencies to comply with the requirements of this Act
4 
shall constitute grounds for disciplinary action against the responsible officer/s under
5 
the Administrative Code of 1987, and shall be penalized accordingly.
6 
Sec. 15. Transitory Provision. - The existing PH-Em Secretariat created
7 
under Executive Order No. 147, s. 2013 shall continue to operate until such time
8 
that the Secretariat has be constituted under the provisions of this Act.
9 
Sec. 16. Appropriations. - The Secretary of the Department of Finance shall
10 
immediately include in the department's program the implementation of this Act, the
11 
funding of which shall be included in the annual General Appropriations Act.
12 
Sec. 17. Exemption from Confidentiality Clauses. - Confidentiality provisions
13 
stated under the Section 270 of the National Internal Revenue Code and Article 81
14 
of the Omnibus Investments Code shall not be applicable to extractive companies
15 
insofar as their participation in the PH-Em process is concerned.
16 
Sec. 18. Implementing Rules and Regulations. - Within sixty (60) days from
17 
the effectivity of this Act, the Secretaries of Finance, Budget and Management,
18 
Environment and natural Resources, Interior and Local Government, and Energy
19 
shall promulgate the necessary rules and regulations for the effective
20 
implementation of this Act.
21 
Sec. 19. Separability Clause. - If any provision of this Act is declared
22 
unconstitutional or invalid, other parts or provisions hereof not affected thereby shall
23 
continue to be in full force and effect.
24 
Sec. 20. Repealing Clause. - All laws, decrees, executive orders, rules and
25 
regulations or parts thereof which are contrary to or inconsistent with this Act are
26 
hereby repealed, amended or modified accordingly: Provided, that nothing in this Act
27 
shall be construed as a diminution of local autonomy or in derogation of ancestral
28 
domain rights under the Indigenous Peoples' Rights Act of 1997.
29 
Sec. 21. Effectivity. - This Act shall take effect fifteen (15) days after its
30 
publication in the Official Gazette or in any newspaper of general circulation.
Approved,