HIGHLIGHTS OF THE MINING ACT OF 1995 (RA 7942)

AND ITS REVISED IMPLEMENTING RULES AND REGULATIONS

The Philippine Mining Act of 1995 and its Revised Implementing Rules and
Regulations (RIRR) is considered in the industry today as one of the most
socially and environmentallysensitive legislations in its class! It has speci"c
provisions that ta#e into consideration$
% &ocal government empo'erment(
% Respect and concern for the indigenous cultural communities(
% )*uita+le sharing of +ene"ts of natural 'ealth(
% )conomic demands of present generation 'hile providing the
necessary foundation for future generations(
% ,orld'ide trend to'ards glo+ali-ation( and
% Protection for and 'ise management of the environment!
These 'ere the products of long periods of assessment. evaluation. and
recti"cation of the sins of the past. the gaps of the old mining la'. and the
realities of the present times!
GOVERNING PRINCIPLES
The Implementing Rules and Regulations (/)0R Administrative 1rder 0o!92
34) of the Philippine Mining Act of 1995 provides strict adherence to the
principle of 565TAI0A7&) /)8)&1PM)0T! This strategy mandates that the
needs of the present should +e met 'ithout compromising the a+ility of the
future generations to meet their o'n needs. 'ith the vie' of improving the
*uality of life. +oth no' and in the future! 5ustaina+le development provides
that the use of mineral 'ealth shall +e propeople and proenvironment in
sustaining 'ealth creation and improve *uality of life!
The principles of 565TAI0A7&) MI0I09 operates under the follo'ing terms$
% Mining is a temporary land use for the creation of 'ealth. leading to
an optimum land use in postmining stage as conse*uence of
progressive and engineered mine reha+ilitation 'or#s done in cycle
'ith mining operations(
% Mining activities must al'ays +e guided +y current 7est Practices in
environmental management committed to reducing the impacts of mining
'hile e:ciently and e;ectively protecting the environment!
% The 'ealth created as a result of mining accruing to the 9overnment
and the community should lead to other 'ealthgenerating opportunities
for people in the communities and for other environmentresponsi+le
endeavors!
% Mining activities shall +e underta#en 'ith due and e*ual regard for
economic and environmental considerations. as 'ell as for health. safety.
social and cultural concerns!
% <onservation of minerals is e;ected not only through technological
e:ciencies of mining operations +ut also through the recycling of mineral
+ased products. to e;ectively lengthen the usa+le life of mineral
commodities!
% The granting of mining rights shall harmoni-e e=isting activities.
policies and programs of the 9overnment that directly or indirectly promote
selfreliance. development and resource management! Activities. policies
and programs that promote community+ased. community oriented and
procedural development shall +e encouraged. consistent 'ith the principles
of people empo'erment and grassroots development!
ORGANIZATIONAL IMPLEMENTATION
The Mining Act reverts +ac# the Mines and 9eosciences 7ureau (M97) from a
5ta; to a &ine 7ureau! 6nder this arrangement. the M97 <entral 1:ce has
no' the administrative >urisdiction and responsi+ility over its regional o:ces!
The &ine 7ureau structure 'as contemplated to ensure organi-ational
e:ciency and ?e=i+ility in managing limited resources and technical
e=pertise!
The authorities@responsi+ilities of the M97 are as follo's$
% Management and administration of mineral lands and resources. including
the granting of mining permits and mineral agreements(
% )nforcement and monitoring of )nvironmental ,or# Programs (),P) and
)nvironmental Protection and )nhancement Program ()P)P)(
% )sta+lishment and operationali-ation of the <ontingent &ia+ility and
Reha+ilitation Aund (<&RA). as 'ell as the mandatory Ainal Mine
Reha+ilitation and /ecommissioning Plan(
% <ancel mining applications and mining rights violating the provisions of the
Mining Act. its implementing rules and regulations. and@or the terms and
conditions of a mining permit@contract@agreement(
% Aor the Regional /irectors to impose <easeand/esist 1rders (</1)(
% To deputi-e the P0P. &96s. 091s and other responsi+le entities to police
mining activities(
%To assist the )nvironmental Management 7ureau ()M7)@/)0R Regional
1:ces in processing@evaluation@conduct of )IA in mining pro>ects(
% To manage and administer Mineral Reservation area (0ote$ Mineral
Reservations. under the 0e' Act. include o;shore marine areas!)
ROLE OF LOCAL GOVERNMENTS
The IRR highlights the role of local government units (&96s) in mining
pro>ects. +oth as +ene"ciaries and as active participants in mineral resources
management. in consonance 'ith the <onstitution and government policies
on local autonomy and empo'erment! As such. the Mining Act provides the
follo'ing$
% In consonance 'ith the &ocal 9overnment <ode of 199B (&9<). &96s have
a share of forty percent (34C) of the gross collection derived +y the 0ational
9overnment from mining ta=es. royalties and other such ta=es. fees or
charges from mining operations in addition to the occupational fees (D4C to
the Province and E4C to the Municipalities concerned)(
% In consonance 'ith the &9< and the People 5mall5cale Mining Act (RA
E4E2). the &96s shall +e responsi+le for the issuance of permits for small
scale mining and *uarrying operations. through the Provincial@<ity Mining
Regulatory 7oards (PMR7s@<MR7s)(
% To actively participate in the process +y 'hich the communities shall reach
an informed decision on the social accepta+ility of a mining pro>ect as a
re*uirement for securing an )nvironmental <ompliance <erti"cate ()<<)(
% To ensure that relevant la's on pu+lic notices. consultations and pu+lic
participation are complied 'ith(
% To participate in the monitoring of mining activities as a mem+er of the
Multipartite Monitoring Team. as 'ell as in the Mine Reha+ilitation Aund
<ommittee(
% To act as mediator +et'een the Indigenous <ultural <ommunities (I<<s)
and the mining contractor as may +e re*uested@necessary(
% To +e the recipients of social infrastructures and community development
pro>ects for the utili-ation and +ene"t of the host and neigh+oring
communities( and
% To coordinate 'ith and assist the /)0R and the M97 in the implementation
of the Mining Act and the IRR!
AREAS CLOSED TO THE MINING APPLICATION
Pursuant to the Mining Act of 1995 and in consonance 'ith 5tate policies and
e=isting la's. areas may either +e closed to mining operations. or
conditionally opened. as follo's$
Areas <&15)/ to mining applications$
% Areas covered +y valid and e=isting mining rights and applications(
% 1ld gro'th or virgin forests. mossy forests. national par#s.
provincial@municipal forests. tree par#s. green+elts. game refuge. +ird
sanctuaries and areas proclaimed as marine reserve@marine par#s and
sanctuaries and areas proclaimed as marine reserve@marine par#s and
tourist -ones as de"ned +y la' and identi"ed initial components of the
0IPA5. and such areas as e=pressly prohi+ited thereunder. as 'ell as under
/)0R Administrative 1rder 0o! B5. s! 199B. and other la's(
% Areas 'hich the 5ecretary may e=clude +ased. inter alia. or proper
assessment of their environmental impacts and implications on sustaina+le
land uses. such as +uiltup areas and critical 'atershed 'ith appropriate
+arangay@municipal@provincial 5anggunian ordinances specifying therein the
location and speci"c +oundaries of the concerned area( and
% Areas e=pressly prohi+ited +y la'!
The follo'ing areas may +e opened for mining operations. the approval of
'hich are su+>ect to the follo'ing conditions$
% Military and other government reservations. upon prior 'ritten consent +y
the government agency having >urisdiction over such areas(
% Areas near or under pu+lic or private +uildings. cemeteries. and
archaeological and historic sites. +ridges. high'ays. 'ater'ays. railroads.
reservoirs. dams and other infrastructure pro>ects. pu+lic or private 'or#s.
including plantations or valua+le crops. upon 'ritten consent of the
concerned government agency or private entity. su+>ect to technical
evaluation and validation +y the M97(
% Areas covered +y ATAA applications. 'hich shall +e opened. for *uarry
resources upon 'ritten consent of the ATAA applicants@contractors! Fo'ever.
mining applications for sand and gravel shall re*uire no such consent(
% /)0R Pro>ect areas upon prior consent from the concerned agency!
ANCESTRAL LANDS AND ICC AREAS
The Mining Act fully recogni-es the rights of the Indigenous Peoples
(IPs)@Indigenous <ultural <ommunities (I<<s) and respect their ancestral
lands! Thus. in accordance 'ith /)0R Administrative 1rder 0o! B. and
consistent 'ith the ne' Indigenous Peoples Rights Act (IPRA). the follo'ing
shall +e o+served$
% 0o mineral agreements. ATAA and mining permits shall +e granted in
ancestral lands@domains e=cept 'ith prior informed consent in$ a) <A/<@<&<
areas( and +) areas veri"ed +y the /)0R Regional 1:ce and@or appropriate
o:ces as actually occupied +y Indigenous <ultural <ommunities under a
claim of time immemorial possession(
% ,here 'ritten consent is granted +y the I<<s. a royalty payment shall +e
negotiated 'hich shall not +e less than 1C of the 9ross 1utput of the mining
operations in the area! This Royalty shall form part of a Trust Aund for
socioeconomic 'ell +eing of the I<<s in accordance 'ith the management
plan formulated +y the I<<s in the <A/<@<A&< area! (In a largescale mining
operation the 1C Royalty could easily run into several tens of million pesos
per year)!
% Representation in the Multipartite Monitoring <ommittee(
SOCIAL AND COMMUNITY DEVELOPMENT AND RESEARCH AND
DEVELOPMENT
The Mining contractors@operators shall allocate a minimum of 1C of their
direct mining and milling costs for the follo'ing$
% /evelopment of the host and neigh+oring communities and mine camp.
including the construction and maintenance of social infrastructures to
promote the general 'elfare of the inha+itants in the area! 5uch
infrastructures include roads and +ridges. school +uildings. churches.
recreational facilities. housing facilities. 'ater and po'er supplies. etc!(
% Aor the development of mining technology and geosciences. particularly
those related to improved e:ciencies and environmental protection and
reha+ilitation(
The mining contracts under the regimes of MP5A and ATAA also provide for
the mandatory Ailipini-ation program. technology transfer. and the training
and priority employment of local residents! These contracts further mandate
that mining operations shall ma=imi-e the utili-ation of local goods and
services. the creation of selfsustaining generating activities. and s#ills
development!
ENVIRONMENTAL AND SAFETY CONCERNS
A signi"cant feature of the Mining Act of 1995 and its IRR is the premium
given to environmental protection! 5tringent measures 'ere institutionali-ed
to ensure the compliance of mining contractors@operators to internationally
accepted standards of environmental management! 1n top of the )<<
conditionalities. here'ith are some of the highlights provided for in the IRR(
% Mandatory allocation of an appro=imately 14C of the initial capital
e=penditures of the mining pro>ect for environmentrelated activities(
% Mandatory annual allocation of D5C of the direct mining and milling costs
to implement an Annual )nvironmental Protection and )nhancement
Program(
% Mandatory esta+lishment of a MI0) R)FA7I&ITATI10 A60/ (MRA) to +e
composed of$ a) a Monitoring Trust Aund of P54.444 'hich is replenisha+le(
and +) a Reha+ilitation <ash Aund of P5 Million or 14C of the )P)P cost.
'hichever is lo'er! 5uch Aunds are to +e deposited as trust account in a
government depository +an# to +e managed +y MRA <ommittee composed
of the M97 Regional /irector. /)0R Regional )=ecutive /irector.
representatives from the &96 and an 091. and the <ontractor(
% Mandatory esta+lishment of the <ontingent &ia+ility and Reha+ilitation
Aund (<&RA) to +e managed +y a 5teering <ommittee chaired +y the M97
/irector 'ith mem+ers coming from concerned government agencies(
% <onduct of )nvironmental ,or# Program (),P) during the e=ploration
stage and an )nvironmental Protection and )nhancement Program ()P)P)
during the development and operations stage!
% Institutionali-ation of an incentive mechanism to mining companies
utili-ing engineered and 'ellmaintained mine 'aste and tailings disposal
systems 'ith -erodischarge of materials@eGuents and@or 'ith 'aste'ater
treatments plants(
% Mandatory constitution and operationali-ation of a Multipartite Monitoring
Team composed of representatives from the M97. /)0R Regional 1:ce.
a;ected communities. Indigenous <ultural <ommunities. an environmental
091. and the <ontractor@Permit Folder. to monitor mining operations(
% Mandatory esta+lishment and operationali-ation of a Mine )nvironmental
and Protection and )nhancement 1:ce (M)P)1) in each mining@contract
area 'hich shall set the level of priorities and marshal the resources needed
to implement environmental management programs(
% <onduct of an independent environmental audit to identify environmental
ris#s a;ecting mining operations as a +asis for the development of an
e;ective environmental management system(
% Mandatory preparation and implementation of a "nal Mine Reha+ilitation@
/ecommissioning Plan at least "ve (5) year prior to the end of the life of the
mine. to +e underta#en in consultation and in coordination 'ith the
concerned communities. and shall +e su+mitted for approval +y the M97 and
&96 concerned(
% Imposition of higher penalty (P54!44@MT) to mining companies that are
found to have illegally discharged and@or discharging solid fractions of
tailings into areas other than the approved tailings disposal area(
% Authori-ing the M97 Regional /irector to summarily suspend
mining@*uarrying operations in case of imminent danger to human safety or
the environment(
% Mandatory compliance 'ith the rules and regulations of the Mines 5afety
Rules and Regulations +y all <ontractors. Permittees. &essees. Permit Folders
and 5ervice <ontractors( and
% Institution of the Presidential Mineral Industry )nvironmental A'ard to +e
given to e=ploration or operating mining companies +ased on their
e=emplary environmental performance and accomplishments!
ON SOCIAL ACCEPTABILITY
Mining contractors@operators shall allocate a minimum of 1C of their direct
mining and milling costs for the development of the follo'ing$
% Fost and neigh+oring communities and mine camp to promote the general
'elfare of inha+itants in the area! This includes construction and
maintenance of infrastructures such as roads and +ridges. school +uildings.
housing and recreational facilities. 'ater and po'er supplies. etc!(
% Mining technology and geosciences. particularly those related to improved
e:ciencies and environmental protection and reha+ilitation!
MINING PERMITS GRANTED TO QUALIFIED PERSONS
The follo'ing are the types of mining permits granted under the Mining Act
of 1995 and its IRR$
Exploration Permit these permits are issued to *uali"ed individuals or
local and foreign corporations granting them to underta#e purely mineral
e=ploration activities! Fas a term of t'o (B) years rene'a+le for li#e terms
+ut not to e=ceed a total term of si= (2) years for nonmetallic minerals and
eight (H) years for metallic minerals! The Permittee may eventually apply for
Mineral Agreement or ATAA. su+>ect to ma=imum areas limitations! The
ma=imum areas allo'ed per *uali"ed person under an )=ploration Permit
are$ 1.2B4 hectares in any one province or D.B34 hectares in the entire
country for an individual( and 12. B44 hectares in any one province or DB.344
hectares in the entire country for a corporation. association. cooperative or
partnership!
Mineral Agreement are granted to individuals or local corporations giving
them the right to e=plore. develop and utili-e the minerals 'ithin the
contract area! There are three modes of Mineral Agreements namely$
Mineral Production Sharing Agreement (MPSA) an agreement 'herein
the 9overnment grants to the contractor the e=clusive right to conduct
mining operations 'ithin. +ut not title over. the contract area and shares in
the production 'hether in #ind or in value as the o'ner of the minerals
therein! The <ontractor shall provide the necessary "nancing technology.
management and personnel(
Co-Production Agreement (CA) an agreement +et'een the 9overnment
and the <ontractor 'herein the
9overnment shall provide inputs to the mining operations other than the
mineral resources( and
Joint Venture Agreement (JVA) an agreement 'here the 9overnment
and the <ontractor organi-e a >oint venture company 'ith +oth parties
having e*uity shares! Aside from earnings in e*uity. the 9overnment shall +e
entitled to a share in the gross output!
The features of a Mineral Agreement are as follo's$
% Term of B5 years. rene'a+le for another term of B5 years(
% )=ploration Period of t'o (B) years rene'a+le for li#e terms +ut not to
e=ceed a total term of si= (2) years for nonmetallic minerals or eight (H)
years for metallic minerals(
% Ma=imum allo'a+le areas of H14 hectares in any one province or 1.2B4
hectares in the entire country for an individual. or H.144 hectares in any one
province or 12.B44 in the entire country for a corporation. association.
cooperative or partnership!
% Provides for mandatory relin*uishment such that the ma=imum "nal area
shall not e=ceed 5.444 hectares for metallic minerals or B.444 hectares for
nonmetallic mines(
% 5u+>ect to )nvironmental ,or# Program (),P) during the e=ploration
period. and to )nvironmental <ompliance <erti"cate ()<<) and
)nvironmental Protection and )nhancement Program ()P)P) during the
development and operation period(
% Approval +y the /)0R 5ecretary
Financial or Technical Assistance Agreements (FTAA) a mining
contract for largescale e=ploration.
development and utili-ation of minerals 'hich allo's up to 144C foreign
e*uity participation@o'nership! The terms and conditions under an ATAA are
as follo's$$
% Term of B5 years. e=tenda+le for li#e periods(
% Minimum capitali-ation. I3Million. or its peso e*uivalent(
% Minimum investment for infrastructure and development of I54Million(
% Minimum ground e=penditures$ Aor Jears 1 K B IB@ha@yr( Jears D K 3
IH@ha@yr( Jear 5 I19@ha@yr( Jear 2 IBD@ha@yr
% Allo'ed only for metallic minerals such as gold. copper. nic#el. chromite.
lead. -inc and other metals(
% Ma=imum allo'a+le area$ Aggregate total of H1.444 in the entire country(
% Mandatory area relin*uishments $ B5C on the "rst Byrs( 14C per year
thereafter(
% Ma=imum "nal area$ 5.444 hectares for each mining area(
% Ma=imum periods$ )=ploration Period L 3 years( PreAeasi+ility 5tudy Period
L B yrs( Aeasi+ility 5tudy Period L B years(
% 5u+>ect to )nvironmental ,or# Program (),P) during the e=ploration@pre
feasi+ility study@feasi+ility study period. and to )nvironmental <ompliance
<erti"cate ()<<) and )nvironmental Protection and )nhancement Program
()P)P) during the development and operation period(
% Approval +y the President. upon recommendation of the 0egotiating Panel
composed of the /)0R 5ecretary. the M97 /irector. and representatives
from 0)/A. /TI@71). /ept! of Ainance. /)0R Aield 1perations 1:ce. /)0R
&egal 1:ce. and M97 Regional 1:ce!
,hile the ma=imum area allo'a+le for ATAA is apparently su+stantial. the
eventual signi"cant area reduction is ensured +y the mandatory
relin*uishment provision! Aurther. the P54@ha@yr 1ccupation Aees and the
stipulations for minimum ground e=penditures that correspondingly graduate
annually up'ards are e=pected to deter any company for holding on
unnecessarily any e=cess land areas that are unminerali-ed!
Sand and ra!el Permits are issued for the e=traction. removal and
disposition of sand and gravel and other loose or unconsolidated materials!
Permits 'ith areas not e=ceeding 5 hectares are issued +y the Provincial
9overnor@<ity Mayor 'hile those e=ceeding 5 hectares +ut not more than B4
hectares are issued +y the M97 Regional /irector! A 5and and 9ravel Permit
has a term of 5 years and rene'a+le for li#e terms!
"uarr# $esources Permits In accordance 'ith the &ocal 9overnment
<ode of 1991. mining permits 'ith areas not more than 5 hectares have
+een devolved to the Provincial 9overnor or the <ity Mayor for approval upon
recommendation of the Provincial@<ity Mining Regulatory 7oard! These
include the Muarry Permit. 9uano Permit. 9ratuitous Permit and 9emstone
9athering Permit!
Small-Scale Mining Permits In consonance 'ith the &ocal 9overnment
<ode and RA 0o! E4E2. smallscale mining permits are approved and issued
+y the <ity Mayor@Provincial 9overnor. upon recommendation of the
Provincial@<ity Mining Regulatory 7oard!
Mineral Processing Permit L a permit granting the right to process
minerals! It is issued +y the /)0R 5ecretary 'ith a term of 5 years and
rene'a+le for li#e terms!
%re Transport Permit L no minerals. mineral products and +yproducts
shall +e transported unless accompanied +y an 1re Transport Permit! The
1TP is issued +y the M97 Regional /irector concerned!
TAES AND INCENTIVES
Mining contractors of MP5A and ATAA can avail of "scal and non"scal
incentives granted under the 1mni+us Investment <ode of 19HE. as
amended!
In addition to these incentives. the follo'ing are also granted +y the Mining
Act!
% Incentives for pollution control devises(
% Incentives for income ta= carry for'ard of losses(
% Incentives for income ta= accelerated depreciation on "=ed assets(
% Investment guarantees. such as investment repatriation. earnings
remittance. freedom from e=propriation. and re*uisition of investment. and
con"dentiality of information!
Aor ATAA contractors. an additional incentive. in the form of a ta= holiday on
national ta=es is granted from the start of the construction and development
period up to the end of the cost recovery period. +ut not to e=ceed "ve years
from the start of commercial operation! After the recovery period. the
contractor starts paying these ta=es. including the additional government
share +ased on negotiated scheme!
TAES PAID
Mining activities generate income +oth for the local and national
governments! The follo'ing ta= payments are provided for in the Mining Act.
the 0ational Internal Revenue <ode and other la's$
Payments to the 0ational 9overnment$
% <orporate Income Ta=
% )=cise Ta= on Minerals
% <ustoms /uties
% 8alue Added Ta=
% Royalties on Minerals )=tracted from Mineral Reservation
% /ocumentary 5tamp Ta=
% <apital 9ains Ta=
Payments to &ocal 9overnment$
% 7usiness Ta=
% Real Property Ta=
% Registration Aees
% 1ccupation Aees
% <ommunity Ta=
% 1ther &ocal Ta=es
,ithholding Ta=es on$
% Payroll
% Interest Income in 7an#s
% Royalties to Technology Transfer
% Interest Payments to Aoreign &oans
% Aoreign 5toc#holders /ividends
% Remittance to Principal
In addition to the a+ove ta=es. duties and fees. mining contractors are
re*uired to pay or e=pend on$
% Additional 9overnment 5hare for ATAA contractors
% Royalties to &ando'ners@<laim o'ners
% Royalties to Indigenous Peoples
% 5ocial /evelopment Programs
% )nvironmental 1+ligations
% Research and /evelopment of Mining Technology and 9eosciences
The +ene"ts of mining pro>ects provides appro=imately not less than si=ty
percent (24C) of the total proceeds of the mining operations to the
government and the Ailipino people. considering that the contractor infused
144C of the capital! These proceeds include all direct and indirect ta=es and
fees and +ene"ts to other Ailipinos!
AUILIARY MINING RIGHTS
T!"#$% R!&'() <ontractor may +e ranged a right to cut trees or tim+er
'ithin his mining area as may +e necessary for his mining operations su+>ect
to forestry la's. rules and regulations! Provided the contractor shall perform
reforestation 'or# 'ithin his mining area in accordance 'ith forestry la's.
rules and regulations!
*+($% R!&'() A contractor shall have 'ater rights for mining operations
upon approval of application 'ith the appropriate government agency$
Provided. that 'ater rights already granted or vested through long use.
recogni-ed and ac#no'ledged +y local customs. la's. and decisions of
courts shall not there+y +e impaired$ Provided further. that the 9overnment
reserves the right to regulate 'ater rights and the reasona+le and e*uita+le
distri+ution of 'ater supply so as to prevent the monopoly of the use thereof!
R!&'( (, P,))$)) E-./,)!0$) L <contractorNs right to possess and use
e=plosives. provided the 9overnment reserves the right to regulate and
control the e=plosive accessories to ensure safe mining operations!
E+)$"$1( R!&'() ,hen necessary to its operations. contractors have a
right to +uild. construct or install on the mining areas or lands o'ned.
occupied or leased +y other persons. such infrastructure as roads. railroads.
mills. 'aste dump sites. tailings ponds. 'arehouses. staging or storage areas
and port facilities. tram'ays. run'ays. airports. electric transmission.
telephone or telegraph lines. dams and their normal ?ood and catchment
areas. sites for 'ater 'ells. ditches. canals. ne' river +eds. pipelines.
?umes. cuts. shafts. tunnels. or mills. the contractor. 2.,1 .+3"$1( ,4 52)(
6,".$1)+(!,1. shall +e entitled to enter and occupy said mining areas or
lands!
E1(%3 !1(, P%!0+($ L+17) +17 C,16$))!,1 A%$+) 8 5u+>ect to prior
noti"cation. holders of mining rights shall not +e prevented from entry into
private lands and concession areas +y surface o'ners. occupants. or
concessionaires 'hen conducting mining operations therein$ Provided. That
any damage done to the property of the surface o'ner. occupant. or
concessionaire as a conse*uence of such operations shall +e properly
compensated as may +e provided for in the implementing rules and
regulations$ Provided. further. That to guarantee such compensation. the
person authori-ed to conduct mining operation shall. prior thereto. post a
+ond 'ith the regional director +ased on the type of properties. the
prevailing prices in and around the area 'here the mining operations are to
+e conducted. 'ith surety or sureties satisfactory to the regional director!
SETTLEMENT OF CONFLICTS
A%#!(%+(,%) (D Mem+ers)
B must +e mem+ers of the Phillipine 7ar
1 license Mining )ngineer
Panel has e=clusive and original >urisdiction to hear and decide the follo'ing$
(a) /isputes involving rights to mining areas(
(+) /isputes involving mineral agreements or permits(
(c) /isputes involving surface o'ners. occupants and
claimholders@concessionaires( and
(d) /isputes pending +efore the 7ureau and the /epartment at the date of
the e;ectivity of this Act!
A..$//+($ 92%!)7!6(!,1! The decision or order of the panel of ar+itrators
may +e appealed +y the party not satis"ed thereto to the Mines Ad>udication
7oard 'ithin "fteen (15) days from receipt thereof 'hich must decide the
case 'ithin thirty (D4) days from su+mission thereof for decision!
M!1$) A7527!6+(!,1 B,+%7 The Mines Ad>udication 7oard shall +e
composed of three (D) mem+ers! The 5ecretary shall +e the chairman 'ith
the /irector of the Mines and 9eosciences 7ureau and the 6ndersecretary
for 1perations of the /epartment as mem+er thereof!
In any proceeding +efore the 7oard. the rules of evidence prevailing in
courts of la' or e*uity shall not +e controlling and it is the spirit and
intention of this Act that shall govern! The 7oard shall use every and all
reasona+le means to ascertain the facts in each case speedily and
o+>ectively and 'ithout regard to technicalities of la' or procedure. all in the
interest of due process! In any proceeding +efore the 7oard. the parties may
+e represented +y legal counsel! The "ndings of fact of the 7oard shall +e
conclusive and +inding on the parties and its decision or order shall +e "nal
and e=ecutory!
A petition for revie' +y certiorari and *uestion of la' may +e "led +y the
aggrieved party 'ith the 5upreme <ourt 'ithin thirty (D4) days from receipt
of the order or decision of the 7oard!