Others: Art XII Sec2 of the Consti.

States that with the exception of agricultural lands, all other resources shall not be
alienated. This means that mineral, coal etccannot be alienated. Please explain why the govt enters intomineral
agreements with contractors which are then allowed to extract and sell mineral for profit. Is this not a form of
alienation of natural resources that is condoned by the govt?
Section 2. 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 Constitution also provides that the President may, for the Government, enter into agreements
involving either technical or financial assistance for large-scale exploration, development and utilization
of minerals and mineral oils according to the general terms and conditions provided by law, based on real
contributions to the economic growth and general welfare of the Republic of the Philippines;
EXECUTIVE ORDER NO. 279 provided that existing and expected proposals from interested parties,
including foreign-owned corporations, for agreements involving the exploration, development and
utilization of minerals that require immediate consideration to encourage investment in the mining
industry which plays a pivotal role in the economic development of the country
Pursuant to Republic Act No. 7942, otherwise known as the Philippine Mining Act of 1995 which took
effect on 09 April 1995, the President is authorized to execute and approve on behalf of the Government
Financial or Technical Assistance Agreements to be entered into with qualified entities in furtherance of
the objectives of the Government to encourage investments from both domestic and international
sources for large-scale exploration, development and commercial utilization of mineral resources;
The Government desires to avail itself of the financial resources (including access to international
sources of financing), technical competence, managerial, environmental and other skills which the
Contractor is capable of applying to Mining Operations;
The Government and the Contractor desire a stable investment regime which reflects the twin principles
that:
(1) The Government expects real contributions to the economic growth and general welfare of the
country from the large-scale exploration, development and utilization of mineral resources under its
national sovereignty and patrimony; and
(2) the Contractor expects that the terms of this Agreement shall enable it to plan, obtain and commit
large-scale financial and technical resources to the Mining Operations in order to realize a return of its
investment which takes into account the high risks of exploration, the requirements of financiers, the
high cost and long term nature of mining activities, the terms and conditions prevailing internationally
and domestically in the mining industry, and any enhanced return achieved as a result of the
Contractors performance; and
1.1 Purpose of the Agreement. This Agreement is a Financial or Technical Assistance Agreement entered into by and
between the President, for the Government, and the Contractor, pursuant to the Act and the IRR. The primary
purpose of this Agreement is to provide for the large-scale exploration, development, and commercial
utilization of Minerals within the Contract Area, with all the necessary technology, management,
financing and personnel to be provided or arranged for by the Contractor in accordance with the
provisions of this Agreement.
1.2 Minerals Subject of this Agreement. This Agreement covers the exploration, development and commercial
utilization of Minerals as herein defined found to exist within the Contract Area.
1.3 Exclusive Right of the Contractor. The Contractor is hereby granted the exclusive rights to explore, mine, utilize,
process, refine, market, transport, export and dispose of Minerals and mineral products and by-products that may be
derived or produced from the Contract Area, subject to such permitting requirements that may be applicable under
pertinent laws, rules and regulations. The Contractor shall not, by virtue of this Agreement, acquire any title
to lands within the Contract Area: Provided, that it may do so by any mode of acquisition provided by the
laws of the Republic of the Philippines.
1.4 Contractors Acceptance of Risk. The Contractor shall assume all the exploration risks such that if no Minerals in
commercially viable quantity are developed and produced, it shall not be entitled to reimbursement of its expenses.