Republic Act No.

7942, also known as The Philippine Mining Act of 1995, is the

governing law that regulates mineral resources exploration, development, utilization,
and conservation. One of the primary objectives of this act is to revitalize the ailing
Philippine mining industry by providing fiscal reforms and incentives and maintaining the
viable inventory of minerals to sustain the industry. This act takes into considering the
local government empowerment, respect and concern for the indigenous cultural
communities, equitable sharing of benefits and natural wealth, demands of present
generation while providing the foundation for future generations, and the protection and
wise management of the environment. This law contains social and environmental
safety which includes the built-in protection for the indigenous people, competitive fiscal
regime, equal sharing of the benefits of mining, and environmental and social
provisions.
The Implementing Rules and Regulations (DENR Administrative Order No.96-40) of the
Philippine Mining Act of 1995 provides strict adherence to the principle of sustainable
development. This strategy mandates that the needs of the present should be met
without compromising the ability of the future generations to meet their own needs, with
the view of improving the quality of life, both now and in the future. Sustainable
development provides that the use of mineral wealth shall be pro-people and proenvironment in sustaining wealth creation and improve quality of life.
The Philippine Mining Act was signed into law in 1995. Questions continue to emerge
concerning differences in interpretation among regulating agencies (the DENR, BIR and
the National Commission on Indigenous Peoples (NCIP) and the LGUs to mention a
few), and several documented cases of environmental damage caused by breakdowns

in mining waste disposal systems continue to occur. Although the Mining Act was
created to revive and enhance the development of the industry, it has not been effective
in achieving this goal as shown by the inconsistent growth of production, its marginal
contribution to gross domestic product, exports and employment and the low levels of
net foreign direct investment inflows relative to five other economies in the ASEAN
region. The provisions of the law and the revised implementing rules and regulations
appear to be comprehensive enough in order to protect the environment and secure a
substantial share of the benefits for the national and local governments. However, the
bigger challenge to address is the ability of the Department of Environment and Natural
Resources, Mines and Geosciences Bureau, Local Government Units, Bureau of
Internal Revenue, National Commission on Indigenous Peoples and other relevant
departments and agencies to implement the provisions of the Mining Act. Full
implementation and enforcement through the imposition of the prescribed penalties on
violations will ensure that the environment is indeed protected, that abandoned mines
are rehabilitated and properly decommissioned and that government collects its fair
share of the benefits from mining operations.