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Republicof the Philippines


Fifteenth CONGRESS
First Regular Session

BillNo. 37 6 3

IntroducedBy Hon. KAKA J. BAG-AO,Hon. WALDEN F. BELLO,



The country'snaturalresources form a greatpartof the nation'swealth. Consequently,all

activitieswhich havethe propensity to impairthe qualityof our naturalresources
subjected to scrutinybeforebeingallowedto continue.

Oneof the industries

which havemassivesocietalandenvironmental impactsis the mining
industry.It is essentiallyan extractiveindustry which results in the depletionol
nonrenewable resources.

However, despite the naturally polluting tendencyof the mining industry, the Philippine
government'slegislationand policies are largely pro-mining beginningwith the passageof
the PhilippineMining Act or RepublicAct 7942 in 1995.It soughtto liberalizethe mining
industry to foreign investment in order to meet the demandsof globalization.The law was
eventuallydeclaredunconstitutionalby the SupremeCourt in the leadingcase of La Bugal
B'faanTribal Associationv. Ramos,a decisionthat was overturnedlessthan a yearlater.The
historyof that casemirrors the proclivity of the governmentto act againstits betterjudgment
once the so-called profits of mining are brought into the picture. Indeed, the law has
continuedto serveas a platform for every administration'sdeterminedpursuit of mining as
its most lucrativeattractionfor foreign investors,especiallythe previousadministration. In
executiveissuances EO 270 and270-A, the previousadministrationoutlineda nationalpolicy
agendafor the revitalizationof the mining industryas a pillar of growth. It declaredthat the
vast mineral resourcesof our country should be utilized for economic developmentand
poverty alleviation, especiallyin the rural areas.It further fast-trackedthe proceduresfor
processingmining applicationsand diluted the authority of the local governmentsover
m i n i n si s s u e s .
Consideringthe history of seriousmining accidentsand the mining co{porations'poor record
in complying with our inadequatemining laws, the government'sdeferenceto the mining
industry should be better examined.The baselessmessianicview that the mining industry
will attract foreign investmentand save the country's faltering economy should be pitted
againstthe numerouscontroversiesover the massive social, economic and environmental
impactsof the mining industry. In particular,the easy accessof mining companiesinto
indigenous peoples lands and ancestral domains and the controversy over mining in
watershedsand otherprotectedareasmust be studiedthoroughly.

Furthermore,the devastatingeffects of mining on the health of the environment and

communities on the long-term and at a large scale are both well-documented and
unprecedented.Mining is an intrinsically dirty, wasteful and destructive industry it
threatens40% of the world's undevelopedforests,causesthe emissionof I42 million tons of
acid-rain-causingsulphur dioxide each year,,and consumesfrom sevento 10 percentof the
world's energy.The creation of one gold ring generatesthree tons of waste, mostly left
behindin indigenouspeoples'domainswherehalf of the world's gold are mined.

In the Philippines, the Marcopper disaster in Marinduque is one of the most notorious
examplesdramatizingthe Philippines' own strugglewith the hazardsof mining. More than
threemillion tons of toxic sludgewere releasedinto the Boac River in 1996when a drainage
tunnel burst, renderingthe river biologically dead.This after two decadesof environmental
havochad alreadybeenbroughtaboutby PlacerDome, the Canadianmining firm responsible
for the Marcoppermines,which causedthe dumping,via surfacedisposal,of more than 200
million tons of mine tailings directly into the shallow waters of CalancanBay, covering
coralsand seagrassesand the bottom of the bay with 80 squarekilometersof tailings.

Yet, despitethesestatisticsand experiences,our policy-makershave championedmining as

the virtual savior of our economy and made it a "pet project" of sorts, laboring under the
illusion that it can still bring high revenuesfor the goverrrment.The reality, however,is that
the mining industry is currently one of the weakestsectorsin the global market. The big
transnationalmining companieshave cut their workforcesby the thousandsand mining
projectshave been shelvedwith the global financial crisis which Karsten Fuelster,a mining
division businessdevelopment official for the International Finance Corp. have said is
leadingto "substantialshort-termdemanddestruction."He adds that prices for metals apart
from gold are expectedto fall and projectswill get delayedand explorationcurtailed,while
"funding difficulties will get worse" beforethey get betterand that fund-raisingwill become
"nearlyimpossiblefor non-producingcompanies"andthat "many will not survive."

Even historically speaking,mining has never been shown to drive national economic
developmentand is not expectedto do so now, especiallyvis-a-vis the social, cultural,
environmental,health,and even the economiccostsit entails.In the Philippines,mineral-rich
provinces continue to have higher poverty incidencesdespite the operations of mining
companies.Instead, mining has exacerbatedconflicts, resulted in the displacementof
indigenouspeoplesand other rural communities,heightenedthe numbers of extra-judicial
killings and of human rights violations, and caused and exacerbatedthe pollution and
depletionof natural resourceswhich for generationshave sustainedlivelihoods and defined
our people'sway of life. To pour resourcesinto an industrywhich contributesonly 1.2%of
the country's GDP, insteadof, say, into the agriculturalsectorwhich accountsfor 35.7% of
the country'slabor force and economicallycontributesmore to the country'sGDP at lTo/ol
simplydefiesgood commonsense.

The promotion of mining, therefore, in this time of crisis will translatenot only to bad
investmentbut also to the waste of what little resourceswe have remaining,theseresources
referring to both money in the bank and to those that are most essentialsuch as water and
food. Thereis an obvious and urgentneedto shift our presentframeworkon mining. We need
to rethink our currentpriorities and recognizethat it not only impossiblebut also unwise to
separatemining from the discussionof resourceuse, water, food security, environment,
humanrights,indigenouspeoplesand economics.

If thereis truly a need for mining and if we are to engagein the mining industry as a nation,
then thereare certainsafeguardsthat we needto establishto be able to meet the needsof our
peoplesnow and in the future. Theremust be a shift of land use priorities towardssustainable
developmentand food security.The benefitsof mining for the Filipino peoplesshouldclearly
be establishedbefore even consideringerposing our land and our people to the risks and
hazardsthat are entailed.

Against this backdrop,the explorationof our mineral wealth must be understoodwithin the
contextof environmentalprotectionand sustainabledevelopment. The policies of the State
shouldbe aimed at preventingdisastersratherthan mere remedialin nature.Sincethe effects
of the mining industry are irreversibleand the remediesor rehabilitationof the environment
after disastershave occurred would be merely an exercisein futility, it would be better to
formulatepoliciesthat will abatethe occurrenceof suchdeleteriousevents.

In this regard,the policies,principlesand provisionscontainedin the 1995Mining Act sorely

lack what is neededto effectively respondto the needsof the Filipino people and to survive
the current economic and environmentalcrisesthat we togetherface. This bill is therefore
proposedto take the place of the currentmining law and,amongothers:
- guaranteethat the exploration,developmentand utilization of mineral resourcesare
primarily for the benefit of the Filipino people;
- prioritize more viable and more sustainablelivelihood choicesfor communities,
giving utmostimporlanceto food securityand livableconditionsfor the peoples;
- ensure that the gains from the mining industry would be maximized while
preventingor mitigating its adverseeffectsof the same;
- recognrzethat the issueof environmentis local and prioritrze local participationin
decisionssurroundingmining; and
- protecthuman rights of communitiesand individualsand imposeharshpenaltiesfor
the violationsthereof.

In view of the foregoing,the earlypassageof this bill is thus earnestlysought.

Partylisi AkbayanPartylist

Basedon figuresfor the year 2008.
Lone Distrj Ifugao 2ndDistfict, Cagayai 6 Oro City

/.1/ -----\___
(-/' o' I1
Abante Mindanao Partylist \ton) District,NuevaViscaya


Republicof thePhilippines

First Regular Session

BitlNo. 37 6 3

Introduced By Hon. KAKA J. BAG-Ao, Hon. WALDEN F. BELLO,

anclHon. ROILO S.

7 Be it enacted by the Senate an(l lhe House of Representativesof the phitippines
in Congress
8 assembled:
12 Sectionl. Short Title. This Act shall be known as the "PhilippineMineral Resources
.{cl of
I3 2010".
l5 Section
2. Declaration
ofPolicl.It is herebldeclaredthatit is thepolicyoftheState
16 a) \laintainpeace
andorder.prorect rif-e.
libertyandproperty andpromote thegeneral
17 ri elfare:
l8 b) Protect and advancethe right of the people to a balanced and healthful
ecology in
19 accordwith the rhl,thmand harmonr.ol naturei

PageI of43
I c) Value the dignity of everv human pefson and guaranteesfgll respectfor hunran
2 rights;
3 d) Promotesocialjustice in all phasesof nationaldevelopment;
4 e) R-ccosnizeand promote the rights of indigenolrscultr-rralcornmlnities within
,5 the {':'ltrcrt,oll<of itational r-rnityanclcievelopment;
6 0 Protect ancl protnote tlic right to health of the people ancl instill health
7 conscior-lsness among them;
8 g) Pttrsttean independentforeisn policy. In its relations with other statesthe
9 paramount consideration si-',rll be national sovereignty',territorial integrity,
10 nationalinterest,and the right to self-cletermination;
11 h) Develop a self-reliantand inclependent nationaleconomyeffectivelycontrollecl
12 L.: I.ilipirros.
l3 i) S n s u r et h r a u t o n o m ) o' f l o c a l g o v e ' r m e n t s ;
14 i) Ci"e hiqhest prioritv to the enactmcntof measllresthat protect anclenhancethe
l-s right of'all the peopleto human dignity, reducesocial.econoffric,anclpolitical
16 inequalities,and remove cultr-rralineqr-rities
by equitably diffgsing wealt6 and
17 political po\\ierfor the common good;
18 k) E,ncoltraqe non-governmental,cornlnunity-basecl.
or sectoralorganizationsthat
19 .tire
pl'or11t)tu. rvellbr'.:of ti-renation:
20 l) Adopt and accept the generally accepted principles as embodied in the
2l InternationalCovenanton Civil and PoliticalRights,InternationalCovenanton
2?' llconomic. Sociel. C'"rltural Rights. UN Declaratiorr on the Rights of
23 I n c l i g e n o u sP e o p l e s .U N C o n v e n t i o n o n B i o d i v e r s i t v a n d o t h c r a p p l i c a b l e
24 t internationalinstruments.
26 Section3. To this end, the Stateshall also endeavorto achievean ecologicallysouncl,
27 economicallyviable, gender Iair, eqr-ritacie systemof lancland resourcemanagementtSat
28 upholds the humatr riglrts of indigenous peopies and local communities towarcls
29 s u s t a i n a b ldee v e l o n m e n t .
31 Section
4. The erploration.cleveloprnent anclutilizationof naturalresources
32 complvrviththe prirrciples
of intergenerational

,; Section5. The jtrcliciotrsstervardship

36 (1) The State and its members shell sirarein the burclenof satisliing the need for
3l mineral resoLlrcesprirnarily througir leusing ancl recycling existing mineral
3I prodr"rcts;
40 (.2) In land and u'atcr Lrse.the procluction of sufficient foocl fi'ee from

Pase2 of 43
1 towards food securitv shall always be the priority;
3 (3) l'he State and its mernbersshall develop its hurnan resollrcesancl encollragethe
4 evolution of its own appropriatetechnologies;
6 (a) The commLlnitl'shall activelv parlicipatein the stervardsfiipol'nrineral resources.
7 Commltnitv-basedinitiativessliall L're
encouragecl and sr-rppol'ted.
9 (5) Mining operationsshall not in any way createor exacerbateconflicts.
11 (6) Thc irttcgrit,r'
of thc cnvironrnerrtis not compromised.
I3 C H A P T E I TI I . S C O P EA N D C E N E R A L P R I N C I P L E S
l5 Section6. Scope. This Act shall govern the ownership,managementand governance
16 of ore minerals onshore, as rvell as qlrarry resoLrrces,
sancl ancl gravel, glrano, and
17 gemstones,ancl the conservation,erploration. developrnent,utiiization, processingand
18 transportationtirereof. The or,vnership,managementand governance of petroleum and
19 coal shall be governedbv speciallau,s.Offshoremining shall also be governeclby special
20 larvs.
22 Section7. Ore rnineralsform part of the country's irreplaceableand pon-renewable
23 natural'uvealth
and capital. The conservationof our mineral wealth is a paramountpgblic
24 interestand mineral resollrcesshall be r-rtilizedonly in a rational manner. The economic
25 benefitsderived from mining shail be eqr-ritably distributedby, among others,prioritizing
26 developmentfor local contrjLrnitiesand all oti-rerstalceholders directiy affecteclby mining
27 operations.
29 Section8. The management of mineral resoLrrcesshall be a shareclconcern ancl
30 responsibility among the national government. corporations. all levels of local
31 government, and the communities affected by the exploration, clevelopment,and
32 utilizationof mineral resoLlrces.

a; Section9. Thc ertractiott o{'ntincral l'esollrcesshall only be allou,eclif the ecological

35 and social benefits and costs of mining lar outrveighecologicalancl social benefitsand
36 costsfrom other land LISes. The anticipatedcost of environmentaland social impactson
37 the affected local commLlnities,rvhich shall at all times be preventeclancl/or mitiqated
3B throughthe allocationo1'sr-rfficient
funds for this purpose.
40 Section 10. fl-re State sitali accord support 1o commr-rnities
depenilenton small-sca.le
41 mining whose operationsshall strictly adhereto the provisionsof this law.
Page3 of43
2 SectionI 1. Subject to their right to self-determination,indigenous cultural
J commllnities/indigenolrspeoples(lCCs/lPs)own and have the responsibilityto mani.rge
T the mineral resourcesin their respectiveancestraldomains. fiee fi'om external
5 manipulation,interference, force threat,intimiciation,
coercionand otlier analogousacts.
6 The Stateshall supportindigenouscr-rltural communitiesin cievelopingcapacitiesto
9 Section12. Minine shallbe limitedin scalein accordance r,viththis Act.
il I3. Mineral resollrces development, utilization and processing shall be
1 2 reserved for Filipino citizens ancl for Filipino corporations. Exploration shall be
IJ r-rnder-taken
directlv bv the State for tlte benefit of the nation.
t5 S e c t i o n1 4 . R e m i n i n g a n d r e c y c l i n go f m i n e r a l r e s o u r c e ss h a l l b e p r i o r i t i z e do v e r t h e
16 opening of ner,vmines to maximize and recoverthe remaining minerals resourcesfrom
17 the rejectsor rvastesof previoLlsmines and mining operations.
19 S ec t i o n1 5 . T h e sh:rllprioritizethe rel-rabilitation
of the abandoned
minesin the
20 country.
22 Section16. The Stateshallprioritizethe development of mineralresources neededf,or
L) nationaldevelopmentand the creationof dornesticprocessinqcapacityfor industrial
24 metals and other labor-intensiveclor.vnstream industries.Mine planning shall be
25 conductedto meet this principle.In this regard,the Stateshall formr-rlate a Minerals
26 UtilizationFramer.vork that will supportnationaldevelopment basedon tl-reprinciplesof
27 sr-rstainable
development. This ftamer,vorl<
rvill ciefinemineralsto be extracted,volumeto
28 bc ertractedand rt'licrtto be extrected.This sirallbe matchedrvith the aptloved rnining
29 areasas identifieclas iclentifiedby tl-reCoLrncils. Thesernatchedareasare elisiblefor
30 miningoperations.


35 Section17. Dcfinition of terms - As useclin ancl for the pllrposesof this Act, the
36 f o l l o r v i n qt e r m s .u ' h c t h e ru s c d i n s i n g u l a rc r i n p l u r a lf o r m , s h a l lr n c r : r :
)1 n/
38 a. Abarrdonmcnt - the act of the contractorleavinga mine rvithor-rt
39 completingsuchrehabilitation despitethe legalobligationto do the same;
40 -
b. Acid mine drainage the dissolution, mobilizationand transportation of toxic
41 metalsfi'om rocks resultingfrom the chemicalreactionof the acid-qeneratins
Page4 of 43
1 minerals in rock and u,asternaterialshaving high permeability to both air and
2 rainfall and other urater inflo''r,sr,r,henland is opcned up for rnining ancl initiates
the chemicalreaction,resr-rlting
to a perpetualmachineof acid generation.
4 c. Ancestral domains all areas generallv belonging to indigenous cultural
5 communities/indigenouspeoples (lCCs/lPs) comprising lands, inland waters,
6 coastal areas, and natural resourcestl-rerein,held under a claim of ownership,
l occupieclc-ripossesseclby ICCs/lPs, by themselvesor thror-rghtheir ancestors.
8 commlrnallv or individually since time immemorial, continr-rously
to the present
9 except rvhen interruptedby war, fbrce majeureor displacementby force, deceit,
10 stealthor as a conseqLlence
of governmentprojectsor any other voluntary dealings
1l entered into b1' qovernment and private individuals/corpo:itions.and r,vhichare
t2 necessaryto ensure their economic, social and cultural u'elfare. It shall include
13 ancestral lands, forests, pasture, residential, agricultural, and other lands
14 individually owned whether alienable and disposable or otherwise, hunting
15 grouncls,burial grounds.rvorshipareas,bodiesof rvater,mineral and other natural
16 resoLrrces,and lands tvhich nr:1\'no longer be exclusively occr-rpiecl by ICCs/trPs
17 but from r,vhichthey traditionally had accessto for their subsistenceand traditional
18 activities,pafiict-tlarlythe horne rangesof ICCs/lPs who arc still nomadic and/or
19 shifting cultivators
20 d. Ancestrallands- lands occupied,possessed and utilized bf indivicluals,families
21 a n d c l a n sn , h o a r e m e m b e r so f t h e I C C s / l P ss i n c et i m e i m m e m o r i a l .b y t h e m s e l v e s
22 o r t l r r o u g ht h e i r p r e d e c e s s o r s - i n - i n t e r eusntd, e r c l a i m s o f i n d i v i d u a lo r t r a d i t i o n a l
z) group orvnership,continuously,to the presentercept when interrLrptedby war,
L+ force rnajeureor displacementby force, deceit, stealth,or as a consequenceof
25 governmentprojectsand other voluntali, dealingsenteredirrto by governmentand
26 private inclivicluais/corporations
including, but not limited to, residentiallots, rice
27 terracesor paddies,private l'orests,sr,viddenfarms and tree lots;
28 /r Beneficiation- processrvhereina larqefractionof the u,asternaterialis removed
29 from the ore;
30 Bufibr Zones identified ereas or-rtsidethe boundariesof and imrnediately
JI adjacent to designated protected areas that need special development control in
)L order to avoid or minimize harm to the protectedarea;
JJ ct
b. Bureau - the Mines and GeosciencesBureau under the Denarlmentof Science
J+ and Tcchnology'
35 h Carrving capacity tlte capacity of natural and human environments to
36 accorl'lrloclate
and absorb change r,vithoutexperiencingconditions of instability
/ and attendantclegradation:
38 Cerlificateof Ancestral DornainsTitle (CADT) - title lbrmallv recognizinqthe
39 rights of possessionand orvnershipof ICCs/lPs over their ancestraldomains
40 identifiedand delineatedin accordancewith law;
Page5 of43
1 j. Certificateof AncestralLandsTitle (CALT) - a title formally recognizingthe
2 rightsof ICCs/lPsovertheirancestral lands;
J }i. Closr,rrc of mines pennanentcessationof operationsat a mine or mine
processing siterfter completion of theclecommissioning process;
5 1. ConsensLrs - the dccisioncommunallyreachecl after appropriate parlicipatory
6 consultatiorr ancldiscussion, freefrom any externalmanipulation, interference and
7 coercion,and other analogouscasesand obtainedafter fully disclosingthe intent
B and scope.incluclingthe positiveand negativeimpacts,of the activity such of
9 decision,in a language and process understandable to the communityor grollp.
10 -
m. Consent the voluntaryassentof the landowner or thosewho havebeenin open,
1l continuous, exclusiveand notoriouspossession of the landfor morethanten (10)
12 years in good faith" or thirtt' (30) years in bad faith. free from any external
13 manipulation.inter'furence and coercion,and obtainedafter fully disclosingthe
14 intentand scope,includingthe positiveand negativeimpactsof the activity,in a
15 languageand processunderstandable to the saidlandowneror occupant;
16 n. Contractarea the area delineatedas specificallyprovided by a mineral
17 agreement lbr the developrnent or r,rtilization
of mineralresolrrces fcrundtherein;
18 o. Critical watershed- refersto a clrainage areaof a river system,lake or water
19 reservoirsupporlingexistingand proposedhydroelectricpower, domesticwater
20 supply, geothermal power and irrigation r,vorks,which needs irnmediate
21 rehlSilitationrnd protectionto minimizesoil erosion,improver,vateryield and
22 pleventpossible1''loociing. The tenn shallalsoincludeareasrvhicl-r ar-etraditional
23 humanscttlernents. Iand-uses. or sea-Lrses rvhicharerepresentative of a culture(or
/-a cultures).or human interactionrvith the environmentespeciallylvhen it has
25 becomevulnerableunderthe impactof irreversible change;
26 -
p. Criticalhabitats placeor environment r,vherespeciesor subspecies naturally
2l occllror hasnatLrrally established its population thatarecrr-rciai
to the survivalof a
2B species andessential for its conservation;
29 q. Culturalsites- thosethat beara uniqueor at leastexceptional testimonyto a
30 culturaltraCitionor to a civilizationu,hichis livingor r,vhich hasdisappeared or,
JI dircctlvor tangilrl),associatecl u'ith eventsor living traditions,r,vithideas.or r,r,ith
)L beliel's.rvith arlisticand litersr\uluot',.sof outstanding universalsignificance
Customarylarvs- body of r,vrittenand/orunwrittenrules,,usages,customsand
'l 'l
JJ r.
34 practicestraditionallyrecognized, accepted and observedby respectiveICCs/lPs
35 andlocalcommunities;
36 s. Decomm issioning the activity or processthat beginsafter cessationof
37 prospectingactivities or mineral production (including metallurgicalplant
38 prodr-rction). It involves,amongothers.the removalof nnr,vanted infrastructure,
39 n"alcing excavations and u,Aste repositoriessafe and stable and surflrce
40 rehabilitationn,ith a vier,vto negateor minimize anv adverseenvironmental
Page6 of43
I impactsremainingafltercessation of mineralproduction.It includesthe after-care
2 or maintenancethatmay be needed.
J t. Ecologicalprofile or eco-profile- geographic-based instruments for planners
anddecision-rnakers u,hichpresentan evaluation of the environrnentalqualityand
5 carryingcapacitvof an areaand measllres tl-respecificintcractions that lvill be
6 affectedbv rniningoperations;
7 Ll. Exploration- meansthe searching or prospecting for mineralresources by non-
8 invasivemeansfor the purposeof determining the existence, extent,quantityand
9 qualitythereof,rvhichmay includebut not limitedto seismic', gravity,magnetic,
t0 electromeganetic, raclar.inducedpolarization, radio-waveand electrogeochemical;
ll v. Ertraction- ore-relxoval activitiesthattal<eplacea the minesiteitself;
t2 w. Free,priorand informedconsent - the consenslls of all membersof the ICCs/lps
13 to be determineclin accordance rviththeir respective customarylaws and practices,
l+ free from any externalmanipulation, interference, coercion.and otheranalogous
15 act and obtainedafterfully disclosingthe intentand scope.inclr-rding the positive
16 and negativeimpacts,of the activitv.in a languageand processunderstandable
17 andaqceptable to the commr-rnity;
r8 x. Indigenous peoples/lndigenor-rs cr"rltural
commlrnities (lP/lCC)- referto a gror-rp
l9 of peopleor homogenolls societies
identifledby self-ascriptionand ascriptionby
20 others,'uvho ltave continuouslylived as organizedcommunityon communallv
21 bor-rnded and definedterritory,and rvho have,under claims of ownershipsince
22 time immemorial,occupied,possessed and utilized such territories,sharing
ZJ common bonds of language"customs.traditionsand otlrer distinctivecultural
--t traits,or r.vhohave"thror-rgh resistanceto political,socialand culturalinroadsof
25 colonization.non-indigenousreligions and cnltures, became historically
26 differentiatedfrom the mafority of Filipinos.ICCs/lPsshall likewise include
27 peopleswho are regardedas indigenolrs on accountof their descentfrom the
28 popr-rlationsrvhichinirabitedthe country,at the time of conquestor colonization,
29 or at thc time oF inroadso1' non-indigenolls religionsand cultures,or the
30 establishment of presentstateboundaries, who retainsome or all of their o\vn
JI social.economic.cultr"rral and political institutions,but rvho may have been
)L displacedfi'on.'their traditionaldomainsor who nlav haveresettledoutsicie their
JJ ancestraldornains.They are peoples who havea spiritualr-elationship with the
34 Iand;
35 y. Indigenouspolitical structure- reftr to organizationaland cr-rltural leadership
36 systems, institutions,relationships,
patterns andprocesses for decision-making and
37 parlicipation. identificdby ICCs/iPssuchas,but not limitedto, Councilof Elclers,
38 CottnciloiTirnual's.BoclongIJolders. and anv othertribr-rnal or body of similar
39 nattrre;

Page7 of 43
1 z. Joint Venture Agreement an agreementwherein the governmentancj a
2 qualifiedpersonorganizeaioint-venture company,with bothpartieshavingeqr.rity
J shares,to deveiopand managemineralresollrces.Aside fiom earningson the
equity,the Coverntnentshall be entitiedto a sharein the otrtputcomputedat a
5 certaitrpercentage mutuallvagreedLlponby andbeneficial to bothparlies.
6 aa. I(ey biodiversity areas are sites of global biodiversity conservation
significance. Thev are definedby standardized

criteriaand thresholcls to suide

8 conservation intervenlions suchasthe establishment of protected areas:
9 bb. Large-scale -
mining mining in areesmore than trventy(20) hectares, using
l0 mechanized tools and equipment, requiringconsiderable capitalanclhavinglarge-
il scaleenvirottmental, social,cr:ltr-rral
andeconomicimpactswith regarcl to resource
12 useand/orconslrmption.
IJ cc. MineralAsreetnent-e contractenteredinto by the government, in behalfof the
la State,anda privateFilipinoperson,grantingsuchperson/s the privilegeto minea
15 specificcontractarea,
16 dd. MineralresoLlrce - any concentration of minerals/rocks with potentialeconomic
1l valuc;
18 ee, Mineralprocessing - the milling,berreficiation or Lrpgrading of oresor minerals
androcl<s or by similarmeansto converlthesameinto marketable prodr,rcts;
20 -
ff. Minerals all naturallyoccurringinorganicsubstance in solid, gas,liquid, or
2l any intermeciiete stateexcluclingenergymaterialssuchas coal, petroleum,natural
22 gas,radioactive nraterials, andgeothernral energy;
gg. Mine development - preparingthe mine sitefor prodr-rction by shaftsinkingor
/-'-t pit excavation buildingof access roads,andconstructing of surfacelacilities;
25 hh. Mine rvastesand tailings-rocl<materialsfi'om snrfaceor unclergrouncl mining
26 andmillingoperations u,ithno economic valueto thegenerator of the same;
27 ii. Mining Activity - anv or all of the follorvingactivities:erploration,extraction,
28 trtilization,processing, transportationandotheractivitiesconducted for the same.
29 jj. Mining Area - a portion of the contractareawhicl-rhas been identifieclbv the
30 contractorrvhereirractr-ral rniningoperations areconducted;
JI l*. Mining Operations eitirer all or any of the mining activitiesinvolving
JZ exploration, feasibiI ity, developrnent, utiIization,andprocessi ng;
JJ -
11. National Parli an areAof the public domainessentiallynaturalr,vilclerness,
34 scenic,or historic in characterrvhich has been withdrarvnfrom settlement,
35 occllpancv.or anv form of erploitationexceptin conformity u,ith an approvecl
36 management plan and set asideerclusivelyto conservethe areaor preservethe
JI scenery,the naturaland historicobjects,wild animals,and plantsthereinmainly
38 for the pltrposeo1'biodiversity conservation and/orhumanenjoyment.
39 mm. Native title - pre-conquest rightsto landsand clomainsr,vhich,as fur bacl<as
40 memoryreaches, havebeenheld Lrncler a clairnof privateorvnership bv ICCs/l[,s.
PaqeB of43
1 have neverbeenplrblic landsand are thus indisputabll, pl'eSLrmeclto havebeen
2 heldthatwav sincebeforethe SpanishConqLlest;
J nn. Natural lrorest- forestscomposedof indigellollstrees,not plantedby man,
4 whosestrttcture,functions,and dynamicshave beenlargelythe resultof natural
5 succession processes
0 oo. Natr-rral Parl<s - is a relativell'lrrgeareanot materiallyaiterecl
by humanactiyity
7 rvhere extractive resoLtrceLlsesare not allor,vedancl maintainedto prolect
8 outstanding naturaland scenicareasof nationalor international significance for
9 scientific.educational andrecreational use:
l0 pp. Open-pitmining- Ertractingmetaloresandmineralsthat lie nearthe surfaceby
11 removingtile overlyiugtnatet'ial and brealcing
and loadingthe ore.Also knownas
t2 open-cast m ining:open-cr-rt minir-rg;
13 qq. Ore - a materiaithat containsmineralsin sr-rch quantitiesthat it can be mined
t+ atrdrvorl<eci conrtnerciallv to extractthatrnineral.The mineralis r:suallycontainecl
t5 .ll chemiclr'coinbinatiotr r.''ithsolne other elementin adclitionto variclus
16 impr-rrities;
l/ rr. Pollution control and infiastructuredevices infi'astructnre, machinery,
18 eqr-ripment and/orimprovements usedfor imponncling" treating.or neutralizitrg,
19 precipitating. filtering.convevingandcleansing mine indr-rstrial
20 as u'ell as eliminatinqor redr-tcing hazarclons
effectsof soliclparticles.chemicals.
21 liqtridsor otherharmfulbyproducts andgasesemitteclfrom any facilitygtilizecli1
22 miningoperations for theirdisposal;
L) ss. Privateland- any landbelongingto anvprivatepersonwhich includesalienable
L+ and clisposablc lanclbeing claimeciby a holder,claimant,or occupantr,vhohas
25 alreadvacqtrirecl a vestedright theretounderthe law, althoughthe corresponding
26 ceftillcate or evideltcc o1'titleor patenthasnot beenactuallyissued;
27 tt. Processing incltrdesall treatmentan ore receivesafter its extractionancl
28 beneficiation.rvhich involves changesin the chemicalnature of the minecl
29 minerals;
30 ttu. Progressive relrabilitation - rehabilitation
whichinvolvesthe stagecl treatmentof
JI disturbed areas dr-rringexploration,construction/clevelopment and mining
JL operations
33 vv. ProtectedAreas- identifiedportionsof land and water set asideby reasonof
34 tileir ttniquepltvsicaland biologicalsignificance, managecl to enfuance biological
35 d iversity'anclprotecte'cl againstdestructive humanexploitation;
36 ww. Protectedlandscapes/seascapes areasof national sigrrificancewhich are
37 characterized by the harmoniousinteractionof man ancllanclu4rile providilg
38 opportrrnitiesfor public enjoymenttlrrough recreationand tourism rvithin the
39 normallifestyleandeconomicactivityof theseareas

Page9 of43
l xx. Qtrarryresollrces- anv common rock or other mineral substances as the Director
2 of the Mines and Geosciencesmav declareto be cluarryresoLlrces sucl as, but not
J linrited to. andesite,basalt.congiomerate.coral sancl.diato:lacgollsearth, diorite,
4 decorativestones.gabbro.,granite. limestone,marble, marl, red burning clay for
5 potteriesand bricks, rhyolite, rock phosphate,sandstone,serpentine,shale, tuff,
6 volcanic cinders, and volcanic glass, Provided, That such quarry resollrcesdo not
7 contain rnetals or metallic constituentsand lor other valuable minerals in
8 economicalll' rvorl<ablequantities,Provided./i.trthcr", That non-r.netallicrninerals
9 such as kaolin' feldspar,bttll quaftz, quarlzor silica, sand anclpebbles,bentonite,
l0 talc, asbestos,barite. gypsLrm,banxite, magnesite,dolomite, mica, precious and
ll semi-preciottsstones.and other non-metallicmineralsthat may later be cliscovered
12 and the Director declares the same to be of economically workable
IJ qtrantities.sirall not Lreclassifiedunderthe categoryof quarrv resollrces;
14 y)''. Qttarrvit"lg- process of ertracting, removing ancl disposing qlrarry resources
t5 for-rndon or underneaththe surfaceof privateor public lancl.
t6 zz. RegionaiDirector - the regionaldirectorof any mines regionaloffice;
17 aaa. RegionalOffice - an-yof the mines regionaloffices;
18 bbb. Recycling - shall refer to the treating of r-rsedor waste materials through a
l9 process of mal<ing thern suitable for beneficial use and for other purposes,ancl
20 includes anv process by whfch solfd u,aste materials are transformed into new
21 products in sttch a manner that the original productsmav lose t'helriclentity,and
22 u'hich nlav tre trsedas ra\v materialsfor the procluctionof other gooclsor services:
Provided, That the coilectfon, segregationand re-Lrseof previously used packaging
) A-r
./- materialshall be deemedrecyclingunder the Act.
25 ccc. Rehabiiitation - the Drocessby r,vhichthe land lvill be returneclto a form ancl
26 prodtrctivitvin confci'ltritvri'itir a prior'lancluse plan inclr-rciing
a stableecological
27 state that cloesnot ccntribtrtesubstantiallyto environmentalcleteriorationancl is
28 consistentrvith surroundingaestheticvalues;
29 ddd. Remediation- removal of pollution or contaminantsfrom environmentalmeclia
30 for the generalprotection;
eee. Rernining- maximizing and recoveringthe remaining minerals
from the reiects
JL or rvastesof previor:smines and mining operations;
fff. Restoration- where tire intent is to recreatean ecosystemas close as possibleto

J+ the original rvhich eristed at the site, rvith most of the structureand procluctivity
35 m a t c h i n gt h a t o f t h c o r i g i n a l e c o s y s t e ma, n d m o s t o f t h e o r i g i n a l b i o d i v e r s i t y :i n
36 time ecologicalprocessesand firnctionswill rnatchthoseof the original forest;
)l ggg. Small-scalemining - mining activitiesu,hich rely heavily on manual labor r-rsing
38 simple implements and methods ancl do not use explosives or heavy mining
39 eqtripment.primarily cngage in for sr-rstainable living. Impacts from small-scale

Pasel0 of43
I l n i n i n g s h r l l n o t b c l r r g e - s c a i co
. t i r e r $ ' i s et ,h e m i n i n g a c t i v i t y s 6 a l l b e d e f i n e 6a s
2 l a r . " e - s c am l ci n i n g :
3 h h h . S m a l l - s c a l em i n i n g p e r m i t - p e r m i t i s s u e cf lo r s m a l l - s c a l em i n i n g
4 iii. Strategicminerals- mineralsneedeclfor nationalclevelopment
5 lilii- Taifings Disposal Svstem or Tailings Placement- t]re rnethod rvhereinthe w:lste
6 from mininq operationsare dnmped,placed,or clisposecl.
7 kkk. Traditional small-scalemining - small-scalemining r-rsing traclitionalmeansand
B withor-rtthe Llse of chemical or mechanized extraction and separation means,
9 methocls.implernel"lts. ancl/orequipment;
10 111. WatershedcontinLlllm- shall refer to an areaconsistingof the r,r,atershed and its
II divide irrclr-rdingits connection fi'om the headr,vaters to the reef or a land area
12 drained by a stream or a fired body of r,vateranclwith tribtrtaries6aving a common
l3 otrtlet for sttrface runoff. It is the system by which the mining-affected
14 commllnitiesshall be determined1'ollowingtheclrainageof a streamor firecl boclv
15 ' of water with tribLrtarieshaving a common outlet for sr-rrface runoff.
16 mmm. Wildlife - undomesticated forms anclvarietiesof flora and 1buna.
20 SectionI8. Autllorif)' of the Bureau.The Minesand Geosciences Bureaushall be a
21 scientificresearclrinstitutionunderthe Department
of Scienceand Technology(DOST),
22 primarily conducting and developingresearch of mineral resollrcesancl mining
23 technologies and trainingoI localcornmunities.localgovernment unitsanclincligenor-rs
24 peoples. It shallalsoregulatethe operationso1'persons
involveclin miningactivities.
25 shall also work with the Multi-SectoralMineral Council in the monitoringof minins
26 activities.
28 Section19. RegionelOflices.The Bnreaushallhaveas mAnvregionalofficesin the
29 countryas may be cstablislred
by the Secretary.
the recommenclation
of t6e Director.
3l Section20. Bureau as repository of information.The Bureaushall be the centr-al
32 repositoryof informationregardingminerallands,resollrces, permits,studiesand other
33 informationrelevantto the operationof a mine, irrclucling
the necessary requirements
34 whicha contractoris obligedto submit.All othergovernmental officesand otherbodies
35 createdunder this Act shall copy fr-rrnishthe Bureauof other inlbrmationrelatedto
36 mining.

iS Section2l . Rccorcling System. There shali be establisheda national and regional

39 filing and recording system. A mineral resollrcedatabasesystem shall be set up in the
40 Bttreaurvhich shall inclltde,among others,a mineral rights managementsystem.

P a g e1 1 o f 4 3
2 Section22. Public:rtion.The Bltreaushallpublishat Ieastannuallya rnineralgazette of
3 nationu'idecirctrlationcor-rtainil-tg
I'r-]ongothcrs,A cLlrrentlist o1'mineralrights,their
4 locationin the map,miningrr,tlesanciregr:lations,
5 otherinformationrelevantto mineralresources development.A systemof publication
6 fundshallbe includedin the resularbudsetof the Bureau.
8 Sectiorr
23. Burc:ru to cottciuct erploration activities. Exploration of mineral
9 resourcesshall be exclusivcilz ancldirectlyundeftaken
by the Statethroughthe Bureau.
10 In no caseshall this l'r-rnction
be clelegatedor contractecl
or-rtto privatecorporations
I1 persons.
I3 Section24. Non-invasiveerploration. Explorationactivitiesshall oply be non-
14 invasivesuchas, bttt not lirnitedto seismic,gravity,magnetic,electromeganetic,
15 inducedpolarization,
radio-wave andelectroseochemical.
17 Section25. Conscnt.The Bltreattshellnot enterintoany privateiar-rds forthe pllrposes
18 of explorationactivitiesr,vithoutthc r,vritten
consentof the lanclowner,
possessor and/or
l9 occupant,or the FPIC of the ICC/IP and paymentof jr-rstcompensation for the r-rse
20 property. Neithershallthe Bureauenterinto anv part of the ancestral domains/lancls of
21 ICCs/lPsrvithouttireir free anclprior inforrnedconsent.Fufiher.the Burear-r s6all not
22 enter into any distributedland ttnclerthe Comprehensive Agrarian Reform Program
23 within in the l0 yearsprohibitedperiodo1'thesaidprogram.
25 Section26. Orvncrship of ICCs/IPs. Mineral resolrrccs rvithil ancestral
26 'domains/ancestral lands arc the collectiveprivatepropertyof the incligenouscultr-rral
27 comlnllnities/indigenotrspeoples(ICCs/lPs).The management of sucfimineralresolrrces
28 shallbuild on the irrdigenouslcnorvledgesystems andpractices.
30 Section27. Free, prior anclinformetlconsent.No miningactivityshallbe colductecl
31 r,vithinthe ancestraldomaitrs/lands
of ICCs/lPsrvithouttheir iree, prior and inlbrmed
32 consent(FPIC).in acldition
to the conditiorrs
setfor undersucceedins sections.

;; S e c t i o n2 8 .
When ancestral clomain is not formally recognized. When ancestral
35 domain is not coveredby a Cer-tificate
of AncestralDomain Title/Certificateof Apcestral
36 Land Title (CADT/CALT), or is co,,',ered
by a differenttitle issgeclin favor of membersof
37 the ICCs/IPs,mineral resoLtrcesslrall neverthelessbe manageclby the ICCs/IPs concerned
3B when it can be presltmedthat the area is parl of ancestralclomain. An area is presumedto
39 be parl of ancestraldomairrby'virtue of historicrights anclself-clelineation.

Page12 of ,13
, Section2g. \V;ren ICCs/IPs displaceclfrom ancestral domain, and lvhen ancestral
2 domain is already covered by other titles emanating from
the state other than
3 CADT/CALT. Native title over ancestralclomainsr-rbsists notwitlrstandingthe fact that
4 the ICCs/lPs tvho hold sttch native title have been displacecitherefrom
or that such
5 ancestraldomains have been occttpieclby other personsor corporations
rinder another
6 ciaim of title emanatingfrom the State. In such cases,ICCs/lps shall
continue to own
7 suchmineral resollrces.
9 Section30. Questionson the validity of FPIC. In instances thatthereareqlrestions
l0 the legalitvor validity of the issr-rcclfi'ceprior and informedconsent,mining operati'ns
l1 shallnot be allowedto be conclucted in the ancestral domainsor lanclsof the ICCs/lps
12 r'vithotrt
the final resolutionof suchquestionon the legalityor validityof the IrplC.
l3 Section31. Orvnershipof the State. The rnineralresources founcloutsideanceslral
14 domains/lands shallbe or'vnedby the State.The Stateshallenslrretiratthe managernent of
15 mineralresotlrces shall be primarilyfor the benefitof the local communitiesi' r,vhose
16 territorythe sameshall be found. Any mineralsextractedshallbe solely
usedfor local
l7 indtrstries
consistent rvith the MineralsLltilizationFramer,l,orl<. The Statemay directly
l8 undeftai<edeveloptnent. trtilizationatrclprocessing of rnineralresoLlrces or it may enter
19 intomipe'rl ro''r'o'.'.'arrr5
11ri1lteligibiepartiesprirsuant to the provisionsof this Act.
21 Section32. Inventory of mineral resources. The Br-rreau shallidentifyandprovidean
22 inventoryof the availabler.rineralresollrces,includingthe minc tailings withir-r
23 cottntrv. It shall sttbrnitto the DOST a reporl rvhich shall contain the l.ollor,vins
24 information:
26 a. theclassification of minerals;
27 b. the qualitl,andgradeof the ore;
28 c. the potentiai rnincllfe:
29 d. the geologicaldescription of the area;
30 e. the economic viabilityof minetailings;
3l f' whethertheareais a l<eybiocliversity areaor if it is a criticalhabitat
32 g. andall otherrelevantinformationnecessafy for potentialmineralinvestments.
a /.,1

;; The process for exploration and/or approval for a mining permit shall not commence
35 without the said inventorv.
37 Section33. Iclentification of st'ratcgicminerals. The Bureau shall conductresearches
38 and studiesprior.to any mining operationsto identifz strategicmineral resources.
39 mineral resollrcestl-ratshall be neeclecl
for local industriesshall be rninecl.

Page13 of43
I Section34. Demarcation of mineral areas. The Bureau shall clemarcate
2 bottndaries of all areas identified as containins commercial quantities
of mineral
3 resollrccson the ground.
5 S e c t i o n3 5 . B a s e l i n c i n f o r m a t i o n o n r v a t e r s h e d c o n t i n u u m s . T h e
6 informationon all u'atershecls in the countrv shall be requireclanclrnacleavailableto the
7 p u b l i c .o n l i n e a s m t t c h a s p o s s i b l eN
. o m i n i n g p e r m i t s h a l lb e i s s ' - r eqd, i t h o u tt h i s b a s e l i n e
8 information.
l0 Section36. Affected local communify ancl local government unit. For the pr-rrposes
11 of this Act. the afl'ected local cornmunity ancl the affected local government unit
12 , defined in relation to the u'atershcclcontinuurnr,vhichis potentiallv negatively
l3 b i ' m i n i n g o p e r a t i o n i r r t h e d e m a r c a t e cal r e a . T h e l o c a l c o m m u n i t i e s a n c l t h e l o c a l
14 governmentunits tl-rereforeare those l,r,hoare clependenton the watershedeco-system
I5 its resources
17 S e c t i o n3 7 . Establishment of Multi-sectoral Mineral Council. A Multi-sectoral
18 M i n e r a lC o u n c i ls h a l l b e e s t a b l i s h e d
l b r t h e p l r r p o s e so f t h i s A c t . T h e r e s h a l l b e a s m a n y
19 lVfulti-SectoralMineral CoLrncilsare there are r,vatershecl continuums r,vithclemarcated
20 mirreralareas.
22 S e c t i o n3 8 .
Pott'ers of tlre Council. The Council shall have the following powers,
23 among others:
24 a. To determiner.vhetheror not mining operationsshall be allor,vecl;
25 b. To deiiberateon proposalsfor mineralagreements;
26 c. To approvethe proposalfor mineralagreements;
27 d . T o m o n i t o r t l r e c o n c l u cot f m i ' i n g o p e r a t i o ' s ;
28 e. To establishits internal rules of procedurewhich are not contradictoryto
29 this Act:
3l S e c t i o n3 9 .
Composition of the Multi-SectoralMineral Council. The Multi-Sectonal
32 Mineral Council shall be composedof a representative
of the Bureal, a representative
33 from the DIINR, one representative fiom each of the affectecl provilcial
34 governments/indepcnclent componentcities/highlyurbanizeclcities. representatives from
35 peoples' organizationsas :raltv as the representatives of local qovernment units, the
36 affected ICCs/lPs withirr the rvatershed continuum ancl representatives from
37 marginalized sectors that will be greatly affected by the proposed rnining project. The
3B B u r e a us h a l l b e t h e c o n v e n o ro f t h e C o u n c i l .

I No mining operationsshall be allor,vedr,vithor,rt
the Council having been properly
2 convened.

4 Section40. Areas open to mining. The Councilshall have the porverto cletermine
5 whetheror not the land rvheremineralresources are found shall be openedto mining.
6 Areasmay only be operredto minirrgLrponthe unanimous vote of all the membersof t6e
7 Councilpltrsuantto the gr,ridelines
providedby this Act. In determiningwhetheror not
8 st'chareashallbe opcned.the fbllou'ingshallbe reqr-rirecl:
10 a. Reporlof the Bureauon the conclucted exploration;
II b. Existence o1'dorvnstreamindustriesfor the mineralresources;
12 c. Potentialenvironmental impacts,
13 d. Potentialculturalimpacts:
14 e. Conflictandr.iskassessrnent:
15 f. Potentialhealthinrpacts;
16 g. Potentialeconomicbenefitsof the developmentancl gtilizationof the
17 minerels;
18 h. Carrfins capacityandthe ecological profileof the area'
l9 i. ExistinqanCalternativelanclLrses
of the area,
20 .i Local sovernmentlanduseplan.
22 ,No mining applicationshall be allowedunlessan environmental economicauclitor
23 resollrcevalttationof the proposed miningarealravebeenconclucted or preparecl
24 acceptable valuationstandards. This audit or resolrrce
valuationshall be conducteclin
25 coordinationr,r,ithmultisectoralgrollp of experlsand commlrnitystakeholclers. It shall
26 includedeterminationof the expectedeconomicreturnsand the potentialnegative
27 impactsfi'ommining on thc enjovmentandexerciseof humanrights,culturalrights,and
28 on peaceanclseclrrity.A detailedstudymnst mentiontlte flora. faunaand environment
29 present in the miningclaimandthe impactof rniningoperations on the environment,t6e
30 possibleenvironmental degradation andthe attendantlossof subsistenceresollrces
31 There must be tnentionof existenceof sacredareasor areasotherwiseof cultural
32 significance andacldress tlic impactsof resourceexploitation
on indigenouspeoples.

tO T h i s i n f b n n a t i o ns h a l l b e a c c e s s i b l e
t o t h e p u b l i ca t a l l t i m e s .

;; Provicleclltov'ever,TItat in no caseshall the Co,,rncilopen the folloriing areasto mining:


,U a. IJead r,vatersol'lvatersheclareas;
39 b. Areas with potentialfor acid mine drainage;
40 c. Critical rvatersheds:

P a s e1 5o f 4 3
I d. Criticalhabitats:
2 e. ClirnateCisaster-proneareas;
3 f. Ccohazardareas;
4 g. Smaliislandecosystems;
5 h. Cultural sites,r,vhichmay inclr"rde, but not limited to, sacredsites and burrial
6 grounds;
I i. Traditionalsu,iddenfarmsanclhuntingerounds.
B j Landscoveredby the Comprehensive AgrarianReformLaw or RepublicAct No.
9 6657,asamended;
10 lc. Prirneagriclrlturallands,irrigableanclirrigatedlandsas definedby RepublicAct
1I No.9700;
12 1. Culturalproperlyenllmerated undertheNationalCr-rltural I-leritage
Act of 2009or
13 RepublicactNo. 10066;
14 m. Key biodiversity areas:
l5 n. I{igh conflictareas:
16 o. The Provinceof PalarvanpLlrsuant to RepublicAct No. 7611 and other areas
17 coveredby localordinances;
18 p. In militaryand othergovernment reservations,
exceptuponprior writtenclearance
19 by the government agencyconcerned;
20 q. Near o'Lntclet'nLrblic or privatebLrilclrngs.
cemeteries. archeological and historic
21 sites, bridges. highrvavs.rvaterways,railroads, reservoirs,dams or other
22 infi'astrr-rcture
projects,public or privateworl<sinclLrding plantationsor valuable
23 crops,except Llponwritten consentof the governmentagencyor privateentity
24 concerned;
25 r. In areasexpressly prohibitedb:,'lar,r,or
26 s. In areascoveredby small-scale minersasdefinedby law unlessr.vithprior consent
27 of the small-scaleminers,in which casea royaltypaymentLlponthe utilizationof
28 mineralsshallbe agrecdr,rpon by the pafties,saidroyaltvforminga trustftrndfor
29 thesocioccc'romic dcvclopment of thecorlrnLlnityconcernccl: ancl
30 t. Old grow'tlt,naturalor primaryforests,r,vatershed forestreserves, wildernessarea,
31 mangrove forests, mossv forests, national parl<s, protection forests,
32 provincial/municipal forests,parks,greenbelts, gamerefugeand bird sanctuaries
33 and their respectivebr-rfferzones as definedby law, in areascoveredby the
34 NationalIntegrateclProtected Area SystemCNIIPAS) nnderRepublicAct No. 7586
35 andthoseexpressly prohibitedby otherlaws.
3l The determination rvhetheror not the slme areabsolutelyclosedto rninir-rg
38 be limitedto the eristenceof a lar,vor ordinance
declaringit as protected
areas,but alsoto
39 the actualuseof saidarea.
I Section4l. Manner of voting by the Council for opening an area to mining.
2 Sections 26 and27 of the Local Government Codeon consLrltation and consentshallbe
3 strictlyadheredto. Local governrnent ur-rits
at all levelsshallconductmandatoryp'blic
4 ltearingsr''u'ith
thc rffectecllocal communities,to be carrieclor-rtr,vithintheir respective
5 territories and presenting thoseenlrmerated r-rncler
7 After the inventoryof the existingminerals,the formulationof a mine plan. anclthe
8 existence of'the baselineinfbrmationof the particularr,vatershecl area.the Bureaus6all
9 convene the Council.
ll The Councilshallthereafter respectivelyconvenetheirconstituents to determine whether
12 or nottheirrespective territoriesshallbe openeclfor mining.

14 Localgovernment units,ICCs/iPs.NCOs anclpeoplesorganizations, shallenslrret6atthe

l5 Bttreattshallcomprehensively explainthe goalsandobiectives of the projector program,
16 its negativeand positiveimpact Llponthe peopleand the communitvip terms of
17 environruentalor ecologicalbalance, andthe measuresthatwill be unclertal<en
to prevent
18 or minimize the aclverseeffects thereof. Thereafter,the approval of the respective
19 sanggunions of the aflbctedlocal governmentunitsshallbe requiredin accordance to the
20 sentimentof the peoplesof the local governmentunit as a resultof the consultations
21 conducted.
23 Provicled,That the al'lbctedlocal governmentunit representatives shall meet ancls6all
24 relay the decision of their respective constituents to the provincial
25 government/independentcomponent cities/highly urbanized cities. The
26 provincial/component cityihishh/urbanizecl
city government representatives6allsit in the
27 Counciland shallcarrt,the resultof the vote of all the alfectedlocal government units
28 withinthe provinceresnltingI'romthe processprovidedin the preceding paragraph of t6is
29 Section.There mttst be a ttnanimousvote arnongthe local governmentunits for the
30 pllrposeof openinga particr-rlar
areafbr rnining.IrailLlreto reaclra unanimousvote 1br
3I openineshallmeanthatthe arll is closedto rninine.Theproceeclirrss shallat all timesbe
32 recorded.

34 Provided moreover, That in case there are affectecl incligenous cultural

35 communitiesiincligenoLls
peoplesr,r,ithinthe rvatershecl
continulun. they shall also bring
36 tire commttnitv's votc to the Council after r-rnclergoing
their own processesin accorclance
37 with their respectiveirrcligenolrs
political structure,free from any external manipulation,
38 interlbrence,coercion ar-rdother analogousacts, ancl obtainecJafter fully disclosingthe
39 intent and scope.inclttdingthe positiveand negativeimpactsof the activity, in a language
40 and processunderstanciable
alrclacceptableto them.

Page17 of ,13

2 Providedfinali\,, That anv member of the communib/ may file a protest

\,viththe Council
J during this period of consultationsanclcletiberations
for the Council's consideration.

5 Section42. Viol:rtion of Section 51. Local government officials w5o

6 administrativellifolrnd to violate the prececlingsectionanclSection 5l of this
.| Act vis-a-
vis the pertinent sectionsof the Local GovernmentCode shall be removed
from office
8 and perpetuallv disqLralifiedfi'om holcting any elective or appoirrtive
position in
9 government, its divisions, strbsidiariesartd any government ownecl
and controlled
l0 corporations.
12 Section'i3. Pool of constrltants.There shall be a pool of inclepenclentconsultantsthat
IJ may assistthe Iocal goverllment units, local communitiesor ICCs/lPs rvith regard
to the
14 t e c h n i c aa
l s p e c t so f m i n i n g .
1 6 S e c t i o n4 4 . P u b l i c a t i o n o p o s t i n g a n d r a c l i o a n n o u n c e m c n t r e q u i r e m e n t s .
1 7 d e c i s i o no f t h e C o r - r n c isl h a l l b e p u b l i s l r e cbl y t h e B u r e a u i n t h e l o c a l n e w s p a p e r
in the
l8 local language,shall be announceclon the local radio programsfor not less
than six (6)
1 9 ,tveeks and notices shall be distributeil l,viclelyin communities.The notice
2 0 relevantinfonnation shall lil<er,vise be posteclin conspicuousplacesfor the informationof
2 1 the generalpublic and shall be announcedduring the local market day.
26 Section45. Motles of Mineral Agreement. A mineral agreementmay only take the
27 follor,vingforms as herein definecl;
29 (a) Mirrcral production sharing agreement is an agreement where the
30 Covernment grantsto the contractorthe exclusiveright to conduct mining
JI operations u'ithin a contract area ancl shares in the gross oLltpllt. The
JL contractor shall provide the financing, technology, management and
JJ personnelnecessaryfor the implementationof this agreement.
34 (b) Co-proclttctionegreement- is an agreementbetween the Government
35 the contractor r.vhereinthe Government shall provicle inpr-rtsto the mining
36 operationsother than the mineral resoLlrce.
') -f

(c) .loint venture agreement- is an agreementrvherea joint-venture

38 is organized by the Governmentand the contractorrvith both partieshaving
39 eqtlity shares. Asicle from earnings in equity, the Government shall be
40 entitledto a sharein the grossoutput.

PagelB of43
2 In no caseshall Financialor TechnicalAssistance Agreements, or any ot6er similar
3 agreements,contracts,and/or executiveissuances grantinglicenseor permissionto
4 erplore.developancl/orL;'riiize
be awarcled
to foreignpersons.
6 Section46. D)igibilit1'. Odi' Fitipino citizens or carporatrbnssxty percent
(60%) of
7 whose equity is orvneclor controlledby such citizensshall be
allorvedto conduct
B development.
utilizationanclprocessins of mincralresourceswithir the countrv.
l0 Section
47' Idenfification of mining projects. With the unanimous
vote of the
l1 Councilto open areas1br mining operations, tlre Bureaushall preparethe necessary
12 inibrmationsheetson tite siiiciareaibr potentialinvestments.
The Bureaus6allcall for
13 proposals
to developtirenri:inqarea.
l5 Section43' Pre-screeningof mining proposals.Mining proposals
shall be pre-
16 screened
by the Bttrealtuponthe submission
of interested
parliesof the followins:
18 a. clemonstration of financialcapability;
19 b' provensocialand environmental trackrecord,incluclingthoseof its officersand
20 directors;
21 c. clearcorporate structureandor,vnership;
22 d' proofof phvsicalofficeandoperations of theproponentivitirinthe philippines;
23 e. identificationof potentialinvestors;
24 1'. miningpro-iect ftasibility:
25 g. miningoperation rvorl<plan;
26 h. proposed operation.m,iigationanclprevention methocls
27 i. capacitv to process minerals;
28 j intentto developdor,vnstream industries;
29 l(. intentto contribr-rte
to localcommlrnitydevelopment.
30 ' l' Submissionof the En'u'it'onmental and SocialImpactPreventionand Mitisation
3l Plan

;; The Councilshallfir the minimumcapitalizationthat

any biclcler
on its
34 determination
of the expectedeconomicreturnsanclthe potentialnegativeimpacts
35 mining,uponreference1oan ilrdependent
minimum capitalization.
37 Section49. EnvironmentalanclSocialImpact PreventionanclMitigation plan.
3B contractorshall submitan Environmental anclSocialImpactpreventionanclMitigation
39 Plan (ESIPMP)containirrsthe means.rnethods,processes and scheclr-rle
by which t6e
40 contractorshall condtrctits operationsanclpreventor mitigatenegative
Page19 of 43
I and socialimpacts.SocialimpactshallinclLrde possibleimpactson the epioyment and
2 exerciseof humanrights,culturalrights,and on peaceand security.The ESIpMp
3 also includenot only plans relativeto mining operationsbut also to rehabilitation,
4 regeneration,restorationof mineralareas,slopestabilizationof mineclor-rtand tailings
5 coveredareas,aqtlacultttre.r.r,atershecl
development, lvaterconservation,relocationand
6 " retttrno1'displaccci
populatiotr, provisionof alternative
7 development.
9 The ESIPMPshall also containa SocialDevelopmentManagernent Plan whic6 shall
l0 lilcewisecontainthe plans of the proponentfor tlre clevelopment of t5e community
ll throughthe establishmentof infi'astluctures
anclprogramsthat shallbe sustainable
12 aftertheclosr"lre
14 Section50. Pre-qualification.The Bureaushall thereaftericlentili the top t6ree(3)
15 proposals
andshallrecotnmenclthe sameto the Councilfor detiberatior-r.
17 Section5l . Deliberation of the proposals.After the Bureau'stransmittalof its
18 recommendations to the Counciltoqetherr,vithall the sr-rbmittecl
for t6e pre-
19 qualificatiorr.
the Cotrncilshall initiatetlre cleliberation
processof the pre-qualifiecl
20 proposals.
22 Immediatelythereafter,Sections26 and 27 of the Local GovernmentCode
23 consultation and cotrsentshalibe strictiyadheredto. Localgovernment unitsat all levels
24 shall conclttctmanclaton'pr-rblichearingsi,r,iththe affectecllocal commynities,to be
25 carriedout u'ithin tireir respectiveterritoriesand presentingthose enumeratecl uncJer
26 Section48. Local government units,ICCs/lPs,NGOs and peoplesorganizations, s6all
27 enslrrethat tlre mining applicantshallcomprehensively explainthe goalsanclobjectiyes
28 of the projector program.its negativeanclpositiveimpactLrponthe peopleanclthe
29 commllnitfin termsof social,culturaland environnrental or ecologicalbalance,and the
30 measllresthat will be undertakento preventor minimize the aclverseeffectsthere6f.
31 Thereafter,the approvalof the respectiv e sanggunians of the affectedlocal government
32 units shall be reqtriredirr accordance to the sentimentof the peoplesof tle local
33 qovernmcnt uttitasa lcsultof theconsirltatiolts
35 Provided,That the affectecllocal governmentunit representatives shall meet and shall
36 relay the decision of their respective constituents to the provincial
37 government/independent component cities/hirhl1,
urbanized citiesthrouehthe sr_rbmission
38 of the mintttesof rneetingdeclaringtheir decisionwith signatures from t5e constituent.
39 The provincial/component city/highlyurbanizedcity government representatives6allsit
40 i'nthe Cottnciland shall carrythe resultof the vote of all the affectecl
local sovernment
Page20 of43
1 units within the province/inclependent
componentcitylhighly urbanizecl
city resulting
2 from the processprovidedin the preceding
of this Section.

4 In deterrnining
which proposalis acceptable to the people,a majorityvote of the local
5 governmentunits r,vithinthe province/independent
componentcitylhighly urbanizedcity
6 shallbe requircd.
8 The affectedICCs/lPsshalialsocleliberate
on the proposalsin accorclancewith theirown
9 systemsand processesfi'ee frolx any exterrralmanipulation,interference,
l0 otheranalogous acts,and obtainedafterfully disclosingthe intentanclscope,incl,cling
II the positive and negative impacts of the activity, in a language
and process
12 understanclable
andaccept:ibleto them.
14 After the respective
proccsses are compliedwith, the Councilshallthenmeetandclecicle
l5 rvhichproposal,if any, is mostacceptable anclconsistent with their own socio-economic,
l6 ,environmental and cultlrralprograms anclshallnotifi the Bureauof the chosenproposal.
18 Section52. Posting :rncl Publication Rcquirement.After notice,the Bureau
19 notifythe proponent
of the acceptecl
proposalanclcausethe publicationand postingof the
20 acceptedproposal.
22 Provided,That anv memberof the communitvmay contestthe clecision of the Council
23 within six (6) rveel<s
Llponthe postinganclpublicationof noticeof t6e acceptance of the
24 proposal in the mannerprovidedin Section4l.No miningoperations shallbe allowedto
25 be condLrcted pendingany actionquestioningthe legalityor valiclityof the proposal.
27 Section53. Issuanceof the pcrmit. After the six (6) weeksfrom the clate
of the
28 postingandpLrblication, if no contestis file, the Burear-r
shallissuea permitin accorclance
29 with thedecisionof tlrecouncil on tlrervinningproposal.
3l Section54. EnvironmentatanclSocialImpact ComplianceCertificate.The mining
32 proponentshallbe isstredan Environmental and SocialImpactCompliance
33 the Bureaur,viththe approvalof the cor,rncil.
.', A
35 Providecl r-roamendtnetrtsto the conditions of the Certificate sl-rallbe
36 sttch proposedamendmentshall rvork for the benefit of the commLrnities,
and in which
37 case.the Cor-rnciland the Bureau shall be notified of any amenclments
to the ESIpMp and
38 that the former shor-rldgive their consentto the same,after the proponent
explaining in
39 detailthe reasonfor sttchamenclmentand the possibleimpactsanclconseqlrences
of these
40 amendments.

Page2l of 43

2 Provideclftrther, That any violation of the ESIPMPshall callsethe cancellationof'the

3 Certificate.
5 Section55. Marimum Areas for Minernl Agreements.The maximum areaurrder
6 mineral agreementsthat a nersoncan lrolclaI any one tsmt -q-lral,l
!-,e determinedbj,flrc
7 Council,ProviclcdThat the contractareaper agreementshall not exceedfive hunclrecl
8 (500) hectares,Providedfurther, That no personshall be awarcledin excessof the total
9 contractareaof sevenhundred-fifty(750) hectaresin any given watershedarea.For the
10 purposes of this Act, the prohibitionon the rnaximumareashallalsoincludecorporations
11 thatshallhavecommondirectorsor significant shareholders.
13 Section56. Term of Mineral Agreement.The termof the mineralagreement s6allbe
14 equivalentto the mirrelife plus an adclitional
five (5) years1brthe rehabilitatiop
of the
l5 miningal'ea.Prot,iclecl,
That in no caseshalla MineralAgreementhavea term beyopil
16 fifteen (15) years, Provided Jhrther, That the contractor sftall alreacly include
17 rehabilitation/remediation
of the miningareawithintheten-yearterm.
19 In no caseshalla Mineral z\greement be extencled just car-rse
r,vithout to be determineci by
20 the Councrl,Provided,That the extensionshall not caLlsethe term of the agreementto
21 exceedthe fifteen ( I 5) vear term mentionecl in the prececling
section. Proviclecl
22 Thatfor the pllrposes of this act..iustcauseshallmeanactsor eventsresgltirrgf,r.om \\/ar,
23 lbrcema-ieure or tllosebeyondthe controlof the miningproponentnot attr-ibutable to the
24 same.
26 Provided.finally,That in no caseshallmineralagreements
be renewedafterthe expiration
27 "of the
29 Section57. Prohibitionon open-pitmining method.Open-pitminingmetSocl
for the
30 extraction
of mineraloresshallbe prohibited.
32 Section58. Flilure to initiateminingoperations. Failureto initiateminingoperations
33 in accordance witir the r.vorl(programrvithintrvo (2) vearsfrom the awarclof the mineral
34 agreement shallcattsethe cancellation of the mineralagreement. The contractorthereafter
35 forfeitsthe value of the improvements madeupon the lancl.The contractoranclother
36 corporationsrvlto are also rltn bv the sameclircctorsanclol'ficersare thereafterbannecl
37 from biddingto condr-rct mining operations for ten (10) yearsafterfailgreto initiateits
38 miningoperationsin accorclance rviththe r,vorkprogram.

Page22 of ,13
I Section59' M:rndatoryconsultations in eachmining phase.Manclatory conslrltations
2 rvith afltcted conrmunitiesslrall be uncleftakenin each phaseof mining operalion:
3 " erploration,extraction.processing,
anclmine closureto ensurethat the peoplesshallbe
4 informedof the proposedpiansand methodsthatareproposedto be conductecl.

; Section60. FPIC of ICCs/IPs on each stage of operation. The free

ancl prior
7 informedconsentof the ICCs/lPsshallbe reqr-rired
at eachandeverystageof the mining
8 operations.
Freeand prior informeclconsentshallbe securedin accordance with the laws,
I practices
and processes of the concerned
ICCs/lPs.The violationof anv of the conditions
l0 imposedby the ICCs/lPson the contractorshall callsethe cancellation of the mineral
II agreernent.
Incltrcledin this processis the explanationof the rights of ICCs/lpsof
12 ovnmership
14 Section61. Consentof private lando\yners.No personshall be allo'uved entrv into
l5 private lands witlrout the written consentof the lanclorvners,
or lar.rf,l
16 occupants of the landand/orthe lrpic of theICC/lp.
18 Section62. Expropriation. Expropriation proceedingsshall be filed with the regular
19 courtsto deterrnine
talcingof privatepropertyfor miningpllrposes shallmeet
20 a publicpLrrpose
anclto determine jr_rst
22 Section63. Mtrlti-partite Monitoring. The Council shall form a multi-partite
23 monitoringteamto monitorconlpliance by the contractor
of the termsanclconclitions
24 the mineralagreement.It may concluct ocularinspections
o1'thecontractareaat anytime
25 of the day arrdnight.It shallalsoinspectall tirebooksof contractors anclreferthesameto
26 independentatrditors.The Multi-partiternonitoringteam ancl/orthe Bureau
27 confiscatesurety, performanceancl guarantybonds posted tSroggh an order
to be
28 promulgatedby the Director. The Council,the Director or the local government
29 atrthorities mav cleputize. u'ltennecessary.any memberor Lrnitof the p6ilippineNational
30 Police,barangav.dul,vregistered nonqovernnlent organizatiotr
OJCO) or any qualified
3l person t o p o l i c ea l l r n i n i r r a
gc t i v i t i e s "
33 Section64. Withdrarval from the Mineral Agreement.The contractormay r,vithclraw
34 from tl-remineralagreement at any time for justifiablecausewith one (l) month,snotice
35 to the Bttreatt,
the Councilancl/orthe ICCs/lPs,andotl-rer government agencies as may be
36 providedby larv.The Council,in cooperation nith otherconcerneclgovermment agencies,
37 shall issttea clearatrce
for rvithclrau,al
upon certifyingthat the contractorhascompliecl
38 *itn otl its legalobligations.inclLrdingthe appropriate measures for mine closureand
39 rehabilitation.Fundsand bonclsrvhichhavebeenput up by the contractorin accordance
40 withthis Act shallbe forfeited.

Page23 of 43
2 Section65. Non-transferabilityof Mineral Agreements.In no case shall mining
3 rightsunclerthis Act be transferrable.
The contractorshallalsonotify the Councilanclthe
4 Bnreattof any strbstantialchangein the or,vnership and/or control of the corporation.
5 Violationof this pi'ovisicnshallcausethe cancellation
of the agreement anclforfeitLrre
6 assetsandequipment of thc contractor.
8 Section66. Access to Information. All contractorsfor mineral permits ancl
9 agreementsshallprovideinforrnationto affectedindigenous
10 andlocalgovet'nments.
Thc lbllorvinginforrnation,
amongothers.shallbe reqLrirecl:
1 1

12 (a) full disclosureof methodsand processes of mining

l3 , (b) full disclosllreof environmentaland socialrisks
14 (c) full disclosureof orvnershipstrr-rcture
15 (d) full disclosr-rre
of financial sollrces
17 All information and docltments related to proposals,mineral agreements,permits ancl
l8 m i n i n g o p e r a t i o n s h a l l n o t b e c o n s i d e r e dc o n f i d e n t i a l .
20 Refusal to srant access to this information shall be callse for the clisqualificationof
21 prospectiveproponentsor cancellatiorrof mineralagreementsand permits.
23 TheBureau.
of all relevant
nnderthisAct is mandatecl
24 srant accessto the public of any inforrnationin its cLrstody.Refusalor Llnnecessary
25 by the officers of the Bureau to give information shall be punishableby a fine of fifty
26 thousandpesos(Php 50,000.00)for every instanceof refusalor unnecessary
28 Informatiott reqttestcclby incligentsor rnarginaiizedsectorsshall be given to them for
29 free.

33 S e c t i o n6 7 . A p p l i c a b i l i q v o f R A 7 0 7 6 . S m a l l - s c a l em i n i n g s h a l l c o n t i n u e t o b e
34 g o v e r n e db y t h e p r o v i s i o n so f R e p r - r b l iAcc t N o . 7 0 7 6 o r t h e P e o p l e ' sS m a l l - S c a l eM i n i n g
35 Act of 1991, Provicled, That the ProvinciallCity Mining Regulatory Board shall be
36 composeciof the Governor or City Mayor' as chairperson,as the case may be, a
37 representative ii'om the DENR as co-cirairperson,one (f ) small scale mining
38 representative.one ( l) big-scale rnining representative,one representativefrom a
39 nongovernment organization r,vho shall come from an environmental group, one
40 representativefrom a people's organiz.ation(PO) coming from the marginalizeclsector,

Pase24 of 43
I and at least one (1) representativefrom the incligenous
communities, whenever
2 applicable,as members. The representativesfrom the private
sector. nongovernment
3 organization and incligenor-rscommunities shall be selected
by their respective
4 organizationsand/or communities, anclappointedby the PMRB or
6 Providedfurther' That the conduct of smali-scalemining shall
also comply r.vit6the
7 prohibitions and regr-rlations
establishedl-rcreinfor large-scalernining. Only qualifiecl
8 individualsand cooperativesmay apply for a small-scalemining permit.
10 S e c t i o n6 8 . M a x i m u m t e r m o f s m a l l - s c a l em i n i n g p e r m i t s . T h e t e r m f o r s m a l l - s c a l e
11 r n i n i n gp e r m i t ss l l a l l b e t h r e c ( 3 ) y e a r s .e x t e n c l a b lteo a m a x i m u m o f
fiftee' (15)vears.
l3 Section 69. Traditionaismall-scale mining within ancestralclomains.The Co,ncil
l4 shall condttctregularmonitoringactivitieswithin its jurisdictionto determine
if the
l5 provisionsof relevantlarvs are compliedrvith in traditionalsmall-scale
mining bv
16 ICCs/IPsr.,,itlrin
lB Section70. FPIC in small-scalemining. SnlalJ-scale mining wit|rin ancesttal
19 by anypersonshallalsorequirethe free,priorinlbrmedconsentof ICCs/lps.
21 Section71. Reqr-rircnrenl for an E,nvironmentalComplianccCcrtificatc. Small-
22 scalemining shall liker'r'ise
requirean EnvironmentalComplianceCertificate. AII small
23 scalerniningapplicants or proponents mustshowproofof compliance r.viththe termsand
24 'conditionsof its Environmental Compliance Certificate
(ECC) prior to t6e issuance of a
25 small scalemining permit.Irailr-rreto submitthis requirementu,ill resulti' the non-
26 issuanceof the SSMP.
28 Section72. Environmental measures in small-scalemining. The State
29 imrnediatelyaddressthe environmentaland health problemsin small-scalemining,
30 includingthe Llseof ltazlrdouscltemicals,such as rnercLrryand cyanide,
in the
3l amalgamation of gold by small-scale

31 Section73. Prohibition on the use of mercury.MercuryLrsein small-scale mining

34 shallbe proliibited.Tire Br-rreau
35 technologies in stnall-scale rnining incluclinglabor-intensive
36 protectionandph1'sical techniques of gold extraction

38 Section74. Multiscctoral Monitoring Tcam. A multisectoralmonitoring team sha.ll

39 be organizedto n'lor"litor
the SS\'lP permittec'scompliancervith the terms anclconclitions

Page25 of43
1 of its SSMPanciE,CC.The MMT shallconductocularinspectionsof the SSMp areaat
2 anytime of the dav andnightandshallhavevisitorialpowers.

4 S e c t i o n7 5 . A l t e r n a t i v e l i v c l i h o o c ls u p p o r t . T h e s t a t es l r a l l s u p D o r t h e i m p r o v e m e n t
5 o f t h e l i v e l i h o o col l ' s m a l l - s c a l e - m i n e rbsy e x t e n d i n gt h e s e r v i c e sf b r a c c e s s
t o o t h e rm o r e
6 viable and sustainableforms of livelihoocl,and, if the same is not possible,
the followins
7 supporlservices:
9 (a) accessto ;rinerals marl<ctsanclto fina'cing;
10 (b) facilitating partnershipr,vithmining cornpaniesor contractorsby,
among others,
11 r e q u i r i n gr n i n i n g c o m p a n i e st o b u y t a i l i n g s f r o m s m a l l - s c a l er n i n i n g o p e r a t i o n s
12 for filrtlrer processingor recycling;
13 ( c ) f a c i l i t a t i n gp a r t n e r s l t i p
a m o n ss m a l l - s c a l e
m i n i n g c o o p e r a t i v e sa;n d
14 (d) other incentivesto aftractinforrnalsmall-scaleminersto formalize their
16 Section76. Buying stations.The BangkoSentralng Pilipinasshallenslrethat
17 strtionsacqttiregolCfrom small-scalc
at prevailinginternational
l8 andprevailinq ercllangcratcsctb1'theBSPTreasury Departrnent on a clailv.basis.
23 Section77. Qrrarry resources n'ithin ancestral clomrins. Gathering of qlrarry
24 resoLlrces, sandand gravel,guanoand other organicfertilizermaterials,and gemstones
25 rvithinancestral domainsshall lil<ervisebe subjectto the free prior informeclconsentof
26 ICCs/lPs.ICCs/lPs:ncl thc governrnent shallbe entitleclto at leastten per cent( 10%)ot'
27 royaltiesclepencling on u'hetherthe resolrrces are for-rnclinsicleof or-rtsideancestral
28 domains. Permitssirallbe iimitedto a maximumterm of five (5) years,renewable 1br
29 like periodsbut not exceedinga total terrnof tr,venty
five (25) years,ancla maximllmarea
30 of five (5) hectares.

32 Section78. Quarry Permit. Anv qualifieclperson may apply to the provinciallcity

33 mining regulatory board Ibr a qLrarrypermit on privately-ownedlands except
34 domains and/or ptrblic lands for builcling ancl constructionmaterials such as
35 basalt, andesite. conglomerAte,tLrfl. adobe, granite, gabbro, serpentine,inset
36 materials.clav for ceratnic tiles ancl bLrilclingbricks. pumice, periite ancl other
37 materialsthat are extracted bv quarr,vingfiom the gror-rncl.The provincial governor shall
38 grant the permit after the applicanthas complieclrvith all the requirementsas prescribecl
39 by the rules and regr-rlations.

Page26 of 43
I The marimltm area rvhich a qualified person may hold at any one tirne
shall be five
2 hectares(5 has.): Provided, That ir-rlarge-scaleqliarry operations involvipg
cement raw
3 materials,marble. granitc. sand ancigravel anclconstructionaggregates,a qualified
4 and the governmentmav enter into a mineral agreementas clefinedherein.

5 A qLrarrvpermit slrril have a term o[ five (5) years,renevvablelbr Iil<eperiodsbLrt

n.t to
6 exceeda total ternr of trverrtv-five(25) years.No qLrarrypermit shall be issueclor granted
7 on anv area covered by a mineral agreement.
9 , Section79' Quarrv Fec and Taxes. A permitteeshall pay a qlrarry fee as provided
l0 ttnderthe implentctttingrulcs and regulations.Tire permitteeshall also pay t6e excisetar
11 as providedby pertinentlaws.
l3 Section80. Cancellationof Quarry Permit.A quarrl,permitmay be cancelled by the
14 provincialgovernoribr violationsof the provisions of this Act or its implementing
l5 and regtliationscl the [ertnsand conditionsof said pern'lit: Proviclecl,That beforethe
16 cancellation of sitchpermit,the holderthereofshallbe giventhe opportunityto be hearcl
17 in an investigationconducted for the purpose.
19 Section81. Commcrci:tlSrncl ancl Gravel Permit. Any qualifieclpersonrray be
20 granteda permit by the provincialgovernorto extractand removesandarrclgravelor
21 otherlooseor tlnconsolidated materialsoutsicleancestral domainswhich areuseclin tlieir
22 natttralstate,without r-rndergoing processing
from an areaof not more than five hectares
23 (5 has.)and in sttchqr-rantities
as mav be specifiecl
in the permit.

25 Section82. Industrial Send and GravelPermit.Any qualifiedpersonmay be grantecl

26 an industrialsandanclgravelpermit by the Bureaufor the extractionof sancland gravel
27 andotherlooseor Llnconsolidated materialsoutsicleancestral
clomains thatnecessitatethe
28 useof mecharrical processing covet'itrs
an areaof morethan five hectares(5 has.)at any
29 onetime. The permitshallhevea term of five (5) years,renewable for a Iike periodbut
30 not to exceeda total term of tr,venty-five
(25) years.

32 Section83. ErclrrsiveSencland Gravcl Permit. Any qualifiecl persor-r

may be granled
33 an erclusivesarrcl
thc provincialgovernorto qr_rarry
34 and qravelor otltet'Iooseor Lrnconsoliclatecl
materialsfrom public landsfor iris own Llse.
35 Provided,Thattherewill be no commercial dispositionthereof.
37 Section84. Government Gratuitous Permit. Any government entity or
38 instrumentality
maJ-be granteda gratuitouspermitby the provincialgovernorto extract
39 sand and gravel,quarry or loose unconsolidatecl

Pase27 of 43
1 neededin the constructionof br-rilding and/or infrastructure
for pLrblic,se or other
2 pLlrposesover an areaof not more than two hectares(2 has.)lbr a periocl
3 with saiciconstruction.
/ l

5 Section85' Private GratuitousPermit. Any ownerof landmay

be granteda private
6 grattritotls
permitby tlte provincialgovernorto extractsancland gravel,quarry
or loose
I unconsolidatedmaterialswithin his propeftv.
9 Section86' Guano Pcrmit. Any qualifiecipersonmay be granteda gLrano
l0 the provincialgovernorto extractand utilize loose Llnconsoliclated guano and ot6er
l1 organicfertilizermaterialsir.:any porlion of a municipalityr,vhere5e
lias establishecl
12 domicileotrtsideancestralclornains. The permit shall be for specificcavesand/orfor
l3 confinedsitesu'illr locationsverifieclby the Deparlment's fielclofficerin accorclancer.vith
14 existingrulesand regtrlatiorrs.
Proviclecl,Thatextraction cloesnot violateanclis consistent
l5 rviththe provisionsin the CaveConservation Act anclthe WilcllifeAct.
17 Section87. GemstoneGattrrering Permit.Any qualifieclpersonmay be granteda n.n-
18 erclusivegemstonegatheringperrnitby the provincialgovernorto gather
19 usefulasgemstones
in riversandotherlocationsoutsideancestral
23 Section88. Ore Transport Permit. A perrnitspecifyingtlre origin and quantity
24 non-processed mineraloresor mineralsshall be requiredfor their transporl.Transpor-t
25 permitsshall be issuedby the Bureau. The absence of a permitshall be considerecl as
26 primafucieevidenccof iliegalminingandshallbe sufficientcauseibr the
27 the oresor minet'alsbeingtransportecl.
tiretoolsancleqr-ripmentutilizecl,anclthe vehicle
28 containingthe same.
30 Section89. Tracl<Record. Only mining companies r,vithclemonstrated
3l good environmentaltracl<recorclin mineral processingshall bc allor,ved
to extract
32 minerals.The Cottncilshallencoltrage
to pr-rtLrpprocessing
33 communityr'viththe end in vier,vof generatingemploymentand cleveloping
34 dorvnstreamindustries.

3; Section90. Mineral TraclingRcgistration. No personshallengagein tire

37 mineralproducts,,eitherlocallyor internationally,
unlessregistered with the Department
38 of Tradeand Industryand accreditedby the Deparlment, witl-ra copy of saiclregistration
39 submittedto the Bureau.

Page28 of43
I S e c t i o n9 I ' N I i I r e r a l P r o c e s s i n gP e r m i t . N o p e r s o ns h a l l e n g a g ei n t h e p r o c e s s i n g
2 m i n e r a i sr v i t h o u t f i r s t s e c r : r i n ga m i n e r a l sp r o c e s s i n gp e n n i t f r o m t i r e
Council. Minerals
3 processingpermits shall be for a perioclof five (5) years)renewable
for like perioclsbut
4 not to exceeda total term of trventy-five (25) years.
9 Section92. Erpenditrtre for Community Development. A contractorshall assist
l0 the developrnento1' the community, ancl the promotion of the qeneral rvelfare
of its
I1 inhabitantstor'vardssustainableclevelopment.Community clevelopmentprojects
s6all in
12 no wav decreascthe obligation of the corporationwith regardto royaltiesancl
fees clueto
l3 communities or local government units. Community development projects
should be
14 consistent r.vith the ComprelrensiveLand Use Plans (CLUp), Ancestral
15 S t r s t a i n a b lDe e v e l o p m e n ta n d P r o t e c l i o nP l a n ( A D S D P P ) a n d a n n u a li n r . , e s t m e n
p tl a n so; f
l6 the LGUs, andthe lil<e.
18 S e c t i o n9 3 . [,mployment of Filipinos ancl training of members of the local
l9 c o m m u n i t y . A c o n t r a c t o rs h a l l g i v e p r e f e r e n c e t o F i l i p i n o c i t i z e n si n a l l t y p e so f m i n i n g
20 emploi'mentr'r'itltinthe cortntry. Me:nberso1'thelocal commLltlitysh-ll be trained
in all
2l a s p e c t so f t h e m i n i n s o p e r a t i o t t si.n c l L r c l i nree m i n i n g ,r e c y c l i n g ,r e 6 a b i l i t a t i o n ,
and the
22 managementthcreol.

24 S e c t i o n9 4 . U s e o f I n c l i g e n o t t sG o e d s , S e r ' " ' i c eas n c l T e c h n o l o g i c s .A c o n t r a c t o r

25 give preferenceto the use of local goocls,seruicesanclscientific and tec6nical
26 in the mining operations,where the same are of equivalentquality ancl are available
27 equivalentterms as their importedcounterpafis.
29 S e c t i o n9 5 ' D o n l t i o n / T u r n O v e r o f F a c i l i t i c s . P r i o r t o t h e c c s s a t i o r ro f
30 operatiorlsoccasioneclbv abanclonment or rvithclrawalof operations,on public lanclsby
3l Jhe contractor,the latter shall have a perioclof one (1) year therefrom ,uvithin
32 remove improvements;othenviseall the infrastructure,facilities anclequipment
shall be
33 ttlrned over or donatedtax-fi'eeto the proper g6rl,spnment ar-rthorities. national or local, to
34 ensurethat said infrastructurefacilities anclequipmentare continuogslymaintainecl
35 utilized by the liost anclneighboringcommunities.A fine of one hr-rndrecl pesos
36 ( P 1 0 0 , 0 0 0 s) h a l l b e i m p o s e df o r e v e r y d a y o f c l e l a y .


Page29 of 43
1 Section96. Tares and fees.The contractorshallpay all taxesanclfeesas requireclby
2 lar,v,
but not limitedto:

4 a. contractor's incometax;
5 b. cttstoms,dutiesand feeson imporledcapitaleqr-ripment;
6 c. value-added tax on importedgoodsandservices;
7 r d. r'vithholding tax on interestpaymentson foreignloans;
8 e. rvithholdins tar on clividerrds
to foreisr-r
9 f. documentary stampstaxes;
l0 g. capitalgainstax;
It h. excisetax on minerals,
12 i. iocalbusiness tax;
l3 .i. r'ealpropertytar;
14 k. commllnitytax;
l5 l. occupation fees;
16 m. registration anclpermitfees:
17 n. rvaterLtsaqc ftes.
19 Section97. Government sltare. Aside fi'om the taxes ancl fees referredto in the
20 preceding section,Government shallhaveat leasta shareequivalent to ten percent( 10%)
21 of the grossreveltllesfrom the development anclutilizationof mineralresourcesthat are
22 or,vned bf it to bc sct asicie1'orthe generalfunclof the sovernment.

)O Section98. Incligcnous Cultural Communities' Royalty. In case of mineral

25 operationsrvithinancestraldomains,the contractorshallpay at leastten percent( 10%)of
26 the grossreventlesas royalt"'to the ICCs/IPs.Cornmunitycleveloprnent programss6all
27 not be consideredas royaltl"payment. The paymentof the royaltiesshalldirectlybe giyen
28 to thecommLlnitiesin a processthatbuildon traditional
andcustomary laws.
30 Provicled, That the loyalty established
in this Act shallbe a minimum rovaltypayment
3l anclrnar still be strbjectto otherconditionsto be agreeclby the parties.fi-eefi-omany
32 externalmanipulation,interference, coercion,anclotheranalogons acts,and obtainedafter
33 fully disclosingthe intentand scope,includingtlre positiveanclnegativeirnpactsof the
34 andprocess',rnderstandable
activity.in a langLtage anclacceptableto them.

36 Section99. Scienfific Rcsc:tt'chantl DevelopmcntFrrnd. A ScienfificResear-ch

37 Development Fundshallbe setasideto be devotedto research
anddevelopmeltof clean
38 mining technologies,,
improvementof mining processes, mine rehabilitation,,
39 technologies,,
setting Llp and maintenanceof an inclependentnool of expefts, and
40 operationalexpensesof the Bureau.
Page30 of43

2 Section100. Legal Support ServicesFuncl. A legalsr,rpport fur-rdshallbe setasidefor

3 the useof the commlrnities
andlocalgovernment unitsfor casesthatthey may file against
4 miningpermittees or casesthat rnavbe filed againsttl-rern
by miningcornpanies in trying
5 to do their responsibilitvof protectingthe rights of the marginalizedgroLrps,the
6 environment ancisr-rstainable
development in seneral.

8 SectionI 01. Local GovcrnmcntUnit Share.LocalGovernment Unitsshallbe entitled

9 to shareof the net revenlres
fi'om mining operationsrvhichshallbe paid directlyto the
l0 provinciali
indepenclentcomponent citv/higlrlvurbanized
citv treasureris
for distribution
II to other local governmentr:nits.To determinethe governmentshare"the lblloiving
12 variablesshallbe considered:
14 a. Classification of localgor,'ernment;
15 b . V u l n er a b i l i t y ;
16 c. I-luman development inclex.
l t

18 "A percentase of this Amountshallbe setasicleby the respective localqovernment units

l9 for DisasterRisl<Managernent.This fund shall likewisebenefitICCs/lPsr,vithinthe
20 territoryof the localgovernment unit.
22 Provided,That the administrativeancloperationalexpenses of the Council shall also be
23 tal<enfi'omthis sharc.
25 Section102. Mine W:rstesand TailingsFees.A semi-annual fee to be knownas mine
26 rvastesand tailings fee is hereby imposedon all operatingmining companiesin
27 accordance rviththe implementing rulesandregr-rlations.
The minewastesandtailingsfee
28 shallaccrlleto a fund to be usedas sllllportfundsfor monitoringactivitiesof the Council.
29 The Secretary is ar-rtl-rorized
to increaseminewastesandtailingsfees,r,vhen publicinterest
30 so requires.

32 Section103. Inccntives.Inccntives that shallbe eivento the contractors

shallonlv be
33 limitedto pollutioncontrolor rnitigation


38 A. Safbtv

P a q e3 1 o f 4 3
1 Sectionl0zl. Mines Safety. All contractors andpermittees shallstrictlycomplywith all
2 the minesand safetlzrttlesand rcgulationsconcerningthe safeanclsanitaryupkeep
3 mining development.Governmentpersonnelinvolveclin the irlplementationof
4 safety,healthand environmental rulesanclregulationsshallbe coveredunder.Republic
5 ActNo. 7305or the MagnaCartaof PublicFlealthWorkers.
7 Section105. Mine Labor. No personunclersixteen(16)yearsof ageshallbe employed
8 in anyplaceof miningoperations anclno personundereighteen(18) yearsof ageshallbe
9 employed in a mine.
I 1 Section106. Mine Supen'ision.All miningandquarrying operationsshallhaveat lt:ast
12 one (1) licensedmining engineerfor evervfifty (50) emplovees. Suc6engineer/s s6all
13 haveat leastfive (5) yearsof experience in mining operations,anclone (1) registerecl
l4 f'oreman.
tI Ji

16 Section107. Safcty'of Worl(ers.All miningcompanies shallprovidesalbguards to the

17 healthand of r.,,orkers.
The ftegionalOfficc of the Departmentof Labor ancl
18 Employment shaliinspectall miningsitesr,vitirin
to cletermine
I9 the conditions o I rvorl<ers. Denial of entrv shall be punishableunclerthis Act.
20 Representativesof laborunionsshallalsohavevisitorialrights.
22 Section108. Mine Inspection.Tlte minesregionaldirectors andthe Councilshall61ve
23 jurisdictionover the salety inspectionof all installations,surfaceor unclerground,in
24 mining operationsat reasonable hoursol' day or night anclas mucfuas possiblein a
25 mannerthat rvill rrot irnpedeor obstructrvorl<in progressof a contractoror permitlee.
26 Monitorinqreportsandreconrmendations of theBureaushallbe subrnitteclto the Cor-rncil.
28 ,Section109. Port'erto IssueOrders. The minesregionalclirector, in consultationwit6
29 the Environmental Management Bureau,forlhwithor within suchtime as specifiecl in t6e
30 order,requirethe contractorto remedyany practiceconnectecl r,vithmining,which is not
3l in accordance u'itlt safetyanclanti-pollr-itiorr
larvsand regulations. In caseof imminent
32 dangerto lilb or properly.the Directormay summarill,suspend the rniningoperation until
33 the dangeris removed.or appropriate lreaslrresaretal<enby the contractor. Unreasonable
34 delayto removethe dangeror introducethe necessary improvements by the contractor
35 shailbe a causefor tirecancellationof themineralaqreement.
3l Section110. Report of accitlcnts. In caseof any incidentor acciclent, causingor
3B creatingtile dangero1'loss of life or seriousphysicaliniuries,the personin chargeof
39 operatiottsshallimntediatelyreportthe sameto tl-reregionalol'ficewheretire operations
40 arc situatecl.Irailtrreto repot'tthe sarrrcn,ithoutiustifiablereasonshall be causefor the

Page32 of 43
1 imposition of administrative sanctions prescribecl in the rules
and regr-rlations
2 i m p l e m e n t i n gr h i s A c t .

4 , B. Environmentalprotection
6 S e c t i o nI I l .
E n v i r o n m e n t a l I n s t t r a n c c . C o n t r a c t o r sa n c l m i n e r a l p r o c e s s i n gp e r m i t
7 holdersshall be obliged to executean insurancecontractas an environmental
B for each and every sollrce of pollution or disaster,relative to the "worst case
9 costs, follorving accepted actuarian standarcls,Provicled, That in no way
shall this
10 provision be construecito remove or reducethe liability ol'the contractors
l1 lroldersto compensateanv damage caLrsecl by their operations.Protticledfurther, That the
12 insltrershall bc an accrediteclinternationalcompanyin good standing.
1 a

14 Prior to the approvalof the insnrance

contractby the DOST. the DOST shallseekancl
l5 consider theopinionof an indepenclent
experlasto thefinancialcredibilitvof the insurer.
17 Section112. Calamity anclFluman RightsProtectionFuncl.Personsissueda mineral
18 agreementshall depositfive million pesos(Php5,000,000.00) semi-ann'allyin an
19 intercst-bearinq accottttta cfn.rlnorr
funclmaintained by the nationalgovernmentrvhich
20 shallbe r-rsedfor rcspondingto, or arneiioratingthe effectsof calamities,naturalclisasters
2l and human rights violations incluclingmilitarization,clisplacement, and forcible
22 evacttationin anv part of the countrvin relationto mining activities.provicled,That in no
23 r'vayshallthis provisionbe constnrecl to removeor recluce the liabilityof the contractors
24 and/orpermitholdersto compensate anyclamage causeclby theiroperations.
26 Sectiorr113. PerformAnccBond. The contractorshall put Lrpa bond in an amount
27 eqr-rivalent
to fiftl'pcr cent (50%) of the projecteci costof rehabilitationas valiclatect
28 independent stLtdies.This anot-urtshallbe clepositeciin an interest-bearipgaccoLrnt.The
29 bond shall be lbrfeiteclin the event that the contractorshall ftril or clefuultin the
30 rehabilitationor remediationof the rniningareaas inclr-rded in the r,vorkplan of the
31 contractoror abandons the rnineat anvtime of its operations.

33 Section114. Rehabilitation. Contractorsancl perrnitteesshall technically ancl

34 biologicallyrehabilitatethe excavated,minecl-out,tailingscoverecl anclclisturbecl
35 the conditionof environmental safuty,as may be providedin the implementing rulesand
36 regulationsof this Act. A ttrine rehabilitationfurnclshall be createcl,basedon
37 cotttractor'sappro\ieclu,orl<pfogram, and shall be clepositecl as a trust f,nd in a
38 sovernmentdepositorybank and useclfor physicaland socialrehabilitationof areasancl
39 communities affectedbv mininq activitiesanclIbr research on the social,,
40 preventiveaspectsof rehabilitation.Failr,rreto fulfill the aboveobligationshall mean

Page33 of ,13
1 immediatesuspension
or closureof the mining activitiesof the contractor/permittee
2 concerned.

4 Section115. Progressiverehabilitation.Contractorsshall also concluctprogressive

5 rehabilitation
7 SectionI 16. Adoptionof Precaution:rry Principle.Whenan activitvrelatedto mining
8 raisesthreatsof harm to httmanhealthor the environment,precautionary measllresshall
9 be takenproactivelyeven if somecauseand effectrelationshipare not fully establishecl
10 scientifically.
The mining proponentand the Bureaushall also be obligeclto clisclose
1l rvhether
or not thc causeancieffecthavenot vet beenscientificallv
l3 Section117. Adoption of PolluterPaysPrinciple.Polluters shallpoy for the damage
14 theycallseto the environment. The amountof damages shallbe determinecl by accreclited
l5 independentconsultants, to be chosenfrom a list and agreeclr-rponby both the mining
16 proponent andby the Council.
l8 Section118. Tailingsimpoundment.Tailingsimpoundments shallbe br-rilt
19 criticalwatershed drainageareas.Irurthermore,it shallbe ensuredthat will not endanger
20 criticalwatershedareasor lorv lying valleysin the eventof accidentsunclerabnonnal
21 conditions. Tailinc impottndments and damsshallrneetthe international stanclarcls
22 largedams.

;; Section119. Dumping of rvaste.Dumpingof rvasteor tailingsin any body of water

25 shallbe prohibited.Provisions
on the ClearrWaterAct shallbe strictlyimplemented.
27 Section120. Use of toric chcmicalsancl methocls.At all times,rniningcontraclors
28 shallusechemicalsor reagents which rvouldresultto the leastenvironmental anclsocial
29 destruction. The useof mercLlryand cyanidefor the ertractionof gold, silverand ot6er
30 mineralsshall be prohibited.-fhe use of blow torchingto separategolclfi'om amalgam
31 siralllikervise
be nrohibited.

;; Section121. Prcservationof topsoil. The removecltopsoil,or the more prodr-rctive

34 horizonsof the soil shallbe nreserved
fbr otheruses.

aZ Section122. Priority use for rv:rter. The National Water ResourcesBoard shall
37 investigateany existinguseof r,vaterresollrces in the areawhetheror not covereclby any
38 existingwater permit or registration.Upon determinationof any existing Lrse,the
39 applicantsl-rallprocurethe consentof all r'vaterusersand/orthe I'reeprior and informed
40 consentof ICCsiIPsu''ithor rvithouturaterperrnitsrvithinthe samegroundu,ater network
41 or anydorvnstreAm usersof u,aterresoLrrces.In all instances,,
priorityshallbe givento use
Page34 of43
I of waterfor domestic,mttnicipal.and agricultural
If potentialnegativeimpact
2 on other water usersis identified,the water permit shall not be granted.For urater
3 resollrces
within the ancestraldomainof incligenous peoples,no water permit shallbe
4 grantedby the Nationai Water ResourcesBoarclrvithouttl-refree and prior informed
5 consentof indigenolls
7 Section123. Recyling of n'ater resources.Water usedin mining operationsshall be
8 recycled.Minins contractors shallbe reqr-rirecl
to proviclefor the rnethocls
or equipments
9 for the recycling or reuse o1'r'vater. Releasedcontaminatedrru,ater shall be treatecl
10 accordinglyto meet nationalstandards.Releasecl r,vatermust at least be eqtrivalentin
1I qualityto the baseliner,vater
13 Section124. W:rtcr user fce. A u'ateruserfee that reflectsthe value of waterto the
l4 coltntrvand comtnttnitvshall be imposecl by'the Council for r,vaterused in mini'g
15 operations.Contractors shallpa),thefee to the NationalWaterResources Boarclrvhich
16 shall Llsethe same for monitoring ancl improvementof the affecteclwategvavsand
17 systemsand the rnitigationof negativeimpactsthereonto ensurethat commLrnities shall
1B haveaccess to cleanrvater.
2l C. Acid Mine Drainase
23 Section125. Prohibition from using acicl-generating rvasterocli to builcl roaclsor
24 dams. To preventor rnitigateacid mine clrainage, thereshall be a prohibitionagainst
25 ',vasterock to builclroaclsor damsor otherinfrastructures.
,Llsingacid-generating The use
26 of suchmaterialsshall only be usedaftertreatmentto neutralizethe effectof aciclmine
27 drainage.
29 Section126. E,stablishment of a precliction
anclmonitoringsystem.A preclictionand
30 monitoringsystemshall be in placeto identili potentialacicl-producing
31 monitortheirprodr-rction
of acidrvaste.

;; Section127. At'oidance of rvatcnvays. Open pits, r,vasterocl< piles ancl tailings

34 impoundments shallnot be built nearor on watenvaysto preventcontactand subsequent
35 acidproductionandgroundrvater contamination.
37 Sectionl2B. Remining.Remirringshallbe prioritizecl
overthe opcningo1'ner.v
38 maximizeand recoverthe remainingmineralsfrom the rejectsor lrrastesof previor-rs
39 mines and mining operations,Provided,That remining operationsshall follow the
40 proceses,
parametersandguidelinessetfor miningoperations.

Pase35 of43
2 Section129. Suitsafter tlte terminntionof contractsor proiects.Recognizing t6atthe
3 eff,ectsof mirrinq may be seen or felt, actions relating to the health of affucted
4 communitiesor peoples,environmental degradation anclother similar effectsmay be
5 maintained againstthe proiectproponent and/orpersons evenafterthe mineralagreement
6 or miningprojecthasterminated.
I0 SectionI 30. Panelof Arbitrators.Thereshallbe a panelof arbitrators in the regional
11 office of the Departmentcomposedol' three(3) members,two (2) of rvhom must be
12 membet's of the PhilippineBar in goodstanding andonea licensecl minineengineer or a
13 professional in a relatedfield, and duly designated by the Secretary as recommended by
14 the Minesand Geosciences BureauDirector.Thosedesignated as membersof the panel
15 shall serveas such in additionto their rvorl<in the Departnentrvithoutreceivingany
l6 additionalcompensation As tnuch as practicable, saicimemberssftall come from the
17 differentbttrealtsof tl-reDeparlmentin the regiorr.The presidingofficertfiereofshallbe
l8 selectedby the drawingof lots.His tenureas presidingofficershallbe on a yearlybasis.
19 The membersof the panel slrall performtheir dutiesanclobligationsin hearingancl
20 decidingcasesuntil their designation is withdrawnor revokedby the Secretary. Wit6in
21 thirty (30) rvori<ingclays,afterthe submission of the caseby the parties1brdecision,the
22 panelshallhaveexclttsiveandoriginaljurisdictionto hearancldecicle on the following:
23 a. Questions itrvolvingcompliance with the established technicalguideliles
24 and standarclsherein established, or those to be establishecl bv tl-re
25 implementing rulesandregulations of this Act;
26 b. QLrestions involving the cornpliancelvith technicalproceduresherein
27 established, or tlroseto be established by the implementingrules and
28 regulations; and.
29 c. Othersimilarinstances u,hereinthetechnological ancltechrricalerpertiseof
30 the Department shallbe needed.
32 Disputesinvolvingreal rights,contractual obligations andthe othercallsesof actionthat
33 are otttsidethe technological and technicalexpertise of the Panelof Arbitratorsshallbe
34 underthe.ir-rrisdiction
of the reglrlarcourtsoras otherwise providccl
by otfierspeciallar,r,s.

36 Provided,That disputespendingbeforethe Bureauand the Depaftmentat the dateof the

37 eflectivityof this Act shallundergoan immediatereviewwithin sixty (60) workingclays
38 Lrpor"t
the passage of'thisAct to detet'mine
the causeof action.Thoseu,hichareoutsidethe
39 technicalexperliseof the Departmentor Bureaushall be refileclwith the appropriate
40 cour1,withoutcoststo the complainantor petitioner.

Page36 of43
2 Sectionl3l. Appeal.The decisionor;orcler of the panelof arbitrators may be appe'lecl
3 by the parlvnot satisfiedtheretoto the MinesAcljuclication BoarclrvithinlLfteen(15)days
4 from receiptthereo{'r'r'hich mustdecidethe case'uvithin thirty (30) daysfi-omsubmission
5 thereoffor clecision.
7 Section132. Mines AdjuclicationBoarcl(MAB). The MinesAdjuclication
8 be composecl of tlrrlc (3) rnernbers. The Secretary of the DOST s6allbe t6e Chairperson
9 rvith the Director of thc Mines and Ceosciences Bureauand the Unclersecretary for
10 Operations of the Depafimentas membersthereof.The Boarclshall havethe followins
II andfunctions:
13 a. To promttlqate rr-tles
and regulations governingthe hearinsanclclisposition of
14 cascsbeibreit. as rvell as thoseperlainingto its internaifgnctions.alcl suc6
l5 rulesandregulations as may be necessary to carryout its functions;
16 b. To administeroaths,sttmmonthe parliesto a controversy,issuesubpoenas
17 reqLtiring the aftendance ancltestimorlyof r,vitnesses or the procluctionof such
I8 bool<s- papcrs.contracts, recorcls.
statement of accourrts. agreements, andot6er
19 documcntsas may be materialto a just determination of tire matteruncjer
20 investigation. and to testify in any investigationor hearingconducteclin
21 pLlrsLlance ol.thisAct;
22 c. To conducthearingson all rnatterswithin itsjuriscliction. proceedto 6earand
23 determinethe disputesin the absenceof any party thereto rv6o has been
24 sllmmonedor servedrvith noticeto appear,concluctits proceeclings or any part
25 thereofin publicor in private.acljourrr its hearingsat any time anclplace,re1.er
26 technicalrnattersor accounts to an experlandto accepthis reportas eviclence
27 after hcaringof the partiesupon due notice,, clirectparliesto be joineclin or
28 excludedfi'om thc proceedings, correct,amencl,, or waive any error,de{bctor
29 irregr-rlarity,whetherin substance or in form,give all sucl-r directionsas it may
30 deemnecessary or erpeclientin the cletermination of the disputebeforeit. ancl
3l disrnissthe minirlgclispLrte as partthereol.whereit is trivial or nfteref'fiher
32 proceeclings by the Boarclarenot necessarv or clesirable:

34 1. To holcl any personin contempt,clirectlyor indirectly,and impose

35 appropriatepenaltiestherelbr;ancl
36 2. To enjoin env or all actsinvolvingor arisingfiorn any casepending
37 before it which, if not restrainedforthwith, may caLrsegrave or
38 in'eparablcclamageto any ol'the partiesto the caseor seriouslyaffect
39 socialancleconomic stabilitv.

Page37 of 43
1 In any proceeding beforethe Boarcl,the rulesof evidenceprevailingin
courtsof lar,vor
2 equity shall not lre controllinganciit is the spirit
anciintenrionof this Act that shall
3 govern'The Boardshall useeveryand ali reasonable
meansto ascertainthe factsin each
4 casespeedilvandobiectivelyanclrvithoutregardto technicalities
of Iarvor proceclure, all
5 in the interestof dtreprocessanclsocialjr-rstice. In any proceecling beforet5e Board,the
6 partiesmay be representecl by legalcounsel.The finclingsof fact of the Boarclshall
7 conclusiveand binding on the partiesand its decision
or order shall be final ancl
B executory.
10 A petitionfor revieu' by cer'liorari andqr-restion of law may be filecl by the aggrieved
1l pafty rviththe Suprelrecottrt r,r'ithinthiftv (30) claysfi'om
receiptof t6e orcleror clecision
12 of theBoard.
14 C H A P T E RX I I I . A C C E S ST O J U S T I C E
16 Section133' obligation to respecttrrumanrights.
Corporations shall respect,protect
17 andpromotethe humanrightsof commr-rnities affectecl by mining,inclucling t6e right to
l8 life, libertyandproperty,fi'eeclorn of movernent, rightof publicparticipation anclthe riglht
19 to self-determination of incligenous culturalcommLlnities.
21 Section134' Viol:rtionsof human rights. Extrajudicial
22 disappearance, forcibledisplacement of populations, anclimpositionof toll feeswhic6
23 impedethe freedomof lrlovementwithin mineralareas,
deprivationof food anclwater
24 sollrces'vote-buyinganclbriberyfor the plrrposeof
securingconsentor enclorsement for
25 the miningproject,anclotheranalogons actsareviolationsof humanrights. Violationsof
26 human rights by contractorsshali calrse the immecliate
cancellationof mineral
27 agreements' The off-encling contractor,as r.vellas corporations havingt5e sameclirectors
28 and/orofficersas of the offenclingcontractorshallbe perpetually
from being
29 granteda mitleraJr-sreen'rent. All equipnrent anciassets of the corporation or personshall
30 be confiscated in favor of the sovernment.
32 Section135' Use of p:rramilitary and milifary
forces.AII miling companiesare
33 strictlyprohibitecl to ernplovparamilitarl'grolrps. Useof privateanclmilitaryforcesshall
34 resultin the cancellation ol'the mineralagreement anclthe filing of appropriate civil,
35 criminaland/oradministrative charses.
37 Section136. StrategicLegal Action Ag:rinstPublic Participation
(SLApp). SLApps
38 shall be strictlv prohibited. SLAPP is any legal action,
whethercivil, criminalor
39 administrative, filecl to ltarass,vex, ereft legal action or stifle legal recourses
40 communitvmemberscomplainineagainstviolations
of this Act or enforcingthr:

Pase38 of43
1 provisionsof the Act, or exercisingtheir
fi'eedornof assemblyor right of public
2 participation'
The investigatingprosecutor or courtshallimmediatelycleterminewithin a
3 periodof thirtv (30) clavsfrom fiiing thereof
whethera legal action is a SLApp and
4 accordingiydismissthc same.

6 Section137' Indigents' s'it. Incligentsshall

be exempt fi-orn payrnentol. any
7 administrativeor cottrtfees,inclr,rding
feesfor the filing of a case.Lawyersshall
8 be provicled
to palrpcrlitigantsin casetheycor-rlcl
10 Section138' Applicafion of the customary larvs
of rccs/Ips. The contractorshall
I1 respectthe cttstomarylarvs of tlre ICcs/lPs
and shall submit to processesof their
12 customarvlarvs,Provirlecl,That tl-reselaws are
not contraryto the provisionsof the
l3 Constitution.
15 Section139' Strict Iiability.Miningcorporations
arestrictlyIiable1brall darnages
16 the mining operationsmight cause.in caseof any
actuardamage,the burdenof proof
17 shalllie rviththe corporations.
19 Sectio' 140' Picrcing tllc corporate 'eil. when
the separatepersonalityof the
20 corporationfi'onrits shareholclersis being invokeclas defensein orclerto perpetuate
21 crime' fi'auclor otller machinations, a
or evacleliability.the separatepersonalityof
22 t6e
corporation shall be sct aside. civil. criminalanclaclministrative
actionsmay th,s be
23 filed directlyagainstthe nrenrbers of the Boarclof Directors,officersancl/orindiviclual
24 stocl<holders.
26 Sectionl4l' citizen Suits.Irorthe purposeof enforcing tlreprovisions
of thisAct or its
27 implementingrulesand regttlations.anv citizenmay file appropria:eciv,il,cr.iminaland
28 administrative
suitsagainstanvof theibllorvinq:
30 a' Any personr'vhoviolatesor fbilsto complywith
the provisionsof this Act or
3l its imprementing rrresancrreguratio's;
32 b' Anv public officer r'r'ithrespectto orders,rules
and regulationsinconsistent
/ with this Act;
34 c' Any pLrblicol'ficeru'ho u'illfullv or grosslyneglects
the performance of an act
35 specificallvenjoinecl as a dut'by tliis Act or its rulesand regrlations;
36 or
abusestlte aLrthoritvin the nerfornrance of a cluty/ies,-rncler
tliis Act or its
37 implementing rulesa.ncl
39 The court shall exempt such action fi'om the payment
of filing fbes, exceptfees for
40 actionsnot capableof pecuniat'.v'estimation,
anclshallIikewise,Lrpon primaJacieshor,vinsr

Page39 of43
1 of non-enforcement or violation complaineclof, exemptthe plaintiff fiom filingl an
2 iniunction
bondfor the issuanceof a preliminarv

4 within thirly (30) daysLlponthe filing of the case,the court

will determinewhetheror not
5 thecomplaintis maliciotts oi baseless
andshallaccordingly dismissthe petition.
9 Section142. Grouncrs for thecancellation of permits:
l0 a. Violationof anv provisionof thisAct;
1I b. I-iuman rights violations perpetratedb;, the contractor
or any agent of the
12 contractor;
13 c. Non-payment of taxes;
14 d' Briber5',Llse o1' force, intimiclation,threat,coercion
of pgblic officials ancl
l5 col-ltmllnities:
16 e. Any actthatshallcreateor contribute
to conflicts:
17 f. Otheranalogousacts.
19 Provided, that, vioiations of environmentalprovisions
shall calrse tle immecliate
20 c a n c e l l a t i oonf m i n i n sp e r m i t si,n c l u d i n gb u t n o t l i m i t e c l
t o S e c t i o n 1s l g , l i g , I ) 0 , l Z 1 ,
21 125 and 127' attdthe contractorshallbe requirecl to pay for the re6abilitation, restoration
22 or cleanLrpo1'theirrrpacts of suchviolations.

;; corporations,corporateclirectors/officers
founclguilty of the aboveenrrrreration
may be
25 subjected
to a perpetual
ban in the miningoperations.
27 Section143' False statements. Any person r.vho knowinel),
presentsany false
28 application,declaration,or eviclence to the Governmentor pLrblishes or causesto be
29 publishedany prospectus or otrre'inlbrmatior-r
containinqany fursestatementreratingto
30 mines,miningoperations or rnineralzrgreementsand permitsshall,upon conviction,be
3l penalizedby a fine of not exceeding OneFlundred Thousand pesos(p I 00,000.00).
33 Section144' ItlegalIixploration.Any personundeftalcing
34 necessarverplorationperrnit shall. Lrponconviction,be penalizeci
by fine of 'ot
35 e x c e e d i nFei v eM i l l i o r rp e s o s( p 5 . 0 0 0 . 0 0 0 . 0 0 ) . "
37 Sectionlzl5' Panning. Panningshall be consiclereclan act of milins. Ar-ryperson
38 r-rndertalcing
panningwithout the necessary mining permit shall upon conviction,be
39 convictedof illegal panningpenalizedunclersectio
n 27 (RA 7076).In acldition,such
40 personshall be liable to pay damagesmacleto the
environmentby reasonof suc6
Page40 of43
1 panning'In the caseof associations,
partnerships, or corporations, the presidentancleach
2 of the directorsthereofshall be responsible
for the actscommittecl by suchassociation,
3 corporation. or partnership.
5 Section146' Theft of Minerals.Any person
extracting mineralsancldisposingthe same
6 r'vitltotrt a mining agreement.lease,permit,license,
or stealsrnineralsor ores or the
7 productsthereoffrom mines or mills
or processing plantsshall. Lrponconviction,be
8 imprisoned from sir (6) monthsto sir (6) y'ears or paya fine fiorn one ljundredthousand
9 p e s o s( P 1 0 0 ' 0 0 0 . 0 t0o) o n e M i l l i o n p e s o s
( p r , 0 0 0 , 0 0 0 . 0o0r) b o t h ,a t t h e d i s c r e t i o n
l0 the appropriate o1.
colttt' In acldition. he shallbe liableto pay clamages and compensation for
1I the minerals removecl,eltractecl,ancl
disposedof. In the case of associations,
12 partnerships' or corporations, the presiclent ancleachof the clirectorsthereofshall
respo'sibleIbr tlteactscommittedbv suci-r be
association, corporatior.or partnership.
l5 Section147' Unauthorized Dealing, selling,
and/or Buying of Golcl. Any person,
16 partnerslrip or corporation u'ho shallsell.buy or in any mannerclealgoid
17 or personrvithoLrtbeirrqclr-llvar-rthorizecl lrom any miner
b1,the Bangl<oSeptraipg piiipinasslrall
lB punislred as ttnattthorizeci be
dealingarrclshallbe penalizedin accordance
19 of thisAct.
21 Section148' vitiatio' of FPIC. Any
personfoundto havevitiatecltlre consent
22 ICcs/lPstlrroughbribery,threat,force, of ttrre
ancl/orintimidation,or an' ot1ersimilar
23 shallstrfferthe penaltyof six (6) years means:,
anclone (l) clayto ter (10) yearsin prison,
24 fine of at leasttrvo million pesos(Php anda
2,000,000.00). If the perpetrator is a government
25 official' tlre perraltvshall be eight (8)
yearsand one (l),loy to tr,velve(12)years
26 imprisonment' and a lLneof at leastfoLrr(4) millionpesos(php
4,000,000.00). Fleishe
27 shall be perpettrallv'proiribitecl from assuminspublic office, anclshall
28 fiom receivingotherbenefitsby virlue be clisqr-ralified
of his/herpositionin government.
30 Section149' Penaltl'for httman rights
violations.contractorsor other persons
3l have'iolatecl who
the hlrrnanrigl,.'+.s of communities in connection with the rni'irrgoperations
32 shallbepenalizecl rvithten (10)y'ears to lourtee.(14).vears irnprisonment ancla fi'e of at
33 leastfive million pesos(Php5.000.000,00)
anclshallindemnifythe victirns.

35 Section150' Amenr]mcntto section 27 of

RepublicAct No. 7076or t6e small-scale
36 Mining Act' violat'onso1'thcprovisions
of RA 7076or of the rulesand regulatio's
37 issuedpursttant
heretoshallbe penalizeclrvithimprisonment of six yearsanclI clayto l2
38 years'andshallinclLrcle
the colrfiscation
and seiz,reof eqtripment, toolsanclinstruments,
39 immediatesuspension or closureof the rni'ing activitiesof the permittee
40 concerneclancl
or cancellation
of pcrmit.

Page4l of 43
2 Section151' Abanclonment.contractorsand/or
permifteesr,vhoshall abandonmijnes
3 shallbe perpetually bannecl
or clisq,alifiecl
from cond,ctingminingoperations, directlyor
4 indirectly'The ban ancl/ordisqualification
shall incluclethe offi."r, anclclirectorsof
5 corporations trrathai'eabandonecr mi'es.
7 SectionI52' confiscationof equipment
and property.The eqr-ripment andpropertyof
8 contractorsand permit holclersviolating
this Act shall be forlbitecl in favor of the
9 government.
II Sectio'153' Non-apPlicationof the corporate
veil. A'v person violating t'e
12 provisions ol'cornmonwealth Act No. 108,or theAnti-DurnmyLaw of the philippines
13 amended,or is lbund to haveuseclthe corporate as
structureto defeatthe provisionsof the
l4 Act shallsttfferthe penaltyof five millionpesos(P5,000,000.00)
anclperpetual ban in the
l 5 m i n i n gi n d u s t n , .
17 Section154' Reinstatementof revohecl
permits. After notice and hearing,revoked
18 permitstlrat have unclergone due processmay be reinstated, proviclecl,That it may
l n I . only
23 Section155' Thereshall be a moratorilrmon all
mining activitiesr-rntilall the systems
24 arein placefor the properimplcmentation
of the lar,v.
26 Section156' All existingminingpermits,Iicenses
28 Section157' The classificatio'ofpubliclanclsas
mineralreservations pursuantto pre-
29 existingl^rs shallilc.ebycease.Ali suchlandsshall
be closecl to rnining,nlessopenecl
30 tlieretoin accordance rvith the provisionsof this Act. Trrepresiclent,s powerto cleclare
31 mineralreservations sllall hencefofihceaseto exist. A reviewof the
32 land classification shall be conductedto cletermine tl-rebest livelihooclancleconomic
33 optionfor the saiclarea.

35 Section158' The membersof the panelsof arbitrators

anclthe provincialor city mining
36 regulatory boardsestablished
unclerRepublicAct No.7g42shallhold-overtheirpositions
37 until replacedin acco'crance
of trrisAct.

Page42 of 43
I Section159' Seplrabilify clause. The provisions
of this Act are herebydeclarecl to be
2 separableand.in the eventof anv suchprovisions aredeciaredunconstit.rtional, the other
3 provisions\r'hichar'.;not affuctecltherebvshallremainiri lbrce ancjefflect.
5 Section160' Repealing clause. Republic Act
'Presiclential 7g42, presidentialDecree 4.63,
6 Decree 512, ancl other relateclmining laws are
hereby repealed.All
7 provisiorls in lau's-ciecrees and otlrerregulations inconsistent with tlris present1ar,v
8 be deetnecl amenciccJ or repealecl i1'tlreinconsistency is irreconcilable.
10 Sectionl6l ' Funcls' The amount of one I-ft-rndrecl Billion pesos (php
ll 100'000'000,000'00) is herebvappropriatecl for the properfunctioningo1.theBureau,t5e
12 council,andotherboclies establishecl underthisAct.

11 Section162' ImplementingRules ancl

Regulations. The implementingrules ancl
15 regtrlationsof this Act shallbe the procluct
ofjoint collaborationby the Department, ancl
16 representatives fi'om the local government units, peoples' organizations,
17 organizationsancl non-governmental organizations. ancl shali be clrar.vnup after
18 appropriatepublicconsultations.
20 Section163' Ilffectivify clause. This Act
shall take effect within fifteen (15) clays
2l follor'ving
its publicationin tuo newspapersof general i1 t6e p6ilippines.
Fl ''l

;; Approved,

Page43 of 43