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Republic Act No.

7076
People’s Small-Scale
Mining Act of 1991
Sheila Calalo
Charlene Pedrajas
Sittie Rohanifah Macarambon Palao
What is Mining?
It is the industry and activities connected with getting valuable or useful minerals
from the ground, for example coal, diamonds, or golds.
What are Minerals?

A substance (such as quartz, coal, petroleum, salt, etc.) that is


naturally formed under the ground.

The term “Mineral” is often used in a much more extended sense to


include anything of economic value which is extracted from the earth
What are Mineral Resources?
It means any concentration of ores, minerals and/or rocks with proven
or potential economic value.
1987 CONSTITUTION (Article XII, Sec. 2)
National Economy and Patrimony

All lands of the public domains, waters, minerals, coal, petroleum, and other
mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife,
flora and fauna, and other natural resources are owned by the State. x x x The
exploration, development, and utilization of natural resources shall be under
the full control and supervision of the State.
Mining Laws in the Philippines
PEOPLE'S SMALL-SCALE MINING ACT OF 1991(R.A. 7076) - An Act
Creating a People's Small-Scale Mining Program and for Other Purposes

DAO NO. 2015-03 - Revised Rules and Regulations of Republic Act No. 7076
Otherwise Known As "Peoples Small Scale Mining Act Of 1991"

PHILIPPINE MINING ACT OF 1995 (R.A. 7942) - An Act Instituting a


New System Of Mineral Resources Exploration, Development, Utilization, and
Conservation

CDAO NO. 2010-21 - Providing For A Consolidated Department of


Environment and Natural Resources Administrative Order for the
Implementing Rules and Regulations of Republic Act No. 7942, otherwise
known as “The Philippine Mining Act Of 1995”
REPUBLIC ACT NO. 7076 :
AN ACT CREATING A PEOPLE’S SMALL-SCALE
MINING PROGRAM AND FOR OTHER PURPOSES

Small-scale mining is governed by RA No. 7076, otherwise known as the


“People’s Small-scale Mining Act of 1991,” enacted on June 27, 1991

Small-scale mining refers to mining activities that rely heavily on manual


labor using simple tools and methods. It does not use explosives or heavy
mining equipment and requires only small capital investment.
Declaration of Policy

It is hereby declared the policy of the State to promote, develop, protect an


rationalize viable small-scale mining activities in order to generate more
employment opportunities and provide a equitable sharing of the nation's
wealth and natural resources, giving due regard to existing rights as herein
provided.
Definitions
(a) "Mineralized areas" refer to areas with naturally occurring mineral deposits
of gold, silver, chromite, kaolin silica, marble, gravel, clay and like mineral
resources:

(b) "Small-scale mining" refers to mining activities which rely heavily on manual
labor using simple implements and methods and do not use explosives or heavy
mining equipment;

(c) "Small-scale miners" refer to Filipino citizens who, individually or in the


company of other Filipino citizens voluntarily form a cooperative duly licensed by
the Department of Environment and Natural Resources to engage, under the
terms and conditions of a contract, in the extraction or removal of minerals or ore-
bearing materials from the ground;
Definitions
(d) "Small-scale mining contract" refers to co-production, joint venture or
mineral production sharing agreement, between the State and small-scale
mining contractor for the small-scale utilization of a plot of mineral land;

(e) "Small-scale mining contractor" refers to an individual or a cooperative


of small-scale miners, registered with the Securities and Exchange
Commission or other appropriate government agency which has entered into
an agreement with the State for the small-scale utilization of a plot of mineral
land within a people's small-scale mining area;

(f) "Active mining area" refers to areas under actual exploration,


development, exploitation or commercial production as determined by the
Secretary after the necessary field investigation or verification including
contiguous and geologically related areas belonging to the same claimowner
and/or under contract with an operator, but in no case to exceed the maximum
area allowed by law;
Definitions
(g) "Existing mining right" refers to perfected and subsisting claim, lease,
license or permit covering a mineralize" area prior to its declaration as a
people's small-scale mining area;
(h) "Claimowner" refers to a holder of an existing mining right;
(i) "Processor" refers to a person issued a license to engage in the treatment
of minerals or ore-bearing material such as by gravity concentration, leaching
beneficiation, cyanidation, cutting, sizing, polishing and other similar
activities;
(j) "License" refers to the privileges granted to a person to legitimately
pursue his occupation as a small-scale mill or processor under this Act;
(k) "Mining plan" refers to a two-year program of activities and
methodologies employed in the extract ion and production of minerals or ore-
bearing materials, including the financial plan and other resources in support
thereof;
Definitions
(l) "Director" refers to the regional executive director of the Department of
Environment and Natural Resources; and

(m) "Secretary" refers to the Secretary of the Department of Environment


and Natural Resources:

(n) “Minahang Bayan” or “People’s Small-Scale Mining Area” refers to the


entire area declared as People’s Small-Scale Mining Area pursuant to RA No.
7076

(o) “Board” refers to Provincial/ City Mining Regulatory Board composed of


the Regional director concerned of the Mines and Geosciences Bureau as
Chairperson, and four members composed of duly appointed representatives of
the following offices/sectors: Governor or City Mayor, small-scale miners,
large-scale miners and environmental non-government organizations.
Definitions

(p) “Qualified Person” refers to any Filipino citizen of legal age and with
capacity to contract; or a 100% Filipino-owned corporation, partnership,
association or cooperative organized or authorized for the purpose of engaging
in small-scale mining processing, with technical and financial capability to
undertake mineral processing, duly registered in accordance with law.
People's Small-scale Mining
Program

To carry out the declared policy provided in Section 2 of the Act, a People's
Small-scale Mining Program has been established which is designed to
achieve an orderly, systematic and rational scheme for the small-scale
development and utilization of mineral resources and to address the social,
economic, technical and environmental connected with small-scale mining
activities.
The People's Small-scale Mining Program
shall include the following features:
a) The identification, segregation and reservation of certain mineral lands as
people's small-scale mining areas;
b) The recognition of prior existing rights and productivity;
c) The encouragement of the formation of cooperatives;
d) The extension of technical and financial assistance, and other social
services;
e) The extension of assistance in processing and marketing;
f) The generation of ancillary livelihood activities;
g) The regulation of the small-scale mining industry with the view to
encourage growth and productivity; and
h) The efficient collection of government revenue.
Declaration of People's Small-scale
Mining Areas
The provincial/City Mining regulatory Board is authorized to
declare and set aside people's small-scale mining areas in sites onshore
suitable for small-scale mining, giving priority to areas already occupied and
actively mined by small-scale miners before August 1, 1987; Provided, That
such areas are not considered as active mining areas; Provided further, That
the minerals found therein are technically and commercially suitable for
small-scale mining activities: Provided, finally, That the areas are not covered
by existing forest rights or reservations and have not been declared as tourist
or marine reserves, parks and wildlife reservations, unless their status as
such is withdrawn by competent authority.

The Board shall have the authority to declare and set aside Minahang Bayan
in mineralized areas onshore suitable for small-scale mining, except in areas
closed to mining applications as provided in Section 1 of the EO, subject to
review by the Secretary thru the Director.
Areas Open for Declaration as
Minahang Bayan

a. Areas already occupied and actively mined by small-scale miners


before August 1, 1987: Provided, (i) That such areas are not considered as
active mining areas; (ii) that the minerals found therein are technically and
commercially suitable for small-scale mining; and (iii) that the areas are not
covered by existing forest rights or reservations and have not been declared as
tourist or protected areas, unless their status as such are withdrawn by
competent authority;
Areas Open for Declaration as
Minahang Bayan
b. Public lands covered by mining applications, such as:
1. Areas covered by pending mining applications wherein the minerals intended
to be mined as declared by the applicant, are different from the minerals
intended for small-scale mining, as determined by the Regional Director; or
2. Areas covered by denied mining applications but with pending appeal with the
Bureau or Department Central Office: Provided, (i) That a royalty in escrow due
the mining applicant shall be deposited by the small-scale mining contractor(s)
concerned. This royalty shall be in the amount based on the prevailing standard
rate in the locality. Where there is no prevailing standard royalty or no previous
royalty payment is involved or has been arranged, the royalty payment shall be
equivalent to an amount not less than one and one half percent (1 %%) of the
gross value of the gold, silver or chromite mineral output or one percent (1%) of
the gross value of the non-metallic mineral output; (ii) that the royalty in escrow
shall be paid to the mining applicant concerned upon approval of the pertinent
mining application; (iii) that in case the application is denied with finality, the
royalty in escrow shall be released to the small-scale mining contractor(s)
concerned.
Areas Open for Declaration as
Minahang Bayan
c. Public lands covered by existing mining permit(s)/contract(s) which are not
active mining areas;

d. Private lands, subject to the consent of the landowner(s) and a royalty


payment that shall in no case exceed one percent of the gross value of the minerals
recovered and payment of actual damages as determined by the Board due to the
declaration of the Minahang Bayan, among other rights and conditions; and

e. Ancestral Lands/Ancestral Domains, subject of Certificates of Ancestral


Domains/ Ancestral Land Title (CADT/CALT)or in areas verified by the Regional
Office and/ or other office or agency of the government authorized by law for such
purpose as actually occupied by ICC under a claim of time immemorial possession,
with Free and Prior Informed Consent (FPIC) from said ICC obtained in
accordance with the procedures prescribed by the National Commission on
Indigeneous Peoples (NCIP): Provided, that if such ancestral lands/domains are
declared as Minahang Bayan, the members of the ICC therein shall be given the
prioprity as small-scale mining contractors. (DAO No. 2015-03)
Areas Closed To Mining Applications
a. Protected areas (national/natural parks, watersheds, wildlife sanctuary,
wilderness areas, high biodiversity areas, mangroves, tree parks, game refuge,
bird sanctuaries, greenbelts, marine reserves/marine parks, etc.);

b. Old growth or virgin forests;

c. Forest and other government reservations (unless with clearance from


agency concerned);

d. Built-up areas (buildings, bridges, private plantations, etc.) unless with


consent from agency or party concerned;

e. Ancestral domains/lands unless with Free and Prior Informed Consent from
Indigenous Peoples

f. Other areas expressly prohibited by law.


Future People's Small-scale
Mining Areas
The following lands, when suitable for small-scale mining, may be declared by
the Board as people's small-scale mining areas:

a) Public lands not subject to any existing right:

b) Public lands covered by existing mining rights which are not active
mining areas: and
c) Private lands, subject to certain rights and conditions, except those with
substantial improvements or in bona fide and regular use as a yard,
stockyard, garden, plant nursery, plantation, cemetery or burial site, or
land situated within one hundred meters (100 m, ) from such cemetery or
burial site, water reservoir or a separate parcel of land with an area often
thousand square meters (10,000 sq.m.) or less.
Ancestral Lands

SECTION 7. Ancestral Lands. No ancestral land may be declared as a people's


small-scale mining area without the prior consent of the cultural
communities concerned: Provided, That, if ancestral lands are declared as
people's small-scale mining areas, the members of the cultural communities
therein shall be given priority in the awarding of small-scale mining
contracts.
Consistent with RA 7942
•Section 16 of RA 7942 (Philippine Mining Act of 1995) declares that no
ancestral lands shall be opened for mining operations without the prior
consent of the ICC concerned.

•Further, Section 17 of the same Act states that in the event that the members
of such ICC give their consent to mining operations within their ancestral
land, royalties shall be paid to them by the parties to the mining contract.
Registration of Small-Scale Miners

All persons undertaking small-scale mining activities shall register as miners


with the Board and may organize themselves into cooperatives in order to
qualify for the awarding of a people's small-scale mining contract.
All persons undertaking or intending to undertake small-scale mining
shall register as small-scale miners with the Board, subject to the
submission of a valid government issued identification card and proof
of Filipino citizenship.

For the above purpose, the Board shall maintain a registry of small-
scale miners within its jurisdiction. (Section 6, IRR)
Award of People's Small-scale Mining Contracts
A people's small-scale mining contract may be awarded, by the Board to small-
scale miners who have voluntarily organized and have duly registered with
the appropriate government agency as an individual miner or cooperative:
Provided, that only one (1) people’s small-scale mining contract may be
awarded at any one time to a small-scale mining contractor who shall start
mining operations within one (1) year from the date of award; Provided
further, That priority shall be given to small-scale miners residing in the
province or city where the small-scale mining area is located.
An applicant for a small-scale mining contract shall first secure a small-scale
mining license from the Board, subject to submission of the following
requirements:

a. Application form duly accomplished and notarized.


b. Payment of application fee of PhP1,000.00, payable to the Regional Office
concerned; and
c. Proof of registration with the SEC, Department of Trade and Industry,
Cooperative Development Authority or other appropriate government
agency: Provided, That the applicant shall be 100% Filipino.

The license shall be effective during the term of the pertinent small-scale
mining contract that may be issued: Provided, That the license shall be
applicable only to applications for small-scale mining contract within a
province. (Section 7, IRR)
Extent of Contract Area
The Board shall determine the reasonable size and shape of the contract area
following the meridional block system established under Presidential Decree
No. 463, as amended, otherwise known as the Mineral Resources Development
Decree of 1974, but in no case shall the area exceed twenty hectares (20 has.)
per contractor and the depth or length or length of the tunnel or adit not
exceeding that recommended by the director taking into account the following
circumstances:

a) Size of membership and capitalization of the cooperative; 



b) Size of mineralized area; 

c) Quantity of mineral deposits; 

d) Safety of miners; 

e) Environmental impact and other considerations; and 

f) Other related circumstances. 

Under the IRR

In no case shall the applied area be less than 1.25 hectares and more than 20
hectares per small-scale mining contract.

The Board shall subdivide the meridional block into 64 parcels at 3.75" of
latitude and 3.75" of longitude per parcel, containing an area of 1.25 hectares,
more or less: Provided, That a small-scale mining contract area shall consist of
adjacent and contiguous parcels. (Section11, IRR)
Easement Rights
Upon the declaration of a people's small-scale mining area, the Director, in
consultation with the operator, claim owner, landowner or lessor of an affected
area, shall determine the right of the small-scale miners to existing facilities
such as mining and logging roads, private roads, port and communication
facilities, processing plant which are necessary for the effective
implementation of the People's Small-scale Mining Program, subject to
payment of reasonable fees to the operator, claim owner, landowner or lessor.
Rights under a People's Small-Scale
Mining Contract
A people's small-scale mining contract entitles the small-
scale mining contractor to the right to:

 mine,
 extract and
 dispose of mineral ores for commercial purposes.

In no case shall a small-scale mining contract be


subcontracted, assigned or otherwise transferred.
Terms and Conditions of the Contract

A contract shall have a term of two (2) years, renewable subject to verification
by the Board for like periods as long as the contractor complies with the
provisions set forth in this Act, and confers upon the contractor the
right to mine within the contract area:

Provided, That the holder of a small-scale mining contract shall have the
following duties and obligations:
Duties and Obligations

a) Undertake mining activities only in accordance with a mining plan duly


approved by the Board;

b) Abide by the Mines and Geosciences Bureau and the Small-scale Mining
Safety Rules and Regulations;

c) Comply with his obligations to the holder of an existing mining right;


Duties and Obligations
d) Pay all taxes, royalties or government production share as are now or may
hereafter be provided by law; 


e) Comply with pertinent rules and regulations on environmental protection


and conservation, particularly those on tree-cutting; mineral-processing and
pollution control; 


f) File under oath at the end of each month a detailed production and
financial report to the Board; and 


g) Assume responsibility for the safety of persons working in the mines.


Under the IRR, the following conditions shall be
incorporated in every small-scale mining contract:
a. The small-scale mining contract may cover non-metallic minerals but in
case of the metallic minerals, it shall only be limited to gold, silver or
chromite and shall have a term of two (2) years, renewable for like periods
but not to exceed a total term of six (6) years.

b. The small-scale mining contract confers upon the small-scale mining


contractor the right to extract and dispose of the authorized minerals
within the small-scale mining contract area: Provided, That the ore
produced shall not exceed fifty thousand (50,000) metric tons annually and
shall be processed in a custom mill;
The small-scale mining contractor
shall:
1. Conduct small-scale mining in accordance with the Two-year Work Program,
PEIMP, ASHP and CDMP, duly approved by the Regional Office concerned,
and the ECC;

2. Undertake extraction and/or breakage of materials without the use of


explosives, blasting accessories, explosives ingredients and/or sophisticated
and/or heavy equipment;

3. Not resort to hydraulicking or compressor mining at any stage of small-


scale mining within the small-scale mining contract area;

4. Not use mercury in any phase of small-scale mining; 


5. Confine small-scale mining to its small-scale mining contract area; 



The small-scale mining contractor
shall:
6. Abide by DAO No. 97-30, otherwise known as the "Small-Scale Mine
Safety Rules and Regulations";
7. Comply with its obligations to the holder of a mining
permit/contract, if applicable;
8. Sell its production outputs to the Bangko Sentral ng Pilipinas (BSP)
or thru its authorized buying station(s)/agent(s), in the case of gold
production;
9. Pay all taxes, royalties and/or government production share as
provided by law at the time the small-scale mining contract is signed;
10. Comply with pertinent rules and regulations on environmental
protection and conservation; and
11. Submit under oath at the end of each month a detailed production
report and annual financial report to the Board.
Rights of Claim owners

In case a site declared and set aside as a people's small-scale mining area is
covered by an existing mining right, the claim owner and the small-scale
miners therein are encouraged to enter into a voluntary and acceptable
contractual agreement with respect to the small-scale utilization of the
mineral values from the area under claim.
In case of disagreement, the claim owner shall be entitled to the
following rights and privileges:
 Exemption from the performance of annual work obligations and payment of
occupation fees, rental, and real property taxes; 

 Subject to the approval of the Board, free access to the contract area to
conduct metallurgical tests, explorations and other activities, provided such
activities do not unduly interfere with the operations of the small-scale miners;
and 

 Royalty equivalent to one and one half percent (1-1/2%) of the gross value of
the metallic mineral output or one percent (1%) of the gross value of the
nonmetallic mineral output to be paid to the claim owner: Provided, That such
rights and privileges shall be available only if he is not delinquent and other
performance of his annual work obligations and other requirements for the last
two (2) years prior to the effectivity of this Act. 

Rights of Private Owners

The private landowner or lawful possessor shall be notified of any plan or


petition to declare his land as a people's mining area. Said landowner may
oppose such plan or petition in an appropriate proceeding and hearing
conducted before the Board.
Rights of Private Owners
If a private land is declared as a people's small-scale mining area, the owner
and the small scale- mining contractors are encouraged to enter into a
voluntary and acceptable contractual agreement for the small-scale utilization
of mineral values from the private land: Provided, That the owner shall in all
cases be entitled to the payment of actual damages which he may suffer as a
result of such declaration: Provided further, That royalties paid to the owner
shall in no case exceed one percent (1%) of the gross value of the minerals
recovered as royalty.
Ownership of Mill Tailings
The small-scale mining contractor shall be the owner of all mill tailings
produced from the contract area. He may sell the tailings or have them
processed in any custom mill in the area: Provided, That, if the small-scale
mining contractor decide to sell its mill tailings, the claim owner shall have
the preemptive right to purchase said mill tailings at the prevailing market
price.
Sale of Gold
All gold produced by small-scale miners in any mineral area shall be
sold to the Central Bank, or its duly authorized representatives, which
shall buy it at prices competitive with those prevailing in the world market
regardless of volume or weight.

The Central Bank shall establish as many buying stations in gold-rush areas
to fully service the requirements of the small-scale minerals thereat.
Mineral Processing
• Small-scale mineral processing shall be undertaken only thru centralized
custom mills located in mineral processing zones under a Mineral
Processing License (MPL): Provided, That no mercury shall be used in
mineral processing.

• A mineral processing license (MPL) must be first secured.

• The term of the MPL shall be coterminous with the small-scale mining
contracts issued in the Minahang Bayan;
Establishment and Operation of Centralized
Custom Mills and Mineral Processing Zones
The establishment and operation of centralized custom mills to process
minerals or ore-bearing materials and mineral processing zones, shall be
subject to the following conditions:
a. The mineral processing zones shall be duly designated by the local
government unit concerned thru the Board, and shall be strategically
situated inside a Minahang Bayan; and
b. Custom mills shall be constituted as withholding agents for the royalties,
production share or other taxes due the government: Provided, That as
withholding agents, such custom mills shall be registered with the Bureau of
Internal Revenue.
Establishment and Operation of Centralized
Custom Mills and Mineral Processing Zones
• In the case where a custom mill or a mineral processing zone shall be located
within an area covered by existing mining application(s) or mining
permit(s)/contract(s), the Board shall fix the amount of compensation due the
mining applicant(s) or holder(s) of mining permit/contract.

• In mining areas where the private sector is unable to establish a custom mill, the
Board shall recommend to the Department, thru the Director, the construction of
the custom mill, if viable.

• The Department shall establish assay laboratories to cross-check the integrity of


custom mills and to render metallurgical and laboratory services to miners.
The small-scale mining contractor/mineral processor shall pay to the
government the following:
1. National and local taxes due as provided for in the National Internal
Revenue Code;

2. Royalty equivalent to 5% of the gross output, for small-scale mining


within mineral reservations; and

3. Government production share.


People's Small-scale Mining
Protection Fund
Shall be fifteen percent (15%) of the national government's share due the
Government. The Board shall act as Trustee of the fund.

To be used primarily for:

1.information dissemination and training of small-scale miners, on safety,


health and environmental protection, and

2.the establishment of mine rescue and recovery teams including the


procurement of rescue equipment necessary in cases of emergencies such as
landslides, tunnel collapse, or the like.

The fund shall also be made available to address the needs of the small-scale
miners brought about by accidents and/or fortuitous events.
Cancellation of Small-Scale Mining
Contracts/Mineral Processing License and
Administrative Fines
A small-scale mining contract/mineral processing license may be cancelled by
the Secretary thru the Board, after due process, on the following grounds:

a. Failure to comply with the terms and conditions of the small-scale mining
contract/mineral processing license;
b. Violation of any provision of RA No. 7076 and its IRR, and other
applicable laws, rules and regulation;
c. Non-payment of fees, taxes, royalties and/or government production share
in accordance with the IRR and other applicable laws, rules and regulations
for two (2) consecutive years
d. Abandonment of the small-scale mining contract area or mineral
processing plant by the small-scale miner or mineral processor, respectively;
Cancellation of Small-Scale Mining
Contracts/Mineral Processing License and
Administrative Fines

e. Any misrepresentation in any statement made in the application or those


made later in support thereof;

f. Committing acts constituting unfair competition;

g. When national interest and public welfare so require or for environmental


protection or ecological reasons; and

h. When the Minahang Bayan has been reverted pursuant to Section 32 of the
IRR.
Cancellation of Small-Scale Mining
Contracts/Mineral Processing License and
Administrative Fines
The cancellation of a small-scale mining contract/mineral processing license
shall not release the small-scale miner/mineral processor from any and all
obligations he/she/it may have.

When small-scale mining contracts are cancelled for any of the above-
mentioned grounds, except for items g and h, the Secretary, thru the Board,
may impose fines of an amount not less than Twenty Thousand Pesos
(PhP20,000.00) but not more than One Hundred Thousand Pesos
(PhP100,000.00). Non-payment of the fine imposed shall render the small-
scale mining contractor ineligible for other small-scale mining contracts.
Reversion of People's Small-scale Mining
Areas.
The Secretary, upon recommendation of the director, shall withdraw the
status of the people's small-scale mining area when it can no longer
feasibly operated on a small-scale mining basis or when the safety,
health and environmental conditions warrant that the same shall
revert to the State for proper disposition.
Actual Occupation by Small-
scale Miners
Small-scale miners who have been in actual operation of mineral lands on or
before August 1, 1987 as determined by the Board shall not be dispossessed,
ejected or removed from said areas: provided, that they comply with the
provisions of this Act.
Provincial/City Mining Regulatory
Board
• What is referred to as The Board, and is under the direct supervision of the
Secretary.

• It shall act as the implementing agency of the Department.

• It shall exercise the following powers and functions, subject to review by the
Secretary:
(a) Declare and segregate existing gold-rush areas for small-scale mining;
(b) Reserve future gold and other mining areas for small-scale mining;
(c) Award contracts to small-scale miners;
(d) Formulate and implement rules and regulations related to small-scale mining;
(e) Settle disputes, conflicts or litigations over conflicting claims within a people's
small-scale mining area, an area that is declared a small-mining; and
(f) Perform such other functions as may be necessary to achieve the goals and
objectives of this Act.
Composition of the Provincial/City
Mining Regulatory Board
The Board shall be composed of the Department of Environment and
Natural Resources representative as Chairman;

And the representative of the governor or city mayor, as the


representative of the governor or city mayor, as the case may be, one (1) small
scale mining representative, one (1) big-scale mining representative;

And the representative from a nongovernment organization who shall


come from an environmental group, as members.

The representatives from the private sector shall be nominated by their


respective organizations and appointed by the Department regional director.
The Department shall provide the staff support to the Board.
Administrative Supervision over the
People's Small-scale Mining Program
The Secretary through his representative shall exercise direct
supervision and control over the program and activities of the small-scale
miners within the people's small-scale mining area.

The Secretary shall within ninety (90) days from the effectivity of this
Act promulgate rules and regulations to effectively implement the
provisions of the same.

Priority shall be given to such rules and regulations that will ensure the
least disruption in the operations of the small-scale miners.
Penal Sanctions

Violations of the provisions of this Act or of the rules and regulations issued
pursuant hereto shall be penalized with imprisonment of not less than six
(6) months nor more than six (6) years and shall include the
confiscation and seizure of equipment, tools and instruments.
RELATED
JURISPRUDENCE
Southeast Mindanao Gold Mining Corp.
vs. Balite Portal Mining Cooperative, et al
Facts:

This case involves a rich tract of mineral land situated in Agusal-Davao-Surigao Forest
River or known as Diwalwal Gold Rush Area. Diwalwal has been embroiled in
controversy with hundreds of people perishing in mine accidents, man-made or
otherwise, brought about by unregulated mining activities.

On March 10, 1988, Marcopper was granted an Exploration Permit no. 133 over 4,491
hectares of land which included the Diwalwal area. This acquisition of mining rights by
Marcopper was challenged byu Apex. However, the Court found out that Apex did not
comply with the procedural requisites of acquiring mining rights within forest reserves.
Southeast Mindanao Gold Mining Corp.
vs. Balite Portal Mining Cooperative, et al
Subsequently Congress enacted RA 7076 or the People Small Scale Mining Act where
DENR issued and Order Declaring 729 hectares of Diwalwal Areas as non-forestland
open to small scale mining. Later on, a petition for cancellation of EP No. 133 was filed
before DENR and while case is pending, Marcopper assigned its EP No. 133 to
petitioner here in Southeast Mindanao Gold Mining Corp.

On March 3, 1995, RA 7942 or the Philippine Mining Act was enacted which later on
allow, through Provincial Mining Regulatory Board of Davao, issuance of ore transport
permits (OTPs) to small-scale miners operating in Diwalwal mines. With this,
petitioner filed a complaint contending that the illegal issuance of OTPs allowed
extraction and hauling of P60,000 worth of gold.

On June 24, 1997, Memorandum 97-03 was issued by the DEBR Secretary providing for
a directs state utilization.
ISSUE:

Whether or not the Memorandum issued by the secretary of the DENR


divested petitioner’s right to the gold rush area are under EP No. 133
HELD:

No. The challenged memorandum 97-03 did not conclusively adopt direct
statute utilization as policy in resoving Diwalwal dispute. The terms of the
Memorandum clearly indicate that what was directed thereunder was
merely a study of this option and nothing else. It did not grant any
mamagement/operating profit-sharing agreement to small-scale miners or to
any party but is simply instructed DENR officials concerned to undertake
studies to determine its feasibility.
DENR suspends small-scale
mining in Cordillera
Nearly 100 people were buried after a landslide hit a mining shelter in
Itogon, Benguet during the onslaught of Typhoon Ompong. The typhoon, the
strongest to enter the country this year, has left more than 50 people dead,
mostly in landslides.

The Department of Environment and Natural Resources (DENR) yesterday


ordered the suspension of all small-scale mining operations in the Cordillera
Administrative Region (CAR) in the wake of typhoon-induced landslides that
left dozens of people dead.

Environment Secretary Roy Cimatu said the revocation of mining permits


was made “to prevent further danger” to the lives of small-scale miners.

Cimatu said the revocation would cover the temporary contracts of 10 small
mining associations that were issued temporary permits.

Congress has to repeal the Philippine Mining Act to put an end to mining,
which has caused environmental destruction and triggered deadly
landslides, President Duterte said.
Landslide in Itogon, Benguet
Landslide in Itogon, Benguet
Landslide in Itogon, Benguet