Republic of the Philippines Congress of the Philippines Metro Manila Eighth Congress Republic Act No.

7076 June 27, 1991

AN AC CREA !N" A PE#P$E%& &'A$$(&CA$E '!N!N" PR#"RA' AN) *#R # +ER P,RP#&E&

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:: &ection 1. itle. This ct shall be !no"n as the -People%s &./ll( sc/le 'ining Act of 1991.&ection 2. )ecl/r/tion of Polic0. #t is hereby declared of the State to promote$ develop$ protect and rationali%e viable small&scale mining activities in order to generate more employment opportunities and provide an e'uitable sharing of the nation(s "ealth and natural resources$ giving due regard to e)isting rights as herein provided* &ection 1. )efinitions. +or purposes of this ct$ the follo"ing terms shall be defined as follo"s: ,a- .Minerali%ed areas. refer to areas "ith naturally occurring mineral deposits of gold$ silver$ chromite$ !aolin$ silica$ marble$ gravel$ clay and li!e mineral resources/ ,b- .Small&scale mining. refers to mining activities "hich rely heavily on manual labor using simple implement and methods and do not use e)plosives or heavy mining e'uipment/ ,c- .Small&scale miners. refer to +ilipino citi%ens "ho$ individually or in the company of other +ilipino citi%ens$ voluntarily form a cooperative duly licensed by the 0epartment of 1nvironment and 2atural Resources to engage$ under the terms and conditions of

a contract$ in the e)traction or removal of minerals or ore&bearing materials from the ground/ ,d- .Small&scale mining contract. refers to co&production$ 3oint venture or mineral production sharing agreement bet"een the State and a small&scale mining contractor for the small&scale utili%ation of a plot of mineral land/ ,e- .Small&scale mining contractor. refers to an individual or a cooperative of small&scale miners$ registered "ith the Securities and 1)change Commission or other appropriate government agency$ "hich has entered into an agreement "ith the State for the small&scale utili%ation of a plot of mineral land "ithin a people(s small&scale mining area/ ,f- . ctive mining area. refers to areas under actual e)ploration$ development$ e)ploitation 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 claimo"ner and4or under contract "ith an operator$ but in no case to e)ceed the ma)imum area allo"ed by la"/ ,g- .1)isting mining right. refers to perfected and subsisting claim$ lease$ license or permit covering a minerali%ed area prior to its declaration as a people(s small&scale mining area/ ,h- .Claimo"ner. refers to a holder of an e)isting mining right/ ,i- .Processor. refers to a person issued a license to engage in the treatment of minerals or ore&bearing materials such as by gravity concentration$ leaching benefication$ cyanidation$ cutting$ si%ing$ polishing and other similar activities/ ,3- .5icense. refers to the privilege granted to a person to legitimately pursue his occupation as a small&scale miner or processor under this ct/

,!- .Mining plan. refers to a t"o&year program of activities and methodologies employed in the e)traction and production of minerals or ore&bearing materials$ including the financial plan and other resources in support thereof/ ,l- .0irector. refers to the regional e)ecutive director of the 0epartment of 1nvironment and 2atural Resources/ and ,m- .Secretary. refers to the Secretary of the 0epartment of 1nvironment and 2atural Resources* &ection 2. People%s &./ll(sc/le 'ining Progr/.. +or the purpose of carrying out the declared policy provided in Section 6 hereof$ there is hereby established a People(s Small&scale Mining Program to be implemented by the Secretary of the 0epartment of 1nvironment and 2atural Resources$ hereinafter called the 0epartment$ in coordination "ith other concerned government agencies$ designed to achieve an orderly$ systematic and rational scheme for the small&scale development and utili%ation of mineral resources in certain mineral areas in order to address the social$ economic$ technical$ and environmental connected "ith small&scale mining activities* The People(s Small&scale Mining Program shall include the follo"ing features: ,a- The identification$ segregation and reservation of certain mineral lands as people(s small&scale mining areas/ ,b- The recognition of prior e)isting rights and productivity/ ,c- The encouragement of the formation of cooperatives/ ,d- The e)tension of technical and financial assistance$ and other social services/ ,e- The e)tension of assistance in processing and mar!eting/ ,f- The generation of ancillary livelihood activities/

,g- The regulation of the small&scale mining industry "ith the vie" to encourage gro"th and productivity/ and ,h- The efficient collection of government revenue* &ection 3. )ecl/r/tion of People%s &./ll(sc/le 'ining Are/s . The Board is hereby authori%ed to declare and set aside people(s small&scale mining areas in sites onshore suitable for small&scale mining$ sub3ect to revie" by the Secretary$ immediately giving priority to areas already occupied and actively mined by small&scale miners before ugust 7$ 789:: 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 e)isting forest rights or reservations and have not been declared as tourist or marine reserved$ par!s and "ildlife reservations$ unless their status as such is "ithdra"n by competent authority* &ection 6. *uture People%s &./ll(sc/le 'ining Are/s . The follo"ing lands$ "hen suitable for small&scale mining$ may be declared by the Board as people(s small scale mining areas: ,a- Public lands not sub3ect to any e)isting right/ ,b- Public lands covered by e)isting mining rights "hich are not active mining areas/ and ,c- Private lands$ sub3ect to certain rights and conditions$ e)cept those "ith substantial improvements or in bona fide and regular use as a yard$ stoc!yard$ garden$ plant nursery$ plantation$ cemetery or burial site$ or land situated "ithin one hundred meters ,7;; m*- from such cemetery or burial site$ "ater reservoir or a separate parcel of land "ith an area of ten thousand s'uare meters ,7;$;;; s'* m*- or less* &ection 7. Ancestr/l $/n4s. 2o ancestral land may be declared as a people(s small&scale mining area "ithout the prior consent of the cultural communities concerned: provided$ 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 a"arding of small&scale mining contracts* &ection 5. Registr/tion of &./ll(sc/le 'iners. ll persons underta!ing small&scale mining activities shall register as miners "ith the Board and may organi%e themselves into cooperatives in order to 'ualify for the a"arding of a people(s small&scale mining contract* &ection 9. A6/r4 of People%s &./ll(sc/le 'ining Contr/cts . people(s small&scale mining contract may be a"arded by the Board to small&scale miners "ho have voluntarily organi%ed and have duly registered "ith the appropriate government agency as an individual miner or cooperative/ Provided$ that only one ,7- people(s small&scale mining contract may be a"arded at any one time to a small&scale mining operations "ithin one ,7- year from the date of a"ard: provided$ further$ that priority shall be given or city "here the small& scale mining area is located* pplications for a contract shall be sub3ect to a reasonable fee to be paid to the 0epartment of 1nvironment and 2atural Resources regional office having 3urisdiction over the area* &ection 10. E7tent of Contr/ct Are/. The Board shall determine the reasonable si%e and shape of the contract area follo"ing the meridional bloc! system established under Presidential 0ecree 2o* <=>$ as amended$ other"ise !no"n as the Mineral Resources 0evelopment 0ecree of 78:<$ but in no case shall the area e)ceed t"enty hectares ,6; has*- per contractor and the depth or length of the tunnel or adit not e)ceeding that recommended by the director ta!ing into account the follo"ing circumstances: ,a- Si%e of membership and capitali%ation of the cooperative/ ,b- Si%e of minerali%ed area/ ,c- ?uantity of mineral deposits/ ,d- Safety of miners/

,e- 1nvironmental impact and other considerations/ and ,f- @ther related circumstances* &ection 11. E/se.ent Rights. Apon the declaration of a people(s small&scale mining area$ the director$ in consultation "ith the operator$ claimo"ner$ lando"ner or lessor of an affected area$ shall determine the right of the small scale miners to e)isting facilities such as mining and logging roads$ private roads$ port and communication facilities$ processing plants "hich are necessary for the effective implementation of the People(s Small&scale Mining Program$ sub3ect to payment of reasonable fees to the operator$ claimo"ner$ lando"ner or lessor* &ection 12. Rights ,n4er / People%s &./ll(sc/le 'ining Contr/ct. people(s small&scale mining contract entitles the small& scale mining contractor to the right to mine$ e)tract and dispose of mineral ores for commercial purposes* #n no case shall a small&scale mining contract be subcontracted$ assigned or other"ise transferred* &ection 11. er.s /n4 Con4itions of the Contr/ct . contract shall have a term of t"o ,6- years$ rene"able sub3ect to verification by the Board for li!e periods as long as the contractor complies "ith the provisions set forth in this ct$ and confers upon the contractor the right to mine "ithin the contract area: provided$ that the holder of a small&scale mining contract shall have the follo"ing duties and obligations: ,a- Anderta!e mining activities only in accordance "ith a mining plan duly approved by the Board/ ,b- bide by the Mines and Beosciences Bureau and the small& scale Mining Safety Rules and Regulations/ ,c- Comply "ith his obligations to the holder of an e)isting mining right/ ,d- Pay all ta)es$ royalties or government production share as are no" or may hereafter be provided by la"/

,e- Comply "ith pertinent rules and regulations on environmental protection and conservation$ particularly those on tree&cutting mineral&processing and pollution control/ ,f- +ile under oath at the end of each month a detailed production and financial report to the Board/ and ,g- ssume responsibility for the safety of persons "or!ing in the mines* &ection 12. Rights of Cl/i.o6ners. #n case a site declared and set aside as a people(s&scale mining area is covered by an e)isting mining right$ the claimo"ner and the small&scale miners therein are encouraged to enter into a voluntary and acceptable contractual agreement "ith respect to the small&scale utili%ation of the mineral values from the area under claim* #n case of disagreement$ the claimo"ner shall be entitled to the follo"ing rights and privileges: ,a- 1)emption from the performance of annual "or! obligations and payment of occupation fees$ rental$ and real property ta)es/ ,b- Sub3ect to the approval of the Board$ free access to the contract area to conduct metallurgical tests$ e)plorations and other activities$ provided such activities do not unduly interfere "ith the operations of the small&scale miners/ and ,c- Royalty e'uivalent to one and one half percent ,7 746C- of the gross value of the metallic mineral output or one percent ,7C- of the gross value of the nonmetallic mineral output to be paid to the claimo"ner: provided$ that such rights and privileges shall be available only if he is not delin'uent and other performance of his annual "or! obligations and other re'uirements for the last t"o ,6- years prior to the effectivity of this ct* &ection 13. Rights of Pri8/te $/n4o6ners. The private lando"ner or la"ful possessor shall be notified of any plan or petition to declare his land as a people(s small&scale mining area* Said

lando"ner may oppose such plan or petition in an appropriate proceeding and hearing conducted before the Board* #f a private land is declared as a people(s small&scale mining area$ the o"ner and the small&scale mining contractors are encouraged to enter into a voluntary and acceptable contractual agreement for the small& scale utili%ation of the mineral values from the private land: provided$ that the o"ner shall in all cases be entitled to the payment of actual damages "hich he may suffer as a result of such declaration: provided$ further$ that royalties paid to the o"ner shall in no case e)ceed one percent ,7C- of the gross value of the minerals recovered as royalty* &ection 16. #6nership of 'illlings. The small&scale mining contractor shall be the o"ner of all milllings produced from the contract area* He may sell thelings or have them processed in any custom mill in the area: provided$ that$ if the small&scale mining contractor decide to sell its milllings$ the claimo"ner shall have a preemptive right to purchase said milllings at the prevailing mar!et price* &ection 17. &/le of "ol4. ll gold produced by small&scale miners in any mineral area shall be sold to the Central Ban!$ or its duly authori%ed representatives$ "hich shall buy it at prices competitive "ith those prevailing in the "orld mar!et regardless of volume or "eight* The Central Ban! shall establish as many buying stations in gold&rush areas to fully service the re'uirements of the small&scale minerals thereat* &ection 15. Custo. 'ills. The establishment and operation of safe and efficient customs mills to process minerals or ore&bearing materials shall be limited to mineral processing %ones duly designated by the local government unit concerned upon recommendation of the Board*

#n mining areas "here the private sector is unable to establish custom mills$ the Bovernment shall construct such custom mills upon the recommendation of the Board based on the viability of the pro3ect* The Board shall issue licenses for the operation of custom mills and other processing plants sub3ect to pollution control and safety standards* The 0epartment shall establish assay laboratories to cross&chec! the integrity of custom mills and to render metallurgical and laboratory services to mines* Custom mills shall be constituted as "ithholding agents for the royalties$ production share or other ta)es due the Bovernment* &ection 19. "o8ern.ent &h/re /n4 Allot.ent. The revenue to be derived by the Bovernment from the operation of the mining program herein established shall be sub3ect to the sharing provided in the 5ocal Bovernment Code* &ection 20. People%s &./ll(sc/le 'ining Protection *un4. There is hereby created a People(s Small&scale Mining Protection +und "hich shall be fifteen percent ,7DC- of the national government(s share due the Bovernment "hich shall be used primarily for information dissemination and training of small&scale miners on safety$ health and environmental protection$ and the establishment of mine rescue and recovery teams including the procurement of rescue e'uipment necessary in cases of emergencies such as landslides$ tunnel collapse$ or the li!e* The fund shall also be made available to address the needs of the small&scale miners brought about by accidents and4or fortuitous events* &ection 21. Rescission of Contr/cts /n4 A4.inistr/ti8e *ines. The noncompliance "ith the terms and conditions of the contract or violation of the rules and regulations issued by the Secretary pursuant to this ct$ as "ell as the abandonment of the

mining site by the contractor$ shall constitute a ground for the cancellation of the contracts and the e3ectment from the people(s small&scale mining area of the contractor* #n addition$ the Secretary may impose fines against the violator in an amount of not less than T"enty thousand pesos ,P6;$;;;*;;- and not more than @ne hundred thousand pesos ,P7;;$;;;*;;-* 2onpayment of the fine imposed shall render the small&scale mining contractor ineligible for other small& scale mining contracts* &ection 22. Re8ersion of People%s &./ll(sc/le 'ining Are/s . The Secretary$ upon recommendation of the director$ shall "ithdra" the status of the people(s small&scale mining area "hen it can no longer feasibly operated on a small&scale mining basis or "hen the safety$ health and environmental conditions "arrant that the same shall revert to the State for proper disposition* &ection 21. Actu/l #ccup/tion b0 &./ll(sc/le 'iners . Small& scale miners "ho have been in actual operation of mineral lands on or before ugust 7$ 789: as determined by the Board shall not be dispossessed$ e3ected or removed from said areas: provided$ that they comply "ith the provisions of this ct* &ection 22. Pro8inci/l9Cit0 'ining Regul/tor0 :o/r4 . There is hereby created under the direct supervision and control of the Secretary a provincial4city mining regulatory board$ herein called the Board$ "hich shall be the implementing agency of the 0epartment$ and shall e)ercise the follo"ing po"ers and functions$ sub3ect to revie" by the Secretary: ,a- 0eclare and segregate e)isting gold&rush areas for small&scale mining/ ,b- Reserve future gold and other mining areas for small&scale mining/ ,c- "ard contracts to small&scale miners/

,d- +ormulate and implement rules and regulations related to small&scale mining/ ,e- Settle disputes$ conflicts or litigations over conflicting claims "ithin 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 ob3ectives of this ct* &ection 23. Co.position of the Pro8inci/l9Cit0 'ining Regul/tor0 :o/r4. The Board shall be composed of the 0epartment of 1nvironment and 2atural 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 ,7- small scale mining representative$ one ,7- big&scale mining representative$ and the representative from a nongovernment organi%ation "ho shall come from an environmental group$ as members* The representatives from the private sector shall be nominated by their respective organi%ations and appointed by the 0epartment regional director* The 0epartment shall provide the staff support to the Board* &ection 26. A4.inistr/ti8e &uper8ision o8er the People%s &./ll(sc/le 'ining Progr/.. The Secretary through his representative shall e)ercise direct supervision and control over the program and activities of the small&scale miners "ithin the people(s small&scale mining area* The Secretary shall "ithin ninety ,8;- days from the effectivity of this ct promulgate rules and regulations to effectively implement the provisions of the same* Priority shall be given to such rules and regulations that "ill ensure the least disruption in the operations of the small&scale miners*

&ection 27. Pen/l &/nctions. Eiolations of the provisions of this ct or of the rules and regulations issued pursuant hereto shall be penali%ed "ith imprisonment of not less than si) ,=- months nor more than si) ,=- years and shall include the confiscation and sei%ure of e'uipment$ tools and instruments* &ection 25. Repe/ling Cl/use. ll la"s$ decrees$ letters of instruction$ e)ecutive orders$ rules and regulations$ and other issuances$ or parts thereof$ in conflict or inconsistent "ith this ct are hereby repealed or modified accordingly* &ection 29. &ep/r/bilit0 Cl/use. ny section or provision of this ct "hich may be declared unconstitutional shall not affect the other sections or provisions hereof* &ection 10. Effecti8it0. This ct shall ta!e effect fifteen ,7D- days after its publication in the @fficial Ba%ette or in a national ne"spaper of general circulation* pproved: June 27, 1991*