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Slide 3 ___________ A1________________________
Who is a Qualified Person?
• Qualified person means
• any citizen of the Philippines with capacity to contract,
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• OR a corporation, partnership, association, or cooperative
organized or authorized for the purpose of engaging in mining,
• with technical and financial capability to undertake mineral resources
development and ___________________________________
• duly registered in accordance with law at least sixty per centum (60%) of
the capital of which is owned by citizens of the Philippines:
• Provided, That a legally organized foreign-owned corporation shall be
deemed a qualified person for purposes of granting an exploration permit,
financial or technical assistance agreement or mineral processing permit. ___________________________________
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DENR ___________________________________
• Responsible for the conservation, management, development, and
proper use of the State's mineral resources including those in
reservations, watershed areas, and lands of the public domain.
• Secretary of DENR has the Authority to enter into mineral agreements
on behalf of the Government upon the recommendation of the ___________________________________
Director of Mines and Geosciences Bureau
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Scope of RA 7942: (Sec 15)
•Exploration, ___________________________________
•Development,
•Utilization and
•Processing
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of all mineral resources.
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Slide 9 Opening of Ancestral Lands for Mining
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Operations
• No ancestral land shall be opened for mining-operations ___________________________________
without prior consent of the indigenous cultural community
concerned. (Sec 16)
• In the event of an agreement with an indigenous cultural
community pursuant to the preceding section, the Royalty ___________________________________
Payment, upon utilization of the minerals shall be agreed
upon by the parties. The said royalty shall form part of a
trust fund for the socioeconomic well-being of the
indigenous cultural community. (Sec 17) ___________________________________
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Slide 12 ______________ A3_____________________
Which Areas are closed to Mining Operations?
5. In areas covered by small-scale miners as defined by law
5. unless with prior consent of the small-scale miners, in which case a royalty
payment upon the utilization of minerals shall be agreed upon by the
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parties, said royalty forming a trust fund for the socioeconomic
development of the community concerned; and
6. Old growth or virgin forests, proclaimed watershed forest
reserves, wilderness areas, mangrove forests, mossy forests, ___________________________________
national parks provincial/municipal forests, parks, greenbelts,
game refuge and bird sanctuaries and other areas expressly
prohibited by other laws
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Slide 13 _________________A4__________________
Chapter IV Exploration Permit
• What is an Exploration Permit? (Sec 20)
• grants the right to conduct exploration for all minerals in specified areas
• Who grants an Exploration Permit?
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• Mines and Geosciences Bureau shall have the authority to grant an
exploration Permit to a qualified person.
• Duration? (Sec 21)
• shall be for a period of two (2) years, subject to annual review and
relinquishment or renewal upon the recommendation of the Director of
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Mines and Geosciences Bureau
• Transferability? (Sec 25)
• An exploration permit may be transferred or assigned to a qualified person
subject to the approval of the DENR Secretary upon the recommendation of
the Director of Mines and Geosciences Bureau ___________________________________
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Slide 14 Section 22
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Maximum Areas for Exploration Permit
ON SHORE, IN ANY
ONE PROVINCE
ONSHORE IN THE
ENTIRE
PHILIPPINES
OFFSHORE,
BEYOND FIVE
HUNDRED METERS
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FROM THE MEAN
LOW TIDE LEVEL
FOR INDIVIDUALS twenty (20) blocks forty (40) blocks one hundred (100)
blocks
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FOR two hundred (200) four hundred (400) one thousand
PARTNERSHIPS, blocks blocks (1,000) blocks
CORPORATIONS,
COOPERATIVES, OR
ASSOCIATIONS
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Slide 15 CHAPTER V - MINERAL AGREEMENTS
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Mineral Agreement (Sec 26)
• Minerals refers to all naturally occurring inorganic substance in solid,
gas, liquid, or any intermediate state excluding energy materials such ___________________________________
as coal, petroleum, natural gas, radioactive materials, and geothermal
energy.
• Mineral agreement means a contract between the government and a
contractor, involving ___________________________________
• mineral production-sharing agreement,
• co-production agreement,
• or joint-venture agreement.
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Slide 17 _______________A5____________________
Modes/Forms of Mineral Agreements
Mineral production sharing agreement
• is an agreement where the Government grants to the contractor the
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exclusive right to conduct mining operations within a contract area
and shares in the gross output.
• The contractor shall provide the financing, technology, management
and personnel necessary for the implementation of this agreement. ___________________________________
Co-production agreement
is an agreement between the Government and the contractor wherein
the Government shall provide inputs to the mining operations other
than the mineral resource.
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Slide 18 _________________A5__________________
Modes/Forms of Mineral Agreements
• Joint venture agreement
• is an agreement where a joint-venture company is organized by the
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Government and the contractor with both parties having equity shares.
Aside from earnings in equity, the Government shall be entitled to a share
in the gross output.
Note:
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in case the applicant has been in the mining industry for any length of time,
he should possess a satisfactory environmental track record as determined
by the Mines and Geosciences Bureau and in consultation with the
Environmental Management Bureau of the Department.
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FOR PARTNERSHIPS, one hundred (100) Two hundred (200) Five hundred (500)
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CORPORATIONS, blocks blocks blocks
COOPERATIVES, OR
ASSOCIATIONS
FOR THE EXCLUSIVE a larger area to be
ECONOMIC ZONE, determined by the
Secretary.
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Slide 21 _______________A5____________________
Note:
• Assignment or transfer of rights and obligations under any mineral
agreement except a financial or technical assistance agreement shall
be subject to the prior approval of the Sec of DENR; (sec 30)
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• if not acted upon by the Secretary within thirty (30) working days from official
receipt thereof, unless patently unconstitutional or illegal.
• Section 31 - withdrawal of Mineral Agreements
• Term: (Sec 32)
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• not exceeding twenty-five (25) years
• to start from the date of execution thereof,
• and renewable for another term not exceeding twenty-five (25) years under
the same terms and conditions thereof,
• without prejudice to changes mutually agreed upon by the parties.
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Slide 23 ________________B2___________________
• Who may enter into an FTAA? Sec 33
• Any qualified person
• with technical and financial capability to undertake large-scale exploration,
development, and utilization of mineral resources in the Philippines may
enter into a financial or technical assistance agreement directly with the ___________________________________
Government through the DENR
Section 34: 1,000 meridional blocks 4,000 meridional blocks 1,000 meridional blocks
Maximum
onshore; offshore onshore;
AND 4,000 meridional
blocks offshore
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Contract Area provided that it shall not
exceed the maximum
limits for onshore and
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offshore areas.
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Slide 24 Section 35 – Terms and Conditions to be
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incorporated in the FTAA (Salient terms)
• Submission of proof of technical competence and track record
• Preferential use of local goods and services to the maximum extent ___________________________________
practicable
• A stipulation to give preference to Filipinos in all types of mining
employment for which they are qualified and that technology shall be
transferred to the same
• effectively use appropriate anti-pollution technology and facilities ___________________________________
• dispose of the minerals and byproducts produced under a financial or
technical assistance agreement at the highest price and more
advantageous terms and condition
• Other terms and conditions consistent with the Constitution and with this
Act
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Slide 25 • Negotiations:
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• A financial or technical assistance agreement shall be negotiated by the DENR
and executed and approved by the President.
• The President shall notify Congress of all financial or technical assistance
agreements within thirty (30) days from execution and approval thereof. (Sec
36)
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• All financial or technical assistance agreement proposals shall be filed
with the Bureau after payment of the required processing fees. (Sec
37)
• Term:
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• a term not exceeding twenty-five (25) years to start from the execution
thereof,
• renewable for not more than twenty-five (25) years under such terms and
conditions as may be provided by law. ___________________________________
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Slide 27 Case Review:
_________________B4 Please include brief
La Bugal B’laan Tribal Association v Ramos (2004)
• Such service contracts may be entered into only with respect to minerals,
facts of the case and decision; even though
petroleum and other mineral oils. The grant thereof is subject to several
safeguards, among which are these requirements:
1. The service contract shall be crafted in accordance with a general law
wala nakalagay sa slide; ang nilagay ko lng kasi
that will set standard or uniform terms, conditions and requirements,
presumably to attain a certain uniformity in provisions and avoid the
possible insertion of terms disadvantageous to the country. safeguards __________________
2. The President shall be the signatory for the government because,
supposedly before an agreement is presented to the President for
signature, it will have been vetted several times over at different levels to
ensure that it conforms to law and can withstand public scrutiny.
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Slide 28 • Within thirty days of the executed agreement, the President shall ___________________B4________________
report it to Congress to give that branch of government an
opportunity to look over the agreement and interpose timely
objections, if any.
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Slide 29 _____________B5______________________
CHAPTER VIII - QUARRY RESOURCES
• Quarry permit means a document granted to a qualified person for
the extraction and utilization of quarry resources on public or private ___________________________________
lands.
• Quarry resources refers to any common rock or other mineral
substances such as: basalt, conglomerate, coral sand, diatomaceous
earth, diorite, decorative stones, gabbro, granite, limestone, marble, ___________________________________
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Slide 30 _________________B5__________________
CHAPTER VIII - QUARRY RESOURCES
• Sec 44 - Quarry Fee and Taxes
• Sec 45 - Cancellation of Quarry Permit ___________________________________
Other Permits under Quarry Resources:
• Sec 46 - Commercial Sand and Gravel Permit
• Sec 47 - Industrial Sand and Gravel Permit
• Sec 48 - Exclusive Sand and Gravel Permit ___________________________________
• Sec 49 - Government Gratuitous Permit
• Sec 50 - Private Gratuitous Permit
• Sec 51 - Guano Permit
• Sec 52 - Gemstone Gathering Permit ___________________________________
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Slide 33 • Sec 57 - Contractor shall assist in the development of its mining ___________________C1________________
community
• Sec 58 - Activities that may be credited as expenditures for
development of mining communities
• Sec 59 – Contractor shall maintain a program to encourage and train
Filipinos to participate
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• Sec 60 - A contractor shall give preference to the use of local goods,
services and scientific and technical resources in the mining
operations, where the same are of equivalent quality, and are
available on equivalent terms as their imported counterparts. ___________________________________
• Sec 61 – A contractor shall have a period of one (1) year therefrom
within which to remove his improvements otherwise those are
donated to the government
• Sec 62 - A contractor shall give preference to Filipino citizens in all
types of mining employment within the country
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Slide 35 __________________C2_________________
CHAPTER XII - AUXILIARY MINING RIGHTS
• Sec 72 – Timber Rights - right to cut trees or timber within his mining area
• Sec 73 - Water Rights ___________________________________
• Sec 74 - Right to Possess Explosives - right to possess and use explosives
within his contract/permit area as may be necessary for his mining
operations upon approval of application
• Sec 75 - Easement Rights – when it is necessary to construct infrastructure
such as roads, railroads, mills, waste dump sites, tailings ponds,
warehouses,
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• Sec 76 - Entry into Private Lands and Concession Areas - Subject to prior
notification, holders of mining rights shall not be prevented from entry into
private lands and concession areas by surface owners, occupants, or
concessionaires when conducting mining operations therein; subject to
limitations. ___________________________________
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Slide 36 CHAPTER XIII - SETTLEMENT OF CONFLICTS
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• There shall be panel of Arbitrators before the DENR to settle conflicts;
• (sec 79) The law provides the creation of a Mines Adjudication Board
to:
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• Promulgate rules and regulations
• Conduct hearings
•
•
Proceed to hear and determine the disputes
And perform other functions as may be provided by law ___________________________________
CHAPTER XIV - GOVERNMENT SHARE (sec 80 &81)
• The Government shall have a share in the Mineral Production Sharing ___________________________________
Agreement and the in other Mineral Agreements
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Slide 41 ___________________C5________________
CHAPTER XIX
PENAL PROVISIONS
The Philippine Mining Act Punishes the following acts:
• Sec 101 - presents any false application, declaration, or evidence to the
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Government
• Sec 102 - undertaking exploration work without the necessary exploration
permit
• Sec 103 - Theft of Minerals ___________________________________
• Sec 104 - Destruction of Mining Structures
• Sec 105 - Mines Arson
• Sec 106 - Willful Damage to a Mine
• Sec 107 - Illegal Obstruction to Permittees or Contractors ___________________________________
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Slide 42 __________________C5_________________
CHAPTER XIX
PENAL PROVISIONS
The Philippine Mining Act Punishes the following acts:
• Sec 108 - Violation of the Terms and Conditions of the
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Environmental Compliance Certificate
• Sec 109 - Illegal Obstruction to Government Officials
• Sec 110 - Other Violations of the IRR ___________________________________
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Slide 43 CHAPTER XX
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TRANSITORY AND MISCELLANEOUS PROVISIONS
• Sec 112 - Non-Impairment of Existing Mining/Quarrying Rights
• Sec 113 - Holders of valid and existing mining claims, lease/quarry
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applications shall be given preferential rights to enter into any mode
of mineral agreement with the government
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Slide 44 ____________________C5_______________
-END-
• Approved: MARCH 03 1995
• Signed: FIDEL V. RAMOS
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