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HOUSE OF REPRESENTATIVES
QuezonCify
'!i.u
'i\
I'",rt''n
Fifteenth CONGRESS
First Regular Session
House
BillNo. 37 6 3
EXPLANATORY NOTE
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.
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.
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.
(;W
KA G-AO HON. WALDEN F. BELLO
Partylisi AkbayanPartylist
I
Basedon figuresfor the year 2008.
HON. TEDD RAWNER BA T, JR. HON. RUFUSB. GUEZ
Lone Distrj Ifugao 2ndDistfict, Cagayai 6 Oro City
/.1/ -----\___
(-/' o' I1
r/
t
"l/
HON. MAXIMO B. RODRIGUEZ. JR. HqN. CARLOSM. PADTLLA
Abante Mindanao Partylist \ton) District,NuevaViscaya
FifteenthCONGRESS
First Regular Session
House
BitlNo. 37 6 3
I ANACT
2 TO REGULATETHE RATIONALEXPLORATION.DEVELOPMENTAND UIILIZATION
3 OFMINERALRESOURCES.AND TO ENSURETHEEQUITABLESHARINGOF
4 BENEFITSFORTHE STATE.INDIGENOUSPEOPLES
AND LOC.ALCOMMUNITIES.
5 4ND FOROTHERPURPOSES
o
7 Be it enacted by the Senate an(l lhe House of Representativesof the phitippines
in Congress
8 assembled:
I
IO CHAPTERI. DECLARATIONOF POLICIES
il
12 Sectionl. Short Title. This Act shall be known as the "PhilippineMineral Resources
.{cl of
I3 2010".
t4
l5 Section
2. Declaration
ofPolicl.It is herebldeclaredthatit is thepolicyoftheState
to:
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.
25
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 .
30
31 Section
4. The erploration.cleveloprnent anclutilizationof naturalresources
must
32 complvrviththe prirrciples
of intergenerational
lcsponsibilitv.
11
Pase2 of 43
,
1 towards food securitv shall always be the priority;
2
3 (3) l'he State and its mernbersshall develop its hurnan resollrcesancl encollragethe
4 evolution of its own appropriatetechnologies;
5
6 (a) The commLlnitl'shall activelv parlicipatein the stervardsfiipol'nrineral resources.
7 Commltnitv-basedinitiativessliall L're
encouragecl and sr-rppol'ted.
8
9 (5) Mining operationsshall not in any way createor exacerbateconflicts.
10
11 (6) Thc irttcgrit,r'
of thc cnvironrnerrtis not compromised.
12
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
14
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.
I
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.
28
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.
a1
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
A
'f
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
F,
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
a
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
1a
"vhich
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:
a1
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
a1
JI
from the reiects
JL or rvastesof previor:smines and mining operations;
fff. Restoration- where tire intent is to recreatean ecosystemas close as possibleto
aa
JJ
aA
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;
1-
)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.
l7
18 CI_IAPTER.iV. OWNERSIIIP AND GOVERNANCE
t9
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.
It
25 shall also work with the Multi-SectoralMineral Council in the monitoringof minins
26 activities.
27
28 Section19. RegionelOflices.The Bnreaushallhaveas mAnvregionalofficesin the
29 countryas may be cstablislred
by the Secretary.
Lrpon
the recommenclation
of t6e Director.
30
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.
4,1
P a g e1 1 o f 4 3
1
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,
otherofficialactsaffectingmining,ancl
5 otherinformationrelevantto mineralresources development.A systemof publication
6 fundshallbe includedin the resularbudsetof the Bureau.
7
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
or
I1 persons.
12
I3 Section24. Non-invasiveerploration. Explorationactivitiesshall oply be non-
14 invasivesuchas, bttt not lirnitedto seismic,gravity,magnetic,electromeganetic,
raclar,
15 inducedpolarization,
radio-wave andelectroseochemical.
16
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
of
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.
24
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.
29
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.
-a
;; 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.
40
Page12 of ,13
1
, 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.
B
9 Section30. Questionson the validity of FPIC. In instances thatthereareqlrestions
on
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.
20
21 Section32. Inventory of mineral resources. The Br-rreau shallidentifyandprovidean
22 inventoryof the availabler.rineralresollrces,includingthe minc tailings withir-r
the
23 cottntrv. It shall sttbrnitto the DOST a reporl rvhich shall contain the l.ollor,vins
24 information:
25
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.
36t
37 Section33. Iclentification of st'ratcgicminerals. The Bureau shall conductresearches
38 and studiesprior.to any mining operationsto identifz strategicmineral resources.
Only
39 mineral resollrcestl-ratshall be neeclecl
for local industriesshall be rninecl.
40
Page13 of43
I Section34. Demarcation of mineral areas. The Bureau shall clemarcate
the
2 bottndaries of all areas identified as containins commercial quantities
of mineral
3 resollrccson the ground.
4
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
baseline
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.
9
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
are
12 , defined in relation to the u'atershcclcontinuurnr,vhichis potentiallv negatively
impacted
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
and
I5 its resources
l6
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.
21
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:
30
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
the
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 .
39
Page14of43
I No mining operationsshall be allor,vedr,vithor,rt
the Council having been properly
2 convened.
1
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:
9
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.
2l
22 ,No mining applicationshall be allowedunlessan environmental economicauclitor
23 resollrcevalttationof the proposed miningarealravebeenconclucted or preparecl
applying
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
callse.
31 There must be tnentionof existenceof sacredareasor areasotherwiseof cultural
32 significance andacldress tlic impactsof resourceexploitation
on indigenouspeoples.
aa
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 .
i\
,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
ordinances;
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
n
33 and their respectivebr-rfferzones as definedby law, in areascoveredby the
34 NationalIntegrateclProtected Area SystemCNIIPAS) nnderRepublicAct No. 7586
35 andthoseexpressly prohibitedby otherlaws.
36
3l The determination rvhetheror not the slme areabsolutelyclosedto rninir-rg
shallrrotonly
38 be limitedto the eristenceof a lar,vor ordinance
declaringit as protected
areas,but alsoto
39 the actualuseof saidarea.
40
Pase16of43
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
Section40.
6
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.
10
ll The Councilshallthereafter respectivelyconvenetheirconstituents to determine whether
12 or nottheirrespective territoriesshallbe openeclfor mining.
1a
IJ
Page17 of ,13
I
PagelB of43
I
2 In no caseshall Financialor TechnicalAssistance Agreements, or any ot6er similar
3 agreements,contracts,and/or executiveissuances grantinglicenseor permissionto
4 erplore.developancl/orL;'riiize
mineralresolrrces
be awarcled
to foreignpersons.
5
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.
9
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.
14
l5 Section43' Pre-screeningof mining proposals.Mining proposals
shall be pre-
16 screened
by the Bttrealtuponthe submission
of interested
parliesof the followins:
t7
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
ancl/orequipment;
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
')^
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.
7
8 The affectedICCs/lPsshalialsocleliberate
on the proposalsin accorclancewith theirown
9 systemsand processesfi'ee frolx any exterrralmanipulation,interference,
coercionand
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.
l3
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.
t7
18 Section52. Posting :rncl Publication Rcquirement.After notice,the Bureau
shall
19 notifythe proponent
of the acceptecl
proposalanclcausethe publicationand postingof the
20 acceptedproposal.
21
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.
26
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.
30
3l Section54. EnvironmentatanclSocialImpact ComplianceCertificate.The mining
32 proponentshallbe isstredan Environmental and SocialImpactCompliance
Cerlificate
by
33 the Bureaur,viththe approvalof the cor,rncil.
.', A
-)+
35 Providecl r-roamendtnetrtsto the conditions of the Certificate sl-rallbe
allo'uvecl,
unless
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
i
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.
Page23 of 43
1
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
of
6 assetsandequipment of thc contractor.
,/
8 Section66. Access to Information. All contractorsfor mineral permits ancl
9 agreementsshallprovideinforrnationto affectedindigenous
peoples.localcommllnities,
10 andlocalgovet'nments.
Thc lbllorvinginforrnation,
amongothers.shallbe reqLrirecl:
1 1
tl
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
CMRB.
5
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.
9
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.
12
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
theirrcspective
ancestral
domains.
17
lB Section70. FPIC in small-scalemining. SnlalJ-scale mining wit|rin ancesttal
clornain
19 by anypersonshallalsorequirethe free,priorinlbrmedconsentof ICCs/lps.
20
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.
27
28 Section72. Environmental measures in small-scalemining. The State
shall
29 imrnediatelyaddressthe environmentaland health problemsin small-scalemining,
30 includingthe Llseof ltazlrdouscltemicals,such as rnercLrryand cyanide,
in the
3l amalgamation of gold by small-scale
rniners.
")a
Page25 of43
1 of its SSMPanciE,CC.The MMT shallconductocularinspectionsof the SSMp areaat
2 anytime of the dav andnightandshallhavevisitorialpowers.
a
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:
8
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
status.
t5
16 Section76. Buying stations.The BangkoSentralng Pilipinasshallenslrethat
buying
17 strtionsacqttiregolCfrom small-scalc
traclers
at prevailinginternational
golctmarketprice
l8 andprevailinq ercllangcratcsctb1'theBSPTreasury Departrnent on a clailv.basis.
l9
20 CFIAPTER
VII
21 aUARRY RESOURCES
22
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.
a1
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
per.son
4 and the governmentmav enter into a mineral agreementas clefinedherein.
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
coterminous
3 with saiciconstruction.
/ l
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
of
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.
5
6 CIJAPTER IX. DE\/ELOP\,{ENT OF COMMUNITIES.
7 SCIENCI] AND TECHNOLOCY
8
9 Section92. Erpenditrtre for Community Development. A contractorshall assist
in
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
Domains
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.
17
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.
.).
Page29 of 43
1 Section96. Tares and fees.The contractorshallpay all taxesanclfeesas requireclby
2 lar,v,
including,
but not limitedto:
a
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
stocliholclers:
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.
l8
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.
35
36 CHAPTERXI. SAF'ETYAND ENVIRONMENTALPROTECTION
a1
38 A. Safbtv
lq
P a q e3 1 o f 4 3
1 Sectionl0zl. Mines Safety. All contractors andpermittees shallstrictlycomplywith all
2 the minesand safetlzrttlesand rcgulationsconcerningthe safeanclsanitaryupkeep
o{,the
3 mining development.Governmentpersonnelinvolveclin the irlplementationof
mines
4 safety,healthand environmental rulesanclregulationsshallbe coveredunder.Republic
5 ActNo. 7305or the MagnaCartaof PublicFlealthWorkers.
6
7 Section105. Mine Labor. No personunclersixteen(16)yearsof ageshallbe employed
8 in anyplaceof miningoperations anclno personundereighteen(18) yearsof ageshallbe
9 employed in a mine.
10
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
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
5
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
assurance
B for each and every sollrce of pollution or disaster,relative to the "worst case
scenario,,
9 costs, follorving accepted actuarian standarcls,Provicled, That in no way
shall this
10 provision be construecito remove or reducethe liability ol'the contractors
ancl/orpermit
l1 lroldersto compensateanv damage caLrsecl by their operations.Protticledfurther, That the
12 insltrershall bc an accrediteclinternationalcompanyin good standing.
1 a
l1
Page33 of ,13
1 immediatesuspension
or closureof the mining activitiesof the contractor/permittee
2 concerned.
a
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
pLrrposes.
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
peoples.
6
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
quality.
12
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.
19
2A
2l C. Acid Mine Drainase
22
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.
28
29 Section126. E,stablishment of a precliction
anclmonitoringsystem.A preclictionand
30 monitoringsystemshall be in placeto identili potentialacicl-producing
materialsand
31 monitortheirprodr-rction
of acidrvaste.
Pase35 of43
ll
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.
7
8 CHAPTERXII. RESOLUTIONOF CONFLICTS
9
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.
3l
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.
.t
Page36 of43
1
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.
6
7 Section132. Mines AdjuclicationBoarcl(MAB). The MinesAdjuclication
Boarclshall
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:
,pouzers
12
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:
aa
JJ
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
be
7 conclusiveand binding on the partiesand its decision
or order shall be final ancl
B executory.
9
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.
l3
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
15
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.
20
21 Section134' Viol:rtionsof human rights. Extrajudicial
l<illing,torture,involuntary
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
clisqr-ralified
from being
29 granteda mitleraJr-sreen'rent. All equipnrent anciassets of the corporation or personshall
30 be confiscated in favor of the sovernment.
3l
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.
36
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
of
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.
Page39 of43
1 of non-enforcement or violation complaineclof, exemptthe plaintiff fiom filingl an
2 iniunction
bondfor the issuanceof a preliminarv
iniunction.
\
I
;; corporations,corporateclirectors/officers
founclguilty of the aboveenrrrreration
may be
25 subjected
to a perpetual
ban in the miningoperations.
26
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).
32
33 Section144' ItlegalIixploration.Any personundeftalcing
exploration
rvorkr,vit6or-rt
tle
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 ) . "
36
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.
4
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
r.vithSection144
19 of thisAct.
20
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.
29
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)
.A
anclshallindemnifythe victirns.
J+
Page4l of 43
l
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.
6
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.
10
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 , .
l6
17 Section154' Reinstatementof revohecl
permits. After notice and hearing,revoked
18 permitstlrat have unclergone due processmay be reinstated, proviclecl,That it may
19
l n I . only
Llerernstateci
once.
20
21 CFIAPTERXV. TRANSITORYPROVISIONS.
22
23 Section155' Thereshall be a moratorilrmon all
mining activitiesr-rntilall the systems
24 arein placefor the properimplcmentation
of the lar,v.
2_s
26 Section156' All existingminingpermits,Iicenses
anclagreements
aredeemedcancellecl.
27
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
currentmineral
32 land classification shall be conductedto cletermine tl-rebest livelihooclancleconomic
33 optionfor the saiclarea.
a/1
J+
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.
4
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
shall
8 be deetnecl amenciccJ or repealecl i1'tlreinconsistency is irreconcilable.
9
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.
1a
t'!
;; Approved,
Page43 of 43