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Mines and Geosciences Bureau

MINING LAWS,
ADMINISTRATIVE ORDERS, AND
RULES AND REGULATIONS

Department of Environment and Natural Resources


Republic of the Philippines 1
REPUBLIC ACT NO. 7942

The Philippine Mining Act of 1995

2
I. Mining Laws

Republic Act (RA) No. 7942 - An Act Instituting a


New System of Mineral Resources Exploration,
Development, Utilization and Conservation (March
3, 1995)

Implementing Rules and Regulations (IRR)


Department Administrative Order No. 2010 21
Maintained co-existence of PD 1899 and RA
7076

Department of Environment and Natural Resources


Republic of the Philippines 3
A. REPUBLIC ACT NO. 7942
The Philippine Mining Act of 1995
1. Brief Background:

Approved on 20 February 1995 by Congress and on March 03, 1995 by


President Fidel V. Ramos.

Superseded E.O No. 279, the interim mining law issued on July 25, 1987.

Espouses the principle of responsible mining.

Implementing Rules and Regulations (DAO No. 95-23) took effect on


September 13, 1995.

Revised Implementing Rules and Regulations (DAO No. 96-40) took


effect on January 23, 1996.

Consolidated Administrative Order (CDAO 2010-21) took effect on June


28, 2010
Department of Environment and Natural Resources
Republic of the Philippines 4
Basic Principle
(Sec. 2. Declaration of Policy)

All mineral resources in public and private lands within the


territory and exclusive economic zone of the Republic of the
Philippines are owned by the State. It shall be the responsibility
of the State to promote their rational exploration, development,
utilization and conservation through the combined efforts of
government and the private sector in order to enhance national
growth in a way that effectively safeguards the environment and
protect the rights of affected communities.

5
RA 7942

2. Basic Features:
Retained the Regalian Doctrine; allows foreign participation
and the rights to explore, develop, and utilize thru mineral
agreements and financial or technical agreement (E.O.
279)

Section 4. Ownership of Mineral Resources - Mineral


Resources are owned by the State and the exploitation,
development and utilization, and processing thereof shall be
under its full control and supervision. The State may directly
undertake such activities or it may enter into mineral
agreements with contractors.

Department of Environment and Natural Resources


Republic of the Philippines 6
RA 7942
2. Basic Features:
Authority of the Department of Environment and Natural
Resources (DENR) [Sec. 8]
Primary agency 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;

To enter into mineral agreements on behalf of the


Government or recommend FTAA to the President upon
endorsement of the Director of the Mines and
Geosciences Bureau (MGB); and

Promulgates rules and regulations as may be necessary


to implement the intent and provisions of the Mining Act.
Department of Environment and Natural Resources
Republic of the Philippines 7
RA 7942

2. Basic Features:
Authority of the Mines and Geosciences Bureau (MGB) [Sec. 9]
Direct charge in the administration and disposition of
mineral lands and mineral resources;

Shall undertake geological, mining, metallurgical, chemical,


and other researches as well as geological and mineral
exploration surveys;

Shall recommend to the DENR Secretary the granting of


mineral agreements to duly qualified persons;

Shall monitor the compliance by the contractor with the


terms and conditions of the mineral agreements;
Department of Environment and Natural Resources
Republic of the Philippines 8
RA 7942

2. Basic Features:

Authority of the Mines and Geosciences Bureau (MGB) [Sec. 9]


May confiscate surety, performance and guaranty bonds
posted through an order to be promulgated by the Director;
and

May deputize, when necessary, any member or unit of the


Philippine National Police, Barangay, duly registered Non-
Governmental Organization (NGO) or any qualified person*
to police all mining activities.

*Defined in CDAO No. 2010-21

Department of Environment and Natural Resources


Republic of the Philippines 9
RA 7942

2. Basic Features:
Different Mining Contracts
Major Mining Tenements (National Govt-DENR)
Exploration Permit

Mineral Agreements
Mineral Production Sharing Agreement

Co-Production Agreement

Joint Venture Agreement

Financial and Technical Assistance Agreement

Mineral Processing Permit

Department of Environment and Natural Resources


Republic of the Philippines 10
RA 7942

2. Basic Features:
Different Mining Contracts
Various Mining Tenements (LGU)
Quarry Permit

Sand and Gravel Permit

Gratuitous Permit

Guano Permit

Gemstone Gathering Permit

Pebble Picking Permit

Small Scale Mining Permit


Department of Environment and Natural Resources
Republic of the Philippines 11
RA 7942

2. Basic Features:

Areas Open to Mining

Section 18. Areas Open to Mining Operations. Subject to


any existing rights or reservations and prior agreements of
all parties, all mineral resources in public or private lands,
including timber or forestlands as defined in existing laws,
shall be open to mineral agreements or financial or
technical assistance agreement applications. Any conflict
that may arise under this provision shall be heard and
resolved by the panel of arbitrators.

Department of Environment and Natural Resources


Republic of the Philippines 12
RA 7942

2. Basic Features:
Areas Closed to Mining (Section 19)
a) Military and other Government reservations, except upon
prior written clearance by the Government Agency
concerned;
b) Near or under public or private buildings, cemeteries,
archeological and historical sites, bridges, highways,
waterways, railroads, reservoirs, dams or other
infrastructure projects, public or private works including
plantations or valuable crops, except upon written consent
of the government agency or private entity concerned.
c) Areas covered by valid and existing mining rights
(tenements), whether applications or approved.
d) Areas expressly prohibited by law.

Department of Environment and Natural Resources


Republic of the Philippines 13
RA 7942
2. Basic Features:
Areas Closed to Mining (Section 19)
e) Areas covered by small-scale miners as defined by law
unless with prior consent of the small-scale miners, in
which a case of royalty upon the utilization of minerals
shall be agreed upon by the parties, said royalty forming
a trust fund for the socioeconomic development of the
community concerned;
f) Old growth virgin forests, proclaimed watershed forest
reserves, wilderness areas, mangrove forests, mossy
forests, national parks, provincial/municipal forests, parks,
greenbelts, game refuge, bird sanctuaries, as defined by
law and in areas expressly prohibited under the National
Integrated Protected Areas System (NIPAS) under
Republic Act No. 7586, DAO No. 25, series of 1992 and
other laws.
Department of Environment and Natural Resources
Republic of the Philippines 14
RA 7942

2. Basic Features:
Mineral Reservations (Sec. 5)

When national interest so requires, such as


when there is a need to preserve strategic raw
materials for industries critical to national
development, or certain minerals for scientific,
cultural, or ecological value, the President may
establish mineral reservations upon the
recommendation of the Director through the
Secretary.

Department of Environment and Natural Resources


Republic of the Philippines 15
RA 7942

2. Basic Features:
Mineral Reservations (Sec. 5)
Mining Operations in existing mineral reservations and such
other reservations as may thereafter be established, shall
be undertaken by the Department or through a
contractor: Provided, that a small-scale mining
cooperative covered by Republic Act No. 7076 shall be
given preferential right to apply for a small-scale mining
agreement for a maximum aggregate area of 25% of such
mineral reservation, subject to valid existing
mining/quarrying rights as provided under Section 112,
Chapter XX.

Department of Environment and Natural Resources


Republic of the Philippines 16
RA 7942

2. Basic Features:
Mineral Reservations (Sec. 5)
All submerged lands within the contiguous zone and in
the exclusive economic zone of the Philippines are
declared to be mineral reservations.
Other Reservations (Sec. 6)
Mining operations in reserved lands other than mineral
reservations may be undertaken by the Department,
subject to limitations. In the event the Department
cannot undertake such activities, they may be
undertaken by a qualified person.

refers to the water, sea bottom and subsurface measured from the baseline of the Philippine Archipelago up to two
hundred (200) nautical miles offshore

Department of Environment and Natural Resources


Republic of the Philippines 17
RA 7942

2. Basic Features:
Mineral Reservations (Sec. 5)
All submerged lands within the contiguous zone and in
the exclusive economic zone of the Philippines are
declared to be mineral reservations.
Other Reservations (Sec. 6)
Mining operations in reserved lands other than mineral
reservations may be undertaken by the Department,
subject to limitations. In the event the Department
cannot undertake such activities, they may be
undertaken by a qualified person.

refers to the water, sea bottom and subsurface measured from the baseline of the Philippine Archipelago up to two
hundred (200) nautical miles offshore

Department of Environment and Natural Resources


Republic of the Philippines 18
STAGES OF MINING OPERATION

EXPLORATION

DEVELOPMENT

PRODUCTION

FINAL MINE
REHABILITATION &
PROGRESSIVE DECOMMISSIONING
REHABILITATION
Department of Environment and Natural Resources
Republic of the Philippines 19
EXPLORATION means searching and
prospecting for mineral resources by
geological, geochemical and/or geophysical
surveys, remote sensing, test pitting,
trenching, drilling, shaft sinking, tunneling or
any other means for the purpose of
determining their existence, extent, quality
and quantity and the feasibility of mining
them for profit.

Department of Environment and Natural Resources


Republic of the Philippines 20
DEVELOPMENT means the work undertaken to
explore and prepare an ore body or a mineral
deposit for mining, including the construction of
necessary infrastructure and related facilities.

UTILIZATION means the extraction, mineral


processing and/or disposition of minerals.

Department of Environment and Natural Resources


Republic of the Philippines 21
MINE REHABILITATION refers to the process used to
repair the impacts of mining on the environment. The
long-term objectives of rehabilitation can vary from
simply converting an area to a safe and stable condition
to restoring the pre-mining conditions as close as
possible with all the areas environmental values intact
and establishing and land use capability that is
functional and proximate to the land use prior to the
disturbance of the same.

Department of Environment and Natural Resources


Republic of the Philippines 22
Environmental Documents
Final Mine Rehabilitation and
Decommissioning Plan
A plan for returning the mine sites and
affected areas to viable and, whenever
practicable, self-sustaining ecosystems that
are compatible with a healthy environment
and with human activities.

23
Timeline of Progression from Exploration to Utilization

ACTIVITY
Filing of
Exploration
MPSA

Development/
Utilization under
MPSA
Declaration of
Mining Project
Feasibility

PERIOD
2 yrs, 1 yr. 25 yrs,
renewable up renewable for
to 6 yrs. another 25 yrs.

Department of Environment and Natural Resources


Republic of the Philippines 24
Laws Involved In Mining Tenement Regulation

Environmental Laws Mining Act

National Integrated
Small-Scale
Protected Area
System Act
MINING Mining Laws

Indigenous Peoples Local Government


Rights Act Code
Other Laws
Department of Environment and Natural Resources
Republic of the Philippines 25
RA 7942
Environmental Documents
Certificate of Environmental Management and
Community Relations Record (CEMCRR)

A proof of the applicants satisfactory environmental


management and community relations in its past and/or
present mineral resource use or mining-related ventures.
Mining permit/agreement applicants with neither past nor
present mineral resource use or mining-related ventures are
exempted and instead issued a Certificate of Exemption.

26
RA 7942
Environmental Documents

Environmental Work Program (EWP) for


Exploration
Description of the expected and considered acceptable
impacts and shall set out the environmental protection and
enhancement strategies based on the best practice in
environmental management in mineral exploration.
This should include costs to enable sufficient financial
resources to be allocated to meet the environmental and
rehabilitation commitments (at least 10% of the exploration
cost).

27
RA 7942
Environmental Documents
Environmental Impact Assessment (EIA)

A systematic identification and evaluation of


potential impacts of proposed projects, plans,
programs or legislative actions relative to the
physical-chemical, biological, cultural and
socio-economic components of the total
environment.

28
RA 7942
Environmental Documents

Environmental Compliance Certificate (ECC)

Document issued by DENR to certify that the


project under consideration will have minimal
environmental effects for as long as the
conditions stipulated in the ECC are strictly
followed, and that the proponent has
complied with the requirements of the EIS
System.

29
RA 7942
Environmental Documents

Environmental Protection and


Enhancement Program (EPEP)

It provides the description of the expected


impacts of the mine and sets out the life-of-
mine environmental protection and
enhancement strategies based on best
practice in environmental management in
mining.
30
RA 7942
Environmental Documents
Annual Environmental Protection and
Enhancement Program (AEPEP)

Document prepared to effectively implement


the approved EPEP, shall be based of the
approved EPEP and shall be implemented
during the year for which it is submitted.

31
FINANCIAL MECHANISMS
FOR THE
IMPLEMENTATION OF
ENVIRONMENTAL
PROGRAMS

32
FINANCIAL MECHANISM
CONTINGENT LIABILITY AND REHABILITATION FUND (CLRF)

CLRF is an environmental guarantee fund mechanism institutionalized to


ensure just and timely compensation for damages and progressive and
sustainable rehabilitation for any adverse effect a mining operation or
activity may cause.

There are two (2) forms of CLRF namely the Mine Rehabilitation Fund
(MRF) and the Mine Waste and Tailings Fees.

The MRF is composed of the Rehabilitation Cash Fund (RCF) and the
Monitoring Trust Fund (MTF).

33
CONTINGENT LIABILITY AND
REHABILITATION FUND (CLRF)

ENVIRONMENTAL TRUST MINE MINE WASTE AND TAILINGS FINAL MINE


FUND (ETF) REHABILITATION FEE RESERVE FUND REHABILITATION and/or
(MWTRF) DECOMMISSIONING
No fixed amount; FUND (MRF)
PHP 0.05/MT of mine waste FUND (FMR/DF)
minimum of PhP 50,000
PHP 0.10/MT of tailings

REHABILITATION CASH MONITORING TRUST FUND


FUND (RCF) (MTF)
10% of the total amount maintained at
needed to implement the EPEP PhP 150,000/ quarter
or PHP 5M whichever is lower

34
Final Mine Rehabilitation and Decommissioning
Fund (FMRDF).

A FMRDF shall be established by each operating


Contractor/Permit Holder to ensure that the full cost of the
approved FMR/DP is accrued before the end of the operating life
of the mine. The FMRDF shall be deposited in a Government
depository bank and shall be used solely for the implementation
of the approved FMR/DP.

Annual cash provisions shall be based on the formula:


Annual Provision = Cost of Implementing the Approved
FMR/DP x Percentage Required
Per Table 1

35
Table 1 Schedule of Annual Cash Provisions to the
FMRDF

Operating Mine Life (in years)

Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

E 1 year 1.000
x
p 2 years 1.000 -
e 3 years 0.500 0.500 -
c
T 4 years 0.556 0.333 0.111 -
e
d 5 years 0.437 0.313 0.187 0.063 -
6 years - 0.437 0.313 0.187 0.063 -
M
i 7 years - 0.367 0.300 0.180 0.123 0.030 -
n
e 8 years - 0.367 0.300 0.173 0.102 0.030 0.028 -

9 years - 0.367 0.300 0.153 0.092 0.040 0.028 0.020 -


L
i 10 years - - 0.265 0.225 0.177 0.163 0.095 0.055 0.020 -
f
e 11 years - - 0.265 0.225 0.177 0.157 0.090 0.050 0.020 0.016 -

12 years - - 0.265 0.225 0.177 0.147 0.088 0.050 0.020 0.016 0.012 -
(i
n 13 years - - 0.207 0.180 0.150 0.130 0.100 0.080 0.063 0.050 0.030 0.010 -
y
e 14 years - - - 0.207 0.180 0.150 0.130 0.100 0.080 0.063 0.050 0.030 0.010 -
a
r 15years - - - 0.207 0.180 0.150 0.130 0.100 0.080 0.063 0.050 0.020 0.010 0.010 -
s)

36
SOCIAL AND
COMMUNITY
DEVELOPMENT

37
Social/Community Development
SOCIAL DEVELOPMENT AND
MANAGEMENT PROGRAM (SDMP)

This is a tool for the development and implementation of


community programs, projects and activities for the host and
neighboring communities of a mining project/area.

This is a 5-year plan geared towards the development of a


responsible, self-reliant and resource-based communities
capable of developing, implementing and managing
development programs, projects and activities.

38
Social/Community Development
Source of Funds
Mining companies shall allot a 1.5% of the operating cost
annually which shall be divided into:

75% for the development of host and neighboring community


10% for the development of mining technology and geosciences
15% for the institutionalization of public awareness and
education on mining and geosciences.

39
RA 7942

2. Basic Features:
Auxiliary Rights
Timber Rights a right granted to contractor to cut trees
or timber within his mining area as may be necessary for
his mining operations subject to forestry laws, rules and
regulations;
Water Rights a contractor shall have water rights for
mining operations upon approval of application in
accordance with existing water laws, rules and
regulations;
Right to Possess Explosives a contractor/exploration
permittee shall have the right to possess and use
explosives within his contract/permit area as may be
necessary for his mining operations upon approval his
application;
Department of Environment and Natural Resources
Republic of the Philippines 40
RA 7942

2. Basic Features:
Auxiliary Rights
Easement Rights for purposes of more convenient
mining operations, a contractor shall be entitled to enter
and occupy mining areas or lands upon payment of just
compensation;
Entry into Private Lands and Concession Areas a right
granted to contractors, provided:
With prior notification to the surface owners,
occupants or concessionaires;
Damage done to the property shall be properly
compensated;
Post a bond with the Regional Director to gurantee
such compensation.
Department of Environment and Natural Resources
Republic of the Philippines 41
RA 7942
2. Basic Features:
Settlement of Conflicts - Creation of a quasi-judicial
bodies:
The PANEL OF ARBITRATORS in every regional office
of the MGB-DENR :
Composition: Three (3) Members duly designated
by the Secretary as recommended by the MGB
Director.
Two (2) of whom must be members of the
Philippine Bar in good standing; and
One (1) Licensed Mining Engineer or a
Professional in a related field

Department of Environment and Natural Resources


Republic of the Philippines 42
RA 7942
2. Basic Features:
Settlement of Conflicts: Creation of a quasi-judicial bodies
The PANEL OF ARBITRATORS in every regional office of
the MGB-DENR :
Exclusive and Original jurisdiction to hear and decide
on the following:
a) Disputes involving rights to mining areas;
b) Disputes involving mineral agreements or permits;
c) Disputes involving surface owners, occupants and
claimholders/concessionaires; and
d) Disputes pending before the Bureau and the
Department at the date of the effectivity of the
Mining Act

Department of Environment and Natural Resources


Republic of the Philippines 43
RA 7942

2. Basic Features:
Settlement of Conflicts: Creation of quasi-judicial bodies

The MINES ADJUDICATION BOARD (MAB) is the appellate body in


the DENR tasked to hear and decide appealed decisions,
order and resolution/s of the Panel of Arbitrators (Sec. 79, Chapter
XIII, RA 7942 & Sec. 207, Chapter XX, RIRR)
MGB Acts as Secretariat to the Mines Adjudication Board (MAB) pursuant to
Sec. 208, Chapter XX, RIRR.

Composition: Three (3) Members


The DENR Secretary as Chairman
The MGB Director as Member
The DENR Undersecretary for Field Operations as
Member
Department of Environment and Natural Resources
Republic of the Philippines 44
RA 7942
2. Basic Features:
Settlement of Conflicts: Creation of quasi-judicial bodies
Jurisdiction
Exclusive Appellate jurisdiction over all cases decided by the Panel
of Arbitrators
Grounds
a) If there is prima facie evidence of abuse of discretion on the
part of the POA;
b) If the Decision, Order or award was secured through fraud,
coercion including graft and corruption, and the appellant
has the necessary evidence to support such allegation;
c) If made purely on question of law; and
d) If serious errors in finding of facts are raised which, if not
corrected, would cause grave or irreparable damage or
injury to the appellant.

Department of Environment and Natural Resources


Republic of the Philippines 45
RA 7942

2. Basic Features:
Settlement of Conflicts: Creation of quasi-judicial bodies
Powers and Functions
a) To promulgate rules and regulations governing the
hearing and disposition of cases;
b) To administer oaths, issue summons, subpoena to
testify or production of documents;
c) To conduct hearing and decide appealed cases;
d) To hold any person in contempt, directly or indirectly,
and impose appropriate penalties; and
e) To enjoin any or all acts involving or arising from the
any case pending which, if not restrained may cause
irreparable damage to any of the parties to the case
or seriously affect social and economic stability.
Department of Environment and Natural Resources
Republic of the Philippines 46
RA 7942
2. Basic Features:
Government Share

1. In Mineral Agreements
For Mineral Production Sharing Agreement:
The excise tax on mineral products equivalent to
2% of the actual market value of the gross output
For Co-Production and Joint Venture Agreements :
Negotiated based on: (a) the capital investment in
the project, (b) the risks involved, (c) the contribution
of the project to the economy and (d) other factors
that will provide for a fair and equitable sharing
between the parties.

Department of Environment and Natural Resources


Republic of the Philippines 47
RA 7942
2. Basic Features:
Government Share

2. In FTAA

Basic Government share consisting of all taxes,


royalties and fees; negotiated
Additional Government Share of not less than 50% of
the net mining revenue (inclusive of taxes, royalties
and fees).

Department of Environment and Natural Resources


Republic of the Philippines 48
RA 7942
2. Basic
Features:
Distribution of Government Share for LGUs:

40% of excise tax for LGUs sharing is 20% for


province, 45% for municipality and 35% for
barangay

Issued DBM-DOF-DILG-DENR Joint Circular to


facilitate the release of share of LGUs from
excise tax of minerals

Department of Environment and Natural Resources


Republic of the Philippines 49
RA 7942

2. Basic Features:
Incentives to Compliant Mining Contractors/Permittees

1. Fiscal incentives under the Omnibus Investment Code of


1987 (E.O No. 226, as amended)
2. Incentives for Pollution Control Devices
Pollution Control Devices shall not be subject to real
property and other taxes or assessments.
3. Incentive for Income Tax-Carry Forward of Losses
Net operating loss carried over as a deduction from
taxable income following the year of such loss.
4. Incentive for Income Tax-Accelerated Depreciation
Depreciation deducted from Net Income

Department of Environment and Natural Resources


Republic of the Philippines 50
RA 7942

Role of Local Government Units


a. Ensure compliance with public consultation and public participation;

b. Approve mining applications subject to laws , rules and regulations;

c. Receive share from utilization of mineral resources for economic


progress and development;

d. Facilitate the process of securing an informed decision on the social


acceptability of a mining project;

e. Participate in the monitoring of any mining activity as member of MMT


and MRFC;

f. Receive social infrastructure and community development projects for


the utilization of the host and neighboring communities;

Department of Environment and Natural Resources


Republic of the Philippines 51
RA 7942

Role of Local Government Unit: (cont.)

g. Mediate between the IPs and the mining


contractor(s)/permittees;

h. Coordinate with the Department in the implementation of


the Act and these implementing rules and regulations in
their respective jurisdictions;

i. Perform such other powers and functions as may be


provided for by applicable laws, rules and regulations.

Department of Environment and Natural Resources


Republic of the Philippines 52
RA 7942

Protection of Rights of Indigenous Peoples

No mining operations within an ancestral land shall be


opened without the prior consent of the indigenous
cultural community concerned.

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.
(Where FPIC is granted, a minimum royalty of 1% of the
gross output shall be paid to the IPs/ICCs which may be
used for the implementation of the Ancestral Domain
Sustainable Development and Protection Plan)

Department of Environment and Natural Resources


Republic of the Philippines 53
RA 7942

Small-Scale Mining

Small-scale mining shall continue to be governed by Republic Act


No. 7076 and other pertinent laws.

Existing guidelines insofar as they are not inconsistent with the


provisions of R.A. No. 7942, shall continue to govern small-scale
mining operations.

Department of Environment and Natural Resources


Republic of the Philippines 54
RA 7942

Grounds For Cancellation, Revocation And Termination Of Mining


Permit/Contract

a. Violation of any of the terms and conditions of the Permits or


Agreements;

b. Non-payment of taxes and fees due the Government for two (2)
consecutive years;

c. Falsehood or omission of facts in the statements made in securing


and implementing the mining permit/contract.

Department of Environment and Natural Resources


Republic of the Philippines 55
RA 7942
Penal Provisions (Chapter XIX)
False Statement (Sec. 101)
fine of not exceeding PhP 10,000.00
Illegal Exploration (Sec. 102)
fine of not exceeding PhP 50,000.00
Theft of Minerals (Sec. 103)
imprisonment from 6 mos to 6 years or pay a fine from
PhP 10,000.00 to PhP20,000.00
Destruction of Mining Structures (Sec. 104)
imprisonment for a period not to exceed 5 years and pay
compensation for damages.
Mine Arson (Sec. 105)
Penalty in accordance with the Revised Penal Code, in
addition, pay compensation for damages.
Department of Environment and Natural Resources
Republic of the Philippines 56
RA 7942
Penal Provisions (Chapter XIX)
Willful Damage to a Mine (Sec. 106)
imprisonment not exceeding a period of 5 years and pay
compensation for damages
Illegal Obstruction to Permittees or Contractors (Sec. 107)
fine not exceeding PhP50,000.00 or imprisonment not exceeding 1
year, or both per court discretion.
Violation of ECC Conditions (Sec. 108)
imprisonment for a period not to exceed 6 years or a fine of PhP
50,000.00 to PhP 200,000.00.
Illegal Obstruction to Government Officials (Sec. 109)
fine not exceeding PhP5,000.00 or imprisonment not exceeding 1
year, or both per court discretion.
Other Violations
a fine not exceeding PhP 5,000.00.
Department of Environment and Natural Resources
Republic of the Philippines 57
PERMITTING MECHANISMS

58
RA 7942
MINING
(Exploration, Development and Utilization of Mineral Resources)

STATE PRIVATE PARTY


(thru DENR) (Qualified Entity)

National Govt. Local Govt.


Working Agreement/MOA (DENR) (Provincial/City Govt.)
w/ Qualified Entity
Major Mining Tenements Various Mining Tenements
- Exploration Permit - Quarry Permit
- Mineral Agreement
- Mineral Production Sharing - Sand & Gravel Permit
Agreement - Gratuitous Permit
- Co-production Agreement
- Guano Permit
- Joint Venture Agreement
- Financial or Technical - Gemstone Gathering Permit
Assistance Agreement - Pebble Picking Permit
- Mineral Processing Permit
- Small-scale Mining Permit
Department of Environment and Natural Resources
Republic of the Philippines 59
RA 7942

Department of Environment and Natural Resources


Republic of the Philippines 60
61
Implementing Rules and Regulations (IRR)

DENR Administrative Order (DAO)


No. 2010 21

Maintained co-existence of PD 1899 and


RA 7076

Department of Environment and Natural Resources


Republic of the Philippines 62
RA 7942: DAO No. 2010-21

2. Major Features:
Sec. 2. Definition of Terms:
d. Annual Social Development and Management
Program refers to a yearly community
development programs/projects/activities based
on the approved five- year Social Development
and Management Program.
Sec. 16. Ancestral Lands
Par 6 - The implementation of this Section shall be
in accordance with Republic Act No. 8371,
otherwise known as The Indigenous Peoples
Rights Act of 1997and other pertinent laws.
Department of Environment and Natural Resources
Republic of the Philippines 63
RA 7942: DAO No. 2010-21
2. Major Features:
Sec. 17, Chapter V. Exploration Permit as the Initial Mode of
Entry in Mineral Exploration. Exploration activities maybe
directly undertaken by the Department or, in the event that
the Department can not undertake such exploration activities
by a Qualified Person in specified areas as determined by the
Secretary: Provided, That the conduct of mineral exploration
by a Qualified Person in all areas open to mining shall be
initially undertaken through an Exploration Permit, subject to
the provisions of Chapter VII on the FTAA.

In case an immediate technical study of an area is necessary,


the Department or any of its authorized
agencies/instrumentalities and the Exploration Permit applicant
may enter into a Memorandum of Agreement to jointly
undertake such study.
Department of Environment and Natural Resources
Republic of the Philippines 64
RA 7942: DAO No. 2010-21

2. Major Features:
Par. 1, Sec. 18, Chapter V. Term/Maximum Areas Allowed
under an Exploration Permit. Provided, further, That the
conduct of a feasibility study and filing of the declaration of
mining project feasibility shall be undertaken during the term
of the Exploration Permit, subject to the provisions of Section 30
hereof.

Sec. 19. Application for Exploration Permit/Mandatory


Requirements. - Any Qualified Person may apply for an
Exploration Permit (MGB Form No. 5-1) with the Regional Office
concerned, through payment of the required fees and
submission of five (5) sets of the following mandatory
requirements: x x x
Department of Environment and Natural Resources
Republic of the Philippines 65
RA 7942: DAO No. 2010-21

2. Major Features:
Sec. 19. Par 1. d.1. - For an individual copy of income
tax return for the preceding year and proof of bank deposit
or credit line in the amount of at least Two Million Five
Hundred Thousand Pesos (PhP2,500,000.00) x x x

Par 1.e. - x x x or Certification from the Bureau/Regional


Office concerned that said documents are duly
registered in that Office; and

Par 1. f. Affidavit of Undertaking pursuant to DENR


Memorandum Order (DMO) No. 99-10, as amended, for
a corporation, partnership, association or cooperative.

Department of Environment and Natural Resources


Republic of the Philippines 66
RA 7942: DAO No. 2010-21
2. Major Features:
Sec. 19. Par 2 The Certificate of Environmental
Management and Community Relations Record
(CEMCRR)/Certificate of Exemption, Environmental Work
Program (MGB Form No. 16-1 or MGB Form No. 16-1A) as
provided for in Section 168 hereof, shall be required from
the Exploration Permit applicant after acceptance of the
application but prior to the issuance of the pertinent Notice
of Application.

Par 3 The Certificate of Non-Overlap for areas without


ICC(s)/Indigenous Peoples (IPs) or Certificate of
Precondition from the National Commission on Indigenous
Peoples (NCIP) for areas with ICCs/IPs shall be secured by
the Exploration Permit applicant in accordance with the
NCIP rules and regulations;
Department of Environment and Natural Resources
Republic of the Philippines 67
RA 7942: DAO No. 2010-21

2. Major Features:
Sec. 19. Par 3 Provided, that in case the aforesaid
requirements are not issued within the NCIPs prescribed
periods, the Exploration Permit applicant shall submit the
NCIPs Report on the Field-Based Investigation for the
applied area that does not overlap ancestral domain, or
the Memorandum of Agreement (MoA) executed by and
among the Exploration Permit applicant, ICC/IP concerned
and the NCIP for the applied area that affects the ICCs/IPs;
Provided, further, That the said Certificate of Non-Overlap
or Certification Precondition shall be submitted by the
Exploration Permit applicant within ninety (90) days from
issuance of the Exploration Permit.

Department of Environment and Natural Resources


Republic of the Philippines 68
RA 7942: DAO No. 2010-21

2. Major Features:
Sec. 19-A. Transfer or Assignment of Exploration Permit
Application. Transfer or assignment of Exploration Permit
applications shall be allowed subject to the approval of the
Regional Director concerned taking into account the
national interest and public welfare: Provided, That such
transfer or assignment shall be subject to eligibility
requirements and shall not be allowed in cases involving
speculation.

In line with the ISO Requirement: (ISO 9001:2008)


In all processes, the period of processing was reduced
from 30 days to 15 days and from 15 days to 5 days,
except those
Department of Environment and Natural Resources
Republic of the Philippines 69
RA 7942: DAO No. 2010-21

2. Major Features : Permitting mechanism

MPSA Application Process Flow

70
Republic Act (RA) No. 7076

An Act Creating a Peoples


Small-Scale Mining Program
and For Other Purposes
(June 27, 1991)

Department of Environment and Natural Resources


Republic of the Philippines 71
B. Republic Act (RA) No. 7076

Brief Background
Laws Governing Small-Scale Mining

PD No. 1150 Amending PD No. 581 and Regulating Panning or


Sluicing for Gold Inside Mining Claims or in Public or Private Lands
(June 6, 1977)
PD No. 1899 Establishing Small-Scale Mining as a New
Dimension in Mineral Development (January 23, 1984)
o MRD 41, Series of 1984
RA No. 7076 An Act Creating a Peoples Small-Scale Mining
Program and For Other Purposes (June 27, 1991)
o DAO 34, Series of 1992

Department of Environment and Natural Resources


Republic of the Philippines 72
B. Republic Act (RA) No. 7076

Brief Background
Laws Governing Small-Scale Mining
RA No. 7160 Local Government Code of 1991 (Oct. 10, 1991)
o DAO 30, Series of 1992
RA No. 7942 - An Act Instituting a New System of Mineral Resources
Exploration, Development, Utilization and Conservation (March 3, 1995)
o DAO 2010 21
Maintained co-existence of PD 1899 and RA 7076
EO No. 79 - Institutionalizing and Implementing Reforms in the
Philippine Mining Sector, Providing Policies and Guidelines to Ensure
Environmental Protection and Responsible Mining in the Utilization of
Mineral Resources (July 6, 2012)
o DAO 2012 07
Does not recognize PD 1899
Department of Environment and Natural Resources
Republic of the Philippines 73
B. Republic Act (RA) No. 7076

Basic Features of Small-Scale Mining

Largely artisanal and relies heavily on manual


labor.
No explosives and/or blasting accessories are
being used
Sophisticated and heavy equipment are
prohibited in the mining/ contract/ permit area
Annual production limit
Metallic Minerals = 50,000 DMT of ore
Non-metallic minerals = 50,000 DMT of the
material itself
Department of Environment and Natural Resources
Republic of the Philippines 74
B. Republic Act (RA) No. 7076

Basic Features of Small-Scale Mining

Maximum area is 20 hectares

Maximum Capital Investment: PhP 10 Million

Small-scale Mining (Permit)/Contract is


effective for two (2) years.

Department of Environment and Natural Resources


Republic of the Philippines 75
B. Republic Act (RA) No. 7076

Basic Features of Small-Scale Mining


Measures to Improve SSM Under EO 79:

a) SSM shall comply with RA No. 7076 and the EIS


System.
b) SSM operations shall be undertaken only in PSSM
Areas.
c) P/CMRBs shall be operationalized
d) Limit the metallic minerals to gold, silver and
chromite .
e) Strictly prohibits the use mercury
f) Training and capacity building shall be provided by
agencies concerned.
Department of Environment and Natural Resources
Republic of the Philippines 76
DAO 2015-03
THE NEW GUIDELINES FOR SMALL-SCALE MINING

Department of Environment and Natural Resources


Republic of the Philippines 77
B. Republic Act (RA) No. 7076

DAO No. 2015-03: Major Features


1. Incorporation of the relevant provisions on small-scale
mining under Executive Order No. 79, as follows:

a. Compliance with the provisions of RA No. 7076 and


Presidential Decree No. 1586, the Environmental Impact
Statement System;

b. Imposition of Community Development Management


Program, Potential Environmental Impact Report and
Final Mine Rehabilitation/Decommissioning Plan;

Department of Environment and Natural Resources


Republic of the Philippines 78
B. Republic Act (RA) No. 7076

DAO No. 2015-03: Major Features


1. Incorporation of the relevant provisions on small-scale
mining under Executive Order No. 79, as follows:
c. Confinement of mining activities within Minahang
Bayan or Peoples Small-Scale Mining Areas;
d. Operationalization of all the Provincial/City Mining
Regulatory Boards (Boards);
e. Restriction to other metallic minerals except for gold,
silver and chromite;

Department of Environment and Natural Resources


Republic of the Philippines 79
B. Republic Act (RA) No. 7076

DAO No. 2015-03: Major Features


1. Incorporation of the relevant provisions on small-scale
mining under Executive Order No. 79, as follows:

f. Prohibition on the use of mercury;


hydraulicking and compressor mining;

g. Provision of technical assistance to


small-scale miners.

Department of Environment and Natural Resources


Republic of the Philippines 80
B. Republic Act (RA) No. 7076

DAO No. 2015-03: Major Features

2. Making available portions of large-scale mining areas for


the declaration of Minahang Bayan.

3. Limiting the total term of the Small-Scale Mining


Contract, including its renewals, to a maximum period of
six (6) years.

4. Strengthening the provisions of custom mill(s) within a


centralized mineral processing zone under a Minahang
Bayan.

Department of Environment and Natural Resources


Republic of the Philippines 81
B. Republic Act (RA) No. 7076

DAO No. 2015-03: Major Features


5. Imposition of national and local taxes and royalty
payment in Mineral Reservations

6. Adoption of current regulations on the transport and


export of mineral products.

7. Updating the pertinent rates of prescribed fees and


charges.
8. Reversion of the Provincial Governor or City Mayor or
his/her representative as member of the Board.

9. Adoption of the small scale administrative mechanism


with current administrative set up.
Department of Environment and Natural Resources
Republic of the Philippines 82
B. Republic Act (RA) No. 7076

Permitting Mechanism

1. Registration of Small-Scale Miners

2. Licensing of Small-Scale Mining Contract Applicants

3. Declaration of Minahang Bayan

4. Awarding of Small-Scale Mining Contract

5. Issuance of Mineral Processing License

Department of Environment and Natural Resources


Republic of the Philippines 83
B. Republic Act (RA) No. 7076

Current Status of Implementation


(DAO 2015-03)
a. IEC
b. Relentless drive vs illegal small-scale mining
c. Continuing technical assistance
d. Activation of P/CMRBs
e. Intensification of Declaration of Minahang
Bayan

Department of Environment and Natural Resources


Republic of the Philippines 84
Current Status of Implementation
(DAO 2015-03)
INITIAL REVIEW CHECKLIST FOR PROPOSED MINAHANG BAYAN
(Pursuant to DENR AO No. 2015 03)

Proponent/Petitioner:
Contact Person:
Designation/Authority:
Area Location:
Total Area (Has.):
Target Mineral Commodity:

1. Petition/Proposal for Minahang Bayan


2. Area Described in Geographical Coordinates and followed the Meridional Block System
3. Area Status Vis--Vis Private Properties (if applicable)
3.1. Name and Address of the private land owner/s
3.2 Agreement w/Consent of the private land owner/s
4. Area Status Vis--vis the areas Closed to mining applications/No-Go-Zones
5. Area Conflict with Existing Mining Tenements (if applicable)
5.1 Tenement ID and Name of Holder/Applicant
5.2 Valid Consent/Waiver from the Tenement Holder
5.3 Proof of Area Eligibility despite absence of consent
5.3.1 Proof of Tenement Denial/Cancellation
5.3.2 Proof of Pending Appeal/Motion for Reconsideration
5.3.3 Proof of Finality of Denial/Cancellation (if applicable)
6. MGB RO Evaluation Report re:
6.1 Technical and Economic viability for small scale-mining;
Department of Environment and Natural Resources
6.2 Allocation for Mineral Processing Zone (if applicable)
Republic of the Philippines 85
B. Republic Act (RA) No. 7076

Current Status of Implementation


(DAO 2015-03)
NO-GO ZONE AREAS
No-go zones are areas declared by the government as closed to
mining, as per Executive Order (EO) 79, aimed at reforming policies in
the mining sector for environmental protection and efficient use of
resources.
Before the said EO was issued, no-go zones were limited to protected
areas under the National Integrated Protected Areas System Act of
1992 (RA 7586).
It has since been expanded to include tourism-development areas,
critical areas as identified by the Department of Environment and
Natural Resources and prime agricultural lands.
Examples => National Parks, Natural Parks, Protected Landscapes and
Seascapes, Watershed Forest Reserves, Natural Biotic Areas, Wlifdlife
Sanctuaries, etc.

Department of Environment and Natural Resources


Republic of the Philippines 86
Current Status of Implementation
(DAO 2015-03)

Department of Environment and Natural Resources


Republic of the Philippines 87
Current Status of Implementation
(DAO 2015-03)
Evaluation Sheet=> cont.

8. PMRB Certification Re:

8.1 That there is no formal Protest filed; or


8.2 That the favorable Decision has become final &
executory

9. Endorsement by the majority of the Sanggunian

10. NCIP Certification:


10.1 Certificate of Non-Overlap; or
10.2 Certificate of Compliance with corresponding MOA

Department of Environment and Natural Resources


Republic of the Philippines 88
Current Status of Implementation
(DAO 2015-03)
Evaluation Sheet=> cont.

8. PMRB Certification Re:

8.1 That there is no formal Protest filed; or


8.2 That the favorable Decision has become final &
executory

9. Endorsement by the majority of the Sanggunian

10. NCIP Certification:


10.1 Certificate of Non-Overlap; or
10.2 Certificate of Compliance with corresponding MOA

Department of Environment and Natural Resources


Republic of the Philippines 89
Procedure in the Processing of MB Petitions
Petition to be filed with the Board

YES Viability
Notices to
Evaluation
conflicted areas;
Open for and Initial
Posting of Notices,
Declaration allocation Review by
Publication, NCIP
for Mineral the
Certificate of Non-
processing Secretary
overlap, favorable
Zone, if
NO endorsements
applicable

Petition/
Proposal
Denied

Petitioner/Board MGB ROs MGB-DENR Board

Department of Environment and Natural Resources


Republic of the Philippines 90
Procedure

NO Declaration of
With Minahang
Opposition Clearance from Secure ECC (for the
/Protest DENR Secretary entire MB area) Bayan; Posting
and
Publication
YES
For
resolution
by the
Board
Petitioner
Board MGB-DENR Board
& EMB

Department of Environment and Natural Resources


Republic of the Philippines 91
Executive Order (EO) No. 79

Institutionalizing and implementing


reforms in the Philippine mining
sector, providing policies and
guidelines to ensure environmental
protection and responsible mining in
the utilization of mineral resources

Signed on 06 July 2012

Department of Environment and Natural Resources 92


Republic of the Philippines
HIGHLIGHTS OF THE MINING POLICY

Review of the Performance of Existing


Mining Operations and Cleansing of Non-
Moving Mining Rights Holders.

Freeze in Grant of Mineral Agreements


Pending New Legislation on Revenue
Sharing.

Grant of Mining Rights thru Competitive


Public Bidding.

Department of Environment and Natural Resources 93


Republic of the Philippines
highlights. . .
Abandoned Tailings

Declaring Abandoned Ores and Tailings as


Assets of the State for Bidding.

Development of Downstream Industries


for the Mineral Sector. Low-grade ore
Mining, 1% Ni

Constituting the Cabinet-Level Mining


Industry Coordinating Council.

Department of Environment and Natural Resources 94


Republic of the Philippines
Highlights. . .

Rationalizing Small-Scale Mining Activities.

Addressing the Conflicts between Local


Ordinances and the National Laws.

Creating a One-Stop Shop for All Mining


Applications.

Joining the Extractive Industries


Transparency Initiative.

Department of Environment and Natural Resources 95


Republic of the Philippines
highlights. . .

Creation of a Centralized Database for


the Mining Industry.

Creation of an Integrated Map System


for Mining.

Creation of an Anti-illegal Mining Task


Force.

Use of the Programmatic Environmental


Impact Assessment in Mining.

Department of Environment and Natural Resources 96


Republic of the Philippines
The Implementing Rules and
Regulations of Executive Order No.
79 was issued in October 2012 by
the DENR

Department of Environment and Natural Resources 97


Republic of the Philippines
ANTI-MINING SENTIMENT

MINING
Current Violations & INDUSTRY Advocacy Groups
Malpractices

98
Results of Anti-Mining Sentiment

Local Governments issuing ordinances and resolutions against


mining;
Congress considering Bills declaring mining- free provinces and
cities;
Government increasing regulatory requirements; and
Advocacy groups filing complaints and cases against mining
projects.

Department of Environment and Natural Resources 99


Republic of the Philippines
MINING STUDY GROUP

Created in October 2011 per


instruction of the President
Tasked to finalize the mining
industry policies
Composed of the DENR
Secretary, Presidential
Assistants on Climate Change
and on Environmental
Protection, and Vice-Chair of
the Climate Change
Commission

Department of Environment and Natural Resources 100


Republic of the Philippines
THE MINING STUDY GROUPS
SPECIFIC TASKS:

1. Address issues and concerns in the mineral sector-

Lack of baseline data


Policy inconsistencies between national and local laws
Governance and law enforcement
Lack of total economic valuation
Increasing government share in mining revenues
Adverse effects of environmental degradation and climate
change

101
THE MINING STUDY GROUPS
SPECIFIC TASKS:

2. Provide a clear and detailed assessment of the state of the


mining industry, its impacts, effects and potential for the future;

3. Consult with the concerned stakeholders such as the mining


industry, non-government and civil society organizations, and
environmental groups, among others; and

3. Formulate the mining industry policy by the end of the year and
present it to the Presidents approval.

102
Actions Taken:

3. On the Participation in the Extractive Industries Transparency


Initiative (EITI)

Philippine candidacy accepted.


Executive Order No. 147 was issued on November 26, 2013
institutionalizing the EITI in the Philippines and formalizing
the PH-EITI implementation structures.

4. On Measures to Improve Small-Scale Mining

New Small-scale Mining guidelines endorsed by MICC to


DENR for promulgation.

Department of Environment and Natural Resources 103


Republic of the Philippines
Actions taken:

5. On the Establishment of Mineral Reservations

15 Mineral Reservations are targeted to be


identified and assessed for this year.

6. On the New Revenue Sharing Scheme

Draft bill for submission to Congress.

Department of Environment and Natural Resources 104


Republic of the Philippines
Actions taken:

7. On the Review of Performance of Existing Mining Operations

Multi-Stakeholder Teams created in every Regions thru MGB


Memorandum Circular No. 2013-03 dated November 29, 2013.
Cleansing process ongoing; 43 MPSAs recommended for
cancelation.

8. On the Illegal Mining

Task Force on Illegal Mining, led by DILG, created.


Fact-Finding Committee on Illegal Mining, headed by DOJ,
with DILG and DENR as members, created.
Anti-illegal mining operations launched.

Department of Environment and Natural Resources 105


Republic of the Philippines
3. Actions taken: EO 79
On February 21, 2013, DENR Memorandum Order No. 2013-
01 was issued Increasing the Minimum Capital requirements
for Mining Application:

Department of Environment and Natural Resources


Republic of the Philippines 106
3. Actions taken: EO 79
On February 21, 2013, DENR Memorandum Order No. 2013-
10 was issued Increasing the Filing and Processing Fees for
Mining Application:

Department of Environment and Natural Resources


Republic of the Philippines 107
CONCLUSION

Projects that cannot absorb the


environmental and social costs of
modern mining shall not be allowed
to proceed.

108
EXPECTED OUTCOME OF MINING POLICY REFORMS

THE GOVERNMENT IS NOW ENSURING THAT CLEAR AND


PREDICTABLE POLICIES FOR A MORE SECURED MINING
INVESTMENTS WILL BE SET IN PLACE UNDER GOOD
GOVERNANCE AND THE PRINCIPLE OF RESPONSIBLE
MINING.

Department of Environment and Natural Resources 109


Republic of the Philippines
NEW POLICY ISSUANCES
ON MINING

Department of Environment and Natural Resources 110


Republic of the Philippines
A. On July 8, 2016, then DENR Secretary Regina Paz L. Lopez issued
the Memorandum Order (DMO) No. 2016-01 for the conduct of
audit of all metallic and non-metallic operating mines and
prescribing a moratorium on the approval of new mining
projects.

Status: Result of the Audit of 41 Mining Companies

2 with show cause orders


22 for closure
12 passed mine audit
4 for suspension
1 deferred action

Department of Environment and Natural Resources 111


Republic of the Philippines
Cont. . . .

A. On DMO No. 2016-01

On the May 2, 2017 Letter of the Office of the President to one of the
mining companies

Referring to Section 9 of Administrative Order No. 22, s. 2011 in re:


Prescribing Rules and Regulations Governing Appeals to the Office of the
President , to quote:

By operation of the above-quoted provisions, the execution of the Order


of the DENR Secretary is deemed stayed as a matter of course on account
of the pendency of appellants appeal. The results without need of action
from any party or this Office, and as in this case- without this Office
necessarily giving due course to appellants appeal. In fact, it is only when
the stay is made subject to certain terms or conditions that action from
this Office is required.

Department of Environment and Natural Resources 112


Republic of the Philippines
MALACANAN PALACE
MANILA
BY THE PRESIDENT OF THE PHILIPPINES
ADMINISTRATIVE ORDER NO. 22
PRESCRIBING RULES AND REGULATIONS GOVERNING APPEALS TO THE
OFFICE OF THE PRESIDENT OF THE PHILIPPINE
October 11, 2011

SECTION 9. Stay of execution. The execution of the


decision/resolution/order appealed from is stayed upon the
filing of the Notice of Appeal within the period prescribed herein,
provided that the stay of execution shall not apply (a) where provided
by special law, and (b) in decisions/resolutions/order of the
Department of Interior and Local Government pursuant to AO No. 23
(s. 1992), as amended. However, in all cases, at any time during the
pendency of the appeal, the Office of the President may direct or stay
the execution of the decision/resolution/order appealed from upon
such terms and conditions as it may deem just and reasonable.

With respect to decisions/resolutions/orders of the Housing and


Land Use Regulatory Board, the appeal will stay the execution for a
period of sixty (60) days from the date of the filing of a Notice of
Appeal within the period set in Section 1, after which the
decision/resolution/order shall be executory unless otherwise
ordered by the Office of the President. 113
B. On January 30, 2017, MGB issued the Memorandum for all its
Regional Offices in re: Guidelines in the Implementation of the
Groundwater Resource and Vulnerability Assessment Project of the
Mines and Geosciences Bureau.

Status: Pertinent guidelines provided. For strict and immediate


compliance.

Brgy. Lelemaan, Manaoag, Pangasinan. Brgy. Poblacion, San Jacinto, Pangasinan

Department of Environment and Natural Resources 114


Republic of the Philippines
115
C. On February 1, 2017, MGB Memorandum Circular for the
Prioritization in the Selection of Target Areas and
Metals/Mineral Commodities and Preparation of Work Plans for
Implementation under the Mineral Reservation Program
Beginning 2017

Status: Took effect immediately.

ee

116
D. On the 75 MPSAs within the Watersheds (February 14, 2017)

Status: The DENR initially wrote show-cause orders on various


dates. All mining companies concerned responded. Now under
evaluation by the DENR.

117
E. DAO No. 2017-10 dated April 27, 2017 in re: Banning the Open
Pit Method of Mining for Copper, Gold, Silver and Complex Ores
in the Country

Status: Considered as a valid issuance. Effective after complete


publication/registration Office of the National Administrative
Registrar.

F. DAO No. 2017-07 dated March 10, 2017 in re: Mandating Mining
Contractors to Participate in the Philippine Extractive Industries
Transparency Initiative (PH-EITI)

Status: Considered as a valid issuance. Effective after complete


publication/registration Office of the National Administrative
Registrar.

Department of Environment and Natural Resources 118


Republic of the Philippines
F. DMO No. 2017-01 dated March 10, 2017 in re: Exclusion of Certain
Quarry Resources from the Mining Moratorium

Status: Effective immediately. Mineral requirements for cement,


aggregates and related materials of the construction industry, quarry
resources, such as limestone, aggregates, and other related
materials used in the said industry are excluded from the moratorium
imposed under DAO No. 2016-01.

G. MGB MC No. 2017-02 dated February 6, 2017 in re: Clarification on


the Issuance of Mineral Processing Permits

Issued on February 6, 2017 stating that contractors who are


engaged in cement manufacturing and holders of Quarry and
Industrial Sand and Gravel (ISG) Permits are not required to secure
MPP, as such imposition is a duplication of requirements.

Status: Further clarification was issued thru the Memorandum dated


May 17, 2017.
119
120
H. DAO No. 2016-29 dated November 25, 2016 in re: DENR Freedom
of Information Manual

Issued pursuant to EO No. 02 dated July 23, 2016 entitled


Operationalizing in the Executive Branch the Peoples
Constitutional Right to Information and the State Policies of Full
Public Disclosure and Transparency in the Public Service and
Providing Guidelines Therefore.

Status: Took effect after complete publication/registration Office


of the National Administrative Registrar.

Department of Environment and Natural Resources 121


Republic of the Philippines
POLICY PRONOUNCEMENTS

10-POINT ECONOMIC AGENDA OF PRRD

1. Continuing and maintaining current macroeconomic policies,


including fiscal, monetary and trade policies;

2. Instituting progressive tax reform and more effective tax collection


while indexing* taxes to inflation;

3. Increasing competitiveness and the ease of doing business, drawing


upon successful models used to attract business to local cities such
as Davao, as well as pursuing the relaxation of the Constitutional
restrictions on foreign ownership, except with regards to land
ownership, in order to attract foreign direct investments;

* or indexation - a system of economic control in which certain variables (as wages and interest) are
tied to a cost-of-living index so that both rise of fall at the same rate and the detrimental effect of
inflation is theoretically eliminated 122
4. Accelerating annual infrastructure spending to account for 5
percent of the gross domestic product, with public-private
partnerships playing a key role;

5. Promoting rural and value chain development toward


increasing agricultural and rural enterprise productivity and rural
tourism;

6. Ensuring security of land tenure to encourage investments and


address bottlenecks in land management and titling agencies;

7. Investing in human capital development, including health and


education systems, as well as matching skills and training to
meet the demands of businesses and the private sector;

Department of Environment and Natural Resources 123


Republic of the Philippines
8. Promoting science, technology and the creative arts to
enhance innovation and creative capacity toward self-
sustaining and inclusive development;

9. Improving social protection programs, including the


governments conditional cash transfer program, in order to
protect the poor against instability and economic shocks;
and

10. Strengthening the implementation of the Responsible


Parenthood and Reproductive Health Law to enable
especially poor couples to make informed choices on
financial and family planning.

Department of Environment and Natural Resources 124


Republic of the Philippines
POLICY PRONOUNCEMENTS

MGB FIVE (5) POLICY DIRECTIONS*

Policy 1: Minerals and metal-led industrialization initiatives

Strategies on value-adding activities for downstream processing of


metallic mineral resources:

1. Ensure continued availability and security of supply of


materials and commodities, and thereby, minimize risks to the
economic growth trajectory, by planning and establishing a
robust mine-to-metal value chain.
2. Revisit regulatory and compliance policies as regards mining
and processing of metallic minerals
3. Conduct an inventory and further exploration studies, if
necessary of the various natural resources in the country
especially the magnetite sand deposits, coal, limestone,
nickel, chromite, etc.

*Keynote speech 63rd annual National Mine Safety and Environment Conference
125
Philippine Mine Safety and Environment association (Published Nov 21, 2017)
Policy 2: Streamlining of application procedures

MGB has to be clearer in its policy issuances, make sure


that things are well understood and the Bureau is able to
cut down on the list of requirements and documents that
have to be submitted to make the time of processing be
shorter.

Policy 3: MGB-led inter-agency coordination of regulatory agencies


in mining projects

The management of the countrys mineral resources will be done


through the sharing of authority among the government agencies.

MGB shall closely coordinate with other regulatory agencies in the


approval of mining projects.

Department of Environment and Natural Resources 126


Republic of the Philippines
Policy 4: Strong Community Relations Programs

To achieve the governments and the industrys common


objectives on responsible mining and community development.

To squarely address legitimate concerns, provide proper


information to have shared perspectives of development options,
encourage cooperation in order to build trust and shared goals
and values and ensure that host communities are deeply
involved in the environmental protection and enhancement
programs.

To see to it that host communities are engaged in every step of


the way towards responsible mining and adhere to the principle
of subsidiarity, which recognizes that decisions should be
decentralized and taken as close as possible to the people and
communities most directly affected.
Department of Environment and Natural Resources 127
Republic of the Philippines
Policy 5: Final Land Use options of mineral lands

To adhere to the principle that mining is just a temporary


land use.

To ensure that final land use options will be thoroughly


discussed and consulted with the local government units,
the communities and other stakeholders.

To work for a greater collaboration between LGUs,


community, local civil society, and the industry will result in
sound land use planning and management and
determination of the most suitable and sustainable final
land use.

Department of Environment and Natural Resources 128


Republic of the Philippines
that mining in the country should be done in a
responsible manner and should be based on
existing laws, rules and regulations. That mining
can only be responsible if the development of
the country's mineral resources will be on the
basis of technical feasibility, environmental
sustainability, social acceptability, and financial
viability. The absence of one will not render the
project responsible.
Usec and MGB Director M. L. Jacinto

Department of Environment and Natural Resources 129


Republic of the Philippines
Magandang Hapon at
Maraming Salamat Po!

www.denr.gov.ph www.mgb.gov.ph
Republic of the Philippines
DEPARTMENT OF ENVIRONMENT & NATURAL RESOURCES

MINES AND GEOSCIENCES BUREAU


130

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