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CHAPTER 2
The preservation and protection of the environment and natural resources has been
long recognized by the State under the 1987 Philippine Constitution. It expressly
mentioned the authority of the State to regulate the exploration, development and
utilization of natural resources. Also, the State recognizes the rights of the people to have a
balanced and healthful ecology. For the purpose of this research, the articles on the basic
The State may directly undertake such activities, or it may enter into co-
production, joint venture, or production-sharing agreements with Filipino
citizens, or corporations or associations at least 60 per centum of whose
capital is owned by such citizens. Such agreements may be for a period not
exceeding twenty-five years, renewable for not more than twenty-five years,
and under such terms and conditions as may provided by law. In cases of
water rights for irrigation, water supply, fisheries, or industrial uses other than
the development of waterpower, beneficial use may be the measure and limit
of the grant.
The State shall protect the nations marine wealth in its archipelagic waters,
territorial sea, and exclusive economic zone, and reserve its use and
enjoyment exclusively to Filipino citizens.
The President shall notify the Congress of every contract entered into
in accordance with this provision, within thirty days from its execution.”
The State recognizes the fact that our country is rich in natural resources. It has
fertile, arable lands, diverse flora and fauna, extensive coastlines, and rich mineral
deposits. About 30 million hectares of land areas in our country is deemed as possible
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areas for metallic minerals. About 9 million hectares of land areas is identified as having
high mineral potential, according to Philippine Mines and Geo-Sciences Bureau. In order
to preserve the natural resources, this provision indicates that the exploration, development
and utilization of natural resources must be under supervision of the national government
and this State policy must be incorporated in every statute regarding mining industry.
Thus, mining companies are mandated to comply with law requirements imposed by the
Natural Resources (DENR), Environmental Management Bureau and other law enforcers.
The Regalian doctrine extends not only to land but also to “all natural wealth that
may be found in the bowels of the earth.” The constitutional policy of the State’s “full
control and supervision” over natural resources proceeds from the concept of jura regalia,
as well as the recognition of the importance of the country’s natural resources, not only for
national economic development, but also for its security and national defense.” By which,
the concept of State has been stated both in the 1935 and 1973 Constitutions.
The same section also gives the State full control and supervision over the right to
the exploration, development, and utilization of natural resources. The State may directly
agreements with Filipino citizens or corporations at 60 percent Filipino owned. It may also
for large-scale projects involving minerals, petroleum, and other mineral oils.
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Other than the rigorous regulation over the requirements for mining operations, the
State must also guarantee that the local community near the mining sites shall have a
“Section 16. State shall protect and advance the right of the people to
a balanced and healthful ecology in accord with the rhythm and harmony of
nature.”
This section concerns with promotion of environmental protection and mitigate any
health risks of the public against any potential source of environmental degradation. This is
not explicitly stated in the Bill of Rights of the Constitution but these environmental rights
are as fundamental as civil and political rights. As opined in the case of Oposa v. Factoran,
Jr. the Supreme Court opined hat the right to a balanced and healthful ecology need not
even be written in the Constitution for it is assumed, like other civil and political rights
guaranteed in the Bill of Rights, as well as the issue of transcendental importance with
Former President Fidel V. Ramos signed into law Republic Act 7942 otherwise
known as the “Philippine Mining Act” on March 3, 1995. The law was an undertaking to
deal with the problematic issues of mining which includes a lack of respect for the rights of
indigenous peoples, failure to include local and regional governments in revenue sharing,
development, utilization and processing of all mineral resources in the country and
incorporates different measures to ensure the earth and characterizes zones in which
mining can be permitted. Different forms of a mineral agreement may be made between
the Philippine government and the approved contractor e.g. either of mineral production
Resources (DENR) and copies thereof shall be submitted to the President. Said agreements
must satisfy first the requirements under Environmental Impact Assessment (EIA) process
1.Each mining company shall have prior consultation with the local
2.Each mining company shall secure permits, licenses and clearances from the
comprises of true and correct company profile, completed ecological profile of the
4.If all the requirements have been observed with and passed the qualifications
given.
Upon perusal of the cited section, EIA plays a crucial role in the planning stage
for it identifies and considers the impacts of the proposed mining action to the
environment and welfare of the local communities. Section 69 of the same law, clearly
Furthermore, as part of the EIA process, this law also set a provision on
rehabilitation where it expressly mentioned the mine rehabilitation fund in which the
mining companies are mandated to fulfill such obligation. Said fund shall be utilized for
physical and social rehabilitation in the local community near mining sites.
reserve fund for the sole purpose of paying compensation for damages caused by the
operations of the mine. Such damages includes those that caused damage to personal lives
and safety; lands, agricultural crops and forest products, marine life and aquatic resources,
cultural resources; and infrastructure and the re-vegetation and rehabilitation of silted
farms and other areas devoted to agricultural and fishing caused by mining pollution. The
implementing rules also added that the reserve fund can also be utilized for duly approved
research projects that are needed to further the objective of the fees.
There are funds under the law that has been set-up to guarantee that the money
available for contingencies that may happen due to the high-risk operations in mining.
These are:
mandated by the law to technically and biologically rehabilitate disturbed areas, excavated,
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mined-out and tailings covered to the state of environmental safety. The intent of the law
is to obligate contractors to generate this fund to; (a) implement physical and social
rehabilitation of areas and communities affected by the mining activities, and (b) research
The CLRF, an umbrella term for all environmental guarantee fund (EGF) devices
assigned for this objective, is based on the contractor’s approved work program and is
treated as a trust fund deposited in a government depository. It takes the following types:
The MRF Committee determines the amount of the MTF which shall not be less
that the amount of Php 150,000 while, the RCF is equivalent to 10% of the total amount
This fund assures that the full cost of the Final Mine Rehabilitation
basis.
concerned IP/ICC when they have consented that their ancestral land
community which is managed by them and made upon the use of the
Department Order was promulgated in 1996 and it provides the revised rules and
regulations for the guidance and compliance of all concerned. The Department shall
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“adhere to the principle of sustainable development which meets the needs of the present
without compromising the ability of the future generations to meet their own needs, with
the view of improving the total quality of life, both now and in the future”. Consequently,
governed by the principle of sustainable mining, which provides that the use of mineral
improved quality of life”. This Order must take note of the following terms:
1.Mining is a temporary land use for the creation of wealth which leads to an
optimum land use in the post-mining stage as a result of progressive and engineered
mine rehabilitation work done in cycle with mining operations;
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 closely as possible with all the area's
environmental values intact and establishing a land use capability that is functional and
proximate to the land use prior to the disturbance of the mine area.” Also, such mine
rehabilitation and decommissioning shall aim to establish “a land use capability that is
functional and proximate to the land use prior to the disturbance of the mine area, unless
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other more beneficial land uses are predetermined and agreed in partnership with local
In line with mine rehabilitation phase, this Order also introduces the Final Mine
The above section indicates that a mining company is required to submit a Final
Mine Rehabilitation or Decommissioning Plan (FMRDP) five (5) years before the
implementation of the final decommissioning scheme in the mining area. It must also
include financial requirements on the post decommissioning plan for a ten-year period for
monitoring purposes. This shall be submitted to the following DENR committees: Mine
Rehabilitation Fund Committee (MRF) for pre-evaluation of the FMDRP and the
Contingent Liability and Rehabilitation Fund Steering Committee (CLRF) for its final
Implementing Rules and Regulations (IRR) of the Philippine Mining Act of 1995 (R.A.
7942). This Order is the prevailing law which governs the enforcement of IRR regarding
Under Section 187 of this Order, the mining company shall submit Final Mine
Rehabilitation Fund (MRF) Committee and to the Contingent Liability and Rehabilitation
Fund (CLRF) Steering Committee. In contrast to Section 187 of the DAO 1996-40, this
provision removed the five (5) year period for submission of FMRDP before the
implementation of the said plan. This FMDRP must include all mine closure scenarios
faced by the mining operation and etc. Further, a budget plan for over a ten-year period, if
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necessary, shall also be included regarding the FMDRP implementation but not limited to
social costs.
Based from Section 139 of the same Order, the mining company is obliged to
remove all improvements deemed no longer socially usable after having consultation with
Local Government Unit/s or communities concerned therein. This must take place within
one (1) year from the abandonment, cancellation or termination of the agreement or permit
or lease and consistent with the social aspect of the Final Mine Rehabilitation and/or
Decommissioning Plan. Moreover, this Order reiterates the Section 167 from DAO 1996-
40 which provides that the minesite decommissioning and rehabilitation shall establish a
land use capability that is functional and proximate to the land use prior to the disturbance
of the mine area, unless other more beneficial land uses are predetermined and agreed in