MINERAL RESOURCES RULES

& REGULATIONS and MINING

PERMIT/TENEMENT
PROCESSING
under R.A. 7942
(Phil. Mining Act of 1995)
MGB-IVA (CALABARZON)

1987 CONSTITUTION (Article XII, Sec. 2)

National Economy and Patrimony
All lands of the public domains, waters,
minerals, coal, petroleum, and other
mineral oils, all forces of potential energy,
fisheries, forests or timber, wildlife, flora
and fauna, and other natural resources
are owned by the State. x x x The
exploration, development, and utilization
of natural resources shall be under the
full control and supervision of the State.

REPUBLIC ACT NO. 7942

MINING ACT OF 1995
Enshrined the principles of responsible
mining under the concept of sustainable
development
Stringent environmental & social provisions
Mining projects that cannot afford
environmental & social cost are not allowed
to operate

STAGES OF MINING
EXPLORATION

DEVELOPMENT

PRODUCTION

PROGRESSIVE
REHABILITATION

FINAL MINE
DECOMMISSIONING /
REHABILITATION

EXPLORATION STAGE
Drilling
EXPLORATION

Soil Analysis

Mineral Analysis

Boundary Survey

Rock Sampling

Geochemical Surveys

DEVELOPMENT STAGE
EXPLORATION
Construction of ancillary facilities
Mine Open Pit Development
DEVELOPMENT

Mill Development & Construction

PRODUCTION STAGE
Extraction of minerals
EXPLORATION

DEVELOPMENT
Gold Extraction

PRODUCTION

Mineral Processing

Mine Control

FINAL MINE DECOMMISSIONING STAGE

Nursery Production
EXPLORATION

DEVELOPMENT

Slope Stabilization
and Erosion Control

Reforestation
PRODUCTION

FINAL MINE
DECOMMISSIONING /
REHABILITATION

Areas Closed or Banned to Mining

1.
2.
3.
4.

Military and other government reservations;

Areas near or under built-up areas;
Areas with valid and existing mining tenements;
Old growth virgin forests, proclaimed watershed forest
reserves, wilderness areas, mossy forests, national
parks, provl/municipal forests, tree parks, greenbelts,
game refuge, bird sanctuaries and areas proclaimed
as marine reserves/marine parks and identified initial
components of the National Integrated Protected Areas
System (NIPAS) pursuant to R.A. No. 7586 ;

Areas Closed or Banned to Mining

5.

6.

Offshore areas within five hundred (500) meters from

the mean low tide level and onshore areas within two
hundred (200) meters from the mean low tide level
along the coast; and,
In case of seabed marine aggregate quarrying,
offshore areas less than 1,500 meters from the mean
low tide level of land or island(s) and where the
seabed depth is less than 30 meters measured at
mean sea level.

ADDITIONAL AREAS CLOSED OR BANNED

TO MINING AS PER Section 1 of E.O. No. 79
a) Prime agricultural lands, including plantations and areas devoted to valuable crops, and
strategic agriculture and fisheries development zones and fish refuge and sanctuaries
declared as such by the Secretary of the Department of Agriculture (DA);
b) Tourism development areas, as identified in the National Tourism Development Plan
(NTDP); and,
c) Other critical areas, island ecosystems, and impact areas of mining as determined by
current and existing mapping technologies, that the DENR may hereafter identify pursuant to
existing laws, rules, and regulations, such as, but not limited to, the NIPAS Act.
.

Acquisition of Mining Rights/Tenements

MINING
(Exploration, Development and Utilization
of Mineral Resources)

DIRECT STATE PARTICIPATION

(thru the Philippine Mining Devt Corp.)

Joint Venture/
Working Agreement/MOA
w/ Qualified Entity

PRIVATE ENTITY
(Qualified Person)

National Govt.
(DENR-MGB)

Local Govt.
(Provincial/City Govt.)

Various Mining
Tenements

Various Mining
Tenements

TYPES OF MAJOR MINING CONTRACTS/

PERMITS(issued by the National
Government)

Exploration Permit
Mineral Agreement
Financial or Technical
Assistance Agreement
Mineral Processing Permit

Qualified Person/Entity
Individual / Corporation
Technically and financially capable
MPSA- Limited to Filipinos or Filipino owned
corporation( Foreign equity not to exceed 40%)
Exploration Permit (EP), Financial or
Technical
Assistance Agreement (FTAA) and Mineral Processing
Permit (MPP) - Open to Local or Foreign -Owned
Corporation ( 100% Foreign equity)

Minimum Authorized and Paid Up Capital

Requirements for Applicants for Exploration
Permit(EP), Mineral Agreement (MA) and
Financial and Technical Assistance
Agreement(FTAA)

Authorized Capital-

PhP 100,000,000.00

Paid Up Capital -

PhP

6,250,000.00

Filing and Processing Fees

Application for EP
200,000.00/
Application

Php 300.00/hectare but not

less than Php

Application for MA Php 300.00/hectare but not

300,000.00/
Application

less than Php

Application for FTAA

than Php 500,000.00/
Application

Php 300.00/hectare but not

less

EXPLORATION PERMIT (EP)

Allows the permittee to conduct exploration work for a

limited period only
Does not confer ownership to the permittee
Two (2) years, renewable for like periods up to 6/8 yrs;
Maximum area:
Individual

Corporation

In any one province

(Onshore)

20 Blocks

200 Blocks

In entire Philippines
(Onshore)

40 Blocks

400 Blocks

Offshore
32,400

100 Blocks

1000 Blocks

hectares (onshore)
Open to Filipino individuals and companies, and
foreign owned (up to 100%) corporations

MINERAL AGREEMENTS (MA)

a. Mineral Production Sharing Agreement (MPSA)
Exclusive right to conduct mining operations
(exploration, development, construction,
production) within a contract area
Does not confer ownership to the contractor
Limited to Filipinos or Filipino-owned
corporations (Foreign equity not to exceed 40%)
Maximum area:
Individual

Corporation

In any one province

10 Blocks

5000 has. (metallic)

2000 has. (non-metallic)

In entire Philippines

20 Blocks

5000 hectares

Offshore

50 Blocks

500 Blocks

Term

of 25 yrs; renewable for another 25 yrs;

MINERAL AGREEMENTS (MA)

b. Co-Production Agreement
An agreement between the Government and the
Contractor wherein the former shall provide inputs
to the mining operations other than the mineral
resource.
c. Joint Venture Agreement
An Agreement where a joint venture company is
organized by the Government and the Contractor
with both parties having equity share. Aside from
the earnings in equity, the Government shall be
entitled to a share in the Gross Output.
*

These two modes of agreement have not been made

operational due to the inability of government to input
needed equity shares.

FINANCIAL OR TECHNICAL
ASSISTANCE AGREEMENT (FTAA)

Exclusive right to conduct large-scale mining

operations (exploration, development, construction,
production) within a contract area
Does not confer ownership to the contractor
Open to local or foreign-owned corporations (up to
100% foreign equity)
Maximum area: 81,000 hectares (onshore) and
324,00 hectares (offshore) subject to relinquishment:
Term of 25 years; renewable for another 25 years

MINERAL PROCESSING PERMIT

Permit issued for processing of

minerals
Can be granted for cement plants,
smelting and refining;
beneficiation plants; marble
cutting and processing plants,
rock crushing plants and others of
similar nature;

MINERAL PROCESSING PERMIT

5-year

Term, renewable for like periods, up to

a maximum of 25 years;
Allows both local and 100% foreign-owned
corporations;
Approval:
MGB Regional Director for projects with
cost of PhP 200 Million or lesser.
MGB Director for projects with cost of more
than PhP 200 Million up to PhP 500 Million
DENR Secretary for projects with cost of
more than PhP 500 Million

EP APPLICATION PROCESS FLOW

1.
2.
3.
4.

Application and Mandatory Acceptance

Requirements
Location Map
Two-Year Exploration Work Program
Proof of Technical Competence
Proof of Financial
Capability

Certification from Panel

of Arbitrators

Filing of Application in Regional

Office

Area Status and Clearance/

Consent by MGB, DENR Sectors
and/or other Govt. Offices

Certification of Publication/
Posting/ Radio Announcement

Publication, Posting and Radio

Announcement

NCIP Certification
Pre-condition

Evaluation by MGB RO & CO

Certificate of Environmental
Management & Community Relations
Record
2 Year Environmental Work Program
Proof of Sanggunian cnsultation in the form
of receipt of ExWP, EnWP . Endorsement
is not yet required

Approval by MGB CO
(subject to clearance from DENR)

MPSA APPLICATION PROCESS FLOW

1.
2.
3.
4.
5.
6.

Application and Mandatory Acceptance

Requirements
Location Map
3 - Year Development/Utilization Work
Program
Proof of Technical Competence
Proof of Financial Capability
Mining Project Feasibility Study
Final Exploration
Report

Certification from Panel

of Arbitrators

Filing of Application in Regional

Office

Area Status and Clearance/

Consent by MGB, DENR Sectors
and/or other Govt. Offices

Publication, Posting and Radio

Announcement

Certification of Publication/
Posting/ Radio Announcement
NCIP Certification
Pre-condition
Certificate of Environmental
Management & Community Relations
Record
ECC/Environmental Protection and
Enhancement Program

Proof of Sanggunian
Consultation/Approval

Evaluation by MGB RO

Final Evaluation/Review
by MGB CO

Approval by DENR Secretary

SLOPE STABILITY OF MINING AREA proper benching, condition of

benches

Typical Limestone Areas

Rock/Aggregates Crushing Plant

TYPES OF MINING PERMITS ISSUED

BY PROVINCIAL GOVERNOR THRU THE
PROVINCIAL MINING REGULATORY
BOARD (PMRB)

Mining Permits issued thru PMRB

1. Quarry Permit (QP)
2. Sand and Gravel Permits
2.1 Commercial Sand and Gravel Permit (CSAG)
2.2 Industrial Sand and Gravel Permit (ISAG)

3. Gratuitous Permit
3.1 Private Gratuitous Permit (PGP)
3.2 Government Gratuitous Permit (GGP)

4. Small Scale Mining Permit (SSMP)

1. Quarry Permit
Term: 5 years
(renewable for the like periods but not to
exceed 25 years)

Area: not more than 5 hectares

2. Sand and Gravel Permits

2.1 Commercial Sand and Gravel
Permit
2.2 Industrial Sand and Gravel Permit

Permit/Parameter

Commercial

Industrial

Years per Term

1 year

5 years

Max. total year

not specified

25 years

Area

Not more than 5 hectares

Provided,
That only one (1) Permit shall be granted to a Qualified
Person in a municipality at any one time under such terms
and conditions as provided herein. (as per DAO 2010-21)

Remarks

- With mechanization
-ISAG covering 5-20
hectares can be applied
thru the Regional Office

3. Gratuitous Permit
Permit/Paramet
er

Government

Private

Purpose

construction of
building(s) and/or
infrastructure for
public use, etc.

personal use only

Term

coterminous with
the project but not
to exceed 1 year

60 calendar days

Area

not more than 2

hectares

not specified

4. Small Scale Mining Permit

Only one (1) people's small scale
mining contract may be awarded at any one time
Area shall not exceed twenty hectares
(20) per contractor
A contract shall have a term of two (2)
years, renewable subject to verification by the
Board for like periods

Provincial Mining
Regulatory Board (PMRB)
Accepts, process and evaluate applications
and determine administrative charges and
fees for Quarry, Sand and Gravel, Small
Scale Mining Permits.

Composition of PMRB Members

- MGB Regional Director or his duly
authorized representative as Chairman
- Governors Representative as ViceChairman
- Small Scale Mining Representative as
Member
- Large Scale Mining Representative as
Member
- Non-Government Organization as
Member

REQUIREMENTS FOR QUARRY OR COMMERCIAL

/INDUSTRIAL SAND AND GRAVEL PERMIT
APPLICATION
1. Duly notarized application form
2. Survey Plan duly signed and sealed by deputized
Geodetic Engineer; Clearance / Certification from
LGU;
3. Work Program duly prepared, signed and sealed
by a licensed Mining Engineer or Geologist;
4. Proof of Technical Competence resume of
technical personnel who shall undertake the
activities;
5. Proof of financial capability to undertake the
project pursuant to work program submitted.

REQUIREMENTS FOR QUARRY OR COMMERCIAL

/INDUSTRIAL SAND AND GRAVEL PERMIT
APPLICATION
6. Statement of assets and liabilities duly sworn in
accordance with laws, credit lines and income
tax return for preceding 3 years (individual).
7. Latest Audited Financial Statement, bank
guarantees, etc. (for corporation)
8. Photocopy of Articles of Incorporations/
partnership/associations/by laws/certificate of
registration.
9. Environmental Compliance Certificate(ECC)

PMRB STANDARD OPERATING PROCEDURE

IN THE PROCESSING OF APPLICATION
Filing / Receiving

Pre-processing
(Determine completeness of
mandatory requirements)

With conflict
PMRB to inform applicant
To secure clearance
from concerned
parties

Area Status

Accepts application/
Payment of filing fee

Endorsement of application
/survey plan to MGB RO-IVA for
Area Status

No Conflict

PMRB Inform applicant to

comply all requirements and
to coordinate with PMRB secretariat
for the conduct of field verification

NOTICE TO APPLICANT
RE:APPROVAL/ISSUANCE/DENIAL

Secretariat schedule PMRB

meeting to Deliberate
mining permit applications
by PMRB Members

PMRB meeting re: deliberation to

deny or approve/endorse
the application to Governor

ENVIRONMENTAL RESPONSIBILITIES
AT EACH STAGE OF MINING OPERATION

EXPLORATION

Environmental
Work Program
(EWP)
Rehabilitation of
explored areas
Pollution control
Campsite
rehabilitation
Drillsite
rehabilitation

DEVELOPMENT

EPEP/ECC
Erosion control
Tailings dam/pond
preparation
Storage of
hazardous
chemical
management

PRODUCTION

Tailings pond/
dam management
Siltation ponds
Reforestation
Hazardous
wastes
management
Slope
stabilization

FINAL MINE
DECOMMISSIONING
FMRD Plan
Removal of
infrastructures
Rehabilitation of
all mine sites
Remediation/
removal of all
potential source
of contaminants
Maintenance of
tailings dams

Environmental Provisions of R. A. 7942

Mining is not allowed in virgin forests, protected
areas, proclaimed watersheds, National
Integrated and Protected Area System(NIPAS)
areas
Mining law provides for adequate safeguards to
mitigate environmental impacts and prevent
future abandoned mines
Environmental Work Program during exploration
stage is required
Environmental Protection and Enhancement
Program during development/production stage is
required
Final Mine Rehabilitation/Decommissioning Plan
during the mine closure stage is mandatory

Environmental Provisions. . .
Mining contractors required to spend 10% of
initial capital for environment-related
infrastructures during development/preoperation stage
Mining contractors to spend 3% to 5% of DMMC
for annual environmental protection
Mining contractors to deposit funds for
environmental protection
10% of EPEP budget or PhP 5 Million whichever is lower

Mining contractors to deposit funds for final

mine closure/rehabilitation during the early
stage of mine production (DAO No. 2005-07)

Environmental Provisions. . .
Deposited funds under management of
Committees

Contingent Liability and

Rehabilitation Fund Committee
(National)

Chair - MGB Director

Vice-Chair EMB Director
Members - Director LMB, FMB, BSWM,
BPI, BFAR, NIA

Environmental Provisions. . .
Deposited funds under management of
Committees

Mine Rehabilitation Fund Committee

(Regional)
Chair MGB Regional Director
Co-Chair DENR Reg. Executive
Director & EMB Regional Director
Members representatives from LGU,
local NGOs/POs, Contractor/Permit
Holder, and Autonomous Regional
Government, when applicable,

Disbursement of funds subject to the approval

of the CLRF/MRF Committees

 All Mining projects are subject to monitoring by

Multi-partite Monitoring Team (MMT) composed
of:

48

DENR-MGB-EMB
LGU/Community
Mining Contractor
NGOs/POs/Religious Groups/Civil Society
Indigenous People/Indigenous Cultural Communities,
in ancestral lands/domains

SOCIAL RESPONSIBILITIES
AT EACH STAGE OF MINING OPERATION

EXPLORATION

Mandatory 10% of
exploration budget
for:
Livelihood
programs
Socio-economic
and cultural
activities
Consent from IPs
Consultation with
LGUs

DEVELOPMENT

PRODUCTION

Social Development
Management Prog.
( Annual commitment is 1.5% of
Total Operating Cost)
Livelihood projects
Assistance to health,
education, etc.
Royalty to Indigenous People
Minimum 1% of Gross
Revenue
Share of LGUs from Excise Tax
Secure Endorsement from
Sanggunian
Royalty to surface rights owners

FINAL MINE
DECOMMISSIONING

Maintenance of
livelihood
projects
Transition
programs such
as retrainings
and education,
job
search/placeme
nt etc

Social Provisions of R. A. 7942

Development of host and neighboring
communities thru Social Development and
Management Program
Promotes self-reliant communities & provides livelihood
and assistance to education, health, peace and order, etc.
Annual mining company commitment for SDMP is 10% of
Total Exploration Budget of the project during the
exploration stage
Annual mining company commitment for SDMP is 1.5% of
Total Operating Cost of the mining project during the
production stage

Preferential employment of majority from

host communities (RA 7942)

Social Provisions
Benefits/Involvement of LGUs in Mining Projects
entitled to 40% of the excise tax/ extraction fee for
sand and gravel (Barangay - 35%; Municipal - 45%;
and Province - 20%)
entitled to occupation fees, real property tax,
business tax and other LGU impositions
recipient of social development projects
approval of mining permit requires the prior
consultation/ endorsement from local government
units

Social Provisions
Obligations to Indigenous
Peoples(IPs)/Indigenous Cultural
Communities(ICCs)
Respect and preserve the culture and
tradition of IPs/ICCs
No mining permits all be approved without
the Free and Prior Informed Consent from
IPs/ICCs
When consent is granted, the IPs/ICCs
entitled to a minimum 1% of annual gross
output for implementation of the Ancestral
Domain Sustainable and Protection
Plan(ADSDPP)

Rights of Indigenous Peoples

Full compliance with the Free and Prior
Informed Consent requirements of IPRA
Royalty of minimum of 1% of Gross Revenues
for the IPs
Implementation of the Ancestral Domain
Sustainable Development and Protection Plan

REPORTORIAL REQUIREMENTS FOR MPSA

Section 270 DAO No. 2010-21
1. Monthly Report on Production, Sales and Inventory
of Non-Metallic Minerals and Employment (MGB
Form 29-10)
To be submitted to MGB Regional Office, copy furnished
MGB-CO
Within 15 working days after the end of each calendar month

2. Quarterly Energy Consumption Report

(MGB Form 29-18)
MGB Regional Office, copy furnished MGB-CO
15 working days after the end of each calendar quarter

3. Integrated Annual Report ( MGB Form 2916)

MGB CO, copy furnished MGB-Regional Office
2 months after the end of each calendar year

4. Annual Mineral Reserve Inventory Report

(MGB Form 29-19)
MGB-CO, copy furnished MGB-Regional Office
End of 1st Quarter of each calendar year

5. Annual Land Use Report

MGB-CO, copy furnished MGB- Regional Office
End of 1st Quarter of each calendar year

6. Proof of Annual Payment of Occupation

Fee
Php 75.00/ hectare payable to the Municipal
Treasurers Office where the MPSA is located

REPORTORIAL REQUIREMENTS FOR

MINERAL PROCESSING PERMIT (MPP)
Section 270 DAO No. 2010-21
1.Monthly Report on Production, Sales and
Inventory of Metallic Minerals and
Employment (MGB Form 29-1 to 29-2)
To be submitted to MGB-CO, copy furnished MGBRegional Office
Within 15 working days after the end of each calendar
month

Monthly Report On Production, Sales and

Inventory of Metallic Minerals and Employment

2. Monthly Report on Production, Sales and

Inventory of Non-Metallic Minerals and
Employment (MGB Form 29-10)
To be submitted to MGB Regional Office,
copy furnished MGB-CO
Within 15 working days after the end of
each calendar month

(MGB Form No. 29-10)

3 Pages

3. Quarterly Energy Consumption Report (MGB Form 2918)

MGB Regional Office, copy furnished MGB-CO
15 working days after the end of each calendar quarter
4. Integrated Annual Report ( MGB Form 29-16)
MGB CO, copy furnished MGB-Regional Office
2 months after the end of each calendar year

REPORTORIAL REQUIREMENTS FOR QUARRY

PERMIT
Section 270 DAO No. 2010-21
1. Quarterly Report on Production, Sales and Inventory of
Quarry Resources (Except Sand and Gravel) and
Employment (MGB Form 29-11)
To be submitted to the Provincial Governor/ City Mayor,
copy furnished MGB-CO and MGB-RO
Within 15 working days after the end of each calendar
quarter

REPORTORIAL REQUIREMENTS FOR

INDUSTRIAL SAND AND GRAVEL
PERMIT (IP-SAG)
Section 270 DAO No. 2010-21
1. Monthly Report on Production, Sales and
Inventory of Industrial Sand and Gravel and
Employment (MGB Form 29-12)
To be submitted to MGB-CO, copy furnished MGB-RO
Within 15 working days after the end of each calendar month

REPORTORIAL REQUIREMENTS FOR

COMMERCIAL SAND AND GRAVEL PERMIT

Section 270 DAO No. 2010-21

1. Monthly Report on Production, Sales and
Inventory of Industrial Sand and Gravel
and Employment (MGB Form 29-13)
To be submitted to Provincial Governor/ City Mayor, copy
furnished to MGB-CO and MGB-RO
Within 15 working days after the end of each calendar
month

REPORTORIAL REQUIREMENTS FOR SMALL

SCALL MINING PERMIT

Section 270 DAO No. 2010-21

1. Quarterly Report on Production and Sales of Small-Scale Metallic
Mines and Employment (MGB Form 29-14 for metallic mineral other
than gold and MGB Form 29-15 only for gold)
To be submitted to Provincial Governor/ City Mayor, copy furnished to MGBCO and MGB-RO
Within 15 working days after the end of each calendar quarter

For EP Holder/ Permittee Conducting Any

Drilling Project
Quarterly Drilling Report
MGB-CO, copy furnished MGB Regional Office
30 days at the end of each calendar quarter
Semi Annual Status Report on Exploration Work Program
Proof of Annual Payment of Occupation Fee
Php 75.00/ hectare payable to the Municipal Treasurers
Office where the EP is located

Section 271. Fines

In case of late or non-submission of any
of the reports mentioned, fines shall be
imposed.