Statutory Regulation: Mining Act of unacceptable environmental impact and that

1995 the proponent has complied with the

Philippine Mining Act of 1995 (RA requirements of the environmental impact
7942) statement system.
 All mineral resources in public and
private lands within the territory and Environmental impact statement (EIS) -
exclusive economic zone of the document which aims to identify, predict,
Republic of the Philippines are owned interpret, and communicate information
by the State. regarding changes in environmental quality
 It shall be the responsibility of the associated with a proposed project and which
State to promote their rational examines the range of alternatives for the
exploration, development, utilization objectives of the proposal and their impact on
and conservation through the the environment.
combined efforts of government and Exclusive economic zone - water, sea
the private sector in order to enhance bottom and subsurface measured from the
national growth in a way that baseline of the Philippine archipelago up to
effectively safeguards the environment 200 nautical miles offshore.
and protect the rights of affected
communities.
Existing mining/quarrying right - valid
 Approved on May 3, 1995 by President
and subsisting mining claim or permit or
Fidel V. Ramos
quarry permit or any mining lease contract
or agreement covering a mineralized area
Terminologies granted/issued under pertinent mining
Ancestral lands - all lands exclusively and laws.
actually possessed, occupied, or utilized by
indigenous cultural communities by Exploration - searching or prospecting for
themselves or through their ancestors in mineral resources by geological,
accordance with their customs and traditions geochemical or geophysical surveys,
since time immemorial, and as may be remote sensing, test pitting, trenching,
defined and delineated by law. drilling, shaft sinking, tunneling or any
other means for the purpose of
Block or meridional block - area bounded determining the existence, extent, quantity
by one-half (1/2) minute of latitude and one- and quality thereof and the feasibility of
half (1/2) minute of longitude, containing mining them for profit.
approximately eighty-one hectares (81 has.).
Financial or technical assistance
Carrying capacity - capacity of natural and agreement - contract involving financial
human environments to accommodate and or technical assistance for large-scale
absorb change without experiencing exploration, development, and utilization
conditions of instability and attendant of mineral resources.
degradation.
Force majeure - acts or circumstances
Contiguous zone - water, sea bottom and beyond the reasonable control of
substratum measured 24 nautical miles contractor including, but not limited to,
seaward from the base line of the Philippine war, rebellion, insurrection, riots, civil
archipelago. disturbance, blockade, sabotage, embargo,
strike, lockout, any dispute with surface
Contract area - land or body of water owners and other labor disputes, epidemic,
delineated for purposes of exploration, earthquake, storm, flood or other adverse
development, or utilization of the minerals weather conditions, explosion, fire, adverse
found therein. action by government or by any
instrumentality or subdivision thereof, act
of God or any public enemy and any cause
Development - work undertaken to explore that herein describe over which the
and prepare an ore body or a mineral deposit affected party has no reasonable control.
for mining, including the construction of
necessary infrastructure and related facilities.
Foreign-owned corporation - any
corporation, partnership, association, or
Ecological profile or eco-profile - cooperative duly registered in accordance
geographic-based instruments for planners with law in which less than 50% of the
and decision-makers which presents an capital is owned by Filipino citizens.
evaluation of the environmental quality and
carrying capacity of an area.
Joint venture agreement (JVA) -
agreement entered into between the
Environmental compliance certificate Government and one or more contractors.
(ECC) - document issued by the government
agency concerned certifying that the project
under consideration will not bring about an
Mineral processing - milling, Mineral Reservations
beneficiation or upgrading of ores or Mining operations in existing mineral
minerals and rocks or by similar means to reservations and such other reservations shall
convert the same into marketable be undertaken by the DENR or through a
products. contractor: Provided, That a small scale-mining
cooperative covered by Republic Act No. 7076
Mine wastes and tailings - soil and rock shall be given preferential right to apply for a
materials from surface or underground small-scale mining agreement for a maximum
mining and milling operations with no aggregate area of 25% of such mineral
economic value to the generator of the reservation. All submerged lands within the
same. contiguous zone and in the exclusive economic
zone of the Philippines are hereby declared to
be mineral reservations.
Minerals - all naturally occurring inorganic
substance in solid, gas, liquid, or any A 10% share of all royalties and revenues to be
intermediate state excluding energy derived by the government from the
materials such as coal, petroleum, natural development and utilization of the mineral
gas, radioactive materials, and geothermal resources within mineral reservations shall
energy. accrue to the Mines and Geosciences Bureau
(MGB).
Mineral agreement - contract between the
government and a contractor, involving
mineral production-sharing agreement, co- DENR - shall be the primary government
production agreement, or joint-venture agency responsible for the conservation,
agreement. management, development, and proper use of
the State's mineral resources including those
in reservations, watershed areas, and lands of
Mineral land - any area where mineral
the public domain. The Secretary shall have
resources are found.
the authority to enter into mineral agreements
on behalf of the Government upon the
Mineral resource - any concentration of recommendation of the Director.
minerals/rocks with potential economic value.
Offshore - water, sea bottom and subsurface Mines and Geosciences Bureau (MGB) -
from the shore or coastline reckoned from the shall have direct charge in the administration
mean low tide level up to the 200 nautical and disposition of mineral lands and mineral
miles exclusive economic zone including the resources and shall undertake geological,
archipelagic sea and contiguous zone. mining, metallurgical, chemical, and other
researches as well as geological and mineral
Onshore - landward side from the mean tide exploration surveys. The Director shall
elevation, including submerged lands in lakes, recommend to the Secretary the granting of
rivers and creeks. mineral agreements to duly qualified persons
and shall monitor the compliance by the
Ore - naturally occurring substance or material contractor of the terms and conditions of the
from which a mineral or element can be mined mineral agreements. The Bureau may
and/or processed for profit. confiscate surety, performance and guaranty
bonds posted through an order to be
promulgated by the Director. The Director may
Quarrying - process of extracting, removing deputize, when necessary, any member or unit
and disposing quarry resources found on or of the Philippine National Police, barangay,
underneath the surface of private or public duly registered non-governmental organization
land. (NGO) or any qualified person to police all
mining activities.
Quarry permit - document granted to a
qualified person for the extraction and Survey, Charting and Delineation of
utilization of quarry resources on public or Mining Areas
private lands.
A sketch plan or map of the contract or mining
area prepared by a deputized geodetic
Ownership of Mineral Resources engineer suitable for publication purposes shall
 Mineral resources are owned by the be required during the filing of a mineral
State and the exploration, development, agreement or financial or technical assistance
utilization, and processing thereof shall agreement application. Thereafter, the
be under its full control and supervision. contract or mining area shall be surveyed and
 The State may directly undertake such monumented by a deputized geodetic
activities or it may enter into mineral engineer or bureau geodetic engineer and the
agreements with contractors. survey plan shall be approved by the Director
 The State shall recognize and protect before the approval of the mining feasibility.
the rights of the indigenous cultural
communities to their ancestral lands as Meridional Blocks
provided for by the Constitution.
For purposes of the delineation of the contract
or mining area, the Philippine territory and its
exclusive economic zone shall be divided into
meridional blocks of ½ minute of latitude and
1/2 minute of longitude. Exploration Permit Maximum areas
• Onshore, in any one province
Opening of Ancestral Lands for Mining • individuals - 20 blocks
Operations
• partnerships, corporations,
No ancestral land shall be opened for mining- cooperatives, or associations - 200
operations without prior consent of the blocks
indigenous cultural community concerned.
• Onshore, in the entire Philippines
• individuals - 40 blocks
Royalty Payments for Indigenous Cultural
• partnerships, corporations,
Communities (ICC)
cooperatives, or associations - 400
In the event of an agreement with an ICC, the blocks
royalty payment, upon utilization of the
• Offshore, beyond 500 m from the
minerals shall be agreed upon by the parties.
mean low tide level
The said royalty shall form part of a trust fund
for the socioeconomic well-being of the • individuals - 100 blocks
indigenous cultural community. • partnerships, corporations,
cooperatives, or associations - 1,000
blocks
Areas Open to Mining Operations
• Public mineral resources
Mineral agreement
• Private mineral resources
 granted to the contractor the exclusive
• Timber/Forestlands
right to conduct mining operations and
to extract all mineral resources found in
Areas Closed to Mining Applications the contract area. In addition, the
• In military and other government contractor may be allowed to convert
reservations, except upon prior written his agreement into any of the modes of
clearance by the government agency mineral agreements or financial or
concerned. technical assistance agreement
• Near or under public or private buildings, covering the remaining period of the
cemeteries, archeological and historic sites, original agreement subject to the
bridges, highways, waterways, railroads, approval of the Secretary.
reservoirs, dams or other infrastructure  A qualified person may enter into any of
projects, public or private works including the 3 modes of mineral agreement with
plantations or valuable crops, except upon the government provided that in case
written consent of the government agency the applicant has been in the mining
or private entity concerned. industry for any length of time and
• In areas covered by valid and existing possess a satisfactory environmental
mining rights. track record as determined by the MGB
and in consultation with the EMB.
• In areas expressedly prohibited by law.
• In areas covered by small-scale miners as
defined by law unless with prior consent of
Modes
the small-scale miners, in which case a
royalty payment upon the utilization of • Mineral production sharing agreement
minerals shall be agreed upon by the - agreement where the Government grants
parties, said royalty forming a trust fund for to the contractor the exclusive right to
the socioeconomic development of the conduct mining operations within a
community concerned. contract area and shares in the gross
output. The contractor shall provide the
• Old growth or virgin forests, proclaimed
financing, technology, management and
watershed forest reserves, wilderness
personnel necessary for the
areas, mangrove forests, mossy forests,
implementation of this agreement.
national parks provincial/municipal forests,
parks, greenbelts, game refuge and bird • Co-production agreement - agreement
sanctuaries as defined by law and in areas between the Government and the
expressly prohibited under the National contractor wherein the Government shall
Integrated Protected Areas System (NIPAS) provide inputs to the mining operations
under Republic Act No. 7586. other than the mineral resource.
• Joint venture agreement - agreement
where a joint-venture company is
Exploration Permit
organized by the Government and the
• grants the right to conduct exploration for contractor with both parties having equity
all minerals in specified areas. The Bureau shares. Aside from earnings in equity, the
shall have the authority to grant an Government shall be entitled to a share in
exploration Permit to a qualified person. the gross output.
Shall be valid for 2 years, subject to annual
review and relinquishment or renewal upon
the recommendation of the Director. Mineral agreement Maximum Areas
• Onshore, in any one province shall only be for the remaining period of
• individuals - 10 blocks the original agreement.
• partnerships, cooperatives, • In the case of a foreign contractor, it
associations, or corporations shall reduce its equity to 40% in the
- 100 blocks corporation, partnership, association, or
• Onshore, in the entire cooperative. Upon compliance with this
Philippines requirement by the contractor, the
Secretary shall approve the conversion
• individuals - 20 blocks
and execute the mineral production-
• partnerships, cooperatives, sharing agreement.
associations, or corporations
- 200 blocks.
Quarry Permit
• Offshore, in the entire
Philippines Any qualified person may apply to the
provincial/city mining regulatory board for
• individuals - 50 blocks
a quarry permit on privately-owned lands
• partnerships, cooperatives, and/or public lands for building and
associations, or corporations construction materials such as marble,
- 500 blocks basalt, andesite, conglomerate, tuff,
• exclusive economic zone, a adobe, granite, gabbro, serpentine, inset
larger area to be determined filling materials, clay for ceramic tiles and
by the Secretary. building bricks, pumice, perlite and other
similar materials that are extracted by
Terms quarrying from the ground. The provincial
governor shall grant the permit after the
• Mineral agreements shall have a
applicant has complied with all the
term not exceeding 25 years to
requirements as prescribed by the rules
start from the date of execution
and regulations.
thereof, and renewable for another
term not exceeding 25 years under
the same terms and conditions Maximum area is 5 hectares and term of 5
thereof, without prejudice to years renewable for like periods but not to
changes mutually agreed upon by exceed a total term of 25 years. No quarry
the parties. permit shall be issued or granted on any
area covered by a mineral agreement or
financial or technical assistance
Financial/Technical Assistance
agreement.
Agreement
Any qualified person with technical and
financial capability to undertake large-scale Commercial Sand and Gravel Permit -
exploration, development, and utilization of Any qualified person may be granted a
mineral resources in the Philippines may permit by the provincial governor to
enter into a financial or technical assistance extract and remove sand and gravel or
agreement directly with the Government other loose or unconsolidated materials
through DENR. Term not exceeding 25 which are used in their natural state,
years. without undergoing processing from an
area of not more than 5 hectares and in
such quantities as may be specified in the
permit.
Maximum Contract Area
• Onshore - 1,000 meridional blocks Industrial Sand and Gravel Permit -
• Offshore - 4,000 meridional blocks Any qualified person may be granted an
• Combinations of onshore and offshore industrial sand and gravel permit by the
provided that it shall not exceed the Bureau for the extraction of sand and
maximum limits for onshore and offshore gravel and other loose or unconsolidated
areas. materials that necessitate the use of
mechanical processing covering an area of
more than 5 hectares at any one time. The
Option to Convert into a Mineral
permit shall have a term of 5 years,
Agreement
renewable for a like period but not to
• The contractor has the option to exceed a total term of 25 years.
convert the financial or technical
assistance agreement to a mineral
agreement at any time during the term Exclusive Sand and Gravel Permit -
of the agreement, if the economic Any qualified person may be granted an
viability of the contract area is found to exclusive sand and gravel permit by the
be inadequate to justify large-scale provincial governor to quarry and utilize
mining operations, after proper notice sand and gravel or other loose or
to the Secretary as provided for under unconsolidated materials from public lands
the implementing rules and regulations: for his own use, provided that there will be
Provided, That the mineral agreement no commercial disposition thereof.
Government Gratuitous Permit - Any 1 year therefrom within which to remove
government entity or instrumentality may his improvements; otherwise, all the social
be granted a gratuitous permit by the infrastructure and facilities shall be turned
provincial governor to extract sand and over or donated tax-free to the proper
gravel, quarry or loose unconsolidated government authorities, national or local,
materials needed in the construction of to ensure that said infrastructure and
building and/or infrastructure for public use facilities are continuously maintained and
or other purposes over an area of not more utilized by the host and neighboring
than 2 hectares for a period coterminous communities
with said construction.
Safety and Environmental Protection
Private Gratuitous Permit - Any owner Prior to cessation of mining operations
of land may be granted a private occasioned by abandonment or withdrawal
gratuitous permit by the provincial of operations, on public lands by the
governor. contractor, the latter shall have a period of
1 year therefrom within which to remove
Guano Permit - Any qualified person may his improvements; otherwise, all the social
be granted a guano permit by the infrastructure and facilities shall be turned
provincial governor to extract and utilize over or donated tax-free to the proper
loose unconsolidated guano and other government authorities, national or local,
organic fertilizer materials in any portion of to ensure that said infrastructure and
a municipality where he has established facilities are continuously maintained and
domicile. The permit shall be for specific utilized by the host and neighboring
caves and/or for confined sites with communities.
locations verified by the Department's field
officer in accordance with existing rules 5 Auxiliary Mining Rights
and regulations. Timber Rights - Any provision of law to
the contrary notwithstanding, a contractor
Gemstone Gathering Permit - Any may be granted a right to cut trees or
qualified person may be granted a non- timber within his mining area as may be
exclusive gemstone gathering permit by necessary for his mining operations subject
the provincial governor to gather loose to forestry laws, rules and regulations:
stones useful as gemstones in rivers and Provided, That if the land covered by the
other locations. mining area is already covered by existing
timber concessions, the volume of timber
Ore Transport Permit - A permit needed and the manner of cutting and
specifying the origin and quantity of non- removal thereof shall be determined by the
processed mineral ores or minerals shall be mines regional director, upon consultation
required for their transport. Transport with the contractor, the timber
permits shall be issued by the mines concessionaire/permittee and the Forest
regional director who has jurisdiction over Management Bureau of the Department:
the area where the ores were extracted. Provided, further, That in case of
disagreement between the contractor and
the timber concessionaire, the matter shall
Mineral Trading Registration - No be submitted to the Secretary whose
person shall engage in the trading of decision shall be final. The contractor shall
mineral products, either locally or perform reforestation work within his
internationally, unless registered with the mining area in accordance with forestry
Department of Trade and Industry and laws, rules and regulations.
accredited by the Department, with a copy
of said registration submitted to the
Bureau. Water Rights - A contractor shall have
water rights for mining operations upon
approval of application with the
Minerals Processing Permit - No person appropriate government agency in
shall engage in the processing of minerals accordance with existing water laws, rules
without first securing a minerals processing and regulations promulgated thereunder:
permit from the Secretary. Minerals Provided, That water rights already granted
processing permit shall be for a period of 5 or vested through long use, recognized and
years renewable for like periods but not to acknowledged by local customs, laws, and
exceed a total term of 25 years. decisions of courts shall not thereby be
impaired: Provided, further, That the
Government reserves the right to regulate
water rights and the reasonable and
Donations/Turn Over of Facilities equitable distribution of water supply so as
to prevent the monopoly of the use
Prior to cessation of mining operations
thereof.
occasioned by abandonment or withdrawal
of operations, on public lands by the
contractor, the latter shall have a period of
Right to Possess Explosives - A • MGB director - member
contractor/exploration permittee shall have • DENR undersecretary for Operations –
the right to possess and use explosives member
within his contract/permit area as may be
necessary for his mining operations upon
Occupation Fees
approval of application with the
appropriate government agency in There shall be collected from any holder of a
accordance with existing laws, rules and mineral agreement, financial or technical
regulations promulgated thereunder: assistance agreement or exploration permit
Provided, That the Government reserves on public or private lands, an annual
the right to regulate and control the occupation. If the fee is not paid on the date
explosive accessories to ensure safe specified, it shall be increased by 25%.
mining operations. • Exploration permit - 5 pesos per
hectare.
Easement Rights - When mining areas • Mineral agreements and financial or
are so situated that for purposes of more technical assistance agreements - 50
convenient mining operations it is pesos per hectare
necessary to build, construct or install on • Mineral reservation - 100 pesos per
the mining areas or lands owned, occupied hectare
or leased by other persons, such
infrastructure as roads, railroads, mills, 30% of all occupational fees collected from
waste dump sites, tailings ponds, holders of mining rights in onshore mining
warehouses, staging or storage areas and areas shall given to the province
port facilities, tramways, runways, airports,
70% to the municipality in which the onshore
electric transmission, telephone or
mining areas are located.
telegraph lines, dams and their normal
In a chartered city, the full amount shall given
flood and catchment areas, sites for water
to the city concerned.
wells, ditches, canals, new river beds,
pipelines, flumes, cuts, shafts, tunnels, or
mills, the contractor, upon payment of just Penal Provisions
compensation, shall be entitled to enter False Statements - Any person who
and occupy said mining areas or lands. knowingly presents any false application,
declaration, or evidence to the Government or
Entry into Private Lands and publishes or causes to be published any
Concession Areas - Subject to prior prospectus or other information containing
notification, holders of mining rights shall any false statement relating to mines, mining
not be prevented from entry into private operations or mineral agreements, financial or
lands and concession areas by surface technical assistance agreements and permits
owners, occupants, or concessionaires shall, upon conviction, be penalized by a fine
when conducting mining operations of not exceeding 10,000 pesos.
therein: Provided, That any damage done
to the property of the surface owner, Illegal Exploration - Any person undertaking
occupant, or concessionaire as a exploration work without the necessary
consequence of such operations shall be exploration permit shall, upon conviction, be
properly compensated as may be provided penalized by a fine of not exceeding 50,000
for in the implementing rules and pesos.
regulations: Provided, further, That to
guarantee such compensation, the person
Theft of Minerals - Any person extracting
authorized to conduct mining operation
minerals and disposing the same without a
shall, prior thereto, post a bond with the
mining agreement, lease, permit, license, or
regional director based on the type of
steals minerals or ores or the products thereof
properties, the prevailing prices in and
from mines or mills or processing plants shall,
around the area where the mining
upon conviction, be imprisoned from 6 months
operations are to be conducted, with
to 6 years or pay a fine from 10,000 to 20,000
surety or sureties satisfactory to the
pesos or both, at the discretion of the
regional director.
appropriate court.

Panel of Arbitrators (3 members)

Destruction of Mining Structures - Any
• 2 members of the Philippine Bar in good person who willfully destroys or damages
standing structures in or on the mining area or on the
• 1 licensed mining engineer or a mill sites shall, upon conviction, be imprisoned
professional in a related field, and duly for a period not to exceed 5 years and shall, in
designated by the Secretary as addition, pay compensation for the damages
recommended by the Mines and which may have been caused thereby.
Geosciences Bureau Director.
Mines Adjudication Board (3
members)
Mines Arson - Any person who willfully sets
• DENR Secretary - chairman fire to any mineral stockpile, mine or
workings, fittings or a mine, shall be guilty of
arson and shall be punished, upon conviction,
by the appropriate court in accordance with
the provisions of the Revised Penal Code and
shall, in addition, pay compensation for the
damages caused hereby.

Willful Damage to a Mine - Any person who

willfully damages a mine, unlawfully causes
water to run into a mine, or obstructs any
shaft or passage to a mine, or renders
useless, damages or destroys any machine,
appliance, apparatus, rope, chain, tackle, or
any other things used in a mine, shall be
punished, upon conviction, by the appropriate
court, by imprisonment not exceeding a
period of 5 years and shall, in addition, pay
compensation for the damages caused
thereby.

Illegal Obstruction to Permittees or

Contractors - Any person who, without
justifiable cause, prevents or obstructs the
holder of any permit, agreement or lease from
undertaking his mining operations shall be
punished, upon conviction by the appropriate
court, by a fine not exceeding 5,000 pesos or
imprisonment not exceeding 1 year, or both,
at the discretion of the court.

Violation of the Terms and Conditions of

the ECC - Any person who willfully violates or
grossly neglects to abide by the terms and
conditions of the environmental compliance
certificate issued to said person and which
causes environmental damage through
pollution shall suffer the penalty of
imprisonment of 6 months to 6 years or a fine
of 50,000 to 200,000 pesos, or both, at the
discretion of the court.

Illegal Obstruction to Government

Officials - Any person who illegally prevents
or obstructs the Secretary, the Director or any
of their representatives in the performance of
their duties under the provisions of this Act
and of the regulations promulgated hereunder
shall be punished upon conviction, by the
appropriate court, by a fine not exceeding
5,000 or by imprisonment not exceeding 1
year, or both, at the discretion of the court.

Other Violations - Any other violation of this

Act and its implementing rules and regulations
shall constitute an offense punishable with a
fine not exceeding 5,000 pesos.