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NATRES (NOVEMBER 10)

The document outlines regulations for the exploration, development, and utilization of mineral resources, emphasizing the need for consent from indigenous communities and detailing areas closed to mining applications. It describes the process for obtaining exploration permits, including duration, maximum area limits, and requirements for affected parties. Additionally, it covers mineral agreements with the government, including production sharing and joint venture agreements, along with stipulations for area limits and transfer of rights.

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5 views

NATRES (NOVEMBER 10)

The document outlines regulations for the exploration, development, and utilization of mineral resources, emphasizing the need for consent from indigenous communities and detailing areas closed to mining applications. It describes the process for obtaining exploration permits, including duration, maximum area limits, and requirements for affected parties. Additionally, it covers mineral agreements with the government, including production sharing and joint venture agreements, along with stipulations for area limits and transfer of rights.

Uploaded by

razz.von.patting
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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CHAPTER 3 – SCOPE OF APPLICATION

 Governing exploration, development, utilization and


processing of all mineral resources
 NO ancestral land shall be opened for mining-operations
without consent indigenous cultural community concerned
 Agreement with any indigenous cultural community,
royalty payment will be decided by the parties and will
form part of a trust fund
 All mineral resources in public or private lands including
timber and forest lands shall be open to mineral agreements
or FTAA applications
 These areas are closed to mining applications:
 Military/Government reservations
 Under/Near public/private buildings, cemeteries,
bridges, highways, waterways, railroads,
reservoirs, dams and public/private works with
consent of government or agency concerned
 Areas covered by valid and existing mining rights
 Areas expressly prohibited by law
 Areas covered by small-scale miners unless with
consent and with royalty payment
 Old growth or virgin forests, watershed forest
reserved, wilderness areas, mangrove forests,
mossy forests, national parks provincial/municipal
forests, parks, greenbelts, game refuge and bird
sanctuaries and NIPAS protected areas

CHAPTER 4 – EXPLORATION PERMIT


 Exploration permit grants the right to conduct exploration
for all minerals in a specified area
 EP has the duration of 2 years subject to annual review and
relinquishment or renewal
 Maximum area for a qualified person to hold at one time:
o Onshore, in any 1 province
 Individuals – 20 blocks
 Partnerships, Corporations, Associations – 200
blocks
o Onshore, in the entire Philippines
 Individuals – 40 blocks
 Partnerships, Corporations, Associations – 400
blocks
o Offshore, beyond 500 meters from the mean low tide
level
 Individuals -100 blocks
 Partnerships, Corporations, Associations – 1000
blocks
 EP shall grant entrance, occupation, exploration of the area
provided that if private or other parties are affected, the
permittee shall discuss with the affected parties the extent,
necessity, and manner of entry, occupation and exploration
 An exploration permit may be transferred to an assigned
qualified person subject to approval by the Secretary upon
recommendation by the Director

CHAPTER 5 – MINERAL AGREEMENTS


 Mineral production sharing agreement is with the
Government whereby they allow the contractor exclusive
right to conduct mining operations within the area and
shares with the Gov’t gross output, but the contractor must
provide, financing, technology, management, and personnel
needed for the job
 Co-production agreement with the Government when the
latter provides inputs to mining operations other than
mineral resource
 Joint venture agreement with a joint-venture company
which is organized by the Gov’t with both parties having
equity shares, aside from earnings in equity the Gov’t is
entitled to shares in gross output
 A contractor can convert his agreement into any of the
modes of mineral agreements or financial or technical
assistance agreement subject to approval
 Any qualified person may enter into any of the 3 modes of
mineral agreement with the government for exploration,
development and utilization of mineral resources provided
that the applicant has a satisfactory environmental track
record and had been in the mining industry for any length
of time, which will be determined by the Bureau.
 Maximum area for a qualified person to hold at any time:
o Onshore, in any 1 province
 Individuals – 10 blocks
 Partnerships, Corporations, Associations – 100
blocks
o Onshore, in the entire Philippines
 Individuals – 20 blocks
 Partnerships, Corporations, Associations – 200
blocks
o Offshore, beyond 500 meters from the mean low tide
level
 Individuals -50 blocks
 Partnerships, Corporations, Associations – 500
blocks
 Exclusive Economic Zone – Larger area to be
determined
 The maximum area provided shall not include mining/quarry
areas under operating agreements between a contractor
and an owner/lessee/permittee/licensee entered into under
P.D. 463 (Mineral Resources Development Decree of 1974)
 Proposed mineral agreements shall be filed in the region
where the area of interest is located, except in mineral
reservations which shall be filed with the Bureau
 Assignment or transfer of rights and obligations under any
mineral agreement (except financial or technical assistance
agreement) shall be subject to approval, the assignment or
transfer shall be deemed automatically approved if not
acted upon within 30 days from the official receipt unless
illegal or unconstitutional
 Application for cancellation of the mineral agreement due to
reasons made by the contractor in which in his opinion, that
continuing mining operations are no longer feasible or
viable, a 30-day period of consideration is made by the
Secretary provided that the contractor has met all
financial, fiscal and legal obligations.
 Mineral agreements shall have a term not exceeding 25
years and renewable for another 25 years under the same
terms and conditions without prejudice to changes made by
the parties

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