Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1385)
Minerals means all naturally occurring inorganic substances in solid, liquid, or any intermediate state. It includes soil which supports organic life, sand and gravel, guano, coal, petroleum, geothermal energy, and natural gas, but these are governed by special laws or regulations promulgated by the Secretary.
The President, upon recommendation of the Secretary and based on the report submitted by the Director, may set aside and establish an area of the public domain as a mineral reservation, prescribe terms and conditions for its disposition and operation, alter or modify boundaries, or revert any mineral reservation to the public domain without prejudice to any prior subsisting rights.
Yes, if government agencies cannot undertake the prospecting, exploration, and exploitation, qualified persons may be permitted under rules and regulations promulgated by the Secretary, provided they are given priority if they undertake such activities. Also, a special permit may be issued for extraction of minerals in limited quantities.
The board manages mineral reservations established by the President, and mineral reservations are closed to mining location from the time of their establishment under the board's jurisdiction.
A qualified person may locate mining claims within private lands only if authorized by the landowner through a public instrument duly registered with the Mines Regional Officer before registration of such claims.
No, except when proper notice has been served upon the licensee of the forest concession.
Areas closed include military or other government reservations without authorization, mineral reservations, lands covered by valid and subsisting claims or leases under previous laws, and near or under buildings, cemeteries, bridges, highways, waterways, railroads, reservoirs, dams, or other public or private works unless authorized by concerned agencies.
Before the lease contract is granted, a claimowner/lessee must perform work obligations valued at not less than P20.00 per hectare per year; after lease contract grant, not less than P100.00 per hectare per year. Failure to comply for two consecutive years constitutes automatic abandonment.
Unauthorized extraction, removal, or disposal of minerals without a lease or permit shall be considered theft, punishable by imprisonment of six months to six years or fines from P100.00 to P10,000.00 or both, plus compensation for minerals, royalties, and damages.
A mining lease contract is valid for a period not exceeding 25 years and is renewable once for another period not exceeding 25 years on terms provided by law. After renewal, operation may be undertaken by government or qualified contractors by public bidding.
The lease grants rights to extract mineral deposits found on or beneath the surface of the claims, process and utilize the minerals, and use the lands for specified purposes, subject to government rights to grant easements and dispose of unused surface areas.
Service contracts with foreign or domestic contractors must limit fees to 40% of net proceeds, specify minimum expenditures beyond work obligations, include repayment schemes, prohibit title acquisition by foreign entities, require payment for unspent approved work, specify cancellation conditions for breaches, favor Filipino employment, limit alien personnel to specialized roles, and require training for understudies.
The declaration must cover the meridional block or fraction thereof constituting the claim, be filed with the Mining Regional Officer in a prescribed form, and is ministerially recorded upon payment of fees and compliance with regulations.
The claimowner may abandon all or part of the claim by filing an affidavit of abandonment. Rights cease upon recording, partial abandonment requires the retained area to be contiguous and surveyed within one year. The abandoned area cannot be relocated by original or successor locators.