Question & AnswerQ&A (Republic Act No. 740)
The main purpose is to amend certain sections of the Coal Land Act to regulate the disposal, leasing, and utilization of coal-bearing lands in the Philippines, ensuring the proper development and protection of coal resources.
No. Ownership and rights to use land for purposes other than mining do not include ownership or rights to extract or utilize coal found on or under the surface of such lands.
Any person twenty-one years of age or over who is a citizen of the Philippines, or any association, partnership, or corporation organized under Philippine laws with at least 60% capital owned by Filipino citizens.
Coal-bearing lands may be leased in blocks or tracts of not less than fifty hectares and not more than twelve hundred hectares each.
No person or entity may hold coal leases totaling more than twelve hundred hectares in the whole Philippines.
Leases are granted for a period not exceeding twenty-five years, renewable once for another twenty-five years subject to terms and conditions authorized by law at the time of renewal.
Mining coal without a lease or permit is considered theft or qualified theft, punishable under the Revised Penal Code, including paying damages. For corporations, the president or manager is responsible.
Lessee must pay annual rental starting at 2.50 pesos per hectare for the first 10 years and 5 pesos thereafter, and royalties not less than 10 centavos per ton on coal extracted, payable upon removal from the site. Rentals may be credited against royalties.
They must give written authority for leasing; if refused, compensation terms must be agreed upon or determined by court. Also, if holding Torrens title, they are entitled to 5% of royalties from coal extracted on their land.
Initially, the Director of Mines resolves disputes. Their decision may be appealed to the Secretary of Agriculture and Natural Resources within 30 days, and finally to competent courts if parties disagree.
No, coal leases cannot be assigned or sublet except with the consent of the Secretary of Agriculture and Natural Resources, and only to qualified persons or entities.
An applicant may hold leases on not more than six separate blocks or tracts in any one province.
Yes, with approval from the Secretary of Agriculture and Natural Resources, lessees can consolidate contiguous leases to a total area not exceeding twelve hundred hectares, provided all obligations to the government have been met.
The Secretary may issue up to three limited licenses or commercial revocable permits for tracts not exceeding four hectares each for up to ten years, with royalty of fifty centavos per ton.