Question & AnswerQ&A (DENR MEMORANDUM CIRCULAR NO. 2007-07)
Small-scale mining operations in the Philippines are governed by Presidential Decree (PD) No. 1899 and Republic Act (RA) No. 7076.
The pertinent rules and regulations of PD No. 1899 apply to small-scale mining operations in areas not declared as PSSMA under RA No. 7076.
SSMPs cover small-scale mining operations in areas not declared as PSSMA, while SSMCs cover operations in PSSMAs declared under RA No. 7076.
An SSMP has a two (2)-year term renewable only once, provided the application for renewal is filed before its expiration and the full term is consumed.
A Qualified Person for PD No. 1899 means a Filipino citizen of legal age and capacity to contract, or a corporation/partnership registered with the SEC, at least 60% owned by Filipino citizens.
Only a Filipino small-scale mining cooperative organized by licensed and registered small-scale miners may apply for an SSMC.
The maximum annual production for metallic minerals shall not exceed 50,000 dry metric tons (DMT) of ore.
The maximum capital investment is PHP 10 Million, covering raw, additional and existing capital including equipment and working capital.
Small-scale mining must rely heavily on manual labor without using explosives or heavy/sophisticated equipment such as excavators, loaders, and drilling machines within the permit area; hauling equipment is allowed only for transport to shipping or market.
They must secure an Environmental Compliance Certificate, submit a Potential Environmental Impact Report and Final Mine Rehabilitation Decommissioning Plan, comply with a Community Development and Management Program, and adhere to small-scale mine safety rules per DAO No. 97-30.