Question & AnswerQ&A (ADMINISTRATIVE ORDER NO. 2002-35)
The main purpose is to provide guidelines for the management, administration, and regulation of all mining and mineral processing operations within the Diwalwal Mineral Reservation, ensuring environmental protection, social welfare, peace and order, and equitable sharing of mineral resources.
The 1987 Philippine Constitution, Republic Act No. 7942 (Philippine Mining Act of 1995), Executive Order No. 192, and Proclamation No. 297 all provide the basis for DENR's authority over mineral resources in the Diwalwal area.
'Diwalwal Mineral Reservation' refers to the area declared as Mineral Reservation and Environmentally Critical Area pursuant to Proclamation No. 297 dated November 25, 2002, specified by certain geographic coordinates in the Mt. Diwata, Monkayo, Compostela Valley.
The DENR Secretary or the Natural Resources Development Corporation (NRDC) may enter into Service Contracts with mining groups/cooperatives actively mining in the Diwalwal area, based on recommendations from the Mines and Geosciences Bureau (MGB).
The NRDC is responsible for implementing a labor-intensive mine management plan, securing permits and licenses, constructing mineral processing plants and tailings disposal systems, collecting government shares from mineral utilization, establishing environmental and social funds, initiating environmental clean-up, and coordinating with relevant agencies.
A maximum of twenty-five percent (25%) of the Diwalwal Mineral Reservation is allocated for small-scale mining cooperatives, pursuant to R.A. No. 7076, the People's Small-Scale Mining Act of 1991.
An Ore Transport Permit (OTP) is required for the transportation of minerals and mineral products, including tailings containing economically valuable metals. Lack of an OTP may lead to confiscation of the materials by the government.
Only the NRDC is authorized to secure licenses to possess, transport, and use explosives, blasting accessories, and chemicals for mining and mineral processing operations, unless otherwise authorized by the DENR Secretary.
Service Contractors must technically and biologically rehabilitate mined-out and disturbed areas, establish a Mine Rehabilitation Fund deposited in a government bank, and use it for physical and social rehabilitation and research related to mine rehabilitation.
The Mines and Geosciences Bureau (MGB) and Environmental Management Bureau (EMB) may recommend suspension or cancellation of the mining or processing operations or the Service Contract to the DENR Secretary after consultation.
The NRDC may collect up to 20% of the ore produced as government share, which covers excise tax, royalties, management fee of NRDC, social and environmental funds, and payments due to Indigenous Peoples.
The MEC evaluates initial applications for Service Contracts and endorses rightful applicants to the MGB Regional Director. It includes representatives from mining groups, local government, indigenous communities, and NGOs.
The NRDC must submit and implement a programmatic Environmental Protection and Enhancement Program (EPEP) and Social Development and Management Program (SDMP) consistent with DENR regulations, environmental impact assessments, and clearance certificate requirements.
All gold produced must be sold to the Bangko Sentral ng Pilipinas or its authorized representatives at prices competitive with prevailing world market rates, regardless of volume or weight.
The DENR and NRDC shall enter into a Memorandum of Agreement embodying terms and conditions for DENR's direct mining and mineral processing activities in certain Diwalwal areas, including provisions for just compensation to legitimate claimants.