Title
Qualified Person Determination for Mining Rights
Law
Denr Memorandum Order No. 99-10
Decision Date
Mar 10, 1999
The DENR Memorandum Order No. 10-99 establishes guidelines for determining Qualified Persons for mining applications in the Philippines, ensuring equitable distribution of mineral resources while protecting the environment and community rights. The Order sets limits on the maximum areas that a Qualified Person can hold or be granted under different mining permits and agreements.

Questions (DENR MEMORANDUM ORDER NO. 99-10)

It declares the policy to promote the rational and equitable distribution, exploration, development, utilization, and conservation of mineral resources through combined government and private efforts, while effectively safeguarding the environment and protecting rights of affected communities.

A juridical entity organized/authorized for mining, duly registered in accordance with law, with technical and financial capability to undertake mineral resource development, and with at least 60% of capital owned by Filipino citizens (with a proviso on legally organized foreign-owned corporations being deemed Qualified Persons for limited purposes).

A foreign-owned corporation is one where less than 50% of the capital is owned by Filipino citizens. It is deemed a Qualified Person only for purposes of granting an Exploration Permit, FTAA, or Mineral Processing Permit (as stated).

To implement the Mining Act’s intent to limit the areas a single Qualified Person may hold or be granted, by determining whether related applicants should be treated as one for area limitations.

Two hundred (200) blocks or approximately sixteen thousand two hundred (16,200) hectares.

Four hundred (400) blocks or approximately thirty-two thousand four hundred (32,400) hectares.

One thousand (1,000) blocks or approximately eighty-one thousand (81,000) hectares.

One hundred (100) blocks or approximately eight thousand one hundred (8,100) hectares.

Twenty (20) blocks or approximately one thousand six hundred twenty (1,620) hectares.

For corporations/partnerships/associations/cooperatives: five hundred (500) blocks or approximately forty thousand five hundred (40,500) hectares. For the Exclusive Economic Zone, a larger area may be determined by the Secretary upon the recommendation of the Director.

Mining/quarry areas under operating agreements between the mining applicant/contractor and a claim owner/leasee/permittee/licensee entered into under P.D. No. 463 are not included in the determination of total area applied for or held under the Mineral Agreement.

Onshore: 1,000 meridional blocks (~81,000 hectares); Offshore: 4,000 meridional blocks (~324,000 hectares); Combination: 1,000 meridional blocks onshore and 4,000 meridional blocks offshore.

For a juridical person duly registered in the Philippines, it is deemed the same if more than seventy percent (70%) of their authorized capital stock is held by the same stockholders.

An Affidavit (Annex “A”) declaring: (1) the list of all mining applications filed and permits/contracts granted, including hectarage and location disaggregated per province; and (2) the list of other applicants/contractors/permittees where more than 70% of the authorized capital stock is held by the applicant’s stockholders, including hectarage and location disaggregated per province.

For EP, MA, and FTAA (as stated): minimum authorized capital stock of PhP 10,000,000.00 and minimum paid-up capital of PhP 2,500,000.00. For FTAA specifically, minimum authorized capital stock of US$ 4,000,000.00 (or peso equivalent), after approval by the President and prior to registration of the FTAA as provided in the IRR.

Submission of curricula vitae and track records of the technical personnel who will undertake activities in the submitted Work Programs, including environmental management and compliance with the environmental work program/protection and enhancement program, as required by the IRR.

No. It is merely a procedural requirement in evaluation; it does not constitute approval or grant. The application remains subject to further processing and evaluation and to other requirements under the Act, IRR, and other laws/rules.

They must comply within nine (9) months from effectivity, by submitting a letter notifying the Bureau/Regional Office of intent to comply. Failure to comply causes denial/rejection of the EP/MA/FTAA application(s) as deemed appropriate by the Bureau/Regional Office.


Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster, building context before diving into full texts. AI-powered analysis, always verify critical details.