QuestionsQuestions (Republic Act No. 9177)
All mineral deposits in public or private lands within Philippine territory (including under dry lands and submerged lands within territorial waters and the continental shelf/analogue) “belong to the State” inalienably and imprescriptibly. Their administration, disposition, and exploitation are governed by PD 463 and implementing rules, subject to specific exceptions (e.g., quarry resources).
Yes. Ownership or the right to use public or private lands for purposes other than mining does not include ownership of or the right to develop, exploit, or utilize the mineral deposits found in/on/under such lands—except for quarry resources as provided in PD 463.
A qualified person is either (1) a Filipino citizen of legal age and with capacity to contract, or (2) a corporation/partnership registered with the SEC with at least 60% of the capital owned by Filipinos. Only qualified persons may locate mining claims; a prospector may locate for another if duly authorized via a public instrument registered with the mining recorder.
No prospecting or location is allowed (a) in military, mineral, and other reservations except by Government; (b) in lands covered by valid and subsisting mining claims located under previous mining laws; (c) in lands covered by mining claims or leases acquired under PD 463; and (d) near or under specified public works/buildings (e.g., buildings, cemeteries, bridges, highways, waterways, railroads, reservoirs, dams) unless authorized by the Secretary with DP T C C permission.
The Philippine territory and its shelf are divided into meridional blocks/quadrangles of one-half minute (1/2') of latitude and longitude, each containing about 81 hectares more or less. A mining claim generally covers one such block (though a lesser area may be allowed in specific cases).
Recording of the declaration of location gives the claim owner and their successors/assigns the right to occupy, explore, and develop the claim from the date of recording, subject to Section 12 (entry requirements/permissions) and other provisions.
Annual work obligations (before lease contract: P20/ha/calendar year; after lease contract: P100/ha/calendar year; for patentable claims before patent application: at least P250/ha/year). Proof must be filed within 60 days from end of the required year. Failure to file proof for two consecutive years results in forfeiture of all rights to the claim.
Yes. The claim owner/lessee may concentrate annual work obligations on one or more contiguous or geologically related claims in one province if it is shown to the Director that such concentration is most advantageous. Excess expenditures may be carried forward/credited; but if expenditures in a claim are less than required, the difference must be paid to the Bureau of Mines (Mines Special Fund).
Expenses for prospecting, exploration, and development work, including labor, materials/equipment, and survey/testing/lab/pilot plant costs are legitimate. Costs of buildings, machinery, equipment, roadways, or other works count if clearly essential to exploration/development or facilitating extraction.
Failure to file the lease survey application within one year constitutes automatic abandonment of the mining claims, and the lands become open to location by other qualified persons (not the original locator or their heirs/successors/assigns).
Application for lease must be filed within two years from date of recording. Failure to file within that period automatically constitutes absolute abandonment, and the land is open to location by other qualified persons.
If in order, the Director publishes notice once a week for two consecutive weeks in specified newspapers and posts notices for two consecutive weeks. An adverse claim against a lease application must be filed within 15 days after the first date of publication (if not previously investigated/decided under earlier processes). Upon filing of the adverse claim, proceedings are stayed except publication, certain submissions, and temporary permit processing.
A mining lease contract is for a period not exceeding 25 years and renewable for another period not exceeding 25 years (as provided by law). Upon expiration, the operation of the mine may be undertaken by the Government through its agencies or by a qualified independent contractor awarded by public bidding.
It grants the lessee the right to extract all mineral deposits found on or underneath the surface of the mining claims covered, continued vertically downward; to remove, process, and utilize minerals for the lessee’s benefit; and to use the leased lands for purposes specified in the lease—subject to reserved easement and surface disposition rights of the Government.
No. Any law to the contrary notwithstanding, provinces, cities, municipalities, and similar LGUs cannot levy and collect taxes/fees/rentals/royalties/charges of any kind on mines, mining claims, mineral products, or operations/processes/activities connected therewith.
Quarry resources may be exploited only through permits (on privately owned lands) or licenses (on public lands). The private landowner has preferential right to exploit quarry resources found in their land for personal use without needing a permit for extraction/removal. Quarry permits/licenses are applied for and granted upon compliance with regulatory requirements; a quarry license covers up to 100 hectares per province and 1000 hectares nationwide.
Knowingly presenting/causing false applications, declarations, or evidence to the Government or publishing false statements (especially under oath) is punishable (perjury under Revised Penal Code if under oath; otherwise a fine up to P1,000). Intentional overlapping—locating a claim overlapping another valid existing registered claim with knowledge of overlap—is falsification of a public document.