Question & AnswerQ&A (Republic Act No. 7076)
The title of Republic Act No. 7076 is the "People's Small-scale Mining Act of 1991."
The policy aims to promote, develop, protect, and rationalize viable small-scale mining activities to generate employment opportunities and provide equitable sharing of the nation's wealth and natural resources.
Small-scale mining refers to mining activities relying heavily on manual labor using simple implements and methods, without the use of explosives or heavy mining equipment.
Small-scale miners are Filipino citizens who, individually or as cooperatives, are licensed by the Department of Environment and Natural Resources to extract minerals or ore-bearing materials under a contract.
It is a co-production, joint venture, or mineral production sharing agreement between the State and a small-scale mining contractor for the small-scale use of a mineral land plot.
The program includes identification and reservation of small-scale mining areas, recognition of prior rights, encouragement of cooperatives, technical and financial assistance, processing and marketing help, regulation for growth and productivity, and efficient government revenue collection.
Only small-scale miners who have organized themselves and registered either individually or as cooperatives with the appropriate government agency can be awarded a contract, with priority to local residents.
The maximum area shall not exceed twenty hectares per contractor.
The holder must undertake mining per approved plans, comply with safety and environmental laws, pay taxes and royalties, file monthly reports, ensure safety, and comply with existing mining rights obligations.
Noncompliance can lead to contract cancellation, ejection from mining areas, and fines ranging from P20,000 to P100,000. Nonpayment of fines renders the contractor ineligible for future contracts.
Ancestral lands cannot be declared as small-scale mining areas without prior consent of the cultural communities, and these communities are given priority for mining contracts if such lands are declared.
Claimowners are exempt from certain fees, can access the contract area with approval, and receive royalties: 1.5% of metallic mineral output or 1% of nonmetallic, subject to compliance conditions.
Private landowners can oppose the declaration, and if declared, they are entitled to actual damages and royalties not exceeding 1% of the mineral gross value.
The small-scale mining contractor owns the mill tailings and may sell or process them, but the claimowner has a preemptive right to purchase at market price if sold.
All gold produced must be sold to the Central Bank or its authorized representatives at competitive world market prices, with buying stations established in gold-rush areas.
The fund finances information dissemination, training on safety, health, environmental protection, mine rescue teams, emergency equipment, and assistance to miners affected by accidents or fortuitous events.
The Board implements the program, declares and segregates mining areas, awards contracts, formulates regulations, settles disputes, and performs necessary functions for the Act's objectives.
The Board is chaired by the DENR representative and includes representatives of the governor or mayor, small-scale mining, big-scale mining, and an environmental NGO member.
Violators face imprisonment from six months to six years plus confiscation and seizure of equipment, tools, and instruments used in violation.
The Act took effect fifteen (15) days after its publication in the Official Gazette or a national newspaper of general circulation.