QuestionsQuestions (Republic Act No. 7076)
RA 7076 declares the State policy to promote, develop, protect, and rationalize viable small-scale mining to generate employment opportunities and ensure an equitable sharing of the nation’s wealth and natural resources, while giving due regard to existing rights.
Small-scale mining relies heavily on manual labor using simple implements and methods and does not use explosives or heavy mining equipment.
Small-scale miners are Filipino citizens who individually or with other Filipino citizens voluntarily form a cooperative duly licensed by the DENR to engage in extraction/removal of 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 utilization of a plot of mineral land.
An active mining area is one under actual exploration, development, exploitation, or commercial production as determined by the Secretary after field investigation/verification, including contiguous and geologically related areas belonging to the same claim owner and/or under contract with an operator, but not exceeding the maximum area allowed by law.
The Board determines reasonable size and shape following the meridional block system but cannot exceed 20 hectares per contractor; tunnel/adit length or depth must not exceed that recommended by the Director, considering: cooperative membership/capitalization, mineralized area, quantity of deposits, miners’ safety, environmental impact, and other related circumstances.
Public lands not subject to any existing right; public lands covered by existing mining rights that are not active mining areas; and private lands subject to certain rights and conditions (excluding substantial improvements, certain bona fide uses, cemeteries/burial sites and nearby areas, etc.), as stated in the law.
No, not without prior consent of the cultural communities concerned. If declared, members of the communities are given priority in awarding small-scale mining contracts.
Award may be given only to small-scale miners who voluntarily organized and duly registered as an individual miner or cooperative.
Only one (1) people’s small-scale mining contract may be awarded at any one time to a small-scale mining contractor.
The contractor must start mining operations within one (1) year from the date of award.
Priority is given to small-scale miners residing in the province or city where the small-scale mining area is located.
The contractor must undertake mining activities only in accordance with a mining plan duly approved by the Board.
Examples include: (1) comply with Mines and Geosciences Bureau and small-scale mining safety rules; (2) comply with obligations to holders of existing mining rights; (3) pay taxes, royalties, or government production share as provided by law; (4) comply with environmental protection rules (tree-cutting, mineral-processing, pollution control); (5) file, under oath, a detailed monthly production and financial report; (6) assume responsibility for worker safety.
Noncompliance and abandonment constitute grounds for cancellation of the contract and ejectment from the people’s small-scale mining area, with possible administrative fines under the Act.
It is a fund created from 15% of the national government’s share of the internal revenue tax or production share due the government, primarily for information dissemination and training on safety/health/environment, establishment of mine rescue and recovery teams, and assistance for miners affected by accidents/fortuitous events.
The small-scale mining contractor owns all mill tailings produced from the contract area and may sell them or have them processed in any custom mill in the area, subject to the claimowner’s preemptive right to purchase at prevailing market price if the contractor sells.
All gold produced by small-scale miners must be sold to the Central Bank or its duly authorized representatives, which must buy at prices competitive with world market prices.
Violations are penalized with imprisonment of not less than six (6) months nor more than six (6) years and include confiscation/seizure of equipment, tools, and instruments.