Title
New system for mineral resource management
Law
Republic Act No. 7942
Decision Date
Mar 3, 1995
The Philippine Mining Act of 1995 establishes the ownership and management of mineral resources by the State, while also outlining the procedures and requirements for obtaining exploration permits and mineral agreements, and regulating various mining activities to ensure environmental protection and community development.

Q&A (Republic Act No. 7942)

The title is the Philippine Mining Act of 1995.

The State owns all mineral resources in public and private lands within the territory and exclusive economic zone of the Republic of the Philippines.

The State is responsible to promote rational exploration, development, utilization, and conservation of mineral resources through combined efforts of government and private sector, safeguarding the environment and protecting the rights of affected communities.

Ancestral lands refer to lands exclusively and actually possessed, occupied, or utilized by indigenous cultural communities or their ancestors in accordance with their customs and traditions since time immemorial, as defined and delineated by law.

An Exploration Permit grants the right to conduct exploration for all minerals in specified areas and is granted to qualified persons by the Mines and Geosciences Bureau.

A qualified individual may hold a maximum of twenty (20) meridional blocks onshore in any one province under an Exploration Permit.

The modes include Mineral Production Sharing Agreement, Co-production Agreement, and Joint Venture Agreement.

Yes, a foreign-owned or controlled corporation may be granted a mineral processing permit.

Applications are disallowed in military and other government reservations without clearance, near or under certain public/private structures without consent, areas covered by valid mining rights, areas prohibited by law, areas covered by small-scale miners without their consent, and environmentally protected areas such as old growth forests, national parks, and NIPAS-registered areas.

Persons convicted of theft of minerals may be imprisoned from six months to six years, fined from ten thousand to twenty thousand pesos, or both, and be liable to pay damages and compensation; in associations or corporations, the president and directors are responsible.

The government's share shall be the excise tax on mineral products as provided in Republic Act No. 7729.

Mineral agreements have a term not exceeding twenty-five years, renewable for another term not exceeding twenty-five years under the same terms and conditions.

The Mines and Geosciences Bureau grants exploration permits, while the Secretary of the Department of Environment and Natural Resources enters into mineral agreements; financial or technical assistance agreements must be executed and approved by the President.

No ancestral land shall be opened for mining operations without the prior consent of the indigenous cultural community concerned; their rights are recognized and protected by the State.

A corporation may hold up to five hundred (500) meridional blocks offshore, with potential for larger areas in the exclusive economic zone as determined by the Secretary.

Grounds include failure to comply with Act or regulations, violation of terms and conditions, non-payment of taxes and fees for two consecutive years, falsehood or omission of facts, and failure to abide by terms of tax incentives.

It is a contract involving financial or technical assistance for large-scale exploration, development, and utilization of mineral resources, entered directly with the Government through the Department.

The Panel has exclusive original jurisdiction to hear and decide disputes involving mining rights, agreements, surface owners, and pending disputes before the Bureau and the Department within thirty working days after case submission.

To be used for physical and social rehabilitation of areas and communities affected by mining activities and for research on rehabilitation; failure to fulfill obligations can result in suspension or closure of mining activities.

Qualified foreigners may be employed with government clearances for a period not exceeding five years or the project's payback period; foreigners in managerial positions must present qualifications, pass licensure, or be approved by the Director with reciprocal privileges applied.


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