QuestionsQuestions (DENR ADMINISTRATIVE ORDER NO. 96-40, S. 1996)
It is titled “Revised Implementing Rules and Regulations of R.A. No. 7942, otherwise known as the Philippine Mining Act of 1995.” It is issued pursuant to Section 8 of R.A. No. 7942.
All mineral resources in public and private lands within the Philippines’ territory and exclusive economic zone are owned by the State. The State is responsible to promote rational exploration, development, utilization, and conservation through combined government and private efforts, while safeguarding the environment and protecting affected communities.
Sustainable mining requires: (1) mining as a temporary land use leading to optimum post-mining land use through progressive engineered rehabilitation; (2) guidance by current best environmental management practices to reduce impacts and protect the environment; (3) wealth accruing to government and communities leading to other wealth-generating and environment-responsible opportunities; and similarly emphasis on economic/environmental balance and conservation through recycling and operational efficiency.
Examples: (1) to promote rational exploration, development, utilization and conservation of mineral resources under full State control and supervision; (2) to enhance mineral resources’ contribution to economic recovery and national development with environmental and community protection; (3) to encourage investments in exploration and commercial mining; (4) to promote equitable access and fair sharing of benefits/costs; (5) to enable government and investor to recover their share to attain sustainable development.
A “Qualified Person” is any Filipino citizen of legal age with capacity to contract, or a corporation/partnership/association/cooperative organized for mining with technical and financial capability, duly registered, and with at least 60% of capital owned by Filipino citizens. A legally organized foreign-owned corporation is deemed a Qualified Person for purposes only of Exploration Permit, FTAA, or Mineral Processing Permit.
It means searching or prospecting for mineral resources by geological, geochemical and/or geophysical surveys, remote sensing, test pitting, trenching, drilling, shaft sinking, tunneling or other means to determine existence, extent, quality and quantity and feasibility of mining for profit.
Open areas include: (1) public/private lands not covered by valid and existing mining rights and mining applications; (2) lands covered by expired/abandoned/canceled mining/quarrying rights; (3) Mineral Reservations; and (4) timber or forest lands as defined in existing laws.
Examples: (1) areas covered by valid and existing mining rights and applications (with the stated exceptions); (2) old growth/virgin forests, proclaimed watershed forest reserves, wilderness areas, mangrove forests, national parks, and NIPAS areas and those prohibited under law/issuances; (3) built-up areas and critical watersheds when excluded by the Secretary based on assessment and with local Sanggunian ordinances specifying boundaries; (4) areas expressly prohibited by law.
They may be opened subject to conditions such as: (1) military and other government reservations upon prior written clearance by the jurisdiction agency; (2) areas near/under public or private buildings, cemeteries, archaeological/historic sites, bridges, highways, waterways, railroads, reservoirs, dams or infrastructure upon written consent of concerned government agency or private entity, subject to Bureau technical evaluation and validation; (3) other conditions listed in Section 15(b), such as consent of FTAA applicants for certain quarrying-related applications, etc.
Mineral Agreements, FTAAs, or mining permits shall not be granted in areas covered by CADC/CALC or areas actually occupied by Indigenous Cultural Communities under time immemorial possession, except with their prior consent.
Prior consent refers to prior informed consent obtained, as far as practicable, in accordance with the customary laws of the concerned ICC, with minimum requirements of public notice through various media and sector consultation/community assembly with at least one month notice before the assembly. The process must be free from fraud, external influence, and manipulations.
The parties agree on royalty payment for the concerned ICC(s), which may not be less than 1% of the gross output. Expenses for community development may be credited to or charged against said royalty.
The Department resolves the disagreement within three (3) months. The royalty forms part of a Trust Fund for the ICC’s socioeconomic well-being and is to be managed and utilized by the ICCs.
The term is two (2) years from date of issuance, renewable for like periods, but not to exceed a total term of six (6) years.
The text states that the Permittee shall annually relinquish at least 20% of the permit area during the first two (2) years of the exp[oration permit]. (The excerpt is truncated, but the key figure provided is at least 20% annually during the first two years.)
At least: (1) location map/sketch plan with coordinates/meridional blocks/boundaries on NAMRIA map signed/sealed by a deputized geodetic engineer; (2) two-year Exploration Work Program signed/sealed by a licensed mining engineer or geologist; (3) Environmental Work Program; (4) proof of technical competence (CVs/track record of technical personnel); (5) proof of financial capability (e.g., statement of assets/liabilities for individuals; latest audited FS/credit lines/bank guarantees for entities); and other items like articles of incorporation/by-laws for corporations, declaration of total area covered by approved/pending permits, and (when applicable) Environmental/Community Relations Records.