Amendments to Mineral Resources Development Decree

"Minerals" include naturally occurring inorganic substances in solid, liquid, or intermediate states including soil supporting organic life, sand, gravel, guano, coal, petroleum, geothermal energy, and natural gas subject to special laws.
"Lessee" defined as a qualified person issued a mining lease contract by the Secretary.
"Claimowner" means a qualified person who has registered mining claims under previous mining laws or the Decree.

The President, upon recommendation of the Secretary, may establish or modify mineral reservations on public domain lands.
Mineral reservations can be reverted to public domain without affecting prior rights.
Lands reserved for purposes other than mining can be converted to mineral reservations if mineral value is higher.

Government agencies primarily authorized to conduct prospecting, exploration, and exploitation in reserved lands.
Qualified persons may be allowed these rights if government agencies cannot undertake operations.
Priority given to parties who carried out prospecting and exploration.
Special permits may be issued for limited extraction by exploration permittees.

Qualified persons can locate mining claims in public and private lands.
Locating claims for another person requires authorization by a duly registered public instrument.

Qualified persons cannot be prevented by surface owners or occupants from entering lands for mining activities.
Prospecting inside forest concessions requires proper notice to the licensee.

Prohibitions on prospecting and exploration in military/government reservations unless authorized, mineral reservations, lands under valid mining claims or leases, and near or under specific public/private infrastructures unless authorized.
Secretary to issue detailed implementing regulations.

Filing of declaration of location of mining claims with Mining Regional Officer is required.
Recording of declaration is ministerial upon compliance with fees and formalities.

Claimowners may partially or totally abandon claims before lease grant by filing an affidavit.
Rights cease upon recording of abandonment.
No relocation allowed of abandoned areas by original or successors.

Creation of Mines Regional Recorder positions for proper recording and documentation.
Retention and establishment of mining regions with possible creation of mineral districts.

Claimowners/lessees shall undertake annual work obligations valued at P20 per hectare before lease and P100 after.
Work obligations start from recording date or lease application filing.
Concentration of annual work on contiguous/geologically related claims allowed with proper justification.
Excess expenditures may be credited; deficient expenditures must be paid to Bureau of Mines.

Submission of affidavit, expenditure statement, and technical report within 60 days after year-end required.
Failure to comply for two consecutive years results in automatic abandonment.
Field verification showing no work results in loss of rights despite submission.

Geodetic engineers must submit survey returns within one year from order, or face forfeiture of surety bond and cancellation.
No extensions except for force majeure.

Issuance of temporary permits valid for one year, renewable once, pending mining lease contract granting.
Special permits may be granted for limited quantity mineral extraction subject to regulations.

Adverse claims must be filed within 15 days after notice publication; absence constitutes conclusive presumption of no adverse claims.
Secretary to approve mining lease contracts for up to 25 years renewable once.
After renewal expiry, mine operation may be undertaken by the government or awarded to highest qualified bidder.
Lessee has right to equal highest bid.

Mining leases on private lands require proof of compliance with specific provisions of Presidential Decree No. 512.

Lessee and successors entitled to extract, remove, process minerals under lease area and use lands for specified purposes.
Secretary reserves right to grant easements for access and operation of other leases.
Government may lease/dispose of surface lands not needed for mineral extraction.
Lessee may enter into service contracts with qualified contractors subject to regulations and approval.

Foreign service contractors limited to 40% of net proceeds as service fee.
Obligations regarding financing, technical and management services detailed.
Repayment schemes for service fees including foreign exchange regulation and interest rate limitations.
Foreign entity prohibited from acquiring title/interest.
Penalties for failure to comply include cancellation.
Preference for Filipino employment; alien employees limited and subject to approval.
Mandatory training program for foreign technologists.

Lessee must remove all improvements except roads and bridges within one year of lease termination or abandonment.
Unremoved improvements become government property.

Appeals from decisions of the Director may be made to the Secretary within five days.
Further appeals to the President within five days; the President's decision is final.
Decisions of Director and Secretary are immediately executory unless the President orders otherwise.
Provision for deposit in escrow to protect interests in contested mining claims.

Unauthorized extraction or disposition of minerals constitutes theft.
Penalties include imprisonment (6 months to 6 years), fines (P100 to P10,000), and compensation.

Appraisal or evaluation of mining claims and improvements for partnerships or corporate formation to be made by the Director.
Claims without improvements not accepted as assets without appraisal by the Director.