Title
Amendments to PD 463 on Mining Operations
Law
Presidential Decree No. 1902
Decision Date
Feb 7, 1984
Presidential Decree No. 1902 amends certain sections of Presidential Decree No. 463 to simplify the process of obtaining clearances and permits for mining operations in the Philippines, while also promoting early exploitation of concessions.
A

Annual Work Obligations

  • Claimowners/lessees must submit proof of compliance with annual work obligations via affidavit, statement of expenditures, and technical report to the Mines Regional Officer within 120 days after year-end.
  • Failure to comply for two consecutive years results in automatic abandonment of the mining claim.
  • If verification shows no actual work done despite submissions, rights to the claim are lost automatically.
  • Extensions may be granted by the Director in cases of unstable peace and order conditions or mining conflicts.

Mines Temporary Permit

  • Granted pending issuance of a lease contract upon proper application and compliance with obligations.
  • Requires posting of surety bond approved by the Director.
  • Valid initially for one year, renewable up to a maximum of three years.
  • Director may issue special permits for removal of minerals in limited quantities, subject to Minister's approval and regulatory rules.

Program of Work Requirements

  • Upon application for mining lease, claimant must undertake exploration, development, or mining following an approved program.
  • Mining area must reach actual commercial production within five years from lease grant, or claims shall be automatically abandoned.
  • Program of work spans five years, with annual work programs submitted for Director's approval at the start of each calendar year.
  • Deviations from the approved program require Director's consent.
  • Existing leaseholders must submit revised or updated programs within six months of the Decree's approval.

Employment of Filipinos

  • Lessees must prioritize qualified Philippine citizens in all milling employment types unless technical/specialized work justifies otherwise.
  • Lessees must maintain effective training and advancement programs for Filipino employees.
  • Foreign employees may be hired for specialized technical work with Director's approval but employment shall not exceed five years.
  • Foreigners cannot hold positions such as mine manager or equivalent without passing government licensing exams or special Director approval, limited to three years.

Repeal and Effectivity

  • All conflicting laws, decrees, executive orders, rules, and regulations are amended, modified, or repealed accordingly.
  • The Decree takes immediate effect upon promulgation.

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