Definitions
- Key terms are defined including:
- Act: R.A. No. 7942.
- Annual Social Development and Management Program: Yearly community development activities based on an approved five-year SDMP.
- Bureau: Mines and Geosciences Bureau's Central Office.
- Contractor: Qualified person party to Mineral Agreement or FTAA.
- Direct Mining and Milling Costs: Expenses directly incurred in ore extraction and processing.
- Host and Neighboring Communities: Communities outside and adjacent to mine camps affected by mining operations.
- Permit Holder, Lessee, Mining Permits, Mineral Processing Permit, Mine Camp, Regional Office are also defined.
Obligations for Community Development and Technology (Section 134)
- Contractor/Permit Holder/Lessee must assist host and neighboring communities per approved SDMP.
- They must promote development of mining technology and manpower training.
- A minimum of 1% of direct mining and milling costs must be allocated annually for these purposes:
- 90% for social development programs.
- 10% for mining technology and manpower training.
- Annual sworn statements on costs must be submitted to the Bureau and Regional Office.
- The 1% royalty for Indigenous Cultural Communities can include this allotment.
Credited Activities for SDMP Implementation (Section 135)
- Activities enhancing community development credited to the 90% portion include:
- Infrastructure development and maintenance (schools, hospitals, roads, utilities, housing, and training facilities).
- Livelihood industries and reforestation.
- Use of mine camp facilities by host/neighboring communities, prorated costs.
- Other Director-approved activities.
- Expenditures for contractor employees’ programs excluded.
- Activities credited to 10% include:
- Advanced research and studies by qualified researchers.
- Support for scholars, trainees in mining/geosciences.
- Equipment and capital aid to research and educational institutions.
- Information, education, and communication campaigns.
- Other Director-approved academic and research activities.
Developmental Responsibilities of Contractor/Permit Holder/Lessee (Section 136)
- Coordinate with authorities to develop host and neighboring community plans.
- Facilitate self-sustaining income-generating activities, preserving traditional livelihoods.
- Give hiring preference to qualified Filipino citizens from host and neighboring communities.
- Organize skill enhancement if needed.
- Commit to skills reformation and entrepreneurship development as part of mine closure.
Social Development and Management Program (Section 136-A)
- SDMP is a comprehensive five-year plan developed in partnership with host and neighboring communities.
- Must align with social development and mining technology sections.
- Submitted every five years for Bureau or Regional Office approval.
- Director to prescribe detailed implementation guidelines.
Processing and Approval Procedures for SDMP (Section 136-B)
- Contractors/Lessees submit initial SDMP to Regional Office within 90 days for screening; possible additional requirements.
- Regional Office endorses SDMP to the Bureau for final evaluation.
- Bureau may engage experts; Contractor/Lessee bears review expenses.
- Contractor/Lessee presents SDMP highlights for Bureau deliberation.
- Bureau acts within 20 days post-submission.
- Permit Holders submit SDMP to Regional Office with similar review and presentation.
- Approved SDMP copies provided to Local Government Units before mining operations start.
- Annual SDMP based on approved plan submitted 30 days before each calendar year.
Community Relations Officer (Section 136-C)
- Contractors/Permit Holders/Lessees must have a Community Relations Officer (CRO) in mine structure.
- CRO reports to Resident/Plant Manager.
- CRO must have a social science degree or relevant experience in community development.
Monitoring and Auditing (Section 136-D)
- Regional Office conducts periodic monitoring and submits reports to the Bureau.
- CRO and community representatives perform joint internal monitoring.
- Monitoring results shared with Regional Office and Bureau.
Penalties for Non-Compliance (Section 136-E)
- Operating without approved SDMP:
- First offense: Fine up to ₱5,000.
- Subsequent offenses: Fine up to ₱5,000 plus suspension of operations.
General Provisions
- Separability clause ensures other provisions remain valid if any part is invalidated.
- All inconsistent orders or regulations are repealed or modified.
- Secretary empowered to amend rules ensuring effective enforcement and implementation.
- Rules effective 15 days after publication in a newspaper of general circulation.