Guidelines for Small-Scale Mining Implementation

Small-scale mining outside PSSMA requires Small-Scale Mining Permits (SSMPs) under PD No. 1899.
Mining in declared PSSMA must have Small-Scale Mining Contracts (SSMCs) per RA No. 7076.
Existing SSMPs within newly declared PSSMA are recognized until revoked or terminated for cause.
SSMP holders may opt to convert to SSMCs following DAO No. 34 (1997).

SSMPs have a term of two (2) years renewable only once.
Renewal applications must be filed before permit expiration.
SSMP or SSMC renewals require consumption of the full two-year term before application.

Under PD No. 1899, a Qualified Person includes Filipino citizens of legal age and capacity or corporations/partnerships at least 60% Filipino-owned and SEC-registered.
RA No. 7076 allows only Filipino small-scale mining cooperatives composed of licensed and registered small-scale miners to apply.

Metallic minerals: maximum 50,000 dry metric tons (DMT) of ore annually.
Non-metallic minerals: maximum 50,000 DMT of raw material (e.g., limestone, silica, perlite) annually.
Production limits include low-grade, marginal ores, and materials for testing or sampling.

The capital investment cap for a single small-scale mining unit is PHP 10 million.
This includes raw and additional capital expenditures such as processing plants, equipment, infrastructures, exploration and development costs, support facilities, and working capital.

Small-scale operations must be largely artisanal, relying heavily on manual labor.
Use of explosives or blasting accessories is prohibited.
Use of sophisticated/heavy equipment (excavators, loaders, backhoes, dozers, drills, etc.) within mining areas is forbidden.
Hauling equipment is permitted only for transporting ore/materials to shipping points or markets.
If non-heavy equipment is used, the ratio of labor cost to equipment cost must not exceed one (1), including rental or leasing costs.

SSMP/SSMC holders must comply with RA No. 7942 (Philippine Mining Act of 1995) and related rules.
An Environmental Compliance Certificate must be secured from the Environmental Management Bureau Regional Office.
The mining operation must conform to the 50,000 DMT annual production limit and 20-hectare area per permit/contract.
Required documents before operations begin include:
- Potential Environmental Impact Report (a simplified Environmental Protection and Enhancement Program).
- Final Mine Rehabilitation Decommissioning Plan approved by the Mine Rehabilitation Fund Committee.
- Community Development and Management Program approved by the Mines and Geosciences Bureau Regional Office.
Strict adherence to small-scale mine safety rules as per DAO No. 97-30 is mandated.

The memorandum circular takes effect immediately from its adoption on July 5, 2007.