Law Summary

Introduction

This document is a directive issued by the government of the Philippines regarding the development and operation of certain mining properties in the Kalinga-Apayao province.

Objective of the Directive

• Legal Principle: The directive aims to align with the government's policy of generating employment and foreign exchange revenue through the effective exploitation and development of natural resources.
• Key Definitions:
  • P.D. No. 463: Refers to the "Mineral Resources Decree of 1974," which outlines the framework for mining operations in the Philippines.

Mining Properties in Focus

• Subject Properties:
  • Mountain Mines, Inc.
  • Balatoc-Lubuagan Mines, Inc.
• Location: Municipality of Pasil, Province of Kalinga-Apayao.
• Requirement: Immediate commercial production of the aforementioned mining properties is mandated.

Development Despite Legal Challenges

• Legal Principle: The development and operation of the mining properties are to proceed regardless of ongoing legal cases (G.R. No. L-34267 and L-34268) against Biak-na-Bato Mining Company.
• Regulatory Reference: This arrangement is permitted under existing mining regulations, facilitating continuity in operations.

Operational Responsibility

• Assigned Operator: Batong-Buhay Gold Mines, Inc. is designated to operate the mining properties of Mountain Mines and Balatoc-Lubuagan.
• Considerations: The operation is to occur without prejudice to the outcomes of the pending legal cases.

Financial Provisions

• Escrow Requirement:
  • Percentage: 2% of the gross sales of minerals extracted from the disputed area is to be deposited in escrow.
  • Release Condition: The escrow amount will be released to the party ultimately adjudged as the rightful owner of the mining claims.

Conclusion

• Date and Place of Issuance: The directive was issued on February 18, 1983, in Manila.

Key Takeaways

• The directive emphasizes rapid development of mining resources to support economic growth.
• It allows for mining operations to continue despite ongoing legal disputes, ensuring operational continuity.
• A financial mechanism (escrow) is put in place to protect the interests of the parties involved in the disputed mining claims.