Objectives of the Rules and Regulations
- Promote rational and state-supervised mineral resource management.
- Enhance mineral resource contribution to economic development while protecting environment and communities.
- Ensure equitable access to mineral resource benefits and costs.
- Enable government and investors to recover fair returns supporting sustainable development.
Definitions of Key Terms
- Defines terms such as Ancestral Lands, Exploration, Commercial Production, Contractor, Department, Environmental Compliance Certificate (ECC), Financial or Technical Assistance Agreement (FTAA), Indigenous Cultural Community, Mineral Agreement, Mining Rights, Permittee, Qualified Person, and others.
- Includes environmental terms like Environmental Impact Assessment (EIA), Environmental Protection and Enhancement Program (EPEP), Annual Environmental Protection and Enhancement Program (AEPEP).
Government Authority
- The Department of Environment and Natural Resources (DENR), through the Secretary, is responsible for mineral resource management.
- Secretary can enter into mining agreements, recommend FTAAs, promulgate regulations, and enforce laws.
- Mines and Geosciences Bureau (Bureau) administers mineral lands and resources, conducts surveys and research, recommends grant of agreements, monitors compliance, and can deputize enforcement personnel.
Recording System and Mineral Gazette
- Establishment of Mining Recorder Units for processing mining documents.
- Mining Register maintained for chronological recording of applications and documents.
- Payment of registration fees is required.
- Procedures set for registration, filing, archiving (including digitization), and maintenance of document records.
- Mineral Rights Management System and Mineral Resources Database System to facilitate data management and policy planning.
- Publication of Mineral Gazette annually to disseminate official mining information.
Scope of Application
- Mining applications open on public/private lands not covered by valid rights, expired/abandoned rights, mineral reservations, and timber or forestlands.
- Mining applications prohibited on military/government reservations without clearance, near infrastructure, on areas with valid rights/applications, prohibited by law, small-scale mining areas without consent, protected forests, parks, tourist zones, and environmentally sensitive areas.
- Areas covered by ancestral lands require prior consent of indigenous communities and agreement on royalties for such communities.
Mineral Reservations and Government Reservations
- Mineral reservations can be established, disestablished or modified by proclamation after public hearings and consultations.
- Mineral reservations include submerged lands in Philippine archipelagic sea, contiguous zone, and exclusive economic zone.
- Mining operations in reservations may be conducted by DENR or qualified persons through permits or agreements.
- Small-scale mining within mineral reservations governed by specific rules, with cooperative preferential rights.
- Royalties of at least 5% of gross output paid by contractors within mineral reservations with part allocated for mineral exploration and environmental management.
Exploration Permits
- Exploration may be conducted by the Bureau or qualified persons.
- Applications require technical, financial, environmental plans, location maps, and clearances.
- Renewal subject to justification and reports.
- Maximum areas allowed for individuals and corporations onshore and offshore are specified.
- Posting and publication of applications required with time for opposition filings.
- Reporting, relinquishment, transfer, renunciation, and cancellation governed by defined procedures.
- Declaration of mining project feasibility grants exclusive right to apply for mineral agreement or FTAA.
Mineral Agreements
- Three kinds: Mineral Production-Sharing Agreement (MPSA), Co-Production Agreement, Joint Venture Agreement.
- Eligibility requires qualified person status and satisfactory environmental and socio-cultural track records.
- Maximum allowable contract areas defined for individuals and corporations.
- Applications must include proof of financial, technical capacity, environmental plans, and other documentation.
- Area clearance, publication, evaluation, registration, and terms and conditions provided.
- Rights and obligations include exclusive mining, construction, technology determination, and environmental responsibilities.
- Temporary exploration permits and conversion or assignment procedures established.
Financial or Technical Assistance Agreements (FTAA)
- Eligible qualified persons may enter into large-scale mining contracts.
- Covers specified precious and strategic minerals.
- Maximum contract areas and relinquishment requirements specified.
- Application process requires comprehensive documentation, financial guarantee, environmental compliance, and evaluation by a multi-agency negotiating panel.
- Terms include financial commitments, environmental protection, employment preferences, and compliance obligations.
- Conversion to mineral agreement possible if large-scale mining is not viable.
- Assignment, withdrawal, cancellation procedures stipulated.
Survey of Contract/Mining Areas
- Survey boundaries preferably follow geographical meridional blocks; exceptions allowed for practical reasons.
- Applications for survey include technical documents and surety bonds.
- Surveys conducted by qualified geodetic engineers with defined monument standards and submission deadlines.
- Failure or violations related to survey cause forfeiture and cancellation.
Drilling Operations by the Bureau
- Bureau may conduct exploration, prioritize areas based on government mineral programs.
- Costs reimbursed by applicants.
- Drilling equipment available for lease with terms ensuring proper use and maintenance.
- Lessees responsible for upkeep and report submission.
Quarry Operations
- Permits required for quarrying and sand/gravel extraction with area and term limits.
- Applications require clearances, surveys, financial, technical and environmental documentation.
- Regulations govern permit issuance, terms, surety bonds, fees, reporting, and suspension/revocation grounds.
- Government and private gratuitous permits provided for specific uses.
- Guano and gemstone gathering permits subject to qualifications and issuance requirements.
Small Scale Mining
- Governed by existing administrative and legal guidelines consistent with Philippine laws.
- Permits issued by Provincial/City Mining Regulatory Boards.
Mineral Processing Permits
- Required for mineral processing operations for terms of five years renewable up to 25 years.
- Applications require financial, technical, environmental compliance documents.
- Approval and renewal procedures described.
- Compliance with applicable health, safety, environmental laws mandated.
Transport and Confiscation of Minerals
- Transport of minerals requires Ore Transport Permit.
- Absence of documentation constitutes prima facie illegal mining.
- Seizure, confiscation, and disposition procedures detailed, including custody, appraisal, and sale.
- Complaints filed with courts supported by affidavits and evidence.
Accreditation of Traders and Processors
- Trading of minerals requires registration with DTI and accreditation by DENR.
- Applications require supplier contracts and proof of legal source.
- Procedures for issuance, renewal, and fees outlined.
- Non-accredited trading leads to confiscation and penalties.
Development of Mining Communities and Technology
- Contractors to assist in community development and promote local welfare.
- Development of mining geosciences and technology encouraged with funding included in feasibility studies.
- Preference given to Filipino goods, services, and employment.
- Facilities to be donated or removed upon termination.
- Foreigners may be employed for specialized work subject to approval and qualifications.
Mine Safety and Health
- Strict compliance with Mines Administrative Order No. 51, 1991.
- Accreditation required for service contractors.
- Safety and health programs to be submitted and monitored.
- Registration of safety engineers and inspectors with qualification requirements.
- Permits required for electrical/mechanical installations.
- Enforcement powers include order issuance and suspension.
- Reporting of accidents and controlled use of explosives.
- Employment restrictions for minors and supervision requirements.
Environmental Protection
- Mining operations to be managed with technical, financial, social, cultural, environmental responsibility.
- Objectives include sustainable environmental conditions, water quality preservation, land rehabilitation, and community preservation.
- Requirement to submit Environmental Protection and Enhancement Program (EPEP) or Environmental Work Program (EWP).
- Annual Environmental Protection and Enhancement Program (AEPEP) details and implementation required.
- Environmental monitoring, audits, and powers to suspend implemented.
Environmental Impact Assessment
- Environmental Management Bureau (EMB) responsible for processing EIS and Project Descriptions, monitoring ECC compliance.
- Penalties provided for mining without ECC or violation of environmental conditions.
Rehabilitation and Mine Rehabilitation Fund (MRF)
- Mine Rehabilitation Fund established as trust fund for environmental compliance and rehabilitation.
- Fund comprises Monitoring Trust Fund and Rehabilitation Cash Fund with specific deposit schedules.
- MRF Committee created for fund governance and monitoring.
- Committee meets quarterly, issues approvals, and manages disbursements.
- Final mine rehabilitation and decommissioning plans required five years before closure.
- Non-posting of funds grounds for suspension or cancellation.
Mine Waste and Tailings Fees
- Fees collected semi-annually based on mine waste and mill tailings generated.
- Fees fund compensation for mining damages and research.
- Inter-Agency Evaluation Committee created with specified members.
- Technical Working Group and Regional Teams im
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