Title
Mining Sector Reforms EO 79, 2012
Law
Executive Order No. 79
Decision Date
Jul 6, 2012
Executive Order No. 79 mandates comprehensive reforms in the mining sector to ensure environmental protection, responsible resource utilization, and equitable benefits for local communities, while instituting strict compliance and oversight measures for mining operations.
A

Areas Closed to Mining Applications

  • Applications for mining contracts are prohibited in:
    • Areas enumerated under Section 19 of RA 7942.
    • Protected areas established under NIPAS.
    • Prime agricultural lands and strategic agriculture/fisheries zones.
    • Tourism development areas identified in the National Tourism Development Plan.
    • Other critical and environmentally sensitive areas that DENR identifies.
  • Existing valid mining contracts must strictly comply with laws and will be reviewed periodically.

Enforcement of Environmental Standards

  • The DENR, in coordination with LGUs, shall fully enforce environmental standards prescribed in mining laws.
  • Violators shall face appropriate sanctions.
  • Eligibility for mining rights requires strict compliance with environmental and legal requirements.

Review of Existing Mining Operations and Cleansing of Non-Moving Rights Holders

  • A multi-stakeholder team led by DENR will review all existing mining operations.
  • Review based on contract terms, applicable laws including the Mining Act and Labor Code.
  • Immediate action to be taken against violators.

Moratorium on New Mineral Agreements Pending Legislation

  • No new mineral agreements until legislation on revenue sharing is enacted.
  • DENR may continue granting Exploration Permits with rights to first option for development post-legislation.
  • Existing contracts to be reviewed for possible renegotiation subject to mutual acceptance.

Establishment of Mineral Reservations

  • Areas with strategic mineral reserves shall be declared Mineral Reservations.
  • This serves development of strategic industries per national plans.
  • Stakeholder consultation required.
  • Existing contracts remain valid and unaffected.

Competitive Public Bidding for Mining Rights

  • Grant of mining rights over areas with verified mineral resources, including government-owned and expired tenements, shall be via competitive public bidding.
  • MGB to prepare bidding packages and guidelines incorporating social acceptability.
  • Other mining rights follow existing procedures.

State Ownership and Development of Abandoned Ores and Mining Wastes

  • All valuable metals in abandoned ores, mine wastes, and tailings belong to the State and shall be developed through competitive bidding.
  • For operating mines, ownership of tailings transfers to the State upon contract expiration.
  • Liability for prior environmental harm remains with mining contractors.

Promotion of Value-Adding and Downstream Mineral Industries

  • DENR, DTI, DOST, NEDA, and stakeholders to develop a national program and roadmap for value-adding and downstream industries within 6 months.
  • Aligns with Philippine Development and National Industrialization plans.

Mining Industry Coordinating Council (MICC)

  • Climate Change Adaptation and Economic Development Cabinet Clusters constitute the MICC.
  • Co-chaired by cluster chairs, comprising DOJ Secretary, NCIP Chairperson, ULAP President.

MICC Powers and Functions

  • Submit a work plan for mining reforms.
  • Ensure stakeholder dialogue and coordination.
  • Conduct capacity building for government agencies.
  • Review mining laws and contracts to improve revenue allocation and regulation.
  • Create a Task Force Against Illegal Mining.
  • Serve as oversight committee for Provincial/City Mining Regulatory Boards.
  • Request assistance from government agencies.
  • Submit periodic implementation reports.
  • Perform additional necessary functions.

Small-Scale Mining Regulations

  • Must comply with RA 7076 and Environmental Impact Statement system.
  • Only within declared Minahang Bayan.
  • P/CMRBs must be operational within 3 months.
  • Applies only to gold, silver, and chromite.
  • Mercury use is strictly prohibited.
  • Government to provide training for small-scale mining cooperatives.

LGU Role and Compliance with National Laws

  • DILG and LGUs to ensure local powers conform with national mining laws.
  • LGUs may impose reasonable limitations consistent with national regulations.
  • Timely release of LGU shares from national revenues to be ensured.
  • Study possibilities for increased LGU shares and direct access to mining revenues.
  • Strict implementation of small-scale mining laws with DENR and MGB.

Creation of a One-Stop Shop for Mining Applications

  • DENR to establish an inter-agency one-stop shop within 6 months.
  • FPIC of Indigenous Peoples and social acceptability are prerequisites for approving mining agreements.
  • Cooperation mandated among government agencies.

Transparency Measures: Participation in Extractive Industries Transparency Initiative (EITI)

  • Government to support and participate in EITI.
  • DENR to operationalize EITI mechanisms in consultation with stakeholders.

Centralized Mining Industry Database

  • DENR to create a publicly accessible and comprehensive centralized database within 6 months.
  • Database to contain all government data, resource accounting, and environmental valuation studies.

Integrated Mining-Related Map System

  • Existing mapping efforts to include mining tenements, geo-hazard maps, ancestral domains, and protected areas.
  • Maps to guide planning and decision-making.
  • Closed areas clearly defined.

Programmatic Environmental Impact Assessment (PEIA)

  • DENR and EMB to study adoption of PEIA under Environmental Impact Statement System for mining projects.
  • Amendatory rules to be issued.
  • Extension to other industries to be studied.

Budgetary Provisions

  • Government agencies may allocate funds from their existing budget to implement the Order.
  • Subject to normal accounting and auditing rules.

Issuance of Implementing Rules and Regulations

  • DENR and MICC to issue IRRs within 60 days from effectivity.

Separability and Repealing Clauses

  • Invalid provisions do not affect the validity of other provisions.
  • Inconsistent rules and regulations are repealed or modified accordingly.

Effectivity

  • The Order takes effect immediately upon publication in a newspaper of general circulation.

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