Key Definitions
- "Mineralized areas": Naturally occurring mineral deposits.
- "Small-scale mining": Manual labor-based mining without explosives or heavy equipment.
- "Small-scale miners": Filipino citizens or cooperatives licensed by the Department of Environment and Natural Resources (DENR).
- Contract types: co-production, joint venture, mineral production sharing agreements.
- Other terms include active mining area, existing mining right, claimowner, processor, license, mining plan, director, and secretary.
Establishment of the People’s Small-scale Mining Program
- Implemented by DENR Secretary with other agencies.
- Designed for orderly, systematic development of small-scale mining.
- Features include:
- Identification and reservation of mineral lands for small-scale mining.
- Recognition of prior rights.
- Cooperative formation encouragement.
- Technical, financial, processing, marketing assistance.
- Ancillary livelihood activity generation.
- Regulation and government revenue collection.
Declaration of People’s Small-scale Mining Areas
- Authorized by the Board with Secretary’s review.
- Priority to areas occupied and mined before August 1, 1987.
- Restrictions include no declaration of active mining areas, forest rights areas, or protected reserves unless status withdrawn.
Future People’s Small-scale Mining Areas
- Includes:
- Public lands without existing rights.
- Public lands with inactive mining rights.
- Private lands without significant improvements or regular use, with exceptions.
Ancestral Lands
- Require prior consent of cultural communities.
- Cultural communities given priority for contracts if areas declared as small-scale mining areas.
Registration and Organization of Small-scale Miners
- Mandatory registration with the Board.
- Encouragement to organize cooperatives for contract eligibility.
Awarding of Contracts
- Contracts awarded to registered miners or cooperatives.
- One contract per contractor allowed.
- Contractor must commence operations within one year.
- Priority to local residents.
- Reasonable application fees applicable.
Extent and Conditions of Contract Area
- Contract area up to 20 hectares.
- Depth or tunnel length regulated.
- Factors considered: cooperative size, mineral quantity, safety, environment.
Easement Rights
- Small-scale miners granted rights to existing facilities necessary for operations.
- Consultation required with affected parties.
- Reasonable fees payable.
Contractual Rights and Limitations
- Contractors entitled to mine, extract, and dispose minerals commercially.
- Contracts cannot be subcontracted, assigned, or transferred.
Contract Term and Obligations
- Two-year term, renewable with compliance.
- Duties include:
- Mining according to approved plan.
- Compliance with safety and environmental rules.
- Payment of taxes, royalties.
- Reporting monthly production and finances.
- Safety responsibility.
Rights of Claimowners
- Encouragement for contractual agreement with small-scale miners.
- Rights if no agreement:
- Exemption from fees and taxes.
- Access for approved activities without interference.
- Royalties of 1.5% for metallic minerals, 1% for nonmetallic.
- Conditions for eligibility apply.
Rights of Private Landowners
- Right to be notified and oppose declaration.
- Encouragement of voluntary agreements.
- Entitled to actual damages and royalties up to 1%.
Ownership and Sale of Mill Tailings
- Small-scale miners own tailings from contract areas.
- Right to sell or process tailings.
- Claimowners have preemptive purchase rights.
Sale of Gold
- All gold sold to Central Bank or authorized representatives.
- Prices competitive with global market.
- Establishment of buying stations in gold-rush areas.
Custom Mills
- Operation limited to designated mineral processing zones.
- Government may construct mills if private sector does not.
- Licensing subject to pollution and safety standards.
- Department to establish assay labs.
- Custom mills act as withholding agents for government revenue.
Revenue Sharing
- Government revenue split as per Local Government Code.
People’s Small-scale Mining Protection Fund
- 15% of government’s share dedicated to:
- Information dissemination and training.
- Mine rescue and recovery.
- Addressing miners’ needs from accidents or emergencies.
Contract Rescission and Administrative Fines
- Noncompliance or abandonment grounds for contract cancellation and ejectment.
- Fines between ₱20,000 and ₱100,000.
- Nonpayment results in ineligibility for future contracts.
Reversion of Mining Areas
- Secretary may withdraw small-scale mining status if area no longer feasible or unsafe.
Protection of Actual Occupants
- Miners operating before August 1, 1987 cannot be dispossessed if compliant.
Provincial/City Mining Regulatory Board
- Agency under Secretary supervision.
- Powers:
- Declare and reserve areas.
- Award contracts.
- Implement regulations.
- Settle disputes.
- Composition:
- DENR representative (Chairman).
- Governor or mayor representative.
- Small-scale mining representative.
- Large-scale mining representative.
- Environmental NGO representative.
Administrative Supervision
- Secretary exercises direct control.
- Rules and regulations promulgated within 90 days of effectivity.
- Priority to minimize disruption.
Penal Sanctions
- Violations punishable by 6 months to 6 years imprisonment.
- Confiscation of equipment and tools.
Repealing and Separability Clauses
- Conflicting laws and issuances repealed or modified.
- Unconstitutional provisions do not affect remainder of the law.
Effectivity
- The Act takes effect 15 days after publication in official or widely circulated publications.