New system for mineral resource management

Defines important terms such as ancestral lands, block, contractor, Department of Environment and Natural Resources (DENR), Exploration, Financial or Technical Assistance Agreement, Indigenous cultural communities, Mineral Agreements, Mining operations, Small-scale mining, Quarrying, and State among others.
Clarifies territorial scope including onshore, offshore, exclusive economic zone, and contiguous zones.

State owns and controls all mineral resources.
Allows direct State undertaking or contracting with qualified persons.
Recognizes indigenous cultural communities' rights to ancestral lands.
Presidential authority to establish mineral reservations for national interest or preservation.
Mines and Geosciences Bureau (Bureau) under DENR administers mineral lands, conducts surveys and monitors compliance.
Regional offices for mining governance established.

Governs all exploration, development, utilization, and processing of minerals.
Prohibits opening ancestral lands without indigenous communities' prior consent.
Royalty payments to indigenous communities to form trust funds for socioeconomic development.
Open mining to both public and private lands but with reservations and exclusions.
Certain areas like military reservations, historic sites, valid mining rights areas, protected forests, and NIPAS areas are closed for mining.

Permits grant exploration rights for specified areas and are renewable.
Maximum area limits set by geographic location and applicant type.
Permittee has rights to enter and explore subject to negotiations if private lands affected.
Permittee may convert exploration permit into mineral agreements if project feasibility is declared.
Permits are transferable with Secretary's approval.

Three modes: Mineral Production Sharing Agreement, Co-production Agreement, and Joint Venture Agreement.
Grants exclusive mining and extraction rights in contract areas.
Qualified persons with environmental track records eligible.
Maximum contract areas set for onshore and offshore locations.
Mineral agreements filed regionally with Secretary's approval and presidential notification.
Assignments/transfers require Secretary's approval, automatic if no action within 30 days.
Agreements valid for up to 25 years, renewable.
Contractor may withdraw if mining no longer feasible, subject to compliance.

Qualified persons with financial and technical capabilities may enter.
Larger maximum contract areas allowed.
Requires firm financial commitments, bonds, technical competence, and environmental compliance.
Mandates preferential use of local goods, Filipino employment preference, technology transfer, and environmental protection.
Negotiated by DENR and approved by the President who must notify Congress.
Renewable terms up to 25 years.
Contractors may convert to a mineral agreement under specific conditions.
Transfers need presidential approval with congressional notification.
Withdrawal possible if operations deemed not feasible.

Small-scale mining governed by Republic Act No. 7076.
Quarry permits granted by provincial/city mining boards with limits on area and duration.
Different permits regulate commercial, industrial, exclusive sand and gravel extraction, and gratuitous government or private use.
Fees, taxes, and grounds for cancellation detailed.

Contractors must aid mining communities' development and promote science and mining technology.
Expenditures for socioeconomic and technical advancement credited.
Effective manpower training required, with preference given to Filipinos.
Prioritizes use of local goods, services, and technologies.
Provides for turn-over of infrastructure to government after mining cessation.

Strict compliance to mines safety and environmental regulations mandatory.
Age limits for mining labor set (16 for all mining, 18 for underground).
Large operations require qualified engineers and foremen.
Regional directors oversee inspections and enforce corrective orders.
Environmental Compliance Certificate (ECC) required except during exploration phase.
Environmental programs must include rehabilitation plans.
Mine rehabilitation funds established.

Rights to timber, water, explosives, and easements necessary for mining operations are provided.
Compensation and bond posting required for entry and usage of private lands or concession areas.

Establishes a panel of arbitrators with original jurisdiction over mining disputes.
Decisions appealable to the Mines Adjudication Board.
Mines Adjudication Board composed of DENR Secretary, Mines Bureau Director, Undersecretary.
Board authorized to hear cases, summon witnesses, impose penalties, and make binding decisions.
Final decisions subject to judicial review on questions of law.

Prescribes government share mainly through excise tax under mineral production-sharing agreements.
Government share in other agreements negotiated considering investments and risks.
Income tax, excise tax, mine wastes and tailings fees, and occupation fees imposed, with allocation formulas.
Secretary empowered to increase fees and charge filing fees.

Contractors entitled to fiscal incentives under Omnibus Investments Code.
Pollution control devices exempt from certain taxes.
Net operating losses may be carried forward.
Accelerated depreciation allowed.
Constitutional protections including repatriation of investments, freedom from expropriation, requisition protections, and confidentiality guaranteed.

Suspension or cancellation for non-compliance, violations, non-payment of fees, false statements.
Specific criminal penalties for illegal exploration, theft, destruction of mining property, arson, obstruction, environmental violations.
Fines and administrative sanctions authorized.

Mines and Geosciences Bureau designated a line bureau with regional and district offices.

Existing valid mining rights recognized and protected.
Preferential rights for existing claim holders to enter mineral agreements within two years.
Separability and repealing clauses.
Act effective thirty days after publication.