Minimum Requirements for MPSA
- Applicants must submit financial and legal documents to prove capacity and legitimacy.
- Individuals must provide income tax returns for 3 years, proof of capital, a sworn statement against dummy status, and authorization for verification by the DENR.
- Corporations/partnerships must submit SEC registration, articles of incorporation/by-laws, directors/officers data, audited financial statements, proof of capital, and authorization for verification.
- Integrated MPSA applicants submit a two-year exploration work program and commit to conduct Environmental Impact Assessment (EIA) and secure Environmental Compliance Certificate (ECC).
- Simple MPSA applicants submit three-year work or commercial production programs and ECC.
- Holders of unperfected mining rights must submit registration, survey returns, proof of compliance with work & fees, and environmental/anti-pollution measures.
- Failure to submit these requirements results in non-processing of the application.
Submission of Letter of Intent (LOIs) and MPSAs
- Certain mining and quarry applicants must submit their LOIs and MPSAs within two years from DENR A.O. 57 effectivity (until July 17, 1991).
- Failure to submit within the period results in claim abandonment.
Area Clearance
- RTS checks for area conflicts via map projection within 15 days of application receipt.
- If area is free from conflict, applicant pays occupation fees (P10/ha for non-reservation, P100/ha for reservation) within 15 days.
- Late payment leads to non-processing.
- Conflicts must be resolved by RTS within 5 days of discovery.
Survey of the Area Applied For
- Applicants file a survey application within 60 days from filing the proposal.
- RTD for Mines approves within 5 days.
- Survey returns must be submitted within one year.
- Areas previously surveyed for mining are exempt.
- Failure to submit survey returns can lead to cancellation.
Publication of MPSA Application/Proposal
- RED publishes MPSA application once a week for two weeks in a newspaper at applicant's expense.
- Publication must also be posted on Mines and Geosciences Bureau, municipal and DENR regional bulletin boards for two weeks.
- Applicant files affidavit confirming publication.
- Previously published mining lease applications are exempted.
- No adverse claims within 30 days after publication means applicant deposits verification fee within 15 days.
- Failure results in rejection.
Adverse Claims
- RED accepts only verified adverse claims accompanied by docket fee and proof of service.
- Adverse claims must state complainant names, counsel, facts, grounds, and supportive documents.
- Regional Panel of Investigators resolves claims within 30 days.
Verification of Area Applied For
- Payment of minimum verification fee of P4,000 required.
- Designated geologist/mining engineer and geodetic engineer verify mineralization, survey correctness, and monumentation.
- Verification report submitted to RTS within 15 days.
- Previously verified areas are exempt.
Acceptance and Evaluation of MPSA Proposal
- RTS forwards recommendation and documents to MGB Technical Secretariat for pre-evaluation within 15 days of verification report.
- Final evaluation made by Sub-Committee (capital investment less than P100M) or Negotiating Panel (P100M or more) within 15 days.
Negotiation Between Government and Applicant/Proponent
- MPSA Sub-Committee/Negotiating Panel notifies Secretary of recommendation.
- Secretary approves for formal signing or remands for negotiation.
- Negotiations aim to conclude fair, mutually acceptable terms.
- DENR referred as "Government"; applicant referred as "Contractor" in MPSA.
Approval of MPSA
- DENR forwards signed MPSA and supporting documents to the President for approval within 5 days.
Registration and Issuance of MPSA
- Upon presidential approval, MPSA forwarded for numbering.
- Contractor registers MPSA at Regional Office, paying fees: registration P10, P.D. 1856 P10, regulatory fee P10/ha/year (with increments), or exploration permit fee P50/ha/year for offshore.
- Contract released after payment and registration.
Non Acceptance of Declaration of Location (DOL)
- No registration of DOL accepted after 15 days from guidelines effectivity.
Issuance of Interim Mines Permit
- Holders of pending applications or expiring contracts may apply for a one-year Interim Mines Permit.
- Conditions include being already operating or near operation, submitted MPSA, approved work program, surety bond, and ECC.
- Quarterly progress reports required.
- Interim government share based on MPSA proposal, not less than 1% of gross output excluding excise tax.
Separability Clause
- If any part is unconstitutional, remaining provisions remain effective.
Repealing Clause
- All inconsistent or contrary orders, rules, and regulations are repealed or modified accordingly.
Effectivity
- The administrative order takes effect 15 days after publication in a general circulation newspaper.