Law Summary

Introduction

This Executive Order issued by President Ferdinand E. Marcos on July 10, 1970, establishes the procedure for the prospecting and exploitation of mineral resources found in government reservations, excluding designated mineral reservations.

Purpose

• The Order aims to facilitate the systematic and responsible exploitation of mineral resources to support the economic development of the Philippines.
• It acknowledges the potential for mineral deposits within various government reservations, such as forests, military areas, and national parks.

Procedure for Government Agency Involvement

• Primary Responsibility: Government agencies, particularly the Bureau of Mines, are tasked with conducting prospecting and exploration activities in reservations where feasible.
• Commercial Exploitation: Once a commercially viable ore deposit is identified, the area can be designated as a mineral reservation with Congressional approval.
• Competitive Bidding: The designated area will be opened for mining through a competitive bidding process governed by specific terms and conditions.

Procedure for Private Prospectors

• Permit Requirement:

  • Private prospectors must secure a written permit from the supervising government agency before commencing exploration activities.
  • The agency may impose conditions to protect the integrity of the reservation.

• Feasibility Study:

  • After determining the feasibility of mineral exploitation and delineating the required mining area, the prospector can request the exclusion of this area from the reservation.

• Referral Process:

  • The supervising agency must refer the exclusion request to the Director of Mines for an investigation and subsequent recommendations.

• Application Submission:

  • The application, along with the Director of Mines' report and recommendations, should be submitted to the agency head for comments before forwarding it to the Secretary of Agriculture and Natural Resources.

• Presidential Approval:

  • The Secretary may recommend the application to the President, who will decide on the exclusion and may issue a proclamation outlining terms and conditions for the mining operation.

Effectivity

• This Executive Order takes effect immediately upon issuance.

Key Takeaways

• The Executive Order establishes a structured framework for the exploration and exploitation of minerals in government reservations.
• It prioritizes government agency involvement while providing a clear process for private prospectors seeking to mine in these areas.
• Critical steps include obtaining permits, conducting feasibility studies, and securing presidential approval for exclusion from reservations.
• The Order emphasizes responsible management of mineral resources aligned with national economic interests.