Definitions
- Defines key terms such as Active Mining Area, Ancestral Domain and Land, Annual Safety and Health Program (ASHP), Board (Provincial/City Mining Regulatory Board), Custom Mill, Minahang Bayan (People's Small-Scale Mining Area), Small-Scale Miner, Small-Scale Mining Contract, Mineral Processing Zone, among others.
- Emphasizes Filipino ownership and legal capacity requirements for miners and processors.
- Provides technical and geographic references for mining operations.
Registration, Licensing, Declaration of Minahang Bayan, and Contract Award
- Small-scale mining is prohibited outside Minahang Bayan and without a contract.
- Registration requires proof of Filipino citizenship and valid IDs.
- Licensing involves application, fees, and proof of 100% Filipino ownership.
- The Board may declare mineralized onshore areas as Minahang Bayan, considering technical, commercial viability, existing permits, land ownership, and Indigenous Cultural Communities' rights.
- Procedures for declaration include petitions, evaluation, notification to affected parties, posting and publication, resolution of oppositions, and Secretary clearance.
- Only one small-scale mining contract is awarded per contractor nationwide, with contract area sizes between 1.25 and 20 hectares.
Terms and Conditions of Small-Scale Mining Contract
- Contracts are valid for two years, renewable up to six years.
- Mining limited to gold, silver, chromite, and non-metallic minerals.
- No explosives, heavy equipment, mercury use, hydraulicking, or compressor mining allowed.
- Mining confined to contract areas.
- Compliance with approved work programs, environmental plans, safety rules, and payment of fees, royalties, taxes, and production share mandatory.
- Monthly production reports and annual financial reports required.
Mineral Processing
- Mineral processing restricted to centralized custom mills in mineral processing zones under a Mineral Processing License (MPL).
- No mercury use allowed.
- Establishment requires local government designation, compliance with regulations, and when private sector cannot provide, government intervention possible.
- MPL applications necessitate proof of technical and financial capability, feasibility studies, environmental plans, and a minimum capital.
- MPL term coterminous with small-scale mining contracts; cancellation and compliance rules apply.
Supervision and Regulatory Boards
- The Secretary exercises direct supervision over small-scale mining programs.
- The Provincial/City Mining Regulatory Board has powers to declare Minahang Bayan, award contracts, settle disputes, and submit reports.
- Board consists of Regional Director (Chairperson), local chief executives, small-scale and large-scale mining representatives, and environmental NGO representatives.
- Board members receive compensation based on meetings attended.
Rights
- Small-scale miners gain easement rights to existing necessary facilities upon Minahang Bayan declaration.
- Contracts confer exclusive mining rights but prohibit assignment or subcontracting.
- Ownership of mill tailings defaults to the small-scale mining contractor, with preemptive purchase rights for permit holders.
Environmental Protection, Social Development, Safety, and Health
- Contractors and processors must abide by approved Environmental Compliance Certificates, rehabilitation plans, and social development programs.
- Safety and health rules under DAO No. 97-30 and approved programs must be followed.
Fiscal and Regulatory Provisions
- Compliance with tax payments, royalties (5% for mineral reservations), government production share, and occupation fees (PhP100/hectare/year) is required.
- The Peoplea's Small-Scale Mining Protection Fund supports safety training, rescue teams, and emergency response.
- Contracts/licenses may be cancelled for violations, non-payment, abandonment, misrepresentation, unfair competition, national interest or environmental reasons, or reversion of Minahang Bayan.
- Fines range from PhP20,000 to PhP100,000; non-payment leads to ineligibility for contracts.
Reversion of Minahang Bayan
- Minahang Bayan may be reverted if economically nonviable, endangering miner safety, environmentally destructive, disturbed by conflict, or finalized in favor of mining applicants/opposers.
- Written notice and right of first refusal for large-scale mining permits provided upon reversion.
Assistance to Small-Scale Miners
- The Department, in coordination with the Board and other agencies, will assist in cooperative organization, technical/financial aid, marketing, and livelihood generation.
Sale, Transport, and Export of Minerals
- All gold from Minahang Bayan must be sold to the Bangko Sentral ng Pilipinas or authorized agents at competitive prices.
- Transport of minerals requires an Ore Transport Permit from the Board.
- Export governed by related Department Administrative Orders.
Penal Provisions
- Violations result in imprisonment of at least six years and confiscation of mining equipment used in offenses.
Transitory Provisions
- Small-scale miners operating since August 1, 1987, shall not be displaced if areas are declared Minahang Bayan.
- Small-Scale Mining Permits under PD No. 1899 recognized until expiry unless revoked; affected miners may opt for small-scale mining contracts under RA No. 7076.
Final Provisions
- Conflicting rules repealed or modified.
- Unconstitutional provisions do not affect the rest of the Order.
- The Secretary may amend or clarify provisions.
- The Order takes effect 15 days after newspaper publication and registration with the National Administrative Register.