Title
Revised rules for People's Small-Scale Mining Act
Law
Denr Administrative Order No. 2015-03
Decision Date
Mar 17, 2015
The Administrative Order No. 03-15 establishes regulations and guidelines for the implementation of the People's Small-Scale Mining Program in the Philippines, promoting sustainable and safe small-scale mining activities while ensuring environmental protection and stakeholder involvement.
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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.

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