Revised rules for People's Small-Scale Mining Act

Legal basis and coverage

This Order is promulgated pursuant to Republic Act No. 7076 (People’s Small-Scale Mining Act of 1991) and Republic Act No. 7160 (Local Government Code of 1991).
This Order is also issued pursuant to Executive Order No. 79 (July 6, 2012), particularly Section 11 (EO is expressly defined in Section 4).
The rules govern small-scale mining activities and small-scale mineral processing within People’s Small-Scale Mining Areas (“Minahang Bayan”).
The Order regulates and supports viable small-scale mining while requiring environmental protection, safety, community relations, and government revenue collection (Sections 2, 3, 26–30).

State policy and program objectives

The State policy is to promote, develop, protect and rationalize viable small-scale mining to generate employment and provide equitable sharing of natural wealth, while respecting existing rights under Republic Act No. 7076 and Section 11 of EO No. 79 (Section 2).
This Order implements the People’s Small-Scale Mining Program under Republic Act No. 7076 (Section 3).
The Order aims for orderly, systematic and ecologically balanced administration and disposition of small-scale mining areas (Section 3).
This Order regulates the small-scale mining industry to enhance growth and productivity and ensure environmental protection, and it provides technical, financial and marketing assistance, supports efficient government revenue collection, promotes best practices, and encourages good governance and integrity (Section 3).

Core definitions and key terms

Active Mining Area is an area under actual exploration, development, utilization or commercial production determined by the Secretary, limited by the maximum area allowed by law (Section 4(a)).
Ancestral Domain and Ancestral Land are defined for ICCs/IPs, including lands, waters, natural resources and areas traditionally accessed for subsistence and traditional activities, subject to the stated conditions and interruptions (Sections 4(b), 4(c)).
Annual Safety and Health Program (ASHP) is an approved program ensuring a just, safe and humane working environment for small-scale miners or plant workers (Section 4(d)).
Board is the Provincial/City Mining Regulatory Board composed of the Regional Director (Chairperson) plus four (4) members: Governor/City Mayor, small-scale miners, large-scale miners, and environmental non-government organizations (Section 4(e)).
Bureau means the Mines and Geosciences Bureau under the Department (Section 4(f)).
Certificate of Environmental Management and Community Relations Record (CEMCRR) is a certificate issued by the Regional Office attesting to satisfactory environmental management and community relations in prior/present mineral resource use or mining-related ventures (Section 4(g)).
Environmental Compliance Certificate (ECC) is an EMB-issued document under Presidential Decree No. 1586 and its implementing rules (Section 4(n)).
Minahang Bayan (also called People’s Small-Scale Mining Area) is the area declared as such under Republic Act No. 7076 (Section 4(v)).
Small-Scale Mining relies heavily on manual labor using simple implements and methods and does not use explosives or heavy mining equipment (Section 4(al)).
Small-Scale Mining Contract is a co-production, joint venture or mineral production sharing agreement between the government and a small-scale mining contractor for small-scale utilization of a plot of mineral land inside a Minahang Bayan (Section 4(am)).
Small-Scale Mining Contractor is a small-scale miner organized as an individual miner or cooperative registered with SEC or the appropriate agency, which entered into an agreement with government for utilization of a plot inside a Minahang Bayan (Section 4(an)).
Investment is limited capital investments infused by a contractor, including materials and working capital, not to exceed PHP 10,000,000.00 during the entire term of the contract and its renewal(s) (Section 4(t)).
Two-year Work Program is a two-year schedule of engineered small-scale mining, signed by a licensed Mining Engineer (Section 4(ao)).

Licensing and declaration of Minahang Bayan

No small-scale mining may be undertaken outside a Minahang Bayan, and no entity may engage in small-scale mining without a small-scale mining contract (Section 5).
No person may work or be hired to work in small-scale mining and similar operations unless registered with the Board (Section 5).
All persons undertaking or intending to undertake small-scale mining must register as small-scale miners with the Board, submitting a valid government-issued identification card and proof of Filipino citizenship, and the Board maintains a registry within its jurisdiction (Section 6).
To apply for a small-scale mining contract, the applicant must first secure a small-scale mining license from the Board (Section 7).
The small-scale mining license requires: (1) an application form duly accomplished and notarized as prescribed in Annex A; (2) payment of an application fee of PHP 1,000.00 payable to the Regional Office concerned; and (3) proof of registration with SEC, DTI, CDA or other appropriate government agency (Section 7).
The applicant must be 100% Filipino, and the license is effective during the term of the small-scale mining contract issued; it is applicable only to applications for contracts within a province (Section 7).

What areas may become Minahang Bayan

The Board may declare and set aside Minahang Bayan in mineralized areas onshore suitable for small-scale mining, except areas closed to mining applications under EO No. 79, subject to review by the Secretary through the Director (Section 8).
The following mineralized onshore areas may be declared as Minahang Bayan:
- Areas already occupied and actively mined by small-scale miners before August 1, 1987, subject to conditions that they are not active mining areas, minerals are technically and commercially suitable, and they are not covered by existing forest rights or reservations and are not tourist or protected areas unless withdrawn by competent authority (Section 8).
- Public lands covered by mining applications where the minerals intended for mining by the applicant differ from those intended for small-scale mining, as determined by the Regional Director; or areas covered by denied mining applications with pending appeal with the Bureau or Department Central Office (Section 8), with royalties placed in escrow using the stated computations and released upon approval or final denial (Section 8).
- Public lands covered by existing mining permits/contracts that are not active mining areas, including permits/contracts previously cancelled or revoked notwithstanding pending appeal, subject to escrow royalties and release upon reinstatement or final cancellation (Section 8).
- Public lands covered by valid and existing mining permits/contracts, with limits on the portion that may be declared as Minahang Bayan:
  - For vein/alluvial gold and/or silver or chromite deposits with mineralized areas exceeding 500 hectares, a maximum of 25% of the permit/contract area above 500 hectares may be declared as Minahang Bayan, with a minimum Minahang Bayan area of twenty (20) hectares (equivalent to 1/4 of a meridional block of 30” of latitude and 30” of longitude) (Section 8).
  - For non-metallic mineral deposits with mineralized areas exceeding 1,000 hectares, a maximum of 25% of the permit/contract area above 1,000 hectares may be declared as Minahang Bayan, with the same minimum area requirement of twenty (20) hectares (Section 8).
  - A Minahang Bayan portion may be declared if the holder consents (Section 8).
- Public lands under private agreement conditions: the mining permit/contract holder is entitled to royalty as agreed or computed by the stated standard rates when no prevailing standard royalty exists (Section 8).
- Private lands may be declared subject to landowner consent and royalty payment not exceeding one percent (1%) of the gross value of minerals recovered, plus payment of actual damages determined by the Board, subject to stated exclusions for certain small parcels, improvements, cemetery/burial proximity, and specified land uses (Section 8).
- Ancestral Lands/Ancestral Domains subject to CADT/CALT or areas verified by authorized government entities as actually occupied by ICCs under time immemorial possession claims, with Free and Prior Informed Consent (FPIC) obtained under procedures of the NCIP; if declared as Minahang Bayan, ICC members have priority as small-scale mining contractors (Section 8).

Declaration process steps and dispute periods

A petition or request for declaration of a Minahang Bayan must be filed with the Board, specifying the proposed area coverage using geographic coordinates of at least four (4) corners following the meridional block system under Section 11 (Section 9).
Upon receipt, within fifteen (15) days, the Board forwards the petition/request to the Regional Office concerned (Section 9).
The Regional Office evaluates technical and economic viability, checks status on the control map for conflicts with prior/existing mining rights/applications and areas closed to mining, and considers allocation for a mineral processing zone if needed (Section 9).
Within fifteen (15) days from receipt of the petition/request, the Regional Office forwards its evaluation to the Secretary through the Director for initial review, and the Director informs the Regional Office immediately; the Regional Office then forwards the result to the Board for consideration (Section 9).
If the proposed area is within areas closed to mining applications, the Board denies the petition/request (Section 9).
If the proposed area conflicts with existing permits/contracts or with mining applications falling under categories under Section 8(b) and Section 8(c), the Board notifies holders/applicants and requires comments within fifteen (15) days, with copy furnished to the petitioner (Section 9).
If the proposed area covers private land under Section 8(d), the Board notifies landowners/lawful possessors and requires comments within fifteen (15) days, with copy furnished to the petitioner (Section 9).
If no prior/existing mining rights or applications exist and the area is not in a closed area, the Board posts notice on bulletin boards of the Regional Office, Provincial Governor office, and Municipal/City Mayor office for seven (7) days, copies barangays, publishes once in a newspaper of local or national circulation, and the petitioner shoulders publication cost (Section 9).
The Board forwards notice to the NCIP to issue a Certificate of Non-Overlap or Compliance Certificate under Republic Act No. 8371 (Section 9).
The Board forwards notice to all Sangguniang concerned for endorsement required under Sections 26 and 27 of Republic Act No. 7160, and endorsement by at least the majority is required (Section 9).
Within five (5) days from the last date of posting and publication, authorized officers and the newspaper publisher issue certifications of compliance (Section 9).
Any adverse claim, protest, or opposition is filed with the Board for resolution within ten (10) days from publication or last posting date (Section 9).
The Board acts within fifteen (15) days after submission for resolution; its decision may be appealed to the Secretary within fifteen (15) days from receipt (Section 9).
For private landowner opposition, the opposition must be filed within fifteen (15) days from receipt of notice, and the Board acts within fifteen (15) days; appeal to the Secretary is within fifteen (15) days (Section 9).
For a Sangguniang opposition, the opposition must be filed within fifteen (15) days from receipt of notice, the Board acts within fifteen (15) days, and appeal to the Secretary is within fifteen (15) days (Section 9).
If no adverse claim/protest/opposition is filed within the ten (10)-day period, or upon final resolution favoring the petitioner, the Board forwards all documents to the Secretary through the Director within fifteen (15) days after receipt of compliance certifications (Section 9).
If requirements are fully complied with, the Secretary clears the declaration without prejudice to final resolution of oppositions (Section 9).
After receiving clearance, the Board requires the petitioner to secure and submit an ECC for the entire Minahang Bayan (Section 9).
Within seven (7) days from receipt of ECC, the Board declares the Minahang Bayan, with required excision from affected permits/contracts/applications; if the Minahang Bayan is not declared within one (1) year from Secretary clearance receipt, the petition is denied (Section 9).
After declaration, the Board posts notice for seven (7) days and publishes once in a local or national newspaper; the Board provides a copy of the declaration to the Bureau within seven (7) days of declaration, and the petitioner shoulders publication cost (Section 9).
The Board accepts applications for small-scale mining contracts immediately after the seven (7)-day posting and one (1)-day publication (Section 9).

Application periods for contract awards

For Minahang Bayan within areas subject of Section 8(e), only applications by small-scale miners whose members are part of the ICC therein are accepted in the first thirty (30) days; only applications by small-scale miners whose members are not part of the ICC but are residents of the province or city where the Minahang Bayan is located are accepted in the next thirty (30) days (Section 9).
For Minahang Bayan outside areas subject of Section 8(e), only applications by small-scale miners residing in the province or city where the Minahang Bayan is located are accepted in the first thirty (30) days (Section 9).

Contract application requirements and filing rules

Small-scale miners organized as individual miners or cooperatives with capacity to contract must file a small-scale mining contract application with the Board for areas situated in a Minahang Bayan (Section 10).
Applications must be filed in five (5) copies and must contain the mandatory requirements in Section 10.
The mandatory requirements include:
- Duly accomplished and notarized application form (Annex B) (Section 10).
- Application fee of PHP 10,000.00 for non-metallic minerals and PHP 20,000.00 for gold, silver and/or chromite, payable to the Regional Office concerned (Section 10).
- Copy of small-scale miners license (Section 10).
- Location map showing geographic coordinates/meridional block(s), boundaries relative to the Minahang Bayan, major environmental features and other projects using NAMRIA topographic map at 1:50,000 or 1:10,000, prepared, signed and sealed by a deputized Geodetic Engineer (Section 10).
- Sketch plan of the proposed contract area at a convenient scale prepared, signed and sealed by a deputized Geodetic Engineer (Section 10).
- Proposed small-scale mining contract (Section 10).
- Application for survey order (Section 10).
- Proposed Two-year Work Program (Annex C) (Section 10).
- PEIMP (Section 10).
- CEMCRR or Certificate of Exemption in lieu of CEMCRR if no past or present mineral resource use or mining-related venture exists (Section 10).
- CDMP (Section 10).
- ASHP (Section 10).
- Sworn declaration stating total area (hectarage) covered by all small-scale mining contract(s)/application(s) in the entire country (Section 10).
Applications with incomplete mandatory requirements are not accepted (Section 10).
Within fifteen (15) days upon receipt, the Board checks the control map for conflicts; if the applied area is totally in conflict, the Board denies; if partially in conflict, it returns for revision and resubmission within fifteen (15) days (Section 10).
Only one (1) people’s small-scale mining contract may be awarded at any one time to a small-scale mining contractor in the entire country (Section 10).

Contract area limits and engineering constraints

The Board determines reasonable size and shape using the meridional block system under Republic Act No. 7942 (Philippine Mining Act of 1995), but the applied area must be not less than 1.25 hectares and not more than 20 hectares per small-scale mining contract (Section 11).
The meridional block is subdivided into 64 parcels at 3.75” of latitude and 3.75” of longitude per parcel, each containing 1.25 hectares, more or less, and a contract area must consist of adjacent and contiguous parcels (Section 11).
The depth or length of a tunnel or adit must not exceed the recommended depth/length by the Director as represented by the Regional Director, considering: cooperative size/capitalization; mineralized area; quantity of mineral deposits; miner safety; environmental impact; and other relevant circumstances (Section 11).

Award of people’s small-scale mining contracts

Upon receipt of a complete application and all pertinent requirements compliance, the Regional Director, as Chairperson of the Board, awards the small-scale mining contract within thirty (30) days (Section 12).
A copy of the contract and supporting documents is forwarded to the Director for information and record (Section 12).

Contract terms, prohibitions, and operational duties

The small-scale mining contract may cover non-metallic minerals, and for metallic minerals it is limited to gold, silver or chromite (Section 13).
The term is two (2) years, renewable for like periods but not to exceed a total term of six (6) years (Section 13).
Renewal requires filing no later than sixty (60) days prior to expiry, and submission of: (1) duly accomplished and notarized application form (Annex B); (2) proof of payment of application fee (PHP 10,000.00 or PHP 20,000.00 depending on mineral); and (3) certification from the Board as to contract compliance, issued not earlier than ninety (90) days before expiration (Section 13).
The contract grants the right to extract and dispose authorized minerals within the contract area for commercial purposes, but the ore produced shall not exceed fifty thousand (50,000) metric tons annually and the ore must be processed in a custom mill (Section 13).
The contractor must:
- Conduct operations in accordance with the Two-year Work Program, PEIMP, ASHP, CDMP, as approved by the Regional Office, and the ECC (Section 13).
- Extract and break materials without explosives, blasting accessories, explosives ingredients, or sophisticated/heavy equipment (Section 13).
- Not resort to hydraulicking or compressor mining at any stage within the contract area (Section 13).
- Not use mercury in any phase of small-scale mining (Section 13).
- Confine small-scale mining to its contract area (Section 13).
- Abide by DAO No. 97-30 (Small-Scale Mine Safety Rules and Regulations) (Section 13).
- Comply with obligations to the holder of a mining permit/contract if applicable (Section 13).
- Sell gold production outputs to the Bangko Sentral ng Pilipinas (BSP) or through authorized buying stations/agents (Section 13).
- Pay all taxes, royalties and/or government production share as provided by law at the time the contract is signed (Section 13).
- Comply with environmental protection and conservation rules (Section 13).
- Submit under oath at the end of each month a detailed production report and an annual financial report to the Board (Section 13).
No small-scale mining contract may be subcontracted, assigned, or otherwise transferred (Section 24).

Mineral processing requirements and custom mills

Small-scale mineral processing must be undertaken only through centralized custom mills located in mineral processing zones under a Mineral Processing License (MPL) (Section 14).
No mercury may be used in mineral processing (Section 14).
Mineral processing zones must be duly designated by the local government unit concerned through the Board and strategically situated inside a Minahang Bayan (Section 15).
Custom mills must be constituted as withholding agents for royalties, production share or other taxes due the government, and must be registered with the Bureau of Internal Revenue (Section 15).
If a custom mill or processing zone is located within areas covered by existing mining applications or permits/contracts, the Board fixes compensation due the applicant/holder (Section 15).
Where private sector cannot establish a custom mill, the Board recommends to the Department through the Director construction if viable (Section 15).
The Department establishes assay laboratories to cross-check custom mill integrity and to render metallurgical and laboratory services to miners (Section 15).

MPL application, fees, and issuance timeline

An application for an MPL is filed with the Board by a qualified person personally or through a duly authorized representative (Section 16).
The Board accepts an MPL application only upon payment of required fees to the Regional Office concerned (Section 16).
The filing fee is PHP 50,000.00 (Section 16).
Applications with incomplete mandatory requirements are not accepted (Section 16).
After paying the filing fee, the applicant submits at least five (5) sets of mandatory requirements, depending on whether the applicant is a corporation/association/partnership/cooperative or an individual (Section 16).
For corporations/associations/partnerships/cooperatives, mandatory requirements include:
- Duly certified Certificate of Registration issued by SEC or authorized agency (Section 16).
- Duly certified Articles of Incorporation/Partnership/Association and By-Laws with a minimum authorized capital of PHP 10,000,000 (Section 16).
- NAMRIA-based location map/sketch plan at 1:50,000 or 1:10,000 (Section 16).
- Feasibility Study prepared and signed by a licensed Metallurgical Engineer, including work programs, plant site, mill/plant layout/design, technology details, antipollution devices/measures, and plant capacity; an existing processing plant may submit a Project Description and detailed financial statement instead of the Feasibility Study, incorporating social and environmental expenditures, taxes and fees paid (Section 16).
- CDMP (Section 16).
- PEIMP (Section 16).
- CEMCRR or Certificate of Exemption in lieu of CEMCRR if no past/present mineral resource use or mining-related venture exists (Section 16).
- Proof of technical competence (Section 16).
- Proof of financial capability, such as latest Audited Financial Statement, Annual Report for the preceding year, and credit line(s) and/or proof of bank deposit(s), with amount not less than project cost (Section 16).
- Certification from EMB and other government agencies on compliance on use of chemicals, if applicable (Section 16).
- Supply contract/agreement with small-scale mining contractors (Section 16).
For individuals, mandatory requirements include:
- NAMRIA-based location map/sketch plan at 1:50,000 or 1:10,000 (Section 16).
- Feasibility Study or, if existing plant, a Project Description and detailed financial statement with social and environmental expenditures, taxes and fees (Section 16).
- CDMP (Section 16).
- PEIMP (Section 16).
- CEMCRR or Certificate of Exemption where applicable (Section 16).
- Proof of technical competence (Section 16).
- Proof of financial capability such as income tax return of the preceding year and proof of bank deposit and/or credit line in an amount not less than project cost (Section 16).
- Chemical use compliance certification where applicable (Section 16).
- Supply contract/agreement with small-scale mining contractors (Section 16).
Upon evaluation of mandatory requirements, the Board may approve the MPL application (Section 17).
After approval, the Board notifies the applicant to cause registration within fifteen (15) days from receipt of written notice; registration is effective only upon payment of required fees (Section 17).
The Board officially releases the MPL after registration (Section 17).
Failure to register within the prescribed period is a ground for cancellation (Section 17).

MPL terms, responsibilities, and cancellation link

The MPL is coterminous with the small-scale mining contracts issued in the Minahang Bayan (Section 18).
The processor must assume full responsibility and be liable for damages to private/public property occasioned by operations under the MPL (Section 18).
The processor must submit applicable production and activity reports prescribed in Chapter XXIX of DAO No. 2010-21, and the Board may conduct on-site validation subject to required verification fees (Section 18).
Operations must be conducted in accordance with the Feasibility Study, PEIMP, ASHP, CDMP and ECC (Section 18).
Operations must comply with Republic Act No. 7076 and this Order (Section 18).
The processor must respect women workers’ rights to participate in policy and decision-making processes affecting rights and benefits and must not discriminate based on gender (Section 18).
The processor must pay fees, taxes and other financial obligations per applicable laws (Section 18).
The processor must give preference to Philippine goods and services of comparative quality and cost (Section 18).
The processor must utilize the best available appropriate and efficient mineral processing technology (Section 18).
The processor must comply with other provisions of Republic Act No. 7076 and this Order (Section 18).
The MPL is subject to cancellation as provided in Section 31 (Section 18).
Withdrawal from the MPL does not release the processor from all financial, environmental, legal, and/or fiscal obligations (**