Implementing Rules for Philippine Mining Act

Policy, principles, and objectives

All mineral resources in public and private lands within the territory and exclusive economic zone of the Republic of the Philippines are owned by the State.
The State must promote the rational exploration, development, utilization, and conservation of mineral resources through the combined efforts of Government and private sector while safeguarding the environment and protecting the rights of affected communities.
Implementation must follow sustainable development, meeting present needs without compromising the ability of future generations.
Mineral use must follow sustainable mining requirements that:
- Treats mining as a temporary land use leading to optimum post-mining land use through progressive and engineered mine rehabilitation.
- Requires mining to be guided by current best practices in environmental management to reduce impacts and effectively protect the environment.
- Ensures Government and community wealth from mining leads to other wealth-generating opportunities and environment-responsible endeavors.
- Applies due and equal emphasis on economic and environmental considerations, and on health, safety, social and cultural concerns.
- Effects conservation through recycling and through technological efficiency of mining operations.
Objectives include:
- Promoting rational exploration and development under the full control and supervision of the State.
- Enhancing minerals’ contribution to economic recovery and national development while protecting the environment and affected communities.
- Encouraging investment to assure a steady minerals supply and generate wealth through taxes, employment, foreign exchange, and regional development.
- Promoting equitable access and fair sharing of benefits and costs.
- Enabling Government and investor to recover their share to attain sustainable development with environmental regard, social equity, and fair return of investment.
Investments in commercial mining are promoted consistent with State policies and the principles stated.

Definitions of key terms

“Act” refers to Republic Act No. 7942 (the Philippine Mining Act of 1995).
“Ancestral Lands” cover lands exclusively and actually possessed, occupied, or utilized by Indigenous Cultural Communities since time immemorial, as defined and delineated by law.
“Annual Environmental Protection and Enhancement Program (AEPEP)” means a yearly environmental management work plan based on the approved environmental protection and enhancement strategy.
“Archipelagic Sea” covers waters within the baseline of an archipelago excluding internal waters such as roadsteads, lakes, and rivers.
“Block or Meridional Block” means an area bounded by one-half (1/2) minute of latitude and one-half (1/2) minute of longitude, containing approximately eighty-one (81) hectares.
“Built-up Areas” are portions of land within a municipality or barangay actually occupied as residential, commercial, or industrial areas as embodied in a duly approved land use plan by the appropriate Sanggunian.
“Bureau” means the Central Office of the Mines and Geosciences Bureau under the Department.
“Commercial Production” means production sufficient to sustain economic viability of mining operations reckoned from the date of commercial operation as declared by the Contractor or stated in the feasibility study, whichever comes first.
“Community Relations Record” is proof of an applicant’s community relations, including sociocultural sensitivity, past relations, cultural appropriateness, and social acceptability of resource management strategies, except it is not required where the applicant has no previous community-relations experience in resource use ventures locally or internationally.
“Contiguous Zone” is measured twenty-four (24) nautical miles seaward from the baseline.
“Contract Area” is the land or body of water delineated under a Mineral Agreement or FTAA, subject to relinquishment obligations and defined by longitude and latitude.
“Contractor” means a Qualified Person acting alone or in consortium and who is a party to a Mineral Agreement or FTAA.
“Critical Watershed” is a drainage area supporting existing and proposed hydroelectric power, domestic water supply, geothermal power, and irrigation works, requiring immediate rehabilitation and protection to minimize soil erosion, improve water yield, and prevent flooding.
“DENR Project Area” means portions of land covered by an existing DENR project such as IFMA, CFMA, CFP, FLMA, and ISFP.
“Department” means the Department of Environment and Natural Resources.
“Development” is work to explore and prepare an orebody or mineral deposit for mining, including construction of necessary infrastructure and related facilities.
“Development Stage” (used exclusively for FTAAs) covers the period to prepare an explored orebody or deposit for mining including construction of necessary infrastructure and related facilities.
“Director” means the Director of the Bureau.
“Ecological Profile or Eco-Profile” presents environmental setting, environmental quality status, and assimilative capacity evaluation.
“Effluent” means wastewater (treated or untreated) and waste liquid flowing out of mining operations, wastewater treatment plants, or tailings disposal systems.
“Environment” includes physical factors and the total environment, including land, water, air, atmosphere, climate, sound, odors, tastes, biological factors, and socioeconomic, social, cultural, political, and historical factors.
“Environmental Audit” is a systematic, documented verification process to determine whether specified environmental activities/events/conditions/management systems/information conform with audit criteria.
“Environmental Compliance Certificate (ECC)” certifies that based on representations and reviewed and validated documents, the project will not cause significant negative environmental impact, that EIA system requirements are complied with, and that the proponent commits to implement its approved Environmental Management Plan/mitigation measures.
“Environmental Impacts” are probable effects or consequences on physical, biological, and socioeconomic environments (direct/indirect, cumulative, positive/negative).
“Environmental Impact Assessment (EIA)” is the process of predicting likely environmental consequences and designing preventive, mitigating, and enhancement measures.
“Environmental Impact Statement (EIS)” is the studies document on environmental impacts, containing all relevant information and details on impacts and mitigating/enhancement measures.
“Environmental Management Record” is proof of technical and financial capability to undertake environmental protection/restoration/rehabilitation and past environmental regard, except it is not required for applicants with no previous resource use ventures locally or internationally.
“Environmental Protection and Enhancement Program (EPEP)” is the comprehensive environmental management plan for the life of the mining project, based on which AEPEPs are implemented.
“Environmental Work Program (EWP)” is the comprehensive environmental management plan for exploration period implementation.
“Exclusive Economic Zone” is measured from the baseline to two hundred (200) nautical miles offshore.
“Exploration” includes searching/prospecting by geological, geochemical and/or geophysical surveys, remote sensing, test pitting, trenching, drilling, shaft sinking, tunneling, or other means to determine existence, extent, quality, quantity, and feasibility of profitable mining.
“Financial or Technical Assistance Agreement (FTAA)” is a contract involving financial or technical assistance for large-scale exploration, development, and utilization.
“Force Majeure” includes specified events beyond reasonable control such as war, rebellion, insurrection, riots, blockade, sabotage, embargo, strike, epidemics, earthquake, storms, floods, adverse weather, explosion, fire, adverse action by Government, act of God, and other public enemy causes.
“Foreign-owned Corporation” covers a corporation/partnership/association/cooperative where less than fifty percent (50%) of the capital is owned by Filipino citizens.
“Government” means the Government of the Republic of the Philippines.
“Gross Output” is actual market value without deductions for mining/processing/refining/transport/handling/marketing expenses, except that for C.I.F. sales abroad, actual ocean freight and insurance are deducted; and for certain concentrates not traded in commodity exchanges, market value is based on world price quotations of refined mineral content after deducting specified conversion charges.
“Ground Expenditures” cover field and laboratory expenditures for searching and delineating new/extended orebodies in an approved FTAA area, including social preparation, pre-feasibility studies, and reasonable administrative expenses, and expenses for specified exploration methods; community/environment-related expenses during exploration are part of ground expenditures.
“Indigenous Cultural Community” is a tribe/group of indigenous Filipinos continuously living on communally-bounded and defined land since time immemorial and preserving common bonds of language, customs, traditions, and distinctive cultural traits, as defined and delineated by law.
“Initial Environmental Examination (IEE)” is required for projects in Environmentally Critical Areas listed under Presidential Proclamation No. 2146 (Series of 1981) and other areas the President proclaims as environmentally critical under Section 4 of P.D. No. 1586.
“Lessee” is a person or entity with a valid and existing mining lease contract.
“Lessee,” “Mining Permits,” “Mining Right,” “Mining Application,” and other defined terms are established throughout the section, including:
- “Minerals” excludes energy materials such as coal, petroleum, natural gas, radioactive materials, and geothermal energy.
- “Mineral Agreement” includes Mineral Production Sharing Agreement, Co-Production Agreement, or Joint Venture Agreement.
- “Mineral Reservations” are areas established and proclaimed by the President upon recommendation of the Director through the Secretary, including submerged lands within contiguous zone and EEZ.
- “Mining Operations” include exploration, feasibility study, development, and utilization.
- “Pollution” covers any alteration/discharge/emission that renders resources harmful/detrimental/injurious or adversely affects use for legitimate purposes.
- “Qualified Person” requires Filipino legal-capacity citizens or entities organized for mining with technical and financial capability, with at least sixty percent (60%) Filipino ownership; a legally organized foreign-owned corporation is deemed a Qualified Person only for exploration permit, FTAA, or mineral processing permit purposes.
- “Quarry Resources” and the exclusions on metallic content and economically workable quantities are defined.

Department and bureau powers; LGU role

The Department is the primary Government agency responsible for conservation, management, development, and proper use of State mineral resources, including those in reservations, watershed areas, and public domain lands.
The Department has authority to:
- Promulgate rules and regulations to implement the Act.
- Enter into Mineral Agreements on behalf of Government or recommend FTAA to the President upon Director endorsement.
- Enforce applicable related laws (including the Administrative Code and Civil Code).
- Exercise other authority vested by the Act and rules.
The Secretary may delegate authority and powers and functions to the Director.
The Mines and Geosciences Bureau implements the Act and is the responsible line bureau under Section 100 of the Act.
The Bureau includes a Central Office and other offices established through pertinent Secretary administrative orders, with defined transfers from earlier DENR administrative orders.
The Bureau has authority to:
- Administer and dispose of mineral lands and resources.
- Conduct research and exploration surveys, but for areas closed to mining applications it conducts research and development studies.
- Confiscate surety, performance, and guaranty bonds after due process and notice of violation.
- Recommend grant of Mineral Agreements and endorse FTAA grants for Qualified Persons, and monitor Contractor compliance under an efficient monitoring system.
- Cancel or recommend cancellation of mining rights, applications, and claims after due process for noncompliance.
- Deputize PNP/barangay members, registered and accredited NGOs, or Qualified Persons to police mining activities when necessary.
- Assist the Environmental Management Bureau and/or DENR Regional Office in EIA processing for mining projects.
- Exercise other authority vested by the Act and these implementing rules.
The Director may delegate Bureau authority and powers and functions to the Regional Director.
Local Government Units (LGUs) have roles in mining projects within their jurisdictions, including:
- Ensuring compliance with public notice, public consultation, and public participation.
- Coordinating with the Bureau/Regional Office and, subject to valid mining rights, approving applications for permits for small-scale mining, sand and gravel, quarry, guano, gemstone gathering, gratuitous, and industrial sand and gravel permits not exceeding five (5) hectares.
- Receiving their legally provided share in wealth generated from mineral utilization.
- Facilitating community informed decision on social acceptability of a mining project as an ECC requirement.
- Participating in monitoring through the Multipartite Monitoring Team under Section 185.
- Participating in Mine Rehabilitation Fund Committee under Sections 182 to 187.
- Receiving social infrastructure and community development projects for host and neighboring communities under Chapter XIV.
- Acting as mediator between Indigenous Cultural Communities and Contractors when requested.
- Coordinating DENR and Bureau implementation in their jurisdictions, including coordination through offices of the Southern Philippines Council for Peace and Development (SPCPD) and Autonomous Region of Muslim Mindanao (ARMM) and similar future units.
- Performing other powers as provided by applicable laws, rules, and regulations.

Mineral reservations, government reservations, royalties

The Director must conduct public hearings for establishing, disestablishing, or modifying a Mineral Reservation, allowing all concerned sectors/communities and interested NGOs/POs and LGUs to air views.
Public notice must be made by publication in a newspaper of general circulation in the province and by posting in all affected municipalities and barangays at least thirty (30) days before the hearings.
The Director’s recommendation must be in writing stating grounds, and the recommendation must be published after submission to the Secretary.
The Secretary cannot act on the Director’s recommendation unless strict compliance with publication requirements has been made.
When national interest so requires, the President may set aside and establish an area as a Mineral Reservation subject to valid and existing rights, especially to preserve strategic raw materials for industries critical to national development or minerals for scientific, cultural, or ecological value.
The Secretary must cause periodic review of existing Mineral Reservations by detailed geological, mineral, and ecological evaluation; the President may alter/modify boundaries or revert areas to public domain without prejudice to prior existing rights.
In the proclamation of Mineral Reservations, all valid and existing mining rights must be respected.
For Government Reservations, the Department may directly undertake exploration, development, and utilization; if the Department cannot, a Qualified Person may undertake these activities.
The right to explore/develop/utilize Government Reservation minerals is awarded by the President on terms and conditions recommended by the Director and approved by the Secretary, only after exploration reveals economically potential deposits.
The Permittee that undertook exploration is given priority for the subsequent rights grant.
Mining operations in Mineral Reservations may be undertaken by the Department or through a Qualified Person through:
- Exploration Permit;
- Mineral Agreement;
- FTAA;
- Small-Scale Mining Permit; and
- Quarry Permit.
Mining operations in Government Reservations must first be undertaken through an Exploration Permit (subject to limitations) before opening for Mineral Agreement/FTAA applications or other mining applications.
Applications for Exploration Permit/Mineral Agreement/FTAA/Quarry Permit within Mineral and Government Reservations are governed by the implementing rules’ Chapters V, VI, VII, and VIII.
Small-scale mining within Mineral Reservations is governed by MRDB Administrative Order No. 3 (Series of 1984) and MRDB Administrative Order No. 3-A (Series of 1987), as amended, and applicable provisions.
Small-scale mining cooperatives under R.A. No. 7076 receive preferential right to apply for a small-scale mining contract covering a maximum aggregate area of twenty-five percent (25%) of a Mineral Reservation subject to valid and existing mining rights.
Contractors/permit holders/lessees extracting minerals/mineral products from Mineral Reservations must pay royalty to the Bureau of not less than five percent (5%) of the market value of gross output, exclusive of all other taxes.
Of the royalty, ten percent (10%) and of other Government revenues such as administrative, clearance, exploration, and other related fees, ten percent (10%), accrue to the Bureau as a Trust Fund and must be deposited in a Government depository bank to be allotted for special projects and other administrative expenses for exploration, development, and environmental management of minerals in Government Reservations.

Scope, open/closed areas, ancestral lands

Areas open to mining applications include:
- Public or private lands not covered by valid and existing mining rights and mining applications.
- Lands covered by expired/abandoned/canceled mining/quarrying rights.
- Mineral Reservations.
- Timber or forest lands as defined in existing laws.
Areas may be closed to mining applications or conditionally opened under the Act and State policies.
Areas closed to mining applications include:
- Areas covered by valid and existing mining rights and mining applications (subject to stated subsection conditions).
- Old growth/virgin forests, proclaimed watershed forest reserves, wilderness areas, mangrove forests, mossy forests, national parks, provincial/municipal forests, tree parks, greenbelts, game refuge, bird sanctuaries, marine reserves/marine parks and tourist zones under law and NIPAS components under R.A. No. 7586, including areas expressly prohibited under those laws and Department Administrative Order No. 25, Series of 1992, and other laws.
- Areas excluded by the Secretary based on environmental impact assessment and implications on sustainable land uses, such as built-up areas and critical watersheds, when the location and boundary are specified by an appropriate barangay/municipal/city/provincial ordinance.
- Areas expressly prohibited by law.
Mining applications over closed areas are reviewed and, after due process, those areas may be excluded from applications.
Areas may be conditionally opened subject to conditions, including:
- Military and other Government Reservations upon prior written clearance by the jurisdictional Government agency.
- Areas near/under public or private buildings, cemeteries, archaeological and historic sites, bridges, highways, waterways, railroads, reservoirs, dams, or other infrastructure/public works, and plantations or valuable crops, upon written consent from the concerned Government agency or private entity subject to Bureau technical evaluation and validation.
- Areas covered by FTAA applications opened for quarry resource mining applications under Section 53, upon written consent of FTAA applicants, except sand and gravel applications which require no such consent.
- Areas covered by small-scale mining under R.A. No. 7076/P.D. No. 1899 upon prior consent of small-scale miners, with a royalty payment for utilized minerals agreed by parties and forming a Trust Fund for socio-economic development of the concerned community.
- DENR Project Areas upon prior consent from the concerned agency.
The Bureau must conduct periodic review of closed areas to determine continued closure consistency with national interest and recommend to the Secretary for appropriate action.
Mineral Agreements, FTAAs, and mining permits cannot be granted in areas subject of CADC/CALC or in areas verified as actually occupied by Indigenous Cultural Communities under time immemorial possession unless prior consent is obtained.
Prior consent must be prior informed consent obtained as far as practicable under customary laws, meeting minimum public notice requirements through various media and sector consultation/community assembly announced or posted at least one (1) month before the assembly.
The informed consent process must be free from fraud, external influence, and manipulations.
When prior informed consent is secured, concerned parties must agree on royalty payment to Indigenous Cultural Communities of not less than one percent (1%) of gross output.
Community development expenses may be credited to or charged against the agreed royalty.
The Bureau/concerned Regional Office, concerned Department offices, LGUs, NGOs/POs, and the Office of the Northern/Southern Cultural Communities may act as mediators in negotiating the royalty.
If there is disagreement on royalty, the Department must resolve it within three (3) months.
The royalty forms part of a Trust Fund for Indigenous Cultural Communities’ socio-economic well-being and must be managed and utilized by the Indigenous Cultural Communities under a management plan in the ancestral land/domain area.
Pending enactment by Congress of a law on ancestral lands/domains, implementation follows Department Administrative Order No. 2, Series of 1993, and other pertinent laws.

Exploration permits: term, area limits, filings

Exploration activities may be undertaken directly by the Bureau or on behalf of the Contractor subject to reimbursement of all expenditures.
If the Bureau cannot undertake exploration in specified areas as determined by the Director, exploration may be undertaken by a Qualified Person.
The term of an Exploration Permit is two (2) years from issuance, renewable for like periods but not to exceed a total term of six (6) years.
Renewal is not allowed unless the permittee complied with all terms and conditions and has not been found guilty of violation of any provision of the Act and these rules.
Maximum area a Qualified Person may apply for or hold under an Exploration Permit is subject to relinquishment under Section 22(f).
Maximum area limits for Exploration Permits:
- Onshore, in any one province:
  - Individuals: twenty (20) blocks (approx. 1,620 hectares).
  - Corporations/partnerships/associations/cooperatives: two hundred (200) blocks (approx. 16,200 hectares).
- Onshore, in the entire Philippines:
  - Individuals: forty (40) blocks (approx. 3,240 hectares).
  - Corporations/partnerships/associations/cooperatives: four hundred (400) blocks (approx. 32,400 hectares).
- Offshore, in the entire Philippines, beyond five hundred meters (500 m) from the mean low tide level:
  - Individuals: one hundred (100) blocks (approx. 8,100 hectares).
  - Corporations/partnerships/associations/cooperatives: one thousand (1,000) blocks (approx. 81,000 hectares).
A Qualified Person applies for an Exploration Permit (MGB Form No. 5-1) with the concerned Regional Office, except offshore Exploration Permit applications which are filed with the Bureau.
Offshore Exploration Permit applications require payment of required fees (Annex 5-A) and submission of five (5) sets of mandatory requirements; inland applications similarly require fees and specified requirements.
Mandatory requirements include:
- A location map/sketch plan with geographic coordinates/meridional blocks and boundaries relative to major environmental features and other projects, prepared per NAMRIA topographic map at 1:50,000, signed and sealed by a deputized Geodetic Engineer.
- A Two-year Exploration Work Program (MGB Form No. 5-4) duly prepared, signed, and sealed by a licensed Mining Engineer or Geologist.
- When applicable, a satisfactory Environmental Management Record and Community Relations Record as determined by the Bureau in consultation with the Environmental Management Bureau and/or the Department Regional Office, with detailed guidelines to be specified by the Secretary on Director recommendation.
- An Environmental Work Program (MGB Form No. 16-1 or MGB Form No. 16-1A) under Section 168.
- Proof of technical competence of technical personnel, including curricula vitae and track records, in accordance with submitted Exploration and Environmental Work Programs.
- Proof of financial capability including specified documents for individuals and for entities (latest audited financial statement/annual report where applicable, credit lines, bank guarantees, or similar negotiable instruments).
- SEC or authorized agency-certified Articles of Incorporation/Partnership/Association, By-Laws, and Certificate of Registration (for entities).
- A declaration of total area covered by approved/pending Exploration Permits/applications.
- Other supporting papers the Bureau/Regional Office may require or the applicant may submit.
Offshore-specific requirements include:
- Survey vessel/platform information (name, port of registry, tonnage, type, class), with timelines for foreign vessels and clearances.
- Certification from NAMRIA Coast and Geodetic Survey Department that the Exploration Work Program was registered for updating “Notice to Mariners,” with a list of safety measures.
- Agreements to identify installations/vessels/crafts to other vessels within reasonable distance, to notify the Bureau thirty (30) calendar days before removing scientific installations/equipment, and to allow Bureau authorized personnel and Philippine Coast Guard and other authorized persons to board vessels during reasonable hours while within the EEZ.
If exploration was conducted in foreign countries, the Department verifies relevant requirements through Philippine Embassy/Consulate offices in such countries.
If the applied area covers two (2) or more Regional Offices, the application is filed with the Regional Office where the larger portion is located, with copies furnished to other concerned Regional Offices within three (3) working days from filing.
Regional Offices must regularly provide the Bureau a consolidated map and status report of Exploration Permit applications filed in their jurisdiction.

Area status, notice, posting, and objections

Within fifteen (15) working days from receipt of the Exploration Permit application, the Bureau (for areas within Mineral Reservations) or the concerned Regional Office (outside Mineral Reservations) must check control maps to determine whether the area is free/open for mining applications.
The Regional Office transmits a copy of the location map/sketch plan to concerned Department sector(s), with copies furnished to concerned municipalities/cities and other relevant government offices for information.
After applicant is notified of transmittal, it must secure necessary area status/consent/clearance from Department sector(s) and/or Government agency(ies).
Department sector(s) must submit area status/consent/clearance within thirty (30) working days from receipt of notice, and must not deny clearance/consent unreasonably without legal and/or technical basis.
If the application covers areas under two (2) or more Regional Offices, the Regional Office(s) covering the lesser portions must follow the same procedure.
If consent/clearance is denied in reservations/reserves/project areas under Department/Bureau/Regional Office jurisdiction, the applicant may appeal to the Office of the Secretary.
If the area is open for mining applications, the Bureau/Regional Office must issue written notice to the applicant to pay the corresponding clearance fee (Annex 5-A).
If a portion of the area applied for is not open, the Regional