Definitions
- Defines key terms such as Active Mining Area, Ancestral Land, Board (Provincial/City Mining Regulatory Board), Co-Production Agreement, DENR (Department of Environment and Natural Resources), Director, Environmental Impact, Equipment Utilization Cost, Existing Mining Right, Government Production Share, Investment, Joint Venture Agreement, Labor Cost, Labor-Intensive, License, Mineralized Areas, Mineral Lands, Mineral Production Sharing Agreement (MPSA), Mining Plan, Private Lands, Public Lands, Processor, Secretary, Single Mining Unit, Small-scale Mining and Miners, Small-scale Mining Contract and Contractor, Traditional Small-scale Miners.
- Provides specific definitions essential for implementing the law and regulations.
Licensing Requirements
- Only Filipino citizens of legal age can apply for a small-scale mining or processing license.
- Application involves submission of forms, small fees, and residency certification.
- Licenses are issued as identification cards for a two-year term, renewable biennially.
Declaration of People’s Small-Scale Mining Areas
- The Board may declare onshore areas suitable for small-scale mining.
- Eligible areas include lands actively mined before 1987, certain public lands not under existing rights, some private lands, ancestral lands with consent, and areas occupied by traditional miners with community approval.
- Cultural heritage laws must be complied with.
Procedures for Declaration
- Process involves petition filing, technical and economic evaluation, notice issuance for clearance and consent, public posting, and declaration after review.
- Opposition or protests to declarations must be filed within fifteen working days following publication.
- The Board resolves disputes; its decision may be appealed to the DENR Secretary.
Registration of Small-Scale Miners
- All small-scale miners must register with the Board.
- Registration requires a valid small-scale miner’s license and proof of residency.
Application and Awarding of Small-Scale Mining Contracts
- Registered miners can form cooperatives to apply for mining contracts.
- Applications require fees, incorporation documents, and geographic data of the area.
- The Board evaluates applications and resolves conflicts before awarding contracts.
- Contracts are for two years, renewable subject to compliance.
Contract Terms and Obligations
- Mining activities shall follow approved plans.
- Compliance with safety, environmental rules, payment obligations, and reporting is mandatory.
- The contractor is responsible for worker safety and mine environmental conditions.
Worker Health and Safety
- Contractors must provide sanitation, clean water, manage hazardous substances properly, and report accidents promptly.
Environmental Protection
- Responsible waste management and mine site rehabilitation are required.
- Compliance with environmental laws protecting water and other natural resources is mandatory.
Rights Conferred
- Easement rights for access to facilities necessary for mining, subject to payment.
- Rights of existing claimowners include exemptions, access for tests, and royalty payments.
- Private landowners may negotiate agreements and are entitled to actual damages and royalties.
- Small-scale miners are granted non-transferable rights to mine.
- Ownership of mill tailings lies with the small-scale mining contractor with preemptive purchase rights for claimowners or operators.
Supervision
- DENR Secretary holds direct supervision and control.
- The Regional Director oversees recommendations on mining scope, rights to facilities, area reversion, and compliance.
- The Provincial/City Mining Regulatory Board declares areas, awards contracts, formulates regulations, settles disputes, and performs necessary administrative functions.
- The Board comprises government, mining sector, and NGO representatives.
Fiscal and Regulatory Provisions
- Small-scale contractors must pay income tax, value-added tax, real property tax where applicable, government production shares, and other applicable fees.
- Payment includes application and occupation fees.
- A Small-Scale Mining Protection Fund supports training, safety, rescue teams, and accident relief.
- Contracts may be rescinded and fines imposed for violations, non-payment, abandonment, or government ejectment.
- Areas may revert to the state for economic, safety, environmental, or security reasons with possible compensation or right of first refusal to contractors.
Assistance to Small-Scale Miners
- The DENR coordinates with agencies to provide cooperatives’ organization, technical/financial support, processing and marketing assistance, ancillary livelihood generation, and health and safety attention.
Sale of Gold and Custom Mills
- All gold produced by small-scale miners must be sold to the Central Bank or authorized representatives at competitive global prices, with a minimum bar weight of 300 grams.
- Custom mills must operate in designated processing zones, comply with environmental and safety standards, and act as withholding agents.
- The government may establish custom mills if private sector initiatives fail.
Penal Provisions
- Violations of the Act or Rules subject offenders to imprisonment of at least six years and confiscation of mining equipment.
Transitory and Final Provisions
- Small-scale miners in operation before August 1, 1987, shall not be removed provided compliance with the Order.
- Repeal of conflicting orders and severability clauses ensure the Order’s applicability and constitutionality.
- The Order takes effect fifteen days after publication.
This comprehensive explanation captures the key aspects of the Republic Act No. 7076 implementing rules and regulations for the People’s Small-Scale Mining Act of 1991 as promulgated by DENR Administrative Order No. 34, Series of 1992.