Ownership of Minerals and Mineral Lands
- Minerals and mineral lands are the property of the State.
- Only Philippine citizens or corporations/associations with at least 60% Filipino ownership may exploit mineral lands.
- Ownership of surface land does not include rights to minerals below.
- Minerals are excluded from agricultural patents and Torrens titles.
- Inorganic substances (except soil supporting organic life and certain construction materials) are minerals.
- Mineral lands must have sufficient minerals to justify extraction.
- Mining on public and private lands follows existing laws.
- Coal, petroleum, and mineral oils are governed by special laws.
- The President may set apart mineral land reservations and can open or close them to mining after proclamation.
- Land reserved for non-mining uses protects existing mining rights within its boundaries.
Mineral Land Classification
- First group: Metals/metalliferous ores.
- Second group: Precious stones.
- Third group: Fuels (peat, coal, mineral oils, natural gas).
- Fourth group: Salines and mineral waters.
- Fifth group: Building stones, clays, fertilizers, other nonmetals.
- Aerolites from space are considered minerals.
- Mineral lands may belong to multiple groups.
- Unlisted or newly discovered minerals to be classified by law or regulation.
Prospecting and Exploration
- Prospectors may work for themselves or others with proper powers of attorney.
- Government officials involved in mineral administration may not prospect or hold mineral lands.
- Prospecting on private lands requires owner’s permission or court-set compensation.
- Prospecting prohibited in closed mineral reserves, patented claims, previously claimed discovered minerals, and near certain public or private structures.
Mining Claims and Location
- Mining claims require discovery of minerals.
- Lode claims cover veins or deposits in place; placer claims cover loose mineral deposits.
- Priority of discovery and continuous occupation determine claim rights.
- Claims must be located within 30 days and recorded within 60 days or deemed abandoned.
- Maximum claim areas vary by mineral group and type of deposit.
- Restrictions on maximum number of claims held on the same vein or ground.
- Detailed physical marking requirements for claims, including posts, corner marks, and boundary blazes.
- Declarations of location for lode and placer claims include detailed legal descriptions, notices, and affidavits.
- Recorders keep detailed records, including certificates of filing.
- Appeals and disputes may be resolved administratively first, then judicially.
Survey and Lease
- Bureau of Mines oversees surveying through designated mineral surveyors.
- Official surveys mark claim corners with permanent monuments.
- Lease applications filed with Bureau of Mines must include compliance evidence and technical descriptions.
- Lease applications on private land require owner’s written consent or court authorization with compensation or bond.
- Lease applications must be filed within two years of claim recording or the claim is abandoned.
- Multiple adjoining claims may be combined under one lease within maximum area limits.
- Applications must provide detailed information about applicants and ownership structure.
- Publication of lease application required; adverse claims trigger suspension of proceedings until resolved.
- Leases last up to 25 years, renewable once for up to 50 years total.
- Lessee may surrender lease if mining becomes unprofitable.
- Surface rights not necessary for mining may be reserved or leased by the government.
Lease Rights and Obligations
- Lessees have rights to extract all minerals of the leased group within claimed boundaries, vertically downward.
- Rights include easements for mining operations.
- Lessees must pay rentals, royalties, and taxes as prescribed.
- Rental fee: One peso per hectare annually; shared between province and municipality or city.
- Royalties generally 1.5% of market value, with graduated rates for gold based on output value and allowed deductions.
- Real estate tax applies to improvements but excludes equipment.
- Failure to pay fees for 90 days causes lease lapse and land reversion.
- Annual labor or improvements required on claims to avoid abandonment.
- Annual affidavit of assessment work must be filed.
Rights to Timber, Water, and Easements
- Gratuitous right to cut timber within claims for mining use, subject to forestry rules and no conflicting concession.
- Gratuitous water rights for mining development consistent with water laws; government regulates to prevent monopoly.
- Rights of way granted for roads, railroads, utilities, tunnels, or facilities necessary for mining; eminent domain procedures apply if agreements cannot be reached.
Employment and Licensing
- Minimum age restrictions for mine workers: no workers under sixteen, no underground work for males under eighteen and females.
- Supervisory personnel must be licensed mining engineers or foremen certified by a Board.
Administration and Appraisals
- Secretary of Agriculture and Commerce oversees mining administration via Bureau of Mines.
- Bureau of Mines appraises mines for capital formation or registration; no mine may be used as an asset without appraisal.
Penalties
- False statements under oath punishable as perjury.
- Fraudulent mining claims or false representation punishable under the Revised Penal Code.
- Tampering with markers or mining property subject to fines and compensation.
- Theft of minerals punishable as theft under Penal Code.
- Mineral "salting" and deception punishable by imprisonment.
- Pollution or willful damage causing danger subject to fines and compensation.
- Interference with water rights or mining operations punishable by fines.
- Destruction or arson of mines punishable under the Penal Code with compensation liability.
- Obstruction of mining officials subject to fines.
Other Provisions
- Mineral lands excluded from grants to provinces, districts, or municipalities for other public purposes.
- Foreigners from the US enjoy the same rights during the Commonwealth period.
- Severability clause ensures the remaining provisions stand if any section is invalidated.
- Previous inconsistent laws repealed.
- The Act took effect upon approval on November 7, 1936.