Mining Act - Conservation and Development

Core definitions and interpretive rules

Section 2 provides that “person,” “holder,” “occupant,” “locator,” “licensee,” “lessee,” “permittee,” and “owner” include an individual, corporation, sociedad anomina, limited partnership, and unincorporated association.
Section 2 provides that words in the singular include the plural, and in the plural include the singular.
Section 2 defines “ton” to mean a short ton of nine hundred seven and two tenths (907.2) kilograms.

Ownership of minerals and mineral lands

Section 3 limits the disposition, exploitation, development, or utilization of mineral lands of the public domain and minerals belonging to the State to (a) citizens of the Philippines, or (b) corporations/associations at least sixty per centum of whose capital is owned by citizens, subject to existing rights at the time the constitutional government was inaugurated.
Section 4 provides that ownership of land for agricultural, industrial, commercial, residential, or any non-mining purpose does not include ownership of minerals or the right to extract or utilize them.
Section 5 excludes from public agricultural land patents the minerals included within areas covered by such patents, for the purpose of mineral extraction.
Section 6 excludes from Torrens titles the minerals included within areas covered by such titles, for the purpose of mineral extraction.
Section 7 treats all inorganic substances found in nature in solid, liquid, gaseous, or any intermediate state as minerals under this Act, except (a) soil supporting organic life and (b) ordinary earth, gravel, sand, and stone used for building or construction purposes (whose disposition is governed by Act No. 3077 as amended by Act No. 3852).
Section 8 defines mineral lands as lands where minerals exist in sufficient quantity or quality to justify necessary extraction expenditures.
Section 9 provides that exploitation of public and private lands for mining is governed by existing laws and rules/regulations that may be promulgated thereunder.
Section 10 states that valuable mineral deposits in public or private land not closed to mining location are free and open to exploration, occupation, location, and lease by qualified Philippine citizens of legal age or by qualified associations/corporations, requiring at least sixty per centum citizen ownership at all times for such associations/corporations.
Sections 11–14 govern the creation, closure, modification, and withdrawal of mineral reserves:
- Section 11 authorizes the President, upon recommendation of the Secretary of Agriculture and Commerce, to set apart mineral land reservations and declare their boundaries by proclamation, and thereafter open/close them to mining location or lease as the President deems wise, including the power (with concurrence of the National Assembly) to alter/modify boundaries or revoke proclamations, with revocation making the area part of the public domain as if no proclamation had been made.
- Section 11 authorizes the President by proclamation to declare a mineral reserve closed to mining location.
- Section 11 keeps mineral reservations set aside by the Chief Executive prior to approval of this Act in full force and effect and to be administered under this Act.
- Section 12 restricts disposal of lands after proclamation of a mineral reserve that is not proclaimed closed to mining location to mining purposes only as provided in the Act.
- Section 13 preserves mining location/lease rights of existing holders within newly created reserves for non-mining purposes.
- Section 14 authorizes withdrawal of lands from non-mining reservations if found more valuable for mineral contents than the original reservation purpose, resulting in reversion to the public domain subject to this Act.
Sections 15–23 classify mineral lands into groups and define covered minerals:
- Section 15 classifies leased mining lands into five groups: metals/metalliferous ores, precious stones, fuels, salines and mineral waters, and building stone/clays/fertilizers/other nonmetals.
- Sections 16–20 define the specific content of each group and provide examples of included minerals/substances.
- Section 21 treats aerolites or other bodies from sidereal space as minerals, with disposition determined by regulations.
- Section 22 allows classification of mineral lands into more than one group based on nature and uses.
- Section 23 provides for classification by law or regulations of minerals not specifically mentioned, including newly discovered ones.

Rights to prospect and locate

Section 24 allows prospectors to prospect for themselves or for others (qualified to locate mining claims and acquire leases under this Act), and requires a written power of attorney that is acknowledged and recorded with the declaration of location in the mining recorder’s office; it also requires recording but one power of attorney per province or mining district regardless of the number of claims located by the prospector under the same principle.
Section 25 prohibits executive/other government employees and officers whose duties relate to administration or disposition of mineral resources from prospecting, locating, leasing, or holding mineral lands directly or indirectly in the Philippines.
Section 26 allows prospecting within public lands and private lands subject to the Act’s rules, and restricts private-land prospecting to the period of one year from the effective date of this Act and only by the private land owner during that period.
Section 27 governs prospecting on private lands:
- The prospector must first apply in writing for permission of the private owner/claimant/holder.
- If permission is refused or compensation is disputed, compensation is fixed by agreement among the prospector, the Director of the Bureau of Mines, and the surface owner; if they fail to agree unanimously, questions are determined by the Court of First Instance where the land is situated in an action by the prospector or principal.
- Pending final adjudication, the prospector may enter and locate upon depositing with the court a sum considered jointly by the prospector and the Director of the Bureau of Mines or by the court as just compensation for damages from prospecting.
- Section 27 grants the prospector a prior right as against the world from the date of application.
- In final judgment, the court determines compensation and pronounces the value of the land and reasonable rental for occupation and utilization for mining purposes if the prospector decides to locate and exploit minerals found.
Section 28 prohibits prospecting in specific areas and circumstances, including:
- Mineral reserves proclaimed closed to mining locations.
- Lands covered by patented mining claims.
- Lands where minerals were discovered before the effective date of this Act and are claimed by the discoverer or successors.
- Lands already located for mining leases by other prospectors under this Act.
- Areas near or under buildings, cemeteries, bridges, highways, waterways, railroads, reservoirs, dams, or other public/private works.
Section 28 directs that regulations promulgated under the Act must prescribe detailed restrictions for the Section 28 prohibitions.

Discovery and mining claim location rules

Section 29 states that the right to locate a mining claim is based on discovery of mineral therein in all cases.
Section 30 provides what constitutes a valid discovery:
- Mineral in place where originally formed in the rock qualifies as valid discovery for a lode mineral claim.
- Mineral in loose, fragmentary, broken rocks, boulders, floats, beds, or deposits qualifies as valid discovery for a placer mining claim.
Section 31 defines:
- A lode mineral claim as mineral land containing a vein/lode/ledge/lens/mass of ore in place located under law.
- A placer claim as anything not falling under the lode definition.
Section 32 provides the rule for conflicting locations:
- Priority of discovery, followed by continuous occupation and prospecting, determines the right to lease, subject to questions on validity of location and record and compliance with legal requirements.
- Actual discovery made prior to this Act’s effective date (before or after enforcement of the Constitution) constitutes valid discovery and grants a preferential right to locate and lease covering discovered minerals, subject to this Act.
Section 33 imposes timing for location:
- The discoverer/locator must locate a mining claim immediately upon discovery or as soon as possible, but not more than thirty days after discovery.
- Failure to locate within thirty days results in waiver of the right to locate covering that land.
Section 34 imposes a recording duty:
- Within sixty days after completion of the acts of location, the locator must record with the mining recorder.
- Failure to record within the prescribed period results in abandonment.
Section 35 sets maximum areas for claims by group, and by locator category:
- First group (metals/metalliferous ores):
  - Lode deposits: nine hectares for an individual, unincorporated association, sociedad anonima, limited partnership, or corporation.
  - Placer deposits: not to exceed eight hectares for an individual and sixty-four hectares for a corporation, sociedad anonima, or limited partnership.
  - For an unincorporated association in placer deposits: not to exceed eight (8) hectares for each member and sixty-four (64) hectares for the entire association.
- Second group (precious stones): not to exceed four hectares for any qualified locator/applicant, whether lode or placer.
- Fourth group (salines and mineral waters): not to exceed four hectares for any qualified locator/applicant.
- Fifth group (building stone/clays/fertilizers/other nonmetals):
  - Placer deposits: not to exceed eight hectares for an individual and sixty-four hectares for a corporation, sociedad anonima, or limited partnership; for an unincorporated association: not to exceed eight (8) hectares for each member and sixty-four (64) hectares for the entire association.
  - Lode deposits (nonmetals): not to exceed nine hectares for an individual, unincorporated association, sociedad anonima, limited partnership, or corporation.
Section 36 governs disposition of third group (mineral fuels) lands:
- Coal lands follow Act No. 2719 as amended, and petroleum/mineral oils/gas follow Act No. 2932 as amended, including their regulations.
- Coal/petroleum licenses/concessions/leases must be limited to citizens of the Philippines of legal age, or qualified associations/corporations organized under Philippine laws with at least sixty per centum citizen-owned capital.
- Licenses/concessions/leases for coal or petroleum land exploitation/development/utilization are for a period not exceeding twenty-five years, renewable for another period not exceeding twenty-five years.
Section 37 caps holding of multiple claims:
- For the first, second, fourth, and fifth groups, no locator/applicant/lessee may hold more than three lode mineral claims on the same vein, or more than three placer mining claims, with category-based limits:
  - Lode mineral claims: not more than three on the same vein (for any qualified category).
  - Placer mining claims:
    - Not more than three placer mining claims for an individual.
    - Not more than three placer mining claims for a corporation/association/sociedad anonima/limited partnership on the same placer ground.
Section 38 addresses choosing lode vs placer:
- Mining claims in the first, second, fourth, and fifth groups may be located as either lode or placer depending on deposit form.
- If either class is possible for a parcel, the prior valid location prevails.
- If a placer location is made first, the locator must thereafter make a lode location to secure mining rights to lode deposits within placer boundaries.
- If a lode location is made first, the holder preserves rights accordingly and must secure rights within relevant group boundaries by the lode/placer mechanism provided.
- In such cases, the locator and successors are entitled to the minerals of the group(s) covered by the location(s) and lease granted that lie within the claim boundaries vertically downward constraints, but are not entitled to mine outside the boundary lines of the claim continued vertically downward.
- The holder/lessee has a preferential right to locate and lease deposits of any other group found therein.
Sections 39–42 set lode claim layout and marking requirements:
- Section 39 requires the locator to enter and locate a plat of ground not more than three hundred meters by three hundred meters in rectangular form (right angles), except boundary-line adoption from previously surveyed claims; claim size is measured horizontally irrespective of surface inequalities.
- Section 40 requires two posts on the lode/vein line direction, numbered one and two, with distance between them not exceeding three hundred meters, forming the location line.
- Section 40 requires inscription on post one including “Initial post,” approximate compass bearing of post two, and meters to the right and left of the location line.
- Section 41 requires immediate marking of the location line between posts one and two, and placing a Discovery post at the point where minerals in place are found (or vertically above if underground).
- Section 41 requires surveyors to be guided by records, sketch plan, posts, and the notice on post one; where impossible due to ground nature/shape, posts may be placed as nearly as possible with distance/direction noted in the declaration.
- Section 42 requires blazing trees along the boundary line, establishing four corners, and marking each corner with claim name, locator name, date, corner designation (e.g., northeast/southwest), and prescribed post/stone/cross specifications.
Section 43 governs moving posts:
- It is unlawful to move post number one.
- Post number two may be moved by the mineral land surveyor if distance between posts one and two exceeds three hundred meters, to place post two at exactly three hundred meters from post one.
- If distance between posts one and two is less than three hundred meters, the mineral land surveyor has no authority to extend beyond post two.
Section 44 provides that the location line governs direction of one side, and the survey is extended accordingly.
Sections 45–46 govern placer claim form and marking:
- Section 45 allows irregular patterns following the meanderings of creeks/rivers/streams, but requires near-rectangular form for placer grounds not confined to beds/banks or extending beyond banks.
- Section 46 requires a placer locator to post notices with required particulars and mark boundaries at corners/angles; corner markers must be inscribed with consecutive numbers in clockwise direction, and end corners must include claim name, locator name, and date, with marker dimensions consistent with lode corner markers under Section 42.

Recording, recorder authority, and notice by recording

Section 47 requires the record of a lode/placer claim to be a declaration of location containing specified particulars, including claim and locator names, date, sitio/barrio/municipality/province/island, lode post inscriptions for lode claims, and a copy of the posted placer notice; it must also include full description and positioning reference to natural objects/permanent monuments and boundary/corner distinguishing marks.
Section 48 prohibits recording unless accompanied by an affidavit by the applicant or person on his behalf cognizant of facts that:
- required legal notices were posted on the claim;
- minerals were found in place for lode claims; and
- for placer claims, the ground is valuable for placer mining; and
- the ground is unoccupied for mining by any other person.
Section 49 prohibits recording unless accompanied by proof that the locator (or each locator) is a Philippine citizen of legal age, or an association/corporation organized under Philippine laws with at least sixty per centum citizen-owned capital.
Section 50 provides acceptable proof:
- Individual: own affidavit.
- Unincorporated association: affidavit of their authorized agent on his knowledge.
- Corporation: certified copy of charter/certificate of incorporation plus affidavit of a duly authorized corporate representative certifying at least sixty per centum citizen-owned capital.
Section 51 provides a model/substantially required form for the declaration of location for lode mineral claims and its accompanying affidavit, including content requirements and witness/affidavit structure.
Section 52 provides a model/substantially required form for the declaration of location for placer claims and its accompanying affidavit.
Section 53 requires the mining recorder to note filing year, month, day, hour, and minute, and to endorse a certificate showing the filed time/date, recording book/page, and the paid amount under official receipt.
Section 54 designates the register of deeds of the province as mining recorder, but authorizes the President to appoint district mining officers/mining recorders or impose local performance by administrative order, under the direction/supervision/control of the Director of the Bureau of Mines for recorder functions.
Section 55 authorizes the Secretary of Agriculture and Commerce to establish mining districts whose boundaries generally coincide with provinces, but allows combining two or more provinces/parts when local conditions require.
Section 56 requires recording by the mining recorder of declarations of location, affidavits, powers of attorney, and all other documents/instruments affecting possession or any right/title/interest, in the order filed; once recorded, they constitute notice to all persons of the contents.

Amendments to declarations and related limits

Section 57 allows a locator or successors/assigns to file an amended declaration of location with the mining recorder when:
- the original declaration is defective/erroneous,
- legal requirements were not complied with before recording, or
- boundaries are desired to be changed to include ground not embraced by the original location.
Section 57 requires that the amended declaration not interfere (at filing date) with existing rights of others, and not grant a lease already granted by the Government prior to the amended filing.
Section 57 requires an amended declaration and accompanying affidavit in substantially the model form provided for lode and placer amendments.

Fees, revenue sharing, and effects on validity

Section 58 requires payment of a fee of three pesos for each:
- original or amended declaration of location of mining claim,
- affidavit accompanying such declaration,
- and power of attorney, document, or instrument regarding/affecting possession or any right/title/interest in mining claims,
  filed for record.
Section 58 provides that on presentation of the receipt, the mining recorder records the declaration/affidavit/power/document only if the locator’s affidavit and required fees have been filed and paid.
Section 59 mandates revenue distribution of fees collected under Section 58:
- Fifty per centum accrues to the province,
- fifty per centum accrues to the municipality where the mining claim is located,
- and in the case of chartered cities, the full amount accrues to the city.
Section 60 provides that no valid mining claim (or any part) may be located by others until the original locator or successors in interest abandon the claim or forfeit rights under this Act.

Disputes and appeal framework

Section 61 allows conflicts/disputes arising out of mining locations to be submitted to the Director of the Bureau of Mines for decision.
Section 61 provides that the Director’s decision may be appealed to the Secretary of Agriculture and Commerce within ninety days from entry of the decision.
Section 61 provides that if interested parties disagree with the Director or the Secretary, the matter may be taken to a court of competent jurisdiction within ninety days after notice of such decision.