Title
Mining Act - Conservation and Development
Law
Commonwealth Act No. 137
Decision Date
Nov 7, 1936
Commonwealth Act No. 137, also known as The Mining Act, governs the ownership, exploitation, and conservation of mineral lands and minerals in the Philippines, requiring at least 60% Filipino ownership and setting limitations on mining claims and leases.
A

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.

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