Day2 2 pt. 2 Flashcards
Regalian Doctrine summary
All pub lands owned by state. The EDU of natl resources is controlled by the state w/ env’t and local communities in mind
DENR is the
Promulgate rules and regulations w’c are to be implemented by law
Who recommends entance into MA
Director of MGB
Authority of MGB
Direct charge of Mineral lands, undertake research and min explo
Authority of MGB (2)
Monitor compliance by contractor w/ terms and conditions of MA
MA is issued by
DENR
Exploration permit is issued by
DENR Secretary
FTAA is issued by
DENR approved by the pres
Quarry permit is issued by
Provincial Governor/City Mayor Gov’t
SSM IN mineral reservations issued by
DENR
SSM OUTSIDE of mineral reservation issued by
Provincial Governor/City City mayor
Pebble Picking permit issued by
Provincial/City gov’t
Guano permit is issued by
Provincial Governor/City Mayor
2 types of Guano permit
Gratuitous and Commercial
Gratuitous permit 2 types
Gov’t and Private
Issues Sand and gravel permi
Provincial/City gov’t
Nonmetallic EP term
2 years renewable for like term till 4 yrs
MMetallic EP
2 yrs renewable for like term till 6 yrs
EP for Individual (Onshore entire Phil, Onshore 1 prov, off shore) respectively
3240 ha/ 40 blocks, 1620 ha/ 20 blocks, 8100 ha/ 100 blocks
EP for Corp ( off shore, Onshore 1 prov, Onshore entire Phil) respectively
81000ha/ 1000 blocks, 16200 ha/ 200 blocks, 32400 ha/ 40 blocks,m
Qualified person can be 3 things
Filipino citizen, Corporation, partnership, association >= 60% Fil owned, Foreign corporation. W/ tech and financial capability for min resources development
Filing/Processing of MPSA is how long
1 yr
Envt’l Provision during explo
Environmental Work Program (EWP)
Envt’l mngt plan for the life of the mine.
EPEP
Envt’l mngt plan for 1 yr
AEPEP
ensure just and timely compensation for damages
CLRF
CLRF is administered by the
CLRF Steering Committee
3 forms of CLRF
Mine Rehabilitation Fund (MRF), Mine Waste and Tailings Fees Reserve Fund MWTF), Final Mine Rehabilitation and Decommissioning Plan (FMRDP)
Monitoring Trust Fund (MTF) amount
Php 150,000
2 Forms of MRF
Monitoring Trust Fund and Rehabilitation Cash Fund
Iniitial cost of EPEP
10% of starting cost to run mine
Rehabilitation Cash Fund Amount
10% of EPEP cost or 5 Mill pesos w/c ever is lower
FMRDP deposit period
Annually
Non-metallic and quarry Excise Tax amt
2%
SDMP amt
1-1.125%
Gold and Chromite Excise Tax amt
2%
Occupation fee for EP OUTSIDE of mineral reservations
php 10/ ha
Occupation fee for FTAA/MA OUTSIDE of mineral reservations
php 50/ha
EP, MA, FTAA IN mineral reservations
php 100/ ha
Allocation of occupation fees
30% province/70% municipality
SDMP period and purpose
5 yr plan, improve living standards of surrounding communities
Quasi-Judicial body in every DENRRegional office
Panel of arbitrators
Panel of arbitrators members
2 Lawyer, 1 EM, Geol, or related field professional
Panel of arbitrator jurisdiction
Disputes ove areas, MA, FTAA, occupants, claimowner
Appealed cases go here
Mines Adjudication Board in DENR Central Office
Members of Mines Adjudication Board members
DENR Secretary,
Director,
Undersecretary for field operations
Archipelagic Sea def
waters within baseline of archipelago
Highest position in MGB
Director
Capital for work program EP
2.5 million pesos
Certificate that proves individual/corp has good prior standing towards communities
Certificate of Environmental Management and Community Relations Record (CEMCRR)
Reqt for foreign corporation
< 50% Filipino
FTAA contract area per qualified person
1000 onshore, 4000 offshore, or combination of the two
Phases of FTAA
Exploration (2yr), Pre-Feasibility (2yrs), feasib (2yrs), Dev’t and utilization (3 yrs or remaining)
Capital for work program implmentation for FTAA
$ 4 million dollars
MPSA onshore area for metallic minerals
Indiv, 810 ha, corp 5000 ha
MPSA onshore area for non-metallic minerals
Indiv 810 ha, corp 2000 ha
After the 50 yr term what happens to contract?
Up for bidding, orig contractor can rebid
Proof of financial capabililty for the implementation of work program
2.5 million pesos
3 year development/utilization work program signee
Licensed Mining Engineer/Geologist
Document needed to be passed to approve ECC
EIS, as reviewed by Environmental Impact Assessment System
MWT Reserve fund for mine waste
Php 0.05/MT
MWT Reserve Fund for mill tailings
Php 0.1/MT
Gross output is defined by law as
actual market value of minerals or mineral products
Purpose of the Environmental Management Bureau (EMB)
Nationwide enforcement of environmental laws, not just for mining
RA 8749 otherwise known as
Clean Air Act of 1999
Philippine Clean Water Act of 2004 known as
RA 9275
The Environmental Impact Statement Systems was est by this law
PD 1586
“Ecological Solid Waste Management Act of 2000”
RA 9003
Known as the “IRR of RA 8749”
DAO 2000-81
“IRR of RA 9275”
DAO 2005-10
“National Pollution Control Law”
PD 984 of 1976
EMB is what kind of Bureau
line
PD 600 or
Marine Pollution Law
Water Code of the Philippines
PD 1067
“Mine Safety and Health Standards”
DENR Administrative Order No. 2000-98
Frequency Rate
(# of LTA x 1,000,000) / Manhours Worked
Severity Rate
(# of Days lost x 1,000,000) / Manhours Worked
Issues Blaster’s Foreman License
PNP FEO as endorsed by MGB
How is LTA calculated?
Starting the day after the incident happens amd person is unable to work
Types of Magazines
Permanent Storage, Issuing, Portable
Part-time Safety Engineer work day
at least 4 hrs per week
What is a Primed Cartridge
explosive cartridge w/ a detonator
When a serious injury happens, how fast should it be reported
<24 hrs to Director, Regional director, representative. Detailed report w/n 15 days
Statistics of accident and sickness shall be sub every
Monthly, w/n 15 days of start of month
Underground Class A,B,C,D employee # interval
> 150, 150-50, 50-25, <25
Surface Mine Class A,B,C,D employee # interval
> 250, 250-75,75-50, <50
Class C mines should have
1 part time SE, 1 full time SI, and a Deputy Safety Inspector visit all active workplace at least once every shift
Class D mines should have
1 part-time SE, 1 part-time SI
2 Qualifications of SE
EM w/ 1 yr exp in safety work or engg/geol/mete w/ 5 yrs exp. 40 hrs OSH training
Temporary Safety Engineer reqt’s
2 yrs exp as SI licensed engg, geol, chem, 40 hrs OSH training. Good for 2 yrs
Safety Inspector reqt’s
Graduate of engg, geol, mete, cehm w/ 1 yr exp in safety or 2 yrs exp in mining. Undergrad 2 yrs in safety work 3 yrs in mine op. HS grad 4yrs safety, 5 yrs mine op
Temp safety inspector term
2 yrs till cancellation
SE and SI permits renewed every
3 yrs
Req’t to be deputized
10 yrs of safety work
)Central Safety and Health Committee Chariman and Secretary resp
Highest official of the mine, Safety Engineer (SI for Class D)
UG mines are reqd these for ventilation
2 interconnected opening to the surface
Dist of flamm liquids or matls from main entrance of mine
50 meters
No mining w/n this dist from a winze or shaft if water is present
8 m for both Large Scale and SS
Vent reqt for every stope
2 entrance (stope manway and raise manway for vent and escapeway)
No mining w/n this dist from a the main shaft
16 m
Mine Rescue Organizations is reqd for mines w/ this employee number
50 or more
Number of memb in mine rescue team what eqpt
12 or more trained men, 5 SCUBA units
Qualification of mine rescue team
21-45 yrs, pass phys exam, pass mine rescue course. first aid training
Vert ht of working benches is det by what
max reach of shovel/loader
Magazine designed to store >50 kg
Shall be permanent
Used to store <50 kg explosives
Portable Magazine
Dist of magazine from combustible matls
1.5 m
Explosive separation standards
Dynamite, Blasting Cap, Fuse, AN Magazines stored separately
Diff bet misfire and bootleg
Bootleg happ when remaining blast hole does not contain explosive,misfire does not
Ceiling value of noise
115 dBA
fresh air quantity reqt per man
2 cubic meters per minute
Mechanical assistance for air is reqd for this depth
300 m deep
“Fire Code of the Philippines”
PD 1185
What is FIFO
First-In-First-Out, a rule in storing explosives and combustible materials
SSM. This is needed per 50 or 25 workers for Surface and UG respectively.
1 Safety Inspector
In SSM, dist bet 2 underground openings
12 m
min dimensions for openings
h = 1.5 m, w = 1.3 m
Max # of miners per working face/ sinking operation
3 people
Dist of any opening from massive, how about broken and fractured rock
10 and 50 m respectively
Max bench ht. for SSM
1.5 m
Min bench width/berm
2 meters
Oxygen and CO reqt
20% and 0.5% respectively
TLV for CO2
<= 0.5% or 5000ppm
Oxygen O2
> = 20%
Hydrogen Sulfide H2S
<= 0.10%
Fine for violating any provision of SSM standards
php 1000 - 10000
“Small Scale Mine Safety Rules and Regulations” Sept. 11, 1997
DENR Administrative Order No. 97-30
“Coal Development Act of 1976”
PD 972
In coal mining, 1 meridional block (2 min by 1.5 min) is equal to
1000 ha
Max # of blocks per person/corp
15
Law that created PRC
PD 223
Role of a Mining Engg wrt his client or employment for contracts or documents
the trustee who interprets it
Only time a colleagued could be criticized
when they engage in activities detreimental to the dignity and integrity of the profession
When can a Mining Engineer proclaim him/herself as a “consultant”
when he’she is qualified w/ nec qualifications and occupied professional independence w/ the parties involved
Excise tax for petroleum
15%
Excise tax system for Copper or other metallic minerals
1-3 years: 1%, 4-5 yrs: 1.5%, >6yrs 2%
ReviseIRR for people’s small scale mines
DAO 2015-03
Investment limit for SSM
10 Million pesos
“Mineral Processing Zone” refers to
“Custom Mill” in a Minahang bayan approved by the gov’t
Like EPEP but for SSM
Potential Environmental Impact Management Plan (PEIMP)
“Consolidated DAO for the IRR of RA 7942”
DAO No. 2010-21
SSM Contractor must be registered by this
Securities and Exchange Commission (SEC)
This doc is needed to start a SSM and signed by a licensed Mining Engineer
Two-year Work Program
SS mining can only happen here
Minahang Bayan
Areas open to be Minahang bayan
Existing mining area bef 1987, Pub lands covered by mining app, Areas w/ existing permit but not active
Minahang Bayan area for gold, silver, chromite
25% of area above 500 ha + 500 to 500 to 20 ha.
Minahang Bayan area for non metallic
25% of area above 1000 ha + 1000 to 1000 to 20 ha.
Royalty payment by SSM to existing permit/conract
holder
1.5%
Application fee for non-metallic?. gold, silver, chromite?
php 10,000 and php 20000
SSM contract area
1.25-20ha
SSM production limit
50000 MT/yr
2 mining methods illegal in DAO 2015-03
compressor mining and hydraulicking
This is needed ot be approved as Mineral Processing Zone by th eLocal Government Unit
Mineral Processing Zones
in direct supervision and controlover the programs and activities of the small-scale miners within the Minahang Bayan.
The Secretary through his representative
2 duties of PCMRB for SSM
Declare Minahang Bayan and award contracts
Royalty rate for SSM to govt
5%
% of the production share opf the gov’t goes in PSSM Protection Fund
15% of the prod’n share
Fine imposed by Secretary, thru the board due to violation of provision
php 20000 to 100000
Ore Transport Permit issued by the ___ for large scale mines
PCMRB or “Board”
“Äcceleration of Research Development and Utilization of Non-conventional Energy Resources”
PD 1068
“Disposition Development and Utilization of Guano Deposits”
PD 412
Under IRR of RA 7076, share of LGU of production
40% of production tax
Large Scale mine royalty fee for IP
1% in a trust fund
Ore Transport Permit issuer for Large Scale Mines
MGB Regional Director
RA 7942 that this % of all royaltie and revenues go to the MGB
10%
The National Integrated Protected Areas System (NIPAS) is est bthis law:
RA 7586
Non BS EM can take the board w/ these qualification
10 yrs in mining,met,geol w/ 5 yrs in the mine engineering field
EM license for foreigners term
6 months + 6 months only
Capital needed for MPSA
P 2.5M initial, Max: P10M
FTAA min project cost
$ 50 M
REVISED GUIDELINES ESTABLISHING THE FISCAL REGIME OF FINANCIAL ORTECHNICAL ASSISTANCE AGREEMENTS (FTAA)
DENR ADMINISTRATIVE ORDERNo. 2007 - 12
Quarry permit term
5 yrs renewable for like periods =< 25 yrs
Mine Environmental Protection and Enhancement Office is reqd for every minee, who heads it?
Licenced EM, Geol, MetE, Envt Engg with 5 yrs expp
Environmental Monitoring Audit is take every
every quarter
LA Bugal case number
G.R 127882 Jan 27 and Dec 1 of 2004
L Bugal disputes these 2
Constitutionality of RA 7942 and DAO 96-40 and validity of FTAA
Western Mining Corporation Philippines Incorporated (WMCP) was renamed in 2001 to
Tampakan Mineral Resources Corporation
La Bugal Ruling
FTAA provisions repealed
Service contracts and MA were found to be similar, why are service contracts controversial
It vested foreigners EDU of Fil natural resources, they became the bbeneficiaries
How are service contracts reformed
Foreign contractors prov capital,techno,technical,managerial in mining. DENR and MGB represents the gov’t in the entire operation
What was accused to WMCP
They were mostly an Australian company disguising as split bet Aus and Phil
Disposing tailings underwater
Submarine Tailings Disposal or deep-sea tailings placement
FPIC means
Free, prior. informed consent
Exploration area relinquishing system
relinquish 25% of tot area after 2nd yr, 10% on the 3rd 4th 5th yrs
Odds of finding mineral deposit
1:500
Biggest problem in Rapu-Rapu island mining
Acid Mine Drainage from tailings
this is a coalition of gots, comp, investors, orgs w/c aims to strengthen governance by improving transparency and accountability in the extractives sector
Extractive Industry transparency Initiative (EITI)
EITI entails
publish details of all payments taxes and royalties
PD 1899 has 4 reqts what are these
Artisanal, whether open cast ofr shallow UG mining, Minmal inras and processing plant, Reliance on manual labor, owned by indiv or entity
Penalty for violating provision under PD 1586 EIS system
P 50000
amended PD 972
PD 1174
Exploration cost per block under PD 972
P 1,000,000 min is P 200,000
Coal mining EP ter
2 yrs plus 2 only unless ccommercial coal is found
If commercial coal is found what is the term limit of coal EP
10 to 20 yrs, after that renewable for 3 yrs up to 12
1st incentive to operators in Coal mining
Exemption from all taxes except income tax
2nd incentive to operators in coal mining
tariff exemption of the importation of equipment
Explain Accelerated Depreciation
Deprreciation 2 times or less as fast as normal rate except if service life is less than ten yrs
2 incentives for Coal users
Tax exemption or tax credit on imported capital eqpt or domestic capital eqpt respectively.
Who approves Coal Operating Contract
President, with rec of EDB/DOE
Natural Gas consist mostly of
hydrocarbons
Posted Price means
FOB price est by contractor and Petroleum Board
1 Barrel = t
42 gallons
Service Contract fir exploration nature
service contractor prov tech and service, gov’t pays them so that all petroleum beproduced belongs to the ste
Oil Exploration and Dev’t Act
PD No. 87
“AN ACT PROVIDING FOR A LOCAL GOVERNMENT CODE OF 1991”
RA 7160
“ACT REDUCING THE EXCISE TAX RATES ON METALLIC AND NON-METALLIC MINERALS AND QUARRY RESOURCES”
RA 7729
IRR of RA 6969
DAO 92-29
Environmental Partnership Program to Support Industry Self-Regulation Towards Improved Environmental Performance
DENR Administrative Order No. 2003-14 Series of 2004
Revised Air Quality Standards of 1992,
DAO no. 1993-14
Volatile Organic Compounds are
Compound containing carbon and hydrogen
THE MAGNA CARTA OF PUBLIC HEALTH WORKERS
RA 7305
: Issuance of Mineral Ore Export Permit (MOEP) F2007
DAO no. 2008-20
AN ACT CREATING THE NATIONAL WATER AND AIR POLLUTION CONTROL COMMISSION.
RA no. 3931
IRR for EIS system from PD 1586
DAO 2003-30
“Onshore Special
Minerals Extraction Permits
(SMEP)”
DAO 2000-39
Special Mineral Extraction Permit meaning
Gov’t can EDU quarry, sand , gravel in a >2 ha area
List the IRR of RA no 7942
DAO 96-23, DAO 96-40, DA), 2005-15, DAO 2010-21
“Strategical Environmental Plan for Palawan 1992
RA 7611
Reforms in the Phiippine Mining Sector by Pres. Benigno Aquino
EO 79
Philippine Environmental Code
PD 1151 and PD 1152
Water Pollution Control Law
PD 979
Capital investment in a SSM
P 10,000,000 during the entirety of oirginal contract anits renewal
Maximumm area for MA in (indiv, corp) in blocks
1 prov (10, 100), entire phil (20, 200), offshore entire phil (50, 500)
Mine Rehabilitation Fund penalty
P50/MT
Gross Profit =
Gross Revenue - Operating cost
Gross Profit - Non-cash cost +
Taxable income
Income Tax - income tax =
Net income
net income + non-cash cost =
Net cash flow
Excise tax on coal and coke
P10/MT
Philippine Mineral Reporting Code sets out to do this
min standards, rec, and guidelines for Public reporting in the Phil of Explo results, Mineral Resources and Ore Reserves
Define Transparency
reader of Public report is provided with sufficient information, the presentation is clear and unambiguous, not misleading
Define Competence
Pub report is done by persons suitably qualified and experience who are subject to a code of ethics
Materiality means
Report cont all rel info w/c investors and advisers would requre
Competent persons requiremments
PRC licensed professional, member of an of fol GSP, PSEM, or the SMEP. Min 5 yrs exp on the style of mineralization
Accredits Comptent persons
respective organization of person
PMRC was adopted on
October 2010
PMRC is patterned after this
Australian JORC or Joint Ore Reserve Committee (2004)
Sand, Gravel, quarry resources tax
10% of prod
sand, gravel, quarry resources tax split
Prov - 30%, City/Municipality - 30%, Barangay - 40%
“Creating Philippine Extractive Industries Transparency Initative”
EO 147
First law that introduced MA’s and FTAA system
EO 279
Manager in bet supervisory and top level
middle manager
Management process functions give 4, who made these
planning, organizing, staffing, directing, controlling (Henri Fayol)
Magna Carta for Countryside and Barangay Business Enterprises
RA No. 6810
Who approves ECC
Secretary of DENR