Introduction to Mining Laws Flashcards
hierarchy of laws in the Philippines
1987 constitution
statues / executive issuance by the president
administrative regulations
ordinances by the lgu
1987 constitution title, article, and section
National Economy and Patrimony
Article XII, Sec. 2
National Economy and Patrimony
All lands of public domains, waters, minerals, coal, petroleum, and other mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are owned by the State.
The exploration, development, and utilization of natural resources shall be under the full control and supervision of the State.
If an investor wishes to acquire the right to _____ or ____ natural resources, he must enter into an agreement with the State.
extract ; develop
all mineral resources are owned by the state
Regalian Doctrine
Mining Laws in the Philippines
RA 7942
DAO 2010-21
RA 7076
DAO 2022-03
RA 7942 is also known as
Philippine Mining Act of 1995
RA 7076 is also known as
People’s Small-Scale Mining Act of 1991
What is RA 7076
An act creating a people’s small scale mining program and for other purposes
What is RA 7942
An acts instituting a new system of mineral resources exploration, development, utilization, and conservation
What is DAO 2022-03
Revised implementing rules and regulations of Republic Act No. 7076 otherwise known as “Peoples Small-Scale Mining Act of 1991”
What is DAO 2010-21
Consolidated department of environment and natural resources administrative order for the implementing rules and regulations of Republic Act No. 7942, otherwise known as the “Philippine Mining Act of 1995”
Philippine Mining Act of 1995: Declaration of Policy
All mineral resources in public and private lands within the territory and exclusive economic zone of the Republic of the Philippines are owned by the State. It shall be the state’s responsibility to promote their rational exploration, utilization, development, and conservation through the combined efforts pf government and the private sector in order to enhance national growth in a way that effectively safeguards the environment and protect the rights of the affected communities.
RA No. 7076: Declaration of Policy
It is hereby declared of the State to promote, develop, protect and rationalize viable small-scale mining activities in order to generate more employment opportunities and provide an equitable sharing of the nation’s wealth and natural resources, giving due regard to existing rights as herein provided.
Areas Closed to Mining Applications
a. In military and other government reservations
b. near or under public or private buildings, cemeteries, archaeological and historic sites, bridges, highways, waterways, railroads, reservoirs, dams or other infrastructure projects, public or private woks including plantations or valuable crops
c. in areas covered by valid and existing mining rights
d. in areas expressly prohibited by law
e. in areas covered by small-scale miners
f. old growth or virgin forests, proclaimed watershed forest reserves, wilderness areas, mangrove forest, mossy forests, national parks, provincial/municipal forests, parks, greenbelts, game refuge, and bird sanctuaries as defined by law and areas expressly prohibited under NIPAS
g. areas which the secretary may exclude on proper assessment of their environmental impacts and implications
Aquino Minerals Policy
Executive Order No. 79, Series of 2012
What does NIPAS stand for?
National Integrated Protected Areas System
What RA and DAO is NIPAS ACT under
RA 7586
Department Administrative Order no. 25, series of 1992
Two additional areas closed to mining applications under EO No. 79
Tourism development area, as identified in the National Tourism Development Plan (NTDP)
Other critical areas, island ecosystems, and impact areas of mining as determined by the current and existing mapping technologies, that the DENR may hereafter identify pursuant to existing laws, rules, and regulations, such as, but not limited to, the NIPAS ACT
refers to all lands exclusively possessed, occupied or utilized by indigenous cultural communities by themselves or through their ancestors in accordance with their customs and traditions since time immemorial, and as me be defined and delineated by law.
Ancestral lands
No MPSA / FTAA / or EP be granted in CADC / CADT areas without the ICC’s _____
FPIC
Free, Prior, and Informed Consent
MPSA meaning
Mineral Production Sharing Agreement
FTAA meaning
Financial or Technical Assistance Agreement
EP meaning
Exploration Permit
CADC / CADT meaning
Certificate of Ancestral Domain Claim / Certificate of Ancestral Domain Title
ICC meaning
Indigenous Cultural Communities
In case the ICC give’s their consent, a royalty of ____ of the ____ is due to the ICC from the mining company
at least 1% ; gross revenue
it is the sum of all the money generated by a business, without taking into account any part of that total that has been or will be used for expenses
gross revenue
where should we get FPIC
NCIP
is the revenue a company earns in a given period after any purchaser discounts or allowances are factored
net revenue
NCIP meaning
National Commission on Indigenous Peoples
Tenements issued by the DENR-MGB
- Exploration Permit (EP)
- Mineral Agreements
- Financial or Technical Assistance Agreements (FTAA)
- Mineral Processing Permits (MPP)
- Industrial Sand and Gravel Permits (>5 to 20 hectares)
- OTPs / MOEPs (metallic)
Permits issued by the LGU
- Small-Scale Mining Contracts
- Quarry Permits
- Sand and Gravel Permits (5 ha and below)
- Guano Permits
- Gemstone Gathering Permits
- OTP / MOEPs (non-metallic)
who grants mineral processing permits?
DENR Secretary (?)
how many km away should sand and gravel quarrying be from infrastructures?
at least 1 km
how many hectares area is qualified for industrial sand and gravel permit?
5 to 20 ha
sand and gravel areas with areas of ____ is considered to be “commercial”
<1 ha
phosphate deposits derived from birds/bats used as fertilizers
Guano deposits
maximum area for exploration permit
32,000 onshore
81, 000 offshore
maximum area for MPSA
5,000 onshore
40,500 offshore
maximum are for FTAA
81,000 onshore
320,000 offshore
terms for EP
2 years; renewable to a maximum of 8 years
terms for MPSA
25 years; renewable for like periods
terms for FTAA
25 years; renewable for like periods
qualified person for EP
individuals or Filipino or foreign corporations
qualified person for MPSA
individuals or Filipino corporations
qualified person for FTAA
Filipino or 100% foreign corporations
stages of mining operations
exploration
development
production
final mine decommissioning
progressive rehabilitation
searching or prospecting for mineral resources by geological, geochemical, and/or geophysical surveys, remote sensing, test pitting, trenching, drilling, shaft sinking, tunneling or any other means for the purpose of determining their existence, extent, quality, and the feasibility of mining them for profit.
Exploration
under what DAO is it stated that exploration period and permits are automatically renewed without the need of filing applications for renewal
DAO 2021-12
under DAO 2021-12, the holders of exploration tenements are required to submit certain requirements within how man days from the expiration of the exploration period?
60 days
failure to submit the requirements under DAO 2021-12 is a ground for ____ of the mining tenement
cancellation
who grants exploration permits?
Central MGB Director
who is central mgb director?
Atty. Wilfredo G. Moncano
who is regional mgb director?
Atty. Jasper Alberto H. Lascano, EnP, CESO V, Regional Director
Requirements to support an EP application
- Location Map 1:50000 scale
- Articles of Incorporation
- Area Status and Clearance
- Publication / posting / radio announcement
- Project presentation / consultation with all sanggunian (brgy, bayan, panlalawigan)
- ExWP
- EnWP
- Proof of financial capacity
- Proof of technical capability
- NCIP FPIC Process
Exploration results reveal the _____ of mineral deposits that are ______
presence ; economical to mine
what does DMPF stand for?
Declaration of Mining Project Feasibility
Approval of DMPF grant to the Permittee the approval of ____ / _____
MPSA / FTAA
DMPF is the right to _____ the mining area in _____ to ______
develop ; preparation ; commercial extraction
Requirements for DMPF
- Approved Survey Plan
- Feasibility Study
- 3 yr Development / Utilization Work Program
- Final Exploration Report
- Favorable Endorsements from the LGU
- SDMP
- EPEP and FMRDP
- Proof of financial capacity
- Proof of technical capability
- NCIP FPIC process
- SHP
what does EPEP stand for?
Environmental Protection and Enhancement Program
what does FMRDP stand for?
Final Mine Rehabilitation and Decommissioning Program
what does SHP stand for?
Safety and Health Program
what does SDMP stand for?
Social Development and Management Program
this means a contract between the Government and a Contractor
Mineral Agreement
three types of mineral agreements
a. mineral production sharing agreement
b. co-production agreement
c. joint venture agreement
____ is an agreement where in the _____ grants to the ____ the exclusive right to ____ within, but not ____ over, the contract area and shares in the production as the owner of the minerals therein.
MPSA ; government ; contractor ; mining operations ; title
in MPSA, the contractor shall provide for the necessary ____, _____, _____, and _____
financing; technology; management; personnel
who grants MPSA?
DENR Secretary
who is the current DENR Secretary?
Ma. Antonia Yulo-Loyzaga
is an agreement between the Government and the contractor wherein the government shall provide inputs to the mining operations, other than the mineral resources
co-production agreement
an agreement where a joint-venture company is organized by the government and the contractor with both parties having equity shares
joint-venture agreement
in joint-venture agreement, aside from earnings in equity, the government shall be entitled to a share in the _____
gross output
a contract involving financial or technical assistance for large-scale exploration, development, and utilization of mineral resources
Financial or Technical Assistance Agreement
minimum authorized capital for FTAA during application
$4,000,000
FTAA commitment in the contract agreement to invest
$50,000,000
t or f: FTAA can be transferred or assigned
T
No FTAA for
cement raw materials, sand and gravel, construction aggregates, marble, and granite
exploration period for FTAA
8 years
pre-feasibility and feasibility study period for FTAA
2 years ; 2 years
t or f: FTAA holder can acquire title over the mining area as well as surface rights
F (can not acquire)
who grants FTAAs?
President
Mineral Processing Permit term:
5 years ; renewable for like periods but not to exceed 25 years
t or f: alien employment is allowed in MPP but limited to specialized positions
T
who grants MPP?
DENR Sec
Terms and Conditions of a MPP
a.) Assume full responsibility and be liable for damages to private or public properties affected by its operation;
b.) use the best available anti-pollution technology and facilities
c.) shall not discriminate on the basis of gender;
d.) pay fees, taxes, other obligations;
e.) comply with ECC
what does ECC stands for?
Environmental Compliance Certificate
T or F: Ore transport permit include all ores including gold bullions
True
How many metric tons is required for an Ore transport permit?
> 2 metric tons
for assay and pilot testing purposes only; <2 metric ton
Certificate of Transport Clearance
absence of OTP while transporting ore is ______ of illegal mining
prima facie evidence
6 common acts of illegal mining
- Mining operations within a No-Go Zone / SSM outside Minahang Bayan
- Large-scale mining in the guise of SSM
- Mining via hydraulicking or compressor mining
- Black sand mining in guise of dredging or sand and gravel quarrying
- Unauthorized mineral extraction and transport in the guise of environmental clean-up
- SSM of metallic minerals other than gold/silver/chromite
formula for chromite
Cr2FeO4
underwater excavation of a placer deposit by floating equipment
dredging
Masses of unconsolidated & semi-unconsolidated clastic sediment formed by surface weathering & erosion. Inside bends of rivers, break of slope on a stream, base of an escarpment, waterfall or other basins.
placer deposits
what section is penal provision for false statement is under
section 101
fine for false statements
not exceeding 10,000 pesos
what section is penal provision for illegal exploration is under
section 102
any person undertaking exploration work without the necessary ______ shall, upon conviction, be penalized by a fine note exceeding _____
exploration permit ; 50,000
what section is theft of minerals under
section 103
how long should the imprisonment under section 103 be
six months to six years
fine for theft of minerals
10,000 to 20,000
in section 103, in addition to imprisonment and fine, the convicted shall be liable to pay _____ and _____ for the minerals removed, extracted, and disposed of.
damages and compensation
in the case of associations, partnerships, or corporations, the ____ and each of the ___ thereof shall be responsible for the acts committed by such association, corporation, or partnership.
president ; directors
when was RA no. 7942 signed into law
March 3, 1995
who was the president in 1995
Fidel V. Ramos
what is mineral according to DAO 2010-21?
all naturally occurring inorganic substances in solid, liquid, gas or any intermediate state excluding energy materials such as coal, petroleum, natural gas, radioactive materials and geothermal energy.
