Lesson 1: Introduction to Mining Laws Flashcards
enumerate the hierarchy of laws in the Philippines
Philippine Constitution of 1987
↓
Statutes/Executive Issuances by the President
↓
Administrative Regulations
↓
Ordinances by LGU
what Article and section under the 1987 constitution states the “National Economy and Patrimony”
Article XII, Section 2
FILL IN THE BLANKS
National Economy and Patrimony
All ________ of the 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 _________ are owned by the __________.
lands; natural resources; State
FILL IN THE BLANKS
National Economy and Patrimony
The ________, _________, and ________ of natural resources shall be under the full control and supervision of the __________.
exploration; development; utilization; State
doctrine that pertains to the ownership of mineral resources
Regalian Doctrine
What should an investor do in order to acquire the right to extract or develop natural resources?
the investor must enter into an agreement with the State
What are the two mining laws and their respective DAOs for this lesson?
(RA 7076) People’s Small-scale Mining Act of 1991→DAO No. 2022-03
(RA 7942) Philippine Mining Act of 1995→DAO No. 2010-21
An act creating a people’s small-scale mining program and for other purposes
RA 7076
revised implementing rules and regulations of RA No.7076 otherwise known as “people’s small scale mining act of 1991”
DAO No. 2022-03
An act instituting a new system of mineral resources exploration, development, utilization and conservation
RA 7942
providing for a consolidated department of environmental and natural resources administrative order for the implementing rules and regulations of RA No. 7942, otherwise known as the “philippine mining act of 1995”
DAO No. 2010-21
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.
RA 7942 The Philippine Mining Act of 1995
Are all lands open for mining applications?
no, because there are areas closed to mining applications
Name the 7 general areas closed to mining applications
- In military and other government reservations
- Near or under several public or private structures
- In areas covered by valid and existing mining rights
- In areas expressly prohibited by law
- In areas covered by small-scale miners as defined by law
- protected forests and the like
- Areas which the Secretary may exclude on proper assessment of their environmental impacts and implications
are all military and other government reservations really closed to mining applications?
yes, except upon prior written clearance by the government agency concerned
are all near or under public or private structures really closed to mining applications?
yes, except upon written consent of the government agency or private entity concerned
are all areas covered by small-scale miners really closed to mining applications?
yes, unless with prior consent of the small-scale miners
when a large mining company applies for a mineral agreement on an area covered by small-scale miners with the prior consent of the small-scale miners, what should be agreed to? explain.
a royalty payment upon the utilization of minerals. the royalty should be used to form a trust fund for the socioeconomic development of the community concerned
when a large mining company applies for a mineral agreement on an area covered by small-scale miners with the prior consent of the small-scale miners, what should be agreed to? explain.
a royalty payment upon the utilization of minerals. the royalty should be used to form a trust fund for the socioeconomic development of the community concerned
when a large mining company applies for a mineral agreement on an area covered by small-scale miners with the prior consent of the small-scale miners, what should be agreed to? explain.
a royalty payment upon the utilization of minerals. the royalty should be used to form a trust fund for the socioeconomic development of the community concerned
full NIPAS
National Integrated Protected Areas System
the two other areas closed to mining applications under the EO No. 79 series of 2012
- Tourism development areas, as identified in the NTDP
- Other critical areas according to the DENR, such as the NIPAS Act
full NTDP
National Tourism Development Plan
refers to all lands exclusively and actually 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 may be defined and delineated by law
Ancestral Lands
full MPSA
Mineral Sharing Production Agreement
full FTAA
Financial or Technical Assistance Agreement
full EP
Exploration Permit
full CADC
Certificate of Ancestral Domain Claim
full CADT
Certificate of Ancestral Domain Title
full ICC
Indigenous Cultural Community
what documents would warrant an area to be an ancestral land
those with CADC / CADT
can MPSA / FTAA / EP be allowed in ancestral lands?
no, unless with the ICC’s concent
can MPSA / FTAA / EP be allowed in ancestral lands?
no, unless with the ICC’s consent
royalty amount given to ICC from the mining company when allowed to mine at ancestral lands
at least 1% of the gross revenue
6 tenements issued by 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
full MPP
Mineral Processing Permit
6 permits issued by LGU
- Small-Scale Mining Contracts
- Quarry Permits
- Sand and Gravel Permits (5 hectares & below)
- Guano Permits
- Gemstone Gathering Permits
- OTPs/MOEPs
full OTPs
Ore Transport Permit
MOEP
Mineral ore export permit
Maximum areas in hectares of the 3 different types of mining right
EP →32,000 onshore; 81,000 offshore
MPSA →5,000 onshore; 40,500 offshore
FTAA →81,000 onshore; 324,000 offshore
terms of the 3 different types of mining right
EP →2 years; renewable
to a maximum of 8
years
MPSA →25 years;
renewable for like
period
FTAA →25 years;
renewable for like
period
qualified persons of the 3 different types of mining right
EP →Individuals or
Filipino or foreign
corporations
MPSA →Individuals or
Filipino
corporations
FTAA →Filipino or 100%
foreign
corporations
period
4 main stages of mining operations
exploration→development→production→final mine decommissioning
> the first three undergoes progressive rehabilitation
searching or prospecting for mineral resources
exploration
methods of exploration
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 quantity and the feasibility of mining them for profit.
Under DAO 2021-12, how do exploration periods get renewed?
automatically renewed without the need of filing applications
for renewal
holders of the tenements are required to submit certain
requirements within sixty (60) days from expiration of the exploration
period of the tenement or the exploration permit, as the case may be.
Failure to submit the requirements is a ground for cancellation of the
mining tenement
Under DAO 2021-12, what agreements/permits get automatic exploration period renewal
MPSAs and FTAAs
(and other similar mining tenements), as well as exploration permits,
who grants exploration permits
MGB Director: atty. wilfredo g. Moncano
10 requirements needed to support an EP application
- Location Map 1: 50,000 scale;
- Articles of Incorporation/ By laws /
- Area Status and Clearances;
- Publication / posting / radio announcement;
- Project presentation / consultation with all Sanggunian
(Barangay, Bayan, Panlalawigan); - ExWP
- EnWP
- Proof of financial capacity;
- Proof of technical capability
- NCIP FPIC process
full ExWP
Exploration Work Program
full EnWP
Environmental Work Program
full NCIP
National Commission on Indigenous People
full FPIC
Free, Prior and Informed Consent
results reveal the presence of mineral
deposits economical to mine
exploration
full DMPF
Declaration of Mining Project Feasibility
if you got granted approved MPSA/FTAA, that means you had approval of what prior?
DMPF
right to develop the mining area in preparation to
commercial extraction
DECLARATION OF MINING PROJECT FEASIBILITY ??
11 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
full SDMP
Social Development and Management Program
full EPEP
Environmental Protection and Enhancement Program
full FMRDP
Final Mine Rehabilitation and Decommissioning Plan
full SHP
Social and Health Program
means a contract between the Government and a Contractor
Mineral Agreement
3 types of mineral agreements
a. Mineral Production Sharing Agreement
b. Co-Production Agreement
c. Joint Venture Agreement
an
agreement where in the Government grants to the Contractor the
exclusive right to conduct mining operations within, but not title over,
the contract area and shares in the production as owner of the
minerals therein.
Mineral Production Sharing Agreement (MPSA)
for Mineral Production Sharing Agreement (MPSA), what should be provided by the Contractor
The Contractor shall provide the necessary financing, technology,
management and personnel.
who grants MPSA?
DENR Secretary
means a contract involving financial or technical assistance for large-scale
exploration, development and utilization of mineral resources.
FTAA
Minimum authorized capital during application for FTAA
USD $ 4,000,000.00
amount to invest based on the Commitment in the contract agreement
USD
$ 50,000,000.00
T or F: FTAAs can be transferred or assigned
True
what materials cannot get FTAAs?
cement raw materials, sand & gravel
and construction aggregates; cement raw materials, marble, granite, SAG and construction aggregates
years for specific periods under FTAA
- 8 years exploration period;
- 2 years pre-feasibility period;
- 2 years Feasibility Study period
T or F: FTAA holder shall acquire any title over the
mining area except surface rights
False, FTAA holder SHALL NOT ACQUIRE any title over the
mining area except surface rights
Who grants FTAAs?
President of the Ph
term for MPP
- Term of five (5) years
- Renewable for like periods but not to exceed 25 years;
T or F: Alien employment is not allowed for MPP
False: Alien employment IS ALLOWED but LIMITED TO SPECIALIZED POSITIONS
terms and conditions of an MPP
- Assume full responsibility and be liable for
damages to private or public properties
affected by its operation; - Use best available anti-pollution technology
and facilities; - Shall not discriminate on the basis on gender;
- Pay fees, taxes, other obligations;
- Comply with ECC
permit needed to transport all ores including gold
bullions
Ore Transport Permit
document needed for
assay and pilot testing purposes;
Certificate of Transport Clearance
6 Common Acts of Illegal Mining
Mining operation within a No-Go
Zone/SSM outside Minahang
Bayan
Mining via hydraulicking or
compressor mining
Unauthorized mineral extraction and
transport in the guise of
environmental clean-up
Large-scale mining in the guise
of SSM
Black sand mining in guise of
dredging or sand and gravel
quarrying
SSM of metallic minerals other
than gold/silver/ chromite
Mining operations without appropriate permit or not in accordance with the rules
and regulations
Illegal Mining
Penal provision stating “Any person who knowingly presents any false application, declaration, or
evidence to the Government or publishes or causes to be published any
prospectus or other information containing any false statement relating to
mines, MOs or MAs, FTAAs”
Section 101 False Statements
how much can be penalized by a person violating Section 101
penal provision
a
fine of not exceeding Ten thousand pesos (P10,000.00).
Penal provision stating “Any person undertaking exploration work without the necessary exploration
permit”
Section 102
Illegal Exploration
how much can be penalized by a person violating Section 102
Illegal Exploration
a fine of not exceeding Fifty thousand pesos (P50,000.00).
Penal provision stating “Any person extracting minerals and disposing the same without a mining
agreement, lease, permit, license, or steals minerals or ores or the
products thereof from mines or mills or processing plants”
Section 103
Theft of Minerals
how much can be penalized by a person violating Section 103
Theft of Minerals
upon
conviction, be imprisoned from six (6) months to six (6) years or pay a fine
from Ten thousand pesos (P10,000.00) to Twenty thousand pesos
(P20,000.00) or both, at the discretion of the appropriate court.
he shall be liable to pay damages and compensation for the
minerals removed, extracted, and disposed of. In the case of
associations, partnerships, or corporations, the president and each of the
directors thereof shall be responsible for the acts committed by such
association, corporation, or partnership.
permit needed for the extraction, removal and disposition of quarry resources
quarry permit
quarry resources include, but not limited to ?
andesite, basalt,
conglomerate, coral sand, diatomaceous earth, diorite,
decorative stones, gabbro, granite, limestone, marble, marl, red
burning clays for potteries and bricks, rhyolite, rock phosphate,
sandstone, serpentine, shale, tuff, volcanic cinders and volcanic
glass
who are the qualified persons for a quarry permit
limited to Filipinos or Filipino-owned corporations
area limit for quarry permits
5 hectares or less
term for quarry permit
5 year term; renewable for like terms but not to exceed a total
term of 25 years
permit needed for extraction, removal and disposition of sand and gravel and other
loose or unconsolidated materials
sand and gravel permits
who are the qualified persons for industrial and commercial sand and gravel permits
limited to Filipinos or Filipino-owned corporations
term duration for sand and gravel permits
1 to 5 year terms; renewable for like terms
T or F: only (one) 1 sand and gravel permit shall be granted to a qualified person in a
municipality
True
permit needed for the extraction, removal and disposition of sand and gravel and
other loose or unconsolidated materials necessitating the use
of mechanical processing
Industrial Sand and Gravel Permits
term duration for industrial sand and gravel permit
5 year term; renewable for like terms but not to exceed a total
term of 25 years
permit needed for the Extraction, removal and disposition of sand and gravel and other
loose or unconsolidated materials and used in their natural stat
Commercial Sand and Gravel Permit
area for commercial sand and gravel permit
1 hectare or less
term duration for commercial sand and gravel permits
1 year term renewable for a like period
Permit for the extraction and utilization of sand and gravel or
loose/ unconsolidated materials for construction of buildings
and/or infrastructure for public use
Government Gratuitous Permit
who is the Government Gratuitous Permit for?
Issued to any Government entity/ instrumentality
term duration of Government Gratuitous Permit
Co-terminus with the project stage but not to exceed 1 year
area limit of Government Gratuitous Permit
2 hectares or less in public/private land
what document needs to be submitted for the Government Gratuitous Permit
project proposal
Permit needed for the private Extraction and utilization of quarry, sand and gravel or loose/unconsolidated materials
Private Gratuitous Permit
the Private Gratuitous Permit is issued by ?
any landowner in his/her private land
term duration for Private Gratuitous Permit
60 calendar days; non-renewable
what needed documents are to be submitted when asking for Private Gratuitous Permit
submission of proof of ownership of land and that the materials
shall be used for personal use
Permit needed for the Extraction, disposition and/or utilization of guano and other
organic fertilizer deposits
Guano Permit
location for Guano Permit
caves or confined sites
who is illegible to apply for Guano Permit
applicants domicile is w/in the municipality
term duration for Guano Permit
term of 1 year or upon extraction of specified quantity
T or F: 1 permit per person for Guano permits
False: 1 permit PER CAVE
Permit needed for the Extraction, removal and disposition of loose stones useful as
gemstone
Gemstone Gathering Permit
term duration for Gemstone Gathering Permit
1 yr renewable for like period
what extraction method is need to qualify for Gemstone Gathering Permit
manual gathering without the aid of any tools/mechanical
equipment
term duration for Gemstone Gathering Permit
1 year term renewable for like period
4 common characteristics of Small-scale mining
Labor intensive
Includes Artisanal Small-Scale
Gold Mining
Uses simple implements and
methods
Minimal investment on mining,
infrastructures and processing
Revised Implementing Rules
and Regulations of the People’s Small-Scale Mining Act of 1991
Department Administrative Order No. 2022-03
Enumerate the evolution of the small-scale mining law
PD No. 581
Prescribing heavier
penalty for highgrading
from a mining claim
(Nov. 13, 1974)
PD No. 1150
Amending PD No. 581
and Regulating Panning
or Sluicing for Gold
Inside Mining Claims or
in Public or Private Lands
(June 6, 1977)
PD No. 1899 Establishing
Small-Scale Mining as a
New Dimension in Mineral
Dev’t.
(Jan. 20, 1984)
RA No. 7076
The Small-Scale
Mining Act… Creating
a People’s Small-Scale
Mining Program
(June 27, 1991)
According to EO No. 79, what are the 6 measures to improve SSM activities?
Compliance with RA No. 7076 and PD No. 1586, the EIS
System
Confinement of activities within Minahang Bayan or
People’s Small-Scale Mining Areas
Operationalization of the P/CMRBs
Limitation of metallic minerals to gold, silver and chromite
Prohibition on the use of mercury in small-scale mining;
Provision of technical assistance to small-scale miners
Enumerate the titles of sections 5-8 under DAO 2022-03
Section 5 General Provision
Section 6 Registration and Licensing of Small-scale Miners
Section 7 Areas Open for Declaration as Minahang Bayan
Section 8 Suitability of a Minahang Bayan for Smale-scale Mining
Enumerate the steps in order to apply for SSMC
refer to slide 62
Section 5. General Provision
No small-scale mining shall be undertaken outside
a ________ and that no entity shall engage in small-scale mining without a _______. Likewise, no person shall work or be hired to work in small-scale mining and
other similar operations unless registered with _______.
Minahang Bayan;
Small-scale Mining Contract;
the Board
SECTION 6. Registration and Licensing of Small-scale Miners.
All persons
undertaking or intending to undertake small-scale mining operations within a declared
Minahang Bayan area shall register with the Board as ________, as the case may be,
subject to payment of the corresponding license application fee (unsa na other requirements???)
small-scale miner
SECTION 7. Areas Open for Declaration as Minahang Bayan.
The Board shall
have the authority to ______ and ______ Minahang Bayan in mineralized areas onshore
suitable for small-scale mining, except in areas __________ as provided in
Section 1 of the Executive Order (EO) No. 79 dated July 6, 2012, and shall not exceed ___________, subject to review by the ________ thru the _________.
declare;
set aside;
closed to mining applications;
2 contiguous meridional blocks;
Secretary;
Director
SECTION 8. Suitability of a Minahang Bayan for Small-Scale Mining.
An area
may be considered for declaration as Minahang Bayan, subject to the following conditions, as
determined by the ______ concerned
Regional Office
