RA 7942 Practice Test 2

Question 1

What type of permit allows for the extraction and utilization of guano and other organic fertilizer materials from caves?

Answer 1

Guano Permit

Question 2

What is the government’s share in a Mineral Production Sharing Agreement (MPSA)?

Answer 2

2% of the gross output

Question 3

This section provides the Secretary of the Department the authority to alter or revert mineral reservations to the public domain.

Answer 3

Section 7

Question 4

What type of agreement allows foreign companies to participate in large-scale mining in the Philippines?

Answer 4

Financial or Technical Assistance Agreement (FTAA)

Question 5

What is the required minimum number of years of experience for a mining engineer employed in a mining operation with over 50 workers?

Answer 5

5 years

Question 6

Which agency is tasked with monitoring compliance with the terms and conditions of mineral agreements?

Answer 6

Mines and Geosciences Bureau (MGB)

Question 7

What term is used to describe the unlawful extraction of minerals without a mining agreement or permit?

Answer 7

Illegal mining

Question 8

The right to possess and use explosives within a mining area is covered under which section of the Act?

Answer 8

Section 72 (Timber rights)

Question 9

What must be filed along with a work program for development when declaring mining project feasibility?

Answer 9

Feasibility Study

Question 10

What is the maximum term of validity for a quarry permit as stated in the Act?

Answer 10

5 years

Question 11

A mining contractor must give preference to hiring ________ in all types of employment for which they are qualified, as stated in Section 62.

Answer 11

Filipinos

Question 12

Under Section 84, the excise tax on mineral products is based on the gross ________ from the mining area.

Answer 12

Market value

Question 13

In the event of a valid mining contract existing within a mineral reservation, the lessee’s rights shall not be ________.

Answer 13

Impaired

Question 14

Section 53 specifies that a permit must be obtained for the transport of ________ mineral ores or minerals.

Answer 14

Non-processed

Question 15

Contractors are required to rehabilitate all mined-out, tailings-covered, and disturbed areas through ________ and ________.

Answer 15

Rehabilitation and reforestation

Question 16

The Mines and Geosciences Bureau is responsible for issuing the ________ permit for the gathering of loose gemstones.

Answer 16

Gemstone gathering

Question 17

Under Section 19, no mineral agreement or FTAA shall be allowed in areas such as military reservations without prior ________.

Answer 17

Prior consent

Question 18

Any mining operation that does not comply with environmental standards is subject to immediate ________ or closure.

Answer 18

Suspension

Question 18

The total term of a financial or technical assistance agreement, including renewals, must not exceed ________ years.

Answer 18

25 years

Question 19

The Panel of Arbitrators must include at least two members of the Philippine ________ to resolve mining disputes.

Answer 19

Bar

Question 20

What is the period of review for existing mineral reservations as prescribed by the Act?
a) Every 2 years
b) Every 5 years
c) Every 10 years
d) Annually

Answer 20

b) Every 5 years

Question 21

Who has the authority to grant an Exploration Permit?
a) The President
b) The Secretary of Environment and Natural Resources
c) The Mines and Geosciences Bureau
d) The local government unit

Answer 21

b) The Secretary of Environment and Natural Resources

Question 22

The mineral processing permit granted to foreign-owned corporations is valid for a period of:
a) 3 years
b) 5 years
c) 10 years
d) 25 years

Answer 22

c) 10 years

Question 23

The Regalian Doctrine is a legal principle relevant to mining operations in the Philippines. What does it assert?
a) That private companies own all discovered minerals
b) That all natural resources belong to the State
c) That foreign investors have superior rights over mining areas
d) That indigenous communities have exclusive rights to their land

Answer 23

b) That all natural resources belong to the State

Question 24

Which of the following is not required for the issuance of an environmental compliance certificate (ECC)?
a) An environmental impact statement (EIS)
b) A completed ecological profile
c) Prior consent from non-governmental organizations
d) Prior consultation with local government units

Answer 24

c) Prior consent from non-governmental organizations

Question 25

Which body is responsible for monitoring mining safety and health standards?
a) Department of Health
b) Mines and Geosciences Bureau
c) Department of Environment and Natural Resources
d) Department of Labor and Employment

Answer 25

b) Mines and Geosciences Bureau (MGB)

Question 26

A mining contractor is required to deposit a mine rehabilitation fund as a trust fund for the rehabilitation of areas affected by mining activities. This fund is created based on:
a) The contractor’s annual profit
b) The contractor’s approved work program
c) The government’s share in mineral production
d) The excise tax paid by the contractor

Answer 26

b) The contractor’s approved work program

Question 27

Which type of agreement allows contractors to share in the gross output of the mineral production?
a) Co-production Agreement
b) Joint Venture Agreement
c) Mineral Production Sharing Agreement
d) Financial or Technical Assistance Agreement

Answer 27

c) Mineral Production Sharing Agreement (MPSA)

Question 28

The contractor’s income tax in a financial or technical assistance agreement (FTAA) is part of the government’s:
a) Corporate income tax
b) Special Allowance
c) Share in the gross output
d) Withholding tax

Answer 28

a) Corporate income tax

Question 29

Which law continues to govern small-scale mining in the Philippines, as mentioned in Republic Act No. 7942?
a) Republic Act No. 7076
b) Republic Act No. 7160
c) Republic Act No. 7586
d) Republic Act No. 9267

Answer 29

a) Republic Act No. 7076