Declaration of Policy Governing Principle Definition of Terms
Definition of Terms
All minerals are owned by the State Sustainable development Ancestral lands
Financial or technical assistance
To promote rational exploration, Block / meridional block
Improving the total quality of life Carrying capacity
agreement
development, utilization and Foreign-owned corporation
Principle of sustainable mining Contiguous zone
conservation Gross output
Pro-environment and pro-people mining Contract area
Indigenous cultural communities (ICC)
Role of government and private sector Mining is temporary land use Contractor
Joint venture agreement
To enhance national growth that Optimum land use Co-production agreement
Minerals
effectively safeguards the environment Ecological profile / eco-profile
Progressive and engineered mine rehabilitation Quarry permit
Environmental compliance certificate
and protect the rights of affected Quarry resources
Current best practices (ECC)
communities Private land
Wealth-generating opportunities Environment impact assessment (EIA)
Mineral agreement
Environment-responsible endeavors Environmental impact statement (EIS)
Mineral resource
Exclusive economic zone (ECZ)
Mining activities must be in accord with state Mining operation
policies Offshore v. onshore
Mineral land
Government Management
Government Management
Areas Open to Mining Operations
Ownership of mineral resources in rel. with jura
regalia doctrine and Art. 12 of the Constitution
Republic Act No. 7942` 1. Public lands
2. Private lands
Modes of exploration, development utilization and
`
processing (EDUP) of mineral resources
3. Timberlands
AN ACT INSTITUTING A NEW SYSTEM OF MINERAL 4. Forestlands
1. Direct
RESOURCES EXPLORATION, 5. Ancestral lands
2. Mineral contracts with contractors
Areas closed to mining operations
Mineral reservations 1. military and other government reservations
1. Reservation of strategic raw materials DEVELOPMENT, UTILIZATION, AND CONSERVATION 2. Near or under public or private buildings, cemeteries, `
2. Reservation for scientific, cultural or ecological archaeological and historic sites, bridges, highways,
value waterways, railroads, reservoirs, dams or other
infrastructure projects, public or private works including
Submerged lands within the Contiguous Zone (CZ)
plantations or valuable crops
or Exclusive Economic Zone (EEZ) those covered by valid and existing rights
others when national interests so requires areas expressly prohibited by law
Periodic review of mineral reservations by the areas covered by small-scale miners as defined by law unless
Secretary with prior consent of the small-scale miners
Old growth or virgin forests, proclaimed watershed forest
State recognition of rights of the IPs/ICCs to their
reserves, wilderness areas, mangrove forests, mossy forests,
ancestral lands (Free and prior consent rule) national parks provincial/municipal forests, parks,
greenbelts, game refuge and bird sanctuaries as defined by
law and in areas expressly prohibited under the National
Integrated Protected Areas System (NIPAS) under Republic
Exploration Permit Declaration of Mining Project Feasibility Act No. 7586, Department Administrative Order No. 25,
1. Must be made during the term of the permit series of 1992 and other laws
2. Must be filed with the Bureau
5. The permittee may apply for a mineral production 3. Accompanied with a work program for
Exploration Permit sharing agreement, joint venture agreement, co- development
production agreement or financial or technical Effects of approval of mining project feasibility
Concept of exploration permit assistance agreement over the permit area, which Transfer or Assignment. – An exploration permit
Who grants may be transferred or assigned to a qualified
application shall be granted if the permittee meets the
Terms and conditions person subject to the approval of the Secretary
necessary qualifications and the terms and conditions of upon the recommendation of the Director
Rights and obligations of a permittee
any such agreement: Transfer or Assignment. – An exploration permit
1. right to enter, occupy and explore the area
2. Obligation to discuss with parties to be affected as may be transferred or assigned to a qualified
to the extent, necessity and manner of entry, occupation and person subject to the approval of the Secretary
Provided, That the exploration period covered by the
exploration upon the recommendation of the Director
exploration permit shall be included as part of the
3. Obligation to submit any conflict to a panel of arbitrators
exploration period of the mineral agreement or financial
4. Obligation to undertake exploration work on the area per permit
based on an approved work program or technical assistance agreement.
MINERAL PRODUCTION SHARING AGREEMENT
GOVERNMENT
Exclusive right to conduct mining operations
within a CONTRACT AREA
GOVERNMENT MANAGEMENT
TECHNOLOGY PERSONNEL
GROSS OUTPUT
Co-Production Sharing Agreement
Contractor State
Mining operations Minerals
Financing
Management
Other inputs
Technology
Personnel
JOINT VENTURE AGREEMENT
Contractor
Company
State
Joint Venture Agreement
Contractor • Equity shares
(exclusive right to • Earnings in equity
conduct mineral
operations in a • Share in the gross output
contract area)
• Equity shares
State • Earnings in equity
(owns the minerals) • Share in the gross output
Joint Venture Agreement
Contractor – right to conduct
mining operations
Contractor – shares
Contractor – right to convert the
agreement to any other agreement
or FTAA but for the remaining period
only
Filing and Approval of Mining Agreements
Regional Office / Mines and
Geosciences Bureau
SENR - approves
PRESIDENT – sends copies
to the Congress
Contractor
met the
financial,
fiscal and
During the legal
subsistence
Due notice
obligations
of the
agreement
Withdrawal
from
Mineral
Agreements
Operations
no longer SENR’s
feasible or decision
viable within thirty
(30) days
Not
Subject to
prohibited
the approval
of the SENR
Assignment
/ Transfer of
Mineral
Agreements
Does not
cover an Approval
FTAA through
inaction of
the SENR
Financial guarantee bond in Proof of technical competence,
favor of the Government e.g., track record in mineral
Representations and warranties Representations and warranties
equivalent to the resource EDU; details of that the applicant has all the that the contractor has, or has
expenditure obligation of technology to be employed in the qualifications and none of the access to all the financing,
the applicant for any year proposed operation; details of disqualifications for entering into managerial and technical
technical personnel to undertake the agreement expertise, the technology required
the operation to promptly
Secretary in accordance with the
SWORN STATEMENT containing implementing rules and regulations of
a firm commitment of an this Act, and further, subject to the
relinquishment obligations
amount corresponding to the 5. Representations and warranties that,
expenditure obligation that will Terms and conditions of an FTAA except for payments for dispositions for its
equity, foreign investments in local
be invested in the contract area: enterprises which are qualified for
Provided, That such amount repatriation, and local supplier’s credits
and such other generally accepted
shall be subject to changes as and permissible financial schemes for
may be provided for in the rules raising funds for valid business
purposes, the contractor shall not
and regulations of this Act) raise any form of financing from
domestic sources of funds, whether in
Philippine or foreign currency, for
conducting its mining operations for
and in the contract area
mining operations shall be . Preference to Filipinos in all types
of mining employment for which
conducted in accordance with
they are qualified and that
And such other generally accepted and the provisions of RA 7942 and
technology shall be transferred to
permissible financial schemes for raising its IRR the Filipinos
funds for valid business purposes, the Work programs and minimum Effectively use of appropriate anti-
contractor shall not raise any form of expenditures commitments; pollution technology and facilities
financing from domestic sources of funds, 9. Preferential use of local to protect the environment and to
goods and services to the restore or rehabilitate mined out
whether in Philippine or foreign currency,
areas and other areas affected by
for conducting its mining operations for maximum extent practicable
mine tailings
and in the contract area
With the
MINING
REGULATORY
Any
BOARD Area –
QUALIFIED
PERSON
PUBLIC or
PRIVATE
lands
QUARRY
PERMIT
For building
or If large-scale
construction – permittee
materials may enter
into a
mineral
Grounds for
cancellation
of quarry
Quarry fees
permits Kinds of
and taxes
quarry
permits
QUARRYING
ACTIVITIES
Private
gratuitous Gemstone
gathering
mineral
agreements
with the
Ore transport permit
Social aspect of mining
Mineral trading
Training and
registration – registered
development of Filipino
with the DTI, accredited
manpower in all aspects
by the DENR, registration
of the mining activities
cc the MGB
No absolute prohibition
Mineral processing
in the employment of
agreement – secure from
TRANSPORT, SALE AND qualified foreign
SENR, term – 5 years,
PROCESSING OF MINERALS individuals on highly
max. of 25 years, FOCC
technical and specialized
not prohibited
mining operations
facilities; if not, the same shall
Social aspect of mining be turned over or donated
Training and development tax-free to the proper
of Filipino manpower in all government authorities,
aspects of the mining national or local, to ensure
activities DEVELOPMENT OF MINING that said infrastructure and
facilities are continuously
No absolute prohibition in COMMUNITIES, SCIENCE AND
maintained and utilized by the
the employment of MINING TECHNOLOGY
host and neighboring
qualified foreign individuals
communities
on highly technical and Preferential employment of
specialized mining Filipinos
operations
