1

Chapter I

INTRODUCTION

Problem and Its Setting

Mineral resources are owned by the State and the

exploration, development, utilization, and processing thereof

shall be under its full control and supervision. The State

may directly undertake such activities or it may enter into

mineral agreements with contractors.

Due to the rapid urbanization that generates growth of

construction activity to meet the modern development and

increasing number of housing and infrastructure projects has

immensely boosted the demand for rock aggregates or

colloquially known as sand and gravel aggregates in the

market.

Quarrying has been going on for many years in the

Philippines in support of the country’s infrastructure and

overall economic development. The most important products of

this activity are rock aggregates, colloquially known as sand

and gravel. Quarrying is important, it is also a major

natural resource extractive sector that causes significant

environmental problems. These problems are now only beginning

to be understood. Unlike in mining where operations are

generally large-scale and the degradation impacts are

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obvious, operations in quarrying are relatively small-scale

and the effects are less evident. Moreover, in the minds of

many people, quarrying is only a secondary component of the

entire mining industry.

In Northern Samar, gravel and sand mining is legal as

long as the company or individual is licensed to do so and

abides by existing guidelines. There seems no area in Northern

Samar where gravel and sand extraction are banned. In a recent

press release, the Northern Samar administration through its

Provincial Mining and Regulatory Board (PMRB) has reported

that it has accumulated P 150,100.00 since January 2011 in

enforcing Sangguniang Panlalawigan Ordinance No. 26 Series of

2003 a provincial law that regulates the extraction of Sand

and Gravel in this province. It is mentioned in the said press

release that there are 7 parties facing charges due to alleged

violation of the mining ordinance. There is no mention of

which violations were allegedly made. No mention which area

in Northern Samar the violations happened either. It is our

assumption that enforcement as mentioned in the press release

is largely license fees collection. The possible violations

are, the primary grounds for suspension of a license as listed

by the gravel and sand mining ordinance. Section 32. UNLAWFUL

ACTS. The following shall constitute an unlawful acts

prohibited under this ordinances: Any extraction, removal or

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sale of Sand and Gravel and other loose or unconsolidated

mineral materials from its original sources without permit

issued by the Provincial Governor and without complying with

ECC requirements; All extraction of said materials in excess

of the allowable quantity specified in the permit; All

extraction of the above-mentioned mineral materials outside

the concession area; All person illegally preventing or

obstructing the operation of the permits without justifiable

reasons; All persons selling sand and other loose and

unconsolidated mineral materials without permit from the

Provincial Treasurer; Persons using unregistered motorboats,

sampans, and trucks in transporting those mineral materials

for commercial purposes; Any violation committed by permits

under this ordinance is sufficient ground for suspension,

revocation or cancellation of their permits by the Provincial

Governor, aside from the penalties imposed by the court in

case of conviction the license may be revoked due the Section

20 of the same ordinance #26. Section 20. SUSPENSION AND

REVOCATION OF PERMIT. Permits issued under this Ordinance may

be suspended or revoked by the Governor, motu proprio, or

upon recommendation of PMRB for violation of its term and

conditions or the provisions of this ordinance, or when public

interest or peace and order or when the conditions so demand,

or for ecological reasons. Environment is one of the

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priorities of Hon. Paul Ruiz Daza, District Representative of

Northern Samar, 1st District, which easily applies to the

ecological part of the above clause. Amendments to this

ordinance #26 should be welcomed by the Daza administration

but only if it is initiated by parties affected like Catarman.

For this environment or ecological reasons, and if Catarman

is really serious in saving their river, they should seek the

help to the Sangguniang Panlalawigan or even the Catarman

Mayor Francisco Rosales, to invoke ecology/environment and

request the PMRB to ban gravel and sand extraction in the

Catarman.1

1
Esteria, P. (2017). About Gravel and Sand Mining In Northern Samar. The kahimyang project.
Northern samar. 2022 Primo Esteria, https://kahimyang.com/kauswagan/general-blogs/190/anout-gravel-
and-sand-mining-in-nortern-samar. Date Retrieval: November 2022.
 5

Statement of the Problem

This study determined the quarrying activities in

Catarman, Northern Samar.

This answered the following questions:

1. What is the profile of the respondents in terms of:

1.1 Sex

1.2 Civil Status

1.3 Educational Attainment

1.4 Length of Business operation

1.5 Type of Permit

1.6 Equipment

1.7 Number of Personnel

1.8 Mineral Commodity

2. What are the different quarrying activities in Catarman,

Northern Samar?

3. What are the effects of the quarrying activities to the

resident of the sites in Catarman, Northern Samar?

4. What recommendations can be forwarded to the decision

makers and miners in Catarman, Northern Samar?

Objectives of the Study

This study determined the sand quarrying activities in

Catarman, Northern Samar.

Specifically, this attempted to:

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1. determine the profile of the respondents in terms of:

a. Sex

b. Civil Status

c. Educational Attainment

d. Length of Business Operation

e. Type of Permit

f. Equipment

g. Number of personnel

h. Mineral Commodity;

2. determine the different quarrying activities in

Catarman, Northern Samar;

3. determine the effects of quarrying activities to the

residents of the sites in Catarman, Northern Samar; and

4. draw recommendations to the decision makers and

miners in Catarman, Northern Samar.

Significance of the Study

The results and findings of this study will be of great

significance to the following:

Residents. This will provide safety and warnings to the

resident of the different sites in Catarman, Northern Samar

that this work is hazardous most especially if it is done

illegally. This study will bring them awareness of the fact

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that removing too much sediments from the quarrying sites

leads to erosion and shrinking of river banks.

Owner/s. This will help them identify the effects of

this kind of work. This will help them come up with decisions

that could help the residents and the laborers from taking

sand and may lead them to become a more responsible owner.

Also, this may serve as an eye-opener for the owners that,

these activities will affect it the community.

Philippine National Police. In cooperation with the

Local Government, this will help them come up with a

justifiable solution to evaluate illegal sand quarrying

activities in Catarman, Northern Samar.

University of Eastern Philippines, Department of

Criminology. This will add up to the department’s collection

of quantitative researches which can be used for reading and

reference purposes by the students and faculty members.

Future Researchers. This will serve as an essential

reference for future researchers who want to conduct similar

studies in sand quarrying activities in different quarrying

sites.

Scope and Limitations of the Study

This study focused on the sand quarrying activities in

Catarman, Northern Samar. This determined the profile of the

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respondents employed in sand quarry and the effects of the

problems to the residents in quarry sites in Catarman,

Northern Samar.

The availability of respondents, time and financial

aspects were considered limitations of this study.

Theoretical Framework

This study was primarily anchored on the seminal

article, A Theory of Glacial Quarrying for Landscape

Evolution Models proposed by Hallet, this theory assumes that

the limited process by sub-critical crack growth rate. These

models are grounded on a power-law rule that relates bedrock

erosion rate to either the sliding speed or discharge of

glaciers. This theory anchors large-scale models of glacial

erosion to the primary small-scale process that these models

hope to simulate and reinforces recent emphasis on the role

of bedrock fractures in accelerating geomorphic processes.

Moreover, by linking basal water pressure to erosion rate,

the theory can improve efforts with numerical models to study

feedbacks between subglacial hydrology and landscape

evolution.2

2
Hallet, (1996). Glacial Landscape Evolution by Subglacial Quarrying: A Multi-Scale Computational
Approach: Power Law for Subglacial Quarrying. Journal of Geophysical research: earth surface 121(11).
Aarhus, Denmark. 2008-2022 ResearchGate GmbH. Date Retrieved: November 2022
 9

This was later added by Kondolf (2007) discussed the

importance of an environmental assessment management and

monitoring program as part of extraction license in America.

This is necessary to minimize negative impacts as mitigation

and restoration strategy will be included. Monitoring

regularly is important to ensure proper mining. Mitigation

processes include minimizing extent of mining, repairing and

rehabilitation of mines as well as replacement of resources.

There is need for restoration and compensation of biotic

integrity of ecosystems. Most soil mining affect environment

and India is inclusive as Saviour noted that the country is

32 working hard to tackle negative impacts. The miners are

supposed to draft an Environmental Management Plan (EMP)

which ensures that potential impacts of projects are assessed

and incorporated into early stages of development planning.

The preparation of EMP had become a statutory requirement for

granting permits in India. Clearance should be obtained from

Department of Environment (DOE) and Ministry of Environment

and Forests before permits are issued.3

3
Kondolf MG (2007): Geomorphic and Environmental Effects of In stream Gravel Mining.
Landscape and Urban Planning.
 10

Conceptual Framework

This study assumes that the residents in quarrying sites

are the victims of these acts which are done improperly and

illegally. Sand and gravel are important natural resources in

economic development worldwide; but the continuous removal

has adverse effects on the environment and the safety of

residents in different quarrying sites.

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Paradigm

A. Profile of the
respondents in terms
of:
• Sex
• Civil Status
• Educational
Attainment Quarrying Activities in
• Length of business Catarman, Northern Samar
• Existing Permit
• Equipment
• Number of personnel
• Mineral Commodities

B. Type of Quarry
Activities
C. Effect of Quarrying
Activities
D. Recommendations

Figure 1. A Diagram showing the concept of the study.

.
 12

Definition of Terms

The terms used in this study are defined conceptually

and operationally.

Age. The time of life which a person or animal has lived.4

Operationally, it is the basis of the researcher to find the

respondents for the study.

Commercial Sand and Gravel Permit. Any qualified person

may be granted a permit by the provincial governor to extract

and remove sand and gravel or other loose or unconsolidated

materials which are used in their natural state, without

undergoing processing from an area of not more than five

hectares.5 Operationally it refers to a permit for

selling/reselling sand and gravel.

Civil Status. This refers to the status of a person

whether s/he is single, married, widowed or separated.6

Operationally, it refers to the status of a children employed

in sand quarry whether s/he is married or single.

Educational Attainment. This refers to the highest level

of education that a person has successfully completed. In

4
“Age”. Merriam-Webster.com Dictionary, Merriam Webster, Accessed November 2022.

5
Arroyo, G. M., Alvarez H., and Tatad F., Republic Act No. 7942: An Act Instituting A New System
Of Mineral Resources Exploration, Development, Utilization, And Conservation. Chapter VIII Quarry
Resources Section 46, Retrieved November 2022.

6
“Civil Status” Local Civil Registry Manual.
 13

this study, it is the level of education of the children

employed in sand quarrying.

Equipment. It is a piece of material things needed for

a particular activity. Operationally, it pertains to the

instrument used in quarry.

Income. It is the money earned from doing work or

receive from investment.7 Operationally it pertains to the

money that a children received in working in sand quarry.

Length of Employment. It refers to the period of time a

worker being employed in his/her job. In this study, it refers

to the time of the children being employed in sand quarry.

Number of Personnel. This refers to the persons work in

an organization. Operationally defined as to the number of

employee in the quarrying business.

Problems. It means something that is a source of trouble,

worry and it is difficult to deal with. Operationally, it

refers to children’s source of trouble in sand quarrying.

Sand Quarry. This is an intentional removal of sand in

coastal areas such as rivers, dunes and ocean beds. In this

study, it pertains to the work of children in sand quarrying.

Sex. It refers to the physical differences between

people who are male, female, or intersex. Operationally, this

7
“What is Income? ”https://www.investopedia.com. Retrieved November 2022.
 14

to determine the extent of the respondents whether they are

male or female.

Quarry Permit. Any qualified person may apply to the

provincial/city mining regulatory board for a quarry permit

on privately-owned lands and/or public lands for building and

construction materials such as marble, basalt, andesite,

conglomerate, tuff, adobe, granite, gabbro, serpentine, inset

filling materials, clay for ceramic tiles and building

bricks, pumice, perlite and other similar materials that are

extracted by quarrying from the ground. The provincial

governor shall grant the permit after the applicant has

complied with all the requirements as prescribed by the rules

and regulations.8 Operationally, define as permit to conduct

quarry operations involving cement raw materials, marble,

granite, sand and gravel and construction aggregates.

8
Ibid.
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Chapter II

REVIEW OF LITERATURE

Research Literature

The researchers reviewed several studies related to the

present study. The proceeding researches cited are

significant and have close bearing to this study.

Saviour defined soil as a mineral which protect the

environment, buffer to strong tidal waves and storms, habitat

for crustacean species and marine organisms. The mining of

pit sand and gravel can be done on open areas, beaches, inland

dunes, mountain sides while river sand is extracted from

riverbeds and banks. Unscientific mining has led to

degradation accompanied by subsistence and consequential mine

fires, severe ecological imbalance around mining areas. The

practice is becoming an environmental issue as the demand for

sand as an important mineral resource is increasing in the

construction industry.9

Goddard realized that decisions on where to mine, how

much and how often requires definition of reference state and

sand budget. Reference state is the minimal acceptable

physical and biological condition of a channel. Though

9
Saviour, N.M. (2012). Environmental impacts of Soil and Sand Mining: A Review. International
Journal of Science, Environment and Technology.
 16

reference state is difficult to determine, a general

knowledge of fluvial processes is necessary to minimize

detrimental effects of mining. A sand budget for a particular

extraction area for example a stream or open area should be

done to first determine the amount of sand that can be removed

without causing degradation and erosion. Before doing a sand

budget, consider mining methods to be used, particle size,

characteristics of the sand, riparian vegetation and

magnitude as well as frequency of hydrologic events after

disturbance. Therefore, minimization of the negative effects

of sand and gravel mining requires a detailed understanding

of the response of site to these disturbances.10

Hill and Kleynhan discussed various methods of mining

sand and gravel. Dry pit mining is a method used when sand is

extracted above water table from a dry stream bed and exposed

bars using conventional bulldozers, scrapers and loaders. Wet

pit mining involves extraction of sand and gravel from below

water table stream channel or a perennial river using

hydraulic excavator or dragline. Dewatering can be done in

advance to allow easy excavation though this depends on

deposit thickness, permeability of the ground as well as after

use and restoration requirements. Bar skimming or scalping is

10
Goddard, J. (2007). Land Degradation and Rehabilitation. Sydney: University of South Wales
Press.
 17

a method used when only the top layer of soil is removed by

scraping without excavating below summer water table which is

the level of underground water in summer season.11

Stebbins highlighted that in State of Maine, sand and

gravel deposits cover up to five percent of the land. The

resources are mainly used in construction and pumping

drinking water which had increased demand so there are many

sand and gravel pits. Approximately two hundred and sixty

acres of land is used for mining by both companies with and

without licenses. Construction grade sand and gravel has high

volume hence the resources cannot be transported over long

distance. Large trucks are used as transport for up to forty-

eight kilometers, therefore most pits are near the consumer

as these bulky commodities normally cannot economically stand

costs of long distances transportation. Most mining is done

near the consumer in USA. The once abundant supply of gravel

and sand is rapidly diminishing in areas surrounding cities.12

Schaetzl noted that there are four basic operations used

to extract sand and gravel from open pit mines in USA. The

operations include site clearing to remove vegetation, then

mining, processing and finally reclamation of the mined area.

11
Hill, L. and Kleynrans, C.J. (1999). Authorisation and Licensing of Sand Mining/Gravel Extraction,
in terms of Impacts on In-stream and Riparian Habitats. Journal of Mining Science.

12
Stebbins, M. (2006). Can Gravel Mining and Water Supply Wells coexist. Maine: University of
Maine. 109
 18

Machinery commonly used for mining includes bulldozers,

tractor scrapers, front end loaders and stone crushers. The

mining is done almost twenty-four hours in order to keep up

with the high demand internally and externally for sand and

gravel. Schaetzl explained some of the negative environmental

impacts experienced by various states in America where sand

and gravel mining are going on. He noted that depletion of

sand in the streambed and along coastal areas causes deepening

of rivers and estuaries as well as enlargement of river mouths

and coastal inlets in Michigan and California. He further

indicated that excessive mining leads to excavation as well

as threatening bridges, bridge piers and buried pipelines.

Goddard indicated that gravel extraction and processing have

significant negative effects on scenic landscapes. Too much

mining intensifies coastal and exposed hillside erosion,

accumulation of seawater up rivers, leaving coasts more

vulnerable to extreme weather conditions.13

According to Goddard soil mining operations began in

1930s in Australia to supply the expanding Sydney building

market and continued into 1990s with an estimate of seventy

million tons of sand removed. Most important commercial

sources of sand and gravel are river floods, river channels

13
Schaetzl, R. (1990): Sand and Gravel Mining for Aggregate. https://www.msu.edu/-soils.
Retrieved Date: November 2022.
 19

and glacial deposits. Goddard further noted that soil

extraction and processing have significant impacts on scenic

landscapes. Excessive extraction intensifies coastal and

exposed hillside erosion, causing accumulation of seawater

upstream of rivers, leaving the coasts more vulnerable to

extreme weather conditions. Soil mining contributes to

construction of buildings and development but can cause

permanent loss of soil as well as major habitat destruction.14

Kuttipuran reviewed soil mining in Indian communities

and explained that as urban areas grow, less wood is used

with more concrete structures being required leading to

demand for a low prices sand. Sand and gravel are most

accessible cheap and basic raw materials for construction

industry in India. There is a business of indiscriminate sand

mining in public spaces in India. Soil mining is an

environmental issue in India and public awareness of illegal

extraction in states of Maharashtra and Goa is going on.15

Bagchi supported Kuttipuran on that construction boom

fueled the demand for sand and gravel facilitating

uncontrolled extraction which threatens existence of river

systems. Illegal mining of minerals resources is rampant in

14
Goddard, J. (2007). Ibid.

15
Kuttipuran, M. (2006): RIVERS. Physical Modifications. Singapore: Donnelley.
 20

India such that the country’s natural resources are destroyed

as forests are clean felled. Pereira researched on sand mining

in India by studying three villages in Maharashtra and

realized that as global demand for sand is exploding and

rising rapidly, the sources of sand and gravel such as

riverbeds, beaches, creeks are being mined faster than nature

can replenish. This creates a highly skewed supply-demand

situation. Pereira noted that India has the third largest

construction business in the world after USA and China, so

sand and gravel are required in large quantities. Mining is

done both legally and illegally. The country did not have a

regulatory and monitoring framework for excavation of sand

sustainably which increased the illegal mining rampantly.

There had never been much control because people thought that

the resources are low value minor minerals and inexhaustible.

This has led the Mumbai High Court to issue a ban on sand

mining in 2010 to all licensed and unlicensed miners who were

damaging the riverbeds increasing threat of floods. Demand

and prices of sand had increased from US$ 110 to 300 US$ per

truck load. According to Bagchi, there is contamination of

sand aquifer water due to formation of ponds as harvesters

tend to dig on areas with thick sand bed creating water ponds.

Water accumulates in ponds combined with biodegradable

materials from flora and fauna wastes causing contamination.

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Besides, stagnant water on gravel extraction ponds, form an

environment conducive to mosquito breeding.16

Conceptual Literature

The review of conceptual literature is presented in

topical form covering the concepts and framework used in this

study: quarrying operations or activities, effects of

quarrying activities on community livelihood, economic, and

socio-cultural diversity.

Quarrying operation or activities. Quarrying is an

activity where stones are dug for the purpose of being used

inbuilding, making roads through cutting, digging or

blasting. Quarrying is a huge supporter of local economic

development: as the use of extracted material enhances trade,

creating jobs for most people who depend on this for their

livelihoods aside from other economic activities. Quarry is

a short-term activity with long term effects it comes along

with the promises of wealth and jobs but it brings high

environmental costs. The main aim of the study was to unearth

impacts that quarrying activities has on health of the quarry

workers and people living next to the quarries as well as

physical environment.

16
Bagchi, P. (2010). Unregulated Sand Mining Threatens Indian Rivers. The Journal India Together.
 22

Quarrying is a very important activity in human life as

it helps in the development of infrastructure such as roads

in a given area. The quarrying activities that are carried

out by man affect our environment in one way or the other.

Both physical and the biological environment are affected by

these activities.

Quarrying like many other man-made activities causes a

significant impact on the environment. In particular, it is

often necessary to blast rocks with explosives in order to

extract material for processing but this method of extraction

gives rise to noise pollution, air pollution, damage to

biodiversity and habitat destruction.

Quarrying is a process that undergoes different step.

The first step of quarrying is prospecting an area to locate

an ore. This involves physically going out into the field and

searching for different types of minerals and fossils to give

you an indication of where you might find an ore body. The

company that intents to carry out the exploitation of the

mineral then gets licenses from the ministry concerned. Next

is the exploration of the area, which involves finding and

determining the extent and value of the mineral-rich ore,

through several different methods including hands on

fieldwork, remote sensing, and drilling. This is then

followed by the actual excavation of minerals from the ground.

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This is achieved in many different ways, depending on what

type of mine it is and what you want to take out of the

ground. After quarrying activity is finished there is need

for ecological rebuilding, this involves the reclamation of

the quarry site to make the land suitable for usage in the

future. This means returning the land as much as you can to

its former self, after all the quarrying is done. The land

becomes degraded after it is quarried, so it is important to

restore it as much as possible. 17

According to Eshiwani, to be able to preserve the human

culture and civilization the way it was during the industrial

revolution, it is necessary to recover the resources obtained

from quarrying processes so that houses’ groundwork can be

created, the substructure of transportation using cement,

asphalt, crushed stone and concrete in addition to various

manufacturing utilizations including roofing, binders,

additives and abrasives. Globally, a huge number of

individuals make their living by working in the quarrying

industry; hence attempting to eliminate this particular

industry can cost innumerable households their livelihoods.

Consequently, to rectify the unfavorable outcomes

17
Azad, S.A. and Dr. Ashish Mittal (2006). The Stone Quarrying Industry around Delhi Impact on
Worker and the Environment.
 24

accompanying quarrying, it is essential to make use of the

drained expanses in different conducts when the quarries are

no longer functional. The possible alterations of quarrying

locations to different supportable and sustainable

utilizations can contribute in rectifying the unfavorable

outcomes of quarrying as well as producing locations with

better societal and ecological conditions.

The exploration of the area, which involves finding and

determining the extent and value of the mineral-rich ore,

through several different methods including hands on

fieldwork, remote sensing, and drilling. This is then

followed by the actual excavation of minerals from the ground.

This is achieved in many different ways, depending on what

type of mine it is and what you want to take out of the

ground. After quarrying activity is finished there is need

for ecological rebuilding, this involves the reclamation of

the quarry site to make the land suitable for usage in the

future. This means returning the land as much as you can to

its former self, after all the quarrying is done. The land

becomes degraded after it is quarried, so it is important to

restore it as much as possible.18

18
Eshiwani, F. (2014). Effects of Quarrying Activities on the Environment in Nairobi County: A Case
Study of Embakasi District. Master’s Thesis. University of Nairobi.
 25

Rock quarrying and stone crushing is a global

phenomenon, and has been the cause of concern everywhere in

the world, including the developed nations. Quarrying

activity is an important activity because it provides much of

the materials used in traditional hard flooring, such as

granite, limestone, marble, sandstone, slate and even just

clay to make ceramic tiles. However, like many other man-made

activities, quarrying activities cause significant impact on

the environment.19 In particular, it is often necessary to

blast rocks with explosives in order to extract material for

processing but this method of extraction gives rise to noise

pollution, air pollution, damage to biodiversity and habitat

destruction.

There are a small number of studies (mostly African case

studies) documenting the impacts on households where men

migrate out to mining and quarrying areas. These document the

usually positive role of remittances that they send back to

their families, but also the changing role of women, as they

take on additional responsibilities as household heads.20

With CSR acting as an incentive to find new ways of

mitigating and managing the social and environmental impacts

19
Okafor, F.C. (2006). Rural Development and the Environmental Degradation versus Protection:
In P. O. Sada and T.Odemerho (ed.). Environmental Issues and Management in Nigerian Development.

20
Francis, E. (2000). Making a Living: Changing Livelihoods in Rural Africa. Routledge, London.
 26

of quarrying and mining, a variety of novel methods have been

tried in European, North American and Australasian countries.

Some of this link the restoration of quarrying and mining

sites to vegetation types which match natural habitats, and

in some cases these restoration schemes have been designed to

incorporate the needs or preferences of communities local to

the post-extractive sites. For example, restoration work in

quarries in North Wales, took into account local community

preferences for different habitat and landscaping schemes,

and quarry sites in other parts of the UK have been restored

to conservation sites with educational centers, and

recreational facilities, as well as shopping centers and

theatres. There are even interactive visualization tools

which enable restoration designs to be created and assessed

by quarry managers and community stakeholders alike. Similar

schemes may have utility in developing country contexts, not

least because the livelihoods of the majority of people

outside urban areas are linked to the use of natural

resources. The opportunities to provide mitigation measures

based on habitat restoration, which provides a range of

sustainable goods and services that support local

communities, should provide an exciting opportunity for CSR.

Most quarry sites are unsafe for operation and most

quarry operators also fail to observe environmental and

 27

safety measures when carrying out mining activities. Most

quarries use of explosives for blasting operations, this has

made the site weaker. Most the workers do not wear protective

gear and as a result they are exposed to great danger. Lack

of clear regulatory framework for the management of quarries

in the country and inadequate and uncoordinated enforcement

of existing legislation has led to haphazard and unsafe quarry

operations.21

EMCA Mines and quarries where explosives and machinery

used are located in designated areas and not less than two

kilo meters away from human settlements. Any person carrying

out construction, demolition, mining or quarrying work shall

ensure that the vibration levels do not exceed 0.5 centimeters

per second beyond any source property boundary or 30metres

from any moving source.

Unfortunately, quarrying involves several activities

that generate significant amounts of noise. The excavation of

the mineral itself involves considerable noise, particularly

if blasting methods are used. Following this, the use of

powered machinery to transport the materials as well as

possibly processing plants to crush and grade the minerals,

all contribute even more noise to the environment. Such

21
Eshiwani, F. (2014)., loc cit.
 28

extraction of raw materials from their natural habitats by

mining, drilling and harvesting affect the natural

environment considerably.

In India quarrying has affected many of the people

working in the mining industry. According to Azad & Ashish

stone quarrying and crushing has been known as a highly

hazardous work, whereby workers are affected by many

debilitating occupational health hazards and diseases. Mostly

the migrant workers are engaged in this highly unorganized

industry. The most common exposure is from silica dust, which

causes Silicosis among the exposed workers.22

Silicosis is a disabling, non-reversible and sometimes

fatal lung disease caused by overexposure to respirable

crystalline silica. Silica is the second most common mineral

in the earth's crust and is a major component of sand, rock,

and mineral ores.

Over exposure to dust that contains microscopic

particles of crystalline silica can cause scar tissue to form

in the lungs, which reduces the lungs' ability to extract

oxygen from the air. In addition to silicosis, inhalation of

crystalline silica particle has been associated with other

diseases, such as bronchitis and tuberculosis. Some studies

22
Azad, S.A. and Dr. Ashish Mittal (2006)., loc cit.
 29

also indicate an association with lung cancer. There is no

cure for the disease, but it is 100 percent preventable if

employers, workers, and health professionals work together to

reduce exposures by using proper protective gear.

The other health hazards could be due to noise pollution,

heavy manual labor, minor or major injuries and accidents at

workplace, and long working hours. Lack of basic sanitation

facilities, drinking water, and shelter add to aggravation of

the bad working conditions. The both operations of quarrying

and crushing being a hazard to environment as well as to human

beings, they require continuous monitoring of the work place

as well as the workers. Mining operations cause

deforestation, loss of vegetation, soil erosion, ground water

level changes and pollution, which can lead to an ecological

imbalance.

The people living close to the quarries are also affected

by the activities that go on in that area. In Village Pali in

India, the safety of human beings is not put into

consideration. There is no personal protective equipment

being provided to the workers, helmets, safety belts, masks,

safety shoes are foreign things. It is alleged that

approximately 200 have been buried alive in this area during

the mine blasting operation in the past decade only. The

worker and their families who are residing close to these

 30

units are more vulnerable to the silica exposure. The

children, the women and elderly all are breathing this toxin

day and night.

According to environmental experts, the uncontrolled

expansion of quarrying in Senegal has led to coastal erosion,

a reduction in the area of available farmland and skin and

lung problems for the quarry workers and people who live

nearby. The effects have forced the government of the day to

stop issuing more permits to the people who want to engage in

the quarrying activities in the affected areas within the

country.

According to Aigbedion, large amount of dust from the

cement factories and mining operations in the Nigerian

limestone quarries are discharged daily into the air.

Similarly, a lot of air-borne particulate matters are

generated by the numerous stone crushing industries in the

country. When the air is laden with such dust, it causes

health hazards for some people. For example, pollution

studies around Sagamu and Ewekoro cement works in Ogun State

have shown that several people are suffering from eye pain,

and asthmatic attack due to the dust-laden air that prevails

within a few kilometers in radius of the factories.23

23
Aigbedion, I.N. (2005). Environmental Pollution in the Niger-Delta, Nigeria. Inter-Disciplinary J.
Enugu-Nigeria Retrieved from: http://www.academicjournals.org/ijbc. Date Retrieved: November 2022.
 31

Temporary or permanent land sterilization may result in

the original landform permanently altered and the original

vegetation cover destroyed. The visual impact of the quarries

extends over larger areas as noticeable scars of high color

contrast, reducing the aesthetic appeal of the landscape and

deteriorate in the scenic quality of areas where tourism may

be a major constituent of income.

Positive impact of quarrying activities. According to

environmental protection office of Addis Ababa, there were

over 400 quarrying projects undertaken in the peri-urban

areas of the city and in the area there have been quarries

used to produce cobble stone that contribute to the

construction of paved road and provide both economic and

social benefits. However, the intensive activities of

quarrying disregard to the environment impact leads to a

series of socio-economic and environmental problems.

According to National Council of Bhutan, quarrying

activities generate employment and contribute to a country’s

gross national product, both through production for the local

market and for export trade. Kuntala Lahiri-Dutt, also added

that stone quarrying generates considerable employment

opportunities as it is a relatively intensive labor, under-

mechanized industry. There is need to ensure that mining

operations are conducted in such a way that the broader scale

 32

benefits to society are openly acknowledged and that

concerted efforts are made to ensure that these benefits can

be sustained even when mining activities have stopped. Hence,

the study area is one of the most potential quarry sites that

create large job opportunity and, supply different

construction materials mainly cobble stone for road

constructions.24

Stone quarrying, in understanding how individual

resources amidst a competitive formal market and restrictive

government policy. Stone workers use the different assets

(human, capital, financial, physical, natural and social

capital) they have in order to achieve the different

livelihood outcomes. In an effort to ensure sustainable

development, laws and policies are often in place to limit

over exploitation of these resources.25

In the study of Nene, revealed that some of the men have

been employed as quarry workers and a substantial number of

women in the area have become food vendors at the quarry

sites. In terms of infrastructural development, the

24
Abate, Z. (2016). Impacts of Stone Quarrying on Environment and Livelihood of Local Community
in Addis Ababa Peri-Urban Areas: The Case of Hana Mariam Cobble Stone Quarry Site. Master’s Thesis. Addis
Ababa University.

25
Helmore, K. and Singh, N. (2001) Sustainable Livelihoods Building on the Wealth of the poor. USA:
Kumarian Press.
 33

Bueryonye-Klo-Begoro road has a gravel and made motorable

even in the wet season. Limestone quarrying has brought about

both benefits and costs to the Lower Manya Krobo District.

His study has revealed that the communities have gained some

benefits from quarrying. Some of the men in the area have

been employed as quarry workers to reduce the unemployment

canker among the people. Also, the surface of the road from

Bueryonye to Klo-Begoro has been compacted with screenings by

GHACEM quarry to allow easy movement of both haul and

commercial vehicles and help reduce fugitive dust emission.

The Lower Manya Krobo District Assembly agreed that tolls are

collected from trucks that purchase aggregates to enhance

their revenue generation.26

There are two reasons why land degradation generally

results from mineral extraction: first is industrial

development and secondly short-term economic benefits such as

reaching production goals and employment. The quarrying

activity has affected the environment in both negative and

positive ways. Scholars in different parts of the world have

26
Nene, N.J. (2011). Assessment of The Effects of Quarrying Activities on Some Selected
Communities in The Lower Manya Krobo District. Award of M. Phil Environmental Science Degree’s Thesis.
University Of Ghana.
 34

tried to carry out research in order to identify how this

activity has impacted the environment.27

The benefits of the quarrying activity should trickle

down to the people living in the neighboring area; this can

be in form of good roads and other infrastructure. According

to the benefits of quarrying include socio-economic

development and growth due to internal revenue and/or foreign

exchange earnings. His study attempts to establish the

positive effects of quarrying on the environment in Embakasi.

There is need to live in harmony with the natural environment.

Several efforts have been made in order to reduce the effect

of quarrying or mining to the environment. For example, in

the World Summit on Sustainable development (WSSD) in 2002,

in Johannes burg, South Africa- the governments adapted an

implementation plan for sustainable development whish

committed state to address the environmental, economic,

health and social impacts and benefits of mining. This was to

promote transparency and accountability for sustainable

mining and mineral development.28

According to the study of Eshiwani, the quarries have

both negative and positive effects. Apart from form the

27
Adekoya, J.A. (2003). Environmentals Effect of Solid Minerals Mining. J.Phys.Sci.Kenya. Retrieved
from:http://www.academicjournals.org/ijbc. Date Retrieved: November 2022.

28
Aigbedion, I.N. (2005). loc cit.
 35

negative effects the quarry has positive effects to the people

that live nearby. There persons who are involved in business

due to the quarry workers purchasing power, there have been

able to get employment from the quarry either directly or

indirectly, and there are able to get material that they use

in the construction.29

General conditions for hiring workers in the mining

industry are based on the employment provisions of the

Philippine Mining Act of 1995. The act requires that a

contractor shall give preference to Filipino citizens in all

types of mining employment within the country as long as these

citizens are qualified to perform the corresponding work with

reasonable efficiency and without hazard to the safety of the

operations. In addition to this, mining contractors shall not

be hindered from hiring employees of their choice, subject to

the provisions of the Commonwealth Act No. 613 as amended for

technical and specialized work. Such efforts should continue

encouraging investment into mining along with job creation

and the development of both upstream and downstream mineral

processing activities. The non-metallic mining and quarrying

operations include the production of crushed stone, sand and

gravel for use in the construction of roads and buildings.

29
Eshiwani, F. (2014). loc cit.
 36

Many other man-made activities including quarrying

involve the production of significant amounts of waste. Some

types of quarries do not produce large amounts of permanent

waste, such as sand and gravel quarries, whereas others will

produce significant amounts of waste material such as clay

and silt.30

However, there is still potential for damage to the

environment particularly with water contamination. Plants are

major components of the ecosystem – a complex interaction

between the biotic and abiotic entities of the environment.

The activity discharges dust that settles not only on land,

plants and trees but also on surface waters used for drinking

and other domestic chores.

Related Studies

The review of related studies is reviewing existing

works carried out in this study. Quarrying operations or

activities, effects of quarrying activities on community

livelihood, economic, and socio-cultural diversity.

A study conducted by Magayes et al., stated that child

labor in sand quarrying has not received much attention as

30
Wang, L., Zhang, J. L & Liu, L.M. (2010). Diversification of Rural Livelihood Strategies and its Effect
on Local Landscape Restoration in the Semiarid Hilly Area of the Loess Plateau, China. [Online] Available at:
www.wileyonlinelibrary.com Date Retrieved: November 2022.
 37

some other forms of child labor. In remote areas in the

Philippines, specifically the Barangay Capacujan, Palapag,

Northern Samar the children employed in sand quarrying must

be educated and parents must know the about this prohibition

of child labor. The notion that children are being exploited

and forced in to labor, while not receiving education, which

crucial to development. It is unfortunate that the joy of

childhood eluding scores of poor children who working child

labor in domestic hands. Abject to poverty, illiteracy of

parents, drought, lack of social security network, inadequate

schools or lack of schools, expense of schooling, large family

size and neglect of parent, have deprived children education,

and transformed them into child laborers.31

The study of Acopiado H. J et al., reported that people

have always extracted useful materials from the ground.

Mining and quarrying extract a wide range of useful materials

from the ground such as coal, metals, and stone. These

substances are used widely in building and manufacturing

industry, while precious stones have long been used for

adornment and decoration. Mining and quarrying involve

investigating potential sites of extraction, then getting the

31
Magayes D, & Rivera, (2022). Profile, Problems and Needs of Children employed in Sand
Quarrying in Barangay Capacujan, Palapag, Northern Samar: A Case Study. Bachelor of Science in
Criminology Thesis, University of Eastern Philippines, Northern Samar.
 38

required material out of the ground, and finally processing

with heat or chemicals to get out the metal or other substance

of interest. All these operations may use large amounts of

water. In Lobo, Batangas, there is a white sand beaches whose

ocean floor slopes gradually for nearly 200 meters (660 ft)

before a drop-off. It also has protected mangrove forests and

fish sanctuaries. According to the Philippine Statistics

Authority, the municipality has a land area of 175.03 square

kilometers. Its proximity to ocean or water bodies makes it

an ideal zone for quarrying operations. Despite the privilege

given by the government to different mining and quarrying

industries, the said industries are still bound by the law

because mining and quarrying can be very destructive to the

environment. They have a direct impact on the countryside by

leaving pits and heaps of waste material. The extraction

processes can also contaminate air and water with sulfur

dioxide and other pollutants, putting wildlife and local

populations at risk. More careful use of natural resources,

including recycling, and also restoration efforts after

mining and quarrying can help limit these environmental

impacts.32

32
Acopiado H.J., Catud B. E., Ebora E.A., & Jimenez C. (2017). Quarrying Industry in Lobo, Batangas:
A Case Study. Bachelor of Secondary Education Major in Social Studies. Batangas Sate University. Batangas
City.
 39

Chapter III

METHODOLOGY

Locale of the Study

This study was conducted in Catarman, Northern Samar.

Catarman, officially the Municipality of Catarman is a 1st

class municipality and capital of the province of

the province of Northern Samar, Philippines. According to

the 2020 census, it has a population of 97,879 people.  It is

the largest municipality in terms of land area and population

in the province. It is the commercial, educational,

financial, political and government center of the province.

Catarman lies on the northern part of Samar Island, bounded

to the east by Mondragon, to the west by Bobon, to the south

by Lope de Vega, and to the north by the Philippine Sea. On

the Pacific coast are flat lowlands with the interior

characterized by outlying low hills. Mount Puyao in Barangay

Liberty is the highest peak in the area. The Municipality of

Catarman is politically subdivided into 55 barangays,

seventeen (17) of them are in the poblacion.33

33
"2015 Census of Population, Report No. 3 – Population, Land Area, and Population
Density" (PDF). Philippine Statistics Authority. Quezon City, Philippines. August 2016. ISSN 0117-
1453. Archived (PDF) from the original on May 25, 2021. Retrieved November 2022
 40

Figure 2. Spot map of study area.

 41

Research Design

This study utilized a descriptive type of research. A

survey method was used to measure the existing phenomenon and

to use the data for problem solving.

Population and Sampling Techniques

This study used purposive-quota sampling. Seventy (70)

respondents who are the residents of the quarrying sites,

laborers and the owners in Catarman, Northern Samar were

considered as samples.

The Respondents

The researchers, involved a total of seventy (70)

respondents to be able to gather data. Specifically, this

were the owners of the quarrying sites, laborers and the owner

in Catarman, Northern Samar.

Research Instrument

A survey questionnaire was used to gather the data needed

in this study. The researchers used this instrument to ensure

that the respondents personally answered all the queries. The

English version was translated into the local dialect to

facilitate better understanding of the questions by the

respondents.
 42

The instrument was composed of four parts. Part 1 dealt

on the profile of the respondents in sand quarrying in terms

of as sex, civil status, educational attainment, length of

business, existing permit, equipment, number of personnel,

types of quarrying. Part 2 dealt with the different quarrying

activities in Catarman, Northern Samar. Part 3 identified the

effects of sand quarrying to the residencts of the sites in

Catarman, Northern Samar. And, Part 4 drew out the

recommendations which can be forwarded to address sand

quarrying in Catarman, Northern Samar.

Validation of the Research Instrument

The researchers-made questionnaire in gathering the data

on the sand quarrying activities in the different quarrying

sites in Catarman, Northern Samar needed validation.

The survey questionnaire used in this study was pre-

tested among the residents in the quarrying sites, laborers

and the owners in Bobon, Northern Samar.

Data Gathering Procedures

The researchers sought permission of the operator of

sand quarrying in Catarman, Northern Samar through a letter

signed by the research adviser, the research professor, the

Chairman of the Department and the Dean of the College to

 43

conduct the study. Upon the approval by the operator of the

sand quarry, the researchers started gathering the data using

a survey questionnaire. And finally, the researchers

collected, recorded, tallied and tabulated the data to

facilitate the statistical computation, analysis and

interpretation of data.

Statistical Treatment of Data

The data gathered were tabulated and analyzed

statistically using frequency counts, ranking and percentage

computation.

Formula for percentage computation:

P=f/n x 100

Where:

P – percentage

f - frequency

n – total number of respondents

100 - constant multiplier

 44

Chapter IV

PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA

This chapter discusses results and findings of the

research on sand quarrying activities in Catarman, Northern

Samar. The data were collected through individual

interviews, questionnaire survey and observations. The

researchers considered and sampled some areas where pit sand,

river sand and gravel are mined around Catarman, Northern

Samar to investigate the extent of the effects caused by

miners on the environment. Seventy (70) respondents were

chosen as a sample to take part in the questionnaire survey.

Interviews were conducted to people who are directly and

indirectly involved in sand quarrying activities in Catarman,

Northern Samar.

Demographic Profile of Respondents

The respondents in this study were both males and

females. The inclusion criteria for the questionnaire survey

was used on any male or female who was available in a sampled

household and voluntarily take part in the study.

 45

Table 1.1
Sex Distribution of the Respondents

Sex Frequency Percentage

Male 64 91.43%
Female 6 8.57%
Total 70 100%

Table 1.1 shows 64 males and 6 females were considered

for data analysis. The data show that 91.43% was male and

8.57% was female. More males were willing and interested in

taking part in the research because sand quarrying is a male-

dominated activity. Very few women are involved in sand

quarrying activities in Catarman, Northern Samar and rarely

visit the areas so are not aware of what exactly happens in

the quarrying sites.

Table 1.2
Civil Status Distribution of Respondents

Civil Status Frequency Percentage

Single 60 85.71%
Married 9 12.86%
Widower 1 1.43%
Total 70 100%

Table 1.2 shows that 60 or 85.71 percent was single, 9

or 12.86 percent was married and 1 or 1.43 percent was

widowed. Majority of the respondents were single because some

of the laborers found marriage as financial burden for them.

 46

Very few are married considering that these married

respondents were the owners of the quarrying business.

Table 1.3
Educational Attainment Distribution

Educational Frequency Percentage

Attainment
College graduate 12 17.14%
College level 8 11.43%
High school 0 0%
graduate
Highschool level 20 28.57%
Elementary 21 30%
graduate
Elementary level 9 12.86%
Total 70 100%

Table 1.3 shows that 21 or 30 percent was elementary

graduate, 20 or 28.57 percent was high school level, 12 or

17.14 percent was college graduate, 9 or 12.86 percent was

elementary level and 0 percent is a high school graduate.

Majority of the respondents were working over education due

to lack of money which motivated them to feed their family at

a young age.

Table 1.4
Length of Business Operation Distribution

Length of Business Frequency Percentage

12 years and one 5 7.14%
day up
 47

9 years and one day 45 64.26%

to 12 years
6 years and one day 5 7.14%
to 9 years
3 years and one day 5 7.14%
6 years
3 years and below 10 14.29%
Total 70 100%

Table 1.4 shows that 64.26% has had the longest running

business in sand quarrying in Catarman, Northern Samar with

a range of 9 years to 12 years and one day; 14.29% ranging to

3 years and below; and 7.14% are 12 years and one day up; 9

years and 6 years and one day; and 6 years and 3 years and

one day. It shows that the longest run of the business has

the greatest production output, generate more sales and

profit and see larger business as more credible and stable

than the smaller businesses.

Table 1.5
Type of Permit Distribution

Type of permit Frequency Percentage

Commercial Sand and 49 70%
Gravel
Quarry Permit 21 30%
Total 70 100%

Table 1.5 shows that 49 or 70 percent was Commercial

Sand and Gravel Permit and 21 or 30 percent had Quarry permit

Majority of the respondents were permitted to conduct

 48

commercial sand and gravel because it is the most common

permit issued by the Philippine Mining Regulatory Board.

Table 1.6.1
Distribution of Extraction Equipment

Equipment (for extraction) Number of Rank

Equipment
Shovels 41 1
Bucket Wheels 18 2
Backhoes 12 3
Front End Loaders (Loaders) 8 4
Bull Dozers (Dozers) 7 5.5
Skid Steers 7 5.5
Graders / Scrapers 5 7
Cranes 4 8
Draglines 5 9
Dredges 2 10
*Multiple Responses

Table 1.6.1 shows that most of the quarry business used

shovel for extraction with 41.41% counted 41 shovels used,

18% used bucket wheels, 12.12% used backhoes, 8.08% used front

end loaders (loaders), 7.07 used skid steers and bull dozers,

5.05% used draglines and graders/scrapers, 4.04% used cranes

and 2.02 used dredges.

Table 1.6.2
Transportation Facilities Distribution

Equipment (Transportation) Number of Equipment Ranking

Bins / Hoppers / Feeders 21 1
Motorboat 17 2
 49

Haul Trucks 14 3
In-Pit Conveyors 13 4
Overland Conveyors 9 5
*Multiple Responses

Table 1.6.2 shows that most of the quarry business used

bins / hoppers / feeders for transportation with 28.38 counted

21 bins / hoppers / feeders used; 24.32 used In-Pit Conveyors;

22.97% using Motorboat; 18.92% using front Haul Trucks and

12.16% used Overland Conveyors.

Table 1.6.3
Processing of Equipment

Equipment (Processing) Number of Ranking

Equipment
Screens (Washing and Sorting) 23 1
Crushers 19 2
*Multiple Responses

Table 1.6.3 shows that most of the quarry business used

Screens (Washing and Sorting) for processing with 54.76

counted 23 Screens used and 45.24% used crushers.

Table 1.6.4
Facilities) Maintenance) Operations Equipment Distribution

Equipment Number of Ranking

(Facilities / Maintenance / Equipment
Operations)
Personnel Transport Vehicles 12 1
(Light Trucks)
Water Trucks 9 2
Generators 8 3
Forklifts 6 4
*Multiple Responses
 50

Table 1.6.4 shows that most of the quarry business used

Personnel Transport Vehicles (Light Trucks) for operation

with 34.29% counted 12 Personnel Transport Vehicles (Light

Trucks) used; 25.71% used Water Trucks; 22.86% used

Generators; and 17.14% used Forklifts.

This table shows the equipment in quarrying activities

in Catarman, Northern Samar. The quality and number of

equipment results the performance whether poor quality

equipment impacts each quarrying business. The higher the

number of the equipment means the higher production.

Table 1.7
Number of Personnel

Numbers of Personnel Frequency Ranking

20-30 35 1
11-20 28 2
1-10 7 3
*Multiple Responses

Table 1.7 shows 50% of quarrying business ranging 20-30

personnel; 40% for quarrying business had a number of 11-20

personnel; and 10% of quarrying business had 10 personnel.

Quarrying business takes a large number of personnel because

manpower is proportional to productivity. The more people are

available to work, the faster the work can be completed.

Conversely, a lack of adequate manpower prevents businesses

from completing tasks.

 51

Table 1.8
Distribution of Mineral Commodities

Mineral Commodities Frequency Ranking

Natural sand and gravel 49 1
Aggregates boulders 14 2
Mountain soil 7 3
Total 10
*Multiple Responses

Table 1.8 shows that 70% of quarrying business had a

natural sand and gravel types of commodities quarried, 20%

for aggregates boulders and 10% for mountain soil. Sand and

gravel have a huge number of available mineral commodities in

the different quarrying sites due to its various uses,

including their use in mixing cement materials such as

concrete, mortar, and plaster. Many construction projects

would not be completed well without the use of these

aggregates. And our homes and cities would not be what they

are today without these valuable resources.

Table 2
Activities in Quarrying Sites

Activities in quarrying Frequency Ranking

sites
Washing 46 1
Screening 34 2
Ripping 28 3
Drilling & Blasting 18 4
Crushing & Screening 16 5
Pit Run Removal 13 6
*Multiple Responses
 52

Table 2 shows that 29.68% of activities in quarrying

sites are washing, 21.94% for screening, 18.06% ripping,

11.61% for drilling & blasting, 10.32% for crushing &

screening, and 8.39% for pit run removal. Most of the

activities were washing to maximize product yield, product

quality and minimize waste.

Table 3
Effects of Sand Quarrying Distribution

Effects of Sand Quarrying Frequency Ranking

Deepening of River Beds 40 1
Riverbank Collapse 38 2
Biodiversity Loss 19 3
Coastal Erosion 18 4
Sinking Deltas 13 5
*Multiple Responses

Table 4 shows the effects of sand quarrying. Most

respondents indicated that they are aware of sand quarrying

effects in their areas so they observed the following impacts:

deepening of riverbeds with 28.17%, riverbank collapse

26.76%, biodiversity loss with 13.38%, coastal erosion with

12.68% and other impacts observed by 9.86% of respondents

include: Accidents during sand quarrying such as soil is

extracted and on roads caused by trucks transporting it, land

degradation, and pollution.

 53

Table 4
Recommendations to the decision makers and miners in
Catarman, Northern Samar

Recommendations Frequency Rank

Authorities are to strengthen laws 21 1.5
on not allowing people to enter
vulnerable areas through close
monitoring of the mining occurrence
of landslides.
Covering sand and gravel with nets: 21 1.5
when transporting the resources to
be a prerequisite to reduce damage
of other motorists’ windscreens from
falling stones.

The government through the DENR 18 3

should call for a high level of
decision-making forum involving all
stake holder to discuss the problem
of illegal sand and gravel mining
and come up with immediate solutions
which curb environmental damage
It is important to have an 12 4.33
Environmental Assessment Management
and Monitoring Program. Close
monitoring ensures that there is
proper mining and no gravel
recruitment downstream.
All miners must draft and submit an 12 4.33
environmental Management Plan (EMP)
in advance to ensure that potential
negative impacts of their mining
projects are assessed and
incorporated into development plan.
This becomes prerequisite to get
permit.
The DENR should evolve a policy 8 4.33
compelling to miners to reinvest and
repair old disused mine sites to
reduce occurrence of landslides.
Mining operations must be conducted 1 7
in a manner that minimizes or
eliminates adverse impacts on both
in stream and riparian components of
 54

ecosystems comprising of biota and

habitats.
Deployment of 24hours security to 0 8
guard mining areas and apprehend
illegal miners with help of village
watch groups and clusters. Only
licensed miners will be allowed into
extraction and illegal miners will
not have access. All residents must
be involved in apprehending and
reporting illegal miners to
authorities instead of befriending
them.
Total 93

Table 4 shows that most of the respondents recommended

that covering sand and gravel with nets: when transporting

the resources to be a prerequisite to reduce damage of other

motorists’ windscreens from falling stones and authorities

are to strengthen laws on not allowing people to enter

vulnerable areas through close monitoring of the mining

occurrence of landslides with 22.58%,19.35% recommended that

the the government through the DENR should call for a high

level of decision making forum involving all stake holder to

discuss the problem of illegal sand and gravel mining and

come up with immediate solutions which curb environmental

damage; 12.90% recommended that all miners must draft and

submit an environmental Management Plan (EMP) in advance to

ensure that potential negative impacts of their mining

projects are assessed and incorporated into development plan.

 55

This becomes prerequisite to get permit and it is important

to have an Environmental Assessment Management and Monitoring

Program. Close monitoring ensures that there is proper mining

and no gravel recruitment downstream. 8.60% recommended that

the DENR should evolve a policy compelling to miners to

reinvest and repair old disused mine sites to reduce

occurrence of landslides, 1.06% recommended that Mining

operations must be conducted in a manner that minimizes or

eliminates adverse impacts on both in stream and riparian

components of ecosystems comprising of biota and habitats and

0% recommended the deployment of 24hours security to guard

mining areas and apprehend illegal miners with help of village

watch groups and clusters. Only licensed miners will be

allowed into extraction and illegal miners will not have

access. All residents must be involved in apprehending and

reporting illegal miners to authorities instead of

befriending them.
 56

Chapter V

SUMMARY, CONCLUSION AND IMPLICATIONS, AND RECOMMENDATIONS

Summary

This study was conducted and designed to determine the

sand quarrying in Catarman, Northern Samar. Specifically, it

sought to find out the socio-demographic profile of the

respondents in sand quarrying in terms of as sex, civil

status, educational attainment, length of business, existing

permit, equipment, number of personnel, types of quarrying,

the different quarrying activities, identify the effects of

sand quarrying to the residents of the sites in Catarman,

Northern Samar.

Seventy (70) respondents were the owners, laborers of

the quarrying sites in Catarman, Northern Samar. The study

used a descriptive survey questionnaire. The method used to

determine the respondents was purposive sampling technique.

The data were categorized, analyzed, and interpreted using

frequency counts, percentages, weighted mean, and ranking.

The results of the study revealed that most of the

laborers are males, single, and majority of the laborers had

no formal education, the longest run of the business ranging

to 9 years to 12 years and one day, Commercial Sand and Gravel

Permit is the most common permit issued by the Philippine

 57

Mining Regulatory Board, the quality and number of equipment

results the performance, the higher the number of the

equipment means the higher production, quarrying business has

a natural sand and gravel types of quarry,

To improve the sand quarrying activities, the

respondents recommended that authorities strengthen the laws

of not allowing people to enter vulnerable areas through close

monitoring of the mining occurrence of landslides and cover

the sand and gravel with nets when transporting the resources

to be a prerequisite to reduce damage of other motorists’

windscreens from falling stones.

Conclusion and Implications

The study on quarrying activities in Catarman, Northern

Samar revealed both positive and negative effects. It

highlighted the views of affected people through

questionnaires and interviews. Majority of the respondents

were not happy with environmental effects, specifically, the

deepening of riverbeds and riverbank collapse.

The research justified that there are both positive and

negative environmental impacts of sand quarrying. It revealed

that river sand and gravel is the soil component quarry most

in construction industry because of its strength as a resource

and has many uses which include building strong structures,

plastering, making foundations and bricks. The researchers

 58

discovered that pits at extraction sites were increasing on

every visit while rivers at sampled areas were widening and

deepening. Method of quarry commonly used washing, screening

and ripping. There are two main methods of loading being used

by miners which are the use of front end loaders by licensed

miners while illegal miners mostly prefer the cheaper way of

hiring manual loaders who use shovels.

Sand quarrying is very important activity for economic

development in both developed and developing world.

Generally, mining disturbed land surface areas, leaving huge

open pits which are difficult physically and economically to

rehabilitate at the time mining cease. Excessive mining leads

to depletion of resources on both riverbeds and open lands.

There is a need for laws across the globe by high level

decision makers to enforce solutions to environmental

problems and implement all the stated recommendations.

Recommendations

Based on the data gathered from the respondents the

following recommendations are forwarded:

1. Authorities are to strengthen laws of not allowing people to

enter vulnerable areas through close monitoring of the mining

activities in all areas.

 59

2. Covering sand and gravel with nets when transporting the

resources to be a prerequisite to reduce damage of other

motorists’ windscreens from falling stones.

3. A similar study be conducted in another area with a more

comprehensive and intensive focus on sand quarrying

activities, which can answer related questions about sand

quarrying activities with sufficient time and resources.

 60

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and Livelihood of Local Community in Addis Ababa Peri-
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Acopiado, H.J., Catud B. E., Ebora E.A., & Jimenez C.

(2017). Quarrying Industry in Lobo, Batangas: A case
study in Bachelor of Secondary Education Major in Social
Studies. Batangas State University. Batangas City.

Adekoya, J.A. (2003). Environmental Effect of Solid Minerals

Mining. J.Phys.Sci.Kenya. Retrieved
from:http://www.academicjournals.org/ijbc. Date
Retrieved: November 2022

“Age”. Merriam-Webster.com Dictionary, Merriam Webster,

Aigbedion, I.N. (2005). Environmental Pollution in the Niger-

Delta, Nigeria. Inter-Disciplinary J. Enugu-Nigeria
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Date Retrieved: November 2022

Aigbedion, I.N. (2005). Ibid.

Azad, S.A and Dr. Ashish Mittal, (2006).

Bagchi, P. (2010). Unregulated Sand Mining Threatens Indian

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“ChildLabor”http://www.ilo.org/ipec/facts/lang-en/index.htm.
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Total Population by Province, City, Municipality and
Barangay. NSO, Retrieved: November 2022

Eshiwani, F. (2014). Effect of Quarrying Activities on the

Environment in Nairobi County: A Case Study of Embakasi
District. Master’s Thesis.University of Nairobi.

Esteria, P. 2017. About gravel and Sand Mining in Northern

Samar. The kahimyang project. Northern samar. 2022 primo
esteria,https://kahimyang.com/kauswagan/general-
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blogs/190/anout-gravel-and-sand-mining-in-nortern-
samar. Date Retrieved: November 20229

Francis, E. (2000) Making a Living: Changing Livelihoods in

Rural Africa. Routledge, London.Goddard J 2007. Land
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South Wales Press.

Hallet, (1996). Glacial landscape evolution by subglacial

quarrying: a multi-scale computational approach: power
law for subglacial quarrying. Journal of Geophysical
research: earth surface 121(11). Aarhus, Denmark. 2008-
2022 ResearchGate GmbH. Date Retrieved: November 2022

Helmore, K. and Singh, N. (2001). Sustainable Livelihoods;

Building on the Wealth of the poor. USA: Kumarian Press.

Hill, L. and Kleynrans CJ. (1999). Authorization and

Licensing of Sand Mining/Gravel Extraction, in terms of
Impacts on In-stream and Riparian Habitats. Journal of
Mining Science.

Kondolf, MG. (2007): Geomorphic and Environmental Effects of

in Stream Gravel Mining. Landscape and Urban Planning.

Kuttipuran, M. (2006): RIVERS: Physical Modifications.

Singapore: Donnelley.

Magayes, D. & Rivera (2022). Profile, Problems and

Needs of Children employed in Sand Quarrying in Barangay
Capacujan, Palapag, Northern Samar: A case study of
Bachelor of Science in Criminology Thesis, University of
Eastern Philippines, Northern Samar.

“Need”. Merriam-Webster.com Dictionary Merriam-Webster

Nene, N.J. (2011).Assessment Of The Effects Of Quarrying

Activities On Some Selected Communities In The Lower
Manya Krobo District. Award Of M. Phil Environmental
Science Degree’s Thesis. University Of Ghana.

Okafor, F. C. (2006). Rural Development and the Environmental

Degradation versus Protection: In P. O. Sada and
T.Odemerho (ed.). Environmental Issues and Management in
Nigerian Development.
 62

“Parents Income” “What is income?

”http://www.investopedia.com. Reclamation/
Rehabilitation Guidelines for Sand and Gravel Mineral
Concession Operators Document.34,8 5138 Merchandising
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http://www.census.gov. Date Retrieved: NOVEMBER 2022

Schaetzl, R. (1990): Sand and Gravel Mining for

Aggregate:https://www.msu.edu/-soils. Date Retrieved:
November 2022.

Saviour, N.M. (20120. Environmental impacts of Soil and Sand

Mining: A Review. International
Journal of Science, Environment and Technology.

Wang, L., Zhang, J. L & Liu, L.M. (2010). Diversification

of Rural Livelihood Strategies and its Effect on
Local Landscape Restoration in the Semiarid Hilly
Area of the Loess Plateau, China. [Online] Available
at: www.wileyonlinelibrary.com. Date Retrieved:
November 2022
 63

Appendix A
Letter to the Dean

Republic of the Philippines

University of Eastern Philippines
COLLEGE OF ARTS AND COMMUNICATION
University Town, Northern Samar

Department of Criminology

September 21, 2022

MARIA ALFE G. BANAWIS, DALL
Dean, College of Arts and Communication
University of Eastern Philippines
University Town, Northern Samar

Madam:
The undersigned are BS Criminology senior students of
the University of Eastern Philippines, and are presently
conducting a thesis titled: “SAND QUARRYING ACTIVITIES IN
CATARMAN, NORTHERN SAMAR.”
In connection to this, please allow us to conduct a data
gathering to the respondents.
Thank you so much.

Respectfully yours,
Noted: ROILAN E. GAJANA
JOY E. PRESADO, DPA KANE JOHN ALDRIN GAYO
Research Professor Researchers

ATTY. FRANCO ARCHIE N. TONOG

Research Adviser

JOSE E. GABON, JR., DCJE

Chair, Criminology Department
 64

Appendix B
Letter to the Department Chair

Republic of the Philippines

University of Eastern Philippines
COLLEGE OF ARTS AND COMMUNICATION
University Town, Northern Samar
Department of Criminology

September 21, 2022

JOSE E. GABON JR., DCJE
Chair, Criminology Department

Sir:

The undersigned are BS Criminology senior students of

the University of Eastern Philippines, and are presently
conducting a thesis titled: “SAND QUARRYING ACTIVITIES IN
CATARMAN, NORTHERN SAMAR.”
In connection to this, please allow us to conduct a data
gathering from the respondents.
Thank you so much.

Respectfully yours,

Noted: ROILAN E. GAJANA

JOY E. PRESADO, DPA KANE JOHN ALDRIN GAYO

Research Professor Researchers

ATTY. FRANCO ARCHIE N. TONOG

Research Adviser
 65

Appendix C
Letter to the Provincial Mining Regulatory Board

Republic of the Philippines

University of Eastern Philippines
COLLEGE OF ARTS AND COMMUNICATION
University Town, Northern Samar
Department of Criminology

September 21, 2022

Sir/Madam:

The undersigned are BS Criminology senior students of

the University of Eastern Philippines, and are presently
conducting a thesis titled: “SAND QUARRYING ACTIVITIES IN
CATARMAN, NORTHERN SAMAR.”
In connection with this, the researchers would like to
ask permission to conduct this study in your office. They
further request the staff of the Northern Samar Provincial
Mining Regulatory Board to serve as respondents of this study.
The researchers further assure you that all the data
which will be gathered from this study will be kept
confidential and will only be used for this study.
Thank you.

Respectfully yours,
Noted: ROILAN E. GAJANA

JOY E. PRESADO, DPA KANE JOHN ALDRIN GAYO

Research Professor Researchers

ATTY. FRANCO ARCHIE N. TONOG

Research Adviser

JOSE E. GABON, JR., DCJE

Chair, Criminology Department

Recommending Approval:

MARIA ALFE G. BANAWIS, DALL

Dean, College of Arts and Communication
 66

Appendix D
Letter to the Respondents

Republic of the Philippines

University of Eastern Philippines
COLLEGE OF ARTS AND COMMUNICATION
University Town, Northern Samar

Department of Criminology

September 21, 2022

Sir/Madam:
The undersigned are BS Criminology senior students of
the University of Eastern Philippines, and are presently
conducting a thesis titled: “SAND QUARRYING ACTIVITIES IN
CATARMAN, NORTHERN SAMAR.”
In connection with this, the researchers would like to
request your full cooperation by answering the attached
questionnaire honestly and to the best of your knowledge.
The researchers further assure you that all the data
which will be gathered from this study will be kept
confidential and will only be used for this study. Thank you.
Respectfully yours,
Noted: ROILAN E. GAJANA

JOY E. PRESADO, DPA KANE JOHN ALDRIN GAYO

Research Professor Researchers

ATTY. FRANCO ARCHIE N. TONOG

Research Adviser

JOSE E. GABON, JR., DCJE

Chair, Criminology Department

Recommending Approval:

MARIA ALFE G. BANAWIS, DALL

Dean, College of Arts and Communication
 67

Appendix E
List of Mining Permittees
 68

Appendix F
Survey Questionnaire

“SAND QUARRYING ACTIVITIES IN THE DIFFERENT QUARRYING SITES

IN CATARMAN, NORTHERN SAMAR”

Part 1. Profile of the respondents in terms of:

NAME(optional): ___________________________________________
Sex:
( ) Male
( ) Female

Civil Status:
( ) Single
( ) Married
( ) Widow/er

Educational Attainment:
( ) College Graduate
( ) College Level
( ) Highschool Graduate
( ) Highschool Level
( ) Elementary Graduate
( ) Elementary Level

Length of business:
( ) 3years and below
( ) 6years
( ) 9years
( ) 12years
( ) 12years and up

Type of Permit
Please specify:

_______________________________________________
 69

Equipment:
Please specify:
_______________________________________________
_______________________________________________
_______________________________________________
_______________________________________________
Number of Personnel
( ) 1-10
( ) 11-20
( ) 21-30
( ) 31-40
( ) 41-50
( ) 51 and above
Types of quarry
( ) Hard rock
( ) Natural sand
( ) Natural sand and gravel
( ) Sandstone
( ) Rock aggregates
( ) Mountin soil
( ) Marine/ocean
( ) limestone
 70

PART II: MULTIPLE RESPONSES

The Different Activities in Quarrying Sites:
( ) Drilling & Blasting
( ) Washing
( ) Ripping
( ) Screening
( ) Pit Run Removal
( ) Crushing & Screening

PART III: MULTIPLE RESPONSES

The Effects of Sand Quarrying on the Residents:
( )Riverbank Collapse
( )Deepening Of River Beds
( )Sinking Deltas
( )Coastal Erosion
( )Biodiversity Loss
( )Others
Specify:
______________________________________________

PART IV: MULTIPLE RESPONSES

Recommendations
What are the recommendations can be forwarded to the
decision makers and miners of sand quarrying in Catarman,
Northern Samar?

 The government through the DENR should call for a high

level of decision-making forum involving all stake
holder to discuss the problem of illegal sand and gravel
mining and come up with immediate solutions which curb
environmental damage
 It is important to have an Environmental Assessment
Management and Monitoring Program. Close monitoring
ensures that there is proper mining and no gravel
recruitment downstream.
 Deployment of 24 hours security to guard mining areas
and apprehend illegal miners with help of village watch
groups and clusters. Only licensed miners will be
allowed into extraction and illegal miners will not have
access. All residents must be involved in apprehending
 71

and reporting illegal miners to authorities instead of

befriending them.
 Mining operations must be conducted in a manner that
minimizes or eliminates adverse impacts on both in
stream and riparian components of ecosystems comprising
of biota and habitats.
 Authorities are to strengthen laws on not allowing
people to enter vulnerable areas through close
monitoring of the mining occurrence of landslides.
 The DENR should evolve a policy compelling to miners to
reinvest and repair old disused mine sites to reduce
occurrence of landslides.
 All miners must draft and submit an environmental
Management Plan (EMP) in advance to ensure that
potential negative impacts of their mining projects are
assessed and incorporated into development plan. This
becomes prerequisite to get permit.
 Covering sand and gravel with nets: when transporting
the resources to be a prerequisite to reduce damage of
other motorists’ windscreens from falling stones.

Thank you for your cooperation.

Gajana, Roilan E.
Gayo, Kane John Aldrin
Researchers
 72

Appendix G
Photo Documentation

Sand Quarrying Sites for Mountain Soil at

Brgy. Galutan, Cataman, Northern Samar

The researchers interview the respondents while working

 73

The respondents transferring the sand from motorboat to the

site using improvised bins.

One of the effects of quarrying, the eroding cliff

 74

Equipment used in sand quarrying activities.

75
76
 77

Sample of mineral commodity

78
 79

Researchers and the Respondents

 80

Appendix H

Copy of RA 7942

Republic of the Philippines

Congress of the Philippines Metro Manila

Republic Act No. 7942

AN ACT INSTITUTING A NEW SYSTEM OF MINERAL RESOURCES

EXPLORATION, DEVELOPMENT, UTILIZATION AND CONSERVATION

Be it enacted by the Senate and House of Representatives of

the Philippines in Congress assembled:

CHAPTER I
INTRODUCTORY PROVISIONS

Section 1
Title

This Act shall be known as the "Philippine Mining Act of

1995."

Section 2
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
responsibility of the State to promote their rational
exploration, development, utilization and conservation
through the combined efforts of government and the private
sector in order to enhance national growth in a way that
effectively safeguards the environment and protect the rights
of affected communities.

Section 3
Definition of Terms
 81

As used in and for purposes of this Act, the following terms,

whether in singular or plural, shall mean:

a. Ancestral lands 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.

b. Block or meridional block means an area bounded by

one-half (1/2) minute of latitude and one-half (1/2)
minute of longitude, containing approximately eighty-
one hectares (81 has.).

c. Bureau means the Mines and Geosciences Bureau under

the Department of Environment and Natural Resources.

d. Carrying capacity refers to the capacity of natural

and human environments to accommodate and absorb change
without experiencing conditions of instability and
attendant degradation.

e. Contiguous zone refers to water, sea bottom and

substratum measured twenty-four nautical miles (24 n.m.)
seaward from the base line of the Philippine
archipelago.

f. Contract area means land or body of water delineated

for purposes of exploration, development, or utilization
of the minerals found therein.

g. Contractor means a qualified person acting alone or

in consortium who is a party to a mineral agreement or
to a financial or technical assistance agreement.

h. Co-production agreement (CA) means an agreement

entered into between the Government and one or more
contractors in accordance with Section 26(b) hereof.

i. Department means the Department of Environment and

Natural Resources.

j. Development means the work undertaken to explore and

prepare an ore body or a mineral deposit for mining,
including the construction of necessary infrastructure
and related facilities.
 82

k. Director means the Director of the Mines and

Geosciences Bureau.

l. Ecological profile or eco-profile refers to

geographic-based instruments for planners and decision-
makers which presents an evaluation of the environmental
quality and carrying capacity of an area.

m. Environmental compliance certificate (ECC) refers to

the document issued by the government agency concerned
certifying that the project under consideration will not
bring about an unacceptable environmental impact and
that the proponent has complied with the requirements of
the environmental impact statement system.

n. Environmental impact statement (EIS) is the document

which aims to identify, predict, interpret, and
communicate information regarding changes in
environmental quality associated with a proposed project
and which examines the range of alternatives for the
objectives of the proposal and their impact on the
environment.

o. Exclusive economic zone means the water, sea bottom

and subsurface measured from the baseline of the
Philippine archipelago up to two hundred nautical miles
(200 n.m.) offshore.

p. Existing mining/quarrying right means a valid and

subsisting mining claim or permit or quarry permit or
any mining lease contract or agreement covering a
mineralized area granted/issued under pertinent mining
laws.

q. Exploration means the searching or prospecting for

mineral resources by geological, geochemical or
geophysical surveys, remote sensing, test pitting,
trenching, drilling, shaft sinking, tunneling or any
other means for the purpose of determining the
existence, extent, quantity and quality thereof and the
feasibility of mining them for profit.

r. Financial or technical assistance agreement means a

contract involving financial or technical assistance for
large-scale exploration, development, and utilization of
mineral resources.
 83

s. Force majeure means acts or circumstances beyond the

reasonable control of contractor including, but not
limited to, war, rebellion, insurrection, riots, civil
disturbance, blockade, sabotage, embargo, strike,
lockout, any dispute with surface owners and other labor
disputes, epidemic, earthquake, storm, flood or other
adverse weather conditions, explosion, fire, adverse
action by government or by any instrumentality or
subdivision thereof, act of God or any public enemy and
any cause that herein describe over which the affected
party has no reasonable control.

t. Foreign-owned corporation means any corporation,

partnership, association, or cooperative duly registered
in accordance with law in which less than fifty per
centum (50%) of the capital is owned by Filipino
citizens.

u. Government means the government of the Republic of

the Philippines.

v. Gross output means the actual market value of minerals

or mineral products from its mining area as defined in
the National Internal Revenue Code.

w. Indigenous cultural community means a group or tribe

of indigenous Filipinos who have continuously lived as
communities on communally-bounded and defined land since
time immemorial and have succeeded in preserving,
maintaining, and sharing common bonds of languages,
customs, traditions, and other distinctive cultural
traits, and as may be defined and delineated by law.

x. Joint venture agreement (JVA) means an agreement

entered into between the Government and one or more
contractors in accordance with Section 26(c) hereof.

y. Mineral processing means the milling, beneficiation

or upgrading of ores or minerals and rocks or by similar
means to convert the same into marketable products.

z. Mine wastes and tailings shall mean soil and rock

materials from surface or underground mining and milling
operations with no economic value to the generator of
the same.
 84

aa. Minerals refers to all naturally occurring inorganic

substance in solid, gas, liquid, or any intermediate
state excluding energy materials such as coal,
petroleum, natural gas, radioactive materials, and
geothermal energy.

ab. Mineral agreement means a contract between the

government and a contractor, involving mineral
production-sharing agreement, co-production agreement,
or joint-venture agreement.

ac. Mineral land means any area where mineral resources

are found.

ad. Mineral resource means any concentration of

minerals/rocks with potential economic value.

ae. Mining area means a portion of the contract area

identified by the contractor for purposes of
development, mining, utilization, and sites for support
facilities or in the immediate vicinity of the mining
operations.

af. Mining operation means mining activities involving

exploration, feasibility, development, utilization, and
processing.

ag. Non-governmental organization (NGO) includes

nonstock, nonprofit organizations involved in activities
dealing with resource and environmental conservation,
management and protection.

ah. Net assets refers to the property, plant and

equipment as reflected in the audited financial
statement of the contractor net of depreciation, as
computed for tax purposes, excluding appraisal increase
and construction in progress.

ai. Offshore means the water, sea bottom and subsurface

from the shore or coastline reckoned from the mean low
tide level up to the two hundred nautical miles (200
n.m.) exclusive economic zone including the archipelagic
sea and contiguous zone.

aj. Onshore means the landward side from the mean tide
elevation, including submerged lands in lakes, rivers
and creeks.
 85

ak. Ore means a naturally occurring substance or

material from which a mineral or element can be mined
and/or processed for profit.

al. Permittee means the holder of an exploration permit.

am. Pollution control and infrastructure devices refers

to infrastructure, machinery, equipment and/or
improvements used for impounding, treating or
neutralizing, precipitating, filtering, conveying and
cleansing mine industrial waste and tailings as well as
eliminating or reducing hazardous effects of solid
particles, chemicals, liquids or other harmful
byproducts and gases emitted from any facility utilized
in mining operations for their disposal.

an. President means the President of the Republic of the

Philippines.

ao. Private land refers to any land belonging to any

private person which includes alienable and disposable
land being claimed by a holder, claimant, or occupant
who has already acquired a vested right thereto under
the law, although the corresponding certificate or
evidence of title or patent has not been actually issued.

ap. Public land refers to lands of the public domain

which have been classified as agricultural lands and
subject to management and disposition or concession
under existing laws.

aq. Qualified person means any citizen of the

Philippines with capacity to contract, or a corporation,
partnership, association, or cooperative organized or
authorized for the purpose of engaging in miring, with
technical and financial capability to undertake mineral
resources development and duly registered in accordance
with law at least sixty per centum (60%) of the capital
of which is owned by citizens of the Philippines:
Provided, That a legally organized foreign-owned
corporation shall be deemed a qualified person for
purposes of granting an exploration permit, financial or
technical assistance agreement or mineral processing
permit.
 86

ar. Quarrying means the process of extracting, removing

and disposing quarry resources found on or underneath
the surface of private or public land.

as. Quarry permit means a document granted to a qualified

person for the extraction and utilization of quarry
resources on public or private lands.

at. Quarry resources refers to any common rock or other

mineral substances as the Director of Mines and
Geosciences Bureau may declare to be quarry resources
such as, 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: Provided,
That such quarry resources do not contain metals or
metallic constituents and/or other valuable minerals in
economically workable quantities: Provided, further,
That non-metallic minerals such as kaolin, feldspar,
bull quartz, quartz or silica, sand and pebbles,
bentonite, talc, asbestos, barite, gypsum, bauxite,
magnesite, dolomite, mica, precious and semi-precious
stones, and other non-metallic minerals that may later
be discovered and which the: Director declares the same
to be of economically workable quantities, shall not be
classified under the category of quarry resources.

au. Regional director means the regional director of any

mines regional office under the Department of
Environment and Natural Resources.

av. Regional office means any of the mines regional

offices of the Department of Environment and Natural
Resources.

aw. Secretary means the Secretary of the Department of

Environment and Natural Resources.

ax. Special allowance refers to payment to the claim-

owners or surface right-owners particularly during the
transition period from Presidential Decree No. 463 and
Executive Order No. 279, series of 1987.

ay. State means the Republic of the Philippines.

 87

az. Utilization means the extraction or disposition of

minerals.

CHAPTER II
GOVERNMENT MANAGEMENT

Section 4
Ownership of Mineral Resources

Mineral resources are owned by the State and the exploration,

development, utilization, and processing thereof shall be
under its full control and supervision. The State may directly
undertake such activities or it may enter into mineral
agreements with contractors.

The State shall recognize and protect the rights of the

indigenous cultural communities to their ancestral lands as
provided for by the Constitution.

Section 5
Mineral Reservations

When the national interest so requires, such as when there is

a need to preserve strategic raw materials for industries
critical to national development, or certain minerals for
scientific, cultural or ecological value, the President may
establish mineral reservations upon the recommendation of the
Director through the Secretary. Mining operations in existing
mineral reservations and such other reservations as may
thereafter be established, shall be undertaken by the
Department or through a contractor: Provided, That a small
scale-mining cooperative covered by Republic Act No. 7076
shall be given preferential right to apply for a small-scale
mining agreement for a maximum aggregate area of twenty-five
percent (25%) of such mineral reservation, subject to valid
existing mining/quarrying rights as provided under Section
112 Chapter XX hereof. All submerged lands within the
contiguous zone and in the exclusive economic zone of the
Philippines are hereby declared to be mineral reservations.

A ten per centum (10%) share of all royalties and revenues to

be derived by the government from the development and
utilization of the mineral resources within mineral
reservations as provided under this Act shall accrue to the
 88

Mines and Geosciences Bureau to be allotted for special

projects and other administrative expenses related to the
exploration and development of other mineral reservations
mentioned in Section 6 hereof.

Section 6
Other Reservations

Mining operations in reserved lands other than mineral

reservations may be undertaken by the Department, subject to
limitations as herein provided. In the event that the
Department cannot undertake such activities, they may be
undertaken by a qualified person in accordance with the rules
and regulations promulgated by the Secretary. The right to
develop and utilize the minerals found therein shall be
awarded by the President under such terms and conditions as
recommended by the Director and approved by the Secretary:
Provided, That the party who undertook the exploration of
said reservation shall be given priority. The mineral land so
awarded shall be automatically excluded from the reservation
during the term of the agreement: Provided, further, That the
right of the lessee of a valid mining contract existing within
the reservation at the time of its establishment shall not be
prejudiced or impaired.

Section 7
Periodic Review of Existing Mineral Reservations

The Secretary shall periodically review existing mineral

reservations for the purpose of determining whether their
continued existence is consistent with the national interest,
and upon his recommendation, the President may, by
proclamation, alter or modify the boundaries thereof or
revert the same to the public domain without prejudice to
prior existing rights.

Section 8
Authority of the Department

The Department shall be the primary government agency

responsible for the conservation, management, development,
and proper use of the State's mineral resources including
those in reservations, watershed areas, and lands of the
public domain. The Secretary shall have the authority to enter
into mineral agreements on behalf of the Government upon the
recommendation of the Director, promulgate such rules and
 89

regulations as may be necessary to implement the intent and

provisions of this Act.

Section 9
Authority of the Bureau

The Bureau shall have direct charge in the administration and

disposition of mineral lands and mineral resources and shall
undertake geological, mining, metallurgical, chemical, and
other researches as well as geological and mineral
exploration surveys. The Director shall recommend to the
Secretary the granting of mineral agreements to duly
qualified persons and shall monitor the compliance by the
contractor of the terms and conditions of the mineral
agreements. The Bureau may confiscate surety, performance and
guaranty bonds posted through an order to be promulgated by
the Director. The Director may deputize, when necessary, any
member or unit of the Philippine National Police, barangay,
duly registered non-governmental organization (NGO) or any
qualified person to police all mining activities.

Section 10
Regional Offices

There shall be as many regional offices in the country as may

be established by the Secretary, upon the recommendation of
the Director.

Section 11
Processing of Applications

The system of processing applications for mining rights shall

be prescribed in the rules and regulations of this Act.

Section 12
Survey, Charting and Delineation of Mining Areas

A sketch plan or map of the contract or mining area prepared

by a deputized geodetic engineer suitable for publication
purposes shall be required during the filing of a mineral
agreement or financial or technical assistance agreement
application. Thereafter, the contract or mining area shall be
surveyed and monumented by a deputized geodetic engineer or
bureau geodetic engineer and the survey plan shall be approved
by the Director before the approval of the mining feasibility.
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Section 13
Meridional Blocks

For purposes of the delineation of the contract or mining

areas under this Act, the Philippine territory and its
exclusive economic zone shall be divided into meridional
blocks of one-half (1/2) minute of latitude and one-half (1/2)
minute of longitude.

Section 14
Recording System

There shall be established a national and regional filing and

recording system. A mineral resource database system shall be
set up in the Bureau which shall include, among others, a
mineral rights management system. The Bureau shall publish at
least annually, a mineral gazette of nationwide circulation
containing among others, a current list of mineral rights,
their location in the map, mining rules and regulations, other
official acts affecting mining, and other information
relevant to mineral resources development. A system and
publication fund shall be included in the regular budget of
the Bureau.

CHAPTER III
SCOPE OF APPLICATION

Section 15
Scope of Application

This Act shall govern the exploration, development,

utilization and processing of all mineral resources.

Section 16
Opening of Ancestral Lands for Mining Operations

No ancestral land shall be opened for mining-operations

without prior consent of the indigenous cultural community
concerned.

Section 17
Royalty Payments for Indigenous Cultural Communities
 91

In the event of an agreement with an indigenous cultural

community pursuant to the preceding section, the royalty
payment, upon utilization of the minerals shall be agreed
upon by the parties. The said royalty shall form part of a
trust fund for the socioeconomic well-being of the indigenous
cultural community.

Section 18
Areas Open to Mining Operations

Subject to any existing rights or reservations and prior

agreements of all parties, all mineral resources in public or
private lands, including timber or forestlands as defined in
existing laws, shall be open to mineral agreements or
financial or technical assistance agreement applications. Any
conflict that may arise under this provision shall be heard
and resolved by the panel of arbitrators.

Section 19
Areas Closed to Mining Applications

Mineral agreement or financial or technical assistance

agreement applications shall not be allowed:

a. In military and other government reservations, except

upon prior written clearance by the government agency
concerned;

b. Near or under public or private buildings,

cemeteries, archeological and historic sites, bridges,
highways, waterways, railroads, reservoirs, dams or
other infrastructure projects, public or private works
including plantations or valuable crops, except upon
written consent of the government agency or private
entity concerned;

c. In areas covered by valid and existing mining rights;

d. In areas expressedly prohibited by law;

e. In areas covered by small-scale miners as defined by

law unless with prior consent of the small-scale miners,
in which case a royalty payment upon the utilization of
minerals shall be agreed upon by the parties, said
royalty forming a trust fund for the socioeconomic
development of the community concerned; and
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f. Old growth or virgin forests, proclaimed watershed

forest reserves, wilderness areas, mangrove forests,
mossy forests, 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 Act No. 7586, Department
Administrative Order No. 25, series of 1992 and other
laws.

CHAPTER IV
EXPLORATION PERMIT

Section 20
Exploration Permit

An exploration permit grants the right to conduct exploration

for all minerals in specified areas. The Bureau shall have
the authority to grant an exploration Permit to a qualified
person.

Section 21
Terms and Conditions of the Exploration Permit

An exploration permit shall be for a period of two (2) years,

subject to annual review and relinquishment or renewal upon
the recommendation of the Director.

Section 22
Maximum Areas for Exploration Permit

The maximum area that a qualified person may hold at any one
time shall be:

a. Onshore, in any one province

1. for individuals, twenty (20) blocks: and

2. for partnerships, corporations, cooperatives, or

associations, two hundred (200) blocks.

b. Onshore, in the entire Philippines

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1. for individuals, forty (40) blocks; and

2. for partnerships, corporations, cooperatives, or

associations, four hundred (400) blocks.

c. Offshore, beyond five hundred meters (500m) from the

mean low tide level:

1. for individuals, one hundred (100) blocks; and

2. for partnerships, corporations, cooperatives, or

associations, one thousand (1,000) blocks.

Section 23
Rights and Obligations of the Permittee

An exploration permit shall grant to the permittee, his heirs

or successors-in-interest, the right to enter, occupy and
explore the area: Provided, That if private or other parties
are affected, the permittee shall first discuss with the said
parties the extent, necessity, and manner of his entry,
occupation and exploration and in case of disagreement, a
panel of arbitrators shall resolve the conflict or
disagreement.

The permittee shall undertake an exploration work on the area

as specified by its permit based on an approved work program.

Any expenditure in excess of the yearly budget of the approved

work program may be carried forward and credited to the
succeeding years covering the duration of the permit. The
Secretary, through the Director, shall promulgate rules and
regulations governing the terms and conditions of the permit.

The permittee may apply for a mineral production sharing

agreement, joint venture agreement, co-production agreement
or financial or technical assistance agreement over the
permit area, which application shall be granted if the
permittee meets the necessary qualifications and the terms
and conditions of any such agreement: Provided, That the
exploration period covered by the exploration permit shall be
included as part of the exploration period of the mineral
agreement or financial or technical assistance agreement.

Section 24
Declaration of Mining Project Feasibility
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A holder of an exploration permit who determines the

commercial viability of a project covering a mining area may,
within the term of the permit, file with the Bureau a
declaration of mining project feasibility accompanied by a
work program for development. The approval of the mining
project feasibility and compliance with other requirements
provided in this Act shall entitle the holder to an exclusive
right to a mineral production sharing agreement or other
mineral agreements or financial or technical assistance
agreement.

Section 25
Transfer or Assignment

An exploration permit may be transferred or assigned to a

qualified person subject to the approval of the Secretary
upon the recommendation of the Director.

CHAPTER V
MINERAL AGREEMENTS

Section 26
Modes of Mineral Agreement

For purposes of mining operations, a mineral agreement may

take the following forms as herein defined:

a. Mineral production sharing agreement is an agreement

where the Government grants to the contractor the
exclusive right to conduct mining operations within a
contract area and shares in the gross output. The
contractor shall provide the financing, technology,
management and personnel necessary for the
implementation of this agreement.

b. Co-production agreement is an agreement between the

Government and the contractor wherein the Government
shall provide inputs to the mining operations other than
the mineral resource.

c. Joint venture agreement is an agreement where a joint-

venture company is organized by the Government and the
contractor with both parties having equity shares. Aside
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from earnings in equity, the Government shall be

entitled to a share in the gross output.

A mineral agreement shall grant to the contractor the

exclusive right to conduct mining operations and to extract
all mineral resources found in the contract area. In addition,
the contractor may be allowed to convert his agreement into
any of the modes of mineral agreements or financial or
technical assistance agreement covering the remaining period
of the original agreement subject to the approval of the
Secretary.

Section 27
Eligibility

A qualified person may enter into any of the three (3) modes
of mineral agreement with the government for the exploration,
development and utilization of mineral resources: Provided,
That in case the applicant has been in the mining industry
for any length of time, he should possess a satisfactory
environmental track record as determined by the Mines and
Geosciences Bureau and in consultation with the Environmental
Management Bureau of the Department.

Section 28
Maximum Areas for Mineral Agreement

The maximum area that a qualified person may hold at any time
under a mineral agreement shall be:

a. Onshore, in any one province

1. for individuals, ten (10) blocks; and

2. for partnerships, cooperatives, associations, or

corporations, one hundred (100) blocks.

b. Onshore, in the entire Philippines

1. for individuals, twenty (20) blocks; and

2. for partnerships, cooperatives, associations, or

corporations, two hundred (200) blocks.

c. Offshore, in the entire Philippines

1. for individuals fifty (50) blocks;

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2. for partnerships, cooperatives, associations, or

corporations, five hundred (500) blocks; and

3. for the exclusive economic zone, a larger area

to be determined by the Secretary.

The maximum areas mentioned above that a contractor may hold

under a mineral agreement shall not include mining/quarry
areas under operating agreements between the contractor and
a claimowner/lessee/permittee/licensee entered into under
Presidential Decree No. 463.

Section 29
Filing and Approval of Mineral Agreements

All proposed mineral agreements shall be filed in the region

where the areas of interest are located, except in mineral
reservations which shall be filed with the Bureau.

The filing of a proposal for a mineral agreement shall give

the proponent the prior right to areas covered by the same.
The proposed mineral agreement will be approved by the
Secretary and copies thereof shall be submitted to the
President. Thereafter, the President shall provide a list to
Congress of every approved mineral agreement within thirty
(30) days from its approval by the Secretary.

Section 30
Assignment/Transfer

Any assignment or transfer of rights and obligations under

any mineral agreement except a financial or technical
assistance agreement shall be subject to the prior approval
of the Secretary. Such assignment or transfer shall be deemed
automatically approved if not acted upon by the Secretary
within thirty (30) working days from official receipt
thereof, unless patently unconstitutional or illegal.

Section 31
Withdrawal from Mineral Agreements

The contractor may, by giving due notice at any time during

the term of the agreement, apply for the cancellation of the
mineral agreement due to causes which, in the opinion of the
contractor, make continued mining operations no longer
feasible or viable. The Secretary shall consider the notice
and issue its decision within a period of thirty (30) days:
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Provided, That the contractor has met all its financial,

fiscal and legal obligations.

Section 32
Terms

Mineral agreements shall have a term not exceeding twenty-

five (25) years to start from the date of execution thereof,
and renewable for another term not exceeding twenty-five (25)
years under the same terms and conditions thereof, without
prejudice to changes mutually agreed upon by the parties.
After the renewal period, the operation of the mine may be
undertaken by the Government or through a contractor. The
contract for the operation of a mine shall be awarded to the
highest bidder in a public bidding after due publication of
the notice thereof: Provided, That the contractor shall have
the right to equal the highest bid upon reimbursement of all
reasonable expenses of the highest bidder.

CHAPTER VI
FINANCIAL OR TECHNICAL ASSISTANCE AGREEMENT

Section 33
Eligibility

Any qualified person with technical and financial capability

to undertake large-scale exploration, development, and
utilization of mineral resources in the Philippines may enter
into a financial or technical assistance agreement directly
with the Government through the Department.

Section 34
Maximum Contract Area

The maximum contract area that may be granted per qualified

person, subject to relinquishment shall be:

a. 1,000 meridional blocks onshore;

b. 4,000 meridional blocks offshore; or

c. Combinations of a and b provided that it shall not

exceed the maximum limits for onshore and offshore
areas.
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Section 35
Terms and Conditions

The following terms, conditions, and warranties shall be

incorporated in the financial or technical assistance
agreement, to wit:

a. A firm commitment in the form of a sworn statement,

of an amount corresponding to the expenditure obligation
that will be invested in the contract area: Provided,
That such amount shall be subject to changes as may be
provided for in the rules and regulations of this Act;

b. A financial guarantee bond shall be posted in favor

of the Government in an amount equivalent to the
expenditure obligation of the applicant for any year;

c. Submission of proof of technical competence, such as,

but not limited to, its track record in mineral resource
exploration, development, and utilization; details of
technology to be employed in the proposed operation; and
details of technical personnel to undertake the
operation;

d. Representations and warranties that the applicant has

all the qualifications and none of the disqualifications
for entering into the agreement;

e. Representations and warranties that the contractor

has or has access to all the financing, managerial and
technical expertise and, if circumstances demand, the
technology required to promptly and effectively carry
out the objectives of the agreement with the
understanding to timely deploy these resources under its
supervision pursuant to the periodic work programs and
related budgets, when proper, providing an exploration
period up to two (2) years, extendible for another two
(2) years but subject to annual review by the Secretary
in accordance with the implementing rules and
regulations of this Act, and further, subject to the
relinquishment obligations;

f. Representations and warranties that, except for

payments for dispositions for its equity, foreign
investments in local enterprises which are qualified for
repatriation, and local supplier's credits and such
other generally accepted and permissible financial
 99

schemes for raising funds for valid business purposes,

the contractor shall not 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;

g. The mining operations shall be conducted in

accordance with the provisions of this Act and its
implementing rules and regulations;

h. Work programs and minimum expenditures commitments;

i. Preferential use of local goods and services to the

maximum extent practicable;

j. A stipulation that the contractors are obligated to

give preference to Filipinos in all types of mining
employment for which they are qualified and that
technology shall be transferred to the same;

k. Requiring the proponent to effectively use

appropriate anti-pollution technology and facilities to
protect the environment and to restore or rehabilitate
mined out areas and other areas affected by mine tailings
and other forms of pollution or destruction;

l. The contractors shall furnish the Government records

of geologic, accounting, and other relevant data for its
mining operations, and that book of accounts and records
shall be open for inspection by the government;

m. Requiring the proponent to dispose of the minerals

and byproducts produced under a financial or technical
assistance agreement at the highest price and more
advantageous terms and conditions as provided for under
the rules and regulations of this Act;

n. Provide for consultation and arbitration with respect

to the interpretation and implementation of the terms
and conditions of the agreements; and

o. Such other terms and conditions consistent with the

Constitution and with this Act as the Secretary may deem
to be for the best interest of the State and the welfare
of the Filipino people.
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Section 36
Negotiations

A financial or technical assistance agreement shall be

negotiated by the Department and executed and approved by the
President. The President shall notify Congress of all
financial or technical assistance agreements within thirty
(30) days from execution and approval thereof.

Section 37
Filing and Evaluation of Financial or Technical Assistance
Agreement Proposals

All financial or technical assistance agreement proposals

shall be filed with the Bureau after payment of the required
processing fees. If the proposal is found to be sufficient
and meritorious in form and substance after evaluation, it
shall be recorded with the appropriate government agency to
give the proponent the prior right to the area covered by
such proposal: Provided, That existing mineral agreements,
financial or technical assistance agreements and other mining
rights are not impaired or prejudiced thereby. The Secretary
shall recommend its approval to the President.

Section 38
Term of Financial or Technical Assistance Agreement

A financial or technical assistance agreement shall have a

term not exceeding twenty-five (25) years to start from the
execution thereof, renewable for not more than twenty-five
(25) years under such terms and conditions as may be provided
by law.

Section 39
Option to Convert into a Mineral Agreement

The contractor has the option to convert the financial or

technical assistance agreement to a mineral agreement at any
time during the term of the agreement, if the economic
viability of the contract area is found to be inadequate to
justify large-scale mining operations, after proper notice to
the Secretary as provided for under the implementing rules
and regulations: Provided, That the mineral agreement shall
only be for the remaining period of the original agreement.

In the case of a foreign contractor, it shall reduce its

equity to forty percent (40%) in the corporation,
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partnership, association, or cooperative. Upon compliance

with this requirement by the contractor, the Secretary shall
approve the conversion and execute the mineral production-
sharing agreement.

Section 40
Assignment/Transfer

A financial or technical assistance agreement may be assigned

or transferred, in whole or in part, to a qualified person
subject to the prior approval of the President: Provided,
That the President shall notify Congress of every financial
or technical assistance agreement assigned or converted in
accordance with this provision within thirty (30) days from
the date of the approval thereof.

Section 41
Withdrawal from Financial or Technical Assistance Agreement

The contractor shall manifest in writing to the Secretary his

intention to withdraw from the agreement, if in his judgment
the mining project is no longer economically feasible, even
after he has exerted reasonable diligence to remedy the cause
or the situation. The Secretary may accept the withdrawal:
Provided, That the contractor has complied or satisfied all
his financial, fiscal or legal obligations.

CHAPTER VII
SMALL-SCALE MINING

Section 42
Small-scale Mining

Small-scale mining shall continue to be governed by Republic

Act No. 7076 and other pertinent laws.

CHAPTER VIII
QUARRY RESOURCES

Section 43
Quarry Permit

Any qualified person may apply to the provincial/city mining

regulatory board for a quarry permit on privately-owned lands
 102

and/or public lands for building and construction materials

such as marble, basalt, andesite, conglomerate, tuff, adobe,
granite, gabbro, serpentine, inset filling materials, clay
for ceramic tiles and building bricks, pumice, perlite and
other similar materials that are extracted by quarrying from
the ground. The provincial governor shall grant the permit
after the applicant has complied with all the requirements as
prescribed by the rules and regulations.

The maximum area which a qualified person may hold at any one
time shall be five hectares (5 has.): Provided, That in large-
scale quarry operations involving cement raw materials,
marble, granite, sand and gravel and construction aggregates,
a qualified person and the government may enter into a mineral
agreement as defined herein.

A quarry permit shall have a term of five (5) years, renewable

for like periods but not to exceed a total term of twenty-
five (25) years. No quarry permit shall be issued or granted
on any area covered by a mineral agreement or financial or
technical assistance agreement.

Section 44
Quarry Fee and Taxes

A permittee shall, during the term of his permit, pay a quarry

fee as provided for under the implementing rules and
regulations. The permittee shall also pay the excise tax as
provided by pertinent laws.

Section 45
Cancellation of Quarry Permit

A quarry permit may be cancelled by the provincial governor

for violations of the provisions of this Act or its
implementing rules and regulations or the terms and
conditions of said permit: Provided, That before the
cancellation of such permit, the holder thereof shall be given
the opportunity to be heard in an investigation conducted for
the purpose.

Section 46
Commercial Sand and Gravel Permit
 103

Any qualified person may be granted a permit by the provincial

governor to extract and remove sand and gravel or other loose
or unconsolidated materials which are used in their natural
state, without undergoing processing from an area of not more
than five hectares (5 has.) and in such quantities as may be
specified in the permit.

Section 47
Industrial Sand and Gravel Permit

Any qualified person may be granted an industrial sand and

gravel permit by the Bureau for the extraction of sand and
gravel and other loose or unconsolidated materials that
necessitate the use of mechanical processing covering an area
of more than five hectares (5 has.) at any one time. The
permit shall have a term of five (5) years, renewable for a
like period but not to exceed a total term of twenty-five
(25) years.

Section 48
Exclusive Sand and Gravel Permit

Any qualified person may be granted an exclusive sand and

gravel permit by the provincial governor to quarry and utilize
sand and gravel or other loose or unconsolidated materials
from public lands for his own use, provided that there will
be no commercial disposition thereof.

A mineral agreement or a financial technical assistance

agreement contractor shall, however, have the right to
extract and remove sand and gravel and other loose
unconsolidated materials without need of a permit within the
area covered by the mining agreement for the exclusive use in
the mining operations: Provided, That monthly reports of the
quantity of materials extracted therefrom shall be submitted
to the mines regional office concerned: Provided, further,
That said right shall be coterminous with the expiration of
the agreement.

Holders of existing mining leases shall likewise have the

same rights as that of a contractor: Provided, That said right
shall be coterminous with the expiry dates of the lease.

Section 49
Government Gratuitous Permit
 104

Any government entity or instrumentality may be granted a

gratuitous permit by the provincial governor to extract sand
and gravel, quarry or loose unconsolidated materials needed
in the construction of building and/or infrastructure for
public use or other purposes over an area of not more than
two hectares (2 has.) for a period coterminous with said
construction.

Section 50
Private Gratuitous Permit

Any owner of land may be granted a private gratuitous permit

by the provincial governor.

Section 51
Guano Permit

Any qualified person may be granted a guano permit by the

provincial governor to extract and utilize loose
unconsolidated guano and other organic fertilizer materials
in any portion of a municipality where he has established
domicile. The permit shall be for specific caves and/or for
confined sites with locations verified by the Department's
field officer in accordance with existing rules and
regulations.

Section 52
Gemstone Gathering Permit

Any qualified person may be granted a non-exclusive gemstone

gathering permit by the provincial governor to gather loose
stones useful as gemstones in rivers and other locations.

CHAPTER IX
TRANSPORT, SALE AND PROCESSING OF MINERALS

Section 53
Ore Transport Permit

A permit specifying the origin and quantity of non-processed

mineral ores or minerals shall be required for their
transport. Transport permits shall be issued by the mines
regional director who has jurisdiction over the area where
the ores were extracted. In the case of mineral ores or
 105

minerals being transported from the small-scale mining areas

to the custom mills or processing plants, the Provincial
Mining Regulatory Board (PMRB) concerned shall formulate
their own policies to govern such transport of ores produced
by small-scale miners. The absence of a permit shall be
considered as prima facie evidence of illegal mining and shall
be sufficient cause for the Government to confiscate the ores
or minerals being transported, the tools and equipment
utilized, and the vehicle containing the same. Ore samples
not exceeding two metric tons (2 m.t.) to be used exclusively
for assay or pilot test purposes shall be exempted from such
requirement.

Section 54
Mineral Trading Registration

No person shall engage in the trading of mineral products,

either locally or internationally, unless registered with the
Department of Trade and Industry and accredited by the
Department, with a copy of said registration submitted to the
Bureau.

Section 55
Minerals Processing Permit

No person shall engage in the processing of minerals without

first securing a minerals processing permit from the
Secretary. Minerals processing permit shall be for a period
of five (5) years renewable for like periods but not to exceed
a total term of twenty-five (25) years. In the case of mineral
ores or minerals produced by the small-scale miners, the
processing thereof as well as the licensing of their custom
mills, or processing plants shall continue to be governed by
the provisions of Republic Act No. 7076.

Section 56
Eligibility of Foreign-owned/-controlled Corporation

A foreign-owned/-controlled corporation may be granted a

mineral processing permit.

CHAPTER X
DEVELOPMENT OF MINING COMMUNITIES, SCIENCE AND MINING
TECHNOLOGY
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Section 57
Expenditure for Community Development and Science and
Mining Technology

A contractor shall assist in the development of its mining

community, the promotion of the general welfare of its
inhabitants, and the development of science and mining
technology.

Section 58
Credited Activities

Activities that may be credited as expenditures for

development of mining communities, and science and mining
technology are the following:

a. Any activity or expenditure intended to enhance the

development of the mining and neighboring communities of
a mining operation other than those required or provided
for under existing laws, or collective bargaining
agreements, and the like; and

b. Any activity or expenditure directed towards the

development of geosciences and mining technology such
as, but not limited to, institutional and manpower
development, and basic and applied researches.
Appropriate supervision and control mechanisms shall be
prescribed in the implementing rules and regulations of
this Act.

Section 59
Training and Development

A contractor shall maintain an effective program of manpower

training and development throughout the term of the mineral
agreement and shall encourage and train Filipinos to
participate in all aspects of the mining operations,
including the management thereof. For highly-technical and
specialized mining operations, the contractor may, subject to
the necessary government clearances, employ qualified
foreigners.

Section 60
Use of Indigenous Goods, Services and Technologies

A contractor shall give preference to the use of local goods,

services and scientific and technical resources in the mining
 107

operations, where the same are of equivalent quality, and are

available on equivalent terms as their imported counterparts.

Section 61
Donations/Turn Over of Facilities

Prior to cessation of mining operations occasioned by

abandonment or withdrawal of operations, on public lands by
the contractor, the latter shall have a period of one (1)
year therefrom within which to remove his improvements;
otherwise, all the social infrastructure and facilities shall
be turned over or donated tax-free to the proper government
authorities, national or local, to ensure that said
infrastructure and facilities are continuously maintained and
utilized by the host and neighboring communities.

Section 62
Employment of Filipinos

A contractor shall give preference to Filipino citizens in

all types of mining employment within the country insofar as
such citizens are qualified to perform the corresponding work
with reasonable efficiency and without hazard to the safety
of the operations. The contractor, however, shall not be
hindered from hiring employees of his own selection, subject
to the provisions of Commonwealth Act No. 613, as amended,
for technical and specialized work which, in his judgment and
with the approval of the Director, requires highly-
specialized training or long experience in exploration,
development or utilization of mineral resources: Provided,
That in no case shall each employment exceed five (5) years
or the payback period as represented in original project
study, whichever is longer: Provided, further, That each
foreigner employed as mine manager, vice-president for
operations or in an equivalent managerial position in charge
of mining, milling, quarrying or drilling operation shall:

a. Present evidence of his qualification and work

experience; or

b. Shall pass the appropriate government licensure

examination; or

c. In special cases, may be permitted to work by the

Director for a period not exceeding one (1) year:
Provided, however, That if reciprocal privileges are
 108

extended to Filipino nationals in the country of

domicile, the Director may grant waivers or exemptions.

CHAPTER XI
SAFETY AND ENVIRONMENTAL PROTECTION

Section 63
Mines Safety and Environmental Protection

All contractors and permittees shall strictly comply with all

the mines safety rules and regulations as may be promulgated
by the Secretary concerning the safe and sanitary upkeep of
the mining operations and achieve waste-free and efficient
mine development. Personnel of the Department involved in the
implementation of mines safety, health and environmental
rules and regulations shall be covered under Republic Act No.
7305.

Section 64
Mine Labor

No person under sixteen (16) years of age shall be employed

in any phase of mining operations and no person under eighteen
(18) years of age shall be employed underground in a mine.

Section 65
Mine Supervision

All mining and quarrying operations that employ more than

fifty (50) workers shall have at least one (1) licensed mining
engineer with at least five (5) years of experience in mining
operations, and one (1) registered foreman.

Section 66
Mine Inspection

The regional director shall have exclusive jurisdiction over

the safety inspection of all installations, surface or
underground, in mining operations at reasonable hours of the
day or night and as much as possible in a manner that will
not impede or obstruct work in progress of a contractor or
permittee.

Section 67
Power to Issue Orders
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The mines regional director shall, in consultation with the

Environmental Management Bureau, forthwith or within such
time as specified in his order, require the contractor to
remedy any practice connected with mining or quarrying
operations, which is not in accordance with safety and anti-
pollution laws and regulations. In case of imminent danger to
life or property, the mines regional director may summarily
suspend the mining or quarrying operations until the danger
is removed, or appropriate measures are taken by the
contractor or permittee.

Section 68
Report of Accidents

In case of any incident or accident, causing or creating the

danger of loss of life or serious physical injuries, the
person in charge of operations shall immediately report the
same to the regional office where the operations are situated.
Failure to report the same without justifiable reason shall
be a cause for the imposition of administrative sanctions
prescribed in the rules and regulations implementing this
Act.

Section 69
Environmental Protection

Every contractor shall undertake an environmental protection

and enhancement program covering the period of the mineral
agreement or permit. Such environmental program shall be
incorporated in the work program which the contractor or
permittee shall submit as an accompanying document to the
application for a mineral agreement or permit. The work
program shall include not only plans relative to mining
operations but also to rehabilitation, regeneration,
revegetation and reforestation of mineralized areas, slope
stabilization of mined-out and tailings covered areas,
aquaculture, watershed development and water conservation;
and socioeconomic development.

Section 70
Environmental Impact Assessment (EIA)

Except during the exploration period of a mineral agreement

or financial or technical assistance agreement or an
exploration permit, an environmental clearance certificate
shall be required based on an environmental impact assessment
and procedures under the Philippine Environmental Impact
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Assessment System including Sections 26 and 27 of the Local

Government Code of 1991 which require national government
agencies to maintain ecological balance, and prior
consultation with the local government units, non-
governmental and people's organizations and other concerned
sectors of the community: Provided, That a completed
ecological profile of the proposed mining area shall also
constitute part of the environmental impact assessment.
People's organizations and non-governmental organizations
shall be allowed and encouraged to participate in ensuring
that contractors/permittees shall observe all the
requirements of environmental protection.

Section 71
Rehabilitation

Contractors and permittees shall technically and biologically

rehabilitate the excavated, mined-out, tailings covered and
disturbed areas to the condition of environmental safety, as
may be provided in the implementing rules and regulations of
this Act. A mine rehabilitation fund shall be created, based
on the contractor's approved work program, and shall be
deposited as a trust fund in a government depository bank and
used for physical and social rehabilitation of areas and
communities affected by mining activities and for research on
the social, technical and preventive aspects of
rehabilitation. Failure to fulfill the above obligation shall
mean immediate suspension or closure of the mining activities
of the contractor/permittee concerned.

CHAPTER XII
AUXILIARY MINING RIGHTS

Section 72
Timber Rights

Any provision of law to the contrary notwithstanding, a

contractor may be granted a right to cut trees or timber
within his mining area as may be necessary for his mining
operations subject to forestry laws, rules and regulations:
Provided, That if the land covered by the mining area is
already covered by existing timber concessions, the volume of
timber needed and the manner of cutting and removal thereof
shall be determined by the mines regional director, upon
 111

consultation with the contractor, the timber

concessionaire/permittee and the Forest Management Bureau of
the Department: Provided, further, That in case of
disagreement between the contractor and the timber
concessionaire, the matter shall be submitted to the
Secretary whose decision shall be final. The contractor shall
perform reforestation work within his mining area in
accordance with forestry laws, rules and regulations.

Section 73
Water Rights

A contractor shall have water rights for mining operations

upon approval of application with the appropriate government
agency in accordance with existing water laws, rules and
regulations promulgated thereunder: Provided, That water
rights already granted or vested through long use, recognized
and acknowledged by local customs, laws, and decisions of
courts shall not thereby be impaired: Provided, further, That
the Government reserves the right to regulate water rights
and the reasonable and equitable distribution of water supply
so as to prevent the monopoly of the use thereof.

Section 74
Right to Possess Explosives

A contractor/exploration permittee shall have the right to

possess and use explosives within his contract/permit area as
may be necessary for his mining operations upon approval of
application with the appropriate government agency in
accordance with existing laws, rules and regulations
promulgated thereunder: Provided, That the Government
reserves the right to regulate and control the explosive
accessories to ensure safe mining operations.

Section 75
Easement Rights

When mining areas are so situated that for purposes of more

convenient mining operations it is necessary to build,
construct or install on the mining areas or lands owned,
occupied or leased by other persons, such infrastructure as
roads, railroads, mills, waste dump sites, tailings ponds,
warehouses, staging or storage areas and port facilities,
tramways, runways, airports, electric transmission, telephone
or telegraph lines, dams and their normal flood and catchment
areas, sites for water wells, ditches, canals, new river beds,
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pipelines, flumes, cuts, shafts, tunnels, or mills, the

contractor, upon payment of just compensation, shall be
entitled to enter and occupy said mining areas or lands.

Section 76
Entry into Private Lands and Concession Areas

Subject to prior notification, holders of mining rights shall

not be prevented from entry into private lands and concession
areas by surface owners, occupants, or concessionaires when
conducting mining operations therein: Provided, That any
damage done to the property of the surface owner, occupant,
or concessionaire as a consequence of such operations shall
be properly compensated as may be provided for in the
implementing rules and regulations: Provided, further, That
to guarantee such compensation, the person authorized to
conduct mining operation shall, prior thereto, post a bond
with the regional director based on the type of properties,
the prevailing prices in and around the area where the mining
operations are to be conducted, with surety or sureties
satisfactory to the regional director.

CHAPTER XIII
SETTLEMENT OF CONFLICTS

Section 77
Panel of Arbitrators

There shall be a panel of arbitrators in the regional office

of the Department composed of three (3) members, two (2) of
whom must be members of the Philippine Bar in good standing
and one a licensed mining engineer or a professional in a
related field, and duly designated by the Secretary as
recommended by the Mines and Geosciences Bureau Director.
Those designated as members of the panel shall serve as such
in addition to their work in the Department without receiving
any additional compensation As much as practicable, said
members shall come from the different bureaus of the
Department in the region. The presiding officer thereof shall
be selected by the drawing of lots. His tenure as presiding
officer shall be on a yearly basis. The members of the panel
shall perform their duties and obligations in hearing and
deciding cases until their designation is withdrawn or
revoked by the Secretary. Within thirty (30) working days,
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after the submission of the case by the parties for decision,

the panel shall have exclusive and original jurisdiction to
hear and decide on the following:

a. Disputes involving rights to mining areas;

b. Disputes involving mineral agreements or permits;

c. Disputes involving surface owners, occupants and

claimholders/concessionaires; and

d. Disputes pending before the Bureau and the Department

at the date of the effectivity of this Act.

Section 78
Appellate Jurisdiction

The decision or order of the panel of arbitrators may be

appealed by the party not satisfied thereto to the Mines
Adjudication Board within fifteen (15) days from receipt
thereof which must decide the case within thirty (30) days
from submission thereof for decision.

Section 79
Mines Adjudication Board

The Mines Adjudication Board shall be composed of three (3)

members. The Secretary shall be the chairman with the Director
of the Mines and Geosciences Bureau and the Undersecretary
for Operations of the Department as members thereof. The Board
shall have the following powers and functions:

a. To promulgate rules and regulations governing the

hearing and disposition of cases before it, as well as
those pertaining to its internal functions, and such
rules and regulations as may be necessary to carry out
its functions;

b. To administer oaths, summon the parties to a

controversy, issue subpoenas requiring the attendance
and testimony of witnesses or the production of such
books, papers, contracts, records, statement of
accounts, agreements, and other documents as may be
material to a just determination of the matter under
investigation, and to testify in any investigation or
hearing conducted in pursuance of this Act;
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c. To conduct hearings on all matters within its

jurisdiction, proceed to hear and determine the disputes
in the absence of any party thereto who has been summoned
or served with notice to appear, conduct its proceedings
or any part thereof in public or in private, adjourn its
hearings at any time and place, refer technical matters
or accounts to an expert and to accept his report as
evidence after hearing of the parties upon due notice,
direct parties to be joined in or excluded from the
proceedings, correct, amend, or waive any error, defect
or irregularity, whether in substance or in form, give
all such directions as it may deem necessary or expedient
in the determination of the dispute before it, and
dismiss the mining dispute as part thereof, where it is
trivial or where further proceedings by the Board are
not necessary or desirable:

1. To hold any person in contempt, directly or

indirectly, and impose appropriate penalties
therefor; and

2. To enjoin any or all acts involving or arising

from any case pending before it which, if not
restrained forthwith, may cause grave or
irreparable damage to any of the parties to the
case or seriously affect social and economic
stability.

In any proceeding before the Board, the rules of evidence

prevailing in courts of law or equity shall not be controlling
and it is the spirit and intention of this Act that shall
govern. The Board shall use every and all reasonable means to
ascertain the facts in each case speedily and objectively and
without regard to technicalities of law or procedure, all in
the interest of due process. In any proceeding before the
Board, the parties may be represented by legal counsel. The
findings of fact of the Board shall be conclusive and binding
on the parties and its decision or order shall be final and
executory.

A petition for review by certiorari and question of law may

be filed by the aggrieved party with the Supreme Court within
thirty (30) days from receipt of the order or decision of the
Board.
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CHAPTER XIV
GOVERNMENT SHARE

Section 80
Government Share in Mineral Production Sharing Agreement

The total government share in a mineral production sharing

agreement shall be the excise tax on mineral products as
provided in Republic Act No. 7729, amending Section 151(a) of
the National Internal Revenue Code, as amended.

Section 81
Government Share in Other Mineral Agreements

The share of the Government in co-production and joint-

venture agreements shall be negotiated by the Government and
the contractor taking into consideration the:

a. capital investment of the project;

b. risks involved;

c. contribution of the project to the economy; and

d. other factors that will provide for a fair and

equitable sharing between the Government and the
contractor.

The Government shall also be entitled to compensations for

its other contributions which shall be agreed upon by the
parties, and shall consist, among other things, the
contractor's income tax, excise tax, special allowance,
withholding tax due from the contractor's foreign
stockholders arising from dividend or interest payments to
the said foreign stockholders, in case of a foreign national,
and all such other taxes, duties and fees as provided for
under existing laws.

The Government share in financial or technical assistance

agreement shall consist of, among other things, the
contractor's corporate income tax, excise tax, special
allowance, withholding tax due from the contractor's foreign
stockholders arising from dividend or interest payments to
the said foreign stockholder in case of a foreign national
and all such other taxes, duties and fees as provided for
under existing laws.
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The collection of Government share in financial or technical

assistance agreement shall commence after the financial or
technical assistance agreement contractor has fully recovered
its pre-operating expenses, exploration, and development
expenditures, inclusive.

Section 82
Allocation of Government Share

The Government share as referred to in the preceding sections

shall be shared and allocated in accordance with Sections 290
and 292 of Republic Act No. 7160 otherwise known as the Local
Government Code of 1991. In case the development and
utilization of mineral resources is undertaken by a
government-owned or -controlled corporation, the sharing and
allocation shall be in accordance with Sections 291 and 292
of the said Code.

CHAPTER XV
TAXES AND FEES

Section 83
Income Taxes

After the lapse of the income tax holiday as provided for in

the Omnibus Investments Code, the contractor shall be liable
to pay income tax as provided in the National Internal Revenue
Code, as amended.

Section 84
Excise Tax on Mineral Products

The contractor shall be liable to pay the excise tax on

mineral products as provided for under Section 151 of the
National Internal Revenue Code: Provided, however, That with
respect to a mineral production sharing agreement, the excise
tax on mineral products shall be the government share under
said agreement.

Section 85
Mine Wastes and Tailings Fees

A semi-annual fee to be known as mine wastes and tailings fee

is hereby imposed on all operating mining companies in
 117

accordance with the implementing rules and regulations. The

mine wastes and tailings fee shall accrue to a reserve fund
to be used exclusively for payment for damages to:

a. Lives and personal safety;

b. Lands, agricultural crops and forest products, marine

life and aquatic resources, cultural resources; and

c. Infrastructure and the revegetation and

rehabilitation of silted farm lands and other areas
devoted to agriculture and fishing caused by mining
pollution.

This is in addition to the suspension or closure of the

activities of the contractor at any time and the penal
sanctions imposed upon the same.

The Secretary is authorized to increase mine wastes and

tailings fees, when public interest so requires, upon the
recommendation of the Director.

Section 86
Occupation Fees

There shall be collected from any holder of a mineral

agreement, financial or technical assistance agreement or
exploration permit on public or private lands, an annual
occupation fee in accordance with the following schedule:

a. For exploration permit - Five pesos (P5.00) per

hectare or fraction thereof per annum;

b. For mineral agreements and financial or technical

assistance agreements - Fifty pesos (P50.00) per hectare
or fraction thereof per annum; and

c. For mineral reservation - One hundred pesos (P100.00)

per hectare or fraction thereof per annum.

The Secretary is authorized to increase the occupation fees

provided herein when the public interest so requires, upon
recommendation of the Bureau Director.

Section 87
Manner of Payment of Fees
 118

The fees shall be paid on the date the mining agreement is

registered with the appropriate office and on the same date
every year thereafter. It shall be paid to the treasurer of
the municipality or city where the onshore mining areas are
located, or to the Director in case of offshore mining areas.
For this purpose, the appropriate officer shall submit to the
treasurer of the municipality or city where the onshore mining
area is located, a complete list of all onshore mining rights
registered with his office, indicating therein the names of
the holders, area in hectares, location, and date registered.
If the fee is not paid on the date specified, it shall be
increased by twenty-five per centum (25%).

Section 88
Allocation of Occupation Fees

Thirty per centum (30%) of all occupational fees collected

from holders of mining rights in onshore mining areas shall
accrue to the province and seventy per centum (70%) to the
municipality in which the onshore mining areas are located.
In a chartered city, the full amount shall accrue to the city
concerned.

Section 89
Filing Fees and Other Charges

The Secretary is authorized to charge reasonable filing fees

and other charges as he may prescribe in accordance with the
implementing rules and regulations.

CHAPTER XVI
INCENTIVES

Section 90
Incentives

The contractors in mineral agreements, and financial or

technical assistance agreements shall be entitled to the
applicable fiscal and non-fiscal incentives as provided for
under Executive Order No. 226, otherwise known as the Omnibus
Investments Code of 1987. Provided, That holders of
exploration permits may register with the Board of
Investments and be entitled to the fiscal incentives granted
under the said Code for the duration of the permits or
 119

extensions thereof: Provided, further, That mining activities

shall always be included in the investment priorities plan.

Section 91
Incentives for Pollution Control Devices

Pollution control devices acquired, constructed or installed

by contractors shall not be considered as improvements on the
land or building where they are placed, and shall not be
subject to real property and other taxes or assessments:
Provided, however, That payment of mine wastes and tailings
fees is not exempted.

Section 92
Income Tax-Carry Forward of Losses

A net operating loss without the benefit of incentives

incurred in any of the first ten (10) years of operations may
be carried over as a deduction from taxable income for the
next five (5) years immediately following the year of such
loss. The entire amount of the loss shall be carried over to
the first of the five (5) taxable years following the loss,
and any portion of such loss which exceeds the taxable income
of such first year shall be deducted in like manner from the
taxable income of the next remaining four (4) years.

Section 93
Income Tax-Accelerated Depreciation

Fixed assets may be depreciated as follows:

a. To the extent of not more than twice as fast as the

normal rate of depreciation or depreciated at normal
rate of depreciation if the expected life is ten (10)
years or less; or

b. Depreciated over any number of years between five (5)

years and the expected life if the latter is more than
ten (10) years, and the depreciation thereon allowed as
deduction from taxable income: Provided, That the
contractor notifies the Bureau of Internal Revenue at
the beginning of the depreciation period which
depreciation rate allowed by this section will be used.

In computing for taxable income, unless otherwise provided in

this Act, the contractor may, at his option, deduct
exploration and development expenditures accumulated at cost
 120

as of the date of the prospecting or exploration and

development expenditures paid or incurred during the taxable
year: Provided, That the total amount deductible for
exploration and development expenditures shall not exceed
twenty-five per centum (25%) of the net income from mining
operations. The actual exploration and development
expenditures minus the twenty-five per centum (25%) net
income from mining shall be carried forward to the succeeding
years until fully deducted.

Net income from mining operation is defined as gross income

from operations less allowable deductions which are necessary
or related to mining operations. Allowable deductions shall
include mining, milling and marketing expenses, depreciation
of properties directly used in the mining operations. This
paragraph shall not apply to expenditures for the acquisition
or improvement of property of a character which is subject to
the allowances for depreciation.

Section 94
Investment Guarantees

The contractor shall be entitled to the basic rights and

guarantees provided in the Constitution and such other rights
recognized by the government as enumerated hereunder:

a. Repatriation of investments. The right to repatriate

the entire proceeds of the liquidation of the foreign
investment in the currency in which the investment was
originally made and at the exchange rate prevailing at
the time of repatriation.

b. Remittance of earnings. The right to remit earnings

from the investment in the currency in which the foreign
investment was originally made and at the exchange rate
prevailing at the time of remittance.

c. Foreign loans and contracts. The right to remit at

the exchange rate prevailing at the time of remittance
such sums as may be necessary to meet the payments of
interest and principal on foreign loans and foreign
obligations arising from financial or technical
assistance contracts.

d. Freedom from expropriation. The right to be free from

expropriation by the Government of the property
represented by investments or loans, or of the property
 121

of the enterprise except for public use or in the

interest of national welfare or defense and upon payment
of just compensation. In such cases, foreign investors
or enterprises shall have the right to remit sums
received as compensation for the expropriated property
in the currency in which the investment was originally
made and at the exchange rate prevailing at the time of
remittance.

e. Requisition of investment. The right to be free from

requisition of the property represented by the
investment or of the property of the enterprises except
in case of war or national emergency and only for the
duration thereof. Just compensation shall be determined
and paid either at the time or immediately after
cessation of the state of war or national emergency.
Payments received as compensation for the requisitioned
property may be remitted in the currency in which the
investments were originally made and at the exchange
rate prevailing at the time of remittance.

f. Confidentiality. Any confidential information

supplied by the contractor pursuant to this Act and its
implementing rules and regulations shall be treated as
such by the Department and the Government, and during
the term of the project to which it relates.

CHAPTER XVII
GROUND FOR CANCELLATION, REVOCATION, AND TERMINATION

Section 95
Late or Non-filing of Requirements

Failure of the permittee or contractor to comply with any of

the requirements provided in this Act or in its implementing
rules and regulations, without a valid reason, shall be
sufficient ground for the suspension of any permit or
agreement provided under this Act.

Section 96
Violation of the Terms and Conditions of Permits or
Agreements
 122

Violation of the terms and conditions of the permits or

agreements shall be a sufficient ground for cancellation of
the same.

Section 97
Non-Payment of Taxes and Fees

Failure to pay the taxes and fees due the Government for two
(2) consecutive years shall cause the cancellation of the
exploration permit, mineral agreement, financial or technical
assistance agreement and other agreements and the re-opening
of the area subject thereof to new applicants.

Section 98
Suspension or Cancellation of Tar Incentives and Credits

Failure to abide by the terms and conditions of tax incentive

and credits shall cause the suspension or cancellation of
said incentives and credits.

Section 99
Falsehood or Omission of Facts in the Statement

All statements made in the exploration permit, mining

agreement and financial or technical assistance agreement
shall be considered as conditions and essential parts thereof
and any falsehood in said statements or omission of facts
therein which may alter, change or affect substantially the
facts set forth in said statements may cause the revocation
and termination of the exploration permit, mining agreement
and financial or technical assistance agreement.

CHAPTER XVIII
ORGANIZATIONAL AND INSTITUTIONAL ARRANGEMENTS

Section 100
From Staff Bureau to Line Bureau

The Mines and Geosciences Bureau is hereby transformed into

a line bureau consistent with Section 9 of this Act: Provided,
That under the Mines and Geosciences Bureau shall be the
necessary mines regional, district and other pertinent
offices - the number and specific functions of which shall be
 123

provided in the implementing rules and regulations of this

Act.

CHAPTER XIX
PENAL PROVISIONS

Section 101
False Statements

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, mining
operations or mineral agreements, financial or technical
assistance agreements and permits shall, upon conviction, be
penalized by a fine of not exceeding Ten thousand pesos
(P10,000.00).

Section 102
Illegal Exploration

Any person undertaking exploration work without the necessary

exploration permit shall, upon conviction, be penalized by a
fine of not exceeding Fifty thousand pesos (P50,000.00).

Section 103
Theft of Minerals

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 shall, 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. In addition, 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.

Section 104
Destruction of Mining Structures

Any person who willfully destroys or damages structures in or

on the mining area or on the mill sites shall, upon
 124

conviction, be imprisoned for a period not to exceed five (5)

years and shall, in addition, pay compensation for the damages
which may have been caused thereby.

Section 105
Mines Arson

Any person who willfully sets fire to any mineral stockpile,

mine or workings, fittings or a mine, shall be guilty of arson
and shall be punished, upon conviction, by the appropriate
court in accordance with the provisions of the Revised Penal
Code and shall, in addition, pay compensation for the damages
caused hereby.

Section 106
Willful Damage to a Mine

Any person who willfully damages a mine, unlawfully causes

water to run into a mine, or obstructs any shaft or passage
to a mine, or renders useless, damages or destroys any
machine, appliance, apparatus, rope, chain, tackle, or any
other things used in a mine, shall be punished, upon
conviction, by the appropriate court, by imprisonment not
exceeding a period of five (5) years and shall, in addition,
pay compensation for the damages caused thereby.

Section 107
Illegal Obstruction to Permittees or Contractors

Any person who, without justifiable cause, prevents or

obstructs the holder of any permit, agreement or lease from
undertaking his mining operations shall be punished, upon
conviction by the appropriate court, by a fine not exceeding
Five thousand pesos (P5,000.00) or imprisonment not exceeding
one (1) year, or both, at the discretion of the court.

Section 108
Violation of the Terms and Conditions of the Environmental
Compliance Certificate

Any person who willfully violates or grossly neglects to abide

by the terms and conditions of the environmental compliance
certificate issued to said person and which causes
environmental damage through pollution shall suffer the
penalty of imprisonment of six (6) months to six (6) years or
a fine of Fifty thousand pesos (P50,000.00) to Two hundred
 125

thousand pesos (P200,000.00), or both, at the discretion of

the court.

Section 109
Illegal Obstruction to Government Officials

Any person who illegally prevents or obstructs the Secretary,

the Director or any of their representatives in the
performance of their duties under the provisions of this Act
and of the regulations promulgated hereunder shall be
punished upon conviction, by the appropriate court, by a fine
not exceeding Five thousand pesos (P5,000.00) or by
imprisonment not exceeding one (1) year, or both, at the
discretion of the court.

Section 110
Other Violations

Any other violation of this Act and its implementing rules

and regulations shall constitute an offense punishable with
a fine not exceeding Five thousand pesos (P5,000.00).

Section 111
Fines

The Secretary is authorized to charge fines for late or non-

submission of reports in accordance with the implementing
rules and regulations of this Act.

CHAPTER XX
TRANSITORY AND MISCELLANEOUS PROVISIONS

Section 112
Non-Impairment of Existing Mining/Quarrying Rights

All valid and existing mining lease contracts,

permits/licenses, leases pending renewal, mineral production-
sharing agreements granted under Executive Order No. 279, at
the date of effectivity of this Act, shall remain valid, shall
not be impaired, and shall be recognized by the Government:
Provided, That the provisions of Chapter XIV on government
share in mineral production-sharing agreement and of Chapter
XVI on incentives of this Act shall immediately govern and
apply to a mining lessee or contractor unless the mining
 126

lessee or contractor indicates his intention to the

secretary, in writing, not to avail of said provisions:
Provided, further, That no renewal of mining lease contracts
shall be made after the expiration of its term: Provided,
finally, That such leases, production-sharing agreements,
financial or technical assistance agreements shall comply
with the applicable provisions of this Act and its
implementing rules and regulations.

Section 113
Recognition of Valid and Existing Mining Claims and
Lease/Quarry Applications

Holders of valid and existing mining claims, lease/quarry

applications shall be given preferential rights to enter into
any mode of mineral agreement with the government within two
(2) years from the promulgation of the rules and regulations
implementing this Act.

Section 114
Separability Clause

If any of the provision of this Act is held or declared to be

unconstitutional or invalid by a competent court, the other
provisions hereof shall continue to be in force as if the
provision so annulled or voided had never been incorporated
in this Act.

Section 115
Repealing and Amending Clause

All laws, executive orders, presidential decrees, rules and

regulations or parts thereof which are inconsistent with any
of the provisions of this Act are hereby repealed or amended
accordingly.

Section 116
Effectivity Clause

This Act shall take effect thirty (30) days following its
complete publication in two (2) newspapers of general
circulation in the Philippines.

Approved,
 127

EDGARDO J. ANGARA JOSE DE VENECIA, JR.

President of the Senate Speaker of the House of
Representatives

This Act which is a consolidation of House Bill No. 10816

and Senate Bill No. 1639 was finally passed by the House of
Representatives and the Senate on February 20, 1995.

EDGARDO E. TUMANGAN CAMILO L. SABIO

Secretary of Senate Secretary General
House of Represenatives

Approved: MARCH 03 1995

FIDEL V. RAMOS
President of the Philippines