Mining Law in The Philippines
Mining Law in The Philippines
Mining Law in The Philippines
STAGES OF MINING
EXPLORATION
DEVELOPMENT
PRODUCTION
PROGRESSIVE
REHABILITATION
FINAL MINE
DECOMMISSIONING /
REHABILITATION
EXPLORATION STAGE
Drilling
EXPLORATION
Soil Analysis
Mineral Analysis
Boundary Survey
Rock Sampling
Geochemical Surveys
DEVELOPMENT STAGE
EXPLORATION
Construction of ancillary facilities
Mine Open Pit Development
DEVELOPMENT
PRODUCTION STAGE
Extraction of minerals
EXPLORATION
DEVELOPMENT
Gold Extraction
PRODUCTION
Mineral Processing
Mine Control
DEVELOPMENT
Slope Stabilization
and Erosion Control
Reforestation
PRODUCTION
FINAL MINE
DECOMMISSIONING /
REHABILITATION
6.
Joint Venture/
Working Agreement/MOA
w/ Qualified Entity
PRIVATE ENTITY
(Qualified Person)
National Govt.
(DENR-MGB)
Local Govt.
(Provincial/City Govt.)
Various Mining
Tenements
Various Mining
Tenements
Exploration Permit
Mineral Agreement
Financial or Technical
Assistance Agreement
Mineral Processing Permit
Qualified Person/Entity
Individual / Corporation
Technically and financially capable
MPSA- Limited to Filipinos or Filipino owned
corporation( Foreign equity not to exceed 40%)
Exploration Permit (EP), Financial or
Technical
Assistance Agreement (FTAA) and Mineral Processing
Permit (MPP) - Open to Local or Foreign -Owned
Corporation ( 100% Foreign equity)
Authorized Capital-
PhP 100,000,000.00
Paid Up Capital -
PhP
6,250,000.00
less
Corporation
20 Blocks
200 Blocks
In entire Philippines
(Onshore)
40 Blocks
400 Blocks
Offshore
32,400
100 Blocks
1000 Blocks
hectares (onshore)
Open to Filipino individuals and companies, and
foreign owned (up to 100%) corporations
Corporation
10 Blocks
In entire Philippines
20 Blocks
5000 hectares
Offshore
50 Blocks
500 Blocks
Term
FINANCIAL OR TECHNICAL
ASSISTANCE AGREEMENT (FTAA)
Certification of Publication/
Posting/ Radio Announcement
NCIP Certification
Pre-condition
Certificate of Environmental
Management & Community Relations
Record
2 Year Environmental Work Program
Proof of Sanggunian cnsultation in the form
of receipt of ExWP, EnWP . Endorsement
is not yet required
Approval by MGB CO
(subject to clearance from DENR)
Certification of Publication/
Posting/ Radio Announcement
NCIP Certification
Pre-condition
Certificate of Environmental
Management & Community Relations
Record
ECC/Environmental Protection and
Enhancement Program
Proof of Sanggunian
Consultation/Approval
Evaluation by MGB RO
Final Evaluation/Review
by MGB CO
3. Gratuitous Permit
3.1 Private Gratuitous Permit (PGP)
3.2 Government Gratuitous Permit (GGP)
1. Quarry Permit
Term: 5 years
(renewable for the like periods but not to
exceed 25 years)
Permit/Parameter
Commercial
Industrial
1 year
5 years
not specified
25 years
Area
Remarks
- With mechanization
-ISAG covering 5-20
hectares can be applied
thru the Regional Office
3. Gratuitous Permit
Permit/Paramet
er
Government
Private
Purpose
construction of
building(s) and/or
infrastructure for
public use, etc.
Term
coterminous with
the project but not
to exceed 1 year
60 calendar days
Area
not specified
Provincial Mining
Regulatory Board (PMRB)
Accepts, process and evaluate applications
and determine administrative charges and
fees for Quarry, Sand and Gravel, Small
Scale Mining Permits.
Pre-processing
(Determine completeness of
mandatory requirements)
With conflict
PMRB to inform applicant
To secure clearance
from concerned
parties
Area Status
Accepts application/
Payment of filing fee
Endorsement of application
/survey plan to MGB RO-IVA for
Area Status
No Conflict
NOTICE TO APPLICANT
RE:APPROVAL/ISSUANCE/DENIAL
ENVIRONMENTAL RESPONSIBILITIES
AT EACH STAGE OF MINING OPERATION
EXPLORATION
Environmental
Work Program
(EWP)
Rehabilitation of
explored areas
Pollution control
Campsite
rehabilitation
Drillsite
rehabilitation
DEVELOPMENT
EPEP/ECC
Erosion control
Tailings dam/pond
preparation
Storage of
hazardous
chemical
management
PRODUCTION
Tailings pond/
dam management
Siltation ponds
Reforestation
Hazardous
wastes
management
Slope
stabilization
FINAL MINE
DECOMMISSIONING
FMRD Plan
Removal of
infrastructures
Rehabilitation of
all mine sites
Remediation/
removal of all
potential source
of contaminants
Maintenance of
tailings dams
Environmental Provisions. . .
Mining contractors required to spend 10% of
initial capital for environment-related
infrastructures during development/preoperation stage
Mining contractors to spend 3% to 5% of DMMC
for annual environmental protection
Mining contractors to deposit funds for
environmental protection
10% of EPEP budget or PhP 5 Million whichever is lower
Environmental Provisions. . .
Deposited funds under management of
Committees
Environmental Provisions. . .
Deposited funds under management of
Committees
48
DENR-MGB-EMB
LGU/Community
Mining Contractor
NGOs/POs/Religious Groups/Civil Society
Indigenous People/Indigenous Cultural Communities,
in ancestral lands/domains
SOCIAL RESPONSIBILITIES
AT EACH STAGE OF MINING OPERATION
EXPLORATION
Mandatory 10% of
exploration budget
for:
Livelihood
programs
Socio-economic
and cultural
activities
Consent from IPs
Consultation with
LGUs
DEVELOPMENT
PRODUCTION
Social Development
Management Prog.
( Annual commitment is 1.5% of
Total Operating Cost)
Livelihood projects
Assistance to health,
education, etc.
Royalty to Indigenous People
Minimum 1% of Gross
Revenue
Share of LGUs from Excise Tax
Secure Endorsement from
Sanggunian
Royalty to surface rights owners
FINAL MINE
DECOMMISSIONING
Maintenance of
livelihood
projects
Transition
programs such
as retrainings
and education,
job
search/placeme
nt etc
Social Provisions
Benefits/Involvement of LGUs in Mining Projects
entitled to 40% of the excise tax/ extraction fee for
sand and gravel (Barangay - 35%; Municipal - 45%;
and Province - 20%)
entitled to occupation fees, real property tax,
business tax and other LGU impositions
recipient of social development projects
approval of mining permit requires the prior
consultation/ endorsement from local government
units
Social Provisions
Obligations to Indigenous
Peoples(IPs)/Indigenous Cultural
Communities(ICCs)
Respect and preserve the culture and
tradition of IPs/ICCs
No mining permits all be approved without
the Free and Prior Informed Consent from
IPs/ICCs
When consent is granted, the IPs/ICCs
entitled to a minimum 1% of annual gross
output for implementation of the Ancestral
Domain Sustainable and Protection
Plan(ADSDPP)