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Mining manual labor using simple tools and methods.

It does not use explosives or

heavy mining equipment and requires only small capital investment.


It is the industry and activities connected with getting valuable or useful

minerals from the ground, for example coal, diamonds, or golds. SECTION 2. Declaration of Policy

Minerals It is hereby declared the policy of the State to promote, develop, protect an

rationalize viable small-scale mining activities in order to generate more


A substance (such as quartz, coal, petroleum, salt, etc.) that is naturally
employment opportunities and provide a equitable sharing of the nation's
formed under the ground. The term “Mineral” is often used in a much more
wealth and natural resources, giving due regard to existing rights as herein
extended sense to include anything of economic value which is extracted
provided.
from the earth

SECTION 3. Definitions.
Mineral Resources

(a) "Mineralized areas" refer to areas with naturally occurring mineral


It means any concentration of ores, minerals and/or rocks with proven or
deposits of gold, silver, chromite, kaolin silica, marble, gravel, clay and like
potential economic value.
mineral resources:

1987 CONSTITUTION (Article XII, Sec. 2) National Economy and


(b) "Small-scale mining" refers to mining activities which rely heavily on
Patrimony
manual labor using simple implements and methods and do not use

explosives or heavy mining equipment;


All lands of the public domains, waters, minerals, coal, petroleum, and other

mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife,
(c) "Small-scale miners" refer to Filipino citizens who, individually or in the
flora and fauna, and other natural resources are owned by the State. x x x
company of other Filipino citizens voluntarily form a cooperative duly
The exploration, development, and utilization of natural resources shall be
licensed by the Department of Environment and Natural Resources to
under the full control and supervision of the State.
engage, under the terms and conditions of a contract, in the extraction or

removal of minerals or ore-bearing materials from the ground;


Mining Laws in the Philippines

(d) "Small-scale mining contract" refers to co-production, joint venture or


a. PEOPLE'S SMALL-SCALE MINING ACT OF 1991(R.A. 7076) - AN ACT
mineral production sharing agreement, between the State and small-scale
CREATING A PEOPLE'S SMALL-SCALE MININGPROGRAM AND FOR
mining contractor for the small-scale utilization of a plot of mineral land;
OTHER PURPOSES

(e) "Small-scale minIng contractor" refers to an individual or a cooperative of


b. DAO NO. 2015-03 - REVISED RULES AND REGULATIONS OF
small-scale miners, registered with the Securities and Exchange Commission
REPUBLIC ACT NO. 7076 OTHERWISE KNOWN AS "PEOPLES SMALL
or other appropriate government agency,which has entered into an
SCALE MINING ACT OF 1991"
agreement with the State for the small-scale utilization of a plot of mineral

c. Philippine Mining Act of 1995(R.A. 7942) - AN ACT INSTITUTING A NEW land within a people's small-scale mining area;

SYSTEM OF MINERAL RESOURCES EXPLORATION, DEVELOPMENT,


(f) "Active mining area" refers to areas under actual exploration,
UTILIZATION, AND CONSERVATION
development, exploitation or commercial production as determined by the

d. CDAO NO. 2010-21 - PROVIDING FOR A CONSOLIDATED Secretary after the necessary field investigation or verification including

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES contiguous and geologically related areas belonging to the same claimowner

ADMINISTRATIVE ORDER FOR THE IMPLEMENTING RULES AND and/or under contract with an operator, but in no case to exceed the

REGULATIONS OF REPUBLIC ACT NO. 7942, OTHERWISE KNOWN AS maximum area allowed by law;

THE “PHILIPPINE MINING ACT OF 1995


(g) "Existing mining right" refers to perfected and subsisting claim, lease,

license or permit covering a mineralize" area prior to its declaration as a

people's small-scale mining area;


REPUBLIC ACT NO. 7076

(h) "Claimowner" refers to a holder of an existing mining right;


AN ACT CREATING A PEOPLE"S SMALL-SCALE MINING PROGRAM

AND FOR OTHER PURPOSES (i) "Processor" refers to a person issued a license to engage in the treatment

of minerals or ore-bearing material such as by gravity concentration, leaching


Small-scale mining is governed by RA No. 7076, otherwise known
beneficiation, cyanidation, cutting, sizing, polishing and other similar
as the “People’s Small-scale Mining Act of 1991,” enacted on June 27, 1991
activities;

Small-scale mining refers to mining activities that rely heavily on


(j) "License" refers to the privileges granted to a person to legitimately pursue
his occupation as a small-scale mill or processor under this Act; SECTION 5. Declaration of People's Small-scale Mining Areas.

(k) "Mining plan" refers to a two-year program of activities and methodologies The provincial/City Mining regulatory Board is authorized to declare and set

employed in the extract ion and production of minerals or ore-bearing aside people's small-scale mining areas in sites onshore suitable for small-

materials, including the financial plan and other resources in support thereof; scale mining, giving priority to areas already occupied and actively mined by

small-scale miners before August I, 1987; Provided, That such areas are not
(l) "Director" refers to the regional executive director of the Department of
considered as active mining areas; Provided further, That the minerals found
Environment and Natural Resources; and
therein are technically and commercially suitable for small-scale mining

activities: Provided, finally, That the areas are not covered by existing forest
(m) "Secretary" refers to the Secretary of the Department of Environment and
rights or reservations and have not been declared as tourist or marine
Natural Resources:
reserves, parks and wildlife reservations, unless their status as such is

(n) “Minahang Bayan” or “People’s Small-Scale Mining Area” refers to the withdrawn by competent authority.

entire area declared as People’s Small-Scale Mining Area pursuant to RA


The Board shall have the authority to declare and set aside Minahang Bayan
No. 7076
in mineralized areas onshore suitable for small-scale mining, except in areas

(o) “Board” refers to Provincial/ City Mining Regulatory Board composed of closed tomining applications as provided in Section 1 of the EO, subject to

the Regional director concerned of the Mines and Geosciences Bureau as review by theSecretary thru the Director.

Chairperson, and four members composed of duly appointed representatives


Areas Open for Declaration as Minahang Bayan
of the following offices/sectors: Governor or City Mayor, small-scale miners,

large-scale miners and environmental non-government organizations.


The following mineralized areas onshore may be declared by the Board as

Minahang Bayan:
(p) “Qualified Person” refers to any Filipino citizen of legal age and with

capacity to contract; or a 100% Filipino-owned corporation, partnership,


a. Areas already occupied and actively mined by small-scale miners before
association or cooperative organized or authorized for the purpose of
August 1, 1987: Provided, (i) That such areas are not considered as active
engaging in small-scale mining processing, with technical and financial
mining areas; (ii) that the minerals found therein are technically and
capability to undertake mineral processing, duly registered in accordance
commercially suitable for small-scale mining; and (iii) that the areas are not
with law.
covered by existing forest rights or reservations and have not been declared

as tourist or protected areas, unless their status as such are withdrawn by


SECTION 4. People's Small-scale Mining Program - To carry out the
competent authority;
declared policy provided in Section 2 of the Act, a People's Small-scale

Mining Program has been established which is designed to achieve an


b. Public lands covered by mining applications, such as:
orderly, systematic and rational scheme for the small-scale development and

utilization of mineral resources and to address the social, economic, 1. Areas covered by pending mining applications wherein the

technical and environmental connected with small-scale mining activities. minerals intended to be mined as declared by the applicant, are

different from the minerals intended for small-scale mining, as


The People's Small-scale Mining Program shall include the following
determined by the Regional Director; or
features:

2. Areas covered by denied mining applications but with pending


a) The identification, segregation and reservation of certain
appeal with the Bureau or Department Central Office: Provided, (i)
mineral lands as people's small-scale minin areas;
That a royalty in escrow due the mining applicant shall be

deposited by the small-scale mining contractor(s) concerned. This


b) The recognition of prior existing rights and productivity;
royalty shall be in the amount based on the prevailing standard

c) The encouragemel1t of the formation of cooperatives; rate in the locality. Where there is no prevailing standard royalty

or no previous royalty payment is involved or has been arranged,


d) The extension of technical and financial assistance, and other
the royalty payment shall be equivalent to an amount not less
social services;
than one and one half percent (1 %%) of the gross value of the

gold, silver or chromite mineral output or one percent (1%) of the


e) The extension of assistance in processing and marketing;
gross value of the non-metallic mineral output; (ii) that the royalty

f) The generation of ancillary livelihood activities; in escrow shall be paid to the mining applicant concerned upon

approval of the pertinent mining application; (iii) that in case the


g) The regulation of the small-scale mining industry with the view
application is denied with finality, the royalty in escrow shall be
to encourage growth and productivity; and
released to the small-scale mining contractor(s) concerned.

h) The efficient collection of government revenue,


c. Public lands covered by existing mining permit(s)/contract(s) which are not
active mining areas; SECTION 7. Ancestral Lands. No ancestral land may be declared as a

people's small-scale mining area without the prior consent of the cultural
d. Private lands, subject to the consent of the landowner(s) and a royalty
communities concerned: Provided, That, if ancestral lands are declared as
payment that shall in no case exceed one percent of the gross value of the
people's small-scale mining areas, the members of the cultural communities
minerals recovered and payment of actual damages as determined by the
therein shall be given priority in the awarding of small-scale mining contracts.
Board due to the declaration of the Minahang Bayan, among other rights and

conditions; and The rights given to indigenous peoples regarding the exploitation

of natural resources under Section 7(b) and 57 of RA No. 8371, or “The


e. Ancestral Lands/Ancestral Domains, subject of Certificates of Ancestral
Indigenous Peoples Rights Act of 1997” (IPRA), amplify what has been
Domains/ Ancestral Land Title (CADT/CALT)or in areas verified by the
granted to them under existing mining laws.
Regional Office and/ or other office or agency of the government authorized
Section 16 of RA 7942 (Philippine Mining Act of 1995) declares
by law for such purpose as actually occupied by ICC under a claim of time that no ancestral lands shall be opened for mining operations without the
prior consent of the ICC concerned. Further, Section 17 of the said Act states
immemorial possession, with Free and Prior Informed Consent (FPIC) from
that in the event that the members of such ICC give their consent to mining
said ICC obtained in accordance with the procedures prescribed by the operations within their ancestral land, royalties shall be paid to them by the
parti\es to the mining contract.
National Commission on Indigeneous Peoples (NCIP): Provided, that if such
SECTION 8. Registration of Small-scale Miners - All persons undertaking
ancestral lands/domains are declared as Minahang Bayan, the members of small-scale mining activities shall register as miners with the Board and may
organize themselves into cooperatives in order to qualify for the awarding of
the ICC therein shall be given the prioprity as small-scale mining contractors.
a people's small-scale mining contract.
(DAO No. 2015-03)
All persons undertaking or intending to undertake small-scale
mining shall register as small-scale miners with the Board, subject to the
Areas Closed To Mining Applications submission of a valid government- issued identification card and proof
of Filipino citizenship.

a. Protected areas (national/natural parks, watersheds, wildlife For the above purpose, the Board shall maintain a registry of small-scale
miners within its jurisdiction. (Section 6, IRR)
sanctuary, wilderness areas, high biodiversity areas, mangroves,

tree parks, game refuge, bird sanctuaries, greenbelts, marine


SECTION 9. Award of People's Small-scale Mining Contracts. - A
reserves/marine parks, etc.); people's small-scale mining contract may be awarded, by the Board to small-
scale miners who have voluntarily organized and have duly registered with
the appropriate government agency as an individual miner or cooperative:
b. Old growth or virgin forests; Provided, that only one (1) people’s small-scale mining contract may be
awarded at anyone time to a small-scale mining contractor who shall start
mining operations within one (1) year from the date of award: Provided
c. Forest and other government reservations (unless with further, That priority shall be given to small-scale miners residing in the
province or city where the small-scale mining area is located.
clearance from agency concerned);
An applicant for a small-scale mining contract shall first secure a
small-scale mining license from the Board, subject to submission
d. Built-up areas (buildings, bridges, private plantations, etc.) of the following requirements:
unless with consent from agency or party concerned;
a. Application form duly accomplished and notarized.
b. Payment of application fee of PhP1,000.00, payable to the
e. Ancestral domains/lands unless with Free and Prior Informed Regional Office concerned; and
c. Proof of registration with the SEC, Department of Trade and
Consent from Indigenous Peoples Industry, Cooperative Development Authority or other appropriate
government agency: Provided, That the applicant shall be 100%
Filipino.
f. Other areas expressly prohibited by law.
The license shall be effective during the term of the pertinent
small-scale mining contract that may be issued: Provided, That
SECTION 6. Future People's Small-scale Mining Areas. the license shall be applicable only to applications for small-scale
mining contract within a province. (Section 7, IRR)

The following lands, when suitable for small-scale mining, may be declared SECTION 10. Extent of Contract Area. - The Board shall determine the
reasonable size and shape of the contract area following the meridional
by the Board as people's small-scale mining areas:
block system established under Presidential Decree No. 463, as amended,
otherwise known as the Mineral Resources Development Decree of 1974,
but in no case shall the area exceed twenty hectares (20 has.) per contractor
a) Public lands not subject to any existing right:
and the depth or length or length of the tunnel or adit not exceeding that
recommended by the director taking into account the following
b) Public lands covered by existing mining rights which are not circumstances:

active mining areas: and a) Size of membership and capitalization of the cooperative; 

b) Size of mineralized area; 

c) Private lands, subject to certain rights and conditions, except c) Quantity of mineral deposits; 

those with substantial improvements or in bona fide and regular d) Safety of miners; 

use as a yard, stockyard, garden, plant nursery, plantation, e) Environmental impact and other considerations; and 


cemetery or burial site, or land situated within one hundred meters f) Other related circumstances. 


(100 m) from such cemetery or burial site, water reservoir or a The Board shall determine the reasonable size and shape of the small-scale
mining contract area following the meridional block system established under
separate parcel of land with an area often thousand square RA No. 7942, otherwise known as the Philippine Mining Act of 1995, but in
meters (10,000 sq.m.) or less. no case shall the applied area be less than 1 .25 hectares and more than 20
hectares per small-scale
mining contract. 1. Conduct small-scale mining in accordance with the Two-year
Work Program, PEIMP, ASHP and CDMP, duly approved by the
For the above purpose, the Board shall subdivide the meridional block into Regional Office concerned, and the ECC;
64 parcels at 3.75" of latitude and 3.75" of longitude per parcel, containing an 2. Undertake extraction and/or breakage of materials without the use
area of 1.25 hectares, more or less: Provided, That a small-scale mining of explosives, blasting accessories, explosives ingredients and/or
contract area shall consist of adjacent and contiguous parcels. (Section11, sophisticated and/or heavy equipment;
IRR) 3. Not resort to hydraulicking or compressor mining at any stage of
small-scale
SECTION 11. Easement Rights. - Upon the declaration of a people's small- mining within the small-scale mining contract area;
scale mining area, the director, in consultation with the operator, claim 4. Not use mercury in any phase of small-scale mining; 

owner, landowner or lessor of an affected area, shall determine the right of
5. Confine small-scale mining to its small-scale mining contract area;
the small-scale miners to existing facilities such as mining and logging
roads, private roads, port and communication facilities, processing plant 

which are necessary for the effective implementation of the People's Small- 6. Abide by DAO No. 97-30, otherwise known as the "Small-Scale
scale Mining Program, subject to payment of reasonable fees to the Mine Safety Rules and Regulations";
operator, claim owner, landowner or lessor. 7. Comply with its obligations to the holder of a mining
permit/contract, if applicable;
SECTION 12. Rights under a People's Small-scale Mining Contract - A 8. Sell its production outputs to the Bangko Sentral ng Pilipinas
people's small-scale mining contract entitles the small-scale mining (BSP) or thru its authorized buying station(s)/agent(s), in the case
contractor to the right to mine, extract and dispose of mineral ores for of gold production;
commercial purposes. In no case shall a small-scale mining contract be 9. Pay all taxes, royalties and/or government production share as
subcontracted, assigned or otherwise transferred. provided by law at the time the small-scale mining contract is
signed;
SECTION 13. Terms and Conditions of the Contract - A contract shall 10. Comply with pertinent rules and regulations on environmental
have a term of two (2) years, renewable subject to verification by the Board protection and conservation; and
for like periods as long as the contractor complies with the provisions set
forth in this Act, and confers upon the contractor the right to mine within the 11. Submit under oath at the end of each month a detailed production
contract area: Provided, That the holder of a small-scale mining contract report and annual financial report to the Board.
shall have the following duties and obligations:
SECTION 14. Rights of Claim owners - In case a site declared and set
a) Undertake mining activities only in accordance with a mining aside as a people's small-scale mining area is covered by an existing mining
plan duly approved by the Board; right, the claim owner and the small-scale miners therein are encouraged to
enter into a voluntary and acceptable contractual agreement with respect
b) Abide by the Mines and Geosciences Bureau and the Small- to the small-scale utilization of the mineral values from the area under claim.
scale Mining Safety Rules and Regulations; In case of disagreement, the claim owner shall be entitled to the
following rights and privileges:
c) Comply with his obligations to the holder of an existing mining
right; a) Exemption from the performance of annual work obligations and
d) Pay all taxes, royalties or government production share as are payment of occupation fees, rental, and real property taxes; 

now or may hereafter be provided by law; 

b) Subject to the approval of the Board, free access to the contract
area to conduct metallurgical tests, explorations and other
e) Comply 'with pertinent rules and regulations on environmental activities, provided such activities do not unduly interfere with the
protection and conservation, particularly those on tree-cutting;
operations of the small-scale miners; and 

mineral-processing and pollution control; 

c) Royalty equivalent to one and one half percent (1-1/2%) of the
f) File under oath at the end of each month a detailed production gross value of the metallic mineral output or one percent (1%) of
and financial report to the Board; and 
 the gross value of the nonmetallic mineral output to be paid to the
g) Assume responsibility for the safety of persons working in the claim owner: Provided, That such rights and privileges shall be
available only if he is not delinquent 
and other performance of
mines. 

his annual work obligations and other requirements for the last
two (2) years prior to the effectivity of this Act. 

Under the IRR, the following terms and conditions shall be incorporated
in every small-scale mining contract: SECTION 15. Rights of Private Owners. - The private landowner or lawful
possessor shall be notified of any plan or petition to declare his land as a
a. The small-scale mining contract may cover non-metallic minerals but in people's mining area. Said landowner may oppose such plan or petition
case of the metallic minerals, it shall only be limited to gold, silver or chromite in an appropriate proceeding and hearing conducted before the Board.
and shall have a term of two (2) years, renewable for like periods but not to
exceed a total term of six (6) years: Provided, (i) That the small-scale mining If a private land is declared as a people's small-scale mining area, the owner
contractor has complied with the terms and conditions of the small-scale and the small scale- mining contractors are encouraged to enter into a
mining contract and the voluntary and acceptable contractual agreement for the small-scale
provisions of RA No. 7076 as verified by the Board; (ii) that the application utilization of mineral values from the private land: Provided, That the
for renewal shall be filed not later than sixty (60) days prior to the expiry of owner shall in all cases be entitled to the payment of actual damages
the small- scale mining contract; (iii) that the application for renewal shall be which he may suffer as a result of such declaration: Provided further,
accompanied by the following: That royalties paid to the owner shall in no case exceed one percent (1%)
of the gross value of the minerals recovered as royalty.
1. Duly accomplished and notarized application form (Annex
B); SECTION 16. Ownership of Mill Tailings - The small-scale mining
contractor shall be the owner of all tailings produced from the contract
2. Proof of payment of Application Fee of PhP10,000.00 for area. He may sell the tailings or have them processed in any custom mill in
non-metallic minerals or PhP20,000.00 for gold, silver and/or the area: Provided, That, if the small-scale mining contractor decide to sell its
chromite, payable to the Regional Office concerned; and mill tailings, the claim owner shall have the preemptive right to purchase
said mill tailings at the prevailing market price.
3. Certification from the Board as to the compliance with the
terms and conditions of the small-scale mining contract, SECTION 17. Sale of Gold. - All gold produced by small-scale miners in
which shall be issued not earlier than ninety (90) days prior any mineral area shall be sold to the Central Bank, or its duly
to the expiration of the small-scale mining contract; authorized representatives, which shall buy it at prices competitive with
those prevailing in the world market regardless of volume or weight.
b. The small-scale mining contract confers upon the small-scale mining
contractor the right to extract and dispose of the authorized minerals within The Central Bank shall establish as many buying stations in gold-rush areas
the small-scale mining contract area: Provided, That the ore produced shall to fully service the requirements of the small-scale minerals thereat.
not exceed fifty thousand (50,000) metric tons annually and shall be
processed in a custom mill; SECTION 18. Custom Mills. - The establishment and operation of safe and
efficient customs mills to process minerals or ore-bearing materials shall be
c. The small-scale mining contractor shall: limited to minerals or ore-bearing materials shall be limited to mineral
processing zones duly designated by the local government unit
concerned upon recommendation of the Board. In mining areas where
the private sector is unable to establish custom mills, the Government shall
construct such custom mills upon the recommendation of the Board
based on the viability of the project. When small-scale mining contracts are cancelled for any of the above-

mentioned grounds, except for items g and h, the Secretary, thru the Board,
The Board shall issue licenses for the operation of custom mills and other
processing plants subject to pollution control and safety standards. may impose fines of an amount not less than Twenty Thousand Pesos

The Department shall establish assay laboratories to cross-check the (PhP20,000.00) but not more than One Hundred Thousand Pesos
integrity of custom mills and to render metallurgical and laboratory services
to mines. (PhP100,000.00). Non-payment of the fine imposed shall render the small-

scale mining contractor ineligible for other small-scale mining contracts.


Custom mills shall be constituted as withholding agents for the royalties,
production share or other taxes due the Government.
SECTION 22. Reversion of People's Small-scale Mining Areas.
Small-scale mineral processing shall be undertaken only thru
centralized custom mills located in mineral processing zones under a The Secretary, upon recommendation of the director, shall
Mineral Processing License (MPL): Provided, That no mercury shall be withdraw the status of the people's small-scale mining area when it can no
used in mineral processing. longer feasibly operated on a small-scale mining basis or when the
safety, health and environmental conditions warrant that the same shall
SECTION 19. Government Share and Allotment. - The revenue to be revert to the State for proper disposition.
derived by the Government from the operation of the mining program herein
established shall be subject to the sharing provided in the Local Government SECTION 23. Actual Occupation by Small-scale Miners.
Code.
Small-scale miners who have been in actual operation of mineral
The small-scale mining contractor/mineral processor shall pay to the lands on or before August 1, 1987 as determined by the Board shall not be
government the following: dispossessed, ejected or removed from said areas: provided, that they
1. National and local taxes due as provided for in the comply with the provisions of this Act.
National Internal Revenue Code;
2. Royalty equivalent to 5% of the gross output, for small- SECTION 24. Provincial/City Mining Regulatory Board.
scale mining within mineral reservations; and
3. Government production share. There is hereby created under the direct supervision and control of the
Secretary a provincial/city mining regulatory board, herein called the
SECTION 20. People's Small-scale Mining Protection Fund. - There is Board, which shall be the implementing agency of the Department, and shall
hereby created a People's Small-scale Mining Protection Fund which shall be exercise the following powers and functions, subject to review by the
fifteen percent (15%) of the national government's share due the Secretary:
Government which shall be used primarily for the information dissemination
and training of small-scale miners, on safety, health and environmental (a) Declare and segregate existing gold-rush areas for small-scale
protection, and the establishment of mine rescue and recovery teams mining;
including the procurement of rescue equipment necessary in cases of (b) Reserve future gold and other mining areas for small-scale mining;
emergencies such as landslides, tunnel collapse, or the like. The fund shall (c) Award contracts to small-scale miners;
also be made available to address the needs of the small-scale miners (d) Formulate and implement rules and regulations related to small-
brought about by accidents and/or fortuitous events. scale mining;
(e) Settle disputes, conflicts or litigations over conflicting claims within a
The Board shall act as Trustee of the Fund. people's small-scale mining area, an area that is declared a small-
Cancellation of Small-Scale Mining Contracts/Mineral Processing mining; and
License and Administrative Fines (f) Perform such other functions as may be necessary to achieve the
goals and objectives of this Act.
A small-scale mining contract/mineral processing license may be cancelled
by the Secretary thru the Board, after due process, on the following grounds: SECTION 25. Composition of the Provincial/City Mining Regulatory
Board.
a. Failure to comply with the terms and conditions of the small-scale
mining contract/mineral processing license; The Board shall be composed of the Department of Environment and
Natural Resources representative as Chairman; and the representative of
b. Violation of any provision of RA No. 7076 and this Administrative the governor or city mayor, as the representative of the governor or city
Order, and other applicable laws, rules and regulation; mayor, as the case may be, one (1) small scale mining representative, one
(1) big-scale mining representative; and the representative from a
c. Non-payment of fees, taxes, royalties and/or government nongovernment organization who shall come from an environmental
production share in accordance with this Administrative Order and group, as members.
other applicable laws, rules and regulations for two (2)
consecutive years The representatives from the private sector shall be nominated by their
respective organizations and appointed by the Department regional director.
The Department shall provide the staff support to the Board.
d. Abandonment of the small-scale mining contract area or mineral
SECTION 26. Administrative Supervision over the People's Small-scale
processing plant by the small-scale miner or mineral processor, Mining Program.
The Secretary through his representative shall exercise direct
respectively; supervision and control over the program and activities of the small-scale
miners within the people's small-scale mining area.
e. Any misrepresentation in any statement made in the application or
The Secretary shall within ninety (90) days from the effectivity of
those made later in support thereof; this Act promulgate rules and regulations to effectively implement the
provisions of the same.

f. Committing acts constituting unfair competition; Priority shall be given to such rules and regulations that will
ensure the least disruption in the operations of the small-scale miners.

g. When national interest and public welfare so require or for SECTION 27. Penal Sanctions.

environmental protection or ecological reasons; and Violations of the provisions of this Act or of the rules and
regulations issued pursuant hereto shall be penalized with imprisonment of
not less than six (6) months nor more than six (6) years and shall include the
h. When the Minahang Bayan has been reverted pursuant to Section confiscation and seizure of equipment, tools and instruments.
32 hereof.
RELATED JURISPRUDENCE
The foregoing provisions notwithstanding, the cancellation of a small-

scale mining contract/mineral processing license shall not release the small- Southeast Mindanao Gold Mining Corp. vs. Balite Portal Mining Cooperative,
et al
scale miner/mineral processor from any and all obligations he/she/it may G.R. No. 135190, April 3, 2002
have. Facts:
This case involves a rich tract of mineral land situated in Agusan-Davao-
Surigao Forest River or known as Diwalwal Gold Rush Area. Diwalwal has
been embroiled in controversy with hundreds of people perishing in mine
accidents, man-made or otherwise, brought about by unregulated mining
activities.

On March 10, 1988, Marcopper was granted an Exploration Permit no. 133
over 4,491 hectares of land which included the Diwalwal area. This
acquisition of mining rights by Marcopper was challenged by Apex. However,
the Court found out that Apex did not comply with the procedural requisites
of acquiring mining rights within forest reserves.

Subsequently Congress enacted RA 7076 or the People Small Scale Mining


Act where DENR issued and Order Declaring 729 hectares of Diwalwal
Areas as non-forestland open to small scale mining. Later on, a petition for
cancellation of EP No. 133 was filed before DENR and while case is
pending, Marcopper assigned its EP No. 133 to petitioner here in Southeast
Mindanao Gold Mining Corp.

On March 3, 1995, RA 7942 or the Philippine Mining Act was enacted which
later on allow, through Provincial Mining Regulatory Board of Davao,
issuance of ore transport permits (OTPs) to small-scale miners operating in
Diwalwal mines. With this, petitioner filed a complaint contending that the
illegal issuance of OTPs allowed extraction and hauling of P60,000 worth of
gold.

On June 24, 1997, Memorandum 97-03 was issued by the DEBR Secretary
providing for a directs state utilization.

Issue:

Whether or not the Memorandum issued by the secretary of the DENR


divested petitioner’s right to the gold rush area are under EP No. 133.

Held:

No. The challenged memorandum 97-03 did not conclusively adopt direct
statute utilization as policy in resolving Diwalwal dispute. The terms of the
Memorandum clearly indicate that what was directed thereunder was merely
a study of this option and nothing else. It did not grant any
management/operating profit-sharing agreement to small-scale miners or to
any party but is simply instructed DENR officials concerned to undertake
studies to determine its feasibility.

Current Events related to Small-Scale Mining:

Source: The Philippine Star (Online), September 18, 2018 – 12:00 a.m.
Article by: Alexis Romero

Nearly 100 people were buried after a landslide hit a mining shelter in
Itogon, Benguet during the onslaught of Typhoon Ompong. The
typhoon, the strongest to enter the country this year, has left more than
50 people dead, mostly in landslides.

The Department of Environment and Natural Resources (DENR)


yesterday ordered the suspension of all small-scale mining operations
in the Cordillera Administrative Region (CAR) in the wake of typhoon-
induced landslides that left dozens of people dead.
Environment Secretary Roy Cimatu said the revocation of mining
permits was made “to prevent further danger” to the lives of small-scale
miners.

Cimatu said the revocation would cover the temporary contracts of 10


small mining associations that were issued temporary permits.

Congress has to repeal the Philippine Mining Act to put an end to


mining, which has caused environmental destruction and triggered
deadly landslides, President Duterte said.

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