WHAT YOU NEED TO KNOW ABOUT THE SDMP………

A PRIMER ON THE
SOCIAL DEVELOPMENT
AND MANAGEMENT
PROGRAM
(SDMP)
WHAT IS SDMP?
 A comprehensive five-year plan of the
Contractor/Permit Holder/Lessee authorize to
conduct mining and milling operations towards
the sustained improvement in the living
standards of the host and neighboring
communities by creating a responsible, self-
reliant and source-based communities capable
of developing, implementing, and managing
community development programs, projects and
activities in a manner consistent with the
principle of people empowerment.
SDMP
a tool for the development and
implementation of community
programs/projects/activities in
consultation and in partnership
with the host and neighboring
communities.
WHAT ARE THE LEGAL BASES FOR THE
IMPLEMENTATION OF THE SDMP?

 Chapter X of Republic Act No. 7942 (Philippine

Mining Act of 1995) provides that 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 134, Chapter XIV, DAO No. 96-40 (The
Revised Implementing Rules and Regulations of R.A.
7942) is on the development of community, mining
technology and geosciences; and
 DAO 2000-99, provides for the Rules and Regulations
on the Implementation of the Social Development and
Management Program (SDMP) for mining projects.
WHAT ARE THE GOALS AND
OBJECTIVES OF THE SDMP?
 To meet the minimum basic needs of the
mining communities and enhance human
welfare and prevent/reduce social ills;
 To optimize the advancement of human
resources which includes grassroots
development and people empowerment to
attain a self-help, self-reliant and self-managed
community;
 To provide opportunities for a self-sustained
livelihood thus decreasing dependency on the
benefits derived from the mining companies;
WHAT ARE THE GOALS AND
OBJECTIVES OF THE SDMP?

 To promote conservation and intellectual

use/management of the environment vis-
à-vis community and mining activities;
and
 To protect the socio-cultural values and
local patterns amidst improved economic
condition and human advancement.
WHAT ARE THE CREDITED
ACTIVITIES UNDER THE SDMP?
 Establishment/construction, development and
maintenance of infrastructure such as community
schools, hospitals, churches, roads, bridges, etc;
 Establishment of livelihood industries including
reforestation through usufruct contracts to be issued
by the DENR utilizing fruit trees; and
 Using facilities within the mine camp, such as
hospitals and schools by members of host and
neighboring communities.
HOW DO YOU DEFINE ‘HOST’ COMMUNITY
AND ‘NEIGHBORING’ COMMUNITY?

 Host Community - the people living at the

barangay(s) outside the mine camp, where
the mining project is located;
 Neighboring Community - the people living
at the barangay(s), which are adjacent to the
host community, areas covered by the mining
tenement of the project, areas where mining
facilities are located; and immediate areas
which will be affected by the mining
operations.
WHERE WILL THE FUNDS FOR THE
IMPLEMENTATION OF THE SDMP COME
FROM?
 The contractor/Permit Holder/ Lessee shall
allot a minimum of one-percent (1%) of the
direct mining and milling costs annually, of
which ninety-percent (90%) shall be
appropriated to implement the SDMP and
ten-percent (10%) for the development of
mining technology and geosciences, as well
as the corresponding manpower training and
development.
HOW DO YOU DEFINE DIRECT MINING
COST AND DIRECT MILLING COST?
 Direct Mining Costs - refer to expenditures and
expenses directly incurred in all activities preparatory to
and in the actual extraction of the ore from the earth and
transporting it to the mill plant for mineral processing.

 Direct Milling Costs - refer to expenditures and

expenses directly incurred in the mechanical and
physical processing and/or chemical separation of the
ore from the waste to produce marketable mineral
products: Provided, that for cement plant operations,
direct milling costs are limited to expenditures and
expenses directly incurred from raw materials crushing
and grinding up to ground raw meal homogenizing, prior
to clinker manufacturing.
WHO ARE EXEMPTED FROM THE
SUBMISSION OF THE SDMP?
 Companies engage in exploration activities
are exempted from the submission of the
SDMP.
 This, however, does not prevent such
companies from allocating certain portions of
its exploration budget for community
development as a way of promoting a
harmonious co-existence with the community.
WHAT IS A COMMUNITY RELATIONS
OFFICER (CRO)?

 A CRO is a company official who will serve as

a link between the company and the host and
neighboring communities in the
implementation of the SDMP.
 She/He shall represent the company in
dealing with the said communities and shall
directly facilitate the addressing of the
communities concerns.
WHAT ARE THE DUTIES AND
RESPONSIBILITIES OF THE CRO?
 Conducts/participates in the SIA/PRA and social
analysis;
 Assesses the needs and opportunities of the
community;
 Formulates and develops projects/programs/activities
in coordination with the host and neighboring
communities;
 Prepares the SDMP in conformity with the SDMP
provisions;
 Implements programs/projects/activities in
coordination with the host and neighboring
communities;
DUTIES AND RESPONSIBILITIES
OF THE CRO?
 Monitors and evaluates the implemented
programs/projects/activities in coordination
with the host and neighboring communities as
an internal activity;
 Corrects/revises the projects/programs/
activities with the host and neighboring
communities to improve said undertakings; and
 Presents the SDMP to MGB-CO and RO
concerned.
WHO WILL PROCESS AND
APPROVE THE SDMP?
 SDMP of Contractor/Lessee shall be
submitted to MGB-Regional Office for
preliminary review and shall be indorsed to
the Central Office for final evaluation and
approval; and
 SDMP of the Permit Holder shall be
submitted, evaluated and approved by the
Regional Office.
WHAT IS AN ANNUAL SDMP?
 This is the document submitted to the
concerned MGB-Regional Office at least
thirty (30) calendar days prior to the
beginning of every calendar year to
effectively implement the approved SDMP.
WHO WILL MONITOR AND AUDIT
THE SDMP?
 The concerned MGB-Regional Office shall
periodically monitor the implementation of the
approved SDMP;
 The CRO and representatives from the host and
neighboring communities shall conduct regular
internal monitoring of the on-going
projects/programs/activities as per approved SDMP;
and
 The MGB-Central Office shall conduct an audit of
the SDMP based on the monitoring reports of the
Regional Office and internal monitoring of the CRO.
WHAT ARE THE PENALTIES FOR THE MINING
COMPANIES OPERATING WITHOUT AN
APPROVED SDMP?

 Contractor/Permit Holder/Lesse found

operating without an approved SDMP shall
be liable to:

1st Offense – fine not exceeding P5,000.00

2nd Offense – sufficient ground to suspend
mining/milling operations in the areas under
contract and a fine not exceeding P5,000.00