Professional Documents
Culture Documents
7076
People’s Small-Scale
Mining Act of 1991
Sheila Calalo
Charlene Pedrajas
Sittie Rohanifah Macarambon Palao
What is Mining?
It is the industry and activities connected with getting valuable or useful minerals
from the ground, for example coal, diamonds, or golds.
What are Minerals?
All lands of the public domains, waters, minerals, coal, petroleum, and other
mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife,
flora and fauna, and other natural resources are owned by the State. x x x The
exploration, development, and utilization of natural resources shall be under
the full control and supervision of the State.
Mining Laws in the Philippines
PEOPLE'S SMALL-SCALE MINING ACT OF 1991(R.A. 7076) - An Act
Creating a People's Small-Scale Mining Program and for Other Purposes
DAO NO. 2015-03 - Revised Rules and Regulations of Republic Act No. 7076
Otherwise Known As "Peoples Small Scale Mining Act Of 1991"
(b) "Small-scale mining" refers to mining activities which rely heavily on manual
labor using simple implements and methods and do not use explosives or heavy
mining equipment;
(p) “Qualified Person” refers to any Filipino citizen of legal age and with
capacity to contract; or a 100% Filipino-owned corporation, partnership,
association or cooperative organized or authorized for the purpose of engaging
in small-scale mining processing, with technical and financial capability to
undertake mineral processing, duly registered in accordance with law.
People's Small-scale Mining
Program
To carry out the 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 orderly, systematic and rational scheme for the small-scale
development and utilization of mineral resources and to address the social,
economic, technical and environmental connected with small-scale mining
activities.
The People's Small-scale Mining Program
shall include the following features:
a) The identification, segregation and reservation of certain mineral lands as
people's small-scale mining areas;
b) The recognition of prior existing rights and productivity;
c) The encouragement of the formation of cooperatives;
d) The extension of technical and financial assistance, and other social
services;
e) The extension of assistance in processing and marketing;
f) The generation of ancillary livelihood activities;
g) The regulation of the small-scale mining industry with the view to
encourage growth and productivity; and
h) The efficient collection of government revenue.
Declaration of People's Small-scale
Mining Areas
The provincial/City Mining regulatory Board is authorized to
declare and set aside people's small-scale mining areas in sites onshore
suitable for small-scale mining, giving priority to areas already occupied and
actively mined by small-scale miners before August 1, 1987; Provided, That
such areas are not considered as active mining areas; Provided further, That
the minerals found therein are technically and commercially suitable for
small-scale mining activities: Provided, finally, That the areas are not covered
by existing forest rights or reservations and have not been declared as tourist
or marine reserves, parks and wildlife reservations, unless their status as
such is withdrawn by competent authority.
The Board shall have the authority to declare and set aside Minahang Bayan
in mineralized areas onshore suitable for small-scale mining, except in areas
closed to mining applications as provided in Section 1 of the EO, subject to
review by the Secretary thru the Director.
Areas Open for Declaration as
Minahang Bayan
e. Ancestral domains/lands unless with Free and Prior Informed Consent from
Indigenous Peoples
b) Public lands covered by existing mining rights which are not active
mining areas: and
c) Private lands, subject to certain rights and conditions, except those with
substantial improvements or in bona fide and regular use as a yard,
stockyard, garden, plant nursery, plantation, cemetery or burial site, or
land situated within one hundred meters (100 m, ) from such cemetery or
burial site, water reservoir or a separate parcel of land with an area often
thousand square meters (10,000 sq.m.) or less.
Ancestral Lands
•Further, Section 17 of the same Act states that in the event that the members
of such ICC give their consent to mining operations within their ancestral
land, royalties shall be paid to them by the parties to the mining contract.
Registration of Small-Scale Miners
For the above purpose, the Board shall maintain a registry of small-
scale miners within its jurisdiction. (Section 6, IRR)
Award of People's Small-scale Mining Contracts
A 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:
Provided, that only one (1) people’s small-scale mining contract may be
awarded at any one time to a small-scale mining contractor who shall start
mining operations within one (1) year from the date of award; Provided
further, That priority shall be given to small-scale miners residing in the
province or city where the small-scale mining area is located.
An applicant for a small-scale mining contract shall first secure a small-scale
mining license from the Board, subject to submission of the following
requirements:
The license shall be effective during the term of the pertinent small-scale
mining contract that may be issued: Provided, That the license shall be
applicable only to applications for small-scale mining contract within a
province. (Section 7, IRR)
Extent of Contract Area
The Board shall determine the reasonable size and shape of the contract area
following the meridional 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 and the depth or length or length of the tunnel or adit not
exceeding that recommended by the director taking into account the following
circumstances:
In no case shall the applied area be less than 1.25 hectares and more than 20
hectares per small-scale mining contract.
The Board shall subdivide the meridional block into 64 parcels at 3.75" of
latitude and 3.75" of longitude per parcel, containing an area of 1.25 hectares,
more or less: Provided, That a small-scale mining contract area shall consist of
adjacent and contiguous parcels. (Section11, IRR)
Easement Rights
Upon the declaration of a people's small-scale mining area, the Director, in
consultation with the operator, claim owner, landowner or lessor of an affected
area, shall determine the right of 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-scale Mining Program, subject to
payment of reasonable fees to the operator, claim owner, landowner or lessor.
Rights under a People's Small-Scale
Mining Contract
A people's small-scale mining contract entitles the small-
scale mining contractor to the right to:
mine,
extract and
dispose of mineral ores for commercial purposes.
A contract shall have a term of two (2) years, renewable subject to verification
by the Board 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 contract area:
Provided, That the holder of a small-scale mining contract shall have the
following duties and obligations:
Duties and Obligations
b) Abide by the Mines and Geosciences Bureau and the Small-scale Mining
Safety Rules and Regulations;
f) File under oath at the end of each month a detailed production and
financial report to the Board; and
In case a site declared and set aside as a people's small-scale mining area is
covered by an existing mining right, the claim owner and the small-scale
miners therein are encouraged to enter into a voluntary and acceptable
contractual agreement with respect to the small-scale utilization of the
mineral values from the area under claim.
In case of disagreement, the claim owner shall be entitled to the
following rights and privileges:
Exemption from the performance of annual work obligations and payment of
occupation fees, rental, and real property taxes;
Subject to the approval of the Board, free access to the contract area to
conduct metallurgical tests, explorations and other activities, provided such
activities do not unduly interfere with the operations of the small-scale miners;
and
Royalty equivalent to one and one half percent (1-1/2%) of the gross value of
the metallic mineral output or one percent (1%) of the gross value of the
nonmetallic mineral output to be paid to the claim owner: Provided, That such
rights and privileges shall be available only if he is not delinquent and other
performance of his annual work obligations and other requirements for the last
two (2) years prior to the effectivity of this Act.
Rights of Private Owners
The Central Bank shall establish as many buying stations in gold-rush areas
to fully service the requirements of the small-scale minerals thereat.
Mineral Processing
• Small-scale mineral processing shall be undertaken only thru centralized
custom mills located in mineral processing zones under a Mineral
Processing License (MPL): Provided, That no mercury shall be used in
mineral processing.
• The term of the MPL shall be coterminous with the small-scale mining
contracts issued in the Minahang Bayan;
Establishment and Operation of Centralized
Custom Mills and Mineral Processing Zones
The establishment and operation of centralized custom mills to process
minerals or ore-bearing materials and mineral processing zones, shall be
subject to the following conditions:
a. The mineral processing zones shall be duly designated by the local
government unit concerned thru the Board, and shall be strategically
situated inside a Minahang Bayan; and
b. Custom mills shall be constituted as withholding agents for the royalties,
production share or other taxes due the government: Provided, That as
withholding agents, such custom mills shall be registered with the Bureau of
Internal Revenue.
Establishment and Operation of Centralized
Custom Mills and Mineral Processing Zones
• In the case where a custom mill or a mineral processing zone shall be located
within an area covered by existing mining application(s) or mining
permit(s)/contract(s), the Board shall fix the amount of compensation due the
mining applicant(s) or holder(s) of mining permit/contract.
• In mining areas where the private sector is unable to establish a custom mill, the
Board shall recommend to the Department, thru the Director, the construction of
the custom mill, if viable.
The fund shall also be made available to address the needs of the small-scale
miners brought about by accidents and/or fortuitous events.
Cancellation of Small-Scale Mining
Contracts/Mineral Processing License and
Administrative Fines
A small-scale mining contract/mineral processing license may be cancelled by
the Secretary thru the Board, after due process, on the following grounds:
a. Failure to comply with the terms and conditions of the small-scale mining
contract/mineral processing license;
b. Violation of any provision of RA No. 7076 and its IRR, and other
applicable laws, rules and regulation;
c. Non-payment of fees, taxes, royalties and/or government production share
in accordance with the IRR and other applicable laws, rules and regulations
for two (2) consecutive years
d. Abandonment of the small-scale mining contract area or mineral
processing plant by the small-scale miner or mineral processor, respectively;
Cancellation of Small-Scale Mining
Contracts/Mineral Processing License and
Administrative Fines
h. When the Minahang Bayan has been reverted pursuant to Section 32 of the
IRR.
Cancellation of Small-Scale Mining
Contracts/Mineral Processing License and
Administrative Fines
The cancellation of a small-scale mining contract/mineral processing license
shall not release the small-scale miner/mineral processor from any and all
obligations he/she/it may have.
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,
may impose fines of an amount not less than Twenty Thousand Pesos
(PhP20,000.00) but not more than One Hundred Thousand Pesos
(PhP100,000.00). Non-payment of the fine imposed shall render the small-
scale mining contractor ineligible for other small-scale mining contracts.
Reversion of People's Small-scale Mining
Areas.
The Secretary, upon recommendation of the director, shall withdraw the
status of the people's small-scale mining area when it can no longer
feasibly operated on a small-scale mining basis or when the safety,
health and environmental conditions warrant that the same shall
revert to the State for proper disposition.
Actual Occupation by Small-
scale Miners
Small-scale miners who have been in actual operation of mineral lands on or
before August 1, 1987 as determined by the Board shall not be dispossessed,
ejected or removed from said areas: provided, that they comply with the
provisions of this Act.
Provincial/City Mining Regulatory
Board
• What is referred to as The Board, and is under the direct supervision of the
Secretary.
• It shall exercise the following powers and functions, subject to review by the
Secretary:
(a) Declare and segregate existing gold-rush areas for small-scale mining;
(b) Reserve future gold and other mining areas for small-scale mining;
(c) Award contracts to small-scale miners;
(d) Formulate and implement rules and regulations related to small-scale mining;
(e) Settle disputes, conflicts or litigations over conflicting claims within a people's
small-scale mining area, an area that is declared a small-mining; and
(f) Perform such other functions as may be necessary to achieve the goals and
objectives of this Act.
Composition of the Provincial/City
Mining Regulatory Board
The Board shall be composed of the Department of Environment and
Natural Resources representative as Chairman;
The Secretary shall within ninety (90) days from the effectivity of this
Act promulgate rules and regulations to effectively implement the
provisions of the same.
Priority shall be given to such rules and regulations that will ensure the
least disruption in the operations of the small-scale miners.
Penal Sanctions
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
confiscation and seizure of equipment, tools and instruments.
RELATED
JURISPRUDENCE
Southeast Mindanao Gold Mining Corp.
vs. Balite Portal Mining Cooperative, et al
Facts:
This case involves a rich tract of mineral land situated in Agusal-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 byu Apex. However, the Court found out that Apex did not
comply with the procedural requisites of acquiring mining rights within forest reserves.
Southeast Mindanao Gold Mining Corp.
vs. Balite Portal Mining Cooperative, et al
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:
No. The challenged memorandum 97-03 did not conclusively adopt direct
statute utilization as policy in resoving 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
mamagement/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.
DENR suspends small-scale
mining in Cordillera
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.
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.
Landslide in Itogon, Benguet
Landslide in Itogon, Benguet
Landslide in Itogon, Benguet