DENR Administrative Order No.

34
July 14, 1992
Sube!t" Rules and Re#ulations to $m%lement Re%ubli! A!t No. &'&(
Ot)er*ise +no*n as ,-eo%les Small S!ale .inin# A!t o/ 1991,.
Pursuant to Section 26 of Republic Act No. 7076, the following rules and regulations are hereby
proulgated for the guidance and copliance of all concerned!
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Se!. 1 "itle. "his Adinistrati#e $rder shall be %nown as &"he Rules and Regulations 'o#erning
Areas (eclared as People)s Sall *Scale +ining Areas&.
Se!. 2 Policy. ,t shall be the policy of the State to proote, de#elop, protect and rationali-e
#iable sall*scale ining acti#ities in order to generate ore eployent opportunities and
pro#ide an e.uitable sharing of the nation)s wealth and natural resources gi#ing due regard to
e/isting rights as herein pro#ided.
Se!. 3 $b0ecti#es. "he rules and regulations of this $rder are proulgated towards the
attainent of the following ob0ecti#es!
3.1 "o effect an orderly and systeatic disposition of sall*scale ining areas in the country1
3.2 "o regulate the sall*scale ining industry with the #iew to encourage their growth and
producti#ity1 and
3.3 "o pro#ide technical, financial and ar%eting assistance and efficient collection of
go#ernent re#enues.
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Se!. 4 (efinition of "ers. "he following ters shall be construed to ean as hereunder
indicated!
4.1 & Acti#e +ining Area& refers to an area under actual e/ploration de#elopent, e/ploitation or
coercial production as deterined by the Secretary after the necessary field in#estigation or
#erification including contiguous and geologically related areas which are supported by an
established geological report, be ongoing to the sae clapdown and2or under contract with an
operator, but in no case to e/ceed the a/iu area allowed by law1
4.2 &Ancestral 3and& refers to a territory of an ,ndigenous 4ultural 4ounity2ies 5,44s6
ebracing all lands and natural resources which are in the actual and2or traditional possession
of an indigenous cultural counity and its ebers including areas necessary to ensure their
econoic, social and cultural welfare1
4.3 & 7oard& refers to the Pro#incial 24ity ining Regulatory 7oard which shall be the
ipleenting agency of the (8NR and shall be coposed of the (8NR )s representati#e as
4hairan and ebers coposed of duly appointed representati#es fro the following
$ffices2sectors, naely 'o#ernor or 4ity +ayor 1 sall*scale iners1 large*scale iners, and
non*go#ernent organi-ation with en#ironental concerns1
4.4 &4o*Production Agreeent & is the ode of ining agreeent whereby the go#ernent,
aside fro inputting the ineral resources for which it gets an agreed share, short of creating a
new 0uridical entity, has other contributions for which it gets another share in addition to the
agreed share1
4.8 &(epartent & or (8NR refers to the (epartent of 8n#ironent and Natural Resources1
4.( &(irector & refers to the Regional 8/ecuti#e (irector 5R8(6 of the (epartent1
4.& & 8n#ironental ,pact& *eans the direct effect of sall *scale ining operations to all
biological, physical, social, econoic and cultural eleents1
4.9 &8.uipent 9tili-ation 4ost& eans all cash e/penditures for the operation and utili-ation of
e.uipent for a single ining unit, which includes fuel, copressed air, utilities, power supplies,
raw aterials, lease of e.uipent, repairs and aintenance1
4.9 &8/isting +ining Right& refers to perfected and subsisting clai, lease, license, contract, or
perit co#ering a inerali-ed area prior to its declaration as a People)s Sall Scale +ining
Area1
4.1' &'o#ernent Production Share& refers to the share of the go#ernent in a +ineral
Production Sharing Agreeent 5+PSA6 of the go#ernent, 0oint #enture or co*production which
ay be deterined by the 7oard1 ,n 4o*Production and :oint ;enture +ining Agreeents, the
go#ernent shall, in addition to recei#ing go#ernent shares for the ineral resources as
prescribed abo#e, be entitled to copensation for its other contributions which shall be agreed
upon by the parties to the ining agreeent 1
4.11& ,n#estent& eans all capital in#estents sun% by the contractor on a single ining unit to
a%e it operati#e 1 including raw aterials, additional land and e/isting capital such as
processing plants, ine and hauling e.uipent, tools, infrastructures, capitali-ed e/ploration
and de#elopent costs, support facilities and wor%ing capital. "hese in#estent shall not
e/ceed "en +illion Pesos 5P<0,000,000.006 during the effecti#ity of the original contract and its
renewal1
4.12 &:oint ;enture Agreeent & is the ode of ining agreeent whereby the go#ernent,
aside for inputting ineral resources for which it gets the agreed share, has a contribution to
the e.uity of the intending operator, and for which e.uity holding it shall recei#e a proportional
share of the profits by way of di#idends1
4.13&3abor 4ost & eans all cash e/penditure such as salaries, wages, allowances and other
benefits, easured on a per etric ton of ore basis, for the reuneration of personnel directly
in#ol#ed in the ining, processing, hauling, handling and storage of ore concentrate2s or finished
product on a single ining unit e/cluding super#isory and adinistrati#e personnel1
4.14 &3abor *,ntensi#e& eans a ining operation wherein the ratio of labor cost to e.uipent
utili-ation cost to produce, process and ar%et one 5<6 etric ton of ore e.uals to or not less
than one 5<61
4.18 &3icense& refers to the pri#ilege granted to a person to legitiately pursue his occupation as
a sall *scale iner or processor under RA 70761
4.1( &+inerali-ed Areas& refer to areas with naturally occurring ineral deposits of gold, sil#er,
chroite, %aolin, silica, arble, gra#el, clay and other ineral resources1
4.1& &+ineral 3ands& refer to those lands in which inerals e/ist in sufficient .uantity and grade
to 0ustify the necessary e/penditures in e/tracting and utili-ing such inerals1
4.19 &+ineral Production Sharing Agreeent 5+PSA6& is the ode of ining agreeent
whereby the go#ernent inputs only the ineral resources and for which it gets an agreed share
fro the gross output #alue of the inerals produced, and net ining re#enue before incoe
ta/1
4.19 +ining Plan& refers to a two*year progra of acti#ities and ethodologies eployed in the
e/traction and production of inerals or ore*bearing aterials including the financial plan and
other resources in support thereof1
4.2'&Pri#ate 3ands& refers to lands belonging to pri#ate persons which include alienable and
disposable lands being claied by a holder, claiant or occupant who has already ac.uired a
#ested right thereto under the law although the corresponding certificate or e#idence of title or
patent has not been actually issued1
4.21 &Public lands& refer to lands of the public doain including patrionial property of the
go#ernent 1
4.22 &Processor& refers to a person and 2or entity issued a license to engage in the treatent of
ineral or ore*bearing aterials such as by gra#ity concentration leaching beneficiation,
cyanidation, cutting, si-ing, polishing and other siilar acti#ities1
4.23 &Secretary& refers to the Secretary of the (epartent of 8n#ironent and Natural
Resources1
4.24 &Single +ining 9nit& eans a ining operation co#ered by a &sall*scale ining contract&1
4.28 &Sall *scale +ining& refers to ining acti#ities which rely hea#ily on anual labor using
siple ipleents and ethods and do not use e/plosion or hea#y ining e.uipent 1
4.2(&Sall*scale +iners& refers to =ilipino citi-ens who indi#idually or in the copany of other
=ilipino citi-ens, #oluntarily for a cooperati#e duly licensed by the (8NR to engage, under the
ters and conditions of a contract2license in the e/traction or reo#al of inerals or ore*bearing
aterials fro the ground1
4.2& &Sall*scale +ining 4ontract& refers to co*production, 0oint #enture or +ineral Production
Sharing Agreeent between the go#ernent and a sall*scale ining contractor for the sall
*scale utili-ation of a plot of ineral land1
4.29 &Sall*scale +ining 4ontractor & refers to a cooperati#e of sall scale iners, registered
with the Securities and 8/change 4oission 5S846 or other appropriate go#ernent agency,
which has entered into an agreeent with the go#ernent for the sall scale utili-ation of a plot
of ineral lands within a People)s Sall Scale ining Area1 and,
4.29 &"raditional Sall*scale +iners& refer to =ilipino citi-ens who ha#e a distincti#e socio*
econoic cultural tradition with a subsistence base focused on sall*scale ining. "hey li#e in
stable sedentary counities and eploy a ining technology that is labor*intensi#e and
siple1 and eploys physical separation ethods for the e/traction of ineral2s and2or etal2s
fro the ore.
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SE0. 8 3,48NS,N'. =ilipino citi-ens of legal age and with capacity to contract are .ualified for a
license as Sall*Scale +iner and 2or Processor. >owe#er, the following re.uireents shall be
subitted to the nearest +ines and 'eo*Sciences (e#elopent Ser#ice or 48NR$ or P8NR$!
8.1 Sall*Scale +iner
<. Application for duly accoplished as prescribed in Anne/ A1
2. Payent of application fee of P?.00 to the concerned (8NR Regional
$ffice1 and
@. 7arangay 4ertificate of Residency that applicant is a bonafide resident of
the 7arangay for a period of at least si/ 566 onths.
8.2 Processor
<. Application for duly accoplished as prescribed in Anne/ 71
2. Payent of application fee of P20.00 to the concerned (8NR Regional
$ffice1 and
@. 4ertification on the capacity to perfor processing of specific
coodities fro Regional "echnical (irector for ines and 'eosciences
(e#elopent Ser#ice.
"he license, to be issued in ,dentification 4ard for, shall be appro#ed by the (8NR Secretary
or his duly authori-ed representati#es and shall ha#e a ter of two 526 years and renewable
e#ery two 526 years.
Se!. ( (eclaration of People)s Sall *Scale +ining Areas. "he 7oard created under RA 7076
shall ha#e the authority to declare and set aside People)s Sall*Scale +ining Areas in sites
onshore suitable for sall*scale ining operations sub0ect to re#iew by the (8NR Secretary thru
the (irector.
"he following onshore areas ay be declared by the 7oard as People)s Sall Scale +ining
Areas!
(.1 Areas already occupied and acti#ely ined by Sall*scale +iners before August <, <AB7!
Pro#ided, "hat such areas are not considered as acti#e ining areas! Pro#ided, further, "hat the
inerals found therein are technically and coercially suitable for sall*scale ining
acti#ities ! Pro#ided, finally, "hat the areas are not co#ered by e/isting forest rights or
reser#ations and ha#e not been declared as tourist or arine reser#es, par%s and wildlife
reser#ations, unless their status as such are withdrawn by copetent authority1
(.2 Public lands not sub0ect to any e/isting right1
(.3 Public lands co#ered by e/isting ining rights which are not acti#e ining areas1
(.4 Pri#ate lands, sub0ect to certain rights and conditions, e/cept those with substantial
ipro#eents or in bonafide and regular use as a yard, stoc%yard, garden, plant nursery,
plantation, ceetery or burial site, or land situated within one hundred eters 5<00 eters6 fro
such ceetery or burial site, water reser#oir or a separate parcel of land with an area of ten
thousand s.uare eters 5<0,000 s.. .6 or less1
(.8 Ancestral lands with prior consent fro the cultural counities concerned. Pro#ided, "hat,
if ancestral lands are declared as People)s Sall*scale +ining Areas, the ebers of the
cultural counities therein shall be gi#en the priority in the awarding of sall*scale ining
contracts. Pro#ided, further, that in cases where the ,ndigenous 4ultural 4ounities 5,44s6
concerned refuse to allow their area to be declared a people)s sall scale ining area, their
custoary rights to their ancestral land shall be recogni-ed and protected1
(.( Areas occupied by a counity of traditional sall*scale iners sub0ect to the appro#al of
the said counity. Chere they refuse to allow their areas to be declared a People)s Sall*
scale +ining Area, their custoary rights under their ining traditions shall be recogni-ed and
protected1
,n all of the abo#e cases, the laws, rules and regulations protecting the =ilipino cultural heritage
shall be strictly coplied with.
Se!. & Procedures in the (eclaration of a People)s Sall*Scale +ining Area. "he following shall
be obser#ed in the declaration of sall scale ining areas!
&.1 Petition2Re.uest fro any interested party for declaration of an area as People)s Sall*
Scale +ining Area filed with the 7oard1
&.2 8#aluation of area whether sae is technically or econoically #iable1
&.3 ,dentification of other areas technically and econoically #iable for sall*scale ining upon
the initiati#e of the (8NR or duly authori-ed body1
&.4 ,ssuance of notices by the 7oard to claiowners, operators, pri#ate landowners and non*
go#ernental organi-ations concerned, go#ernent agencies and cultural counities for
clearance and consent as the case ay be 1
&.8 Posting 2Publication of notices on pro#incial or city2unicipal halls and2or ines and 'eo*
Sciences (e#elopent Ser#ice $ffice and other conspicuous places, and2or publication in a
newspaper of local or national circulation once wee% for two 526 consecuti#e wee%s1
&.( Segregation of proposed areas for sall*scale ining purposes upon copletion of the
necessary docuents, sub0ect to re#iew of the Secretary within thirty 5@06 wor%ing days fro the
date of receipt of the proposal for such segregation fro the 7oard.
&.& (eclaration of area as People)s Sall*Scale +ining Area by the 7oard in the e#ent that the
area to be segregated and declared for such purpose is found to be in order by the Secretary
after the thirty 5@06 day period of re#iew thereof.
Se!. 9 Procedure in 4ase of $pposition2Protest. Any opposition2protest to the petition2re.uest
that an area be declared as a People)s Sall*Scale +ining area shall be filed with the 7oard not
later than fifteen 5<?6 wor%ing days after the last publication of the notices as pro#ided for in
Section 7 hereof.
"he 7oard shall act on the opposition or protest within fifteen 5<?6 wor%ing days after it is
subitted for resolution. "he decision of the 7oard ay be appealed to the Secretary within fi#e
5?6 wor%ing days fro receipt of the decision of the 7oard. "he decision of the Secretary is
iediately e/ecutory.
Se!. 9 Registration of Sall*Scale +iners. All persons underta%ing sall*scale ining acti#ities
shall register as sall*scale iners with the 7oard, which has 0urisdiction o#er the Sall*Scale
+ining Area. "he following re.uireents shall be subitted in order to be registered!
9.1 Sall*Scale +iners 3icense issued pursuant to this $rder1 and
9.2 7arangay 4ertificate of Si/ 566 +onths Residency.
Sec. <0 Application to 8nter ,nto a Sall*scale +ining 4ontract. Registered sall*scale iners
ay organi-e thesel#es into cooperati#e2s to be .ualified for the awarding of a People)s sall*
scale +ining 4ontract. Applications as prescribed in Anne/ 4 hereof shall be accoplished and
subitted together the following re.uireents in fi#e 5?6 copies within fi#e 5?6 days fro the date
the application was secured!
1'.1 Application fee of "hirty Pesos 5P@0.006 per hectare or a fraction thereof payable to the
concerned (8NR Regional $ffice1
1'.2 4ertified "rue 4opy of Articles of ,ncorporation1 and
1'.3 ,nforation on the geographical coordinates 5latitude and longitude 6 of the area applied
for, the a/iu of which is e.ual to <2D of < eridional bloc% of <?& of latitude and <?& of
longitude, containing an appro/iate area of twenty 5206 hectares.
Cithin fifteen 5<?6 wor%ing days upon receipt of the application by the 7oard, it shall chec%
through the control ap if the area is free fro conflict. ,f the area is free, a written notice
re.uesting the applicant to subit a proposed contract shall be sent by the 7oard.
,n case of conflict2s, the 7oard shall resol#e the sae within fi#e 5?6 wor%ing days fro the date
of the disco#ery thereof.
Se!. 11 Re.uireents for Sall*Scale +ining 4ontract. Cithin ninety 5A06 calendar days upon
receipt of the written notice by the 7oard referred to in Section <0 hereof, the applicant shall
subit the proposed contract indicating therein the following features!
11.1 +ode of agreeent 5i.e., co*production, 0oint *#enture or +ineral Production Sharing
Agreeent 6
11.2 "ers and conditions of the contract in confority with the pro#isions of Section <@ hereof 1
and,
11.3 Rights of the sall*scale ining contractor consistent with the pro#isions of Section <A and
20 hereof.
"he following docuents ust be attached to be proposed contract!
11.4 Sur#ey plan prepared by a deputi-ed geodetic engineer including field notes co#er and duly
notari-ed (escripti#e Sur#ey Report.
11.8 +ining plan prepared by a registered ining engineer! and,
11.( 8n#ironental 4opliance 4ertificate 58446 issued by the concerned (8NR Regional
8/ecuti#e (irector.
Pro#ided, "hat for the purpose of facilitating the subission of proposed contracts, the board
ay a%e a#ailable saple contracts as guide to applicants in drafting their proposed contracts.
Se!. 12 Award of People)s Sall*Scale +ining contract. "he 7oard within fifteen 5<?6 wor%ing
days upon receipt of the proposed contract shall e#aluate, negotiate and award the sae,
sub0ect to re#iew by the Secretary. Pro#ided that only one people)s sall*scale ining contract
ay be awarded at any one tie to a sall*scale ining contractor who shall start ining
operation within one year fro the date of award. Pro#ided, further, that priority shall be gi#en to
cooperati#es a0ority of whose ebers are residents of the pro#ince, city or unicipality
where the sall *scale ining area is located.
Se!. 13 "ers and 4onditions of Sall*Scale +ining 4ontract. A contract shall ha#e a ter of
two 526 years, renewable for li%e periods sub0ect to #erification by the 7oard as long as the
contractor coplies with the pro#isions set forth in RA 7076, and confers upon the contractor the
right to ine within the contract area! Pro#ided, "hat, the sall*scale ining contractor shall be
under obligation to !
13.1 9nderta%e ining acti#ities only in accordance with a ining plan duly appro#ed by the
7oard1
13.2 Abide by the ine safety rules and regulations per +eorandu 4ircular No. +R(*2,
Series of <AB?, as ay be applicable and other rules and regulations which ay be proulgated
by the (8NR Secretary1
13.3 4oply with his obligations to the holder of an e/isting ining right2s, if applicable 1
13.4 Pay all fees, ta/es, royalties or go#ernent production share as are now or ay hereafter
be pro#ided by law1
13.8 4oply with pertinent rules and regulations on en#ironental protection and conser#ation,
particularly those on tree*cutting, ineral processing and pollution control1
13.( =ile under oath at the end of each onth a detailed production report and annual financial
report to the 7oard1 and
13.& Assue responsibility for the safety of persons wor%ing in the ines.
Sec. <D Cor%er >ealth and Safety. "o ensure the safety and health of sall*scale iners, the
following shall be obser#ed!
14.1 "he contractor ust pro#ide ade.uate sanitation facilities in the for of non*containating
latrines in accordance with the directions pro#ided by the concerned (8NR Regional $ffice1
14.2 "he contractor ust pro#ide and aintain clean drin%ing water for all wor%ers.
14.3 "he contractor shall be responsible for the health and safety of all indi#idual contractors or
eployees operating within the contract area1
14.4 "he use of ercury, cyanide or any other poisonous substance ust be handled in
accordance with pro#isions as directed by the concerned (8NR Regional $ffice1 and,
14.8 "he contractor ust notify the 7oard within fi#e 5?6 wor%ing days of all accidents causing
either death or ore than fi#e 5?6 days of lost wor%ing tie.
Se!. 18 Protection of the 8n#ironent. ,n order to protect the surrounding en#ironent of sall*
scale ining area, the following shall be coplied with by all concerned!
18.1 "he contractor ust ensure that all areas of acti#ity within the contract area are aintained
in a clean and organi-ed anner1
18.2 "he contractor ust proceed with the schedule of tailings and waste anageent and
ine site rehabilitation as docuented in the appro#ed +ining Plan1
18.3 "he contractor shall be responsible for the control and proper disposal, where applicable, of
all wastes produced as a result of ining operations1 and,
18.4 "he contractor shall coply with all en#ironental laws, especially with respect to water
.uality, water course di#ersion, e/cess siltation and undue interference with e/isting agricultural
fishing or other legitiate land and water usage.
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Se!. 1( 8aseent Rights. 9pon the declaration of People)s Sall*scale +ining Area, the
(irector, in consultation with the sall*scale iner2s, operator, claiowner, landowner or lessor
of the affected area, shall deterine the right of the sall*scale iners to e/isting facilities such
as ining and logging roads, pri#ate roads, port and counication facilities, processing plants
which are necessary for the effecti#e ipleentation of the People)s Sall*Scale +ining
Progra, sub0ect to payent of reasonable fees to the operator, claiowner, landowner or
lessor.
Se!.1& Rights of 4laiowner. ,n case a site declared and set aside as a people)s sall*scale
ining area is co#ered by an e/isting ining right, the clapdown and the sall*scale iners
therein are encouraged to enter into a #oluntary and acceptable contractual agreeent with
respect to the sall*scale utili-ation of the ineral #alues fro the area under clai. ,n case of
disagreeent, the claiowner shall be entitled to the following rights and pri#ileges1
1&.1 8/eption fro the perforance of annual wor% obligations and payent of occupation
fees, rental, and real property ta/es1
1&.2 Sub0ect to the appro#al of the 7oard, free access to the contract area to conduct
etallurgical tests, e/plorations and other acti#ities, pro#ided such acti#ities do not unduly
interfere with the operations of the sall*scale iners1 and
1&.3 Royalty e.ui#alent to one and one half percent 5< <22E6 of the gross #alue of the etallic
ineral output or one percent 5<E6 of the gross #alue of the non*etallic ineral output to be
paid to the claiowner! Pro#ided, "hat, such rights and pri#ileges shall be a#ailable only if he is
not delin.uent in the perforance of his annual wor% obligations and other re.uireents for the
last two 526 years prior to the effecti#ity of RA 7076.
Se!. 19 Rights of Pri#ate 3andowners. "he pri#ate landowner or lawful possessor shall be
notified of any plan or petition to declare his land as a People)s sall*scale +ining Area. Said
landowner ay oppose such plan or file petition in an appropriate proceeding and hearing
conducted before the 7oard.
,f a pri#ate land is declared as a People)s Sall*Scale +ining Area, the owner and the sall*
scale ining contractor are encouraged to enter into a #oluntary and acceptable contractual
agreeent for the sall*scale utili-ation of the ineral #alues fro the pri#ate land within thirty
5@06 days. Pro#ided, "hat, the owner shall, in all cases, be entitled to the payent of actual
daages which ay occur as a result of such declaration.Pro#ided, further, that royalties paid to
the owner shall in no case e/ceed one percent 5<E6 of the gross #alue of the inerals
reco#ered as royalty.
Se!. 19 Rights 9nder a People)s Sall*Scale +ining 4ontract. A people)s sall*scale ining
contract entitles the holder to a right to ine e/tract, and dispose of ineral ores for coercial
purposes o#er the area co#ered thereby. Pro#ided, "hat in no case shall the contract be
subcontracted, assigned or otherwise transferred to a second party.
Se!. 2'. $wnership of +ill "ailings. "he sall*scale ining contractor shall be the owner of all
ill tailings produced fro the contract area. >e ay sell the tailings, or ha#e the processed in
any custo ill in the area. Pro#ided, that if the sall*scale ining contractor decides to sell its
ills tailings, the clapdown or ining operation shall ha#e a preepti#e right to purchase said
ill tailings at the pre#ailing ar%et price.
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Se!. 21 Adinistrati#e Super#ision o#er the People)s Sall*Scale +ining Progra. "he
following (8NR officials shall e/ercise the following super#isory functions in the ipleentation
of the Progra!
21.1 (8NR Secretary* direct super#ision and control o#er the progra and acti#ities of the
sall*scale iners within the people)s sall*scale ining area1
21.2 (irector* "he (irector shall!
a. Recoend the depth or length of the tunnel or adit ta%ing into account
the ! 5<6 si-e of ebership and capitali-ation of the cooperati#e1 526 si-e of
inerali-e area1 5@6 .uantity of ineral deposits1 5D6 safety of iners1 5?6
en#ironental ipact and other considerations1
b. (eterine the right of the sall*scale iners to e/isting facilities in
consultation with the operator, clapdown, landowner or lessor of an
affected area upon declaration of a sall*scale ining area1
c. Recoend to the Secretary the withdrawal of the status of the people)s
sall*scale ining area when it can no longer be feasibly operated on a
sall*scale basis1 and
d. See to it that the sall*scale ining contractors abide by sall*scale
ines safety rules and regulations.
Se!. 22 Pro#incial24ity +ining Regulatory 7oard. "he Pro#incial24ity +ining Regulatory 7oard
created under RA 7076 shall e/ercise the following powers and functions, sub0ect to re#iew by
the Secretary1
22.1 (eclares and segregates e/isting gold*rush area for sall *scale ining1
22.2 Reser#es for the future, inerali-ed areas2ineral lands for people)s sall*scale ining1
22.3 Awards contracts to sall*scale iners) cooperati#e1
22.4 =orulates and ipleents rules and regulations related to RA 70761
22.8 Settles disputes, conflicts or litigations o#er conflicting clais within ninety5A06 days upon
filing of protests or coplaints1 Pro#ided, "hat any aggrie#ed party ay appeal within fi#e 5?6
days fro the 7oard)s decision to the Secretary for final resolution otherwise the sae is
considered final and e/ecutory1 and
22.( Perfors such other functions as ay be necessary to achie#e the goals and ob0ecti#es of
RA 7076.
Se!. 23 4oposition of the Pro#incial24ity +ining Regulatory 7oard. "he 7oard shall be
coposed of the following!
23.1 Representati#e fro the (8NR Regional $ffice concerned * 4hairan
23.2 'o#ernor or 4ity +ayor or their duly authori-ed representati#e * +eber
23.3 $ne 5<6 Sall*Scale +ining representati#e *+eber or as per Section 2D.@
23.4 $ne 5<6 3arge*Scale +ining representati#e * +eber
23.8 $ne 5<6 representati#e fro a non*go#ernent organi-ation*+eber1 and,
23.( Staff support to the 7oard to be pro#ided by the (epartent.
Se!. 24 4riteria in 4hoosing the Representati#e2s to the 7oard. Representati#es to the 7oard
shall be selected ta%ing into consideration the hereunder criteria!
24.1 >e2She ust be a bonafide eber of and noinated by the organi-ation he2she
represents1
24.2 Preferably, he2she should be residing or ha#e established concern for wor% in the pro#ince
or city as the case ay be1
24.3 ,n case of the abseFce of noinees fro the area, the 4haber of +ines and Sall*Scale
+ining Association shall noinate one 5<6 representati#e each to the 7oard1 and
24.4 "he representati#e fro a non*go#ernent organi-ation ust coe fro an en#ironental
group duly accredited by (8NR.
Se!. 28 4opensation of the +ebers of the 7oard. "he ebers of the 7oard shall recei#e
copensation based on eetings attended at the rate prescribed by pertinent laws sub0ect to
e/isting accounting and auditing procedures.
01A-2ER 6$
7$S0A3 AND RE:;3A2OR4 -RO6$S$ONS
Se!. 2( Payent of "a/es, 'o#ernent Production Share. "he Sall*Scale +ining contractor
shall pay to the go#ernent the following!
2(.1 ,ncoe "a/ as pro#ided in the National ,nternal Re#enue 4ode 5Sec. 2<61
2(.2 Special ,port "a/ 5,f applicable61
2(.3 "ariff (uties 5,f applicable 61
2(.4 ;alue Added "a/ as pro#ided in 8.$. 27@
2(.8 Real Property "a/ 5,f applicable61
2(.( 8/cise "a/ e/cept gold sold to 4entral 7an% which are considered for e/port1 and
2(.& 'o#ernent Share which shall be paid to the +unicipality or 4ity "reasurer where the
ining clais are located and shall be apportioned in accordance with the 3ocal 'o#ernent
4ode of <AA<.
Se!. 2& Payent of =ees and $ther 4harges. "he Sall*Scale +ining 4ontractor shall pay to
the go#ernent the following !
2&.1 An application fee of "hirty Pesos 5P@0.006 per hectare or a fraction thereof1 and,
2&.2 $ccupation fee of =ifty Pesos 5P?0.006 per hectare or a fraction thereof per year which
shall be paid to the unicipality where the contract area is located. Pro#ided, "hat the initial
occupation fee shall be paid on the date the contract is appro#ed.
Se!. 29. People)s Sall*Scale +ining Protection =und. "he People)s Sall*Scale +ining
Protection =und created in Section 20 of RA 7076 which pro#ides for fifteen percent 5<?E6 of the
national go#ernent )s share of the internal re#enue ta/ or production share due the
'o#ernent shall be used priarily for inforation disseination and training of sall *scale
iners on safety, health and en#ironental protection, and the establishent of +ine Rescue
and Reco#ery "eas including the procureent of rescue e.uipent necessary in cases of
eergencies such as landslides, tunnel collapse, or the li%e.
"he =und shall also be ade a#ailable to address the needs of the sall*scale iners brought
about by accidents and2or fortuitous e#ents.
"he 7oard will act as "rustee of the =und.
Se!. 29 Rescission of 4ontracts and adinistration =ines. Awarded contracts ay rescinded on
the following grounds!
29.1 Non*4opliance with the ters and conditions of the contract and that of e/isting ining
laws, rules and regulations including those pertaining to ine safety, en#ironental protection
and conser#ation, tree cutting, ineral processing and pollution control1
29.2 Non.*copliance with the contractor)s obligations to e/isting ining clai holders2pri#ate
landowners as stipulated in Section <@, <7 and <B of this $rder1
29.3 Non*payent of fees, ta/es, royalties or go#ernent share in accordance with this $rder
and e/isting ining laws1
29.4 Abandonent of ining site by the contractor1 and
29.8 80ectent fro the People)s Sall*scale +ining Area of the 4ontractor by the go#ernent
for reasons of national interest and security.
Chen contracts are rescinded for grounds under Sections 2A.< to 2A.D hereof, the Secretary
ay ipose fines of an aount not less than "wenty "housand Pesos 5P20,000.006 but not
ore than $ne >undred "housand Pesos 5P<00,000.006. Non*payent of the fine iposed
shall render the sall*scale ining contractor ineligible for other sall*scale ining contracts.
Se!. 3' Re#ersion of People)s Sall*Scale +ining Areas. A People)s Sall*Scale +ining Area
ay be re#erted to the State for proper disposition by the Secretary upon recoendation of
the (irector when!
3'.1 ,t can no longer be econoically and efficiently operated on a sall*scale ining basis1 or
3'.2 "he wor%ing conditions endanger the li#es and health of the iners1 or
3'.3 Sall*scale ining operations cause significant destruction to the en#ironent 1 or,
3'.4 "here is continuous disturbance of peace and order for three 5@6 consecuti#e years causing
loss of li#es and property.
Chen the go#ernent deterines that a sall*scale ining area can no longer be legally or
feasibly operated on a sall scale basis, the Secretary shall!
a. Pro#ide written notice to all holders of contracts within the area1 and
b. 'i#e each contractor the right of first refusal and reasonable tie frae to pro#ide the
necessary technical and financial capability to apply for a large*scale ining right1 or
c. Pro#ide reasonable copensation to the contractor for the loss of ining rights, in case of
re#ersion.
01A-2ER 6$$
ASS$S2AN0E 2O S.A33<S0A3E .$NERS
Se!. 31 Assistance to Sall*Scale +iners. "he (8NR in coordination with other concerned
go#ernent agencies including 4entral 7an% of the Philippines shall e/tend the following
assistance to Sall*Scale +iners!
31.1 $rgani-ation of sall*scale iners into cooperati#es1
31.2 "echnical and financial assistance and social ser#ices1
31.3 Processing and ar%eting assistance1
31.4 'eneration of ancillary li#elihood acti#ities1 and
31.8 Ade.uate attention to health and safety standards.
01A-2ER 6$$$
O21ER -RO6$S$ONS
Se!. 32 Sale of 'old. All gold produced by sall*scale iners in any inerali-ed area or
ineral land shall be sold to the 4entral 7an% of the Philippines, or its duly authori-ed
representati#es, at prices copetiti#e with those pre#ailing in the wood ar%et regardless of
#olue or weight.
"he (irector shall furnish the 4entral 7an% with a list of declared sall*scale ining areas for its
guidance in the establishent of buying stations to fully ser#ice the re.uireents of the sall*
scale iners thereat as conditions in the areas warrant, as pro#ided for under Section <7 of RA
7076.
>owe#er, the iniu weight per bar or dis% for deli#ery and sale to the 4entral 7an% shall not
be less than @00 gras. Sall*scale iners with less than @00 gras of gold ay sell the sae
to 4entral ban%)s dully authori-ed representati#e.
Se!. 33 8stablishent and $peration of 4usto +ills. "he establishent and operation of safe
and efficient custo ills to process inerals or ore*bearing aterials shall be sub0ect to the
following conditions!0<
33.1 8stablishent shall be liited to ineral processing -ones duly designated by the local
go#ernent unit concerned upon recoendation by the 7oard 1
33.2 "he establishent of ineral processing -ones shall not disrupt e/isting adapti#e
technological systes1 and,
33.3 4usto ills shall be constituted as withholding agents for the royalties, production share
or other ta/es due the 'o#ernent. Pro#ided, "hat as withholding agents such custo ills
shall be registered with the 7,R.
,n ining areas where the pri#ate sector is unable to establish custo ills, the 7oard shall
recoend to the go#ernent to construct such custo ills if #iable.
"he 7oard shall issue licenses for the operation of custo ills and other processing plants
sub0ect to pollution control and safety standards.
,n the issuance of processor)s perit 2license, all pro#isions of the (8NR Adinistrati#e $rder
No. 0?, Series of <ABA, not inconsistent with the pro#isions of this $rder are hereby adopted.
"he (epartent shall establish assay laboratories to cross*chec% the integrity of custo ills
and to render etallurgical and laboratory ser#ices to iners.
Se!. 34 Areas Not (eclared as People)s Sall*Scale +ining Area. =or areas not declared as
People)s Sall*Scale +ining area, the pertinent rules and regulations of Presidential decree No.
<BAA shall apply.
Se!. 38 +ineral Reser#ations. +ining operations in e/isting ineral reser#ations and others as
ay thereafter be established shall be underta%en by the 'o#ernent or by a 4ontractor.
01A-2ER $=
-ENA3 -RO6$S$ONS
Se!. 3( Penal Sanctions. ;iolations of the pro#isions of RA 7076 and this $rder shall be
penali-ed with iprisonent of not less than si/ 566 years and shall include the confiscation and
sei-ure of e.uipent, tools and instruents by the 7oard.
01A-2ER =
2RANS$2OR4 -RO6$S$ONS
Se!. 3& Actual $ccupation by Sall*Scale +iners. Sall *scale iners who ha#e been in actual
operation of ineral lands on or before August <, <AB7 as deterined by the 7oard shall not be
dispossess e0ected or reo#ed fro said areas! Pro#ided, "hat, they coply with the pro#isions
of this $rder.
01A-2ER =$
7$NA3 -RO6$S$ONS
Se!. 39 Repealing 4lause. All orders, rules and regulations, and other issuances, or parts
thereof, in conflict or inconsistent herewith are hereby repealed and2or odified accordingly.
Se!. 39. Separability 4lause. Any section or pro#ision of this $rder which ay be declared
unconstitutional shall not affect the other sections or pro#isions hereof.
Se!. 4' 8ffecti#ity. "his $rder shall ta%e effect fifteen 5<?6 days after its publication in the $fficial
'a-ette or in a national newspaper of general circulation.