Republic Act No.

7942
March 03, 1995
SUBJECT: An Act Instituting a New System of Mineral Resources
Eploration! "e#elopment! $tili%ation! an& 'onser#ation
Be it enacted by the Senate and House o !e"resentati#es o the
$hi%i""ines in Con&ress asse'b%ed:
'(A)*ER I
IN*R+"$'*+R, )R+-ISI+NS
Sec( 1 Tit%e( This )ct sha%% be *no+n as the $hi%i""ine Minin& )ct o 1995(
Sec( , -ec%aration o $o%icy( )%% 'inera% resources in "ub%ic and "ri#ate
%ands +ithin the territory and e.c%usi#e econo'ic /one o the !e"ub%ic o
the $hi%i""ines are o+ned by the State( 0t sha%% be the res"onsibi%ity o the
State to "ro'ote their rationa% e."%oration, de#e%o"'ent, uti%i/ation and
conser#ation throu&h the co'bined e1orts o &o#ern'ent and the "ri#ate
sector in order to enhance nationa% &ro+th in a +ay that e1ecti#e%y
sae&uards the en#iron'ent and "rotect the ri&hts o a1ected
co''unities(
Sec( 3 -e2nition o Ter's( )s used in and or "ur"oses o this )ct, the
o%%o+in& ter's, +hether in sin&u%ar or "%ura%, sha%% 'ean:
3a4 5)ncestra% %ands5 reers to a%% %ands, e.c%usi#e%y and actua%%y
"ossessed, occu"ied, or uti%i/ed by indi&enous cu%tura% co''unities by
the'se%#es or throu&h their ancestors in accordance +ith their custo's
and traditions since ti'e i''e'oria%, and as 'ay be de2ned and
de%ineated by %a+(
3b4 5B%oc*5 or 5'eridiona% b%oc*5 'eans an area bounded by one6ha% 317,4
'inute o %atitude and one6ha% 317,4 'inute o %on&itude, containin&
a""ro.i'ate%y ei&hty6one hectares 381 has(4(
3c4 5Bureau5 'eans the Mines and 9eosciences Bureau under the
-e"art'ent o En#iron'ent and :atura% !esources(
3d4 5Carryin& ca"acity5 reers to the ca"acity o natura% and hu'an
en#iron'ents to acco''odate and absorb chan&e +ithout e."eriencin&
conditions o instabi%ity and attendant de&radation(
3e4 5Conti&uous /one5 reers to +ater, sea botto' and substratu'
'easured t+enty6our nautica% 'i%es 3,; n('(4 sea+ard ro' base %ine o
the $hi%i""ine archi"e%a&o(
34 5Contract area5 'eans %and or body o +ater de%ineated or "ur"oses o
e."%oration, de#e%o"'ent, or uti%i/ation o the 'inera%s ound therein(
3&4 5Contractor5 'eans a <ua%i2ed "erson actin& a%one or in consortiu'
+ho is a "arty to a 'inera% a&ree'ent or to a 2nancia% or technica%
assistance a&ree'ent(
3h4 5Co6"roduction a&ree'ent 3C)45 'eans an a&ree'ent entered into
bet+een the 9o#ern'ent and one or 'ore contractors in accordance +ith
Section ,=3b4 hereo(
3i4 5-e"art'ent5 'eans the -e"art'ent o En#iron'ent and :atura%
!esources(
3>4 5-e#e%o"'ent5 'eans the +or* underta*en to e."%ore and "re"are an
ore body or a 'inera% de"osit or 'inin&, inc%udin& the construction o
necessary inrastructure and re%ated aci%ities(
3*4 5-irector5 'eans the -irector o the Mines and 9eosciences Bureau(
3%4 5Eco%o&ica% "ro2%e or eco6"ro2%e5 reers to &eo&ra"hic6based
instru'ents or "%anners and decision6'a*ers +hich "resents an
e#a%uation o the en#iron'enta% <ua%ity and carryin& ca"acity o an area(
3'4 5En#iron'enta% Co'"%iance Certi2cate 3ECC45 reers to the docu'ent
issued by the &o#ern'ent a&ency concerned certiyin& that the "ro>ect
under consideration +i%% not brin& about an unacce"tab%e en#iron'enta%
i'"act and that the "ro"onent has co'"%ied +ith the re<uire'ents o the
en#iron'enta% i'"act state'ent syste'(
3n4 5En#iron'enta% 0'"act State'ent 3E0S45 is the docu'ent +hich ai's
to identiy, "redict, inter"ret, and co''unicate inor'ation re&ardin&
chan&es in en#iron'enta% <ua%ity associated +ith a "ro"osed "ro>ect and
+hich e.a'ines the ran&e o a%ternati#es or the ob>ecti#es o the
"ro"osa% and their i'"act on the en#iron'ent(
3o4 5E.c%usi#e econo'ic /one5 'eans the +ater, sea botto' and
subsurace 'easured ro' the base%ine o the $hi%i""ine archi"e%a&o u" to
t+o hundred nautica% 'i%es 3,00 n('(4 o1shore(
3"4 5E.istin& 'inin&7<uarryin& ri&ht5 'eans a #a%id and subsistin& 'inin&
c%ai' or "er'it or <uarry "er'it or any 'inin& %ease contract or
a&ree'ent co#erin& a 'inera%i/ed area &ranted7issued under "ertinent
'inin& %a+s(
3<4 5E."%oration5 'eans the searchin& or "ros"ectin& or 'inera%
resources by &eo%o&ica%, &eoche'ica% or &eo"hysica% sur#eys, re'ote
sensin&, test "ittin&, trenchin&, dri%%in&, shat sin*in&, tunne%in& or any
other 'eans or the "ur"ose o deter'inin& the e.istence, e.tent,
<uantity and <ua%ity thereo and the easibi%ity o 'inin& the' or "ro2t(
3r4 5?inancia% or technica% assistance a&ree'ent5 'eans a contract
in#o%#in& 2nancia% or technica% assistance or %ar&e6sca%e e."%oration,
de#e%o"'ent, and uti%i/ation o 'inera% resources(
3s4 5?orce 'a>eure5 'eans acts or circu'stances beyond the reasonab%e
contro% o contractor inc%udin&, but not %i'ited to, +ar, rebe%%ion,
insurrection, riots, ci#i% disturbance, b%oc*ade, sabota&e, e'bar&o, stri*e,
%oc*out, any dis"ute +ith surace o+ners and other %abor dis"utes,
e"ide'ic, earth<ua*e, stor', @ood or other ad#erse +eather conditions,
e."%osion, 2re, ad#erse action by &o#ern'ent or by any instru'enta%ity or
subdi#ision thereo, act o 9od or any "ub%ic ene'y and any cause that
herein describe o#er +hich the a1ected "arty has no reasonab%e contro%(
3t4 5?orei&n6o+ned cor"oration5 'eans any cor"oration, "artnershi",
association, or coo"erati#e du%y re&istered in accordance +ith %a+ in
+hich %ess than 2ty "er centu' 350A4 o the ca"ita% is o+ned by ?i%i"ino
citi/ens(
3u4 59o#ern'ent5 'eans the &o#ern'ent o the !e"ub%ic o the
$hi%i""ines(
3#4 59ross out"ut5 'eans the actua% 'ar*et #a%ue o 'inera%s or 'inera%
"roducts ro' its 'inin& area as de2ned in the :ationa% 0nterna% !e#enue
Code(
3+4 50ndi&enous cu%tura% co''unity5 'eans a &rou" or tribe o indi&enous
?i%i"inos +ho ha#e continuous%y %i#ed as co''unities on co''una%%y6
bounded and de2ned %and since ti'e i''e'oria% and ha#e succeeded in
"reser#in&, 'aintainin&, and sharin& co''on bonds o %an&ua&es,
custo's, traditions, and other distincti#e cu%tura% traits, and as 'ay be
de2ned and de%ineated by %a+(
3.4 5Joint Benture )&ree'ent 3JB)45 'eans an a&ree'ent entered into
bet+een the 9o#ern'ent and one or 'ore contractors in accordance +ith
Section ,=3c4 hereo(
3y4 5Minera% "rocessin&5 'eans the 'i%%in&, beneaction or u"&radin& o
ores or 'inera%s and roc*s or by si'i%ar 'eans to con#ert the sa'e into
'ar*etab%e "roducts(
3/4 5Mine +astes and tai%in&s5 sha%% 'ean soi% and roc* 'ateria%s ro'
surace or under&round 'inin& and 'i%%in& o"erations +ith no econo'ic
#a%ue to the &enerator o the sa'e(
3aa4 5Minera%s5 reers to a%% natura%%y occurrin& inor&anic substance in
so%id, &as, %i<uid, or any inter'ediate state e.c%udin& ener&y 'ateria%s
such as coa%, "etro%eu', natura% &as, radioacti#e 'ateria%s, and
&eother'a% ener&y(
3ab4 5Minera% a&ree'ent5 'eans a contract bet+een the &o#ern'ent and
a contractor, in#o%#in& 'inera% "roduction6sharin& a&ree'ent, co6
"roduction a&ree'ent, or >oint6#enture a&ree'ent(
3ac4 5Minera% %and5 'eans any area +here 'inera% resources are ound(
3ad4 5Minera% resource5 'eans any concentration o 'inera%s7roc*s +ith
"otentia% econo'ic #a%ue(
3ae4 5Minin& area5 'eans a "ortion o the contract area identi2ed by the
contractor or "ur"oses o de#e%o"'ent, 'inin&, uti%i/ation, and sites or
su""ort aci%ities or in the i''ediate #icinity o the 'inin& o"erations(
3a4 5Minin& o"eration5 'eans 'inin& acti#ities in#o%#in& e."%oration,
easibi%ity, de#e%o"'ent, uti%i/ation, and "rocessin&(
3a&4 5:on&o#ern'enta% Cr&ani/ation 3:9C45 inc%udes nonstoc*, non"ro2t
or&ani/ations in#o%#ed in acti#ities dea%in& +ith resource and
en#iron'enta% conser#ation, 'ana&e'ent and "rotection(
3ah4 5:et assets5 reers to the "ro"erty, "%ant and e<ui"'ent as re@ected
in the audited 2nancia% state'ent o the contractor net o de"reciation, as
co'"uted or ta. "ur"oses, e.c%udin& a""raisa% increase and construction
in "ro&ress(
3ai4 5C1shore5 'eans the +ater, sea botto', and subsurace ro' the
shore or coast%ine rec*oned ro' the 'ean %o+ tide %e#e% u" to the t+o
hundred nautica% 'i%es 3,00 n('(4 e.c%usi#e econo'ic /one inc%udin& the
archi"e%a&ic sea and conti&uous /one(
3a>4 5Cnshore5 'eans the %and+ard side ro' the 'ean tide e%e#ation,
inc%udin& sub'er&ed %ands in %a*es, ri#ers and cree*s(
3a*4 5Cre5 'eans a natura%%y occurrin& substance or 'ateria% ro' +hich a
'inera% or e%e'ent can be 'ined and7or "rocessed or "ro2t(
3a%4 5$er'ittee5 'eans the ho%der o an e."%oration "er'it(
3a'4 5$o%%ution contro% and inrastructure de#ices5 reers to inrastructure,
'achinery, e<ui"'ent and7or i'"ro#e'ents used or i'"oundin&,
treatin& or neutra%i/in&, "reci"itatin&, 2%terin&, con#eyin& and c%eansin&
'ine industria% +aste and tai%in&s as +e%% as e%i'inatin& or reducin&
ha/ardous e1ects o so%id "artic%es, che'ica%s, %i<uids or other har'u% by
"roducts and &ases e'itted ro' any aci%ity uti%i/ed in 'inin& o"erations
or their dis"osa%(
3an4 5$resident5 'eans the $resident o the !e"ub%ic o the $hi%i""ines(
3ao4 5$ri#ate %and5 reers to any %and be%on&in& to any "ri#ate "erson
+hich inc%udes a%ienab%e and dis"osab%e %and bein& c%ai'ed by a ho%der,
c%ai'ant, or occu"ant +ho has a%ready ac<uired a #ested ri&ht thereto
under the %a+, a%thou&h the corres"ondin& certi2cate or e#idence o tit%e
or "atent has not been actua%%y issued(
3a"4 5$ub%ic %and5 reers to %ands o the "ub%ic do'ain +hich ha#e been
c%assi2ed as a&ricu%tura% %ands and sub>ect to 'ana&e'ent and dis"osition
or concession under e.istin& %a+s(
3a<4 5Dua%i2ed "erson5 'eans any citi/en o the $hi%i""ines +ith ca"acity
to contract, or a cor"oration, "artnershi", association, or coo"erati#e
or&ani/ed or authori/ed or the "ur"ose o en&a&in& in 'inin&, +ith
technica% and 2nancia% ca"abi%ity to underta*e 'inera% resources
de#e%o"'ent and du%y re&istered in accordance +ith %a+ at %east si.ty "er
cent 3=0A4 o the ca"ita% o +hich is o+ned by citi/ens o the $hi%i""ines:
$ro#ided, That a %e&a%%y or&ani/ed orei&n6o+ned cor"oration sha%% be
dee'ed a <ua%i2ed "erson or "ur"oses o &rantin& an e."%oration "er'it,
2nancia% or technica% assistance a&ree'ent or 'inera% "rocessin& "er'it(
3ar4 5Duarryin&5 'eans the "rocess o e.tractin&, re'o#in& and dis"osin&
<uarry resources ound on or underneath the surace o "ri#ate or "ub%ic
%and(
3as4 5Duarry "er'it5 'eans a docu'ent &ranted to a <ua%i2ed "erson or
the e.traction and uti%i/ation o <uarry resources on "ub%ic or "ri#ate
%ands(
3at4 5Duarry resources5 reers to any co''on roc* or other 'inera%
substances as the -irector o Mines and 9eosciences Bureau 'ay dec%are
to be <uarry resources such as, but not %i'ited to, andesite, basa%t,
con&%o'erate, cora% sand, diato'aceous earth, diorite, decorati#e stones,
&abbro, &ranite, %i'estone, 'arb%e, 'ar%, red burnin& c%ays or "otteries
and bric*s, rhyo%ite, roc* "hos"hate, sandstone, ser"entine, sha%e, tu1,
#o%canic cinders, and #o%canic &%ass: $ro#ided, That such <uarry resources
do not contain 'eta%s or 'eta%%ic constituents and7or other #a%uab%e
'inera%s in econo'ica%%y +or*ab%e <uantities: $ro#ided, urther, That non6
'eta%%ic 'inera%s such as *ao%in, e%ds"ar, bu%%<uart/, <uart/ or si%ica, sand
and "ebb%es, bentonite, ta%c, asbestos, barite, &y"su', bau.ite,
'a&nesite, do%o'ite, 'ica, "recious and se'i6"recious stones, and other
non6'eta%%ic 'inera%s that 'ay %ater be disco#ered and +hich the -irector
dec%ares the sa'e to be o econo'ica%%y +or*ab%e <uantities, sha%% not be
c%assi2ed under the cate&ory o <uarry resources(
3au4 5!e&ion director5 'eans the re&iona% director o any 'ines re&iona%
oEce under the -e"art'ent o En#iron'ent and :atura% !esources(
3a#4 5!e&iona% oEce5 'eans any o the 'ines re&iona% oEces o the
-e"art'ent o En#iron'ent and :atura% !esources(
3a+4 5Secretary5 'eans the Secretary o the -e"art'ent o En#iron'ent
and :atura% !esources(
3a.4 5S"ecia% a%%o+ance5 reers to "ay'ent to the c%ai'6o+ners or surace
ri&ht6o+ners "articu%ar%y durin& the transition "eriod ro' $residentia%
-ecree :o( ;=3 and E.ecuti#e Crder :o( ,F9, series o 198F(
3ay4 5State5 'eans the !e"ub%ic o the $hi%i""ines(
3a/4 5Uti%i/ation5 'eans the e.traction or dis"osition o 'inera%s(
'(A)*ER II
.+-ERNMEN* MANA.EMEN*
Sec( ; C+nershi" o Minera% !esources( 6 Minera% resources are o+ned by
the State and the e."%oration, de#e%o"'ent, uti%i/ation, and "rocessin&
thereo sha%% be under its u%% contro% and su"er#ision( The State 'ay
direct%y underta*e such acti#ities or it 'ay enter into 'inera% a&ree'ents
+ith contractors(
The State sha%% reco&ni/e and "rotect the ri&hts o the indi&enous cu%tura%
co''unities to their ancestra% %ands as "ro#ided or by the Constitution(
Sec( 5 Minera% !eser#ations( Ghen the nationa% interest so re<uires, such
as +hen there is a need to "reser#e strate&ic ra+ 'ateria%s or industries
critica% to nationa% de#e%o"'ent, or certain 'inera%s or scienti2c, cu%tura%
or eco%o&ica% #a%ue, the $resident 'ay estab%ish 'inera% reser#ations u"on
the reco''endation o the -irector throu&h the Secretary( Minin&
o"erations in e.istin& 'inera% reser#ations and such other reser#ations as
'ay thereater be estab%ished, sha%% be underta*en by the -e"art'ent or
throu&h a contractor: $ro#ided, That a s'a%% sca%e 'inin& a&ree'ent or a
'a.i'u' a&&re&ate area o t+enty62#e "ercent 3,5A4 o such 'inera%
reser#ation, sub>ect to #a%id e.istin& 'inin& <uarryin& ri&hts as "ro#ided
under Section 11, Cha"ter HH hereo( )%% sub'er&ed %ands +ithin the
conti&uous /one and in the e.c%usi#e econo'ic /one o the $hi%i""ines are
hereby dec%ared to be 'inera% reser#ations(
) ten "er centu' 310A4 share o a%% roya%ties and re#enues to be deri#ed
by the &o#ern'ent ro' the de#e%o"'ent and uti%i/ation o the 'inera%
resources +ithin 'inera% reser#ations as "ro#ided under this )ct sha%%
accrue to the Mines and 9eosciences Bureau to be a%%otted or s"ecia%
"ro>ects and other ad'inistrati#e e."enses re%ated to the e."%oration and
de#e%o"'ent o other 'inera% reser#ations 'entioned in Section = hereo(
Sec( = Cther !eser#ations( Minin& o"erations in reser#ed %ands other than
'inera% reser#ations 'ay be underta*en by the -e"art'ent, sub>ect to
%i'itations as herein "ro#ided( 0n the e#ent that the -e"art'ent cannot
underta*e such acti#ities, they 'ay be underta*en by a <ua%i2ed "erson
in accordance +ith the ru%es and re&u%ations "ro'u%&ated by the
Secretary( The ri&ht to de#e%o" and uti%i/e the 'inera%s ound therein sha%%
be a+arded by the $resident under such ter's and conditions as
reco''ended by the -irector and a""ro#ed by the Secretary( $ro#ided,
That the "arty +ho undertoo* the e."%oration o said reser#ation sha%% be
&i#en "riority( The 'inera% %and so a+arded sha%% be auto'atica%%y
e.c%uded ro' the reser#ation durin& the ter' o the a&ree'ent:
$ro#ided, urther, That the ri&ht o the %essee o a #a%id 'inin& contract
e.istin& +ithin the reser#ation at the ti'e o its estab%ish'ent sha%% not be
"re>udiced or i'"aired(
Sec( F $eriodic !e#ie+ o E.istin& Minera% !eser#ations( The Secretary
sha%% "eriodica%%y re#ie+ e.istin& 'inera% reser#ations or the "ur"ose o
deter'inin& +hether their continued e.istence is consistent +ith the
nationa% interest, and u"on the reco''endation, the $resident 'ay, by
"roc%a'ation, a%ter or 'odiy the boundaries thereo or re#ert the sa'e to
the "ub%ic do'ain +ithout "re>udice to "rior e.istin& ri&hts(
Sec( 8 )uthority o the -e"art'ent( The -e"art'ent sha%% be the "ri'ary
&o#ern'ent a&ency res"onsib%e or the conser#ation, 'ana&e'ent,
de#e%o"'ent, and "ro"er use o the StateIs 'inera% resources inc%udin&
those in reser#ations, +atershed areas, and %ands o the "ub%ic do'ain(
The Secretary sha%% ha#e the authority to enter into 'inera% a&ree'ents
on beha% o the 9o#ern'ent u"on the reco''endation o the -irector,
"ro'u%&ate such ru%es and re&u%ations as 'ay be necessary to i'"%e'ent
the intent and "ro#isions o this )ct(
Sec( 9 )uthority o the Bureau( The Bureau sha%% ha#e direct char&e in the
ad'inistration and dis"osition o 'inera% %ands and 'inera% resources and
sha%% underta*e &eo%o&ica%, 'inin&, 'eta%%ur&ica%, che'ica%, and other
researches as +e%% as &eo%o&ica% and 'inera% e."%oration sur#eys( The
-irector sha%% reco''end to the Secretary the &rantin& o 'inera%
a&ree'ents to du%y <ua%i2ed "ersons and sha%% 'onitor the co'"%iance by
the contractor o the ter's and conditions o the 'inera% a&ree'ents( The
Bureau 'ay con2scate surety, "eror'ance and &uaranty bonds "osted
throu&h an order to be "ro'u%&ated by the -irector( The -irector 'ay
de"uti/e, +hen necessary, any 'e'ber or unit o the $hi%i""ine :ationa%
$o%ice, baran&ay, du%y re&istered non&o#ern'enta% or&ani/ation 3:9C4 or
any <ua%i2ed "erson to "o%ice a%% 'inin& acti#ities(
Sec( 10 !e&iona% CEces( There sha%% be as 'any re&iona% oEces in the
country as 'ay be estab%ished by the Secretary, u"on the
reco''endation o the -irector(
Sec( 11 $rocessin& o )""%ications( The syste' o "rocessin& a""%ications
or 'inin& ri&hts sha%% be "rescribed in the ru%es and re&u%ations o this
)ct(
Sec( 1, Sur#ey, Chartin& and -e%ineation o Minin& )reas( ) s*etch "%an or
'a" o the contract or 'inin& area "re"ared by a de"uti/ed &eodetic
en&ineer suitab%e or "ub%ication "ur"oses sha%% be re<uired durin& the
2%in& o a 'inera% a&ree'ent or 2nancia% or technica% assistance
a&ree'ent a""%ication( Thereater, the contract or 'inin& area sha%% be
sur#eyed and 'onu'ented by a de"uti/ed &eodetic en&ineer or bureau
&eodetic en&ineer and the sur#ey "%an sha%% be a""ro#ed by the -irector
beore the a""ro#a% o the 'inin& easibi%ity(
Sec( 13 Meridiona% B%oc*s( ?or "ur"oses o the de%ineation o the contract
o 'inin& areas under this )ct, the $hi%i""ine territory and its e.c%usi#e
econo'ic /one sha%% be di#ided into 'eridiona% b%oc*s o one6ha% 317,4
'inute o %atitude and one6ha% 317,4 'inute o %on&itude(
Sec( 1; !ecordin& Syste'( There sha%% be estab%ished a nationa% and
re&iona% 2%in& and recordin& syste'( ) 'inera% resource database syste'
sha%% be set u" in the Bureau +hich sha%% inc%ude, a'on& others, a 'inera%
ri&hts 'ana&e'ent syste'( The Bureau sha%% "ub%ish at %east annua%%y, a
'inera% ri&hts 'ana&e'ent syste'( The Bureau sha%% "ub%ish at %east
annua%%y, a 'inera% &a/ette o nation+ide circu%ation containin& a'on&
others, a current %ist o 'inera% ri&hts, their %ocation in the 'a", 'inin&
ru%es and re&u%ations, other oEcia% acts a1ectin& 'inin&, and other
inor'ation re%e#ant to 'inera% resources de#e%o"'ent( ) syste' and
"ub%ication und sha%% be inc%uded in the re&u%ar bud&et o the Bureau(
'(A)*ER III
S'+)E +/ A))0I'A*I+N
Sec( 15 Sco"e o )""%ication( This )ct sha%% &o#ern the e."%oration,
de#e%o"'ent, uti%i/ation and "rocessin& o a%% 'inera% resources(
Sec( 1= C"enin& o )ncestra% Jands or Minin& C"erations( :o ancestra%
%and sha%% be o"ened or 'inin& o"erations +ithout the "rior consent o
the indi&enous cu%tura% co''unity concerned(
Sec( 1F !oya%ty $ay'ents or 0ndi&enous Cu%tura% Co''unities( 0n the
e#ent o an a&ree'ent +ith an indi&enous cu%tura% co''unity "ursuant to
the "recedin& section, the roya%ty "ay'ent, u"on uti%i/ation o the
'inera%s sha%% be a&reed u"on by the "arties( The said roya%ty sha%% or'
"art o a trust und or the socioecono'ic +e%%6bein& o the indi&enous
cu%tura% co''unity(
Sec( 18 )reas C"en to Minin& C"erations( Sub>ect to any e.istin& ri&hts or
reser#ations and "rior a&ree'ents o a%% "arties, a%% 'inera% resources in
"ub%ic or "ri#ate %ands, inc%udin& ti'ber or orest%ands as de2ned in
e.istin& %a+s sha%% be o"en to 'inera% a&ree'ents or 2nancia% or technica%
assistance a&ree'ent a""%ications( )ny con@ict that 'ay arise under this
"ro#ision sha%% be heard and reso%#ed by the "ane% o arbitrators(
Sec( 19 )reas C%osed to Minin& )""%ications( Minera% a&ree'ent or
2nancia% or technica% assistance a&ree'ent a""%ications sha%% not be
a%%o+ed:
3a4 0n 'i%itary and other &o#ern'ent reser#ations, e.ce"t u"on "rior
+ritten c%earance by the &o#ern'ent a&ency concernedK
3b4 :ear or under "ub%ic or "ri#ate bui%din&s, ce'eteries, archeo%o&ica%
and historic sites, brid&es, hi&h+ays, +ater+ays, rai%roads, reser#oirs,
da's or other inrastructure "ro>ects, "ub%ic or "ri#ate +or*s inc%udin&
"%antations or #a%uab%e cro"s, e.ce"t u"on +ritten consent o the
&o#ern'ent a&ency or "ri#ate entity concernedK
3c4 0n areas co#ered by #a%id and e.istin& 'inin& ri&htsK
3d4 0n areas e."ressed%y "rohibited by %a+K
3e4 0n areas co#ered by s'a%%6sca%e 'iners as de2ned by %a+ un%ess +ith
"rior consent o the s'a%%6sca%e 'iners, in +hich case a roya%ty "ay'ent
u"on the uti%i/ation o 'inera%s sha%% be a&reed u"on by the "arties, said
roya%ty or'in& a trust und or the socioecono'ic de#e%o"'ent o the
co''unity concernedK and
34 C%d &ro+th or #ir&in orests, "roc%ai'ed +atershed orest reser#es,
+i%derness areas, 'an&ro#e orests, 'ossy orests, nationa% "ar*s,
"ro#incia%7'unici"a% orests, "ar*s, &reenbe%ts, &a'e reu&e and bird
sanctuaries as de2ned by %a+ in areas e."ress%y "rohibited under the
:ationa% 0nte&rated $rotected areas Syste' 3:0$)S4 under !e"ub%ic )ct
:o( F58=, -e"art'ent )d'inistrati#e Crder :o( ,5, series o 199, and
other %a+s(
'(A)*ER I-
E1)0+RA*I+N )ERMI*
Sec( ,0 E."%oration $er'it( )n e."%oration "er'it &rants the ri&ht to
conduct e."%oration or a%% 'inera%s in s"eci2ed areas( The Bureau sha%%
ha#e the authority to &rant an e."%oration "er'it to a <ua%i2ed "erson(
Sec( ,1 Ter's and Conditions o the E."%oration $er'it( )n e."%oration
"er'it sha%% be or a "eriod o t+o 3,4 years, sub>ect to annua% re#ie+ and
re%in<uish'ent or rene+a% u"on the reco''endation o the -irector(
Sec( ,, Ma.i'u' )reas or E."%oration $er'it( The 'a.i'u' area that a
<ua%i2ed "erson 'ay ho%d at any one ti'e sha%% be:
3a4 Cnshore, in any one "ro#ince 6
314 ?or indi#idua%s, t+enty 3,04 b%oc*sK and
3,4 3,4 ?or "artnershi"s, cor"orations, coo"erati#es, or associations, t+o
hundred 3,004 b%oc*s(
3b4 Cnshore, in the entire $hi%i""ines 6
314 ?or indi#idua%s, orty 3;04 b%oc*sK and
3,4 ?or "artnershi"s, cor"orations, coo"erati#es, or associations, our
hundred 3;004 b%oc*s(
3c4 Cnshore, beyond 2#e hundred 'eters 3500'4 ro' the 'ean %o+ tide
%e#e% 6
314 ?or indi#idua%s, one hundred 31004 b%oc*sK and
3,4 ?or "artnershi"s, cor"orations, coo"erati#es, or associations, one
thousand 31,0004 b%oc*s(
Sec( ,3 !i&hts and Cb%i&ations o the $er'ittee( )n e."%oration "er'it
sha%% &rant to the "er'ittee, his heirs or successors6in6interest, the ri&ht to
enter, occu"y and e."%ore the area: $ro#ided, That i "ri#ate or other
"arties are a1ected, the "er'ittee sha%% 2rst discuss +ith the said "arties
the e.tent, necessity, and 'anner o his entry, occu"ation and e."%oration
and in case o disa&ree'ent, a "ane% o arbitrators sha%% reso%#e the
con@ict or disa&ree'ent(
The "er'ittee sha%% underta*e an e."%oration +or* on the area s"eci2ed
by its "er'it based on an a""ro#ed +or* "ro&ra'(
)ny e."enditure in e.cess o the year%y bud&et o the a""ro#ed +or*
"ro&ra' 'ay be carried or+ard and credited to the succeedin& years
co#erin& the duration o the "er'it( The Secretary, throu&h the -irector,
sha%% "ro'u%&ate ru%es and re&u%ations &o#ernin& the ter's and conditions
o the "er'it(
The "er'ittee 'ay a""%y or a 'inera% "roduction sharin& a&ree'ent,
>oint #enture a&ree'ent, co6"roduction a&ree'ent or 2nancia% or
technica% assistance a&ree'ent o#er the "er'it area, +hich a""%ication
sha%% be &ranted i the "er'ittee 'eets the necessary <ua%i2cations and
the ter's and conditions o any such a&ree'ent: $ro#ided, That the
e."%oration "eriod co#ered by the e."%oration "er'it sha%% be inc%uded as
"art o the e."%oration "eriod o the 'inera% a&ree'ent or 2nancia% or
technica% assistance a&ree'ent(
Sec( ,; -ec%aration o Minin& $ro>ect ?easibi%ity( ) ho%der o an e."%oration
"er'it +ho deter'ines the co''ercia% #iabi%ity o a "ro>ect co#erin& a
'inin& area 'ay, +ithin the ter' o the "er'it, 2%e +ith the Bureau a
dec%aration o 'inin& "ro>ect easibi%ity acco'"anied by a +or* "ro&ra'
or de#e%o"'ent( The a""ro#a% o the 'inin& "ro>ect easibi%ity and
co'"%iance +ith other re<uire'ents "ro#ided in this )ct sha%% entit%e the
ho%der to an e.c%usi#e ri&ht to a 'inera% "roduction sharin& a&ree'ent or
other 'inera% a&ree'ents or 2nancia% or technica% assistance a&ree'ent(
Sec( ,5 Transer or )ssi&n'ent( )n e."%oration "er'it 'ay be transerred
or assi&ned to a <ua%i2ed "erson sub>ect to the a""ro#a% o the Secretary
u"on the reco''endation o the -irector(
'(A)*ER -
MINERA0 A.REEMEN*S
Sec( ,= Modes o Minera% )&ree'ent( ?or "ur"oses o 'inin& o"erations, a
'inera% a&ree'ent 'ay ta*e the o%%o+in& or's as herein de2ned:
3a4 Minera% "roduction sharin& a&ree'ent 6 is an a&ree'ent +here the
9o#ern'ent &rants to the contractor the e.c%usi#e ri&ht to conduct 'inin&
o"erations +ithin a contract area and shares in the &ross out"ut( The
contractor sha%% "ro#ide the 2nancin&, techno%o&y, 'ana&e'ent and
"ersonne% necessary or the i'"%e'entation o this a&ree'ent(
3b4 Co6"roduction a&ree'ent 6 is an a&ree'ent bet+een the 9o#ern'ent
and the contractor +herein the 9o#ern'ent sha%% "ro#ide in"uts to the
'inin& o"erations other than the 'inera% resource(
3c4 Joint #enture a&ree'ent 6 is an a&ree'ent +here a >oint6#enture
co'"any is or&ani/ed by the 9o#ern'ent and the contractor +ith both
"arties ha#in& e<uity shares( )side ro' earnin&s in e<uity, the
9o#ern'ent sha%% be entit%ed to a share in the &ross out"ut(
) 'inera% a&ree'ent sha%% &rant to the contractor the e.c%usi#e ri&ht to
conduct 'inin& o"erations and to e.tract a%% 'inera% resources ound in
the contract area( 0n addition, the contractor 'ay be a%%o+ed to con#ert
his a&ree'ent into any o the 'odes o 'inera% a&ree'ents or 2nancia% or
technica% assistance a&ree'ent co#erin& the re'ainin& "eriod o the
ori&ina% a&ree'ent sub>ect to the a""ro#a% o the Secretary(
Sec( ,F E%i&ibi%ity( ) <ua%i2ed "erson 'ay enter into any o the three 334
'odes o 'inera% a&ree'ent +ith the &o#ern'ent or the e."%oration,
de#e%o"'ent and uti%i/ation o 'inera% resources: $ro#ided, That in case
the a""%icant has been in the 'inin& industry or any %en&th o ti'e, he
shou%d "ossess a satisactory en#iron'enta% trac* record as deter'ined
by the Mines and 9eosciences Bureau and in consu%tation +ith the
En#iron'ent Mana&e'ent Bureau o the -e"art'ent
Sec( ,8 Ma.i'u' )reas or Minera% )&ree'ent( The 'a.i'u' area that a
<ua%i2ed "erson 'ay ho%d at any ti'e under a 'inera% a&ree'ent sha%%
be:
3a4 Cnshore, in any one "ro#ince 6
314 ?or indi#idua%s, ten 3104 b%oc*sK and
3,4 ?or "artnershi"s, coo"erati#es, associations, or cor"orations, one
hundred 31004 b%oc*s(
3b4 Cnshore, in the entire $hi%i""ines 6
314 ?or indi#idua%s, t+enty 3,04 b%oc*sK and
3,4 ?or "artnershi"s, coo"erati#es, associations, or cor"orations, t+o
hundred 3,004 b%oc*s(
3c4 C1shore, in the entire $hi%i""ines 6
314 ?or indi#idua%s, 2ty 3504 b%oc*sK
3,4 ?or "artnershi"s, coo"erati#es, associations, or cor"orations, 2#e
hundred 35004 b%oc*sK and
334 ?or the e.c%usi#e econo'ic /one, a %ar&er area to be deter'ined by
the Secretary(
The 'a.i'u' areas 'entioned abo#e that a contractor 'ay ho%d under a
'inera% a&ree'ent sha%% not inc%ude 'inin&7<uarry areas under o"eratin&
a&ree'ents bet+een the contractor and a
c%ai'o+ner7%essee7"er'ittee7%icensee entered into under $residentia%
-ecree :o( ;=3(
Sec( ,9 ?i%in& and )""ro#a% o Minera% )&ree'ents( )%% "ro"osed 'inera%
a&ree'ents sha%% be 2%ed in the re&ion +here the areas o interest are
%ocated, e.ce"t in 'inera% reser#ations +hich sha%% be 2%ed +ith the
Bureau(
The 2%in& o a "ro"osa% or a 'inera% a&ree'ent sha%% &i#e the "ro"onent
the "rior ri&ht to areas co#ered by the sa'e( The "ro"osed 'inera%
a&ree'ent +i%% be a""ro#ed by the Secretary and co"ies thereo sha%% be
sub'itted to the $resident( Thereater, the $resident sha%% "ro#ide a %ist to
Con&ress o e#ery a""ro#ed 'inera% a&ree'ent +ithin thirty 3304 days
ro' its a""ro#a% by the Secretary(
Sec( 30 )ssi&n'ent7Transer( )ny assi&n'ent or transer o ri&hts and
ob%i&ations under any 'inera% a&ree'ent e.ce"t a 2nancia% or technica%
assistance a&ree'ent sha%% be sub>ect to the "rior a""ro#a% o the
Secretary( Such assi&n'ent or transer sha%% be dee'ed auto'atica%%y
a""ro#ed i not acted u"on by the Secretary +ithin thirty 3304 +or*in&
days ro' oEcia% recei"t thereo, un%ess "atent%y unconstitutiona% or
i%%e&a%(
Sec( 31 Githdra+a% ro' Minera% )&ree'ents( The contractor 'ay, by
&i#in& due notice at any ti'e durin& the ter's o the a&ree'ent, a""%y or
the cance%%ation o the 'inera% a&ree'ent due to causes +hich, in the
o"inion o the contractor, 'a*e continued 'inin& o"erations no %on&er
easib%e or #iab%e( The Secretary sha%% consider the notice and issue its
decision +ithin a "eriod o thirty 3304 days: $ro#ided, That the contractor
has 'et a%% its 2nancia%, 2sca% and %e&a% ob%i&ations(
Sec( 3, Ter's( Minera% a&ree'ents sha%% ha#e a ter' not e.ceedin&
t+enty62#e 3,54 years to start ro' the date o e.ecution thereo, and
rene+ab%e or another ter' not e.ceedin& t+enty62#e 3,54 years under
the sa'e ter's and conditions thereo, +ithout "re>udice to char&es
'utua%%y a&reed u"on by the "arties( )ter the rene+a% "eriod, the
o"eration o the 'ine 'ay be underta*en by the 9o#ern'ent or throu&h a
contractor( The contract or the o"eration o a 'ine sha%% be a+arded to
the hi&hest bidder in a "ub%ic biddin& ater due "ub%ication o the notice
thereo: $ro#ided, That the contractor sha%% ha#e the ri&ht to e<ua% the
hi&hest bid u"on rei'burse'ent o a%% reasonab%e e."enses o the hi&hest
bidder(
'(A)*ER -I
/INAN'IA0 +R *E'(NI'A0 ASSIS*AN'E A.REEMEN*
Sec( 33 E%i&ibi%ity( )ny <ua%i2ed "erson +ith technica% and 2nancia%
ca"abi%ity to underta*e %ar&e6sca%e e."%oration, de#e%o"'ent, and
uti%i/ation o 'inera% resources in the $hi%i""ines 'ay enter into a 2nancia%
or technica% assistance a&ree'ent direct%y +ith the 9o#ern'ent throu&h
the -e"art'ent(
Sec( 3; Ma.i'u' Contract )rea( The 'a.i'u' contract area that 'ay be
&ranted "er <ua%i2ed "erson, sub>ect to re%in<uish'ent sha%% be:
3a4 1,000 'eridiona% b%oc*s onshoreK
3b4 ;,000 'eridiona% b%oc*s o1shoreK or
3c4 Co'binations o 3a4 and 3b4 "ro#ided that it sha%% not e.ceed the
'a.i'u' %i'its or onshore and o1shore areas(
Sec( 35 Ter's and Conditions( The o%%o+in& ter's, conditions, and
+arranties sha%% be incor"orated in the 2nancia% or technica% assistance
a&ree'ent, to +it:
3a4 ) 2r' co''it'ent in the or' o a s+orn state'ent, o an a'ount
corres"ondin& to the e."enditure ob%i&ation that +i%% be in#ested in the
contract area: $ro#ided, That such a'ount sha%% be sub>ect to chan&es as
'ay be "ro#ided or in the ru%es and re&u%ations o this actK
3b4 ) 2nancia% &uarantee bond sha%% be "osted in a#or o the 9o#ern'ent
in an a'ount e<ui#a%ent to the e."enditure ob%i&ation o the a""%icant or
any year(
3c4 Sub'ission o "roo o technica% co'"etence, such as, but not %i'ited
to, its trac* record in 'inera% resource e."%oration, de#e%o"'ent, and
uti%i/ationK detai%s o techno%o&y to be e'"%oyed in the "ro"osed
o"erationK and detai%s o technica% "ersonne% to underta*e the o"erationsK
3d4 !e"resentations and +arranties that the a""%icant has a%% the
<ua%i2cations and none o the dis<ua%i2cations or enterin& into the
a&ree'entK
3e4 !e"resentations and +arranties that the contractor has or has access
to a%% the 2nancin&, 'ana&eria% and technica% e."ertise and, i
circu'stances de'and, the techno%o&y re<uired to "ro'"t%y and
e1ecti#e%y carry out the ob>ecti#es o the a&ree'ent +ith the
understandin& to ti'e%y de"%oy these resources under its su"er#ision
"ursuant to the "eriodic +or* "ro&ra's and re%ated bud&ets, +hen
"ro"er, "ro#idin& an e."%oration "eriod u" to t+o 3,4 years, e.tendib%e or
another t+o 3,4 years but sub>ect to annua% re#ie+ by the Secretary in
accordance +ith the i'"%e'entin& ru%es and re&u%ations o this )ct, and
urther, sub>ect to the re%in<uish'ent ob%i&ationsK
34 !e"resentations and +arranties that, e.ce"t or "ay'ents or
dis"ositions or its e<uity, orei&n in#est'ents in %oca% enter"rises +hich
are <ua%i2ed or re"artriation, and %oca% su""%ierIs credits and such other
&enera%%y acce"ted and "er'issib%e 2nancia% sche'es or raisin& unds or
#a%id business "ur"oses, the contractor sha%% not raise any or' o
2nancin& ro' do'estic sources o unds, +hether in $hi%i""ine or orei&n
currency, or conductin& its 'inin& o"erations or and in the contract areaK
3&4 The 'inin& o"erations sha%% be conducted in accordance +ith the
"ro#isions o this )ct and its i'"%e'entin& ru%es and re&u%ationsK
3h4 Gor* "ro&ra's and 'ini'u' e."enditures co''it'entsK
3i4 $reerentia% use o %oca% &oods and ser#ices to the 'a.i'u' e.tent
"racticab%eK
3>4 ) sti"u%ation that the contractors are ob%i&ated to &i#e "reerence to
?i%i"inos in a%% ty"es o 'inin& e'"%oy'ent or +hich they are <ua%i2ed
and that techno%o&y sha%% be transerred to the sa'eK
3*4 !e<uirin& the "ro'inent to e1ecti#e%y use a""ro"riate anti6"o%%ution
techno%o&y and aci%ities to "rotect the en#iron'ent and to restore or
rehabi%itate 'ined out areas and other areas a1ected by 'ine tai%in&s and
other or's o "o%%ution or destructionK
3%4 The contractors sha%% urnish the 9o#ern'ent records o &eo%o&ic,
accountin&, and other re%e#ant data or its 'inin& o"erations, and that
boo* o accounts and records sha%% be o"en or ins"ection by the
&o#ern'entK
3'4 !e<uirin& the "ro"onent to dis"ose o the 'inera%s and by "roducts
"roduced under a 2nancia% or technica% assistance a&ree'ent at the
hi&hest "rice and 'ore ad#anta&eous ter's and conditions as "ro#ided
or under the ru%es and re&u%ations o this )ctK
3n4 $ro#ide or consu%tation and arbitration +ith res"ect to the
inter"retation and i'"%e'entation o the ter's and conditions o the
a&ree'entsK and
3o4 Such other ter's and conditions consistent +ith the Constitution and
+ith this )ct as the Secretary 'ay dee' to be or the best interest o the
State and the +e%are o the ?i%i"ino "eo"%e(
Sec( 3= :e&otiations( ) 2nancia% or technica% assistance a&ree'ent sha%%
be ne&otiated by the -e"art'ent and e.ecuted and a""ro#ed by the
$resident( The $resident sha%% notiy Con&ress o a%% ?inancia% or technica%
assistance a&ree'ents +ithin thirty 3304 days ro' e.ecution and
a""ro#a% thereo(
Sec( 3F ?i%in& and E#a%uation o ?inancia% or Technica% )ssistance
)&ree'ent $ro"osa%s( )%% 2nancia% or technica% assistance a&ree'ent
"ro"osa%s sha%% be 2%ed +ith the Bureau ater "ay'ent o the re<uired
"rocessin& ees( 0 the "ro"osa% is ound to be suEcient and 'eritorious in
or' and substance ater e#a%uation, it sha%% be recorded +ith the
a""ro"riate &o#ern'ent a&ency to &i#e the "ro"onent the "rior ri&ht to
the area co#ered by such "ro"osa%: $ro#ided, That e.istin& 'inera%
a&ree'ents, 2nancia% or technica% assistance a&ree'ents and other
'inin& ri&hts are not i'"aired or "re>udiced thereby( The Secretary sha%%
reco''end its a""ro#a% to the $resident(
Sec( 38 Ter's o ?inancia% or Technica% )ssistance )&ree'ent( ) 2nancia%
or technica% assistance a&ree'ent sha%% ha#e a ter' not e.ceedin&
t+enty62#e 3,54 years to start ro' the e.ecution thereo, rene+ab%e or
not 'ore than t+enty62#e 3,54 years under such ter's and conditions as
'ay be "ro#ided by %a+(
Sec( 39 C"tion to Con#ert into a Minera% )&ree'ent( The contractor has
the o"tion to con#ert the 2nancia% or technica% assistance a&ree'ent to a
'inera% a&ree'ent at any ti'e durin& the ter' o the a&ree'ent, i the
econo'ic #iabi%ity o the contract area is ound to be inade<uate to >ustiy
%ar&e6sca%e 'inin& o"erations, ater "ro"er notice to the Secretary as
"ro#ided or under the i'"%e'entin& ru%es and re&u%ations: $ro#ided, That
the 'inera% a&ree'ent sha%% on%y be or the re'ainin& "eriod o the
ori&ina% a&ree'ent(
0n the case o a orei&n contractor, it sha%% reduce its e<uity to orty
"ercent 3;0A4 in the cor"oration, "artnershi", association, or coo"erati#e(
U"on co'"%iance +ith this re<uire'ent by the contractor, the Secretary
sha%% a""ro#e the con#ersion and e.ecute the 'inera% "roduction6sharin&
a&ree'ent(
Sec( ;0 )ssi&n'ent7Transer( ) 2nancia% or technica% assistance
a&ree'ent 'ay be assi&ned or transerred, in +ho%e or in "art, to a
<ua%i2ed "erson sub>ect to the "rior a""ro#a% o the $resident: $ro#ided,
That the $resident sha%% notiy Con&ress o e#ery 2nancia% or technica%
assistance a&ree'ent assi&ned or con#erted in accordance +ith this
"ro#ision +ithin thirty 3304 days ro' the date o the a""ro#a% thereo(
Sec( ;1 Githdra+a% ro' ?inancia% or Technica% )ssistance )&ree'ent( The
contractor sha%% 'aniest in +ritin& to the Secretary his intention to
+ithdra+ ro' the a&ree'ent, i in his >ud&e'ent the 'inin& "ro>ect is no
%on&er econo'ica%%y easib%e, e#en ater he has e.erted reasonab%e
di%i&ence to re'edy the cause or the situation( The Secretary 'ay acce"t
the +ithdra+a%: $ro#ided, That the contractor has co'"%ied or satis2ed a%%
his 2nancia%, 2sca% or %e&a% ob%i&ations(
'(A)*ER -II
SMA002S'A0E MININ.
Sec( ;, S'a%%6sca%e Minin&( S'a%%6sca%e 'inin& sha%% continue to be
&o#erned by !e"ub%ic )ct :o( F0F= and other "ertinent %a+s(
'(A)*ER -III
3$ARR, RES+$R'ES
Sec( ;3 Duarry $er'it( )ny <ua%i2ed "erson 'ay a""%y to the
"ro#incia%7city 'inin& re&u%atory board or a <uarry "er'it on "ri#ate%y6
o+ned %ands and7or "ub%ic %ands or bui%din& and construction 'ateria%s
such as 'arb%e, basa%t, andesite, con&%o'erate, tu1, adobe, &ranite,
&abbro, ser"entine, inset 2%in& 'ateria%s, c%ay or cera'ic ti%es and
bui%din& bric*s, "u'ice, "er%ite and other si'i%ar 'ateria%s that are
e.tracted by <uarryin& ro' the &round( The "ro#incia% &o#ernor sha%%
&rant the "er'it ater the a""%icant has co'"%ied +ith a%% the
re<uire'ents as "rescribed by the ru%es and re&u%ations(
The 'a.i'u' area +hich a <ua%i2ed "erson 'ay ho%d at any one ti'e
sha%% be 2#e hectares 35 has(4: $ro#ided, That in %ar&e6sca%e <uarry
o"erations in#o%#in& ce'ent ra+ 'ateria%s, 'arb%e, &ranite, sand and
&ra#e% and construction a&ree'ents, a <ua%i2ed "erson and the
&o#ern'ent 'ay enter into a 'inera% a&ree'ent as de2ned herein(
) <uarry "er'it sha%% ha#e a ter' o 2#e 354 years, rene+ab%e or %i*e
"eriods but not to e.ceed a tota% ter' o t+enty62#e 3,54 years, :o <uarry
"er'it sha%% be issued or &ranted on any area co#ered by a 'inera%
a&ree'ent, or 2nancia% or technica% assistance a&ree'ent(
Sec( ;; Duarry ?ee and Ta.es( ) "er'ittee sha%%, durin& the ter' o his
"er'it, "ay a <uarry ee as "ro#ided or under the i'"%e'entin& ru%es and
re&u%ations( The "er'ittee sha%% a%so "ay the e.cise ta. as "ro#ided by
"ertinent %a+s(
Sec( ;5 Cance%%ation o Duarry $er'it( ) <uarry "er'it 'ay be cance%%ed
by the "ro#incia% &o#ernor or #io%ations o the "ro#isions o this )ct or its
i'"%e'entin& ru%es and re&u%ations or the ter's and conditions o said
"er'it: $ro#ided, That beore the cance%%ation o such "er'it, the ho%der
thereo sha%% be &i#en the o""ortunity to be heard in an in#esti&ation
conducted or the "ur"ose(
Sec( ;= Co''ercia% Sand and 9ra#e% $er'it( )ny <ua%i2ed "erson 'ay be
&ranted a "er'it by the "ro#incia% &o#ernor to e.tract and re'o#e sand
and &ra#e% or other %oose or unconso%idated 'ateria%s +hich are used in
their natura% state, +ithout under&oin& "rocessin& ro' an area o not
'ore than 2#e hectares 35 has(4 and in such <uantities as 'ay be
s"eci2ed in the "er'it(
Sec( ;F 0ndustria% Sand and 9ra#e% $er'it( )ny <ua%i2ed "erson 'ay be
&ranted an industria% sand and &ra#e% "er'it by the Bureau or the
e.traction o sand and &ra#e% and other %oose or unconso%idated 'ateria%s
that necessitate the use o 'echanica% "rocessin& co#erin& an area o
'ore than 2#e hectares 35 has(4 at any one ti'e( The "er'it sha%% ha#e a
ter' o 2#e 354 years, rene+ab%e or a %i*e "eriod but not to e.ceed a tota%
ter' o t+enty62#e 3,54 years(
Sec( ;8 E.c%usi#e Sand and 9ra#e% $er'it( )ny <ua%i2ed "erson 'ay be
&ranted an e.c%usi#e sand and &ra#e% "er'it by the "ro#incia% &o#ernor to
<uarry and uti%i/e sand and &ra#e% or other %oose or unconso%idated
'ateria%s ro' "ub%ic %ands or his o+n use, "ro#ided that there +i%% be no
co''ercia% dis"osition thereo(
) 'inera% a&ree'ent or a 2nancia% technica% assistance a&ree'ent
contractor sha%%, ho+e#er, ha#e the ri&ht to e.tract and re'o#e sand and
&ra#e% and other %oose unconso%idated 'ateria%s +ithout need o a "er'it
+ithin the area co#ered by the 'inin& a&ree'ent or the e.c%usi#e use in
the 'inin& o"erations: $ro#ided, That 'onth%y re"orts o the <uantity o
'ateria%s e.tracted therero' sha%% be sub'itted to the 'ines re&iona%
oEce concerned: $ro#ided, urther, That said ri&ht sha%% be coter'inous
+ith the e."iration o the a&ree'ent(
Ho%ders o e.istin& 'inin& %eases sha%% %i*e+ise ha#e the sa'e ri&hts as
that o a contractor: $ro#ided, That said ri&ht sha%% be coter'inous +ith
the e."iry dates o the %ease(
Sec( ;9 9o#ern'ent 9ratuitous $er'it( )ny &o#ern'ent entity or
instru'enta%ity 'ay be &ranted a &ratuitous "er'it by the "ro#incia%
&o#ernor to e.tract sand and &ra#e%, <uarry or %oose unconso%idated
'ateria%s needed in the construction o bui%din& and7or inrastructure or
"ub%ic use or other "ur"oses o#er an area o not 'ore than t+o hectares
3, has(4 or a "eriod coter'inous +ith said construction(
Sec( 50 $ri#ate 9ratuitous $er'it( )ny o+ner o %and 'ay be &ranted a
"ri#ate &ratuitous "er'it by the "ro#incia% &o#ernor(
Sec( 51 9uano $er'it( )ny <ua%i2ed "erson 'ay be &ranted a &uano
"er'it by the "ro#incia% &o#ernor to e.tract and uti%i/e %oose
unconso%idated &uano and other or&anic erti%i/er 'ateria%s in any "ortion
o a 'unici"a%ity +here he has estab%ished do'ici%e( The "er'it sha%% be
or s"eci2c ca#es and7or or con2ned sites +ith %ocations #eri2ed by the
-e"art'entIs 2e%d oEcer in accordance +ith e.istin& ru%es and
re&u%ations(
Sec( 5, 9e'stone 9atherin& $er'it( )ny <ua%i2ed "erson 'ay be &ranted
a non6e.c%usi#e &e'stone &atherin& "er'it by the "ro#incia% &o#ernor to
&ather %oose stones useu% as &e'stones in ri#ers and other %ocations(
'(A)*ER I1
*RANS)+R*! SA0E AN" )R+'ESSIN. +/ MINERA0S
Sec( 53 Cre Trans"ort $er'it( ) "er'it s"eciyin& the ori&in and <uantity
o non6"rocessed 'inera% ores or 'inera%s sha%% be re<uired or their
trans"ort( Trans"ort "er'its sha%% be issued by the 'ines re&iona% director
+ho has >urisdiction o#er the area +here the ores +ere e.tracted( 0n the
case o 'inera% ores or 'inera%s bein& trans"orted ro' the s'a%%6sca%e
'inin& areas to the custo' 'i%%s or "rocessin& "%ants, the $ro#incia%
Minin& !e&u%atory Board 3$M!B4 concerned sha%% or'u%ate their o+n
"o%icies to &o#ern such trans"ort o ores "roduced by s'a%%6sca%e 'iners(
The absence o a "er'it sha%% be considered as "ri'a acie e#idence o
i%%e&a% 'inin& and sha%% be suEcient cause or the 9o#ern'ent to
con2scate the ores or 'inera%s bein& trans"orted, the too%s and
e<ui"'ent uti%i/ed, and the #ehic%e containin& the sa'e( Cre sa'"%es not
e.ceedin& t+o 'etric tons 3, '(t(4 to be used e.c%usi#e%y or assay or "i%ot
test "ur"oses sha%% be e.e'"ted ro' such re<uire'ent(
Sec( 5; Minera% Tradin& !e&istration( :o "erson sha%% en&a&e in the
tradin& o 'inera% "roducts, either %oca%%y or internationa%%y, un%ess
re&istered +ith the -e"art'ent o Trade and 0ndustry and accredited by
the -e"art'ent, +ith a co"y o said re&istration sub'itted to the Bureau(
Sec( 55 Minera%s $rocessin& $er'it( :o "erson sha%% en&a&e in the
"rocessin& o 'inera%s +ithout 2rst securin& a 'inera%s "rocessin& "er'it
ro' the Secretary( Minera%s "rocessin& "er'it sha%% be or a "eriod o 2#e
354 years rene+ab%e or %i*e "eriods but not to e.ceed a tota% ter' o
t+enty62#e 3,54 years( 0n the case o 'inera% ores or 'inera%s "roduced
by the s'a%%6sca%e 'iners, the "rocessin& thereo as +e%% as the %icensin&
o their custo' 'i%%s, or "rocessin& "%ants sha%% continue to be &o#erned
by the "ro#isions o !e"ub%ic )ct :o( F0F=(
Sec( 5= E%i&ibi%ity o ?orei&n6o+ned76contro%%ed Cor"oration( ) orei&n6
o+ned76contro%%ed cor"oration 'ay be &ranted a 'inera% "rocessin&
"er'it(
'(A)*ER 1
"E-E0+)MEN* +/ MININ. '+MM$NI*IES! S'IEN'E AN" MININ.
*E'(N+0+.,
Sec( 5F E."enditure or Co''unity -e#e%o"'ent and Science and Minin&
Techno%o&y( ) contractor sha%% assist in the de#e%o"'ent o its 'inin&
co''unity, the "ro'otion o the &enera% +e%are o its inhabitants, and
the de#e%o"'ent o science and 'inin& techno%o&y(
Sec( 58 Credited )cti#ities( )cti#ities that 'ay be credited as e."enditures
or de#e%o"'ent o 'inin& co''unities, and science and 'inin&
techno%o&y are the o%%o+in&:
3a4 )ny acti#ity or e."enditure intended to enhance the de#e%o"'ent o
the 'inin& and nei&hborin& co''unities o a 'inin& o"eration other than
those re<uired or "ro#ided or under e.istin& %a+s, or co%%ecti#e bar&ainin&
a&ree'ents, and the %i*e: and
3b4 )ny acti#ity or e."enditure directed to+ards the de#e%o"'ent o
&eosciences and 'inin& techno%o&y such as, but not %i'ited to,
institutiona% and 'an"o+er de#e%o"'ent, and basic and a""%ied
researches( )""ro"riate su"er#ision and contro% 'echanis's sha%% be
"rescribed in the i'"%e'entin& ru%es and re&u%ations o this )ct(
Sec( 59 Trainin& and -e#e%o"'ent( ) contractor sha%% 'aintain an
e1ecti#e "ro&ra' o 'an"o+er trainin& and de#e%o"'ent throu&hout the
ter' o the 'inera% a&ree'ent and sha%% encoura&e and train ?i%i"inos to
"artici"ate in a%% as"ects o the 'inin& o"erations, inc%udin& the
'ana&e'ent thereo( ?or hi&h%y6technica% and s"ecia%i/ed 'inin&
o"erations, the contractor 'ay, sub>ect to the necessary &o#ern'ent
c%earances, e'"%oy <ua%i2ed orei&ners(
Sec( =0 Use o 0ndi&enous 9oods, Ser#ices and Techno%o&ies( ) contractor
sha%% &i#e "reerence to the use o %oca% &oods, ser#ices and scienti2c and
technica% resources in the 'inin& o"erations, +here the sa'e are o
e<ui#a%ent <ua%ity, and are a#ai%ab%e on e<ui#a%ent ter's as their
i'"orted counter"arts(
Sec( =1 -onations7Turn C#er o ?aci%ities( $rior to cessation o 'inin&
o"erations occasioned by abandon'ent or +ithdra+a% o o"erations, on
"ub%ic %ands by the contractor, the %atter sha%% ha#e a "eriod o one 314
year therero' +ithin +hich to re'o#e his i'"ro#e'entsK other+ise, a%%
the socia% inrastructure and aci%ities sha%% be turned o#er or donated ta.6
ree to the "ro"er &o#ern'ent authorities, nationa% or %oca%, to ensure that
said inrastructure and aci%ities are continuous%y 'aintained and uti%i/ed
by the host and nei&hborin& co''unities(
Sec( =, E'"%oy'ent o ?i%i"inos( ) contractor sha%% &i#e "reerence to
?i%i"ino citi/ens in a%% ty"es o 'inin& e'"%oy'ent +ithin the country
insoar as such citi/ens are <ua%i2ed to "eror' the corres"ondin& +or*
+ith reasonab%e eEciency and +ithout ha/ard to the saety o the
o"erations( The contractor, ho+e#er, sha%% not be hindered ro' hirin&
e'"%oyees o his o+n se%ection, sub>ect to the "ro#ision o Co''on+ea%th
)ct :o( =13, as a'ended, or technica% and s"ecia%i/ed +or* +hich in his
>ud&e'ent and +ith the a""ro#a% o the -irector, re<uired hi&h%y6
s"ecia%i/ed trainin& or %on& e."erience in e."%oration, de#e%o"'ent or
uti%i/ation o 'inera% resources: $ro#ided, That in no case sha%% each
e'"%oy'ent e.ceed 2#e 354 years or the "aybac* "eriod as re"resented in
ori&ina% "ro>ect study, +hiche#er is %on&er: $ro#ided, urther, That each
orei&ner e'"%oyed as 'ine 'ana&er, #ice6"resident or o"erations or in
an e<ui#a%ent 'ana&eria% "osition in char&e o 'inin&, 'i%%in&, <uarryin&
or dri%%in& o"eration sha%%:
3a4 $resent e#idence o his <ua%i2cation and +or* e."erienceK or
3b4 Sha%% "ass the a""ro"riate &o#ern'ent %icensure e.a'inationK or
3c4 0n s"ecia% cases, 'ay be "er'itted to +or* by the -irector or a "eriod
not e.ceedin& one 314 year: $ro#ided, ho+e#er, That i reci"roca%
"ri#i%e&es are e.tended to ?i%i"ino nationa%s in the country o do'ici%e, the
-irector 'ay &rant +ai#ers or e.e'"tions(
'(A)*ER 1I
SA/E*, AN" EN-IR+NMEN*A0 )R+*E'*I+N
Sec( =3 Mines Saety and En#iron'enta% $rotection( )%% contractors and
"er'ittees sha%% strict%y co'"%y +ith a%% the 'ines saety ru%es and
re&u%ations as 'ay be "ro'u%&ated by the Secretary concernin& the sae
and sanitary u"*ee" o the 'inin& o"erations and achie#e +aste6ree and
eEcient 'ine de#e%o"'ent( $ersonne% o the -e"art'ent in#o%#ed in the
i'"%e'entation o 'ines saety, hea%th and en#iron'enta% ru%es and
re&u%ations sha%% be co#ered under !e"ub%ic )ct :o( F305(
Sec( =; Mine Jabor( :o "erson under si.teen 31=4 years o a&e sha%% be
e'"%oyed in any "hase o 'inin& o"erations and no "erson under
ei&hteen 3184 years o a&e sha%% be e'"%oyed under&round in a 'ine(
Sec( =5 Mine Su"er#ision( )%% 'inin& and <uarryin& o"erations that e'"%oy
'ore than 2ty 3504 +or*ers sha%% ha#e at %east one 314 %icensed 'inin&
en&ineer +ith at %east 2#e 354 years o e."erience in 'inin& o"erations,
and one 314 re&istered ore'an(
Sec( == Mine 0ns"ection( The re&iona% director sha%% ha#e e.c%usi#e
>urisdiction o#er the saety ins"ection o a%% insta%%ations, surace or
under&round, in 'inin& o"erations at reasonab%e hours o the day or ni&ht
and as 'uch as "ossib%e in a 'anner that +i%% not i'"ede or obstruct +or*
in "ro&ress o a contractor or "er'ittee(
Sec( =F $o+er to 0ssue Crders( The 'ines re&iona% director sha%%, in
consu%tation +ith the En#iron'enta% Mana&e'ent Bureau, orth+ith or
+ithin such ti'e as s"eci2ed in his order, re<uire the contractor to re'edy
any "ractice connected +ith 'inin& or <uarryin& o"erations, +hich is not
in accordance +ith saety and anti6"o%%ution %a+s and re&u%ations, +hich is
not in accordance +ith saety and anti6"o%%ution %a+s and re&u%ations( 0n
case o i''inent dan&er to %ie or "ro"erty, the 'ines re&iona% director
'ay su''ari%y sus"end the 'inin& or <uarryin& o"erations unti% the
dan&er is re'o#ed, or a""ro"riate 'easures are ta*en by the contractor
or "er'ittee(
Sec( =8 !e"ort o )ccidents( 0n case o any incident or accident, causin& or
creatin& the dan&er o %oss o %ie or serious "hysica% in>uries, the "erson in
char&e o o"erations sha%% i''ediate%y re"ort the sa'e to the re&iona%
oEce +here the o"erations are situated( ?ai%ure to re"ort the sa'e
+ithout >usti2ab%e reason sha%% be a cause or the i'"osition o
ad'inistrati#e sanctions "rescribed in the ru%es and re&u%ations
i'"%e'entin& this )ct(

Sec( =9 En#iron'enta% $rotection( E#ery contractor sha%% underta*e an
en#iron'enta% "rotection and enhance'ent "ro&ra' co#erin& the "eriod
o the 'inera% a&ree'ent or "er'it( Such en#iron'enta% "ro&ra' sha%% be
incor"orated in the +or* "ro&ra' +hich the contractor or "er'ittee sha%%
sub'it as an acco'"anyin& docu'ent to the a""%ication or a 'inera%
a&ree'ent or "er'it( The +or* "ro&ra' sha%% inc%ude not on%y "%ans
re%ati#e to 'inin& o"erations but a%so to rehabi%itation, re&eneration,
re#e&etation and reorestation o 'inera%i/ed areas, s%o"e stabi%i/ation o
'ined6out and tai%in&s co#ered areas, a<uacu%ture, +atershed
de#e%o"'ent and +ater conser#ationK and socioecono'ic de#e%o"'ent(
Sec( F0 En#iron'enta% 0'"act )ssess'ent 3E0)4( E.ce"t durin& the
e."%oration "eriod o a 'inera% a&ree'ent or 2nancia% or technica%
assistance a&ree'ent or an e."%oration "er'it, an en#iron'enta%
c%earance certi2cate sha%% be re<uired based on an en#iron'enta% i'"act
assess'ent and "rocedures under the $hi%i""ine En#iron'enta% 0'"act
)ssess'ent Syste' inc%udin& Sections ,= and ,F o the Joca% 9o#ern'ent
Code o 1991 +hich re<uire nationa% &o#ern'ent a&encies to 'aintain
eco%o&ica% ba%ance, and "rior consu%tation +ith the %oca% &o#ern'ent units,
non&o#ern'enta% and "eo"%eIs or&ani/ations and other concerned sectors
o the co''unity: $ro#ided, That a co'"%eted eco%o&ica% "ro2%e o the
"ro"osed 'inin& area sha%% a%so constitute "art o the en#iron'enta%
i'"act assess'ent( $eo"%eIs or&ani/ations and non6&o#ern'enta%
or&ani/ations sha%% be a%%o+ed and encoura&e to "artici"ate in ensurin&
that contractors7"er'ittees sha%% obser#e a%% the re<uire'ents o
en#iron'enta% "rotection(
Sec( F1 !ehabi%itation( Contractors and "er'ittees sha%% technica%%y and
bio%o&ica%%y rehabi%itate the e.ca#ated 'ined6out, tai%in&s co#ered and
disturbed areas to the condition o en#iron'enta% saety, as 'ay be
"ro#ided in the i'"%e'entin& ru%es and re&u%ations o this )ct( ) 'ine
rehabi%itation und sha%% be created, based on the contractorIs a""ro#ed
+or* "ro&ra', and sha%% be de"osited as a trust und in a &o#ern'ent
de"ository ban* and used or "hysica% and socia% rehabi%itation o areas
and co''unities a1ected by 'inin& acti#ities and or research on the
socia%, technica% and "re#enti#e as"ects o rehabi%itation( ?ai%ure to u%2%%
the abo#e ob%i&ation sha%% 'ean i''ediate sus"ension or c%osure o the
'inin& acti#ities o the contractor7"er'ittee concerned(
'(A)*ER 1II
A$1I0IAR, MININ. RI.(*S
Sec( F, Ti'ber !i&hts( )ny "ro#ision o %a+ to the contrary
not+ithstandin&, a contractor 'ay be ran&ed a ri&ht to cut trees or ti'ber
+ithin his 'inin& area as 'ay be necessary or his 'inin& o"erations
sub>ect to orestry %a+s, ru%es and re&u%ations: $ro#ided, That i the %and
co#ered by the 'inin& area is a%ready co#ered by e.istin& ti'ber
concessions, the #o%u'e o ti'ber needed and the 'anner o cuttin& and
re'o#a% thereo sha%% be deter'ined by the 'ines re&iona% director, u"on
consu%tation +ith the contractor, the ti'ber concessionaire7"er'ittee and
the ?orest Mana&e'ent Bureau o the -e"art'ent: $ro#ided, urther, That
in case o disa&ree'ent bet+een the contractor and the ti'ber
concessionaire, the 'atter sha%% be sub'itted to the Secretary +hose
decision sha%% be 2na%( The contractor sha%% "eror' reorestation +or*
+ithin his 'inin& area in accordance +ith orestry %a+s, ru%es and
re&u%ations(
Sec( F3 Gater !i&hts( ) contractor sha%% ha#e +ater ri&hts or 'inin&
o"erations u"on a""ro#a% o a""%ication +ith the a""ro"riate &o#ern'ent
a&ency in accordance +ith e.istin& +ater %a+s, ru%es and re&u%ations
"ro'u%&ated thereunder: $ro#ided, That +ater ri&hts a%ready &ranted or
#ested throu&h %on& use, reco&ni/ed and ac*no+%ed&ed by %oca% custo's,
%a+s, and decisions o courts sha%% not thereby be i'"aired: $ro#ided
urther, That the 9o#ern'ent reser#es the ri&ht to re&u%ate +ater ri&hts
and the reasonab%e and e<uitab%e distribution o +ater su""%y so as to
"re#ent the 'ono"o%y o the use thereo(
Sec( F; !i&ht to $ossess E."%osi#es( ) contractor7 e."%oration "er'ittee
sha%% ha#e the ri&ht to "ossess and use e."%osi#es +ithin his
contract7"er'it area as 'ay be necessary or his 'inin& o"erations u"on
a""ro#a% o an a""%ication +ith the a""ro"riate &o#ern'ent a&ency in
accordance +ith e.istin& %a+s, ru%es and re&u%ations "ro'u%&ated
thereunder: $ro#ided, That the 9o#ern'ent reser#es the ri&ht to re&u%ate
and contro% the e."%osi#e accessories to ensure sae 'inin& o"erations(
Sec( F5 Ease'ent !i&hts( Ghen 'inin& areas are so situated that or
"ur"oses o 'ore con#enient 'inin& o"erations it is necessary to bui%d,
construct or insta%% on the 'inin& areas or %ands o+ned, occu"ied or
%eased by other "ersons, such inrastructure as roads, rai%roads, 'i%%s,
+aste du'" sites, tai%in&s "onds, +arehouses, sta&in& or stora&e areas
and "ort aci%ities, tra'+ays, run+ays, air"orts, e%ectric trans'ission,
te%e"hone or te%e&ra"h %ines, da's and their nor'a% @ood and catch'ent
areas, sites or +ater +e%%s, ditches, cana%s, ne+ ri#er beds, "i"e%ines,
@u'es, cuts, shats, tunne%s, or 'i%%s, the contractor, u"on "ay'ent o >ust
co'"ensation, sha%% be entit%ed to enter and occu"y said 'inin& areas or
%ands(
Sec( F= Entry into $ri#ate Jands and Concession )reas( Sub>ect to "rior
noti2cation, ho%ders o 'inin& ri&hts sha%% not be "re#ented ro' entry
into "ri#ate %ands and concession areas by surace o+ners, occu"ants, or
concessionaires +hen conductin& 'inin& o"erations therein: $ro#ided,
That any da'a&e done to the "ro"erty o the surace o+ner, occu"ant, or
concessionaire as a conse<uence o such o"erations sha%% be "ro"er%y
co'"ensated as 'ay be "ro#ided or in the i'"%e'entin& ru%es and
re&u%ations: $ro#ided, urther, That to &uarantee such co'"ensation, the
"erson authori/ed to conduct 'inin& o"eration sha%%, "rior thereto, "ost a
bond +ith the re&iona% director based on the ty"e o "ro"erties, the
"re#ai%in& "rices in and around the area +here the 'inin& o"erations are
to be conducted, +ith surety or sureties satisactory to the re&iona%
director(
'(A)*ER 1III
SE**0EMEN* +/ '+N/0I'*S
Sec( FF $ane% o )rbitrators( There sha%% be a "ane% o arbitraters in the
re&iona% oEce o the -e"art'ent co'"osed o three 334 'e'bers, t+o 3,4
o +ho' 'ust be 'e'bers o the $hi%i""ine Bar in &ood standin& and one
%icensed 'inin& en&ineer or a "roessiona% in a re%ated 2e%d, and du%y
desi&nated by the Secretary as reco''ended by the Mines and
9eosciences Bureau -irector( Those desi&nated as 'e'bers o the "ane%
sha%% ser#e as such in addition to their +or* in the -e"art'ent +ithout
recei#in& any additiona% co'"ensation( )s 'uch as "racticab%e, said
'e'bers sha%% co'e ro' the di1erent bureaus o the -e"art'ent in the
re&ion( The "residin& oEcer sha%% be on a year%y basis( The 'e'bers o
the "ane% sha%% "eror' their duties and ob%i&ations in hearin& and
decidin& cases unti% their desi&nation is +ithdra+n or re#o*ed by the
Secretary( Githin thirty 3304 +or*in& days, ater the sub'ission o the case
by the "arties or decision, the "ane% sha%% ha#e e.c%usi#e and ori&ina%
>urisdiction to hear and decide on the o%%o+in&:
3a4 -is"utes in#o%#in& ri&hts to 'inin& areasK
3b4 -is"utes in#o%#in& 'inera% a&ree'ents or "er'itsK
3c4 -is"utes in#o%#in& surace o+ners, occu"ants and
c%ai'ho%ders7concessionairesK and
3d4 -is"utes "endin& beore the Bureau and the -e"art'ent at the date o
the e1ecti#ity o this )ct(
Sec( F8 )""e%%ate Jurisdiction( The decision or order o the "ane% o
arbitrators 'ay be a""ea%ed by the "arty not satis2ed thereto to the
'ines )d>udication Board +ithin 2teen 3154 days ro' recei"t thereo
+hich 'ust decide the case +ithin thirty 3304 days ro' sub'ission
thereo or decision(
Sec( F9 Mines )d>udication Board( The Mines )d>udication Board sha%% be
co'"osed o three 334 'e'bers( The Secretary sha%% be the chair'an +ith
the -irector o the Mines and 9eosciences Bureau and the Undersecretary
or C"erations o the -e"art'ent as 'e'ber thereo( The Board sha%%
ha#e the o%%o+in& "o+ers and unctions:
3a4 To "ro'u%&ate ru%es and re&u%ations &o#ernin& the hearin& and
dis"osition o cases beore it, as +e%% as those "ertainin& to its interna%
unctions, and such ru%es and re&u%ations as 'ay be necessary to carry
out its unctionsK
3b4 To ad'inister oaths, su''on the "arties to a contro#ersy, issue
sub"oenas re<uirin& the attendance and testi'ony o +itnesses or the
"roduction o such boo*s, "a"er, contracts, records, state'ent o
accounts, a&ree'ents, and other docu'ents as 'ay be 'ateria% to a >ust
deter'ination o the 'atter under in#esti&ation, and to testiy in any
in#esti&ation or hearin& conducted in "ursuance o this )ctK
3c4 To conduct hearin&s on a%% 'atters +ithin its >urisdiction, "roceed to
hear and deter'ine the dis"utes in the absence o any "arty thereto +ho
has been su''oned or ser#ed +ith notice to a""ear, conduct its
"roceedin&s or any "art thereo in "ub%ic or in "ri#ate, ad>ourn its hearin&s
at any ti'e and "%ace, reer technica% 'atters or accounts to an e."ert
and to acce"t his re"ort as e#idence ater hearin& o the "arties u"on due
notice, direct "arties to be >oined in or e.c%uded ro' the "roceedin&s,
correct, a'end, or +ai#e any error, deect or irre&u%arity, +hether in
substance or in or', &i#e a%% such directions at it 'ay dee' necessary or
e."edient in the deter'ination o the dis"ute beore it and dis'iss the
'inin& dis"ute as "art thereo, +here it is tri#ia% or +here urther
"roceedin&s by the Board are not necessary or desirab%eK
314 to ho%d any "erson in conte'"t, direct%y or indirect%y, and i'"ose
a""ro"riate "ena%ties thereorK and
3,4 To en>oin any or a%% acts in#o%#in& or arisin& ro' any case "endin&
beore it +hich, i not restrained orth+ith, 'ay cause &ra#e or irre"arab%e
da'a&e to any o the "arties to the case or serious%y a1ect socia% and
econo'ic stabi%ity(
0n any "roceedin& beore the Board, the ru%es o e#idence "re#ai%in& in
courts o %a+ or e<uity sha%% not be contro%%in& and it is the s"irit and
intention o this )ct that sha%% &o#ern( The Board sha%% use e#ery and a%%
reasonab%e 'eans to ascertain the acts in each case s"eedi%y and
ob>ecti#e%y and +ithout re&ard to technica%ities o %a+ or "rocedure, a%% in
the interest o due "rocess( 0n any "roceedin& beore the Board, the
"arties 'ay be re"resented by %e&a% counse%( the 2ndin&s o act o the
Board sha%% be conc%usi#e and bindin& on the "arties and its decision or
order sha%% be 2na% and e.ecutory(
) "etition or re#ie+ by certiorari and <uestion o %a+ 'ay be 2%ed by the
a&&rie#ed "arty +ith the Su"re'e Court +ithin thirty 3304 days ro'
recei"t o the order or decision o the Board(
'(A)*ER 1I-
.+-ERNMEN* S(ARE
Sec( 80 9o#ern'ent Share in Minera% $roduction Sharin& )&ree'ent( The
tota% &o#ern'ent share in a 'inera% "roduction sharin& a&ree'ent sha%%
be the e.cise ta. on 'inera% "roducts as "ro#ided in !e"ub%ic )ct :o(
FF,9, a'endin& Section 1513a4 o the :ationa% 0nterna% !e#enue Code, as
a'ended(
Sec( 81 9o#ern'ent Share in Cther Minera% )&ree'ents( The share o the
9o#ern'ent in co6"roduction and >oint6#enture a&ree'ents sha%% be
ne&otiated by the 9o#ern'ent and the contractor ta*in& into
consideration the: 3a4 ca"ita% in#est'ent o the "ro>ect, 3b4 ris*s in#o%#ed,
3c4 contribution o the "ro>ect to the econo'y, and 3d4 other actors that
+i%% "ro#ide or a air and e<uitab%e sharin& bet+een the 9o#ern'ent and
the contractor( The 9o#ern'ent sha%% a%so be entit%ed to co'"ensations
or its other contributions +hich sha%% be a&reed u"on by the "arties, and
sha%% consist, a'on& other thin&s, the contractorIs inco'e ta., e.cise ta.,
s"ecia% a%%o+ance, +ithho%din& ta. due ro' the contractorIs orei&n
stoc*ho%ders arisin& ro' di#idend or interest "ay'ents to the said orei&n
stoc*ho%ders, in case o a orei&n nationa%, and a%% such other ta.es, duties
and ees as "ro#ided or under e.istin& %a+s(
The 9o#ern'ent share in 2nancia% or technica% assistance a&ree'ent sha%%
consist o, a'on& other thin&s, the contractorIs cor"orate inco'e ta.,
e.cise ta., s"ecia% a%%o+ance, +ithho%din& ta. due ro' the contractorIs
orei&n stoc*ho%ders arisin& ro' di#idend or interest "ay'ents to the said
orei&n stoc*ho%der in case o a orei&n nationa% and a%% such other ta.es,
duties and ees as "ro#ided or under e.istin& %a+s(
The co%%ection o &o#ern'ent share in 2nancia% or technica% assistance
a&ree'ent sha%% co''ence ater the 2nancia% or technica% assistance
a&ree'ent contractor has u%%y reco#ered its "re6o"eratin& e."enses,
e."%oration, and de#e%o"'ent e."enditures, inc%usi#e(
Sec( 8, )%%ocation o 9o#ern'ent Share( The 9o#ern'ent share as
reerred to in the "recedin& sections sha%% be shared and a%%ocated in
accordance +ith Sections ,90 and ,9, o !e"ub%ic )ct :o( F1=0 other+ise
*no+n as the Joca% 9o#ern'ent Code o 1991( 0n case the de#e%o"'ent
and uti%i/ation o 'inera% resources is underta*en by a &o#ern'ent6o+ned
or contro%%ed cor"oration, the sharin& and a%%ocation sha%% be in
accordance +ith Sections ,91 and ,9, o the said Code(
'(A)*ER 1-
*A1ES AN" /EES
Sec( 83 0nco'e Ta.es( )ter the %a"se o the inco'e ta. ho%iday as
"ro#ided or in the C'nibus 0n#est'ents Code, the contractor sha%% be
%iab%e to "ay inco'e ta. as "ro#ided in the :ationa% 0nterna% !e#enue
Code, as a'ended(
Sec( 8; E.cise Ta. on Minera% $roducts( The contractor sha%% be %iab%e to
"ay the e.cise ta. on 'inera% "roducts as "ro#ided or under Section 151
o the :ationa% 0nterna% !e#enue Code: $ro#ided, ho+e#er, That +ith
res"ect to a 'inera% "roduction sharin& a&ree'ent, the e.cise ta. on
'inera% "roducts sha%% be the &o#ern'ent share under said a&ree'ent(
Sec( 85 Mine Gastes and Tai%in&s ?ees( ) se'i6annua% ee to be *no+n as
'ine +astes and tai%in&s ee is hereby i'"osed on a%% o"eratin& 'inin&
co'"anies in accordance +ith the i'"%e'entin& ru%es and re&u%ations(
The 'ine +astes and tai%in&s ee sha%% accrue to a reser#e und to be used
e.c%usi#e%y or "ay'ent or da'a&es to:
3a4 Ji#es and "ersona% saetyK
3b4 Jands, a&ricu%tura% cro"s and orest "roducts, 'arine %ie and a<uatic
resources, cu%tura% resourcesK and
3c4 0nrastructure and the re#e&etation and rehabi%itation o si%ted ar'
%ands and other areas de#oted to a&ricu%ture and 2shin& caused by 'inin&
"o%%ution(
This is in addition to the sus"ension or c%osure o the acti#ities o the
contractor at any ti'e and the "ena% sanctions i'"osed u"on the sa'e(
The Secretary is authori/ed to increase 'ine +astes and tai%in&s ees,
+hen "ub%ic interest so re<uires, u"on the reco''endation o the
-irector(
Sec( 8= Cccu"ation ?ees( There sha%% be co%%ected ro' any ho%der o a
'inera% a&ree'ent, 2nancia% or technica% assistance a&ree'ent or
e."%oration "er'it on "ub%ic or "ri#ate %ands, an annua% occu"ation ee in
accordance +ith the o%%o+in& schedu%eK
3a4 ?or e."%oration "er'it 6 ?i#e "esos 3$5(004 "er hectare or raction
thereo "er annu'K
3b4 ?or 'inera% a&ree'ents and 2nancia% or technica% assistance
a&ree'ents 6 ?ity "esos 3$50(004 "er hectare or raction thereo "er
annu'K and
3c4 ?or 'inera% reser#ation 6 Cne hundred "esos 3$100(004 "er hectare or
raction thereo "er annu'(
The Secretary is authori/ed to increase the occu"ation ees "ro#ided
herein +hen the "ub%ic interest so re<uires, u"on reco''endation o the
Bureau -irector(
Sec( 8F Manner o "ay'ent o ?ees( The ees sha%% be "aid on the date the
'inin& a&ree'ent is re&istered +ith the a""ro"riate oEce and on the
sa'e date e#ery year thereater( 0t sha%% be "aid to the treasurer o the
'unici"a%ity or city +here the onshore 'inin& areas are %ocated, or to the
-irector in case o o1shore 'inin& areas( ?or this "ur"ose, the a""ro"riate
oEcer sha%% sub'it to the treasurer o the 'unici"a%ity or city +here the
onshore 'inin& area is %ocated, a co'"%ete %ist o a%% onshore 'inin& ri&hts
re&istered +ith his oEce, indicatin& therein the na'es o the ho%ders, area
in hectares, %ocation, and date re&istered( 0 the ee is not "aid on the date
s"eci2ed, it sha%% be increased by t+enty62#e "er centu' 3,5A4(
Sec( 88 )%%ocation o Cccu"ation ?ees( Thirty "er centu' 330A4 o a%%
occu"ationa% ees co%%ected ro' ho%ders o 'inin& ri&hts in onshore
'inin& areas sha%% accrue to the "ro#ince and se#enty "er centu' 3F0A4
to the 'unici"a%ity in +hich the onshore 'inin& areas are %ocated( 0n a
chartered city, the u%% a'ount sha%% accrue to the city concerned(
Sec( 89 ?i%in& ?ees and Cther Char&es( The Secretary is authori/ed to
char&e reasonab%e 2%in& ees and other char&es as he 'ay "rescribe in
accordance +ith the i'"%e'entin& ru%es and re&u%ations(
'(A)*ER 1-I
IN'EN*I-ES
Sec( 90 0ncenti#es( The contractors in 'inera% a&ree'ents, and 2nancia%
or technica% assistance a&ree'ents sha%% be entit%ed to the a""%icab%e
2sca% and non62sca% incenti#es as "ro#ided or under E.ecuti#e Crder :o(
,,=, other+ise *no+n as the C'nibus 0n#est'ents Code o 198F:
$ro#ided, That ho%ders o e."%oration "er'its 'ay re&ister +ith the Board
o 0n#est'ents and be entit%ed to the 2sca% incenti#es &ranted under the
said Code or the duration o the "er'its or e.tensions thereo: $ro#ided,
urther, That 'inin& acti#ities sha%% a%+ays be inc%uded in the in#est'ent
"riorities "%an(
Sec( 91 0ncenti#es or $o%%ution Contro% -e#ices( $o%%ution contro% de#ices
ac<uired, constructed or insta%%ed by contractors sha%% not be considered
as i'"ro#e'ents on the %and or bui%din& +here they are "%aced, and sha%%
not be sub>ect to rea% "ro"erty and other ta.es or assess'ents: $ro#ided,
ho+e#er, That "ay'ent o 'ine +astes and tai%in&s ees is not e.e'"ted(
Sec( 9, 0nco'e Ta.6Carry ?or+ard o Josses( ) net o"eratin& %oss +ithout
the bene2t o incenti#es incurred in any o the 2rst ten 3104 years o
o"erations 'ay be carried o#er as a deduction ro' ta.ab%e inco'e or
the ne.t 2#e 354 years i''ediate%y o%%o+in& the year o such %oss( The
entire a'ount o the %oss sha%% be carried o#er to the 2rst o the 2#e 354
ta.ab%e years o%%o+in& the %oss, and any "ortion o such %oss +hich
e.ceeds the ta.ab%e inco'e o such 2rst year sha%% be deducted in %i*e
'anner ro' the ta.ab%e inco'e o the ne.t re'ainin& our 3;4 years(
Sec( 93 0nco'e Ta.6)cce%erated -e"reciation( ?i.ed assets 'ay be
de"reciated as o%%o+s:
3a4 To the e.tent o not 'ore than t+ice as ast as the nor'a% rate o
de"reciation or de"reciated at nor'a% rate o de"reciation i the e."ected
%ie is ten 3104 years or %essK or
3b4 -e"reciated o#er any nu'ber o years bet+een 2#e 354 years and the
e."ected %ie i the %atter is 'ore than ten 3104 years, and the de"reciation
thereon a%%o+ed as deduction ro' ta.ab%e inco'e: $ro#ided, That the
contractor noti2es the Bureau o 0nterna% !e#enue at the be&innin& o the
de"reciation "eriod +hich de"reciation rate a%%o+ed by this section +i%% be
used(
0n co'"utin& or ta.ab%e inco'e, un%ess other+ise "ro#ided in this )ct,
the contractor 'ay, at his o"tion, deduct e."%oration and de#e%o"'ent
e."enditures accu'u%ated at cost as o the date o the "ros"ectin& or
e."%oration and de#e%o"'ent e."enditures "aid or incurred durin& the
ta.ab%e year: $ro#ided, That the tota% a'ount deductib%e or e."%oration
and de#e%o"'ent e."enditures sha%% not e.ceed t+enty62#e "er centu'
3,5A4 o the net inco'e ro' 'inin& o"erations( The actua% e."%oration
and de#e%o"'ent e."enditures 'inus the t+enty62#e "er centu' 3,5A4
net inco'e ro' 'inin& sha%% be carried or+ard to the succeedin& years
unti% u%%y deducted(
:et inco'e ro' 'inin& o"eration is de2ned as &ross inco'e ro'
o"erations %ess a%%o+ab%e deductions +hich are necessary or re%ated to
'inin& o"erations( )%%o+ab%e deductions sha%% inc%ude 'inin&, 'i%%in& and
'ar*etin& e."enses, de"reciation or "ro"erties direct%y used in the 'inin&
o"erations( This "ara&ra"h sha%% not a""%y to e."enditures or the
ac<uisition or i'"ro#e'ent o "ro"erty o a character +hich is sub>ect to
the a%%o+ances or de"reciation(
Sec( 9; 0n#est'ent 9uarantees( The contractor sha%% be entit%ed to the
basic ri&hts and &uarantees "ro#ided in
the Constitution and such other ri&hts reco&ni/ed by the &o#ern'ent as
enu'erated hereunder(
3a4 !e"atriation o in#est'ents( The ri&ht to re"atriate the entire "roceeds
o the %i<uidation o the orei&n in#est'ent in the currency in +hich the
in#est'ent +as ori&ina%%y 'ade and at the e.chan&e rate "re#ai%in& at the
ti'e o re"atriation(
3b4 !e'ittance o earnin&s( The ri&ht to re'it earnin&s ro' the
in#est'ent in the currency in +hich the orei&n in#est'ent +as ori&ina%%y
'ade at the e.chan&e rate "re#ai%in& at the ti'e o re'ittance(
3c4 ?orei&n %oans and contracts( The ri&ht to re'it at the e.chan&e rate
"re#ai%in& at the ti'e o re'ittance such su's as 'ay be necessary to
'eet the "ay'ents o interest and "rinci"a% on orei&n %oans and orei&n
ob%i&ations arisin& ro' 2nancia% or technica% assistance contracts(
3d4 ?reedo' ro' e."ro"riation( The ri&ht to be ree ro' e."ro"riation by
the &o#ern'ent o the "ro"erty re"resented by in#est'ents or %oans, or o
the "ro"erty o the enter"rise e.ce"t or "ub%ic use or in the interest o
nationa% +e%are or deense and u"on "ay'ent o >ust co'"ensation( 0n
such cases, orei&n in#estors or enter"rises sha%% ha#e the ri&ht to re'it
su's recei#ed as co'"ensation or the e."ro"riated "ro"erty in the
currency in +hich the in#est'ent +as ori&ina%%y 'ade and at the
e.chan&e rate "re#ai%in& at the ti'e o re'ittance(
3e4 !e<uisition o in#est'ent( The ri&ht to be ree ro' re<uisition o the
"ro"erty re"resented by the in#est'ent or o the "ro"erty o the
enter"rises e.ce"t in case o +ar or nationa% e'er&ency and on%y or the
duration thereo( Just co'"ensation sha%% be deter'ined and "aid either at
the ti'e or i''ediate%y ater cessation o the state o +ar or nationa%
e'er&ency( $ay'ents recei#ed as co'"ensation or the re<uisitioned
"ro"erty 'ay be re'itted in the currency in +hich the in#est'ents +ere
ori&ina%%y 'ade and at the e.chan&e rate "re#ai%in& at the ti'e o
re'ittance(
34 Con2dentia%ity( )ny con2dentia% inor'ation su""%ied by the contractor
"ursuant to this )ct and its i'"%e'entin& ru%es and re&u%ations sha%% be
treated as such by the de"art'ent and the 9o#ern'ent, and durin& the
ter' o the "ro>ect to +hich it re%ates(
'(A)*ER 1-II
.R+$N" /+R 'AN'E00A*I+N! RE-+'A*I+N! AN" *ERMINA*I+N
Sec( 95 Jate or :on62%in& o !e<uire'ents( ?ai%ure o the "er'ittee or
contractor to co'"%y +ith any o the re<uire'ents "ro#ided in this )ct or
in its i'"%e'entin& ru%es and re&u%ations, +ithout a #a%id reason, sha%% be
suEcient &round ro' the sus"ension o any "er'it or a&ree'ent
"ro#ided under this )ct(
Sec( 9= Bio%ation o the Ter's and Conditions o $er'its or )&ree'ents(
Bio%ations o the ter's and conditions o the "er'its or a&ree'ents sha%%
be a suEcient &round or cance%%ation o the sa'e(
Sec( 9F :on6"ay'ent o ta.es and ?ees( ?ai%ure to "ay the ta.es and ees
due the 9o#ern'ent or t+o 3,4 consecuti#e years sha%% cause the
cance%%ation o the e."%oration "er'it, 'inera% a&ree'ent, 2nancia% or
technica% assistance a&ree'ent and other a&ree'ents and the re6o"enin&
o the area sub>ect thereo to ne+ a""%icants(
Sec( 98 Sus"ension or Cance%%ation o Ta. 0ncenti#es and Credits( ?ai%ure to
abide by the ter's and conditions o ta. incenti#es and credits sha%% cause
the sus"ension or cance%%ation o said incenti#es and credits(
Sec( 99 ?a%sehood or C'ission o ?acts in the State'ent( )%% state'ents
'ade in the e."%oration "er'it, 'inin& a&ree'ent and 2nancia% or
technica% assistance sha%% be considered as conditions and essentia% "arts
thereo and any a%sehood in said state'ents or o'ission o acts therein
+hich 'ay a%ter, chan&e or a1ect substantia%%y the acts set orth in said
state'ents 'ay cause the re#ocation and ter'ination o the e."%oration
"er'it, 'inin& a&ree'ent and 2nancia% or technica% assistance
a&ree'ent(
'(A)*ER 1-III
+R.ANI4A*I+NA0 AN" INS*I*$*I+NA0 ARRAN.EMEN*
Sec( 100 ?ro' Sta1 Bureau to Jine Bureau( The Mines and 9eosciences
Bureau is hereby transor'ed into a %ine bureau consistent +ith Section 9
o this )ct: $ro#ided, That under the Mines and 9eosciences Bureau sha%%
be the necessary 'ines re&iona%, district and other "ertinent oEces 6 the
nu'ber and s"eci2c unctions o +hich sha%% be "ro#ided in the
i'"%e'entin& ru%es and re&u%ations o this )ct(
'(A)*ER 1I1
)ENA0 )R+-ISI+NS
Sec( 101 ?a%se State'ents( )ny "erson +ho *no+in&%y "resents any a%se
a""%ication, dec%aration, or e#idence to the 9o#ern'ent or "ub%ishes or
causes to be "ub%ished any "ros"ectus or other inor'ation containin&
any a%se state'ent re%atin& to 'ines, 'inin& o"erations or 'inera%
a&ree'ents, 2nancia% or technica% assistance a&ree'ents and "er'its
sha%%, u"on con#iction, be "ena%i/ed by a 2ne o not e.ceedin& Ten
Thousand $esos 3$10,000(004(
Sec( 10, 0%%e&a% E."%oration( )ny "erson underta*in& e."%oration +or*
+ithout the necessary e."%oration "er'it sha%%, u"on con#iction, be
"ena%i/ed by a 2ne o not e.ceedin& ?ity thousand "esos 3$50,000(004(
Sec( 103 Thet o Minera%s( )ny "erson e.tractin& 'inera%s and dis"osin&
the sa'e +ithout a 'inin& a&ree'ent, %ease, "er'it, %icense, or stea%s
'inera%s or ores or the "roducts thereo ro' 'ines or 'i%%s or "rocessin&
"%ants sha%%, u"on con#iction, be i'"risoned ro' si. 3=4 'onths to si. 3=4
years or "ay a 2ne ro' Ten thousand "esos 3$10,000(004 to T+enty
thousand "esos 3$,0,000(004, or both, at the discretion o the a""ro"riate
court( 0n addition, he sha%% be %iab%e to "ay da'a&es and co'"ensation or
the 'inera%s re'o#ed, e.tracted, and dis"osed o( 0n the case o
associations, "artnershi"s, or cor"orations, the "resident and each o the
directors thereo sha%% be res"onsib%e or the acts co''itted by such
association, cor"oration, or "artnershi"(
Sec( 10; -estruction o Minin& Structures( )ny "erson +ho +i%%u%%y
destroys or da'a&es structures in or on the 'inin& area or on the 'i%%
sites sha%%, u"on con#iction, be i'"risoned or a "eriod not to e.ceed 2#e
354 years and sha%%, in addition, "ay co'"ensation or the da'a&es +hich
'ay ha#e been caused thereby(
Sec( 105 Mines )rson( )ny "erson +ho +i%%u%%y sets 2re to any 'inera%
stoc*"i%e, 'ine or +or*in&s, 2ttin&s or a 'ine, sha%% be &ui%ty o arson and
sha%% be "unished, u"on con#iction, by the a""ro"riate court in
accordance +ith the "ro#isions o the !e#ised $ena% Code and sha%%, in
addition, "ay co'"ensation or the da'a&es caused thereby(
Sec( 10= Gi%%u% -a'a&e to a Mine( )ny "erson +ho +i%%u%%y da'a&es a
'ine, un%a+u%%y causes +ater to run into a 'ine, or obstructs any shat or
"assa&e to a 'ine, or renders use%ess, da'a&es or destroys any 'achine,
a""%iance, a""aratusK ro"e, chain, tac*%e, or any other thin&s used in a
'ine, sha%% be "unished, u"on con#iction, by the a""ro"riate court, by
i'"rison'ent not e.ceedin& a "eriod o 2#e 354 years and sha%%, in
addition, "ay co'"ensation or the da'a&es caused thereby(
Sec( 10F 0%%e&a% Cbstruction to $er'ittees or Contractors( )ny "erson +ho,
+ithout >usti2ab%e cause, "re#ents or obstructs the ho%der o any "er'it,
a&ree'ent or %ease ro' underta*in& his 'inin& o"erations sha%% be
"unished, u"on con#iction by the a""ro"riate court, by a 2ne not
e.ceedin& ?i#e thousand "esos 3$5,000(004 or i'"rison'ent not
e.ceedin& one 314 year, or both, at the discretion o the court(
Sec( 108 Bio%ation o the Ter's and Conditions o the En#iron'enta%
Co'"%iance Certi2cate( )ny "erson +ho +i%%u%%y #io%ates or &ross%y
ne&%ects to abide by the ter's and conditions o the en#iron'enta%
co'"%iance certi2cate issued to said "erson and +hich causes
en#iron'enta% da'a&e throu&h "o%%ution sha%% su1er the "ena%ty o
i'"rison'ent o si. 3=4 'onths to si. 3=4 years or a 2ne o ?ity thousand
"esos 3$50,000(004 to T+o Hundered Thousand $esos 3$,00,000(004, or
both at the discretion o the court(
Sec( 109 0%%e&a% Cbstruction to 9o#ern'ent CEcia%s( )ny "erson +ho
i%%e&a%%y "re#ents or obstructs the Secretary, the -irector or any o their
re"resentati#es in the "eror'ance o their duties under the "ro#isions o
this )ct and o the re&u%ations "ro'u%&ated hereunder sha%% be "unished,
u"on con#iction, by the a""ro"riate court, by a 2ne not e.ceedin& ?i#e
thousand "esos 3$5,000(004 or by i'"rison'ent not e.ceedin& one 314
year, or both, at the discretion o the court(
Sec( 110 Cther Bio%ations( )ny other #io%ation o this )ct and its
i'"%e'entin& ru%es and re&u%ations sha%% constitute an o1ense "unishab%e
+ith a 2ne not e.ceedin& 2#e thousand "esos 3$5,000(004(
Sec( 111 ?ines( The Secretary is authori/ed to char&e 2nes or %ate or
nonsub'ission o re"orts in accordance +ith the i'"%e'entin& ru%es and
re&u%ations o this )ct(
'(A)*ER 11
*RANSI*+R, AN" MIS'E00ANE+$S )R+-ISI+NS
Sec( 11, :on6i'"air'ent o E.istin& Minin&7Duarryin& !i&hts( )%% #a%id and
e.istin& 'inin& %ease contracts, "er'its7%icenses, %eases "endin& rene+a%,
'inera% "roduction6sharin& a&ree'ents &ranted under E.ecuti#e Crder
:C( ,F9, at the date o e1ecti#ity o this )ct, sha%% re'ain #a%id, sha%% not
be i'"aired, and sha%% be reco&ni/ed by the 9o#ern'ent: $ro#ided, That
the "ro#isions o Cha"ter H0B on &o#ern'ent share in 'inera% "roduction6
sharin& a&ree'ent and o Cha"ter HB0 on incenti#es o this )ct sha%%
i''ediate%y &o#ern and a""%y to a 'inin& %essee or contractor un%ess the
'inin& %essee or contractor indicates his intention to the secretary in
+ritin&, not to a#ai% o said "ro#isions: $ro#ided, urther, That no rene+a%
o 'inin& %ease contracts sha%% be 'ade ater the e."iration o its ter':
$ro#ided, 2na%%y, That such %eases, "roduction6sharin& a&ree'ents,
2nancia% or technica% assistance a&ree'ents sha%% co'"%y +ith the
a""%icab%e "ro#isions o this )ct and its i'"%e'entin& ru%es and
re&u%ations(
Sec( 113 !eco&nition o Ba%id and E.istin& Minin& C%ai's and Jease7Duarry
)""%ications( Ho%ders o #a%id and e.istin& 'inin& c%ai's, %ease7<uarry
a""%ications sha%% be &i#en "reerentia% ri&hts to enter into any 'ode or
'inera% a&ree'ent +ith the &o#ern'ent +ithin t+o 3,4 years ro' the
"ro'u%&ation o the ru%es and re&u%ations i'"%e'entin& this )ct(
Sec( 11; Se"arabi%ity C%ause( 0 any o the "ro#ision o this )ct is he%d or
dec%ared to be unconstitutiona% or in#a%id by a co'"etent court, the other
"ro#isions hereo sha%% continue to be in orce as i the "ro#isions so
annu%%ed or #oided had ne#er been incor"orated in this )ct(
Sec( 115 !e"ea%in& and )'endin& C%ause( )%% %a+s, e.ecuti#e orders,
"residentia% decrees, ru%es and re&u%ations, or "arts thereo +hich are
inconsistent +ith any o the "ro#isions o this )ct are hereby re"ea%ed or
a'ended accordin&%y(
Sec( 11= Etsecti#ity C%ause( This )ct sha%% ta*e e1ect thirty 3304 days
o%%o+in& its co'"%ete "ub%ications in t+o 3,4 ne+s"a"ers o &enera%
circu%ation in the $hi%i""ines(