Chapter IV

PHILIPPINE MINING ACT OF 1995 (R.A. 7942)

B. Organizational Structure
09. Authority of the Department
 DENR – primary agency responsible for the conservation, management, development and
proper use of State’s mineral resources
 Secretary – authority to enter into mineral agreements on behalf of the government;
promulgate rules and regulations
a. Validity of administrative orders issued by the Department Secretary
b. Role of local governments
i. Ensure that relevant laws are complied with
ii. To approve application for small-scale mining not exceeding 5 hectares
iii. To receive their share in generated wealth from utilization of mineral resources
iv. To facilitate process by which the community shall reach an informed decision on social
acceptability of a mining project
v. To participate in monitoring mining activity
vi. To participate as member of Mine Rehabilitation Fund Committee
vii. To be the recipient of social infrastructure and community development projects
viii. To act as meditator between indigenous cultural communities and the contractors
ix. To coordinate with the Department and Bureau in the implementation of the Act and the
implementing rules and regulations in their jurisdictions
x. To perform other powers and functions

 Doctrine of Primary Jurisdiction - is a judicial doctrine whereby a court tends to favor allowing an
agency an initial opportunity to decide an issue in a case in which the court and the agency have
concurrent jurisdiction

D. Exploration permit
SECTION 20
Exploration permit – grants the right to conduct exploration of all minerals in specified areas
 Granted by the Bureau

SECTION 24
A permit holder shall file with the Bureau a declaration of mining project feasibility accompanied by a
work program fro development for approval.

Term of Exploration Permit – 2 years from date of issue

Transfer of Exploration Permit

SECTION 25
May be transferred or assigned to a qualified person subject to the approval of the Secretary upon the
recommendation of the Director

F. Financial or Technical Assistance Agreement

FTAA – a contract involving financial or technical assistance for large-scale exploration, development, and
utilization of natural resources
J. Safety and Environmental Protection
26. Mines safety and environmental protection
a. Mine labor
 No person under 16 years of age shall be employed in any phase of mining operations
 No person under 18 years of age shall be employed underground in a mine
 Mining and quarrying operations with more than 50 workers shall have at least 1 licensed
mining engineer (with at least 5 years of experience) and one registered foreman
b. Power to issue orders
 Mines Regional Director
 Require the contractor to remedy any practice connected with mining quarrying
operations which is not in accordance with safety and anti-pollution laws and regulations
 May suspend then mining and quarrying operations until the danger is removed or
appropriate measures are taken
c. Pollution cases under the jurisdiction of the Pollution and Adjudication Board (PAB)
 Section 19 of EO No. 192 vested the PAB with the power to adjudicate pollution cases in
general
d. Environmental Impact Assessment (EIA)

K. Surface Rights
27. Easement rights
Section 75 of R.A. 7942
 For purposes of more convenient mining operations, it is necessary to build, construct or
install infrastructure
28. Entry into lands
Section 76 of R.A. 7942
 Holders of mining rights shall not be prevented from entry into private lands and concession
areas
 Any damage shall done to the property shall be properly compensated
 To guarantee compensation, person authorized to conduct mining operations shall post a
bond with the regional director based on the type of properties, the prevailing prices in and
around the area
a. Historical background of Section 76
 First found in Section 27 of CA No. 137 (November 7, 1936)
 Prospector shall first apply in writing for written permission of the private owner,
claimant, or holder
 Failure to unanimously agree on amount of compensation, all questions shall be
determined by RTC
 Section 12 of PD No. 463
 “The Mineral Resources Development Decree of 1974”
 A person who desired to conduct mining operations shall obtain written permission from
the government for public lands or owner of private lands
 In case permission is denied, the Director may intercede with the owner or possessor of
the lands
 If intercession fails, interested person may bring suit in RTC
b. Section 76 constitutes compensable “taking” for public use
c. Determination of compensation by the Panel of Arbitrators is only preliminary
L. Transport of Mineral/Mineral Products and Confiscation, Seizure, and Disposition of Illegally-sourced
Mineral/ Mineral Products
All transports must be accompanied by an ore transport permit

N. Government Share
Excise Tax on Mineral Products