CANCELLATION, REVOCATION AND TERMINATION

Grounds for cancellation, revocation and termination of a Mining Permit/Mineral

Agreement/FTAA:

a. Falsehood or omission of facts in the application for Exploration Permit, Mineral

Agreement, FTAA or other permits which may alter, change or affect substantially the
facts set forth in said statements

b. Non-payment of taxes and fees due the Government for two (2) consecutive years;
and

c. Failure to perform all other obligations, including abandonment, under the permits or
agreements;

d. Violation of any of the terms and conditions of the Permits or Agreements; and/or

e. Violation of existing laws, policies, and rules and regulations.

Cancellation of an Exploration Permit

 violation(s) by the Permittee of the terms and conditions

 failure to secure the required proof of consultation with project presentation to the
Sanggunian concerned within one (1) year from issuance of the Exploration Permit.

Cancellation/Revocation/Termination of a Quarry/Sand and

Gravel/Gratuitous/Guano/ Gemstone Gathering Permit

a. Failure to comply with the terms and conditions of the Permit and ECC, if applicable;

b. Violation of any provision of the Act and these implementing rules and regulations;

c. Failure to pay the excise tax for two (2) consecutive years;

d. Any misrepresentation in any statement made in the application or those made later
in support thereof;

e. If the commodity stipulated in the Permit has been exhausted before the expiry date
thereof; and

f. When national interest and public welfare so require or for environmental protection or
ecological reasons.
Upon cancellation of the Permit, the said areas shall automatically be reverted back to
its original status.

Cancellation/Revocation/ Termination of a Mineral Processing Permit

a. Failure to comply with the terms and conditions of the Permit and ECC, if applicable;

b. Violation of any provision of the Act and these implementing rules and regulations;

c. Failure to pay the taxes and fees due the Government for two (2) consecutive years;

d. Any misrepresentation in any statement made in the application or those made later
in support thereof; and

e. When national interest and public welfare so require or for environmental protection
or ecological reasons.

Suspension or Cancellation of Tax Incentives and Credits

1. Any violation of the Act, rules and regulations implementing the same or of the terms
and conditions in the Mineral Agreement or FTAA;

2. Any material misrepresentation or false statements made to the Bureau at any time
before or after the approval/conclusion of its Mineral Agreement or FTAA;

3. Whenever the project ceases to be viable and its continued operation would require
additional costs to the economy.

4. Withdrawal from the Mineral Agreement or FTAA; or

5. Refund and penalties.

PENAL PROVISIONS

The following are the punishable acts of omissions punishable under the Philippine
Mining Act of 1995 together with their respective penaltie/s:

A. False Statements. – It is an act committed by any person who knowingly

presents any false application, declaration, or evidence to the Government or
publishes or causes to be published any prospectus or other information
containing any false statement relating to mines, mining operations or mineral
agreements, financial or technical assistance agreements and permits.

B. Illegal Exploration. – It is an act by any person undertaking exploration work

without the necessary exploration permit.
C. Theft of Minerals. – It is committed by any person by extracting minerals and
disposing the same without a mining agreement, lease, permit, license, or steals
minerals or ores or the products thereof from mines or mills or processing plants.

D. Destruction of Mining Structures. – It is an act by any person who willfully

destroys or damages structures in or on the mining area or on the mill sites.
E. Mines Arson. – It is committed by any person who willfully sets fire to any
mineral stockpile, mine or workings, fittings or a mine, shall be guilty of arson.

F. Willful Damage to a Mine. – It is an act by any person who willfully damages

amine, unlawfully causes water to run into a mine, or obstructs any shaft or
passage to a mine, or renders useless, damages or destroys any machine,
appliance, apparatus, rope, chain, tackle, or any other things used in a mine.

G. Illegal Obstruction to Permittees or Contractors. – It is an act by any person

who, without justifiable cause, prevents or obstructs the holder of any permit,
agreement or lease from undertaking his mining operations.

H. Violation of the Terms and Conditions of the Environmental Compliance

Certificate. – It is committed by any person who willfully violates or grossly
neglects to abide by the terms and conditions of the environmental compliance
certificate issued to said person and which causes environmental damage
through pollution.

I. Illegal Obstruction to Government Officials. – It is an act by any person who

illegally prevents or obstructs the Secretary, the Director or any of their
representatives in the performance of their duties under the provisions of this Act
and of the regulations promulgated hereunder.

J. Other Violations. - Any other violation of this Act and its implementing rules and
regulations shall constitute an offense punishable by this act.
Can mining and environmental protection co-exist?
Yes, responsible mining and environmental protection can co-exist. Modern and responsible
mining does not destroy the environment; it just alters it to another land use. The future use of
the land after mining is designed and planned even before mining starts. The government also
requires that mining contractors institute an Environmental Protection and Enhancement
Program before the mining operation starts in order to protect the environment.

How can the Mining Act safeguard the environment?

The Mining Act and its Revised Implementing Rules and Regulations, DENR AO 96-40, as
amended, requires that an Environmental Protection and Enhancement Program covering the
period of the mineral agreement or permit be prepared and approved prior to commencement
of mining or exploration. The environmental program shall be incorporated in the work
program which the contractor or permittee shall submit as an accompanying document to the
application for a mining permit or exploration permit. The work program shall include not only
plans relative to mining operations but also to rehabilitation, regeneration, revegetation and
reforestation of mineralized areas, slope stabilization of mined-out and tailings covered areas,
aquaculture, watershed development and water conservation; and socioeconomic
development.

Who monitors the compliance of these environmental programs?

To ensure compliance of approved environmental programs, Multipartite Monitoring Teams
(MMT) are created to monitor their implementation. The expenses for such monitoring
activities are charged to the Monitoring Trust Fund that the Contractor is required to setup.
The MMT is composed of representatives from the environmental NGO; the affected
communities; the affected Indigenous Cultural Community(ies), if any; the Contractor; from
the DENR-Regional Office concerned and the representative of the Mines and Geosciences
Bureau-Regional Office as Head.

How are the interests of the host communities safeguarded?

The Mining Act requires that the Contractor shall assist in the development of its mining
community, the promotion of general welfare of its inhabitants and the development of
science and mining technology. In line with these, a five-year Social Development and
Management Program (SDMP) is prepared in partnership with the host and neighboring
communities. The SDMP should be able to provide alternative livelihood opportunities for
employees, their dependents, and the neighboring communities during the life-of-the-mine.
The mining company is mandated to spend at least 1% of the annual direct mining and milling
costs for social program.
Section 62 of the Mining Act also prescribes that the contractor shall give preference to Filipino
citizens in all types of mining employment within the country insofar as such citizens are
qualified to perform the corresponding work with reasonable efficiency and without hazard to
the safety of the operations. Priority is also given to the local residents in hiring workers for the
mining project.

What are the guarantees to protect the indigenous peoples?

Under Section 16 of the Mining Act, “No ancestral land shall be opened for mining operations
without the prior and informed consent of the indigenous cultural community concerned.”

In the event of an agreement with an indigenous cultural community, royalty payments are
also agreed upon by the parties. The said royalty shall form part of a trust fund for the
socioeconomic well being of the indigenous cultural community.

Does the Mines and Geosciences Bureau (MGB) have the technical
capability to audit the environmental management and social development
compliances of the mining companies?
Yes, the MGB has the technical capability to monitor the environmental management and
social development compliances of mining companies. Most of the technical staff has ample
training in environmental and social sciences from Australia, Japan, Netherlands, France or
Sweden. Also, the MGB is equipped with a modern laboratory and field equipment for on-site
analysis.