Declaration of Policy Governing Principle Definition of Terms

Definition of Terms

 All minerals are owned by the State  Sustainable development  Ancestral lands
 Financial or technical assistance
 To promote rational exploration,  Block / meridional block
 Improving the total quality of life  Carrying capacity
agreement
development, utilization and  Foreign-owned corporation
 Principle of sustainable mining  Contiguous zone
conservation  Gross output
 Pro-environment and pro-people mining  Contract area
 Indigenous cultural communities (ICC)
 Role of government and private sector  Mining is temporary land use  Contractor
 Joint venture agreement
 To enhance national growth that  Optimum land use  Co-production agreement
 Minerals
effectively safeguards the environment  Ecological profile / eco-profile
 Progressive and engineered mine rehabilitation  Quarry permit
 Environmental compliance certificate
and protect the rights of affected  Quarry resources
 Current best practices (ECC)
communities  Private land
 Wealth-generating opportunities  Environment impact assessment (EIA)
 Mineral agreement
 Environment-responsible endeavors  Environmental impact statement (EIS)
 Mineral resource
 Exclusive economic zone (ECZ)
 Mining activities must be in accord with state  Mining operation
policies  Offshore v. onshore
 Mineral land




Government Management
Government Management

 Areas Open to Mining Operations

 Ownership of mineral resources in rel. with jura
regalia doctrine and Art. 12 of the Constitution
Republic Act No. 7942` 1. Public lands
2. Private lands
 Modes of exploration, development utilization and
`
processing (EDUP) of mineral resources
3. Timberlands
AN ACT INSTITUTING A NEW SYSTEM OF MINERAL 4. Forestlands
1. Direct
RESOURCES EXPLORATION, 5. Ancestral lands
2. Mineral contracts with contractors
 Areas closed to mining operations
 Mineral reservations 1. military and other government reservations
1. Reservation of strategic raw materials DEVELOPMENT, UTILIZATION, AND CONSERVATION 2. Near or under public or private buildings, cemeteries, `
2. Reservation for scientific, cultural or ecological archaeological and historic sites, bridges, highways,
value waterways, railroads, reservoirs, dams or other
infrastructure projects, public or private works including
 Submerged lands within the Contiguous Zone (CZ)
plantations or valuable crops
or Exclusive Economic Zone (EEZ)  those covered by valid and existing rights
 others when national interests so requires  areas expressly prohibited by law
 Periodic review of mineral reservations by the  areas covered by small-scale miners as defined by law unless
Secretary with prior consent of the small-scale miners
 Old growth or virgin forests, proclaimed watershed forest
 State recognition of rights of the IPs/ICCs to their
reserves, wilderness areas, mangrove forests, mossy forests,
ancestral lands (Free and prior consent rule) national parks provincial/municipal forests, parks,
 greenbelts, game refuge and bird sanctuaries as defined by
law and in areas expressly prohibited under the National
Integrated Protected Areas System (NIPAS) under Republic
Exploration Permit  Declaration of Mining Project Feasibility Act No. 7586, Department Administrative Order No. 25,
1. Must be made during the term of the permit series of 1992 and other laws
2. Must be filed with the Bureau
5. The permittee may apply for a mineral production 3. Accompanied with a work program for
Exploration Permit sharing agreement, joint venture agreement, co- development
production agreement or financial or technical  Effects of approval of mining project feasibility
 Concept of exploration permit assistance agreement over the permit area, which  Transfer or Assignment. – An exploration permit
 Who grants may be transferred or assigned to a qualified
application shall be granted if the permittee meets the
 Terms and conditions person subject to the approval of the Secretary
necessary qualifications and the terms and conditions of upon the recommendation of the Director
 Rights and obligations of a permittee
any such agreement:  Transfer or Assignment. – An exploration permit
1. right to enter, occupy and explore the area
2. Obligation to discuss with parties to be affected as may be transferred or assigned to a qualified
to the extent, necessity and manner of entry, occupation and person subject to the approval of the Secretary
Provided, That the exploration period covered by the
exploration upon the recommendation of the Director
exploration permit shall be included as part of the
3. Obligation to submit any conflict to a panel of arbitrators
exploration period of the mineral agreement or financial
4. Obligation to undertake exploration work on the area per permit
based on an approved work program or technical assistance agreement.


 MINERAL PRODUCTION SHARING AGREEMENT

GOVERNMENT

Exclusive right to conduct mining operations

within a CONTRACT AREA

GOVERNMENT MANAGEMENT

TECHNOLOGY PERSONNEL

GROSS OUTPUT
 Co-Production Sharing Agreement

Contractor State

Mining operations Minerals

Financing
Management
Other inputs
Technology
Personnel
 JOINT VENTURE AGREEMENT

Contractor

Company

State
 Joint Venture Agreement

Contractor • Equity shares

(exclusive right to • Earnings in equity
conduct mineral
operations in a • Share in the gross output
contract area)

• Equity shares
State • Earnings in equity
(owns the minerals) • Share in the gross output
 Joint Venture Agreement

Contractor – right to conduct

mining operations

Contractor – shares

Contractor – right to convert the

agreement to any other agreement
or FTAA but for the remaining period
only
 Filing and Approval of Mining Agreements

Regional Office / Mines and

Geosciences Bureau

SENR - approves

PRESIDENT – sends copies

to the Congress
 Contractor
met the
financial,
fiscal and
During the legal
subsistence
Due notice
obligations
of the
agreement

Withdrawal
from
Mineral
Agreements

Operations
no longer SENR’s
feasible or decision
viable within thirty
(30) days
 Not
Subject to
prohibited
the approval
of the SENR

Assignment
/ Transfer of
Mineral
Agreements

Does not
cover an Approval
FTAA through
inaction of
the SENR
 Financial guarantee bond in
favor of the Government
equivalent to the
expenditure obligation of
the applicant for any year
SWORN STATEMENT containing
a firm commitment of an
amount corresponding to the
expenditure obligation that will
be invested in the contract area:
Provided, That such amount
shall be subject to changes as
may be provided for in the rules
and regulations of this Act)
And such other generally accepted and
permissible financial schemes for raising
funds for valid business purposes, the
contractor shall not raise any form of
financing from domestic sources of funds,
whether in Philippine or foreign currency,
for conducting its mining operations for
and in the contract area

Proof of technical competence,
e.g., track record in mineral
resource EDU; details of
technology to be employed in the
proposed operation; details of
technical personnel to undertake
the operation
Terms and conditions of an FTAA
 mining operations shall be
conducted in accordance with
the provisions of RA 7942 and
its IRR
 Work programs and minimum
expenditures commitments;
 9. Preferential use of local
goods and services to the
maximum extent practicable
Representations and warranties
that the applicant has all the
qualifications and none of the
disqualifications for entering into
the agreement
 . Preference to Filipinos in all types
of mining employment for which
they are qualified and that
technology shall be transferred to
the Filipinos
 Effectively use of appropriate anti-
pollution technology and facilities
to protect the environment and to
restore or rehabilitate mined out
areas and other areas affected by
mine tailings
Representations and warranties
that the contractor has, or has
access to all the financing,
managerial and technical
expertise, the technology required
to promptly
 Secretary in accordance with the
implementing rules and regulations of
this Act, and further, subject to the
relinquishment obligations
5. Representations and warranties that,
except for payments for dispositions for its
equity, foreign investments in local
enterprises which are qualified for
repatriation, and local supplier’s credits
 and such other generally accepted
and permissible financial schemes for
raising funds for valid business
purposes, the contractor shall not
raise any form of financing from
domestic sources of funds, whether in
Philippine or foreign currency, for
conducting its mining operations for
and in the contract area
 With the
MINING
REGULATORY
Any
BOARD Area –
QUALIFIED
PERSON
PUBLIC or
PRIVATE
lands

QUARRY
PERMIT

For building
or If large-scale
construction – permittee
materials may enter
into a
mineral
 Grounds for
cancellation
of quarry
Quarry fees
permits Kinds of
and taxes
quarry
permits

QUARRYING
ACTIVITIES

Private
gratuitous Gemstone
gathering
mineral
agreements
with the
 Ore transport permit
 Social aspect of mining
 Mineral trading
 Training and
registration – registered
development of Filipino
with the DTI, accredited
manpower in all aspects
by the DENR, registration
of the mining activities
cc the MGB
 No absolute prohibition
 Mineral processing
in the employment of
agreement – secure from
TRANSPORT, SALE AND qualified foreign
SENR, term – 5 years,
PROCESSING OF MINERALS individuals on highly
max. of 25 years, FOCC
technical and specialized
not prohibited
mining operations

Social aspect of mining
 Training and development
of Filipino manpower in all
aspects of the mining
activities
 No absolute prohibition in
the employment of
qualified foreign individuals
on highly technical and
specialized mining
operations
 facilities; if not, the same shall
be turned over or donated
tax-free to the proper
government authorities,
national or local, to ensure
DEVELOPMENT OF MINING that said infrastructure and
facilities are continuously
COMMUNITIES, SCIENCE AND
maintained and utilized by the
MINING TECHNOLOGY
host and neighboring
communities
 Preferential employment of
Filipinos