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SALIENT FEATURES OF DAO 2010-21 IMPLEMENTING RULES

AND REGULATIONS OF REPUBLIC ACT NO. 7942, OTHERWISE

KNOWN AS THE “PHILIPPINE MINING ACT OF 1995”

JOHN MIKEL P. ANSAO, EMMines and Geoscience Bureau RXII

OUTLINE

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCESMINES AND GEOSCIENCE BUREAUREGIONAL OFFICE NO. XII

I. Minerals

II. Mineral Resources

III. Mineral Resources Map of Region XII

IV. Mining Laws in the Philippines

V. 1987 Constitution (Article XII, Sec. 2) National

Economy and Patrimony

VI. Declaration of Policy (RA 7942)

VII. Areas Open To Mining Applications

VIII. Areas Close To Mining Applications

IX. Types of Major Mining Permits/Contracts

X. Requirements Imposed by the New Mining Law

XI. Responsible Mining

Minerals


A substance (such as quartz, coal, petroleum, salt,

etc.) that is naturally formed under the ground.

The term “Mineral” is often used in a much more

extended sense to include anything of economic

value which is extracted from the earth

Reference: https://www.merriam-webster.com/dictionary/mineral

Mineral Resources


Means any concentration of ores, minerals and/or

rocks with proven or potential economic value

Reference: www.congress.gov.ph/legisdocs/basic_17/HB01665.pdf

Minerals in Region XII


Gold

Copper

Iron

Coal

Limestone

Clay

And others


Tampakan

Maasim

Lake Sebu

1987 CONSTITUTION (Article XII, Sec. 2) National

Economy and Patrimony


All lands of the public domains, waters, minerals,

coal, petroleum, and other mineral oils, all forces of

potential energy, fisheries, forests or timber, wildlife,

flora and fauna, and other natural resources are

owned by the State. x x x The exploration,

development, and utilization of natural resources

shall be under the full control and supervision of the

State.

Mining Laws in the Philippines


PEOPLE'S SMALL-SCALE MINING ACT OF 1991(R.A. 7076) - AN ACT

CREATING A PEOPLE'S SMALL-SCALE MININGPROGRAM AND FOR

OTHER PURPOSES

DAO NO. 2015-03 - REVISED RULES AND REGULATIONS OF REPUBLIC

ACT NO. 7076 OTHERWISE KNOWN AS "PEOPLES SMALL SCALE

MINING ACT OF 1991"

Philippine Mining Act of 1995(R.A. 7942) - AN ACT INSTITUTING A NEW

SYSTEM OF MINERAL RESOURCES EXPLORATION, DEVELOPMENT,

UTILIZATION, AND CONSERVATION

CDAO NO. 2010-21 - PROVIDING FOR A CONSOLIDATED DEPARTMENT

OF ENVIRONMENT AND NATURAL RESOURCES ADMINISTRATIVE

ORDER FOR THE IMPLEMENTING RULES AND REGULATIONS OF

REPUBLIC ACT NO. 7942, OTHERWISE KNOWN AS THE “PHILIPPINE

MINING ACT OF 1995”

Declaration of Policy (RA 7942)


All mineral resources in public and private lands

within the territory and exclusive economic zone of

the Republic of the Philippines are owned by the

State. It shall be the responsibility of the State to

promote their rational exploration, development,

utilization and conservation through the combined

efforts of the Government and private sector in order

to enhance national growth in a way that effectively

safeguards the environment and protects the rights

of affected communities.

Areas Open to Mining Applications


Public or private lands not covered by valid and existing mining

rights and mining applications;

Lands covered by expired/abandoned/canceled

mining/quarrying rights;

Mineral Reservations; and

Timber or forest lands as defined in existing laws.

Areas Close To Mining Applications


Protected areas (national/natural parks, watersheds, wildlife

sanctuary, wilderness areas, high biodiversity areas,

mangroves, tree parks, game refuge, bird sanctuaries,

greenbelts, marine reserves/marine parks, etc.);

Old growth or virgin forests;

Forest and other government reservations (unless with

clearance from agency concerned);

Built-up areas (buildings, bridges, private plantations, etc.)

unless with consent from agency or party concerned;

Ancestral domains/lands unless with Free and Prior Informed

Consent from Indigenous Peoples

Other areas expressly prohibited by law.

Section 4. of DAO 2012-07 (IRR of EO 79)


a. Areas expressly enumerated under Sec 19 of

RA No. 7942 and Section 15 of DAO No.

2010-21, or the IRR of RA no. 7942 as may

be amended hereafter;

b. Protected areas categorized and establish

NIPAS under RA No. 7586;

c. Prime agricultural lands, in addition to land

covered by RA no. 6657 or the

Comprehensive Agrarian Reform Law of

1988, as amended, including plantation and

areas devoted to valuable crops, and SAFDZ

and fish refuge and sanctuaries declared as

such by the Secretary of DA;

Section 4. of DAO 2012-07 (IRR of EO 79)


d. Tourism development areas, delineated in the

national and local tourism development

plans; and

c. Other critical areas, island ecosystem, and

impact areas of mining as determined by

current and existing mapping technologies,

that the DENR may hereafter identify

pursuant to existing laws, rules, and

regulation, such as, but not limited to, the

NIPAS Act

Types of Major Mining Permits/Contracts


A. TENEMENTS ISSUED BY DENR-MGB1. Exploration Permit (EP)

2. Mineral Agreements

3. Financial or Technical Assistance Agreements (FTAA)

4. Mineral Processing Permits (MPP)

5. Industrial Sand and Gravel Permits (>5 to 20 hectares)

6. OTPs/MOEPs

B. PERMITS ISSUED BY LOCAL GOVT1. Small-Scale Mining Contracts

2. Quarry Permits

3. Sand and Gravel Permits (5 hectares & below)

4. Guano Permits

5. Gemstone Gathering Permits

6. OTPs/MOEPs

Qualified Person


Means any Filipino citizen of legal age and with capacity to

contract; or a corporation, partnership, association or

cooperative organized or authorized for the purpose of

engaging in mining, with technical and financial capability to

undertake mineral resources development and duly

registered in accordance with law, at least sixty percent

(60%) of the capital of which is owned by Filipino citizens:

Provided, That a legally organized foreign-owned corporation

shall be deemed a Qualified Person for purposes of granting

an Exploration Permit, FTAA or Mineral Processing Permit

only.

Maximum Areas Allowed under a Mineral Agreement


TYPE OF

MINING

RIGHT

MAXIMUM

AREA (hectares)

TERM QUALIFIED

PERSON

Exploration

Permit

32,000 onshore

81,000 offshore

2 years; renewable

to a maximum of 8

years

Individuals or

Filipino or foreign

corporations

Mineral

Production

Sharing

Agreement

5,000 hectares

onshore

40,500 hectares

offshore

25 years;

renewable for like

period

Individuals or

Filipino corporations

Financial or

Technical

Assistance

Agreement

81,000 onshore

324,000 offshore

25 years;

renewable for like

period

Filipino or 100 %

foreign corporations

Exploration Permit (EP)


Exploration permit as the initial mode of entry in

mineral exploration. Allows the permittee to

conduct exploration work for a limited period only.

Mineral Agreement


Means a contract between the Government and a

Contractor

Kinds of Mineral Agreements:

a. Mineral Production Sharing Agreement

(MPSA);

b. Co-Production Agreement (CA); and

c. Joint Venture Agreement (JVA)

Mineral Agreement


Mineral Production Sharing Agreement (MPSA) -

an agreement wherein the Government grants to

the Contractor the exclusive right to conduct mining

operations within, but not title over, the contract area

and shares in the production whether in kind or in

value as owner of the minerals therein. The

Contractor shall provide the necessary financing,

technology, management and personnel

FTAA


Means a contract involving financial or technical

assistance for large-scale exploration, development

and utilization of mineral resources.

Mineral Processing Permit (MPP)


Refers to the permit granted to a Qualified Person

for mineral processing

MPP shall be for a period of five (5) years from

date of issuance thereof, renewable for like

periods but not to exceed a total term of twenty-

five (25)

Requirements imposed by the New Mining Law

KEY INDICATORS Old Law (PD 463)

May 17, 1974

New Law(RA 7942)March 03,

1995

1. ENVIRONMENTAL PROTECTION &ENHANCEMENT PROGRAM (Progressive Rehabilitation)

2. ENVIRONMENT IMPACT SYSTEM (ECC Requirement)


KEY INDICATORS Old Law (PD 463)May 17,

1974


1995

3. CONTINGENT LIABILITY REHABILITATION FUND and MINE REHABILITATION FUND (Committees; Multi-partite Monitoring Team)


KEY INDICATORS Old Law (PD 463)May 17,

1974


1995

4. FINAL MINE REHABILITATION AND/OR DECOMISSIONING PLAN

5. FUNDs TO IMPLEMENT EPEP,FMRDP and MMT DEPOSITED IN GOVERNMENT BANK


KEY INDICATORS Old Law (PD 463)

May 17, 1974


1995

1. Consent of IP Communities (FPIC) and Royalty

2. Endorsement of LGUs

3. Community Development Programs during Exploration and Mining Operation (CDP/SDMP)

What is RESPONSIBLE MINING?


According to Undersecretary Mario Luis J. Jacinto,

mining can only be responsible if the development

of the country’s mineral resources is based on

technical feasibility, environmental

sustainability, social acceptability, and financial

viability.

TECHNICAL

FEASIBILITY



Assessment is centered on the technical resources

available to the organization. It helps organizations

asses if the technical resources meet capacity and

whether the technical team is capable of

converting the ideas into working systems.

Technical feasibility also involves evaluation of the

hardware and the software requirements of the

proposed system.

Financial Viability



is the ability to generate sufficient income to meet

operating payments, debt commitments and, where

applicable, to allow for growth, while maintaining

service levels

ENVIRONMENTAL

SUSTAINABILITY


Section 169 of DAO 2010-21. Environmental Protection

and Enhancement Program (EPEP)


refers to the comprehensive and strategic

environmental management plan for the life of the

mining project on which AEPEPs are based and

implemented to achieve the environmental

management objectives, criteria and commitments

including protection and rehabilitation of the

disturbed environment.


The Contractor shall allocate for its initial environment-

related capital expenditures an amount that shall

approximate ten percent (10%) of the total capital/project

cost or such other amount depending on the environmental/

geological condition, nature and scale of operations and

technology employed. Initial environment related capital

expenditures may include environmental studies and design

cost, waste area preparation, tailings/slime

containment/disposal system, mine waste disposal system,

wastewater/acid mine drainage treatment plants, dust control

equipment, air pollution control facilities, drainage system

and other environment-related mitigating measures and

capital expenditures.

Annual Environmental Protection and Enhancement

Program (AEPEP)


A Contractor/Permit Holder shall allocate for its

annual environment-related expense a percentage

based on the AEPEP which may approximate a

minimum of three to five percent (3-5%) of its

direct mining and milling costs depending on the

environment/geologic condition, nature and scale of

operations and technology employed.

Drill Hole Drill Sumps

Drillsite Rehabilitation

Environmental Protection - Exploration Stage

EXPLORATION

Progressive Rehabilitation and Final Decommissioning

PRODUCTION

DEVELOPMENT

FINAL MINE

DECOMMISSIONING

Slope Stabilization

and Erosion ControlReforestation

Nursery Production

MIMAROPA

Region

Rio Tuba Nickel Mining Corporation

Rio Tuba, Bataraza,

Palawan

Panoramic View 2012

Panoramic View 2013

Berong Nickel Corporation

MIMAROPA

Region

Coral Bay Nickel Corporation

Rio Tuba, Bataraza,

Palawan

2008

2010

2012

2013

Region II

Oceana Gold(Phils.), Inc.Kasibu, Nueva

Vizcaya and

Cabarroguis,

Quirino

2014

2017

2016

2017

Region II

Oceana Gold(Phils.), Inc.Kasibu, Nueva

Vizcaya and

Cabarroguis,

Quirino

Region VII

Carmen Copper

Corporation

Toledo, Cebu

City

2010

2015

2013

2015

Region VII

Carmen Copper

Corporation

Toledo, Cebu

City

SOCIAL

ACCEPTABILITY


Section 136-A of DAO 2010-21. Social Development

and Management Program (SDMP)


refers to the comprehensive five-year plan of the

Contractor/Permit Holder/Lessee authorized to

conduct actual mining and milling operations

towards the sustained improvement in the living

standards of the host and neighboring communities

by creating responsible, self-reliant and resource-

based communities capable of developing,

implementing and managing community

development programs, projects, and activities in a

manner consistent with the principle of people

empowerment.


The Contractor/Permit Holder/Lessee shall allot annually a

minimum of one and a half percent (1.50%) of the

operating costs necessary to implement:

a. 1.125% (75% of 1.50%) - SDMP

b. 0.150% (10% of 1.50%) - Program for the

Development of Mining Technology and Geosciences

(to build up resources and mineral discoveries,

improve operational efficiency and resource recovery,

and enhance environmental protection and mine

safety)

c. 0.225% (15% of 1.50%) - IEC Program


In the case of a holder of an Exploration Permit or a

Mineral Agreement or FTAA in the Exploration

Stage, the Permittee/Contractor shall develop and

implement a Community Development Program

(CDP) which implementation shall be supported by

a fund equivalent to a minimum of ten percent

(10.0%) of the budget of the approved two (2)-year

Exploration Work Program

Social Development &

Management Program

SDMP – Development/Production Stage

floor mat making

.. weaving

..candle making

. . .at Philex Mines, Benguet

Livelihood Projects at Rio Tuba Mining

(Palawan)

Social Development and Management

Program Projects


farm tractor distribution…

…poultry livelihood

SOCIAL DEV’T PROJECTS

Taganito Mining, Surigao del Norte

Resettlement Village. . .


South Western Cement Corp. (Malabuyoc,

Cebu) built new houses for affected

residents prior to mining operations.

Educational Assistance Scholarship Programs

School Facilities Support

. . .at Philex Boyungan, Surigao del Norte

Social Responsibilities

SMDP


Lafarge-Holcim AGATA MINING VENTURES, Inc

King-King Copper-Gold Project (KGCP)

• Royalty payments to IPs (Mining Act)

• At least 1% of gross output (subject to

negotiation with IPs) - Section 16 of DAO

2010-21. Ancestral Lands

Benefits to Communities &

Local Governments


Mineral Reservation – 100/hectare

Non-Mineral Reservation – 75/hectare

o 30% - Province

o 70% - Municipality

If the fee is not paid on the date specified, the

Contractor shall pay a surcharge of twenty-five

percent (25%) of the amount due in addition to

the occupation fees

Section 218 of DAO 2010-21 -

Occupation Fees


YES TO RESPONSIBLE

MINING!!!

mutual accountability, integrity and professionalism …...salient features of dao 2010-21...

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