small scale mining in davao region - ph-eiti.org scale mining.… · dao no. 34, series 0f 1992 ......

Small Scale Mining

in

Davao Region

Department of Environment and Natural Resources

MINES AND GEOSCIENCES BUREAU-XI

By: Socorro C. Oquendo MGB-XI

On January 23, 1984 then President Ferdinand E.

Marcos issued Presidential Decree No. 1899 “Establishing

Small Scale Mining as a New Dimension in Mineral

Development

MAO MRD-41, Series of 1984 – Rules and Regulations

Governing the Granting of Small Scale Mining Permits

Under PD 1899 (June 4, 1984)

Then on June 27, 1991, Her Excellency President

Corazon C. Aquino issued Republic Act No. 7076 “An Act

Providing a People’s Small Scale Mining Program and for

Other Purposes”

DAO No. 34, Series 0f 1992 - Rules and Regulations to

Implement RA 7076, Otherwise Known as the People’s

Small Scale Mining Act of 1991 (July 14, 1992)

EXECUTIVE ORDER NO. 79

INSTITUTIONALIZING AND IMPLEMENTING REFORMS IN

THE PHILIPPINE MINING SECTOR PROVIDING POLICIES

AND GUIDELINES TO ENSURE ENVIRONMENTAL

PROTECTION AND RESPONSIBLE MINING IN THE

UTILIZATION OF MINERAL RESOURCES


SECTION 11. Measures to Improve Small-Scale Mining

Activities. To improve and address issues on small-scale

mining, the following measures shall be undertaken:

a)Small-scale mining activities shall comply with RA NO.

7076, or the People’s Small-Scale Mining Act of 1991, and the

Environmental Impact Statement System requirements under

Presidential Decree (PD) No. 1586;

b)Pursuant to RA No. 7076, small-scale mining operations

shall be undertaken only within the declared People’s Small-

Scale Mining Areas or Minahang Bayan;


c) Pursuant to Section 24 of RA No. 7076, P/CMRBs in

provinces and cities where they have not been constituted

shall be operationalized within three (3) months from the

effectivity of this Order;

c) Small-scale mining shall not be applicable for metallic

minerals except gold, silver, and chromite, as provided for

in RA No. 7076;

c) The use of mercury in small-scale mining shall be strictly

prohibited; and,

c) Training and capacity building measures in the form of

technical assistance for small-scale mining cooperatives

and associations shall be conducted by the concerned

government agencies.

INVENTORY OF SMALL SCALE MINING

IN DAVAO REGION CY 2013 - 2014

BACKGROUND

Lack of available data on Small Scale Mining (SSM) in the region/country;

Inclusion of small scale mining in the drafting of Mining Industry Cluster Roadmap of the Region was a concern raised by RDC;

National concern of the Mines and Geosciences Bureau (MGB) to make all its Regional Offices conduct an inventory of all (legal and informal) SSM activities.

Small Scale Mining Communities......

Our travel to the sites......

2,029 Tunnels............

Rodmills/Ballmills 1,911

Rodmills/Ballmills

856 Processing Plants......

15 Hydraulicking Areas.....

DISTRIBUTION OF SSM

ACTIVITIES IN THE REGION

AREA

# OF TUNNELS

# OF ROD/

BALLMILLS

# OF PROCESSING

PLANTS

# OF HYDRAULICKING

AREA

# OF OPEN PIT

AREA

A. Davao Del Sur Prov.

1. Malita Municipality 1 - - - -

Total

1

-

-

-

-

B. Davao Del Norte Prov.

1. San Isidro Municipality 4 - - - -

Total

4

-

-

-

-

AREA

# OF TUNNELS

# OF ROD/

BALLMILLS

# OF PROCESSING

PLANTS

# OF HYDRAULICKING

AREA

# OF OPEN PIT

AREA

C. Davao Oriental Prov.

1. Tarragona Municipality 57 - 2 2 -

2. Gov. Generoso Municipality 21 - - - 3

3. Boston Municipality 10 7 2 - -

4. Manay Municipality 10 7 3 1 -

5. Lupon Municipality 6 - - - -

6. Banaybanay Municipality - - - - 3

Total

104

14

7

3

6

AREA

# OF TUNNELS

# OF ROD/

BALLMILLS

# OF PROCESSING

PLANTS

# OF HYDRAULICKING

AREA

# OF OPEN PIT

AREA

A. ComVal Province

1. Pantukan Municipality 1,108 1,082 384 9 -

2. Maco Municipality 193 222 163 - -

3. Nabunturan Municipality 169 174 73 - -

4. Mabini Municipality 109 93 42 1 -

5. New Bataan Municipality 108 79 50 - -

6. Maragusan Municipality 94 113 70 2 -

7. Compostela Municipality 96 105 18 - -

8. Monkayo Municipality 43 29 48 - -

9. Mawab Municipality - - 1 - -

Total

1,920

1,897

849

12

-

AREA

# OF

TUNNELS

# OF ROD/

BALLMILLS

# OF PROCESSING

PLANTS

# OF HYDRAULICKING

AREA

# OF OPEN PIT

AREA

A. ComVal Province

1,920 (95%)

1,897 (99%)

849

(99%)

12

(80%)

-

B. Davao Oriental Prov.

104

14

7

3

6

(100%)

C. Davao Del Norte Prov.

4

-

-

-

-

D. Davao Del Sur Prov.

1

-

-

-

-

OVERALL TOTAL

2,029

1,911

856

15

6

Tailings Ponds....

Rivers/Creeks around.........

OBJECTIVES OF DAO 2015-03:

A. To implement the People’s Small Scale Mining

Program as provided for under RA 7076;

B.To effect an orderly, systematic and

ecologically balanced administration and

disposition of small scale mining areas;

C.To regulate the small scale mining industry,

with a view of enhancing its growth and

productivity, as well as ensuring environmental

protection; and

OBJECTIVES:

D. To provide technical, financial and marketing

assistance; ensure efficient collection of

government revenues; adopt best practices;

and promote good governance and integrity

in the industry.

Salient Features of DAO 2015 - 03

CHAPTER III (Registration, Licensing, Daclaration of

Minahang Bayan and Awarding of SSM Contracts):

A. NO SMALL SCALE MINING

Outside a Minahang Bayan;

Without a small scale mining contract;

Unless registered with the Board.


B. REGISTRATION OF MINERS

ALL PERSONS undertaking small scale

mining shall register as small scale miners

with the Board.

C. LICENSING OF SSM CONTRACT APPLICANTS

An applicant for a ssm contract shall first secure

a ssm license from the Board.

Application Fee of Php 1,000 payable to MGB.

D. AREAS OPEN FOR DECLARATION AS

MINAHANG BAYAN

1. Areas already occupied and actively mined by small scale

miners before August 1, 1987;

1. Public lands covered by mining applications;

1. Public lands covered by existing mining

permit(s)/contract(s) which are not active mining areas;

1. Private lands, subject to the consent of the landowner(s)

and a royalty payment;

1. Ancestral Lands/Ancestral Domains, subject to

CADT/CALT.

E. APPLICATION TO ENTER INTO A

SMALL SCALE MINING CONTRACT

Small scale miners organized as an individual

miner or a cooperative of small scale miners with a

capacity to contract shall file with the Board a

small scale mining contract application within an

area situated in a Minahang Bayan.

F. EXTENT OF SMALL SCALE MINING

CONTRACT AREA

The Board shall determine the reasonable size

and shape of the small scale mining contract area

following the meridional block system established

under RA No. 7942, otherwise known as the

Philippine Mining Act of 1995.

But in no case shall the applied area be less than

1.25 hectares and more than 20 hectares per

small scale mining contract.

G. AWARD OF PEOPLE’S SMALL SCALE

MINING CONTRACT

Within thirty (30) days upon receipt of the

application, the Regional Director, as

Chairperson of the Board, shall award the

small scale mining contract.

H. TERMS & CONDITIONS OF SMALL SCALE

MINING CONTRACT

1. Contract may cover non-metallic; the

metallic minerals shall only be limited to gold,

silver or chromite; and shall have a term of

two(2) years, renewable but not to exceed a

total of six (6) years.

2. The ore produced shall not exceed 50,000

metric tons annually and shall be processed

in a custom mill.

H. TERMS & CONDITIONS OF SMALL SCALE MINING CONTRACT

3. The ssm contractor shall:

Conduct ssm in accordance with the Two-year

Work Program, PEIMP, ASHP and CDMP and

the ECC;

Comply with pertinent rules and regulations on

environmental protection and conservation,

reportorial requirements and other conditions

attached to the contract.


CHAPTER IV (Mineral Processing):

A. SMALL SCALE MINERAL PROCESSING

Undertaken only thru centralized custom

mills located in mineral processing zones

under a Mineral Processing License (MPL);

No use of mercury.

B. APPLICATION FOR MPL

With complete mandatory requirements;

Payment of the filing fee of 50,000 Php.


CHAPTER V (Supervision):

A. ADMINISTRATIVE SUPERVISION OVER SSM

The Secretary through his representative

shall exercise direct supervision and

control over the programs and activities of

the small scale miners within the Minahang

Bayan.

B. P/CMRB

The Board shallo exercise the following major powers

and functions, subject to review by the Secretary:

Declares Minahang Bayan;

Reserves for the future, mineralized ares/mineral

lands for declaration as Minahang Bayan;

Awards ssm contracts to small scale miners

organized as individual miner or coop;

B. P/CMRB

Formulates its own guidelines and implements

rules and regulations related to RA No. 7076;

Settles disputes, conflicts or litigations over

conflicting claims;

Submits to the Department and the Bureau a

comprehensive Annual Report of the overall

operation of the Minahang Bayan; and

Performs such other functions as may be

necessary to achieve the goals and objectives of

RA 7076.

COMPOSITION OF P/CMRB

1. Regional Director or his/her duly authorized representative as

Chairperson;

2. Provincial Governor or City Mayor or his/her representative as

Member;

3. One (1) small scale mining representative as Member;

4. One (1) large scale mining representative as Member; and

5. One (1) representative from an environmental non-government

organization as Member.

Technical Secretariat/Staff shall be provided by the Regional Office

concerned.


CHAPTER VII (Environmental Protection, Social

Development, Safety and Health):

A. ENVIRONMENTAL PROTECTION AND

SOCIAL DEVELOPMENT

Small scale mining contractor/mineral

processor shall abide by the approved ECC,

PEIMP and CDMP, and comply with all

applicable environmental laws, rules and

regulations.

B. SAFETY AND HEALTH

Small scale miners/mineral processing plant

workers/small scale mining contractor/mineral

processor shall abide by the provisions of

DAO No. 97-30, otherwise known as the

“Small Scale Mine Safety Rules and

Regulations,” its approved ASHP, and other

pertinent rules and regulations.


CHAPTER VIII (Fiscal and Regulatory Provisions):

A. PAYMENT OF TAXES AND GOVERNMENT

PRODUCTION SHARE

National and local taxes due as provided for in

the National Internal Revenue Code;

Royalty equivalent to 5% of the gross output, for

small scale mining within mineral reservations; &

Government production share.

B. PAYMENT OF OCCUPATION FEE

Payment of Php 100.00 per hectare or a fraction

thereof per year;

Payable to the municipality where the ssm contract

area is located;

The initial occupation fee shall be paid on the date

the ssm contract is approved.

C. PEOPLE’S SMALL SCALE MINING

PROTECTION FUND

15% of the national government’s share of the

internal revenue tax or production share;

It shall be used primarily for information

dissemination and training of small scale miners

on safety, health and environmental protection,

establishment of Mine Rescue & Recovery Teams;

To address the needs of the small scale miners

brought about by accidents/fortuitous events;

The Board shall act as Trustee of the Fund.


CHAPTER XI (Penal Provision):

A. PENAL SANCTIONS

Violation of any of the provisions of RA No. 7076

or this Administrative Order shall, after

conviction, be penalized with imprisonment of

not less than six (6) years, and shall include the

confiscation and seizure by the Board of the

equipment, tools and conveyance used in the

commission of the offense.

AREA

NO. OF DECLARED MINAHANG BAYAN

AREA/S

REMARKS/STATUS

1. COMVAL

9

(668 has.)

7 areas endorsed by PMRB for approval/still pending.

2. DAVAO ORIENTAL

NONE

1 area assessed but not recommended; 1 area recommended for further study.

3. DAVAO DEL NORTE

NONE

2 areas recommended for further study.

3. DAVAO DEL SUR

NONE

--------

TOTAL

9

ISSUES AND CONCERNS

SSM activities in the region caused the existence or

presence of most common issues and concerns often raised

against mining:

Despite the actions taken and the stoppage orders issued

by the MGB and the local government units concerned, the

illegal mining operations continue;

Many of the sites occupied by illegal small-scale mining

operations seated in far-flung areas are difficult or totally not

accessible to motor vehicles hence enforcement of stoppage

and monitoring is also very difficult;

Small-scale mining have already become the main source

of living in some areas whereby total and abrupt stoppage

thereof will surely cause social unrest and possibly, peace

and order problem;

Many small scale mining operations are causing

environmental degradation and contributes to the

deforestation and water contamination to water resources in

the locality;

The government incur losses in its share of revenues in

the form of taxes, etc. and most, if not all the gold produced

in the operations, are not being sold to the Bangko Sentral

ng Pilipinas;

Allegedly, there are local officials condoning or are

engaged in both legal and illegal small scale mining

activities.

small scale mining in davao region - ph-eiti.org scale mining.… · dao no. 34, series 0f 1992 ......

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