Republic of the PhilippinesHOUSE OF REPRESENTATIVES

Quezon Cify

Fifteenth CONGRESSFirst Regular Session

House Bil l No. 37 6 3

' ! i .u' i \

I '",rt ' 'n

Introduced By Hon. KAKA J. BAG-AO, Hon. WALDENHon. TEDDY BRAWNER BAGUILAT, JR., Hon. RUFUS B.

Hon. MAXIMO B. RODRIGIJEZ, JR., Hon. CARLOS M.and Hon. ROILO S. GOLEZ

F. BELLO,RODRIGUEZ,PADILLA,

EXPLANATORY NOTE

The country's natural resources form a great part of the nation's wealth. Consequently, allactivities which have the propensity to impair the quality of our natural resources should besubjected to scrutiny before being allowed to continue.

One of the industries which have massive societal and environmental impacts is the miningindustry. It is essentially an extractive industry which results in the depletion olnonrenewable resources.

However, despite the naturally polluting tendency of the mining industry, the Philippinegovernment's legislation and policies are largely pro-mining beginning with the passage ofthe Phil ippine Mining Act or Republic Act 7942 in 1995. I t sought to l iberal ize the miningindustry to foreign investment in order to meet the demands of globalization. The law waseventually declared unconstitutional by the Supreme Court in the leading case of La BugalB'f aan Tribal Association v. Ramos, a decision that was overturned less than a year later. Thehistory of that case mirrors the proclivity of the government to act against its better judgmentonce the so-called profits of mining are brought into the picture. Indeed, the law hascontinued to serve as a platform for every administration's determined pursuit of mining asits most lucrative attraction for foreign investors, especially the previous administration. Inexecutive issuances EO 270 and 270-A, the previous administrat ion outl ined a national pol icyagenda for the revitalization of the mining industry as a pillar of growth. It declared that thevast mineral resources of our country should be utilized for economic development andpoverty alleviation, especially in the rural areas. It further fast-tracked the procedures forprocessing mining applications and diluted the authority of the local governments overmin ins issues.

Considering the history of serious mining accidents and the mining co{porations' poor recordin complying with our inadequate mining laws, the government's deference to the miningindustry should be better examined. The baseless messianic view that the mining industrywill attract foreign investment and save the country's faltering economy should be pittedagainst the numerous controversies over the massive social, economic and environmentalimpacts of the mining industry. In particular, the easy access of mining companies intoindigenous peoples lands and ancestral domains and the controversy over mining inwatersheds and other protected areas must be studied thoroughly.

Furthermore, the devastating effects of mining on the health of the environment andcommunities on the long-term and at a large scale are both well-documented andunprecedented. Mining is an intrinsically dirty, wasteful and destructive industry itthreatens 40% of the world's undeveloped forests, causes the emission of I42 million tons ofacid-rain-causing sulphur dioxide each year,, and consumes from seven to 10 percent of theworld's energy. The creation of one gold ring generates three tons of waste, mostly leftbehind in indigenous peoples'domains where half of the world's gold are mined.

In the Philippines, the Marcopper disaster in Marinduque is one of the most notoriousexamples dramatizing the Philippines' own struggle with the hazards of mining. More thanthree million tons of toxic sludge were released into the Boac River in 1996 when a drainagetunnel burst, rendering the river biologically dead. This after two decades of environmentalhavoc had already been brought about by Placer Dome, the Canadian mining firm responsiblefor the Marcopper mines, which caused the dumping, via surface disposal, of more than 200million tons of mine tailings directly into the shallow waters of Calancan Bay, coveringcorals and sea grasses and the bottom of the bay with 80 square kilometers of tailings.

Yet, despite these statistics and experiences, our policy-makers have championed mining asthe virtual savior of our economy and made it a "pet project" of sorts, laboring under theillusion that it can still bring high revenues for the goverrrment. The reality, however, is thatthe mining industry is currently one of the weakest sectors in the global market. The bigtransnational mining companies have cut their workforces by the thousands and miningprojects have been shelved with the global financial crisis which Karsten Fuelster, a miningdivision business development official for the International Finance Corp. have said isleading to "substantial short-term demand destruction." He adds that prices for metals apartfrom gold are expected to fall and projects will get delayed and exploration curtailed, while"funding difficulties will get worse" before they get better and that fund-raising will become"nearly impossible for non-producing companies" and that "many will not survive."

Even historically speaking, mining has never been shown to drive national economicdevelopment and is not expected to do so now, especially vis-a-vis the social, cultural,environmental, health, and even the economic costs it entails. In the Philippines, mineral-richprovinces continue to have higher poverty incidences despite the operations of miningcompanies. Instead, mining has exacerbated conflicts, resulted in the displacement ofindigenous peoples and other rural communities, heightened the numbers of extra-judicialkillings and of human rights violations, and caused and exacerbated the pollution anddepletion of natural resources which for generations have sustained livelihoods and definedour people's way of life. To pour resources into an industry which contributes only 1.2% ofthe country's GDP, instead of, say, into the agricultural sector which accounts for 3 5.7% of

the country's labor force and economically contributes more to the country's GDP at lTo/olsimply defies good common sense.

The promotion of mining, therefore, in this time of crisis will translate not only to badinvestment but also to the waste of what little resources we have remaining, these resourcesreferring to both money in the bank and to those that are most essential such as water andfood. There is an obvious and urgent need to shift our present framework on mining. We needto rethink our current priorities and recognize that it not only impossible but also unwise toseparate mining from the discussion of resource use, water, food security, environment,human rights, indigenous peoples and economics.

If there is truly a need for mining and if we are to engage in the mining industry as a nation,then there are certain safeguards that we need to establish to be able to meet the needs of ourpeoples now and in the future. There must be a shift of land use priorities towards sustainabledevelopment and food security. The benefits of mining for the Filipino peoples should clearlybe established before even considering erposing our land and our people to the risks andhazards that are entailed.

Against this backdrop, the exploration of our mineral wealth must be understood within thecontext of environmental protection and sustainable development. The policies of the Stateshould be aimed at preventing disasters rather than mere remedial in nature. Since the effectsof the mining industry are irreversible and the remedies or rehabilitation of the environmentafter disasters have occurred would be merely an exercise in futility, it would be better toformulate policies that will abate the occurrence of such deleterious events.

In this regard, the policies, principles and provisions contained in the 1995 Mining Act sorelylack what is needed to effectively respond to the needs of the Filipino people and to survivethe current economic and environmental crises that we together face. This bill is thereforeproposed to take the place of the current mining law and, among others:

- guarantee that the exploration, development and utilization of mineral resources areprimarily for the benefit of the Filipino people;

- prioritize more viable and more sustainable livelihood choices for communities,giving utmost imporlance to food security and livable conditions for the peoples;

- ensure that the gains from the mining industry would be maximized whilepreventing or mitigating its adverse effects of the same;

- recognrze that the issue of environment is local and prioritrze local participation indecisions surrounding mining; and

- protect human rights of communities and individuals and impose harsh penalties forthe violations thereof.

In view of the foregoing, the early passage of this bill is thus earnestly sought.

(;WG-AO HON. WALDEN F. BELLO

Akbayan PartylistKA

Partylisi

I Based on figures for the year 2008.

HON. TEDD RAWNER BA T, JR.Lone Distrj Ifugao

HON. RUFUS B. GUEZ2nd Distfict, Cagayai 6 Oro City

.1/ / I -----\___/ (-/' o' 1r

HqN. CARLOS M. PADTLLA\ton) District, Nueva Viscaya

t

"l/HON. MAXIMO B. RODRIGUEZ. JR.Abante Mindanao Partylist

HONI ROILO S. GOLEZSecond District, Parafraque City

Republic of the PhilippinesHOUSE OF REPRESENTATIVES

Quezon City

Fifteenth CONGRESSFirst Regular Session

House Bit l No. 37 6 3

Introduced By Hon. KAKA J. BAG-Ao, Hon. WALDEN F. BELLO,HON. TEDDY BRAWNER BAGUILAT, JR., Hon. RUFUS B. RODRIGUEZ,

Hon. MAXIMO B. RODRI GIJEZ,JR., Hon. CARLOS M. PADILLA, ancl Hon. ROILO S.GOLEZ

I ANACT2 TO REGULATE THE RATIONAL EXPLORATION. DEVELOPMENT AND UIILIZATION3 OF MINERAL RESOURCES.AND TO ENSURE THE EQUITABLE SHARINGOF4 BENEFITS FOR THE STATE. INDIGENOUS PEOPLES AND LOC.AL COMMUNITIES.5 4ND FOR OTHER PURPOSESo

7 Be it enacted by the Senate an(l lhe House of Representatives of the phitippines in Congress8 assembled:I

IO CHAPTER I. DECLARATION OF POLICIESil

12 Section l. Short Title. This Act shall be known as the "Philippine Mineral Resources .{cl ofI3 2010" .t4l5 Section 2. Declaration ofPolicl. It is herebl declared that it is the policy ofthe State to:16 a) \laintain peace and order. prorect rif-e. liberty and property and promote the general17 ri elfare:l8 b) Protect and advance the right of the people to a balanced and healthful ecology in19 accord with the rhl,thm and harmonr. ol naturei

Page I of43

I c) Value the dignity of everv human pefson and guarantees fgll respect for hunran2 r ights;

3 d) Promote social just ice in al l phases of national development;4 e) R-ccosnize and promote the r ights of indigenolrs cultr-rral cornmlnit ies within,5 the {': ' ltrcrt,oll< of itational r-rnity ancl cievelopment;6 0 Protect ancl protnote t l ic r ight to health of the people ancl inst i l l health7 conscior- lsness among them;8 g) Pttrstte an independent foreisn pol icy. In i ts relat ions with other states the9 paramount consideration si-',rll be national sovereignty', territorial integrity,

10 national interest, and the r ight to self-cletermination;11 h) Develop a self-rel iant and inclependent national economy effect ively control lecl12 L . : I . i l i p i r ros .l3 i ) Snsure thr autonom) ' o f local gove ' rments;

14 i) Ci"e hiqhe st priori tv to the enactmcnt of measl lres that protect ancl enhance thel-s r ight of 'al l the people to human dignity, reduce social. econoffr ic, ancl pol i t ical16 inequali t ies, and remove cultr-rral ineqr-r i t ies by equitably dif fgsing wealt6 and17 pol i t ical po\\ ier for the common good;18 k) E,ncoltraqe non-governmental, cornlnunity-basecl. or sectoral organizations that19 pl'or11t)tu. .tire rvellbr'.: of ti-re nation:20 l) Adopt and accept the general ly accepted principles as embodied in the2l International Covenant on Civi l and Poli t ical Rights, International Covenant on2?' l lconomic. Sociel. C'"r l tural Rights. UN Declaratiorr on the Rights of23 Inc l igenous Peoples. UN Convent ion on Biodivers i tv and othcr appl icable24 t international instruments.2526 Section 3. To this end, the State shal l also endeavor to achieve an ecological ly souncl,27 economical ly viable, gender Iair, eqr-r i tacie system of lancl and resource management tSat28 upholds the humatr r iglrts of indigenous peopies and local communit ies towarcls29 susta inable develonment .

3031 Sect ion 4. The erplorat ion. c leveloprnent ancl ut i l izat ion of natural resources must32 complv rv i th the pr i rrc iples of intergenerat ional lcsponsibi l i tv.1 1

, ; Section 5. The j trcl iciotrs stervardship o1'our mineral resosrces reguire that:3 5

36 (1) The State and i ts members shel l sirare in the burclen of satisl i ing the need for3l mineral resoLlrces prirnari ly througir leusing ancl recycl ing exist ing mineral3I prodr"rcts;

3 9

40 (.2) In land and u'atcr Lrse. the procluction of sufficient foocl fi 'ee from pollLrtion

Pase 2 of 43

,

1 towards food securitv shall always be the priority;2

3 (3) l 'he State and its mernbers shall develop its hurnan resollrces ancl encollrage the4 evolut ion of i ts own appropriate technologies;5

6 (a) The commLlnit l 'shal l act ivelv parl icipate in the stervardsfi ip ol 'nr ineral resources.7 Commltnitv-based init iat ives sl ial l L're encouragecl and sr-rppol ' ted.89 (5) Mining operations shal l not in any way create or exacerbate confl icts.

1 01 1 (6) Thc ir t tcgri t ,r ' of thc cnvironrnerrt is not compromised.1 2

I3 CHAPTEIT I I . SCOPE AND CENERAL PRINCIPLES1 4

l5 Section 6. Scope. This Act shal l govern the ownership, management and governance16 of ore minerals onshore, as rvel l as qlrarry resoLrrces, sancl ancl gravel, glrano, and17 gemstones, ancl the conservation, erplorat ion. developrnent, ut i i izat ion, processing and18 transportation tirereof. The or,vnership, management and governance of petroleum and19 coal shal l be governed bv special lau,s. Offshore mining shal l also be governecl by special20 larvs.

I

22 Section 7. Ore rninerals form part of the country's irreplaceable and pon-renewable

23 natural 'uvealth and capital. The conservation of our mineral wealth is a paramount pgbl ic24 interest and mineral resol lrces shal l be r-rt i l ized only in a rat ional manner. The economic25 benefi ts derived from mining shai l be eqr-r i tably distr ibuted by, among others, priori t iz ing26 development for local contr jLrnit ies and al l ot i-rer stalceholders direct iy affectecl by mining27 operations.

2829 Section 8. The management of mineral resoLrrces shal l be a sharecl concern ancl30 responsibi l i ty among the national government. corporations. al l levels of local31 government, and the communit ies affected by the explorat ion, clevelopment, and32 uti l izat ion of mineral resoLlrces.a 1

a; Section 9. Thc ertract iott o{ 'nt incral l 'esol lrces shal l only be al lou,ecl i f the ecological35 and social benefi ts and costs of mining lar outrveigh ecological ancl social benefi ts and36 costs from other land LISes. The anticipated cost of environmental and social impacts on37 the affected local commLlnities, rvhich shall at all times be preventecl ancl/or mitiqated3B through the al location o1'sr-rf f icient funds for this purpose.3 9

40 Section 10. f l -re State sital i accord support 1o commr-rnit ies depenilent on small-sca.le41 mining whose operations shal l str ict ly adhere to the provisions of this law.

Page 3 of43

121J

AT

56'7

89

t0il12' l aI J

14t516171819202 l22a aL )

2425262728293031) L

33a AJ +

35361 n) /38394041

Section I 1. Subject to their r ight to self-determination, indigenous culturalcommllnities/indigenolrs peoples (lCCs/lPs) own and have the responsibility to mani.rgethe mineral resources in their respective ancestral domains. fiee fi'om externalmanipulation, interference, force threat, intimiciation, coercion and otlier analogous acts.The State shall support indigenous cr-rltural communities in cieveloping capacities toeffectively exercise their r ight and responsibil i ty.

Section 12. Minine shall be l imited in scale in accordance r,vith this Act.

'sect ion I3. Mineral resol lrces development, ut i l izat ion and processing shal l be

reserved for Fi l ipino cit izens ancl for Fi l ipino corporations. Explorat ion shal l ber-rnder-taken directlv bv the State for tlte benefit of the nation.

Sect ion 14. Remining and recyc l ing of minera l resources shal l be pr ior i t ized over the

opening of ner,v mines to maximize and recover the remaining minerals resources fromthe rejects or rvastes of previoLls mines and mining operations.

Se c t ion 15. Thecountry.

sh:rl l priorit ize the rel-rabil i tation of the abandoned mines in the

Section 16. The State shall priorit ize the development of mineral resources needed f,ornational development and the creation of dornestic processinq capacity for industrialmetals and other labor-intensive clor.vnstream industries. Mine planning shall beconducted to meet this principle. In this regard, the State shall formr-rlate a MineralsUtilization Framer.vork that will support national development based on tl-re principles ofsr-rstainable development. This ftamer,vorl< rvill ciefine minerals to be extracted, volume tobc ertracted and rt'licrt to be extrected. This sirall be matched rvith the aptloved rniningareas as identif iecl as iclentif ied by tl-re CoLrncils. These rnatched areas are elisible formining operations.

CFIAPTER iII. DEFINITION OF TERMS

Section 17. Dcfinit ion of terms - As usecl in ancl for the pl lrposes of this Act, thefo l lorv inq terms. u 'hcther uscd in s ingular cr in p lura l form, shal l rncr : r :

a. Abarrdonmcnt - the act of the contractor leaving a mine rvithor-rt rehabilitation orcompleting such rehabil i tation despite the legal obligation to do the same;

b. Acid mine drainage - the dissolution, mobil ization and transportation of toxicmetals f i 'om rocks resulting from the chemical reaction of the acid-qeneratins

Page 4 of 43

1

21

456l89

101 lt 213141516171819

202122. ! a

z )a , lL+

2526272829

30a 1J I

) L

.,.,J J

a / lJ +

3536. . ,) /383940

ctb .

c .

minerals in rock and u,aste rnaterials having high permeabil i ty to both air andrainfall and other urater inflo''r,s r,r,hen land is opcned up for rnining ancl initiatesthe chemical reaction, resr-r l t ing to a perpetual machine of acid generation.

Ancestral domains al l areas general lv belonging to indigenous culturalcommunit ies/ indigenous peoples ( lCCs/lPs) comprising lands, inland waters,coastal areas, and natural resources tl-rerein, held under a claim of ownership,occupiecl c-r i possessecl by ICCs/lPs, by themselves or thror-rgh their ancestors.commlrnal lv or individual ly since t ime immemorial, continr-rously to the present

except rvhen interrupted by war, fbrce majeure or displacement by force, deceit,stealth or as a conseqLlence of government projects or any other voluntary deal ingsentered into b1' qovernment and private individuals/corpo:i t ions. and r,vhich arenecessary to ensure their economic, social and cultural u'elfare. I t shal l include

ancestral lands, forests, pasture , residential, agricultural, and other lands

individual ly owned whether al ienable and disposable or otherwise, huntinggrouncls, burial grounds. rvorship areas, bodies of rvater, mineral and other natural

resoLrrces, and lands tvhich nr:1\ ' no longer be exclusively occr-rpiecl by ICCs/trPs

but from r,vhich they traditionally had access to for their subsistence and traditional

activi t ies, pafi ict-t lar ly the horne ranges of ICCs/lPs who arc st i l l nomadic and/or

shif t ing cult ivators

Ancestral lands - lands occupied, possessed and uti l ized bf indivicluals, famil ies

and c lans n,ho are members of the ICCs/ lPs s ince t ime immemor ia l . by themselves

or t l r rough thei r predecessors- in- in terest , under c la ims of ind iv idual or t rad i t ional

group orvnership, continuously, to the present ercept when interrLrpted by war,

force rnajeure or displacement by force, deceit, stealth, or as a consequence ofgovernment projects and other voluntal i , deal ings entered irrto by government andprivate incl ivicluais/corporations including, but not l imited to, residential lots, r ice

terraces or paddies, private l'orests, sr,vidden farms and tree lots;

Beneficiat ion - process rvherein a larqe fract ion of the u,aste rnaterial is removed

from the ore;

Bufibr Zones identi f ied ereas or-rtside the boundaries of and imrnediately

adjacent to designated protected areas that need special development control in

order to avoid or minimize harm to the protected area;

Bureau - the Mines and Geosciences Bureau under the Denarlment of Science

and Tcchnology'

Carrving capacity t l te capacity of natural and human environments to

accorl ' l r loclate and absorb change r,vi thout experiencing condit ions of instabi l i ty

and attendant clegradation:

Cerl i f icate of Ancestral Dornains Tit le (CADT) - t i t le lbrmallv recognizinq the

rights of possession and orvnership of ICCs/lPs over their ancestral domains

identi f ied and del ineated in accordance with law;

d.

/r

h

Page 5 of43

12aJ

A

567B9

101 l121314151617181920212223. \ A/ - a

25262 l2B2930a tJ I

1 a) L

'l 'lJ J

3435

3637383940

j. Certificate of Ancestral Lands Title (CALT) - a title formally recognizing therights of ICCs/lPs over their ancestral lands;

}i. Closr,rrc of mines pennanent cessation of operations at a mine or mineprocessing si te r f ter complet ion of the clecommissioning process;

1. ConsensLrs - the dccision communally reachecl after appropriate parl icipatoryconsultatiorr ancl discussion, free from any external manipulation, interference andcoercion, and other analogous cases and obtained after fully disclosing the intentand scope. inclucling the posit ive and negative impacts, of the activity such ofdecision, in a language and process understandable to the community or grollp.

m. Consent - the voluntary assent of the landowner or those who have been in open,continuous, exclusive and notorious possession of the land for more than ten (10)years in good faith" or thirtt' (30) years in bad faith. free from any externalmanipulation. inter'furence and coercion, and obtained after fully disclosing theintent and scope, including the posit ive and negative impacts of the activity, in alanguage and process understandable to the said landowner or occupant;

n. Contract area the area delineated as specif ically provided by a mineralagreement lbr the developrnent or r,rt i l ization of mineral resolrrces fcrund therein;

o. Critical watershed - refers to a clrainage area of a river system, lake or waterreservoir supporling existing and proposed hydroelectric power, domestic watersupply, geothermal power and irrigation r,vorks, which needs irnmediate

rehlSil i tation rnd protection to minimize soil erosion, improve r,vater yield andplevent possible 1' ' loociing. The tenn shall also include areas rvhicl-r ar-e tradit ionalhuman scttlernents. Iand-uses. or sea-Lrses rvhich are representative of a culture (or

cultures). or human interaction rvith the environment especially lvhen it has

become vulnerable under the impact of irreversible change;p. Crit ical habitats - place or environment r,vhere species or subspecies naturally

occllr or has natLrrally established its population that are crr-rciai to the survival of aspecies and essential for its conservation;

q. Cultural sites - those that bear a unique or at least exceptional testimony to acul tural t raCit ion or to a civ i l izat ion u,hich is l iv ing or r ,vhich has disappeared or,

dircctlv or tangilr l),associatecl u' ith events or l iving tradit ions, r,vith ideas. or r,r, i th

beliel's. rvith arlistic and litersr\u luot',.s of outstanding universal significance

r. Customary larvs - body of r,vritten and/or unwritten rules,, usages, customs andpractices tradit ionally recognized, accepted and observed by respective ICCs/lPs

and local communit ies;

s. Decomm issioning the act iv i ty or process that begins af ter cessat ion ofprospecting activit ies or mineral production (including metallurgical plantprodr-rction). It involves, among others. the removal of nnr,vanted infrastructure,

n"alcing excavations and u,Aste repositories safe and stable and surflrcerehabil i tation n,ith a vier,v to negate or minimize anv adverse environmental

Page 6 of43

1I

2aJ

A.l

56789

t01 1l l

t2131 ^l +

151617r8l 9202122a ' )Z J

1 t l- - t

252627282930a 1J I

a a) L

a aJ J

343536373839

impacts remaining aflter cessation of mineral production. It includes the after-careor maintenance that may be needed.

t. Ecological profi le or eco-profi le - geographic-based instruments for plannersand decision-rnakers u,hich present an evaluation of the environrnental quality andcarrying capacitv of an area and measllres tl-re specif ic intcractions that lvi l l beaffected bv rnining operations;

Ll. Exploration - means the searching or prospecting for mineral resources by non-invasive means for the purpose of determining the existence, extent, quantity andquality thereof, rvhich may include but not l imited to seismic', gravity, magnetic,electromeganetic, raclar. induced polarization, radio-wave and electrogeochemical;

v. Ertraction - ore-relxoval activit ies that tal<e place a the mine site itself;w. Free, prior and informed consent - the consenslls of all members of the ICCs/lps

to be determinecl in accordance rvith their respective customary laws and practices,free from any external manipulation, interference, coercion. and other analogousact and obtained after fully disclosing the intent and scope. inclr-rding the posit iveand negative impacts, of the activitv. in a language and process understandableand aqceptable to the commr-rnity;

x. Indigenous peoples/lndigenor-rs cr"rltural commlrnit ies (lP/lCC) - refer to a gror-rpof people or homogenolls societies identif led by self-ascription and ascription byothers, 'uvho ltave continuously l ived as organized community on communallvbor-rnded and defined territory, and rvho have, under claims of ownership sincetime immemorial, occupied, possessed and uti l ized such territories, sharingcommon bonds of language" customs. tradit ions and otlrer distinctive culturaltraits, or r.vho have" thror-rgh resistance to polit ical, social and cultural inroads ofcolonizat ion. non- indigenous rel ig ions and cnl tures, became histor ical lydifferentiated from the mafority of Fil ipinos. ICCs/lPs shall l ikewise includepeoples who are regarded as indigenolrs on account of their descent from thepopr-rlations rvhich inirabited the country, at the time of conquest or colonization,or at thc t ime oF inroads o1' non- indigenol ls rel ig ions and cul tures, or theestablishment of present state boundaries, who retain some or all of their o\vnsocial. economic. cultr"rral and polit ical institutions, but rvho may have beendisplaced fi 'on.' their tradit ional domains or who nlav have resettled outsicie theirancestral dornains. They are peoples who have a spiritual r-elationship with theIand;

y. Indigenous political structure - reftr to organizational and cr-rltural leadershipsystems, institutions, relationships, patterns and processes for decision-making andparlicipation. identif icd by ICCs/iPs such as, but not l imited to, Council of Elclers,Cottnci l o iTirnual 's. Boclong IJolders. and anv other t r ibr-rnal or body of s imi larnattrre;

Page 7 of 43

1

2"'|J

A'f

56F,

89

l0il121 aI J

1 Al a

15161 l18. l o

202 l22

' )A/-'-t

2526

27282930J I

a aJ Z

a . )J J

343536a F l

J I

383940

z. Joint Venture Agreement an agreement wherein the government ancj aqualif ied person organize aioint-venture company, with both parties having eqr.rityshares, to deveiop and manage mineral resollrces. Aside fiom earnings on theequity, the Coverntnent shall be entit ied to a share in the otrtput computed at acertaitr percentage mutuallv agreed Llpon by and beneficial to both parl ies.

aa. I(ey biodiversity areas are sites of global biodiversity conservationsignif icance. Thev are defined by standardized criteria and thresholcls to suideconservation intervenlions such as the establishment of protected areas:

bb. Large-scale mining - mining in arees more than trventy (20) hectares, usingmechanized tools and equipment, requiring considerable capital ancl having large-scale envirottmental, social, cr: ltr-rral and economic impacts with regarcl to resourceuse and/or conslrmption.

cc. Mineral Asreetnent- e contract entered into by the government, in behalf of theState, and a private Fil ipino person, granting such person/s the privi lege to mine aspecific contract area,

dd. Mineral resoLlrce - any concentration of minerals/rocks with potential economicvaluc;

ee, Mineral processing - the mil l ing, berreficiation or Lrpgrading of ores or mineralsand rocl<s or by similar means to converlthe same into marketable prodr,rcts;

ff. Minerals - all naturally occurring inorganic substance in solid, gas, l iquid, orany intermeciiete state exclucling energy materials such as coal, petroleum, naturalgas, radioactive nraterials, and geothernral energy;

gg. Mine development - preparing the mine site for prodr-rction by shaft sinking orpi t excavat ion bui ld ing of access roads, and construct ing of surface laci l i t ies;

hh. Mine rvastes and tail ings -rocl< materials f i 'om snrface or unclergrouncl miningand mi l l ing operat ions u, i th no economic value to the generator of the same;

ii. Mining Activity - anv or all of the follorving activit ies: erploration, extraction,trt i l ization, processing, transportation and other activit ies conducted for the same.

jj. Mining Area - a portion of the contract area whicl-r has been identifiecl bv thecontractor rvhereirr actr-ral rnining operations are conducted;

l*. Mining Operations eit irer all or any of the mining activit ies involvingexploration, feasi bi I i ty, developrnent, uti I ization, and processi ng;

11. National Parli - an areA of the public domain essentially natural r,vi lclerness,scenic, or historic in character rvhich has been withdrarvn from settlement,occllpancv. or anv form of erploitation except in conformity u,ith an approveclmanagement plan and set aside erclusively to conserve the area or preserve thescenery, the natural and historic objects, wild animals, and plants therein mainlyfor the pltrpose o1'biodiversity conservation and/or human en joyment.

mm. Native tit le - pre-conquest rights to lands and clomains r,vhich, as fur bacl< asmemory reaches, have been held Lrncler a clairn of private orvnership bv ICCs/l[,s.

Paqe B of43

12aJ

450

789

l011t2131 it +

t5161 1l /

18192021

22a ' )L )

1 t lL +

2526272829

30a . lJ I

a aJ L

333435

36373839

have never been plrblic lands and are thus indisputabll, pl 'eSLrmecl to have beenheld that wav since before the Spanish ConqLlest;

nn. Natural lrorest - forests composed of indigellolls trees, not planted by man,whose strttcture, functions, and dynamics have been largely the result of naturalsuccession processes

oo. Natr-rral Parl<s - is a relativell ' lrrge area not materially aiterecl by human actiyityrvhere extractive resoLtrce Llses are not allor,ved ancl maintained to prolectoutstanding natural and scenic areas of national or international signif icance forscientif ic. educational and recreational use:

pp. Open-pit mining - Ertracting metal ores and minerals that l ie near the surface byremoving ti le overlyiug tnatet' ial and brealcing and loading the ore. Also known asopen-cast m ining: open-cr-rt minir-rg;

qq. Ore - a materiai that contains minerals in sr-rch quantit ies that it can be minedatrd rvorl<eci conrtnerciallv to extractthat rnineral. The mineral is r:sually containecl. l l chemiclr 'coinbinat iotr r . ' ' i th solne other element in adcl i t ion to var ic lusimpr-rrit ies;

rr. Pollution control and infiastructure devices infi 'astructnre, machinery,eqr-ripment and/or improvements used for imponncling" treating. or neutralizitrg,precipitating. f i l tering. conveving and cleansing mine indr-rstrial u,aste ancl tail ingsas u'ell as eliminatinq or redr-tcing hazarclons effects of solicl particles. chemicals.l iqtrids or other harmful byproducts and gases emittecl from any facil i ty gti l izecl i1mining operations for their disposal;

ss. Private land - any land belonging to anv private person which includes alienableand clisposablc lancl being claimeci by a holder, claimant, or occupant r,vho hasalreadv acqtrirecl a vested right thereto under the law, although the correspondingceft i l lcate or evidel tcc o1' t i t le or patent has not been actual ly issued;

tt. Processing incltrdes all treatment an ore receives after its extraction anclbeneficiation. rvhich involves changes in the chemical nature of the mineclminerals;

ttu. Progressive relrabil i tation - rehabil i tation which involves the stagecl treatment ofdisturbed areas dr-rring exploration, construction/clevelopment and miningoperations

vv. Protected Areas - identified portions of land and water set aside by reason oft i le i r t tn ique pl tvsical and biological s igni f icance, managecl to enfuance biologicald iversity' ancl protecte'cl against destructive human exploitation;

ww. Protected landscapes/seascapes areas of national sigrrif icance which arecharacterized by the harmonious interaction of man ancl lancl u4ri le providilgopportrrnities for public enjoyment tlrrough recreation and tourism rvithin thenormal l i festyle and economic activity of these areas

Page 9 of43

l

2aJ

456789

l0l l121 aI J

14t5t6

1718l9

202122a 1

) A./- -r

2526272829

30a 1J I

J L

a aJ J

a AJ +

35

361 -) l

3839

xx. Qtrarry resol lrces - anv common rock or other mineral substances as the Directorof the Mines and Geosciences mav declare to be cluarry resoLlrces sucl as, but notl inr i ted to. andesite, basalt. congiomerate. coral sancl. diato: lacgol ls earth, diori te,decorative stones. gabbro., granite. l imestone, marble, marl, red burning clay forpotteries and bricks, rhyol i te, rock phosphate, sandstone, serpentine, shale, tuff ,volcanic cinders, and volcanic glas s, Provided, That such quarry resollrces do notcontain rnetals or metal l ic consti tuents and lor other valuable minerals ineconomical l l ' rvorl<able quanti t ies, Provided ./ i . tr thcr", That non-r.netal l ic rnineralssuch as kaol in' feldspar, btt l l quaftz, quarlz or si l ica, sand ancl pebbles, bentonite,talc, asbestos, bari te. gypsLrm, banxite, magnesite, dolomite, mica, precious andsemi-preciotts stones. and other non-metal l ic minerals that may later be cl iscoveredand

"vhich the Director declares the same to be of economical ly workable

qtranti t ies. siral l not Lre classif ied under the category of quarrv resol lrces;y) ' ' . Qttarrvit" lg - process of ertract ing, removing ancl disposing qlrarry resources

for-rnd on or underneath the surface of private or publ ic lancl.zz. Regionai Director - the regional director of any mines regional off ice;aaa. Regional Off ice - an-y of the mines regional off ices;bbb. Recycling - shall refer to the treating of r-rsed or waste materials through a

process of mal<ing thern suitable for beneficial use and for other purposes, anclincludes anv process by whfch solfd u,aste materials are transformed into newproducts in sttch a manner that the original products mav lose t 'helr iclenti ty, andu'hich nlav tre trsed as ra\v materials for the procluct ion of other goocls or services:Provided, That the coilectfon, segregation and re-Lrse of previously used packagingmaterial shal l be deemed recycl ing under the Act.

ccc. Rehabiiitation - the Drocess by r,vhich the land lvill be returnecl to a form anclprodtrct ivi tv in confci ' l t r i tv r i ' i t i r a prior ' lancl use plan inclr-rci ing a stable ecologicalstate that cloes not ccntr ibtrte substantial ly to environmental cleteriorat ion ancl isconsistent rvi th surrounding aesthetic values;

ddd. Remediation - removal of pol lut ion or contaminants from environmental mecl iafor the general protection;

eee. Rernining - maximizing and recovering the remaining minerals from the reiectsor rvastes of previor:s mines and mining operations;

fff. Restoration - where tire intent is to recreate an ecosystem as close as possible tothe original rvhich eristed at the site, rvi th most of the structure and procluctivi tymatching that of thc or ig inal ecosystem, and most of the or ig inal b iodivers i ty : int ime ecological processes and f irnct ions wil l rnatch those of the original forest;

ggg. Small-scale mining - mining activi t ies u,hich rely heavi ly on manual labor r-rsingsimple implements and methods ancl do not use explosives or heavy miningeqtr ipment. primari ly cngage in for sr-rstainable l iving. Impacts from small-scale

Pase l0 of43

I ln in ing shr l l not bc l r rge-scaic . o t i rer$ ' ise, the min ing act iv i ty s6al l be def ine6 as2 l a r . " e - s c a l c m i n i n g :

3 hhh. Smal l -scale min ing permi t - permi t issuecl for smal l -scale min ing4 i i i . Strategic minerals - minerals needecl for national clevelopment5 lil i i- Taifings Disposal Svstem or Tailings Placement - t]re rnethod rvherein the w:lste6 from mininq operations are dnmped, placed, or cl isposecl.7 kkk. Tradit ional small-scale mining - small-scale mining r-rsing tracl i t ional means andB withor-rt the Llse of chemical or mechanized extraction and separation means,9 methocls. implernel" l ts. ancl/or equipment;

10 111. Watershed continLl l lm - shal l refer to an area consist ing of the r,r,atershed and i tsI I divide irrclr-rding its connection fi 'om the headr,vaters to the reef or a land area12 drained by a stream or a fired body of r,vater ancl with tribtrtaries 6aving a commonl3 otrtlet for sttrface runoff. It is the system by which the mining-affected14 commllnit ies shal l be determined 1'ol lowingthe clrainage of a stream or f irecl boclv15 ' of water with tribLrtaries having a common outlet for sr-rrface runoff.16 mmm. Wildl i fe - undomesticated forms ancl variet ies of f lora and 1buna.l 7

18 CI_IAPTER. iV. OWNERSIIIP AND GOVERNANCEt920 Section I8. Autl lorif) ' of the Bureau. The Mines and Geosciences Bureau shall be a21 scientif ic researclr institution under the Department of Science and Technology (DOST),22 primarily conducting and developing re search of mineral resollrces ancl mining23 technologies and training oI local cornmunit ies. local government uni ts ancl incl igenor-rs24 peoples. I t shal l a lso regulate the operat ions o1'persons involvecl in mining act iv i t ies. I t25 shall also work with the Multi-Sectoral Mineral Council in the monitoring of minins26 activit ies.2728 Section 19. Regionel Ofl ices. The Bnreau shall have as mAnv regional off ices in the29 country as may be cstablislred by the Secretary. Lrpon the recommenclation of t6e Director.303l Section 20. Bureau as repository of information. The Bureau shall be the centr-al32 repository of information regarding mineral lands, resollrces, permits, studies and other33 information relevant to the operation of a mine, irrclucling the necessary requirements34 which a contractor is obliged to submit. All other governmental off ices and other bodies35 created under this Act shall copy fr-rrnish the Bureau of other inlbrmation related to36 m in ing .4 , 1

iS Section 2l . Rccorcl ing System. There shal i be establ ished a national and regional39 f i l ing and recording system. A mineral resol lrce database system shall be set up in the40 Bttreau rvhich shal l incl l tde, among others, a mineral r ights management system.

Page 11 of43

12 Section 22. Public:rt ion. The Bltreau shall publish at Ieast annually a rnineral gazette of3 nationu'ide circtrlation cor-rtainil-tg I 'r-]ong othcrs, A cLlrrent l ist o1'mineral rights, their4 location in the map, mining rr,t les anci regr:lations, other off icial acts affecting mining, ancl5 other information relevant to mineral resources development. A system of publication6 fund shall be included in the resular budset of the Bureau.78 Sectiorr 23. Burc:ru to cottciuct erploration activit ies. Exploration of mineral9 resources shall be exclusivcilz ancl directly undeftaken by the State through the Bureau.

10 In no case shall this l 'r-rnction be clelegated or contractecl or-rt to private corporations orI 1 persons.12I3 Sect ion 24. Non-invasive erplorat ion. Explorat ion act iv i t ies shal l oply be non-14 invasive such as, bttt not l irnited to seismic, gravity, magnetic, electromeganetic, raclar,15 induced polarization, radio-wave and electroseochemical.1617 Section 25. Conscnt. The Bltreatt shell not enter into any private iar-rds forthe pllrposes18 of exploration activit ies r,vithout thc r,vritten consent of the lanclowner, possessor and/orl9 occupant, or the FPIC of the ICC/IP and payment of jr-rst compensation for the r-rse of20 property. Neither shall the Bureau enter into anv part of the ancestral domains/lancls of21 ICCs/lPs rvithout t ireir free ancl prior inforrned consent. Fufiher. the Burear-r s6all not22 enter into any distributed land ttncler the Comprehensive Agrarian Reform Program23 within in the l0 years prohibited period o1'the said program.2425 Section 26. Orvncrsh ip of ICCs/IPs. Mineral resolrrccs rvithil ancestral26 'domains/ancestral lands arc the collective private property of the incligenous cultr-rral27 comlnllnit ies/indigenotrs peoples (ICCs/lPs). The management of sucfi mineral resolrrces28 shall build on the irrdigenous lcnorvledge systems and practices.2930 Section 27. Free, prior ancl informetl consent. No mining activity shall be colductecl31 r,vithin the ancestral domaitrs/lands of ICCs/lPs rvithout their iree, prior and inlbrmed32 consent (FPIC). in acldit ion to the conditiorrs set for under succeedins sections.- a

; ; Sect ion 28. When ancestra l c lomain is not formal ly recognized. When ancestra l35 domain is not covered by a Cer-t i f icate of Ancestral Domain Tit le/Cert i f icate of Apcestral36 Land Tit le (CADT/CALT), or is co,, ' ,ered by a dif ferent t i t le issgecl in favor of members of37 the ICCs/IPs, mineral resoLtrces slrall nevertheless be managecl by the ICCs/IPs concerned3B when it can be presltmed that the area is parl of ancestral clomain. An area is presumed to39 be parl of ancestral domairr by' virtue of historic r ights ancl self-clel ineation.40

Page 12 of ,13

1 , Section2g. \V;ren ICCs/IPs displacecl from ancestral domain, and lvhen ancestral2 domain is already covered by other t i t les emanating from the state other than3 CADT/CALT. Native t i t le over ancestral clomain sr-rbsists notwit lrstanding the fact that4 the ICCs/lPs tvho hold sttch native t i t le have been displaceci therefrom or that such5 ancestral domains have been occttpiecl by other persons or corporations r inder another6 ciaim of t i t le emanating from the State. In such cases, ICCs/lps shal l continue to own7 such mineral resol lrces.

B9 Section 30. Questions on the validity of FPIC. In instances that there are qlrestions on

l0 the legalitv or validity of the issr-rccl f i 'ce prior and informed consent, mining operati 'nsl1 shal l not be al lowed to be conclucted in the ancestral domains or lancls of the ICCs/ lps12 r'vithotrt the final resolution of such question on the legality or validity of the IrplC.l3 Section 31. Orvnership of the State. The rnineral resources founcl outside anceslral14 domains/lands shall be or'vned by the State. The State shall enslrre tirat the managernent of15 mineral resotlrces shall be primarily for the benefit of the local communities i ' r,vhose16 territory the same shall be found. Any minerals extracted shall be solely used for locall7 indtrstries consistent rvith the Minerals Llt i l ization Framer,l,orl<. The State may directlyl8 undeftai<e developtnent. trt i l ization atrcl processing of rnineral resoLlrces or it may enter19 into mipe'rl ro' 'r 'o'. ' . 'arrr5 11ri1lt el igibie parties prirsuant to the provisions of this Act.2021 Section 32. Inventory of mineral resources. The Br-rreau shall identify and provide an22 inventory of the available r.rineral resollrces, including the minc tail ings withir-r the23 cottntrv. It shall sttbrnit to the DOST a reporl rvhich shall contain the l.ol lor,vins24 information:2526 a. the classi f icat ion of minerals;27 b. the qualit l , and grade of the ore;28 c. the potent iai rninc l l fe:29 d. the geological description of the area;30 e. the economic viabi l i ty of mine tai l ings;3l f ' whetherthe area is a l<ey biocliversity area or if i t is a crit ical habitat32 g. and all other relevant information necessafy for potential mineral investments.a /.,1

; ; The process for explorat ion and/or approval for a mining permit shal l not commence35 without the said inventorv.

3 6 t

37 Section 33. Iclenti f icat ion of st 'ratcgic minerals. The Bureau shal l conduct researches38 and studies prior.to any mining operations to identi fz strategic mineral resources. Only39 mineral resol lrces t l-rat shal l be neeclecl for local industr ies shal l be rninecl.40

Page 13 of43

I Section 34. Demarcation of mineral areas. The Bureau shal l clemarcate the2 bottndaries of al l areas identi f ied as containins commercial quanti t ies of mineral3 resol lrccs on the ground.

45 Sect ion 35. Basel inc in format ion on rvatershed cont inuums. The basel ine6 information on al l u'atershecls in the countrv shal l be requirecl ancl rnacle avai lable to the7 publ ic . on l ine as mttch as possib le. No min ing permi t shal l be iss ' - red q, i thout th is basel ine8 information.

9l0 Section 36. Affected local communify ancl local government unit . For the pr-rrposes11 of this Act. the afl'ected local cornmunity ancl the affected local government unit are12 , defined in relat ion to the u'atershccl continuurn r,vhich is potential lv negatively impactedl3 b i ' min ing operat ion i r r the demarcatec l area. The local communi t ies ancl the local14 government units tl-rerefore are those l,r,ho are clependent on the watershed eco-system andI5 i ts resources

l 6

17 Sect ion 37. Establ ishment of Mul t i -sectora l Minera l Counci l . A Mul t i -sectora l18 Minera l Counci l shal l be establ ished lbr the p l r rposes of th is Act . There shal l be as many19 lVfult i-Sectoral Mineral CoLrnci ls are there are r,vatershecl continuums r,vi th clemarcated20 mirreral areas.

2 122 Sect ion 38. Pot t 'ers of t l re Counci l . The Counci l shal l have the fo l lowing powers,23 among others:

24 a. To determine r.vhether or not mining operations shal l be al lor,vecl;25 b. To dei iberate on proposals for mineral agreements;26 c. To approve the proposal for mineral agreements;27 d. To moni tor t l re concluct of mi ' ing operat io 's ;28 e. To establ ish i ts internal rules of procedure which are not contradictory to29 th is Act :3 03l Sect ion 39. Composi t ion of the Mul t i -Sectora l Minera l Counci l . The Mul t i -Sectonal32 Mineral Counci l shal l be composed of a representative of the Bureal, a representative33 from the DIINR, one representative fiom each of the affectecl provilcial34 governments/ indepcnclent component cit ies/highly urbanizecl ci t ies. representatives from35 peoples' organizations as :raltv as the representatives of local qovernment units, the36 affected ICCs/lPs withirr the rvatershed continuum ancl representatives from the37 marginalized sectors that will be greatly affected by the proposed rnining project. The3B Bureau shal l be the convenor of the Counci l .39

Page 14 of43

I No mining operations shall be allor,ved r,vithor,rt the Council having been properly2 convened.1

4 Section 40. Areas open to mining. The Council shall have the porver to cletermine5 whether or not the land rvhere mineral resources are found shall be opened to mining.6 Areas may only be operred to minirrg Lrpon the unanimous vote of all the members of t6e7 Council pltrsuant to the gr,ridelines provided by this Act. In determining whether or not8 st'ch area shall be opcned. the fbllou'ing shall be reqr-rirecl:9

10 a. Reporl of the Bureau on the conclucted exploration;I I b. Existence o1'dorvnstream industries for the mineral resources;12 c. Potential environmental impacts,13 d. Potent ial cul tural impacts:14 e. Conf l ict and r . isk assessrnent:15 f. Potential health inrpacts;16 g. Potential economic benefits of the development ancl gti l ization of the17 minere ls ;18 h. Carrf ins capacity and the ecological profi le of the area'l9 i. Existinq anC alternative lancl Lrses of the area,20 .i Local sovernment land use plan.2 l22 ,No mining appl icat ion shal l be al lowed unless an environmental economic aucl i t or23 resollrce valttation of the proposed mining area lrave been conclucted or preparecl applying24 acceptable valuation standards. This audit or resolrrce valuation shall be conductecl in25 coordination r,r,ith multisectoral grollp of experls and commlrnity stakeholclers. It shall26 include determination of the expected economic returns and the potential negative27 impacts f i 'om mining on thc enjovment and exercise of human rights, cultural r ights, and28 on peace ancl seclrrity. A detailed study mnst mention tlte f lora. fauna and environment29 present in the mining claim and the impact of rnining operat ions on the environment, t6e30 possible environmental degradation and the attendant loss of subsistence resollrces callse.31 There must be tnention of existence of sacred areas or areas otherwise of cultural32 signif icance and acldress tl ic impacts of resource exploitation on indigenous peoples.a a

tO This in fbnnat ion shal l be accessib le to the publ ic at a l l t imes.i \

; ; Proviclecl l tov'ever, TItat in no case shal l the Co,,rnci l open the fol lor i ing areas to mining:a n

,U a. IJead r,vaters ol'lvatershecl areas;39 b. Areas with potential for acid mine drainage;40 c. Crit ical rvatersheds:

Pase 15 o f43

I d. Cr i t ical habi tats:2 e. Clirnate Cisaster-prone areas;3 f. Ccohazard areas;

4 g. Smali island ecosystems;5 h. Cultural sites, r,vhich may inclr"rde, but not l imited to, sacred sites and burrial6 grounds;I i . Tradit ional su,idden farms ancl hunting erounds.B j Lands covered by the Comprehensive Agrarian Reform Law or Republic Act No.9 6657, as amended;

10 lc. Prirne agriclrltural lands, irrigable ancl irrigated lands as defined by Republic Act1 I No. 9700;12 1. Cultural properly enllmerated under the National Cr-rltural I- leritage Act of 2009 or13 Republ ic act No. 1 0066;14 m. Key biodiversi ty areas:l5 n. I { igh conf l ict areas:16 o. The Province of Palarvan pLlrsuant to Republic Act No. 7611 and other areas17 covered by local ordinances;18 p. In mil itary and other government reservations, except upon prior written clearance19 by the government agency concerned;20 q. Near o 'Lntclet 'nLrbl ic or pr ivate bLr i lc l rngs. cemeter ies. archeological and histor ic21 sites, bridges. highrvavs. rvaterways, railroads, reservoirs, dams or other22 infi 'astrr-rcture projects, public or private worl<s inclLrding plantations or valuable23 crops, except Llpon written consent of the government agency or private entity24 concerned;25 r. In areas expressly prohibited b:, ' lar,r,or ordinances;26 s. In areas covered by small-scale miners as defined by law unless r.vith prior consent27 of the small-scale miners, in which case a royalty payment Llpon the uti l ization of28 minerals shall be agrecd r,rpon by the pafties, said royaltv forming a trust ftrnd for29 the socioccc'romic dcvclopment of the cor l rnLlni ty concernccl : ancl30 t. Old grow'tlt, natural or primary forests, r,vatershed forest reserves, wilderness area,31 mangrove forests, mossv forests, national parl<s, protection forests,32 n provincial/municipal forests, parks, greenbelts, game refuge and bird sanctuaries33 and their respective br-rffer zones as defined by law, in areas covered by the34 National Integratecl Protected Area System CNIIPAS) nnder Republic Act No. 758635 and those expressly prohibi ted by other laws.363l The determination rvhether or not the slme are absolutely closed to rninir-rg shall rrot only38 be l imited to the eristence of a lar,v or ordinance declaring it as protected areas, but also to39 the actual use of said area.40

Pase 16 of43

I Sect ion4l . Manner of vot ing by the Counci l for opening an area to mining.2 Sections 26 and27 of the Local Government Code on consLrltation and consent shall be3 strictly adhered to. Local governrnent ur-rits at all levels shall conduct mandatory p'blic4 ltearings r''u'ith thc rffectecl local communities, to be carriecl or-rt r,vithin their respective5 territories and presenting those enlrmerated r-rncler Section 40.67 After the inventory of the existing minerals, the formulation of a mine plan. ancl the8 existence of'the baseline infbrmation of the particular r,vatershecl area. the Bureau s6all9 ' ' convene the Counci l .

10ll The Council shall thereafter respectively convene their constituents to determine whether12 or not their respective territories shall be openecl for mining.1 aI J

14 Local government units, ICCs/iPs. NCOs ancl peoples organizations, shall enslrre t6at thel5 Bttreatt shall comprehensively explain the goals and obiectives of the project or program,16 i ts negat ive and posi t ive impact Llpon the people and the communitv ip terms of17 environruental or ecological balance, and the measures that wil l be unclertal<en to prevent18 or minimize the aclverse effects thereof. Thereafter, the approval of the respective19 sanggunions of the aflbcted local government units shall be required in accordance to the20 sentiment of the peoples of the local government unit as a result of the consultations21 conducted.2223 Provicled, That the al ' lbcted local government unit representatives shall meet ancl s6all24 relay the decision of their respective constituents to the provincial25 government/independent component cit ies/highly urbanized cit ies. The26 provincial/component cityihishh/ urbanizecl city government representative s6all sit in the27 Council and shall carrt, the result of the vote of all the alfected local government units28 within the province resnlting I 'rom the process provided in the preceding paragraph of t6is29 Section. There mttst be a ttnanimous vote arnong the local government units for the30 pllrpose of opening a particr-rlar area fbr rnining. IrailLlre to reaclr a unanimous vote 1br3I openine shal l mean that the ar l l is c losed to rninine. The proceecl i r rss shal l at al l t imes be32 recorded.. r aJ J

34 Provided moreover, That in case there are affectecl incligenous cultural35 communit iesi incl igenoLls peoples r,r, i thin the rvatershecl continulun. they shal l also bring36 t ire commttnitv 's votc to the Counci l after r-rnclergoing their own processes in accorclance37 with their respective irrcl igenolrs pol i t ical structure, free from any external manipulat ion,38 interlbrence, coercion ar-rd other analogous acts, ancl obtainecJ after ful ly disclosing the39 intent and scope. inclt tding the posit ive and negative impacts of the activi ty, in a language40 and process understanciable alrcl acceptable to them.

Page 17 of ,13

I

I

2aJ

Aa

56.|

89

l01 l121 aI J

14l51617l819202122a - )-, .)) t l- T

2526272B2930a lJ I

-)^J L

a aJ J

3435

36') -f

3 8

3 9

40

Providedfinali\,, That anv member of the communib/ may file a protest \,vith the Councilduring this period of consultat ions ancl clet iberations for the Counci l 's consideration.

Section 42. Viol:r t ion of Section 51. Local government off icials w5o areadministrat ivel l i folrnd to violate the prececl ing section ancl Section 5l of this Act vis-a-vis the pert inent sections of the Local Government Code shal l be removed from off iceand perpetual lv disqLral i f ied f i 'om holct ing any elect ive or appoirrt ive posit ion ingovernment, i ts divisions, strbsidiaries artd any government ownecl and control ledcorporations.

Section' i3. Pool of constr l tants. There shal l be a pool of inclepenclent consultants thatmay assist the Iocal goverl lment units, local communit ies or ICCs/lPs rvith regard to thetechnical aspects of min ing.

Sect ion 44. Publ icat iono post ing and rac l io announcemcnt requi rements. l -hedecis ion of the Cor-rnc i l shal l be publ is l rec l by the Bureau in the local newspaper in thelocal language, shal l be announcecl on the local radio programs for not less than six (6)

,tveeks and notices shal l be distr ibutei l l ,viclely in communit ies. The notice containingrelevant infonnation shal l l i l<er,vise be postecl in conspicuous places for the information ofthe general publ ic and shal l be announced during the local market day.

CFIA PT]]P. V. MINI]RAL AGREI]MENTS

Section 45. Motles of Mineral Agreement. A mineral agreement may only take thefollor,ving forms as herein definecl;

(a) Mirrcral production sharing agreement is an agreement where theCovernment grants to the contractor the exclusive r ight to conduct miningoperations u' i thin a contract area ancl shares in the gross oLltpl l t . Thecontractor shal l provide the f inancing, technology, management andpersonnel necessary for the implementation of this agreement.

(b) Co-proclttction egreement - is an agreement between the Government andthe contractor r.vherein the Government shall provicle inpr-rts to the miningoperations other than the mineral resoLlrce.

(c) . loint venture agreement - is an agreement rvhere a joint-venture compaltyis organized by the Government and the contractor rvith both parties havingeqtlity shares. Asicle from earnings in equity, the Government shall beenti t led to a share in the gross output.

Page lB of43

I2 In no case shall Financial or Technical Assistance Agreements, or any ot6er similar3 agreements, contracts, and/or executive issuances granting l icense or permission to4 erplore. develop ancl/or L;'r i i ize mineral resolrrces be awarcled to foreign persons.5

6 Section 46. D)igibilit1'. Odi' Fitipino citizens or carporatrbns sxty percent (60%) of7 whose equity is orvnecl or controlled by such cit izens shall be allorved to conductB development. uti l ization ancl processins of mincral resources withir the countrv.9

l0 Sect ion 47' Idenf i f icat ion of mining projects. With the unanimous vote of thel1 Council to open areas 1br mining operations, t lre Bureau shall prepare the necessary12 inibrmation sheets on tite si i ici area ibr potential investments. The Bureau s6all call for13 proposals to develop t i re nr i : inq area.14l5 Sect ion43' Pre-screening of mining proposals. Mining proposals shal l be pre-16 screened by the Bttrealt upon the submission of interested parl ies of the followins:t 71 8 a. c lemonstrat ion of f inancial capabi l i ty;19 b' proven social and environmental track record, inclucling those of its off icers and20 directors;21 c. clear corporate structure and or,vnership;22 d' proof of phvsical off ice and operations of the proponent ivit ir in the phil ippines;23 e. identif ication of potential investors;24 1'. mining pro-iect ftasibil i ty:25 g. mining operat ion rvor l< plan;26 h. proposed operation. m,iigation ancl prevention methocls ancl/or equipment;27 i . capaci tv to process minerals;28 j intent to develop dor,vnstream industries;29 l(. intent to contribr-rte to local commlrnity development.30 ' l ' Submission of the En'u'it 'onmental and Social Impact Prevention and Mitisation3 l P lan')^

;; The Council shall f ir the minimum capit alizationthat any biclcler must satisfy basecl on its34 determination of the expected economic returns ancl the potential negative impacts from35 mining, upon reference 1o an ilrdependent str-rcly proposing sr-rch minimum capitalization.3637 Section 49. Environmental ancl Social Impact Prevention ancl Mitigation plan. The3B contractor shall submit an Environmental ancl Social Impact prevention ancl Mitigation39 Plan (ESIPMP) containirrs the means. rnethods, processes and scheclr-rle by which t6e40 contractor shall condtrct its operations ancl prevent or mitigate negative environmental

Page 19 of 43

I and social impacts. Social impact shal l inclLrde possible impacts on the epioyment and2 exercise of human rights, cultural r ights, and on peace and security. The ESIpMp shall3 also include not only plans relative to mining operations but also to rehabil i tation,4 regeneration, restoration of mineral areas, slope stabilization of minecl or-rt and tailings5 covered areas, aqtlacultttre. r.r,atershecl development, lvater conservation, relocation and6 " ret t t rn o1'displaccci populat iotr , provis ion of al ternat ive l ivel ihood ancl socioeconomic7 development.89 The ESIPMP shall also contain a Social Development Managernent Plan whic6 shall

l0 l i lcewise contain the plans of the proponent for t lre clevelopment of t5e communityl l through the establishment of infi 'astluctures ancl programs that shall be sustainable even12 after the closr" l re of ' the mine.l 314 Section 50. Pre-qualif ication. The Bureau shall thereafter iclenti l i the top t6ree (3)15 proposals and shall recotnmencl the same to the Council for detiberatior-r.1617 Sect ion 5l . Del iberat ion of the proposals. After the Bureau's t ransmit tal of i ts18 recommendations to the Council toqether r,vith all the sr-rbmittecl docr-rments for t6e pre-19 qual i f icat iorr . the Cotrnci l shal l in i t iate t l re c lel iberat ion process of the pre-qual i f iecl20 proposals.2122 Immediately thereafter, Sections 26 and 27 of the Local Government Code on23 consultation and cotrsent shali be strictiy adhered to. Local government units at all levels24 shall conclttct manclaton' pr-rblic hearings i,r, i th the affectecl local commynities, to be25 carried out u' ithin t ireir respective territories and presenting those enumeratecl uncJer26 Sect ion 48. Local government uni ts, ICCs/ lPs, NGOs and peoples organizat ions, s6al l27 enslrre that t lre mining applicant shall comprehensively explain the goals ancl objectiyes28 of the project or program. its negative ancl posit ive impact Lrpon the people ancl the29 commllnitf in terms of social, cultural and environnrental or ecological balance, and the30 measllres that will be undertaken to prevent or minimize the aclverse effects there6f.31 Thereafter, the approval of the respectiv e sanggunians of the affected local government32 units shall be reqtrired irr accordance to the sentiment of the peoples of t le local33 qovernmcnt ut t i t as a lcsul t of the consir l tat io l ts conducteci .. A) +

35 Provided, That the affectecl local government unit representatives shall meet and shall36 relay the decision of their respective constituents to the provincial37 government/independent component cit ies/hirhl1, urbanized cit ies throueh the sr_rbmission38 of the mintttes of rneeting declaring their decision with signatures from t5e constituent.39 The provincial/component city/highly urbanized city government representative s6all sit40 i 'n the Cottncil and shall carry the result of the vote of all the affectecl local sovernment

Page 20 of43

1 units within the province/inclependent component citylhighly urbanizecl city result ing2 from the process provided in the preceding paragraph of this Section.a

4 In deterrnining which proposal is acceptable to the people, a majority vote of the local5 government units r,vithin the province/independent component citylhighly urbanized city6 shal l be requircd.78 The affected ICCs/lPs shali also cleliberate on the proposals in accorclance with their own9 systems and processes fi'ee frolx any exterrral manipulation, interference, coercion and

l0 other analogous acts, and obtained after fully disclosing the intent ancl scope, incl,cl ingI I the positive and negative impacts of the activity, in a language and process12 understanclable and accept:ible to them.l 314 After the respective proccsses are complied with, the Council shall then meet and cleciclel5 rvhich proposal, i f any, is most acceptable ancl consistent with their own socio-economic,l6 ,environmental and cult lrral programs ancl shall notif i the Bureau of the chosen proposal.t 718 Section 52. Posting :rncl Publication Rcquirement. After notice, the Bureau shall19 notify the proponent of the acceptecl proposal ancl cause the publication and posting of the20 accepted proposal.2122 Provided, That anv member of the communitv may contest the clecision of the Council23 within six (6) rveel<s Llpon the posting ancl publication of notice of t6e acceptance of the24 proposal in the manner provided in Sect ion4l .No miningoperat ions shal l be al lowed to25 be condLrcted pending any action questioning the legality or valicl i ty of the proposal.2627 Section 53. Issuance of the pcrmit. After the six (6) weeks from the clate of the28 posting and pLrblication, if no contest is f i le, the Burear-r shall issue a permit in accorclance29 with the decision of t lre council on tlre rvinning proposal.303l Sect ion 54. Environmentat ancl Social Impact Compl iance Cert i f icate. The mining32 proponent shall be isstred an Environmental and Social Impact Compliance Cerlif icate by33 the Bureau r,vith the approval of the cor,rncil..', A-)+

35 Providecl r-ro amendtnetrts to the condit ions of the Cert i f icate sl-ral l be al lo'uvecl, unless36 sttch proposed amendment shal l rvork for the benefi t of the commLrnit ies, and in which37 case. the Cor-rnci l and the Bureau shal l be noti f ied of any amenclments to the ESIpMp and38 that the former shor-r ld give their consent to the same, after the proponent explaining in39 detai l the reason for sttch amenclment and the possible impacts ancl conseqlrences of these40 amendments.

Page 2l of 43

i

2 Providecl ftrther, That any violation of the ESIPMP shall callse the cancellation of'the3 Certificate.A+

5 Section 55. Marimum Areas for Minernl Agreements. The maximum area urrder6 mineral agreements that a nerson can lrolcl aI any one tsmt -q-lral,l !-,e determined bj,flrc7 Council, Proviclcd That the contract area per agreement shall not exceed five hunclrecl8 (500) hectares, Provided further, That no person shall be awarcled in excess of the total9 contract area of seven hundred-fifty (750) hectares in any given watershed area. For the

10 purposes of this Act, the prohibit ion on the rnaximum area shall also include corporations11 that shall have common directors or signif icant shareholders.1213 Section 56. Term of Mineral Agreement. The term of the mineral agreement s6all be14 equivalent to the mirre l i fe plus an adcl i t ional f ive (5) years 1br the rehabi l i tat iop of thel5 mining al 'ea. Prot,iclecl, That in no case shall a Mineral Agreement have a term beyopil16 fifteen (15) years, Provided Jhrther, That the contractor sftall alreacly include17 rehabil i tation/remediation of the mining area within the ten-year term.1819 In no case shall a Mineral z\greement be extencled r,vithout just car-rse to be determineci by20 the Councrl, Provided, That the extension shall not caLlse the term of the agreement to21 exceed the fifteen ( I 5) vear term mentionecl in the prececling section . Proviclecl .fitrtl.ter,22 That for the pllrposes of this act. . iust cause shall mean acts or events resgltirrg f,r.om \\/ar,23 lbrce ma-ieure or t l lose beyond the control of the mining proponent not attr-ibutable to the24 same.2526 Provided.finally, That in no case shall mineral agreements be renewed after the expiration27 "of the fifteen-vear ncriod.2B29 Sect ion 57. Prohibi t ion on open-pi t mining method. Open-pi t mining metSocl for the30 extraction of mineral ores shall be prohibited.3 l32 Sect ion 58. Fl i lure to in i t iate mining operat ions. Fai lure to in i t iate mining operat ions33 in accordance witir the r.vorl( program rvithin trvo (2) vears from the awarcl of the mineral34 agreement shall cattse the cancellation of the mineral agreement. The contractor thereafter35 forfeits the value of the improvements made upon the lancl. The contractor ancl other36 corporations rvlto are also rltn bv the same clircctors ancl ol'ficers are thereafter bannecl37 from bidding to condr-rct mining operations for ten (10) years after failgre to init iate its38 mining operations in accorclance rvith the r,vork program.39

Page 22 of ,13

I Section 59' M:rndatory consultations in each mining phase. Manclatory conslrltations2 rvith afltcted conrmunities slrall be uncleftaken in each phase of mining operalion:3 " erploration, extraction. processing, ancl mine closure to ensure that the peoples shall be4 informed of the proposed pians and methods that are proposed to be conductecl.

; Section 60. FPIC of ICCs/IPs on each stage of operation. The free ancl prior7 informed consent of the ICCs/lPs shall be reqr-rired at each and every stage of the mining8 operations. Free and prior informecl consent shall be secured in accordance with the laws,I practices and processes of the concerned ICCs/lPs. The violation of anv of the conditions

l0 imposed by the ICCs/lPs on the contractor shall callse the cancellation of the mineralI I agreernent. Incltrcled in this process is the explanation of the rights of ICCs/lps of12 ovnmership and sel f -determinat ion.t 314 Section 61. Consent of private lando\yners. No person shall be allo'uved entrv intol5 private lands witlrout the written consent of the lanclorvners, possessors or lar.rf, l16 occupants of the land and/or the l rpic of the ICC/lp.1718 Section 62. Expropriation. Expropriation proceedings shall be fi led with the regular19 courts to deterrnine r. l 'hetherthe talcing of private property for mining pllrposes shall meet20 a public pLrrpose ancl to determine jr_rst compensation.2122 Section 63. Mtrlt i-partite Monitoring. The Council shall form a multi-partite23 monitoring team to monitor conlpliance by the contractor of the terms ancl conclit ions of24 the mineral agreement. It may concluct ocular inspections o1'the contract area at any time25 of the day arrd night. It shall also inspect all t ire books of contractors ancl referthe same to26 independent atrditors. The Multi-partite rnonitoring team ancl/or the Bureau may27 confiscate surety, performance ancl guaranty bonds posted tSroggh an order to be28 promulgated by the Director. The Council, the Director or the local government29 atr thor i t ies mav cleput ize. u ' l ten necessary.any member or Lrni t of the p6i l ippine Nat ional30 Police, barangav. dul,v registered nonqovernnlent organizatiotr OJCO) or any qualif ied3 l person to po l ice a l l rn in i r rg ac t iv i t ies"3233 Section 64. Withdrarval from the Mineral Agreement. The contractor may r,vithclraw34 from tl-re mineral agreement at any time for justif iable cause with one (l) month,s notice35 to the Bttreatt, the Council ancl/or the ICCs/lPs, and otl-rer government agencies as may be36 provided by larv. The Council, in cooperation nith other concernecl govermment agencies,37 shall isstte a clearatrce for rvithclrau,al upon certifying that the contractor has compliecl38 * i tn ot l i ts legal obl igat ions. inclLrding the appropr iate measures for mine closure and39 rehabilitation. Funds and boncls rvhich have been put up by the contractor in accordance40 withthis Act shall be forfeited.

Page 23 of 43

12 Section 65. Non-transferabil i ty of Mineral Agreements. In no case shall mining3 rights uncler this Act be transferrable. The contractor shall also notify the Council ancl the4 Bnreatt of any strbstantial change in the or,vnership and/or control of the corporation.5 Violation of this pi 'ovisicn shall cause the cancellation of the agreement ancl forfeitLrre of6 assets and equipment of thc contractor.,/

8 Section 66. Access to Information. All contractors for mineral permits ancl9 agreements shall provide inforrnation to affected indigenous peoples. local commllnit ies,

10 and local govet'nments. Thc lbllorving inforrnation, among others. shall be reqLrirecl:1 1

t l

12 (a) ful l disclosure of methods and processes of miningl3 , (b) ful l disclosl lre of environmental and social r isks14 (c) ful l disclosure of orvnership strr-rcture15 (d) ful l disclosr-rre of f inancial sol lrces1 6

17 All information and docltments related to proposals, mineral agreements, permits ancll8 min ing operat ions shal l not be considered conf ident ia l .I 9

20 Refusal to srant access to this information shal l be cal lse for the cl isquali f icat ion of21 prospective proponents or cancel lat iorr of mineral agreements and permits.2223 The Bureau. being the repository of all relevant information nnder this Act is mandatecl to24 srant access to the public of any inforrnation in i ts cLrstody. Refusal or Llnnecessary clelay25 by the off icers of the Bureau to give information shal l be punishable by a f ine of f i f ty26 thousand pesos (Php 50,000.00) for every instance of refusal or unnecessary clelay.2 l

28 Informatiott reqttestccl by incl igents or rnarginai ized sectors shal l be given to them for29 free.

3031 CFIAPTER VI. SMALL-SCALE MININGa a

33 Sect ion 67. Appl icabi l iqv of RA 7076. Smal l -scale min ing shal l cont inue to be34 governed by the prov is ions of Repr- rb l ic Act No. 7076 or the People 's Smal l -Scale Min ing35 Act of 1991, Provicled, That the Provincial lCity Mining Regulatory Board shal l be36 composeci of the Governor or City Mayor' as chairperson, as the case may be, a37 representative i i 'om the DENR as co-cirairperson, one (f ) small scale mining38 representative. one ( l) big-scale rnining representative, one representative from a39 nongovernment organization r,vho shall come from an environmental group, one40 representative from a people's organiz.ation (PO) coming from the marginalizecl sector,

Pase 24 of 43

I and at least one (1) representative from the incl igenous communit ies, whenever2 applicable, as members. The representatives from the private sector. nongovernment3 organization and incl igenor-rs communit ies shal l be selected by their respective4 organizations and/or communities, ancl appointed by the PMRB or CMRB.5

6 Provided further' That the conduct of smali-scale mining shal l also comply r.vi t6 the7 prohibit ions and regr-r lat ions establ ished l-rcrein for large-scale rnining. Only qual i f iecl8 individuals and cooperatives may apply for a small-scale mining permit.9

10 Sect ion 68. Maximum term of smal l -scale min ing permi ts . The term for smal l -scale11 rn in ing permi ts s l la l l be threc (3) years. extenclable to a maximum of f i f tee ' (15) vears.12l3 Sect ion 69. Tradi t ionai smal l -scale mining within ancestral c lomains. The Co,nci ll4 shall condttct regular monitoring activit ies within its jurisdiction to determine if thel5 provisions of relevant larvs are complied rvith in tradit ional small-scale mining bv16 ICCs/IPs r.,, i t lr in their rcspective ancestral domains.17lB Section 70. FPIC in small-scale mining. SnlalJ-scale mining wit|r in ancesttal clornain19 by any person shall also require the free, prior inlbrmed consent of ICCs/lps.2021 Sect ion 71. Reqr-r i rcnrenl for an E,nvironmental Compl iancc Ccrt i f icatc. Smal l -22 scale mining shall l iker'r ' ise require an Environmental Compliance Certif icate. AII small23 scale rnining applicants or proponents must showproof of compliance r.vith the terms and24 'conditions of its Environmental Compliance Certif icate (ECC) prior to t6e issuance of a25 smal l scale mining permit . I rai l r - rre to submit th is requirement u, i l l resul t i ' the non-26 issuance of the SSMP.2728 Sect ion 72. Environmental measures in smal l -scale mining. The State shal l29 imrnediately address the environmental and health problems in small-scale mining,30 including the Llse of l tazlrdous cl temicals, such as rnercLrry and cyanide, in the3l amalgamation of gold by smal l -scale rniners." ) a

31 Sect ion 73. Prohibi t ion on the use of mercury. Mercury Lrse in smal l -scale mining34 shall be proli ibited. Tire Br-rreau shall research, develop ancl activelv promote appropriate35 technologies in stnal l -scale rnining inclucl ing labor- intensive met6ocls, environmental36 protection and ph1'sical techniques of gold extraction among small-scale miners.a F ,) /

38 Section 74. Mult iscctoral Monitoring Tcam. A mult isectoral monitoring team sha.l l39 be organized to n' lor" l i tor the SS\' lP permittec's compliance rvith the terms ancl concl i t ions

Page 25 of43

1 of its SSMP anci E,CC. The MMT shall conduct ocular inspections of the SSMp area at2 any time of the dav and night and shall have visitorial powers.a

4 Sect ion 75. Al ternat ive l ivc l ihoocl suppor t . The state s l ra l l supDort the improvement5 of the l ive l ihoocl o l 'smal l -scale-miners by extending the serv ices fbr access to other more6 viable and sustainable forms of l ivel ihoocl, and, i f the same is not possible, the fol lowins7 supporl services:

8

9 (a) access to ;r inerals marl<cts ancl to f ina'cing;10 (b) faci l i tat ing partnership r,vi th mining cornpanies or contractors by, among others,11 requi r ing rn in ing companies to buy ta i l ings f rom smal l -scale rn in ing operat ions12 for f i l r t l rer processing or recycl ing;13 (c) fac i l i ta t ing par tners l t ip amons smal l -scale min ing cooperat ives; and14 (d) other incentives to aftract inforrnal small-scale miners to formalize their status.t 516 Section 76. Buying stations. The Bangko Sentral ng Pil ipinas shall enslre that buying17 strt ions acqttire golC from small-scalc traclers at prevail ing international golct market pricel8 and prevai l inq ercl langc ratc sct b1' the BSP Treasury Departrnent on a clai lv.basis.l 920 CFIAPTER VII21 aUARRY RESOURCES2223 Section 77. Qrrarry resources n'ithin ancestral clomrins. Gathering of qlrarry24 resoLlrces, sand and gravel, guano and other organic fertilizer materials, and gemstones25 rvithin ancestral domains shall l i l<ervise be subject to the free prior informecl consent of26 ICCs/lPs. ICCs/lPs :ncl thc governrnent shall be entit lecl to at least ten per cent ( 10%) ot'27 royalties clepencling on u'hether the resolrrces are for-rncl insicle of or-rtside ancestral28 domains. Permits sirall be i imited to a maximum term of f ive (5) years, renewable 1br29 like periods but not exceeding a total terrn of tr,venty five (25) years, ancl a maximllm area30 of f ive (5) hectares.a 1

32 Section 78. Quarry Permit. Anv quali f iecl person may apply to the provincial lci ty33 mining regulatory board Ibr a qLrarry permit on privately-owned lands except ancestral34 domains and/or ptrbl ic lands for bui lcl ing ancl construction materials such as marble,35 basalt, andesite. conglomerAte, tLrf l . adobe, granite, gabbro, serpentine, inset f i l l ing36 materials. clav for ceratnic t i les ancl bLri lcl ing bricks. pumice, peri i te ancl other similar37 materials that are extracted bv quarr,ving fiom the gror-rncl. The provincial governor shall38 grant the permit after the applicant has compliecl rvi th al l the requirements as prescribecl39 by the rules and regr-r lat ions.

Page 26 of 43

I The marimltm area rvhich a qual i f ied person may hold at any one t irne shal l be f ive2 hectares (5 has.): Provided, That ir-r large-scale qliarry operations involvipg cement raw3 materials, marble. granitc. sand anci gravel ancl construction aggregates, a qualified per.son4 and the government mav enter into a mineral agreement as clefined herein.

5 A qLrarrv permit slrr i l have a term o[ f ive (5) years, renevvable lbr I i l<e periods bLrt n.t to6 exceed a total ternr of trverrtv-f ive (25) years. No qLrarry permit shal l be issuecl or granted7 on anv area covered by a mineral agreement.8

9 , Section 79' Quarrv Fec and Taxes. A permittee shal l pay a qlrarry fee as provided forl0 t tnder the implentctt t ing rulcs and regulat ions. Tire permittee shal l also pay t6e excise tar1 1 as provided by pert inent laws.12l3 Sect ion 80. Cancel lat ion of Quarry Permit . A quarr l , permit may be cancel led by the14 provincial governor ibr v iolat ions of the provis ions of th is Act or i ts implement ing rulesl5 and regtliations cl the [ertns and conditions of said pern'l it: Proviclecl, That before the16 cancellation of sitch permit, the holder thereof shall be given the opportunity to be hearcl17 in an investigation conducted for the purpose.t 8

19 Sect ion 81. Commcrci : t l Srncl ancl Gravel Permit . Any qual i f iecl person rray be20 granted a permit by the provincial governor to extract and remove sand arrcl gravel or21 other loose or t lnconsolidated materials outsicle ancestral domains which are usecl in t l ieir22 natttral state, without r-rndergoing processing from an area of not more than five hectares23 (5 has.) and in sttch qr-rantit ies as mav be specif iecl in the permit.1 AL A

25 Section 82. Industrial Send and Gravel Permit. Any qualif ied person may be grantecl26 an industrial sand ancl gravel permit by the Bureau for the extraction of sancl and gravel27 and other loose or Llnconsol idated mater ials outsic le ancestral c lomains that necessi tate the28 use of mecharrical processing covet' i trs an area of more than five hectares (5 has.) at any29 one time. The permit shall heve a term of f ive (5) years, renewable for a I ike period but30 not to exceed a total term of tr,venty-five (25) years.a ' l

32 Section 83. Erclrrsive Sencl and Gravcl Permit. Any qualif iecl persor-r may be granled33 an erclusive sarrcl r:rcl greve) pc-ir l i t b-"- thc provincial governor to qr_rarry ancl r,rt i l ize sand34 and qravel or otltet ' Ioose or Lrnconsoliclatecl materials from public lands for ir is own Llse.35 Provided, That there wil l be no commercial disposit ion thereof.3637 Section 84. Government Gratuitous Permit. Any government entity or38 instrumentality maJ- be granted a gratuitous permit by the provincial governor to extract39 sand and gravel, quarry or loose unconsolidatecl materials outsicle ancestral domains

Pase 27 of 43

1 needed in the construction of br-ri lding and/or infrastructure for pLrblic ,se or other2 pLlrposes over an area of not more than two hectares (2 has.) lbr a periocl coterminous3 with saici construction./ l

5 Section 85' Private Gratuitous Permit. Any owner of land may be granted a private6 grattritotls permit by tlte provincial governor to extract sancl and gravel, quarry or looseI unconsolidated materials within his propeftv.89 Section 86' Guano Pcrmit. Any qualif ieci person may be granted a gLrano permit by

l0 the provincial governor to extract and uti l ize loose Llnconsoliclated guano and ot6erl1 organic ferti l izer materials ir.: any porl ion of a municipality r,vhere 5e l ias establishecl12 domicile otrtside ancestral clornains. The permit shall be for specif ic caves and/or forl3 confined sites u'i l lr locations verif iecl by the Deparlment's f ielcl off icer in accorclance r.vith14 existing rules and regtrlatiorrs. Proviclecl, That extraction cloes not violate ancl is consistentl5 rvith the provisions in the Cave Conservation Act ancl the Wilcl l i fe Act.l 617 Section 87. Gemstone Gattrrering Permit. Any qualif iecl person may be granted a n.n-18 erclusive gemstone gathering perrnit by the provincial governor to gather loose stones19 useful as gemstones in rivers and other locations outside ancestral clomains.t021 ,

CHAPTER VII I . TRANSPORT. SALE AND PROCESSING OF MINERALS22

23 Section 88. Ore Transport Permit. A perrnit specifying tlre origin and quantity of24 non-processed mineral ores or minerals shall be required for their transporl. Transpor-t25 permits shall be issued by the Bureau. The absence of a permit shall be considerecl as26 prima fucie evidencc of i l iegal mining and shall be sufficient cause ibr the confiscation of27 the ores or minet'als being transportecl. t ire tools ancl eqr-ripment uti l izecl, ancl the vehicle28 containing the same.2930 Section 89. Tracl< Record. Only mining companies r,vith clemonstrated capacitv and3l good environmental tracl< recorcl in mineral processing shall bc allor,ved to extract32 minerals. The Cottncil shall encoltrage contractors to pr-rt Lrp processing plants rvithin the33 community r 'vith the end in vier,v of generating employment and cleveloping other34 dorvnstreamindustr ies.

3; Section 90. Mineral Tracling Rcgistration. No person shall engage in t ire tracling of37 mineral products,, either locally or internationally, unless registered with the Department38 of Trade and Industry and accredited by the Deparlment, witl-r a copy of saicl registration39 submitted to the Bureau.40

Page 28 of43

I Sect ion 9I ' NI i I rera l Processing Permi t . No person shal l engage in the processing of2 minera is rv i thout f i rs t secr : r ing a minera ls processing penni t f rom t i re Counci l . Minera ls3 processing permits shal l be for a periocl of f ive (5) years) renewable for l ike periocls but4 not to exceed a total term of trventy-five (25) years.5

6 CIJAPTER IX. DE\/ELOP\,{ENT OF COMMUNITIES.7 SCIENCI] AND TECHNOLOCY8

9 Section 92. Erpenditrtre for Community Development. A contractor shal l assist inl0 the developrnent o1' the community, ancl the promotion of the qeneral rvelfare of i tsI 1 inhabitants tor 'vards sustainable clevelopment. Community clevelopment projects s6al l in12 no wav decreasc the obl igation of the corporation with regard to royalt ies ancl fees clue tol3 communit ies or local government units. Community development projects should be14 consistent r.vi th the Comprelrensive Land Use Plans (CLUp), Ancestral Domains15 Strs ta inable Development and Protec l ion Plan (ADSDPP) and annual inr . ,estment p lans; ofl6 the LGUs, and the l i l<e.1 7

18 Sect ion 93. [ ,mployment of F i l ip inos ancl t ra in ing of members of the locall9 communi ty .A contractor shal l g ive preference to F i l ip ino c i t izens in a l l types of min ing20 emploi 'ment r ' r ' i t l t in the cortntry. Me:nbers o1'the local commLlt l i ty sh-l l be trained in al l2 l aspects of the min ins operat io t ts . inc lLrc l ine remin ing, recyc l ing, re6abi l i ta t ion, and the22 management thcreol..) .

24 Sect ion 94. Use of Inc l igenot ts Goeds, Ser ' " ' ices ancl Technologics. A contractor s6al l25 give preference to the use of local goocls, seruices ancl scienti f ic and tec6nical resoLrrces26 in the mining operations, where the same are of equivalent qual i ty ancl are avai lable on27 equivalent terms as their imported counterpafis.2 829 Sect ion 95 ' Donl t ion/Turn Over of Faci l i t ics . Pr ior to the ccssat ior r o f min ing30 operatiorls occasionecl bv abanclonment or rvi thclrawal of operations, on public lancls by3l Jhe contractor, the latter shall have a periocl of one (1) year therefrom ,uvithin wl,rich to32 remove improvements; othenvise al l the infrastructure, faci l i t ies ancl equipment shal l be33 ttlrned over or donated tax-fi 'ee to the proper g6rl,spnment ar-rthorities. national or local, to34 ensure that said infrastructure faci l i t ies ancl equipment are continuogsly maintainecl ar-rcl35 ut i l ized by the l iost ancl neighboring communit ies. A f ine of one hr-rndrecl thor-rsancl pesos36 (P100,000) shal l be imposed for every day of c le lay.a 1

i* CI-IAPTER X. BENE'IIT SFIARING. TAXES AND FEES

Page 29 of 43

1 Section 96. Tares and fees. The contractor shall pay all taxes ancl fees as requirecl by2 lar,v, including, but not l imited to:a

4 a. contractor's income tax;5 b. cttstoms, duties and fees on imporled capital eqr-ripment;6 c. value-added tax on imported goods and services;7 r d. r'vithholding tax on interest payments on foreign loans;8 e. rvithholdins tar on clividerrds to foreisr-r stocliholclers:9 f. documentary stamps taxes;

l0 g. capi tal gains tax;I t h. excise tax on minerals,12 i . iocal business tax;l3 . i. r 'eal property tar;14 k. commllnity tax;l5 l . occupat ion fees;16 m. registration ancl permit fees:17 n. rvater Ltsaqc ftes.l 819 Section 97. Government sltare. Aside fi 'om the taxes ancl fees referred to in the20 preceding section, Government shall have at least a share equivalent to ten per cent ( 10%)21 of the gross reveltlles from the development ancl utilization of mineral resources that are22 or,vned bf it to bc sct asicie 1'or the general funcl of the sovernment.

)O Sect ion 98. Incl igcnous Cultural Communit ies ' Royalty. In case of mineral25 operations rvithin ancestral domains, the contractor shall pay at least ten per cent ( 10%) of26 the gross reventles as royalt" ' to the ICCs/IPs. Cornmunity cleveloprnent programs s6all27 not be considered as royaltl"payment. The payment of the royalties shall directly be giyen28 to the commLlnit ies in a process that build on tradit ional and customary laws.2930 Provicled, That the loyalty established in this Act shall be a minimum rovalty payment3l ancl rnar sti l l be strbject to other conditions to be agreecl by the parties. f i-ee fi-om any32 external manipulation, interference, coercion, ancl other analogons acts, and obtained after33 fully disclosing the intent and scope, including tlre posit ive ancl negative irnpacts of the34 activity. in a langLtage and process ',rnderstandable ancl acceptable to them.

36 Section 99. Scienfific Rcsc:tt'ch antl Developmcnt Frrnd. A Scienfific Resear-ch ascl37 Development Fund shall be set aside to be devoted to research and developmelt of clean38 mining technologies,, improvement of mining processes, mine rehabil i tation,, mitigating39 technologies,, setting Llp and maintenance of an inclependent nool of expefts, and40 operational expenses of the Bureau.

Page 30 of43

I

t

2 Section 100. Legal Support Services Funcl. A legal sr,rpport fur-rd shall be set aside for3 the use of the commlrnit ies and local government units for cases that they may fi le against4 mining permittees or cases that rnav be fi led against t l-rern by mining cornpanies in trying5 to do their responsibil i tv of protecting the rights of the marginalized groLrps, the6 environment anci sr-rstainable development in seneral.

I Q

8 Section I 01 . Local Govcrnmcnt Unit Share. Local Government Units shall be entit led9 to share of the net revenlres fi 'om mining operations rvhich shall be paid directly to the

l0 provincial i indepenclent component c i tv/higlr lv urbanized ci tv t reasurer is for distr ibut ionI I to other local government r:nits. To determine the government share" the lblloiving12 var iables shal l be considered:l 314 a. Classif ication of local gor, 'ernment;15 b . Vu lne rab i l i ty ;16 c. I - luman development inclex.1'.7l t

18 "A percentase of th is Amount shal l be set asic le by the respect ive local qovernment uni tsl9 for Disaster Risl< Managernent. This fund shal l l ikewise benef i t ICCs/ lPs r ,v i th in the20 territory of the local government unit.2122 Provided, That the administrative ancl operational expenses of the Council shall also be23 tal<en fi'om this sharc.2425 Sect ion 102. Mine W:rstes and Tai l ings Fees. A semi-annual fee to be known as mine26 rvastes and tai l ings fee is hereby imposed on al l operat ing mining companies in27 accordance rvith the implementing rules and regr-rlations. The mine wastes and tail ings fee28 shall accrl le to a fund to be used as sll l lport funds for monitoring activit ies of the Council.29 The Secretary is ar-rtl-rorized to increase mine wastes and tailings fees, r,vhen public interest30 so requires.a lJ I

32 Sect ion 103. Inccnt ives. Inccnt ives that shal l be eiven to the contractors shal l onlv be33 l imited to pol lut ion control or rni t igat ion devices.. A

3536 CHAPTER XI. SAF'ETY AND ENVIRONMENTAL PROTECTIONa 1

38 A. Safbtvl q

Paqe 31 of43

1 Section l0zl. Mines Safety. All contractors and permittees shall strictly comply with all2 the mines and safetlz rttles and rcgulations concerning the safe ancl sanitary upkeep o{,the3 mining development. Government personnel involvecl in the ir lplementation of mines4 safety, health and environmental rules ancl regulations shall be covered under. Republic5 ActNo. 7305 or the Magna Carta of Publ ic Fleal th Workers.67 Sect ion 105. Mine Labor. No person uncler s ixteen (16) years of age shal l be employed8 in any place of mining operations ancl no person under eighteen (18) years of age shall be9 employed in a mine.

10I 1 Sect ion 106. Mine Supen' is ion. Al l mining and quarrying operat ions shal l have at l t :ast12 one (1) l icensed mining engineer for everv f i f ty (50) emplovees. Suc6 engineer/s s6al l13 have at least f ive (5) years of experience in mining operations, ancl one (1) registerecll4 f'oreman.t iI J

16 Section 107. Safcty' of Worl(ers. All mining companies shall provide salbguards to the17 health and

"vell-lreing of r.,,orkers. The ftegional Officc of the Department of Labor ancl

18 Employment shal i inspect al l mining si tes r ,v i t i r in their areas of . jur iscl ict ion to c letermineI 9 the cond i t ions o I rvor l<ers. Denial of entrv shal l be punishable uncler th is Act.20 Representatives of labor unions shall also have visitorial r ights.2 l22 Sect ion 108. Mine Inspect ion. Tl te mines regional directors and the Counci l shal l 61ve23 jurisdiction over the salety inspection of all installations, surface or unclerground, in24 mining operations at reasonable hours ol ' day or night ancl as mucfu as possible in a25 manner that rvi l l rrot irnpede or obstruct rvorl< in progress of a contractor or permitlee.26 Monitorinq reports and reconrmendations of the Bureau shall be subrnittecl to the Cor-rncil.2728 ,Section 109. Port'er to Issue Orders. The mines regional cl irector, in consultation wit629 the Environmental Management Bureau, forlhwith or within such time as specif iecl in t6e30 order, require the contractor to remedy any practice connectecl r,vith mining, which is not3l in accordance u'it l t safety ancl anti-pollr- it iorr larvs and regulations. In case of imminent32 danger to l i lb or properly. the Director may summaril l , suspend the rnining operation unti l33 the danger is removed. or appropriate lreaslrres are tal<en by the contractor. Unreasonable34 delay to remove the danger or introduce the necessary improvements by the contractor35 shail be a cause for t ire cancellation of the mineral aqreement.363l Section 1 10. Report of accit lcnts. In case of any incident or acciclent, causing or3B creating ti le danger o1' loss of l i fe or serious physical iniuries, the person in charge of39 operatiotts shall imntediately report the same to t l-re regional ol ' f ice where tire operations40 arc situatecl. Irailtrre to repot't the sarrrc n,ithout iustif iable reason shall be cause for the

Page 32 of 43

1 imposit ion of administrat ive sanctions prescribecl in the rules and regr-r lat ions2 implement ing rh is Act .-,

4 , B. Environmental protection

5

6 Sect ion I I l . Envi ronmenta l Inst t rancc. Contractors ancl minera l processing permi t7 holders shal l be obl iged to execute an insurance contract as an environmental assuranceB for each and every sollrce of pollution or disaster, relative to the "worst case scenario,,9 costs, follorving accepted actuarian standarcls, Provicled, That in no way shall this

10 provision be construeci to remove or reduce the l iabi l i ty ol ' the contractors ancl/or permitl1 lrolders to compensate anv damage caLrsecl by their operations. Protticledfurther, That the12 insltrer shal l bc an accreditecl international company in good standing.1 al 1

14 Prior to the approval of the insnrance contract by the DOST. the DOST shall seek ancll5 consider the opinion of an indepenclent experl as to the f inancial credibi l i tv of the insurer.1617 Section 1 12. Calamity ancl Fluman Rights Protection Funcl. Persons issued a mineral18 agreement shal l deposi t f ive mi l l ion pesos (Php5,000,000.00) semi-ann'al ly in an19 intercst-bearinq accottttt a cfn.rlnorr funcl maintained by the national government rvhich20 shall be r-rsed for rcsponding to, or arneiiorating the effects of calamities, natural cl isasters2l and human rights violations inclucling mil itarization, cl isplacement, and forcible22 evacttation in anv part of the countrv in relation to mining activities. provicled, That in no23 r'vay shall this provision be constnrecl to remove or recluce the l iabil i ty of the contractors24 and/or permit holders to compensate any clamage causecl by their operations.l 526 Sectiorr 1 13. PerformAncc Bond. The contractor shall put Lrp a bond in an amount27 eqr-rivalent to f ift l 'pcr cent (50%) of the projecteci cost of rehabil i tation as valiclatect by28 independent stLtdies. This anot-urt shall be clepositeci in an interest-bearipg accoLrnt. The29 bond shall be lbrfeitecl in the event that the contractor shall ftril or clefuult in the30 rehabil i tation or remediation of the rnining area as inclr-rded in the r,vork plan of the31 contractor or abandons the rnine at anv time of its operations.

33 Sect ion 1 14. Rehabi l i tat ion. Contractors ancl perrni t tees shal l technical ly ancl34 biologically rehabil i tate the excavated, minecl-out, tai l ings coverecl ancl cl isturbecl areas to35 the condition of environmental safuty, as may be provided in the implementing rules and36 regulations of this Act. A ttr ine rehabil i tation furncl shall be createcl, based on the37 cotttractor's appro\iecl u,orl< pfogram, and shall be clepositecl as a trust f,nd in a38 sovernment depository bank and usecl for physical and social rehabilitation of areas ancl39 communities affected bv mininq activit ies ancl Ibr research on the social,, technical and40 preventive aspects of rehabil i tation. Failr,rre to fulf i l l the above obligation shall mean

Page 33 of ,13

1 immediate suspension or closure of the mining activit ies of the contractor/permittee2 concerned.a

4 Section 115. Progressive rehabil i tation. Contractors shall also concluct progressive5 rehabil i tation activit ies.67 Sect ion I 16. Adopt ion of Precaut ion:rry Pr inciple. When an act iv i tv related to mining8 raises threats of harm to httman health or the environment, precautionary measllres shall9 be taken proactively even if some cause and effect relationship are not fully establishecl

10 scientif ically. The mining proponent and the Bureau shall also be obligecl to clisclose1l rvhether or not thc cause anci effect have not vet been scientif icallv established.12l3 Sect ion 117. Adopt ion of Pol luter Pays Pr inciple. Pol luters shal l poy for the damage14 they callse to the environment. The amount of damages shall be determinecl by accreclitedl5 '

independent consultants, to be chosen from a l ist and agreecl r-rpon by both the mining16 proponent and by the Counci l .17l8 Sect ion 1 18. Tai l ings impoundment. Tai l ings impoundments shal l be br-r i l t away from19 crit ical watershed drainage areas. Irurthermore, it shall be ensured that wil l not endanger20 crit ical watershed areas or lorv lying valleys in the event of accidents uncler abnonnal21 condit ions. Tai l inc impottndments and dams shal l rneet the internat ional stanclarcls for22 large dams.a a

;; Section 1 19. Dumping of rvaste. Dumping of rvaste or tail ings in any body of water25 shall be prohibited. Provisions on the Clearr Water Act shall be strictly implemented.2627 Sect ion 120. Use of tor ic chcmicals ancl methocls. At al l t imes, rnining contraclors28 shall use chemicals or reagents which rvould result to the least environmental ancl social29 destruction. The use of mercLlry and cyanide for the ertraction of gold, si lver and ot6er30 minerals shall be prohibited. -fhe use of blow torching to separate golcl f i 'om amalgam31 siral l l ikervise be nrohibi ted.a ^

;; Section 121. Prcservation of topsoil. The removecl topsoil, or the more prodr-rctive34 horizons of the soil shall be nreserved fbr other uses.

aZ Section 122. Priority use for rv:rter. The National Water Resources Board shall37 investigate any existing use of r,vater resollrces in the area whether or not coverecl by any38 existing water permit or registration. Upon determination of any existing Lrse, the39 applicant sl-rall procure the consent of all r'vater users and/or the I'ree prior and informed40 consent of ICCsiIPs u''ith or rvithout urater perrnits rvithin the same groundu,ater network41 or any dorvnstreAm users of u,ater resoLrrces. In all instances,, priority shall be given to use

Page 34 of43

I of water for domestic, mttnicipal. and agricultural pLrrposes. If potential negative impact2 on other water users is identif ied, the water permit shall not be granted. For urater3 resollrces within the ancestral domain of incligenous peoples, no water permit shall be4 granted by the Nationai Water Resources Boarcl rvithout tl-re free and prior informed5 consent of indigenol ls peoples.67 Section 123. Recyling of n'ater resources. Water used in mining operations shall be8 recycled. Minins contractors shall be reqr-rirecl to provicle for the rnethocls or equipments9 for the recycling or reuse o1'r'vater. Released contaminated rru,ater shall be treatecl

10 accordingly to meet national standards. Releasecl r,vater must at least be eqtrivalent in1 I quality to the baseline r,vater quality.1213 Section 124. W:rtcr user fce. A u'ater user fee that reflects the value of water to thel4 col tntrv and comtnttni tv shal l be imposecl by' the Counci l for r ,vater used in mini 'g15 operations. Contractors shall pa),the fee to the National Water Resources Boarcl rvhich16 shall Llse the same for monitoring ancl improvement of the affectecl wategvavs and17 systems and the rnit igation of negative impacts thereon to ensure that commLrnities shall1B have access to clean rvater.192A2l C. Acid Mine Drainase22

23 Sect ion 125. Prohibi t ion from using acic l-generat ing rvaste rocl i to bui lc l roacls or24 dams. To prevent or rnit igate acid mine clrainage, there shall be a prohibit ion against25 ,Llsing acid-generating ',vaste rock to builcl roacls or dams or other infrastructures. The use26 of such materials shall only be used after treatment to neutralize the effect of acicl mine27 drainage.2829 Sect ion 126. E,stabl ishment of a precl ict ion ancl monitor ing system. A precl ict ion and30 monitoring system shall be in place to identi l i potential acicl-producing materials and31 monitor their prodr-rction of acid rvaste.

;; Section 127. At'oidance of rvatcnvays. Open pits, r,vaste rocl< piles ancl tail ings34 impoundments shall not be built near or on watenvays to prevent contact and subsequent35 acid production and groundrvater contamination.3637 Sect ion l2B. Remining. Remirr ing shal l be pr ior i t izecl over the opcning o1'ner.v mines to38 maximize and recover the remaining minerals from the rejects or lrrastes of previor-rs39 mines and mining operations, Provided, That remining operations shall fol low the40 proceses, standards, parameters and guidelines set for mining operations.

Pase 35 of43

l l

2 Section 129. Suits after t l te terminntion of contracts or proiects. Recognizing t6at the3 eff,ects of mirrinq may be seen or felt, actions relating to the health of affucted4 communities or peoples, environmental degradation ancl other similar effects may be5 maintained against the proiect proponent and/or persons even after the mineral agreement6 or mining project has terminated.78 CHAPTER XII. RESOLUTION OF CONFLICTS9

I0 Sect ion I 30. Panel of Arbi t rators. There shal l be a panel of arbi t rators in the regional11 office of the Department composed ol ' three (3) members, two (2) of rvhom must be12 membet 's of the Phi l ippine Bar in good standing and one a l icensecl minine engineer or a13 professional in a related field, and duly designated by the Secretary as recommended by14 the Mines and Geosciences Bureau Director. Those designated as members of the panel15 shall serve as such in addition to their rvorl< in the Departnent rvithout receiving anyl6 additional compensation As tnuch as practicable, saici members sftall come from the17 different bttrealts of t l-re Deparlment in the regiorr. The presiding officer tf iereof shall bel8 selected by the drawing of lots. His tenure as presiding officer shall be on a yearly basis.19 The members of the panel slrall perform their duties ancl obligations in hearing ancl20 deciding cases unti l their designation is withdrawn or revoked by the Secretary. Wit6in21 thirty (30) rvori<ing clays, after the submission of the case by the parties 1br decision, the22 panel shall have exclttsive and original jurisdiction to hear ancl decicle on the following:23 a. Quest ions i t rvolv ing compl iance with the establ ished technical guidel i les24 and standarcls herein established, or those to be establishecl bv tl-re25 implementing rules and regulations of this Act;26 b. QLrestions involving the cornpliance lvith technical procedures herein27 established, or t lrose to be established by the implementing rules and28 regulations; and.29 c. Other s imi lar instances u,herein the technological ancl techrr ical erpert ise of30 the Department shal l be needed.3 l

32 Disputes involving real rights, contractual obligations and the other callses of action that33 are otttside the technological and technical expertise of the Panel of Arbitrators shall be34 underthe .ir-rrisdiction of the reglrlar courts oras otherwise providccl by otfier special lar,r,s.

.t

36 Provided, That disputes pending before the Bureau and the Depaftment at the date of the37 eflectivity of this Act shall undergo an immediate review within sixty (60) working clays38 Lrpor"t the passage of'this Act to detet'mine the cause of action. Those u,hich are outside the39 technical experlise of the Department or Bureau shall be refilecl with the appropriate40 cour1, without costs to the complainant or petitioner.

Page 36 of43

12 Sect ion l3 l . Appeal. The decision or;orcler of the panel of arbi t rators may be appe' lecl3 by the parlv not satisfied thereto to the Mines Acljuclication Boarcl rvithin lLfteen (15) days4 from receipt thereo{'r 'r 'hich must decide the case 'uvithin thirty (30) days fi-om submission5 thereof for clecision.67 Section 132. Mines Adjuclication Boarcl (MAB). The Mines Adjuclication Boarcl shall8 be composecl of t lrr lc (3) rnernbers. The Secretary of the DOST s6all be t6e Chairperson9 rvith the Director of thc Mines and Ceosciences Bureau and the Unclersecretary for

10 Operations of the Depafiment as members thereof. The Boarcl shall have the followinsI I ,pouzers and functions:1213 a. To promttlqate rr-t les and regulations governing the hearins ancl cl isposit ion of14 cascs beibre it. as rvell as those perlaining to its internai fgnctions. alcl suc6l5 rules and regulations as may be necessary to carry out its functions;16 b. To administer oaths, sttmmon the parl ies to a controversy, issue subpoenas17 reqLtir ing the aftendance ancl testimorly of r,vitnesses or the procluction of suchI 8 bool<s- papcrs. contracts, recorcls. statement of accourrts. agreements, and ot6er19 documcnts as may be material to a just determination of t ire matter uncjer20 investigation. and to testify in any investigation or hearing conductecl in21 pLlrsLlance ol.this Act;22 c. To conduct hearings on all rnatters within its juriscliction. proceed to 6ear and23 determine the disputes in the absence of any party thereto rv6o has been24 sllmmoned or served rvith notice to appear, concluct its proceeclings or any part25 thereof in public or in private. acljourrr its hearings at any time ancl place, re1.er26 technical rnatters or accounts to an experl and to accept his report as eviclence27 after hcaring of the parties upon due notice,, cl irect parl ies to be joinecl in or28 excluded fi'om thc proceedings, correct, amencl,, or waive any error, de{bct or29 irregr-rlarity, whether in substance or in form, give all sucl-r directions as it may30 deem necessary or erpeclient in the cletermination of the dispute before it. ancl3l disrniss the minirlg cl ispLrte as part thereol. where it is tr ivial or nftere f ' f iher32 proceeclings by the Boarcl are not necessarv or clesirable:a aJ J

34 1. To holcl any person in contempt, cl irectly or indirectly, and impose35 appropriate penalties therelbr; ancl36 2. To enjoin env or all acts involving or arising fiorn any case pending37 before it which, if not restrained forthwith, may caLrse grave or38 in'eparablc clamage to any ol 'the parties to the case or seriously affect39 social ancl economic stabi l i tv.40

Page 37 of 43

1 In any proceeding before the Boarcl, the rules of evidence prevail ing in courts of lar,v or2 equity shall not lre controll ing anci it is the spirit anci intenrion of this Act that shall3 govern' The Board shall use every and ali reasonable means to ascertain the facts in each4 case speedilv and obiectively ancl rvithout regard to technicalit ies of Iarv or proceclure, all5 in the interest of dtre process ancl social jr-rstice. In any proceecling before t5e Board, the6 parties may be representecl by legal counsel. The finclings of fact of the Boarcl shall be7 conclusive and binding on the parties and its decision or order shall be final anclB executory.9

10 A petition for revieu' by cer'liorari and qr-restion of law may be filecl by the aggrieved1l pafty rvith the Suprelre cottrt r,r'ithin thiftv (30) clays fi'om receipt of t6e orcler or clecision12 of the Board.l 314 CHAPTER XI I I . ACCESS TO JUSTICE15

16 Section 133' obligation to respect trruman rights. Corporations shall respect, protect17 and promote the human rights of commr-rnit ies affectecl by mining, inclucling t6e right tol8 l i fe, l iberty and property, f i 'eeclorn of movernent, r ight of public participation ancl the riglht19 to sel f -determinat ion of incl igenous cul tural commLlni t ies.2021 Sect ion 134' Viol : r t ions of human r ights. Extrajudic ial l< i l l ing, torture, involuntary22 disappearance, forcible displacement of populations, ancl imposition of toll fees whic623 impede the freedom of lrlovement within mineral areas, deprivation of food ancl water24 sollrces' vote-buying ancl bribery for the plrrpose of securing consent or enclorsement for25 the mining project, ancl other analogons acts are violations of human rights. Violations of26 human rights by contractors shali calrse the immecliate cancellation of mineral27 agreements' The off-encling contractor, as r.vell as corporations having t5e same clirectors28 and/or officers as of the offencling contractor shall be perpetually clisqr-ralified from being29 granted a mitleraJ r-sreen'rent. All equipnrent anci assets of the corporation or person shall30 be confiscated in favor of the sovernment.3 l32 Sect ion 135' Use of p:rrami l i tary and mi l i fary forces. AII mi l ing companies are33 strictly prohibitecl to ernplov paramilitarl 'grolrps. Use of private ancl mil i tary forces shall34 resul t in the cancel lat ion ol ' the mineral agreement ancl the f i l ing of appropr iate civ i l ,35 criminal and/or administrative charses.3637 Section 136. Strategic Legal Action Ag:rinst Public Participation (SLApp). SLApps38 shal l be str ict lv prohibi ted. SLAPP is any legal act ion, whether c iv i l , cr iminal or39 administrative, f i lecl to ltarass, vex, ereft legal action or stif le legal recourses of40 communitv members complainine against v iolat ions of th is Act or enforcing thr:

Pase 38 of43

1 provisions of the Act, or exercising their f i 'eedorn of assembly or right of public2 participation' The investigating prosecutor or court shall immediately cletermine within a3 period of thirtv (30) clavs from fi i ing thereof whether a legal action is a SLApp and4 accordingiy dismiss thc same.

6 Sect ion 137' Indigents ' s ' i t . Incl igents shal l be exempt f i -orn payrnent ol . any7 administrative or cottrt fees, inclr,rding clocl<et fees for the fi l ing of a case. Lawyers shall8 be provicled to palrpcr l i t igants in case they cor-rlcl notafforcl legal services.9

10 Section 138' Applicaf ion of the customary larvs of rccs/Ips. The contractor shallI 1 respect the cttstomary larvs of t lre ICcs/lPs and shall submit to processes of their12 customarv larvs, Provirlecl, That tl-rese laws are not contrary to the provisions of thel3 Const i tut ion.1415 Sect ion 139' Str ict I iabi l i ty. Mining corporat ions are str ict ly I iable 1br al l darnages t6at16 the mining operations might cause. in case of any actuar damage, the burden of proof17 shal l l ie rv i th the corporat ions.1B19 Sectio' 140' Picrcing tl lc corporate 'ei l. when the separate personality of the20 corporation fi 'onr its shareholclers is being invokecl as defense in orcler to perpetuate a21 crime' f i 'aucl or otl ler machinations, or evacle l iabil i ty. the separate personality of t6e22 corporat ion shal l be sct aside. c iv i l . cr iminal ancl aclministrat ive act ions may th,s be23 fi led directly against the nrenrbers of the Boarcl of Directors, off icers ancl/or indiviclual24 stocl<holders.

2526 Sect ion l4 l ' c i t izen Suits. I ror the purpose of enforcing t l re provis ions of th is Act or i ts27 implementing rules and regttlations. anv cit izen may fi le appropria:e civ,i l , cr. iminal and28 administrat ive sui ts against anv of the ib l lorvinq:2930 a' Any person r'vho violates or fbils to comply with the provisions of this Act or3l i ts imprement ing rrres ancr regurat io 's;32 b' Anv public off icer r 'r ' i th respect to orders, rules and regulations inconsistent1 aj j / with this Act;34 c' Any pLrblic ol ' f icer u'ho u'i l l ful lv or grossly neglects the performance of an act35 speci f ical lv enjoinecl as a dut 'by t l i is Act or i ts rules and regr lat ions; or36 abuses tlte aLrthoritv in the nerfornrance of a cluty/ies ,-rncler t l i is Act or its37 implement ing rules a.ncl regulat ions.3839 The court shall exempt such action fi'om the payment of filing fbes, except fees for40 actions not capable of pecuniat'.v'estimation, ancl shall I ikewise, Lrpon primaJacie shor,vinsr

Page 39 of43

1 of non-enforcement or violation complainecl of, exempt the plaintiff f iom fi l ingl an2 iniunct ion bond for the issuance of a prel iminarv in iunct ion.I \

4 within thirly (30) days Llpon the filing of the case, the court will determine whether or not5 the complaint is mal ic iot ts oi baseless and shal l accordingly dismiss the pet i t ion.67 CIJAPTER XIV. PENAL PROVISIONSB)9 Sect ion 142. Grouncrs for the cancel lat ion of permits:

l0 a. Violat ion of anv provis ion of th is Act;1 I b. I-iuman rights violations perpetrated b;, the contractor or any agent of the12 contractor;1 3 c. Non-payment of taxes;14 d' Briber5', Llse o1' force, intimiclation, threat, coercion of pgblic off icials ancll 5 co l - l tm l ln i t ies :

16 e. Any act that shal l create or contr ibute to conf l icts:17 f. Other analogous acts.l 819 Provided, that, vioiations of environmental provisions shall calrse tle immecliate20 cance l la t ion o f min ins permi ts , inc lud ing but not l im i tec l to Sect ions 1 lg , l i g , I )0 , lZ1,21 125 and 127' attd the contractor shall be requirecl to pay for the re6abil i tation, restoration22 or c lean Lrp o1' the i r rrpacts of such violat ions.a a

;; corporations, corporate clirectors/officers founcl guilty of the above enrrrreration may be25 subjected to a perpetual ban in the mining operations.2627 Section 143' False statements. Any person r.vho knowinel), presents any false28 application, declaration, or eviclence to the Government or pLrblishes or causes to be29 published any prospectus or otrre' inlbrmatior-r containinq any furse statement rerating to30 mines, mining operat ions or rnineral zrgreements and permits shal l , upon convict ion, be3l penalized by a fine of not exceeding One Flundred Thousand pesos (p I 00,000.00).3233 Section 144' It legal I ixploration. Any person undeftalcing exploration rvork r,vit6or-rt t le34 necessarv erploration perrnit shall. Lrpon conviction, be penalizeci by

" f ine of 'ot

35 exceedine F ive Mi l l io r r pesos (p5.000.000.00) .3637 Section lzl5' Panning. Panning shall be consiclerecl an act of mil ins. Ar-ry person38 r-rndertalcing panning without the necessary mining permit shall upon conviction, be39 convicted of i l legal panning penalized uncler sectio n 27 (RA 7076). In acldit ion, such40 person shall be l iable to pay damages macle to the environment by reason of suc6

Page 40 of43

1 panning' In the case of associations, partnerships, or corporations, the president ancl each2 of the directors thereof shall be responsible for the acts committecl by such association,3 corporation. or partnership.45 Section 146' Theft of Minerals. Any person extracting minerals ancl disposing the same6 r'vit l totrt a mining agreement. lease, permit, l icense, or steals rninerals or ores or the7 products thereof from mines or mil ls or processing plants shall. Lrpon conviction, be8 imprisoned from sir (6) months to sir (6) y'ears or pay a fine fiorn one l jundred thousand9 pesos (P100 '000.00) to one Mi l l ion pesos (pr ,000,000.00) or both , a t the d iscre t ion o1.l0 the appropriate colttt ' In acldit ion. he shall be l iable to pay clamages and compensation for1 I the minerals removecl, eltractecl, ancl disposed of. In the case of associations,12 partnerships' or corporations, the presiclent ancl each of the clirectors thereof shall be

:; respo'sible Ibr t l te acts committed bv suci-r association, corporatior. or partnership.

l5 Section 147' Unauthorized Dealing, sell ing, and/or Buying of Golcl. Any person,16 partnerslrip or corporation u'ho shall sell. buy or in any manner cleal goid lrom any miner17 or person rvithoLrt beirrq clr-l lv ar-rthorizecl b1, the Bangl<o Septrai pg pii ipinas slrall belB punislred as ttnattthorizeci dealing arrcl shall be penalized in accordance r.vith Section 14419 of th is Act.2021 Section 148' vit iatio' of FPIC. Any person found to have vit iatecl t lre consent of ttrre22 ICcs/lPs tlrrough bribery, threat, force, ancl/or intimidation, or an' ot1er similar means:,23 shall strffer the penalty of six (6) years ancl one (l) clay to ter (10) years in prison, and a24 fine of at least trvo mil l ion pesos (Php 2,000,000.00). If the perpetrator is a government25 off ic ia l ' t l re perral tv shal l be eight (8) years and one ( l ) , loy to t r ,velve (12)years26 imprisonment ' and a lLne of at least foLrr (4) mi l l ion pesos (php 4,000,000.00). Fleishe27 shall be perpettrallv'proiribitecl from assumins public off ice, ancl shall be clisqr-ralif ied28 fiom receiving other benefits by virlue of his/her posit ion in government.

2930 Section 149' Penaltl ' for httman rights violations. contractors or other persons who3l have' io latecl the hlrrnan r ig l , . '+.s of communit ies in connect ion with the rni ' i r rg operat ions32 shal l be penal izecl rv i th ten (10) y 'ears to lourtee. (14).vears i rnpr isonment ancl a f i 'e of at33 least f ive mil l ion pesos (Php 5.000.000,00) ancl shall indemnify the victirns.. AJ +

35 Sect ion 150' Amenr]mcnt to sect io n 27 of Republ ic Act No. 7076 or t6e smal l -scale36 Mining Act ' v io lat 'ons o1' thc provis ions of RA 7076 or of the rules and regulat io 's37 issued pursttant hereto shall be penalizecl rvith imprisonment of six years ancl I clay to l238 years' and shall inclLrcle the colrf iscation and seiz,re of eqtripment, tools ancl instruments,39 immediate suspension or closure of the rni ' ing activit ies of the permittee concernecl ancl40 revocation or cancellation of pcrmit.

Page 4l of 43

l

2 Section 151 ' Abanclonment. contractors and/or permiftees r,vho shall abandon mijnes3 shall be perpetually bannecl or cl isq,alif iecl from cond,cting mining operations, directly or4 indirectly' The ban ancl/or disqualif ication shall inclucle the offi."r, ancl cl irectors of5 corporations trrat hai'e abandonecr mi'es.67 Section I52' confiscation of equipment and property. The eqr-ripment and property of8 contractors and permit holclers violating this Act shall be forlbitecl in favor of the9 government.

10I I Sect io ' 153' Non-apPl icat ion of the corporate vei l . A'v person violat ing t 'e12 provis ions ol 'cornmonwealth Act No. 108, or the Ant i -Durnmy Law of the phi l ippines as13 amended, or is lbund to have usecl the corporate structure to defeat the provisions of thel4 Act shall sttffer the penalty of f ive mil l ion pesos (P5,000,000.00) ancl perpetual ban in thel5 min ing industn , .l 617 Section 154' Reinstatement of revohecl permits. After notice and hearing, revoked18 permits tlrat have unclergone due process may be reinstated, proviclecl, That it may onlyl n I .19 Lle rernstateci once.2021 CFIAPTER XV. TRANSITORY PROVISIONS.22

23 Section 155' There shall be a moratori lrm on all mining activit ies r-rnti l al l the systems24 are in place for the proper implcmentation of the lar,v.2_s26 Sect ion 156' Al l exist ing mining permits, I icenses ancl agreements are deemed cancel lecl .2728 Sect ion 157' The classi f icat io 'of publ ic lancls as mineral reservat ions pursuant to pre-29 exist ing l^rs shal l i lc .eby cease. Al i such lands shal l be closecl to rnining,nless openecl30 tl iereto in accordance rvith the provisions of this Act. Trre presiclent,s power to cleclare31 mineral reservations sllal l hencefofih cease to exist. A review of the current mineral32 land classif ication shall be conducted to cletermine tl-re best l ivelihoocl ancl economic33 option for the saicl area.

a / 1J +

35 Section 158' The members of the panels of arbitrators ancl the provincial or city mining36 regulatory boards established uncler Republic Act No.7g42shall hold-over their posit ions37 unti l replaced in acco'crance r,vitrr provisions of trris Act.3839 CI IAPTI]R XVI. ITINAL PROVISIONS40

Page 42 of 43

I Section 159' Seplrabil i fy clause. The provisions of this Act are hereby declarecl to be2 separable and. in the event of anv such provisions are deciared unconstit.rt ional, the other3 provisions \r'hich ar'.; not affuctecl therebv shall remain iri lbrce ancj efflect.45 Sect ion 160' Repeal ing clause. Republ ic Act 7g42, president ial Decree 4.63,6

'Presiclential Decree 512, ancl other relatecl mining laws are hereby repealed. All7 provisiorls in lau's- ciecrees and otlrer regulations inconsistent with t lr is present 1ar,v shall8 be deetnecl amenciccJ or repealecl i1't lre inconsistency is irreconcilable.

910 Section l6l ' Funcls' The amount of one I-ft-rndrecl Bil l ion pesos (phpll 100'000'000,000'00) is herebv appropriatecl for the proper functioning o1.the Bureau, t5e12 counci l , and other bocl ies establ ishecl under this Act.

1 at ' !

11 Sect ion 162' Implement ing Rules ancl Regulat ions. The implement ing rules ancl15 regtrlations of this Act shall be the procluct ofjoint collaboration by the Department, ancl16 representatives fi'om the local government units, peoples' organizations, sectoral17 organizations ancl non-governmental organizations. ancl shali be clrar.vn up after18 appropr ia tepubl icconsu l ta t ions.1920 Section 163' I l ffectivify clause. This Act shall take effect within f ifteen (15) clays2l fo l lor 'v ing i ts publ icat ion in tuo newspapers of general c i rcLr lat ion i1 t6e p6i l ippines.22Fl ''l

; ; Approved,

Page 43 of 43