Mutual accountability, integrity and professionalism

Genuine customer service; and

Best performance possible

SALIENT FEATURES OF DAO 2010-21 IMPLEMENTING RULES

AND REGULATIONS OF REPUBLIC ACT NO. 7942, OTHERWISE
KNOWN AS THE “PHILIPPINE MINING ACT OF 1995”

JOHN MIKEL P. ANSAO, EM

Mines and Geoscience Bureau RXII
OUTLINE

I. Minerals
II. Mineral Resources
III. Mineral Resources Map of Region XII
IV. Mining Laws in the Philippines
V. 1987 Constitution (Article XII, Sec. 2) National
Economy and Patrimony
VI. Declaration of Policy (RA 7942)
VII. Areas Open To Mining Applications
VIII. Areas Close To Mining Applications
IX. Types of Major Mining Permits/Contracts
X. Requirements Imposed by the New Mining Law
XI. Responsible Mining

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
Minerals

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

etc.) that is naturally formed under the ground.

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

extended sense to include anything of economic
value which is extracted from the earth

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
Reference: https://www.merriam-webster.com/dictionary/mineral
Mineral Resources

Means any concentration of ores, minerals and/or

rocks with proven or potential economic value

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
Reference: www.congress.gov.ph/legisdocs/basic_17/HB01665.pdf
Minerals in Region XII

 Gold
 Copper
 Iron
 Coal
 Limestone
 Clay
 And others

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
 Tampakan

Lake Sebu

Maasim

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
1987 CONSTITUTION (Article XII, Sec. 2) National
Economy and Patrimony

All lands of the public domains, waters, minerals,

coal, petroleum, and other mineral oils, all forces of
potential energy, fisheries, forests or timber, wildlife,
flora and fauna, and other natural resources are
owned by the State. x x x The exploration,
development, and utilization of natural resources
shall be under the full control and supervision of the
State.

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
Mining Laws in the Philippines

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

CREATING A PEOPLE'S SMALL-SCALE MININGPROGRAM AND FOR
OTHER PURPOSES

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

ACT NO. 7076 OTHERWISE KNOWN AS "PEOPLES SMALL SCALE
MINING ACT OF 1991"

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

SYSTEM OF MINERAL RESOURCES EXPLORATION, DEVELOPMENT,
UTILIZATION, AND CONSERVATION

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

OF ENVIRONMENT AND NATURAL RESOURCES ADMINISTRATIVE
ORDER FOR THE IMPLEMENTING RULES AND REGULATIONS OF
REPUBLIC ACT NO. 7942, OTHERWISE KNOWN AS THE “PHILIPPINE
MINING ACT OF 1995”
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
Declaration of Policy (RA 7942)

All mineral resources in public and private lands

within the territory and exclusive economic zone of
the Republic of the Philippines are owned by the
State. It shall be the responsibility of the State to
promote their rational exploration, development,
utilization and conservation through the combined
efforts of the Government and private sector in order
to enhance national growth in a way that effectively
safeguards the environment and protects the rights
of affected communities.

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
Areas Open to Mining Applications

 Public or private lands not covered by valid and existing mining

rights and mining applications;
 Lands covered by expired/abandoned/canceled
mining/quarrying rights;
 Mineral Reservations; and
 Timber or forest lands as defined in existing laws.

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
Areas Close To Mining Applications

 Protected areas (national/natural parks, watersheds, wildlife

sanctuary, wilderness areas, high biodiversity areas,
mangroves, tree parks, game refuge, bird sanctuaries,
greenbelts, marine reserves/marine parks, etc.);
 Old growth or virgin forests;
 Forest and other government reservations (unless with
clearance from agency concerned);
 Built-up areas (buildings, bridges, private plantations, etc.)
unless with consent from agency or party concerned;
 Ancestral domains/lands unless with Free and Prior Informed
Consent from Indigenous Peoples
 Other areas expressly prohibited by law.

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
Section 4. of DAO 2012-07 (IRR of EO 79)
a. Areas expressly enumerated under Sec 19 of
RA No. 7942 and Section 15 of DAO No.
2010-21, or the IRR of RA no. 7942 as may
be amended hereafter;
b. Protected areas categorized and establish
NIPAS under RA No. 7586;
c. Prime agricultural lands, in addition to land
covered by RA no. 6657 or the
Comprehensive Agrarian Reform Law of
1988, as amended, including plantation and
areas devoted to valuable crops, and SAFDZ
and fish refuge and sanctuaries declared as
such by the Secretary of DA;
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
Section 4. of DAO 2012-07 (IRR of EO 79)
d. Tourism development areas, delineated in the
national and local tourism development
plans; and

c. Other critical areas, island ecosystem, and

impact areas of mining as determined by
current and existing mapping technologies,
that the DENR may hereafter identify
pursuant to existing laws, rules, and
regulation, such as, but not limited to, the
NIPAS Act

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
Types of Major Mining Permits/Contracts
A. TENEMENTS ISSUED BY DENR-MGB
1. Exploration Permit (EP)
2. Mineral Agreements
3. Financial or Technical Assistance Agreements (FTAA)
4. Mineral Processing Permits (MPP)
5. Industrial Sand and Gravel Permits (>5 to 20 hectares)
6. OTPs/MOEPs
B. PERMITS ISSUED BY LOCAL GOVT
1. Small-Scale Mining Contracts
2. Quarry Permits
3. Sand and Gravel Permits (5 hectares & below)
4. Guano Permits
5. Gemstone Gathering Permits
6. OTPs/MOEPs
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
Qualified Person

Means any Filipino citizen of legal age and with capacity to

contract; or a corporation, partnership, association or
cooperative organized or authorized for the purpose of
engaging in mining, with technical and financial capability to
undertake mineral resources development and duly
registered in accordance with law, at least sixty percent
(60%) of the capital of which is owned by Filipino citizens:
Provided, That a legally organized foreign-owned corporation
shall be deemed a Qualified Person for purposes of granting
an Exploration Permit, FTAA or Mineral Processing Permit
only.

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
Maximum Areas Allowed under a Mineral Agreement

TYPE OF MAXIMUM TERM QUALIFIED

MINING AREA (hectares) PERSON
RIGHT
2 years; renewable Individuals or
Exploration 32,000 onshore
to a maximum of 8 Filipino or foreign
Permit 81,000 offshore
years corporations
Mineral 5,000 hectares
25 years;
Production onshore Individuals or
renewable for like
Sharing 40,500 hectares Filipino corporations
period
Agreement offshore
Financial or
25 years;
Technical 81,000 onshore Filipino or 100 %
renewable for like
Assistance 324,000 offshore foreign corporations
period
Agreement

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
Exploration Permit (EP)
 Exploration permit as the initial mode of entry in
mineral exploration. Allows the permittee to
conduct exploration work for a limited period only.

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
Mineral Agreement
Means a contract between the Government and a
Contractor

Kinds of Mineral Agreements:

a. Mineral Production Sharing Agreement

(MPSA);
b. Co-Production Agreement (CA); and
c. Joint Venture Agreement (JVA)

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
Mineral Agreement

Mineral Production Sharing Agreement (MPSA) -

an agreement wherein the Government grants to
the Contractor the exclusive right to conduct mining
operations within, but not title over, the contract area
and shares in the production whether in kind or in
value as owner of the minerals therein. The
Contractor shall provide the necessary financing,
technology, management and personnel

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
FTAA

Means a contract involving financial or technical

assistance for large-scale exploration, development
and utilization of mineral resources.

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
Mineral Processing Permit (MPP)

Refers to the permit granted to a Qualified Person

for mineral processing

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

date of issuance thereof, renewable for like
periods but not to exceed a total term of twenty-
five (25)

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
 Requirements imposed by the
New Mining Law
KEY INDICATORS Old Law (PD New Law
463) (RA 7942)
May 17, March 03,
1974 1995
1. ENVIRONMENTAL
PROTECTION &
ENHANCEMENT PROGRAM
(Progressive Rehabilitation)
2. ENVIRONMENT IMPACT
SYSTEM
(ECC Requirement)
 Requirements imposed by the
New Mining Law
KEY INDICATORS Old Law New Law
(PD 463) (RA 7942)
May 17, March 03,
1974 1995
3. CONTINGENT LIABILITY
REHABILITATION FUND and
MINE REHABILITATION
FUND (Committees; Multi-
partite Monitoring Team)
 Requirements imposed by the
New Mining Law
KEY INDICATORS Old Law New Law
(PD 463) (RA 7942)
May 17, March 03,
1974 1995
4. FINAL MINE REHABILITATION
AND/OR DECOMISSIONING
PLAN
5. FUNDs TO IMPLEMENT EPEP,
FMRDP and MMT DEPOSITED
IN GOVERNMENT BANK
 Requirements imposed by the
New Mining Law
KEY INDICATORS Old Law (PD New Law
463) (RA 7942)
May 17, 1974 March 03,
1995
1. Consent of IP Communities (FPIC)
and Royalty
2. Endorsement of LGUs

3. Community Development
Programs during
Exploration and Mining Operation
(CDP/SDMP)
What is RESPONSIBLE MINING?

According to Undersecretary Mario Luis J. Jacinto,

mining can only be responsible if the development
of the country’s mineral resources is based on
technical feasibility, environmental
sustainability, social acceptability, and financial
viability.

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
 TECHNICAL
FEASIBILITY

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
Assessment is centered on the technical resources
available to the organization. It helps organizations
asses if the technical resources meet capacity and
whether the technical team is capable of
converting the ideas into working systems.
Technical feasibility also involves evaluation of the
hardware and the software requirements of the
proposed system.

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
 Financial Viability

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
is the ability to generate sufficient income to meet
operating payments, debt commitments and, where
applicable, to allow for growth, while maintaining
service levels

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
 ENVIRONMENTAL
SUSTAINABILITY

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
Section 169 of DAO 2010-21. Environmental Protection
and Enhancement Program (EPEP)

refers to the comprehensive and strategic

environmental management plan for the life of the
mining project on which AEPEPs are based and
implemented to achieve the environmental
management objectives, criteria and commitments
including protection and rehabilitation of the
disturbed environment.

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
The Contractor shall allocate for its initial environment-
related capital expenditures an amount that shall
approximate ten percent (10%) of the total capital/project
cost or such other amount depending on the environmental/
geological condition, nature and scale of operations and
technology employed. Initial environment related capital
expenditures may include environmental studies and design
cost, waste area preparation, tailings/slime
containment/disposal system, mine waste disposal system,
wastewater/acid mine drainage treatment plants, dust control
equipment, air pollution control facilities, drainage system
and other environment-related mitigating measures and
capital expenditures.
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
Annual Environmental Protection and Enhancement
Program (AEPEP)

A Contractor/Permit Holder shall allocate for its

annual environment-related expense a percentage
based on the AEPEP which may approximate a
minimum of three to five percent (3-5%) of its
direct mining and milling costs depending on the
environment/geologic condition, nature and scale of
operations and technology employed.

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
 Environmental Protection - Exploration Stage

Drillsite Rehabilitation

Drill Hole Drill Sumps

Progressive Rehabilitation and Final Decommissioning

Nursery Production
EXPLORATION

DEVELOPMENT Slope Stabilization

and Erosion Control
Reforestation
PRODUCTION

FINAL MINE
DECOMMISSIONING
 MIMAROPA
Region

Rio Tuba Nickel

Mining Corporation

Rio Tuba, Bataraza,

Palawan
Panoramic View 2012

Panoramic View 2013

Berong Nickel Corporation
 2008

MIMAROPA
Region 2010

Coral Bay Nickel

Corporation
2012
Rio Tuba, Bataraza,
Palawan
2013
 Region II
Oceana Gold 2014
(Phils.), Inc.
Kasibu, Nueva
Vizcaya and
Cabarroguis,
Quirino

2017
 Region II

Oceana Gold 2016

(Phils.), Inc.
Kasibu, Nueva
Vizcaya and
Cabarroguis,
Quirino

2017
 Region VII
Carmen 2010
Copper
Corporation
Toledo, Cebu
City

2015
 Region VII
Carmen 2013
Copper
Corporation
Toledo, Cebu
City

2015
 SOCIAL
ACCEPTABILITY

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
Section 136-A of DAO 2010-21. Social Development
and Management Program (SDMP)

refers to the comprehensive five-year plan of the

Contractor/Permit Holder/Lessee authorized to
conduct actual mining and milling operations
towards the sustained improvement in the living
standards of the host and neighboring communities
by creating responsible, self-reliant and resource-
based communities capable of developing,
implementing and managing community
development programs, projects, and activities in a
manner consistent with the principle of people
empowerment.
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
The Contractor/Permit Holder/Lessee shall allot annually a
minimum of one and a half percent (1.50%) of the
operating costs necessary to implement:

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

b. 0.150% (10% of 1.50%) - Program for the
Development of Mining Technology and Geosciences
(to build up resources and mineral discoveries,
improve operational efficiency and resource recovery,
and enhance environmental protection and mine
safety)
c. 0.225% (15% of 1.50%) - IEC Program
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
In the case of a holder of an Exploration Permit or a
Mineral Agreement or FTAA in the Exploration
Stage, the Permittee/Contractor shall develop and
implement a Community Development Program
(CDP) which implementation shall be supported by
a fund equivalent to a minimum of ten percent
(10.0%) of the budget of the approved two (2)-year
Exploration Work Program

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
 SDMP – Development/Production Stage

Social Development &

Management Program

.. weaving

floor mat making ..candle making

. . .at Philex Mines, Benguet
 SDMP – Development/Production Stage

Social Development and Management

Program Projects …poultry livelihood

Livelihood Projects at
Rio Tuba Mining
(Palawan)
farm tractor distribution…
 SOCIAL DEV’T PROJECTS

Taganito Mining, Surigao del Norte

 SDMP – Development/Production Stage

Resettlement Village. . .
South Western Cement Corp. (Malabuyoc,
Cebu) built new houses for affected
residents prior to mining operations.
 Social Responsibilities

Educational Assistance
Scholarship Programs

School Facilities Support

. . .at Philex Boyungan, Surigao del Norte

SMDP

Lafarge-Holcim AGATA MINING VENTURES, Inc

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII King-King Copper-Gold Project (KGCP)
 Benefits to Communities &
Local Governments
• Royalty payments to IPs (Mining Act)
• At least 1% of gross output (subject to
negotiation with IPs) - Section 16 of DAO
2010-21. Ancestral Lands
Section 218 of DAO 2010-21 -
Occupation Fees
 Mineral Reservation – 100/hectare
 Non-Mineral Reservation – 75/hectare

o 30% - Province
o 70% - Municipality

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

Contractor shall pay a surcharge of twenty-five
percent (25%) of the amount due in addition to
the occupation fees

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII
YES TO RESPONSIBLE
MINING!!!
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
MINES AND GEOSCIENCE BUREAU
REGIONAL OFFICE NO. XII