Republic Act No.

7942
Philippine Mining Act of
1995
Kim Louisse Patagnan
Mineral Resources in the Philippines Philippines in the World Mineral
Map:
• 5th Mineral Country in the World
• 3rd in Gold Reserves
• 4th in Copper Reserves
• 5th in Nickel Reserves

Philippines’ estimated Mineral

Reserves:
• 21.5 Billion MT metal deposits
• 71 Billion MT non-metallic
deposits
Source: Mine and Geosciences Bureau
INTRODUCTION: Philippine
Mineral Reserves

• According to MGB, the

Philippines has
approximately $1.32
Trillion worth of untapped
mineral wealth, as of
2017.
• 30% of the Philippines’
total land area (9million
ha.) believed to contain
important metallic mineral
deposits.
• 5 million ha. are also
known to be potential
sites for non-metallic
mineral reserves.
Operating Mines
• 3 Copper Mines
• 6 Gold Mines
• 3 Chromite Mines
• 28 Nickel Mines
• 2000+ sand and gravel
and other non-metallic
small-scale operations
Introduction: Philippine
Mining Industry
Plays a very important
Provides employment
role in the country’s
opportunities
economic development

Contributes to the
Spurs local and regional country’s foreign
economic development exchange earnings
through exports

Provides additional
revenues
 Introduction: Philippine Mining Industry

• Environmental Problems
• Irreversible Damage to the adjoining
environment
- Land degradation
- Deforestation
- Pollution
• Security Issues
 Republic Act No. 7942
PHILIPPINE MINING
ACT OF 1995
“ AN ACT INSTITUTING A -It is a governing law that
NEW SYSTEM OF regulates mineral resources
MINERAL RESOURCES development in the country.
EXPLORATION,
DEVELOPMENT,
UTILIZATION AND
CONSERVATION”
Philippine Mining Act (RA No.
7942)

PRIMARY OBJECTIVE:

Revitalize the ailing Philippine mining

industry by providing fiscal reforms and
incentives and maintaining a viable
inventory of mineral reserves to sustain
the industry through the infusion of fresh
capital through direct investments to
finance mineral exploration and/or
development activities.
Governing Principle:
The Implementing Rules and Regulations (DENR
Administrative Order No.96-40) of the
Philippine Mining Act of 1995 provides strict
adherence to the principle of SUSTAINABLE
DEVELOPMENT.
The principles of SUSTAINABLE MINING
operates under the following terms:

• Mining is a temporary land use for

creation of wealth.

• Mining activities must always be guided

by current Best Practices in
environmental management.

• Mining activities shall be undertaken

with due and equal regard for economic
and environmental considerations.
 Salient Points of the
Philippine Mining Act

Declaration of Policy (Section 2)

- State Ownership of ALL Mineral Resources

- Article XII; Section II; 1987 Constitution
- Full control and supervision of the State
- may enter into mineral agreements with
contractors
 Salient Points of the Philippine Mining Act
• Declaration of Policy (Section 2)

- Recognition and Protection of

the Rights of Indigenous
Cultural Minorities
- Ancestral Lands are not
open to mining without prior
consent of the indigenous
cultural community concerned.
(RA 7942; Section 16)
 ANCESTRAL LANDS AND ICC AREAS
• No mineral agreements, FTAA and mining permits
shall be granted in ancestral lands/domains except
with prior informed consent in:
a. CADC/CLC areas
b. areas verified by the DENR Regional Office
and/or appropriate offices as actually
occupied by Indigenous Cultural
Communities
• Where written consent is granted by the ICCs, a
royalty payment shall be negotiated which shall
not be less than 1% of the Gross Output of the
mining operations in the area.
 Salient Points of the
Philippine Mining Act
• Scope of Application
- Areas open to Mining Operations
(Section 18)
- provides for the areas open to mining
operations, which includes timber or
forestlands among others, as defined in
existing laws.
 Salient Points of the Philippine Mining Act

• Scope of Application

- Areas closed to Mining

Operations
(Section 19)
- recognizes some areas
that are closed to mining
 Areas that are CLOSED
for Mining Application:
• Areas covered by valid and existing mining
rights and applications.
• Old growth or virgin forests, mossy forests,
national parks, provincial/municipal forests,
tree parks, greenbelts, game refuge, bird
sanctuaries and areas proclaimed as marine
reserve/marine parks and sanctuaries and
areas proclaimed as marine reserve/marine
parks and tourist zones as defined by law.
• Areas expressly prohibited by law.
• In areas expressly prohibited under the
National Integrated Protected areas System
(NIPAS) under Republic Act No. 7586,
Department Administrative Order No. 25,
series of 1992 and other laws.
 The following areas may be opened for
mining operations, the approval of which
are subject to the following conditions:
• Military and other government reservations.
• Areas near or under
• public or private buildings,
• cemeteries
• archaeological and
• historic sites
• bridges
• highways
• Waterways
• railroads
• reservoirs
• dams and
• other infrastructure projects
• Areas covered by FTAA applications, which shall be
opened, for quarry resources upon written consent of
the FTAA applicants/contractors.
 Executive Order No. 79

“Institutionalizing and Implementing

Reforms in the Philippine Mining
Sector, Providing Policies and
Guidelines to Ensure Environmental
Protection and Responsible Mining in
the Utilization of Mineral Resources”
Executive Order No. 79
Provides Additional areas closed to mining operations:
➢ Prime agricultural lands, in addition to lands covered
by the Comprehensive Agrarian Reform Law of 1988,
as amended, including plantations and areas
devoted to valuable crops, and strategic agriculture
and fisheries development zones and fish refuge
and sanctuaries, as determined by the Department
of Agriculture.

➢ Tourism development areas, as identified in the

national (Department of Tourism) and local tourism
development plans.

➢ Other critical areas, island ecosystems, and impact

areas of mining, as determined by the Department
of Environment and Natural Resources.
 Executive Order No. 79
❑ Provides for the full enforcement of
environmental standards in mining.

➢ Full enforcement of the environmental

standards as prescribed by the various mining
and environmental laws, rules, and regulations

➢ Necessary remediation measures shall be

immediately required from the mining
contractor/permittee/permit holder/operator
concerned.

➢ Pertinent suspension order/s shall be issued

and stays in effect until the danger is removed.

➢ Mining rights shall be granted to only those

who are able to strictly comply with the
environmental management record
requirement
Critical Analysis of the Law :
STRENGTHS
• Local Government Empowerment
• Respect and concern for the indigenous cultural
communities
• Equitable sharing of benefits of the natural wealth
• Economic demands of present generation while
providing the necessary foundation for the future
generations
• Worldwide trend towards globalization
• Protection for and wise management of the
environment
ENVIRONMENTAL AND
SAFETY CONCERNS
• Mandatory allocation of an
approximately 10% of the initial capital
expenditures of the mining project for
environment-related activities.
• Mandatory annual allocation of 3-5% of
the direct mining and milling costs to
implement an Annual Environmental
Protection and Enhancement Program.
• Mandatory establishment of a MINE
REHABILITATION FUND (MRF).
Critical Analysis of the Law : WEAKNESSES
• Policies not clear and strong enough
• Good Law, Poor Implementation
• Liberalization of Mining
• Penal Provisions are not stringent.
• Covers only non-fuel minerals.

Penal Provisions:

SECTION 103. Theft of Minerals

six (6) months to six (6) years

Php10,000.00 to Php20,000.00
 • Open Participation of Foreign Investments
• Increase economic status
• Safeguarding environment
Critical Analysis of
the Law : • On July 6, 2012, Executive Order No. 79
(EO 79) was issued by the President which
OPPORTUNITIES sought to strengthen the protection of the
environment, promote responsible mining
and provide a more equitable revenue
sharing scheme between government and
private firms.
Critical Analysis of the
Law : THREATS
• Divisiveness of IP Communities
• Conflict among affected
communities
• Wrought environmental
destruction
- water, air, forests
Conflict with Other Laws
Republic Act No. 7160 ;
Local Government Code of
1991
Several LGU’s have closed their
provinces to mining
Moratorium on Mining
LGU’s share in mining revenues
Republic Act No. 7942 ;
Philippine Mining Act of
1995
Promotes the national policy of
mining in provinces with mineral
deposits
Conflict with Other Laws
Republic Act No. 7076 ;
People’s Small-Scale Mining
Act of 1991
Big Mining Industries overtaking small-
scale miner’s rights
Republic Act No. 7942 ;
Philippine Mining Act of 1995
Section 19. Areas closed to mining
operations
“No mining applications in areas covered
by small-scale miners as defined by law
unless with prior consent of the small-
scale miners, in which case a royalty
payment is issued.”
Conflict with Other Laws
Presidential Decree 1586;
Establishing an
Environmental Impact
Statement System
Environmental Protection:
- should maintain compliance with
the EIA and the issued ECC
Republic Act No. 7942 ;
Philippine Mining Act of
1995
Section 70. Environmental Impact
Assessment
- ECC required based on EIA
Marcopper Mining Corporation;
Marinduque Island

Mogpog River and Boac River after the Tragedy

Conflict with Other Laws
Republic Act No. 7586 ;
National Integrated
Protected Areas System
(NIPAS)
Primary Objective of Enactment:
Protection of the Environment
Not a PA, if there is no declaration
as such
Republic Act No. 7942 ;
Philippine Mining Act of
1995
Primary Objective of Enactment
Economic Growth
Section 18.
All mineral resources in public or
private lands, including timber or forest
lands as defined in existing laws, shall be
open to mineral agreements.
 Violation of the
Philippine Mining Act
➢ DOJ vs. 23 Chinese and Filipino Counterparts

Case Filed: Mineral Theft

- Illegal Extraction and Disposition of
Minerals
- constructing mineral processing plants and
theft of some 150 metric tons of magnetite
sand

Violation: Section 103 of RA 7942

- Imprisonment : 6months to 4 years
- Fine: Php20,000
- Confiscation of Mining Equipments
 Violation of the
Philippine Mining Act
➢ Marinduque Bay Area Residents vs.
Marcopper Mining Corporation

Case Filed: Violation of the Terms and

Conditions of the ECC
- Negligence

Violation: Section 108 of RA 7942

PD 984 Anti-Pollution Law
PD 1067 Water Code
 Violation of the Philippine Mining
Act
• Marinduque Bay Area Residents vs.
Marcopper Mining Corporation

The Facts:
- MMC had been storing tailings
from its operations in a pit in
Mt. Tapian, Marinduque.
- Millions of tons of tailings
Violation of the Philippine Mining Act
• Marinduque Bay Area Residents vs. Marcopper Mining
Corporation

Penalties:
- Section 108 of RA 7942
- Imprisonment: 6months to 6years
- Fine: Php200,000
- Rehabilitation and restoration Fee
- sum of not less than Php50,000,000
- operation stopped
- ECC withdrawn
 • Although the Mining Act was created to revive and
enhance the development of the industry, it is not
yet fully effective in achieving its goal for there are
still various environmental and social consequences
that are arising out from the realization of the goal.

• The provisions of the law and the revised

Conclusions implementing rules and regulations appear to be
comprehensive enough in order to protect the
environment and secure a substantial share of the
benefits for the national and local governments.
Thus, strict implementation of the provisions
provided herein should be exercised by the
different government agencies together with the
private investors and the local community.
Recommendations
• For the complete realization of the Mining Act’s goal, a WELL-DEFINED and STRINGENT set of
rules and penalties should be implemented.
• The role of the national government in granting resource rights should be re-defined while
stakeholders at the local level should be given greater roles in deciding on resource use.
• Stricter rules for private mining corporations should be implemented to prevent layering of
corporations and the participation of nominal parties, and to extract accountability on private
companies such as demanding transparency of corporate accounts.
• Redefine “just-compensation”.
• Proper involvement of the IP’s and affected communities in the decision-making process to
prevent flawed implementation of the Free Prior and Informed Consent.
• Implementation of a monitoring program primarily involving the mining corporations with the
LGU’s, private citizens or sectors and NGO’s.
THANK YOU!