Organizational

Structure
Primary Agency responsible for :

• RESERVATION
• MANAGEMENT
• DEVELOPMENT
• PROPER USAGE

State’s Mineral Resources

(Reservations, Watershed areas, and Lands of
Public Domain)
 Authority of the Secretary ( Sec 8 , RA 7942)

1. Enter into mineral agreements

2. Promulgate rules and regulations

( mining projects within their
respective jurisdiction)
 ENSURE
Compliance of the relevant laws on public
notice, public consultation and public
participation
 APPROVE
Applications for:
 small-scale mining
 sand and gravel
quarry
guano
 gemstone gathering and gratuitous permits
 industrial sand and gravel permit ( not
exceeding 5 hec.)
* In coordination with the Bureau/ Regional
Office(s) and subject to valid & existing mining
rights.
 ENHANCE
Economic Progress & National Development

By receiving their share provided for by law in

the wealth generated

From the utilization of mineral resources

 FACILITATE
 process – community –reach an informed
decision = social acceptability of a mining
project
 PARTICIPATE
 monitoring of any activity
 Multipartite Monitoring Team
 Mine Rehabilitation Fund
 RECIPIENT
 social infrastructure and community
development projects
 MEDIATOR
 Indigenous Cultural Communities vs.
Contractors
 COORDINATE
 with the Department and Bureau
Implementation of the act & IRR
In their respective jurisdiction
 PERFORM
 Other powers & functions
 Director

Assistant
Director

Secretary
To have in the administration
and disposition of mineral lands and mineral
resources;

To geological, mining,

metallurgical, chemical and other researches,
as well as mineral exploration surveys:
To after due process, surety,
performance and guaranty bonds after notice
of violation;

To to the Secretary the granting

of mineral agreements to duly qualified
persons and shall monitor the compliance by
the contractor of the terms and conditions of
the mineral agreements;
To , when necessary, any member or
unit of PNP, barangay, duly registered NGO or
any qualified person to police all mining
activities;

To vested by
the Act and is provided for in these
implementing rules and regulations.
• The Director may delegate such authority and
other powers and functions to the Regional
Director.

• There shall be as many regional offices in the

country as may be established by the Secretary,
upon recommendation of the Director (Sec 10,
RA 7942).
 conferred upon the Bureau original &
exclusive jurisdiction to hear and decide cases
involving:

 Cancellation and/ or enforcement of mining

contracts

OBJECTIVE: To make the adjudication of mining

cases a purely administrative matter.
 Applies if the case is such that its
determination requires:
Expertise
Specialized skills
Knowledge of proper administrative bodies

Reason: Technical matters or intricate

questions of facts are involved.
TECHNICAL DETERMINATION:

• What coal areas should be exploited and

developed; and

• Which entity should be granted coal operation

contracts over said areas.
• NOTE:

Administrative decision in matters within

the executive jurisdiction can ONLY be set aside
on proof of gross abuse of discretion, fraud or
error of law.
 National and Regional filing and recording
system shall be established;

 Mineral resource database system shall be set

up;

 Publication at least annually; and

 System & publication fund

 Areas open to mining operation
(Sec 18, RA 7942)

All mineral resources in public or private

lands including timber or forestlands as defined
in existing laws.

NOTE:
Any conflict that may arise under this
provision shall be heard and resolved by the
panel of arbitrators.
Areas closed to mining operations (Sec 19, RA
7942)

Mineral agreement or financial or technical

assistance agreement applications shall not be
allowed:
 1.
In military and other government
reservations ;

EXCEPTION: Upon prior written

clearance by the government agency
concerned.
 2.
Near or under public or private buildings,
cemeteries, archaeological and historic sites,
bridges, highways, waterways, railroads,
reservoirs, dams or other infrastructure
projects, public or private works including
plantations or valuable crops;

EXCEPTION: Upon written consent of the

government agency or private entity concerned.
 3.
In areas covered by valid and existing mining
rights

4.
In areas expressly prohibited by law
 5.
In areas covered by small-scale miners as
defined by law; and

EXCEPTION: With prior consent of the small-

scale miners,
- Royalty payment upon the utilization of
minerals shall be agreed upon by the parties.
 6.
• Old growth or virgin forests
• Proclaimed watershed forest reserves
• Wilderness areas
• Mangrove forests,
• Mossy forests
• National parks provincial/municipal forests
• Parks
• Greenbelts
• Game refuge
• Bird sanctuaries as defined by law and in areas
expressly prohibited under the National Integrated
Protected Areas System (NIPAS)
The following areas may be opened for mining
applications subject to following conditions:

1. Areas covered by FTAA applications which shall be

opened for quarry resources mining applications
upon the written consent of the FTAA applicants:

Provided, that sand and gravel permit applications shall

not require consent from the FTAA, Exploration permit or
Mineral Agreement applicant.

EXCEPTION: Mineral Agreement or Exploration Permit

applications covering sand, gravel and/ or alluvial gold.
2. DENR project areas upon prior consent from
the concerned agency.

NOTE:
No ancestral land shall be opened for
mining operations without the prior consent of
the indigenous cultural community concerned
(Sec 16, RA 7942).
EXPLORATION
PERMIT
 An exploration permit grants the right to
conduct exploration for all minerals in
specified areas.
Does not amount to an authorization to
extract and carry off the mineral resources
that may be discovered.
It involves nothing but expenditures for
exploring the contract area and locating the
mineral bodies.
Authorization for the grantee to spend its own
funds on exploration programs that are pre-
approved by the government.
NOTE:
Declaration of Mining Project Feasibility

An exploration permit grantee who

determines the commercial viability of a mining
area may file with the MGB a declaration of
mining project feasibility accompanied by a
work program for development.
 Within the term of the permit.

Approval of the mining project feasibility

and compliance with other requirements of RA
7942 = Vests in the grantee the exclusive right
to an MPSA or another mineral agreement, or to
an FTAA.
Effect (granted):

• The contractor will be in a position to extract

minerals and earn revenues.

• The contractor’s rights and obligations will be

covered by an FTAA or a mineral agreement.
Terms and Conditions of the Exploration Permit
(Sec 21, RA 7942)
 An exploration permit shall be for a
period of 2 years, subject to annual review and
relinquishment or renewal upon the
recommendation of the Director.
Renewable for like periods but not to exceed:

Non-metallic mineral exploration- 4 years

Metallic mineral exploration- 6 years
Can be extended for 2 years for the very purpose of
preparing and completing the feasibility studies and the
filing of the declaration of mining project feasibility and
pertinent mineral agreement or FTAA application.
No renewal of permit shall be allowed unless:
1. The permittee has complied with the terms
and conditions;

2. Has not been found guilty of any violation of

this act; and

3. Conduct of feasibility and filing of declaration

of mining project feasibility shall be undertaken
during the term of the exploration permit.
 An exploration permit shall contain the
following terms and conditions:

1. Right to explore – subject to valid, prior and

existing rights of any parties w/in the subj.
area.

2. Exclusive use of the permit and benefit of the

permittee
3. Term of the permit;

4. Report under oath of the exploration work

program implementation and expenditures to
the Bureau within 30 calendar days;

5. Status Report on its compliance with the

Environmental Work Program (EWP);

6. Report of Relinquishment, results of analyses

and corresponding expenditures;
7. The Secretary or his duly authorized
representative shall annually review the
performance of the permittee;

8. The permittee shall submit a final report upon

the expiration of the permit.

9. In case of diamond drilling, the permittee

shall submit a quarter of the core samples to the
Bureau/ Regional Office core library concerned
for reference and safekeeping;
10. Offshore exploration activities;

11. Onshore exploration activities;

12. If the permittee applies for a mineral

agreement or FTAA over the permit area, the
exploration period covered by the exploration
permit shall be considered as the exploration
period of the mineral agreement or FTAA;
13. Compliance with the Implementing rules and
regulations;

14. The permittee in the case of a juridical entity

shall annually submit a copy of its Securities and
Exchange Commission- received general
information sheet; and

15. Other terms and conditions which the

Bureau/ Regional Office concerned may deem
appropriate.
Transfer of Exploration Permit
An exploration permit may be transferred or
assigned;

 To a qualified person;

Subject to the approval of the Secretary; and

Upon the recommendation of the Director

Absence of Approval = transfer or assignment of
an exploration permit is without legal force and
effect.

Reason for the required prior approval:

• Non-qualified entities or individuals could
circumvent the strict requirements under the
law by the simple expediency of acquiring the
permit from the original permittee.
 Maximum area for Exploration Permit

QUALIFIED ONSHORE ONSHORE OFFSHORE

PERSON ( in any one (in the entire (beyond 500 m from
province) Philippines) the mean low tide
level)

For Individuals 20 blocks 40 blocks 100 blocks

For 200 blocks 400 blocks 1000 blocks

Partnerships,
Cooperatives,
Associations,
Or
Corporations
Rights and Obligations of the Permittee (Sec 23,
RA 7942)
The permittee, his heirs or successors-in-
interest has the following rights:

• Right to Enter
• Right to Occupy
• Right to Explore the Area
• The permittee shall undertake an exploration
work on the area as specified by its permit
based on an approved work program.
 Registration of exploration permit
EVALUATION Subject area has
- All terms and conditions been cleared
- All pertinent requirements from any conflict

PENDING APPROVAL
- 5 months after date of filing
- Submission of an affidavit attesting to
the full compliance
- Deemed approved by the Director

APPROVAL AND ISSUANCE

- By the Director
- Of the Exploration Permit
- Within 5 working days from receipt of the affidavit, for
registration and release
 REGISTRATION
- By the permittee
- With the Bureau/ Regional Office
- Within 15 working days from receipt of the
written notice
- Upon payment of the required fees
NOTE:
• Compliance with the required consultation with
the Sanggunian concerned (pursuant to the
provisions of RA 7160, Local Gov’t Code of 1991).

• Mining Exploration Permits do not vest in the

grantee any permanent or irrevocable right.

REASON: The State, under its all-

encompassing police power, may alter, modify or
amend the same , in accordance with the demands
of the general welfare.