Republic Act No. 7942 AN ACT INSTITUTING A NEW SYSTEM OF MINERAL RESOURCES EXPLORATION, DEVELOPMENT, UTILIZATION AND CONSERVATION

GOLD MINING IN THE PHILIPPINES Republic Act No. 7942 AN ACT INSTITUTING A NEW SYSTEM OF MINERAL RESOURCES EXPLORATION, DEVELOPMENT, UTILIZATION AND CONSERVATION CHAPTER I INTRODUCTORY PROVISIONS Section 1. Title. - This act shall be known as the Philippine Mining Act of 1995. Section 2. Declaration of Policy. - 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 government and the private sector in order to enhance national growth in a way that effectively safeguards the environment and protect the rights of affected communities. Section 3. Definition of Terms. - As used in and for purposes of this Act, the following terms, whether in singular or plural, shall mean: (a) "Ancestral lands" refers to all lands exclusively and actually possessed, occupied, or utilized by indigenous cultural communities by themselves or through their ancestors in accordance with their customs and traditions since time immemorial, and as may be defined and delineated by law. (b) "Block" or "meridional block" means an area bounded by one-half (1/2) minute of latitude and one-half (1/2) minute of longitude, containing approximately eightyone hectares (81 has). 3 (c) "Bureau" means the Mines and Geosciences Bureau under the Department of Environment and Natural Resources. (d) "Carrying capacity" refers to the capacity of natural and human environments to accommodate and absorb change without experiencing conditions of instability and attendant degradation. (e) "Contiguous zone" refers to water, sea bottom and substratum measured twenty-four nautical miles (24 n.m.) seaward from the base line of the Philippine archipelago. (f) "Contract area" means land or body of water delineated for purposes of exploration, development, or utilization of the minerals found therein. (g) "Contractor" means a qualified person acting alone or in consortium who is a party to a mineral agreement or to a financial or technical assistance agreement. (h) "Co-production agreement (CA)" means an agreement entered into between the Government and one or more contractors in accordance with Section 26(b) hereof. (I) "Department" means the Department of Environment and Natural Resources. (j) "Development" means the work undertaken to explore and prepare an ore body or a mineral deposit for mining, including the construction of necessary infrastructure and related facilities. (k) "Director" means the Director of the Mines and Geosciences Bureau. (l) "Ecological profile or eco-profile" refers to geographicbased instruments for planners and decision-makers which presents an evaluation of the environmental quality and carrying capacity of an area. (m) "Environmental compliance certificate (ECC)" refers to the document issued by the government agency concerned certifying that the project under consideration will not bring about an unacceptable environmental impact and that the proponent has complied with the requirements of the environmental impact statement system. (n) "Environmental impact statement (EIS)" is the document which aims to identify, predict, interpret, and communicate information regarding changes in environmental quality associated with a proposed project and which examines the range of alternatives for the objectives of the proposal and their impact on the environment. (o) "Exclusive economic zone" means the water, sea bottom and subsurface measured from the baseline of the Philippine archipelago up to two hundred nautical miles (200 n.m.) offshore. (p) "Existing mining/quarrying right" means a valid and subsisting mining claim or permit or quarry permit or any mining lease contract or agreement covering a mineralized area granted/issued under pertinent mining laws. (q) "Exploration" means the searching or prospecting for mineral resources by geological, geochemical or geophysical surveys, remote sensing, test pitting, trenching, drilling, shaft sinking, tunneling or any other means for the purpose of determining the existence, extent, quantity and quality thereof and the feasibility of mining them for profit. ( r ) "Financial or technical assistance agreement" means a contract involving financial or technical assistance for large-scale exploration, development, and utilization of mineral resources. (s) "Force majeure" means acts or circumstances beyond the reasonable control of contractor including, but not limited to, war, rebellion, insurrection, riots, civil disturbance, blockade, sabotage, embargo, strike, lockout, any dispute with surface owners and other labor disputes, epidemic, earthquake, storm, flood or other adverse weather conditions, explosion, fire, adverse action by government or by any instrumentality or subdivision thereof, act of God or any public enemy and any cause that herein describe over which the affected party has no reasonable control. (t) "Foreign-owned corporation" means any corporation, partnerships, association, or cooperative duly registered in accordance with law in which less than fifty per centum (50%) of the capital is owned by Filipino citizens. (u) "Government" means the government of the Republic of the Philippines. 5 (v) "Gross output" means the actual market value of minerals or mineral products from its mining area as defined in the National Internal Revenue Code. (w) "Indigenous cultural community" means a group or tribe or indigenous Filipinos who have continuously lived as communities on communally-bounded and defined land since time immemorial and have succeeded in preserving, maintaining, and sharing common bonds of languages, customs, traditions, and other distinctive cultural traits, and as may be defined and delineated by law. (x) "Joint venture agreement (JV)" means an agreement entered into between the Government and one or more contractors in accordance with Section 26(c) hereof. (y) "Mineral processing" means the milling, beneficiation or upgrading of ores or minerals and rocks or by similar means to convert the same into marketable products. (z) "Mine wastes and tailings" shall mean soil and rock materials from surface or underground mining and milling operations with no economic value to the generator of the same. (aa) "Minerals" refers to all naturally occurring inorganic substance in solid, gas, liquid, or any intermediate state excluding energy materials such as coal, petroleum, natural gas, radioactive materials, and geothermal energy. (ab) "Mineral agreement" means a contract between the government and a contractor, involving mineral production-sharing agreement, co-production agreement, or joint-venture agreement. (ac) "Mineral land" means any area where mineral resources are found. (ad) "Mineral Resource" means any concentration of minerals/rocks with potential economic value. (ae) "Mining area" means a portion of the contract area identified by the contractor for purposes of development, mining, utilization, and sites for support facilities or in the immediate vicinity of the mining operations. (af) "Mining operation" means mining activities involving exploration, feasibility, development, utilization, and processing. 6 (ag) "Nongovernmental organization (NGO)" includes nonstock, nonprofit organizations involved in activities dealing with resource and environmental conservation, management and protection. (ah) "Net assets" refers to the property, plant and equipment as reflected in the audited financial statement of the contractor net of depreciation, as computed for tax purposes, excluding appraisal increase and construction in progress. (ai) "Offshore" means the water, sea bottom, and subsurface from the shore or coastline reckoned from the mean low tide level up to the two hundred nautical miles (200 n.m.) exclusive economic zone including the archipelagic sea and contiguous zone. (aj) "Onshore" means the landward side from the mean tide elevation, including submerged lands in lakes, rivers and creeks. (ak) "Ore" means a naturally occurring substance or material from which a mineral or element can be mined and/or processed for profit. (al) "Permittee" means the holder of an exploration permit. (am) "Pollution control and infrastructure devices" refers to infrastructure, machinery, equipment and/or improvements used for impounding, treating or neutralizing, precipitating, filtering, conveying and cleansing mine industrial waste and tailings as well as eliminating or reducing hazardous effects of solid particles, chemicals, liquids or other harmful byproducts and gases emitted from any facility utilized in mining operations for their disposal. (an) "President" means the President of the Republic of the Philippines. (ao) "Private land" refers to any land belonging to any private person which includes alienable and disposable land being claimed by a holder, claimant, or occupant who has already acquired a vested right thereto under the law, although the corresponding certificate or evidence of title or patent has not been actually issued. (ap) "Public land" refers to lands of the public domain which have been classified as agricultural lands and subject to management and disposition or concession under existing laws. 7 (aq) "Qualified person" means any citizen of the Philippines 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 per centum (60%) of the capital of which is owned by citizens of the Philippines: Provided, That a legally organized foreign-owned corporation shall be deemed a qualified person for purposes of granting an exploration permit, financial or technical assistance agreement or mineral processing permit. (ar) "Quarrying" means the process of extracting, removing and disposing quarry resources found on or underneath the surface of private or public land. (as) "Quarry permit" means a document granted to a qualified person for the extraction and utilization of quarry resources on public or private lands. (at) "Quarry resources" refers to any common rock or other mineral substances as the Director of Mines and Geosciences Bureau may declare to be quarry resources such as, but not limited to, andesite, basalt, conglomerate, coral sand, diatomaceous earth, diorite, decorative stones, gabbro, granite, limestone, marble, marl, red burning clays for potteries and bricks, rhyolite, rock phosphate, sandstone, serpentine, shale, tuff, volcanic cinders, and volcanic glass: Provided, that such quarry resources do not contain metals or metallic constituents and/or other valuable minerals in economically workable quantities: Provided, further, That non-metallic minerals such as kaolin, feldspar, bull quartz, quartz or silica, sand and pebbles, bentonite, talc, asbestos, barite, gypsum, bauxite, magnesite, dolomite, mica, precious and semi-precious stones, and other non-metallic minerals that may later be discovered and which the Director declares the same to be of economically workable quantities, shall not be classified under the category of quarry resources. (au) "Regional director" means the regional director of any mines regional office under the Department of Environment and Natural Resources. 8 (av) "Regional office" means any of the mines regional offices of the Department of Environment and Natural Resources. (aw) "Secretary" means the Secretary of the Department of Environment and Natural Resources. (ax) "Special allowance" refers to payment to the claimowners or surface right-owners particularly during the transition period from Presidential Decree No. 463 and Executive Order No. 279, series of 1987. (ay) "State" means the Republic of the Philippines. (az) "Utilization" means the extraction or disposition of minerals.

REPUBLIC ACT NO. 7076 AN ACT CREATING A PEOPLE’S SMALL-SCALE MINING PROGRAM AND FOR OTHER PURPOSES

GOLD MINING IN THE PHILIPPINES REPUBLIC ACT NO. 7076 AN ACT CREATING A PEOPLE’S SMALL-SCALE MINING PROGRAM AND FOR OTHER PURPOSES Section 1. Title. This Act shall be known as the “People’s Small-Scale Mining Act of 1991.” Section 2. Declaration of Policy. It is hereby declared the policy of the State to promote, develop, protect and rationalize viable small-scale mining activities in order to generate more employment opportunities and provide an equitable sharing of the nation’s wealth and natural resources, giving due regard to existing rights as herein provided. Section 3. Definitions. For purposes of this Act, the following terms shall be defined as follows: (a) “Mineralized areas” refer to areas with naturally occurring mineral deposits of gold, silver, chromite, kaolin, silica, marble, gravel, clay and like mineral resources; (b) “Small-scale mining” refers to mining activities which rely heavily on manual labor using simple implements and methods and do not use explosives or heavy mining equipment; (c) “Small-scale miners” refer to Filipino citizens who, individually or in the company of other Filipino citizens, voluntarily form a cooperative duly licensed by the Department of Environment and Natural Resources to engage, under the terms and conditions of a contract, in the extraction or removal of minerals or ore-bearing materials from the ground; (d) “Small-scale mining contract" refers to co-production, joint venture or mineral production sharing agreement between the State and a small-scale mining contractor for the small-scale utilization of a plot of mineral land; (e) “Small-scale mining contractor” refers to an individual or a cooperative of small-scale miners, registered with the Securities and Exchange Commission or other appropriate government agency, which has entered into an agreement with the State for the small-scale utilization of a plot of mineral land within a people’s small-scale mining area; (f) “Active mining area” refers to areas under actual exploration, development, exploitation or commercial production as determined by the Secretary after the necessary field investigation or verification including contiguous and geologically related areas belonging to the same claimowner and/or under contract with an operator, but in no case to exceed the maximum area allowed by law; (g) “Existing mining right” refers to perfected and subsisting claim, lease, license or permit covering a mineralized area prior to its declaration as a people’s small-scale mining area; (h) “Claimowner” refers to a holder of an existing mining right; (i) “Processor” refers to a person issued a license to engage in the treatment of minerals or ore-bearing materials such as by gravity concentration, leaching beneficiation, cyanidation, cutting, sizing, polishing and other similar activities; (j) “License” refers to the privilege granted to a person to legitimately pursue his occupation as a small-scale miner or processor under this Act; (k) “Mining Plan” refers to a two-year program and activities and methodologies employed in the extraction and production of minerals or ore-bearing materials, including the financial plan and other resources in support thereof; (l) “Director” refers to the regional executive director of the Department of Environment and Natural Resources; (m) “Secretary” refers to the Secretary of the Department of Environment and Natural Resources. Section 4. People’s Small-scale Mining Program. For the purpose of carrying out the declared policy provided in Section 2 hereof, there is hereby established a People’s Small-scale Mining Program to be implemented by the Secretary of the Department of Environment and Natural Resources, hereinafter called the Department, in coordination with other concerned government agencies, designed to achieve an orderly, systematic and rational scheme for the small-scale development and utilization of mineral resources in certain mineral areas in order to address the social, economic, technical, and environmental problems connected with small-scale mining activities. The People’s Small-scale Mining Program shall include the following features: (a) The identification, segregation and reservation of certain mineral lands as people’s small-scale mining areas; (b) The recognition of prior existing rights and productivity; (c) The encouragement of the formation of cooperatives; (d) The extension of technical and financial assistance, and other social services; (e) The extension of assistance in processing and marketing; (f) The generation of ancillary livelihood activities; (g) The regulation of the small-scale mining industry with the view to encourage growth and productivity; and (h) The efficient collection of government revenue. Section 5. Declaration of People’s Small-scale Mining Areas. The Board is hereby authorized to declare and set aside people’s small-scale mining areas in sites onshore suitable for smallscale mining, subject to review by the Secretary, immediately giving priority to areas already occupied and actively mined by small-scale miners before August 1, 1987: Provided, That such areas are not considered as active mining areas: Provided, further, That the minerals found therein are technically and commercially suitable for small-scale mining activities: Provided, finally, That the areas are not covered by existing forest rights or reservations and have not been declared as tourist or marine reserves, parks and wildlife reservations, unless their status as such is withdrawn by competent authority. Section 6. Future People’s Small-scale Mining Areas. The following lands, when suitable for small-scale mining, may be declared by the Board as people’s small-scale mining areas: (a) Public lands not subject to any existing right; (b) Public lands covered by existing mining rights which are not active mining areas; and (c) Private lands, subject to certain rights and conditions, except those with substantial improvements or in bonafide and regular use as a yard, stockyard, garden, plant nursery, plantation, cemetery or burial site, or land situated within one hundred meters (100 m.) from such cemetery or burial site, water reservoir or a separate parcel of land with an area of ten thousand square meters (10,000 sq.m.) or less. Section 7. Ancestral Lands. No ancestral land may be declared as a people’s small-scale mining area without the prior consent of the cultural communities concerned: Provided, That, if ancestral lands are declared as people’s small-scale mining areas, the members of the cultural communities therein shall be given priority in the awarding of small-scale mining contracts. Section 8. Registration of Small-scale Miners. All persons undertaking small-scale mining activities shall register as miners with the Board and may organize themselves into cooperatives in order to qualify for the awarding of a people’s small-scale mining contract. Section 9. Award of People’s Small-scale Mining Contracts. A people’s small-scale mining contract may be awarded by the Board to small-scale miners who have voluntarily organized and have duly registered with the appropriate government agency as an individual miner or cooperative: Provided, That only one (1) people’s small-scale mining contract may be awarded at any one time to a small-scale mining contractor who shall start mining operations within one (1) year from the date of award: Provided, further, That priority shall be given to small-scale miners residing in the province or city where the small-scale mining area is located. Applications for a contract shall be subject to a reasonable fee to be paid to the Department of Environment and Natural Resources regional office having jurisdiction over the area. Section 10. Extent of Contract Area. The Board shall determine the reasonable size and shape of the contract area following the meridional block system established under Presidential Decree No. 463, as amended, otherwise known as the Mineral Resources Development Decree of 1974, but in no case shall the area exceed twenty hectares (20 has.) per contractor and the depth or length of the tunnel or adit not exceeding that recommended by the Director taking into account the following circumstances: (a) Size or membership and capitalization of the cooperative; (b) Size of mineralized area; (c) Quantity of mineral deposits; (d) Safety of miners; (e) Environmental impact and other considerations; and (f) Other related circumstances. Section 11. Easement Rights. Upon the declaration of a people’s small-scale mining area, the Director, in consultation with the operator, claimowner, landowner or lessor of an affected area, shall determine the right of the small-scale miners to existing facilities such as mining and logging roads, private roads, port and communication facilities, processing plants which are necessary for the effective implementation of the People’s Small-scale Mining Program, subject to payment of reasonable fees to the operator, claimowner, landowner or lessor. Section 12. Rights Under a People’s Small-scale Mining Contract. A people’s small-scale mining contract entitles the smallscale mining contractor to the right to mine, extract and dispose of mineral ores for commercial purposes. In no case shall a small-scale mining contract be subcontracted, assigned or otherwise transferred. Section 13. Terms and Conditions of the Contract. A contract shall have a term of two (2) years, renewable subject to verification by the Board for like periods as long as the contractor complies the provisions set forth in this Act, and confers upon the contractor the right to mine within the contract area: Provided, That the holder of a small-scale mining contract shall have the following duties and obligations: (a) Undertake mining activities only in accordance with a mining plan duly approved by the Board; (b) Abide by the Mines and Geosciences Bureau and the Small-scale Mining Safety Rules and regulations; (c) Comply with his obligations to the holder of an existing mining right; (d) Pay all taxes, royalties or government production share as are now or may hereafter be provided by law: (e) Comply with pertinent rules and regulations on environmental protection and conservation, particularly those on tree-cutting, mineral processing and pollution control; (f) File under oath at the end of each month a detailed production and financial report to the Board; and (g) Assume responsibility for the safety of persons working in the mines. Section 14. Rights of Claimowners. In case a site declared and set as a People’s Small-scale Mining Area is covered by an existing mining right, the claimowner and the small-scale miners therein are encouraged to enter into a voluntary and acceptable contractual agreement with respect to the small-scale utilization of the mineral values from the area under claim. In case of disagreement, the claimowners shall be entitled to the following rights and privileges: (a) Exemption from the performance of annual work obligations and payment of occupation fees, rental, and real property taxes; (b) Subject to the approval of the Board, free access to the contract area to conduct metallurgical with the operations of the small-scale miners; and (c) Royalty equivalent to one and one half (1 1/2%) of the gross value of the metallic mineral output or one percent (1%) of the gross value of the nonmetallic mineral output to be paid to the claimowner: Provided, That such rights and privileges shall be available only if he is not delinquent in the performance of his annual work obligations and other requirements for the last two (2) years prior to the effectivity of this Act. Section 15. Rights of Private Landowners. The private landowner or lawful possessor shall be notified of any plan or petition to declare his land as a people’s small-scale mining area. Said landowner may oppose such plan or petition in an appropriate proceeding and hearing conducted before the Board. If a private land is declared as a people’s small-scale mining area, the owner and the small-scale mining contractors are encouraged to enter into a voluntary and acceptable contractual agreement for the small-scale utilization of the mineral values from the private land: Provided, That the owner shall in all cases be entitled to the payment of actual damages which he may suffer as a result of such declaration: Provided, further, That royalties paid to the owner shall in no case exceed one percent (1%) of the gross value of the minerals recovered as royalty. Section 16. Ownership of Mill Tailings. The Small-scale mining contractor shall be the owner of all mill tailings produced from the contract area. He may sell the tailings or have them processed in any custom mill in the area: Provided, That, if the small-scale mining contractor decides to sell its mill tailings, the claimowner shall have a preemptive right to purchase said mill tailings at the prevailing market price. Section 17. Sale of Gold. All gold produced by small-scale miners in any mineral area shall be sold to the Central Bank, or its duly authorized representative, which shall buy it at prices competitive with those prevailing in the world market regardless of volume or weight. The Central Bank shall establish as many buying stations in gold-rush areas to fully service the requirements of the small-scale miners thereat. Section 18. Custom Mills. The establishment and operation of safe and efficient custom mills to process minerals or ore-bearing materials shall be limited to mineral processing zones duly designated by the local government unit concerned upon recommendation of the Board. In mining areas where the private sector is unable to establish custom mills, the Government shall construct such custom mills upon the recommendation of the Board based on the viability of the project. The Board shall issue licenses for the operation of custom mills and other processing plants subject to pollution control and safety standards. The Department shall establish assay laboratories to crosscheck the integrity of custom mills and to render metallurgical and laboratory services to miners. Custom mills shall be constituted as withholding agents for the royalties, production share or other taxes due the Government. Section 19. Government Share and Allotment. The revenue to be derived by the Government from the operation of the mining program herein established shall be subject to the sharing provided in the Local Government Code. Section 20. People’s Small-scale Mining Protection Fund. There is hereby created a People’s Small-scale Mining Protection Fund which shall be fifteen percent (15%) of the national government’s share of the internal revenue tax or production share due the Government which shall be used primarily for information dissemination and training of small-scale miners on safety, health, and environmental protection, and the establishment of mine rescue and recovery teams including the procurement of rescue equipment necessary in cases of emergencies such as landslides, tunnel collapse, or the like. The fund shall also be made available to address the needs of the small-scale miners brought about by accidents and/or fortuitous events. Section 21. Rescission of Contracts and Administrative Fines. The noncompliance with the terms and conditions of the contract or violation of the rules and regulations issued by the Secretary pursuant to this Act, as well as the abandonment of the mining site by the contractor, shall constitute a ground for the cancellation of the contracts and the ejectment from the people’s small-scale mining area of the contractor. In addition, the Secretary may impose fines against the violator in an amount of not less than Twenty thousand pesos (P20,000.00) and not more than One hundred thousand pesos (P100,000.00) . Nonpayment of the fine imposed shall render the small-scale mining contractor ineligible for other small-scale mining contracts. Section 22. Reversion of People’s Small-scale Mining Areas. The Secretary, upon recommendation of the Director, shall withdraw the status of the people’s small-scale mining area when it can no longer be feasibly operated on a small-scale mining basis or when the safety, health and environmental conditions warrant that the same shall revert to the State for proper disposition. Section 23. Actual Occupation by Small-scale Miners. Small-scale miners who have been in actual operation of mineral lands on or before August 1, 1987 as determined by the Board shall not be dispossessed, ejected or removed from said areas: Provided, That they comply with the provisions of this Act. Section 24. Provincial/City Mining Regulatory Board. There is hereby created under the direct supervision and control of the Secretary a provincial/city mining regulatory board, herein called the Board, which shall be the implementing agency of the Department, and shall exercise the following powers and functions, subject to review by the Secretary: (a) Declare and segregate existing gold-rich areas for smallscale mining; (b) Reserve future gold and other mining areas for smallscale mining; (c) Award contracts to small-scale miners; (d) Formulate and implement rules and regulations related to small-scale mining; (e) Settle disputes, conflicts or litigations over conflicting claims within a people’s small-scale mining area, an area that is declared a small mining area; and (f) Perform such other functions as may be necessary to achieve the goals and objectives of this Act. Section 25. Composition of the Provincial/City Mining Regulatory Board. The Board shall be composed of the Department of Environment and Natural Resources’ representative as Chairman; and the representative of the governor or city mayor, as the case may be, one (1) small-scale mining representative from a nongovernment organization who shall come from an environmental group, as members. The representatives from the private sector shall be nominated by their respective organizations and appointed by the Department regional director. The Department shall provide the staff support to the Board. Section 26. Administrative Supervision over the People’s Small-scale Mining Program. The Secretary through his representative shall exercise direct supervision and control over the program and activities of the small-scale miners within the people’s small-scale mining area. The Secretary shall within ninety (90) days from the effectivity of this Act promulgate rules and regulations to effectively implement the provisions of the same. Priority shall be given to such rules and regulations that will ensure the least disruption in the operations of the small-scale miners. Section 27. Penal Sanctions. Violations of the provisions of this Act or of the rules and regulations issued pursuant hereto shall be penalized with imprisonment of not less than six (6) months nor more than six (6) years and shall include the confiscation and seizure of equipment, tools and instruments. Section 28. Repealing Clause. All laws, decrees, letters of instruction, executive orders, rules and regulations, and other issuances, or parts thereof, in conflict or inconsistent with this Act are hereby repealed or modified accordingly. Section 29. Separability Clause. Any section or provision of this Act which may be declared unconstitutional shall not affect the other sections or provisions hereof. Section 30. Effectivity. This Act shall take effect fifteen (15) days after the publication in the Official Gazette or in a national newspaper of general circulation.

QUICKFACTS ABOUT PHILIPPINE MINING

GOLD MINING IN THE PHILIPPINES The title of my first blog was not posted on the title heading but it appeared and was in the first sentence in the first paragraph. Nonetheless, i am still getting acquainted with the operations as i'm newbie in blogging. Anyways, a journey of thousand miles starts with a single step, so i am really inclined to have my second step now and so on..until i can exhaustively deliver to you all what is there in MINING in general and Mining in the Philippines specifically. As a backgrounder i will offer you some basics and quickfacts about Philippine Mining; What is mining? Mining is the extraction of valuable minerals and other materials from the ground. What are the different stages of mining? Mining is composed of four (4) stages, these are: 1. Exploration 2. Development and Construction 3. Utilization/Commercial Operation 4. Decommissioning/final mining stage/Rehabilitation stage What is exploration? Exploration is the process of searching for valuable minerals and quantifying them. It enables the mining company to determine whether there is a feasible deposit for mining development and production. How is mining regulated? Republic Act No. 7942, otherwise known as the Philippine Mining Act of 1995 and its Revised Implementing Rules and Regulations, DENR Administrative Order 96-40, as amended, is the main legal framework regulating the mining industry. On the other hand, Republic Act No. 7076 and its Implementing Rules and Regulations, DENR Administrative Order 34, series of 1992, governs small scale mining. Are all areas open to mining activities? No, there are areas that are closed to mining. Per Section 19 of the Mining Act, R.A. 7942, Mineral Agreement or Financial or Technical Assistance Agreement applications shall not be allowed: (a) In military and other government reservations, except upon prior written clearance by the government agency concerned; (b) Near or under public or private buildings, cemeteries, archeological and historic sites, bridges, highways, waterways, railroads, reservoirs, dams or other infrastructure projects, public or private works including plantations or valuable crops, except upon written consent of the government agency or private entity concerned; (d) In areas expressly prohibited by law; and (f) Old growth or virgin forests, proclaimed watershed forest reserves, wilderness area, mangrove forests, mossy forests, national parks, provincial/municipal forests, parks, greenbelts, game refuge and bird sanctuaries as defined by law and in areas expressly prohibited under the National Integrated Protected Area System (NIPAS) under Republic Act No. 7586, Department Administrative Order No. 25, series of 1992 and other laws. Can mining and environmental protection co-exist? Yes, responsible mining and environmental protection can co-exist. Modern and responsible mining does not destroy the environment; it just alters it to another land use. The future use of the land after mining is designed and planned even before mining starts. The government also requires that mining contractors institute an Environmental Protection and Enhancement Program before the mining operation starts in order to protect the environment. How can the Mining Act safeguard the environment? The Mining Act and its Revised Implementing Rules and Regulations, DENR AO 96-40, as amended, requires that an Environmental Protection and Enhancement Program covering the period of the mineral agreement or permit be prepared and approved prior to commencement of mining or exploration. The environmental program shall be incorporated in the work program which the contractor or permittee shall submit as an accompanying document to the application for a mining permit or exploration permit. The work program shall include not only plans relative to mining operations but also to rehabilitation, regeneration, revegetation and reforestation of mineralized areas, slope stabilization of mined-out and tailings covered areas, aquaculture, watershed development and water conservation; and socioeconomic development. Who monitors the compliance of these environmental programs? To ensure compliance of approved environmental programs, Multipartite Monitoring Teams (MMT) are created to monitor their implementation. The expenses for such monitoring activities are charged to the Monitoring Trust Fund that the Contractor is required to setup. The MMT is composed of representatives from the environmental NGO; the affected communities; the affected Indigenous Cultural Community (ies), if any; the Contractor; from the DENR-Regional Office concerned and the representative of the Mines and Geosciences Bureau-Regional Office as Head. How are the interests of the host communities safeguarded? The Mining Act requires that the Contractor shall assist in the development of its mining community, the promotion of general welfare of its inhabitants and the development of science and mining technology. In line with these, a five-year Social Development and Management Program (SDMP) is prepared in partnership with the host and neighboring communities. The SDMP should be able to provide alternative livelihood opportunities for employees, their dependents, and the neighboring communities during the life-of-the-mine. The mining company is mandated to spend at least 1% of the annual direct mining and milling costs for social program. Section 62 of the Mining Act also prescribes that the contractor shall give preference to Filipino citizens in all types of mining employment within the country insofar as such citizens are qualified to perform the corresponding work with reasonable efficiency and without hazard to the safety of the operations. Priority is also given to the local residents in hiring workers for the mining project. What are the guarantees to protect the indigenous peoples? Under Section 16 of the Mining Act, “No ancestral land shall be opened for mining operations without the prior and informed consent of the indigenous cultural community concerned.” In the event of an agreement with an indigenous cultural community, royalty payments are also agreed upon by the parties. The said royalty shall form part of a trust fund for the socioeconomic well being of the indigenous cultural community. Does the Mines and Geosciences Bureau (MGB) have the technical capability to audit the environmental management and social development compliances of the mining companies? Yes, the MGB has the technical capability to monitor the environmental management and social development compliances of mining companies. Most of the technical staff has ample training in environmental and social sciences from Australia, Japan, Netherlands, France or Sweden. Also, the MGB is equipped with a modern laboratory and field equipment for on-site analysis. What makes the present law better than the old Mining Law? The Mining Act of 1995 and its Revised Implementing Rules and Regulations, DAO 96-40, as amended ensures that environmental conditions are sustained over the life of the mine. The minimum environmental requirements are the implementation of the following: 1. Environmental Work Program (EnWP) – addresses any potential disturbance during the exploration stage; 2. Environmental Compliance Certificate (ECC) – should be secured prior to the development and construction of the mine; 3. Environmental Protection and Enhancement Program (EPEP) – the document that details the methods and procedures the company will use in attaining its environmental protection and management objectives over the life-of-the-mine. 4. Annual Environmental Protection and Enhancement Program (AEPEP) – based on the approved EPEP to implement progressive rehabilitation measures. 5. Final Mine Rehabilitation/Decommissioning Plan (FMR/DP) – submitted together with the EPEP before the start of mining operation, ensures that all disturbed areas will be restored, as near, as possible to its original state or to a pre-agreed productive end-use. In addition, the mining/exploration permit applicant is required to secure a Certificate of Satisfactory Environmental Management and Community Relations Record. How would modern mining help the labor industry? Mining has accounted for about 149,000 employees in its large-scale (mining and quarrying) sector or about 0.40% of total Philippine employment. However, this is significantly higher if the industry’s multiplier effect is considered. While estimates vary, it is safe to assume that for every job generated in the mining industry, around four to six more jobs are indirectly generated in the upstream and downstream sectors. What is the economic contribution of mining? Since the revitalization of the minerals industry in 2004, at least US$1.4 billion has already been invested in the country. It is expected that this investment will reach US$11.3 billion by 2011 while generating an annual foreign exchange of at least US$10.1 Billion from exports of mineral products.

GOLD MINING IN GENERAL I come to love mining by chance, a chance encounter some eleven years ago with one of the Gurus of mining, one chance encounter that shifted most of my life's interests, perspectives and directions. It made me seek more knowledge about the intricacies of mining gold leaving me to believe that i found real wisdom not until, i stumbled upon a chapter and a few verses in the Holy book, in Job 28:1-28 which tells of a comparison between man's knowledge & skill in seeking and in getting Earth's Treasures to a real wisdom that is often neglected, God's greatest gift, his Wisdom. 1"Surely there is a [a]mine for silver And a place where they refine gold. 2"Iron is taken from the dust, And copper is smelted from rock. 3"Man puts an end to darkness, And (A)to the farthest limit he searches out The rock in gloom and deep shadow. 4"He sinks a shaft far from habitation, Forgotten by the foot; They hang and swing to and fro far from men. 5"The earth, from it comes food, And underneath it is turned up as fire. 6"Its rocks are the source of sapphires, And its dust contains gold. 7"The path no bird of prey knows, Nor has the falcon's eye caught sight of it. 8"The proud beasts have not trodden it, Nor has the fierce lion passed over it. 9"He puts his hand on the flint; He overturns the mountains at the base. 10"He hews out channels through the rocks, And his eye sees anything precious. 11"He dams up the streams from flowing, And what is hidden he brings out to the light. The Search for Wisdom Is Harder 12"But (B)where can wisdom be found? And where is the place of understanding? 13"(C)Man does not know its value, Nor is it found in the land of the living. 14"The deep says, 'It is not in me'; And the sea says, 'It is not with me.' 15"(D)Pure gold cannot be given in exchange for it, Nor can silver be weighed as its price. 16"It cannot be valued in the gold of Ophir, In precious onyx, or sapphire. 17"(E)Gold or glass cannot equal it, Nor can it be exchanged for articles of fine gold. 18"Coral and crystal are not to be mentioned; And the acquisition of (F)wisdom is above that of pearls. 19"The topaz of Ethiopia cannot equal it, Nor can it be valued in (G)pure gold. 20"(H)Where then does wisdom come from? And where is the place of understanding? 21"Thus it is hidden from the eyes of all living And concealed from the birds of the sky. 22"[b](I)Abaddon and Death say, 'With our ears we have heard a report of it.' 23"(J)God understands its way, And He knows its place. 24"For He (K)looks to the ends of the earth And sees everything under the heavens. 25"When He imparted (L)weight to the wind And (M)meted out the waters by measure, 26When He set a (N)limit for the rain And a course for the (O)thunderbolt, 27Then He saw it and declared it; He established it and also searched it out. 28"And to man He said, 'Behold, the (P)fear of the Lord, that is wisdom; And to depart from evil is understanding.'" My analysis: Man has, by knowledge & skill, brought the precious metals from their concealment. He can similarly discover hidden things, as the veins of silver, and gold, yet this was a wisdom of an higher nature, and out of man's reach. The caverns of the earth he may discover, but not the counsels of heaven. Dispensations of Providence were regulated by the highest wisdom. To confirm this, Job showed of what a great deal of knowledge and wealth men may make themselves masters. The caverns of the earth may be discovered, but not the counsels of Heaven. Go to the miners, thou sluggard in religion, consider their ways, and be wise. Let their courage and diligence in seeking the wealth that perishes, shame us out of slothfulness and faint-heartedness in labouring for the true riches.. How much better is it to get wisdom than gold! How much easier, and safer! Yet gold is sought for, but grace neglected. Will the hopes of precious things out of the earth, so men call them, though really they are paltry and perishing, be such a spur to industry, and shall not the certain prospect of truly precious things in heaven be much more so?