Philippine Mineral Resources Act

upoifier of l" TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session JUL 10 P3:24 SENATE RECEIVED EN S.B. No.. INTRODUCED BY SENATOR RISA HONTIVEROS AN ACT REGULATING THE RATIONAL EXPLORATION, DEVELOPMENT AND UTILIZATION OF MINERAL RESOURCES, REPEALING FOR THIS PURPOSE REPUBLIC ACT NO. 7942 OR THE "PHILIPPINE MINING ACT OF 1995", AND APPROPRIATING FUNDS THEREFOR EXPLANATORY NOTE The Philippines holds a large reserve of mineral resources and is considered as among the most mineralized countries in the world. It is 3rd richest in the world for gold per unit area, 4th richest in copper, 5th in nickel, and fth for chromite. These mineral resources have been sought to contribute to national development; however, in the past twenty years, the mining industry has not contributed significantly to the economy and even caused negative impacts to communities, including detrimental environmental destructions where the mines are located. The present mining law (Republic Act 7942) has clearly failed to regulate the development and exploitation of our mineral resources in a way where benefits are maximized by Filipino communities and by the State, with mitigated impacts to other environmental and natural resources, industries, and the rights of Filipino communities. The present fiscal regime for mining does not allow us to maximize the benefits of our non-renewable resource. Mining as an economic activity is not only an issue of resource use but also concerns water and food security, environment, human rights and indigenous people's rights and a rights-based approach to sustainable development. In the past decade, the mining industry has only contributed an annual average of 0.7-1% to the Gross Domestic Product compared to other industries because the government receives only 4% excise tax share, and employs 200,000-250,000 or only 0.6% of total employment.

Meanwhile, it should be noted that the ecotourism, agriculture, fisheries, and forestry sectors have been found to be seriously threatened by the mining industry. Downstream mining activities are not necessarily promoted because our present mining law allows for export of our ores and processing elsewhere. Mining largely affects forest covers, watersheds, agricultural lands, and water systems that sustain us. With only 10% forest cover, entry of mining projects will further threaten our biodiversity-including important bird and key biodiversity areas. Other than land and water pollution, mining also causes coral reef degradation as tailings and siltation find its way to the sea, and eventually affects our food source. Mining concessions have encroached in areas where indigenous and rural communities, including farmers and fisher folks reside, and this threaten their health, food supply, livelihood, culture, integrity of their ancestral domain-their rights. Under the current system, mining is prioritized over other land uses. Further the current mining policy gives companies the right to water, timber, and easement, and to use explosives. Many cases of mining-related conflicts, violence and human rights violations have been documented and reported, most of which are continuing and remain unaddressed. This is aggravated by the presence of paramilitary forces in mining areas, also allowed for by the government. Needless to say, the present law has allowed for the plunder of our finite mineral resources at the expense of the environment and the Filipino people. The present mining law, an outdated one, also has not considered the occurrence of impacts of climate change and disaster risks. In the past five years alone, many large-scale mining-related disasters have been reported. The Philippines is among the top five most vulnerable countries to the impacts of climate change. Mining operations and climate-induced extreme weather events aggravate the impacts of disasters to the ecosystem and communities. There is a need to overhaul the current mining policy framework to ensure the proper management and utilization of our mineral resources, and to address the current mining issues. Likewise, the new policy must also be climate sensitive and should factor in the impacts of climate change to the industry and Filipino communities. In order to address the challenges in the mining industry and the proper management of our mineral, this measure is being proposed. This bill seeks to guarantee that the exploration, development and utilization of mineral resources will

primarily benefit the Filipino people; prioritize sustainable livelihood choices for communities; give utmost importance to food security and livable conditions for the people; ensure that the gains from the mining industry would be maximized while preventing or mitigating its adverse effects; recognize that the issue of environment and sustainable development is local and thus prioritizes local participation in decisions surrounding mining; ensure the protection of human rights of communities and individuals; and impose harsh penalties for the violation of its provisions. The passage of this bill is earnestly sought. RISA HONTIVEROS Senator

empiree of le TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 JUL 10 P3:24 SENATE S.B. No. 395 RECE!VED BY: INTRODUCED BY SENATOR RISA HONTIVEROS AN ACT REGULATING THE RATIONAL EXPLORATION, DEVELOPMENT AND UTILIZATION OF MINERAL RESOURCES, REPEALING FOR THIS PURPOSE REPUBLIC ACT NO. 7942 OR THE "PHILIPPINE MINING ACT OF 1995", AND APPROPRIATING FUNDS THEREFOR Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the "Philippine Mineral

2 Resources Act."

SEC. 2. Declaration of Policy, - It is enshrined in the Philippine Constitution

that the State owns all the mineral, coal, natural gas and petroleum resources within its national territory, its terrestrial, fluvial and marine domains, including its territorial 6 seas, the seabed, the subsoil, the insular shelves, and other submarine areas within 7 its archipelagic baselines. The appropriate utilization, sound management of the 8 country's finite mineral resources and the enjoyment of the benefits of such is 9 exclusive to the Filipino people. These resources shall in no way be alienated. The Philippine mining industry shall be developed within the framework of national industrialization through the nationalization of the industry towards self- 12 sufficiency. The pursuit of mining industry development is integrative to the country's priorities in achieving genuine agrarian reform, the modernization of its agricultural base, and rural development. The State shall take the lead in mining industry development that shall be pursued according to a National Industrialization Program (NIP) and Mining Plan (MP) that adheres to the medium- and long-term needs of the country, the advancement of the industry's technology with emphasis on existing indigenous knowledge,

1 research and development, the right to self-determination of the indigenous and Moro peoples and the generally accepted principles as embodied in the International 3 Covenants on Civil and Political Rights, on Economic, Social and Cultural Rights, the 4 UN Declaration on the Rights of Indigenous Peoples and other international accords 5 on human rights, labor rights, the rights of women and children, and the protection 6 and preservation of the environment, of which the State is a party. Consistent with the policy of the State to protect and advance the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature, it shall be the objective of the State to: A. Maintain peace and order, protect life, liberty and property and promote the general welfare; B. Advance the medium- and long-term needs of the Philippines; C. Encourage the advancement of the industry's technology with emphasis on existing indigenous knowledge, research and development; D. Protect and advance the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature; E. Value the dignity of every human person and guarantees full respect for human rights and affirms the role of women in nation building, promotes women's empowerment, and pursues equal opportunities for women and men through equal access to, control over, and ownership of resources; F. Promote social justice in all phases of national development; G. Recognize and promote the rights of indigenous cultural communities within the framework of national unity and development and protect the right to self- determination of the indigenous and Moro peoples; H. Promote social justice and climate justice in all phases of national development, which is consistent with a 1.5°C pathway towards carbon neutrality by 2050 or sooner; I. Promote just transition of the workforce and the creation of decent work and quality jobs in accordance with nationally defined development priorities; J. Promote climate-smart and judicious stewardship of mineral resources; K. Support a just minerals transition in the shift to renewable energy;

L. Protect the integrity of all ecosystems towards increasing the ability of the people to adapt to the adverse impacts of climate change; M. Protect and promote the right to health of the people and instill health consciousness among them; N. Pursue an independent foreign policy. In its relations with other states the paramount consideration shall be national sovereignty, territorial integrity, national interest, and the right to self-determination; O. Develop a self-reliant and independent national economy effectively controlled by Filipinos; P. Ensure the autonomy of local governments; Q. Give highest priority to the enactment of measures that protect and enhance the right of all the people to human dignity, reduce social, economic, and political inequalities, and remove cultural inequities by equitably diffusing wealth and political power for the common good; R. Encourage non-governmental, community-based, or sectoral organizations that promote the welfare of the nation; and S. Adopt and accept the generally accepted principles as embodied in the International Covenant on Civil and Political Rights, International Covenant on Economic, Social, Cultural Rights, UN Declaration on the Rights of Indigenous Peoples, UN Convention on Biodiversity and other international accords on human rights, labor rights, the rights of women and children, and the protection and preservation of the environment, of which the State is a party.

SEC. 3. National Industrialization Program. - The State shall formulate

a National Industrialization Program pursuant to the principles of agricultural modernization, development of industrial and manufacturing industries, and rational, sustainable, and equitable development of the national economy. The State shall prioritize the development of mineral resources that are needed for national development and for the creation of domestic processing capacity for industrial metals, the integration of agricultural modernization, and downstream industries that will generate employment. The State shall likewise promote the development of mineral processing to maximize the benefits or value-added from mining. Towards this end, it shall encourage the establishment and development of manufacturing plants that will

1 utilize locally processed mineral products as well as mining firms that will process 2 mineral ores first for domestic purposes and before exporting them to other countries. The National Industrialization Plan to be implemented by the State shall be 4 economically-viable, ecologically-sound, and in aid to the nation's efforts to attaining 5 food self-sufficiency, rural development and national industrialization. The National 6 Industrialization Program shall provide a comprehensive economic framework for 7 genuine national development, including agricultural modernization, public infrastructure in energy, transportation, communication, and downstream mineral industries. The National Industrialization Program pursuant to the principles of climate 10 justice should result in concrete changes in the mining industry, specifically with regard to energy consumption, resource utilization, emissions, and inclusive development.

SEC. 4. Guiding Principles, - The judicious stewardship of our mineral

resources, as well as its exploration, development and utilization shall comply with the following principles: A. The current export-orientation of mining is hereby reversed and a domestic needs-based development of the industry shall be pursued by the State as a step towards achieving genuine economic development; B. The mining industry shall be geared towards national industrialization and shall be built for the production of raw materials such as base metals, basic chemicals and petrochemicals needed by the basic, medium and heavy industries to produce as much consumer, intermediate and capital goods with the country's stock of finite mineral and non-mineral industrial raw materials and in the process provide jobs to the country's vast human resources. The extraction of energy transition minerals (ETMs) shall also be pursued in support of the country's just transition to renewable energy; C. The community shall actively participate in the stewardship of mineral resources. Community-based initiatives shall be encouraged and supported; D. The State shall provide the appropriate support and protection to Filipino corporations to further develop and increase their participation in the industry. All mining industry investments shall be mutually-beneficial and

help achieve the specific target and goals of the National Industrialization Program. To come up with the large capital requirement for mining, the State must use local sources such as but not limited to the granting of incentives and financial aid to local private sector investors, re-channelling of government budget allocations for foreign debt payments and military expenditures, and the proceeds from the government shares of the Malampaya Natural Gas Project, and/or similar projects; E. The State shall allow, in exceptional cases, foreign corporations to invest in the mineral industry. Based on the National Industrialization Program and the country's capability and capacity, the government must identify the mineral areas where foreigners can help and invest subject to rigorous screening and strict regulations as provided in this Act and related laws. The participation of foreign companies in the critical stages of minerals extraction and processing shall be in accordance with a mandatory program or agreement for technology transfer and equity shares that do not exceed 40 percent of the full capital requirements: Provided, That capital accumulation and reinvestment within the country shall be primarily encouraged over profit repatriation by the foreign companies and that foreign mining corporations, their principals, local firms and conduits that have a bad track record in the Philippines are banned from investing in the country; F. The development of the mining industry should primarily be geared to serve the needs of the country's agrarian reform program and help modernize Philippine agriculture. Mining shall be prohibited in prime agricultural lands; G. Inland and water use, the production of sufficient food free from pollution towards food security shall always be the priority; H. Mining shall also be prohibited in areas specified for food production, fisheries development, watershed and heritage areas, sacred sites of indigenous people, and in small island ecosystems. Mining in environmentally-critical areas such as small island ecosystems, primary forests and environmentally sensitive watersheds such as, but not limited to, the areas surrounding the Verde Island Passage connecting and

surrounding the provinces of Batangas, Marinduque, Occidental Mindoro, Oriental Mindoro and Romblon, shall be banned. Dumping of mine wastes and tailings to rivers, lakes and seas are prohibited. Additionally, off-site effects of mining shall not have disadvantageous effects on downstream areas, I. Mining shall also be prohibited in areas declared by local government units as No-Mining Zones; in prime agricultural lands, irrigable and irrigated lands as defined by Republic Act 9700, and, in areas wherein cultural properties are found, as enumerated under Republic Act 10066; J. Long-term mining development shall be programmed by the State in accordance with the country's availability of resources, capability and well- being of the people, technological capacity and people's acceptability. The right of Muslim Filipinos or the Moro people and indigenous peoples to self- determination and ancestral domain shall be recognized and their collective property rights are guaranteed by this Act; K. Job security, adequate and equal wages, benefits, and safe working conditions for mine workers shall be ensured in state- and privately-owned mining corporations. Their right to organize and form their own associations, to collective bargaining and to strike shall be upheld. The State shall strictly prohibit forced and child labor in the industry. It shall likewise disallow gender discrimination in mining operations; L. Small-scale mining operations shall be supported and regulated by the state. The state will encourage the formation of cooperatives among small- scale miners and provide financial and technical support to develop the labor-intensive and upgrade the backward technologies into a more efficient and less environmentally destructive mining process. Whenever small-scale mining activities are stopped, alternative and sustainable livelihood shall be provided to the small-scale miners; M. In no instance shall the Armed Forces of the Philippines (AFP), the Philippine National Police (PNP) and private security and paramilitary groups be used to coerce or force the entry and protection of mining operations;

N. Mining industry research and development shall focus on harnessing more economically-efficient and less environmentally-destructive methods. The advanced technologies from other countries that are proven to be appropriate locally shall be adopted in the industry; O. All mining operations shall be strictly regulated to ensure the domestic processing of mineral ores up to the secondary and tertiary stages of industrial production to develop our own basic and medium industries. Recycling programs and substitution in the use of minerals shall be incorporated in the overall plan of mining development to reduce mine waste and pollution, and mining rehabilitation techniques. Indigenous technologies that are relevant and appropriate, particularly with respect to the domestic processing of minerals shall be promoted, harnessed, expanded and upgraded; P. Ecologically-sound practices at all stages of mining shall be promoted. Mining technologies such as open-pit mining and submarine mine tailing disposal methods that are banned abroad or proven inappropriate in countries like the Philippines must and shall all be banned. Environmental standards shall be set to ensure the protection and efficient utilization of the country's mineral resource base. Ecological considerations in mining development shall be given due emphasis and attention to substantially eliminate destructive effects that certain mining industrial processes might have on the people's health and the environment. Monitoring mechanisms with strong participation from the local communities will be instituted; Q. Areas affected by mining shall be rehabilitated, including abandoned mines. Violators shall be strictly punished and made to pay heavy compensation to the State and the affected communities. R. The exploration, development and utilization of natural resources must comply with the principles of intergenerational responsibility; S. Mining agreements shall not be considered as vested rights, but, are mere privilege that the State can grant or revoke anytime for a legitimate purpose. CHAPTER II

SCOPE AND GENERAL PRINCIPLES

SEC. 5. Scope. - This Act shall govern the ownership, management and

3 governance of both metallic and non-metallic ore minerals onshore and offshore, as well as quarry resources, sand and gravel, guano, and gemstones, and the s conservation, exploration, development, utilization, processing and transportation 6 thereof. The ownership, management and governance of petroleum, natural gas and 7 coal shall be governed by special laws. Offshore mining shall also be governed by special laws. This Act shall cover onshore and offshore, large-scale and small-scale mining 10 operations in the country, including mining projects in ancestral domains in accordance to the existing national and international policies on our indigenous peoples.

SEC. 6. Ore minerals form part of the country's irreplaceable and non-

renewable natural wealth and capital. The conservation of our mineral wealth is a paramount public interest and mineral resources shall be utilized in a rational manner for national and local development as specified by law and consistent with the National Industrialization Program and the just transition to renewable energy. The economic benefits derived from mining shall be equitably distributed by, among others, prioritizing development for local communities and all other stakeholders including neighboring communities directly affected by mining operations.

SEC. 7. The State shall have primary role, responsibility and concern in the

management, conservation, utilization, and development of the mining industry and shall ensure the people's participation in policy making and implementation of the same at all levels of government. Mining shall be a shared concern and responsibility of the national and local governments, corporations, and the communities affected by the exploration, development, and utilization of mineral resources.

SEC. 8. The State shall implement specific programs to lend empowering

support to small-scale operators in order to enable them to become legitimate small- scale mining operators. It shall likewise accord support to communities dependent on small-scale mining whose operations shall strictly adhere to the provisions of this law.

SEC. 9. The State shall support indigenous cultural communities/ indigenous

peoples (ICCs/IPs) in developing capacities to effectively exercise their rights and

responsibility, including their priority rights in the harvesting and utilization of natural resources in their ancestral domain and their right to self-determination. ICCs/IPs have the shared responsibility with the State to manage the mineral resources in their respective ancestral domains. They shall be free from external interference, 5 manipulation, threats, intimidation, coercion and other analogous acts.

SEC. 10. Mineral resources development, utilization and processing shall be

reserved for Filipino citizens and for Filipino corporations. Exploration shall be 8 undertaken directly by the State for the benefit of the nation.

SEC. 11. The State shall also give priority to the re-mining and recycling of

10 mineral resources as the first option instead of opening new mines to maximize the remaining mineral resources from the wastes of previous mine projects subject to the environmental, social and economic costs, following the principles of circularity. The rehabilitation of abandoned mines shall also be given importance.

SEC. 12. The State shall ensure the fullest compliance of all government and

corporate entities in and on the closure of mines, the rehabilitation or restoration of the immediate environs of each mining project or activity in the country as provided by law. The rehabilitation of abandoned mines shall also be given importance.

SEC. 13. The State shall support small-scale Filipino mining corporations and

mining cooperatives to venture into large-scale mining projects through Joint-Venture Agreements and invest on mutually-beneficial grounds that will push forward the National Industrialization Program.

SEC. 14. - Mineral resource extraction shall be allowed based on the National

Industrialization Plan and the requirements of a just transition to renewable energy as provided in this Act. The sharing of profits from mining activities, including the anticipated environmental, cultural and social costs on the affected local communities of each mining project, should far outweigh ecological and social benefits and costs from other land uses. The anticipated cost of environmental, cultural and social impacts on the affected local communities, which shall at all times be prevented or mitigated through the allocation of sufficient funds for this purpose. In mining projects with foreign participation, a just return of investment scheme for the foreign entrants into the industry shall be prescribed by law. CHAPTER III

DEFINITION OF TERMS

SEC. 15. Definition of terms. - As used in this Act:

A. Abandonment refers to the contractor's act of leaving the entire mining lease in a state that has not met agreed rehabilitation standards; B. Acid mine drainage refers to the dissolution, mobilization and transportation of toxic metals from rocks arising from the chemical reaction of acid- generating minerals in rock and waste materials that possess high permeability to air, rainfall and other water inflows when land is opened up for mining that initiates the chemical reaction, resulting to a perpetual machine of acid generation; C. Ancestral domain refers to all areas generally belonging to indigenous cultural communities/indigenous peoples (ICCs/IPs) comprising the lands, inland waters, coastal areas, and natural resources therein, held under a claim of ownership, occupied or possessed by ICCs/IPs, by themselves or through their ancestors, communally or individually since time immemorial, continuously to the present except when interrupted by war, force majeure, deceit, stealth or as a consequence of government projects or any other voluntary dealings entered into by government and private individuals or corporations, and which are necessary to ensure their economic, social and cultural welfare. It shall include ancestral lands, forest, pasture, residential, agricultural, and other lands individually owned whether alienable and disposable or otherwise; hunting grounds, burial grounds, areas of worship, bodies of water, mineral and other natural resources, and lands which may no longer be exclusively occupied by ICCs/IPs but from which they traditionally and historically had access to for their subsistence and traditional activities, particularly the home ranges of ICCS/IPs who are still nomadic or shifting cultivators; D. Ancestral lands refer to lands occupied, possessed and utilized by individuals, families and clans who are members of ICC/IPs since time immemorial, by themselves or through their predecessors-in-interest, under claims of individual or traditional group ownership, continuously, to the present except when interrupted by war, force majeure or displacement by

force, deceit, stealth, or as a consequence of government development aggression projects and other dealings entered into by government and private individuals/corporations including, but not limited to, residential lots, rice terraces or paddies, forests, swidden farms and tree lots; E. Beneficiation refers to a process wherein a large fraction of the waste material is removed from the mineral ore; F. Buffer Zones refer to identified areas that are outside the boundaries of, and immediately adjacent to protected areas designated by law that need special development control in order to avoid or minimize harm to the said protected areas; G. Carrying capacity refers to the capacity of the natural and human environments to accommodate and absorb changes without giving rise to conditions of ecological instability and degradation; H. Certificate of Ancestral Domain Title (CADT) refers to a title formally recognizing the rights of possession and ownership of ICCs/IPs over their ancestral domains identified and delineated in accordance with this law; I. Certificate of Ancestral Lands Title (CALT) refers to a title formally recognizing the rights of ICCS/IPs over their ancestral lands; J. Closure of mines refers to the permanent termination of operations at a mine or mine processing site after its complete decommission; K. Consent refers to the voluntary assent of the landowner or those who have been in open, continuous, and exclusive possession of the land for more than ten (10) years in good faith, or thirty (30) years in bad faith, free from any external manipulation, interference and coercion, and obtained after fully disclosing the intent, scope, and the positive and negative impacts of the activity, in a language and process understandable to the said landowner or occupant; L. Contract area refers to the area delineated as specifically provided by a mineral agreement for the development or utilization of mineral resources found therein; M. Critical watershed refers to a drainage area of a river system, lake or water reservoir that supports any existing and proposed hydroelectric power,

domestic water supply, geothermal power and irrigation sources and works, that needs immediate rehabilitation and protection to minimize soil erosion, improve water yield and prevent possible flooding. The term shall also include areas which are traditional areas for human settlements, land-uses, or sea-uses which are representative of cultures, or human interaction with the environment especially when it has become vulnerable under the impact of irreversible change; N. Critical habitats refer to areas where species and/or subspecies naturally occur or that have naturally established its population that are crucial to the survival of other species and are essential for its conservation; O. Cultural sites refer to sites that bear a unique or exceptional testimony to a cultural tradition or to a civilization which is living or which has disappeared or, directly or tangibly associated with events or living traditions, with ideas, or with beliefs, with artistic and literary works of outstanding universal significance; P. Customary laws refer to a body of written or unwritten rules, usages, customs and practices that are traditionally recognized, accepted and observed by respective ICCs/IPs and local communities; Q. Decommissioning refers to the activity or process that commences after the cessation of prospecting activities or mineral production, including metallurgical plant production. It involves, among others, the removal of unwanted infrastructure, making excavations and waste repositories safe and stable; and surface rehabilitation with a view to negate any adverse environmental impacts remaining after cessation of mineral production. It includes the after-care or maintenance that may be needed; R. Downstream industries refer to mining activities that cover minerals processing, refining, manufacturing of intermediate and capital goods and marketing of such; S. Ecological profile refers to a geographic-based instrument for planners and decision-makers which present an evaluation of the environmental quality and carrying capacity of an area and measures the specific interactions that will be affected by any and all mining operations;

T. Energy transition minerals (ETMs), or simply transition minerals, are those which are required for the just minerals transition; U. Exploration refers to all methods of searching or prospecting for mineral resources for the purpose of determining the existence, extent, quantity and quality thereof, which may include but are not limited to seismic, gravity, magnetic, electromagnetic, radar, induced polarization, radio-wave and electro-geochemical; V. Extraction refers to ore-removal activities that take place at the mine site itself; W. Free, prior and informed consent (FPIC) refers to the consensus of all members of the ICCs/IPs to be determined in accordance with their respective customary laws and practices, free from any external manipulation, interference, coercion, and other analogous acts and obtained after fully disclosing the intent and scope, including the positive and negative impacts, of all the activities, in a language and process understandable and acceptable to the community; X. Indigenous peoples/Indigenous cultural communities (IPs/ICCs) refer to a group of people or homogenous societies identified by self-ascription and ascription by others, who have continuously lived as organized communities on communally bounded and defined territory, and who have, under claims of ownership since time immemorial, occupied, possessed and utilized such territories, sharing common bonds of language, customs, traditions and other distinctive cultural traits, or who have, through resistance to political, social and cultural inroads of colonization, non-indigenous religions and cultures, became historically differentiated from the majority of Filipinos. ICCs/IPs shall likewise include peoples who are regarded as indigenous on account of their descent from the populations which inhabited the country, at the time of conquest or colonization, or at the time of inroads of non- indigenous religions and cultures, or the establishment of present state boundaries, who retain some or all of their own social, economic, cultural and political institutions, but who may have been displaced from their

traditional domains or who may have resettled outside their ancestral domains. They are peoples who have a spiritual relationship with the land; Y. Indigenous political structure refers to organizational and cultural leadership systems, institutions, relationships, patterns and processes for decision- making and participation as identified by ICCs/IPs such as, but not limited to, Council of Elders, Council of Timuays, Bodong Holders, and any other tribunal or body of similar nature; Z. Joint Venture Agreement refers to an agreement wherein the government and a qualified person organize a joint-venture company, with both parties having equity shares, to develop and manage mineral resources. Aside from earnings on the equity, the Government shall be entitled to a share in the output computed at a certain percentage mutually agreed upon by and beneficial to both parties; AA. Just transition refers to the transformation of the economic system as well as the energy system/s that support it which both must be founded on ecological and social wellbeing. It also includes promoting the welfare of workers affected by the transition to clean energy; BB. Just minerals transition refers to the judicious, efficient, and democratic use of energy transition minerals required of the shift to renewable energy; CC. Key biodiversity areas refer to places of international importance for the conservation of biodiversity; DD. Large-scale mining refers to mining in areas with more than twenty (20) hectares, using mechanized tools and equipment, requiring considerable capital and having large-scale environmental, social, cultural and economic impacts with regard to resource use and/or consumption; EE. Mineral Agreement refers to a contract entered into by the government, in behalf of the State, and a private Filipino person, granting such person/s the privilege to mine a specific contract area; FF. Mineral resource refers to any concentration of minerals/ rocks with potential economic value;

GG. Mineral processing refers to the milling, beneficiation or upgrading of ores or minerals and rocks or by similar means to convert the same into marketable products; HH. Minerals refer to all naturally occurring inorganic substances in solid, gas, liquid, or any intermediate state excluding energy materials such as petroleum, natural gas, radioactive materials, and geothermal energy; II. Mine development refers to the preparation of the mine site for production by shaft sinking or pit excavation, building of access roads, and constructing of surface facilities; JJ. Mine wastes and tailings refer to rock materials from surface or underground mining and milling operations with little or no economic value to the generator of the same; KK. Mining activity refers to any or all of the following activities: exploration, extraction, utilization, processing, transportation and other activities conducted for the same; LL. Mining area refers to a portion of the contract area which has been identified by the contractor wherein actual mining operations shall be conducted; MM. Mining operations refer to any and all of the mining activities involving the acts of exploration, feasibility, development, utilization, and processing; NN. National park refers to an area of the public domain that is a natural wilderness that is scenic or historic in character and has been withdrawn from settlement, occupancy, or any form of exploitation except in conformity with an approved management plan and set aside exclusively to conserve the area or preserve the scenery, the natural and historic objects, wild animals, and plants therein mainly for the purpose of biodiversity conservation and/or human enjoyment; OO. Native title refers to pre-conquest rights to lands and domains which, as far back as memory reaches, have been held under a claim of private ownership by ICCs/IPs, have never been public lands and are thus indisputably presumed to have been held that way since before the Spanish Conquest;

PP. Natural forest refers to a forest composed of indigenous, native or endemic trees, with high biodiversity, whose structure, functions, and dynamics have been largely the result of natural succession processes; QQ. Natural park refers to a relatively large area not materially altered by human activity where extractive resource activities are not allowed. These parks are maintained to protect outstanding natural and scenic areas of national or international significance for scientific, educational and recreational use; RR. Open-pit mining refers to a process of extracting metal ores and minerals that lie near the surface by removing the overlying material and breaking and loading the ore. Also known as open- cast mining and open-cut mining; SS. Ore refers to a material that contains minerals in such quantities that can be mined and worked commercially to extract that mineral. The mineral is usually contained in chemical combination with some other element in addition to various impurities; TT. Pollution control and infrastructure devices refer to infrastructure, machinery, equipment and/or improvements used for the impounding, treating, or neutralizing, precipitating, filtering, conveying and cleansing mine industrial waste and tailings as well as reducing or eliminating hazardous effects of solid particles, chemicals, liquids or other harmful by- products and gases emitted from any facility utilized in mining operations for their disposal; UU. Processing refers to all the treatment an ore receives after its extraction and beneficiation, which involves changes in the chemical nature of the mined minerals; W. Progressive rehabilitation refers to a rehabilitation that involves the staged treatment of disturbed areas during mining exploration, construction/development and extraction operations; WW. Protected areas refer to identified portions of land and water set aside by reason of their unique physical and biological significance that are managed to enhance the biological diversity and protected against destructive human exploitation;

XX. Quarry resources refer to any common rock or other mineral substances as the Director of the Mines and Geosciences Bureau (MGB) may declare to be quarry resources such as andesite, basalt, conglomerate, coral sand, diatomaceous earth, diorite, decorative stones, gabbro, granite, limestone, marble, marl, red burning clay for potteries and bricks, rhyolite, rock phosphate, sandstone, serpentine, shale, tuff, volcanic cinders, and volcanic glass; YY. Quarrying refers to the process of extracting, removing and disposing quarry resources found on or underneath the surface of private or public land; ZZ. Recycling refers to the treating of used or waste materials through a process of making them suitable for beneficial use and for other purposes, and includes any process by which solid waste materials are transformed into new products that may be used as raw materials for the production of other goods or services: AAA. Rehabilitation refers to the process by which the land will be returned to a form and productivity in conformity with a prior land use plan, including a stable ecological state that does not contribute substantially to environmental deterioration; BBB. Remediation refers to the removal of pollution or contaminants from environmental media for general protection of the area and the people; CCC. Remining refers to the process of maximizing and recovering the remaining minerals from the rejects or wastes of previous mines and mining operations; DDD. Restoration refers to the act of bringing back the original, or the closest possible state, of the forest and biodiversity, with the productivity matching that of the original ecosystem; EEE. Self-determination refers to the right of a people to determine its own political destiny as defined by existing laws. The right to self-determination includes the right of ICCs/IPs to choose their form of government within existing national borders to achieve a greater degree of autonomy to help preserve their culture, ancestral domain, and way of life;

FFF. Small-scale mining refers to mining activities which rely heavily on manual labor using simple implements and methods and do not use explosives or any heavy mining equipment, primarily engaged in for sustainable living. Impacts from small-scale mining shall not be large-scale, otherwise, the mining activity shall be defined as large-scale mining; GGG. Strategic minerals refer to minerals needed for national industrialization, including rural development. It shall also include energy transition minerals required for the country's just transition to renewable energy; HHH. Tailings Disposal System or Tailings Placement refers to the method wherein the mining wastes are dumped, placed, or disposed; III. Traditional small-scale mining refers to small-scale mining using traditional means and without the use of chemical or mechanized extraction and separation means, methods, implements, and/or equipment; JJJ. Watershed system refers to an area consisting of the watershed and its divide including its connection from the headwaters to the reef or a land area drained by a stream or a fixed body of water and with tributaries having a common outlet for surface run-off. It is the system by which the mining- affected communities shall be determined following the drainage of a stream or fixed body of water with tributaries having a common outlet for surface runoff; CHAPTER IV OWNERSHIP AND GOVERNANCE

SEC. 16. Ownership of mineral resources. - The State owns the mineral

resources, facilities and technology within its national territory and shall utilize and manage these for the benefit of the Filipino people on the national and local levels. Consistent with the State's recognition of the indigenous and Moro peoples' right to self-determination, government shall ensure that the management of mineral resources shall be primarily for the benefit of the local communities in whose territory the same shall be found. Any minerals extracted shall be used for local industries consistent with the National Industrialization Plan and the country's just transition to renewable energy. The State may directly undertake the development, utilization and

processing of mineral resources or enter into mineral agreements with eligible parties pursuant to the provisions of this Act.

SEC. 17. Consent in Private Lands. - The MGB shall not allow entry into

4 any private lands for the purposes of exploration activities without the written consent 5 of the land owner, possessor or occupant and payment of just compensation for the use of property. Neither shall the MGB allow entry into any land under dispute.

SEC. 18. Mineral resources in Ancestral Domains. - The mineral

resources within the ancestral domains/ancestral lands are the collective private property of the indigenous cultural communities/indigenous peoples (ICCS/IPs), as provided by law. The management of such mineral resources shall build on the indigenous knowledge systems and practices of the ICCs/IPs. A non-member of ICCs/IPs concerned may be allowed to take part in the development and utilization of the natural resources for a period of not exceeding twenty-five (25) years renewable for not more than twenty-five (25) years: Provided, That a formal and written agreement is entered into with the ICCs/IPs concerned or that the community, pursuant to its own decision making process, has agreed to allow such operation: Provided, finally, That the NCIP may exercise visitorial powers and take appropriate 18 action to safeguard the rights of the ICCs/IPs under the same contract.

SEC. 19. Free and Prior Informed Consent and Certification

Precondition. - No mining activity shall be conducted within or covering ancestral domains or lands without securing the Free and Prior Informed Consent from the concerned ICCs/IPs and Certification Precondition issued by the National Commission on Indigenous Peoples (NCIP), certifying therein that the concerned ICCS/IPs gave their consent to that particular project after undergoing the Free and Prior Informed Consent (FPIC) process. In instances when there are questions on the legality or validity of the issued free, prior, and informed consent before the NCIP, mining operations shall not be allowed to be conducted in the ancestral domains or lands of the ICCs/IPs without the final resolution of such question on the legality or validity of the FPIC.

SEC. 20. When ancestral domain is yet to be formally recognized. -

Mineral resources within identified ancestral domains delineated by the ICCS/IPs in accordance with existing law, rules and regulations, and/or by virtue of historic rights

1 and self-delineation shall be managed by the ICCs/IPs concerned whether these 2 domains are covered with Certificates of Title or not.

SEC. 21. ICCs/IPs displaced from ancestral domain due to mining. -

4 The native title over an ancestral domain subsists notwithstanding the fact that the 5 ICCs/IPs who hold such title have been displaced therefrom or that such ancestral 6 domains have been occupied by other persons or corporations under another claim of title emanating from the State. In such cases, ICCs/IPs shall continue to own such mineral resources.

SEC. 22. Authority of the Mines and Geosciences Bureau. - The Mines

10 and Geosciences Bureau (MGB) shall be a scientific research institution under the Department of Environment and Natural Resources (DENR), primarily conducting the research and development of mineral resources and mining technologies, and the training of local communities, local government units and indigenous peoples. It shall also regulate the operations of persons involved in all mining activities. It shall also work with the Multi-Sectoral Mineral Council in the monitoring of mining activities, as provided in this Act.

SEC. 23. Regional Offices. - The MGB shall have as many regional offices in

the country as may be established by the DENR Secretary, upon the recommendation of the MGB Director.

SEC. 24. MGB as repository of information. - The MGB shall be the central

repository of information regarding mineral lands, resources, permits, studies and other information relevant to the operation of a mine, including the necessary requirements that a contractor is obliged to submit. All other governmental offices and other bodies created under this Act shall furnish copies to the MGB of all other information related to mining.

SEC. 25. Access to Information. - All contractors for mineral permits and

agreements shall provide information to the MGB and the affected indigenous peoples, local communities, and local government units. The following information of full disclosure, among others, shall be required: A. the methods and processes of mining to be used by the contractor; B. the environmental and social risks; C. the ownership structure of the contractor/company; and

D. the sources of financing, including loan agreements. All information and documents related to the proposals, mineral agreements, 3 permits and mining operations shall not be considered confidential. The refusal to 4 grant access to the aforementioned information shall be cause for the disqualification 5 of prospective proponents, or the cancellation of mineral agreements and permits. The MGB, being the repository of all relevant information under this Act is 7 mandated to grant the public access to any information in its custody. The refusal or unnecessary delay by officers of the MGB to provide information shall be punishable 9 by a fine of fifty thousand pesos (Php 50,000.00) for every instance of refusal or 10 unnecessary delay. Information requested by indigents or marginalized sectors shall be provided to them for free.

SEC. 26. Recording System. - There shall be established a national and

regional filing and recording system. A mineral resource database system shall be set up in the MGB which shall include, among others, a mineral rights management system.

SEC. 27. Publication. - The MGB shall publish annually a mineral gazette of

nationwide circulation containing, among others, a current list of mineral rights, their locations specified in the appropriate map, mining rules and regulations, other official acts affecting mining, and other relevant information to mineral resources development. A publication fund shall be included in the regular budget of the MGB.

SEC. 28. Exploration activities. - Exploration of mineral resources shall be

undertaken by the State, through the MGB, or by private entities through a Joint Venture Agreement. All exploration activities shall be strictly monitored by the MGB to ensure that mineral resources are not extracted before the corresponding environmental, social, indigenous and community benefit assessments have been done. All results of exploration of mineral resources shall be submitted and shared with the State through the MGB. The State shall also carry out human resource training and development, scientific research and technological application and development in geological baseline surveys of minerals and mineral activities.

SEC. 29. Inventory of mineral resources. - The MGB shall identify and

provide an inventory of all the available mineral resources, including the mine tailings and wastes within the country. It shall submit to the DENR a report which shall contain the following information: a. the classification of minerals; the quality and grade of the ore; C. the potential mine life; the geological description of the area; e. the economic viability of mine tailings; and f. all other relevant information necessary for potential mineral investments. The process for mineral exploration and the approval for any mining permit shall not commence without the said inventory.

SEC. 30. Strategic minerals. - The MGB shall conduct researches and

studies prior to any mining operations to identify strategic mineral resources. Mineral resources needed for local industries, agricultural modernization, rural development, and just transition shall be opened to mining subject to the implementing rules and regulations of this Act.

SEC. 31. Demarcation of mineral areas. - The MGB shall demarcate the

boundaries of all areas identified as containing commercial quantities of mineral resources.

SEC. 32. Information on watershed continuums, - The baseline

information on all watersheds in the country shall be required and made accessible to the public in all forms, including the websites of the MGB and the National Water Resources Board (NWRB). No mining permit shall be issued without this baseline information.

SEC. 33. Affected local community and local government unit. - For

the purposes of this Act, the affected local community and local government unit are defined in relation to any area which has the potential to be negatively impacted by mining operations in the demarcated area. The local communities and the local government units therefore, are those who are dependent on the watershed eco- system and its resources.

SEC. 34. Establishment of the Multi-Sectoral Mineral Council. - A Multi-

2 Sectoral Mineral Council shall be established for the purposes of this Act. There shall be as many Multi-Sectoral Mineral Councils as there are watershed continuums with 4 demarcated mineral areas.

SEC. 35. Powers and Functions of the Multi-Sectoral Mineral Council.

- The Council shall have the following powers: A. Define a review period, for each mineral area, where comments on mining proposals shall be submitted to the MGB; B. Call for public hearings to present and formally discuss mining applications and gather options and public feedback or comments before a project should be approved by the MGB; C. Determine whether or not mining operations shall be allowed; D. Deliberate on proposals for mineral agreements; E. Monitor the conduct of mining operations; F. Establish its internal rules of procedure which are not contradictory to this Act; G. Provide public comment on all public submissions and justify their decision; and H. Recommend the cancellation of a permit.

SEC. 36. Composition of the Multi-Sectoral Mineral Council. - The Multi-

Sectoral Mineral Council shall be composed of: A. a representative from the MGB, who may come from the concerned Provincial DENR Office; B. one (1) representative from each of the affected provincial governments or independent component cities or highly urbanized cities (LGUs); C. representatives from an established municipal-level peoples/community/sectoral/ICCs or IP organizations affected by the proposed mining project and whose numbers shall be equal to or as many as the number of those representing the affected LGUs; and, D. two (2) representatives from non-government organizations of at least five years (5) of prior existence,

The MGB shall be the convenor of the Council. No mining operations shall be allowed without the Council having been properly convened. [Change during TWGs)

SEC. 37. Areas open to mining. - The power to determine whether or not

4 the land where mineral resources are found shall be opened to mining is vested in the 5 Council. Areas may only be opened to mining upon the two-thirds vote of all the 6 members of the Council pursuant to the guidelines provided by this Act. In determining whether or not such area shall be opened, the following shall be taken into consideration: A. MGB report on the exploration conducted; B. Existence of downstream industries for the mineral resources; C. Potential environmental, public health and cultural impacts; D. Conflict and risk assessment; E. Potential economic benefits of the development and utilization of the minerals; F. Carrying capacity and the ecological profile of the area; G. Existing and alternative land uses of the area; and H. Local government land use plan. No mining application shall be allowed by the Council unless an environmental 19 economic audit or resource valuation of the proposed mining area has been conducted applying acceptable valuation standards. This audit or resource valuation shall be conducted in coordination with a multi-sectoral group of experts and community stakeholders. It shall include the determination of the expected economic returns and 23 the potential negative impacts from mining. A detailed study must mention the biodiversity present in the mining claim and the impact of mining operations on the environment, the possible environmental degradation and the attendant loss of subsistence resources. There must be mention of existence of sacred areas or areas of cultural significance and address the impacts of resource exploitation on indigenous and local communities. In no case shall the Council open the following areas to mining: A. Areas declared by the Local Government Units as No-Mining Zones as specified by local ordinances and other issuances; B. densely populated areas, especially residential areas;

C. prime agricultural lands, irrigable and irrigated lands as defined by Republic Act 9700; D. lands subject for agrarian reform; E. areas with potential for acid mine drainage; F. critical watersheds and critical habitats; G. geohazard and climate disaster-prone areas; H. small island ecosystems; I. cultural sites, which may include, but not limited to, sacred sites and burial grounds; J. traditional swidden farms and hunting grounds; K. cultural property enumerated under Republic Act 10066, or the "National Cultural Heritage Act of 2009"; L. key biodiversity areas; M. high conflict areas; N. the Province of Palawan pursuant to Republic Act 7611, or the "Strategic Environmental Plan for Palawan Act"; O. in military and other government reservations, except upon prior written clearance by the government agency concerned; P. 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 agricultural crop plantations; Q. 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 upon the utilization of minerals shall be agreed upon by the parties, with said royalty forming a trust fund for the socioeconomic development of the community concerned; R. old growth, natural or primary forests, watershed forest reserves, wilderness area, mangrove forests, mossy forests, national parks, protection forests, provincial/municipal forests, parks, greenbelts, game refuge and bird sanctuaries and their respective buffer zones as defined by existing laws and ordinances; and

S. in areas expressly prohibited by law or ordinances. The determination whether or not the same are absolutely closed to mining shall not only be limited to the existence of a law or ordinance declaring it as protected areas, but also to the actual use of said area.

SEC. 38 Manner of voting by the Council for opening an area to

6 mining. - The MGB shall convene the Council once the inventory of the existing minerals, the formulation of a mine plan, and the existence of the baseline information of the particular watershed area are submitted. The Council shall thereafter convene their respective constituents to determine whether or not their respective territories 10 shall be opened for mining. Sections 26 and 27 of the Republic Act 7160 or the "Local Government Code of 1991" on consultation and consent shall be strictly adhered to. Local government units at all levels shall conduct mandatory public hearings with the affected local communities, to be carried out within their respective territories and presenting those enumerated under Section 40 of this Act. Local government units, ICCS/IPs, NGOs and people's organizations, shall ensure that the MGB shall comprehensively explain the goals and objectives of the project or program, its negative and positive impact upon the people and the community in terms of environmental or ecological balance, and the measures that will be undertaken to prevent or minimize the adverse effects thereof. Thereafter, the approval of the respective Sanggunian of the affected local government units shall be required in accordance to the sentiment of the peoples of the local government unit as a result of the consultations conducted: Provided, That the affected local government unit representatives shall meet and relay the decision of their respective constituents to the provincial government/independent component cities/highly urbanized cities. The provincial/component city/highly urbanized city government representative shall sit in the Council and shall carry the result of the vote of all the affected local government units within the province resulting from the process as provided in this Act. There must be a two-thirds vote among all the affected LGUs for the purpose of opening a particular area for mining in its jurisdiction. Failure to reach a two-thirds vote for opening shall mean that the area is closed to mining. 32 All the proceedings shall at all times be recorded.

In case there are affected indigenous cultural communities/indigenous peoples, 2 they shall also bring the community's vote to the Council after undergoing their own 3 processes in accordance with their respective indigenous political structure, free from 4 any external manipulation, interference, coercion and other analogous acts, and 5 obtained after fully disclosing the intent and scope, including the positive and negative 6 impacts of the activity, in a language and process understandable and acceptable to them. Any member of the community may file a protest with the Council during any point in the period of consultations and deliberations for the Council's consideration.

SEC. 38. Pool of consultants. - There shall be a pool of independent

consultants that shall assist the local government units, local communities or ICCS/IPs with regard to the technical aspects of mining. Ensure that consultants include experts in gender-related concerns, representatives from women's organizations, and women from the local community.

SEC. 39. Publication, posting and radio announcement requirements.

- Any decision of the Council shall be published by the MGB in the local newspaper in the local language, shall be announced on local radio programs for not less than six (6) weeks and notices shall be distributed widely in communities. The notice containing relevant information shall likewise be posted in conspicuous places for the information of the general public and shall be announced during the local market day. CHAPTERV MINERAL AGREEMENTS

SEC. 40. Modes of Mineral Agreement. - The following are the mineral

agreements as herein defined; A. Mineral production sharing agreement - an agreement where the Government grants to the contractor the exclusive right to conduct mining operations within a contract area and shares in the gross output. The contractor shall provide the financing, technology, management and personnel necessary for the implementation of this agreement; B. Co-production agreement - an agreement between the Government and the contractor wherein the Government shall provide inputs to the mining operations other than the mineral resource; and

C. Joint venture agreement- an agreement where a joint-venture company is organized by the Government and the contractor with both parties having equity shares. Aside from earnings in equity, the Government shall be entitled to a share in the gross output. In no case shall Financial or Technical Assistance Agreements, or any other 6 similar agreements, contracts, or executive issuances granting license or permission 7 to explore, develop or utilize mineral resources be awarded to foreign entities or persons.

SEC. 41. Eligibility, - Only Filipino citizens or corporations sixty percent

10 (60%) of whose equity is owned or controlled by such citizens shall be allowed to conduct the development, utilization and processing of mineral resources within the country.

SEC. 42. Identification of mining projects. - With the vote of all the

members of the Council to open areas for mining operations, the MGB shall prepare the necessary information sheets on the said area for potential investments. The MGB shall call for proposals to develop the mining area based on the National Mining Plan (NMP).

SEC. 43. Pre-screening of mining proposals. - Mining proposals shall be

pre-screened by the MGB according to the National Industrialization Plan and a just minerals transition and upon the submission of interested parties of the following: A. demonstration of financial capability; B. proven social and environmental track record, including those of its officers and directors; C. clear corporate structure and ownership; D. proof of physical office and operations of the proponent within the Philippines; E. identification of potential investors; F. mining project feasibility and operational work plan to include proposed operation, mitigation and prevention methods and/or equipment; G. capacity to process minerals; H. intent to develop downstream industries and contribute to local community development; and

] I. submission of the Environmental and Social Impact Assessment and Mitigation Plan. The Council shall fix the minimum capitalization that any bidder must satisfy based on its determination of the expected economic returns and the potential negative impacts from mining, upon reference to an independent study proposing such minimum capitalization.

SEC. 44. Environmental and Social Impact Assessment and Mitigation

Plan. - The contractor shall submit an Environmental and Social Impact Assessment 9 and Mitigation Plan (ESIAMP) containing the means, methods, processes and schedule 10 by which the contractor shall conduct its operations and mitigate negative environmental and social impacts. Social impact shall include possible impacts on the enjoyment and exercise of human rights, cultural rights, and the right to a healthful ecology. The ESIAMP shall include plans relative to mining operations; the rehabilitation, regeneration and restoration of mineral areas; slope stabilization of mined out and tailings covered areas; aquaculture, watershed development and water conservation; the relocation and return of displaced population; and provisions for alternative livelihood and socioeconomic development. The ESIAMP shall also contain a Social Development Plan which shall likewise 19 contain the plans of the proponent for the development of the community through the establishment of infrastructures and programs that shall be sustainable even after the closure of the mine. It shall include a gender analysis that looks into the power relations between women and men in the household and community, and in 23 terms of activities, access to, control, and ownership of resources. It shall also ascertain how mining operations will affect women's condition and position in the 25 household and community. Finally, it shall develop a gender action plan, based on the gender analysis, to include clear targets and indicators in mitigating negative 27 environmental and social impacts on women and ensuring women's participation and tangible benefits from the mining operations and rehabilitation. The ESGIAMP shall be responsive to the issues and needs of women, LGBTQI individuals, children, persons with disabilities, and older persons. It shall likewise ensure that their rights are protected and respected.

SEC. 45. Pre-qualification. - The MGB shall thereafter identify the top five

2 (5) proposals and shall recommend the same to the Council for deliberation.

SEC. 46. Deliberation. - After the MGB's transmittal of its recommendations

4 to the Council together with all the submitted documents for the pre-qualification, the 5 Council shall initiate the deliberation process of the pre-qualified proposals. Immediately thereafter, Sections 26 and 27 of the Local Government Code on 7 consultation and consent shall be strictly adhered to. Local government units at all levels shall conduct mandatory public hearings with the affected local communities, to 9 be carried out within their respective territories and presenting those enumerated 10 under Section 38. Local government units, ICCS/IPs, NGOs and people's organizations, 11 shall ensure that the mining applicant shall comprehensively explain the goals and objectives of the project or program, its negative and positive impact upon the people and the community in terms of social, cultural and environmental or ecological balance, and the measures that will be undertaken to prevent or minimize the adverse effects thereof. Thereafter, the approval of the respective Sanggunian of the affected local government units shall be required in accordance to the sentiment of the peoples of the local government unit as a result of the consultations conducted. The affected local government unit representatives shall meet and shall relay the decision of their respective constituents to the provincial government, independent component cities, or highly urbanized cities. The provincial, component city, or highly urbanized city government representative shall sit in the Council and shall carry the result of the vote of all the affected local government units within the province, independent component city, or highly urbanized city resulting from the process provided in the preceding paragraph of this Section. In determining which proposal is acceptable to the people, a majority vote of the local government units within the province/independent component city/highly urbanized city shall be required. The affected ICCs/IPs shall also deliberate on the proposals in accordance with their own systems and processes free from any external manipulation, interference, coercion and other analogous acts, and obtained after fully disclosing the intent and scope, including the positive and negative impacts of the activity, in a language and process understandable and acceptable to them.

After the respective processes are complied with, the Council shall then meet 2 and decide which proposal, if any, is most acceptable and consistent with their own 3 socio-economic, environmental and cultural programs and shall notify the MGB of the chosen proposal.

Section 47. Posting and Publication Requirement. - After notice, the

6 MGB shall notify the proponent of the accepted proposal and cause the publication 7 and posting of the accepted proposal: Provided, That any member of the community may contest the decision of the Council within six (6) weeks upon the posting and publication of notice of the acceptance of the proposal in the manner provided for in 10 Section 38. No mining operations shall be allowed pending any action questioning the legality or validity of the proposal.

SEC. 48. Issuance of the Permit. - The MGB shall only issue permit in

accordance with the decision of the council on the winning proposal only upon showing compliance with the FPIC processes as evidenced by Certification Precondition issued by the NCIP in accordance with Section 59 of RA 8371, or a written FPIC of the affected sectors in accordance with the provisions of this Act in areas outside ancestral domains.

SEC. 49. Environmental and Social Impact Compliance Certificate. -

The mining proponent shall be issued an Environmental and Social Impact Compliance Certificate by the Environmental Management Bureau with the approval of the Council, Provided, That no amendments to the ESIAMP shall be allowed, unless any proposed amendment shall benefit the affected communities and that the Council and the MGB shall be notified of any amendments to the ESIAMP, that the former shall give their consent to the same, after the proponent explains in detail the reason for such amendment/s and the possible impacts and consequences of these: Provided, further, That any violation of the ESIAMP shall cause the cancellation of the Certificate.

SEC. 49. Maximum areas for mineral agreements. - The maximum area

under mineral agreements that an entity can hold at any one time shall be determined by the Council: Provided, That the contract area per agreement shall not exceed five hundred (500) hectares: Provided, further, That no entity shall be awarded in excess of the total contract area of seven hundred-fifty (750) hectares in any given watershed

1 area. For the purposes of this Act, the prohibition on the maximum area shall also 2 include corporations that shall have common directors or significant shareholders.

SEC. 50. Term of mineral agreement. - The term of the mineral agreement

4 shall be equivalent to the mine life plus an additional five (5) years for the rehabilitation of the mining area. Provided, That in no case shall a Mineral Agreement have a term beyond fifteen (15) years. Provided further, That the contractor shall already include rehabilitation/remediation of the mining area within the ten-year term. In no case shall a Mineral Agreement be extended without just cause to be 9 determined by the Council: Provided, That the extension shall not cause the term of 10 the agreement to exceed the fifteen (15) year term mentioned in the preceding section: Provided further, That for the purposes of this Act, just cause shall mean acts or events resulting from war, force majeure or those beyond the control of the mining proponent not attributable to the same: Provided finally, That in no case shall mineral agreements be renewed after the expiration of the fifteen-year period.

SEC. 51. Prohibition on open-pit mining methods and submarine

tailings disposal. - The open-pit mining methods and the submarine tailings disposal method shall be prohibited.

SEC. 52. Failure to initiate mining operations. - Failure to initiate mining

operations in accordance with the work program within five (5) years from the award of the mineral agreement shall cause the cancellation of the mineral agreement. The contractor thereafter forfeits the value of the improvements made upon the land. The contractor and other corporations who are also run by the same directors and officers 23 are thereafter banned from bidding to conduct mining operations for ten (10) years after failure to initiate its mining operations in accordance with the work program.

SEC. 53. Mandatory consultations in each mining phase. - Mandatory

consultations with affected persons and communities shall be undertaken in each phase of mining operation: exploration, extraction, processing, and mine closure to ensure that the peoples shall be informed of the proposed plans and methods that are proposed to be conducted. Consultations should be inclusive, participatory, transparent, timely, and free of harassment, threats, and risk.

Section 54. FPIC of ICCs/IPs on each stage of mining. - The consent of

the ICCs/IPs and the CP issuance shall be required at each and every stage of the

1 mining operation through a process of FPIC which will be facilitated by the National 2 Commission on Indigenous Peoples. Any violation relative thereto is subject to the penalties as provided under the NCIP FPIC Guidelines and shall be a ground for the 4 cancellation of the mineral agreement. As to the ICCs/IPs, their free and prior informed consent shall be secured in 6 accordance with their customary laws, practices and processes. The procedure to 7 secure the FPIC of the ICCs/IPs shall be facilitated by the NCIP and the CP issuance be made pursuant to the IPRA and existing guidelines. Any violation relative thereto is subject to the penalties as provided under the existing NCIP FPIC Guidelines and 10 shall be a ground for the cancellation of the mineral agreement.

SEC. 55. Monitoring. - The Council shall form a multi-partite monitoring team

to monitor the contractor's compliance to the terms and conditions of the mineral agreement. It may conduct ocular inspections of the contract area at any time and inspect all the books of contractors and refer the same to independent auditors. The multi-partite monitoring team or the MGB may confiscate surety, performance and guaranty bonds posted through an order to be promulgated by the Director. The Council, the Director or the local government authorities may deputize, when necessary, any member or unit of the Philippine National Police (PNP), barangay, duly registered non-government organization (NGO) or any qualified person to police any and all mining activities. The composition of the multi-partite monitoring team and multi-sectoral monitoring team shall include women from the local community and representatives from women's organizations. The monitoring framework must include 23 gender indicators.

SEC. 56. Withdrawal from the Mineral Agreement. - The contractor may

withdraw from the mineral agreement at any time for justifiable cause with one (1) month's notice to the MGB, the Council or the ICCS/IPs, and other government 27 agencies as provided in this Act. The Council, in cooperation with other concerned government agencies, shall issue a clearance for withdrawal upon certifying that the contractor has complied with all its legal obligations, including the appropriate measures for mine closure and rehabilitation. Funds and bonds which have been put up by the contractor in accordance with this Act shall be forfeited.

SEC. 57. Prohibition on the Transfer of Mineral Agreements. - In no

2 case shall mining rights under this Act be transferable. The contractor shall also immediately notify the Council and the MGB of any change in the ownership and/or control of the corporation and its financing program. Violation of this provision shall cause the cancellation of the mineral agreement and forfeiture of the contractor's assets in favor of the State. CHAPTER VI SMALL-SCALE MINING

SEC. 58. Governance of Small-scale mining. - Small-scale mining shall

continue to be governed by the provisions of Republic Act 7076 or the "People's Small- 11 Scale Mining Act of 1991"; Provided, That the Provincial or City Mining Regulatory Board shall be composed of the Governor or City Mayor, as chairperson, as the case may be, a DENR representative as co-chairperson, one (1) small scale mining representative, one (1) large-scale mining representative, one representative from an 15 environmental non-government organization, one representative from a people's organization (PO) coming from the marginalized sector, and at least one (1) representative from the indigenous communities, whenever applicable, as members. The representatives from the private sector, nongovernment organization and 19 indigenous communities shall be selected by their respective organizations or communities, and appointed by the PMRB or CMRB; Provided, further, That the conduct of small-scale mining shall also comply with the prohibitions and regulations established herein for large-scale mining. Only individuals and cooperatives may apply 23 for a small-scale mining permit.

SEC. 59. Maximum term of small-scale mining permits. - The term for

small-scale mining permits shall be three (3) years, extendable to a maximum of fifteen (15) years.

SEC. 60. Traditional small-scale mining within ancestral domains. —

The Council shall conduct regular monitoring activities within its jurisdiction to determine if the provisions of relevant laws are complied with in traditional small-scale mining by ICCs/IPs within their respective ancestral domains.

SEC. 61. FPIC in small-scale mining. - Small-scale mining activities within

any ancestral domain by any person shall also require the FPIC of ICCS/IPs.

SEC. 62. Requirement for Environmental and Social Impact

Compliance Certificate. - Small-scale mining shall likewise require an 3 Environmental and Social Impact Compliance Certificate (ESICC). All small-scale 4 mining applicants or proponents must show proof of compliance with the terms and 5 conditions of its ESICC prior to the issuance of a small-scale mining permit (SSMP). Failure to submit this requirement will result in the non-issuance of the SSMP.

SEC. 63. Environmental measures in small-scale mining. - The State

8 shall immediately address the environmental and health hazards and problems in 9 small-scale mining, including the use of mercury, cyanide and other chemicals, in the 10 amalgamation of gold by small-scale miners. The MGB shall immediately conduct research to focus on developing and promoting appropriate, clean, efficient, culturally-sensitive and industrially-viable technologies that shall mitigate the environmental and health effects of mercury and cyanide use and eventually replace the current practice. Mercury use in small-scale mining shall be prohibited. The Bureau shall research, develop and actively promote appropriate technologies in small-scale mining including labor-intensive methods, environmental protection and physical techniques of gold extraction among small- scale miners.

SEC. 64. Monitoring small-scale mining. - A multi-sectoral monitoring

team shall be organized by the Council to monitor SSMP permittees' compliance with the terms and conditions of their respective SSMPs and ESICCs. The team shall conduct ocular inspections of SSMP areas at any time and shall have visitorial powers.

SEC. 65. Livelihood support. - The State shall support the improvement of

the livelihood of small-scale-miners by extending services for access to other more viable and sustainable forms of livelihood, and, if the same is not possible, the following support services: A. access to minerals markets and to financing; B. facilitating partnership with mining companies or contractors by, among others, requiring mining companies to buy tailings from small-scale mining operations for further processing or recycling; C. facilitating partnerships among small-scale mining cooperatives; and

D. other incentives to attract informal small-scale miners to formalize their status.

SEC. 66. Buying stations. - The Bangko Sentral ng Pilipinas shall ensure that

buying stations acquire gold from small-scale traders at prevailing international gold market prices and the prevailing exchange rate set by the BSP Treasury Department on a daily basis. CHAPTER VII QUARRY RESOURCES

SEC. 67. Quarry resources within ancestral domains. - Gathering of

quarry resources, sand and gravel, guano and other organic fertilizer materials, and gemstones within ancestral domains shall likewise be subject to the FPIC of ICCs/IPs. ICCs/IPs and the government shall be entitled to ten percent (10%) of royalties depending on whether the resources are found inside or outside ancestral domains. Permits shall have a term of five (5) years, renewable for like period but not to exceed a total term of twenty (20) years, and, only at a maximum surface area of five (5) hectares.

SEC. 68. Quarry Permit. - Any qualified Filipino may apply for a quarry permit

on privately- owned lands and ancestral domains and public lands for building and construction materials such as marble, basalt, andesite, conglomerate, tuff, adobe, granite, gabbro, serpentine, inset filling materials, clay for ceramic tiles and building bricks, pumice, perlite and other similar materials that are extracted by quarrying from the ground at the provincial/city mining regulatory board. The provincial governor shall grant the permit after the applicant has complied with all the requirements as prescribed by the rules and regulations set forth by this Act. Provided that gathering/extraction of sand for its metallic contents such as magnetite from the country's rivers and shorelines shall be require a mineral agreement in lieu of a quarry permit. The maximum area which a qualified person may hold at any one time shall be limited to a surface area of five hectares (5 has.) Provided, That in large-scale quarry operations involving cement raw materials, marble, granite, sand and gravel and construction aggregates, a qualified person and the government may enter into a mineral agreement as defined herein.

A quarry permit shall have a term of five (5) years, renewable for like periods 2 but not to exceed a total term of twenty (20) years. No quarry permit shall be issued 3 or granted for any area that is covered by a mineral agreement.

SEC. 69. Quarry fees and taxes. - A quarry permittee shall pay quarry fees

5 as provided for under the implementing rules and regulations. The permittee shall also pay excise taxes as provided by pertinent laws.

SEC. 70. Cancellation of quarry permit. - A quarry permit may be cancelled

by the provincial governor for violations of the provisions of this Act, its implementing 9 rules and regulations or the terms and conditions of said permit: Provided, That before 10 the cancellation of such permit, the holder thereof shall be given the opportunity to be heard in an investigation conducted for the purpose.

SEC. 71. Commercial sand and gravel permit. - Any qualified person may

be granted a permit by the provincial governor to extract and remove sand and gravel or other loose or unconsolidated materials outside ancestral domains which are used in their natural state, without undergoing processing from an area of not more than five hectares (5 has.) and in such quantities as may be specified in the permit.

SEC. 72. Industrial sand and gravel permit. - Any qualified person may

be granted an industrial sand and gravel permit by the MGB for the extraction of sand and gravel and other loose or unconsolidated materials outside ancestral domains that necessitate the use of mechanical processing covering an area of not more than five hectares (5 has.) at any one time. The permit shall have a term of three (3) years, renewable for a like period but not to exceed a total term of twenty (20) years.

SEC. 73. Exclusive sand and gravel permit. - Any qualified person may be

granted an exclusive sand and gravel permit by the provincial governor to quarry and utilize sand and gravel or other loose or unconsolidated materials from public lands for his own use, Provided, That there will be no commercial disposition thereof.

SEC. 74. State gratuitous permit. - Any government entity or

instrumentality may be granted a gratuitous permit by the provincial governor to extract sand and gravel, quarry or loose unconsolidated materials outside ancestral domains needed in the construction of building and/or infrastructure for public use or other purposes over an area of not more than two (2) hectares for a period co- terminus with the said construction.

SEC. 75. Private Gratuitous Permit. - Any owner of land may be granted a

2 private gratuitous permit by the provincial governor to extract sand and gravel, quarry 3 or loose unconsolidated materials within the said private property.

SEC. 76. Guano permit. - Any qualified Filipino may be granted a guano

permit by the provincial governor to extract and utilize loose unconsolidated guano 6 and other organic fertilizer materials in any portion of a municipality where said person has an established domicile outside ancestral domains. The permit shall be for specific caves or for confined sites with locations verified by the DENR field officer in accordance with existing rules and regulations: Provided, That extraction does not 10 violate and is consistent with the provisions of existing laws, rules and regulations, such as the Wildlife Life Act, among others.

SEC. 77. Gemstone gathering permit. - Any qualified Filipino may be

granted a non-exclusive gemstone gathering permit by the provincial governor to gather loose stones useful as gemstones in rivers and other locations outside ancestral domains.

SEC. 78. Council recommendation for approval. - No permit under

Chapter VII of this Act shall be issued without the recommendation of the Muiti- Sectoral Mineral Council prior to approval by the provincial government unit. CHAPTER VIII TRANSPORT, SALE AND PROCESSING OF MINERALS

SEC. 79. Ore transport permit. - A permit specifying the origin and quantity

of non-processed mineral ores or minerals shall be required for their transport. In the case of mineral ores or minerals being transported from the areas declared as Minahang Bayan to custom mills or processing plants, the Minahang Bayan Council concerned shall formulate their own policies to govern such transport of ores produced by small-scale mining cooperatives. Transport permits shall be issued by the MGB. The absence of a permit shall be considered as prima facie evidence of illegal mining and shall be sufficient cause for the confiscation of the ores or minerals being transported, the tools and equipment utilized, and the vehicle containing the same.

SEC. 80. Track record. - Only mining companies with demonstrated capacity

and good environmental track record in mineral processing shall be allowed to extract

1 minerals. The Council shall encourage contractors to put up processing plants within the community with the end in view of generating employment and developing other 3 downstream industries.

Section 81. Mineral trading registration. - No person shall engage in the

s trading of mineral products, either locally or internationally, unless accredited by the 6 DENR and duly registered with the Department of Trade and Industry (DTI) with a 7 copy of said accreditation and registration submitted to the MGB.

SEC. 82. Mineral Processing Permit. - No individual, partnership,

partnership, cooperative, corporation or other entity shall engage in the processing of 10 minerals without first securing a minerals processing permit from the Council. Minerals processing permits shall be for a period of five (5) years, renewable for like periods but not to exceed a total term of twenty-five (25) years. In the case of small-scale miners, the processing of mineral ores they produce, as well as the licensing of their custom mills or processing plants, shall continue to be governed by the provisions of Republic Act No. 7076. In the case of individuals, corporations, partnerships, cooperatives or other entities who are parties to a Mineral Agreement or a Financial or Technical Assistance Agreement, holders of quarry and industrial sand and gravel permits, the approved work program for the production period shall be sufficient requirement for them to process minerals in lieu of a mineral processing permit. A mineral processing permit shall be for a period of five (5) years, renewable for like periods: Provided, That renewal shall not be allowed unless the permit holder 23 has complied with all the terms and conditions of the permit and has not been found 24 guilty of violation of any provision of this Act and its implementing rules and regulations. After due process, a mineral processing permit may be suspended, revoked or 27 cancelled by the DENR for violation of its terms and conditions, or of pertinent laws, rules and regulations. Mineral processing shall be included in the Investment Priority plan to be prepared by the Board of Investment in accordance with Executive Order No. 226, as amended, otherwise known as the "Omnibus Investment Code of 1987" and shall 32 always be listed as a preferred area of investment.

CHAPTER IX DEVELOPMENT OF COMMUNITIES, SCIENCE AND TECHNOLOGY

SEC. 83. Expenditure for community development. - A contractor shall

4 assist in the development of the community, and the promotion of the general welfare 5 of its inhabitants towards sustainable development. Community development projects 6 shall in no way decrease the obligation of the corporation with regard to royalties and 7 fees due to communities and/or local government units. Community development projects should be consistent with the Comprehensive Land Use Plans (CLUP), 9 . Ancestral Domains Sustainable Development and Protection Plan (ADSDPP) and 10 annual investment plans of the local governments, CADT/CALT holders, and the like.

SEC. 84. Preferential option for Filipino labor, experts and training of

members of the local community. — A contractor or permittee shall give preference to Filipino citizens in all types of mining employment within the country. Members of the local community shall be trained in all aspects of the mining operations, including remining, recycling, and the management thereof. It shall employ and train 20-30% women in all aspects of mining operations keeping in mind the core labor standards and ensuring that acts of discrimination on the basis of sex and gander are not committed in recruitment, hiring, promotion, and provision of benefits.

SEC. 85. Use of indigenous goods, services and technologies. - A

contractor shall give preference to the use of local goods, services, and the scientific and technical resources in all stages of mining operations, where the same are of 23 equivalent quality and are available on equivalent terms as their imported counterparts.

SEC. 86. Donation or turnover of facilities. - Prior to the cessation of

mining operations by abandonment or withdrawal of operations on public lands by the contractor, the latter shall have a period of one (I) year therefrom within which to remove improvements. Otherwise, all the infrastructure, facilities and equipment shall be turned over or donated tax-free to the proper government authorities, national or local, to ensure that said infrastructure facilities and equipment are continuously maintained and utilized by the State. A fine of one hundred thousand pesos 32 (PhP100,000.00) shall be imposed for every day of delay.

CHAPTER X BENEFIT SHARING, TAXES AND FEES

SEC. 87. Taxes and fees. - The contractor shall pay all taxes and fees as

required by law, including the following: A. contractor's income tax; B. customs, duties and fees on imported capital equipment; C. value-added tax on imported goods and services; D. withholding tax on interest payments to foreign loans and on dividends to foreign stockholders; E. documentary stamps tax; F. capital gains tax; G. excise tax on minerals; H. local business tax; I. real property tax; J. community tax; K. occupation fees; L. registration, accreditation and permit fees; and M. water usage fees.

SEC. 88. Government share. - Aside from the taxes and fees referred to in

the preceding section, Government shall have a share equivalent or greater than ten percent (10%) of the gross revenues from the development and utilization of mineral resources that are owned by it to be set aside for the general fund of the government to be used, among others, for special projects such as energy development and generation and the management and conservation of protected areas in areas within the vicinity or adjacent to mining operations.

SEC. 89. Indigenous cultural communities' royalty. - In case of mineral

operations within ancestral domains, the contractor shall allot at least ten percent (10%) of the gross revenues as royalty to the ICCs/IPs. Community development programs shall not be considered as royalty payment. The payment of the royalties shall directly be given to the communities in a process that build on the ICCs/IPs' traditional and customary laws: Provided, That the royalty established in this Act shall be free from any external manipulation, interference, coercion, and other analogous

1 acts, and obtained after fully disclosing the intent and scope, including the positive 2 and negative impacts of the activity, in a language and process understandable and acceptable to them.

SEC. 90. Scientific research and development fund. - A Scientific

5 Research and Development Fund shall be set aside to be devoted to research and 6 development of clean mining technologies, improvement of mining processes, mine 7 rehabilitation, mitigating technologies, the setting up and maintenance of an independent pool of experts, and operational expenses of the MGB.

Section 91. Legal services fund. - A legal support fund shall be set aside

10 for the use of the communities and local government units for cases that they may file against mining permittees or cases that may be filed against them by mining companies in trying to do their responsibility of protecting the rights of the marginalized groups, the environment and sustainable development in general.

Section 92. Local Government Unit share. - Local Government Units shall

be entitled to a share of the net revenues from mining operations which shall be paid directly to the treasurer's office of the provincial/independent component city/highly urbanized city for distribution to other local government units. To determine the government share, the following variables shall be considered: A. Classification of local government; B. Vulnerability; and C. Human development index. A percentage of this amount shall be set aside by the respective local 23 government units for Disaster Risk Management. This fund shall likewise benefit 24 ICCs/IPs within the territory of the local government unit: Provided, That the administrative and operational expenses of the Council shall also be taken from this share.

SEC. 93. Mine wastes and tailings fees. - A semi-annual fee denoted as

mine wastes and tailings fee is hereby imposed on all operating mining companies in accordance with the implementing rules and regulations. The mine wastes and tailings fee shall accrue to a fund to be used as support funds for the monitoring activities of the Council. The DENR Secretary is authorized to increase mine wastes and tailings fees, when public interest so requires.

SEC. 94. Incentives. -Incentives that shall be given to the contractors shall

2 be limited only to pollution control or mitigation devices.

SEC. 95. Deposit of capital and profits requirement. - As part of their

4 demonstrated financial capacity, all large-scale mining companies or contractors are 5 required to deposit their capital investment and profits in banks or financial institutions 6 that are owned, managed and operated by the Philippine government.

SEC. 96. General rule on profit repatriation. - Contractors with foreign

financial assistance shall be allowed to repatriate their profits from mining projects 9 that should not exceed fifty (50) percent of the total profits posted at the end of every 10 fiscal year. Full disclosure of profits is required. The full repatriation of profits shall be allowed one year after the cessation of mining activities and the progressive rehabilitation of a mining area as specified in the mineral agreement of each contractor. The guidelines for Sections 95 and 96 shall be issued by the Bangko Sentral ng Pilipinas and shall be furnished to the DENR, MGB, Council and all respective contractors in the industry. CHAPTER XI SAFETY AND ENVIRONMENTAL PROTECTION

SEC. 97. Mines safety. - All contractors and permittees shall strictly comply

with all the rules and regulations concerning the safety and sanitary upkeep of mines and mining development. Government personnel involved in the implementation of mines safety, occupational health and environmental rules and regulations shall be covered under Republic Act 7305 or the "Magna Carta of Public Health Workers".

SEC. 98. Mine workers. - No person under sixteen (16) years of age shall

be employed in any place of mining operations and no person under eighteen (18) years of age shall be employed in a mine.

SEC. 99. Mine supervision. - All mining and quarrying operations that

employ more than fifty (50) workers shall have at least one (1) licensed mining engineer with at least five (5) years of experience in mining operations, and one (1) registered foreman.

SEC. 100. Safety of workers. - All mining companies shall provide

2 safeguards to the health and well-being of workers. The Regional Office of the 3 Department of Labor and Employment shall inspect all mining sites within their areas 4 of jurisdiction to determine the conditions of workers. Denial of entry shall be 5 punishable under this Act. Representatives of trade unions shall also have visitorial rights.

SEC. 101. Mine inspection. - The regional directors of the MGB and the

Council shall have jurisdiction over the safety inspection of all installations, surface or 9 underground, in mining operations at reasonable hours of day or night and in a manner that shall not impede or obstruct work in progress of a contractor or permittee. Monitoring reports and recommendations of the MGB shall be submitted to the Council. Measures shall be taken to prevent gender-based violence in the mining sites.

SEC. 102. Power to issue orders. - The regional directors of the MGB shall,

in consultation with the Environmental Management Bureau (EMB), within such time as specified in the order, require the contractor to remedy any practice connected with mining, which is not in accordance with safety and anti-pollution laws and regulations. In case of imminent danger to life or property, the MGB Director may summarily suspend the mining operation until the danger is removed, or appropriate measures are taken by the contractor. Unreasonable delay to remove the danger or introduce the necessary improvements by the contractor shall be a cause for the cancellation of the mineral agreement.

SEC. 103. Report of incidents and accidents. - In case of any incident or

accident, causing or creating the danger of loss of life or serious physical injuries, the person in charge of operations shall immediately report the same to the regional office where the operations are situated. Failure to report the same without justifiable reason shall be cause for the imposition of administrative sanctions prescribed in the rules and regulations implementing this Act. Incidents of gender-based violence shall also be reported.

SEC. 104. Environmental Protection. - Every contractor shall undertake an

environmental protection and enhancement program covering the period of the mineral agreement or permit. Such environmental program shall be incorporated in 32 the work program which the contractor or permittee shall submit as an accompanying

1 document to the application for a mineral agreement or permit. The work program 2 shall include not only plans relative to mining operations but also for the rehabilitation, 3 regeneration, revegetation and reforestation of mineralized areas, slope stabilization 4 of mined-out and tailings covered areas, aquaculture, watershed development and 5 water conservation; and socioeconomic development.

SEC. 105. Environmental Impact Assessment (ETA). - Except during the

7 exploration period of a mineral agreement or an exploration permit, an environmental 8 clearance certificate shall be required based on an environmental impact assessment 9 and procedures under the Philippine Environmental Impact Assessment System, 10 including Sections 26 and 27 of the Local Government Code of 1991 which require national agencies to maintain ecological balance, and prior consultation with the local government units, nongovernmental and people's organizations and other concerned sectors of the community: Provided, That a completed ecological profile of the proposed mining area shall also constitute part of the environmental impact assessment. POs and NGOs shall be allowed and encouraged to participate in ensuring that contractors or permittees shall observe all the requirements of environmental protection.

SEC. 106. Environmental Insurance. - Contractors and mineral processing

permit holders shall be obliged to execute an insurance contract as environmental assurance for each and every source of pollution or disaster, relative to the worst-case scenario costs, following accepted actuarial standards, Provided, That in no way shall this provision be construed as to remove or reduce the liability of the contractors or permit holders to compensate any damage caused by their operations; Provided, further, That the insurer shall be an accredited international company in good standing. Prior to the approval of the insurance contract, the DENR shall seek and consider the opinion of an independent expert as to the financial credibility of the insurer. This may also include climate risk insurance, which will protect against the loss of assets, livelihoods and even lives in the post-disaster period. It will also provide reliable and dignified post-disaster relief and incentives for preventing catastrophes.

1 Risk insurance will also mitigate weather-affected public and private investments and 2 economic development.

SEC. 107. Calamity, Climate and Human Rights Protection Fund. -

Persons issued a mineral agreement shall deposit 1/12 of their gross income semi- 5 annually in an interest-bearing account a common fund maintained by the national 6 government which shall be used for responding to, or mitigating the effects of 7 calamities, natural disasters and human rights violations including militarization, displacement, and forcible evacuation in any part of the country in relation to mining activities: Provided, That in no way shall this provision be construed to remove or 10 reduce the liability of the contractors or permit holders to compensate any damage 11 caused by their operations. This Fund shall include responses to other climate impacts to strengthen climate protection. These impacts, especially when vulnerable groups are affected, require immediate attention and should be prioritized by the fund.

SEC. 108. Performance Bond. - The contractor shall put up a bond in an

amount equivalent to fifty percent (50%) of the projected cost of rehabilitation as validated by independent studies. This amount shall be deposited in an interest-bearing account. The bond shall be forfeited in the event that the contractor shall fail or default in the rehabilitation or remediation of the mining area as included in the work plan of the contractor or abandons the mine at any time of its operations.

SEC. 109. Final Mine Rehabilitation and Decommissioning Fund. -

Contractors and permittees shall technically and biologically rehabilitate the excavated, mined-out, tailings-covered and disturbed areas to the condition of environmental safety, as provided in the implementing rules and regulations of this Act. A mine rehabilitation fund shall be created, based on the contractor's approved work program, and shall be deposited as a trust fund in a government depository bank and used for physical and social rehabilitation of areas and communities affected by mining activities and for research on the social, technical and preventive aspects of rehabilitation. Failure to fulfill the above obligation shall mean immediate suspension or closure of the mining activities of the contractor or permittee concerned.

A Final Mine Rehabilitation and Decommissioning Fund (FMRDF) shall be 2 established by each operating Contractor or Permit Holder to ensure that the full cost 3 of the approved Final Mine Rehabilitation and Decommissioning Plan (FMRDP) is 4 accrued before the end of the operating life of the mine- The FMRDF shall be deposited 5 as trust fund in Government depository bank and shall be used solely for the 6 implementation of the approved FMRDP. Annual cash provisions shall be made by contractors or permit holders to a FMRDF 3 based on the formula: Annual provision Cost of Implementing the Approved FMRIDP × Percentage 10 Required per Table 1 Based on the expected mine life, the initial annual cash provision shall be made to the MRF Committee within sixty (60) days from the date of the FMRIDP's approval and every anniversary date thereafter; Provided, That, on application by the contractor or permit holder, the MIR Committee may allow a later date for the payment of the first annual provision. Failure to fulfill the above obligation shall mean immediate suspension or closure of the mining activities of the contractor or permittee concerned. Mining firms are also mandated to immediately restore and replant areas that they have already finished excavating as they move on to other development sites: Provided, however, That if mining firms cannot do reforestation in their immediate area they could do the reforestation in other areas provided they comply with 100:1 hectare ratio. Any mining firm found to have violated or have not complied with the foregoing mandatory provisions shall be held liable with the penalty of revocation of their mining permits and payment of a fine of not less than One Million Pesos (P 1,000,000). The owners, officers and management employee of said mining firms shall also be held liable and be subject to imprisonment of not less than one year not more than three (3) years. Mining companies should not only restore affected areas to their previous condition, but rather should also improve these areas' climate resiliency in light of projections of worsening climate impacts. Further, mining companies shall include in their rehabilitation plan facilitating the transition to green economy models (GEMS). This will ensure that community members, including those whose livelihoods may have been affected by the mining operations and previous employees of the mining

1 company, will have sustainable jobs even after closure of mining operations. 2 Moreover, it will create green jobs that will contribute to the further rehabilitation 3 and protection of the mine-degraded areas.

SEC. 110. Progressive rehabilitation. - Contractors shall also conduct

progressive rehabilitation activities.

SEC. 111. Adoption of the precautionary principle. - When an activity

related to mining raises threats of harm to public health or the environment, precautionary measures shall be taken proactively even if some cause and effect relationship have yet to be scientifically established of which the mining proponent and the MGB shall also be obliged to disclose publicly.

SEC. 112. Adoption of "polluter pays" principle. - Polluters shall pay for

the damage they cause to the environment. The amount of damages shall be determined by accredited independent consultants, to be chosen from a list and agreed upon by both the mining proponent and by the Council.

SEC. 113. Tailings impoundment. - Tailings impoundments shall be built

away from critical watershed drainage areas. Furthermore, it shall be ensured impoundments will not endanger critical watershed areas and low-lying valleys in the event of accidents under abnormal conditions. Tailing impoundments and dams shall meet the international standards for large dams.

SEC. 114. Dumping of waste. - Dumping of waste or tailings in any body of

water shall be prohibited. Provisions of Republic Act No. 9275, or the "Clean Water Act of 2004" and Republic Act No. 8749 or the "Philippine Clean Air Act of 1999" shall be strictly implemented.

SEC. 115. Use of toxic chemicals and methods. - At all times, mining

contractors shall use chemicals or reagents which would result to the least environmental and social destruction. The use of mercury and cyanide for the extraction of gold, silver and other minerals shall be prohibited. The use of blow torching to separate gold from amalgam shall likewise be prohibited.

SEC. 116. Preservation of topsoil. - The removed topsoil, or the more

productive horizons of the soil shall be preserved for other uses.

SEC. 117. Priority use for water. - The National Water Resources Board

(NWRB) shall investigate any existing use of water resources in the area whether or

1 not covered by any existing water permit or registration. Upon determination of any 2 existing use, the applicant shall procure the consent of all water users and/or the FPIC 3 of ICCs/IPs with or without water permits within the same groundwater network or 4 any downstream users of water resources. In all instances, priority shall be given to 5 use of water for domestic, municipal, and agricultural purposes. If potential negative 6 impact on other water users is identified, the water permit shall not be granted. For 7 water resources within the ancestral domain of indigenous peoples, no water permit 8 shall be granted by the NWRB without the FPIC of the indigenous peoples.

SEC. 118. Recycling of water resources. - Water used in mining operations

10 shall be recycled. Mining contractors shall be required to provide for the methods and 11 equipment for the recycling or reuse of water. Released contaminated water shall be treated accordingly to meet national standards. Released water must at least be 13 equivalent in quality to the baseline water quality.

SEC. 119. Water user's fee. - A water user's fee that reflects the value of

water to the country and community shall be imposed by the Council for water used in mining operations. Contractors shall pay the fee to the NWRB which shall use the same for monitoring and improvement of the affected waterways and systems and the mitigation of negative impacts thereon to ensure that communities shall have access to clean water.

SEC. 120. Prohibition from using acid-generating waste rock for

infrastructure. - The use of acid-generating waste rock to build roads, dams or 23 other infrastructures is prohibited. The use of such materials shall only be used after treatment to neutralize the effect of acid mine drainage.

SEC. 121. Establishment of a prediction and monitoring system. - The

MGB shall establish a prediction and monitoring system to identify potential acid- 27 producing materials and monitor their production of acid waste.

SEC. 122. Avoidance of waterways. - Open pits, waste rock piles and

tailings impoundments shall not be built near or on waterways to prevent contact and subsequent acid production and groundwater contamination.

SEC. 123. Remining. - Remining shall be prioritized over the opening of new

32 mines to maximize and recover the remaining minerals from the rejects or wastes of

previous mines and mining operations, Provided, That remining operations shall follow 2 the processes, standards, parameters and guidelines set for mining operations in this 3 Act.

SEC. 124. Suits after the termination of contracts or projects. -

5 Recognizing that the effects of mining may be seen or felt, actions relating to the health of affected communities or peoples, environmental degradation and other similar effects may be maintained against the project proponent and/or persons even after the mineral agreement or mining project has terminated. CHAPTER XII RESOLUTION OF CONFLICTS

SEC. 125. Panel of Arbitrators. - There shall be a panel of arbitrators in the

regional offices of the DENR composed of three (3) members, two (2) of whom must be members of the Philippine Bar in good standing, and one a licensed mining engineer or a professional in a related field, and duly designated by the DENR Secretary as recommended by the MGB Director. Those designated as members of the panel shall serve as such in addition to their work in the DENR without receiving any additional compensation. As much as practicable, said members shall come from the different bureaus of the DENR in the region. The presiding officer thereof shall be selected by the drawing of lots. His tenure as presiding officer shall be on a yearly basis. The members of the panel shall perform their duties and obligations in hearing and deciding cases until their designation is withdrawn or revoked by the DENR Secretary. Within thirty (30) working days, after the submission of the case by the parties for decision, the panel shall have exclusive and original jurisdiction to hear and decide on the following: A. Questions involving compliance with the established technical guidelines and standards herein established, or those to be established by the implementing rules and regulations of this Act; B. Questions involving the compliance with technical procedures herein established, or those to be established by the implementing rules and regulations; and, C. Other similar instances wherein the technological and technical expertise of the DENR shall be needed.

Disputes involving real rights, contractual obligations and other causes of action 2 that are not in any way connected with the abovementioned scope of jurisdiction shall be under the jurisdiction of the regular courts or as otherwise provided by other special laws: Provided, That disputes pending before the MGB and the DENR at the date of 5 the effectivity of this Act shall undergo an immediate review within sixty (60) working 6 days upon the passage of this Act to determine the cause of action. Those which are 7 outside the technical expertise of the DENR or MGB shall be refiled with the 8 appropriate court, without costs to the complainant or petitioner. All Decisions or 9 orders to stop mining operations or to clean or rehabilitate mining operations and 10 surrounding communities shall be immediately executory.

SEC. 126. Appeal. - The decision or order of the panel of arbitrators may be

appealed by the party not satisfied thereto to the Mines Adjudication Board within fifteen (15) days from receipt thereof, which must decide the case within thirty (30) days from submission thereof for decision.

SEC. 127. Mines Adjudication Board (MAB). - The Mines Adjudication

Board shall be composed of three (3) members. The DEN Secretary shall be the Chairperson while the MGB Director and the Undersecretary for Operations of the DENR shall serve as the members thereof. The Board shall have the following powers and functions: A. promulgate rules and regulations governing the hearing and disposition of cases before it, as well as those pertaining to its internal functions, and such rules and regulations as may be necessary to carry out its functions; B. administer oaths, summon parties to a controversy, issue subpoenas requiring the attendance and testimony of witnesses or the production of such books, papers, contracts, records, statement of accounts, agreements, and other documents as may be material to a just determination of the matter under investigation, and to testify in any investigation or hearing conducted in pursuance of this Act; C. conduct hearings on all matters within its jurisdiction, proceed to hear and determine the disputes in the absence of any party thereto who has been summoned or served with notice to appear, conduct its proceedings or any part thereof in public or in private, adjourn its hearings at any time and

place, refer technical matters or accounts to an expert and to accept his report as evidence after hearing of the parties upon due notice, direct parties to be joined in or excluded from the proceedings, correct, amend, or waive any error, defect or irregularity, whether in substance or in form, give all such directions as it may deem necessary or expedient in the determination of the dispute before it, and dismiss the mining dispute as part thereof, where it is trivial or where further proceedings by the Board are not necessary or desirable: 1. To hold any person in contempt, directly or indirectly, and impose appropriate penalties therefor; and 2. To enjoin any or all acts involving or arising from any case pending before it which, if not restrained forthwith, may cause grave or irreparable damage to any of the parties to the case or seriously affect social and economic stability. In any proceeding before the Board, the rules of evidence prevailing in courts of law or equity shall not be controlling and it is the spirit and intention of this Act that shall govern. The Board shall use every and all reasonable means to ascertain the facts in each case speedily and objectively and without regard to technicalities of law or procedure, all in the interest of due process and social justice. In any proceeding before the Board, the parties may be represented by legal counsel. The findings of fact of the Board shall be conclusive and binding on the parties and its decision or order shall be final and executory. A petition for review by certiorari and question of law may be filed by the aggrieved party with the Court of Appeals within thirty (30) days from receipt of the order or decision of the Board.

SEC. 128. Exceptions. - In no case, however, shall the following cases be

subject to arbitration: A. Cases wherein a mining application was already dismissed or vetoed as provided under Sec. 41 of this Act; B. Cases which involve criminal liability; CHAPTER XIII ACCESS TO JUSTICE

SEC. 129. Human Rights obligations. - Corporations shall respect, protect

2 and promote the human rights of communities affected by mining, including the right 3 to life, liberty and property, freedom of movement, right of public participation and 4 the right to self-determination of indigenous cultural communities.

SEC. 130. Violations of human rights. - Extrajudicial killing, torture,

6 involuntary disappearance, forcible displacement of populations, setting up of 7 checkpoints and imposition of toll fees which impede the freedom of movement within 8 mineral areas, deprivation of food and water sources, vote-buying and bribery for the ° purpose of securing consent or endorsement for the mining project, and other 10 analogous acts are violations of human rights. Violations of human rights by contractors shall cause the immediate cancellation of mineral agreements. The offending contractor, as well as corporations having the same directors and/or officers as of the offending contractor shall be perpetually disqualified from being granted a mineral agreement. All equipment and assets of the corporation or person shall be confiscated in favor of the State.

SEC. 131. Use of paramilitary and military forces. - All mining companies

are strictly prohibited from using or funding paramilitary groups. Using private, paramilitary and military forces to threaten and harass individuals and communities shall result in the automatic cancellation of the mineral agreement and the filing of appropriate civil, criminal and/or administrative charges.

SEC. 132. Strategic Legal Action Against Public Participation (SLAPP).

- SLAPP is any legal action, whether civil, criminal or administrative, filed to harass, vex, exert legal action or stifle legal recourses of citizens complaining against violations of this Act or enforcing the provisions of the Act, or exercising their freedom of assembly or right of public participation. On motion that alleges that the action is a SLAPP, the investigating prosecutor or court shall immediately determine within a period of thirty (30) days from filing thereof whether a legal action is a SLAPP and accordingly dismiss the same.

SEC. 133. Indigents suit. - Indigents shall be exempt from payment of any

administrative or court fees, including docket fees for the filing of a case. Lawyers

shall be provided by the Public Attorney's Office to pauper litigants in case they could 2 not afford legal services.

SEC. 134. Application of the customary laws of ICCS/IPs. - The

contractor shall respect the customary laws of the ICCs/IPs and ensure that such laws 5 shall be adhered to. Provided, That, in applying this provision in relation to other 6 national laws, as well as in resolving disputes, the integrity of the ancestral domains, 7 culture, values, practices, institutions, customary laws and traditions of the ICCs/IPs 8 shall be given primacy. Interpretation of this provision shall be resolved in favor of 9 ICCS/IPs.

SEC. 135. Strict liability. - Mining corporations are required to observe

11 extra-ordinary diligence in all its actions in relation to mining operations and are strictly liable for all damages that the mining operations might cause. In case of any actual damage, the burden of proof shall lie with the corporations.

SEC. 136. Surmounting the corporate veil. - When the separate

personality of the corporation from its shareholders is being invoked as defense in order to perpetuate a crime, fraud, evade liability, and conduct other machinations, the separate personality of the corporation shall be set aside. Civil, criminal and administrative actions may thus be filed directly against the members of the Board of Directors, officers and the individual stockholders. The corporation shall publish in its website and in the Securities and Exchange Commission the names and addresses of its officers in the Philippines anyone of whom is authorized to receive summons and other court processes on its behalf.

SEC. 137. Citizen Suits. - For the purpose of enforcing the provisions of this

Act and its implementing rules and regulations, any citizen may file appropriate civil, criminal and administrative suits against any of the following: A. Any person who violates or fails to comply with the provisions of this Act or its implementing rules and regulations; B. Any public officer with respect to orders, rules and regulations inconsistent with this Act; C. Any public officer who willfully or grossly neglects the performance of an act specifically enjoined as a duty by this Act or its rules and regulations; or abuses

the authority in the performance of a duties under this Act or its implementing rules and regulations. The court shall exempt such action from the payment of filing fees, except fees for actions not capable of pecuniary estimation, and shall likewise, upon prima facie 5 showing of non-enforcement or violation complained of, exempt the plaintiff from filing an injunction bond for the issuance of a preliminary injunction. CHAPTER XIV PENAL PROVISIONS

SEC. 138. Grounds for the cancellation of mineral agreements and

10 permits. - The following shall be ground for cancellation of mineral agreements and permits. A. Late or non-compliance with the requirements and prohibitions set forth in this Act, or in its implementing rules and regulations; B. Violation of the Terms and Conditions of Permits or Agreements. Any act or omission contrary to what is stipulated in the exploration permit, mining agreements and other contracts shall cause the immediate revocation and termination of the said permit or agreement. Likewise, any person who knowingly presents any false application, declaration, or evidence to the Government or publishes or causes the publication of any prospectus or other information containing any false statement relating to mines, mining operations or mineral agreements and permits shall, upon conviction, not only cause the immediate revocation and termination of the said permit or agreement, but shall also be penalized by a fine of not exceeding One Hundred Thousand Pesos (P100,000.00). C. Human rights violations perpetrated by the contractor or any of its agents; D. Failure to pay the taxes and fees provided forth in this Act; E. Bribery, use of force, intimidation, threat, coercion of public officials and communities; F. Any act that shall create or contribute to conflicts between community members; and G. Other analogous acts, Provided, That violations of Chapter XI of this Act shall cause the immediate cancellation of mining permits, including but not

limited to provisions of this Act, and the contractor shall be required to pay for the rehabilitation, restoration or clean-up of the impacts of such violations. Corporations, corporate directors or officers found guilty of the above 5 enumeration shall be perpetually banned for participating directly or indirectly in any and all mining operations in the Philippines.

SEC. 139. Illegal exploration. - Any person undertaking exploration work,

upon conviction, shall be penalized by a fine of not exceeding Five Million pesos 9 (P5,000,000.00).

SEC. 140. Theft of minerals. - Any person, except traditional miners and

11 small-scale panners, extracting minerals and disposing the same without a mining agreement, lease, permit, license; or steals minerals or ores or the products thereof from mines, mills or processing plants shall, upon conviction, be imprisoned from six 14 (6) months to six (6) years or pay a fine from One Hundred thousand pesos (PI00, 000.00) to One Million pesos (Pi, 000,000.00) or both, at the discretion of the appropriate court. In addition, the person shall be liable to pay damages and compensation for the minerals removed, extracted, and disposed of. In the case of associations, partnerships, or corporations, the president and each of the directors 19 thereof shall be responsible for the acts committed by such association, corporation, or partnership.

SEC. 141. Vitiation of FPIC. - Any person found to have vitiated the consent

of the ICCs/IPs through bribery, threat, force, and/or intimidation, or any other similar means, shall suffer the penalty of six (6) years and one (1) day to ten (10) years in prison, and a fine of at least two million pesos (P2,000,000.00). If the perpetrator is a government official, the penalty shall be eight (8) years and one (1) day to twelve (12) years imprisonment, and a fine of at least four million pesos ($4,000,000.00). He/she shall be perpetually prohibited from assuming public office, and shall be disqualified from receiving other benefits by virtue of his/her position in government.

SEC. 142. Penalty for human rights violations. - Contractors or other

persons who have committed human rights violations in connection with the mining operations shall be penalized with ten (10) to fourteen (14) years imprisonment and 32 a fine of at least five million pesos (P5,000,000.00) and shall indemnify the victims.

SEC. 143. Abandonment. - Contractors or permittees who shall abandon

mines shall be perpetually banned or disqualified from directly or indirectly conducting mining operations. The ban or disqualification shall include the officers and directors of corporations that have abandoned mines.

SEC. 144. Confiscation of equipment and property. - The equipment and

6 property of contractors and permit holders violating this Act shall be forfeited in favor 7 of the State.

SEC. 145. Non-application of the corporate veil. -Any person violating

° the provisions of Commonwealth Act No. 108, as amended, or is found to have used 10 the corporate structure to defeat the provisions of this Act shall suffer the penalty of five million pesos (P5,000,000.00) and a perpetual ban in the mining industry.

SEC. 146. Unauthorized dealing, selling, or buying of gold. - Any

person, partnership or corporation who shall sell, buy or in any manner deal gold from any miner or person without being duly authorized by the Bangko Sentral ng Pilipinas shall be punished as unauthorized dealing and shall be penalized in accordance with

Section 138 of this Act.

SEC. 147. Amendment to Section 27 of Republic Act 7076 or the

Small-scale Mining Act. - Violations of the provisions of Republic Act 7076 or of the rules and regulations issued pursuant hereto shall be penalized with imprisonment of six years and one day to twelve years. The State shall confiscate and seize equipment, tools and instruments; effect immediate suspension or closure of the mining activities of the permittee concerned, and revoke the permit.

SEC. 148. Confiscation of equipment and property. - The equipment and

property of small- scale contractors and permit holders who violate this Act shall be forfeited in favor of the State.

SEC. 149. Administrative Penalties for local government officials. -

Local government officials who are administratively found to violate provisions of this Act, vis-a-vis the pertinent sections of Republic Act No. 7160 or the "Local Government Code of 1991" shall be removed from office and perpetually disqualified from holding any elective or appointive position in government, its divisions, subsidiaries and any 32 government-owned and -controlled corporations.

SEC. 150. Reinstatement of revoked permits. - After notice and hearing,

revoked permits that have undergone due process may be reinstated: Provided, That it may only be reinstated once. CHAPTER XV TRANSITORY PROVISIONS

SEC. 151. Moratorium. - There shall be a moratorium on all new mining

activities until all the systems are in place for the proper implementation of this Act.

SEC. 152. Existing Mining Permits, Contracts and Agreements. - The

DENR shall conduct a review and audit of all mining permits, licenses and agreements 10 for the purpose of determining: (i) whether their continuance shall be advantageous for the Government in accordance with the Mining Plan, and (ii) the level of compliance of the grantee or concessionaire with its statutory and contractual undertakings and obligations in accordance to this Act and other pertinent laws concerning environmental protection and conservation. Mine workers and their families that may be displaced during the transition period shall receive livelihood support and job placements to be facilitated by the appropriate agencies of the State.

SEC. 153. Review of mineral land classification. - A review of the current

mineral land classification shall be conducted to determine the best livelihood and economic options for each area. No mining operations can start within mineral reservations unless finally determined to be in compliance with this Act.

SEC. 154. The members of the panels of arbitrators and the provincial or city

mining regulatory boards established under Republic Act No. 7942 shall hold-over their positions until replaced in accordance with provisions of this Act. CHAPTER XVI FINAL PROVISIONS

SEC. 154. Appropriations. -The amount of One Hundred Billion Pesos

(P100,000,000,000) is hereby appropriated for the proper functioning of the Bureau, the Council, and other bodies established under this Act of which half of the said amount shall be allotted for the baseline mineral exploration activities of the MGB.

SEC. 155. Implementing Rules and Regulations. - Within ninety (90)

days from the effectivity of this Act, the Secretary of the Department of Environment and Natural Resources shall, in consultation with representatives from the NCIP, LGUS,

1 NGOS, POs, indigenous peoples organizations, sectoral organizations, and other 2 concerned government agencies, issue rules and regulations for the effective 3 implementation of this Act.

SEC. 156. Separability Clause. - If any section or provision of this Act is

s held unconstitutional or invalid, the remaining sections or provisions with the provisions not affected thereby shall continue to be in full force and effect.

SEC. 157. Repealing Clause. - All laws, decrees, executive orders, rules and

regulations, issuance or parts thereof inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 158. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in a newspaper of general circulation. Approved,