DECLARATION OF DECLARATION OF MINAHANG BAYAN MINAHANG BAYAN AND AWARDING OF AND AWARDING OF SSM CONTRACTSSSM CONTRACTS

RA 7076

AN ACT CREATING A PEOPLE’S AN ACT CREATING A PEOPLE’S SMALL SCALE MINING PROGRAM SMALL SCALE MINING PROGRAM AND FOR OTHER PURPOSES -AND FOR OTHER PURPOSES -

““PEOPLE’S SMALL-SCALE MINING PEOPLE’S SMALL-SCALE MINING ACT OF 1991”ACT OF 1991”

MAY 30, 1991MAY 30, 1991

DECLARATION OF POLICYDECLARATION OF POLICY

It is hereby declared the policy of the It is hereby declared the policy of the State to promote, develop, protect State to promote, develop, protect and rationalize viable small-scale and rationalize viable small-scale mining activities in order to generate mining activities in order to generate more employment opportunities and more employment opportunities and provide an equitable sharing of the provide an equitable sharing of the nation’s wealth and natural nation’s wealth and natural resources, giving due regard to resources, giving due regard to existing rights…..existing rights…..

Section 2 of Republic Act No. 7076Section 2 of Republic Act No. 7076

DENR AO NO. 34

IMPLEMENTING RULES AND IMPLEMENTING RULES AND REGULATIONS OF THE REGULATIONS OF THE “PEOPLE’S SMALL-SCALE “PEOPLE’S SMALL-SCALE MINING ACT OF 1991”MINING ACT OF 1991”

JULY 14, 1992JULY 14, 1992

Small Scale MiningSmall Scale Mining

– – Small scale mining as defined by Republic Small scale mining as defined by Republic Act No. 7076, refers to mining activities Act No. 7076, refers to mining activities which rely heavily on manual labor using which rely heavily on manual labor using simple implements and methods and do simple implements and methods and do not use explosives or heavy equipment.not use explosives or heavy equipment.

Sec 4.IRR.RA 7076Sec 4.IRR.RA 7076

People’s Small Scale People’s Small Scale MiningMining

Program (Features)Program (Features)A.A. The identification, segregation and The identification, segregation and

reservation of certain mineral lands as reservation of certain mineral lands as PSSMA;PSSMA;

B.B. The recognition of prior existing rights The recognition of prior existing rights and productivity;and productivity;

C.C. The encouragement of the formation of The encouragement of the formation of cooperatives;cooperatives;

D.D. The extension of technical and financial The extension of technical and financial assistance, and other social services;assistance, and other social services;

People’s Small Scale People’s Small Scale MiningMining

Program (Features)Program (Features)E.E. The extension of assistance in The extension of assistance in

processing and marketing;processing and marketing;F.F. The generation of ancillary The generation of ancillary

livelihood activities;livelihood activities;G.G. The regulation of the small-scale The regulation of the small-scale

mining industry with the view to mining industry with the view to encourage growth and productivity; encourage growth and productivity; andand

H.H. The efficient collection of The efficient collection of government revenue.government revenue.

Declaration of PSSMASec 6.IRR.RA 7076

The Board (PMRB) created under RA 7076 shall have the authority to declare and set aside People’s Small-Scale Mining Areas in sites onshore suitable for small-scale mining operations subject to review by the DENR Secretary thru the Director

Composition of the PMRBComposition of the PMRBSec 23.IRR.RA 7076Sec 23.IRR.RA 7076

Representative from DENR RO – Representative from DENR RO – ChairmanChairman Governor/ his “DA” Representative – VChairmanGovernor/ his “DA” Representative – VChairman Small-scale Mining Representative – MemberSmall-scale Mining Representative – Member Large-scale Mining Representative - Member Large-scale Mining Representative - Member Representative from a NGO – MemberRepresentative from a NGO – Member

Staff Support to the Board to be provided by the Staff Support to the Board to be provided by the DepartmentDepartment

Power and Functions of PMRBPower and Functions of PMRB Sec 22.IRR.RA7076Sec 22.IRR.RA7076

Declares and segregates existing Declares and segregates existing gold-rush area for small-scale gold-rush area for small-scale mining; mining;

Reserves for the future, mineralized Reserves for the future, mineralized areas/mineral lands for people’s areas/mineral lands for people’s small-scale mining;small-scale mining;

Award contracts to small-scale Award contracts to small-scale miner’s cooperativeminer’s cooperative

Power and Functions of PMRBPower and Functions of PMRB Sec 22.IRR.RA7076Sec 22.IRR.RA7076 Formulates and implements rules and Formulates and implements rules and

regulations related to RA 7076;regulations related to RA 7076;

Settles disputes, conflicts or litigations over Settles disputes, conflicts or litigations over conflicting claims within ninety (90) days conflicting claims within ninety (90) days upon filing of protest or complaints; Provided. upon filing of protest or complaints; Provided. That any aggrieved party may appeal within That any aggrieved party may appeal within five (5) days from the Board’s decision to the five (5) days from the Board’s decision to the Secretary for final resolution, otherwise the Secretary for final resolution, otherwise the same is considered final and executory; and same is considered final and executory; and

Performs such other functions as may be Performs such other functions as may be necessary to achieve the goals and necessary to achieve the goals and objectives of RA 7076.objectives of RA 7076.

Onshore Areas That May Be Declared Onshore Areas That May Be Declared by the Board as PSSMAby the Board as PSSMA

Areas already occupied and actively mined by Small Areas already occupied and actively mined by Small Scale Miners before August 1, 1987Scale Miners before August 1, 1987. Provided, that . Provided, that

- such areas are not considered as active mining areas;- such areas are not considered as active mining areas;

- the minerals found therein are technically and - the minerals found therein are technically and commercially suitable for small-scale mining activities;commercially suitable for small-scale mining activities;

- the areas are not covered by existing forest rights or - the areas are not covered by existing forest rights or reservations and have not been declared as tourist or reservations and have not been declared as tourist or marine reserves, parks and wildlife reservations, unless marine reserves, parks and wildlife reservations, unless their status as such are withdrawn by competent authority.their status as such are withdrawn by competent authority.

Public landsPublic lands not subject to any existing right; not subject to any existing right;

Onshore Areas That May Be Declared Onshore Areas That May Be Declared by the Board as PSSMAby the Board as PSSMA

Public lands Public lands covered by existing mining covered by existing mining rights which are not active mining areas; rights which are not active mining areas;

Private lands, Private lands, subject to certain rights subject to certain rights and conditions, except those of with and conditions, except those of with substantial improvements or in bonafide substantial improvements or in bonafide and regular use as yard, stockyard, and regular use as yard, stockyard, garden, plant nursery, plantation, garden, plant nursery, plantation, cemetery or burial site, or land situated cemetery or burial site, or land situated within 100 meters from such cemetery or within 100 meters from such cemetery or burial site, water reservoir or a separate burial site, water reservoir or a separate parcel of land with an area of 10,000 parcel of land with an area of 10,000 square meters or less;square meters or less;

Onshore Areas That May Be Declared Onshore Areas That May Be Declared by the Board as PSSMAby the Board as PSSMA

Ancestral lands Ancestral lands with prior consent from the cultural with prior consent from the cultural communities concerned. Provided, that - communities concerned. Provided, that - - if ancestral lands are declared as PSSMA, the members of - if ancestral lands are declared as PSSMA, the members of the cultural communities therein shall be given priority in the cultural communities therein shall be given priority in the awarding of small-scale mining contracts. the awarding of small-scale mining contracts. - in cases where Indigenous Cultural Communities (ICCs) - in cases where Indigenous Cultural Communities (ICCs) concerned refuse to allow their areas to be declared a concerned refuse to allow their areas to be declared a People’s Small Scale Mining Area, their customary rights to People’s Small Scale Mining Area, their customary rights to their ancestral land shall be recognized and protected.their ancestral land shall be recognized and protected.

Areas occupied by a community of traditional small Areas occupied by a community of traditional small scale miners, scale miners, subject to the approval of the said subject to the approval of the said community. Where they refuse to allow their areas to be community. Where they refuse to allow their areas to be declared a People’s Small Scale Mining Area, their declared a People’s Small Scale Mining Area, their customary rights under their mining traditions shall be customary rights under their mining traditions shall be recognized and protected. recognized and protected.

PROCEDURES IN THE PROCEDURES IN THE DECLARATION OF A PSSMA - 1DECLARATION OF A PSSMA - 1

PETITION/REQUEST from any PETITION/REQUEST from any interested party for declaration of an interested party for declaration of an area as PSSMA filed with the Boardarea as PSSMA filed with the Board

PROCEDURES IN THE PROCEDURES IN THE DECLARATION OF A PSSMA - 2DECLARATION OF A PSSMA - 2

EVALUATION OF AREA whether same EVALUATION OF AREA whether same is technically or economically viableis technically or economically viable

PROCEDURES IN THE PROCEDURES IN THE DECLARATION OF A PSSMA - 3DECLARATION OF A PSSMA - 3

IDENTIFICATION OF OTHER AREAS IDENTIFICATION OF OTHER AREAS technically and economically viable for technically and economically viable for small-scale mining upon the initiative of small-scale mining upon the initiative of the DENR or authorized bodythe DENR or authorized body

PROCEDURES IN THE PROCEDURES IN THE DECLARATION OF A PSSMA - 4DECLARATION OF A PSSMA - 4

ISSUANCE OF NOTICES by the Board ISSUANCE OF NOTICES by the Board to claimowners, operators, private to claimowners, operators, private landowners and non-governmental landowners and non-governmental organizations concerned, organizations concerned, government agencies and cultural government agencies and cultural communities for clearance and communities for clearance and consent as the case maybe.consent as the case maybe.

PROCEDURES IN THE PROCEDURES IN THE DECLARATION OF A PSSMA - 5DECLARATION OF A PSSMA - 5

POSTING/PUBLICATION of notices on POSTING/PUBLICATION of notices on provincial or city/municipal halls provincial or city/municipal halls and/or MGB office and other and/or MGB office and other conspicuous places, and/or conspicuous places, and/or publication in a newspaper of local or publication in a newspaper of local or national circulation once a week for national circulation once a week for two (2) consecutive weeks.two (2) consecutive weeks.

PROCEDURES IN THE PROCEDURES IN THE DECLARATION OF A PSSMA - 6DECLARATION OF A PSSMA - 6

SEGREGATION OF PROPOSED AREAS SEGREGATION OF PROPOSED AREAS for small scale mining purposes upon for small scale mining purposes upon completion of the necessary completion of the necessary documents, subject to review of the documents, subject to review of the Secretary within 30 working days Secretary within 30 working days from date of receipt of the proposal from date of receipt of the proposal for such segregation from the Boardfor such segregation from the Board

PROCEDURES IN THE PROCEDURES IN THE DECLARATION OF A PSSMA - 7DECLARATION OF A PSSMA - 7

DECLARATION OF AREAS AS PSSMA DECLARATION OF AREAS AS PSSMA by the Board in the event that the by the Board in the event that the area to be segregated and declared area to be segregated and declared for such purpose is found to be in for such purpose is found to be in order by the Secretary after the 30-order by the Secretary after the 30-day period of review thereofday period of review thereof

Application to Enter Into aApplication to Enter Into aSmall Scale Mining ContractSmall Scale Mining ContractRegistered SSM cooperative files applicationRegistered SSM cooperative files application

together with the following:together with the following:

1.1. Payment Application Fee of P30.00/hectarePayment Application Fee of P30.00/hectare

2.2. Certified True Copy of Articles of Certified True Copy of Articles of IncorporationIncorporation

3.3. Information on the geographical Information on the geographical

coordinates of the applied area, coordinates of the applied area,

20 hectares maximum20 hectares maximum

Application to Enter Into aApplication to Enter Into aSmall Scale Mining ContractSmall Scale Mining ContractBoard determines Area Status within Fifteen Board determines Area Status within Fifteen

(15) days (working) upon receipt of (15) days (working) upon receipt of ApplicationApplication

Written Notice requesting the applicant to Written Notice requesting the applicant to submit a proposed contract shall be sent submit a proposed contract shall be sent by the Board if area is free from conflictby the Board if area is free from conflict

In case of conflict/s, the Board shall resolve In case of conflict/s, the Board shall resolve the same within five (5) working days the same within five (5) working days from the date of discovery thereoffrom the date of discovery thereof

Requirements forRequirements forSmall Scale Mining ContractSmall Scale Mining Contract

(Features of the Proposed Contract)(Features of the Proposed Contract)

1.1. Mode of agreement (i.e. Co-Mode of agreement (i.e. Co-production, Joint Venture or Mineral production, Joint Venture or Mineral Production Sharing Agreement)Production Sharing Agreement)

2.2. Terms and Conditions of the Terms and Conditions of the ContractContract

3.3. Rights of the small-scale mining Rights of the small-scale mining contractorcontractor

Requirements forRequirements forSmall Scale Mining ContractSmall Scale Mining Contract

(Attachment to the Proposed Contact)(Attachment to the Proposed Contact)

1.1. Survey Plan prepared by a Survey Plan prepared by a deputized Geodetic Engineer deputized Geodetic Engineer including field notes cover and duly including field notes cover and duly notarized descriptive Survey Reportnotarized descriptive Survey Report

2.2. Mining plan prepared by a Mining plan prepared by a registered Mining Engineerregistered Mining Engineer

3.3. Environmental Compliance Environmental Compliance Certificate (ECC)Certificate (ECC)

Award of People’s Small Award of People’s Small Scale Mining ContractScale Mining Contract

The Board evaluate, negotiate and award, The Board evaluate, negotiate and award, subject to review by the Secretary within subject to review by the Secretary within fifteen (15) daysfifteen (15) days

- Start mining operations within 1 year- Start mining operations within 1 year

- Priority to residents of the province, - Priority to residents of the province, municipality municipality

Terms and Conditions ofTerms and Conditions ofSmall Scale Mining ContractSmall Scale Mining Contract

(Two-Year Term Renewable for Like Periods)(Two-Year Term Renewable for Like Periods)

1.1. Undertake mining activities only in Undertake mining activities only in accordance with a mining plan duly accordance with a mining plan duly approved by the Board;approved by the Board;

2.2. Abide by the mine safety rules and Abide by the mine safety rules and regulations and other rules and regulations and other rules and regulations which may be promulgated regulations which may be promulgated by the DENR Secretary;by the DENR Secretary;

3.3. Comply with his obligationsComply with his obligationsto the holder of an existing to the holder of an existing mining right/s, if applicablemining right/s, if applicable

Terms and Conditions ofTerms and Conditions ofSmall Scale Mining ContractSmall Scale Mining Contract

(Two-Year Term Renewable for Like Periods)(Two-Year Term Renewable for Like Periods)

4.4. Pay all fees, taxes, royalties or government Pay all fees, taxes, royalties or government production share as are now or may hereafter production share as are now or may hereafter be provided by law; be provided by law;

5.5. Comply with pertinent rules and regulations on Comply with pertinent rules and regulations on environmental protection and conservation, environmental protection and conservation, particularly those on tree-cutting, mineral particularly those on tree-cutting, mineral processing and pollution control; processing and pollution control;

6.6. File under oath at the end of each month a File under oath at the end of each month a detailed production report and annual detailed production report and annual financial report to the Board; andfinancial report to the Board; and

7.7. Assume responsibility for the Assume responsibility for the safety of persons working in thesafety of persons working in themines.mines.

FISCAL AND REGULATORY FISCAL AND REGULATORY PROVISIONSPROVISIONSSec 26.IRR.RA 7076 Sec 26.IRR.RA 7076 Income Tax as provided in the National Income Tax as provided in the National

Revenue CodeRevenue Code Special Import (if applicable)Special Import (if applicable) Tariff Duties (if applicable)Tariff Duties (if applicable) Value Added Tax as provided in EO 273Value Added Tax as provided in EO 273 Real Property Tax (if applicable)Real Property Tax (if applicable) Excise Tax except gold to Excise Tax except gold to

Central Bank w/c are consideredCentral Bank w/c are consideredfor exportfor export

FISCAL AND REGULATORY FISCAL AND REGULATORY PROVISIONSPROVISIONSSec 26.IRR.RA 7076 Sec 26.IRR.RA 7076 Government Share which shall be paid to Government Share which shall be paid to

the Municipality or City Treasurer where the Municipality or City Treasurer where mining claims are located, and shall be mining claims are located, and shall be apportioned in accordance with the Local apportioned in accordance with the Local Government Code of 1991Government Code of 1991

Payment of Fees and Other ChargesPayment of Fees and Other Charges- Application Fee of P30.00/hectare- Application Fee of P30.00/hectare- Occupation Fee of P50.00 per - Occupation Fee of P50.00 per hectare, paid to the Municipalityhectare, paid to the Municipality where contract area is locatedwhere contract area is located

Small Scale MiningSmall Scale Mining

Section 42. Small Scale Mining – Small Section 42. Small Scale Mining – Small scale mining shall continue to be scale mining shall continue to be governed by Republic Act No. 7076 governed by Republic Act No. 7076 and other pertinent laws.and other pertinent laws.

Chapter VII of Republic Act No. 7942Chapter VII of Republic Act No. 7942

Section 14, DAO 2012-07, IRR of EO 79Section 14, DAO 2012-07, IRR of EO 79

MEASURES TO IMPROVE SMALL-MEASURES TO IMPROVE SMALL-SCALE MINING ACTIVITIESSCALE MINING ACTIVITIES

((Sec 14 DAO No. 2012-07, IRR of EO No. 79)Sec 14 DAO No. 2012-07, IRR of EO No. 79)

Compliance with RA No. 7076Compliance with RA No. 7076

Compliance with the Environmental Impact Compliance with the Environmental Impact Statement system requirements under PD Statement system requirements under PD No. 1586No. 1586

Hydraulicking (water jetting), compressor Hydraulicking (water jetting), compressor mining and the use of mercury in SSM mining and the use of mercury in SSM operations shall be strictly prohibitedoperations shall be strictly prohibited

REQUIREMENTS(PRIOR TO ISSUANCE OF SSMC – DAO 2012-7, IRR of EO No.

79)

ECC secured thru an EIS from EMB

Potential Environmental Report (PEIR) which is a simplified EPEP, and Final Mine Rehabilitation Plan/Decommissioning Plan (FMRP/DP) duly approved by the MGB-RO concerned

Community Development and Management Plan (CDMP), a simplified Social Development and Management Program duly approved by the MGB-RO concerned

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at at

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