DECENTRALIZATION AND ARTISANAL AND SMALL-SCALE GOLD MINING IN

THE PHILIPPINES

ASGM Strategic Planning Project Conclusion Workshop22-24 March 2011

ALLSON ANGKOR PARADISE HOTEL Seim Reap Cambodia

Philippine Constitution

Local Government Code

PD 1899, RA 7076, RA 7942

Decentralization: Legal BasisPhilippine Constitution

1. Article II, Section 25. The State shall ensure the autonomy of local governments.

2. Article X, Sections 1 to 21.• Territorial and political subdivisions are the provinces, cities,

municipalities, barangays and autonomous regions which shall enjoy local autonomy.

• Empowers each LGU to create its own sources of revenues and to levy taxes, fees and charges subject to certain guidelines and limitations.

• Encourages LGUs to consolidate or coordinate their efforts, services, and resources for purposes commonly beneficial to them.

Legal Basis: Local Government Code of 1991 (Republic Act 7160)

Section 2 – Declaration of Policies(a) The territorial and political subdivisions of the State shall

enjoy genuine and meaningful local autonomy…the process of decentralization shall proceed from the national government to the local government units.(b) Ensure the accountability of local government units through the institution of effective mechanisms of recall, initiative and referendum.

(c) Require all national agencies and offices to conduct periodic consultations with appropriate local government units, nongovernmental and people's organizations, and other concerned sectors of the community before any project or program is implemented in their respective jurisdictions.

Innovations in the law on local governments introduced by the Local Government Code of 1991

Local Government Units (LGUs), as political subdivisions of the Republic of the Philippines have delegated powers pursuant to pertinent provisions of RA 7160. Broadly, these delegated powers are categorized as those relating to TAXATION, EMINENT DOMAIN & POLICE.

• Devolution of basic services (e.g. health, environment, etc.) to LGUs;

• Increase of financial resources available to LGUs;

• Devolution of responsibility for enforcement of certain regulatory powers (e.g. reclassification of agricultural lands, environmental laws, inspection of food products and quarantine, etc.);

• Legal infrastructure for participation of NGOs and POs in the process of governance by allocating seats to them in key local bodies.

• It laid a foundation for the development of more entrepreneurship by local governments.

• Failure of local leaders to accurately predict preferences or priorities of their constituents.

• Financial difficulties of LGUs to carry out devolved functions especially those that pertain to health and environment.

• Need to strengthen LGU capacity to address health and environmental concerns including those that pertain to small-scale gold mining.

• Jurisdictional issues between local and national government agencies

Perceived Drawbacks of Decentralization and Devolution

ASGM and Philippine Mining Laws

PD 1899 RA 7076 RA 7942

Governs small-scale mining operations for areas not declared as Peoples' Small-Scale Mining Area (PSSMA) under RA No. 7076.

Governs small-scale mining operations in PSSMAs declared under RA No.7076; requires miners to secure Small-Scale Mining Contracts (SSMCs) pursuant to the pertinent provisions thereof.

Grants the Board the power to declare people's small scale mining areas for public lands not subject to any existing right and public lands covered by existing mining rights which are not active mining areas, among others. 

Requires SSMP/ SSMC holder to strictly comply with its environmental,safety and health, and social provisions.

Grants the President the power to establish Mineral Reservation Areas under conditions set by law. An aggregate of 25% of MRAs shall be covered by small-scale mining agreement.

Devolution of ASGM to Local Government Units

1. Local Government Code of 1991 - Section 17(b)(3)(iii)• Basic Services and facilities for a Province: Subject

to supervision, control and review of the DENR…small-scale mining law, and other laws on the protection of the environment…for local purposes;

2. People’s Small-Scale Mining Act of 1991 (Republic Act 7076)• Mandates the creation of Provincial/City Mining

Regulatory Boards (PMRB)with the Governor or Mayor or their representative as member. The Board serves as the implementing agency of DENR on matters pertaining to artisanal and small-scale mining.

• Entitles LGUs a share of the revenue

• Provincial/City Mining Regulatory Board as the implementing agency of the DENR.

Composition: DENR representative as Chairman; Governor/City Mayor or representative, one (1) small scale mining representative, one (1) big-scale mining representative, and the representative from a non-government organization who shall come from an environmental group, as members.

Functions:

a. Declare and segregate existing gold-rush areas for small-scale mining;

b. Reserve future gold and other mining areas for small-scale mining;

c. Award contracts to small-scale miners;

d. Formulate and implement rules and regulations related to small-scale mining;

e. Settle disputes, conflicts or litigations over conflicting claims within a people's small-scale mining area, an area that is declared a small-mining; and

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

ASGM Institutional Framework (under RA 7076)

Jurisdictional Issues on ASGM

1. Diwalwal, Monkayo, Compostella Valley (Mindanao)• Pursuant to RA 7942, the President issued

Proclamation 297 declaring 8,100 hectares located in Monkayo, Compostella Valley as mineral reservation area. DENR AO No. 2002-18 was subsequently issued declaring the State’s direct takeover of mining operations of the Diwalwal Gold Rush Area and awarded mining contracts to qualified mining entities including small-scale miners.The role of local government is removed when it comes to ASGM operations in the Diwalwal Gold Rush area. Giving rise to conflict with national and local government.

Compostella Valley• Recognizing the economic

significance of ASGM activities in the province and the need to regulate ASGM operations in the area, the Governor formally declared PSSMAs.

Jurisdictional Issues on ASGM

LGU approach to ASGM obstacles

Benguet, Northern Luzon• Most mineral lands have been covered by

various tenures and mining claims, making it impossible for the PMRB to declare PSSSMAs and issue SSMCs to miners.

• To help the miners legalize their operations, the Provincial Government facilitated the issuance of Special Temporary Mining Permits as it pushes for the enactment of provincial mining code which will harmonize conflicting mining laws in the province and streamline procedures for formalization.

Thank you for listening!