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8/4/2019 Primer on the Peoples Mining Act of 2011
1/12
A Primer
on the PeoPles
mining Bill(house B ill 4315)
8/4/2019 Primer on the Peoples Mining Act of 2011
2/12
IntroductIonO Marc 6, 1995, te Piippie goermet
eacted Repubic Act (RA) 7942, or te Piippie
Miig Act o 1995, wic iberaized oreigcotro oer te domestic miig idustry.
RA 7942 was istituted aog wit poicies
iberaizig existig coutry cotros i oter
strategic ecoomic sectors.1
RA 7942 was opposed by may, icudig cii
society orgaizatios (CSOs), eirometaists
ad idigeous peopes (IPs). I 2004, te
Supreme Court (SC) decared it ucostitutioa
i te case La Bugal Blaan Tribal Association vs.
Ramos. But, cotroersiay ad suddey, te SC
reersed its ow decisio ater obbyig rom te
executie brac ad busiess groups.
RA 7942 dragged o or sixtee years. Former
Presidet Goria Macapaga-Arroyo armoized
oter aws ad sited state poicy rom actie
toerace to promotio o oreig ad arge-
scae miiga road tat Presidet Beigo
Aquio III pursued. As o Marc 29, 2011, te
goermet approed 785 miig agreemets,icudig six Fiacia ad ecica Assistace
Agreemets (FAA), 339 Miera Productio ad
Sarig Agreemets (MPSAs), 115 Exporatio
Permits (EP), 57 Miera Processig ad
Productio Permits, 212 Idustria Sad ad
Grae Permits, ad 56 ease cotracts. Tese
coer 1,042,531 ectares or 3% o te coutrys
tota ad area.
Impacts of the mInIng
LIberaLIzatIon poLIcy
Te Piippies as aroud 7.1 biio metric
tos (BM) o metaic miera reseres (suc
as god ad icke) ad 51 BM o o-metaic
deposits. Teir tota aue is estimated at
aroud $840 biio to $1 triio: te times te
coutrys gross domestic product ad immesey
arger ta its etire extera debt. I propery
deeoped, tese ast ad ric reseres ca
1
Tese were amog te structura adjustmet programspromoted b deeopmet aid istitutios suc as te WordBak, Iteratioa Moetar Fud, ad te Asia DeeopmetBak sice te 1980s.
Produced b
i cooperatio wit
DEFEnD PARIMOny AllIAnCE
ad
KAlIKASAn PEOPlES nEWORK
FOR hE EnvIROnMEn
A pubicatio o teCEC Researc, Educatio, ad Adocac Uit
Researc ad ext: lISA IO-APAnG
laout: R. JORDAn P. SAnOS
Poto credits: Kaikasa PnE
Pritig: SAn JOSE MAnGGAGAWA PRInInG PRESS
CEnER FOR EnvIROnMEnAl
COnCERnS-PhIlIPPInES
Address: no. 26 Matuugi Street, Baraga Cetra,
Diima, Quezo Cit 1101 PhIlIPPInES
Web: www.cecpis.org
Emai: [email protected]
8/4/2019 Primer on the Peoples Mining Act of 2011
3/12
sustai a strog, se-reiat ad progressie
domestic ecoomy baacig agricuture ad
idustriaizatio ad breakig te existig cyce
o uderdeeopmet.
howeer, tis as ot bee te case wit te
coutrys curret miig poicy. Te Piippiemiig idustry as istoricay bee iberaized,
aid ope to oreig ad priate cotro witout
deeopig dowstream idustries, ad imited
to extractio, export o ores, ad depedece o
oreig capita, expertise ad tecoogy.
RA 7942 as depried peope o access to ad
ad oter atura resources, stuted te domestic
ecoomy, ad destroyed te eiromet. It
triggered some o te Piippies worst ecoogica
disasters, suc as te Marcopper (1996) ad
Rapu-Rapu (2005) mie spis. Its osses oom i
compariso to te idustrys promised ecoomic
gais. Miig areas are sti amog te poorest
commuities atiowide. It is resposibe or
uma rigts ioatios; may were kied, sued,
ad arassed or teir oppositio. It separated IP
commuitieste ast bastios o our precooia
eritagerom teir acestra ads troug
coercio, exigecy, or cousio.
towards a new phILIppIne
mInIng poLIcy
RA 7942 is usustaiabe rom a ecoomic,
ecoogica, cutura, ad uma rigts perspectie.
It must be scrapped to protect our ite miera
resources rom more puder ad depetio.
CSOs, commuities, ad oca goermets wat
a ew miig aw. Te First Peopes Coerece
o Miig o 9 May 2002 resoed to scrap RA7942 ad deeop te idustry troug atioa
idustriaizatio. I October 2002, te Dapita
Iitiatie aso adocated or ew egisatio.
I 2005, te Peopes Miig Poicy (PMP), a
ateratie poicy ramework, was drated ad
armed by Deend Patrimony toug atiowide
cosutatios wit peopes orgaizatios. loca
ocias ae aso set moratoriums o arge-scae
ad/or ope pit miig.
Tese grassroots iitiaties are caeges te
atioa goermet soud ace. house Bi
(hB) 4315 is a amagamatio o tese proposas
wic ae coectiey supported te wise
ad sustaiabe deeopmet o our miera
resources: a ramework wic upods socia
justice, respect or peopes rigts ad weare,
eirometa coseratio, ad te deese o
atioa soereigty ad patrimoy.
frequentLy asked questIons
1. What is the Peoples Mining Bill?
house Bi 4315 (An Act Re-Orienting the
Philippine Mining Industry, Ensuring the Highest
Industry Development Standards, and or
other Purposes) seeks to reoriet te curret
poicy o te owersip, maagemet ad
goerace o metaic ad o-metaic
mieras, quarry resources, ad gemstoes
towards a ratioa maer or atioa
idustriaizatio ad oca deeopmet.
It coers osore ad ofsore, arge-scae
ad sma-scae miig operatios ad teir
coseratio, exporatio, deeopmet,
utiizatio, processig ad trasportatio.
Mineral resourcesare defned in the bill as
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.
2. When did the bill rst appear in legislative
policy and what is its current status?
Te bi was ed i te 15t Cogress o Marc
2, 2011 by Reps. eddy A. Casio, neri Jaier
Comeares, Raae v. Mariao, luzimida C.
Iaga, Raymod v. Paatio, Emereciaa A.De Jesus, ad Atoio l. iio. It is currety
pedig wit te Committee o natura
Resources.
Bayan Muna Rep.
Teodoro A. Casino,
principal author
of HB 4315
8/4/2019 Primer on the Peoples Mining Act of 2011
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3. How is the bill diferent rom RA 7942 in
terms o ramework and principles?
It reerses te iberaizatio o te miig
idustry i RA 7942. It upods te Fiipio
peopes Costitutioa rigt to appropriatey
use, maage, ad ejoy te beets o te
coutrys miera resources, cosiderig teseas atioa patrimoy ad as irrepaceabe
ad o-reewabe weat (Sec. 6). It gies
te State te primary resposibiity oer
te idustrys maagemet, coseratio,
utiizatio, ad deeopmet ad cosiders
miig a sared resposibiity amog atioa
ad oca goermets, corporatios, ad
commuities (Sec.7).
It aims to deeop te Piippie miig
idustry witi te ramework o atioa
idustriaizatio ad agraria reorm, i
a ecoomicay-iabe, ecoogicay-soud
ad democratic maer. Miig idustry
deeopmet sa be based o a natioa
Idustriaizatio Program (nIP) ad Miig
Pa (MP), reorieted away rom market orces
ad extera iestmets ad supportig
a strategicay ad domesticay-paed
ecoomy.
3. How does the bill dene national
industrialization?
Witi te cotext o te miig idustry,
atioa idustriaizatio deotes te
primacy o miera productio, processig
ad distributio or te primary beet o
te domestic ecoomy. Tis icudes creatigaorabe coditios or Fiipio etrepreeurs
to egage i miig troug arious state-
priate agreemets tat sa esure tat
miig sa ep spur more domestic
iestmets, icrease agricutura productio
ad produce bot cosumer ad producer
goods ad mauactures (Sec. 14, mm).
4. How should mining develop under
national industrialization?
Te State soud strategicay ad systematicay
pursue te idustrys deeopmet accordig
to a natioa Idustriaizatio Program (nIP)
ad Miig Pa (MP), based o te oowig
priorities (Sec. 2 to 4):
Domestic eedsbased deeopmet to create
processig capacit or idustria metas
(suc as base metas, basic cemicas ad
petrocemicas) ad dowstream idustries
to geerate empomet ad our ow basic,
tabLe 1. comparIsIon of deveLopment frameworks
Mining Act of 1995 HB 4315 (Peoples Mining Bill)
State responsible for promoting the rational exploration,development, utilization, and conservation of mineralsthrough the combined efforts of government and the privatesector.
State leads mining industry development according to aNational Industrialization Program and Mining Plan thatconsiders medium and long-term needs; technologicaladvancement; the right to self-determination of IPsand Moros; and other accepted principles on human,labor, womens, and childrens rights and environmental
protection and preservation as embodied in existinginternational conventions the country is a signatory to.
Mining is to be revitalized through scal reforms, additional
benets and incentives for foreign investors. This has
left the industry mostly limited to extraction and exportof mineral ores; dependent on foreign capital, importedtechnology, and foreign expertise; and controlled by an elitefew.
Mining is to be developed within the framework of
1. nationalizing the industry towards self-sufciency, and
2. achieving genuine agrarian reform, the modernizationof its agricultural base and rural development. It seeksoptimum benet for the national and local economy and
public participation/ representation over projects.
8/4/2019 Primer on the Peoples Mining Act of 2011
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medium, ad ea idustries or cosumer,
itermediate ad capita goods (Sec. 10).
Agraria reorm ad agricutura
moderizatio to itegrate miera
deeopmet ad agricutura productio ad
proibit miig i areas specied or oodproductio.
Domestic capitaizatio o miig troug
participatio o Fiipio corporatios ad
itera udig or capita requiremets
rom re-caeig goermet budgets or
oreig debt paymets, miitary expeditures,
ad goermet sares rom te Maampaya
natura Gas Project.
Respect or idigeous peope's ad Moro
commuities rigts to se-determiatio.
Support or workers rigts ad occupatioa
saety stadards
Support or smascae miers ad teir
itegratio ito te atioa miig idustr
Demiitarizatio o miig operatios
by miitary, poice, priate security, adparamiitary groups.
Deeopmet o idustria kowedge,
tecoogy, ad metods to be more
appropriate, ecoomicay-eciet ad ess
eirometay-destructie.
Promotio, deeopmet, eorcemet, ad
moitorig o ecoogicay-soud miig
practices ad stadards
Reabiitatio o a miig-afected areas
ad abadoed mies.
5. How can mining under national
industrialization help modernize
agriculture?
Miig outputs ca be used produce tecoogy
or te productio, post-arest, ad processig
o raw materias ad agricutura goods.
Mieras ca be used or te productio o
mecaized toos ad tecoogy eeded to
moderize te coutrys agricutura idustry
ad meet idustria eeds. Tese metas eeded
to produce suc toos ad tecoogy sa be
prioritized ad cosidered as strategic miera
resources. Miig wi ot be pursued i prime
agricutura ads, prioritizig ood security ad
productio (Sec. 4, 11, 30).
6. How is the decision-making process in HB
4315 diferent rom RA 7942?
I RA 7942, decisiomakig or argescae
miig permits is amost excusie i te
ads o te Presidet, te DEnR, ad te
MGB. I hB 4315, te decisiomakig
process is expaded to te aected commuit,
stakeoders, ad oca goermet uits
troug te creatio o Mutisectora Miera
Coucis (MSMCs) resposibe or te approa
ad moitorig o miera agreemets.
Te bi arms te roe o te MGB as a
scietic researc istitutio uder te DEnR.
Te MGB shall establish a national and
regional ling and recording system and
mineral resource and rights management
database system, where mineral areas are
to be demarcated. It sa aso maitai aietory o watersed cotiuums ad a
aaiabe miera resources; ad ideticatio
o strategic miera resources or oca
idustries, agricutura moderizatio, ad
rura deeopmet (Sec. 19, 29, 30, 32).
Te MGB shall have exclusive and direct
responsibility or mining exploration
o bea o te State, wit preerece or
o-iasie exporatio metods i order tomiimize impacts (Sec. 21).
MSMCs will be created in all demarcated
mineral areas. Tey sa be coeed by te
MGB ad composed o represetaties rom
te DEnR, afected lGUs, commuities ad
oter stakeoders. MSMCs sa determie
i miig operatios sa be aowed or ot,
deiberate o proposed miig projects,
moitor te coduct o miig operatios, ad
estabis itera rues o procedure (Sec. 35).
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Uder hB 4315, te process or acceptig a
miig proposa is as oows (Sec. 44-49):
a. MSMC vote. Te MSMC wi decide i a
area wi be opeed to miig troug a two-tirds ote.2
b.Call or proposals. I te MSMC otes
to ope a area to miig, te MGB wi
prepare iormatio seets ad issue a ca
or proposas based o te MP.
c. MGB pre-screening and endorsement.
Te MGB wi pre-scree a proposas based
o te nIP, idetiy te top tree proposasad recommed tese to te MSMC or
deiberatio.
d. MSMC deliberations with LGUs
and IPs/ICCs. lGUs sa coduct
madatory pubic earigs witi afected
commuities ad require te approa o
2 Te MSMC sa cosider te MGB exporatioreport, existece o dowstream idustries, potetiaeirometa, pubic eat, ad cutura resources
ad impacts, cofict ad risk assessmets, potetiaecoomic beets, existig ad ateratie ad uses adte areas carrig capacit (Sec. 37).
te afected sanggunians ad a majority
ote o te afected lGUs (Sec. 47).
Separate deiberatios wi be coducted or
afected IPs/ICCs usig teir ow systems
ad processes, ree rom ay exteramaipuatio, itererece, coercio ad
te ike.
e. MSMC nal deliberations. Te MSMC
wi coose amog te top tree proposas,
cosiderig wic is most acceptabe to its
ow socio-ecoomic, eirometa, ad
cutura program.
. Public announcement. Te MSMCorwards its decisio to te MGB, wic wi
pubis te accepted proposa ad issue a
permit ater six weeks i it is ot cotested.
For sma-scae miig, hB 4315 recogizes
te appicabiity o RA 7076 or te Peoples
Small-Scale Mining Act o 1991. It, oweer,
expads te compositio o te Proicia/
City Miig Reguatory Board (Sec. 25
o RA 7076) to icude at east two more
represetaties rom cii society. Oy oe
nGO represetatie was preiousy aowed
tabLe 2. comparIson of decIsIon-makIng processes on mInIng
Mining Act of 1995 HB 4315 (Peoples Mining Bill)
Emphasis on Presidential prerogative. Decisions overmining permits highly concentrated in the hands of thePresident, upon recommendation of the DENR Secretary.
Based on strategic and local plans and consultations.Industry development is based on a NationalIndustrialization Program and Mining Plan; decision-
making is centralized in Multi-Sectoral Mineral Councils
composed of representatives from the government anfaffected community.
All areas assumed open to mining unless declaredclosed by the Government
All areas are closed to mining unless declaredopen by the MSMCs, through a two-thirds vote.
Role of govt agencies. DENR has the authority toenter into mineral agreements. MGB in charge of theadministration and disposition of mineral lands andresources, researches and exploration surveys. MGB
Director recommends to the DENR Secretary the grantingof mining agreements to qualied persons.
MGB is a scientic research institution under the DENR
and a central repository of information on miningoperations. It is responsible for resource database,inventory, and prioritization, mining exploration on behalf of
the State, public Information, and pre-screening of miningproposals.
8/4/2019 Primer on the Peoples Mining Act of 2011
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uder RA 7076. A quarryig permits sa
require te recommedatio o te MSMC
prior to te a approa o te proicia
goermet uit (Sec. 81).
7. How does HB 4315 uphold and protect our
national patrimony?
a. It allows only mining permits which
Filipinos can derive the most benet
rom and which will support the
strategic and prudent extraction o
minerals needed or industrialization.
I terms o arge-scae miig, it scraps te
cotroersia FAA ad EPs. It retais oter
permits i RA 7942 but cosideraby reduces
teir scope ad rigts. It requires a striget
screeig process to secure coset ad
approe eirometa ad socia impact
pas. Te tree arge-scae miig permits
aowed are:
Mineral Production Sharing Agreement
te cotractor is grated te excusie rigt
to coduct miig ad ae sares i te
gross output, wie proidig acig,
tecoogy, ad maagemet.
Co-production Agreement (CA)
agreemet betwee te goermet ad
te cotractor were te goermet sa
proide iputs to miig operatios oterta te miera resource.
Joint Venture Agreement (JVA)
a joit-eture compay is orgaized by te
goermet ad te cotractor wit bot
parties aig equity sares; goermet is
etited to a sare i te gross output.
large-scae miig permit areas sa ot
exceed 500 ectares. no oe sa be awarded
more ta 750 ectares i ay watersed
area. erms sa ot exceed 15 years ad
icude reabiitatio. Permits ca ot be
exteded witout just cause (suc as war
or istaces arisig rom orce majuere).
Tey are o-traserabe; ay cages i
corporate owersip or acig structure
soud be reported (Sec. 51-52, 61).
tabLe 3. comparIson of major mInIng permIt types wIth ra 7942
Permit Type Mining Act of 1995 Peoples Mining Bill
Exploration
Permit (EP)
Duration of operations: Two years, maximum of eight years
Maximum area: 32,000 ha. onshore, 81,000 ha. offshoreEconomic priveleges: 100% repatriation of capital and prots; exemption
from income tax (6 years), export tax (10 years), and import tax;employment of foreign nationals allowed, right to transfer or sell miningpermit, condentiality rights
Political rights: timber rights, water rights, easement rights, entry intoprivate lands and concession areas
None
The MGB has the
exclusive right andresponsibility to conductmining explorationthroughout the country.
Financial andTechnical
Assistance
Agreement
Duration of operations: 25 years, renewable up to 50 yearsMaximum area: 81,000 ha. onshore, 324,000 ha. offshoreCapitalization: 100% foreign ($50 million minumum investment)Economic priveleges and political rights: Same as EP
None
FTAA is deleted.
MPSA
CA
JVA
Duration of operations: 25 years, renewable up to 50 yearsMaximum area: 16,200 ha. onshore, 40,500 ha. offshoreCapitalization: 60% Filipino, 40% foreignEconomic priveleges and political rights: Same as EP
Duration of operations:Up to 15 yearsMaximum area: Up to500 hectaresCapitalization: 60%Filipino, 40% foreign
Reerences: HB 4315, RA 7942
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Small scale mining permits (SSMPs) sa
o be grated to idiiduas ad cooperaties.
Te term or permits sa be tree (3) ears,
extedabe to a maximum o tee (15)
ears (Sec. 63). largescae miig wi ot be
aowed i smascae miig areas witout te
coset o te aected smascae miers.
Quarrying permitso priate ads
may gie to quaied Fiipios, except
i acestra domais ad pubic ads
or buidig ad costructio. A miera
agreemet is required or te extractio o
sad or its metaic cotets (magetite)
rom riers/soreies, ad arge-
scae quarryig ioig cemet raw
materias, marbe, graite, sad, grae ad
costructio aggregates. Permits sa ot
be grated or areas coered by a miera
agreemet. Permits sa be imited to e
ectares ad e years, reewabe up to 20
years (Sec. 75-80).
b. It sets stringent terms or oreign
participation in the Philippine mining
industry.
Only Filipino corporations shall be allowed
to hold permits. It removes EPs, as the
MGB is tasked to oversee and conduct all
exploration activities. It also prohibits FTAAs
or other similar agreements where the right to
explore, develop and use mineral resources is
awarded to foreign entities (Sec. 41).
Foreig rms are aowed to iest
i exceptioa cases idetied by te
goermet ad based o te nIP ad te
coutrys capabiity ad capacity. Tey wi
be required to udergo rigorous screeig,
reguatios ad a madatory program or
tecoogy traser ad equity sares.
Capita accumuatio ad reiestmet
i te coutry is ecouraged oer prot
repatriatio. Foreig rms wit a bad track
record ere are baed.
c. It ensures that mining rms will pay
taxes, ees, and shares to governments
and communities.
RA 7942 as a egt ist o tax exemptios,
iceties, ad iestmet guaratees or
miig iestors. Tese seere imited te
tabLe 4. quarryIng permIt types aLLowed
Quarry Permit Type Coverage Grantee Authority Maximum Area
1. Commercial Sand
and Gravel Permit
Sand, gravel, or other other loose
or unconsolidated materials outside
ancestral domains used in their natural
state
Any qualied person ProvincialGovernor
Not exceedingve hectares
2. Industrial Sand
and Gravel Permit
Sand and gravel and other loose orunconsolidated materials outsideancestral domains needing mechanicalprocessing
MGB Not exceedingve hectares for
3 years up totwenty years.
3. Exclusive Sandand Gravel Permit
Sand and gravel or other loose orunconsolidated materials from publiclands for his own (not commercial) use
ProvincialGovernor
4. State Gratuitous
Permit
Sand, gravel, quarry or looseunconsolidated materials in theconstruction of public infrastructure
Any government entity ProvincialGovernor
Not more thantwo hectares;same lenth withconstruction
5. Guano Permit Loose unconsolidated guano and otherorganic fertilizer materials
Any qualied Filipino Specic caves
and/or conned
sites
6. Gemstone Permit Loose stones useful as gemstones Rivers, othersites
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sares o goermet ad oca commuities ad
aowed oreig miig iestors to practica
sipo most o teir prots out o te coutr.
O te oter ad, hB 4315 requires te
pamet o requisite taxes, ees, ad sares o
goermet ad aected commuities rommiig reeues ad te domestic iestmet
o miig capitaizatio ad ace. Tis
esures tat te goermet ad commuities
are proper ad adequate compesated ad
tat miig reeues are directed towards
supportig te oca ecoom (Sec. 9099).
8. How does HB 4315 uphold respect or
human rights and the welare o the social
sectors and stakeholders afected by
mining projects?
a. Upholding workers rights and
occupational saety.
Te bi respects workers rigts to orgaize
ad orm associatios, to coectie
bargaiig ad to strike. It requires tat
job security, adequate wages, beets, ad
sae workig coditios or mie workers
be esured. A projects sa stricty compy
wit rues ad reguatios o mies saetyad proide saeguards or te eat ad
we-beig o workers. Tese icude RA
7305 or te Maga Carta o Pubic heat
Workers; proibitio o orced ad cid
abor; ad superisor-worker ratios o
miig egieer ad oe orema or eery
50 workers empoyed. Goermet ocias
may coduct saety ad abor coditios
ispectios. Te MGB may issue orders
to remedy errig practices ad susped
operatios posig immiet dager to ie or
property. rade uio represetaties sa
ae isitoria rigts (Sec. 4, 100-106).
tabLe 5. comparIson of taxes, fees and benefIt sharIng
Mining Act of 1995 HB 4315 (Peoples Mining Bill)
Limited government share. Government share islimited to excise taxes of 2% required by law.
Government and community shares increased: a.) Nationalgovernment share, b.) LGU share, c.) Indigenous culturalcommunities royalty, d.) Scientic Research and Development
Fund, e.) Legal Services Fund, f.) Mine Wastes and Tailings Fee
Limited taxes and fees, including semi-annual minewastes and occupation fees. Mining permits enjoy6 years income tax exemption, 10 years export taxexemption, and import tax exemption.
Taxes and fees are increased to include, but are not limitedto, the following: semi-annual Mine Wastes and Tailings fees,
contractors income tax, customs, duties and fees on importedcapital equipment, value-added tax on imported goods andservices, withholding tax on interest payments to foreign loansand on dividends to foreign stockholders, documentary stampstax, capital gains tax, excise tax on minerals, local business tax,real property tax, community tax, occupation fees, registration,accreditation and permit fees, and water usage fees.
Generous fscal and non-fscal incentives. Through
the Omnibus Investments Code of 1987, contractorsenjoy incentives for Pollution Control Devices, IncomeTax-Carry Forward of Losses, Income Tax-Accelerated
Depreciation, Investment Guarantees.
Incentivesshall be given for the use of pollution control ormitigation devices.
Investment guarantees. Includes (a) Repatriation ofinvestments, (b) Remittance of earnings, (c) Foreignloans/contracts,(d) Freedom from expropriation, (e)Requisition of investment and (f) Condentiality
All large-scale mining contractors required to deposit theircapital investment and prots in Philippine banks or nancial
institutions. Those with foreign nancial assistance are required
to fully disclose all prots, and allowed to repatriate prots up
to 50% of the total posted annually. Full repatriation of prots
allowed one year after mining and rehabilitation ends.
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10
b. Requiring the consent o indigenous
peoples at all stages o mining.
Free, Iormed ad Prior Coset (FPIC)
rom ICCs ad IPs is required or a types
ad stages o miig projects i teir
acestra ads ad domais. Permit oders
sa respect ad compy wit customaryaws, practices, ad processes o afected
ICCs/IPs. FPIC or use o water resources
witi IP ads (icudig tose witi te
same groudwater etwork ad dowstream
users) is aso be required prior to te
gratig o water permits by te nWRB (Sec.
65, 71, 118, 133).
c. Promoting livelihood and technology
support or small-scale mining
communities.
It seeks to stregte sma-scae
miig commuities by requirig FPIC,
eirometa/socia impact pas, ad
researc ad ieiood support. Tis
ca reduce depedece o backward
tecoogies, middeme/aciers, ad
export o ores. It gie tem ieiood
support, icudig access to mieras
markets ad acig, aciitatio o
partersips wit miig compaies,cotractors (or processig ad recycig)
ad SSM cooperaties. Te Bagko Setra
g Piipias sa esure tat buyig statios
acquire god rom sma-scae traders at
preaiig god market prices ad excage
rates (Sec. 69-70).
d. Penalizing human rights violations
committed in relation to mining.
Uike RA 7942, te bi expicityempasizes te uma rigts obigatios
ad strict iabiity o miig corporatios
(Sec. 128, 134). learig rom te essos
o te past, te bi recogizes as ioatios
o uma rigts extrajudicia kiigs,
torture, ioutary disappearace, orcibe
dispacemet o popuatios, settig up
o ceckpoits ad impositio o to ees
wic impede te reedom o moemet i
miera areas, depriatio o ood ad water
sources, ote-buyig ad bribery or te
purpose o securig coset or edorsemet
or te miig project, ad oter simiar
acts. Te empoymet o paramiitary groups
or miig is proibited (Sec 130).
e. Reducing the incidence o harassment
suits and strengthening public litigation
Te bi attempts to eimiate harassmentsuits, kow as Strategic lega Actios
agaist Pubic Participatio3 (SlAPPs),
by giig courts tirty days to determie
weter it is a SlAPP or ot ad moe or its
dismissa.
Coersey, it supports peopes capacity to
pursue itigatio or ioatios o te aw
by 1.) aowig citizes to e cii, crimia
ad admiistratie suits ad 2.) recogizig
te awsuits ed ater te termiatio o
cotracts (Sec. 125). Idigets suits are
exempted rom ee paymets ad proided
wit ega support (Sec. 131-136).
. Requiring consultations and monitoring
with all afected communities
Madatory cosutatios wit afected
commuities ad coset wit te
awu occupats o ads or miig
sa be secured i a pases. A muti-partite moitorig team wi moitor
compiace wit miig permits ad teir
eirometa pas ad coduct ocuar
ispectios, (Sec. 55-56, 59, 64).
g. Supporting the development o
communities, and domestic science, and
technology
Cotractors sa support commuity
deeopmet projects cosistet wit ocadeeopmet pas ad separate rom
teir royaty paymet to IPs/ICCs ad
lGUs. Priority is gie to te empoymet
o Fiipio abor, experts ad traiig o
oca commuity members ad te use o
idigeous goods, serices ad tecoogies
i a stages o miig empoymet. (Sec.
86-88).
3 SlAPP is a ega actio, weter cii, crimia oradmiistratie, ed to arass, ex, exert ega actio or stife
ega recourses o citizes compaiig agaist ioatios o tisAct or eorcig te proisios o te Act, or exercisig teirreedom o assemb or rigt o pubic participatio.
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9. How does HB 4315 ensure environmental
protection?
a. No mining areas
Miig is baed i eirometacritica
areas, icudig areas uerabe to acid mie
draiage; critica waterseds ad abitats;ke biodiersit areas, geoazard ad cimate
disasterproe areas; sma isad ecosstems;
od growt, atura, primar, magroe, ad
moss orests, watersed orest reseres,
wideress areas, atioa parks, protectio/
proicia/muicipa orests, parks, greebets,
game reuge, bird sactuaries, buer zoes, ad
Paawa proice uder RA 7611.
It is baed i residetial or agricultural productio
areas, suc as desely-populated or prime
agricultural lads; agraria reorm areas; traditioal
swidde arms, utig grouds; arceological,
istorical, cultural sites ad property uder RA
10066; areas ear public or private buildigs, ad
irastructure projects; military or govermet
reservatios4; ig cofict areas (Sec. 37).
b. Environmental impact assessment and
mitigation plans
A evirometal ecoomic audit or resourcevaluatio o te area, sall be coducted wit a
multisectoral group o experts ad stakeolders
ad made publicly available. hB 4315 requires
cotractors to submit a Evirometal ad Social
Impact Assessmet ad Mitigatio Pla (ESIAMP)
ad secure a Evirometal ad Social Impact
Compliace Certicate (ESICC) beore issuig ay
large or small-scale permit (Sec. 37, 45, 50, ad 66).
c. Precautionary measures and rehabilitationfunding
Te bi upods te precautioar pricipe
ad requires cotractors to pursue
reabiitatio , buid taiigs impoudmets
ad dams awa rom watersed draiage
areas accordig to iteratioa stadards;
impemet te Cea Water Act ad Cea
Air Act proisios o waste dumpig, use
cemicas or reagets to miimize destructio,
ad presere remoed topsoi or oter uses.
4 Except upo writte coset o te goermet
agecy ad/or priate etity cocered
Te bi upods te pouter pas pricipe,
b requirig cotractors to pa or damage
reabiitatio troug a eirometa
isurace cotract, Caamit ad huma Rigts
Protectio Fud, Perormace Bod, ad Mie
Reabiitatio Fud (Sec.107117).
d. Priority for peoples access to clean water
Permit oders ejoed water rigts uder RA
7942, ote diertig reswater awa rom
commuities ad ood productio. hB 4315
prioritizes water or domestic, muicipa, ad
agricutura purposes. Existig uses o water i te
aected area sa be studied ad te coset o a
users i te same groudwater ad dowstream
etwork required. Cotractors sa recce water
ad treat tem to approximate baseie water
quait prior to teir reease (Sec. 118120).
e. Mitigation measures for acid mine drainage
(AMD)
AMD occurs we pouted ad igacidic
water fows or seeps out rom od miig areas.
Tis draiage ma be cotamiated wit toxic
ea metas wic ca aect te peopes
eat ad te surroudig ecoog. Te bi
aims to mitigate AMD b baig te use oacidgeeratig waste rock or irastructure;
estabisig a predictio ad moitorig sstem
or potetia AMD sites; aoidig waterwas i te
paig o miig irastructure; ad remiig
to recoer remaiig mieras (Sec. 121124).
f. Research and technology support for small-
scale mining
Researc & deeopmet or appropriate, cea,
eciet, cuturasesitie ad idustriaiabe tecoogies sa be pursued to mitigate
eirometa ad eat eects o mercur
ad caide use ad eetua repace curret
azardous practices i smascae miig (Sec. 67).
g. Rehabilitation of mining areas
Cotractors are required to coduct progressive
reabilitatio activities i or at least ve years. no
clearace or witdrawal sall be issued uless
tese are implemeted.Te Reabilitatio Fud
ad Perormace Bod will be used i te mie is
abadoed witout reabilitatio (Sec. 52, 110-111).
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10. What are the grounds for cancelling mineral agreements and other penal provisions?
Table . Grounds for cancellaTion of mininG permiTs
Mining Act of 1995 HB 4315 (Peoples Mining Bill)
Grounds are only limited toadministrative violations,
such as late or non-ling ofregistration, violation of permitterms, and non-payment oftaxes and fees. The law does
recognize human rightsviolations of corporations as aground for cancellation.
Grounds include 1.) violations of any provision of the Act, 2.) non-payment of taxes; 3.) bribery,use of force, intimidation, threat, coercion of public ofcials and communities; 4.) acts creating or
contributing to conicts; and the like, and 5.) failure to initiate mining operations within two years.
Grounds for immediate cancellation are 1.) human rights violations by the contractor or any
of its agents; 2.) use of paramilitary forces to protect mining operations, and 3.) violations of
environmental provisions, which shall also require compensation and rehabilitation (Sec. 129-130).
Permit holders found guilty are perpetually banned from participating directly or indirectly in mining
operations in the Philippines. Government ofcials guilty of administrative violations shall be
removed from ofce and perpetually disqualied from holding any government post (Sec. 151-152).
Table . comparision of penal provisions and fines
Penal provisions and penalties/ fnes under the Peoples Mining Bill Mining Act of 1995
False statements Maximum ne of P100,000 Maximum ne of P10,000
Illegal exploration Maximum ne of P5,000,000 Maximum ne of P50,000
Theft of minerals Imprisonment from six months to six years and/or ne ranging
from P100,000 to P1,000,000 plus damagesImprisonment (six months to sixyears) and/or ne of P10,000 to
P20,000, damages
Destruction of structures Imprisoned for up to ve (5) years and damages
Mines arson Punishment, upon conviction, according to the Revised Penal Code and damages
Willful damage to a mine Imprisonment up to ve (5) years and damages
Illegal obstruction to
permittees or contractors
Fine not exceeding P5,000 Fine not exceeding P5,000.00
and/or imprisionmentVitiation of FPIC For non-government entities: Imprisonment (six years, one day
to ten years), minimum ne of two million pesos
For government ofcials: Imprisonment from (8 years, one day to 12
years; minimum ne of four million pesos; prohibition from assuming
public ofce; disqualication from other government benets
None
Human rights violations Imprisonment from 10-14 years; ne of at least ve millionpesos and indemnication for the victims
Abandonment Perpetual ban or disqualication from direct/indirect
involvement in mining operations
Violations of Anti-
Dummy Law
Fine of ve million pesos and a perpetual ban in the mining
industry
Violations to the
Amendment to Sec. 27 of
the Small-scale Mining Act
Imprisionment of 6 years and one day to 12 years,conscaton of equipment, tools, instruments, closure or
suspension of mining activities, permit revocation
Reerences: HB 4315 Sec. 138-150; RA 7942 Chapter XIX
11. What are the bills transitory provisions?Te bi proposes a moratorium o a miig actiities uder a systems are i pace or te Acts
proper impemetatio ad deems caceed a existig miig permits, iceses, ad agreemets.
A reiew o te curret miera ad cassicatio wi be pursued; curret cassicatios ad te
Presidets power to decare miera reseratios redered iefectie. Te State sa be resposibe
or extedig aid to mie workers ad sma-scae miers ad teir amiies wo sa be temporariy
dispaced by te moratorium wie te ew poicy ad mecaisms are beig put ito pace.