PRIMER CONTROL AND SUPERVISION OF MINES AND MINERALS IN THE

ARMM

By: Atty. Randolph C. Parcasio

Question: What are minerals

• Answer: "Minerals" refers to all naturally occurring inorganic substance in solid, gas, liquid, or any intermediate state excluding energy materials such as coal, petroleum, natural gas, radioactive materials, and geothermal energy (Philippine Mining Act of 1995 (RA 7942), Chapter I Section 3, paragraph (aa)

Question: What are Strategic Minerals

Answer: Strategic Minerals are energy materials such as uranium, petroleum, and other fossil fuels, mineral oils, all sources of potential energy, and those that may be defined by an Act of Congress within one (1) year from the effectivity of RA 9054. ( Sec. 5, Art. XII, RA 9054)

Question: What is the law that defines strategic minerals in the Philippines.

Answer: The only law in the Philippines that defines strategic minerals is the Organic Act for the Autonomous Region in Muslim Mindanao (RA 9054) specifically section 5, Article XII and Section 1, Article X.

Question: What is the power of the Autonomous Regional Government (ARG) of ARMM over minerals

Answer: The ARG-ARMM has the power of control and supervision over metallic minerals such as nickel, gold, copper, iron, chromite, molybdenum, manganese, and all other non energy metallic minerals including non metallic - non energry materials found and situated within the territorial jurisdiction of the ARMM.

Question: What is the legal basis of the power of control and supervision of ARG-ARMM over metallic and other non-energy materials.

Answer: The power of control and supervision over natural resources, mines and minerals of the ARG-ARMM springs from the Philippine Constitution in Section 20, Article X which provides that: “Within its territorial jurisdiction and subject to the provisions of this Constitution and national laws, the organic act of the autonomous regions shall provide for legislative powers over: Xxx. (3) Ancestral domain and natural resources”

RA 9054, ART. XII, SEC. 5General Rule

The control and supervision over the exploration, utilization, development, and protection of the mines and minerals and other natural resources within the autonomous region are hereby vested in the Regional Government in accordance with the Constitution and the pertinent provisions of the Organic Act

Exception to the General Rule

Strategic minerals such as uranium, petroleum, and other fossil fuels, mineral oils, all sources of potential energy, as well as national reserves and aquatic parts, forest and watershed reservations already delimited by authority of the central government or national government and those that may be defined by an Act of Congress within one (1) year from the effectivity of this Organic Act.

Question: What is the power of the Regional Assembly over natural resources.

Answer: The Regional Assembly shall by law have the authority to grant franchises and concessions and may by law empower the Regional Governor to grant leases, permits, and licenses over mineral lands which shall subsist for a period of not exceeding twenty five years. ( Par. 5 (d), Art. XII, RA 9054)

Question: What is the authority of theRegional Governor over natural resources

within the ARMM

Answer: The Regional Assembly may by law empower the Regional Governor to grant leases, permits, and licences over agricultural, forest, and mineral lands. (Par. 5(d) Art. XII, RA 9054). Presently, the Regional Governor is granted by the Regional Assembly blanket authority to issue such leases, permits and licenses. (Resolution No. 38 Series of 1994).

Question: How will the authority of the Regional Governor be strengthened.

Answer: The Regional government shall prescribed the rules and regulations and impose regulatory fees in connection with the issuances of leases, permits, franchises, licenses or concessions over mineral lands. ( Sec. 8, Art. XII, RA 9054)

Question: Who are entitled to the grant of franchises, permits and licenses to explore, develop and utilize natural resources within the ARMM. Answer: All citizens, private enterprises, including corporations, associations, cooperatives and such other similar collective organizations with at least 60% of their capital investments or capital stocks directly controlled or owned by citizens. ( Sec. 6, Art. XII, RA 9054)

PREFERENTIAL RIGHTS OF INHABITANTS

Question: Who has preferential rights to be granted franchises, permits and licenses to explore, develop and utilize natural resources within the ARMM. Answer: Citizens who are inhabitants of the autonomous region (Sec. 7, Art. XII, RA 9054)

Question: The Department of Justice in Opinion No. 19, dated 31 March 2014 states that the ARG-ARMM has no authority to issue MPSA on nickel because nickel is a strategic mineral which is within the control and supervision of the national government.

Answer: Nickel is not a strategic mineral so it is within the control and supervision of the ARG-ARMM and not the central government. Only strategic minerals are under the direct control and supervision of the central government.

Question: Is small scale mining allowed within ARMM.

Answer: Yes. Small scale mining shall be regulated by the Regional Government to the end that the ecological balance, safety and health, and the interests of the indigenous cultural communities, the miners, and the people of the place where such operations are conducted are duly protected and safeguarded. (Sec. 9, Art. XII, RA 9054)

Question: What is the sharing of revenues of strategic minerals

Answer: Fifty Percent (50%) of the revenues, taxes, or fees derived from the use and development of the strategic minerals shall accrue and be remitted to the Regional Government within thirty days from the end of every year. The other fifty percent shall accrue to the central government or national government. ( Par. C, Section 5, RA 9054)

Question: What is the sharing of revenues of strategic minerals between the ARG-ARMM and LGU’s.

Answer: Regional Government - 30% Provinces - 20% Cities - 15% Municipalities - 20% Barangays - 15% (Par. 5 (c ), Art. XII, RA 9054)

Question: Since revenues, taxes and other fess derived from metallic minerals are not included in the 50-50 sharing of strategic minerals under Par. C, Section 5, RA 9054, what is the entitlement of the ARG-ARMM on revenues of Metallic Minerals.Answer: Revenues derived from non-strategic minerals or metallic minerals such as gold, silver, iron, nickel, chromite, manganese, and the like shall accrue to the Regional Government.

On other Internal Revenue, Natural Resources Taxes, Fees and Charges imposed by the Central Government the sharing is as follows: Regional Government……………………35%Central Government ……………………. 30%Provincial/City Government……........35% (Sec. 9, Art. IX, RA 9054)

Question: In the current peace tracts of MNLF and MILF with the GPH what are the agreements affecting natural resources

Answer: MNLF-GPH Tract unresolved issues: a) The MNLF demands 70% of revenues on

strategic minerals. b) The MNLF limits the definition of strategic

minerals to uranium and imported minerals.

MNLF-GPH INTERIM AGREEMENTON STRATEGIC MINERALS

ARG-ARMM CENTRAL GOVERNMENT

Acceptance, processing, evaluation, and assessment of application for permit to explore, utilization contracts, to impose administrative charges and fees.

Approval of application for permit to explore and/or utilization contact duly recommended by the ARG. No application shall be approved without the favorable recommendation of the ARG If, after the lapse of 30 working days upon receipt of the recommended application, no action is taken by the national government, the application is deemed approved.

ARG-ARMM CENTRAL GOVERNMENT

Recommends approval of permits, contract upon endorsement of all the respective Sangguniangs (Local Government Councils) and after securing the free and prior informed consent in accordance with the Indigenous Peoples Rights Act.

Approval of the permits, contracts recommended by ARG

Co signatory together with the GPH of any permit, contract

Co signatory together with the ARG of any permit, contract

Tasked to be primarily responsible for the monitoring of compliance to the duly approved exploration permits and utilization contracts

May at its option, monitor compliance to the duly approved exploration permits and utilization.

1 March 2012, in Bandung, IndonesiaMNLF-GPH Agreement

• Issuance of an Executive Order by the Office of the

President on the Interim Co-Management Arrangement, as agreed during the 1st Formal Meeting of the Ad Hoc High Level Group, held on June 2011, Solo City, Indonesia. The complete staff work shall be done by the Department of Environment and Natural Resources (DENR) with inputs from the Department of Energy by 30 June 2012. The draft executive order shall be furnished the MNLF for their review prior to submission to the Office of the President.

• To operationalize the Co-management arrangement for strategic minerals under DOE Jurisdiction, the ARMM shall create an office on energy concerns.

MILF-GPH PEACE TRACT

Evolving from MNLF-GPH 1996 Peace Agreement and RA 9054, the MILF and GPH agreed in the ANNEX OF POWER SHARING specifically on Part III-Delineation of Powers it is provided: The Bangsamoro Government shall have exclusive powers that it exercises within its territorial jurisdiction over the following matters: xxxxxx. 29. Ancestral domain and natural resources.