Article 41p. 41

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

quartz, quartz or silica, sand and pebbles, bentonite, talc,

asbestos, barite, gypsum, bauxite, magnesite, dolomite,

mica, precious and semi-precious stones, and other

non-metallic minerals that may later be discovered and

which

the:

Director

declares

the

same

to

be

of

economically workable quantities, shall not be classified

under the category of quarry resources.

au. Regional director means the regional director of any

mines

regional

office

under

the

Department

of

Environment and Natural Resources.

av. Regional office means any of the mines regional

offices of the Department of Environment and Natural

Resources.

aw. Secretary means the Secretary of the Department of

Environment and Natural Resources.

ax.

Special

allowance

refers

to

payment

to

the

claim-owners or surface right-owners particularly during

the transition period from Presidential Decree No. 463

and Executive Order No. 279, series of 1987.

ay. State means the Republic of the Philippines.

az. Utilization means the extraction or disposition of

minerals.

CHAPTER II Government Management

Section 4

Ownership of Mineral Resources

Mineral resources are owned by the State and the

exploration,

development, utilization, and processing

thereof shall be under its full control and supervision.

The State may directly undertake such activities or it

may enter into mineral agreements with contractors.

The State shall recognize and protect the rights of the

indigenous cultural communities to their ancestral lands

as provided for by the Constitution.

Section 5

Mineral Reservations

When the national interest so requires, such as when

there is a need to preserve strategic raw materials for

industries critical to national development, or certain

minerals for scientific, cultural or ecological value, the

President may establish mineral reservations upon the

recommendation of the Director through the Secretary.

Mining operations in existing mineral reservations and

such other reservations as may thereafter be established,

shall be undertaken by the Department or through a

contractor:

Provided,

That

a

small

scale-mining

cooperative covered by Republic Act No. 7076 shall be

given preferential right to apply for a small-scale mining

agreement

for

a

maximum

aggregate

area

of

twenty-five percent (25%) of such mineral reservation,

subject

to

valid existing mining/quarrying rights as

provided

under

Section

112

Chapter

XX

hereof.

All

submerged lands within the contiguous zone and in the

exclusive economic zone of the Philippines are hereby

declared to be mineral reservations.

A

ten

per

centum (10%) share of all royalties and

revenues to be derived by the government from the

development and utilization of the mineral resources

within mineral reservations as provided under this Act

shall accrue to the Mines and Geosciences Bureau to be

allotted for special projects and other administrative

expenses related to the exploration and development of

other

mineral

reservations

mentioned

in

Section 6

hereof.

Section 6

Other Reservations

Mining operations in reserved lands other than mineral

reservations may be undertaken by the Department,

subject to limitations as herein provided. In the event

that the Department cannot undertake such activities,

they

may

be

undertaken by a qualified person in

accordance with the rules and regulations promulgated

by the Secretary. The right to develop and utilize the

minerals

found

therein

shall

be

awarded

by

the

President

under

such

terms

and

conditions

as

recommended by the Director and approved by the

Secretary: Provided, That the party who undertook the

exploration of said reservation shall be given priority. The

mineral land so awarded shall be automatically excluded

from the reservation during the term of the agreement:

Provided, further, That the right of the lessee of a valid

mining contract existing within the reservation at the

time of its establishment shall not be prejudiced or

impaired.

Section 7

Periodic Review of Existing Mineral Reservations

The Secretary shall periodically review existing mineral

reservations for the purpose of determining whether

their continued existence is consistent with the national

interest, and upon his recommendation, the President

may, by proclamation, alter or modify the boundaries

thereof or revert the same to the public domain without

prejudice to prior existing rights.

Section 8

Authority of the Department

The

Department

shall

be

the

primary

government

agency responsible for the conservation, management,

development, and proper use of the State's mineral

resources including those in reservations, watershed

areas, and lands of the public domain. The Secretary

shall

have

the

authority

to

enter

into

mineral

agreements on behalf of the Government upon the

recommendation of the Director, promulgate such rules

and regulations as may be necessary to implement the

intent and provisions of this Act.

Section 9

Authority of the Bureau

The

Bureau

shall

have

direct

charge

in

the

administration and disposition of mineral lands and

mineral

resources

and

shall

undertake

geological,

mining, metallurgical, chemical, and other researches as

well as geological and mineral exploration surveys. The

Director shall recommend to the Secretary the granting

of mineral agreements to duly qualified persons and

shall monitor the compliance by the contractor of the

terms and conditions of the mineral agreements. The

Bureau

may

confiscate

surety,

performance

and

guaranty

bonds

posted

through

an

order

to

be

promulgated by the Director. The Director may deputize,

when necessary, any member or unit of the Philippine

National

Police,

barangay,

duly

registered

non-governmental organization (NGO) or any qualified

person to police all mining activities.

Section 10

Regional Offices

There shall be as many regional offices in the country as

may

be

established

by

the

Secretary,

upon

the

recommendation of the Director.

Section 11

Processing of Applications

© 2018 Compiled by RGL

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