Article 43p. 43

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

2.

for

partnerships,

corporations,

cooperatives,

or

associations, four hundred (400) blocks.

c. Offshore, beyond five hundred meters (500m) from

the mean low tide level:

1. for individuals, one hundred (100) blocks; and

2.

for

partnerships,

corporations,

cooperatives,

or

associations, one thousand (1,000) blocks.

Section 23

Rights and Obligations of the Permittee

An exploration permit shall grant to the permittee, his

heirs or successors-in-interest, the right to enter, occupy

and explore the area: Provided, That if private or other

parties are affected, the permittee shall first discuss with

the said parties the extent, necessity, and manner of his

entry,

occupation

and

exploration

and

in

case

of

disagreement, a panel of arbitrators shall resolve the

conflict or disagreement.

The permittee shall undertake an exploration work on

the area as specified by its permit based on an approved

work program.

Any expenditure in excess of the yearly budget of the

approved work program may be carried forward and

credited to the succeeding years covering the duration

of the permit. The Secretary, through the Director, shall

promulgate rules and regulations governing the terms

and conditions of the permit.

The

permittee may apply for a mineral production

sharing

agreement,

joint

venture

agreement,

co-production

agreement

or

financial

or

technical

assistance

agreement

over

the

permit

area,

which

application shall be granted if the permittee meets the

necessary qualifications and the terms and conditions of

any such agreement: Provided, That the exploration

period

covered

by

the

exploration

permit

shall be

included as part of the exploration period of the mineral

agreement

or

financial

or

technical

assistance

agreement.

Section 24

Declaration of Mining Project Feasibility

A holder of an exploration permit who determines the

commercial viability of a project covering a mining area

may, within the term of the permit, file with the Bureau

a declaration of mining project feasibility accompanied

by a work program for development. The approval of the

mining project feasibility and compliance with other

requirements provided in this Act shall entitle the holder

to an exclusive right to a mineral production sharing

agreement or other mineral agreements or financial or

technical assistance agreement.

Section 25

Transfer or Assignment

An exploration permit may be transferred or assigned to

a

qualified

person

subject

to

the

approval

of the

Secretary upon the recommendation of the Director.

CHAPTER V Mineral Agreements

Section 26

Modes of Mineral Agreement

For purposes of mining operations, a mineral agreement

may take the following forms as herein defined:

a.

Mineral

production

sharing

agreement

is

an

agreement

where

the

Government

grants

to

the

contractor

the

exclusive

right

to

conduct

mining

operations within a contract area and shares in the gross

output.

The

contractor

shall

provide

the financing,

technology, management and personnel necessary for

the implementation of this agreement.

b. Co-production agreement is an agreement between

the

Government

and

the

contractor

wherein

the

Government

shall

provide

inputs

to

the

mining

operations other than the mineral resource.

c. Joint venture agreement is an agreement where a

joint-venture company is organized by the Government

and the contractor with both parties having equity

shares. Aside from earnings in equity, the Government

shall be entitled to a share in the gross output.

A mineral agreement shall grant to the contractor the

exclusive right to conduct mining operations and to

extract all mineral resources found in the contract area.

In addition, the contractor may be allowed to convert his

agreement into any of the modes of mineral agreements

or financial or technical assistance agreement covering

the remaining period of the original agreement subject

to the approval of the Secretary.

Section 27

Eligibility

A qualified person may enter into any of the three (3)

modes of mineral agreement with the government for

the exploration, development and utilization of mineral

resources: Provided, That in case the applicant has been

in the mining industry for any length of time, he should

possess a satisfactory environmental track record as

determined by the Mines and Geosciences Bureau and

in consultation with the Environmental Management

Bureau of the Department.

Section 28

Maximum Areas for Mineral Agreement

The maximum area that a qualified person may hold at

any time under a mineral agreement shall be:

a. Onshore, in any one province

1. for individuals, ten (10) blocks; and

2.

for

partnerships,

cooperatives,

associations,

or

corporations, one hundred (100) blocks.

b. Onshore, in the entire Philippines

1. for individuals, twenty (20) blocks; and

2.

for

partnerships,

cooperatives,

associations,

or

corporations, two hundred (200) blocks.

c. Offshore, in the entire Philippines

1. for individuals fifty (50) blocks;

2.

for

partnerships,

cooperatives,

associations,

or

corporations, five hundred (500) blocks; and

3. for the exclusive economic zone, a larger area to be

determined by the Secretary.

The maximum areas mentioned above that a contractor

may hold under a mineral agreement shall not include

mining/quarry

areas

under

operating

agreements

between

the

contractor

and

a

claimowner/lessee/permittee/licensee

entered

into

under Presidential Decree No. 463.

Section 29

Filing and Approval of Mineral Agreements

© 2018 Compiled by RGL

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