Article 44p. 44

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

All proposed mineral agreements shall be filed in the

region where the areas of interest are located, except in

mineral

reservations

which

shall

be

filed

with the

Bureau.

The filing of a proposal for a mineral agreement shall

give the proponent the prior right to areas covered by

the same. The proposed mineral agreement will be

approved by the Secretary and copies thereof shall be

submitted to the President. Thereafter, the President

shall provide a list to Congress of every approved mineral

agreement within thirty (30) days from its approval by

the Secretary.

Section 30

Assignment/Transfer

Any assignment or transfer of rights and obligations

under any mineral agreement except a financial or

technical assistance agreement shall be subject to the

prior approval of the Secretary. Such assignment or

transfer shall be deemed automatically approved if not

acted upon by the Secretary within thirty (30) working

days

from

official

receipt

thereof,

unless

patently

unconstitutional or illegal.

Section 31

Withdrawal from Mineral Agreements

The contractor may, by giving due notice at any time

during

the

term

of

the

agreement,

apply

for

the

cancellation of the mineral agreement due to causes

which, in the opinion of the contractor, make continued

mining operations no longer feasible or viable. The

Secretary shall consider the notice and issue its decision

within a period of thirty (30) days: Provided, That the

contractor has met all its financial, fiscal and legal

obligations.

Section 32

Terms

Mineral agreements shall have a term not exceeding

twenty-five (25) years to start from the date of execution

thereof, and renewable for another term not exceeding

twenty-five

(25)

years

under

the

same

terms

and

conditions

thereof,

without

prejudice

to

changes

mutually agreed upon by the parties. After the renewal

period, the operation of the mine may be undertaken by

the Government or through a contractor. The contract

for the operation of a mine shall be awarded to the

highest bidder in a public bidding after due publication

of the notice thereof: Provided, That the contractor shall

have

the

right

to

equal

the

highest

bid

upon

reimbursement of all reasonable expenses of the highest

bidder.

CHAPTER

VI

Financial

or

Technical

Assistance Agreement

Section 33

Eligibility

Any

qualified

person

with

technical

and

financial

capability

to

undertake

large-scale

exploration,

development, and utilization of mineral resources in the

Philippines

may

enter

into

a financial or technical

assistance agreement directly with the Government

through the Department.

Section 34

Maximum Contract Area

The maximum contract area that may be granted per

qualified person, subject to relinquishment shall be:

a. 1,000 meridional blocks onshore;

b. 4,000 meridional blocks offshore; or

c. Combinations of a and b provided that it shall not

exceed the maximum limits for onshore and offshore

areas.

Section 35

Terms and Conditions

The following terms, conditions, and warranties shall be

incorporated in the financial or technical assistance

agreement, to wit:

a. A firm commitment in the form of a sworn statement,

of

an

amount

corresponding

to

the

expenditure

obligation that will be invested in the contract area:

Provided, That such amount shall be subject to changes

as may be provided for in the rules and regulations of

this Act;

b. A financial guarantee bond shall be posted in favor of

the

Government

in

an

amount

equivalent

to

the

expenditure obligation of the applicant for any year;

c. Submission of proof of technical competence, such as,

but not limited to, its track record in mineral resource

exploration,

development,

and

utilization;

details

of

technology to be employed in the proposed operation;

and details of technical personnel to undertake the

operation;

d. Representations and warranties that the applicant has

all the qualifications and none of the disqualifications for

entering into the agreement;

e. Representations and warranties that the contractor

has or has access to all the financing, managerial and

technical expertise and, if circumstances demand, the

technology required to promptly and effectively carry

out

the

objectives

of

the

agreement

with

the

understanding to timely deploy these resources under

its supervision pursuant to the periodic work programs

and

related

budgets,

when

proper,

providing

an

exploration period up to two (2) years, extendible for

another two (2) years but subject to annual review by the

Secretary in accordance with the implementing rules

and regulations of this Act, and further, subject to the

relinquishment obligations;

f.

Representations

and

warranties

that,

except

for

payments

for

dispositions

for

its

equity,

foreign

investments in local enterprises which are qualified for

repatriation, and local supplier's credits and such other

generally accepted and permissible financial schemes

for

raising

funds

for

valid

business

purposes,

the

contractor shall not raise any form of financing from

domestic sources of funds, whether in Philippine or

foreign currency, for conducting its mining operations

for and in the contract area;

g.

The

mining

operations

shall

be

conducted

in

accordance

with the provisions of this Act and its

implementing rules and regulations;

h.

Work

programs

and

minimum

expenditures

commitments;

i. Preferential use of local goods and services to the

maximum extent practicable;

j. A stipulation that the contractors are obligated to give

preference

to

Filipinos

in

all

types

of

mining

employment

for which they are qualified and that

technology shall be transferred to the same;

© 2018 Compiled by RGL

44 of 244