Article 45p. 45

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

k. Requiring the proponent to effectively use appropriate

anti-pollution technology and facilities to protect the

environment and to restore or rehabilitate mined out

areas and other areas affected by mine tailings and other

forms of pollution or destruction;

l. The contractors shall furnish the Government records

of geologic, accounting, and other relevant data for its

mining operations, and that book of accounts and

records shall be open for inspection by the government;

m. Requiring the proponent to dispose of the minerals

and byproducts produced under a financial or technical

assistance agreement at the highest price and more

advantageous terms and conditions as provided for

under the rules and regulations of this Act;

n. Provide for consultation and arbitration with respect

to the interpretation and implementation of the terms

and conditions of the agreements; and

o. Such other terms and conditions consistent with the

Constitution and with this Act as the Secretary may

deem to be for the best interest of the State and the

welfare of the Filipino people.

Section 36

Negotiations

A financial or technical assistance agreement shall be

negotiated

by

the

Department

and

executed

and

approved by the President. The President shall notify

Congress

of

all

financial

or

technical

assistance

agreements within thirty (30) days from execution and

approval thereof.

Section 37

Filing and Evaluation of Financial or Technical Assistance

Agreement Proposals

All financial or technical assistance agreement proposals

shall be filed with the Bureau after payment of the

required processing fees. If the proposal is found to be

sufficient and meritorious in form and substance after

evaluation, it shall be recorded with the appropriate

government agency to give the proponent the prior

right to the area covered by such proposal: Provided,

That existing mineral agreements, financial or technical

assistance agreements and other mining rights are not

impaired

or prejudiced thereby. The Secretary shall

recommend its approval to the President.

Section 38

Term of Financial or Technical Assistance Agreement

A financial or technical assistance agreement shall have

a term not exceeding twenty-five (25) years to start from

the execution thereof, renewable for not more than

twenty-five (25) years under such terms and conditions

as may be provided by law.

Section 39

Option to Convert into a Mineral Agreement

The contractor has the option to convert the financial or

technical assistance agreement to a mineral agreement

at any time during the term of the agreement, if the

economic viability of the contract area is found to be

inadequate to justify large-scale mining operations, after

proper notice to the Secretary as provided for under the

implementing rules and regulations: Provided, That the

mineral agreement shall only be for the remaining

period of the original agreement.

In the case of a foreign contractor, it shall reduce its

equity

to

forty

percent

(40%)

in

the

corporation,

partnership,

association,

or

cooperative.

Upon

compliance with this requirement by the contractor, the

Secretary shall approve the conversion and execute the

mineral production-sharing agreement.

Section 40

Assignment/Transfer

A financial or technical assistance agreement may be

assigned or transferred, in whole or in part, to a qualified

person subject to the prior approval of the President:

Provided, That the President shall notify Congress of

every

financial

or

technical

assistance

agreement

assigned or converted in accordance with this provision

within thirty (30) days from the date of the approval

thereof.

Section 41

Withdrawal

from

Financial

or

Technical

Assistance

Agreement

The contractor shall manifest in writing to the Secretary

his intention to withdraw from the agreement, if in his

judgment the mining project is no longer economically

feasible, even after he has exerted reasonable diligence

to remedy the cause or the situation. The Secretary may

accept the withdrawal: Provided, That the contractor has

complied or satisfied all his financial, fiscal or legal

obligations.

CHAPTER VII Small-scale Mining

Section 42

Small-scale Mining

Small-scale mining shall continue to be governed by

Republic Act No. 7076 and other pertinent laws.

CHAPTER VIII Quarry Resources

Section 43

Quarry Permit

Any qualified person may apply to the provincial/city

mining

regulatory

board

for

a

quarry

permit

on

privately-owned lands and/or public lands for building

and

construction

materials

such

as

marble,

basalt,

andesite, conglomerate, tuff, adobe, granite, gabbro,

serpentine, inset filling materials, clay for ceramic tiles

and building bricks, pumice, perlite and other similar

materials that are extracted by quarrying from the

ground. The provincial governor shall grant the permit

after

the

applicant

has

complied

with

all

the

requirements as prescribed by the rules and regulations.

The maximum area which a qualified person may hold at

any one time shall be five hectares (5 has.): Provided,

That in large-scale quarry operations involving cement

raw materials, marble, granite, sand and gravel and

construction aggregates, a qualified person and the

government may enter into a mineral agreement as

defined herein.

A quarry permit shall have a term of five (5) years,

renewable for like periods but not to exceed a total term

of twenty-five (25) years. No quarry permit shall be

issued or granted on any area covered by a mineral

agreement

or

financial

or

technical

assistance

agreement.

Section 44

Quarry Fee and Taxes

A permittee shall, during the term of his permit, pay a

quarry fee as provided for under the implementing rules

© 2018 Compiled by RGL

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