Primer on the People’s Mining Act of 2011

8/4/2019 Primer on the Peoples Mining Act of 2011

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A Primer

on the PeoPles

mining Bill(house B ill 4315)


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IntroductIonO Marc 6, 1995, te Piippie goermet

eacted Repubic Act (RA) 7942, or te Piippie

Miig Act o 1995, wic iberaized oreigcotro oer te domestic miig idustry.

RA 7942 was istituted aog wit poicies

iberaizig existig coutry cotros i oter

strategic ecoomic sectors.1

RA 7942 was opposed by may, icudig cii

society orgaizatios (CSOs), eirometaists

ad idigeous peopes (IPs). I 2004, te

Supreme Court (SC) decared it ucostitutioa

i te case La Bugal Blaan Tribal Association vs.

Ramos. But, cotroersiay ad suddey, te SC

reersed its ow decisio ater obbyig rom te

executie brac ad busiess groups.

RA 7942 dragged o or sixtee years. Former

Presidet Goria Macapaga-Arroyo armoized

oter aws ad sited state poicy rom actie

toerace to promotio o oreig ad arge-

scae miiga road tat Presidet Beigo

Aquio III pursued. As o Marc 29, 2011, te

goermet approed 785 miig agreemets,icudig six Fiacia ad ecica Assistace

Agreemets (FAA), 339 Miera Productio ad

Sarig Agreemets (MPSAs), 115 Exporatio

Permits (EP), 57 Miera Processig ad

Productio Permits, 212 Idustria Sad ad

Grae Permits, ad 56 ease cotracts. Tese

coer 1,042,531 ectares or 3% o te coutrys

tota ad area.

Impacts of the mInIng

LIberaLIzatIon poLIcy

Te Piippies as aroud 7.1 biio metric

tos (BM) o metaic miera reseres (suc

as god ad icke) ad 51 BM o o-metaic

deposits. Teir tota aue is estimated at

aroud $840 biio to $1 triio: te times te

coutrys gross domestic product ad immesey

arger ta its etire extera debt. I propery

deeoped, tese ast ad ric reseres ca

1

Tese were amog te structura adjustmet programspromoted b deeopmet aid istitutios suc as te WordBak, Iteratioa Moetar Fud, ad te Asia DeeopmetBak sice te 1980s.

Produced b

i cooperatio wit

DEFEnD PARIMOny AllIAnCE

ad

KAlIKASAn PEOPlES nEWORK

FOR hE EnvIROnMEn

A pubicatio o teCEC Researc, Educatio, ad Adocac Uit

Researc ad ext: lISA IO-APAnG

laout: R. JORDAn P. SAnOS

Poto credits: Kaikasa PnE

Pritig: SAn JOSE MAnGGAGAWA PRInInG PRESS

CEnER FOR EnvIROnMEnAl

COnCERnS-PhIlIPPInES

Address: no. 26 Matuugi Street, Baraga Cetra,

Diima, Quezo Cit 1101 PhIlIPPInES

Web: www.cecpis.org

Emai: [email protected]


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sustai a strog, se-reiat ad progressie

domestic ecoomy baacig agricuture ad

idustriaizatio ad breakig te existig cyce

o uderdeeopmet.

howeer, tis as ot bee te case wit te

coutrys curret miig poicy. Te Piippiemiig idustry as istoricay bee iberaized,

aid ope to oreig ad priate cotro witout

deeopig dowstream idustries, ad imited

to extractio, export o ores, ad depedece o

oreig capita, expertise ad tecoogy.

RA 7942 as depried peope o access to ad

ad oter atura resources, stuted te domestic

ecoomy, ad destroyed te eiromet. It

triggered some o te Piippies worst ecoogica

disasters, suc as te Marcopper (1996) ad

Rapu-Rapu (2005) mie spis. Its osses oom i

compariso to te idustrys promised ecoomic

gais. Miig areas are sti amog te poorest

commuities atiowide. It is resposibe or

uma rigts ioatios; may were kied, sued,

ad arassed or teir oppositio. It separated IP

commuitieste ast bastios o our precooia

eritagerom teir acestra ads troug

coercio, exigecy, or cousio.

towards a new phILIppIne

mInIng poLIcy

RA 7942 is usustaiabe rom a ecoomic,

ecoogica, cutura, ad uma rigts perspectie.

It must be scrapped to protect our ite miera

resources rom more puder ad depetio.

CSOs, commuities, ad oca goermets wat

a ew miig aw. Te First Peopes Coerece

o Miig o 9 May 2002 resoed to scrap RA7942 ad deeop te idustry troug atioa

idustriaizatio. I October 2002, te Dapita

Iitiatie aso adocated or ew egisatio.

I 2005, te Peopes Miig Poicy (PMP), a

ateratie poicy ramework, was drated ad

armed by Deend Patrimony toug atiowide

cosutatios wit peopes orgaizatios. loca

ocias ae aso set moratoriums o arge-scae

ad/or ope pit miig.

Tese grassroots iitiaties are caeges te

atioa goermet soud ace. house Bi

(hB) 4315 is a amagamatio o tese proposas

wic ae coectiey supported te wise

ad sustaiabe deeopmet o our miera

resources: a ramework wic upods socia

justice, respect or peopes rigts ad weare,

eirometa coseratio, ad te deese o

atioa soereigty ad patrimoy.

frequentLy asked questIons

1. What is the Peoples Mining Bill?

house Bi 4315 (An Act Re-Orienting the

Philippine Mining Industry, Ensuring the Highest

Industry Development Standards, and or

other Purposes) seeks to reoriet te curret

poicy o te owersip, maagemet ad

goerace o metaic ad o-metaic

mieras, quarry resources, ad gemstoes

towards a ratioa maer or atioa

idustriaizatio ad oca deeopmet.

It coers osore ad ofsore, arge-scae

ad sma-scae miig operatios ad teir

coseratio, exporatio, deeopmet,

utiizatio, processig ad trasportatio.

Mineral resourcesare defned in the bill as

all naturally-occurring inorganic substances

in solid, gas, liquid, or any intermediate state,excluding energy materials such as petroleum,

natural gas, radioactive materials, and

geothermal energy.

2. When did the bill rst appear in legislative

policy and what is its current status?

Te bi was ed i te 15t Cogress o Marc

2, 2011 by Reps. eddy A. Casio, neri Jaier

Comeares, Raae v. Mariao, luzimida C.

Iaga, Raymod v. Paatio, Emereciaa A.De Jesus, ad Atoio l. iio. It is currety

pedig wit te Committee o natura

Resources.

Bayan Muna Rep.

Teodoro A. Casino,

principal author

of HB 4315


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3. How is the bill diferent rom RA 7942 in

terms o ramework and principles?

It reerses te iberaizatio o te miig

idustry i RA 7942. It upods te Fiipio

peopes Costitutioa rigt to appropriatey

use, maage, ad ejoy te beets o te

coutrys miera resources, cosiderig teseas atioa patrimoy ad as irrepaceabe

ad o-reewabe weat (Sec. 6). It gies

te State te primary resposibiity oer

te idustrys maagemet, coseratio,

utiizatio, ad deeopmet ad cosiders

miig a sared resposibiity amog atioa

ad oca goermets, corporatios, ad

commuities (Sec.7).

It aims to deeop te Piippie miig

idustry witi te ramework o atioa

idustriaizatio ad agraria reorm, i

a ecoomicay-iabe, ecoogicay-soud

ad democratic maer. Miig idustry

deeopmet sa be based o a natioa

Idustriaizatio Program (nIP) ad Miig

Pa (MP), reorieted away rom market orces

ad extera iestmets ad supportig

a strategicay ad domesticay-paed

ecoomy.

3. How does the bill dene national

industrialization?

Witi te cotext o te miig idustry,

atioa idustriaizatio deotes te

primacy o miera productio, processig

ad distributio or te primary beet o

te domestic ecoomy. Tis icudes creatigaorabe coditios or Fiipio etrepreeurs

to egage i miig troug arious state-

priate agreemets tat sa esure tat

miig sa ep spur more domestic

iestmets, icrease agricutura productio

ad produce bot cosumer ad producer

goods ad mauactures (Sec. 14, mm).

4. How should mining develop under

national industrialization?

Te State soud strategicay ad systematicay

pursue te idustrys deeopmet accordig

to a natioa Idustriaizatio Program (nIP)

ad Miig Pa (MP), based o te oowig

priorities (Sec. 2 to 4):

Domestic eedsbased deeopmet to create

processig capacit or idustria metas

(suc as base metas, basic cemicas ad

petrocemicas) ad dowstream idustries

to geerate empomet ad our ow basic,

tabLe 1. comparIsIon of deveLopment frameworks

Mining Act of 1995 HB 4315 (Peoples Mining Bill)

State responsible for promoting the rational exploration,development, utilization, and conservation of mineralsthrough the combined efforts of government and the privatesector.

State leads mining industry development according to aNational Industrialization Program and Mining Plan thatconsiders medium and long-term needs; technologicaladvancement; the right to self-determination of IPsand Moros; and other accepted principles on human,labor, womens, and childrens rights and environmental

protection and preservation as embodied in existinginternational conventions the country is a signatory to.

Mining is to be revitalized through scal reforms, additional

benets and incentives for foreign investors. This has

left the industry mostly limited to extraction and exportof mineral ores; dependent on foreign capital, importedtechnology, and foreign expertise; and controlled by an elitefew.

Mining is to be developed within the framework of

1. nationalizing the industry towards self-sufciency, and

2. achieving genuine agrarian reform, the modernizationof its agricultural base and rural development. It seeksoptimum benet for the national and local economy and

public participation/ representation over projects.


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medium, ad ea idustries or cosumer,

itermediate ad capita goods (Sec. 10).

Agraria reorm ad agricutura

moderizatio to itegrate miera

deeopmet ad agricutura productio ad

proibit miig i areas specied or oodproductio.

Domestic capitaizatio o miig troug

participatio o Fiipio corporatios ad

itera udig or capita requiremets

rom re-caeig goermet budgets or

oreig debt paymets, miitary expeditures,

ad goermet sares rom te Maampaya

natura Gas Project.

Respect or idigeous peope's ad Moro

commuities rigts to se-determiatio.

Support or workers rigts ad occupatioa

saety stadards

Support or smascae miers ad teir

itegratio ito te atioa miig idustr

Demiitarizatio o miig operatios

by miitary, poice, priate security, adparamiitary groups.

Deeopmet o idustria kowedge,

tecoogy, ad metods to be more

appropriate, ecoomicay-eciet ad ess

eirometay-destructie.

Promotio, deeopmet, eorcemet, ad

moitorig o ecoogicay-soud miig

practices ad stadards

Reabiitatio o a miig-afected areas

ad abadoed mies.

5. How can mining under national

industrialization help modernize

agriculture?

Miig outputs ca be used produce tecoogy

or te productio, post-arest, ad processig

o raw materias ad agricutura goods.

Mieras ca be used or te productio o

mecaized toos ad tecoogy eeded to

moderize te coutrys agricutura idustry

ad meet idustria eeds. Tese metas eeded

to produce suc toos ad tecoogy sa be

prioritized ad cosidered as strategic miera

resources. Miig wi ot be pursued i prime

agricutura ads, prioritizig ood security ad

productio (Sec. 4, 11, 30).

6. How is the decision-making process in HB

4315 diferent rom RA 7942?

I RA 7942, decisiomakig or argescae

miig permits is amost excusie i te

ads o te Presidet, te DEnR, ad te

MGB. I hB 4315, te decisiomakig

process is expaded to te aected commuit,

stakeoders, ad oca goermet uits

troug te creatio o Mutisectora Miera

Coucis (MSMCs) resposibe or te approa

ad moitorig o miera agreemets.

Te bi arms te roe o te MGB as a

scietic researc istitutio uder te DEnR.

Te MGB shall establish a national and

regional ling and recording system and

mineral resource and rights management

database system, where mineral areas are

to be demarcated. It sa aso maitai aietory o watersed cotiuums ad a

aaiabe miera resources; ad ideticatio

o strategic miera resources or oca

idustries, agricutura moderizatio, ad

rura deeopmet (Sec. 19, 29, 30, 32).

Te MGB shall have exclusive and direct

responsibility or mining exploration

o bea o te State, wit preerece or

o-iasie exporatio metods i order tomiimize impacts (Sec. 21).

MSMCs will be created in all demarcated

mineral areas. Tey sa be coeed by te

MGB ad composed o represetaties rom

te DEnR, afected lGUs, commuities ad

oter stakeoders. MSMCs sa determie

i miig operatios sa be aowed or ot,

deiberate o proposed miig projects,

moitor te coduct o miig operatios, ad

estabis itera rues o procedure (Sec. 35).


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Uder hB 4315, te process or acceptig a

miig proposa is as oows (Sec. 44-49):

a. MSMC vote. Te MSMC wi decide i a

area wi be opeed to miig troug a two-tirds ote.2

b.Call or proposals. I te MSMC otes

to ope a area to miig, te MGB wi

prepare iormatio seets ad issue a ca

or proposas based o te MP.

c. MGB pre-screening and endorsement.

Te MGB wi pre-scree a proposas based

o te nIP, idetiy te top tree proposasad recommed tese to te MSMC or

deiberatio.

d. MSMC deliberations with LGUs

and IPs/ICCs. lGUs sa coduct

madatory pubic earigs witi afected

commuities ad require te approa o

2 Te MSMC sa cosider te MGB exporatioreport, existece o dowstream idustries, potetiaeirometa, pubic eat, ad cutura resources

ad impacts, cofict ad risk assessmets, potetiaecoomic beets, existig ad ateratie ad uses adte areas carrig capacit (Sec. 37).

te afected sanggunians ad a majority

ote o te afected lGUs (Sec. 47).

Separate deiberatios wi be coducted or

afected IPs/ICCs usig teir ow systems

ad processes, ree rom ay exteramaipuatio, itererece, coercio ad

te ike.

e. MSMC nal deliberations. Te MSMC

wi coose amog te top tree proposas,

cosiderig wic is most acceptabe to its

ow socio-ecoomic, eirometa, ad

cutura program.

. Public announcement. Te MSMCorwards its decisio to te MGB, wic wi

pubis te accepted proposa ad issue a

permit ater six weeks i it is ot cotested.

For sma-scae miig, hB 4315 recogizes

te appicabiity o RA 7076 or te Peoples

Small-Scale Mining Act o 1991. It, oweer,

expads te compositio o te Proicia/

City Miig Reguatory Board (Sec. 25

o RA 7076) to icude at east two more

represetaties rom cii society. Oy oe

nGO represetatie was preiousy aowed

tabLe 2. comparIson of decIsIon-makIng processes on mInIng


Emphasis on Presidential prerogative. Decisions overmining permits highly concentrated in the hands of thePresident, upon recommendation of the DENR Secretary.

Based on strategic and local plans and consultations.Industry development is based on a NationalIndustrialization Program and Mining Plan; decision-

making is centralized in Multi-Sectoral Mineral Councils

composed of representatives from the government anfaffected community.

All areas assumed open to mining unless declaredclosed by the Government

All areas are closed to mining unless declaredopen by the MSMCs, through a two-thirds vote.

Role of govt agencies. DENR has the authority toenter into mineral agreements. MGB in charge of theadministration and disposition of mineral lands andresources, researches and exploration surveys. MGB

Director recommends to the DENR Secretary the grantingof mining agreements to qualied persons.

MGB is a scientic research institution under the DENR

and a central repository of information on miningoperations. It is responsible for resource database,inventory, and prioritization, mining exploration on behalf of

the State, public Information, and pre-screening of miningproposals.


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uder RA 7076. A quarryig permits sa

require te recommedatio o te MSMC

prior to te a approa o te proicia

goermet uit (Sec. 81).

7. How does HB 4315 uphold and protect our

national patrimony?

a. It allows only mining permits which

Filipinos can derive the most benet

rom and which will support the

strategic and prudent extraction o

minerals needed or industrialization.

I terms o arge-scae miig, it scraps te

cotroersia FAA ad EPs. It retais oter

permits i RA 7942 but cosideraby reduces

teir scope ad rigts. It requires a striget

screeig process to secure coset ad

approe eirometa ad socia impact

pas. Te tree arge-scae miig permits

aowed are:

Mineral Production Sharing Agreement

te cotractor is grated te excusie rigt

to coduct miig ad ae sares i te

gross output, wie proidig acig,

tecoogy, ad maagemet.

Co-production Agreement (CA)

agreemet betwee te goermet ad

te cotractor were te goermet sa

proide iputs to miig operatios oterta te miera resource.

Joint Venture Agreement (JVA)

a joit-eture compay is orgaized by te

goermet ad te cotractor wit bot

parties aig equity sares; goermet is

etited to a sare i te gross output.

large-scae miig permit areas sa ot

exceed 500 ectares. no oe sa be awarded

more ta 750 ectares i ay watersed

area. erms sa ot exceed 15 years ad

icude reabiitatio. Permits ca ot be

exteded witout just cause (suc as war

or istaces arisig rom orce majuere).

Tey are o-traserabe; ay cages i

corporate owersip or acig structure

soud be reported (Sec. 51-52, 61).

tabLe 3. comparIson of major mInIng permIt types wIth ra 7942

Permit Type Mining Act of 1995 Peoples Mining Bill

Exploration

Permit (EP)

Duration of operations: Two years, maximum of eight years

Maximum area: 32,000 ha. onshore, 81,000 ha. offshoreEconomic priveleges: 100% repatriation of capital and prots; exemption

from income tax (6 years), export tax (10 years), and import tax;employment of foreign nationals allowed, right to transfer or sell miningpermit, condentiality rights

Political rights: timber rights, water rights, easement rights, entry intoprivate lands and concession areas

None

The MGB has the

exclusive right andresponsibility to conductmining explorationthroughout the country.

Financial andTechnical

Assistance

Agreement

Duration of operations: 25 years, renewable up to 50 yearsMaximum area: 81,000 ha. onshore, 324,000 ha. offshoreCapitalization: 100% foreign ($50 million minumum investment)Economic priveleges and political rights: Same as EP

None

FTAA is deleted.

MPSA

CA

JVA

Duration of operations: 25 years, renewable up to 50 yearsMaximum area: 16,200 ha. onshore, 40,500 ha. offshoreCapitalization: 60% Filipino, 40% foreignEconomic priveleges and political rights: Same as EP

Duration of operations:Up to 15 yearsMaximum area: Up to500 hectaresCapitalization: 60%Filipino, 40% foreign

Reerences: HB 4315, RA 7942


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Small scale mining permits (SSMPs) sa

o be grated to idiiduas ad cooperaties.

Te term or permits sa be tree (3) ears,

extedabe to a maximum o tee (15)

ears (Sec. 63). largescae miig wi ot be

aowed i smascae miig areas witout te

coset o te aected smascae miers.

Quarrying permitso priate ads

may gie to quaied Fiipios, except

i acestra domais ad pubic ads

or buidig ad costructio. A miera

agreemet is required or te extractio o

sad or its metaic cotets (magetite)

rom riers/soreies, ad arge-

scae quarryig ioig cemet raw

materias, marbe, graite, sad, grae ad

costructio aggregates. Permits sa ot

be grated or areas coered by a miera

agreemet. Permits sa be imited to e

ectares ad e years, reewabe up to 20

years (Sec. 75-80).

b. It sets stringent terms or oreign

participation in the Philippine mining

industry.

Only Filipino corporations shall be allowed

to hold permits. It removes EPs, as the

MGB is tasked to oversee and conduct all

exploration activities. It also prohibits FTAAs

or other similar agreements where the right to

explore, develop and use mineral resources is

awarded to foreign entities (Sec. 41).

Foreig rms are aowed to iest

i exceptioa cases idetied by te

goermet ad based o te nIP ad te

coutrys capabiity ad capacity. Tey wi

be required to udergo rigorous screeig,

reguatios ad a madatory program or

tecoogy traser ad equity sares.

Capita accumuatio ad reiestmet

i te coutry is ecouraged oer prot

repatriatio. Foreig rms wit a bad track

record ere are baed.

c. It ensures that mining rms will pay

taxes, ees, and shares to governments

and communities.

RA 7942 as a egt ist o tax exemptios,

iceties, ad iestmet guaratees or

miig iestors. Tese seere imited te

tabLe 4. quarryIng permIt types aLLowed

Quarry Permit Type Coverage Grantee Authority Maximum Area

1. Commercial Sand

and Gravel Permit

Sand, gravel, or other other loose

or unconsolidated materials outside

ancestral domains used in their natural

state

Any qualied person ProvincialGovernor

Not exceedingve hectares

2. Industrial Sand

and Gravel Permit

Sand and gravel and other loose orunconsolidated materials outsideancestral domains needing mechanicalprocessing

MGB Not exceedingve hectares for

3 years up totwenty years.

3. Exclusive Sandand Gravel Permit

Sand and gravel or other loose orunconsolidated materials from publiclands for his own (not commercial) use

ProvincialGovernor

4. State Gratuitous

Permit

Sand, gravel, quarry or looseunconsolidated materials in theconstruction of public infrastructure

Any government entity ProvincialGovernor

Not more thantwo hectares;same lenth withconstruction

5. Guano Permit Loose unconsolidated guano and otherorganic fertilizer materials

Any qualied Filipino Specic caves

and/or conned

sites

6. Gemstone Permit Loose stones useful as gemstones Rivers, othersites


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sares o goermet ad oca commuities ad

aowed oreig miig iestors to practica

sipo most o teir prots out o te coutr.

O te oter ad, hB 4315 requires te

pamet o requisite taxes, ees, ad sares o

goermet ad aected commuities rommiig reeues ad te domestic iestmet

o miig capitaizatio ad ace. Tis

esures tat te goermet ad commuities

are proper ad adequate compesated ad

tat miig reeues are directed towards

supportig te oca ecoom (Sec. 9099).

8. How does HB 4315 uphold respect or

human rights and the welare o the social

sectors and stakeholders afected by

mining projects?

a. Upholding workers rights and

occupational saety.

Te bi respects workers rigts to orgaize

ad orm associatios, to coectie

bargaiig ad to strike. It requires tat

job security, adequate wages, beets, ad

sae workig coditios or mie workers

be esured. A projects sa stricty compy

wit rues ad reguatios o mies saetyad proide saeguards or te eat ad

we-beig o workers. Tese icude RA

7305 or te Maga Carta o Pubic heat

Workers; proibitio o orced ad cid

abor; ad superisor-worker ratios o

miig egieer ad oe orema or eery

50 workers empoyed. Goermet ocias

may coduct saety ad abor coditios

ispectios. Te MGB may issue orders

to remedy errig practices ad susped

operatios posig immiet dager to ie or

property. rade uio represetaties sa

ae isitoria rigts (Sec. 4, 100-106).

tabLe 5. comparIson of taxes, fees and benefIt sharIng


Limited government share. Government share islimited to excise taxes of 2% required by law.

Government and community shares increased: a.) Nationalgovernment share, b.) LGU share, c.) Indigenous culturalcommunities royalty, d.) Scientic Research and Development

Fund, e.) Legal Services Fund, f.) Mine Wastes and Tailings Fee

Limited taxes and fees, including semi-annual minewastes and occupation fees. Mining permits enjoy6 years income tax exemption, 10 years export taxexemption, and import tax exemption.

Taxes and fees are increased to include, but are not limitedto, the following: semi-annual Mine Wastes and Tailings fees,

contractors income tax, customs, duties and fees on importedcapital equipment, value-added tax on imported goods andservices, withholding tax on interest payments to foreign loansand on dividends to foreign stockholders, documentary stampstax, capital gains tax, excise tax on minerals, local business tax,real property tax, community tax, occupation fees, registration,accreditation and permit fees, and water usage fees.

Generous fscal and non-fscal incentives. Through

the Omnibus Investments Code of 1987, contractorsenjoy incentives for Pollution Control Devices, IncomeTax-Carry Forward of Losses, Income Tax-Accelerated

Depreciation, Investment Guarantees.

Incentivesshall be given for the use of pollution control ormitigation devices.

Investment guarantees. Includes (a) Repatriation ofinvestments, (b) Remittance of earnings, (c) Foreignloans/contracts,(d) Freedom from expropriation, (e)Requisition of investment and (f) Condentiality

All large-scale mining contractors required to deposit theircapital investment and prots in Philippine banks or nancial

institutions. Those with foreign nancial assistance are required

to fully disclose all prots, and allowed to repatriate prots up

to 50% of the total posted annually. Full repatriation of prots

allowed one year after mining and rehabilitation ends.


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10

b. Requiring the consent o indigenous

peoples at all stages o mining.

Free, Iormed ad Prior Coset (FPIC)

rom ICCs ad IPs is required or a types

ad stages o miig projects i teir

acestra ads ad domais. Permit oders

sa respect ad compy wit customaryaws, practices, ad processes o afected

ICCs/IPs. FPIC or use o water resources

witi IP ads (icudig tose witi te

same groudwater etwork ad dowstream

users) is aso be required prior to te

gratig o water permits by te nWRB (Sec.

65, 71, 118, 133).

c. Promoting livelihood and technology

support or small-scale mining

communities.

It seeks to stregte sma-scae

miig commuities by requirig FPIC,

eirometa/socia impact pas, ad

researc ad ieiood support. Tis

ca reduce depedece o backward

tecoogies, middeme/aciers, ad

export o ores. It gie tem ieiood

support, icudig access to mieras

markets ad acig, aciitatio o

partersips wit miig compaies,cotractors (or processig ad recycig)

ad SSM cooperaties. Te Bagko Setra

g Piipias sa esure tat buyig statios

acquire god rom sma-scae traders at

preaiig god market prices ad excage

rates (Sec. 69-70).

d. Penalizing human rights violations

committed in relation to mining.

Uike RA 7942, te bi expicityempasizes te uma rigts obigatios

ad strict iabiity o miig corporatios

(Sec. 128, 134). learig rom te essos

o te past, te bi recogizes as ioatios

o uma rigts extrajudicia kiigs,

torture, ioutary disappearace, orcibe

dispacemet o popuatios, settig up

o ceckpoits ad impositio o to ees

wic impede te reedom o moemet i

miera areas, depriatio o ood ad water

sources, ote-buyig ad bribery or te

purpose o securig coset or edorsemet

or te miig project, ad oter simiar

acts. Te empoymet o paramiitary groups

or miig is proibited (Sec 130).

e. Reducing the incidence o harassment

suits and strengthening public litigation

Te bi attempts to eimiate harassmentsuits, kow as Strategic lega Actios

agaist Pubic Participatio3 (SlAPPs),

by giig courts tirty days to determie

weter it is a SlAPP or ot ad moe or its

dismissa.

Coersey, it supports peopes capacity to

pursue itigatio or ioatios o te aw

by 1.) aowig citizes to e cii, crimia

ad admiistratie suits ad 2.) recogizig

te awsuits ed ater te termiatio o

cotracts (Sec. 125). Idigets suits are

exempted rom ee paymets ad proided

wit ega support (Sec. 131-136).

. Requiring consultations and monitoring

with all afected communities

Madatory cosutatios wit afected

commuities ad coset wit te

awu occupats o ads or miig

sa be secured i a pases. A muti-partite moitorig team wi moitor

compiace wit miig permits ad teir

eirometa pas ad coduct ocuar

ispectios, (Sec. 55-56, 59, 64).

g. Supporting the development o

communities, and domestic science, and

technology

Cotractors sa support commuity

deeopmet projects cosistet wit ocadeeopmet pas ad separate rom

teir royaty paymet to IPs/ICCs ad

lGUs. Priority is gie to te empoymet

o Fiipio abor, experts ad traiig o

oca commuity members ad te use o

idigeous goods, serices ad tecoogies

i a stages o miig empoymet. (Sec.

86-88).

3 SlAPP is a ega actio, weter cii, crimia oradmiistratie, ed to arass, ex, exert ega actio or stife

ega recourses o citizes compaiig agaist ioatios o tisAct or eorcig te proisios o te Act, or exercisig teirreedom o assemb or rigt o pubic participatio.


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9. How does HB 4315 ensure environmental

protection?

a. No mining areas

Miig is baed i eirometacritica

areas, icudig areas uerabe to acid mie

draiage; critica waterseds ad abitats;ke biodiersit areas, geoazard ad cimate

disasterproe areas; sma isad ecosstems;

od growt, atura, primar, magroe, ad

moss orests, watersed orest reseres,

wideress areas, atioa parks, protectio/

proicia/muicipa orests, parks, greebets,

game reuge, bird sactuaries, buer zoes, ad

Paawa proice uder RA 7611.

It is baed i residetial or agricultural productio

areas, suc as desely-populated or prime

agricultural lads; agraria reorm areas; traditioal

swidde arms, utig grouds; arceological,

istorical, cultural sites ad property uder RA

10066; areas ear public or private buildigs, ad

irastructure projects; military or govermet

reservatios4; ig cofict areas (Sec. 37).

b. Environmental impact assessment and

mitigation plans

A evirometal ecoomic audit or resourcevaluatio o te area, sall be coducted wit a

multisectoral group o experts ad stakeolders

ad made publicly available. hB 4315 requires

cotractors to submit a Evirometal ad Social

Impact Assessmet ad Mitigatio Pla (ESIAMP)

ad secure a Evirometal ad Social Impact

Compliace Certicate (ESICC) beore issuig ay

large or small-scale permit (Sec. 37, 45, 50, ad 66).

c. Precautionary measures and rehabilitationfunding

Te bi upods te precautioar pricipe

ad requires cotractors to pursue

reabiitatio , buid taiigs impoudmets

ad dams awa rom watersed draiage

areas accordig to iteratioa stadards;

impemet te Cea Water Act ad Cea

Air Act proisios o waste dumpig, use

cemicas or reagets to miimize destructio,

ad presere remoed topsoi or oter uses.

4 Except upo writte coset o te goermet

agecy ad/or priate etity cocered

Te bi upods te pouter pas pricipe,

b requirig cotractors to pa or damage

reabiitatio troug a eirometa

isurace cotract, Caamit ad huma Rigts

Protectio Fud, Perormace Bod, ad Mie

Reabiitatio Fud (Sec.107117).

d. Priority for peoples access to clean water

Permit oders ejoed water rigts uder RA

7942, ote diertig reswater awa rom

commuities ad ood productio. hB 4315

prioritizes water or domestic, muicipa, ad

agricutura purposes. Existig uses o water i te

aected area sa be studied ad te coset o a

users i te same groudwater ad dowstream

etwork required. Cotractors sa recce water

ad treat tem to approximate baseie water

quait prior to teir reease (Sec. 118120).

e. Mitigation measures for acid mine drainage

(AMD)

AMD occurs we pouted ad igacidic

water fows or seeps out rom od miig areas.

Tis draiage ma be cotamiated wit toxic

ea metas wic ca aect te peopes

eat ad te surroudig ecoog. Te bi

aims to mitigate AMD b baig te use oacidgeeratig waste rock or irastructure;

estabisig a predictio ad moitorig sstem

or potetia AMD sites; aoidig waterwas i te

paig o miig irastructure; ad remiig

to recoer remaiig mieras (Sec. 121124).

f. Research and technology support for small-

scale mining

Researc & deeopmet or appropriate, cea,

eciet, cuturasesitie ad idustriaiabe tecoogies sa be pursued to mitigate

eirometa ad eat eects o mercur

ad caide use ad eetua repace curret

azardous practices i smascae miig (Sec. 67).

g. Rehabilitation of mining areas

Cotractors are required to coduct progressive

reabilitatio activities i or at least ve years. no

clearace or witdrawal sall be issued uless

tese are implemeted.Te Reabilitatio Fud

ad Perormace Bod will be used i te mie is

abadoed witout reabilitatio (Sec. 52, 110-111).


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10. What are the grounds for cancelling mineral agreements and other penal provisions?

Table . Grounds for cancellaTion of mininG permiTs


Grounds are only limited toadministrative violations,

such as late or non-ling ofregistration, violation of permitterms, and non-payment oftaxes and fees. The law does

recognize human rightsviolations of corporations as aground for cancellation.

Grounds include 1.) violations of any provision of the Act, 2.) non-payment of taxes; 3.) bribery,use of force, intimidation, threat, coercion of public ofcials and communities; 4.) acts creating or

contributing to conicts; and the like, and 5.) failure to initiate mining operations within two years.

Grounds for immediate cancellation are 1.) human rights violations by the contractor or any

of its agents; 2.) use of paramilitary forces to protect mining operations, and 3.) violations of

environmental provisions, which shall also require compensation and rehabilitation (Sec. 129-130).

Permit holders found guilty are perpetually banned from participating directly or indirectly in mining

operations in the Philippines. Government ofcials guilty of administrative violations shall be

removed from ofce and perpetually disqualied from holding any government post (Sec. 151-152).

Table . comparision of penal provisions and fines

Penal provisions and penalties/ fnes under the Peoples Mining Bill Mining Act of 1995

False statements Maximum ne of P100,000 Maximum ne of P10,000

Illegal exploration Maximum ne of P5,000,000 Maximum ne of P50,000

Theft of minerals Imprisonment from six months to six years and/or ne ranging

from P100,000 to P1,000,000 plus damagesImprisonment (six months to sixyears) and/or ne of P10,000 to

P20,000, damages

Destruction of structures Imprisoned for up to ve (5) years and damages

Mines arson Punishment, upon conviction, according to the Revised Penal Code and damages

Willful damage to a mine Imprisonment up to ve (5) years and damages

Illegal obstruction to

permittees or contractors

Fine not exceeding P5,000 Fine not exceeding P5,000.00

and/or imprisionmentVitiation of FPIC For non-government entities: Imprisonment (six years, one day

to ten years), minimum ne of two million pesos

For government ofcials: Imprisonment from (8 years, one day to 12

years; minimum ne of four million pesos; prohibition from assuming

public ofce; disqualication from other government benets

None

Human rights violations Imprisonment from 10-14 years; ne of at least ve millionpesos and indemnication for the victims

Abandonment Perpetual ban or disqualication from direct/indirect

involvement in mining operations

Violations of Anti-

Dummy Law

Fine of ve million pesos and a perpetual ban in the mining

industry

Violations to the

Amendment to Sec. 27 of

the Small-scale Mining Act

Imprisionment of 6 years and one day to 12 years,conscaton of equipment, tools, instruments, closure or

suspension of mining activities, permit revocation

Reerences: HB 4315 Sec. 138-150; RA 7942 Chapter XIX

11. What are the bills transitory provisions?Te bi proposes a moratorium o a miig actiities uder a systems are i pace or te Acts

proper impemetatio ad deems caceed a existig miig permits, iceses, ad agreemets.

A reiew o te curret miera ad cassicatio wi be pursued; curret cassicatios ad te

Presidets power to decare miera reseratios redered iefectie. Te State sa be resposibe

or extedig aid to mie workers ad sma-scae miers ad teir amiies wo sa be temporariy

dispaced by te moratorium wie te ew poicy ad mecaisms are beig put ito pace.

Documents

Primer on the People’s Mining Act of 2011