DECLARATION OF MINAHANG BAYAN AND AWARDING OF SSM CONTRACTS

RA 7076 AN ACT CREATING A PEOPLE’S SMALL SCALE MINING PROGRAM AND FOR OTHER PURPOSES - “PEOPLE’S SMALL-SCALE MINING ACT OF 1991” MAY 30, 1991

DECLARATION OF POLICY It is hereby declared the policy of the State to promote, develop, protect and rationalize viable small-scale mining activities in order to generate more employment opportunities and provide an equitable sharing of the nation’s wealth and natural resources, giving due regard to existing rights….. Section 2 of Republic Act No. 7076

DENR AO NO. 34 IMPLEMENTING RULES AND REGULATIONS OF THE “PEOPLE’S SMALL-SCALE MINING ACT OF 1991” JULY 14, 1992

Small Scale Mining – Small scale mining as defined by Republic Act No. 7076, refers to mining activities which rely heavily on manual labor using simple implements and methods and do not use explosives or heavy equipment. Sec 4.IRR.RA 7076

People’s Small Scale Mining Program (Features) The identification, segregation and reservation of certain mineral lands as PSSMA; The recognition of prior existing rights and productivity; The encouragement of the formation of cooperatives; The extension of technical and financial assistance, and other social services;

People’s Small Scale Mining Program (Features) The extension of assistance in processing and marketing; The generation of ancillary livelihood activities; The regulation of the small-scale mining industry with the view to encourage growth and productivity; and The efficient collection of government revenue.

Declaration of PSSMA Sec 6.IRR.RA 7076 The Board (PMRB) created under RA 7076 shall have the authority to declare and set aside People’s Small-Scale Mining Areas in sites onshore suitable for small-scale mining operations subject to review by the DENR Secretary thru the Director

Composition of the PMRB Sec 23.IRR.RA 7076 Representative from DENR RO – Chairman Governor/ his “DA” Representative – VChairman Small-scale Mining Representative – Member Large-scale Mining Representative - Member Representative from a NGO – Member Staff Support to the Board to be provided by the Department

Power and Functions of PMRB Sec 22.IRR.RA7076 Declares and segregates existing gold-rush area for small-scale mining; Reserves for the future, mineralized areas/mineral lands for people’s small-scale mining; Award contracts to small-scale miner’s cooperative

Power and Functions of PMRB Sec 22.IRR.RA7076 Formulates and implements rules and regulations related to RA 7076; Settles disputes, conflicts or litigations over conflicting claims within ninety (90) days upon filing of protest or complaints; Provided. That any aggrieved party may appeal within five (5) days from the Board’s decision to the Secretary for final resolution, otherwise the same is considered final and executory; and Performs such other functions as may be necessary to achieve the goals and objectives of RA 7076.

Onshore Areas That May Be Declared by the Board as PSSMA Areas already occupied and actively mined by Small Scale Miners before August 1, 1987. Provided, that - such areas are not considered as active mining areas; - the minerals found therein are technically and commercially suitable for small-scale mining activities; - the areas are not covered by existing forest rights or reservations and have not been declared as tourist or marine reserves, parks and wildlife reservations, unless their status as such are withdrawn by competent authority. Public lands not subject to any existing right;

Onshore Areas That May Be Declared by the Board as PSSMA Public lands covered by existing mining rights which are not active mining areas; Private lands, subject to certain rights and conditions, except those of with substantial improvements or in bonafide and regular use as yard, stockyard, garden, plant nursery, plantation, cemetery or burial site, or land situated within 100 meters from such cemetery or burial site, water reservoir or a separate parcel of land with an area of 10,000 square meters or less;

Onshore Areas That May Be Declared by the Board as PSSMA Ancestral lands with prior consent from the cultural communities concerned. Provided, that - - if ancestral lands are declared as PSSMA, the members of the cultural communities therein shall be given priority in the awarding of small-scale mining contracts. - in cases where Indigenous Cultural Communities (ICCs) concerned refuse to allow their areas to be declared a People’s Small Scale Mining Area, their customary rights to their ancestral land shall be recognized and protected. Areas occupied by a community of traditional small scale miners, subject to the approval of the said community. Where they refuse to allow their areas to be declared a People’s Small Scale Mining Area, their customary rights under their mining traditions shall be recognized and protected.

PROCEDURES IN THE DECLARATION OF A PSSMA - 1 PETITION/REQUEST from any interested party for declaration of an area as PSSMA filed with the Board

PROCEDURES IN THE DECLARATION OF A PSSMA - 2 EVALUATION OF AREA whether same is technically or economically viable

PROCEDURES IN THE DECLARATION OF A PSSMA - 3 IDENTIFICATION OF OTHER AREAS technically and economically viable for small-scale mining upon the initiative of the DENR or authorized body

PROCEDURES IN THE DECLARATION OF A PSSMA - 4 ISSUANCE OF NOTICES by the Board to claimowners, operators, private landowners and non-governmental organizations concerned, government agencies and cultural communities for clearance and consent as the case maybe.

PROCEDURES IN THE DECLARATION OF A PSSMA - 5 POSTING/PUBLICATION of notices on provincial or city/municipal halls and/or MGB office and other conspicuous places, and/or publication in a newspaper of local or national circulation once a week for two (2) consecutive weeks.

PROCEDURES IN THE DECLARATION OF A PSSMA - 6 SEGREGATION OF PROPOSED AREAS for small scale mining purposes upon completion of the necessary documents, subject to review of the Secretary within 30 working days from date of receipt of the proposal for such segregation from the Board

PROCEDURES IN THE DECLARATION OF A PSSMA - 7 DECLARATION OF AREAS AS PSSMA by the Board in the event that the area to be segregated and declared for such purpose is found to be in order by the Secretary after the 30-day period of review thereof

Application to Enter Into a Small Scale Mining Contract Registered SSM cooperative files application together with the following: Payment Application Fee of P30.00/hectare Certified True Copy of Articles of Incorporation Information on the geographical coordinates of the applied area, 20 hectares maximum

Application to Enter Into a Small Scale Mining Contract Board determines Area Status within Fifteen (15) days (working) upon receipt of Application Written Notice requesting the applicant to submit a proposed contract shall be sent by the Board if area is free from conflict In case of conflict/s, the Board shall resolve the same within five (5) working days from the date of discovery thereof

Requirements for Small Scale Mining Contract (Features of the Proposed Contract) Mode of agreement (i.e. Co-production, Joint Venture or Mineral Production Sharing Agreement) Terms and Conditions of the Contract Rights of the small-scale mining contractor

Requirements for Small Scale Mining Contract (Attachment to the Proposed Contact) Survey Plan prepared by a deputized Geodetic Engineer including field notes cover and duly notarized descriptive Survey Report Mining plan prepared by a registered Mining Engineer Environmental Compliance Certificate (ECC)

Award of People’s Small Scale Mining Contract The Board evaluate, negotiate and award, subject to review by the Secretary within fifteen (15) days - Start mining operations within 1 year - Priority to residents of the province, municipality

Terms and Conditions of Small Scale Mining Contract (Two-Year Term Renewable for Like Periods) Undertake mining activities only in accordance with a mining plan duly approved by the Board; Abide by the mine safety rules and regulations and other rules and regulations which may be promulgated by the DENR Secretary; Comply with his obligations to the holder of an existing mining right/s, if applicable

Terms and Conditions of Small Scale Mining Contract (Two-Year Term Renewable for Like Periods) Pay all fees, taxes, royalties or government production share as are now or may hereafter be provided by law; Comply with pertinent rules and regulations on environmental protection and conservation, particularly those on tree-cutting, mineral processing and pollution control; File under oath at the end of each month a detailed production report and annual financial report to the Board; and 7. Assume responsibility for the safety of persons working in the mines.

FISCAL AND REGULATORY PROVISIONS Sec 26.IRR.RA 7076 Income Tax as provided in the National Revenue Code Special Import (if applicable) Tariff Duties (if applicable) Value Added Tax as provided in EO 273 Real Property Tax (if applicable) Excise Tax except gold to Central Bank w/c are considered for export

FISCAL AND REGULATORY PROVISIONS Sec 26.IRR.RA 7076 Government Share which shall be paid to the Municipality or City Treasurer where mining claims are located, and shall be apportioned in accordance with the Local Government Code of 1991 Payment of Fees and Other Charges - Application Fee of P30.00/hectare - Occupation Fee of P50.00 per hectare, paid to the Municipality where contract area is located

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 VII of Republic Act No. 7942 Section 14, DAO 2012-07, IRR of EO 79

MEASURES TO IMPROVE SMALL-SCALE MINING ACTIVITIES (Sec 14 DAO No MEASURES TO IMPROVE SMALL-SCALE MINING ACTIVITIES (Sec 14 DAO No. 2012-07, IRR of EO No. 79) Compliance with RA No. 7076 Compliance with the Environmental Impact Statement system requirements under PD No. 1586 Hydraulicking (water jetting), compressor mining and the use of mercury in SSM operations shall be strictly prohibited h

REQUIREMENTS (PRIOR TO ISSUANCE OF SSMC – DAO 2012-7, IRR of EO No. 79) ECC secured thru an EIS from EMB Potential Environmental Report (PEIR) which is a simplified EPEP, and Final Mine Rehabilitation Plan/Decommissioning Plan (FMRP/DP) duly approved by the MGB-RO concerned Community Development and Management Plan (CDMP), a simplified Social Development and Management Program duly approved by the MGB-RO concerned

Malagintong Araw sa Inyong Lahat at Maraming Salamat Po !