RIGHTS OF CLAIMOWNERS

• EXEMPTION FROM ANNUAL WORK AND OBLIGATIONS AND PAYMENT OF FEED, RENTAL, AND REAL
PROPERTY TAXES

• FREE ACCESS TO CONTRACT AREA TO CONDUCT METALLURGICAL TESTS, EXPLORATIONS

• ROYALTY TAX – 1.5% OF GROSS VALUE OF METALLIC MINERAL OR 1% OF GROSS VALUE OF NONMETALLIC
MINERAL
RIGHTS OF PRIVATE LANDOWNERS

• SHALL BE NOTIFIED OF PLAN OR PETITION TO DECLARE LAND INTO SMALL-SCALE MINING AREA
• IN CASE HE OPPOSES, BOARD WILL HEAR
• IF PRIVATE LAND IS DECLARED INTO SMALL-SCALE MINING AREA:
• ACTUAL DAMAGES
• ROYALTIES – SHALL NOT EXCEED 1% OF GROSS VALUE
MILL TAILINGS

• A SANDY WASTE CONTAINING HEAVY METALS AND RADIUM WHICH IS RADIOACTIVE

• SHALL BE OWNED BY THE CONTRACTOR.
• THE CONTRACTOR MAY SELL THEM OR HAVE THEM PROCESSED.
• IF THE CONTRACTOR DECIDES TO SELL, THE CLAIMOWNER HAVE THE PREEMPTIVE RIGHT TO PURCHASE THEM
AT PREVAILING MARKET VALUE.
SALE OF GOLD

• SHALL BE SOLD TO THE CENTRAL BANK

• PRICE COMPETITIVE WITH THE PREVAILING IN THE WORLD MARKET REGARDLESS OF VOLUME OR WEIGHT.
CUSTOM MILLS

• A MACHINE OR DEVICE THAT BREAKS SOLID MATERIALS IN ORDER TO EXTRACT MINERALS OR ORE-
BEARING MATERIALS.
• PRIVATE SECTOR MAY ESTABLISH ONLY IN MINERAL PROCESSING ZONE DULY DESIGNATED BY THE LGU
UPON RECOMMENDATION OF THE BOARD

• THE GOVERNMENT MAY ALSO CONSTRUCT IF THE PRIVATE SECTOR IS UNABLE TO ESTABLISH.
• THE BOARD SHALL ISSUE LICENSES FOR THE OPERATION SUBJECT TO POLLUTION CONTROL AND SAFETY
STANDARDS.
GOVERNMENT SHARE AND ALLOTMENT

• REVENUE DERIVED BY THE GOVERNMENT FROM THE OPERATION OF MINING SHALL BE SUBJECT TO THE
SHARING PROVIDED IN THE LGC
SECTION 290. AMOUNT OF SHARE OF LOCAL
GOVERNMENT UNITS. 
• LOCAL GOVERNMENT UNITS SHALL, IN ADDITION TO THE INTERNAL REVENUE ALLOTMENT, HAVE A SHARE
OF FORTY PERCENT (40%) OF THE GROSS COLLECTION DERIVED BY THE NATIONAL GOVERNMENT FROM
THE PRECEDING FISCAL YEAR FROM MINING TAXES, ROYALTIES, FORESTRY AND FISHERY CHARGES, AND
SUCH OTHER TAXES, FEES, OR CHARGES, INCLUDING RELATED SURCHARGES, INTERESTS, OR FINES, AND
FROM ITS SHARE IN ANY CO-PRODUCTION, JOINT VENTURE OR PRODUCTION SHARING AGREEMENT IN
THE UTILIZATION AND DEVELOPMENT OF THE NATIONAL WEALTH WITHIN THEIR TERRITORIAL
JURISDICTION.
PEOPLE’S SMALL-SCALE MINING PROTECTION FUND

• SHALL BE USED PRIMARILY FOR:

• INFORMATION DISSEMINATION;
• TRAINING OF SMALL-SCALE MINERS ON SAFETY, HEALTH AND ENVIRONMENTAL PROTECTION;
• ESTABLISHMENT OF MINE RESCUE AND RECOVERY TEAMS (INCLUDING PROCUREMENT OF RESCUE EQUIPMENTS
); AND
• TO ADDRESS THE NEEDS OF SMALL-SCALE MINERS BROUGHT ABOUT BY ACCIDENTS OR FORTUITOUS EVENTS.
GROUNDS FOR CANCELLATION OF CONTRACTS

• NON-COMPLIANCE WITH THE TERMS AND CONDITIONS;

• VIOLATIONS OF THE RULES AND REGULATIONS;
• ABANDONMENT OF THE MINING SITE BY THE CONTRACTOR.
• CANCELLATION OF CONTRACT IS WITHOUT PREJUDICED TO THE IMPOSITION OF PENALTIES.
• THE SECRETARY MAY IMPOSE FINES
• NOT LESS THAN P20,000 AND NOT MORE THAN P100,000.
• NON-PAYMENT OF FINE SHALL RENDER THE CONTRACTOR INELIGIBLE FOR OTHER SMALL-SCALE MINING CONTRACTS
REVERSION

• DENR SECRETARY, UPON RECOMMENDATION OF THE DIRECTOR SHALL WITHDRAW THE STATUS OF THE
PEOPLE’S SMALL-SCALE MINING AREA:
• WHEN NO LONGER FEASIBLE FOR OPERATION;
• WHEN SAFETY, HEALTH AND ENVIRONMENTAL CONDITIONS WARRANTS REVERSION TO THE STATE FOR PROPER
DISPOSITION.
ACTUAL OCCUPATION

• WHO HAVE BEEN IN ACTUAL OPERATION OF MINERAL LANDS ON OR BEFORE AUGUST 1, 1987 AS
DETERMINED BY THE BOARD SHALL NOT BE DISPOSSESSED, EJECTED OR REMOVED FROM SAID AREAS:
PROVIDED, THAT THEY COMPLY WITH THE PROVISIONS OF THIS ACT.
M IN IN G R EG U L A TO RY
BOARD
POWERS AND FUNCTIONS
• DECLARE AND SEGREGATE EXISTING GOLD-RUSH AREAS FOR SMALL-SCALE MINING;
• RESERVE FUTURE GOLD AND OTHER MINING AREAS FOR SMALL-SCALE MINING;
• AWARD CONTRACTS TO SMALL-SCALE MINERS;
• FORMULATE AND IMPLEMENT RULES AND REGULATIONS RELATED TO SMALL-SCALE MINING;
• SETTLE DISPUTES, CONFLICTS OR LITIGATIONS OVER CONFLICTING CLAIMS WITHIN A PEOPLE'S SMALL-SCALE
MINING AREA, AN AREA THAT IS DECLARED A SMALL-SCALE MINING AREA; AND

• PERFORM SUCH OTHER FUNCTIONS AS MAY BE NECESSARY TO ACHIEVE THE GOALS AND OBJECTIVES OF THIS ACT.
COMPOSITION OF THE PMRB

• THE BOARD SHALL BE COMPOSED OF THE FOLLOWING:

• DENR REPRESENTATIVE CONCERNED OR HIS/HER DULY AUTHORIZED REPRESENTATIVE AS CHAIRPERSON;
• PROVINCIAL GOVERNOR OR HIS/HER REPRESENTATIVE AS MEMBER;
• ONE SMALL-SCALE MINING REPRESENTATIVE AS MEMBER;
• ONE LARGE-SCALE MINING REPRESENTATIVE AS MEMBER;
• ONE REPRESENTATIVE FROM AN ENVIRONMENTAL NGO AS MEMBER.
COMPOSITION OF THE CMRB
• THE BOARD SHALL BE COMPOSED OF THE FOLLOWING:
• DENR REPRESENTATIVE CONCERNED OR HIS/HER DULY AUTHORIZED REPRESENTATIVE AS CHAIRPERSON;
• CITY MAYOR OR HIS/HER REPRESENTATIVE AS MEMBER;
• ONE SMALL-SCALE MINING REPRESENTATIVE AS MEMBER;
• ONE LARGE-SCALE MINING REPRESENTATIVE AS MEMBER;
• ONE REPRESENTATIVE FROM AN ENVIRONMENTAL NGO AS MEMBER.
• THE REPRESENTATIVES FROM THE PRIVATE SECTOR SHALL BE NOMINATED BY THEIR RESPECTIVE
ORGANIZATIONS AND APPOINTED BY THE DENR.
ADMINISTRATIVE SUPERVISION

• THE SECRETARY OR HIS/HER DULY AUTHORIZED REPRESENTATIVE SHALL EXERCISE DIRECT SUPERVISION
AND CONTROL OVER THE PROGRAMS AND ACTIVITIES SMALL-SCALE MINERS.

• THE SECRETARY SHALL PROMULGATE RULES AND REGULATIONS FOR THE EFFECTIVE IMPLEMENTATION OF
THE ACT.
APPLICATIONS

• APPLICATIONS FOR SMALL-SCALE MINING PERMITS (SSMP) SHALL BE FILED IN THE FOLLOWING:
• OFFICE OF THE PROVINCIAL GOVERNOR OR CITY MAYOR THROUGH THE PMRB/CMRB CONCERNED FOR AREAS
OUTSIDE MINERAL RESERVATIONS; AND
• IN THE REGIONAL OFFICE CONCERNED FOR AREAS WITHIN MINERAL RESERVATIONS.
ENVIRONMENTAL PROTECTION, SAFETY AND HEALTH

• TO ENSURE THE PROTECTION OF THE ENVIRONMENT AND THE DEVELOPMENT OF HOST AND NEIGHBORING
COMMUNITIES, THE SMALL-SCALE MINING CONTRACTOR OR MINERAL PROCESSOR SHALL ABIDE BY THE
APPROVED ECC, PEIMP, AND CDMP, AND COMPLY WITH ALL APPLICALBE ENVIRONMENTAL LAWS, RULES
AND REGUULATIONS.
• TO ENSURE THE SAFETY AND HEALTH OF SMALL-SCALE MINERS OR MINERAL PROCESSING PLANT
WORKERS, THE CONTRACTOR OR PROCESSOR SHALL ABIDE BY THE PROVISIONS OF DAO NO. 97-30
(SMALL-SCALE MINE SAFETY RULES AND REGULATIONS), HIS/HER APPROVED ASHP, AND OTHER
PERTINENT RULES AND REGULATIONS THAT MAY BE PROMULGATED BY THE SECRETARY.
PENAL SANCTIONS

• IMPRISONMENT OF NOT LESS THAN SIX MONTHS NOR MORE THAN SIX YEARS, AND SHALL INCLUDE
CONFISCATION AND SEIZURE OF EQUIPMENT, TOOLS AND INSTRUMENTS.