Instruction manuals

Mining Rights (EP,MPSA,FTAA)

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Introduction to different mining agreements in the Philippines.
  LEGAL BASES FOR ISSUANCE OF MINING RIGHTS/PERMITS This Information Brief is based on present mining laws and policies, namely: Republic Act No. 7! i.e., #The $hilippine %ining Act of &'# and ()NR Administrati*e +rder No.-!, i.e., #The Re*ised Implementing Rules and Regulations of Republic Act No.7! # and further amendments of the IRR, as necessary./irst %ining 0aw:1panish Royal (ecree of &2371econd %ining 0aw:$hilippine Bill of & Third %ining 0aw:4ommonwealth Act &37 5&36/ourth %ining 0aw:$residential (ecree !3 5&7!6/ifth %ining 0aw:%ining Act of &' 5RA 7! 6- signed into law on %arch 3, &' Re*ised Implementing Rules and Regulations of RA 7! ()NR Administrati*e +rder No.-! 5(A+ -!6 - appro*ed on (ecember &, & - continuing amendments, as necessary I.TYPES OF MINING RIGHTS 1.Exploration Pr!it .Minral Pro#$%tion S&arin' A'r!nt (.Finan%ial T%&ni%al A))i)tan% A'r!ntE*PLORATION PERMIT +EP,A. -&at i) an Exploration Pr!it    An Exploration Permit (EP)  is a mining right, which allows a ualified $erson8)ntity to underta9e eploration acti*ities for a mineral resources in a specified areas in the country. B. -&o i) $ali0i# to appl 0or a Exploration Pr!it    A ualified $erson is: 5a6 any /ilipino citi;en of legal age and with capacity to contract<5b6 a /ilipino-owned 4orporation, $artnership, Association or 4ooperati*e, at least sity percent 5=6 of the capital is owned by /ilipino citi;ens, organi;ed or authori;ed for the purpose of engaging in mining with technical and financial capability to underta9e mineral resources de*elopment and duly registered in accordance with the law< or 5c6 a foreign-owned 4orporation, $artnership, Association or 4ooperati*e duly registered in accordance with law and in which less than fifty percent 5'=6 of the capital is owned by /ilipino citi;ens. 1  C. Ho2 !$%& ara i) 'rant# 0or a Exploration Pr!it  )ach ualified $erson is limited to the following maimum si;e of area to apply for or hold at any one time thru an )$: 3UALIFIE4PERSON/ENTITYONSHORE+in an on Pro5in%,ONSHORE+In t& ntir P&ilippin),OFFSHORE+In t& ntirP&ilippin)6 7on#0i5 &$n#r# !tr)+899 !, 0ro! t& !anlo2 ti# l5l, Indi*idual  meridional bloc9s or &,  hectares! meridional bloc9s or 3, ! hectares& meridional bloc9s or 2,& hectares4orporation8 $artneship8  Association8 4ooperati*e  meridional bloc9s or &,  hectares! meridional bloc9s or 3 ,! hectares&, meridional bloc9s or 2&, hectares Note: One meridional block is equivalent to 81 hectares. 4. -&at i) t& tr! o0 an Exploration Pr!it  An )$ has a term of two 5 6 years from the date of issuance, renewable for li9e periods butnot to eceed a total term of si56 years. C&%:li)t 0or EP Appli%ation) I. Man#ator R$ir!nt) (5 copies for each requirement) &.)$ Application /orm 5%>B /orm No. '-&6 .0ocation %ap819etch $lan. The location map8s9etch plan of the proposed permit area shall utili;e a &:', National %apping and Resource Information Authority 5NA%RIA6 topographic map showing its geographic coordinates8meridional bloc95s6 and boundaries in relation toma?or en*ironmental features and other pro?ects, duly prepared, signed and sealed by a >eodetic )ngineer deputi;ed by the %ines and >eosciences Bureau 5%>B6. A deputi;ed >eodetic )ngineer is authori;ed by %>B to conduct mineral land sur*eys. The %>B maintains a list of deputi;ed >eodetic )ngineers in its Regional +ffices.3.Two-@ear )ploration or9 $rogram, 5%>B /orm No. '-!6<!.Two-@ear )n*ironmental or9 $rogram either onshore or offshore )ploration 5%>B /orm No. &-&8&-&A6<'.4ertificate of )n*ironmental %anagement84ommunity Relations Record 54)%4RR6issued by %>B. In case the applicant has not been engaged in eploration8mining related acti*ities, he8she8it may apply for a 4ertificate of )emption<.$roof of technical competence including, among others, curricula *itae and trac9 records in eploration and en*ironmental management of the technical personnel 2  who shall underta9e the acti*ities in accordance with the submitted )ploration and )n*ironmental or9 $rograms<7.$hotocopy of Articles of Incorporation8$artnership8Association, By-0aws and 4ertificate of Registration, duly certified by the 1ecurities and )change 4ommission or concerned authori;ed >o*ernment agency5ies6, in case of corporations, partnerships, associations or cooperati*es< 2.$roof of financial capability as applicable to the following: ã /or an Indi*idual - 1tatements of Assets and 0iabilities duly sworn in accordance with eisting laws, credit lines and income ta return for the preceding year< ã /or a 4orporation8$artnership8Association84ooperati*e - 0atest Audited /inancial 1tatement and where applicable, Annual Report for preceding year, credit lines, ban9 guarantees and8or similar negotiable instruments< ã 1worn (eclaration of Total Area co*ered by appro*ed8applications for )ploration $ermit< For o00)&or Exploration Pr!it appli%ation)6 t& 0ollo2in' a##itional r$ir!nt) !$)t 7 )$7!itt#; &.Name, port of registry, tonnage, type and class of sur*ey *essel5s6 or platform5s6. If a foreign *essel is to be used, the epected date of first entry or appearance and final departure of the sur*ey *essel shall be pro*ided andthe necessary clearances obtained< .A certification from the 4oast and >eodetic 1ur*ey (epartment of NA%RIA that the proposed )ploration or9 $rogram was duly registered to pro*ide update in the publication of #Notice to %ariners# together with a list of safety measures to regularly underta9en to ensure the safety of na*igation at sea and pre*ent accident<3.An agreement to:  $roperly identify all installations, *essels and other crafts in*ol*ed in eploration recogni;able to all *essels within reasonable distance<  Notify the Bureau 3 calendar days prior to the intention to remo*e all scientific installations or euipment and apparatus< and   Allow the BureauCs authori;ed personnel, the $hilippine 4oast >uard and other authori;ed persons during reasonable hours to board the *essel5s6 while within the )clusi*e )conomic Done< Ot&r )$pportin' papr) t&at t& B$ra$/%on%rn# R'ional O00i% !a r$ir or t& appli%ant !a )$7!it )$%& a); II. Pa!nt O0 F)   + $lease refer to (A+ '-2 E$ro*iding for New /ees and 4harges for Farious 1er*ices of the %ines and geosciences Bureau.G6 3  III. A##itional R$ir!nt) &.National 4ommission on Indigenous $eoples 5N4I$6 4ertification that the area doesnot o*erlap any certified or claimed ancestral land8domain< and .here the area o*erlaps any certified or claimed ancestral domain, the /ree and $rior Informed 4onsent 5/$I46 of the concerned I44s8I$s and the pertinent %emorandum of Agreement 5%+A6 eecuted by and between the )$ applicant, the concerned I44s8I$s and the N4I$, in a form and substance consistent with 1ection 2 of $art III, Rule IF of N4I$ Administrati*e +rder No.&, 1eries of &2.<3.%inimum authori;ed capital of Ten 5&6 %illion $esos duly appro*ed by 1)4, in case of a corporation8partnership8association8cooperati*e. Ba)i% )tp) in t& pro%))in' o0 Exploration Pr!it) Stp 1.   Five(5) sets of ! application and its mandator requirements /iling of )$ ApplicationApplicant pays filing8processing fees at %>B 4entral +ffice for %ineral Reser*ation 5%R6 Areas or at concerned%>B Regional +ffice for Non-%ineral Reser*ation 5N%R6 Areas Stp .  Area 4learance84onsent by%>B,()NR 1ectors 5/%1, )%$A1,0%1, etc.6 and8or if applicable, other >o*Ct. +ffices 5(N(, (AR, etc.6 and 4ertification by N4I$./or %ineral Reser*ation Areas, only %>B 4entral +ffice underta9es Area 4learance. Hpon completion of Area 4learance, applicant pays clearances fee. Stp (. $ublication, $osting and Radio Announcement&.%>B for %R areas or its concerned Regional ffice for N%R areas issues Notice of  Application 5N+A6 for )ploration $ermit for publication, posting and radio announcement by the applicant. .3 days after the last date of $ublication, $osting and Radio  Announcement, %>B or concerned Regional +ffice issues certification that those aforcited acti*ities ha*e been complied with by the applicant. Stp <. 4ertification from the $anel of Arbitrators 5$A61aid certification shall attest that no ad*erse claim8protest8opposition has been filed against the application during the 3 day period from the last date of publication, posting and radio announcement of the N+A or that any ad*erse claim8protest8opposittion filed against the application has been resol*ed with finality. 4
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