Republic Act No. 7942 Philippine Mining Act of 1995

1|SANTIAGO, Sara Andrea Nina P.
| 2017-0064
Republic Act No. 7942

Philippine Mining Act of 1995
Salient Provisions:
1. Declaration of Policy
All mineral resources in public and private lands within the territory and exclusive
economic zone of the Republic of the Philippines are owned by the State. It shall be the
responsibility of the State to promote their rational exploration, development, utilization
and conservation through the combined efforts of government and the private sector in
order to enhance national growth in a way that effectively safeguards the environment and
protect the rights of affected communities.
2. Mineral Reservations
When the national interest so requires, such as when there is a need to preserve
strategic raw materials for industries critical to national development, or certain minerals
for scientific, cultural or ecological value, the President may establish mineral reservations
upon the recommendation of the Director through the Secretary. Mining operations in
existing mineral reservations and such other reservations as may thereafter be established,
shall be undertaken by the Department or through a contractor: Provided, That a small
scale-mining cooperative covered by Republic Act No. 7076 shall be given preferential right
to apply for a small-scale mining agreement for a maximum aggregate area of twenty-five
percent (25%) of such mineral reservation, subject to valid existing mining/quarrying
rights as provided under Section 112 Chapter XX hereof.
Mining in the Philippines:
The Philippines has been ranked as the fifth most mineralized country in the world,
with an estimated US$1 trillion in untapped reserves of copper, gold, nickel, zinc and silver.
Despite the foregoing, statistics from the Philippine Mines and Geosciences Bureau (MGB)
indicate that, as of 2018, there are only 48 operating metal mines. For the same year, the
Philippine Department of Environment and Natural Resources (DENR) has placed the
preliminary gross production value for large-scale metal mining at 121.2 billion Philippine
pesos.
The principal laws that regulate the mining industry are Republic Act No. 7942,
otherwise known as the Philippine Mining Act of 1995 (Mining Act), and its implementing
rules and regulations, DENR Administrative Order No. 2010-21 (Mining Act IRR), both of
which have not been amended in the past year. However, in January 2019, the MGB
proposed the review and revision of the Mining Act IRR. In 2012, Executive Order No. 79
(Institutionalizing and Implementing Reforms in the Philippine Mining Sector, Providing
Policies and Guidelines to Ensure Environmental Protection and Responsible Mining in the
Utilization of Mineral Resources) (EO 79) was issued as the policy of the Aquino
administration. EO 79 instituted reforms such as a review of the performance of existing
mining operations and cleansing of non-moving mining rights holders, imposed a
moratorium against the issuance of mineral agreements (MAs) until the enactment of
legislation rationalizing existing revenue sharing schemes and mechanisms, and
constituted the Mining Industry Coordinating Council (MICC), among others. The Duterte
administration has issued no order repealing, amending or replacing EO 79.
Protection of mining rights:
Mining rights are protected by the Philippine Constitution, particularly the non-
impairment clause under section 10 of article III, which states that no law impairing the
obligation of contracts shall be passed. The non-impairment clause is limited in application
2|SANTIAGO, Sara Andrea Nina P. | 2017-0064
to laws that derogate from prior acts or contracts by enlarging, abridging or in any manner
changing the intention of the parties. There is impairment if a subsequent law changes the
terms of a contract between the parties, imposes new conditions, dispenses with those
agreed upon or withdraws remedies for the enforcement of the rights of the parties.
There is a system of arbitration for mining disputes provided under the Mining Act.
The Panel of Arbitrators has exclusive and original jurisdiction to hear and decide mining
disputes.
Participation of government and state agencies:
The Philippine Constitution allows the government and state agencies to participate
in mining projects. The state may directly undertake exploration, development and
utilization of mineral resources. It may also enter into co-production, joint venture, or
production-sharing agreements with Filipino citizens, or corporations or associations at
least 60 per cent of whose capital is owned by such citizens. Finally, the state may enter
into agreements with foreign-owned corporations involving either technical or financial
assistance for large-scale exploration, development, and utilization.

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1|SANTIAGO, Sara Andrea Nina P.

Republic Act No. 7942

Mining in the Philippines:

Protection of mining rights:

Participation of government and state agencies:

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