PHILIPPINES Law and Practice Contributed by: Patricia A O Bunye and Rafael Raymundo A Evangelista, Cruz Marcelo & Tenefrancia
tions , mineral rights have a constitutional basis and are derived under law. These mineral rights are granted under the Mining Act through EPs, MAs, FTAAs, quarry, sand and gravel, guano, gemstone-gathering permits and small-scale mining permits. These mineral rights are treated similarly to property, as they may be transferred or assigned, but are sub - ject to the approval of the government, specifically through the DENR Secretary and the MGB Director. 1.6 Granting of Mineral Rights The DENR is the primary granting authority of min - eral rights and is the government agency responsible for the conservation, management, development and proper use of the country’s environment and natural resources, including minerals and mines. Meanwhile, the MGB (a line bureau under the DENR) is respon - sible for the proper management and disposition of mineral lands and mineral resources, and the promo - tion of sustainable mineral resources development. Mineral rights are granted under the law through EPs, MAs, FTAAs, quarry, sand and gravel, guano, gemstone-gathering permits and small-scale mining permits. The MGB has the authority to grant EPs through its Director. The DENR Secretary has the authority to enter into MAs upon the recommendation of the MGB Director. FTAAs are entered into by the Presi - dent through the DENR Secretary. However, as further discussed in 2.4 Prior and Informed Consultation on Mining Projects and 2.5 Impact of Specially Protect- ed Communities on Mining Projects , mining projects also require: • approval from the relevant Sanggunian, which refers to the local legislative bodies; and • if applicable, free and prior informed consent (FPIC) from the affected indigenous cultural com - munities (ICCs) and indigenous peoples (IPs). Together with the MGB Director, local government units are represented in the Provincial or City Mining
Regulatory Board, which awards small-scale mining contracts. 1.7 Mining: Security of Tenure Exploration Permits (EPs) EPs have a term of two years from the date of issu - ance, which is renewable for another two years but cannot exceed six years for both metallic and non- metallic exploration. EP holders must annually relin - quish at least 20% of the permit area during the first two years of exploration and at least 10% of the remaining permit area annually during the extended exploration period. However, if the permit area is less than 5,000 hectares, the EP holder need not relinquish any part thereof. EPs may be transferred, subject to the approval of the DENR Secretary upon recommendation of the MGB Director. Mineral Agreements (MAs) MAs have a term of not more than 25 years from the date of their execution and are renewable for another term not exceeding 25 years. After the exploration period and prior to or upon approval of a declaration of mining project feasibility, the contractor must relin - quish any portion of the contract area that will not be necessary for mining operations and that will not be covered by any declaration of mining feasibility. Each mining area after final relinquishment cannot be more than 5,000 hectares for metallic minerals. MAs may be transferred, subject to the prior approval of the DENR Secretary. Financial and Technical Assistant Agreements (FTAAs) FTAAs have a term of not more than 25 years from the date of their execution and are renewable for another term not exceeding 25 years. FTAA contractors must relinquish at least 25% of the original contract area during the first two years of the exploration period and at least 10% of the remaining contract area annually during the extended exploration period and pre-fea - sibility period. During the exploration or pre-feasibility study period, FTAA contractors must finally relinquish any portion of the contract area that will not be nec - essary for mining operations and that is not covered
287 CHAMBERS.COM
Powered by FlippingBook