PHILIPPINES Law and Practice Contributed by: Patricia A O Bunye and Rafael Raymundo A Evangelista, Cruz Marcelo & Tenefrancia
Cruz Marcelo & Tenefrancia 9th, 10th, 11th and 12th Floors, One Orion 11th Avenue corner University Parkway Bonifacio Global City
Taguig 1634 Metro Manila Philippines
Tel: +63 288 105 858 Fax: +63 288 103 838 Email: natres.department@cruzmarcelo.com Web: www.cruzmarcelo.com
1. Mining Law: General Framework 1.1 Main Features of the Mining Industry The Philippines is the fifth most mineralised country in the world, with an estimated USD1 tril - lion in untapped reserves of copper, gold, nickel, zinc and silver. Recent statistics from the Philip - pine Mines and Geosciences Bureau (MGB) indi - cate that there are 59 operating metallic mines in the country, employing around 212,200 workers. In 2023, total exports of minerals amounted to almost USD7.32 billion, and the MGB placed the gross production value for large-scale metallic mining at PHP249.71 billion. Nickel ore with its related minerals remains the top contributor with a total production value of PHP113.37 billion, equivalent to 46% of the total output. For the first semester of 2024, gross metallic production is at PHP114.77 billion. This is a 6.69% drop from the same period a year ago, attributable to sluggish nickel prices and output of gold, nickel ore and processed products like mixed sulfide and scandium oxalate.
1.2 Legal System and Sources of Mining Law The Philippine legal system is a hybrid of both civil and common law. The civil law elements are primarily derived from the Spanish civil law sys - tem, while the common law elements are primar - ily derived from the Anglo-American system of the United States. Examples of Philippine legal concepts derived from common law include the doctrines of equity, estoppel, laches and stare decisis. The authority of Philippine courts is lim - ited to the interpretation of law. Nevertheless, the Philippine Supreme Court may reverse rul - ings of lower courts, and even abandon princi - ples laid down in previous rulings. The mining industry in the Philippines is gov - erned primarily by the Philippine Constitution and the Philippine Mining Act (the “Mining Act”) or Republic Act No 7942, including its Imple - menting Rules and Regulations (IRR). The executive branch, through agencies such as the Department of Environment and Natural Resources (DENR) and the MGB, also issues administrative orders, memoranda and circulars,
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