PHILIPPINES Law and Practice Contributed by: Patricia A O Bunye and Rafael Raymundo A Evangelista, Cruz Marcelo & Tenefrancia
which, although they are not laws, form part of the regulatory framework of the mining industry. 1.3 Ownership of Mineral Resources Under the Philippine Constitution, the state owns all natural resources, including minerals. The Philippine Constitution also provides that the state has full control and supervision over the exploration, development and utilisation of min - eral resources. The state may undertake these activities directly or enter into co-production, joint venture or production-sharing agreements with Filipino citizens, or corporations or associa - tions at least 60% of whose capital is owned by those citizens. The President of the Philippines may also enter into agreements with foreign- owned corporations, involving either technical or financial assistance for large-scale explora - tion, development and utilisation of minerals, petroleum and other mineral oils. 1.4 Role of the State in Mining Law and Regulations As stated in 1.3 Ownership of Mineral Resourc- es , the state has full control and supervision over the exploration, development and utilisation of mineral resources. Furthermore, the state may undertake these activities directly or may enter into co-production, joint venture or production- sharing agreements with Filipino citizens, or corporations or associations at least 60% of whose capital is owned by those citizens. The President of the Philippines may also enter into agreements with foreign-owned corporations, involving either technical or financial assistance for large-scale exploration, development and uti - lisation of minerals, petroleum and other mineral oils. As discussed in 1.5 Nature of Mineral Rights , mineral rights are granted under law through exploration permits (EPs), mineral agreements
(MAs) and financial and technical assistance agreements (FTAAs), as well as quarry, sand and gravel, guano, gemstone-gathering permits and small-scale mining permits. 1.5 Nature of Mineral Rights As discussed in 1.3 Ownership of Mineral Resources and 1.4 Role of the State in Min- ing Law and Regulations , mineral rights have a constitutional basis and are derived under law. These mineral rights are granted under the Min - ing 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 prop - erty, as they may be transferred or assigned, but are subject 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 mineral 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 responsible for the proper management and disposition of mineral lands and mineral resources, and the promotion of sustainable mineral resources development. Mineral rights are granted under the law through EPs, MAs, FTAAs, quarry, sand and gravel, gua - no, gemstone-gathering permits and small-scale mining permits. The MGB has the authority to grant EPs through its Director. The DENR Secretary has the author - ity to enter into MAs upon the recommendation
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