PHILIPPINES Law and Practice Contributed by: Patricia A O Bunye and Rafael Raymundo A Evangelista, Cruz Marcelo & Tenefrancia
of the MGB Director. FTAAs are entered into by the President through the DENR Secretary. However, as further discussed in 2.4 Prior and Informed Consultation on Mining Projects and 2.5 Impact of Specially Protected 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 communities (ICCs) and indigenous peoples (IPs). Together with the MGB Director, local govern - ment 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 issuance, which is renewable for another two years but cannot exceed six years for metallic exploration. EP holders must annually relinquish 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 relinquish any portion of the contract area that will not be necessary for min - ing 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 renew - able 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 exploration period and at least 10% of the remaining contract area annually during the extended exploration period and pre-feasibility period. During the exploration or pre-feasibili - ty study period, FTAA contractors must finally relinquish any portion of the contract area that will not be necessary for mining operations and that is not covered by any declaration of mining feasibility, provided that each mining area after final relinquishment shall not be more than 5,000 hectares. FTAAs may be transferred to a qualified person, subject to prior approval of the President. Grounds for Cancellation, Revocation and Termination The grounds for the cancellation, revocation and termination of an EP, MA or FTAA are as follows: • falsehood or omission of facts in the applica - tion that may substantially alter or affect the facts set forth in those statements; • non-payment of taxes and fees for two con - secutive years;
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