RA 7076 Prohibited methods (DENR - AO NO.
2015- 03)
People's Small-Scale Mining Act of 1991
AN ACT CREATING A PEOPLE'S
SMALL-SCALE MINING PROGRAM
AND FOR OTHER PURPOSES AND FOR
THE OTHER PURPOSES
PD 1899 Small-Scale Mining Law (1984)
called Small- Scale Mining Law, issued by
the Marcos martial law government in 1984
intended to allow SSM as a cheap activity
with cheap labor costs and viable to be done
through artisanal or ‘shovel and pick’ style
of mining in order to extract and utilize the
mineral resources of the country, giving
wide-spread livelihood to the impoverished
Filipinos especially those staying in
mountain areas. PD 1899 did not impose
any tax except on income.1
Laws Governing Small-Scale mining
 PD 1899 Small-Scale Mining Law
 RA 7076
 RA 7942
RA 7076
Definition of Terms
1. Small-Scale Mining
refers to mining activities which rely
heavily on manual labor using simple
implement and methods and do not use
explosives or heavy mining equipment
1https://www.philstar.com/business/2017/03/21/16
80724/readers-view-small-scale-mining#BI3sbBMdjFz
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Compressor Mining - underwater
small-scale mining with the workers/miners
using compressed/pressurized air for
breathing.
Hyrdraulicking - mining with the use of
pressurized stream of water
2. Small-scale Miners
Filipino citizens who, individually or in
the company of other Filipino citizens,
voluntarily form a cooperative duly licensed
by the Department of Environment and
Natural Resources to engage, under the
terms and conditions of a contract, in the
extraction or removal of minerals or
ore-bearing materials from the ground
3. Small-Scale Mining Contractor
refers to an individual or a cooperative of
small-scale miners, registered with the
Securities and Exchange Commission or
other appropriate government agency,
which has entered into an agreement with
the State for the small-scale utilization of a
plot of mineral land within a people's
small-scale mining area
4. Small-Scale Mining Contract
co-production, joint venture or mineral
production sharing agreement between the
State and a small-scale mining contractor
for the small-scale utilization of a plot of
mineral land
People’s Small-Scale mining Program
The People's Small-scale Mining Program
shall include the following features:
(a) The identification, segregation and
reservation of certain mineral lands as
people's small-scale mining areas;
(b) The recognition of prior existing rights
and productivity;
(c) The encouragement of the formation of
cooperatives;
(d) The extension of technical and financial
assistance, and other social services;
(e) The extension of assistance in processing
and marketing;
(f) The generation of ancillary livelihood
activities;
(g) The regulation of the small-scale mining
industry with the view to encourage growth
and productivity; and
(h) The efficient collection of government
revenue.
Provincial/City Mining Regulatory Board
(Board)
COMPOSED OF:
1. Department of Environment and Natural
Resources representative as Chairman;
2. representative of the governor or city
mayor, as the representative of the governor
or city mayor, as the case may be
3. one (1) small scale mining representative
4. one (1) big-scale mining representative;
5. the representative from a nongovernment
organization who shall come from an
environmental group, as members.
Powers (Subject to review by the
Secretary of DENR)
(a) Declare and segregate existing gold-rush
areas for small-scale mining;
(b) Reserve future gold and other mining
areas for small-scale mining;
(c) Award contracts to small-scale miners;
(d) Formulate and implement rules and
regulations related to small-scale mining;
(e) Settle disputes, conflicts or litigations
over conflicting claims within a people's
small-scale mining area, an area that is
declared a small-mining; and
(f) Perform such other functions as may be
necessary to achieve the goals and
objectives of this Act.
People’s Small-Scale Mining Area
The Board is hereby authorized to declare
and set aside people's small-scale mining
areas in sites onshore suitable for
small-scale mining, subject to review by the
Secretary, immediately giving priority to
areas already occupied and actively mined
by small-scale miners before August 1,
1987: provided, that such areas are not
considered as active mining areas: provided,
further, that the minerals found therein are
technically and commercially suitable for
small-scale mining activities: provided,
finally, that the areas are not covered by
existing forest rights or reservations and
have not been declared as tourist or marine
reserved, parks and wildlife reservations,
unless their status as such is withdrawn by
competent authority. (Sec. 5, RA 7076)
The following lands, when suitable for
small-scale mining, may be declared by
the Board as people's small scale mining
areas:
(a) Public lands not subject to any existing
right;
(b) Public lands covered by existing mining
rights which are not active mining areas;
and
(c) Private lands, subject to certain rights
and conditions, except those with substantial
improvements or in bona fide and regular
use as a yard, stockyard, garden, plant
nursery, plantation, cemetery or burial site,
or land situated within one hundred meters
(100 m.) from such cemetery or burial site,
water reservoir or a separate parcel of land
with an area of ten thousand square meters
(10,000 sq. m.) or less.
4. Ancestral Lands - with prior consent of
the cultural communities concerned
 if ancestral lands are declared as
people's small-scale mining areas, the
members of the cultural communities
therein shall be given priority in the
awarding of small-scale mining
contracts (Sec. 7, RA 7076)
3 Minahang Bayan : (1) Quezon, (1)
Dinagat Islands, (1) Agusan del Norte
Award of People’s Small Scale Mining
Contract
A people's small-scale mining contract may
be awarded by the Board to small-scale
miners who have voluntarily organized and
have duly registered with the appropriate
government agency as an individual miner
or cooperative; Provided, that only one (1)
people's small-scale mining contract may be
awarded at any one time to a small-scale
mining operations within one (1) year from
the date of award: provided, further, that
priority shall be given or city where the
small-scale mining area is located.
Applications for a contract shall be subject
to a reasonable fee to be paid to the
Department of Environment and Natural
Resources regional office having
jurisdiction over the area.
Reversion of People’s Small Scale Mining
Area
The Secretary, upon recommendation of
the director, shall withdraw the status of the
people's small-scale mining area when it can
no longer feasibly operated on a small-scale
mining basis or when the safety, health and
environmental conditions warrant that the
same shall revert to the State for proper
disposition
A Minahang Bayan may be reverted to the
State by the Secretary for proper disposition,
upon recommendation of the Director thru
the Board when:
a. It can no longer be economically and
efficiently operated on a small-scale mining
basis;
b. The working conditions endanger the
lives and health of the miners;
c. Small-scale mining causes significant
destruction to the environment;
d. There is continuous disturbance of peace
and order for six (6) consecutive months
causing loss of lives and property; and/or
e. The decision on the appeal from the
denial of the affected mining applications or
of the oppositors of the declaration of
Minahang Bayan is rendered with finality in
their favor.
When the government, thru the Board,
determines that a Minahang Bayan can no
longer be legally or feasibly operated on a
small-scale basis, the Secretary, thru the
Director, shall:
a. Provide written notice to all small-scale
mining contractors within the area; and
b. Give each small-scale mining contractor
the right of first refusal, within six (6)
months from reversion of the Minahang
Bayan, to apply for a large-scale mining
permit/contract, if applicable.
People’s Small Scale Mining Protection
Fund
- fifteen percent (15%) of the national
government's share due the Government
USED PRIMARILY for information
dissemination and training of small-scale
miners on safety, health and environmental
protection, and the establishment of mine
rescue and recovery teams including the
procurement of rescue equipment necessary
in cases of emergencies such as landslides,
tunnel collapse, or the like
The fund shall also be made available to
address the needs of the small-scale miners
brought about by accidents and/or fortuitous
events.
Rights
Easement Rights
Upon the declaration of a people's
small-scale mining area, the director, in
consultation with the operator, claimowner,
landowner or lessor of an affected area,
shall determine the right of the small scale
miners to existing facilities such as mining
and logging roads, private roads, port and
communication facilities, processing plants
which are necessary for the effective
implementation of the People's Small-scale
Mining Program, subject to payment of
reasonable fees to the operator, claimowner,
landowner or lessor.
Rights under a Small-Scale Mining
Contract
A people's small-scale mining contract
entitles the small-scale mining contractor to
the right to mine, extract and dispose of
mineral ores for commercial purposes. In no
case shall a small-scale mining contract be
subcontracted, assigned or otherwise
transferred.
Sale of Gold
All gold produced by small-scale miners in
any mineral area shall be sold to the Central
Bank, or its duly authorized representatives,
which shall buy it at prices competitive with
those prevailing in the world market
regardless of volume or weight.
Prohibitions
No small scale mining shall be taken outside
of minahang bayan
No entity shall engage in small scale mining
without a small scale mining contract
No person shall work or be hired to work in
small scale mining or other similar
operations unless registered with the board
Penal Sanctions
Imprisonment of nor less than six months
but not more than six years and confiscation
and seizure of equipment, tools and
instrument.

Status Quo of small scale mining
Alarming numbers of illegal small scale
miners nationwide which operates outside
of the designated minahang bayan.
The numbers range from 300,000 to
400,000 wherein half of it is composed of
women and children.
Most miners were former farmers or
laborers which resort to mining for their
daily living
Although there really is a large potential in
our mineral extraction industry, the
detriments of it to the environment greatly
outweighs the supposed benefits. This gives
us the picture that the mineral extraction
business, while profitable to the few, will be
a huge burden to the many especially to the
future generations.

Dangers of small scale mining

Use of harmful substance such as mercury
and nitric acid.
Lack of equipment and safety gears
Lack of mining plan and survey
Mine tailings
Loss of government income (by reason of
non payment of tax)

Motivation of miners despite the dangers

of small scale mining
The lack of alternative source of living is
factored as one of the prime reasons why
people engage in small scale mining. People
in poor communities are deprived of decent
options to support their families, thus,
resorting to this deadly occupation of small
scale mining.

Government Alternatives
The government is developing steps in order
to accommodate the needs of the people by
giving support (4Ps) and offering livelihood
ideas. Although not fully implemented
nationwide, plans are being laid down in
order to address such issues.

Economy vs Environment