COURSE OUTLINE IN Republic Act 7942

I. PRELIMINARY
a. Evolution of pertinent Mining Law
i. Atok big-Wedge Mining Co. v. Intermediate Appellate Court, GR No.
63528, Sept. 9, 1996, 261 SCRA 528.
b. Ownership of mineral resources
i. Republic v. CA & Dela Rosa, GR No. L-43938, April 15, 1980, 160 SCRA
228.
ii. Comiliang v. Buendia, GR No. L-24757, Oct. 25, 1967, 21 SCRA 486.
iii. La Bugal-Blaan Tribal Association, Inc. v. Ramos, GR No. 127882, Jan.
27, 2004, 445 SCRA 1
iv. Full control & supervision by the State
1. Miners Association of the Philippines v. Factoran, GR No. 98332,
Jan. 16, 1995, 240 SCRA 100.
v. Republic v. Rosemoor Mining & Development Corporation, GR No.
149927, Mar. 30, 2004, 426 SCRA 517
vi. Southeast Mindanao Gold Mining Corporation v. Balite Portal Mining
Cooperative, GR No. 135190, Apr. 3, 2002, 380 SCRA 145
vii. Cruz v. Secretary of Environment and Natural Resources, GR No.
13585, Dec. 6, 2000, 347 SCRA 128
viii. La Bugal-Blaan Tribal Association, Inc. v. Ramos, GR No. 127882, Dec.
1, 2004, 445 SCRA 1
c. Rights of a locator to a perfected mining claim
i. Mc-Daniel v. Apacible, GR No. 17597, Feb. 7, 1922, 42 Phil 749
ii. Atok Big-wedge Mining Co. v. CA, GR No. 8883, Jan. 18, 1991, 193
SCRA 71
iii. Mere recording of a mining claim, without performing annual work
obligation, does not convert land into mineral land
1. Atok big-Wedge Mining Co. v. Intermediate Appellate Court, GR
No. 63528, Sept. 9, 1996, 261 SCRA 528.
2. Zambales Chromite Mining Co., Inc. v. Leido, GR No. 49143,
Aug. 21, 1989, 176 SCRA 602
iv. Abandonment
1. Medrana v. Office of the President, GR No. 85904, Aug. 21,
1990, 188 SCRA 818
2. Greenhills Mining Co., v. Office of the President, GR No. L-
75962, June 30, 1988, 163 SCRA 350
d. Mineral Reservations
i. Apex Mining Co., Inc. v. Southeast Mindanao Gold Mining Corporation,
GR No. 152613, June 23, 2006, 492 SCRA 355
ii. Other Reservations
1. PICOP Resources, Inc. v. Base Metals Mineral Resources
Corporation, GR No. 163509, Dec. 6, 2006
2. PNOC-EDC v. Veneracion, GR No. 129820, Nov. 30, 2006

II. ORGANIZATIONAL STRUCTURE

a. Authority of the Department: Validity of Administrative Orders issued by the
Department Secretary: Miners Association of the Phils. V. Factoran
b. Authority of the Bureau
i. Quasi-judicial powers
1. Atlas Consolidated Mining & Development Corporation v. CA,
GR No. L-54305, Feb. 14, 1990, 182 SCRA 166
2. Benguet Corporation v. Leviste, GR No. 65021, Nov. 21, 1991,
193 SCRA 250
ii. Doctrine of Primary Jurisdiction
1. Industrial Enterprise, Inc. v. CA, GR No. 88550, Apr. 18, 1990,
184 SCRA 426
 2. Apex Mining Co. vs. Garcia, GR No. 92605, July 16, 1991, 199
SCRA 278
III. SCOPE OF APPLICATION
a. Sec. 14, RA 7942: Areas open to mining operations
b. Sec. 18: Areas closed to mining operations
IV. EXPLORATION PERMIT
a. Sec. 20
b. Foreign contractor to apply & hold exploration permit: Sec. 3(aq)
i. See: La Bugal-Blaan Tribal Association, Inc. v. Ramos, Dec. 1, 2004
ii. Submission of work prog: La Bugal-Blaan Tribal Association, Inc. v.
Ramos, Dec. 1, 2004
c. Transferability or assignment of exploration permit
i. Apex Mining Co., Inc. v. Southeast Mindanao Gold Mining Corporation,
GR No. 152613, June 23, 2006
d. Rights and obligation of the permittee: sec. 23, RA 7942
e. Exploration permit revocable when demanded by the police power
i. Southeast Mindanao Gold Mining Corporation v. Balite Portal Mining
Cooperative, GR No. 104047, Apr. 3, 2002, 380 SCRA 145
ii. Republic v. Rosemoor
V. MINERAL AGREEMENTS
a. Forms of mineral agreement
i. Mineral Production Sharing Agreement (MPSA)
ii. Co-production Agreement (CA)
iii. Joint Venture Agreement (JVA)
b. Qualified Person
c. Filing and Approval of Mineral Agreements: Sec 29
d. Assignment or transfer: Sec. 46
e. Term of a mineral agreement: Sec. 32
f. Issuance of Special Mines Permit (SMP)
VI. FINANCIAL OR TECHNICAL ASSISTANCE AGREEMENT
a. FTAA defined
b. Eligibility
c. Minerals subject of FTAA
d. Assignment or transfer
i. Lepanto Consolidated Mining Co. v. WMC Resources, GR No. 162331,
Nov. 20, 2006
ii. La Bugal-Blaan Tribal Association, Inc. v. Ramos
iii. Didipio Earth-saver’s multi-purpose association v. Gozun, GR No.
157882, Mar. 30, 2006, 485 SCRA 586
VII. QUARRY RESOURCES
a. Size of area covered by quarry permit
i. Republic v. Rosemoor Mining & Development Corporation
b. Provincial/Municipal Mining Regulatory Board
c. Quarry Permit
d. Sand & Gravel Permits
i. Commercial Sand & Gravel permit
ii. Industrial Sand and Gravel permit
iii. Exclusive sand and gravel permit
iv. Rights and Obligations of the quarry or commercial/industrial sand and
gravel permit holder
e. Gratuitous Permit
f. Guano Permit
g. Gemstone gathering permit
h. Cancellation, revocation, termination of quarry, sand and gravel, gratuitous,
guano and gemstone gathering permit
VIII. TRANSFER, SALE and PROCESSING OF MINERALS
a. Ore Transport Permit
i. Mineral trading registration
 ii. Mineral processing permit
IX. SAFETY AND ENVIRONMENTAL PROTECTION
a. Mine safety and Environmental protection
b. Mine labor
c. Power to issue orders
d. Pollution cases under the jurisdiction of the PAB
i. Republic v. Marcopper Mining Corporation, GR No. 137174, July 10,
2000, 335 SCRA 386
e. EIA
X. SURFACE RIGHTS
a. Sec. 75: Easement rights
b. Sec. 76: Entry into lands
i. PICOP Resources, Inc. v. Base Metals Mineral Resources Corporation,
GR No. 163509, Dec. 6, 2006
ii. Didipio Earth-saver’s multi-purpose association v. Gozun, GR No.
157882, Mar. 30, 2006, 485 SCRA 586
c. Determination of compensation of the POA is only preliminary
i. Export Processing Zone Authority v. Dulay
d. Surface rights must be based on compliance with legal requirements
i. Standard Mineral Products, Inc. v. CA, GR No. L-43277, April 26, 1990,
184 SCRA 571
XI. TRANSPORT OF MINERAL/MINERAL PRODUCTS & CONFISCATION, SEIZURE, AND
DISPOSITION OF ILLEGALLY-SOURCED MINERALS/MINERAL PRODUCTS
a. Ore Transport Permit
b. Arrest, Confiscation & Seizures/Custody
XII. SETTLEMENTS OF CONFLICTS
a. Panel of Arbitrators
b. Mining Dispute
i. Gonzales v. Climax Mining LTD., GR No. 161957, Feb. 28, 2005, 452
SCRA 607
c. Appeal
d. Mines Adjudication Board
i. Adjudication of mining cases an administrative matter
1. Twin Peaks Mining Association v. Navarro, GR No. L-49835,
Dec. 18, 1979, 94 SCRA 768
e. No authority over pollution cases
f. MAB decisions appealable to CA
i. Carpio v. Sulu Resources Development Corp., GR No. 148267, Aug. 8,
2002, 387 SCRA 128
ii. Asaphil Construction & Development Corp. v. Tuason, GR No. 134030,
Apr. 25, 2006, 488 SCRA 126
iii. PNOC-EDC v. Veneracion, GR No. 129820, Nov. 30, 2006
g. DENR devoid of jurisdiction to determine validity of mining contracts or disputes
i. Asaphil Construction & Development Corp. v. Tuason, GR No. 134030,
Apr. 25, 2006, 488 SCRA 126
ii. Republic v. MMC
XIII. GOVERNMENT SHARE
XIV. GROUNDS FOR CANCELLATION, REVOCATION & TERMINATION
XV. PENAL PROVISIONS
a. People v. Abad, GR No. L-55132, Aug. 30, 1988, 165 SCRA 57