Professional Documents
Culture Documents
Republic Act No. 7942
Republic Act No. 7942
Republic Act No. 7942
7942
AN ACT INSTITUTING A NEW
SYSTEM OF MINERAL RESOURCES
EXPLORATION, DEVELOPMENT,
UTILIZATION, AND CONSERVATION
DENR AO 96-40
* ANCESTRAL LANDS
* BLOCK / MERIDIONAL BLOCK
* CARRYING CAPACITY
* CONTIGUOUS ZONE
* CONTRACT AREA
* CONTRACTOR
* CO-PRODUCTION AGREEMENT
* ECOLOGICAL PROFILE / ECO-PROFILE
* ENVIRONMENTAL COMPLIANCE CERTIFICATE
(ECC)
* ENVIRONMENT IMPACT ASSESSMENT (EIA)
* ENVIRONMENTAL IMPACT STATEMENT (EIS)
* EXCLUSIVE ECONOMIC ZONE (ECZ)
* EXISTING MINING / QUARRYING RIGHT
* EXPLORATION
* FINANCIAL OR TECHNICAL ASSISTANCE
AGREEMENT
Important Concepts
* FOREIGN-OWNED CORPORATION
* GROSS OUTPUT
* INDIGENOUS CULTURAL COMMUNITIES (ICC)
* JOINT VENTURE AGREEMENT
* MINERALS
* MINERAL AGREEMENT
* MINERAL LAND
* MINERAL RESOURCE
* MINING AREA
* MINING OPERATION
* OFFSHORE V. ONSHORE
* PERMITTEE
* POLLUTION CONTROL AND INFRASTRUCTURE
DEVICES
* PRIVATE LAND
* QUALIFIED PERSON
* QUARRYING
* QUARRY PERMIT
* QUARRY RESOURCES
Important features
1. NON-IMPAIRMENT OF EXISTING MINING /
QUARRYING RIGHTS
* MINERAL RESERVATIONS
1. RESERVATION OF STRATEGIC RAW MATERIALS
2. RESERVATION FOR SCIENTIFIC, CULTURAL OR ECOLOGICAL VALUE
3. SUBMERGED LANDS WITHIN THE CONTIGUOUS ZONE (CZ) OR EXCLUSIVE
ECONOMIC ZONE (EEZ)
4. OTHERS WHEN NATIONAL INTERESTS SO REQUIRES
* MINERAL PRODUCTION
AGREEMENT
* CO-PRODUCTION AGREEMENT
* JOINT VENTURE AGREEMENT
Mineral Production Sharing Agreement
GOVERNMENT
EXCLUSIVE RIGHT TO CONDUCT MINING
OPERATIONS WITHIN A CONTRACT AREA
FINANCING MANAGEMENT
TECHNOLOGY PERSONNEL
=GROSS OUTPUT
Co-Production Sharing Agreement
Joint Venture Agreement
Joint Venture Agreement
Joint Venture Agreement
Who are eligible to enter into any of the modes of contract
* ELIGIBILITY
1. ANY QUALIFIED PERSON
2. TECHNICAL OR FINANCIAL
CAPABILITY TO UNDERTAKE
LARGE- SCALE EDU
Terms and conditions of an FTAA
1. SWORN STATEMENT CONTAINING A FIRM COMMITMENT OF AN AMOUNT
CORRESPONDING TO THE EXPENDITURE OBLIGATION THAT WILL BE INVESTED IN THE
CONTRACT AREA: PROVIDED, THAT SUCH AMOUNT SHALL BE SUBJECT TO CHANGES AS
MAY BE PROVIDED FOR IN THE RULES AND REGULATIONS OF THIS ACT
2. FINANCIAL GUARANTEE BOND IN FAVOR OF THE GOVERNMENT EQUIVALENT TO THE
EXPENDITURE OBLIGATION OF THE APPLICANT FOR ANY YEAR
3. PROOF OF TECHNICAL COMPETENCE, E.G., TRACK RECORD IN MINERAL RESOURCE
EDU; DETAILS OF TECHNOLOGY TO BE EMPLOYED IN THE PROPOSED OPERATION;
DETAILS OF TECHNICAL PERSONNEL TO UNDERTAKE THE OPERATION
4. REPRESENTATIONS AND WARRANTIES THAT THE APPLICANT HAS ALL THE
QUALIFICATIONS AND NONE OF THE DISQUALIFICATIONS FOR ENTERING INTO THE
AGREEMENT
5. REPRESENTATIONS AND WARRANTIES THAT THE CONTRACTOR HAS, OR HAS ACCESS
TO ALL THE FINANCING, MANAGERIAL AND TECHNICAL EXPERTISE, THE TECHNOLOGY
REQUIRED TO PROMPTLY AND EFFECTIVELY CARRY OUT THEOBJECTIVES OF THE
AGREEMENT WITH THE UNDERSTANDING TO TIMELY DEPLOY THESE RESOURCES
UNDER ITS SUPERVISION PURSUANT TO THE PERIODIC WORK PROGRAMS AND RELATED
BUDGETS, WHEN PROPER, PROVIDING AN EXPLORATION PERIOD UP TO TWO YEARS,
EXTENDIBLE FOR ANOTHER TWO YEARS BUT SUBJECT TO ANNUAL REVIEW BY THE
Terms and conditions of an FTAA
SECRETARY IN ACCORDANCE WITH THE IMPLEMENTING RULES AND
REGULATIONS OF THIS ACT, AND FURTHER, SUBJECT TO THE RELINQUISHMENT
OBLIGATIONS
6. REPRESENTATIONS AND WARRANTIES THAT, EXCEPT FOR PAYMENTS FOR
DISPOSITIONS FOR ITS EQUITY, FOREIGN INVESTMENTS IN LOCAL ENTERPRISES
WHICH ARE QUALIFIED FOR REPATRIATION, AND LOCAL SUPPLIER’S CREDITS
AND SUCH OTHER GENERALLY ACCEPTED AND PERMISSIBLE FINANCIAL
SCHEMES FOR RAISING FUNDS FOR VALID BUSINESS PURPOSES, THE
CONTRACTOR SHALL NOT RAISE ANY FORM OF FINANCING FROM DOMESTIC
SOURCES OF FUNDS, WHETHER IN PHILIPPINE OR FOREIGN CURRENCY, FOR
CONDUCTING ITS MINING OPERATIONS FOR AND IN THE CONTRACT AREA
7. MINING OPERATIONS SHALL BE CONDUCTED IN ACCORDANCE WITH THE
PROVISIONS OF RA 7942 AND ITS IRR
8. WORK PROGRAMS AND MINIMUM EXPENDITURES COMMITMENTS;
9. PREFERENTIAL USE OF LOCAL GOODS AND SERVICES TO THE MAXIMUM
EXTENT
PRACTICABLE
Terms and conditions of an FTAA
10. PREFERENCE TO FILIPINOS IN ALL TYPES OF MINING EMPLOYMENT FOR WHICH THEY
ARE QUALIFIED AND THAT TECHNOLOGY SHALL BE TRANSFERRED TO THE FILIPINOS
11. EFFECTIVELY USE OF APPROPRIATE ANTIPOLLUTION TECHNOLOGY AND FACILITIES
TO PROTECT THE ENVIRONMENT AND TO RESTORE OR
REHABILITATE MINED OUT AREAS AND OTHER AREAS AFFECTED BY MINE TAILINGS
12. UNDERTAKING THAT THE CONTRACTORS SHALL FURNISH THE GOVERNMENT
RECORDS OF GEOLOGIC, ACCOUNTING, AND OTHER RELEVANT DATA FOR ITS MINING
OPERATIONS,
13. UNDERTAKING THAT BOOK OF ACCOUNTS AND RECORDS SHALL BE OPEN FOR
INSPECTION BY THE GOVERNMENT;
14. UNDERTAKING THAT THE PROPONENT WILL DISPOSE OF THE MINERALS AND BUY
PRODUCTS PRODUCED AT THE HIGHEST PRICE AND MORE ADVANTAGEOUS TERMS AND
CONDITIONS
15. PROVIDE FOR CONSULTATION AND ARBITRATION WITH RESPECT TO THE
INTERPRETATION AND IMPLEMENTATION OF THE TERMS AND CONDITIONS OF THE
AGREEMENTS SUCH OTHER TERMS AND CONDITIONS CONSISTENT WITH THE
CONSTITUTION AND WITH RA 7946 AS THE SENR MAY DEEM TO BE
FOR THE BEST INTEREST OF THE STATE AND THE WELFARE OF THE FILIPINO PEOPLE
QUARRYING PERMIT
1. ANY QUALIFIED PERSON
2. WITH THE MINING REGULATORY BOARD
3. AREA – PUBLIC OR PRIVATE LANDS
4. FOR BUILDING OR CONSTRUCTION
MATERIALS
5. IF LARGE-SCALE – PERMITTEE MAY ENTER
INTO A MINERAL AGREEMENTS WITH THE
STATE
6. TERM – 5 YEARS, MAX. OF 25 YEARS
7. PROHIBITED AREAS
QUARRYING ACTIVITIES
* TIMBER RIGHTS
* WATER RIGHTS
* RIGHT TO POSSESS EXPLOSIVES
* EASEMENT RIGHTS
* ENTRY INTO PRIVATE LANDS AND
CONCESSION AREAS
Governmental share
1. IN MINERAL PRODUCTION SHARING AGREEMENT
2. IN OTHER MINERAL AGREEMENTS – FAIR AND EQUITABLE SHARING,
COMPENSATION FOR ITS CONTRIBUTION, INCOME TAX, EXCISE TAX,
SPECIAL
ALLOWANCE, WITHHOLDING TAX DUE FROM THE CONTRACTOR’S
FOREIGN STOCKHOLDERS ARISING FROM DIVIDEND OR INTEREST
PAYMENTS TO THE SAID FOREIGN STOCKHOLDERS, IN CASE OF A
FOREIGN NATIONAL, AND ALL SUCH OTHER TAXES, DUTIES AND FEES AS
PROVIDED FOR UNDER EXISTING LAWS
3. IN FTAA - THE CONTRACTOR’S CORPORATE INCOME TAX, EXCISE TAX,
SPECIAL ALLOWANCE, WITHHOLDING TAX DUE FROM THE
CONTRACTOR’S FOREIGN STOCKHOLDERS ARISING FROM DIVIDEND OR
INTEREST PAYMENTS TO THE SAID FOREIGN STOCKHOLDER IN CASE OF A
FOREIGN NATIONAL
AND ALL SUCH OTHER TAXES, DUTIES AND FEES AS PROVIDED FOR
UNDER EXISTING LAWS (SUBJECT TO TAX HOLIDAY PRIVILEGES)
GROUND FOR CANCELLATION, REVOCATION, AND
TERMINATION
PANEL OF ARBITRATORS
1. EACH REGIONAL OFFICE OF THE DENR
2. COMPOSITION – 2 FROM THE BAR AND 1 MINING ENGINEER OR A
RELATED PROFESSION
3. ORIGINAL AND EXCLUSIVE JURISDICTION
3.1. DISPUTES INVOLVING RIGHTS TO MINING AREAS;
3.2. DISPUTES INVOLVING MINERAL AGREEMENTS OR PERMITS;
3.3. DISPUTES INVOLVING SURFACE OWNERS, OCCUPANTS AND
CLAIMHOLDERS/CONCESSIONAIRES; AND,
3.4. DISPUTES PENDING BEFORE THE BUREAU AND THE
DEPARTMENT AT THE DATE OF THE EFFECTIVITY OF THIS ACT.
SETTLEMENT OF CONFLICTS
SUPREME COURT
RULE 45
COURT OF APPEALS
RULE 43
MINES ADJUDICATION BOARD 3 MEMBERS POWERS