AN ACT AUTHORIZING THE DEVELOPMENT
Download as PDF
Download as Word
Collections
Create new Collection
Overview
Full Text
Details
Case
Agency Issuance Number
Published Date
AN ACT AUTHORIZING THE DEVELOPMENT
Republic Act No. 1828
June 22, 1957
Case Overview and Summary
Summary of Republic Act No. 1828 (as amended)Policy and Purpose
• Declares the government's policy to develop, exploit, utilize, process, and dispose of mineral deposits in the Surigao Mineral Reservation, either by itself, jointly with private enterprise, or through independent contractors. (Section 1)
Surigao Mineral Reservation Board
• Creates the Surigao Mineral Reservation Board to implement the provisions of the Act, known as the "Nickel Law". (Section 2)
• Authorizes the Board to organize an office, appoint staff, and secure assistance from other government offices.
Modes of Operation
• Authorizes the President to determine the mode of operation: (Section 2)
- Undertaken by the government itself, with authority to contract loans and/or float bonds up to 200 million pesos.
- Undertaken jointly with private enterprise, with the government owning at least 51% of the capital stock, and authority to contract loans and/or float bonds.
- Undertaken through an independent contractor or contractors, subject to bidding or negotiation, with the Board's approval and the President's approval.
Rights and Privileges
• The President may grant the following rights and privileges: (Section 3)
- Necessary rights over areas for investigation within the Surigao Mineral Reservation.
- Exemption from laws and regulations related to importation of machinery, equipment, and materials; construction and operation of power plants; and exportation of machinery and equipment.
- Exportation of mineral products, provided domestic requirements are satisfied first.
- Importation of highly technical and specialized personnel and executive staff, subject to regulations.
- Gratuitous use of timber and water for mining and processing purposes.
Limitations
• The President cannot: (Section 4)
- Grant a contract term exceeding 25 years, renewable for another 25 years.
- Exempt the operator from laws of general application, such as labor, health, safety, and general welfare.
- Exempt the operator from measures adopted during war or national emergency.
Relationship with Private Enterprise
• Provisions governing the relationship between the government and private enterprise holding minority capital stock and/or contractor: (Section 5)
- Minority stockholder and/or contractor can repatriate foreign capital investments, plus interest, and remit profits or dividends.
- Final area selection not exceeding 25,000 hectares.
- Rights and obligations governed by shares held.
- Preference for Philippine citizens in employment and training programs.
Terms and Conditions for Independent Contractors
• Terms and conditions for independent contractors: (Section 6)
- Compensation of 1 peso per year, plus a portion of gross annual receipts, with the government retaining at least 3.5% of gross annual receipts.
- Tax exemptions for the first 5 years after commencement of production, except for personal taxes of personnel.
- Requirement to put the area into actual production within 5 years.
- Filing of a bond to guarantee compliance.
- Entitlement to repatriate foreign capital investment, plus interest, and remit profits or dividends.
- Selection of a final area not exceeding 25,000 hectares within 1 year of commercial production.
- Preference for Philippine citizens in employment and training programs.
- Subjection to the jurisdiction of Philippine courts.
Additional Terms for Other Mineral Deposits
• Additional terms and conditions for operations involving mineral deposits other than nickel, cobalt, and iron: (Section 6-A)
- Payment of a royalty of at least 5% of gross annual receipts.
- Tax exemptions for the first 5 years after commencement of production, except for personal taxes of personnel.
- Requirement to put the area into operation within 2 years.
- Furnishing of management, technological, and financial services by the operator.
- Filing of a bond to guarantee compliance.
- Entitlement to repatriate foreign capital investment, plus interest, and remit profits or dividends.
- Selection of a final area not exceeding 30,000 hectares within 15 years.
- Preference for Philippine citizens in employment and training programs.
- Furnishing of information, data, and records to the Bureau of Mines.
Royalty Distribution
• Royalties derived from operations involving mineral deposits other than nickel, cobalt, and iron shall accrue equally to the Surigao Mineral Reservation Board and the Bureau of Mines for special projects and exploration/development of other mineralized government reservations. (Section 6-B)
Public Scrutiny
• Negotiations and proposals regarding the operation of the Surigao Mineral Reservation shall be open to public scrutiny and publicity. (Section 7)
Appropriation
• Appropriates 300,000 pesos from the National Treasury to cover expenses, including salaries, wages, and per diems of the Board and its staff. (Section 8)
• Specifies the per diem rates for the Chairman (30 pesos) and members (25 pesos) of the Board.
Inconsistent Laws
• All laws inconsistent with the provisions of this Act are amended or repealed. (Section 9)
Effectivity
• The Act shall take effect upon its approval. (Section 10)
Amends
n/a
Amended by
n/a
Tags
Statutes
Republic Acts
mineral deposits
Surigao Mineral Reservation
nickel
cobalt
iron
mining
exploitation
utilization
processing
disposition
independent contractor
operating contract
government
private enterprise
foreign capital investment
repatriation
remittance
profits
dividends
tax exemptions
royalties
bond
preference for Philippine citizens
training programs
public scrutiny
appropriation
per diems
Law
AN ACT AUTHORIZING THE DEVELOPMENT
Republic Act No. 1828
•June 22, 1957
REPUBLIC ACT No. 1828
(as amended by RA 2077, RA 4167 and PD 1001)
AN ACT AUTHORIZING THE DEVELOPMENT, EXPLOITATION AND UTILIZATION OF THE MINERAL DEPOSITS IN THE SURIGAO RESERVATION AND, FOR THE PURPOSE, AUTHORIZING THE PRESIDENT OF THE PHILIPPINES TO HAVE THE SAME UNDERTAKEN EITHER BY THE GOVERNMENT ITSELF, OR JOINTLY WITH PRIVATE ENTERPRISE, OR BY ENGAGING THE SERVICES OF INDEPENDENT CONTRACTOR OR CONTRACTORS, TO CREATE AN OFFICE OR AGENCY, AND TO CONTRACT LOANS AND/OR FLOAT BONDS AND FOR OTHER PURPOSES
Section 1. Recognizing the importance to the national economy of the development, exploitation and utilization of the mineral deposits in the Surigao Mineral Reservation and the processing and disposition of the minerals that may be produced therefrom, it is hereby declared to be the policy of the Government to undertake such development, exploitation, utilization, processing and disposition either by itself, or jointly with private enterprise, or by engaging and utilizing the services of persons or corporations, as independent contractor or contractors sixty per centum (60%) of the capital stock of which is owned...
Login to see full content
Amends
n/a
Amended by
n/a