Institutionalizing And Implementing Reforms In The Philippine Mining Sector Providing Policies And Guidelines To Ensure Environmental Protection And Responsible Mining In The Utilization Of Mineral Resources

Case Overview and Summary

Summary:

Areas Closed to Mining Applications (Section 1):
- Mining applications are not allowed in the following areas:
• Areas enumerated under Section 19 of RA No. 7942.
• Protected areas under the National Integrated Protected Areas System (NIPAS).
• Prime agricultural lands, plantations, valuable crop areas, strategic agriculture and fisheries development zones, and fish refuge and sanctuaries.
• Tourism development areas identified in the National Tourism Development Plan.
• Other critical areas, island ecosystems, and impact areas of mining as determined by the DENR.
• Existing mining contracts, agreements, and concessions approved before this Order shall remain valid if they comply with laws, rules, and regulations.

Full Enforcement of Environmental Standards in Mining (Section 2):
• The DENR, in coordination with LGUs, shall ensure that environmental standards in mining are fully and strictly enforced, and sanctions meted out against violators (Section 2).
• Only those who can strictly comply with all pertinent requirements shall be eligible for the grant of mining rights (Section 2).

Review of Existing Mining Operations and Non-Moving Mining Rights Holders (Section 3):
• A multi-stakeholder team led by the DENR shall conduct a review of the performance of existing mining operations based on guidelines, parameters, and applicable laws (Section 3).
• Appropriate action shall be taken against proven violators based on the review findings and recommendations (Section 3).

Grant of Mineral Agreements Pending New Legislation (Section 4):
• No new mineral agreements shall be entered into until a legislation rationalizing existing revenue sharing schemes and mechanisms takes effect (Section 4).
• The DENR may continue to grant Exploration Permits, and grantees shall have the right of first option to develop and utilize minerals upon approval of mining project feasibility and effectivity of the said legislation (Section 4).
• The DENR shall review existing mining contracts and agreements for possible renegotiation of terms and conditions (Section 4).

Establishment of Mineral Reservations (Section 5):
• Potential and future mining areas with known strategic mineral reserves and resources shall be declared as Mineral Reservations for the development of strategic industries identified in the Philippine Development Plan and a National Industrialization Plan (Section 5).
• This shall not prejudice previous agreements, contracts, rights and obligations between the government and mining contractors/operators (Section 5).

Opening of Areas for Mining through Competitive Public Bidding (Section 6):
• The grant of mining rights and mining tenements over areas with known and verified mineral resources and reserves, including those owned by the Government and all expired tenements, shall be undertaken through competitive public bidding (Section 6).
• The MGB shall prepare the necessary competitive bid packages and guidelines, including ensuring the social acceptability of the proposed project (Section 6).
• All other mining rights and tenements applications shall be processed and approved through existing procedures (Section 6).

Disposition of Abandoned Ores and Valuable Metals in Mine Wastes and Mill Tailings (Section 7):
• All valuable metals in abandoned ores and mine wastes and/or mill tailings generated by previous and now defunct mining operations belong to the State and shall be developed and utilized through competitive public bidding (Section 7).
• In existing mining operations, all valuable metals in mine wastes and/or mill tailings shall automatically belong to the State upon the expiration of the pertinent mining contracts and shall be similarly developed and utilized through public bidding (Section 7).
• The State's assumption of responsibility over the structures and facilities relating to mine wastes and mine tailings shall not prejudice any liability that may be found against mining contractors for any harm or damage caused by said structures and facilities, mine wastes and mine tailings prior to the said assumption of responsibility (Section 7).

Value-Adding Activities and Development of Downstream Industries (Section 8):
• The DENR, in coordination with other agencies, the mining industry, and stakeholders, shall submit within six (6) months a national program and road-map for the development of value-adding activities and downstream industries for strategic metallic ores based on the Philippine Development Plan and a National Industrialization Plan (Section 8).

Constituting the Mining Industry Coordinating Council (MICC) (Section 9):
• The Climate Change Adaptation and Mitigation and Economic Development Cabinet Clusters shall constitute themselves into an interagency forum known as the Mining Industry Coordinating Council (MICC) (Section 9).
• The MICC shall be co-chaired by the Chairpersons of the two (2) clusters and shall have additional members from the DOJ, NCIP, and ULAP (Section 9).

Powers and Functions of the MICC (Section 10):
• Submit a work plan within sixty (60) days for the implementation of this Order and other reforms related to the mining industry (Section 10a).
• Ensure continuing dialogue and coordination among all stakeholders in the industry (Section 10b).
• Conduct capacity and institutional building programs for concerned government agencies and instrumentalities (Section 10c).
• Conduct an assessment and review of all mining-related laws, rules and regulations, issuances, and agreements to formulate recommendations for improvement (Section 10d).
• Constitute and create a Task Force Against Illegal Mining and seek assistance from law enforcement agencies (Section 10e).
• Serve as the Oversight Committee over the operations of Provincial/City Mining Regulatory Boards (P/CMRBs) (Section 10f).
• Request assistance from any government agency or instrumentality, including government-owned and controlled corporations and LGUs, in the implementation of this Order (Section 10g).
• Submit periodic reports to the President on the status of the implementation of this Order (Section 10h).
• Perform other functions and acts as may be necessary, proper or incidental to the attainment of its mandates and objectives, or as may be directed by the President (Section 10i).

Measures to Improve Small-Scale Mining Activities (Section 11):
• Small-scale mining activities shall comply with RA NO. 7076 (People's Small-Scale Mining Act of 1991) and the Environmental Impact Statement System requirements under PD No. 1586 (Section 11a).
• Small-scale mining operations shall be undertaken only within the declared People's Small-Scale Mining Areas or Minahang Bayan (Section 11b).
• P/CMRBs in provinces and cities where they have not been constituted shall be operationalized within three (3) months from the effectivity of this Order (Section 11c).
• Small-scale mining shall not be applicable for metallic minerals except gold, silver, and chromite (Section 11d).
• The use of mercury in small-scale mining shall be strictly prohibited (Section 11e).
• Training and capacity building measures in the form of technical assistance for small-scale mining cooperatives and associations shall be conducted by the concerned government agencies (Section 11f).

Consistency of Local Ordinances with the Constitution and National Laws/LGU Cooperation (Section 12):
• The DILG and the LGUs are directed to ensure that the exercise of the latter's powers and functions is consistent with and conform to the regulations, decisions, and policies already promulgated and taken by the National Government relating to the conservation, management, development, and proper utilization of the State's mineral resources, particularly RA No. 7942 and its implementing rules and regulations, while recognizing the need for social acceptance of proposed mining projects and activities (Section 12).
• LGUs shall confine themselves only to the imposition of reasonable limitations on mining activities conducted within their respective territorial jurisdictions that are consistent with national laws and regulations (Section 12).
• Concerned government agencies, particularly the DENR, DBM, and DOF, are directed to ensure the timely release of the share of LGUs in the National Wealth pursuant to Section 289 of RA No. 7160, or the Local Government Code of 1991, and to study the possibility of increasing LGUs' share as well as granting them direct access similar to existing arrangements with the PEZA (Section 12).
• LGUs, DENR, and the MGB shall strictly implement RA No. 7076 to ensure the protection of the environment, address various issues in small-scale mining, and ensure that violators thereof are subjected to appropriate administrative and criminal liability (Section 12).

Creating a One-stop Shop for all Mining Applications and Procedures (Section 13):
• The DENR is directed to establish an inter-agency one-stop shop for all mining related applications and processes within six (6) months from the effectivity of this Order (Section 13).
• The DENR shall issue authority to verify mineral deposits only for areas open to mining, as defined in this Order (Section 13).
• No MPSA, FTAA, JVA, or CPA shall be approved without the FPIC of the concerned IPs and compliance with the social acceptability requirement of the communities affected (Section 13).
• All concerned government agencies and instrumentalities, including but not limited to the DENR-MGB, NCIP, DOF, and concerned LGUs are directed to ensure an efficient and effective consolidation of functions, and to cooperate and render assistance as may be necessary (Section 13).

Improving Transparency in the Industry by Joining the Extractive Industries Transparency Initiative (Section 14):
• In order to improve transparency, accountability, and governance in the sector, the government shall support and commit participation in the Extractive Industries Transparency Initiative (EITI) (Section 14).
• The DENR is mandated to ensure that mechanisms are established to operationalize the EITI in the mining sector, in consultation and coordination with the mining industry and other concerned stakeholders (Section 14).

Creation of a Centralized Database for the Mining Industry (Section 15):
• The DENR is directed to create a centralized database of all mining-related information within six (6) months from the effectivity of this Order (Section 15).
• The database shall initially include all available data on the industry from all government agencies and instrumentalities, and shall be publicly accessible, transparent, complete, and comprehensive (Section 15).
• Information and data gathered from the conduct of Resource Accounting or Full-Cost Benefit Analysis Studies, in line with the WAVES and the NCCAP, shall also be made part of the centralized database (Section 15).

Integrated Map System to Include Mining Related Maps (Section 16):
• Current and existing efforts to create an integrated map system for the common and uniform use of all government agencies and instrumentalities shall include all mining-related maps, such as mining tenement maps, geo-hazard and multi-hazard maps, ancestral lands and domains, and protected areas under the NIPAS, among others (Section 16).
• The maps in the system, including the mining-related maps, shall guide all planning and decision-making processes (Section 16).
• Areas closed to mining operations, as provided for in Section 2 of this Order and in other pertinent laws, rules, and regulations, shall be clearly defined and delineated under the integrated map system (Section 16).

Use of the Programmatic Environmental Impact Assessment (Section 17):
• The DENR and the EMB shall study the adoption of the Programmatic Environmental Impact Assessment (PEIA) in the implementation of the Philippine Environmental Impact Statement System (PEISS) under PD No. 1586, for mining projects and related activities, and issue the necessary amendatory rules and regulations (Section 17).
• The DENR-EMB is also directed to study the use and implementation of the PEIA for other industries and activities covered by the PEISS (Section 17).

Funding (Section 18):
• All government agencies involved in the implementation of this Order are authorized to allocate from their existing funds such amounts as may be necessary for the budgetary requirements that may be needed to pursue the objectives of this Order, subject to the usual government accounting and auditing rules and regulations (Section 18).

Implementing Rules and Regulations (IRRs) (Section 19):
• The DENR, working with the MICC, shall issue the pertinent IRRs within sixty (60) days from the effectivity of this Order (Section 19).

Separability Clause (Section 20):
• If any provision of this Order is declared invalid and unconstitutional, all other provisions unaffected shall remain valid and subsisting (Section 20).

Repealing Clause (Section 21):
• All other rules, regulations and issuances or parts thereof that are inconsistent with this Executive Order are hereby repealed or modified accordingly (Section 21).

Effectivity (Section 22):
• This Order shall take effect immediately upon its publication in a newspaper of general circulation (Section 22).