PEOPLE'S SMALL-SCALE MINING ACT OF 1991

Case Overview and Summary

Summary of Republic Act No. 7076 (People's Small-scale Mining Act of 1991)

Objectives and Policies
- Promote, develop, protect and rationalize viable small-scale mining activities to generate employment and equitable sharing of natural resources. (Section 2)
- Establish a People's Small-scale Mining Program to achieve orderly and systematic small-scale mining development. (Section 4)

Definitions
- Defines key terms such as "mineralized areas", "small-scale mining", "small-scale miners", "small-scale mining contract", "small-scale mining contractor", "active mining area", "existing mining right", "claimowner", "processor", "license", "mining plan", "director", and "secretary". (Section 3)

People's Small-scale Mining Areas
- Authorizes the declaration and setting aside of people's small-scale mining areas, prioritizing areas occupied by small-scale miners before August 1, 1987. (Section 5)
- Specifies lands that may be declared as people's small-scale mining areas, including public lands, lands covered by existing mining rights but not active mining areas, and private lands with certain conditions. (Section 6)
- Requires consent from cultural communities for declaring ancestral lands as people's small-scale mining areas, with priority given to community members for mining contracts. (Section 7)

Registration and Contracts
- Requires registration of small-scale miners with the Board and organization into cooperatives to qualify for mining contracts. (Section 8)
- Allows the Board to award people's small-scale mining contracts to registered small-scale miners or cooperatives, with priority given to local residents. (Section 9)
- Limits the contract area to a maximum of 20 hectares per contractor and specifies criteria for determining the size and shape of the area. (Section 10)
- Grants easement rights to small-scale miners for accessing necessary facilities, subject to payment of reasonable fees. (Section 11)
- Entitles small-scale mining contractors to mine, extract, and dispose of mineral ores for commercial purposes within the contract area. (Section 12)
- Specifies the terms and conditions of the contract, including a 2-year renewable term, approved mining plan, safety and environmental compliance, reporting requirements, and payment of taxes and royalties. (Section 13)

Rights of Claimowners and Landowners
- Outlines the rights and privileges of claimowners with existing mining rights within a people's small-scale mining area, including exemptions from certain fees and taxes, access for exploration, and royalties. (Section 14)
- Requires notification and allows opposition from private landowners before declaring their land as a people's small-scale mining area. Encourages contractual agreements between landowners and small-scale miners, with landowners entitled to actual damages and royalties. (Section 15)

Mineral Ownership and Sales
- Grants ownership of millings (ore-bearing materials) to small-scale mining contractors, with the option to sell or process them, and a preemptive right for claimowners to purchase the millings. (Section 16)
- Requires all gold produced by small-scale miners to be sold to the Central Bank or its authorized representatives at competitive world market prices. (Section 17)

Custom Mills and Processing
- Limits the establishment and operation of custom mills (mineral processing facilities) to designated mineral processing zones by local government units upon the Board's recommendation. (Section 18)
- Allows the government to construct custom mills in areas where the private sector is unable to establish them, based on project viability. (Section 18)
- Requires the Board to issue licenses for custom mills and other processing plants, subject to pollution control and safety standards. (Section 18)
- Mandates the establishment of assay laboratories by the Department to cross-check the integrity of custom mills and provide metallurgical and laboratory services. (Section 18)
- Designates custom mills as withholding agents for royalties, production shares, and other taxes due to the government. (Section 18)

Government Share and Funds
- Subjects the government's revenue from the mining program to the sharing provisions of the Local Government Code. (Section 19)
- Creates a People's Small-scale Mining Protection Fund, comprising 15% of the national government's share, to be used for information dissemination, training, safety, environmental protection, mine rescue and recovery, and addressing needs arising from accidents or fortuitous events. (Section 20)

Enforcement and Penalties
- Allows the rescission of contracts and imposition of administrative fines ranging from ₱20,000 to ₱100,000 for non-compliance with contract terms, violations of rules and regulations, or abandonment of mining sites. (Section 21)
- Authorizes the withdrawal of the people's small-scale mining area status when it is no longer feasible for small-scale mining or when safety, health, and environmental conditions warrant reversion to the State. (Section 22)
- Protects small-scale miners in actual operation on or before August 1, 1987, from dispossession or removal, provided they comply with the Act's provisions. (Section 23)

Regulatory Board and Administration
- Creates a Provincial/City Mining Regulatory Board under the Secretary's supervision to implement the Act, including declaring mining areas, awarding contracts, formulating regulations, and settling disputes. (Section 24)
- Specifies the composition of the Board, including representatives from the Department of Environment and Natural Resources, local government, small-scale mining, large-scale mining, and a non-government environmental organization. (Section 25)
- Grants the Secretary direct supervision and control over the program and activities of small-scale miners, with the authority to promulgate rules and regulations within 90 days of the Act's effectivity. (Section 26)

Penal Sanctions and Other Provisions
- Imposes penalties of imprisonment from 6 months to 6 years and confiscation of equipment for violations of the Act or its implementing rules and regulations. (Section 27)
- Includes a repealing clause for conflicting laws, decrees, orders, and issuances. (Section 28)
- Contains a separability clause to preserve the validity of other provisions if any section is declared unconstitutional. (Section 29)
- Specifies the effectivity date as 15 days after publication in the Official Gazette or a national newspaper. (Section 30)