Proving For A Modernized System Of Administration And Disposition Of Mineral Lands And To Promote And Encourage The Development And Exploitation Thereof
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Proving For A Modernized System Of Administration And Disposition Of Mineral Lands And To Promote And Encourage The Development And Exploitation Thereof
Presidential Decree No. 463
May 17, 1974
Case Overview and Summary
Summary of the Mineral Resources Development Decree of 1974 (Presidential Decree No. 463)Definitions (Section 2)
- Defines key terms such as "minerals", "mineral deposit", "mineral lands", "quarry resources", "exploration", "development", "exploitation", "mining", "qualified person", "lessee", and "regulations".
Ownership of Mineral Lands and Mineral Deposits (Chapter II)
- All mineral deposits belong to the State, inalienably and imprescriptively. (Section 3)
- Ownership or right to use land does not include ownership or right to develop mineral deposits, except for quarry resources. (Section 4)
- Valuable mineral deposits in public or private lands are open to prospecting, occupation, location, and lease, subject to existing rights or reservations. (Section 5)
Mineral Reservations (Chapter III)
- The President may establish mineral reservations and prescribe terms for their disposition and operation. (Section 6)
- Existing mining claims within reservations are not prejudiced. (Section 7)
- Reserved lands valuable for minerals may be withdrawn and established as mineral reservations. (Section 8)
- Mineral reservations are closed to mining location, but the government may prospect, develop, and exploit them through agencies, instrumentalities, or independent contractors. (Sections 9-10)
Location of Claims (Chapter IV)
- Only qualified persons may locate mining claims in public and private lands. (Section 11)
- Procedures for obtaining permission to enter public and private lands for prospecting or mining operations. (Section 12)
- Areas closed to mining location, such as military reservations, existing mining claims, and near public or private works. (Section 13)
- Size and shape of mining claims. (Section 14)
- Procedures for declaring and recording the location of a mining claim. (Sections 15-20)
- Voluntary abandonment of mining claims. (Section 21)
Mining Recorders, Districts, and Regions (Chapter V)
- The Director is responsible for proper recording of mining instruments and may designate deputies as mining recorders. (Section 22)
- Existing mining regions are maintained, and the Secretary may establish new ones. (Section 23)
Annual Work Obligations (Chapter VI)
- Claim owners must perform annual work obligations on their mining claims, with specified minimum values per hectare before and after the lease contract is granted. (Section 24)
- Group development and carrying forward excess expenditures are allowed. (Section 25)
- Legitimate expenditures for work obligations are defined. (Section 26)
- Proof of compliance with annual work obligations must be submitted. (Section 27)
Lease Survey of Mining Claims (Chapter VII)
- Application for lease survey must be filed within one year from recording the claim. (Section 28)
- Procedures for execution and monumenting of surveys. (Sections 29-31)
- Time limit for submitting survey returns. (Section 32)
- Mines temporary permit may be issued pending the lease contract. (Section 33)
Lease of Mining Claims (Chapter VIII)
- Time limit to apply for lease and consequences of failure to apply. (Sections 34-35)
- Requirements for lease application, including qualifications of the applicant. (Sections 36-38)
- Publication of lease application and procedures for handling adverse claims. (Sections 39-40)
- Issuance of mining lease contract for up to 25 years, renewable for another 25 years. (Section 40)
- Withdrawal from lease due to force majeure or unprofitability. (Section 41)
- Mining lease on private land requires landowner's authority. (Section 42)
- Maximum lease area allowed for individuals and corporations, with exceptions. (Section 43)
- Rights granted by a mining lease contract, including the right to extract minerals, use the land, and enter into service contracts. (Section 44)
- Laws and regulations are considered part of the lease contract. (Section 45)
- Termination of lease rights and removal of improvements. (Sections 46-47)
Protest, Adverse Claims, and Appeals (Chapter IX)
- Procedures for filing and handling protests and adverse claims. (Sections 48-49)
- Priority rights in case of conflict of mining claims. (Section 49)
- Appeals process for decisions or orders of the Director and Secretary. (Section 50)
Fiscal Provisions (Chapter X)
- Obligation to pay occupation fees, rentals, royalties, and taxes on mining claims and minerals extracted. (Section 51)
- Prohibition on provinces, cities, municipalities, etc. from levying taxes, fees, or charges on mines, mining operations, and mineral products. (Section 52)
- Tax exemptions for imported machinery, equipment, and supplies for new or resuming mines for a period of 5 years from commercial production. (Section 53)
- Requirement to submit copies of receipts for payment of rentals or royalties. (Section 54)
- Liability for unpaid rentals and royalties upon termination or cancellation of lease. (Section 55)
Auxiliary Mining Rights (Chapter XI)
- Right to cut trees or timber within mining claims, subject to reforestation obligations. (Section 56)
- Right to water rights for development or operation of mining claims. (Section 57)
- Right to easements for construction of facilities necessary for mining operations, with payment of just compensation. (Section 58)
- Eminent domain proceedings for obtaining easement rights. (Section 59)
Mines Personnel, Inspection, and Safety (Chapter XII)
- Obligation to give preference to Filipino citizens in mining employment and maintain training programs. (Section 60)
- Restrictions on employment of minors in mining operations. (Section 61)
- Requirement for mining operations to be directed and supervised by qualified persons. (Section 62)
- Authority of the Director or representatives to inspect mining operations for safety, mineral conservation, pollution, and compliance with lease terms. (Section 63)
- Procedures for addressing dangerous or defective practices. (Section 64)
- Reporting requirements for accidents. (Section 65)
Quarry Resources (Chapter XIII)
- Quarry resources may be exploited through permits on private lands and licenses on public lands. (Section 66)
- Preferential right of private landowners to exploit quarry resources on their lands. (Section 67)
- Procedures for applying for quarry permits or licenses. (Section 68)
- Maximum area for quarry licenses. (Section 69)
- Survey requirement for quarry license applications. (Section 70)
- Rights of quarry permittee or licensee. (Section 71)
- Term of quarry permit or license and renewal procedures. (Section 72)
- Quarry fees and royalties. (Section 73)
- Cancellation of quarry permit or license. (Section 74)
Penal Provisions (Chapter XIV)
- Penalties for various offenses, including false statements, intentional overlapping of claims, destruction of claim monuments, theft of minerals, fraudulent conveyance of mining interests, salting of mineral lands, pollution from mine wastes, interference with water rights, destruction of mining structures, arson, willful damage to mines, obstruction of government officials or lessees, and delay in payment of taxes, rentals, or royalties. (Sections 75-89)
General Provisions (Chapter XV)
- The Secretary, through the Director, is the executive officer charged with carrying out the provisions of the Decree. (Section 90)
- Conservation measures to be taken by lessees, including maximizing recovery, preventing waste, and providing for alternative industries when mines are exhausted. (Section 91)
- Work obligations, taxes, and royalties fixed by the Decree are inherent in mining leases granted under it. (Sections 92-93)
- Procedures for mine evaluation and appraisal. (Section 94)
- Authority of the Bureau of Mines to conduct exploration and drilling on registered mining claims, with reimbursement by claim owners if commercial deposits are proven. (Section 95)
- Land grants do not include mineral deposits. (Section 96)
- Assignment of mining rights requires prior approval of the Secretary. (Section 97)
- Lessees undertaking underground operations must prepare and maintain maps of workings. (Section 98)
Transitory and Final Provisions (Chapter XVI)
- Non-impairment of vested or acquired substantive rights under previous mining laws. (Section 99)
- Holders of valid mining rights under other laws may avail of the rights and privileges under this Decree by applying within 2 years. (Section 100)
- Recognition and survey of old subsisting mining claims, subject to compliance with requirements. (Section 101)
- Conditional mining acts and contracts under previous laws remain valid but subject to revocation or modification under this Decree. (Section 102)
- Lessee's preferential right to apply for areas covered by abandoned or expired rights granted under other laws. (Section 103)
- Separability clause. (Section 104)
- Repealing clause for conflicting laws, decrees, rules, and regulations. (Section 105)
- Effectivity date. (Section 106)
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Proving For A Modernized System Of Administration And Disposition Of Mineral Lands And To Promote And Encourage The Development And Exploitation Thereof
Presidential Decree No. 463
•May 17, 1974
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 463 May 17, 1974
PROVING FOR A MODERNIZED SYSTEM OF ADMINISTRATION AND DISPOSITION OF MINERAL LANDS AND TO PROMOTE AND ENCOURAGE THE DEVELOPMENT AND EXPLOITATION THEREOF
WHEREAS, mineral production is a major support of the national economy, and therefore the intensified discovery, exploration, development and wise utilization of the country's mineral resources are urgently needed for national development.
WHEREAS, the existence of large undeveloped mineral areas and the proliferation of small mining claims deter modern development of the country's mineral resources and urgently require well-planned exploration, development and systematic exploitation of mineral lands to accelerate production and to bolster the national economy.
WHEREAS, effective and continuous mining operations require considerable outlays of capital and resources, and make it imperative that persons possessing the financial resources and technical skills for modern exploratory and development techniques be encouraged to undertake the exploration, development and exploitation of our mineral resources;
WHEREAS, the foregoing objectives cannot be achieved within the shortest possible time without removing the deficiencies and limitations of...
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