People's Small Scale Mining Act

People's Small Scale Mining Act (RA 7076)

• The State aims to promote, develop, protect, and rationalize viable small-scale mining activities to generate employment opportunities and share the nation's wealth equally.

Definitions

• Mineralized areas: Areas with naturally occurring mineral deposits (e.g., gold, silver, chromite, kaolin, silica, marble, gravel, clay).
• Small-scale miners: Filipino citizens who form a cooperative duly licensed by the Department of Environment and Natural Resources to engage in small-scale mining activities.
• Small-scale mining: Mining activities that rely heavily on manual labor using simple implements and methods, without explosives or heavy mining equipment.
• License: A privilege granted to a person to pursue small-scale mining or processing activities under this Act.
• Small-scale mining contract: A co-production, joint venture, or mineral production sharing agreement between the State and a small-scale mining contractor for the small-scale utilization of a plot of mineral land.
• Small-scale mining contractor: An individual or cooperative of small-scale miners registered with the Securities and Exchange Commission or other government agency, which has entered into an agreement with the State for the small-scale utilization of a plot of mineral land.

Objectives

• Ensure the effective implementation of the People's Small-Scale Mining Program.
• Effect an orderly, systematic, and ecologically balanced administration and disposition of small-scale mining areas.
• Regulate the small-scale mining industry to enhance its growth and ensure environmental protection.
• Provide technical, financial, and marketing assistance and ensure efficient collection of government revenues.

Ancestral Domain and Ancestral Land

• Ancestral Domain: All areas belonging to Indigenous Cultural Communities (ICCs)/Indigenous Peoples (IPs).
• Ancestral Land: Land occupied, possessed, and utilized by ICCs/IPs since time immemorial.

Provincial/City Mining Regulatory Board (PMRB)

• Composed of:
  • Regional Director authorized representative as Chairperson.
  • Provincial Governor or City Mayor.
  • One small-scale mining representative.
  • One large-scale mining representative.
  • One representative from an environmental NGO.
• Functions:
  • Declares existing gold-rich areas for small-scale mining.
  • Reserves mineralized areas as Minahang Bayan.
  • Evaluates and approves PEIMP, CDMP, ASHP.
  • Awards Small-Scale Mining Contracts and Mineral Processing License.
  • Formulates guidelines, rules, and regulations.
  • Settles disputes over conflicting claims within a small-scale mining area.

Minahang Bayan (People's Small-Scale Mining Area)

• The entire area declared by the Board for the conduct of small-scale mining.
• Small-scale mining can only be done within a Minahang Bayan.
• Small-scale mining requires a Small-Scale Mining Contract.

Registration of Small-Scale Miners

• Qualified persons: Filipino citizens of legal age with capacity to contract or 100% Filipino-owned corporations organized for small-scale mineral processing.
• Requirements:
  • Filipino citizen.
  • Legal age.
  • Government-issued ID.
  • Barangay Clearance.
  • Certificate of attended skills and safety trainings.
  • Registration is valid for 3 years, renewable for like periods.

Mineral Processing

• Can only be done in Mineral Processing Zones (MPZ) under a Mineral Processing License (MPL).
• No mercury can be used in small-scale mineral processing.

Grounds for Suspension/Cancellation of Small-Scale Mining Contracts/MPL

• Violation of safety standards.
• Violation of terms and conditions.
• Late or non-submission of requirements.
• Non-compliance with approved PEIMP, CDMP, and ECC.
• Non-compliance with approved 2-Year Work Program.
• Other grounds.

Assistance to Small-Scale Miners

• Organization of small-scale miners into cooperatives.
• Technical and financial assistance and social services.
• Processing and marketing assistance.
• Generation of necessary livelihood activities.

Payment of Taxes and Government Production Share

• National and local taxes due.
• Royalty, if within mineral reservations.
• Government production share.

Gold from Small-Scale Mining

• All gold produced from Minahang Bayan shall be sold to the Bangko Sentral ng Pilipinas (BSP) or its duly accredited traders at prices competitive with those in the world market.
• The Director shall ensure that a list of registered small-scale miners is made available to the BSP.

Small-Scale Mining Contracts

• The Board shall determine the size of Small-Scale Mining Contracts (SSMCs) following the meridional block system, with a minimum of 1.25 hectares and a maximum of 20 hectares per SSMC.
• SSMCs have a term of 2 years, renewable for like periods.