Engr. Emily dela Cruz Boards Reviewer - 33-47 PDF

Stages in the Life of Mine Prospecting - Aka Reconnaissance Exploration, Fossicking - Part of exploration - Direct search for surface indication of mineralization/ geological occurrences or anomalies with the potential to become ore deposits Factors to consider Valid existing...

Stages in the Life of Mine Prospecting - Aka Reconnaissance Exploration, Fossicking - Part of exploration - Direct search for surface indication of mineralization/ geological occurrences or anomalies with the potential to become ore deposits Factors to consider Valid existing geologic information Climatic condition Location and accessibility Terrain and vegetation Local permits and clearances Available maps (topographic and geologic) Peace and order Budget Existing infrastructures and utilities at the prospect area Terms: - Ancestral Land: all lands exclusively and actually possessed, occupied, or utilized by indigenous cultural communities by themselves or through their ancestors - Claimowner: qualified person who has registered mining claims under previous mining laws or under the PD 463 - Contract Area: land or body of water delineated for purposes of exploration, development, or utilization of the minerals found therein  - Contractor: contract holders (MA / FTAA) under RA 7942 - Critical Watershed: drainage area of a river system, lake or water reservoir - Forest Reservations: forest lands which have been reserved by President - Lessee: leaseholder, claim owner or operator as the context of PD463 indicates - Permittee: holder of an exploration permit - Permit Holder: hold Mineral Processing Permit - Private Land: any land belonging to any private person - Public Land: lands of the public domain which have been classified as agricultural lands and subject to management and disposition or concession under existing laws - Service Contractor: anyone who entered into an agreement to undertake a specific work related to mining or quarrying operations Important Areas Areas Closed to Mining RA 7942 and DAO 2010-21 o Areas expressly prohibited by law, like ▪ RA 7586 (National Integrated Protected Areas System or NIPAS Act) ❖ Forests: virgin, mangrove, mossy, provincial, municipal ❖ Proclaimed watershed forest reserves ❖ Wilderness area ❖ National parks ❖ Greenbelts ❖ Game refuge ❖ Bird sanctuaries ▪ EO 79 s. 2012 ❖ Prime agricultural lands and fishery zones ❖ Tourism and development areas ❖ Other critical areas, like permanent danger zones and critical habitats o Areas excluded by secretary, like built-up areas and critical watersheds o Onshore, within 200 meters from the mean low tide level o Offshore ▪ Areas < 500 m from mean low tide level ▪ For aggregate quarrying: < 1,500 m from mean low tide level and seabed depth is < 30 m at mean sea level Areas That May be Open to Mining RA 7942 and DAO 2010-21 o Areas covered by FTAA applications is open to quarrying applications ▪ Written consent of FTAA applicant is needed unless it is sand and gravel quarrying ▪ Deposit must not be alluvial gold o Military and government reservations ▪ Written consent of concerned agency needed o Near or under infrastructure projects, and public/private works like plantations ▪ Need consent o Areas already covered with valid and existing rights and other prior agreements, and those covered by small scale mining permits ▪ Need consent and also pay royalty o Ancestral lands or domains ▪ Need prior and informed consent - Resolution of Non-Consent will be given if ICC do not agree - Resolution of Consents and MOA will be given if they agree ▪ Memorandum of agreement must be written in the community’s language and translated into English or Filipino ▪ Royalty will be discussed, but it must not be 500 ha, and only 25% of (area – 500 ha) will open ▪ For non-metallic deposit - Mineralized area > 1,000 ha, only 25% of (area – 1,000 ha) will open ▪ Must pay royalty after written consent is given o Private lands ▪ Need written consent ▪ Pay royalty < 1% gross value recovered o Ancestral domains or lands ▪ Need prior and informed consent Areas That May Open to Exploration DAO 2000-98 o No exploration activities in abandoned workings and shafts unless declared safe by safety engineer/inspector after thorough inspection Areas Open to Mining RA 7942 and DAO 2010-21 o Mineral reservations ▪ All submerged lands in Contiguous and EEZs are declared as mineral reservations ▪ Established by President upon recommendation of Director through Secretary when there is a need to conserve mineral resources for the best interest of the country o All public, private, forestlands and timberlands not covered by valid and existing permit and/or rights RA 7076 and DAO 2015-03 for small scale mining o Areas already occupied and actively mined by SSM ▪ Minahang Bayan declared by P/C MRB o Mineral Reservations: preferential right to mine for a max aggregate area = 25% of mineral reservation’s area PD 972 for coal mining o Coal regions PD 87 for petroleum o Petroleum reservations o National reserve areas Exploration Permit What? Initial mode of entry in mineral exploration (2010-21) For non-FTAA Who? Qualified person  Filipino citizen, legal age, has capacity to form a contract  Corporation with technical and financial capability to mine, duly registered, >60% of capital is Filipino-owned Regional Director  can approve exploration permit upon clearance of Director  can approve transfer of exploration permit application Secretary and Director  Approve transfer to another qualified person  Grant renewal of exploration permit (approved by Secretary through Director)  Secretary can approve extra exploration permit renewal How? Apply with Regional Office Needed:  1:50,000 NAMRIA topographic map   2-year Exploration Work Program  Proof of technical competence  Proof of financial capability  Additional requirement for offshore: → All necessary details about the vessels to be used → Certification from NAMRIA as proof of registry of Exploration Work Program → Agree to notify Bureau 30 days before removal of all scientific installations, and allow Bureau’s and other government authorized personnel to board vessel while within EEZ Needed after Acceptance of application:  Certificate of Environment Management and Community Relations Record (CEMCRR) → AEutomatic issuance if not acted upon within 15 days  For first timers: Certificate of Exemption (COE)  These two are issued by Regional Office  Environmental Work Program → Submit within 30 days, and then every 6th month after first submission → EPEP counterpart for exploration period Needed within 90 days from issuance of exploration permit:  Area with no ICC: Certificate of Non-Overlap or NCIP report  Area with ICC: Certification of Precondition or Memorandum of Agreement Other Information Panel of arbitrators will resolve conflict between Permittee and private surface owners Exploration Permit holders have priority in getting a mineral exploitation rights in the area covered by their valid permits If Bureau conducts and completes exploration activities, any interested party who wish to apply for mining right in that explored area shall reimburse 12% of the Bureau’s expenses Exploration Permit vs Exploration for FTAA Normal Exploration Permit Exploration for FTAA Terms 2 years, renewable for like Exploration period is part of periods the 25 year term of FTAA, Max total term: which is also renewable for o Metallic: 8 years another 25 years o Non-metallic: 6 years o Exploration: first 2 Special case: years o Additional 2 years to o Pre-feasibility, if finish feasibility study needed: another 2 and file mineral years agreement application o Feasibility: another 2 Note: EP is automatically years extended after it expires when declaration of mining project feasibility and mineral agreement application are already submitted o Feasibility is accompanied by Development Work Program Capital needed PhP 2.5 million US$ 4 million Maximum Areas Onshore Onshore: 1,000 blocks Individual Offshore: 4,000 blocks o Province: 20 blocks o Whole Ph: 40 blocks Group o Province: 200 blocks o Whole Ph: 400 blocks Offshore Individual: 100 blocks  Group: 1,000 blocks Minimum Ground Year PhP / ha Year US$ / ha Expenditures 1 100 1 2 2 100 2 2 3 400 3 8 4 400 4 8 5 900 5 18 6 1,150 6 23 7+ 1,150 Area First 2 years: First 2 years: Relinquishment >20% of original area, >25% of original area annually Succeeding years: Succeeding years: >10% of remaining area, >10% of remaining area, annually annually Note: max mining area after Note: if permit area < 5,000 ha, relinquishment should be 5,000 ha, there is no need to relinquish but Director, upon approval of Secretary, can allow larger area Other Things to Diamond drill cores: Temporary / Special Exploration Note: Permit: Director / Regional Director can request ¼ of the core 1 year term, non-renewable Issued while FTAA is not yet Ground for cancellation: approved by President Failure to secure proof of consultation/project presentation to Sanggunian Limitation: concerned within 1 year from Not applicable to non-metallic issuance of EP Can be converted to EP - File letter of intent to Regional Director * More information on FTAA in development stage Exploration for Fuels PSC - Who? o Any local / foreign individual company / group of companies forming a joint venture - How? o Submit application to the REC for consideration of nominating and publicizing area of interest they want, or just directly submit applications for Pre-Determined Areas offered by DOE o Other people may submit applications, within 60 days, for that area after REC approves o Whoever gets the highest rank among the applicant and challengers will be awarded the PSC ▪ Criteria: Legal Qualification: pass or fail Work Program: 40% Technical Qualification: 20% Financial Qualification: 40% COC - Drilling obligations and financial commitments for block may be reduced if: block obviously do not contain coal (geology of strata), part of block is offshore and proven that cannot be mined economically, same with blocks onshore with coal but cannot be mined economically - Unless proven, all areas will be treated as underground, after being proven to be suitable for open pit will the work obligations and financial commitments be reduced - Drill hole equivalents: 30 drill holes per block (may be lessened if justified, for UG only) o 1 foot drill hole: 2 ft exploratory trench, 1 ft test pit, 1 ft auger drilling o 2 feet drill hole: 1 ft long with cross sectional area 30 ft2 of drift, tunnel or adit o 4 feet drill hole: 1 ft shaft, raise or winze with inclinations