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                             B                                  Republic of the Philippines
                                                      Department of Environment and Natural Resources
                                                              Visavas Avenue, D~liman, uezon City
                                                          Tel Nos. (632)
                                                                                     Q
                                                                        929-65-26 to 29   (6321 929-62-52
                                                                   929-66-20 929-66.33to 35
                                                                         929-70-41 43
                                                                                 to




                                      ADMINISTRATIVE ORDER
                                      No. 2012 -

                                       SUBJECT:      RULES AND REGULATIONS T IMPLEMENT EXECUTIVE ORDER
                                                                              O
                                                     NO. 79 DATED 06 JULY 2012 ENTITLED: 1NSTlTUTlONALIZING
                                                     AND IMPLEMENTING REFORMS IN THE PHILIPPINE MINING
                                                     SECTOR PROVID1NG POLICIES AND GUIDELINES TO ENSURE
                                                     ENVIRONMENTAL PROTECTION AND RESPONSIBLE MINING IN
                                                     THE VTILlZATION OF MINERAL RESOURCES

                                              Pursuant to Section 19 of Executive Order (€0) o. 79 dated 06
                                                                                                N
                                       July 20 12, entitled: Instltvtlonalizing and Implernenffng Reforms I the
                                                                                                           n
                                       Philippine Mining Sector Providing Policies and Guidelines fo Ensure
                                       Environmental Prokction and Responsible Mining in fhe Utilizafion of
                                       Mineral Resources, the following rules and regulations are hereby
                                       promulgated for the guidance and compliance of all concerned:

                                       Section 1.     Title

                                              The title of this Administrative Order shal! be 'The lrnplemenfing
                                        Rules and Regulations of Executive Order No.79."

                                       Section 2.     Objective

                                              These implementing rules and regulations are promulgated toward
                                        the attainment of the following six-point agenda adopted b y fhe
                                        Climate Change Adaptation and Mitigation, and Economic
                                        Development Cabinet Clusters in a Joint Resolution dated 16 March
                                        2012, which sets the direction and lays the foundalion for the
                                        implementation of Responsible Mining Policies:

                                                a.   Ensure mining's contribution to the country's sustainable
                                                     development (i.e., economic and social growth and
                                                     environmental protection);

                                                b.   Adopt international best practices and promote good
                                                     governance and integrity in the sector;

                                                c.   Ensure the protection of the environment by adopting
                                                     technically and scientifically sound and generally accepted
                                                     methods as well as indigenous best practices;

                                                d.   Ensure the consistency of local                   issuances with    the
                                                     Constitution and national laws;

                                                e,   Ensure a fair, adequate, and equitable shared economic
                                                     benefit for the counfry and the     and
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                                                                                                                 Page 1 of 16
                                                                         Let's Go Green
f.      Deliver efficient and effective management of the mining
                                                       sector.

                               Section 3.               Definition of Terms

                                      As used in and for purposes of these implementing rules and
                                regulations, the following terms are defined accordingly:

                                               a. "Abandoned ores" refer to ores that were abandoned during
                                                  their transport or shipment and not covered b y valid and
                                                  existing Ore Transport Permit, Mineral Ore Export Permit or
                                                  were illegally sourced;

                                               b. "Environmental management record" refers to a mining
                                                      applicant's compliance with all environmental standards in its
                                                      past resource use ventures and that its present technical and
                                                      financial capability meet all the requirements to undertake
                                                      resource protection, restoration andlor rehabilitation of
                                                      degraded areas and similar activif ies: Provided, that this shoU
                                                      not be required in cases where the mining applicant has no
                                                      previous experience in resource use ventures, locally or
                                                      internationally;

                                                c. "Fish refuge and sanctuaries" refer to areas designated by the
                                                   Department of Agriculture [DAj where fishing or other forms of
                                                   activities that may damage the ecosystem of the area is
                                                   prohibited and human access may be restricted;

                                                d. "tmpact areas of mining" refer to areas situated in the vicinity
                                                      of a mining area, as determined by current and existing
                                                      mapping technologies in the Environmental Impact
                                                      Assessment (EIA), where previous/current mining operations
                                                      may hove probable effects or consequences on the physical,
                                                      biological, and socio-economic environment, which can be
                                                      direct or indirect, cumulative and positive or negative, and
                                                      which the Departmenf of Environment and Natural Resources
                                                      (DENRJmay hereafter identify as closed to mining pursuant to
                                                      existing lows, and rules, and regulations;

                                                e. "Island    ecosystems" refer to terrestrial. inland water and
                                                      coastal marine environments in an oceanic island possessing
                                                      unique but fragile and vulnerable ecosystems, where
                                                      community of living organisms (plants, animals and microbes),
                                                      in conjunction with the nonliving components of fheir
                                                      environment, are interacting as a system;

                                                f.    "MinerallMining concessions" refer to mining agreements,
                                                      permits andlor con tracts;

                                                    g. "National Government-Owned Mining Assets" referto mining
                                                      areas, mining tenements andlor claims previously held by
                                                      operators, including, but not limited to, Basay Mining
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                                                      Corporation/CDCP Mining Corporation, Marinduque Mining


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allocation of revenues and risk between the government and
                                the mining sector, to enhance coordination between the
                                Notional Government and LGUs to ensure implementation of
                                mining laws and regulations, and to properly regulate small-
                                scale mining participants and ensure that they are
                                accountable to the same environmental and social
                                obligations as large-scale mining companies;

                           e.   As may be directed   by the President, constitule and create a
                                Task Force Against Illegal Mining and seek the assistance of all
                                law enforcement agencies, such as, but not limited, to the
                                Philippine National Police; and the Armed Forces of the
                                Philippines to ensure strict compliance with relevant laws, rules
                                and regulations:

                           f. Serve as the Oversight Committee over the operations of
                              Provincial/City Mining Regulatory Boards (P/CMRBsJ:

                           g . Request the assistance of any government agency or
                               instrumentality, including government-owned and controlled
                               corporations and LGUs, in the implementation of the EO;

                           h . Submit periodic reports to the President on the status of the
                               irnplemenlation of the EO; and

                           i. Perform such other functions and acts as may be necessary,
                              proper or incidental to the attainment of its mandates and
                              objecfives, or a may be directed b y the President.
                                              s

                 Sectlon 1 4. Measures to Improve Small-Scale Mining Acfivifies

                       T improve and address issues on small-scale mining, the
                        o
                 following measures shall be undertaken:

                            a. Compliance with RA No. 7076.

                                Small-scale mining activities shall be governed b y the
                                provisions of RA No. 7076, or the People's Small-Scale Mining
                                Act of 199 1, and its implementing Rules and Regulations [DAO
                                No. 34, Series of 19921, and shall be undertaken only within the
                                declared People's Small-Scale Mining Areas or Minahang
                                Bayan: Provided, that for metaltic rninerab, small-scale mining
                                shali be allowed only F r gold, silver, and chromite.
                                                         o

                                 Small-scale mining operations under Small-Scale Mining
                                 Permits [SSMPj issued under PD No. 1899 shall be recognized
                                 until their expiration unless the same are earlier revoked,
                                 cancelled or terminated with cause: Provided, that the
                                 affected small-scale miners operating under SSMPs involving
                                 gold, silver and chrornite and non-metallic minerals may hove
                                 the option to continue small-scaie mining operaiions t hru a
                                 Small-scale Mining Contract (SSMC) issued pursuant to the
             y:;;;;.-;zM,
                                 provisions of RA No. 7076: Provided, further, that holders of
-"e*.ll,UI    *..m.,-C..



                                                                                      Page 11 of l d
Dao 2012-07
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Dao 2012-07

  • 1. =- &, B Republic of the Philippines Department of Environment and Natural Resources Visavas Avenue, D~liman, uezon City Tel Nos. (632) Q 929-65-26 to 29 (6321 929-62-52 929-66-20 929-66.33to 35 929-70-41 43 to ADMINISTRATIVE ORDER No. 2012 - SUBJECT: RULES AND REGULATIONS T IMPLEMENT EXECUTIVE ORDER O NO. 79 DATED 06 JULY 2012 ENTITLED: 1NSTlTUTlONALIZING AND IMPLEMENTING REFORMS IN THE PHILIPPINE MINING SECTOR PROVID1NG POLICIES AND GUIDELINES TO ENSURE ENVIRONMENTAL PROTECTION AND RESPONSIBLE MINING IN THE VTILlZATION OF MINERAL RESOURCES Pursuant to Section 19 of Executive Order (€0) o. 79 dated 06 N July 20 12, entitled: Instltvtlonalizing and Implernenffng Reforms I the n Philippine Mining Sector Providing Policies and Guidelines fo Ensure Environmental Prokction and Responsible Mining in fhe Utilizafion of Mineral Resources, the following rules and regulations are hereby promulgated for the guidance and compliance of all concerned: Section 1. Title The title of this Administrative Order shal! be 'The lrnplemenfing Rules and Regulations of Executive Order No.79." Section 2. Objective These implementing rules and regulations are promulgated toward the attainment of the following six-point agenda adopted b y fhe Climate Change Adaptation and Mitigation, and Economic Development Cabinet Clusters in a Joint Resolution dated 16 March 2012, which sets the direction and lays the foundalion for the implementation of Responsible Mining Policies: a. Ensure mining's contribution to the country's sustainable development (i.e., economic and social growth and environmental protection); b. Adopt international best practices and promote good governance and integrity in the sector; c. Ensure the protection of the environment by adopting technically and scientifically sound and generally accepted methods as well as indigenous best practices; d. Ensure the consistency of local issuances with the Constitution and national laws; e, Ensure a fair, adequate, and equitable shared economic benefit for the counfry and the and @ : . : : : : . . : : : m ..:: w :z r .*eY.I"ULI..TXlmC.. Page 1 of 16 Let's Go Green
  • 2. f. Deliver efficient and effective management of the mining sector. Section 3. Definition of Terms As used in and for purposes of these implementing rules and regulations, the following terms are defined accordingly: a. "Abandoned ores" refer to ores that were abandoned during their transport or shipment and not covered b y valid and existing Ore Transport Permit, Mineral Ore Export Permit or were illegally sourced; b. "Environmental management record" refers to a mining applicant's compliance with all environmental standards in its past resource use ventures and that its present technical and financial capability meet all the requirements to undertake resource protection, restoration andlor rehabilitation of degraded areas and similar activif ies: Provided, that this shoU not be required in cases where the mining applicant has no previous experience in resource use ventures, locally or internationally; c. "Fish refuge and sanctuaries" refer to areas designated by the Department of Agriculture [DAj where fishing or other forms of activities that may damage the ecosystem of the area is prohibited and human access may be restricted; d. "tmpact areas of mining" refer to areas situated in the vicinity of a mining area, as determined by current and existing mapping technologies in the Environmental Impact Assessment (EIA), where previous/current mining operations may hove probable effects or consequences on the physical, biological, and socio-economic environment, which can be direct or indirect, cumulative and positive or negative, and which the Departmenf of Environment and Natural Resources (DENRJmay hereafter identify as closed to mining pursuant to existing lows, and rules, and regulations; e. "Island ecosystems" refer to terrestrial. inland water and coastal marine environments in an oceanic island possessing unique but fragile and vulnerable ecosystems, where community of living organisms (plants, animals and microbes), in conjunction with the nonliving components of fheir environment, are interacting as a system; f. "MinerallMining concessions" refer to mining agreements, permits andlor con tracts; g. "National Government-Owned Mining Assets" referto mining areas, mining tenements andlor claims previously held by operators, including, but not limited to, Basay Mining Q _. -L .L. ~~,,~,,p~~o,,,,,,,,,,, .,,*,-..u -1.,.I*rn.--- ...-..I Corporation/CDCP Mining Corporation, Marinduque Mining I IrnI[KIII IIIIIII 11 SEN I033515
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  • 11. allocation of revenues and risk between the government and the mining sector, to enhance coordination between the Notional Government and LGUs to ensure implementation of mining laws and regulations, and to properly regulate small- scale mining participants and ensure that they are accountable to the same environmental and social obligations as large-scale mining companies; e. As may be directed by the President, constitule and create a Task Force Against Illegal Mining and seek the assistance of all law enforcement agencies, such as, but not limited, to the Philippine National Police; and the Armed Forces of the Philippines to ensure strict compliance with relevant laws, rules and regulations: f. Serve as the Oversight Committee over the operations of Provincial/City Mining Regulatory Boards (P/CMRBsJ: g . Request the assistance of any government agency or instrumentality, including government-owned and controlled corporations and LGUs, in the implementation of the EO; h . Submit periodic reports to the President on the status of the irnplemenlation of the EO; and i. Perform such other functions and acts as may be necessary, proper or incidental to the attainment of its mandates and objecfives, or a may be directed b y the President. s Sectlon 1 4. Measures to Improve Small-Scale Mining Acfivifies T improve and address issues on small-scale mining, the o following measures shall be undertaken: a. Compliance with RA No. 7076. Small-scale mining activities shall be governed b y the provisions of RA No. 7076, or the People's Small-Scale Mining Act of 199 1, and its implementing Rules and Regulations [DAO No. 34, Series of 19921, and shall be undertaken only within the declared People's Small-Scale Mining Areas or Minahang Bayan: Provided, that for metaltic rninerab, small-scale mining shali be allowed only F r gold, silver, and chromite. o Small-scale mining operations under Small-Scale Mining Permits [SSMPj issued under PD No. 1899 shall be recognized until their expiration unless the same are earlier revoked, cancelled or terminated with cause: Provided, that the affected small-scale miners operating under SSMPs involving gold, silver and chrornite and non-metallic minerals may hove the option to continue small-scaie mining operaiions t hru a Small-scale Mining Contract (SSMC) issued pursuant to the y:;;;;.-;zM, provisions of RA No. 7076: Provided, further, that holders of -"e*.ll,UI *..m.,-C.. Page 11 of l d