OCBOCC’s Victor Angelo L Galura examines the mining law in the Philippines. He explains its evolution over the years, and the biggest concerns that mining companies face in the country.
What are the main regulations that govern ownership of mineral rights?
These are the main laws in the Philippines that govern the ownership of minerals rights:
- The 1987 Constitution which states that exploration, development, and exploitation of natural resources are reserved for Filipinos whether they be natural persons or legal persons.
- Republic Act 7942, also known as “Mining Act”, as implemented by DENR Administrative Order No. 2010-21.
- RA 8371 Indigenous People’s Rights Act protects the rights and entitles indigenous cultural communities (ICCs) and indigenous peoples to benefit from the exploration and exploitation minerals found in their ancestral territory.
- The People’s Small-Scale Mining Act of 1992, also known as RA 7076 or the People’s Small-Scale Mining Act, regulates small-scale mining for subsistence.
- PD1899 regulates small-scale commercial mining.
What are the important laws that govern health and safety for mining operations? Who is allowed to mine a deposit?
The Mining Act states that in addition to the requirements of the Labor Code, all contractors and companies must adhere to safety rules issued by the Secretary. DENR Administrative Order No. The DENR Administrative Order No. 2000-98 sets out the standards for safety and health in mining operations. The Mining Act specifies the minimum age for persons to be employed at any stage of a mine operation.
Bureau of Working Conditions, or BWC, also sets out occupational health and safety standards that must be followed by all employers across the country. The mining industry is defined as a “hazardous workplace” and must meet these additional requirements.
- A full-time safety officer must be assigned to each site per 1000 workers. The BWC requires that these safety officers complete training courses.
- The mining operations must also provide occupational health services. These include full-time occupational physicians, a dentist who is on-call full-time, and an emergency clinic. The BSW provides the minimum quantity of medical supplies, equipment and medicines that must be stored within the establishment.
Where do you typically see conflicts arising in relation to mining law?
Our experience has shown that most mining law conflicts arise over ownership of the land where the minerals are located. The Constitution states that all minerals and natural resources belong to the state. The Constitution also states: “The exploration, the development and the utilisation of all natural resources shall be fully controlled and supervised by the State.”
The state does not have the right to own the minerals.
The Philippine Mining Act states that “subject only to prior notification, holders or mining rights may not be prohibited from entering private lands, concession areas, and surface owners when they are conducting mining operations”. The government has authorized a contractor to carry out mining operations. This means that the private land owners cannot prevent the contractor from carrying out mining operations. These owners should be compensated fairly for any damage caused to their property by the mining operations. Conflicts can arise when there’s a disagreement about what constitutes just compensation for damage to property.
The contractor can also build infrastructure on private land if necessary for mining operations. However, he must pay a just compensation.
The land that contains the minerals can also cause conflict when it is considered to be part of the ancestral domains of indigenous people. The Indigenous People’s Rights Act states that in this situation, “no ICCs/IPs shall be relocated by any other means than eminent-domain without their prior and informed consent.” When relocation is deemed necessary as an exception, it shall only be done with the consent of the ICCs/IPs involved .”
Our experience has shown that most mining law conflicts are caused by the ownership of the land where the minerals are located.
What are the legal pitfalls that mining companies should be aware of in the Philippines?
Mining companies must ensure that they adhere to all environmental regulations. This includes obtaining permits and licenses and conducting environmental impact assessment. If you fail to follow these rules, you may be subject to fines, penalties or even the closure of your operations.
Mining companies must be aware of the rights and responsibilities of indigenous communities, and should ensure that these groups are involved and consulted in all decision-making related to mining on ancestral lands. They must ensure that they adhere to all labour standards, and respect the human rights of both their workers and local community members.
Mining companies must also ensure that the benefit sharing arrangements they have with local communities are fair, equitable, and that the local community receives a fair share from the mining benefits.
Mining companies must be aware of the corruption risks in the Philippines, and have anti-corruption procedures and policies in place.
Mining companies should, in general, be proactive when it comes to their approach to compliance with the law and engagement of stakeholders. They should also work closely together with local communities, government and civil society organizations to ensure that mining operations are carried out in a sustainable and responsible manner.
Do you remember the last time that mining law changed significantly in terms of its practical or regulatory landscape?
The Philippine Mining Act of 1996 introduced major changes to the Philippine mining laws. The law mandated that mining companies conduct environmental impact assessment and implement environmental management plan, as well introducing a revenue sharing scheme to ensure local communities benefit from the mining activities.
In the Philippines, the mining law has undergone several changes in recent years. In 2012, due to environmental concerns and social unrest, the government implemented an immediate moratorium on all new mining permits. It also cancelled 75 permits already in place. In 2019, this moratorium was lifted, but stricter regulations were implemented on mining operations. These include a requirement that mining companies set aside funds to rehabilitate mining areas and create a trust fund for local communities. The disputes are typically over land rights and environmental damage. Mining companies may also be accused of human rights violations.
Mining companies must be aware of their rights and consult and involve indigenous communities in the decision-making process related to mining on ancestral lands.
The DENR AO 2021-4 lifted the open-pit ban. This is subject to certain restrictions that ensure the project will not cause any danger to public safety or health due to ground failure.
What are the current trends and developments in the mining industry that you have observed?
Exploration and mining in the Philippines has increased due to an increase in global demand for minerals, especially in areas of high mineral potential.
In contrast, the Philippines is increasingly focusing on sustainable and responsible mining practices, due to concerns about environmental damage and negative social effects of mining. The Philippines has developed stricter standards and regulations for mining operations. Civil society groups have also increased their scrutiny.
Mining activities in the Philippines are increasingly being carried out using innovative technology to reduce their environmental impact and improve efficiency. The use of remote sensing and drones to conduct exploration and monitor, as well the adoption of cleaner mining processes and sustainable practices are all part of this. Despite this, small-scale mines are still practiced widely in the country. They are also expressly permitted by law.
In the Philippines, mining companies are increasingly focusing on community development. They work to empower and engage local communities in order to ensure they reap the benefits of mining. The mining industry in the Philippines is increasingly focused on community development, with companies working to engage and empower local communities and ensure that they benefit from mining activities.
The industry strives to achieve a balance between economic growth and responsible and sustainable practices while also addressing the concerns and needs of local communities.
Victor Angelo L Galura, Associate
Ortega Bacorro Odulio Calma and Carbonell Law Office
Ortega Bacorro Odulio Calma & Carbonell
140 L.P. Leviste St., Salcedo Village 1227 Makati City, Philippines
Tel: +63 28818-2321
Fax: +63 28810-3153
Victor Angelo L Galura is an associate with OCBOCC. His practice includes immigration, corporate and labour law, intellectual property, mining law, civil and criminal litigation, and IP. He was admitted to the Philippine Bar in 2017. He is also fluent in English and Filipino.
OCBOCC has a diversified practice in general law and works with leading law firms around the globe. It covers all aspects of international, corporate and commercial business transactions. This includes intellectual property protection, technology transfers, civil litigation, labour-management relationships, taxation and aviation law.