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PRESIDENTIAL DECREE NO. 1899 - ESTABLISHING SMALL-SCALE MINING AS A NEW DIMENSION IN MINERAL DEVELOPMENT
the Philippine mining industry has always been dominated by large-scale
mining operations; prevailing statutes, policies, incentives and
financing are generally addressed to the large-scale sector of the
industry; and capital intensity with high debt-equity ratio,
mechanization and heavy energy requirements characterize such type of
operations, whose main attraction is the attainment of economies of
scale through low cost but large tonnage operations;
WHEREAS, the advent of inflation, volatile commodity prices, multiple increases of oil and fuel prices, stringent environmental control measures and high cost of capital proved to be most disastrous for Philippine large scale mines;
WHEREAS, abundance of cheap labor in the Philippines, relative flexibility and simplicity of operations, minimum capital requirements, less fuel dependent operations and minimal effects on the environment are among the arguments that lend support to the development of small-scale mining;
WHEREAS, there exist small mineral deposits that are being or could be worked profitably at small tonnages requiring minimal capital investments utilizing manual labor; and
WHEREAS, the development of these small mineral deposits will generate more employment opportunities, thereby alleviating the living conditions in the rural areas and will contribute additional foreign exchange earnings.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order as follows:
The permit area falling under this Section, and its immediate vicinity, shall be closed to mining location and the permittee/licensee shall have the first option to locate such areas under other mining laws/decrees, which shall be exercised within a period of two (2) years from the grant of the permit or license and to cover an area equivalent to but not exceeding one meridonial block.
Done in the City of Manila, this 23rd, day of January, in the year of Our Lord, nineteen hundred and eighty-four.
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