WHEREAS,
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;chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
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; chanroblesvirtualawlibrary
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:cralaw:red
Section 1. Small-scale mining refers to any single
unit mining operation having an annual production of not more than
P50,000 metric tons of ore and satisfying the following requisites:cralaw:red
1. The working is artisanal, either open cast or
shallow underground mining, without the use of sophisticated mining
equipment;chanroblesvirtualawlibrary
2. Minimal investment on infrastructures and
processing plant;chanroblesvirtualawlibrary
3. Heavy reliance on manual labor, and
4. Owned, managed or controlled by an individual or
entity qualified under existing mining laws, rules and regulations.
Section 2. The holders of mining rights meeting the
conditions of the preceding section may apply at any time as
small-scale mining permittee/licensee, provided they are holders of
valid and existing mining rights, who have subsequently complied with
existing mining rights, who have subsequently complied with existing
mining laws, rules and regulations before the promulgation of this
Decree. A permit or license issued for this purpose shall be valid for
two (2) years renewable for another like period.
Section 3. The permittee or licensee shall produce
within twelve (12) months from the date of the issuance of the permit
or license and shall submit verified periodic reports. Non-compliance
with these requirements shall result in the forfeiture of the rights
granted under this Decree.
Section 4. The small scale mining permittee/licensee
shall, during the term of the permit or license, be exempt from payment
of all taxes, except income tax.
Section 5. The Bureau of Mines and Geo-Sciences shall
provide technical assistance, whenever feasible, as determined by the
Director of Mines and Geo-Sciences.
Section 6. The Director of Mines and Geo-Sciences may
waive some other requirements from other government agencies, which he
may deem unnecessary for the proper implementation of the provisions of
this Decree.
Section 7. New mining areas and/or areas covered by
existing reservations not covered by valid and existing mining claims
at the time of the promulgation of this Decree shall be governed by the
implementing rules and regulations that shall be hereinafter
promulgated.
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.
Section 8. The Minister of Natural Resources, upon
the recommendation of the Director of Mines and Geo-Sciences, shall
promulgate rules and regulations to properly implement the provisions
of this Decree.
Section 9. All laws, decrees, letter of instructions,
executive orders, administrative orders, rules and regulations, or
parts thereof, which are inconsistent with any provisions of this
Decree, are hereby repealed, amended or modified accordingly.
Section 10. This Decree shall take effect immediately.
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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