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PRESIDENTIAL DECREE NO. 512
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PRESIDENTIAL DECREE NO. 512
- DECLARING PROSPECTING AND OTHER MINING OPERATIONS OF PUBLIC USE AND
BENEFIT AND ESTABLISHING THE BASIS AND PRESCRIBING THE RULES AND
PROCEDURES RELATIVE TO ACQUISITION AND USE OF SURFACE RIGHTS IN MINERAL
PROSPECTING, DEVELOPMENT AND EXPLOITATION, AND PROVIDING PROTECTION AND
COMPENSATION TO SURFACE OWNERS
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WHEREAS,
the total efforts being exerted being by the Government to encourage
and accelerate the development of our mineral resources is sometimes
snagged or hampered by the difficulties and delays in securing surface
rights under existing laws and regulations for the entry into private
lands for purposes of prospecting, location, exploration, development
and exploitation of mining claims, due to the frequent and, the time,
unreasonable objections on the part of owners and occupants of private
lands;chanroblesvirtualawlibrary
WHEREAS, it is desirable that there should be incentives and
encouragement given to surface right owners and occupants to grant the
necessary entry permit for mineral prospecting, location, exploration,
development, and exploitation; and
WHEREAS, in order to achieve full and accelerated mineral resources
development and to provide necessary protection to private land owners
and occupants, a new system of surface rights acquisition and use by
mining prospectors and claimants has to be provided.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
decree and order as part of the law of the land the following:cralaw:red
Section 1. Mineral prospecting, location,
exploration, development and exploitation is hereby declared of public
use and benefit, and for which the power of eminent domain may be
invoked and exercised for the entry, acquisition and use of private
lands: Provided, That any person or entity acquiring any option or
right on such land after the first publication of the notice of any
mining lease covering such land shall not be entitled to the
compensation herein provided.
Section 2. Subject to prior notification, prospectors
or claimants of mineral lands shall not be prevented from entry into
private lands surface owners and occupants when prospecting or
exploring therein: Provided, That any damage done to the property of
the surface owner shall be properly compensated: Provided, further,
That to guarantee such compensation to the surface owner, the
prospector or claimowner shall post a bond with the Bureau of Mines in
an amount to be fixed by the Director or Mines based on the type of
property and the prevailing price of lands in the area where
prospecting and other mining activities are to be conducted and with
surety or sureties satisfactory to the Director of Mines. The decision
of the Director of Mines may be appealed within five (5) days from
receipt thereof to the Secretary of Natural Resources, whose decision
shall be final.
Section 3. The owner of a titled property within
which mineral development or exploitation is undertaken shall be
entitled to at least one-third (1/3) of the total royalty due the
claimowner from the operator based on the prevailing standard royalty
in the area where said mining operation is being undertaken, or one
percent (1%) of the value of the gross output of minerals therein where
there is no prevailing standard royalty or in any other case where no
royalty payment is involved or has been, arranged: Provided, That such
landowner may choose to receive payment for any damage caused to his
property and compensation for his land at the prevailing market price
or assessed value, whichever is higher, plus five percent (5%) of the
royalty due the claimowner of the value of gross output of metallic
minerals therein; Provided, further, That if the right of the surface
owner to his land is based on incomplete land titles, as homesteads,
sales, leases and other forms of land rights not perfected under the
torrens systems, the surface right compensation shall be one-fifth
(1/5) of the total royalty due the claimowner from the operator, or
damages and payment of the land plus three percent (3%) of the royalty
due the said claimowner, or six-tenths of one percent (1%) of the value
of the gross output as above stated: Provided, finally, That the rate
of royalty herein set shall apply only in cases of the exploration,
development and exploitation of metallic ores. Metallic ores shall be
those containing metals, such as gold, copper, silver, iron, nickel and
other minerals which the Director of Mines may determine as such by
regulation.
Section 4. Government reserved lands for purposes
other than mining shall be open to prospecting by filing an application
therefor to the agency supervising the reserved lands, through the
Director of Mines, subject always to compliance with pertinent laws and
rules and regulations covering such reserved lands; Provided, That such
applications shall be acted upon thirty (30) days: Provided, further,
That in such cases the compensation due the surface owner shall accrue
equally between the supervising agency and the Bureau of Mines as part
of their Special Funds, to be disbursed for conservation measures.
Section 5. The Director of Mines with the approval of
the Secretary of Natural Resources shall issue the necessary rules and
regulations to implement and put into effect the provisions of this
Decree.
Section 6. All provisions of existing decrees, laws,
orders, rules and regulations or parts thereof in conflict or
inconsistent herewith are hereby repealed or modified accordingly.
Section 7. This Decree shall take effect immediately.
DONE in the City of Manila,
this 19th day of July, in the year of Our Lord, nineteen hundred and
seventy-four.
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