January 23,
1984ESTABLISHING
SMALL-SCALE
MININGAS A NEW
DIMENSION IN
MINERAL DEVELOPMENT
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;
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 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:chanroblesvirtuallawlibrary
SECTION 1. Small-scale mining
refers to any single unit mining operation having an annual production
of not more than 50,000 metric tons of ore and satisfying the following
requisites:chanroblesvirtuallawlibrary
1. The
working is
artisanal, either open cast or shallow underground mining, without the
use of sophisticated mining equipment;2. Minimal
investment on
infrastructures and processing plant;
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.chanrobles virtualawlibrary
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 the
period
of two (2) years from the grant of the permit or license to cover an
area
equivalent to but not exceeding one meridional 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.
FERDINAND E.
MARCOSPresident of
Republic
of the Philippines