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PRESIDENTIAL DECREE NO. 1001
PRESIDENTIAL DECREE NO. 1001 -
AUTHORIZING THE DEVELOPMENT, EXPLOITATION AND UTILIZATION OF MINERAL
DEPOSITS OTHER THAN THOSE OF NICKEL, COBALT AND IRON WITHIN THE SURIGAO
MINERAL RESERVATION, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 1828 AND
REPEALING PRESIDENTIAL DECREE NO. 958
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WHEREAS,
there is an urgent need to maximize the development, exploitation and
utilization of mineral deposits other than those of nickel, cobalt and
iron within the Surigao Mineral Reservation in order to take advantage
of the increased world demand for mineral resources; chanroblesvirtualawlibrary
WHEREAS, the immediate development, exploitation and utilization of
mineral deposits other than nickel, cobalt and iron within the Surigao
Mineral Reservation will substantially help the Government in the
generation of much needed foreign exchange in the face of international
economic recession brought about by the energy crisis;chanroblesvirtualawlibrary
WHEREAS, there is a need to make the existing laws on the
administration and disposition of the Surigao Mineral Reservation more
responsive to prevailing circumstances and to modify and rationalize
Government policies in the development of the said Reservation towards
giving more opportunity to private enterprises willing to take risk and
can generate adequate technical and financial resources for mineral
development.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of
the Philippines, by virtue of the powers vested in me by law, do hereby
order and decree the following: chanroblesvirtualawlibrary
Section 1. Republic Act No. 1828, as amended, is
further amended by inserting between Section 2 and 3 thereof, the
following section:cralaw:red
"Sec. 2(a). The provisions of Section 2 hereof
notwithstanding, the President of the Philippines, in the interest of
the national economy, may authorize the Bureau of Mines to explore,
develop and exploit mineral deposits, other than those of nickel,
cobalt and iron, within the Surigao mineral reservation, either
directly or through a qualified contractor or contractors under an
operating contract selected after public bidding or negotiation. The
contract herein authorized shall, subject to the approval of the
President, be executed by the Secretary of Natural Resources upon
recommendation of the Director of Mines. The term of the contract shall
be for twenty-five (25) years, renewable for another twenty-five (25)
years."
Section 2. The same Act is further amended by
inserting between Sections 6 and 7 thereof the following new sections:cralaw:red
"Sec. 6-A. Should the President of the Philippines
decide to have the operation or any part thereof conducted as
authorized by Section 2-A hereof, the same shall be subject to the
following minimum terms and conditions:cralaw:red
(a) The operator shall pay and guarantee payment to
the government out of the gross annual receipts from all minerals,
mineral and metal products, and by-products resulting from the
operation, processing and disposition of mineral deposits, other than
those of nickel, cobalt and iron, a royalty of not less than five per
centum (5%) of the said gross annual receipts. F.O.B. points of export
beginning with the end of the first year after the effective date of
the contract: Provided, That the operator shall from the effective date
of the contract up to and including the fifth year after commencement
of actual production, be exempt from all taxes, duties, fees and
charges, both national and local, directly payable by it for any work
or activity, equipment, machinery, materials, instruments, supplies,
accessories, structures, buildings, lands, improvement, and/or other
properties directly connected with or needed and to be used or being
used exclusively in the operation, other than those provided in this
Act and except those fees and charges that are imposed for work or
services actually rendered to the operator: Provided, further, That the
operator shall put in operation the area or areas covered by the
contract within two (2) years from the effective date of the contract.
Thereafter, penalties may be applied against the operator for failure
to effect such production and/or reach certain levels of production
within specific time periods, as may be agreed upon: Provided, finally,
That exemptions from taxes shall not extend to taxes due from
contractor's personnel in their personal capacities;chanroblesvirtualawlibrary
(2) The operator shall furnish all the management,
technological and financial services necessary to carry out the
operation;chanroblesvirtualawlibrary
(3) The operator shall file a bond to guarantee full
and faithful compliance with all its obligations;chanroblesvirtualawlibrary
(4) The operator shall be entitled to repatriate its
duly recognized foreign capital investment, plus interest, and remit to
non-resident investors or stockholders abroad profits or dividends,
subject to the regulations of the Central Bank of the Philippines;chanroblesvirtualawlibrary
(5) Subject to existing and prior valid rights an
operator may enter into one or more contracts with the Government for
any portion of the reservation with such terms and conditions as may be
appropriate under the circumstances: Provided, however, That within
fifteen (15) years from the effectivity of the operating contract, the
operator shall select a final area or areas in compact block or blocks,
irrespective of water separation of portion to be retained by him,
sufficient to meet his reasonable needs as to ore reserves, plant
sites, and water resources to ensure commercial operation, but in no
case to exceed an aggregate land area of thirty thousand hectares;chanroblesvirtualawlibrary
(6) The operator shall give preference to Philippine
Citizens in all types of employment within the country insofar as such
citizens are qualified to perform the corresponding work with
reasonable efficiency and without hazard to the safety of the
operation, and shall maintain effective program of training and
advancement; and chanroblesvirtualawlibrary
(7) All information and data gathered by the
operator shall be furnished the Bureau of Mines, and all books of
accounts and records shall be open to the Government for inspection."
"Sec. 6-B. Any royalty derived by the Government
under subparagraph (1) of Section 6-A, hereinabove inserted, shall
accrue equally to the Surigao Mineral Reservation Board and the Bureau
of Mines, and shall be allotted for the undertaking of special projects
and for the exploration and development of other mineralized government
reservations, respectively."
Section 3. Subparagraphs 7 and 8 of Section 6 of the
same Act are repealed.
Section 4. Presidential Decree No. 958 is repealed
and all laws, decrees, orders and proclamations, rules and regulations
inconsistent herewith are hereby repealed or amended accordingly.
Section 5. This Decree shall take effect immediately.
DONE in the City of Manila,
this 22nd day of September, in the year of Our Lord, nineteen hundred
and seventy-six.
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