DEPARTMENT OF ENVIRONMENT AND CHAPTER II 4.

7 “Environmental Impact” means the direct effect of

NATURAL RESOURCES DEFINITIONS small-scale mining operations to all biological, physical,
July 14, 1992 social, economic and cultural elements;
Section 4. Definition of Terms. The following terms shall be
DENR ADMINISTRATIVE ORDER construed to mean as hereunder indicated: 4.8 “Equipment Utilization Cost” means all cash
No. 34, Series of 1992 expenditures for the operation and utilization of
4.1 “Active Mining Area” refers to an area under actual equipment for a single mining unit, which include fuel,
SUBJECT: RULES AND REGULATIONS TO IMPLEMENT exploration, development, exploitation or commercial compressed air, utilities, power, supplies, raw materials,
REPUBLIC ACT NO. production as determined by the Secretary after the lease of equipment, repairs and maintenance;
7076 OTHERWISE KNOWN AS “PEOPLES SMALL SCALE necessary field investigation or verification including
MINING ACT OF 1991” contiguous and geologically related areas which are 4.9 “Existing Mining Right” refers to perfected and
supported by an established geological report, belonging subsisting claim, lease, license, contract, or permit
Pursuant to Section 26 of Republic Act No. 7076, the following to the same claim owner and/or under contract with an covering a mineralized area prior to its declaration as a
rules and regulations are hereby promulgated for the guidance operator, but in no case to exceed the maximum area People’s Small Scale Mining Area;
and compliance of all concerned: allowed by law;
4.10 “Government Production Share” refers to the share
CHAPTER I 4.2 “Ancestral Land” refers to a territory of an Indigenous of the government in a Mineral Production Sharing
TITLE, POLICY AND OBJECTIVES Cultural Community/ies (ICCs) embracing all lands and Agreement (MPSA) of the government, joint venture or
natural resources which are in the actual and/or co-production which may be determined by the Board;
Section 1. Title. This Administrative Order shall be known as “The traditional possession of an indigenous cultural In Co-production and Joint Venture Mining Agreements,
Rules and Regulations Governing Areas Declared as People’s community and its members including areas necessary the government shall, in addition to receiving
Small-Scale Mining Areas”. to ensure their economic, social and cultural welfare; government shares for the mineral resources as
prescribed above, be entitled to compensation for its
Section 2. Policy. It shall be the policy of the State to promote, 4.3 “Board” refers to the Provincial/City Mining other contributions which shall be agreed upon by the
develop, protect and rationalize viable small-scale mining Regulatory Board which shall be the implementing parties to the mining agreement;
activities in order to generate more employment opportunities and agency of the DENR and shall be composed of the
provide an equitable sharing of the nation’s wealth and natural DENR’s representative as Chairman and members 4.11 “Investment” means all capital investments sunk by
resources giving due regard to existing rights as herein provided. composed of duly appointed representatives from the the contractor on a single mining unit to make it
following offices/sectors, namely: Governor or City operative; including raw materials, additional land and
Section 3. Objectives. The rules and regulations of this Order are Mayor; small-scale miners; large-scale miners, and non- existing capital such as processing plants, mine and
promulgated towards the attainment of the following objectives: governmental organization with environmental concerns; hauling equipment, tools, infrastructures, capitalized
exploration and development costs, support facilities and
3.1 To effect an orderly and systematic disposition of 4.4 “Co-Production Agreement” is the mode of mining working capital. These investments shall not exceed Ten
small-scale mining areas in the country; agreement whereby the government, aside from Million Pesos (P10,000,000.00) during the effectivity of
inputting the mineral resources for which it gets an the original contract and its renewal;
3.2 To regulate the small-scale mining industry with the agreed share, short of creating a new juridical entity, has
view to encourage their growth and productivity; and other contributions for which it gets another share in 4.12 “Joint Venture Agreement” is the mode of mining
addition to the agreed share; agreement whereby the government, aside from
3.3 To provide technical, financial and marketing inputting mineral resources for which it gets the agreed
assistance and efficient collection of government 4.5 “Department” or DENR refers to the Department of share, has a contribution to the equity of the intending
revenues. Environment and Natural Resources. operator, and for which equity holding it shall receive a
proportional share of the profits by way of dividends;
4.6 “Director” refers to the Regional Executive Director
(RED) of the Department. 4.13 “Labor Cost” means all cash expenditures such as
salaries, wages, allowances and other benefits,
measured on a per metric ton of ore basis, for the 4.20 “Public Lands” refer to lands of the public domain mining. They live in stable sedentary communities and
remuneration of personnel directly involved in the mining, including patrimonial property of the government; employ a mining technology that is labor-intensive and
processing, hauling, handling and storage of ore simple; and employs physical separation methods for the
concentrate/s or finished product on a single mining unit 4.21 “Processor” refers to a person and/or entity issued a extraction of mineral/s and/or metal/s from the ore.
excluding supervisory and administrative personnel; license to engage in the treatment of mineral or ore-
bearing materials such as by gravity concentration, CHAPTER III
4.13 “Labor Intensive” means a mining operation wherein leaching beneficiation, cyanidation, cutting, sizing, GENERAL PROVISIONS
the ratio of labor cost to equipment utilization cost to polishing and other similar activities;
produce, process and market one (1) metric tone of ore Section 5. Licensing. Filipino citizens of legal age and with
equals to or not less than one (1); 4.22 “Secretary” refers to the Secretary of the capacity to contract are qualified for a license as Small-Scale
Department of Environment and Natural Resources; Miner and/or Processor. However, the following requirements
4.14 “License” refers to the privilege granted to a person shall be submitted to the nearest Mines and Geosciences
to legitimately pursue his occupation as a small-scale 4.23 “Single Mining Unit” means a mining operation Development Service or CENRO or PENRO.
miner or processor under RA 7076; covered by a “small-scale mining contract”;
5.1 Small-Scale Miner
4.15 “Mineralized Areas” refer to areas with naturally 4.24 “Small-scale Mining” refers to mining activities
occurring mineral deposits of gold, silver, chromite, which rely heavily on manual labor using simple 1. Application form duly accomplished as
kaolin, silica, marble, gravel, clay and other implements and methods and do not use explosives or prescribed in Annex A;
mineralresources; heavy mining equipments;
2. Payment of application fee of P5.00 to the
4.16 “Mineral Lands” refer to those lands in which 4.25 “Small-scale Miners” refer to Filipino citizens who concerned DENR Regional Office;
minerals exist in sufficient quantity and grade to justify individually or in the company of other Filipino citizens,
the necessary expenditures in extracting and utilizing voluntarily form a cooperative duly licensed by the DENR 3. Barangay Certificate of Residency that
such minerals; to engage, under the terms and conditions of a applicant is a bonafide resident of the
contract/license in the extraction or removal of minerals
4.17 “Mineral Production Sharing Agreement (MPSA)” is or ore-bearing materials from the ground; 5.2 Processor
the mode of mining agreement whereby the government
inputs only the mineral resources and for which it gets an 4.26 “Small-scale Mining Contract” refers to co- 1. Application form duly accomplished as
agreed share from the gross output value of the minerals production, joint venture or Mineral Production Sharing prescribed in Annex B;
produced, and net mining revenue before income tax; Agreement between the government and a small-scale
mining contractor for the small-scale utilization of a plot 2. Payment of application fee of P20.00 to the
4.18 “Mining Plan” refers to a two-year program of of mineral land; concerned DENR Regional
activities and methodologies employed in the extraction
and production of minerals or ore-bearing materials, 4.28 “Small-scale Mining Contractor” refers to a 3. Certification on the capacity to perform
including the financial plan and other resources in cooperative of small scale miners, registered with the processing of specific commodities and
support thereof; Securities and Exchange Commission (SEC) or other Barangay for a period of at least six (6) months.
appropriate government agency, which has entered into Office; and from Regional Technical Director for
4.19 “Private lands” refer to lands belonging to private an agreement with the government for the small scale Mines and Geosciences Development Service.
persons which include alienable and disposable lands utilization of a plot of mineral lands within a People’s The license, to be issued in Identification Card
being claimed by a holder, claimant or occupant who has Small Scale Mining Area; and form, shall be approved by the DENR Secretary
already acquired a vested right thereto under the law or his duly authorized representative and shall
although the corresponding certificate or evidence of title 4.29 “Traditional Small-scale Miners” refer to Filipino have a term of two (2) years and renewable
or patent has not been actually issued; citizen who have a distinctive every two (2) years.
socio-economic cultural tradition with a subsistence base
focused on small-scale
Section 6. Declaration of People’s Small-Scale Mining Areas. The 6.6 Areas occupied by a community of traditional small- 7.7 Declaration of area as People’s Small-Scale Mining
Board created under RA 7076 shall have the authority to declare scale miners subject to the approval of the said Area by the Board in the event that the area to be
and set aside People’s Small-Scale Mining Areas in sites onshore community. Where they refuse to allow their areas to be segregated and declared for such purpose is found to be
suitable for small-scale mining operations subject to review by the declared a People’s Small-scale Mining Area, their in order by the Secretary after the thirty (30)-day period
DENR Secretary thru the Director . The following onshore areas customary rights under their mining traditions shall be of review thereof.
may be declared by the Board as People’s Small-Scale Mining recognized and protected; In all of the above cases, the
Areas: laws, rules and regulations protecting the Filipino cultural Section 8. Procedure in Case of Opposition/Protest. Any
heritage shall be strictly complied with. opposition/protest to the petition/request that an area be declared
6.1 Areas already occupied and actively mined by Small- as a People’s Small-Scale Mining Area shall be filed with the
scale Miners before August 1, 1987: Provided, That such Section 7. Procedures in the Declaration of a People’s Small- Board not later than fifteen (15) working days after the last
areas are not considered as active mining areas: Scale Mining Area. The following shall be observed in the publication of the notices as provided for in Section 7 hereof.
Provided, further, That the minerals found therein are declaration of small scale mining areas: The Board shall act on the opposition or protest within fifteen (15)
technically and commercially suitable for small-scale working days after it is submitted for resolution. The decision of
mining activities: Provided, finally, That the areas are not 7.1 Petition/Request from any interested party for the Board may be appealed to the Secretary within five (5)
covered by existing forest rights or reservations and declaration of an area as People’s Small-Scale Mining working days from receipt of the decision of the Board. The
have not been declared as tourist or marine reserves, Area filed with the Board; decision of the Secretary is immediately executory.
parks and wildlife reservations, unless their status as
such are withdrawn by competent authority; 7.2 Evaluation of area whether same is technically or Section 9. Registration of Small-Scale Miners. All persons
economically viable; undertaking small-scale mining activities shall register as small-
6.2 Public lands not subject to any existing right; scale miners with the Board, which has jurisdiction over the Small-
7.3 Identification of other areas technically and Scale Mining Area. The following requirements shall be submitted
6.3 Public lands covered by existing rights which are not economically viable for small-scale mining upon the in order to be registered:
active mining areas; initiative of the DENR or duly authorized body;
9.1 Small-Scale Miners License issued pursuant to this
6.4 Private lands, subject to certain rights and conditions, 7.4 Issuance of notices by the Board to claimowners, Order; and,
except those with substantial improvements or in operators, private landowners and non-governmental
bonafide and regular use as a yard, stockyard, garden, organizations concerned, government agencies and 9.2 Barangay Certificate of Six (6) Months Residency.
plant nursery, plantation, cemetery or burial site, or land cultural communities for clearance and consent as the
situated within one hundred meters (100 meters) from case may be; Section 10. Application to Enter Into a Small-scale Mining
such cemetery or burial site, water reservoir or a Contract. Registered small-scale miners may organize
separate parcel of land with an area of ten thousand 7.5 Posting/Publication of notices on provincial or themselves into cooperative/s to be qualified for the awarding of a
square meters (10,000 sq.m.) or less; city/municipal halls and/or Mines and Geo-Sciences People’s Small-Scale Mining Contract. Applications as prescribed
Development Service Office and other conspicuous in Annex C hereof shall be accomplished and submitted together
6.5 Ancestral lands with prior consent from the cultural places, and/or publication in a newspaper of local or with the following requirements in five (5) copies within five (5)
communities concerned. Provided, That if ancestral national circulation once a week for two (2) consecutive days from the date the applications form was secured:
lands are declared as People’s Small-scale Mining weeks;
Areas, the members of the cultural communities therein 10.1 Application fee of Thirty Pesos (P30.00) per hectare
shall be given priority in the awarding of small-scale 7.6 Segregation of proposed areas for small-scale or a fraction thereof payable to the concerned DENR
mining contracts. Provided, further, That in cases where mining purposes upon completion of the necessary Regional Office;
the Indigenous Cultural Communities (ICCs) concerned documents, subject to review of the Secretary within
refuse to allow their area to be declared a people’s small thirty (30) working days from the date of receipt of the 10.2 Certified True Copy of Articles of Incorporation; and,
scale mining area, their customary rights to their proposal for such segregation from the Board;
ancestral land shall be recognized and protected;
 Section 12. Award of People’s Small-Scale Mining Contracts. The
10.3 Information on the geographical coordinates Board within fifteen (15) working days upon receipt of the Section 14. Worker Health and Safety. To ensure the safety and
(latitude and longitude) of the area applied for, the proposed contract shall evaluate, negotiate and award the same, health of small-scale miners, the following shall be observed:
maximum of which is equal to 1/4 of 1 meridional block subject to review by the Secretary. Provided that only one
of 15” of latitude and 15” of longitude, containing an people’s small scale mining contract may be awarded at any one 14.1 The contractor must provide adequate sanitation
approximate area of twenty (20) hectares. Within fifteen time to a small-scale mining operator who shall start mining facilities in the form of non- contaminating latrines in
(15) working days upon receipt of the application by the operation within one year from the date of award. Provided, accordance with the directions provided by the
Board, it shall check through the control map if the area further, that priority shall be given to cooperatives majority of concerned DENR Regional Office;
is free from conflict. If the area is free, a written notice whose members are residents of the province, city or municipality
requesting the applicant to submit a proposed contract where the small-scale mining area is located. 14.2 The contractor must provide and maintain clean
shall be sent by the Board. In case of conflict/s, the drinking water for all workers;
Board shall resolve the same within five (5) working days Section 13. Terms and Conditions of Small-Scale Mining
from the data of the discovery thereof. Contract. A Contract shall have a term of two (2) years, renewable 14.3 The contractor shall be responsible for the health
for like periods subject to verification by the Board as long as the and safety of all individual contractors or employees
Section 11. Requirements for Small-Scale Mining Contract. Within contractor complies with the provisions set forth in RA 7076, and operating within the contract area;
ninety (90) calendar days upon receipt of the written notice by the confers upon the contractor the right to mine within the contract
Board referred to in Section 10 hereof, the applicant shall submit area: Provided, That, the small-scale mining contractor shall be 14.4 The use of mercury, cyanide or any other poisonous
the proposed contract indicating therein the following features: under the obligation to: substance must be handled in accordance with
provisions as directed by the concerned DENR Regional
11.1 Mode of agreement (i.e., co-production, joint- 13.1 Undertake mining activities only in accordance with Office; and
venture or Mineral Production Sharing Agreement); a mining plan duly approved by the Board;
14.5 The contractor must notify the Board within five (5)
11.2 Terms and conditions of the contract in conformity 13.2 Abide by the mine safety rules and regulations per working days of all accidents causing death or more than
with the provisions of Section 13 hereof; and, Memorandum Circular No. MRD-2, Series of 1985, as five (5) days of lost working time.
may be applicable and other rules and regulations which
11.3 Rights of the small-scale mining contractor may be promulgated by the DENR Secretary; Section 15. Protection of the Environment. In order to protect the
consistent with the provisions of Section 19 and 20 surrounding environment of small-scale mining areas, the
hereof. The following documents must be attached to the 13.3 Comply with his obligations to the holder of an following shall be complied with by all concerned:
proposed contract: existing mining right/s, if applicable;
15.1 The contractor must ensure that all areas of activity
11.4 Survey plan prepared by a deputized geodetic 13.4 Pay all fees, taxes, royalties or government within the contract area are maintained in a clean and
engineer including field notes cover and duly notarized production share as are now or may hereafter be organized manner;
descriptive Survey Report; provided by law;
15.2 The contractor must proceed with the schedule of
11.5 Mining plan prepared by a registered mining 13.5 Comply with pertinent rules and regulations on tailings and waste management and mine site
engineer; and environmental protection and conservation, particularly rehabilitation as documented in the approved Mining
those on tree-cutting, mineral processing and pollution Plan;
11.6 Environmental Compliance Certificate (ECC) issued control;
by the concerned DENR Regional Executive Director. 15.3 The contractor shall be responsible for the control
Provided, That for the purpose of facilitating the 13.6 File under oath at the end of each month a detailed and proper disposal, where applicable, of all wastes
submission of proposed contracts, the Board may make production report and annual financial report to the produced as a result of mining operations; and,
available sample contracts as guide to applicants in Board; and,
drafting their proposed contracts. 15.4 The contractor shall comply with all environmental
13.7 Assume responsibility for the safety of persons laws, especially with respect to water quality,
working in the mines.
 watercourse diversion, excess siltation and undue work obligations and other requirements for the last two
interference with (2) years prior to the effectivity of RA 7076.

existing agricultural fishing or other legitimate land and 21.2 Director - The Director shall:
water usage. Section 18. Rights or Private Landowners. The private landowner a. Recommend the depth or length of the tunnel
or lawful possessor shall be notified of any plan or petition to or adit taking into account the: (1) size of
CHAPTER IV declare his land as a People’s Small-scale Mining Area: Said membership and capitalization of the
RIGHTS landowner may oppose such plan or file petition in an appropriate cooperative; (2) size of mineralized area; (3)
proceeding and hearing conducted before the Board. If a private quantity of mineral deposits; (4) safety of
Section 16. Easement Rights. Upon the declaration of People’s land is declared as a People’s Small-Scale Mining Area, the miners; (5) environmental impact and other
Small-scale Mining Area, the Director, in consultation with the owner and the small-scale mining contractor are encouraged to considerations;
small-scale miner/s, operator, claimowner, landowner or lessor of enter into a voluntary and acceptable contractual agreement for
the affected area, shall determine the right of the small scale the small-scale utilization of the mineral values from the private b. Determine the right of the small-scale miners
miners to existing facilities such as mining and logging roads, land within thirty (30) days. Provided, That, the owner shall, in all to existing facilities in consultation with the
private roads, port and communication facilities, processing plants cases, be entitled to the payment of actual damages which may operator, claimowner, landowner or lessor of an
which are necessary for the effective implementation of the occur as a result of such declaration. Provided, further, that affected area upon declaration of a small-scale
People’s Small-Scale Mining Program, subject to payment of royalties paid to the owner shall in no case exceed one percent mining area;
reasonable fees to the operator, claimowner, landowner or lessor. (1%) of the gross value of the minerals recovered as royalty.
c. Recommend to the Secretary the withdrawal
Section 17. Rights of Claimowner. In case a site declared and set Section 19. Rights Under a People’s Small-Scale Mining Contract. of the status of the people’s small- scale mining
aside as a people’s small-scale mining area is covered by an A people’s small- scale mining contract entitles the holder to a area when it can no longer be feasibly operated
existing mining right, the claimowner and the small-scale miners right to mine, extract and dispose of mineral ores for commercial on a small-scale
therein are encouraged to enter into a voluntary and acceptable purposes over the area covered thereby. Provided, That in no
contractual agreement with respect to the small-scale utilization of case shall the contract be subcontracted, assigned or otherwise d. See to it that the small-scale mining
the mineral values from the area under claim. In case of transferred to a second party. contractors abide by small-scale mines basis;
disagreement, the claimowner shall be entitle to the following and safety rules and regulations.
rights and privileges: Section 20. Ownership of Mill Tailings. The small-scale mining
contractor shall be the owner of all mill tailings produced from the Section 22. Provincial/City Mining Regulatory Board. The
17.1 Exemption from the performance of annual work contract area. He may sell the tailings, or have them processed in Provincial/City Mining Regulatory Board created under RA 7076
obligations and payment of occupation fees, rental, and any custom mill in the area. Provided, that, if the small-scale shall exercise the following powers and functions, subject to
real property taxes; mining contractor decides to sell its mill tailings, the claimowner or review by the Secretary:
mining operator shall have a preemptive right to purchase said
17.2 Subject to the approval of the Board, free access to mill tailings at the prevailing market price. 22.1 Declares and segregates existing gold-rush area for
the contract area to conduct metallurgical tests, small-scale mining;
explorations and other activities, provided such activities CHAPTER V
do not unduly interfere with the operations of the small- SUPERVISION 22.2 Reserves for the future, mineralized areas/mineral
scale miners; and, lands for people’s small-scale mining;
Section 21. Administrative Supervision over the People’s Small-
17.3 Royalty equivalent to one and one half percent (1 Scale Mining Program. The following DENR officials shall 22.3 Awards contracts to small-scale miners’
1/2%) of the gross value of the metallic mineral output or exercise the following supervisory functions in the implementation cooperative;
one percent (1%) of the gross value of the non-metallic of the Program:
mineral output to be paid to the claimowner: Provided, 22.4 Formulates and implements rules and regulations
That such rights and privileges shall be available only if 21.1 DENR Secretary - direct supervision and control related to RA 7076;
he is not delinquent in the performance of his annual over the program and activities of the small-scale miners
within the people’s small-scale mining area;
 22.4 Settles disputes, conflicts or litigations over 24.3 In case of the absence of nominees from the area,
conflicting claims within ninety (90) the Chamber of Mines and Small-Scale Mining 27.2 Occupation fee of Fifty Pesos (P50.00) per hectare
Association shall nominate one (1) representative each or a fraction thereof per year
days upon filing of protests or complaints; Provided, That to the Board; and
any aggrieved party may appeal within five (5) days from 24.4 The representative from a non-government which shall be paid to the municipality where the contract
the Board’s decision to the Secretary for final resolution organization must come from an environmental group area is located. Provided, That the initial occupation fee
otherwise the same is considered final and executory; duly accredited by DENR. shall be paid on the date the contract is approved.
and
Section 25. Compensation of the Members of the Board. The Section 28. People’s Small-Scale Mining Protection Fund. The
22.5 Performs such other functions as may be necessary members of the Board shall receive compensation based on People’s Small-Scale Mining Protection Fund created in Section
to achieve the goals and objectives of RA 7076. meetings attended at the rate prescribed by pertinent laws subject 20 of RA 7076 which provides for fifteen percent (15%) of the
to existing accounting and auditing procedures. national government’s share of the internal revenue tax or
Section 23. Composition of the Provincial/City Mining Regulatory production share due the Government shall be used primarily for
Board. The Board shall be composed of the following: CHAPTER VI information dissemination and training of small- scale miners on
FISCAL AND REGULATORY PROVISIONS safety, health and environmental protection, and the
23.1 Representative from the DENR Regional Office establishment of Mine Rescue and Recovery Teams including the
concerned - Chairman; Section 26. Payment of Taxes, Government Production Share. procurement of rescue equipment necessary in cases of
The Small-Scale Mining Contractor shall pay to the government emergencies such as landslides, tunnel collapse, or the like. The
23.2 Governor or City Mayor or their duly authorized the following: Fund shall also be made available to address the needs of the
representative - Member; small-scale miners brought about by accidents and/or fortuitous
26.1 Income Tax as provided in the National Internal events. The Board will act as trustee of the Fund.
23.3 One (1) Small-Scale mining representative - Revenue Code (Sec. 21);
Member or as per Section 24.3 hereof; Section 29. Rescission of Contracts and Administrative Fines.
26.2 Special Import Tax (If applicable); Awarded contracts may be rescinded on the following grounds:
23.4 One (1) Large-scale mining representative -
Member; 26.3 Tariff Duties (If applicable); 29.1 Non-Compliance with the terms and conditions of
the contract and that of existing mining laws, rules and
23.5 One (1) representative from a non-government 26.4 Value Added Tax as provided in E.O. 273; regulations including those pertaining to mine safety,
organization - Member; and environmental protection and conservation, tree cutting,
26.5 Real Property Tax (If applicable); mineral processing and pollution control;
23.6 Staff support to the Board to be provided by the
Department. 26.6 Excise Tax except gold sold to Central Bank which 29.2 Non-compliance with the contractor’s obligations to
are considered for export; and, existing mining claim holders/private landowners as
Section 24. Criteria in Choosing the Representative/s to the stipulated in Sections 13, 17 and 18 of this Order;
Board. Representatives to the Board shall be selected taking into 26.7 Government Share which shall be paid to the
consideration the hereunder criteria: Municipality or City Treasurer where the mining claims 29.3 Non-payment of fees, taxes, royalties or
are located and shall be apportioned in accordance with government share in accordance with this Order and
24.1 He/She must be a bonafide member of and the Local Government Code of 1991. existing mining laws;
nominated by the organization he/she represents;
Section 27. Payment of Fees and Other Charges. The Small- 29.4 Abandonment of mining site by the contractor; and,
24.2 Preferably, he/she should be residing or have Scale Mining Contractor shall pay to the government the
established concern for work in the province or city as following: 29.5 Ejectment from the People’s Small-scale Mining
the case may be; Area of the Contractor by the government for reasons of
27.1 An application fee of Thirty Pesos (P30.00) per national interest and security. When contracts are
hectare or a fraction thereof; and rescinded for grounds under Sections 29.1 to 29.4
 hereof, the Secretary may impose fines of an amount not Section 32. Sale of Gold. All gold produced by small-scale miners Section 34. Areas Not Declared as People’s Small-Scale Mining
less than Twenty Thousand Pesos (P20,000.00) but not in any mineralized area or mineral land shall be sold to the Area. For areas not declared as People’s Small-Scale Mining
more than One Hundred Thousand Pesos Central Bank of the Philippines, or its duly authorized area, the pertinent rules and regulations of Presidential Decree
(P100,000.00). Non-payment of the fine representatives, at prices competitive with those prevailing in the No. 1899 shall apply.
world market regardless of volume or weight. The Director shall
imposed shall render the small-scale mining contractor furnish the Central Bank with a list of declared small-scale mining Section 35. Mineral Reservations. Mining operations in existing
ineligible for other small-scale mining contracts. areas for its guidance in the establishment of buying stations to mineral reservations and others as may thereafter be established
fully service the requirements of the small-scale miners thereat as shall be undertaken by the Government or by contractor.
Section 30. Reversion of People’s Small-Scale Mining Areas. A conditions in the areas warrant, as provided for under Section 17
people’s Small-Scale Mining Area may be reverted to the State for of RA 7076. However, the minimum weight per bar or disk for CHAPTER IX
proper disposition by the Secretary upon recommendation of the delivery and sale to the Central Bank shall not be less than 300 PENAL PROVISIONS
Director when: grams. Small-scale miners with less than 300 grams of gold may
sell the same to Central Bank’s duly authorized representative. Section 36. Penal Sanctions. Violations of the provisions of RA
30.1 It can no longer be economically and efficiently 7076 and this Order shall be penalized with imprisonment of not
operated on a small-scale mining basis; or Section 33. Establishment and Operation of Custom Mills. The less than six (6) years and shall include the confiscation and
establishment and operation of safe and efficient custom mills to seizure of equipment, tools and instruments by the Board.
30.2 The working conditions endanger the lives and process minerals or ore-bearing materials shall be subject to the
health of the miners; or following conditions: CHAPTER X
TRANSITORY PROVISIONS
30.3 Small-scale mining operations cause significant 33.1 Establishment shall be limited to mineral processing
destruction to the environment; or, zones duly designated by the local government unit Section 37. Actual Occupation by Small-Scale Miners. Small-
concerned upon recommendation by the Board; scale miners who have been in actual operation of mineral lands
30.4 There is continuous disturbance of peace and order on or before August 1, 1987 as determined by the Board shall not
for three (3) consecutive years causing loss of lives and 33.2 The establishment of mineral processing zones be dispossessed, ejected or removed from said areas: Provided,
property. Where the government determines that a shall not disrupt existing adaptive technological systems; That, they comply with the provisions of this Order.
small-scale mining area can no longer be legally or and
feasibly operated on a small-scale basis, the Secretary CHAPTER XI
shall: 33.3 Custom mills shall be constituted as withholding FINAL PROVISIONS
agents for the royalties, production share or other taxes
a. Provide written notice to all holders of due the Government. Provided, That as withholding Section 38. Repealing Clause. All orders, rules and regulations,
contracts within the area; and agents such custom mills shall be registered with the and other issuances, or parts thereof, in conflict or inconsistent
BIR. In mining areas where the private sector is unable herewith are hereby repealed and/or modified accordingly.
b. Given each contractor the right of first refusal to establish custom mills, the Board shall recommend to
and reasonable time frame to provide the the government to construct such custom mills if viable. Section 39. Separability Clause. Any section or provision of this
necessary technical and financial capability to The Board shall issue licenses for the operation of Order which may be declared unconstitutional shall not affect the
apply for a large-scale mining right; or custom mills and other processing plants subject to other sections or provisions hereof.
pollution control and safety standards. In the issuance of
c. Provide reasonable compensation to the processor’s permit/license, all provisions of the DENR Section 40. Effectivity. This Order shall take effect fifteen (15)
contractor the loss of mining rights, in case of Administrative Order No. 05, Series of 1989, not days after its publication in the Official Gazette or in a national
reversion. inconsistent with the provisions of this Order are hereby newspaper of general circulation.
adopted. The Department shall establish assay
CHAPTER VIII laboratories to cross-check the integrity of custom mills
OTHER PROVISIONS and to render metallurgical and laboratory services to
miners.