Mining Act of 1995 vs. Minerals Management Bill at a Glance

The Mining Act of 1995

• Caters to the need of the global extractives industry players to access mineral areas and control the use of minerals to feel global corporate demand for raw materials and energy in the production, distribution and consumption of commodity products.
• The Act facilitates the entry of corporations into ecosystems and community territories for the exploration and extraction of minerals to be shipped out of the country in exchange for revenues from the corporations.
• Fiscal incentives regime of the Act grants too many incentives for investments, including confidentiality of information, return of investments, tax-break etc.
• The Act has been used to sabotage local government efforts to protect the health, environment and livelihoods of their constituents; corrupted the Free, Prior and Informed Consent process of indigenous peoples communities; rendered inutile the Environmental Impact Assessment system; and has brought about human right violations against communities and individual resisting mining.
• It lacks systems that would ensure payment and compensation of affected communities and local government units.
• It fails to provide for punishment and accountability on social impacts, including human rights violations.
• It grants too much power for decision-making to the President, when resources are the only heritage of the Filipino people, meanwhile disempowering local communities through participatory mechanisms.
• It allows 100% ownership and control of natural resources to foreigners.
• The Act was declared unconstitutional by the Supreme Court in the case of La Bugal B’laan Tribal Association v. Ramos, a decision that was overturned less than a year later. The history of the case mirrors the proclivity of the government to act against its better judgment once the so-called profits of mining are brought into the picture.

The Minerals Management Bill

• It has its origins in the 2002 conference of environmental, social and community rights advocates that has criticized the economic and political set-up of the mining industry and opposed the Mining Act.
• After years of consultation on the ground and meeting with experts HB 3763 was filed in congress, which was then called Alternative Mining Bill (AMB).
• Official title: An Act to Regulate the Rational Exploration, Development and Utilization of Mineral Resources and to Ensure the Equitable Sharing of Benefits for the State, Indigenous Peoples and Local Communities, and for other Purposes.
• Introduced in Congress by Hon. Kaka J. Bag-ao and Hon. Walden Bello (Akbayan Partylist), Hon. Teddy Brawner Baguilat Jr., Hon. Rufus Rodriguez, Hon. Maximo Rodriguez, Hon. Carlos Padilla and Hon. Roilo Golez.

Important Provisions of the Minerals Management Bill

• Conservation of our Mineral Resources

  • Use of minerals must consider the allocation needed to be used by future generations, re-mining and recycling of minerals will be prioritized as well as rehabilitation of old mines.
  • If to be used by the present generation, it would only be under a rational need based utilization and domestic use.

• For the benefit of the Filipino People

  • Exploration, development and utilization of mineral resources will be geared towards national industrialization and modernization of agriculture. The state shall build the domestic processing capacity for industrial metals and other labor-intensive downstream industries.
  • Only mineral resources that shall be needed for local industries shall be mined.

• Minerals Utilization Framework

  • This framework will be formulated to support plans for national development based on sustainable development.
  • The Mines and Geosciences Bureau (MGB) will be transformed into a purely scientific research institution under the Department of Science and Technology (DOST). Exploration of strategic minerals shall be exclusively and directly undertaken the State through the Bureau.
  • MGB shall come up with an inventory of mineral resources, identify strategic minerals needed for national development, demarcate mineral areas and build baseline information on watershed continuums.

• Multi-sectoral Minerals Council

  • Affected local communities and LGUs will be those potentially affected by mining located in relation to a watershed continuum – an area consisting of a watershed and the interconnection from the headwater to the reef.
  • A multi-sectoral minerals council will be created in each watershed continuum area which will have the authority to allow extraction and processing of minerals in their area and approve mineral agreements.

• Ownership of Indigenous Peoples

  • Mineral resources within ancestral domains/ancestral lands are the collective property of the indigenous cultural communities/indigenous peoples.
  • No mining shall be conducted within ancestral domains/land without their free, prior and informed consent.

• No Go Zones

  • There will be areas closed to mining operations which will include among others –

    • Critical watersheds
    • Geo-hazard areas
    • Small island ecosystems
    • Land covered by the Comprehensive Agrarian Reform Law
    • Key biodiversity areas, etc.

• Mineral extraction will not be allowed in areas more beneficial to other land use, priority to food security and livable conditions for peoples.

• Mineral Agreements

  • Shall be reserved for Filipino citizens and for Filipino corporations.
  • Financial and Technical Assistance Agreements (FTAAs) and any toher agreements granting foreign corporations to explore or extract mineral resources will not be allowed.
  • Contract area per agreement shall not exceed five hundred (500) hectares and the maximum allowable total contract area for any person in any given watershed area will be seven hundred –fifty (750) hectares.
  • The term for a mineral agreement will be the mine life plus five (5) years for rehabilitation, which in total should not exceed fifteen (15) years.

• Maximizing gains and preventing or mitigating adverse effects

  • Corporate transparency and accountability will be established. Contractors shall submit their Environmental and Social Impact Prevention and Mitigation Plan which will also contain a Social Development Management Plan.
  • Mandatory consultation with affected communities shall be undertake in each phase of mining operation.
  • Human rights protection will be prioritized and penalties imposed for violations.

• Equitable sharing

  • Aside from fees and taxes, government shall have at least a share of equivalent to ten per cent (10%) of the gross revenues from the development and utilization of mineral resources.
  • In case of mineral operations within ancestral domains, the contractor shall pay at least ten per cent (10%) of the gross revenues as royalty to the Indigenous Peoples or Communities.
  • Community development programs shall not be considered as royalty payment.