• Local government empowerment
• Respect and concern for the indigenous cultural communities
• Equitable sharing of benefits and natural wealth
• Demands of present generation while providing the foundation for future generations
• Worldwide trend towards globalization
• Protection for and wise management of the environment

• Built-in protection for the Indigenous Peoples (IP) through the prior informed consent requirement, one of, if not the only mining law in the world that contains such requirement, even pre-dating the free and prior informed consent (FPIC) requirement of the Indigenous Peoples Rights Act of 1997;
• Competitive fiscal regime. The fiscal regime is a major consideration among the investor's criteria for investment. The key concern of investors is not the fiscal regime per se, but the overall profitability of the project after considering the taxes. The fiscal regime of the Philippines is considered competitive not only in Asia but throughout the world, according to an independent study by the Institute for Global Resources Policy and Management of the Colorado School of Mines (CSM) in the United States in 2000;
• Equitable sharing of the benefits of mining among the major stakeholders – the national and local government, the communities and the mining company. Under the fiscal regime, the benefits of mining of mining are approximately shared at 50%:50% between the government and the contractor. The 50% is further divided into 50% for the national government, 10% for the provincial government and 20% each for the municipality and host barangays; and
• Environmental and social provisions comparable, if not better than similar provisions in mining laws of established countries. During the World Bank Mine Closure and Sustainable Development Workshop in 2000, the Philippines was among the nations considered to “have (a) comprehensive policy and legislation that provides for both comprehensive mine closure and post-mining sustainable development”. The Social Development and Management Program (SDMP) was also cited as a “tool for community participation”. The SDMP is meant for the development of the host and neighboring communities and is managed by the communities themselves together with the mining company and guidance by the Government and site-base NGOs. In addition, the national wealth sharing scheme, provided under the Local Government Code of 1991 where 40% of mining taxes collected by the national government is flowed back to the communities was cited as “one of the only few wealth sharing scheme of such nature in the world”.

The revised implementing rules and regulations of the Mining Act provides strict adherence to the principles of Sustainable Development which should encompass the economic, social and environmental aspects of human development.

Major Types Of Mining Rights Granted Under The Philippine Mining Act

One of the major features of the Mining Act is the annual mandatory relinquishment of areas granted to the contractor. The allowed final mining area is only 5,000 hectares for metals and 1,000 hectares for non-metals.

Environmental Responsibilities Under the Act and its Revised IRR

Environmental Provisions Of The Mining Act

• Environmental Work Program

• Initial expenditures for environment-related infrastructures

• Mine Rehabilitation Fund (MRF)

• Rehabilitation Cash Fund (RCF)

• Monitoring Trust Fund (MTF)

• Environmental Trust Fund (ETF)

• Mine Waste and Tailings Reserve Fund (MWTRF)

• Polluter Pays Principle

• Final Mine Rehabilitation/ Decommissioning Plan (FMRDP)

• Community Assistance

• Just Compensation to Landowners

• Social Development and Management Program (SDMP)

• Royalty to Indigenous Peoples (IP)

• Social Plan as part of FMR/DP

Role of Local Governments

Local governments are both beneficiaries and active participants in mineral resources management in accordance with the Constitution and local autonomy and empowerment. They have a share of forty percent (40%) from the gross collection of the national government from mining taxes, royalties and other fees. In the case of occupation fees, the province gets 30% and host Municipalities get 70%.

In accordance with the People’s Small Scale Mining Law, local governments are responsible for the issuance of permits for small scale mining and quarrying operations through the Provincial/City Mining Regulatory Board. In the issuance of Environmental Compliance Certificate, local governments actively participate in the process by which the communities reach an informed decision on the social acceptability of a project. They also participate in the monitoring of mining activities as member of the Multi-partite Monitoring Team and the Mine Rehabilitation Fund Committee. They can also act as mediator between the indigenous cultural communities and the mining contractor if the need arises.

Local government are also recipients of social infrastructures and community development projects for the utilization and benefit of the host and neighboring communities. In the implementation of the Mining Act and its implementing rules and regulations, local governments coordinate and extend assistance the DENR and the MGB.

Ancestral Lands and Indigenous Cultural Communities

The Mining Act recognizes fully the rights of indigenous peoples and respects their ancestral lands. No mineral agreements, FTAA and mining permits are granted in ancestral lands/domains except with prior informed consent in CADC/CALT areas and areas verified by the DENR Regional Office and/ or appropriate offices as actually occupied by indigenous peoples under a claim of time immemorial possession.

When written consent is granted by the ICCs, a royalty payment shall be negotiated which shall be negotiated and shall not be less than 1% of the gross output from mining operations.