PRIMER ON SDMP

WHAT IS THE SOCIAL DEVELOPMENT AND MANAGEMENT PROGRAM (SDMP)?

• It refers to the comprehensive five-year plan of a Contractor/Permit Holder/Lessee authorized to conduct mining and milling operations towards the sustained improvement in the living standards of the host and neighboring communities by creating a responsible, self-reliant and resource- based communities capable of developing and implementing activities in a manner consistent with the principle of people empowerment.
• It is a tool for the development and implementation of community programs/activities in consultation and in partnership with the host and neighboring communities.

WHAT ARE THE LEGAL BASES FOR THE IMPLEMENTATION OF THE SDMP?

• Chapter X of Republic Act No. 7942 (Philippine Mining Act of 1995) provides that "the Contractor shall assist in the development of its mining community, the promotion of the general welfare of its inhabitants and the development of science and mining technology;"
• Section 134, Chapter XIV,DAO No. 96-40 (The Revised Implementing Rules and Regulations of R.A. 7942) provides for the development of community, mining technology and Geosciences; and
• DAO 2000-99, sets the Rules and Regulations on the Implementation of the for the mining project.

WHAT ARE THE GOALS AND OBJECTIVES OF THE SDMP?

• To meet the minimum basic needs of the mining communities and enhance human Welfare and prevent/reduce social ills;
• To optimize the advancement of human resources which includes grassroots development and people empowerment to attain a self-help, self-reliant and self-managed community,
• To provide opportunities for a self-sustained livelihood thus decreasing dependency on the benefits derived from the mining companies;
• To promote conservation and intellectual use/management of the environment vis-à-vis community and mining activities; and
• To protect the socio-cultural values and local patterns amidst improved economic condition and human advancement.

WHAT ARE THE CREDITED ACTIVITIES UNDER THE SDMP?

• Establishment/construction, development and maintenance of infrastructure such as community schools, hospital, churches, roads, bridges etc;
• Establishment of livelihood industries including reforestation through usufruct contracts to be issued by the DENR utilizing fruits trees; and
• Using facilities within the mine camp, such as hospitals and schools by members of host and neighboring communities.

HOW DO YOU DEFINE 'HOST' COMMUNITY AND 'NEIGHBORING' COMMUNITY?

• A host community refers to the people living at the barangay(s) outside the mine camp, where the mining project is located;
• A neighboring community refers to the people living at barangay(s), which are adjacent to the host community; areas covered by the mining tenement of the project; areas where mining facilities are located; and immediate areas which will be affected by the mining operations.

WHERE WILL THE FUNDS FOR THE IMPLEMENTATION OF THE SDMP COME?

• The Contractor/Permit Holder/Lessee allots a minimum of one-percent (1%) of the direct mining and milling costs annually, of which ninety-percent (90%) shall be appropriated to implement the SDMP and ten-percent (10%) for the development of mining technology and geosciences, as well as the corresponding manpower training and development.

HOW DO YOU DEFINE DIRECT MINING COST AND DIRECT MILLING COST?

• Direct mining costs refer to expenditures and expenses directly incurred in all activities preparatory to and in the actual extraction of the ore from the earth and transporting it to the mill plant for mineral processing.
• Direct milling costs refer to expenditures and expenses directly incurred in the mechanical and physical processing and/or chemical separation of the ore from the waste to produce marketable mineral products: Provided, That for cement plant operations, direct milling costs are limited to expenditures and expenses directly incurred from raw materials crushing and grinding up to ground raw meal homogenizing, prior to clinker manufacturing.

WHO ARE EXEMPTED FROM THE SUBMISSION OF THE SDMP?

• Companies engage in exploration activities are exempted from the submission of the SDMP. This, however, does not prevent such companies from a locating certain portions of its exploration budget for community development as a way of promoting a harmonious co-existence with the community.

WHAT IS A COMMUNITY RELATIONS OFFICER?

• A CRO is a company official who will serve as a link between the company and the host and neighboring communities in the implementation of the SDMP. She/He shall represent the company in dealing with the said communities and shall directly facilitate in addressing community concerns.

WHAT ARE THE DUTIES AND RESPONSIBILITIES OF THE CRO?

• Conducts/Participates in the SIA/PRA and social analysis
• Assesses the needs and opportunities of the community
• Formulates and develops projects/programs activities in coordination with the host and neighboring communities
• Prepares the SDMP in conformity with the SDMP provisions
• Implements programs/projects/activities in coordination with the host and neighboring communities
• Monitors and evaluates the implemented programs/projects/activities in coordination with the host and neighboring communities as an internal activity
• Corrects/Revises the projects/programs/activities with the host and neighboring communities to improve said undertakings
• Presents the SDMP to MGB-CO and Regional Office concerned.

WHO WILL PROCESS AND APPROVE THE SDMP?

• The SDMP of a Contractor/Lessee shall be submitted to the MGB Regional Office for preliminary review and shall be endorsed to the Central Office for final evaluation and approval
• The SDMP of the Permit Holder shall be submitted, evaluated and approved by the Regional Office

WHAT IS AN ANNUAL SDMP?

• The Annual SDMP is a document submitted to the concerned MGB Regional Office at least thirty (30) calendar days prior to the beginning of every calendar year to effectively implement the approved SDMP.

WHO WILL MONITOR AND AUDIT THE SDMP?

• The concerned MGB-Regional Office shall periodically monitor the implementation of the approved SDMP.
• The CRO and representatives from the host and neighboring communities shall conduct regular internal monitoring of the ongoing projects/program/activities as per approved SDMP
• The MGB-Central Office shall conduct an audit of the SDMP based on the monitoring reports of the Regional Office and internal monitoring of the CRO.

WHAT ARE THE PENALTIES FOR MINING COMPANIES OPERATING WITHOUT AN APPROVED SDMP?

• A Contractor/Permit Holder/Lessee found operating without an approved SDMP shall be liable to:
  • First Offense – fine not exceeding P5,000.
  • Second Offense - sufficient ground to suspend mining/milling operations in the areas under contract and fine not exceeding P5,000.

For more information, write or call:

MINING ENVIRONMENT AND SAFETY DIVISION
Telefax (63-2) 9260935
Tel. No. (63-2) 9265545
mesd@mgb.gov.ph