CDA Memorandum Circular No. 2012-14: Guidelines for the Registration of Small-Scale Mining Cooperatives

Vocabulary-style flashcards based on Memorandum Circular No. 2012-14 detailing the definitions, rules, and requirements for registering small-scale mining cooperatives in the Philippines.

Memorandum Circular No. 2012-14

The official circular promulgated by the Cooperative Development Authority (CDA) providing guidelines for the registration of primary Small-Scale Mining Cooperatives, dated July 18, 2012.

Republic Act No. 6939

The law creating the Cooperative Development Authority (CDA) and vesting it with powers to promote the viability and growth of cooperatives.

RA 9520

The Philippine Cooperative Code of 2008, which aims to foster the creation and growth of cooperatives for economic development and social justice.

R.A. No. 7076

An Act Creating A People's Small-Scale Mining Program and for Other Purposes.

R.A. No. 7942

The Philippine Mining Act of 1995.

Area of Business Operation

The principal place of business operation of a proposed cooperative engaged in small-scale mining declared as "minahang bayan" by the Department of Environment and Natural Resources (DENR) and mineral processing area.

Area of Operation

The area where the cooperative members come from as provided for in their articles of cooperation and by-laws.

Authority

Refers to the Cooperative Development Authority (CDA).

Bond of Membership

The condition where members associate themselves to attain their common goals and objectives, which may be either residential or occupational.

Business Transaction

Any business activity or livelihood engaged in by the cooperative.

Cooperative

An autonomous and duly registered association of persons, with a common bond of interest, who voluntarily join together to achieve their social, economic, and cultural needs and aspirations.

Registration

The operative act of the Authority granting juridical personality to a proposed cooperative, as evidenced by the Certificate of Registration.

Share

A unit of capital in a primary cooperative, the par value of which is fixed at any figure not more than One Thousand Pesos (P1,000.00) and divisible by one peso.

Share Capital

The money paid or required to be paid by the members for the conduct of the operation of the cooperative.

Mineralized areas

Areas with naturally occurring mineral deposits of gold, silver, chromite, kaolin, silica, marble, gravel, clay, and like mineral resources.

Mining

Any activity involving exploration, extraction, development, utilization, and processing of mineral deposits of gold, silver, chromite, kaolin, silica, marble, gravel, clay, and like mineral resources.

Small-scale mining

Mining activities which rely heavily on manual labor using simple implements and methods and do not use explosives or heavy mining equipment.

Small-scale miners

Filipino citizens who, individually or in company with other Filipino citizens, voluntarily form a cooperative licensed by the DENR to engage in extracting or removing minerals or ore-bearing materials.

Small-scale mining contract

A co-production, joint venture, or mineral production sharing agreement between the State and a small-scale mining contractor for the small-scale utilization of a plot of mineral land.

Small-scale mining contractor

An individual or a cooperative of small-scale miners registered with the SEC or other appropriate agency that has entered into an agreement with the State for small-scale utilization of mineral land within a people's small-scale mining area.

License

The privilege granted to a person to legitimately pursue his occupation as a small-scale miner or processor under RA 7076.

Small-Scale Mining Cooperative

A cooperative composed of Filipino citizens, duly registered with the CDA, to engage in small-scale mining activities.

Mineral processing

The milling, beneficiation, or upgrading of ores or minerals and rocks or by similar means to convert the same into marketable products.

Quarrying

The process of extracting, removing, and disposing quarry resources found on or underneath the surface of private or public land.

People's Small-Scale Mining Areas

Areas declared by DENR suitable for small-scale mining that are not active mining areas, not covered by existing forest rights or reservations, and not declared as tourist/marine reserves or wildlife parks.

Minimum Member Requirement

Fifteen (15) or more natural persons (licensed miners) who are Filipino citizens, having a common bond of interest and residing or working in the intended area of operations.

Subscription Capital Requirement

At least twenty five percent (25%) of the authorized share capital must be subscribed by members, and at least twenty five percent (25%) of the subscribed share capital must be paid prior to registration.

Minimum Paid-Up Capitalization

Not less than Fifteen Thousand Pesos (P15,000.00) for primary cooperatives, or at least One Hundred Thousand Pesos (P100,000.00) for multipurpose cooperatives.

Preferred Share Limit

Preferred share capital shall not exceed Twenty Five Percent (25%) or one-fourth (1/4) of the total authorized share capital of the cooperative.

Maximum Individual Share Ownership

No member shall own more than Ten Percent (10%) of the subscribed share capital of the cooperative.

Residential Membership Bond

The membership bond assigned to cooperatives that engage in quarrying.

Occupational Membership Bond

The membership bond assigned to cooperatives that engage in small-scale mining within a People's Small-Scale Mining Area.

Registration Approval Timeframe

Application for registration shall be finally disposed by the Authority within Sixty (60) days from filing complete documentary requirements.

BOA Resolution No. 191, S-2012

The Board of Administrators resolution passed on July 13, 2012, approving the Guidelines in the Registration of Small-Scale Mining Cooperatives.