Mining Geo exam pt.1

Mineral Reservations

Areas established by the President for mining operations.

Other Reservations

Reserved lands for mining by DENR or qualified persons.

Areas Open to Mining

Public or private lands available for mining permits.

Areas Closed to Mining

Prohibited areas requiring clearance for mining activities.

Military Reservations

Restricted areas needing government clearance for mining.

Small Scale Mining

Mining governed by RA 7076, maximum 20 hectares.

Ore Transport Permit

Document specifying mineral origin and quantity.

Mineral Trading Registration

Registration by DTI, accredited by DENR.

Minerals Processing Permit

Permit required for processing mined minerals.

Timber Rights

Rights subject to forestry laws and regulations.

Water Rights

Rights needing approval from concerned agency.

Regional Panel of Arbitrators

Dispute resolution panel with legal and engineering members.

Mines Adjudication Board

Board chaired by DENR Secretary for mining disputes.

Excise Tax on Minerals

Tax rate of 2% on mineral products.

Mine Wastes Fees

Fees of 0.05/MT and 0.10/MT, semi-annually.

Occupation Fees

Fees based on exploration permits and agreements.

Grounds for Cancellation

Reasons include non-filing and tax violations.

False Statements Penalty

Fine of P10,000 for false declarations.

Illegal Exploration Penalty

Fine of P50,000 for unauthorized exploration.

Theft of Minerals Penalty

Imprisonment 6 months to 6 years, fines apply.

Mines Arson Penalty

Penalties under revised Penal Code for mine arson.

Violation of ECC Penalty

Imprisonment 6 months to 6 years or fines.

Mining

Encompassing the extraction of all naturally occurring mineral substances - solid, liquid, and gas - from the earth for utilitarian purposes.

Utilitarian

Those essential human needs and desires that have been uniquely met by minerals down through the ages.

Cultural ages of Man

Stone Age (prior to 4000 B.C.), Bronze Age (4000 to 1500 B.C.), Iron Age (1500 B.C. to A.D. 1780), Steel Age (1780-1945), Nuclear Age (since 1945).

Mine

An excavation made in the earth to extract minerals.

Mining engineering

The art and science applied to the processes of mining and the operation of mines.

Mineral

A naturally occurring substance, usually inorganic, having a definite chemical composition and distinctive physical characteristics.

Rock

An assemblage of minerals, organic remains, glass and pre-existing rocks.

Ore

Mineral that has sufficient utility and value to be extracted at a profit.

Waste or gangue

Mineral that lacks utility and value when mined.

Mineral deposit

Geologic occurrence of minerals in relatively concentrated form.

Ore deposit

Economic occurrence of minerals that can be extracted at a profit.

Metallic ores

Includes ferrous metals (iron, manganese, molybdenum, and tungsten), base metals (copper, lead, zinc, and tin), precious metals (gold, silver and platinum), and radioactive metals (uranium, thorium, and radium).

Non-metallic ores

Industrial minerals such as phosphate, potash, stone, sand, gravel, sulfur, salt, and industrial diamonds.

Mineral fuels

Includes coal, petroleum, natural gas, uranium, and less common marginal sources (lignite, oil shale, tar sand, and coalbed methane).

Mining Methods

Surface Mine - excavation is entirely open to or operated from the surface; Underground Mine - excavation consists of openings driven below the surface.

Mineral processing

Process of preparing and beneficiating run-of-mine materials.

Marketing

End step in converting a useful material into a usable product.

Civil and military works

The objective is to produce a stable opening of desired size, orientation, and permanence, such as vehicular tunnels, storage reservoirs, waste disposal chambers, and military installations.

Geology

Locating and exploring a mineral deposit.

Metallurgical engineering

Processing, refining, and fabricating.

Fire setting

Heat to expand rock and water to cool, contract and break.

Industrial Revolution

Greatest impact on the need for and use of minerals.

Mining Lease Contracts (MLCs)

Contract for exploration and extraction of minerals.

Exploration Permits (EPs)

Allows limited exploration work for two years.

Mineral Agreements

Contracts for mineral exploration and production rights.

Financial or Technical Assistance Agreement

Agreement for foreign investment in mining operations.

Mineral Processing Permit

Permit for processing minerals, valid for 5 years.

Quarry Permit

Permit for extracting materials from quarries.

Small-Scale Mining Permits

Permit for small-scale mineral extraction activities.

Sand and Gravel Permits

Permit for extracting sand and gravel resources.

Ore Transport Permits

Permit for transporting extracted mineral ores.

Declaration of Location (DOL)

Document confirming mining claim filing.

Mineral Production Sharing Agreement (MPSA)

Exclusive mining rights for Filipino entities.

Co-Production Sharing Agreement

Agreement for shared inputs in mining operations.

Joint Venture Agreement

Partnership between government and contractor in mining.

Industrial Sand and Gravel Permit

Permit for large-scale sand and gravel extraction.

Area Relinquishment

Requirement to surrender portions of exploration area.

Maximum Area for EPs

16,200 hectares per province, 32,000 nationwide.

Exploration Period

Initial two years for exploration, renewable.

Construction and Development Period

Three years allocated for project development.

Application Process Flow

Steps for filing mining permit applications.

MGB

Mines and Geosciences Bureau, regulatory body.

DENR

Department of Environment and Natural Resources.

Publication Requirement

Mandatory public announcement of mining applications.

Approval by DENR Secretary

Final approval needed for mining permits.

Foreign Equity Limit

Maximum foreign ownership capped at 40%.

Minimum Capital Requirements

PhP 10 million authorized, PhP 2.5 million paid-up.

NCIP Certification

Pre-condition for mining operations in the Philippines.

Certification by Arbitrators

Panel's approval required for mining certifications.

MGB RO Registration

Registration and releasing process by Mines and Geosciences Bureau Regional Office.

MGB CO Final Review

Final assessment by Mines and Geosciences Bureau Central Office.

MPSA Numbering

Unique identification for Mineral Production Sharing Agreements.

DENR Endorsement

Approval required from Department of Environment and Natural Resources.

Presidential Review

Final approval by the President of the Philippines.

National Government Share

Tax revenue from mining operations to the national government.

Income Tax Rate

35% of taxable income from mining.

Excise Tax

2% of actual mineral value extracted.

Value Added Tax

10% on purchase value of goods/services.

Capital Gains Tax

10-20% on profit from asset sales.

Foreign Loan Interest Tax

15% on interest payments to foreign loans.

Royalties on Government Reservations

5% of market value for extracted minerals.

FTAA Cost Recovery Period

5-year period to recover mining investments.

Basic Government Share

Includes national and local taxes from mining.

Supreme Court Decision 2004

Declared Mining Act provisions unconstitutional.

FTAA Constitutional Affirmation

FTAA agreements upheld by Supreme Court.

Environmental Impact Assessment (EIA)

Required for all environmentally critical mining projects.

Environmental Clearance Certificate (ECC)

Approval needed before mining operations commence.

Environmental Work Program

Plan addressing environmental impacts during exploration.

Environmental Protection and Enhancement Program (EPEP)

Annual plans for environmental protection during mining.

Final Mine Rehabilitation Plan

Activities for mine closure and rehabilitation.

Contingent Liability and Rehabilitation Fund (CLRF)

Fund for timely compensation and rehabilitation efforts.

Mine Waste Fees

PhP 5.00 per metric ton of mine waste.

Social Development and Management Program

Community development initiatives funded by mining companies.

Indigenous Peoples Rights

IPs entitled to 1% of annual gross revenue.

Local Government Share

40% of excise tax shared with local governments.