After reading, Mineral Agreements Under Republic Act No. 7942 or The Philippine Mining Act Of 1995, read also On Exploration Permit Under Republic Act No. 7942 or The “Philippine Mining Act Of 1995”
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Minerals refer to all naturally occurring inorganic substance in solid, gas, liquid
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Mineral agreement means a contract between government and a contractor, involving mineral production-sharing agreement, co-production agreement, or joint-venture agreement
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A mineral agreement shall grant to the contractor the exclusive right to conduct mining operations and to extract all mineral resources found in the contract area
Under Republic Act No. 7942 or the Philippine Mining Act of 1995, minerals refer to all naturally occurring inorganic substance in solid, gas, liquid, or nay intermediate state excluding energy materials such as coal, petroleum, natural gas, radioactive materials, and geothermal energy. Mineral resource, on the other hand, means any concentration of minerals or rocks with potential economic value.
Who owns the mineral resources?
The law says:
Mineral resources are owned by the State and the exploration, development, utilization and processing of mineral resources shall be under its full control and supervision. The State may directly undertake such activities or it may enter into mineral agreements with contractors.
What are the forms of mineral agreements?
The law says:
For purposes of mining operations, a mineral agreement may take the following forms:
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Mineral production sharing agreement
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It is an agreement where the Government grants to the contractor the exclusive right to conduct mining operations within a contract are and shares in the gross output. The contractor shall provide the financing, technology, management and personnel necessary for the implementation of this agreement.
b. Co-production agreement
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It is the agreement between the Government and the contractor wherein the government shall provide inputs to the mining operations other than the mineral resource.
c. Joint venture agreement
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It is an agreement where a joint-venture company is organized by the Government and the contractor with both parties having equity shares. Aside from the earnings in equity, the Government shall be entitled to a share in the gross output.
A mineral agreement shall grant the contractor the exclusive right to conduct mining operations and to extract all mineral resources found in the contract area. In addition, the contractor may be allowed to convert his agreement into any of the modes of mineral agreements or financial or technical assistance agreement covering the remaining period of the original agreement subject to the approval of the Secretary of the Department of Environment and Natural Resources.
Who may enter into any of the modes or forms of mineral agreements with the government?
The law says:
A qualified person may enter into any of the three (3) forms or modes of mineral agreement with the government for the exploration, development and utilization of mineral resources provided that in case the applicant has been in the mining industry for any length of time, he should possess a satisfactory environmental track record as determined by the Mines and Geosciences Bureau and in consultation with the Environmental Management Bureau of the Department.
What is the term of mineral agreements?
The law says:
Mineral agreements shall have a term not exceeding twenty-five (25) years to start from the date of its execution, and renewable for another term not exceeding twenty-five (25) years under the same terms and conditions without prejudice to changes mutually agreed upon by the parties.
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