After reading, On Exploration Permit Under Republic Act No. 7942 or The “Philippine Mining Act Of 1995”, read also What is Community Mortgage Program Under Republic Act No. 7279 or The “Urban Development and Housing Act of 1992”?
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Exploration means the searching or prospecting for mineral resources
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An exploration permit grants the right to conduct exploration for all minerals in specified areas
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An exploration permit shall be for a period of two (2) years
Exploration means the searching or prospecting for mineral resources by geological, geochemical or geophysical surveys, remote sensing, test pitting, trenching, drilling, shaft sinking, tunneling or any other means for the purpose of determining the existence, extent, quantity and quality of mineral resources and the feasibility of mining them for profit. However, not all may engage in exploration as there must be a permit.
What is exploration permit?
The law says:
An exploration permit grants the right to conduct exploration for all minerals in specified areas. The Mines and Geosciences Bureau (Bureau) under the Department of Environment and Natural Resources have the authority to grant an exploration permit to qualified persons.
An exploration permit shall be for a period of two (2) years, subject to review and relinquishment or renewal upon the recommendation of the Bureau.
The maximum area that a qualified person may hold at one time shall be:
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Onshore, in any one province
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for individuals, twenty (20) blocks; and
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for partnerships, corporations, cooperatives, or associations, two hundred (200) blocks.
b. Onshore, in the entire Philippines
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for individuals, forty (40) blocks; and
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for partnerships, corporations, cooperatives, or associations, four hundred (400) blocks
c. Offshore, beyond five hundred meters (500m) from the mean low tide level:
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for individuals, one hundred (100) blocks; and
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for partnerships, corporations, cooperatives, or associations, one thousand (1,000) blocks
Once an exploration has been granted, what are the rights and obligations of the permittee or the holder of the exploration permit?
The law says:
An exploration permit shall grant to the permittee, his heirs or successors-in-interest, the right to enter, occupy and explore the area provided that if private or other parties are affected, the permittee shall first discuss with the said parties the extent, necessity, and manner of his entry, occupation and exploration and in case of disagreement, a panel of arbitrators shall resolve the conflict or disagreement.
The permittee shall undertake an exploration work on the area specified by its permit based on an approved work program.
Once the holder of an exploration permit determines the commercial viability of a project covering a mining area, he may, within the term of the permit, file with the Bureau a declaration of mining project feasibility accompanied by a work program for development. The approval of the mining feasibility and compliance with other requirements shall entitle to holder to an exclusive right to a mineral production sharing agreement or other mineral agreements or financial or technical assistance agreement.
What are the Modes of Mineral Agreement? A related article will be posted in a few days.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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