FURTHER AMENDING CERTAIN SECTIONS OF PRESIDENTIAL DECREE NUMBERED FOUR HUNDRED SIXTY-THREE, OTHERWISE KNOWN AS “THE MINERAL RESOURCES DEVELOPMENT DECREE OF 1974”, AS AMENDED BY …

WHEREAS, efforts of the Government to accelerate the
development of our natural resources have been delayed by restrictions and
limitations of time in meeting the requirements of the laws and rules in
securing clearances and permits to undertake early mining operations;

WHEREAS, in order to help alleviate the present plight of
the mining operators and boost early exploitation of their concessions, the laws
and rules governing the submission of certain requirements should be
liberalized, and

WHEREAS, in the interest of the mining industry, and
pursuant to the policy of the Government to grant incentives to the industry in
order to accelerate mineral production, it is desirable to grant sufficient time
for submission of the requirements to make it more responsive to the needs of
the mining industry.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby
order and decree:

SECTION 1. Section 25 of Presidential Decree No. 463, as
amended by Section 14 of Presidential Decree No. 1385 and Section 4 of
Presidential Decree No. 1677, is further amended to read as follows:

“SEC. 25. Group Development.—The claimowner/ lessee
may concentrate all the annual work obligations on any one or more of several
contiguous or geologically related mining claims in one province, if it can be
shown to the Director that such concentration of work will be most advantageous
and beneficial in the development and operation of said mining claims: Provided,
That any expenditure in excess of the minimum amount required for work
obligations per hectare may be carried forward and credited to the work
.obligations of the group claims for the succeeding year or years subject to
field verification by the Bureau: Provided, further, That if the expenditure
incurred for any claim is less than that required in any year, the difference
shall be paid and accrue to the Bureau of Mines and Geo-Sciences to be used
exclusively for the purposes mentioned in Section 95 of the
Decree.”

SEC. 2. Section 27 of Presidential Decree No. 463, as
amended by Section 15 of Presidential Decree No. 1385 and Section 5 of
Presidential Decree No. 1677, is further amended to read as follows:

“SEC. 27. Annual Work Obligations.—The
claim-owner/lessee shall submit proof of compliance with the annual work
obligations by filing an affidavit therefore and the statement of expenditures
and technical report in the prescribed form in support thereof with the Mines
Regional Officer concerned within one hundred and twenty (120) days from the end
of the year in which the work obligation is required: Provided, That failure of
the claimowner to comply therewith for two (2) consecutive years shall
constitute automatic abandonment of the mining claim: Provided, further, That,
if it is found upon filed verification that no such work was actually done on
the mining claim, the claimowner, lessee shall likewise automatically lose all
his rights thereto notwithstanding submission of the aforesaid documents:
Provided, finally. That the Director, in cases of unstable peace and order
conditions and, or involvement in mining conflicts may grant further
extensions.”

SEC. 3. Section 33 of Presidential Decree No. 463, as
amended by Section 17 of Presidential Decree No. 1385, is further amended to
read as follows:

“SEC. 33. Mines Temporary Permit.—Pending the
issuance of a lease contract, the claimowner may, upon proper application duly
filed with the Mines Regional Officer concerned, be issued a mines temporary
permit by the Doctor upon compliance with all the obligations due on the mining
claims subject thereof and the posting of the surety bond in an amount to be
approved by the Director. This mines temporary permit shall be for a period of
one (1) year, renewable for a total period not exceeding three (3)
years.

A special permit may be issued by the Director for the removal, extraction
and disposal of minerals found to exist in limited –quantities. Subject to the
approval of the Minister, the Director shall issue rules and regulations to
ensure proper removal, extraction and disposition of such minerals.”

SEC. 4. Section 37 of Presidential Decree No. 463, as
amended by Section 8 of Presidential Decree No. 1677, is further amended to read
as follows:

“SEC. 37. Program of Work.—A claimowner shall, upon
the filing of an application for mining lease, undertake exploration,
development and/or mining activities thereon in accordance with the approved
program of work: Provided, That within the period of FIVE (5) YEARS, reckoned
from the date of the grant of the lease contract thereon, the mining area shall
be placed in actual commercial production: And provided, further. That failure
to do so within the period aforestated shall constitute automatic abandonment of
the mining- claims.

The program of work shall be for a period of FIVE (5) YEARS, and the
claimowner shall, at the start of every calendar year and during the existence
of the mining lease, submit to the Bureau of Mines and Geo-Sciences for the
approval of the Director an annual work program describing in detail the kind
and nature of mining activities to be undertaken thereon for that particular
year. Any deviation from, the approved work program shall be with the approval
of the Director.

Holders of existing mining leases shall submit a revised, or updated program
within six (6) months from the date of approval of this Decree.

The Regulations shall prescribe in detail the contents of the work
program.”

SEC. 5. Section 60 of Presidential Decree No. 463, is
amended to read as follows:

“SEC. 60. Employment of Filipinos.—Lessees under
this Decree are obligated to give preference to Philippine citizens in all types
of milling employment within the country, insofar as such citizens are qualified
to perform the corresponding work with reasonable efficiency and without hazard
to the safety of the operations; and are obligated likewise to maintain
effective programs of training and advancement commensurate with the
demonstrated abilities of such citizens to perform satisfactorily the various
types of operations involved. The lessee, however, shall not be hindered from
using employees of his own selection, subject to the provisions of Commonwealth
Act Numbered Six Hundred Thirteen, as amended, for technical and specialized
work which, in his judgment and with the approval of the Director, requires
highly specialized training or long experience in exploration, development or
exploitation of the mining claim: Provided, That in no case shall each
employment exceed five (5) years: Provided, further. That no foreigner shall be
employed as mine manager, vice-president for operations or equivalent managerial
position, in charge of milling, milling, quarrying or drilling operation without
passing the appropriate or pertinent government licensing examination or unless
in special cases permitted by the Director for a period not exceeding three (3)
years without prejudice to other applicable special laws.”

SEC. 6. All laws, decrees, executive orders, rules and
regulations which are in conflict or inconsistent with this Decree are hereby
amended, modified or repealed accordingly.

SEC. 7. This Decree shall take effect immediately.

Done in the City of Manila, this 7th day of February in the year of Our Lord,
nineteen hundred and eighty-four.

			(Sgd.) FERDINAND E. MARCOS President Republic of the Philippines
	By the President:
	(Sgd.) JOAQUIN T. VENUS, JR.
		Deputy and Presidential Executive