DECENTRALIZATION AND
ARTISANAL AND SMALLSCALE GOLD MINING IN THE
PHILIPPINES
ASGM Strategic Planning Project Conclusion Workshop
22-24 March 2011
ALLSON ANGKOR PARADISE HOTEL
Seim Reap Cambodia
Philippine Constitution
Local Government Code
PD 1899, RA 7076, RA 7942
Decentralization: Legal Basis
Philippine Constitution
1. Article II, Section 25. The State shall ensure the autonomy of local
governments.
2. Article X, Sections 1 to 21.
• Territorial and political subdivisions are the provinces, cities, municipalities,
barangays and autonomous regions which shall enjoy local autonomy.
• Empowers each LGU to create its own sources of revenues and to levy
taxes, fees and charges subject to certain guidelines and limitations.
• Encourages LGUs to consolidate or coordinate their efforts, services, and
resources for purposes commonly beneficial to them.
Legal Basis: Local Government Code of 1991
(Republic Act 7160)
Section 2 – Declaration of Policies
(a) The territorial and political subdivisions of the State shall enjoy genuine and
meaningful local autonomy…the process of decentralization shall proceed
from the national government to the local government units.
(b) Ensure the accountability of local government units through the institution of
effective mechanisms of recall, initiative and referendum.
(c) Require all national agencies and offices to conduct periodic consultations with
appropriate local government units, nongovernmental and people's
organizations, and other concerned sectors of the community before any
project or program is implemented in their respective jurisdictions.
Innovations in the law on local governments
introduced by the Local Government Code of 1991
• Devolution of basic services (e.g. health,
environment, etc.) to LGUs;
• Increase of financial resources available to LGUs;
• Devolution of responsibility for enforcement of
certain regulatory powers (e.g. reclassification of
agricultural lands, environmental laws, inspection
of food products and quarantine, etc.);
• Legal infrastructure for participation of NGOs
and POs in the process of governance by
allocating seats to them in key local bodies.
• It laid a foundation for the development of more
entrepreneurship by local governments.
Local Government
Units (LGUs), as
political subdivisions
of the Republic of the
Philippines have
delegated powers
pursuant to
pertinent provisions
of RA 7160. Broadly,
these delegated
powers are
categorized as those
relating to
TAXATION,
EMINENT DOMAIN
& POLICE.
Perceived Drawbacks of
Decentralization and Devolution
• Failure of local leaders to accurately predict preferences
or priorities of their constituents.
• Financial difficulties of LGUs to carry out devolved
functions especially those that pertain to health and
environment.
• Need to strengthen LGU capacity to address health and
environmental concerns including those that pertain to
small-scale gold mining.
• Jurisdictional issues between local and national
government agencies
ASGM and Philippine Mining Laws
PD 1899
RA 7076
Governs small-scale
mining operations for
areas not declared as
Peoples' Small-Scale
Mining Area (PSSMA)
under RA No. 7076.
Governs small-scale mining
operations in PSSMAs declared
under RA No.
7076; requires miners to secure
Small-Scale Mining Contracts
(SSMCs) pursuant to the pertinent
provisions thereof.
Grants the Board the power to
declare people's small scale mining
areas for public lands not subject
to any existing right and public
lands covered by existing
mining rights which are not
active mining areas, among
others.
RA 7942
Requires SSMP/ SSMC holder
to strictly comply with its
environmental,
safety and health, and social
provisions.
Grants the President the
power to establish Mineral
Reservation Areas under
conditions set by law. An
aggregate of 25% of MRAs
shall be covered by smallscale mining agreement.
Devolution of ASGM to Local
Government Units
1. Local Government Code of 1991 - Section 17(b)(3)(iii)
• Basic Services and facilities for a Province: Subject to
supervision, control and review of the DENR…small-scale mining
law, and other laws on the protection of the environment…for local
purposes;
2. People’s Small-Scale Mining Act of 1991 (Republic Act 7076)
• Mandates the creation of Provincial/City Mining Regulatory Boards
(PMRB)with the Governor or Mayor or their representative as
member. The Board serves as the implementing agency of DENR on
matters pertaining to artisanal and small-scale mining.
• Entitles LGUs a share of the revenue
ASGM Institutional Framework
(under RA 7076)
• Provincial/City Mining Regulatory Board as the implementing agency of the DENR.
Composition: DENR representative as Chairman; Governor/City Mayor or
representative, one (1) small scale mining representative, one (1) big-scale mining
representative, and the representative from a non-government organization who
shall come from an environmental group, as members.
Functions:
a. Declare and segregate existing gold-rush areas for small-scale mining;
b. Reserve future gold and other mining areas for small-scale mining;
c. Award contracts to small-scale miners;
d. Formulate and implement rules and regulations related to small-scale mining;
e. Settle disputes, conflicts or litigations over conflicting claims within a people's
small-scale mining area, an area that is declared a small-mining; and
f. Perform such other functions as may be necessary to achieve the goals and
objectives of RA 7076
Jurisdictional Issues on ASGM
1. Diwalwal, Monkayo, Compostella Valley (Mindanao)
• Pursuant to RA 7942, the President issued Proclamation
297 declaring 8,100 hectares located in Monkayo,
Compostella Valley as mineral reservation area. DENR AO
No. 2002-18 was subsequently issued declaring the State’s
direct takeover of mining operations of the Diwalwal Gold
Rush Area and awarded mining contracts to qualified
mining entities including small-scale miners.
The role of local government is removed when it comes to
ASGM operations in the Diwalwal Gold Rush area. Giving
rise to conflict with national and local government.
Jurisdictional Issues on ASGM
Compostella Valley
• Recognizing the economic significance of
ASGM activities in the province and the
need to regulate ASGM operations in the
area, the Governor formally declared
PSSMAs.
LGU approach to ASGM obstacles
Benguet, Northern Luzon
• Most mineral lands have been covered by various tenures
and mining claims, making it impossible for the PMRB to
declare PSSSMAs and issue SSMCs to miners.
• To help the miners legalize their operations, the Provincial
Government facilitated the issuance of Special Temporary
Mining Permits as it pushes for the enactment of provincial
mining code which will harmonize conflicting mining laws in
the province and streamline procedures for formalization.
Thank you for listening!