Guidelines for Compliance Monitoring and Rating/Scorecard of Mining Permits/Contracts

July 3, 2018

MGB MEMORANDUM CIRCULAR NO. 002-18

 

 

Pursuant to Section 9 of Republic Act (RA) No. 7942 or the Philippine Mining Act of 1995, Section 7 of Department of Environment and Natural Resources (DENR) Administrative Order (DAO) No. 2010-21 re: Providing for a Consolidated Department of Environment and Natural Resources Administrative Order for the Implementing Rules and Regulations of Republic Act No. 7942, otherwise known as the "Philippine Mining Act of 1995," and RA No. 10964 or the General Appropriations Act of 2018, particularly the provisions for Performance Informed Reporting, the following are hereby promulgated for the guidance and compliance of all concerned: DETACa

SECTION 1. Basic Policy. —

The exploration, development and utilization of the country's mineral resources shall be undertaken responsibly and shall always comply with the laws, rules and regulations. It shall be guided by best practices in mining operation, safety and health, environmental management and social development which are regularly monitored and measured toward ensuring the enhancement of national growth in a way that effectively safeguards the environment and protect the rights of affected communities.

SECTION 2. Objectives. —

This Memorandum Circular is issued for the following purposes:

1. Provide an efficient and effective Standard Monitoring System, by using checklists, that shall ascertain the compliance of Contractors/Permittees/Permit Holders with the terms and conditions and laws, rules and regulations; and

2. Provide a performance rating system by using scorecards to determine the compliance level of Contractors/Permittees/Permit Holders.

SECTION 3. Scope and Coverage. —

This Memorandum Circular shall cover the monitoring of Exploration Permits, Mineral Agreements and Financial or Technical Assistance Agreements on the compliance with the terms and conditions and provisions of all pertinent laws, rules and regulations, and the corresponding scoring/rating system.

SECTION 4. Standardized Monitoring System. —

To ensure compliance with the terms and conditions, and pertinent laws, rules and regulations, a Standardized Monitoring System for Contractors/Permittees/Permit Holders shall be implemented. The Standardized Monitoring System hereby provides Monitoring Checklists and the Guide for the Conduct of the Monitoring Mining Permits/Contracts and Accomplishing the Monitoring Checklists. HEITAD

SECTION 5. Standardized Monitoring Checklist. —

To ensure the effective and uniform monitoring of the Tenements, and Safety and Health, Environmental Management, and Social Development (T-SHES) mandatory compliance requirements, implementation of Work Programs, terms and conditions of the Mining Permits/Contracts, and pertinent laws, rules and regulations, the Guide for the Conduct of Monitoring of Mining Permits/Contracts and Accomplishing the Monitoring Checklist (Tenement and SHES Compliances) [Annex 1], and the following Standardized Monitoring Checklists are hereby provided and shall be utilized by the Mines and Geosciences Bureau (MGB) Regional Offices (RO) personnel for the conduct of monitoring:

a. Tenement (Exploration) Monitoring Checklist [Annex 1A];

b. Tenement (Development/Operating) Monitoring Checklist [Annex 1B];

c. Safety and Health (Exploration and Development/Operating) Monitoring Checklist [Annex 1C];

d. Environmental Management (Exploration) Monitoring Checklist [Annex 1D-1];

e. Environmental Management (Development/Operating) Monitoring Checklist [Annex 1D-2];

f. Social Development (Exploration) Monitoring Checklist [Annex 1E-1]; and

g. Social Development (Development/Operating) Monitoring Checklist [Annex 1E-2].

SECTION 6. Compliance Scorecard of Mining Permits/Contracts. —

The Compliance Scorecard measures the level of compliance of Mining Permits/Contracts with the mandatory Tenements and Safety and Health, Environmental Management, and Social Development (T-SHES) requirements of RA No. 7942 and its implementing rules and regulations (IRR), implementation of Work Programs, other pertinent laws, rules and regulations, and the terms and conditions of the Mining Permits/Contracts. The following Compliance Scorecards are hereby provided for this purpose:

a. Tenement (Exploration) Compliance Scorecard [Annex 2A];

b. Tenement (Development/Operating) Compliance Scorecard [Annex 2B]; aDSIHc

c. Safety and Health (Exploration and Development/Operating) Compliance Scorecard [Annex 2C];

d. Environmental Management (Exploration) Compliance Scorecard [Annex 2D-1];

e. Environmental Management (Development/Operating) Compliance Scorecard [Annex 2D-2];

f. Social Development (Exploration) Compliance Scorecard [Annex 2E-1];

g. Social Development (Development/Operating) Compliance Scorecard [Annex 2E-2]; and

h. T-SHES Compliance Scorecard [Annex 2F].

The Guide in Accomplishing the Scorecard for Tenements (Exploration, Development/Operating) and SHES Compliances [Annex 2] provides the instruction and reminders on how to fill-up the various Compliance Scorecards.

SECTION 7. Compliant/Non-Compliant Mining Permits/Contracts. —

Mining Permits/Contracts shall be determined as compliant or non-compliant based on the results of the monitoring and the score/rating in the Compliance Scorecards.

Mining Permits/Contracts shall be deemed compliant if:

• It has complied with all the mandatory requirements; and

• Has an overall performance rating of 80% provided there is no score/rating lower than 75% in any of the Compliance Scorecards.

Mining Permits/Contracts that does not meet the above standards shall be deemed non-compliant and shall be grounds for imposition of penalties or suspension/cancellation.

SECTION 8. Separability. —

If any clause, sentence, section or provision of this Memorandum Circular is held or declared to be unconstitutional or invalid by a competent court, the remaining parts of this Memorandum Circular shall not be affected thereby.

SECTION 9. Repealing and Amending Clause. —

All orders, circulars and directives or parts thereof inconsistent with the provisions of this Memorandum Circular are hereby repealed and/or modified accordingly.

SECTION 10. Effectivity. —

This Memorandum Circular shall take effect immediately. ATICcS

(SGD.) ATTY. WILFREDO G. MONCANODirector