Guidelines on Offshore Mining

May 16, 2016

MGB MEMORANDUM CIRCULAR NO. 005-16

SUBJECT : Guidelines on Offshore Mining

For the consistent implementation of the provisions on offshore mining of Republic Act (RA) No. 7942, otherwise known as the Philippine Mining Act of 1995, and its implementing rules and regulations (IRR), the following guidelines are hereby issued:

SECTION 1. Scope. —

This Memorandum Circular shall cover the conduct of offshore mining within the territorial sea of the Republic of the Philippines, and its exclusive economic zone and the extended continental shelf as established under Parts V and VI, respectively, of the United Nations Convention on the Law of the Sea (UNCLOS).

The provisions of RA No. 7942 (The Philippine Mining Act of 1995), RA No. 6969 (Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990), RA No. 9003 (Ecological Solid Waste Management Act of 2000), RA No. 9275 (The Philippine Clean Water Act of 2004), Presidential Decree No. 1586 (Philippine Environmental Impact Statement System)and their respective IRRs, and the pertinent rules and regulations issued by the Philippine Coast Guard (PCG), Maritime Industry Authority (MARINA), Philippine Ports Authority (PPA), National Mapping and Resource Information Authority (NAMRIA) are also iterated in so far as their application to offshore mining is concerned.

SECTION 2. Definition of Terms. —

As used in and for purposes of this Memorandum Circular, the following terms shall mean:

a. "Coastal Geohazard Assessment" refers to the determination of the susceptibility of coastal areas relative to geological hazards, such as, but not limited to, erosion, siltation/accretion, flooding and submarine landslide.

b. "Continental Shelf" refers to "the seabed and subsoil of the submarine areas that extend beyond its territorial sea throughout the natural prolongation of its land territory to the outer edge of the continental margin, or to a distance of 200 nautical miles from the baselines from which the breadth of the territorial sea is measured where the outer edge of the continental margin does not extend up to that distance." 1

c. "Extended Continental Shelf" refers to the portion of the continental shelf beyond the exclusive economic zone established in accordance with Article 76 of the UNCLOS. CAIHTE

d. "Offshore Mineral Resources" refer to the mineral resources occurring on and/or under the seabed.

e. "Offshore Mining" refers to mining activities involving exploration, feasibility study, development and utilization of offshore mineral resources and rehabilitation of affected areas.

Other terms used in this Memorandum Circular shall have their meaning as defined in other relevant laws and their implementing rules and regulations.

SECTION 3. General Provisions. —

3.1. Offshore mining operations shall be conducted in a manner that will not adversely affect the safety of navigation at sea and other marine activity(ies).

3.2. Offshore mining operation within a permit/contract area shall be systematically clustered to minimize the extent of disturbance.

3.3. The permit/contract area shall be properly delineated by buoys marked with basic information, such as: the name of the Permittee/Contractor, permit/contract number, validity period, geographical coordinates of the marker and the average water depth.

3.4. No permanent structure(s) shall be constructed within the permit/contract area.

3.5. Prior to the use of any vessel and/or installation of any temporary structure in offshore mining, the Permittee/Contractor shall submit to the Bureau the name, basic description and expected period of arrival/installation of vessel(s)/structure(s), and secure the appropriate permit(s) and/or clearance(s) from other agencies concerned, such as, but not limited to, MARINA, PCG and PPA.

3.6. The Permittee/Contractor shall provide a schedule of its activities to the PCG and NAMRIA prior to its implementation, in connection with their publication of the "Notice to Mariners."

3.7. Officials and duly authorized representative(s) of the Department/Bureau/Regional Office concerned shall have full access to the Permittee's/Contractor's structure(s), record(s) and vessel(s) within the Philippine territorial sea, exclusive economic zone and extended continental shelf at any reasonable time to conduct inspections/investigations and/or research works.

3.8. The Permittee/Contractor shall have a contingency plan for emergencies, such as oil spills, fire, and/or disaster.

3.9. The disposal of industrial, domestic and nuclear wastes, fuels, oils, and other hazardous/chemicals/substances shall be governed by the applicable laws, rules and regulations.

3.10. The Permittee/Contractor shall immediately report to the Regional Office concerned, the Environmental Management Bureau and the PCG any spillage of fuel or oil and/or other hazardous chemicals/substances with potential to cause marine pollution.

3.11. The Permittee/Contractor shall notify the Bureau in writing at least 30 days prior to removal of any temporary structure(s), equipment and apparatus within the permit/contract area.

SECTION 4. Specific Provisions. —

4.1. Exploration

4.1.1. The Permittee/Contractor shall comply with the Philippine Mineral Reporting Code in the reporting of its exploration results, mineral resources and ore reserves. The reports shall be accompanied by raw geologic, geophysical and geochemical data plotted in a 1:50,000 scale map, at a minimum.

4.1.2. The Permittee/Contractor shall abide by the required annual area relinquishment.

4.1.3. The Permittee/Contractor shall include in its exploration report(s) to the Bureau/Regional Office concerned any discovery of other offshore mineral resources.

4.1.4. Drilling platform(s) shall be enclosed with oil spill containment boom.

4.1.5. Only water-based drilling mud/additives shall be used.

4.1.6. In the event of discovery of sunken treasure(s)/artifact(s)/shipwreck(s), the Permittee/Contractor shall immediately cease operation within the discovery area and inform the National Museum of the Philippines (NMP) and the Bureau within 24 hours from discovery. The operation in the discovery area may only resume after securing authorization/clearance from the NMP.

4.2. Development and Utilization

4.2.1. The Contractor shall utilize the appropriate and efficient mining method with minimal adverse impact(s) to the marine environment. The use of high-pressure water jet in the extraction of materials shall be prohibited.

4.2.2. Systematic sequence of extraction shall be carried out in such a way that the non-valuable minerals produced from the on-board mineral processing shall be directed to and used as back-filling in the mined-out portion within the contract area.

4.2.3. On-board mineral processing and laboratory testing/analysis requiring the use of chemicals shall not be allowed.

4.2.4. Size reduction processes, such as crushing and grinding, shall be prohibited.

4.2.5. In cases where minerals/mineral products will be processed/re-processed onshore, a mineral processing permit shall be required pursuant to the applicable provisions under Chapter XI of Department of Environment and Natural Resources Administrative Order (DAO) No. 2010-21 and other applicable laws, rules and regulations: Provided, That, the computation of excise tax and royalty to be paid by the Contractor shall be based on the gross market value of the final output produced from the mineral processing plant. DETACa

4.2.6. The right granted to the Contractor to undertake development/utilization of offshore minerals does not include the right to lay out pipelines and/or power lines and/or install any structure outside the contract area.

SECTION 5. Environmental Protection, Rehabilitation, Decommissioning, Safety and Health and Social Development. —

5.1. Environmental Protection, Rehabilitation and Decommissioning

 In the implementation of environmental protection, progressive and final rehabilitation and decommissioning, the Contractor shall:

5.1.1. Provide sediment control or containment system, such as sediment screen/curtain, to minimize the spread of particulates.

5.1.2. Discharge the non-valuable minerals from on-board mineral processing through the use of submerged pipe(s) with the minimum dispersion of particulates.

5.1.3. Ensure the implementation of the appropriate closure plan, such that decommissioned sites and associated ecosystems are rehabilitated and left in a safe and stable condition, taking into account beneficial uses of the site and surrounding seabed.

5.1.4. Ensure the safe and proper removal and disposal of temporary structure(s) in the contract area.

5.1.5. Report to the Bureau the removal and disposal of the temporary structure(s) in the contract area within 15 days from their completion.

5.1.6. Coastal Geohazard Assessment shall be conducted by the Permittee/Contractor.

5.2. Safety and Health

5.2.1. The Permittee/Contractor shall abide by the applicable provisions of DAO No. 2000-98, the "Mine Safety and Health Standards."

5.2.2. The Permittee/Contractor shall have at least one (1) part-time safety engineer and one (1) full-time safety inspector: Provided, That at least one (1) safety engineer or safety inspector shall be present at all times.

5.2.3. The Safety Engineer/Inspector must have undergone 40 hours of occupational safety and health training/seminars, such as Offshore Safety Induction Emergency Training and Water Safety and Rescue Training.

5.2.4. No person under eighteen (18) years of age shall be employed.

5.2.5. The Permittee/Contractor shall comply with the applicable safety and health rules and regulations imposed by MARINA, PCG, PPA, Department of Labor and Employment, Department of Health, and other government agencies.

5.3. Social Development

5.3.1. The Permittee/Contractor shall promote the general welfare of affected communities in accordance with the provisions of Section 136-A, Chapter XIV of DAO No. 2010-21 re: Social Development and Management Program (SDMP) and Community Development Program (CDP).

 

5.3.2. The SDMP/CDP shall focus on human resources development and institutional building, enterprise development and networking, assistance to infrastructure and support services, access to education and educational support programs, access to health services, health facilities and health professionals, protection and respect of socio-cultural values.

SECTION 6. Reporting Requirements. —

The Permittee/Contractor shall comply with the applicable reporting requirements under Sections 270 and 271 of DAO No. 2010-21 and other report/s as may be required by the Director.

SECTION 7. Penal Provision. —

Penalty(ies) and/or fine(s) shall be imposed for any violation of the provisions of this Memorandum Circular pursuant to R.A. No. 7942, DAO No. 2010-21 and other applicable laws, rules and regulations.

SECTION 8. Separability Clause. —

Should any provision of this Memorandum Circular or any part hereof be held or declared invalid by a competent court, the other provisions shall remain in full force and effect.

SECTION 9. Repealing Clause. —

All Memorandum Circulars or parts thereof inconsistent with or contrary to the provisions of this Circular are hereby repealed, amended or modified accordingly.

SECTION 10. Effectivity. —

This Memorandum Circular shall take effect 15 days after posting on the Bulletin Boards of the Bureau and its Regional Offices.

 

(SGD.) LEO L. JASARENODirector

Footnotes

1. United Nations Convention on the Law of the Sea, Part 6, Article 76. Definition of the Continental Shelf.