Presidential Decree No. 512 (PD 512) — Declaring Prospecting and Other Mining Operations of Public Use and Benefit and Establishing the Basis and Prescribing the Rules and Procedures Relative to Acquisition and Use of Surface Right in Mineral Prospecting, Development and Exploitation, and Providing Protection and Compensation to Surface Owners.
WHEREAS, the total efforts being exerted by the Government
to encourage and accelerate the development of our mineral resources is
sometimes snagged or hampered by the difficulties and delays in securing
surface rights under existing laws and regulations for the entry into
private lands for purposes of prospecting, location, exploration,
development and exploitation of mining claims, due to the frequent and,
at times, unreasonable objections on the part of owners and occupants of
private lands;
WHEREAS, it is desirable that there should be incentives and
encouragement given to surface right owners and occupants to grant the
necessary entry permit for mineral prospecting, location, exploration,
development, and exploitation; and
WHEREAS, in order to achieve full and accelerated mineral
resources development and to provide necessary protection to private
land owners and occupants, a new system of surface rights acquisition
and use by mining prospectors and claimants has to be provided.
NOW, THEREFORE, I FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution,
do hereby decree and order as part of the law of the land the following:
SECTION 1. Mineral prospecting, location, exploration,
development and exploitation is hereby declared of public use and
benefit, and for which the power of eminent domain may be invoked and
exercised for the entry, acquisition and use of private lands: Provided,
That any person or entity acquiring any option or right on such land
after the first publication of the notice of any mining lease covering
such land shall not be entitled to the compensation herein provided.
SEC. 2. Subject to prior notification, prospectors or
claimants of mineral lands shall not be prevented from entry into
private lands by surface owners and occupants when prospecting or
exploring therein: Provided, That any damage done to the property
of the surface owner shall be properly compensated: Provided,
further, That to guarantee such compensation to the surface owner,
the prospector or claimowner shall post a bond with the Bureau of Mines
in an amount to be fixed by the Director of Mines based on the type of
property and the prevailing price of lands in the area where prospecting
and other mining activities are to be conducted and with surety or
sureties satisfactory to the Director of Mines. The decision of the
Director of Mines may be appealed within five (5) days from receipt
thereof to the Secretary of Natural Resources, whose decision shall be
final.
SEC. 3. The owner of a titled property within which mineral
development or exploitation is undertaken shall be entitled to at least
one-third (1/3) of the total royalty due the claimowner from the
operator based on the prevailing standard royalty in the area where said
mining operation is being undertaken, or one percent (1%) of the value
of the gross output of minerals therein where there is no prevailing
standard royalty or in any other case where no royalty payment is
involved or has been, arranged: Provided, That such landowner may
choose to receive payment, for any damage caused to his property and
compensation for his land at the prevailing market price or assessed
value, whichever is higher, plus five percent (5%) of the royalty due
the claimowner of the value of gross output of metallic minerals
therein: Provided further, That if the right of the surface owner
to his land is based on incomplete land titles, as homesteads, sales,
leases and other forms of land rights not perfected under the torrens
system, the surface right compensation shall be one-fifth (1/5) of the
total royalty due the claimowner from the operator, or damages and
payment of the land plus three percent (3%) of the royalty due the said
claimowner, or six-tenths of one percent (1%) of the value of gross
output as above stated: Provided, finally, That the rate of
royalty herein set shall apply only in cases of the exploration,
development and exploitation of metallic ores. Metallic ores shall be
those containing metals, such as gold, copper, silver, iron, nickel and
other minerals which the Director of Mines may determine as such by
regulation.
SEC. 4. Government reserved lands for purposes other than
mining shall be open to prospecting by filing an application therefor to
the agency supervising the reserved lands, through the Director of
Mines, subject always to compliance with pertinent laws and rules and
regulations covering such reserved lands: Provided, That such
applications shall be acted upon within thirty (30) days: Provided,
further, That in such cases the compensation due the surface owner
shall accrue equally between the supervising agency and the Bureau of
Mines as part of their Special Funds, to be disbursed for conservation
measures.
SEC. 5. The Director of Mines with the approval of the
Secretary of Natural Resources shall issue the necessary rules and
regulations to implement and put into effect the provisions of this
Decree.
SEC. 6. All provisions of existing decrees, laws, orders,
rules and regulations or parts thereof in conflict or inconsistent
herewith are hereby repealed or modified accordingly.
SEC. 7. This Decree shall take effect immediately.
Done in the City of Manila, this 19th day of July, in the year of
Our Lord, nineteen hundred and seventy-four.
(Sgd.)
FERDINAND E. MARCOS
President of the Philippines
By the President:
(Sgd.)
ALEJANDRO MELCHOR
Executive Secretary
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
