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.

• Number: Presidential Decree No. 512
• Sections: 8

Preamble

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

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.

Section 2

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.

Section 3

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.

Section 4

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.

Section 5

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.

Section 6

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.

Section 7

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