Table 3 - Types Of Mining Rights Granted Under The Mining Act of the Philippines

TYPE OF MINING RIGHT	MAXIMUM AREA (hectares)	TERM	QUALIFIED PERSON
Exploration Permit	32,000 onshore 81,000 offshore	2 years; renewable to a maximum of 8 years	Individuals or Filipino or foreign corporations
Mineral Production Sharing Agreement	16,200 onshore 40,500 offshore	25 years; renewable for like period	Individuals or Filipino corporations
Financial or Technical Assistance Agreement	81,000 onshore 324,000 offshore	25 years; renewable for like period	Filipino or foreign corporations

One of the major features of the Mining Act is the annual mandatory relinquishment of areas granted to the contractor. After the exploration stage, the Philippine Government only allows a final mining area of only 5,000 hectares for metals and 1,000 hectares for non-metals. One of the major features of the Mining Act is the annual mandatory relinquishment of areas granted to the contractor. After the exploration stage, the Philippine Government only allows a final mining area of only 5,000 hectares for metals and 1,000 hectares for non-metals.

3. Environmental Responsibilities under the Act and its revised IRR.

Table 4 - Environmental Provisions Of The Mining Act

Environmental Work Program	At least 10% of the estimated exploration cost.
Initial expenditures for environmental infrastructures	At least 10% of the estimated project development cost.
Mine Rehabilitation Fund (i) Rehabilitation Cash Fund (ii)Monitoring Trust Fund	3% to 5% of annual direct mining and milling costs or PhP5 million, whichever is lower; utilized to implement the progressive rehabilitation measures defined in the Environmental Protection and Enhancement Program. Replenishable amount of PhP50,000; utilized by the Multi-partite Monitoring Team with LGU, NGO, IP, company & govt representative as members.
Environmental Trust Fund	Replenishable amount of at least PhP50,000; utilized for compensation for damages outside of those caused by mine waste and tailings.
Mine Waste and Tailings Reserve Fund   Polluter Pays Principle	Amount collected for every ton of mine waste and tailings equivalent to PhP0.05 and PhP0.10, respectively; utilized for compensation for damages as a result of mine waste and mill tailings. P50/MT of materials disposed in unauthorized areas.
Final Mine Rehabilitation/ Decommissioning Plan (FMRDP)	Cost variable but must include an environmental plan and a social plan plus the cost of a ten year