DENR Issues Rules on Interim Small-Scale Mining Contracts

The Department of Environment and Natural Resources (DENR) has issued Administrative Order No. 2026-08, establishing the framework for the issuance of Interim Small-Scale Mining Contracts (SSMCs) within declared Minahang Bayan areas. The Order is intended to formalize small-scale mining operations, promote the equitable utilization of mineral resources, generate livelihood for local communities, and strengthen the sale of gold for the country’s domestic reserves. All operations must comply with safety, health, environmental, and social standards.

The Order applies to all persons and entities currently engaged in, or intending to undertake, small-scale mining activities within declared Minahang Bayan areas and registered with the Provincial or City Mining Regulatory Board (the Board) pursuant to Section 6 of DENR Administrative Order No. 2022-03. The Board is responsible for the registration and the processing and issuance of Interim SSMCs. The MGB Regional Director may also accept and process applications and issue Interim SSMCs when authorized by the Board to act as its representative.

Applicants must be Filipino citizens, and the area applied for must be located within a declared Minahang Bayan. In the case of an association, cooperative, corporation, or partnership, its representative must register with the Board. Applicants must (1) submit the duly accomplished application form for an SSMC (Form No. SSM-01) and (2) pay the application fee of PHP 10,000. Interested applicants may also submit a Letter of Intent, together with their Work Programs, to avail themselves of an Interim SSMC covering the same area applied for under the regular SSMC application. Interim SSMCs are valid for two (2) years and are non-renewable and non-extendable. Applications for Interim SSMCs will be accepted only within two (2) years from the effectivity of this Order.

The Order also imposes key operational requirements, including: (1) the prohibition against the use of mercury at any stage of mining operations; (2) the prohibition against engaging, employing, or allowing persons below eighteen (18) years old to participate in mining or mineral-processing activities; (3) the mandatory sale of recovered gold solely to the Bangko Sentral ng Pilipinas, with the Board monitoring sales to the BSP or its accredited traders; (4) the exercise of due diligence and the adoption of reasonable measures to protect the safety of small-scale miners and prevent or minimize adverse environmental impacts; and (5) the establishment of environmental and social funds deposited in a government depository bank.

After due process, the Board may cancel an Interim SSMC and deny the corresponding application for a regular SSMC for violation of the terms and conditions of the Interim SSMC, non-implementation of the  approved Work Programs, or non-compliance with any provision of the Order.