December 18, 2000

MGB MEMORANDUM CIRCULAR NO. 2000-38

Subject : Guidelines in the Denial of Mining Applications pursuant to DENR

Memorandum Orders No. 99-10 and 2000-03

To effect a consistent implementation of DENR Memorandum Order (DMO) Nos.

99-10 and 2000-03 in the Central Office and Regional Offices of the Mines and
Geosciences Bureau (MGB), the following guidelines are hereby promulgated for the
denial of mining applications that have failed to comply with the requirements set forth
in the abovestated Orders:

Section 1. Scope

This Memorandum Circular shall cover the following:

a. Mining applications in which the mining applicants concerned are corporations,

associations, partnerships or cooperatives that have failed to submit the
requirements provided for in Section 2 of DMO No. 2000-03 and
b. Mining applications involved in which the mining applicants concerned have been
determined to be one and the same Qualified Person pursuant to Section 4 of
DMO No. 99-10, and have been exceeded the maximum area that may be
applied for or held under an Exploration Permit (EP), Mineral Agreement (MA)
and/or Financial or Technical Assistance Agreement (FTAA).

Mining applications involved in a dispute/case shall not be covered by this Circular

but shall have a period of six (6) months after final resolution of said dispute/case to
comply with the Transitory Provision of DMO No. 99-10.

Section 2. Grounds for the Denial of Mining Applications

The following mining applications shall be denied, after due process, by the Central
Office for Mineral Reservations areas or concerned Regional Office for non-Mineral
Reservation areas:

a. Mining applications in which the mining applicants concerned have failed to

submit on or before 07 August 2000 any one of the following documents:

1. Securities and Exchange Commission (SEC)/Cooperative Development

Authority (CDA) – certified copy of approved Articles of
Incorporation/Cooperation showing a minimum authorized capital stock of
PhP 10 Million and minimum paid-up of PhP 2.5 Million: Provided, That in
case of a mining applicant who has filed the necessary application for
increase in capitalization at the SEC/CDA on or before 07 August 2000 but
has not secured the necessary approval on or before that same date, a
Certification by the SEC/CDA attesting that such application was filed on or
before 07 August 2000 and that all supporting documents have been complied
with;
 2. Curriculum vitae and track records in mining operation and environmental
management of the technical personnel who shall undertake the activities in
the submitted Work Program/s; and
3. Affidavit as per Annex A of DMO No. 99-10.

b. The mining application of a mining applicant who has complied with the
abovestated requirements but has exceeded the maximum area that may be
applied for or held under an EP, MA or FTAA shall likewise be subject to
denial/rejection. For this purpose, the mining application that was filed later by
the mining applicant that resulted in exceeding the maximum area that may be
applied for shall have the first order of priority for denial/rejection by the Central
Office/concerned Regional Office.

Section 3. Procedure for the Denial of Mining Applications

After thoroughly determining that there is/are ground(s) for denial of the mining
application pursuant to Section 2 hereof, the Central Office/concerned Regional Office
shall issue the Order of Denial duly signed by the Director/concerned Regional Director
and the pertinent Notice of Issuance of the Order, and sent to the mining applicant
through Registered Mail.

The Central Office/concerned Regional Office is enjoined to post the Order

immediately upon issuance on its Bulletin Boards for two (2) consecutive weeks.

The Order of Denial shall be in accordance with the proforma Order of Denial as
shown in Annex A.

The concerned mining applicant may file its Motion for reconsideration with the
Central Office for Mineral Reservation areas or concerned Regional Office for non-
Mineral Reservation areas, or appeal with the DENR Secretary for Mineral Reservation
areas or with the MGB Director for non-Mineral Reservation Areas, within fifteen (15)
days upon receipt of the Order of Denial.

Areas covered by the mining application of which is subject of an Order of Denial

shall be open to other mining applications if no Motion for reconsideration or Appeal is
filed within fifteen (15) days upon receipt by the mining applicant of the pertinent Order
of Denial.

Section 4. Effectivity

This Memorandum Circular shall take effect immediately.

(Sgd.) HORACIO C. RAMOS

Director