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The Mining Laws: Introduction


In my series Mining Saga, I have ended Part 4 with a promise to cover the topic of mining laws. As there are a lot of global mining laws, let me first tackle some introductory stuff.

So Mining Law is the branch of law that relates to legal requirements and guidelines affecting minerals and mining. The topics ranges from the ownership of the mineral, who can extract and work them, the health and safety of miners and its environmental impact.

Ownership is an aspect of property law that involves ownership and tenancy in real property and personal property. Real property corresponds to real estate and the associated rights and obligations that goes along with it. So the question that relates to mining is “who” owns minerals legally extracted from the earth. The answer to the “who” question depends on the type of mineral, the mining history that governs the locality and the legal tradition and how the sovereign deals with property ownership. Usually the government retains the rights to the mining of gold because they are traditionally used as the society’s currency.

And important scope under property laws governing mineral extraction, there also exists the matter of subsidence. Subsidence being the motion of a surface as it shifts downward. The opposite of subsidence is uplift which is the result of an increase in elevation. Mining-induced subsidence is predictable in its magnitude, manifestation and extent and is localized the surface above the mined area. Mining activity that is meticulously planned will result to successful management especially when the stakeholders are in full cooperation. It is accomplished by a combination of perfecting the preventive measures and carrying out repairs post-mining. The issue of support rights will determine the legal rights and relationship between parties in such a situation.

Now we go to the German-speaking countries. Their mining laws originated from the medieval common law such as German kings claiming mining rights over that of local lords. Bergordnungen or mining regulations over Bergregal (historic right of ownership of untapped mineral resources in German-speaking Europe. Ownership of such Bergregal meant owning the rights and royalties from mining.

In the recent times, Germany is governed by the Basic Law which subjects mining to concurrent legislation. The legal standard is the Federal Mining Act. Austria is governed by the Mineral Raw Material Act. Switzerland is governed by cantonal business law. While in Liechtenstein is restrictive when it comes to its mining, the Liechtenstein Property Act, with just a few minerals such as metallic ores, fossil fuels and related materials.

In Great Britain the principle of mining by landowners prevails and the Crown only reserves their right over gold and silver reserves. In cases of divided land ownership, compensation is given in the form of lease, dead rent or royalty.

In the United States, they follow the English common law. The landowner owns the raw materials up to whatever depth but the state owns the rights over phosphate, nitrate, potassium, salts, asphalt, coal, oil shale and sulphur and a right of appropriation by the state for oil and gas.

In the Philippines, the governing law is Republic Act No. 7942 otherwise known as the “Philippine Mining Act of 1995”. Please stay “tuned” to this blog series to know more about RA 7942.

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