DAO_2007-12 Flashcards
(23 cards)
What is DAO_2007-12?
The Revised Guidelines Establishing the Fiscal Regime of Financial or Technical Assistance Agreements (FTAA)
refers to each consecutive period of twelve (12) calendar months commencing on January 1 and ending on December 31.
“Calendar Year” or “Year”
refers to a person or an entity from which the FTAA applicant/Contractor has derived, or derives its rights in any part or parts of the Contract Area or area contiguous with the Contract Area by any means, including assignment, option, waiver, or consent to the grant of an agreement in substitution for that person’s or entity’s claim owner-rights.
“Claim owner”
refers to the area of land or body of water covered by the FTAA.
“Contract Area”
refers to a qualified person acting alone or in consortium who is a party to the FTAA.
“Contractor”
refers to the date of written declaration by the Contractor to start commercial operations after the conduct and approval of a Test Run, including Debugging, by the Regional Office concerned.
“Date of Commencement of Commercial Production” or “Commencement of Commercial Production”
refers to a detailed commissioning program undertaken by the Contractor after the Test Run to optimize operating parameters and variables in the processing plant. This activity shall be part of the approved Development Work Program.
“Debugging”
refers to a written notice submitted by the Contractor to the Mines and Geosciences Bureau proclaiming the feasibility of commercial utilization of the minerals identified in the Contract Area by internationally accepted sound mining practices and supported by a Mining Project Feasibility Study and other requirements prescribed in Section 30 of the IRR. This document is filed by the Contractor during the Feasibility Period.
“Declaration of Mining Project Feasibility”
refer to cash operating expenses during a Calendar Year incurred by the Contractor that are directly and reasonably related to and necessary for the Mining Operations in the Contract Area during the Operating Period. Cash expenses allowed for deduction for the purpose of determining the Government Share are given in Clause c of Section 4 of this Order.
“Deductible Expenses”
refers to the actual market value of minerals or mineral products from each mine or mineral land operated as a separate entity, without any deduction for mining, processing, refining, transporting, handling, marketing, or any other expenses.
“Gross Output”
refers to the sum of money paid to a loan creditor over regular periods to defray the principal portion of a Contractor’s loan.
“Loan Principal Amortization”
refers to milling, beneficiation, leaching, smelting, cyanidation, calcination, or upgrading of ores, minerals, rocks, mill tailings, mine wastes, and/or other metallurgical by-products or by similar means to convert the same into marketable products.
“Mineral Processing”
refers to exploration, feasibility, development, utilization, and processing.
“Mining Operation”
refers to a document officially submitted by the Contractor as part of its Declaration of Mining Project Feasibility and subsequently approved by the Mines and Geosciences Bureau. It contains the minimum information on geology and mineral resources, mining, mineral processing, environmental and social management, financing, and related information required under the implementing rules and regulations of the Philippine Mining Act of 1995.
“Mining Project Feasibility Study”
refers to a panel provided under Section 58 of DENR Administrative Order No. 96-40, as amended (Revised Implementing Rules and Regulations of the Philippine Mining Act of 1995), which shall evaluate and negotiate all FTAA applications.
“Negotiating Panel”
refers to the actual cash balance during a Calendar Year after deducting from the Gross Output the allowable deductible cash expenses, Loan Principal Amortization, and Ongoing Capital Expenditures.
“Net Cash Flow”
refers to the Gross Output less Deductible Expenses.
“Net Mining Revenue”
refer to expenses incurred by the Contractor for the purchase of equipment and machineries and the construction of buildings and other infrastructures necessary for the Mining Operations as provided for in the approved Mining Project Feasibility Study.
“Ongoing Capital Expenditures”
refers to the period commencing from the Date of Commencement of Commercial Production in any mining area to the expiry date of the FTAA.
“Operating Period”
refer to all expenditures incurred by the Contractor in and for the benefit of the Contract Area from the date of filing of the FTAA application up to the date prior to commencement of commercial production.
“Pre-Operating Expenses”
refers to a time period allowing the Contractor to recover its Pre-Operating Expenses as provided in Section 7.a hereof.
“Recovery Period”
refers to the payment to claim owners or surface right owners during the transition period from Presidential Decree No. 463 and Executive Order No. 279 to the Mining Act of 1995.
“Special Allowance”
refers to an approved initial commissioning plan conducted by the Contractor under the supervision of the DENR to establish operating parameters and variables and/or to appraise the efficiencies of installed machineries, equipment, and structures, especially those that pertain to pollution control.
“Test Run”
