An Act to Authorize the Director of Mines to Enter into an Operating Contract, with the Approval of the Secretary of Agriculture and Natural Resources, with Private Enterprise for the Development, Exploration, Processing and Disposition of the Minerals in the Government Mineral Reservation at the Municipalities of Masinloc and Candelaria, Province of Zambales, and for Other Purposes

REPUBLIC ACT No. 2313

An Act to Authorize the Director of Mines to Enter into an Operating Contract, with the Approval of the Secretary of Agriculture and Natural Resources, with Private Enterprise for the Development, Exploration, Processing and Disposition of the Minerals in the Government Mineral Reservation at the Municipalities of Masinloc and Candelaria, Province of Zambales, and for Other Purposes

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1. Recognizing the importance to the national economy of the immediate development, exploration, utilization, processing and disposition by private enterprise of the mineral deposits in the Zambales Mineral Reservations, it is hereby declared to be the policy of the Government to engage private enterprise in the development, exploration, processing and disposition of the minerals therefrom.

Section 2. The Director of Mines is hereby authorized to enter into an operating contract, through public bidding, with any qualified, competent and responsible domestic party or parties possessing all the qualifications under section three hereof, for the development and operation of the government chromite reservations described and known as Parcel of Land numbers one, two and three thereof, set aside as such by Proclamation Numbered Three hundred thirteen dated April twenty-four, nineteen hundred and thirty of the then Governor General of the Philippine Islands, such contract to be executed by the Director of Mines with the approval of the Secretary of Agriculture and Natural Resources.

Section 3. No private enterprise can be a party to the operating contract, referred to in section two hereof, unless he/it possesses, at the time of the bid and award, all of the following qualifications, namely, that such party:

Section 4. At least sixty (60) days before the scheduled date for the opening of the sealed bids, the Director of Mines shall publish once a week for three consecutive weeks in two newspapers of general circulation the call and terms for the bid. The Director of Mines, with the approval of the Secretary of Agriculture and Natural Resources, is hereby authorized to stipulate such terms and conditions as he may see fit in the call for bids, which shall constitute the basis of the operating contract to be executed with the awardee, in addition to the following:

The Committee on Award shall be composed of three members, namely, the Director of Mines, as chairman, one representative of the Secretary of Agriculture and Natural Resources and another representative of the Secretary of Justice, a members. The award shall be made within ten (10) days from the date of the opening of the sealed bids to the bidder best qualified to develop and operate successfully the Zambales Mineral Reservations in point of organization, finances, resources, experience and technical competence as set forth herein and offering the best terms and conditions in favor of the Government and the corresponding operating contract shall be executed immediately thereafter.

Section 5. The Director of Mines shall have the power and authority to represent the Government in such operation and to ensure compliance with the terms and conditions of the operating contract, and for this purpose, he is hereby authorized to set aside five percent (5%) of the royalties or participation received by the Government under the contract to cover necessary expenses of his office in connection therewith.

Section 6. All laws and regulations inconsistent with the provisions of this Act are hereby accordingly amended or repealed.

Section 7. This Act shall take effect upon its approval.

Approved: June 19, 1959.