MGB expands small-scale mining formalization through Bicol one-stop shop

The Mines and Geosciences Bureau (MGB) has awarded seven Interim Small-Scale Mining Contracts (ISSMCs) in Bicol, a move aimed at bringing more miners into the formal sector and increasing legal gold sales to the Bangko Sentral ng Pilipinas (BSP).

The contracts were issued during the Mobile One-Stop Shop (MOSS) for the Small-Scale Mining Sector held on May 20–21 at the Camarines Norte State College.

Under Department Administrative Order No. 2026-08, miners who secure an ISSMC are given two years to complete the requirements needed for a full small-scale mining contract. The arrangement allows them to operate legally while working toward full compliance.

Among the recipients was the Sta. Barbara Small-Scale Miners Association, which has around 300 members. Other beneficiaries included the Magkamatao Small Scale Miners Association, Barkada’s Small-Scale Mining Association, Samahan ng Mga Minero sa Barangay Tawig, Green-Gold Small Scale Miners Association, and Terranova 78 Inc., which signed a contract to operate within a Minahang Bayan area in Masbate.

For small-scale miners, obtaining a contract provides a legal pathway to sell gold directly to the BSP.

According to Tomas Cariño, director of the BSP South Luzon Regional Office, miners operating under a small-scale mining contract within Minahang Bayan are required to sell their gold to the central bank. He noted that BSP purchases gold at prices linked to the international market and that the transactions are tax-free.

“MOSS is a major milestone for the MGB because it relaxes the requirements for issuing Small-Scale Mining contracts. Operating without a contract is a major barrier to selling gold to the BSP,” Cariño said.

He added that selling gold through official channels benefits the country more than informal trading.

“He explained that it is far better to sell gold to the government or the BSP rather than the black market, because they bring it outside the country. In contrast, selling to the government ensures it becomes part of the nation’s gross international reserves.”

Cariño also disclosed that the BSP is conducting a feasibility study on establishing a gold-buying station in Camarines Norte. While the study is ongoing, miners may continue selling gold through accredited BSP partners.

The MOSS attracted more than 700 miners and brought together several government agencies, including the BSP, Department of Labor and Employment, Cooperative Development Authority, and Land Bank of the Philippines.

The initiative forms part of broader government efforts to streamline regulatory processes and encourage the formalization of small-scale mining operations.

“We are here to speed the processes and ensure proper environmental protection. We recognize your contribution to our economy, that is why we brought our services closer to you,” said DENR Assistant Secretary for Mining Concerns Michael Cabalda.

Cabalda said the government is working to simplify the application process for small-scale mining contracts and improve access to government services in mining communities.

The MGB said the MOSS initiative supports the implementation of the government’s policy to promote responsible, regulated, and sustainable small-scale mining while bringing more operators into the formal economy.

As the government seeks to formalize more mining operations, can streamlined permitting and direct access to government services help encourage more small-scale miners to operate legally?

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