WHAT YOU NEED TO KNOW ABOUT THE SDMP

A PRIMER ON THE
SOCIAL DEVELOPMENT AND MANAGEMENT PROGRAM (SDMP)

WHAT IS SDMP?

A comprehensive five-year plan of the Contractor/Permit Holder/Lessee authorize to conduct mining and milling operations towards the sustained improvement in the living standards of the host and neighboring communities by creating a responsible, selfreliant and source-based communities capable of developing, implementing, and managing community development programs, pro ects and activities in a manner consistent with the principle of people empowerment!

SDMP
a

tool for the development and implementation of community programs/pro ects/activities in consultation and in partnership with the host and neighboring communities!

WHAT ARE THE LEGAL BASES FOR THE IMPLEMENTATION OF THE SDMP?

#ining Act of $%%&' provides that contractor shall assist in the development of its mining community, the promotion of the general welfare of its inhabitants and the development of science and mining technology( Se%t$o+ ,-). Chapter XIV. DAO No& (/0)1 ")he *evised +mplementing *ules and *egulations of *!A! ,%-.' is on the development of community, mining technology and geosciences( and DAO *1110((, provides for the *ules and *egulations on the +mplementation of the /ocial 0evelopment and #anagement Program "/0#P' for mining pro ects!

Chapter X o Rep!"#$% A%t No& '()* "Philippine

WHAT ARE THE GOALS AND OB2ECTIVES OF THE SDMP?

)o meet the minimum basic needs of the mining communities and enhance human welfare and prevent/reduce social ills( )o optimize the advancement of human resources which includes grassroots development and people empowerment to attain a self-help, self-reliant and self-managed community( )o provide opportunities for a self-sustained livelihood thus decreasing dependency on the benefits derived from the mining companies(

WHAT ARE THE GOALS AND OB2ECTIVES OF THE SDMP?

)o

promote conservation and intellectual use/management of the environment vis1-vis community and mining activities( and )o protect the socio-cultural values and local patterns amidst improved economic condition and human advancement!

WHAT ARE THE CREDITED ACTIVITIES 3NDER THE SDMP?

2stablishment/construction, development and maintenance of infrastructure such as community schools, hospitals, churches, roads, bridges, etc( 2stablishment of livelihood industries including reforestation through usufruct contracts to be issued by the 023* utilizing fruit trees( and 4sing facilities within the mine camp, such as hospitals and schools by members of host and neighboring communities!

HOW DO 4O3 DEFINE 5HOST6 COMM3NIT4 AND 5NEIGHBORING6 COMM3NIT4?

Ho7t

Co88!+$t9 - the people living at the barangay"s' outside the mine camp, where the mining pro ect is located( Ne$:h"or$+: Co88!+$t9 - the people living at the barangay"s', which are ad acent to the host community, areas covered by the mining tenement of the pro ect, areas where mining facilities are located( and immediate areas which will be affected by the mining operations!

WHERE WILL THE F3NDS FOR THE IMPLEMENTATION OF THE SDMP COME FROM?
)he

contractor/Permit Holder/ Lessee shall allot a minimum of one-percent (1%) of the ;$re%t 8$+$+: a+; 8$##$+: %o7t7 annually, of which ninety-percent (90%) shall be appropriated to implement the /0#P and te+0per%e+t (,1<) for the development of mining technology and geosciences, as well as the corresponding manpower training and development!

HOW DO 4O3 DEFINE DIRECT MINING COST AND DIRECT MILLING COST?

D$re%t M$+$+: Co7t7 - refer to e5penditures and e5penses directly incurred in all activities preparatory to and in the actual e5traction of the ore from the earth and transporting it to the mill plant for mineral processing! D$re%t M$##$+: Co7t7 - refer to e5penditures and e5penses directly incurred in the mechanical and physical processing and/or chemical separation of the ore from the waste to produce mar6etable mineral products7 Provided, that for cement plant operations, direct milling costs are limited to e5penditures and e5penses directly incurred from raw materials crushing and grinding up to ground raw meal homogenizing, prior to clin6er manufacturing!

WHO ARE EXEMPTED FROM THE S3BMISSION OF THE SDMP?

Companies

engage in e5ploration activities are e5empted from the submission of the /0#P! This, however, does not prevent su h o!p"nies #ro! "$$o "tin% ert"in portions o# its e&p$or"tion 'ud%et #or o!!unit( deve$op!ent "s " w"( o# pro!otin% " h"r!onious o)e&isten e with the o!!unit(*

WHAT IS A COMM3NIT4 RELATIONS OFFICER (CRO)?

A

C*8 is a company official who will serve as a lin6 between the company and the host and neighboring communities in the implementation of the /0#P! /he/He shall represent the company in dealing with the said communities and shall directly facilitate the addressing of the communities concerns!

WHAT ARE THE D3TIES AND RESPONSIBILITIES OF THE CRO?

Conducts/participates in the /+A/P*A and social analysis( Assesses the needs and opportunities of the community( 9ormulates and develops pro ects/programs/activities in coordination with the host and neighboring communities( Prepares the /0#P in conformity with the /0#P provisions( +mplements programs/pro ects/activities in coordination with the host and neighboring communities(

D3TIES AND RESPONSIBILITIES OF THE CRO?

#onitors and evaluates the implemented programs/pro ects/activities in coordination with the host and neighboring communities as an internal activity( Corrects/revises the pro ects/programs/ activities with the host and neighboring communities to improve said underta6ings( and Presents the /0#P to #:;-C8 and *8 concerned!

WHO WILL PROCESS AND APPROVE THE SDMP?

/0#P

of Contractor/Lessee shall be submitted to #:;-*egional 8ffice for preliminary review and shall be indorsed to the Central 8ffice for final evaluation and approval( and SDMP o the Per8$t Ho#;er 7ha## "e 7!"8$tte;. e=a#!ate; a+; appro=e; "9 the Re:$o+a# O $%e&

WHAT IS AN ANN3AL SDMP?

)his

is the document submitted to the concerned #:;-*egional 8ffice at #ea7t th$rt9 (-1) %a#e+;ar ;a97 pr$or to the "e:$++$+: o e=er9 %a#e+;ar 9ear to e e%t$=e#9 $8p#e8e+t the appro=e; SDMP&

WHO WILL MONITOR AND A3DIT THE SDMP?

)he concerned #:;-*egional 8ffice shall periodically monitor the implementation of the approved /0#P( )he C*8 and representatives from the host and neighboring communities shall conduct regular internal monitoring of the on-going pro ects/programs/activities as per approved /0#P( and )he #:;-Central 8ffice shall conduct an audit of the /0#P based on the monitoring reports of the *egional 8ffice and internal monitoring of the C*8!

WHAT ARE THE PENALTIES FOR THE MINING COMPANIES OPERATING WITHO3T AN APPROVED SDMP?
Contractor/Permit

Holder/Lesse found operating without an approved /0#P shall be liable to7

,7t O e+7e < fine not e5ceeding P&,===!== *+; O e+7e < sufficient ground to suspend mining/milling operations in the areas under contract and a fine not e5ceeding P&,===!==