Mining and Local Autonomy

World Magazine ©2000 Advanstar Communications Inc October 2000
Authors: Andy Obregon, Scott Shields, Janet Flinn
Differential GPS Applications at the Morenci Copper Mine
In the past six years, Phelps Dodge has integrated GPS position and navigation functions into all operations at its Morenci copper mine. The resulting increases in efficiency, productivity, and safety have made this investment worthwhile

The present study covers three (3) significant cases on access to justice: (i) criminal case filed against the Marcopper executives pending the Municipal trial Court of Boac, Marinduque; (ii) Civil Case filed against Marcopper by the people of Mogpog, Marinduque at the Regional Trial Court of Marinduque; and, (iii) Administrative case on damage compensation claims filed by the people of Boac through the Marcopper Environmental Guarantee Fund Committee.

This article examines the possibility of overcoming the resource curse
through case studies of the appropriation and use ofmining rents derived from public–private joint ventures in Argentina and Chile in the period 1973–2000.  In particular, it examines how two similar cases of sectoral liberalization resulted in divergent outcomes: the deployment of rent-appropriation strategies around multinational corporations in Argentina and an innovative and productivist approach based on joint ventures with foreign capital in Chile. The article argues that while the liberalization of the sector created similar opportunities for appropriating rents in both countries, the existence of strong civil society pressures in Chile constrained rent-appropriation and waste by
the state, in comparison to the absence of such pressures in Argentina.

Resumo: Neste artigo, abordo o debate sobre a dependência em economias locais de base mineradora, centralizando minha análise em Brumadinho e Mariana (MG). Para tanto, defino os termos do fenômeno conhecido como minério-dependência. Acerca das economias locais de Brumadinho e Mariana, traço o perfil da estrutura de trabalho dos municípios, os empregos formais do setor extrativo mineral e de outros setores, a arrecadação municipal proveniente da mineração, as assimetrias na apropriação da renda mineira e as condições da dependência pela atividade. Analiso retrospectivamente alguns dos efeitos do rompimento da Barragem de Fundão, em Mariana e, enfim, busco considerar efeitos da mineração de extração em larga escala sobre outros setores. Concluo que o desenvolvimento desse tipo de mineração se faz em detrimento de outras atividades, reforçando o ciclo de dependência. Palavras-chave: dependência; mineração; Brumadinho; Mariana.
Abstract: In this article I address the debate on dependence in local mineral-based economies, centering the analysis on Brumadinho and Mariana, Minas Gerais. For that purpose, I define the phenomenon known as mineral dependence. With regard to the local economies of Brumadinho and Mariana, I profile the municipal labor structure, the formal jobs of the mineral extractive sector and other sectors, the municipal tax collection from mining, the asymmetries in mining income and the conditions of dependence in that activity. In addition, I retrospectively analyze some of the effects of the breakage of the Fundão Dam in Mariana. Finally, I consider the large-scale effects of mineral extractivism on other sectors. The article concludes that the development of this type of mining is detrimental to other activities, reinforcing a cycle of dependence.

Continuing opposition to large scale mining should not be viewed as a manifestation of local governments’ indifference towards the country’s economic problems. k should be understood as a legitimate concern about the consequences of resources extraction. The enhancement of local autonomy in the Constitution and the Local Government Code is intended to address national government indifference to the plight of local communities who have had. to bear the social and environmental costs of resource-extraction activities. The present legal framework is designed to ensure that stakeholders learn to balance everyone’s interests. Happily, the Supreme Court is leading the way in achieving this goal by respecting the autonomy of local governments

The Government issued documents that order local officials to abandon their resistance to large-scale mining and suggest administrative sanctions against those who fail to do so. These documents have understandably engendered concern on the part of local governments. They are creating the impression that the government’s di-rectives and threats have a clear legal basis.

In this Note, I evaluate these directives. I will demonstrate that both the Secretary of Justice’s Opinion No. 87, series of 2012, and the Department of Interior and Local Government’s Memorandum Circular No. 2012-181 only state general principles of law but do not examine the legal issues in depth.

President Aquino’s recent policy statements seemed well received by the public. Unfortunately, a closer reading of his Executive Order on Mining suggests that the President has overstepped the boundaries of his office. There is an unfortunate attempt to undermine local autonomy and usurp judicial functions in a single stroke. On both these points Aquino’s policy faces serious constitutional challenges. Local governments and stakeholders should be alert to the legal implications of Executive Order No. 79. The silver lining in this latest development for anti-mining forces is that the Order seems so starkly unconstitutional that it cannot conceivably survive judicial scrutiny. Stakeholders should stand their ground now more than ever.