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Mine Development

The document discusses developing a shared agenda for mining development in the Philippines. It aims to understand perceptions of key stakeholders to identify issues, opportunities, and risks of mining. It conducted interviews and focus groups with stakeholders to analyze mining's history and current challenges to form recommendations for responsible mining.

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0% found this document useful (0 votes)
453 views192 pages

Mine Development

The document discusses developing a shared agenda for mining development in the Philippines. It aims to understand perceptions of key stakeholders to identify issues, opportunities, and risks of mining. It conducted interviews and focus groups with stakeholders to analyze mining's history and current challenges to form recommendations for responsible mining.

Uploaded by

Geno Fernandez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Developing a Shared Agenda for

Mining Development in the


Philippines
Researcher:
University/Institution:

Key theme:
Key country:
Completion:

Nimfa L. Bracamonte
MSU-Iligan Institute of Technology,
the Philippines

Community and Environmental Sustainability


The Philippines
June 2015

Research aims:
The aim of this research is to understand the perceptions and concerns of
key mining development stakeholders in the Philippines in order to
develop a shared agenda for responsible mining. The specific objectives
are to:
provide a brief history of mining in the country
determine the issues and concerns surrounding the positions of
stakeholders
analyse the opportunities/benefits and risks/negative impacts for
mineral extraction
identify the requirements of a shared agenda for responsible mining
development
For further information on this action research:
Contact person:
Nimfa L. Bracamonte
nimfabutuan@[Link]

Summary of Action Research Activity


Developing a shared agenda for mining development in the Philippines
The Philippines is among the most mineral-rich countries in the world, with large quantities of mineral
resources such as gold, copper, chromite, iron, nickel, chromite, bauxite, marble, and limestone. Despite
this, there is concern over the insignificant contribution of mining to the national economy. Mining
production accounts for only about 1.5 percent of GDP and mineral exports have averaged 3.7 percent
of total exports since 2007 The mining sectors low contribution to government revenue is partly due to
the mining sector comprising mostly small-scale mines, older mines in their twilight years, and a few
new mines that are enjoying tax breaks.
Innumerable persisting issues continue to surround mining development in the Philippines. Why do
resource-rich communities remain as poor as ever? How can it be ensured that minerals are tapped and
utilized in a safe and sustainable manner? How should environmental degradation and repeated
occurrence of disasters be reduced? There are reports of polluted air, contaminated rivers, destroyed
mangrove forests, weakened slopes, ravaged corals, ruined agriculture, endangered biodiversity, as well
as damaged indigenous and local cultures. Considering that there are various environmental, technical,
economic and sociocultural issues, it is a continuing challenge as to how to harmonize efforts towards
responsible mining anchored in science and technology.
This status review sought to present in a concise form a critical overview of the key facets related to
mining development such as critical environmental, social, political and technical aspects, including a
brief history of mining in the Philippines in the post-colonial era, to help understand the resistance to
current mining development. Information was generated from roundtable discussions, focus group
discussions, key informant interviews and a desktop review.
Preliminary recommendations are articulated in the Executive Summary.

International Mining for Development Centre Action Research Report

MSU-Iligan Institute
of Technology

Status Review and Foundation Stakeholders


Interviews: A Report

DEVELOPING A SHARED AGENDA FOR


MINING DEVELOPMENT IN THE PHILIPPINES

Submitted to:
International Mining for Development Centre (IM4DC)
Sustainable Minerals Institute (SMI)
University of Queensland
Brisbane, Australia

by
Nimfa L. Bracamonte
MSU-Iligan Institute of Technology
Iligan City, Philippines
June 2015

Research Team:
Researcher/Writer/Lead Facilitator:

Nimfa L. Bracamonte

Admin/Coordinator:

Teresita Ignacio

FGD Davao Facilitators/Documentors:

Amabelle A. Embornas, Angie V. Mag-aso,


Marie Phyllis Teanco, Jonathan Tiongson

FGD Manila Facilitators/Documentors:

Angie Mag-aso, Marie Phyllis Teanco,


Jonathan Tiongson

TVI, Siocon Field Researchers:

Amabelle A. Embornas & Angie V. Mag-aso

Review of Related Literatures:

Connie Fern Miranda, Eliza Santander &


Gretchen Ferrer

Report Editing and Packaging:

Arnold P. Alamon & Jessyl M. Espinol

Acknowledgement:

Consortium of Universities: UQ SMI, UP-NEC,


USEP, MSU-IIT

Developing a Shared Agenda for Mining Development in the Philippines

Contents
EXECUTIVE SUMMARY ........................................................................................................................ 3
SECTION A. INTRODUCTION .............................................................................................................. 6
Objectives of the Status Review and Foundation Stakeholder Interviews: .................................. 8
Methodology ......................................................................................................................................... 9
Framework of Analysis ...................................................................................................................... 10
SECTION B. BRIEF HISTORY OF MINING IN THE PHILIPPINES ............................................... 16
SECTION C. REVIEW OF RELATED LITERATURES ON MINING IN THE PHILIPPINES: A
BRIEF SUMMARY ................................................................................................................................. 24
SECTION D. FOCUS GROUP DISCUSSION (FGD) OUTPUTS AMONG STAKEHOLDERS
(2013 2014, Manila & Davao) ........................................................................................................... 29
D.1. FGD Outputs (Shangrila, Manila conducted on April 3-5, 2013) ......................................... 29
D.2. FGD Outputs in Davao and Manila (June 2014 and September 2014) .............................. 36
D.3. FGD Outputs in UP-National Engineering Center, Diliman .................................................. 39
September 16, 2014 .......................................................................................................................... 39
D.4. FGD Outputs with Mining Executives, September 16,2014 ................................................. 40
SECTION E. KEY INFORMANT INTERVIEWS AMONG SELECTED GOVERNMENT
OFFICIALS AND OTHER SECTORS ................................................................................................. 44
SECTION F. ANALYSIS/SYNTHESIS AND RECOMMENDATIONS ............................................. 50
REFERENCES ....................................................................................................................................... 57
APPENDIX 1A. Review of Related Literatures on Mining in the Philippines ................................. 61
APPENDIX 1B. OUTPUTS OF KEY INFORMANT INTERVIEWS WITH SELECTED
GOVERNMENT OFFICIALS .............................................................................................................. 105
APPENDIX 2. FGD Participants Profile and Highlights of Proceedings in Davao and Manila . 110
2.1.

FGD Participants Profile in Davao, Proceedings, and Photo Documentation ............. 110

2.2.

FGD Participants Profile in Manila, Proceedings, and Photo Documentation ............. 139

2.3.

Photo documentation of Key Informant Interviews .......................................................... 153

APPENDIX 3A. Mini-Case Study of TVI Mining Company (Decommisioned) in Siocon,


Zamboanga del Norte, Southern Philippines .................................................................................... 155
APPENDIX 3B. Profile of Key Informant Interviews in Siocon, Zamboanga del Norte
(Decommissioned TVI Company) ...................................................................................................... 169
APPENDIX 3C. Photo Documentation of the Field Research ....................................................... 173
APPENDIX 4. Mining Maps in the Philippines ................................................................................. 180
TABLE 1. NUMBER OF PARTICIPANTS BY RESEARCH TOOL EMPLOYED, 2013-2014 ...................................................................... 9
TABLE 2. POSITION OF CORE AND CRITICAL STAKEHOLDERS RELATED TO DIVERGENT INTERESTS, ROLES/ FUNCTIONS AND CONVERGENT
AGENDA IN MINING DEVELOPMENT ........................................................................................................................ 16
TABLE 3. SUGGESTED MECHANISMS/STRATEGIES TO ACHIEVE THE SHARED PRACTICAL VISION, APRIL 3-5, 2014, SHANGRILA, HOTEL,
MANILA ........................................................................................................................................................... 30
TABLE 4. SUMMARY TABLE OF THE SOCIAL DIMENSION OUTPUT, APRIL 3-5, 2014, SHANGRILA, HOTEL, MANILA ............................ 33
TABLE 5. FGD OUTPUTS ON RESPONSIBLE MINING ISSUES AND CONCERNS, JUNE 23, 2014 ....................................................... 36
TABLE 6. FGD OUTPUTS ON RESPONSIBLE MINING ISSUES AND CONCERNS, JUNE 24, 2014 ....................................................... 38
TABLE 7. SUMMARY OF ISSUES AND CONCERNS FROM THE FOCUS GROUP DISCUSSIONS (MANILA AND DAVAO) ............................... 41

Developing a Shared Agenda for Mining Development in the Philippines

TABLE 8. MINING-RELATED ISSUES AND CONCERNS FROM KEY INFORMANTS AMONG SELECTED GOVT. .......................................... 44
TABLE 9. ENVIRONMENTAL ISSUES (POSITIVE AND NEGATIVE) RELATED TO TVI IN SIOCON, MAY 21-22, 2014 ............................... 46
TABLE 10. SOCIOECONOMIC ISSUES (POSITIVE AND NEGATIVE) RELATED TO TVI, SIOCON, MAY 21-22, 2014 ................................. 47
TABLE 11. CULTURAL ISSUES RELATED TO TVI IN SIOCON, MAY 21-22, 2014 .......................................................................... 49
FIGURE 1. ANALYTICAL FRAMEWORK ............................................................................................................................... 15
FIGURE 2. PROBLEM TREE SHOWING THE POLITICAL AND ECONOMIC CAUSES AND EFFECTS OF MINING ................ 34

Developing a Shared Agenda for Mining Development in the Philippines

EXECUTIVE SUMMARY
This report entitled Developing a Shared Agenda for Mining Development in the Philippines is
aimed at investigating approaches for bridging technical information related to mining with the
social context and in doing so gaining an understanding of the perceptions and concerns of key
mining development stakeholders. In particular, this work analyzes the potential opportunities
and benefits with the risks or negative impacts in mineral resource extraction, and attempts to
identify a shared agenda towards responsible mining in the country. Data were generated from
the roundtable discussions, focus group discussions, key informant interviews (over 130), and
review of secondary data (desktop status review). Entry protocols and securing the informed
consent of the participants were observed.
Based on geological survey information from the Mines and Geosciences Bureau, the
Philippines has the fifth richest mineral deposits in the world, which equates to about a trillion
dollars on current metal prices. This provides the potential to develop a strong economy from
extracting metallic ore reserves. As the Philippines is considered to be one of the key global
biodiversity hotspots, it is a continuing challenge for the mineral industry to develop and
maintain the balance between risks and opportunities while harmonizing ecological integrity with
social responsibility and authentic economic development for the benefit of government and the
multi-sectorial constituents.
There are a myriad of continuing mining issues that affect mining development in the
Philippines. These issues include ecological, economic, political, and cultural problems,
particularly those affecting indigenous peoples, which commenced during the colonial period
and remains until today. In many instances, indigenous peoples territories have been displaced,
with their territorial and cultural rights undermined. Often poor communities remain in mining
areas which is antithetical to the expected economic gains from the mining industry. Mining in
the Philippines is aptly captured by following quote: The Philippine mining industry has
historically been liberalized, laid open to foreign and private control without developing
downstream industries, and limited to extraction, export ores, and dependence of foreign
capital, expertise and technology (The Center for Environmental Concerns-Philippines: n.d.:3).

Diverging Interests and Continuing Challenges


Stakeholder viewpoints may differ on the strategy and nature in carrying out sustainable
resource extraction. The so-called core stakeholders comprise:

the community of indigenous peoples (IPs) and non-IPs who are for sustainable
extraction of resources for the benefit of the communitys interest and collective
determination through strong and independent peoples organizations;
the mining companies that are driven by their profit motivation taking into account
issues of sustainability and equity;
the small-scale miners who declare mining as their source of livelihood and profit
motivation taking into account issues of sustainability and equity; and
the State/local government units (LGUs) who are stewards of national and other
community interests.

On the other hand, the critical stakeholders are represented by:

the civil society organizations that are known to be stewards of national and other
community interests and
academia that is also prominent stewards of national and other community interests
through science and technology.

The related studies/literature and stakeholder interviews document the unfavorable effects of
mining and reveal a key issue: the lack of political will to enforce laws/policies for mining

Developing a Shared Agenda for Mining Development in the Philippines

development. The negative perceptions of mining from civil society and academia in taking a
critical position are to the dismay of the mining companies, and the lukewarm attitude of the
government affects the issues related to benefit sharing and taxation. This affects policy
governance, as well as environmental aspects that can be exemplified by the small-scale
miners. The small-scale level of extraction may result in lower revenues to the government and
inefficient extraction causing more environmental damage, which is not subjected to the
rigorous standard measures.
An emerging pattern identified by this research is the greater need of transparency and
accountability in the way mining companies handle their monitoring and evaluation of the
environmental impacts. In addition, the implementation of community development programs
need proper accountability as the community often believes it does not receive the appropriate
economic returns because they consider the local government take is too high. There was a
unanimous view from the community stakeholders that local government was not operating in
the best interests of the local community. The issue of governance is a critical point and remains
a great challenge that urgently needs attention.
The essence of intergenerational equity, that is in bequeathing to the next generation the
resources of today, is most striking. One has to wrestle with innumerable problems that can be
created by mining. For example, the exhaustion of resources, impacts to the environment,
conflict and control in the uplands, presence of para-military groups, killings and extortions, and
the like. In these cases, values such as transparency, participation, inter-generational equity
would only be rhetoric. However, there are significant developments in legislation that address
Indigenous Peoples rights and the regulation of extractive industries, although there is much
room for improvement in terms of alignment and harmonization.

Moreover, the stakeholder theory remains challenging, as there is no uniform feature for all the
multi-stakeholders. A stakeholder may occupy two or more positions at the same time.
Convergence and Possible Shared Agenda for Mining and Development: Fair and equitable
share/benefits from resources extracted
Cognizant of the converging points for all stakeholders to gain fair and equitable share/benefits
in mineral resource extraction, there is an emerging consensus to have a responsible and
functional legal/institutional framework for mining and development, a trans-generational and
empowered community, equitable sharing of responsibilities and improved returns, a clean and
healthy ecosystem, and collaborative research and education among stakeholders and
international partners to unite the multi-stakeholders to a shared agenda for mining. The way to
operationalize this may be to go through a rigorous process of discourses and debates. It is
imperative for all to participate in pursuing this and not leave it to governmental bureaucracy.
After all, there are many and varied stakeholders and it is the role of academia to produce
sound research to support the science and supporting technology outcomes. ..
The possible key to resolving the potential conflicts emanating from these complex dynamics is
the forging of a strong unity towards a collective agenda and agreement to respect divergent
interests of the various stakeholders under a common framework that makes resource
extraction beneficial to all. The collective agenda can be shared and serve as a starting point for
collaborative undertakings. This is possible when two or more stakeholders work as one to a
mutually agreed-upon goal and equitable returns. Engaging all stakeholders is essential in
obtaining genuine community informed consent and meaningful engagements in conflict
transformation, policy formulation/implementation and development interventions.
Communities where resources are extracted can have a say on their use and disposition based
on their interests and concerns. This process of taking back the economy, necessitates a
political process where the once marginalized voices now are recognized. It is in thinking
together about our working lives, our collective efforts, the places in which we encounter others,
the commons we constitute through our care, and the future we collectively invest in that will
allow us to build an economy worth living in with one another (Gibson Graham, J. K. et al.,
2013: 192).
The strong message is that for sustainable development to be operational, it is crucial to
harmonize and integrate the concerns for a sound and viable economy, sensitivity to

Developing a Shared Agenda for Mining Development in the Philippines

sociocultural dimensions, and ecological integrity in an atmosphere of democratic consultation,


responsibility, and transparency. In this light, we can invoke economic and ecological
integration seeing economic development and responsible stewardship of the environment not
as incompatible goals, but as mutually reinforcing objectives towards sustainable development.
It is only when both aims are jointly served that the ultimate goals of development are attained.
For this recognizes that the natural, financial, social and human capitals are being advanced for
inclusive growth where there is synergy of efforts of the various stakeholders to recognize the
risks and opportunities in mineral resource extraction.
Based on the stakeholders consultations, the recommendations of the study are as follows:
1. Push for a Responsible and Functional Legal and Institutional Framework for
Mining. This necessitates a strong political will to formulate a participatory framework for
mining and development in the country based on a plan that considers national
industrialization and legislative reforms of the mining fiscal regimes. Among others, this
requires the creation of credible and functional institutions that can be the intellectual
lead bodies for the mineral industry development of the country. Forging a consortium of
stakeholders for monitoring and evaluation is also imperative to the development of
mining in environmentally-critical areas that are key biodiversity areas, food producing
regions, and geo-hazard and disaster-prone areas.
2. Create a transgenerational and empowered community. This is a community that
benefits from the collaboration of all empowered and enlightened stakeholders. Transgenerational and sustainable mining communities must protect and respect cultural
heritage and develop a comprehensive and progressive capacity building program. For
instance, trainings on free prior informed consent (FPIC), leadership and financial
management, proposal making, watershed management, disaster risk reduction and
management, and others can be organized for the needy communities. Signing up to the
Extractive Industry Transparency Initiative (EITI) for mining companies to publish details
of all payments, taxes and royalties ensures knowledge empowerment of local
communities must also be considered.
3. Promote equitable sharing of responsibilities and improved returns. Equitable
sharing of resources must aim at developing value adding activities and downstream
industries, which will also generate employment. Incentives for local entrepreneurs to
engage in mining should be encouraged, as well as domestic capitalization to integrate
agrarian reform and agricultural production in mineral development.
4. Foster a clean and healthy environment. A healthy and responsible community must
have an environment where there is clean water and air. This must also include the
dissemination of ecologically sound mining practices.
5. Undertake collaborative research and education among stakeholders and
international partners to unite the multi-stakeholders to a shared agenda for
mining. The various stakeholders should be involved in mining development in order to
ensure the equitable distribution of its gains and secure the protection of the
environment. Academics can play a role through the following activities:
Establishing a research collaboration of academia, local government unit (LGU),
and industry
Establishing a collaborative monitoring and evaluation team among stakeholders
for Information, Education and Communication (IEC) and policy brief formulation
Conducting participatory action research employing two mining companies (one
in Mindanao and one in Visayas) to provide a more comprehensive empirical
base to assess the impact of mining through gender and cultural lens and
empower the local community with capability enhancement training sessions
based on identified prioritized community needs.
Strengthening linkages and networks with international and national partner
institutions on mining and development

Developing a Shared Agenda for Mining Development in the Philippines

Status Review and Foundation Stakeholder Interviews: A Report


DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE
PHILIPPINES
This report on Developing a Shared Agenda for Mining Development in the Philippines
covering the status review and foundation stakeholder interviews on mining is presented in the
following sections:
Section A. Introduction: Objectives, Methodology, Framework of Analysis
Section B. Brief History of Mining in the Philippines
Section C. Review of Related Literatures on Mining in the Philippines: A Brief Summary
Section D. FGD Outputs among Stakeholders in Manila and Davao (2013-2014)
Section E. Key Informant Interviews among Selected Government Officials and Other
Sectors (2014)
Section F. Analysis/Synthesis and Recommendations

SECTION A. INTRODUCTION
Is there such a thing as responsible mining or sustainable development in mining? Is this
possible in the Philippines? What are our scientific bases for declaring there exist responsibility,
intergenerational equity, transparency, and democratic participation of the multi-stakeholders?
When do we say that the mining benefits are equally distributed? Can the conflict and
disharmony dealing with natural resource extraction be addressed to bring about peace and
development to the country? How can mineral resource extraction be a driver of meaningful
economic development? Is it possible to carry out mining with a conscience? What is the
future of mineral industry in the Philippines? These are just some of the important social
questions that must be answered by the Filipino people as they deal with benefits/opportunities
and disadvantages/risks of mineral extraction in the resource-rich country.
The Philippines is among the most mineral-rich country in the world with large quantities of
mineral resources such as gold, copper, chromite, iron, nickel, chromite, bauxite, marble, and
limestone. The country reportedly ranks second to South Africa in gold production per one
square kilometer, ranks third in copper, and sixth in chromite reserves (Tujan and Guzman,
2002).
As of March 29, 2011, the government approved 785 mining agreements, including six Financial
and Technical Assistance Agreements (FTAA), 339 Mineral Production and
Sharing
Agreements (MPSAs), 115 Exploration Permits (EP), 57 Mineral Processing and Production
Permits, 212 Industrial Sand and Gravel Permits, and 56 lease contracts. These cover
1,042,531 hectares or 3% of the countrys total land area. The Philippines has around 7.1 billion
metric tons (BMT) of metallic mineral reserves such as gold and nickel and 51 BMT of nonmetallic deposits. Their total value is estimated to be $840 billion to $1 trillion. This is
approximately ten times the countrys gross domestic product and larger than its entire external
debt (A Primer on the Peoples Mining Bill, n.d.). Mindanao, the southern part of the country,
prominently hosts more than half of the countrys mineral wealth. The Mines and Geosciences
Bureau (MGB) declared that as of April 2013, of the 397 mining contracts and permits issued by
the government, 123 or 31 percent are situated in Mindanao and of the 38 operating metallic
mines of the country, 20 or 53 percent are located here as of May 2013. Five of the major
mining projects in the making are, namely: the Tampakan copper-gold project, the BoyonganBayugo copper-gold project of a group led by Philex Mining Corporation in Surigao del Norte,
and the Kingking copper-gold project of Nationwide Development Corporation in Compostela
Valley. Reports indicate that Mindanao has approximately half of the $1 trillion worth of mineral
resources of the country.

Developing a Shared Agenda for Mining Development in the Philippines

Despite these facts, there is concern over the insignificant contribution of mining to the national
economy. Mining production accounts for only about 1.5 percent of GDP and mineral exports
have averaged 3.7 percent of total exports since 2007 (IMF Country Report in 2012). According
to the same report, the mining sectors low contribution to government revenue is partly due to
the mining sector comprising mostly [of] small-scale mines (with about 34% of total mining
production) do not pay a lot of tax, older mines that are in their twilight years, and a few new
mines that are enjoying tax holidays. Note that at present 5% is imposed as mineral royalty and
2% excise tax on mineral production (Ibid).
The same report noted that many local governments issue permits for small-scale mines and
have approved ordinances thereby limiting or banning types of mining such as open pit mining.
While there are environmental safeguards for this action, this is partly a response to the smallscale mining fiscal regime. In this case, small-scale miners pay no royalty or other charges to
DENR and instead pay taxes directly to local government units (LGUs) with the national
government not getting any share. On the other hand, only a portion of taxes, royalties and fees
paid by large mines to the national treasury go to LGUs, notwithstanding the long period of
waiting for it to reach the LGU. This makes more practical and alluring for the latter to issue
small-scale mining permits and to oppose large-scale mining. This pertains to the governance
issue in mining development. But the micro-level extraction may also disrupt the continuity of
reserves to be mined and results in inefficient extraction (Ibid, p. 46). There is a big possibility
that this results in more environmental damages since small-scale mining is not subject to the
more stringent standard measures imposed to large mining operations.
Innumerable persisting issues continue to surround mining development. Why are resource-rich
communities remain poor as ever (contradiction of mineral wealth side by side with persistent
poverty)? How do we ensure that the minerals are tapped and utilized in a safe and sustainable
manner? How do we effectively guard against environmental degradation and repeated
occurrence of disasters? There are reports of polluted air, contaminated rivers, destroyed
mangrove forests, weakened slopes, ravaged corals, ruined agriculture endangering
biodiversity, as well as, damaged indigenous and local cultures. Considering that there are
various environmental, technical, economic, and sociocultural issues, it is a continuing
challenge how to harmonize efforts towards responsible mining anchored on science and
technology. A sustainable operation maintains a sense of equilibrium between opportunities and
risks. Balanced development is one that promotes economically feasible, socially responsible,
and ecologically sound mining.
These issues have become important research agenda for the academia. It is noteworthy that a
Memorandum of Agreement (MOA) has been signed with four state universities and colleges
(SUCs) for the conduct of a research program that aims to ensure responsible mining in
Mindanao. Dr. Amelia P. Guevara, Department of Science and Technology (DOST)
Undersecretary for Research and Development has underscored that this Program will help
address these technical, environmental and sociocultural issues and will aim for a sociallyacceptable, economically viable, environment-friendly and ecologically sound mining in the
region anchored on sound decision support system developed from information and
technologies generated through research and development. The Program is a collaboration
among the DOST through PCIEERD, Congressional Commission on Science and Technology
and Engineering (COMSTE), Commission on Higher Education (CHED) and the SUCs to
include the Caraga State University (CSU), University of Southern Mindanao (USM), Mindanao
State University Iligan Institute of Technology (MSU-IIT) and Mindanao University of Science
and Technology (MUST). DOST-PCIEERD and CHED are providing funding to the research
program.

Developing a Shared Agenda for Mining Development in the Philippines

Corollary to this, the consortium of academic institutions that the University of Queensland
Sustainable Mining Industry (UQ SMI) of Australia has been working with, that would include the
University of the Philippines (UP), Mindanao State University-Iligan Institute of Technology
(MSU-IIT) and University of Southeastern Philippines (USEP), has also been bolstered. Building
capacity for research, education and training has started with the support of the
DFAT/Australian Aid program and other sources. These efforts are eventually aimed at
developing the technical capability of these institutions to support the development of a
sustainable mining industry in the Philippines with academia as partners.
A key element of this particular project is the development of a shared agenda that necessitate
consultations, roundtable discussions, and group/individual interviews among mining
stakeholders. These activities aim to provide a venue for articulating the pros and critical
positions regarding the mining industry in the country. It is important to identify areas of
research, which would feed into the local academic institutions, and subsequently, pave the way
for the plan to establish a national center for minerals industry in the country.
The concept paper prepared by UQSMI in the project Establishing a Stakeholder Dialogue to
develop a Shared Agenda for Mining Development, where this particular research emanates
embodies the three components of the overall purpose of the project and these are as follows:
1) To explore ways of bridging technical information about mining in a social context through
an improved process of technology transfer communication in areas of ethno-religious
conflict which is often operationalized through activism round the environmental and social
impact of mining;
2) To gain an understanding of perceptions and concerns of key mining development
stakeholders in the Philippines a country of immense significance to Australia regionally,
and one which has endured tremendous natural disaster damage in 2013; and
3) To develop an institutional partnership with universities in the Philippines, particularly the
consortium of universities that UQ SMI have been working with, including the University of
the Philippines, Mindanao State University, and University of Southeastern Philippines. UQ
SMI has been building capacity for research, education and training with these universities
assisted by the DFAT Australian Aid program. UQ SMI also assists in developing the
technical capability to support the development of a sustainable mining industry in the
Philippines.
To quote pertinent portions of the concept paper:
The outcomes from this project would lay the foundations for undertaking a larger
program to conduct a structured stakeholder dialogue to develop a shared agenda for
sustainable mining development in the Philippines. The outcomes from this larger
program would make a major contribution to the development of a strategic roadmap for
a sustainable mining industry in the Philippines, and in doing so would contribute to
mining development pathways to extract resources in a manner that would deliver longterm sustainable benefits to the Philippines.
Objectives of the Status Review and Foundation Stakeholder Interviews:
As elucidated in the UQSMI concept paper, this status review would present in a concise form a
critical overview of the key facets related to mining development such as critical environmental,
social, political, and technical aspects and would include a brief history of mining in the
Philippines in the post-colonial era to help understand the resistance to current mining
development. In brief, this status review and stakeholder interviews hope to attain the following
General Objective: To gain understanding of perceptions and concerns of key mining
development stakeholders in the Philippines towards a shared agenda for responsible mining.

Developing a Shared Agenda for Mining Development in the Philippines

Specific Objectives:
1. To provide a brief historical development of mining in the country;
2. To determine the issues and concerns surrounding the pro and critical positions of
various stakeholders;
3. To analyze the potential opportunities/benefits and risks or negative impacts in mineral
resource extraction; and
4. To identify the shared agenda towards responsible mining in the country.

Methodology
Triangulation of the primary and secondary data is employed. Data are generated from the rapid
appraisal procedures which include focus group discussions (FGDs), roundtable discussions,
key informant interviews (KII), field observations, and review of secondary data. The desk-top
status review examines the recent work that has been undertaken relevant to mining industry
development in the Philippines. The specific research tools for the primary data are presented in
Table 1 below.

Table 1. Number of Participants by Research Tool Employed, 2013-2014

Research Tool
Roundtable Discussion/ FGD (April 3-5,2013,
Shangrila, Manila)
Focus Group Discussion
(June 23-24, 2014, Davao)
Focus Group Discussion
(Sept. 16, 2014, UP Diliman & Manila Polo Club,
Manila,)
Key Informant Interview w/ Selected
Government. Officials (Sept. 17, 2014, Manila)
Key Informant Interview w/ Multi-sectors (IPs,
CSOs and LGUs)
(May 21-22, 2014)
Total

Males

Females

Total

44

30

74

18

24

12

17

13

86

45

131

It is important to note that the research process observed ethical research procedures such as
following entry protocols and securing the informed consent of the participants. At the
community level, permission was obtained from the local leader, i.e., from the head of the
municipality/barangay and/or traditional leader. At the start of the KII or FGD, there was
declaration of the intent of the study and permission was always procured to record/document
the process and take photos of the participants.
Limitation of the Study
This report is limited to the data generated from the roundtable discussions, focus group
discussions, key informant interviews, and review of secondary data. In the process of
integrating the data, the researcher is constrained by data availability and time limitation in data
analysis. Admittedly, the researcher grappled in packaging this report having personally
witnessed and felt the struggle of those in the uplands in defense of their age-old cultural
heritage and life vis--vis the role of academia in research, extension and development
endeavors. There are variegated issues and concerns that are complicated and contradictory.
Whatever this report will contribute to current mining discourses, there is a sincere effort to
adhere to the principles embedded in observance of ethics and responsibility. The report
expects a sequel in the form of an in-depth case study focused on a mining company to discern
more insights and provide a space for community capacity strengthening as part of an action
research. More importantly, it is fervently hoped that the outcome and recommendations of this

Developing a Shared Agenda for Mining Development in the Philippines

study would add to the literature on mining as reference data that can be translated into action
research, appropriate development interventions, and well-meaning policy formulation and
implementation.
Framework of Analysis
The framework that shall guide this report will be an eclectic mix weaving together several
theories and concepts such as sustainable operations (SUSOP), sustainable development and
related concepts, and stakeholder theory to aptly capture the innumerable dimensions of an
economic activity such as resource extraction. These will hopefully form a funnel of ideas and
concepts that will direct the development of a shared agenda for mining development in the
country. Considering the various views, it is a daunting and arduous challenge to discern the
gaps and disagreements and locate converging points of the stakeholders.
Resource extraction such as mining necessitates a unique locus to operate. Who really gets
what, when, where, and how in excavating and pulling out natural resources. The proliferation
of extractive practices all over the world need to consider core values such as intergenerational
equity, accountability, democratic/participatory governance, and transparency. These concepts
are defined below.
Sustainable Operations. One useful framework is known as SUSOP developed over the years
by the Sustainable Minerals Institute of the University of Queensland in Australia. Corder in his
presentation entitled Developing Better Projects through the Early Identification of Sustainability
Opportunities and Risks postulates that there is a growing challenge to better understand the
factors that affect the development of new resources projects. This is illustrated by the
increasing societal expectations of the resources industry, as well as the commitment made by
resource companies to their own sustainability policies. The challenge for engineers and
scientists is how to meet the rising expectations of society and corporately endorsed
sustainability policies while still delivering projects that satisfy necessary technical and financial
requirements.
SUSOP (SUStainable OPerations) is a sustainability opportunities and risks framework that
aims to address this challenge. Critical environmental, community and social issues are
identified and translated into operating designs and practices to deliver new innovative
solutions. Understanding these factors at the early phases such as concept, pre-feasibility and
feasibility of new projects is viewed to be critical to producing a project that meets societal
expectations. Better appreciation of crucial sustainability risks involving environmental, social
and community risks early in project development promotes the need to identify innovative
solutions that can potentially mitigate these risks.

The SUSOP framework recognizes three major elements:


1. Sustainability Opportunities and Risks Identification (SUSID) includes a significant
characteristic, new ideas generation, and is made up of four steps:
Step 1: Familiarization with sustainability concepts and project context
Step 2: Goal scoping and opportunities and risks identification
Step 3: Analysis of sustainability opportunities and risks
Step 4: Prioritization of sustainability opportunities and risks
2. Preparation of Action Plans in conducting a detailed evaluation of the shortlisted or
high-priority opportunities and risks.
3. Decision Support in providing assistance with decision-making at project toll gates.

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Developing a Shared Agenda for Mining Development in the Philippines

All elements are supported by the SUSOP knowledge base which includes information on
sustainability frameworks and principles, details on case studies, relevant sustainability tools
and databases to assist in the evaluation and assessment stages, resources for workshops and
relevant public domain information and data.
The main outputs from a SUSOP study are presented in the Sustainability Register. This
operates in a manner similar to the conventional risk register and includes: Opportunities for
improving the contribution to societal sustainability and business performance of the project;
Supporting SD Balance Sheets to schematically show the positive and negative impacts across
the five capitals of sustainability (natural, human, social, manufactured, and financial capitals);
and sustainability risks that could potentially impact on the projects viability. The latter involves
the action plans for opportunities and risks in the register before proceeding through the next
project toll gates (Ibid).
The same article mentions the five capitals model, developed by the not-for profit organization,
Forum for the Future, utilizing the concept of capitals to organize sustainability thinking. These
are the:
Natural Capital is the basis not only of production, but of life itself and is any
stock or flow of energy and material that produces goods and services. It
includes the resources (renewable and non-renewable materials), sinks (that
absorb, neutralize or recycle wastes); and processes (such as climate
regulation).
Human Capital consists of people's health, knowledge, skills and motivation,
which are needed for productive work.
Social Capital concerns the institutions that help maintain and develop human
capital in partnership with others, e.g. families, communities, businesses, trade
unions, schools, and voluntary organizations.
Manufactured Capital comprises material goods or fixed assets which contribute
to the production process rather than being the output itself, e.g. tools,
machines and buildings.
Financial Capital enables the other types of capital to be owned and
traded, and is representative of natural, human, social or manufactured capital,
e.g. shares, bonds or banknotes.
It is important to note that Goal Scoping and Opportunities and Risks Identification involves the
following:
Establishing sustainability goals that provide the basis for the identification of
opportunities and risks
Identifying opportunities that could achieve one or more goals and risks that
could prevent one or more goals from being achieved
Conducting initial ratings of the opportunities and risks.
Sustainable Development and Related Concepts. As global climate change haunts the world
today, it is imperative to incorporate the essence of climate change adaptation and disaster risk
reduction in the natural resource extraction that are best illustrated in the concept of sustainable
development. The basic challenge is to address and mitigate global warming and stimulate
broad-based economic activity that would generate wide ranging benefits while avoiding
environmental destruction. There is now a growing awareness to integrate ecological objectives
with economic opportunity and social equity.
Sustainable development is a pattern of resource use aimed at meeting human needs while
preserving the environment. The term was coined by the Brundtland Commission which has
become the most often-quoted definition of sustainable development as a form of development
which integrates the production process with resource conservation and environmental

11

Developing a Shared Agenda for Mining Development in the Philippines

enhancement. It should meet the needs of the present without compromising our ability to meet
those of the future. The field of sustainable development can be conceptually broken into three
constituent parts: environmental sustainability, economic sustainability, and sociopolitical
sustainability. This is development that pursues a path that is lasting shifting from the
exploitative-extractive development to the environment-friendly sustainable development
perspective. Three sets of objectives need to be integrated for sustainable development as
follows: Ecological Objectives: ecosystem integrity, carrying capacity, biodiversity, global issues;
Social Objectives: empowerment, participation, social mobility, social cohesion, cultural identity,
institutional development; and Economic Objectives: growth, equity, and efficiency. These
uphold that equity, growth, and environmental sustainability are simultaneously possible.
Sustainable development became the byword in response to the globally pervasive issues on
environment and development when the historic Earth Summit formulated the Rio Declaration
on Environment and Development in June 1992 with more than 30,000 government and nongovernment participants. As an offshoot of this gathering, the Agenda 21 plan of action was
formulated comprising four main components to address development issues, two of which are
the social and economic dimension and conservation and management of natural resources
(cited in Guzman and Guzman, 2000; cf [Link] org/wiki/Sustainable) .
Along with the other components, ecological integrity is indeed crucial in sustainable
development. This brings into light the notion of ecological dialogue where the material and
ideal dimensions of the environment depend upon and interact with each other and together
constitute the practical condition of our lives as advocated by Bell and Carolan (2009). The
mutual interdependence involves the interplay, constant conversation, between the material and
ideal dimensions of the never-ending dialogue of life and how our environmental practices
emerge from it. To aptly quote Bell and Carolan:
Ecological dialogue. to conceptualize the environmental relations that shape
our scope for action: our ability to do, to think, to be .These relations of power
include both the organizational factors of materiality and the knowledge factors of
our ideas- which in turn shape each other (Bell and Carolan, 2009: 4).
When we say sustainable development, it is directed at the future generation bearing in mind
intergenerational equity. The concept of intergenerational equity raises a way out to
environmental problems whose effects are likely to be spread unevenly across generations
because of its reference to needs or benefit of future generations. Brown Weiss as cited by
Wood (2004) espoused that each generation holds the planet on trust for the next.
Intergenerational justice apparently carries the notion of a social contract. A quote from
Salvador P. Lopez is in order:
There is, of course, the need to utilize and conserve the countrys minerals as
wisely and judiciously as possible for the good of the greatest number including,
and especially, generations yet unborn. One way of doing this is by optimizing
the value of every ounce of mineral that is mined and processed (Lopez, 1992:414)
The economic aspect of sustainable development may also embrace the ethical principles in
community economy involving the principle of interdependence, recognition and negotiation.
These are outlined in the book Take Back the Economy where Gibson and Graham (2013)
propose a reversal of the manner economies are operated. From the top-down structure that
dictates how resources are used and allocated where states and capitalist enterprises
determine the processes and outcomes, the authors proposed a negotiated community
economy as an alternative. In this model, grassroots resource-use and interests are given
primacy and importance.
They put forward this reversal on the basis of a set of beliefs
regarding the negotiated nature of the economy - that it is not monolithic or unchanging.
Communities where resources are extracted can have a say on their use and disposition based
on their interests and concerns. This process of taking back the economy, necessitate,

12

Developing a Shared Agenda for Mining Development in the Philippines

however, a political process where the once marginalized voices now are recognized and
assume center stage in a complex economy with diverse systems of operation which may
include barter and mutual aid. To quote:
Our communities are sustained by enterprises that operate in the market for
private profit as well as those that directly serve the interests of communities
and care for the natural or social environment. Businesses that plunder the
environment and sow disregard for their workforces increase the vulnerability
of people and places. The more diverse the forms of enterprise that direct their
surplus toward sustaining environment and communities, the more secure our
futures will be (Gibson and Graham, 2013: 192).
The prescription goes beyond the aim of replacing the current order with a democratizing
political program, but more importantly allow for the sustainable and equitable use of resources
for the society of the future by re-ordering the global economic system towards ethical
community economies. The authors write: It is in thinking together about our working lives, our
collective efforts, the places in which we encounter others, the commons we constitute through
our care, and the future we collectively invest in that will allow us to build an economy worth
living in with one another (Ibid., pp. 196-197). It is proposed that human constituents should
learn from natures lessons where diversity produces resilience.
In regard to the social dimension of sustainable development,
social cohesion, cultural
identity, democratic participation, transparency and accountability are vital concepts.
Accountability refers to the processes through which an organization makes a commitment to
respond to and balance the needs of stakeholders in its decision-making processes and
activities, and delivers against this commitment (One World Trust. 2005: 20). According to
Whitty (2008) in the book Accountability Principles for Research Organisations, there are four
principles of accountability, namely: participation, evaluation, transparency and feedback
mechanism. Participation refers to the ways in which an organization involves stakeholders in its
decision making processes and activities. Stakeholders are given a voice in the activities of the
organization creating ownership of the results and legitimacy. Additionally, democratic
participation relates to power and decision making or ability to influence officials and policies.
The goal of democratic citizen participation is enhancing the potential for affected citizens to
become part of the decision-making process, rather than being victims of the decisions made by
agencies or institutions (Fiorino, 1990). The mechanisms may include the following
opportunities: individual or group participation in decisions on an equal basis with officials,
experts, and other stakeholders; allowing citizens or their representatives to define issues,
question experts, and shape the agenda; learning and improving understanding about issues;
availability and equality of resources for participation; and access to decision-makers (Fiorino,
1990; Tickner. 2001).
Moreover, transparency is also essential in governance and management of resources. It grants
and affords the constituents access to evidence or public information. Transparency is a
characteristic of processes defining the way in which an organization makes available
information about their activities particularly the financial aspects of an organization. This may
also include information about their work, expertise, and key stakeholders. Transparency is a
necessary pre-condition to accountability: only through the availability of information about its
actions, stakeholders and research, can an organization be held to account for them (Whitty,
2008).
The strong message is that for sustainable development to be operational, it is crucial to
harmonize and integrate sound and viable economy, sociocultural dimensions, and ecological
integrity in an atmosphere of democratic consultation, responsibility, and transparency.

13

Developing a Shared Agenda for Mining Development in the Philippines

Stakeholders. The concept of stakeholders will also be employed in this report. Stakeholders
generally refer to actors bearing a vested interest and needs of ones organization or affiliation.
In this case, the stakeholders are individuals and groups who have interests and concerns
related to mining. In the words of R. Edward Freeman, a stakeholder is any group or individual
who can affect or is affected by the achievement of a corporations purpose. (cited in
Mindanawon Initiatives for Cultural Dialogue, 2008: 54; [Link] [Link]/ehat-isstakeholder-analysis). Stakeholder analysis entails a process of gathering and analyzing
information to determine their needs and whose interests should be taken into account in
policy/program formulation and implementation. This involves identification and prioritization of
stakeholders interests.
Babou (2008) emphasized that the stakeholder analysis is an important technique to develop a
strategic view of the human and institutional landscape and the existing relationships between
the different stakeholders. Along this end, among the benefits are as follows: the interests of all
stakeholders, who may affect or be affected by the project, potential issues that could disrupt
the project, key people for information distribution during executing phase, and ways to reduce
potential negative impacts and manage negative stakeholders. More importantly, the same
author stresses that the stakeholder analysis offers opportunity to individuals or groups to
express their ideas/issues/concerns, gives a sense of accountability and enhances
responsibility, enables effective risk identification and response planning, and provides excellent
learning opportunity for the stakeholders.
An unpublished study entitled Mining in Mindanao: Analyzing Stakeholders and Identifying
Strategic Engagements of the Mindanawon Initiatives for Cultural Dialogue (2008) based at
Ateneo de Manila University, a leading university in the Philippines, came up with a
classification of stakeholders: core stakeholders comprising the indigenous peoples, smallscale mining, mining company, and state, and critical stakeholders involving groups/institutions
providing facilitative role, technical or security support to core stakeholders, e.g., civil society
organizations, Catholic church, academia, armed groups and others. In this report, the core
stakeholders are defined as those whose means of subsistence (food, herbal medicines
produced for their own consumption), sustainability, and lifeworld are affected (positively or
negatively) by mining operations, who may have pre-existing claims or ownership over the
resources covered in the mining development area. Those who have provided major inputs or
contributions to mining activities such as financial, technical, legal, land, natural resources,
security are included. On the other hand, the critical stakeholders are those who are concerned
about the general community welfare, environment, territorial claims, and other social, cultural,
economic or political interests that are related to mineral development. They are groups or
institutions that provide facilitative role, technical or security support to the core stakeholders
(Ibid).
The above-mentioned study asks the following questions: How do we establish criteria for
exclusiveness and inclusiveness? Are there other voices outside of the above classification? Is
there such a thing as a combination of voices? Who are the agents here? Where can they be
found? The same unpublished study (2008:1) cited Chevalier: all conflicting interests can be
negotiated and the well-being ofeconomies hinges on the active participation of all citizens,
actors whose material benefits ultimately coincide with those of capital. It underscores
continuing change in contexts involving power differentials and conflict of interests as gleaned in
the following quote:
development should not be reduced to economic growth or that the sole
powers of the market solve development problems particularly in Mindanao.
It should be stressed here that the development problems in Mindanao are
political. (Mindanawon Initiatives for Cultural Dialogue, 2008: 6).

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Developing a Shared Agenda for Mining Development in the Philippines

It is crucial to have a widely shared expansion of our economy where the key players mobilize
the peoples skills and energies, as well as the responsible harnessing of our natural resources.
To borrow the term used by the Mindanao Peace and Development Framework Plan for 20112030 or commonly known as Mindanao 2020 economic and ecological integration is the
carrying capacity of the environment and natural resource base. In this sense, economic and
ecological integration sees economic development and responsible stewardship of the
environment not as incompatible goals, but as mutually reinforcing objectives towards
sustainable development. It is only when both ends are jointly served that the ultimate goals of
development are attained. It recognizes that the natural, financial, social and human capitals are
advanced for inclusive growth where there is synergy of efforts of the various stakeholders.
To capture the above, the analytical framework of this study is hereby presented below:

Figure 1. Analytical Framework

DATA SOURCE IN IDENTIFYING


MNING ISSUES& CONCERNS

STATUS REVIEW
Brief
Historical
Background
Related
Studies and
Literature

STAKEHOLDER
INTERVIEWS
(Round Table Discussions
FGD and Key Informant
Interviews)
Mixed Group
(Academia/ Industry/
Selected Government
Agencies)
Government
Agency/Local
government unit
Small-scale miners
Civil Society
Organization/ Church/
Non-government
Organization
IP Communities
Mining Companies
Selected Govt.
Officials

POINTS FOR
CONVERGENCE

SHARED
AGENDA
FOR
MINING
DEVELOPMENT

EMERGING ISSUES AND


CONCERNS
Environmental
Socio-cultural
Economic
Political
Governance
Others

DIVERGENT
INTERESTS

CONTINUI
NG
CHALLENG
ES IN
MINING
DEVELOPM

Operationalization of the Key Stakeholders Positions:


Corollary to the framework of analysis is the operationalization of the stakeholders positions to
facilitate data analysis. Literature so far indicates the wealth of experiences from the ground
regarding resource extraction activities such as mining. It is important for the various
stakeholders to play their respective roles in promoting their shared agenda of benefitting from
resources extracted while protecting their divergent interests. The community comprises groups
or sectors that possess varying and conflicting interests. The agent or social actor may respond
in a conflictive or collaborative manner. It is important to note that there is a broad spectrum of
stakeholders that some communities from within is not necessarily homogenous responding and
acting in a uniform and identical way, whether they are in favor or critical of mining, In the
empirical setting, should there be cases where a stakeholder occupies more than one post as
part of both core and critical stakeholders, ones predominant disposition must prevail.

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Developing a Shared Agenda for Mining Development in the Philippines

The possible key to resolving the potential conflicts emanating from these complex dynamics is
the forging of a strong unity towards a collective agenda and agreement to respect their
divergent interests under a common framework that makes resource extraction beneficial to all.
The table below illustrates the various stakeholders, divergent interests or limits, respective
roles and functions and agenda for convergence. The last poses the collective agenda that can
be shared and serve as starting point for collaborative undertakings. This is possible when two
or more stakeholders work as one to a mutually agreed upon goal and equitable returns.
Stakeholders are essential in obtaining community informed consent and engagements in
conflict transformation, policy formulation/implementation and development interventions. The
assumptions related to divergent interests or limits, basic roles and functions and convergent
agenda for each stakeholder are presented in the table below.

Table 2. Position of Core and Critical Stakeholders related to Divergent Interests, Roles/ Functions and Convergent Agenda in
Mining Development

Divergent
Interests/Limits

Roles and Functions

Convergent Agenda

Core
Stakeholders
Community (IP,
non-IP, etc)

Sustainable extraction of
resources for the benefit of
the communitys interest;
Collective determination
through strong and
independent peoples
organizations

Stewards of their
community interest
as defined in the
Indigenous Peoples
Republic Act (IPRA or
RA 8371),

Fair and equitable


share/ benefits from
resources extracted

Mining
Companies

Profit motivation taking into


account issues of
sustainability and equity

Sustainable Operations
(SUSOP)

Fair and equitable


share/ benefits from
resources extracted

Small-Scale
Miners

Source of livelihood and


profit motivation taking into
account issues of
sustainability and equity

Sustainable
development

Fair and equitable


share/ benefits from
resources extracted

State/LGUs

Stewards of national and


other community interests

Sustainable
development

Fair and equitable


share/ benefits benefit
from resources
extracted

Sustainable
development

Fair and equitable


share/ benefits from
resources extracted

Sustainable
development

Fair and equitable


share/ benefits from
resources extracted

Critical Stakeholders
Civil Society
Stewards of national and
Organizations
other community interests
(NGOs, Church,
etc)
Academia
Stewards of national and
other community interests
through science and
technology

SECTION B. BRIEF HISTORY OF MINING IN THE PHILIPPINES


Mining in the Philippines started during the pre-colonial period where archaeological evidence of
mining, smelting, and blacksmithing prevailed. Natives from all over the archipelago started to
mine gold, copper, and many other minerals for body ornaments. Considered a precious metal,
gold shaped tradition and ritual, indigenized certain features of beliefs and developed patterns
of wealth, power and authority (Lopez, 1992:6).

16

Developing a Shared Agenda for Mining Development in the Philippines

Pre-Colonial Period. Among others, remains of old mine workings have been unearthed in Mt.
Province, Masbate, Bulacan, Camarines Norte, and Mindoro. Chinese records show barter
activities involving copper between the Chinese traders and the natives. It is interesting that the
prevalence of gold in pre-colonial society is etched in culture and ideas. For example, the best
in thought is known as gintong kaisipan and being good is an illustration of gintong kalooban.
The women were noted to have played a role in recovery of gold from ore by crushing gold
pieces on a hard rock and rolled with a heavy stone before it was carried to the stream to
process the gold (Ibid).
Mining activities in Mindanao had its beginnings during the pre-Islamic and Islamic period.
Before the coming of Islam, gold artifacts appeared as early as 900 to 1644 A.D in northeastern
Mindanao and northern Samar. During this period, gold grains were traded with other natives
transforming the metal into jewelry or other ornaments. The Moro, in particular, were famous for
their skill in alloying the gold produced and/or traded from the areas. Evidence showed that the
Islamized groups, particularly the Sultanate of Sulu and Maguindanao and probably the Pat a
Pengampong sa Ranaw, regulated the trade of gold between the natives and the foreigners.
Thus, mining has been done by the natives before the coming of Islam, albeit limited in scope
and scale. These are primarily small-scale hand operations for gold, which was used for trading
purposes with the Chinese and other neighboring countries (Vidal, 2005).
Colonial Period. The Spanish search for colonies was a quest for gold, god and glory. During
the Spanish colonial period, the first mining law creating the Inspection General de Minas
under the Governor-Generals was aimed at administering all the mining activities in the country
under the Royal Decree of 1837 ([Link]). The Regalian Doctrine conferred right to the
Spaniards to develop mines on private concessions. While this doctrine was believed to be a
myth, it served as basis for the enactment of various laws in the Philippines. Provisions on state
ownership of natural resources, and its right to develop and utilize the same were provided
under the 1935, 1973, and the 1987 Philippine Constitutions ([Link]/fr /).
Attempts were made by the Spanish colonial forces to exploit the mineral potentials of
Mindanao. Iron mines were put up in Misamis and Surigao. Iron, the second most essential
mineral, was used in producing tools and war materials.
The Mining Law of May 1867 provides that all minerals are exempted from the three percent
production tax for 30 years. It also states the non-imposition of other taxes and assessment of
levies on the mining industry. Towards the end of Spanish era, gold mining activities were done
by the enterprises organized by the Spaniards, Chinese mestizos, and Filipinos. Mindanao,
particularly Butuan and Surigao, were the first gold-areas.
Under the Treaty of Paris, the United States took over the country in 1898 and carried out a
more organized approach to mining exploration and development. The Americans employed
geological survey to assure the existence of minerals. A number of laws were passed such as
Act 468 that allowed the government to set aside land for its own mining purposes. This law was
used as basis by the postcolonial government to reserve mineral lands for the Philippine
governments own exploration. After the passage of the Philippine Bill of 1902 which defined the
mineral claims that paved the way for establishing large-scale American mining companies and
expansion, the Mining Law of 1905 led to the transfer of public lands from indigenous
communities to private individuals and corporations for ownership and exploitation (Tujan and
Guzman, 2002).
During the gold boom in the 1930s, mining took center stage along with logging and export
crops like copra, sugar, and abaca. In 1936, Commonwealth Act No. 137 gave right to the
government to reserve mineral lands for its purpose. Mining companies proliferated with
increasing demand for gold, iron, chrome ore, silver exports and copper concentrates as war
materials. In 1914, Surigao and other parts of the Caraga region were declared iron reserves

17

Developing a Shared Agenda for Mining Development in the Philippines

for future mining ([Link]/). Thereafter, all mineral lands in Surigao provinces
were set aside for exploration and development. Until the present, these areas serve as the
mineral land reservation in Northeastern Mindanao. Northeast Davao was also declared a gold
mining area.
The US colonial government steered the development of the countrys mining industry and
expanded its control through mine leases, mine safety, mineral reservations, and additional
taxes. This led to the establishment of major Philippine mining companies such as the Lepanto
Consolidated and Benquet Consolidated Mine Ltd., the first and oldest mining in the Philippines
([Link]/). Thereafter, more gold mines were established in Benguet province.
During the Philippine Commonwealth era, President Manuel Quezon called Mindanao the land
of promise to attract Christian settlers to come. The promulgation of the 1935 Constitution
declares all natural resources belonging to the state and their utilization limited only to
Philippine citizens or to corporations which were 60 percent Filipino-owned. Based on this, a
Mining Act was enacted on November 7, 1937 with the same provisions. Public lands were
opened to exploration and occupation. During the gold boom years within this period,
governments control included its intervention in mine leases, mine safety, mineral reservations,
and additional taxes on mining operations. No major gold-producing companies were
established after 1935. This period marked the development and growth of the biggest
commercial gold mines in Benguet Province as stated above (Caballero, 1996 cited in Vidal,
2005).
To quote the unpublished study of the Mindanawon Initiatives for Cultural Dialogue (2008:20),
citing Casino 2005:65, Junker 2000 and Warren 1997, Mindanaos political economy shifted
during the American period:
from a people resource- in the form of captives and slaves as basis of power
and wealth, it shifted to productive land resources in a modern agricultural
economy as the new avenue to individual and communal prosperity
Postcolonial Era. This period was characterized by the decline and revival of the countrys
mining industry. There was reported rehabilitation two decades after World War II. Following
Philippine independence from the US in 1946, new explorations of gold were carried out, albeit
limited due to the low price of gold. Exploration initiatives were also affected by the change of
management thrust of the mining companies. Filipinos who came largely from Filipino-Chinese
families owned 95 percent of the countrys wealth production (Vidal, 2005 citing Maund, 2004).
Despite lessening involvement of US experts in managing mining explorations, US citizens and
corporations retained significant ownership of mining companies. Their continued ownership
and control of the countrys mining industry stemmed from the enforcement of the Bell Trade Act
of 1946 and the Laurel Langley Agreement forged by our government with the US (Vidal, 2005).
Note that the Bell Trade Act which expired in 1974 allowed 100% US participation in economic
sectors.
In the 1950s, there was a decline of mineral production. Limited gold production along with
increasing production costs, high taxes, and low world prices resulted in a gold crisis. In 1954,
Republic Act No. 406 stipulating government assistance on gold was promulgated to assist
gold producers and the gold mining industry to survive during the critical years (An unpublished
study of the Mindanawon Initiatives for Cultural Dialogue, 2008: 22 citing the Philippine
Yearbook 1981:329).
During the Japanese occupation, mining industry was reportedly badly affected due to nearly
complete demolition of mining plants ([Link] Mining activities were
limited only to exploration. However, large-scale mining reached its peak during 1960s-1970s.
During the Marcos regime (1966-1986), the fourth mining law was enacted, the Presidential
Decree 463 known as the Mineral Development Act of 1974. This provided for an efficient

18

Developing a Shared Agenda for Mining Development in the Philippines

administration and disposition of mineral lands and promotion of their development and
exploitation. Under the law, the mining industries were exempted from paying taxes on
machineries, equipment, tools for production, plants to convert mineral ores into saleable form,
spare parts, supplies, materials, accessories, explosives, chemicals and transportation and
communication facilities, as well as exempt from the payment of customs duties (P.D.
463,Chapter X Section 53). Penalties were also imposed for pollution from mine waste and mill
tailings with a fine of Php5, 000.00 or imprisonment for six (6) years or both as the case maybe.
([Link] This law considered any
action/opposition to mining operation as economic sabotage.
From the 1960s to 1970s, onset of the first world oil crises, there was a boost in copper
production. Major US mining companies such as Anaconda and Placer Dome discovered 55
porphyry copper-gold system deposits throughout the country. This includes the Marcopper
mines in Boac, Dizon mine in Zambales and Atlas Consolidated Mine in Toledo, Cebu Island
(Maund, 2004 cited in Vidal, 2005). The copper upsurge was also an offshoot of increasing
demand by Japan and Western Europe for its post-war reconstruction and rapid economic
growth. However, production of other base metal mines remained slow (Tujan and Guzman,
2002).
When Martial Law was declared in 1972, the mining industry was again disturbed, but four of
the mining companies continued: Atlas and Marcopper in copper production and Benguet
Consolidated and Benguet Exploration in gold production. These four corporations maintained
control of 60% of the mining industry (Ibid.). The decade 1980-1990-towards the end of martial
law (1982) and the fall of Marcos (1986), was called the Dark Period of mining industry. The
shutdown of 14 big and medium-sized metal mines and the low price of principal metal products
severely affected the export-oriented big mining industry ([Link]). While large-scale
mining was failing, the existence of small-scale mining production in Diwalwal, Davao del Norte
led to the legislation of PD 1899 entitled Establishing Small-Scale Mining as a New Dimension
in Mineral Development in 1984,tthe first law legalizing small-scale mining (An unpublished
study of the Mindanawon Initiatives for Cultural Dialogue, 2008:27 citing Bugnosen, 2001).
The rise of development enclaves also characterized the Marcos era. As cited by the
Mindanawon Initiatives for Cultural Dialogue unpublished study (2008), uneven development
continued with the Muslim provinces deteriorating while the Christian provinces advancing due
to preference of investors in more peaceful provinces such as Bukidnon, Southern Cotabato
and Davao del Norte. But even in the Christian provinces, there were also export-oriented
agriculture that drained local resources. This contributed to the social unrest in Mindanao with
the shattering effects of underdevelopment.
Under the Cory Aquino government (1986-1992), the so-called democratic space prompted
the return of international gold exploration companies in Mindanao. Executive Order 226
otherwise known as the Omnibus Investment Code of 1987 entitled mining projects to additional
tax and fiscal incentives (tax holiday for four years for non-pioneer and six years for pioneer
projects) and mining was included in the Investment Priorities Plan, This liberalized the entry of
foreign investments and foreign products (Tujan and Guzman, 2002). Between 1987 and 1994,
many prospects were discovered to include the world class 1 epithermal vein gold deposit of
Diwalwal where 250,000 to 400,000 ounces per annum produced up to the present by some
40,000 to 50,000 encamped local miners (Maund, 2004 cited in Vidal, 2005). While the Local
Government Code gave autonomy to LGUs and IPs rights duly recognized, Mindanaos growth
and development lagged behind in terms of addressing poverty, massive unemployment, and
low per capital gross regional development growth. This is attributed to the policy bias against
countryside development, rising labor costs, power outages, and the series of natural disasters
such as droughts and floods that rocked the country (Ibid, 2008:29).

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Developing a Shared Agenda for Mining Development in the Philippines

Republic Act No. 7076 known as the Peoples Small-Scale Mining Act of 1991 was passed to
promote, develop, protect and rationalize viable small-scale mining activities purposely to
generate more employment opportunities and provide an equitable sharing of the nations
wealth and natural resources. This law defines the small-scale miners as Filipino citizens
who, individually or in the company of other Filipino citizens, voluntarily form a cooperative duly
licensed by the Department of Environment and Natural Resources (DENR) to engage, under
the terms and conditions of a contract, in the extraction or removal of minerals or ore-bearing
materials from the ground. As embodied in this law, the mining contract involves the coproduction, joint venture or mineral production sharing agreement between the State and a
small-scale mining contractor involves the small-scale utilization of a mineral land. This covers
no more than 20 hectares and renewable every two years, Tujan and Guzman (2002) opine that
RA 7076 led to the displacement of the indigenous peoples and small-scale miners to be taken
over by large-scale mining corporations.
During the Ramos administration (1992-1998), the doors to foreign investors for all industries
were opened with deregulation, liberalization, and privatization of almost all government-owned
corporations taking place. The country targeted to become a Newly Industrialized Country (NIC)
by 2000. In 1994, the Philippine Congress issued Republic Act 7729, otherwise known as the
Excise Tax Act reducing the excise tax rates on metallic and non-metallic minerals. In March
1995, Republic Act 7942, known as the Philippine Mining Act of 1995 followed which allows up
to 100% ownership by foreign companies, and has 50 years of maximum period within which to
operate mining, and occupy an area of 81,000 hectares of potentially mineral-rich lands where
the companies enjoy timber rights, water rights, and easement rights. With the approval of the
1995 Mining Act, there has been a rush of foreign investment for large-scale mining exploration
and development, particularly in Mindanao. Even before the passage of this Act, then President
Ramos already granted FTAAs to two foreign gold and copper mining companies: Australiabased Western Mining Corporation (WFC) and Climax Arimco Corporation (Ibon Databank and
Research Center, 2006). New players came in to mine Mindanao which included, among others,
the TVI Pacific and Red Limited of Australia in Siocon, Zamboanga del Norte, and Surigao del
Norte, respectively. In 1996, twenty of the worlds largest mining companies established offices
in the country, and filed applications for various mining tenements leading to the approval of
several exploration projects (excerpts from Cabalda, Banaag, and Garces: 2002, Domingo:2003
from [Link]/).
Moreover, during the stint of Ramos, the Republic Act 8371 otherwise known as the Indigenous
Peoples Republic Act or IPRA was passed in 1997. This carries repercussions to the mining
industry since many of the mineral resources are located in the upland which is the domicile of
the IPs. Respecting culture integrity, this requires a process known as the free prior informed
consent (FPIC) that should be obtained through a tedious process with the assistance of the
National Commission of Indigenous Peoples (NCIP). This is the body that releases the
certificate of precondition to enable any mining company applicant to enter the area at the start
of exploratory stage.
It is important to note that the mining industry suffered a decline from 1991 to 1996 as a result of
economic, ecological, and natural disasters. These were consequences of the Baguio
earthquake in 1990, Mount Pinatubo eruption in 1991, the 1996 mine tailing catastrophe at
Marcopper large open-pit porphyry copper operation at Boac, Marinduque island, and the
environmental disaster at the Maricalum Mining Corporations Sipalay porphyry copper
molybdenum mine in Negros Occidental. Despite this, coupled with the downturn of metal prices
of gold in July 2000, Lepanto Consolidated Mining Ltd. and WMC continued with their mining
explorations (Maund, 2004 cited in Vidal, 2005). In the case of the Marcopper disaster in 1996,
it was reported that 823 hectares of productive riceland and other farmlands and about 6,100
kilos of fish were badly affected when the company accidentally unleashed tons of toxic wastes
from its mine tailings. This made the Makulapnit and Boac rivers biologically dead and would
take years to recover affecting 20,000 people in 42 villages. The earthquake must have

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Developing a Shared Agenda for Mining Development in the Philippines

contributed to the fracture of its concrete plug that toxic wastes escaped from the company pit to
the rivers.
The Estrada administration (1998-2000) was characterized by two national development plans,
namely: the Medium Term Development Plan (MTDP) and the National Peace and
Development Plan (NPDP). Among others, the former was aimed at reduction of poverty and
improvement in income distribution. The private sector was tasked to generate productive
employment opportunities and become competitive in the global market. On the other hand, the
latter was tasked to interweave the sociocultural, economic and political programs of the
government. Mindanao 2000 targeted global competitiveness, internal and external integration,
sustainable development and people-centered development. The strategies of export-oriented
Mindanao economy, agricultural development and agri-industrialization, environmental
management, and social development were to be integrated. This gave rise to seven (7) area
development zones (ADZs) and positioned Mindanao as the gateway to BIMP-EAGA (Brunei,
Indonesia, Malaysia, and Philippine East Asean Growth Area).
During the Arroyo dispensation (2001-2011), MTPDP (2004-2010) was drawn and the goals
were focused on poverty reduction, macroeconomic stability, sustained growth of income and
employment based on free enterprise and markets alongside with peace and development.
Mining was propelled to be the driver for economic development. Part of the MTPDP was to
promote responsible mining that adheres to the principles of sustainable development,
economic growth, environmental protection and social equity (Unpublished study of the
Mindanawon Initiatives for Cultural Dialogue, 2008: 35). Among others, the plan to revitalize the
mining industry included the following: revive the mining industry, resolve the issues of mining
accidents in abandoned and idle mine areas, conduct assessment of 7 abandoned mines,
address the Marcopper mine tailing spill, construct the Mabatas tailings dam (30 hectares),
develop incentive schemes to attract international and local investors in Mt. Diwalwal, and
mobilize international and local investors to develop the underground wealth of gold.
One interesting bill filed during the 15th Congress on March 2, 2011 was authored by
Representative. Teddy A. Casino known as the Peoples Mining Bill. This House Bill 4315
entitled An Act Re-Orienting the Philippine Mining Industry, Ensuring the Highest Industry
Development Standards seeks to reorient the current policy on the ownership, management
and governance of metallic and non-metallic minerals, quarry resources, and gemstones
towards a rational manner for national industrialization and local development. It covers onshore
and offshore, large-scale and small-scale mining operations and their conservation, exploration,
development, utilization, processing and transportation. Mineral resources are defined in the bill
as all naturally-occurring inorganic substances in solid, gas, liquid, or any intermediate state. It
envisions a mineral development bearing the features of being economically-viable,
ecologically-sound and democratized. Mining industry development shall be based on a
National Industrialization Program (NIP) and Mining Plan (MP), reoriented away from market
forces and external investments and supporting a strategically and domestically-planned
economy.
The current Benigno Aquino III dispensation is teemed with controversies with the ban on
mining and logging and cease and desist orders and promulgations. Anti-mining movements are
on the rise while alliances continue to advocate responsible mining as a catalyst to achieve
economic stability.
Arising from a host of issues surrounding mining, the Aquino Administration in February 2011
imposed a moratorium on all new mining contracts so that a process of review of existing laws
may take place without having new contracts signed that may create legal ambiguities. The
review of existing laws was tasked to the Climate Change Adaptation and Mitigation Cluster
(CCAM) and the Economic Development Cabinet Cluster (EDC) which, in turn, conducted an

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Developing a Shared Agenda for Mining Development in the Philippines

extensive process with various stakeholders to gather feedback about desired changes so as to
address identified flaws of the 1995 Mining Act (Hicks, Acosta, et al., 2014).
A new council known as the Mining Industry Coordinating Council (MICC) was established to
supervise implementation of the new Mining EO, improvements to the information resources
available regarding mining, and the harmonization of existing laws/policies, and procedures.
This interagency advisory board is co-chaired by the CCAM Chair and the EDC Chair, with the
support of the Secretary of the Department of Justice, the Chairperson of the National
Commission on Indigenous Peoples, and the President of the Union of Local Authorities of the
Philippines. The transparency measures included in the Mining EO are two-fold (Ibid):
1. Direct the various agencies and government units involved in aspects of mining to
create a central interagency information and processing center for all
applications, processes, and other information related to mining and minerals.
This is to streamline the permitting and application process and to facilitate the
process more easy to monitor by all governmental entities concerned;
2. Direct the creation of a central database of all mining, minerals, permits, and other
documents related to mining which includes mining and minerals-related maps.
The second transparency measure, harmonization with existing law, involves the review of
existing national and provincial law to reconcile all conflicts between the two. Under the Mining
EO, LGUs may impose reasonable limitations on mining activities in their territories if those
limitations are consistent with national laws. Harmonizing existing laws based on this provision
requires review of the many LGU ordinances to ban or limit mining activities. The process is
likely to be highly political due to the number and position of the citizens groups involved. What
constitutes a reasonable limitation is said to be debatable. The dispute between the national
government and LGUs concerning local autonomy and primacy over land within a particular
provinces territory will be a continuing issue until it is finally resolved by the Philippine Supreme
Court. The business mechanisms set forth in the Mining EO are the development of mineral
reservations, the institution of a public bidding process, and the development of downstream
industries related to mining. The Mining EO provides for the establishment of mineral
reservations with an eye toward sustainable growth in the mining sector. Under this program,
areas rich in mineral potential will be set aside for future development, so that the industry will
continue to grow in a sustainable way. This ensures the availability of resources to maintain
existing investors and to attract new ones.
Executive Order No 79 (EO 79) was signed on 9 July 2012 to improve the alignment of the
Philippines national and regional interests with those of the mining industry through the
updating of key policies, including but not limited to the following:
Improve transparency of the mining industry, the fiscal return to the government
from all future projects, primarily through increased royalty payments, as well as
the return and timing of financial benefits to local governments;
Tighten controls on illegal mining such as banning the use of mercury and restrict
legitimate small scale mining activities to gold, silver and chromite;
Ensure that mining is not allowed on designated key tourist areas and prime
agriculture lands; and
Enforce strict environmental controls.
The Mining EOs new downstream development mandate underscores that the need for the
country to invest in resources to develop industries downstream from mining, such as the further
extraction of minerals from mine waste rock and tailings, and to develop building materials from
wastes. This is envisioned to provide economic benefits such as creating jobs for local
communities and eventually cause diminution of environmental destruction. This is considered a

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Developing a Shared Agenda for Mining Development in the Philippines

major stride in establishing a legal framework towards a sustainable mining industry. It is


expected that Congress will cause the creation of a new revenue sharing system.
Harmonization of existing laws may challenge the courts to settle disputes. Given the varying
interests to be managed at the local, national, and international levels, the Administrations early
commitment to multilateral stakeholder engagement is paving the way to mineral industry
development. To quote Hicks, Acosta, et al., 2014:
What the Mining EO signals is that the Philippines has a clear goal in mind:
Find a sustainable way to use the countrys natural resources for the
economic development and benefit of its people, while also protecting their natural
environment. For natural resources practitioners worldwide, this is certainly one
to watchwe may well learn a lesson from the developed world about how to
maintain such a balance (Hicks, Acosta, et al., 2014:4).
Another Executive Order No. 147 was approved focused on Creating the Philippine Extractive
Industries Transparency Initiative (PH-EITI) on 26 November 2013. Through this promulgation,
the Philippine government has instituted the Philippine Extractive Industries Transparency
Initiative to ensure transparency and accountability in the extractive industries, specifically in the
way the government collects, and companies pay taxes from extractive industries. This is
deemed a positive commitment by the government to adopt good governance practices. As
embodied in Section 14 of the EO-79, the government commits to participate in the Extractive
Industries Transparency Initiative (EITI) that sets international standards for transparency and
accountability in the extractive industries and in government. Established in 2003, the EITI is a
global coalition of governments, companies and civil society collaborating to improve honest
and responsible management of revenues from natural resources, particularly oil, gas, metals
and minerals (Medusa Annual Report 2014).
It is important to note that as of August 28, 2014, the Philex Mining Corporation received an
order from the Mines and Geosciences Bureau (MGB) granting the full operations of its goldand-copper production at Padcal mine in Baguio after suspension arising from the 2012 tailingsleak accident. The said company reportedly complied with its environmental obligations:
payments of required fees, carrying out of remediation measures, submission of proof of safety
and integrity of its tailings dam (Blast Off, August 2014).
Moreover, the formulation of the Framework Agreement on the Bangsamoro (FAB) constitutes a
political agreement to resolve the perennial problem in the southern part of the country which is
another aspect to be considered in Mindanao. The FAB is an agreement between the
Government of the Philippines (GPH) and the Moro Islamic Liberation Front (MILF) aimed at
ending the armed conflict between government forces and the MILF. This embodies the
principles for the establishment of an autonomous political entity for the Bangsamoro cognizant
of their distinct history and aspirations. This has a historical backdrop in 1975 between the GPH
and the Moro National Liberation Front (MNLF) and in 1997, the Moro Islamic Liberation Front
(MILF) negotiated with the government. The establishment of the Bangsamoro, the new
autonomous political entity in Mindanao, will have the necessary powers to run its own
government, including the powers necessary for taxation, availment of funds and the creation of
wealth, and sharing of revenues from the utilization, development and exploitation of natural
resources within its territory that would include mining. As of this writing, the FAB is a subject of
heated debates in the House of Representatives and its passage remains uncertain.
Mining issues and concerns are compounding in the country characterized by persistent
challenges, particularly existing policies and laws that do not apparently represent the interests
of the citizenry. At the global level, Tujan and Guzman (2002) argue that the globalization of
mining has legitimized plunder of mineral resources as a path of neoliberalism or monopoly
capitalism. Underdevelopment is attributed to lack of investments, overspending of

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Developing a Shared Agenda for Mining Development in the Philippines

governments, and too much government regulations interfering with the market. Thus, economic
liberalization, privatization of public assets, and government deregulation of basic sectors are
prescribed remedies. From a progressive perspective, the state of the Philippine mining industry
can be gleaned in the following quote:
The Philippine mining industry, like the other industries of the Philippine
economy, is basically a combination of a minority of small-scale preindustrial enterprises dominated by a few large-scale corporate operations in the hands of few local compradors and their foreign cohorts. It
is exported yet import-dependent, condemning the country to backwardness
and plunder by foreign corporations and comprador-landlords, and feeding
the requirements of global economy (Tujan and Guzman, 2002:61).

SECTION C. REVIEW OF RELATED LITERATURES ON MINING IN THE


PHILIPPINES: A BRIEF SUMMARY
This section presents the studies conducted focused on mining issues and concerns. It
summarizes the issues and concerns surrounding mining that are cited in Appendix 1. The
specific responses of the civil society organizations, the government, community and the
company can be discerned in the same Appendix. To facilitate comprehension, they are
presented in a matrix with 8 columns and these are filled up relative to the presence of available
data per source. The issues bear the typology of environmental, socioeconomic, cultural, and
political or governance. The columns contain the following information:
1. General classification of issues and location: typology of issues and location/area
where the event/situation took place
2. Specific issues and concerns: where the summary of issues are spelled out
3. Response of the Government: actions done by the government
4. Response of the Civil Society Organizations (CSOs): actions done by CSOs (NGOs,
POs, religious and other sectors)
5. Response of the Community: actions done by the local community
6. Response of the Company: actions done by the mining industrial plant
7. Recommendations
8. Source of Data
While in general, the issues overlap, specific issues can be discerned. The studies are
predominantly coming from the academia mostly located in Mindanaoa place characterized by
culture diversity and also where the mineral resources abound. The issues are wide-ranging
some of which remain unresolved and compounding to this day.
A. Brief Summary of Mining Issues and Concerns from the Related Literature
There are adverse effects of mining on the livelihood of rural communities in the Philippines,
particularly in areas that rely on fishing and agriculture. In 1998, the Catholic Bishops'
Conference of the Philippines (CBCP) issued an official statement demanding the repeal of the
Mining Act. CBCP called on then President Arroyo government to cancel all concessions and
deny applications. Individual bishops have been crusading against opening mining to foreigners,
criticizing mining companies, and blaming the industry for deaths in natural disasters together
with nationalist organizations allied with BAYAN (Bagong Alyansa Makabayan), a leftist supraorganization that coordinates mass movements, who sought political position during elections.
The organization present themselves as protectors of the peasants, industrial workers,
indigenous peoples, and other marginalized groups rights (Vidal, 2005).

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Developing a Shared Agenda for Mining Development in the Philippines

The Roman Catholic Church in Mindanao was also opposed to the governments thrust of
attracting foreign investments and mining corporations on the following grounds: displacement
of the indigenous communities, militarization of areas where mining projects are located,
pervasive corruption impeding implementation of responsible mining in the Philippines, source
of materialism in society and degradation of the environment which, in turn, becomes livelihood
and power issues in the society (Holden & Jacobson, 2007).
Socioeconomic
In 2009, the Mindanawon Initiatives for Cultural Dialogue conducted case studies in the
following mining companies/areas: South Cotabato, Sultan Kudarat, Davao del Sur: copperGold Project of SMI-Xstrata, Siocon, Zamboanga del Norte: Polymetallic Project of TVI
Resource Development, Bayug, Zamboanga del Sur: TVIs exploration project, Claver, Surigao
del Norte: Nickel Project of Taganito Mining Corporation and Diwalwal, Monkayo, Compostela
Valley: Small-Scale Mining Operations. The residents claimed that the presence of the mining
companies triggered social disharmony in their areas due to differing notions of development
and scales of development. These also threaten the livelihood and life world of communities in
subsistence mode of production. The study intensively discussed and problematized mining.
Balanay, Raquel M., et al. (2014) on her study on Analyzing the Socioeconomic Impact of
Mining with Propensity Score Matching (PSM): Insights for Responsible Mining in Caraga
Region, Philippines, found out that the presence of mining operations brought about increased
borrowing, increase in investment for human capital buildup, as implied by the increase in food
and education expenditures and also increase in in-migration and the improvement of
accessibility through the provision of paved roads.
In Didipio, Nueva Vizcaya, issues on no proper compensation for the land use and bribery of
barangay officials for a favorable approval of mining operations (Climax Arimco Mining
Corporation) in the locality surfaced. To resolve the matter, the local Regional Development
Council (RDC) of Cagayan Valley issued a Resolution # 02-34-2000 rejecting the proposal of
CAMC to operate the Didipio Gold/Copper. TheLegal Right Center also responded by
conducting training, researches, and legal actions. Moreover, in October 11, 2011, DENR Sec
Heherson Alvarez issued a Notice of Suspension of Exploration Activities to CAMC on the
following grounds: 1) that the project has allegedly not secured Social Acceptability; 2) That the
Project is located inside the Addalam River Watershed. 30 members of Association of Barangay
Captains of Kasibu, Nueva Vizcaya, representing all 30 barangays of the municipality, also
signed a joint resolution Requesting the Sangguniang Bayan Members Not to Endorse the
Didipio Gold/Copper Mining Project of CAMC and to spare the entire municipality from any
mining application. The entire Kasibu Municipal Council issued Resolution 156 series 2002
denying the Request of the Sangguniang Barangay of Didipio, Nueva Vizcaya for the
Endorsement of the proposed Didipio Gold/Copper Project of Climax Arimco Mining
Corporation.
There is also a continued local resistance by the Subanen and non-Subanen residents as well
as neighboring municipalities in opposing the mining activities at Canatuan, Siocon. In fact, the
municipal government of Siocon and Barangay Tabayo in the past continued to oppose the
mining operation of the company while the provincial government was then fully supporting the
TVI Resources mining project (Vidal, 2005).
The Independent Mining Consultants in 2012 prepared a technical report in pursuant to National
Instrument 43-101 of The Canadian Securities Administrators for Ratel Gold Limited and
Russell Mining & Minerals, Inc. Possible socioeconomic implications were foreseen in
Mindanao. For instance, subsistence farming in the mine facility areas would be eliminated.

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Developing a Shared Agenda for Mining Development in the Philippines

Temporary disruptions would occur in the normal community life during the construction phase
due to influx of construction tradesmen. The King-King operations plan could potentially entail
usage of a large amount of water and water consumption and rights could become a significant
permitting issue. In response, it was recommended that the company will conduct preliminary
mitigation measures through progressive rehabilitation/restoration of areas directed towards
meeting stakeholder, legislative, and corporate requirements.
Environment
Literature has also documented the detrimental effects of mining activity to the environment.
The technical report of the Independent Mining Consultants, Inc. (2006) presented potential
effects of the mining industry to water resources. First, a potential hydrology and water quality
impact, specifically generation of acid mine drainage, siltation of surface waters and changes in
hydrology. It will have potential ecological impacts such that large acreages of land would be
affected by the mine operation, particularly by the open pit, non-ore material and low grade ore
management facilities and tailing management facility.
Upstream inhabitants of Barangays Tumpagon, Tuburan and Pagatpat in Cagayan de Oro City
could no longer wash clothes in the river due to muddy water. It is said that though government
issued permits to small- scale mining operators, there is no government monitoring and
supervision over the mining and quarrying activities in the area. (Sealza, 2013).
In Rapu-Rapu, Albay, large fish kills occurred. Fish and water were contaminated with mercury
and cyanide due to a tailing spill from LFT mining. This affected the fisher folks as sales of fish
plummeted after residents stopped buying marine products. Because of this, local officials,
fisher folks, NGOs, and church workers staged a fluvial rally to oppose the Lafayette
Philippines, Inc. (LPI) operation. In addition, DENR Secretary Michael Defensor signed a Cease
& Desist Order against LPI and levied a fine of approximately US$200,000. President Arroyo
assigned the University of the Philippines to do an independent study and formed an
independent commission headed by Bishop Bastes to assess the overall situation with regard to
the resumption of LPIs mining operation. Despite UP dispelling the fear of remaining mercury
and cyanide in fish and water, the commission held for the permanent closure of the mining
(Stark, 2006).
The overflow of Philexs silt dam due to heavy rain caused pollution of the Murcielagos Bay. The
affected fishing dependent communities in Lipay, Zamboanga del Norte complained to the
government and called upon the DENR to stop the Philex mining operation. The DENR ordered
Philex to create a monitoring team as part of its Environment Compliance due to mercury and
cyanide pollution, DENR suspended the mining operation of Philex (Goodland Wicks, 2008)
In the undergraduate thesis conducted by Espenido (2013), it was found out that the presence
of Taganito Mining Corporation has not radically altered the agricultural production of the
farmers in the area since the mining site was located far from the farmlands, albeit fishing
activity was affected. During heavy rains and storms, laterite soil creates landslides that cause
devastation to farmlands and the coastal areas become muddy due to pollution that the mining
companies produce. Some coastal rice fields and coco land areas also were converted into
mine tailing ponds.
In Tubay, Agusan del Norte, fishes that were used to be seen near the shore are now farther
away from the shore because of disturbances done by the ships present, and because of the
slit. This further resulted to an increase in gasoline use since fisherfolks have to travel farther.
The mining company also threw their wastes, especially their motor oil into the sea that affected
the fishes. Thus, lesser catch resulted to lesser income (Gomez, [Link]. 2012).

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Developing a Shared Agenda for Mining Development in the Philippines

Health
Tboli miners of a small-scale mining in South Cotabato suffered from health issues due to poor
working condition while most women suffer respiratory diseases and back pain in Benguetsmall-scale mining. The local government enacted local ordinances to rehabilitate the areas
damaged by mining activities, Ordinance No. 4, Series 2010, E.O No. 12, Res No. 144, series of
2003 while the Provincial Mining Regulatory Board (PMRB) enforces the total ban of all
hydraulic mining, panning and amalgamation operations (AFRIM, 2012).
Juvita (1982) cited by Mc Andrew (1999), found out that tuberculosis and other lung diseases
are the common illnesses of miners in the Atlas Consolidated Mining in Toledo, Cebu. There are
also rare cases of gas poisoning and eye effects as the Atlas workers undergo a physical
examination hospital each year.
Governance
Residents of Compostella Valley claimed that there was no serious monitoring done by the
Local Government Unit and National Government regarding the mercury pollution. (Israel
&Asirot, 2002)
A No-Go-Zone policy for the extraction of mineral and other natural resources in the Philippines
has long been put forward by different development sectors with the hope of rationalizing the
use of the last remaining natural resources of the nations patrimony, and finding the link
between development and the exhaustion (or non-exhaustion) of the nations resources. There
are 4 major areas to consider in deciding whether an area may be considered a No-Go Zone or
a Go-Zone. These include 1) Fragile and Non- Fragile Ecosystems: Irreversibility of the effects
on fragile ecosystems some conservation units such as national parks, biosphere reserves and
world heritage sites; 2) Food Security: Increasing the threat to life through depletion of water
and food resources in areas of marginable resources; 3) Disaster Risk: Increasing the
magnitude and exposure of poor communities to disaster risk; and 4) Intensified Conflict:
Increasing the exposure of communities and employees to the risks of armed conflicts and
increase the number unresolved rights abuse that worsens the situation of impunity (Alyansa
Tigil Mina, 2012).
The Indigenous Peoples (IPs)
Due to the entry of logging and mining companies in the locality, the Mamanua suffered severe
poverty and deprivation in their ancestral domain. In Sitio Punta Naga, Cagdianao, Claver,
Surigao del Norte, the Mamanua were affected after their resettlement in the areas of economy,
politics, religion, language and education and health aspect. They could no longer hunt due to
the noise and disturbances created by the mining companies which made the wild animals
moved from their area. Due to the mining activities, the soil became infertile and the Mamanua
could no longer plant in the barren areas. In terms of the moisture soil, it was now parched due
to the plants that were pulled out because of the mining activities. The quality of the air was also
affected with the air becoming warm and dusty. As part of their Corporate Social Responsibility,
the mining company provided concrete houses for the resettled Mamanua. Basic facilities such
as school building, church building, and health center were built. Extended basic services were
also facilitated such as water source, electricity & power source, educational opportunities
(Dantes, et al., 2013)
Since 1989, the Subanon of Mt. Canatuan has been protesting against mining on the mountain.
However, despite the inalienable rights of the Subanon who have tilled and lived on the land for
centuries, the Philippine government has continually chosen to side with Toronto Ventures Inc,

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Developing a Shared Agenda for Mining Development in the Philippines

Resource Development. The mining operation of TVIRD evicted more than 300 families,
threatened farmlands and water resources of Siocon and desecrated Mt. Canatuan, the
Subanons sacred mountain. It is noteworthy that it is not only the Subanon people and the
environment that were affected by the mining operation, but also people in the downstream
communities. Since the start of the mining operations, there was a slow death of rivers and sea
in the area. (Akiatan, 2008).
Aside from the environmental impacts, there are also social and cultural issues involving
indigenous peoples. These issues tend to fall into the following interlinked areas: economic,
women and mining, internal conflict, cultural and spiritual impacts, and human rights violations
(Anongos, [Link]. 2012).
Displacement and violence against indigenous communities due to mining operations and
expansion affected the Banwaon Evacuees of Balit, San Luis, Agusan del Sur. There were 14
who experienced forcible evacuation, 2 victims of extrajudicial killing, 3 died in the evacuation
center, 13 cases of violations of childrens rights, 31 were threatened, harassed and intimidated,
1 restricted with the freedom of movement, 1 gun touting, 3 evacuees whose properties were
destroyed, 1 violation of domicile, 12 use of public facilities for military purpose, 2 civilians were
used as guides or shields and 1 fake surrender. Led by the nuns of the Rural Missionaries of the
Philippines, a contingent of two hundred supporters braved the long travel from various points of
the country - Davao, Iligan, Cagayan de Oro and even as far as Manila, to converge in Balit last
March 8-10, 2015 in order to unite with more than a thousand Banwaons displaced from the
intensifying militarization of their communities. The International Solidarity Mission confirmed
and documented the rights violations and undertook psycho-social interventions and established
a health clinic during the two-day affair. After months of encamping in their evacuation center
where scores have died and got sick, the Banwaon Bakwits of Balit, San Luis, Agusan del Sur
was able to return home last March 18, 2015 as military officials promised to pull out from
civilian facilities and cease camping near populated areas. ([Link]
Recommendations focused on Mining:
Political/Governance
1. Demonstrate that it adheres to its own laws and international mining best practices and
standards by immediately canceling all current mining applications that causes major
environmental damage to critical watersheds, eco-systems, agriculture or fisheries and
result in social disruption. Evidence of serious inadequacies in consultation and consent
processes abound.
2. Ensure regulation and redress
3. Establish an independent mining review body involving civil society and affected
communities, with the power to recommend cancellation of mining licenses.
4. Provide independent technical and legal advice and support to communities and IPs
throughout the mining application phase in both the Free Prior Informed Consent and ESIA
processes and when licenses are granted.
5. Upgrade and restructure the DENR to focus exclusively on the protection and development
of the environment and renewable natural resources.
6. Strengthen legal frameworks for sustainable development by empowering government and
departments, covering health agriculture and tourism, to enforce standards and take
appropriate action where mining projects threaten national strategy for sustainable
development.
7. Establish an inter-departmental coordinating committee to approve all extractive industry
projects. To ensure transparency and accountability civil society participation at committee
level would be required.

28

Developing a Shared Agenda for Mining Development in the Philippines

8. Empower local communities and civil society to explore and pursue all avenues available
within the law, at local national and international levels, to register their concerns and
aspirations & seek redress for wrongs caused by mining operations.
9. Sign up to the Extractive Industry Transparency Initiative (EITI) and publish details of all
payments, taxes and royalties made by mining companies. Implement EITI in accordance
with the EITI criteria, ensuring participation by self-selected representatives of civil society at
each stage of the process.
International Governance
1. Government should establish binding frameworks to regulate mining, and ensure access to
courts and other effective mechanisms of redress w/in the home countries of transnational
mining companies and the financial institutions that support them.
2. World Bank should assist with the countrys sustainable development by providing technical
and financial support for the protection and development of renewable resources,
sustainable activities and poverty reduction programs and support Strategy Environmental
Appraisals (SEAs) of the key islands and regions affected by mining.
Human Rights Issues
1. Address human rights violations.
2. Implement laws to protect communities that necessitate independent monitoring of the
processes of determining FPIC & community consent.
3. Ratification of international treaties.
Environmental concern & sustainable development
1. Protect biodiversity and apply the Precautionary Principle to any mining or other high impact
development to ensure that they only proceed where there will not be significant negative
impact on the lives of the pre-existing population, the environment or the ability of future
generations to meet their needs.
2. DENR should conduct regional Strategic Environmental Appraisals (SEAs) with independent
technical support & effective participation of civil society.
Economic/Financing
1. Mining companies and the investor community are urged to exercise extreme caution in
funding any mining operations in the Philippines until effective structures, laws & controls
are in place to protect the environment and human rights.
2. Financial institutions are encouraged to adopt and adhere to the Equator Principles, and
governments in the EU and other major investor countries to ensure that public money is not
invested in ways which support irresponsible or damaging mining projects.
3. Adequate bonds commensurate with the potential impact of mining should be required to
fully cover potential damage and end-of-life environmental and social costs.

SECTION D. FOCUS GROUP DISCUSSION (FGD) OUTPUTS AMONG


STAKEHOLDERS (2013 2014, Manila & Davao)
D.1. FGD Outputs (Shangrila, Manila conducted on April 3-5, 2013)
About 74 participants convened for this multi-stakeholder gathering comprising of selected
government agencies, mining companies to share their corporate social responsibility,
representatives from the local government units, non-government organizations, indigenous
peoples and academia. The theme adopted was Responsible Mineral Industry through
Education and Research. The FGDs in 3 clusters were preceded by a roundtable discussion
where visioning was done to generate ideas and mindsets to constitute the goals and
objectives. The shared practical vision by 2018 comprises the following: transgenerational and

29

Developing a Shared Agenda for Mining Development in the Philippines

empowered community, equitable sharing of responsibilities and improved returns, clean and
healthy environment, responsible and functional legal and institutional framework for mining,
and collaborative research and education among stakeholders.
The specific ideas to define the key concepts generated from the participants are presented
below. These partly clarify the meaning of the term:
Transgenerational and Empowered Community
A community that benefits from collaboration of all stakeholders
Empowered and developed affected communities
Empowered/ enlightened stakeholders
Transgenerational sustainable mining communities
Protection, respect for cultural heritage
Equitable Sharing of Responsibilities and Improved Returns
Improved economic returns
A community that has equitable sharing of resources
Transgenerational sustainable mining communities
Developed value adding activities/ downstream industries
Clean and Healthy Environment
Transgenerational sustainable mining communities
Healthy and responsible community
Clean air, water and soil
Responsible and Functional Legal and Institutional Framework for Mining
Revision of Mining Act
Credible and functional institutions
Collaborative Research and Education among Stakeholders
Research collaboration of academia, LGU, and industry
Research and education collaboration among stakeholders
Progressive collaborative research
Collaborative monitoring and evaluation team
When asked, what should be done to achieve the practical vision, the identified strategies
include the institutionalization of mineral education, reforming the policies through research,
intensifying information education campaign, developing comprehensive and progressive
capacity building program, and strengthening multi-sectoral participation. This necessitates a
structure and system to effectively carry out these strategies.
Table 3. Suggested mechanisms/strategies to achieve the shared practical vision, April 3-5, 2014, Shangrila, Hotel, Manila

What should be done to achieve the shared practical vision?


Institutionalization
of mineral
education and
research (1)

Reforming the
Policies Through
Research (2a)

Intensifying
Information
Education
Campaign (2b)

Establish an institute
specifically for
mineral industry
research

Review the existing


permitting and
monitoring

Conduct massive
Social
info drive to the
Capacity
affected communities enhancement and
as to the benefits of
training for
mining
stakeholders

Consortium of
stakeholders for
research monitoring
conduct an
inventory of
complete research

Review the existing


policies and
procedures
Conduct Needs
Assessment to the
community

Environment Cluster
Priorities: Innovative
and Practical
Initiatives

30

Developing
Comprehensive
and Progressive
Capacity Building
Program (3a)

Environment Cluster
Priorities: Innovative
and Practical
Initiatives

Strengthening MultiSectoral Participation


(3b)

Strengthen multisectoral collaboration


thru joint undertakings
Strengthen linkages
with multi-stakeholders
Social
Indigenized
development
intervention

Developing a Shared Agenda for Mining Development in the Philippines

What should be done to achieve the shared practical vision?


Institutionalization
of mineral
education and
research (1)

Reforming the
Policies Through
Research (2a)

literatures
Environment Cluster
Priorities: Innovative
and Practical
Initiatives
Create accrediting
body for mining
industries
Mobilizing adequate
resources for
mineral research
Lobby for adequate
budget for research
on mineral industry

Recommend for the


amendment of
pertinent provisions
of the mining
policies (regulatory
and fiscal)
Develop and
recommend
performance
evaluation standard
and mechanism
based on
international best
practice
Formulate and
establish valuation
process
incorporating costbenefit of all
associated impacts

Intensifying
Information
Education
Campaign (2b)

Intensify the
advocacy on
responsible
mineral
management:
mine
rehabilitation
criteria
Social
1. Research and
development
agenda
- Baseline and
profiling
- IP women,
children, IPs
welfare
- Social Impact
Assessment
- Conflict
transformation
- Monitoring and
Evaluation

Developing
Comprehensive
and Progressive
Capacity Building
Program (3a)

Enhance capacity
building efforts in
all levels of
stakeholders
(undergrad, grad,
short trainings)
Developing a
comprehensive and
progressive capacity
building program

Strengthening MultiSectoral Participation


(3b)

IEC on responsible
mining
Conservation of
Indigenous
Knowledge System
and Practices (IKSP)
Environment Cluster
Priorities: Innovative
and Practical Initiatives
Increased
community
engagement with
the academia and
the industry

Environment Cluster
Priorities: Innovative
and Practical
Initiatives
Establish
collaborative
research and
extension activities
(academia, industry,
stakeholders)

The focus group discussion was divided into 3 clusters, namely: political/governance and
economic sector, social sector, and environment cluster. The first question posed for the 3
groups involves the current reality assessment focus question: What are the specific problems /
gaps/issues and concerns related to the existing practices in the management of mineral
resources? This is followed by the formulation of the problem tree analysis to determine the
root causes of the issues. The last focus question involves the suggested strategies and
initiatives to address the identified issues and concerns with this focus question: What
innovative and practical initiatives need to be undertaken in order to address the contradictions
and realize the visions of sustainable mining communities? The following are the results of the
sessions.
Cluster 1: Political/Governance and Economic Sector

31

Developing a Shared Agenda for Mining Development in the Philippines

The responses of this cluster to current reality assessment focus question on the specific
problems/ gaps/ issues and concerns relating to the existing practices in the extraction of
mineral resources are as follows:
1. Weak Revenue Incentive and Regulatory System
Inequitable minimum return and proceeds to the government
No adequate and comprehensive guidelines and standards on closure rehabilitation plan
Absence of performance evaluation standards
No comprehensive valuation of the total coast of a mining activity
2. Weak capability-building program for the community
No trainings available for the communities
Lack of government, PO, NGOs participation in providing exposure to trainings/capacity
building
Trainings are not responsive to the available skills/needs in the community
3. Weak Check and balance system
Malpractices of some large-scale mining companies
Malpractices of most small-scale mining.
Absence /limited participation of truly independent multi-sectoral body
Perceived lack of transparency in the permitting process.
Lack of proper info dissemination leading to negative image
4. Weak enforcement of industry policies and laws
International best practices not strictly implemented
Inadequate regulation of small-scale mining
5. Lack of comprehensive industry-based research
Lack of environmental baseline data
Lack of incentive to conduct research
Lack of initiative in conducting research
Lack of funds for research
Insufficient funding for research and development
Lack of baseline date
Lack of linkage and collaboration between and among government, industry and
academia
Lack of coordination between industry and academia and priority research areas
In regard to the problem tree analysis, these are the identified causes and effects per
issue/concern:
1. Weak revenue incentive and regulatory system
Effect: Inequitable minimum return and proceeds to the government
Causes: No adequate and comprehensive guidelines and standards on closure
rehabilitation plan; absence of performance evaluation standards and no
comprehensive valuation of the total coast of a mining activity
2. Weak capability-building program for the community
Effect: No trainings available for the communities
Causes: Lack of government, PO, NGOs participation in providing exposure to
trainings/capacity building; trainings are not responsive to the available
skills/needs in the community
3. Weak check and balance system
Effects: Malpractices of some large-scale mining companies; malpractices of most
small-scale mining.

32

Developing a Shared Agenda for Mining Development in the Philippines

Causes: Absence/limited participation of truly independent multi-sectoral body;


perceived lack of transparency in the permitting process, lack of proper info
dissemination leading to negative image
4. Weak enforcement of industry policies and laws
Effect: international best practices not strictly implemented
Cause: Inadequate regulation of small-scale mining
5. Lack of comprehensive industry-based research
Effect: Lack of environmental baseline data
Causes: Lack of incentive to conduct research; Lack of initiative in conducting
research; lack of technical competent personnel; lack of linkage and
collaboration between and among govt. industry, and academia; lack of funds
for research; insufficient funding for research and development; lack of
baseline date; Lack of coordination between industry and academia and
priority research areas
Strategic directions: The innovative and practical initiatives to be undertaken in order to address
the contradictions and realize the visions of sustainable mining communities comprise the
following:
1. Intensify information education campaign: conduct massive info drive to the affected
communities as to the benefits of mining
2. Strengthen multi-sectoral participation: strengthen multi-sectoral collaboration through
joint
research
undertakings;
strengthen
linkages
with
multi-stakeholder
Institutionalization of mineral Industry research; establish institute specifically for mineral
research and studies
3. Reforming the policies through research: Review the existing permitting and monitoring
procedures; review the existing policies and regulations; conduct needs assessment to the
community; recommend for the amendment of pertinent provisions of the mining policies
(regulatory and fiscal); develop and recommend performance evaluation standards and
mechanism based on international best practices; formulate and establish valuation process
incorporating cost-benefit of all associated impacts; and develop a comprehensive and
progressive capacity building program.
Cluster 2: Social Dimension
The specific issues/concerns identified in the social cluster involve the Disharmony between
national, local, and traditional policies. Lack of agenda for R&D, Inadequate and inappropriate
capacity enhancement training, and non-Indigenized development interventions.
Table 4. Summary Table of the Social Dimension Output, April 3-5, 2014, Shangrila, Hotel, Manila

Disharmony
between national,
local, traditional
policies

Conflict between
national and local
policies
No transparency

Lack of R and D
Agenda

Inadequate and
inappropriate capacity
enhancement training

Non-Indigenized development
interventions

Baseline data on
small-scale mining

IP, traditional/legal
leadership structure

Misconceptions/misinformation

Profiling of smallscale mining

Outcome-based
monitoring and
evaluation

Preservation of culture and


institutions

33

Developing a Shared Agenda for Mining Development in the Philippines

Taxes of mining
companies vis-avis community
development
Equitable sharing

Examine/ review
Mining Act and
related policies
Policies relations to
child labor on
small-scale mining

Social profiling

Monitoring of SDP

Involvement of Ips not ususally


recognized

Social impact
assessment of
mining
Qualitative study on
mining

Skills and livelihood


training

Contingency plans are not in


place a lot of times

Accountability of local
leaders and managing
benefits on mining

Weakening of sociopolitical structures

Enhancement of
Technical Capabilities
of members of MMT
Lack of conlict
management resolution
capacities
Contextual mechanisms
of developing
community self-relance
Social preparations

Enhancement of
partnership/engagement between
company and communities for
development
Collaborative planning for mining
closure rehabilitation

Health problems in
mining sites
Conflict resolution

Holsistic view of mining

Lack of information and


education campaign

The problem tree to explain the possible cause and effects are presented in a diagram below
where disharmony or conflict among various stakeholders occupy the center stage arising from
poverty and poor governance structure. The possible causes identified include the flawed
community development models, unregulated mining, misconceptions of mining, gender
inequality, deprivation of ancestral rights and FPIC (free and prior informed consent (FPIC),
sociopolitical unrest, lack of access to basic social services, and the like.

Figure 2. Problem tree showing the political and economic causes and effects of mining

Below are the strategies identified to address the above issues/concerns:


1. Research and development agenda:baseline and profiling, IP women, children, IPs
welfare, social impact assessment,
conflict transformation, and monitoring and
evaluation
2. Capacity enhancement and trainings for stakeholders: alternative livelihood skills
training, MMT, governance (IP, MLGU, BLGU leadership, accountability), skills on
conflict transformation, gender and development

34

Developing a Shared Agenda for Mining Development in the Philippines

3. Indigenized development interventions: IEC on responsible mining, conservation of


Indigenous Knowledge System and Practices (IKSP), collaborative and participatory
planning and implementation of development activities
4. Consortium of stakeholders for research and monitoring
Environment Cluster
Moreover, the environment cluster shared the understanding that in the management of mineral
resources, management means exploration, development, utilization and final mine
rehabilitation.
The specific gaps/issues on the existing practices in the management of mineral resources bear
the following:
Water: indifference to water pollution management options and polluted/contaminated water
bodies
Soil: stability problems, pH level; metal contamination lack of fertility
Air: dust accumulation, stack gas/ flue gas emission, particulate matter
Biodiversity: habitat disturbance, species conservation, biodiversity loss, identification of local
tolerant flora and fauna, and lack of adequate baseline data
The gaps/issues on the existing practices in the management of mineral resources involve
1. Lack of Final Mine Rehabilitation Completion Criteria
2. Institutional Framework on the Enforcement of Laws and Regulations: EMB, MGB,
PAWB, LGU
3. Identification of best practices on mineral management
4. Capacity Building: human resource harnessing, reliance on foreign technologies;
environmental monitoring capacity of the IP and the communities; lack of technical
knowledge on environmental issues; and infrastructure for small scale miners
5. Lack of environment-friendly technology in all stages of mine management
6. Need to create a shared understanding on responsible mineral management among
stakeholders (academia, industry, community, government, IP etc.)
7. Lack of knowledge of alternative land use after life of mines
The hindrances towards the realization of the vision are due to the prevalence of these
gaps/issues, lack of values across stakeholders, lack of funds and mechanisms
The innovative and practical initiatives to address the above-mentioned issues/concerns are as
follows:
a. Address the Gaps
b. Enhance Capacity Building Efforts
c. Establish Collaborative Research and Extension Activities
d. Intensify the advocacy on responsible mineral management
e. Increased community engagement with the academia and the industry
f. Create accrediting body for mining
g. Enhance the capacity of small scale miners to do environment-friendly mineral
management

35

Developing a Shared Agenda for Mining Development in the Philippines

D.2. FGD Outputs in Davao and Manila (June 2014 and September 2014)

Davao City, Mindanao


FGD on Responsible Mining
Davao City, June 23, 2014
Focus Question 1: Based on your experience, what do you think are the issues and concerns of
mining industry in your locality? What are the possible underlying causes?
Table 5. FGD Outputs on Responsible Mining Issues and Concerns, June 23, 2014

Social Issue

Environmental Issue

Political Issue

Economic Issue

1. Myopic FPIC
(procurement should
involve other
stakeholders)

1. Environment

1. Corruption in government
is the key to poor mining
standard in the Philippines

1. Why
communities
where there is
extensive
mining activity
are the poorest

2. Mining companies
lacking social
responsibility

2. Water quality and


quantity

2. Collusion between mining


company and government
agency

2. Economic
disparity

2. Government to
sincerely implement
laws

3. Negative impact on
the environment

3. Human rights violations

3. Capacity (e.g.
processing)

4. Small-scale miners are


from Luzon. This
resulted to
displacement of the
original settlers

4. Killing of fish marine


life

4. Injustice and Bad


governance

4. Food security

5. No consultation among 5. Negative impact to


stakeholders before the
water supply
exploration stage of the
mining corporation

4. Deceptive IEC
(government and mining
companies)

6. Killing of IPs and IKSP

6. Loss of biodiversity/
wildlife

5. Conflicting roles of MBG


as regulator and promoter
of mining operations

7. Conflict over claims of


potential tenements

7. Siltation of rivers

6. The Bangsa Moro GPHMoro negotiations

8. Engineered consent
process among affected
communities

7. Mining Act of 1995 is not


friendly to the poor

9. Division among clans


(divisive tactics by the
corporation)

8. Unregulated operation of
small-scale mining

9. Sharing agreement politics


10. PLGU-MLGU issuance of
quarry permit

36

Developing a Shared Agenda for Mining Development in the Philippines

Social Issue

Environmental Issue

Political Issue

Economic Issue

11. Government structural


uncertainty and abuse of
authority
12. Right-based approach

Focus Question 2: What concrete strategies or mechanisms do you suggest to effectively


address them? Who should take the lead in policy formulation and
implementation?
Environmental
Follow the watershed continuum
No Go Mining Zones such as critical watershed, geo-hazard areas, small island area,
agrarian area, etc
Political/Governance
Process of ECC should be done prior to operation, not after the exploration
Genuine, democratic consultation
Sincerity of the government in solving our problem, i.e. peace process
International government, LGU, NGO should honestly, sincerity and transparency
implement the laws in favor of the Filipino people
Option of Subanen to join the Bangsa Moro government, in case
Grant self-determining power to the Bangsa Moro
Transparency
Accountability
Participation
Address self-determination
Multi-sectoral mineral management council encourage participatory localized decision
making process
Provide long term solutions and not palliative and selective
Reform the benefits allocation from mining operations in favor of communities and
government
Stop all FTAA, etc (CC-GW)
Review of IPRA and RA 7942 vis--vis IPs /Moro struggle for right to Ancestral Domain
and self-determination
Implement a mining regulation mechanism that includes CSOs, academia, affected
communities and independent entities
Delineate mining regulation and mining investment promotions
Strong determination of implementing laws (regarding mining either small-scale or bigscale on the side of the government)
Respect and recognize IKSP
AMMB be enacted
Genuine FPIC

FGD on Responsible Mining


Davao City, June 24, 2014
Focus Question 1: Based on your experience, what do you think are the issues and concerns of
mining industry in your locality? What are the possible underlying causes?

37

Developing a Shared Agenda for Mining Development in the Philippines

Table 6. FGD Outputs on Responsible Mining Issues and Concerns, June 24, 2014

Social Issue

Few schools/universities
offering geo-mining

Issues on social acceptability


due to (negative perception)

Disrespect to the MOA


signed between IPs and
mining companies during
FPIC process
Lack of proper information
dissemination about
responsible mining (lack of
government initiative)
Lack of information about
social and economic benefits
of responsible mining in land
communities
Vulnerable security
situation in mining
areas (armed groups)
Land use conflict

Environmental
Issue
Water, air and land
pollution
-Mining processing
and operation
Environmental
pollution due to
massive illegal
miners
-weak regulation
Solid waste
disposal

Rehabilitation of
mining industry
-lack of technical
capability
Water
contamination/
treatment issues
-lack of technical
capability

Political/Governance

Economic

Continuous conflict between local


and national policies (regulatory
problems)
Security (economic problem)

No clear- cut policy in the


implementation and operation of
mining operation and not properly
understood by the local community
Entry permit extortion from armed
groups

Inconsistent policy-making (LGUnational govt functions not properly


delineated)

Sectoral representation of IPs on


area of operation
Illegal small scale mining activities
(lack of regulation by LGUs)
Distribution of royalty fees to a
certain group of IPs
Political intervention on contract of
mine operation
Non interest of the government in
promoting responsible mining
Disrespect of IP rights on the
prohibited area for mining
Continuous small- scale
malpractice/safety (non-adherence
to policy)
Unemployed IPs in the
communities
SDP not properly implemented
Absence of consultants
IEC/Consultations
Conflict between small-scale and
large- scale mining due to slow
approval of mining
permits/agreement

Focus Question 2: Strategic mechanism or concrete strategies suggested to effectively address


the issues
Political/Governance

Allow exploration to proceed and determine its final land use


Decentralization
Centralization in the approval of mining agreements/permits
Peace agreement is necessary or all out war
LGU compliance to RA 9003
Reduce the number of requirements and approval by regional office

38

Developing a Shared Agenda for Mining Development in the Philippines

Government should not rely on the IEC from the company alone
Not only work with the community but also with the church. (Government is not doing its
job in terms of IEC)
Go beyond layers of the tribe in reaching out the community for a real IEC
Dialogue at regional level to arrive at consensus building
Proper implementation/ harmonizing laws in the Philippines
Processing of mineral resources within the Philippines
NCIP independently monitors/evaluates social services of mining company
Fast-track in processing the permits (to avoid conflict between small-scale and largescale mining)

Sociocultural

Expand in the curriculum at the tertiary level to be responsive to mining industry, best
practices to change the negative image of mining
Understand the IP culture to prevent conflict between and among the tribes

Economic
Employment of locals/tribal leaders to negotiate with the NIPAS (security)

D.3. FGD Outputs in UP-National Engineering Center, Diliman


September 16, 2014
General Question: Is there a Future of Mining Industry in the Philippine Development?
FQ1: Based on your experience, what do you think are the issues and concerns of mining
industry in your locality? What are the possible underlying causes?
Issues and Concerns
Overarching Issues and Concerns
Why mine? Issue on who benefits of the extraction industry
Compared to other land uses, mining is the least beneficial to Filipinos
environmentally, socially and economically
Sociocultural
Lack of consent and social acceptability
Voices of those of who are not in power
Genuine engagement with the indigenous peoples (IPs)
Past legacy of the mining industry
Respect of indigenous peoples rights
Indigenous peoples self-determined development
Mining: for whom?
Sensitivity: respect for the rights of both IPs and non-IPs
Respect for the IPs culture, tradition and self-concept of development
Political
Human rights abuses and violations
Weak regulatory capacity
Free, prior informed consent (FPIC) process
Extra judicial killings
Governance issues as admitted by government (institutional capacity)
Land use conflicts (mining vs protected areas, mining vs. ancestral domains)
Plunder of national patrimony
Current mining framework is dependent on foreign technology and oriented towards
export of raw materials
Not geared towards national industrialization

39

Developing a Shared Agenda for Mining Development in the Philippines

Profit oriented
Human rights violations, killings, and militarization
Inter-generational justice
Transparency in the extractive industry (Some mining companies would not participate)

Environment
Environmental destruction (watersheds, biodiversity)
Mining means or methods result to loss of forests, and top soil, risk to water resources,
and acid mine drainage
Blindness to climate risks
Biodiversity areas are violated

Economic
Unfair sharing of proceeds
Lack of comprehensive economic valuation
Inadequate economic valuation (legal and economic) for mining industry
Inequitable distribution of costs and benefits in mining
Suggested Concrete Steps to Address Issues and Concerns:
Sociocultural
Mining companies should look into the ancestral domain management plan of the IPs
Access to information
Change mind set of mining companies
Contextualize local development agenda
Economic
Look at the cost-benefit (with and without mining)
Environmental
No comprehensive map (geo-hazard, protected areas, other uses overlaid)
Political/Governance
Before any mining proceeds, there should be backward and forward linkages for
maximum revenue
Proper implementation of the social acceptability process as part in obtaining
Environmental Impact Assessment (EIA)
Distinct government agency to monitor all environmental compliances
Government share should be open-ended
Disclosure of mining companies on the use of extracted resources
Nationalization of our resources (Peoples Mining Bill)
Implement EO 79, especially the no go zone
Scrap Mining Act of 1995
Only contractual agreement
Include funds for disasters and maintenance
The need for paradigm shift in international level in the fiscal management policy from
international competitiveness to cost-benefit analysis
D.4. FGD Outputs with Mining Executives, September 16,2014
Focus Group Discussion on Mining
September 16, 2014, Manila Polo Club, 4:10-5:30PM
The mining executives suggested that it would be better if the question is: Should there be a
mining industry in the Philippines instead of Is there a future of mining industry in the
Philippine development?

40

Developing a Shared Agenda for Mining Development in the Philippines

Issues Raised:

Taxation/ Sharing of resources

Wrong statistics that the industry is not doing well- lead to wrong policy decisions
Revenue sharing/ excise tax: Let it be functions of profitability, more money you take you
pay more; Government should look at it from the life of mine perspective

Mining companies were not involved/ not consulted in crafting the no go zones
No consultation in the issuance of permits
Structural issue involving policies and implementation
Invest in their community before you consider going in

Communication Issues that need to be clarified


Pro-mining is a political liability.
Mining could be a driver for economic development but there is no commitment and
Support from bureaucracy
Politically there should be cognizant of the realities of the industry.
There should be a desire for a real dialogue.
National govt should be a role model in regard to policies, but they are subverted
by
LGUs causing confusion. We dont know which one should prevail national or
local laws?
Willingness to learn about it
If you could share your discussion with the govt and us mining executives
Discussions with NGOs: you have to know their perceptions vs. reality
Reviewing operational mining areas necessitate- case studies
Communicating technical information

There should be a way for the academia to educate the government and the research data can
be used as basis for capacity building
The summary table of issues and concerns below is based on the multi-sectoral consultation
from concerned government agencies (e.g., MGB-DENR, NCIP), academia, non-religious
organizations, religious and business sector (mining company representatives) to the grassroots
comprising the indigenous peoples, small-scale miners, and the like from the capital city of the
country (Manila) to Davao in the southern part of the country. It is clear that there are persisting
environmental, socioeconomic, cultural and political/governance issues.
Summary Table of FGD Issues/Concerns:
Table 7. Summary of Issues and Concerns from the Focus Group Discussions (Manila and Davao)

Source of
Data

Environmental
Issues/Concerns

Socioeconomic
Issues/Concerns

Cultural
Issues/Concerns

Political Problems
Issues/Concerns

Shangri-la
RTD
April 3-5,
2013

Land, air & water


pollution

Lack of capacity
building in
harnessing
human resources

Lack of capacity
building for
environmental
monitoring for IPs and
the communities

Corruption

Habitat
disturbance

Lack of technical
knowledge on
environmental
issues and

Indigenized
development
interventions

Lack of final mine


rehabilitation criteria

41

Developing a Shared Agenda for Mining Development in the Philippines

Source of
Data

Environmental
Issues/Concerns

Biodiversity loss

Lack of baseline
information

Forest
degradation

Davao FGD
June 23-24,
2014

Socioeconomic
Issues/Concerns

Cultural
Issues/Concerns

infrastructure for
small scale
miners
Weak capability
building programs
for the community
Inadequate and
inappropriate
capacity
enhancement
training
Lack of adequate
baseline data

Political Problems
Issues/Concerns

Lack of R and D agenda

Existing gap on the


Institutional framework
on the enforcement of
laws and regulations:
EMB, MGB, PAWB, LGU
Lack of knowledge of
alternative land use after
life of mines
Weak revenue incentive
and regulatory system
Weak check and balance
system
Weak enforcement of
industry policies and
laws
Lack of comprehensive
industry-based research
Disharmony between
national, local, and
traditional policies
No consultation among
stakeholders before the
exploration stage of the
mining corporation

Loss of
biodiversity/
wildlife

Mining
companies
lacking
social
responsibility

Killing of IPs and loss


of Indigenous
Knowledge
Management System

Siltation of rivers

Why communities
where there is
extensive mining
activity are the
poorest

Division among clans


(divisive tactics by the
corporation)

Small-scale miners from


Luzon resulted to
displacement of the
original settlers

Negative impact
on water supply

Economic
disparity

Conflict over claims of


potential tenements

Land, air and


water pollution

Lack of food
security

Myopic FPIC
(procurement should
involve other
stakeholders)
Engineered consent
process among
affected communities

Lack of
solid
disposal

Few schools
offering geomining courses

proper
waste

Lack of technical
capability
for
rehabilitation
of
mining industry
Continuous small
scale
mining
malpractice/safety
(non-adherence
to policy)

Issues on social
acceptability due
to
(negative
perception)
Lack of proper
information
dissemination
about responsible
mining (lack of
government
initiative)
Lack
of
information about
social
and

42

Lack of respect to the


MOA signed between
IPs
and
mining
companies
during
FPIC process
Lack of sectoral
representation of IPs
on area of operation

Corruption in
government is the key to
poor mining standard in
the Philippines
Collusion between
mining company and
government agency

Human rights violations

Distribution of Royalty
Fees to a certain group
of IPs no equitable
sharing

Injustice and bad


governance

Disrespect to the rights


of IPs on the prohibited
area for mining

Deceptive Information
Education
Communication (IEC)

Developing a Shared Agenda for Mining Development in the Philippines

Source of
Data

Environmental
Issues/Concerns

Socioeconomic
Issues/Concerns
economic
benefits
of
responsible
mining in land
communities
SDP not properly
implemented

FGD, NEC UP
Diliman
September
16, 2014

Cultural
Issues/Concerns

(from the government


and mining companies)

Unemployed IPs in the


communities

Absence of
consultants
IEC/Consultations
Unfair sharing of Lack of consent and
proceeds
social acceptability

Environmental
destruction
(watersheds,
biodiversity)
Mining means or
methods result to
loss of forests, and
top soil, risk to
water
resources,

and acid mine


drainage

Blindness
climate risks

Biodiversity
areas
violated

Political Problems
Issues/Concerns

Lack
of Voices of those of who
comprehensive
are not in power
economic
valuation
Inadequate
economic
valuation
(legal
and economic) for
mining industry
to
Inequitable
Respect of indigenous
distribution
of peoples rights;
costs
and
Respect for the IPs
benefits in mining culture, tradition and
self-concept
of
development
Mining: for whom?
are
Indigenous
peoples
self-determined
development
Past legacy of the
mining industry
Sensitivity: respect for
the rights of both IPs
and non-IPs
Genuine engagement
with the indigenous
peoples (IPs)

Conflicting roles of MBG


as regulator and
promoter of mining
operations
The Bangsa Moro GPH
negotiations
Mining Act of 1995 is not
friendly to the poor

Unregulated operation of
small-scale mining

Sharing agreement
politics

PLGU-MLGU issuance
of quarry permit what
are the boundaries

Lack of rights-based
approach

Vulnerable security
situation in mining areas
(armed groups)
Land use conflict
Continuous
conflict
between
local
and
National
Policies
(regulatory problems)
No clear cut policy in the
implementation
and
operation
of
mining
operation and properly
understood by the local
community
Entry permit extortion
from armed groups
Political Intervention on
Contract
of
Mine

43

Developing a Shared Agenda for Mining Development in the Philippines

Source of
Data

Environmental
Issues/Concerns

FGD at Manila
Polo Club
Sept. 16,2014

Socioeconomic
Issues/Concerns

Cultural
Issues/Concerns

Political Problems
Issues/Concerns
Operation
Non interest of the
government in promoting
responsible mining
Conflict between smallscale and large scale
mining due to slow
approval
of
mining
permits/agreement
-Mining companies were
not involved/ not
consulted in crafting the
no go zones; in issuance
of permits

-Taxation/
Sharing of
resources
Revenue sharing/
excise tax

Wrong statistics
that the industry
is not doing welllead to wrong
policy decisions
Mining
companies were
not involved/ not
consulted in
crafting the no go
zones
No consultation in
the issuance of
permits
There should be
a desire for a real
dialogue

Structural issue involving


policies and
implementation

Communicating technical
information

Politically there should


be cognizant of the
realities of the industry.
National govt should be
putting a role model to
the policies, they are
subverted by LGUs. We
dont know which one
national or local laws?

Invest in their
community before
you consider
going in

SECTION E. KEY INFORMANT INTERVIEWS AMONG SELECTED GOVERNMENT


OFFICIALS AND OTHER SECTORS

Mining-Related Issues and Concerns from Key Informants (September 17, 2014)
Table 8 below presents the mining issues and concerns from key informant interviews
among selected government officials. Two officials are from the House of Representatives
while one represents one national government agency.

Table 8. Mining-Related Issues and Concerns from Key Informants Among Selected Govt.

Key informant
Key Informant 1

Issues and Concerns

Recommendations

Mining Issues

Mining activities are


unregulated, the income

44

More regulations should be


done by the executive

Developing a Shared Agenda for Mining Development in the Philippines

generated from which is not


registered, notwithstanding
environmental destructions

Governance

Key Informant 2

Local governments do not


have the teeth to enforce the
law

branch
Undertake research on
mining industry to inform
leaders and the general
public so as to dispel
ignorance about the mining
industry
Bills filed on Mineral Ore
Processing in the country
and Establishment of a
National Center for
Sustainable Mineral Industry

Mining Issues

Digging accidentally hit an


area that caused strong
water intrusion
Mountains becoming bald in
Placer, Claver
Nickel processing plant in
Taganito, Claver caused bad
smell and is subject to
investigation
The LGUs cannot get share
in
ones
term
as
congressman when (under
the law it has 40% share
under national government)
considering that this will take
a long period of time, about
2-3 years, for the national
treasury to plow back the
LGU share of funds.
The IPs are entitled to 1%
royalty share. In the case of
Taganito mining company in
Placer, the average amount
received by the IP group is
PhP100M per year. But this
apparently mainly goes only
to the leaders. The IP
lawyers allegedly benefit as
well. This is mandated and
appropriated by the national
government
and
the
services of the lawyer are
not necessary. It was also
posed that the IP community
remains poor. And the ails
and woes at the community
level are mounting. There
are even no medicines for
the constituents

Governance:

There is an impending bill


limited only to strategic
minerals such as nickel, iron,
copper,
chromite,
and
manganese. While there are
two processing plants for
nickel, what are exported
are the concentrates. While
the whole ore is exported,
only Nickel is charged. In
this case, the country is

45

While the company alleged


that this is no cause for alarm,
it calls for a scientific
endeavor and tie-up with the
academia
Mining is good if there is
compliance with regulation
and implementing bodies
strictly monitor
Organize a technical working
group, albeit this will take
time.
Equitable sharing of
resources. The problem in the
utilization of funds by the IPs
was mentioned as a problem
as there is distortion in use of
funds.
Guidelines necessary on fund
utilization, e.g.,how much will
go to health or education

Developing a Shared Agenda for Mining Development in the Philippines

shortchanged and not fully


benefitting from the mining
industry
Key Informant 3
Economic:
This pertains to government laws
on equitable sharing of mining
revenues. People want mining
but they seem hesitant because
they feel they do not get their fair
share or enough of what they are
supposed to get

Proposed a bill that will


address the need to craft a
new fiscal regime for mining.
It is in the proposal how much
is the government share for
the mining revenues.
FTAA and Mineral
Agreement:
1. MPSA
2. Joint venture: government has
to put its equity
3. Co-production: government
has to provide facilities and
get involved in expenditure.

On May 21-22, 2014, interviews were conducted by three MSU-IIT faculty of multidiscipline
among stakeholders in Siocon, Zamboanga del Norte, Mindanao. About 13 members of the
community from various sectors were interviewed to obtain a cross-section of the impact of the
TVI presence: one each representing the academia, business, cooperative, fisher folk
association, women sector, health worker, senior citizen, former mayor of the municipality,
former TVI employee, and two each from the Department of Environment and Natural
Resources (DENR) and religious sector. A more detailed description of their sociodemographic
profile is presented in Appendix 3.
Issues and concerns were generated from the multi-sectoral key informant interviews that are

categorized as environmental, socioeconomic, and cultural. Findings show both the negative
and positive positions. Note that some issues and concerns in this company are identified in the
review of related literature in earlier section. In the case of the environmental issues, 14.3%
registered the positively-inclined responses indicating no destructive effects and leaking/spilling
and that the company did rehabilitation efforts. But majority comprising 77.5% raised the
negative effects to the environment involving the damages done to the creek, occurrence of fish
kills, pollution/contamination of the water bodies, flooding, soil erosion, conversion of the
mangrove to fishponds. These are perceived to be due to the presence of the mining company
in the area.
Table 9. Environmental issues (Positive and Negative) Related to TVI in Siocon, May 21-22, 2014

Environmental issues

Freque
ncy

Perce
nt

POSITIVE
Nothing negative has
happened / At first negative
but after mine tour, we
learned they are not
destructive

Freque
ncy

Percen
t

NEGATIVE

7.1

Lomot creek plan was not


mitigated, prone to landslide,
disturbed by TVI

10.7

21.4

7.1

No experience in leaking or
spilling or skin diseases

3.6

Before 1999 operation,


bangus and prawn were
abundant but these were
destroyed/lost because of the
water or the extreme heat/
Fish kills / Suggestion to
autopsy the fish was not done
due to political reasons

They rehabilitated the open


pit, trees benching in the
mountain top

3.6

Water contamination pollution

46

Developing a Shared Agenda for Mining Development in the Philippines

Environmental issues

Freque
ncy

Perce
nt

POSITIVE

Freque
ncy

Percen
t

7.1

3.6

3.6

3.6

7.1

3.6

3.6

3.6

3.6

3.6

3.6

NEGATIVE
An entire rice field was now
gone / Siltation in the rice
fields
Flooding-cause is TVI
If TVI cannot maintain the
sulphide dam
Water in the river overflow
during flood
Before we used to drink the
water from the springs, but
now everyone buys mineral
water for drinking. The water
from the faucet becomes
brown when it rains. There
should be a close monitoring,
if there is no maintenance,
the water has a different color
and smell
Open pit mining prone to
flashflood, cause for flooding
in the municipality
Need to go further to the sea
to fish
Responsible mining is there
such a thing?
Mangrove converted to fish
pond
The river widened and there
was soil erosion of the
riverside
Mine rehabilitation fund not
sufficient
Total=28

14.3%

24

85.7%

In regard to the socioeconomic concerns, 44.4% appreciated the benefits that they derived from
the company as against 55.6% forwarding the weaknesses. Those who cited the disadvantages
underscored the community projects provided such as the fishing boats given to the Muslim
leaders for livelihood, computer projects donated to the schools, paints donated, local
employment to include the rebels, and other social development projects. However, more
opined that there was no significant impact of the company to the locality as gleaned in the
inability to sustain projects, mismatch of qualifications for local hiring, non-usage of the donated
bus, insufficient training, corruption of some local officials and TVI staff, and land tenure
problems.
Table 10. Socioeconomic issues (Positive and Negative) related to TVI, Siocon, May 21-22, 2014

Socioeconomic issues

Freque
ncy

Perce
nt

POSITIVE

There were fishing boats


worth 2.3 million provided, 2
for Muslim leaders livelihood

3.7

NEGATIVE
There was no significant effect of
the TVI presence in the
community, could not see the
impact to development in the
community / Not able to sustain
projects, these were organized
but not monitored

47

Frequ
ency

Percen
t

11.1

Developing a Shared Agenda for Mining Development in the Philippines

Socioeconomic issues

Freque
ncy

Perce
nt

Frequ
ency

Percen
t

7.4

3.7

14.8

Employment-qualification of
Siocon residents mismatch with
TVI, they promised to get from
Siocon rank and file

3.7

3.7

In Canatuan, the impact school


is not good, you cannot
differentiate between the impact
school and other schools, there
is a TVI bus but it is not used

3.7

3.7

Training provided was not


sufficient

3.7

3.7

Corruption of the Soriano, they


have a private hospital, store,
hotel, and lotto outlet

3.7

3.7

Excise tax, RPT, during the last


administration there was no
proper accounting

3.7

3.7

3.7

3.7

3.7

3.7

15

55.6%

POSITIVE
Occupational tax paid

3.7

Projects like computers in


school is good

3.7

Positive-employment,
increased the income in
Siocon. Lots of people
employed; Created
employment for the people ;
There was food in the home,
rubber project might sell,
might receive lands during
separation
All barangay were given
SDMP worth 300 thousand
pesos per year, the project
depends on the locality
We are an impact barangay in
Poblacion and they donated 2
gallons of paint
When TVI was still operating,
a lot of people would go to the
beach and the store would be
profitable
It was okay before because
they buy goods here, such as
fish, but not all goods are
brought here in Siocon
TVI employed the rebels

NEGATIVE
If TVI will close, the
municipalitys income will be
reduced, 1st class now maybe
reduced to 3rd class
They should prioritize the
community people for
employment, especially now
that the new owners of the mine
are Pangilinan and Villar

Corruption of some TVI staff


The LGU sometimes abuses the
TVI
Before we can take a bath at the
river, now afraid to take bath
because of chemicals
Regarding tenure of lands, they
promised a lot but there is no
clear commitment strategy of the
personnel assigned

Total=27

12

44.4%

The cultural issues culled from the key informants responses were characterized with more
negative issues. Of the 25 count, only two mentioned the funding for the womens livelihood and
social development programs, the rest raised the problems particularly affecting the Subanen
where the royalty funds did not seem to benefit the IP community in general, but only a few of
their leaders. This is an issue of transparency/governance and democratization. This produces
conflict and disunity among the tribal members. Change of lifestyle was also mentioned. In fact,
some IP leaders have vehicles now and are into gambling without regard for economic
sustainability of the local residents.
On the whole, based on findings of Tables 7-9, there is a total of 22.5% posting the advantages
or benefits that they obtained from the mining company while a majority of 77.5% saying
otherwise. This indicates that the presence of a mining company in their locality has not really
produced a positive impact on the lives of peoples in the locality.

48

Developing a Shared Agenda for Mining Development in the Philippines

Table 11. Cultural Issues Related to TVI in Siocon, May 21-22, 2014

Cultural issues

Freq
uenc
y

Percent
Cultural issues

POSITIVE

Freq
uenc
y

Perce
nt

14

56.0

4.0

8.0

4.0

4.0

4.0

4.0

4.0

NEGATIVE

There was womens livelihood


project with 100 thousand pesos
for capital for lending and for
handicraft

8.0

The government project through


SDMP benefited the Subanen

4.0

The royalty tax was given by


the TVI company but the
issue of sharing within the
IPs is the problem; We dont
know where the income from
the royalty tax and who
benefitted from it, there is no
transparency; Not all IPs
benefited; The IPs did not
directly benefit from the
royalty, it was with Atty.
Bernardo who was not from
Siocon who decided on the
sharing of the royalty; The
IPs are in a faction because
there was no clear sharing/
no transparency
When TVI came, those who
were employed were not the
affected, most were
Kalibogan who were
members of the small scale
mining. It was conflict ridden,
but it was settled when they
were paid.
There was a reverse- many
were anti before, but
relatives benefitted with
vehicles and changed sides ;
Change in lifestyle
Conflict between Bishop
Jose Mangiran because the
scepter was stolen but this
was returned
The MOA was not properly
arranged with TVI
ADSDPP is necessary
Ancestral Domain Title
included areas in TVI mining
areas, but many were
flooded and were not
mitigated
IP lands were taken by some
Cebuano

Total

49

Developing a Shared Agenda for Mining Development in the Philippines

SECTION F. ANALYSIS/SYNTHESIS AND RECOMMENDATIONS


Designated to be one of the key biodiversity hotspots in the global arena today, the Philippines
has the fifth richest mineral deposits in the world, which equates to about a trillion dollars on
current metal prices based on geological survey information from the Mines and Geosciences
Bureau. It is a continuing challenge for the mineral industry to develop and maintain the balance
between risks and opportunities while harmonizing ecological integrity with social responsibility
and authentic economic development. The natural wealth must be tapped to benefit society and
its multi-sectoral constituents.
Persisting myriad of continuing mining issues hound the country and this is the context from
which the study embarked on so as to understand the negative perceptions and realities and
hopefully come up with a shared agenda for mining development in the country. To recapitulate
the context of mining operations in the country, a brief historical backdrop is in order.
Findings of this study show that mining in the country started during the pre-colonial period
where natives started to mine gold, copper, and many other minerals for body ornaments. Gold
artifacts were reportedly traded with the Chinese and other neighboring countries. During the
Spanish colonial period, a Royal Decree in 1837 (first mining law) signaled the start of
exploration and exploitation of minerals in the country for trade and production of tools and war
materials. Under the Treaty of Paris in 1898, the US took over the country and steered the
development of the countrys mining industry and strengthened its control through mine leases,
mineral reservations, additional taxes, and mine safety policies. Reserved mineral lands were
declared in Mindanao such as the Surigao and Davao provinces. New large and commercial
gold mines were established in Benguet province.
The post-colonial period was characterized by the decline and revival of the countrys mining
industry. While the 1950s saw the decline of mineral production, large-scale mining reached its
peak during the 1960s to 70s during the Marcos regime. But after the martial law declaration in
1972, the mining industry in the country was disturbed. The decade 1980-1990 was called the
dark period of the mining industry with the shutdown of several metal mines and the low price
of principal metal products. But this led to the legalization of small-scale mining in 1984 that was
prominent in Diwalwal, Davao del Norte. The Cory Aquino (1986-1992) regime with its
democratic space was characterized by the return of international gold exploration companies
in Mindanao. During the Ramos (1992-1998) and Arroyo (2001-2012) administration, the doors
to foreign investors for all industries opened with deregulation, liberalization, and privatization of
government-owned corporations. The passage of Republic Act 7942 (Philippine Mining Act of
1995) allowed 100% ownership by foreign companies, among others. Under Arroyo
administration, mining was propelled to be the driver of economic development and international
and local investors were motivated to engage in the mining industry. Note, however, that the
period of 1991 to 1996 was rocked by economic, ecological, and natural disasters where the
1996 mine tailing catastrophe at Marcopper operation at Boac, Marinduque Island and
environmental disaster at the Maricalum Mining Corporation in Negros Occidental raised the
issue of mining safety.
It is worthy to note that the Peoples Mining Bill or House Bill 4315 entitled An Act Re-Orienting
the Philippine Mining Industry, Ensuring the Highest Industry Development Standards seeks
to reorient the current policy on the ownership, management and governance of metallic and
non-metallic minerals and envisions a mining industry development to be based on a National
Industrialization Program (NIP) and Mining Plan (MP), reoriented away from market forces and
external investments and supporting a strategic and domestically-planned economy. As of this
writing, this legislation remains an impending bill.
The current Benigno Aquino III dispensation is saddled with controversies with the ban on
mining and logging and cease and desist order promulgations. Anti-mining movements are on

50

Developing a Shared Agenda for Mining Development in the Philippines

the rise while alliances continue to advocate responsible mining as a catalyst to achieve
economic stability. Arising from a host of issues surrounding mining, the Aquino Administration
in February 2011 imposed a moratorium on all new mining contracts in order to review existing
laws and to make revisions without having new contracts signed that may create legal
ambiguities.. A new council known as the Mining Industry Coordinating Council (MICC) was
established to supervise the implementation of the new Mining EO, and the council is also
tasked to make improvements to the information resources available regarding mining, and
harmonize existing laws/policies, and procedures. Executive Order No 79 (EO 79) was signed
on 9 July 2012 to improve the alignment of the Philippines national and regional interests with
those of the mining industry through the updating of key policies and enforcing strict
environmental controls, among others. The Mining EOs new downstream development
mandate underscores that the Philippines needs to invest resources to develop industries
downstream from mining in order to provide economic benefits such as creating jobs for local
communities. Another Executive Order No. 147 was approved, this time focused on Creating
the Philippine Extractive Industries transparency Initiative (PH-EITI) on 26 November 2013 to
ensure transparency and accountability in the extractive industries, particularly in the way the
government collects and companies pay taxes from extractive industries.
Moreover, the formulation of the Framework Agreement on the Bangsamoro (FAB) constitutes a
political agreement to establish the Bangsamoro, the new autonomous political entity in
Mindanao. It will be clothed with the power to run their own government, including the power of
taxation, wealth creation, and revenue sharing from the utilization, development and exploitation
of natural resources within its territory.
Given this backdrop, it is crucial to identify issues and concerns from a desktop status review
and various stakeholders consultations to better understand the context of mining development
in the country. Who really gets what, when, where, and how in excavating and extracting the
countrys natural resources are shrouded in several issues. The proliferation of extractive
practices all over the world needs to consider core values such as intergenerational equity,
accountability, democratic/participatory governance, and transparency. The stakeholder concept
is being employed in the presentation of mining issues in this paper acknowledging that there
may be variations within each stakeholder and that stakeholders may occupy two or more
positions at the same time.
Both the core and critical stakeholders can align in sustainable development goals.
Assumptions are laid that viewpoints may differ as to the strategy and nature in carrying out
sustainable resource extraction. Generally, these are the specificities of each stakeholder
interest viewed as one cluster or group. The so-called Core Stakeholders are comprised of the
following: the community of IPs and non-IPs who are for sustainable extraction of resources for
the benefit of the communitys interest and collective determination through strong and
independent peoples organizations; the mining companies distinct for its profit motivation taking
into account issues of sustainability and equity; the small-scale miners associated to mining as
their source of livelihood and profit motivation taking into account issues of sustainability and
equity; and the state/LGUs: stewards of national and other community interests. On the other
hand, there are also the critical stakeholders as represented by civil society organizations that
are known stewards of national and other community interests and academia that are also
important advocates of national and other community interests through science and technology.
Diverging Interests and Continuing Challenges
The related studies and literature document the unfavorable effects of mining. It is apparent
that there are structural factors that are reflected in the environmental, sociocultural, health,
economic and political/governance dimensions. The livelihoods of the communities that
particularly rely on fishing and agriculture are adversely affected. Formulated laws are under

51

Developing a Shared Agenda for Mining Development in the Philippines

scrutiny primarily by the Catholic Church and several non-government organizations. There are
contestations against opening mining to foreigners and blaming the industry for deaths in
natural disasters. The cry is joined in by peasants, industrial workers, indigenous peoples, and
other sectors. To reiterate, there is opposition arising from massive displacement of the
indigenous peoples, militarization of areas where mining projects are located, environmental
degradation, and widespread corruption hindering implementation of responsible mining in the
country (Holden & Jacobson, 2007).
Similar environmental, economic, sociocultural, political/governance issues and concerns are
captured in the roundtable discussions, focus group discussions, and key informant interviews
conducted. These also surface in the initial case study conducted in one mining company that is
currently on a decommissioning status. It is worthy to reiterate that based on this study, 22.5%
of the respondents cited the advantages or benefits obtained from the mining company while a
majority or 77.5% declared otherwise, referring to the environmental, socioeconomic and
cultural issues arising from the mining operation. This tacitly displays that the mining company
operation has limitations in creating a good impact to the local community.
A close examination of the outputs of this study reveals that the problems in general manifest
the lack of political will of the government to enforce laws/policies for mining development. This
was apparent taking into consideration the position of civil society, academia, the business
sector, and the government itself. The negative perceptions of the civil society and academia
many of whom take a critical position, harbor dismay towards mining companies, and the
lukewarm attitude of government all have bearing to what has been enumerated [Link]
issues of mining development in the country. The wide-ranging environmental, economic,
sociocultural, political/governance issues and concerns are all important elements in sustainable
development. Employing the SUSOP framework, these are some of the risks that pose a
continuing challenge.
Involving the sector of small-scale miners, the issues of benefit sharing and taxation,
political/governance, as well as environmental dimensions can be exemplified as follows:.

Economic Dimension: Issues of benefit sharing and taxation


Small-scale miners pay no royalty or other charges to the Department of Environment
and Natural Resources (DENR) and instead pay taxes directly to local government units
(LGUs) with the national government not getting any share. On the other hand, only a
portion of taxes, royalties and fees paid by large mines to the national treasury go to
LGUs, notwithstanding the long period of waiting for it to reach the LGU. This makes
more practical and alluring for the latter to issue small-scale mining permits and to
oppose large-scale mining.
Political/Governance Dimension: Issues on potential conflict of interest in the issuance of
permits to small-scale mining and conflicting laws (RA 8371 or Indigenous Peoples
Republic Act and RA 7942 or Philippine Mining Act of 1995). The latter liberalized
foreign control over the domestic mining industry.
This conflict in governance can be illustrated in small-scale mining. The micro-level
extraction may disrupt the continuity of reserves to be mined and results in inefficient
extraction. Many observe that this results in more environmental damages since it is not
subject to the rigorous standard measures imposed on large mining operations.

Corollary to the above contention, findings of the consultations show that the issue of
governance is crucial and that it bears on issues of policy governance and implementation.
Allowing local mining boards to issue permits for mining undermines the efficient distribution of
permits. Many LGUs issue permits for small-scale mines and have passed ordinances

52

Developing a Shared Agenda for Mining Development in the Philippines

banning/limiting certain types of mining such as open pit. While some may have bearing on
environmental conservation and management, it is also a response to the small-scale mining
fiscal regime. The following quote aptly describes this contention: only a portion of taxes,
royalties, and fees paid by large mines to the national government go to LGUs; the amount is
small; and there are long lags between the payment by the mining companies and the
distribution to the LGUs. This difference in the fiscal regimes for small-scale and larger mines
provides an incentive for local governments to issue many small-scale mining permits and to
oppose large-scale mining (IMF Country Report, 2012: 46).
The country is teeming with metallic mineral reserves worth a trillion dollars that could have
steered us towards a progressive and strong economy balanced with agriculture and industry.
The civil society organizations cry graft and corruption, the local government units complain of
delayed return share, the mining executives whine of transparency and lack of strong political
will, and the people lament poor governance. There are emerging patterns in the way the mining
establishments handle their monitoring and evaluation of their environmental impact which badly
need transparency and accountability. On one hand, the community development program
implementation needs proper assessment. Most oftentimes, the community does not feel the
promised economic returns because it passes through the local government unit. All are one in
saying that something is wrong with the government. The issue of governance is a converging
point and remains a great challenge that urgently needs attention.
To reiterate, it has been observed that mining areas remain poor communities. This is
antithetical to the expected economic gains of mining operations. There prevail the ecological,
economic, and cultural problems affecting especially the indigenous peoples which commenced
during the colonial period and remains until today. The Philippine mining industry has
historically been liberalized, laid open to foreign and private control without developing
downstream industries, and limited to extraction, export ores, and dependence of foreign
capital, expertise and technology (The Center for Environmental Concerns-Philippines:n.d.2-3).
Employing the concept of benefits in SUSOP framework, the various typology of capital can be
operationalized as follows: Social capital is generated as a proliferation of business and other
commercial establishments are established in areas where the mining company is located. The
existing social network of families and relatives are enhanced, especially when they are hired
and moved to the mining site. This is where human capital is further enhanced when one is
capacitated for trainings and the like. The natural capital, i.e. mineral ore extraction is tapped,
but this can be also classified as a risk in the sense that the ecosystem is made vulnerable to
disaster with the altered mountains and forests. Due to toxic exhausts contaminating the air,
people complain of upper respiratory ailments and when the toxic substances flow to the sea,
this further endangers their aquatic resources. We can say that the natural capital which is the
basis of life and production possess a double-edged negative effect. And when operationalized
in a balanced score card, the various types of capital will have an equivalent relative to the risks
and opportunities depending on the specific geographical, socioeconomic and cultural values.
Sustainable development as a concept bears almost the same valuation invoking its basic
pillars in the ecological, social, and economic dimensions. Considering that the mineral resource
extraction usually happens in the uplands where the indigenous peoples reside, the cultural
aspect is an added special dimension. Their age-old tradition will be endangered. Despite the
existence of a law that is supposed to protect and guide the natives, sometimes the free, prior
consent is violated when there is no authentic and democratic consultation and another group
will be recognized in defiance of the real resident natives. This cultural dimension carries the
issues of respect to culture integrity and the FPIC process. Moreover, even when the mining
company releases its royalty share, the equal sharing of benefits does not take place from
within. We need to take back the economy. The sustainable and equitable use of resources for

53

Developing a Shared Agenda for Mining Development in the Philippines

the society of the future may be done by re-ordering the global economic system towards ethical
community economies.
But what also needs to be stressed is the essence of intergenerational equity the need to
bequeath to the next generation the resources of today. One has to wrestle with the
innumerable ways that mining problems of the present are handed down to communities of the
future. This may mean exhaustion of resources and a damaged environment, the creation of
conflict and control in the uplands, presence of para-military groups, killings and extortions.
Values such as transparency, participation, intergenerational equity remain as rhetorics.
However, there are significant developments in the country in legislation addressing IP rights
and the regulation of extractive industries. But these are much wanting in terms of alignment
and harmonization.
Moreover, the stakeholder theory remains challenging, there is no uniform feature for all the
multi-stakeholders. A stakeholder may occupy two or more positions at the same time such that
one can be a native in a particular area and member of the LGU and employed as worker in the
mining company whose house and service vehicle is a visible mark of social inequity,
Convergence and Possible Shared Agenda for Mining and Development: Fair and equitable
share/ benefits from resources extracted
The possible key to resolving the potential conflicts emanating from these complex dynamics is
the forging of a strong unity towards a collective agenda and agreement to respect the divergent
interests of the various stakeholders under a common framework that makes resource
extraction beneficial to all. The collective agenda can be shared and serve as starting point for
collaborative undertakings. This is possible when two or more stakeholders work as one to a
mutually agreed upon goal and equitable returns. Engaging all stakeholders is essential in
obtaining genuine community informed consent and meaningful engagements in conflict
transformation, policy formulation/implementation and development interventions.

Environmental Dimension: Issue of safety and environmental damages. All of the


stakeholders express concerns over the environmental destruction as all are affected by
the ecosystem. For instance, the 1996 mine tailing catastrophe at Marcopper operation
at Boac, Marinduque Island and environmental disaster at the Maricalum Mining
Corporation in Negros Occidental raised the issue of mining safety. But the effects of
environmental damages are more felt by the community. The responsibility of mitigation
rests more on the company. While there is a multi-partite monitoring team in mining
companies, there is always a cloud of doubt on what is the real score within the
company with respect to compliance to policies, standards and guidelines.

In ending, let me bring to light the following quotes and concepts underscoring the vital role of
the stakeholders. The Mindanawon Initiatives for Cultural Dialogue (2008:1,6) cited Chevalier:
all conflicting interests can be negotiated and the well-being ofeconomies hinges on the
active participation of all citizens, actors whose material benefits ultimately coincide with those
of capital development should not be reduced to economic growth or that the sole powers
of the market solve development problems particularly in Mindanao. It should be stressed here
that the development problems in Mindanao are political. This underscores power differentials
and conflicts of interests.
Communities where resources are extracted can have a say on their use and disposition based
on their interests and concerns. This process of taking back the economy, necessitate a
political process where the once marginalized voices now are recognized and assume center
stage in a complex economy with diverse systems. The prescription goes beyond the aim of
replacing the current order with a democratizing political program, but more importantly allow for

54

Developing a Shared Agenda for Mining Development in the Philippines

the sustainable and equitable use of resources for the society of the future by re-ordering the
global economic system towards ethical community economies. It is in thinking together about
our working lives, our collective efforts, the places in which we encounter others, the commons
we constitute through our care, and the future we collectively invest in that will allow us to build
an economy worth living in with one another (Gibson-Graham, et al., 2013: 192).
Cognizant of the converging points for all stakeholders to gain fair and equitable share/benefits
in mineral resource extraction, there is an emerging consensus to have a responsible and
functional legal/institutional framework for mining and development, a transgenerational and
empowered community, equitable sharing of responsibilities and improved returns, a clean and
healthy ecosystem, and collaborative research and education among stakeholders and
international partners to unite the multi-stakeholders to a shared agenda for mining. The way to
operationalize this may go through a rigid process of discourses and debates. It is imperative for
all to participate in pursuing this and not leave it all to the governmental bureaucracy. After all,
we are part of this huge system and academia must bring science and technology to the
ground.
There is a glimmer of light in the country today despite odds. We have a growing base of civil
society organizations and academia is open for research and community development
endeavors. At the legislative body, there are two recent impending bills focused on mining.
House Bill 4728 seeks to amend certain provisions of the Philippine Mining Act of 1995 and
promotes for the mandatory processing of all mineral ores as value adding and encourages the
growth of mineral processing in the country. This is viewed as providing more jobs and
increasing domestic revenues through taxes and duties. Another bill is centered on the creation
of the National Center for Sustainable Mineral Industry that is to be attached at the Department
of Science and Technology (DOST) with experts from academia playing active roles. The body
will steer research and development towards sustainable practices and technologies in the
mineral industry.
All these provide hope in the attainment of an environmentally-sound, efficient, and economical
mineral exploration practices and culture for both small- and large-scale mining industry
hopefully steered towards national industrialization.
The strong message is that for sustainable development to be operational, it is crucial to
harmonize and integrate the concerns for a sound and viable economy, sensitivity to
sociocultural dimensions, and ecological integrity in an atmosphere of democratic consultation,
responsibility, and transparency. In this light, we can invoke economic and ecological
integration seeing economic development and responsible stewardship of the environment not
as incompatible goals, but as mutually reinforcing objectives towards sustainable development.
It is only when both ends are jointly served that the ultimate goals of development are attained.
For it recognizes that the natural, financial, social and human capitals are advanced for inclusive
growth where there is synergy of efforts of the various stakeholders to recognize the risks and
opportunities in mineral resource extraction.
RECOMMENDATIONS:
Based on the roundtable and focus group discussions, and key informant interviews, the
following may be considered as guides in establishing a roadmap for the mining industry in the
country. Based on the stakeholders consultations, the recommendations of the study are as
follows:
1. Push for a Responsible and Functional Legal and Institutional Framework for
Mining. This necessitates a strong political will to formulate a participatory framework for
mining and development in the country based on a plan that considers national

55

Developing a Shared Agenda for Mining Development in the Philippines

industrialization and legislative reforms of the mining fiscal regimes. Among others, this
requires the creation of credible and functional institutions that can be the intellectual
lead bodies for the mineral industry development of the country. Forging a consortium of
stakeholders for monitoring and evaluation is also imperative to the development of
mining in environmentally-critical areas that are key biodiversity areas, food producing
regions, and geo-hazard and disaster-prone areas.
2. Create a transgenerational and empowered community. This is a community that
benefits from the collaboration of all empowered and enlightened stakeholders.
Transgenerational and sustainable mining communities must protect and respect cultural
heritage and develop a comprehensive and progressive capacity building program. For
instance, trainings on free prior informed consent (FPIC), leadership and financial
management, proposal making, watershed management, disaster risk reduction and
management, and others can be organized for the needy communities. Signing up to the
Extractive Industry Transparency Initiative (EITI) for mining companies to publish details
of all payments, taxes and royalties ensure knowledge empowerment of local
communities must also be considered,
3. Promote equitable sharing of responsibilities and improved returns. Equitable
sharing of resources must aim at developing value adding activities and downstream
industries which will also generate employment. Incentives for local entrepreneurs be
encouraged, as well as domestic capitalization to integrate agrarian reform and
agricultural production in mineral development.
4. Foster a clean and healthy environment. A healthy and responsible community must
have an environment where there is clean water and air. This must also include the
dissemination of ecologically-sound mining practices.
5. Undertake collaborative research and education among stakeholders and
international partners to unite the multi-stakeholders to a shared agenda for
mining. The various stakeholders should be involved in mining development in order to
ensure the equitable distribution of its gains and secure the protection of the
environment. Academics can play a role through the following activities:
Establishing research collaboration of academia, local government unit (LGU),
and industry
Establishing collaborative monitoring and evaluation team among stakeholders
for information, education and communication (IEC) and policy brief formulation
Conducting participatory action research employing two mining companies (one
in Mindanao and one in Visayas) to provide a more comprehensive empirical
base to assess the impact of mining through gender and cultural lens and
empower the local community with capability enhancement training sessions
based on identified prioritized community needs.
Strengthening linkages and networks with international and national partner
institutions on mining and development.

56

Developing a Shared Agenda for Mining Development in the Philippines

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Developing a Shared Agenda for Mining Development in the Philippines

APPENDIX 1A. Review of Related Literatures on Mining in the Philippines


Table 1. Review of Related Literatures on Mining in the Philippines
General
Classification of
Issues & Location
Environmental,
Socioeconomic,
Political/Governance
Cultural (Mindanao)
Case Studies
conducted in the
following
companies/areas:
a. South Cotabato,
Sultan Kudarat, Davao
del Sur: copper-Gold
Project of SMI-XStrata
b. Siocon, Zamboanga
del Norte: Polymetallic
Project of TVI
Resource
Development
c. Bayug, Zamboanga
del Sur: TVIs
exploration project
d. Claver, Surigao del
Norte: Nickel Project of
Taganito Mining Corp.
e. Diwalwal, Monkayo,
Compostela Valley:
Small-Scale Mining
Operations

Specific Issues &


Concerns
[Link] &
Development
-social disharmony in
mining areas due to
differing notions of
dev. & scales of dev.
Threatening
livelihood & life world
of communities in
subsistence mode of
production.
2. Finance &
Economics
-generated few &
insecure job
opportunities on
seasoned/rotation.
-difficulty in tax
claims; need for
company
transparency;
- need to review tax
holidays
3. Envl. Protection
& Natural
Resources
-potential impact of
mine wastes alters
water quality in rivers
& watershed
4. Governance
-conflicting land uses
& claims due to
inaccurate mapping

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community
Major questions: Is
responsible mining
possible given the
social landscape of
Mindanao? Aside
from the pro- and
anti- positions, are
there other voices?
Where are these
located? What are
their interests?
Ateneo schools in
Mindanao: Probed
deeper into mining
and the community:
Questions:
-What lessons can
we learn from
Mindanaos mining
history & challenges
-Will it improve the
condition of the
people
- Will it bring peace to
a troubled
landscape?
-Who are its intended
stakeholders? How
are they affected as
the cycle of mining
progresses
-Who benefits from
mining?

61

Response:
Company

Recommendation
s

Source of Data

*Review the
[Link].s mining
regime & mineral
liberalization policy
in the light of
social,
environmental, and
cultural costs.
*Come up with a
Mindanao dev.
Framework- profit,
people, culture, &
ecosystem
*Practice right to
information &
transparency
*Promote informed
understanding of
core and critical
stakeholders,
upstream and
downstream, and
general public
*Provide open
spaces for
conversations with
all affected
stakeholders
towards social
acceptability
*Capacitate
communities,
LGUs, POs in
monitoring mining

Mindanawon
Initiatives for Cultural
Dialogue. 2009.
Mining in Mindanao:
Analyzing
Stakeholders and
Identifying Strategic
Engagements
(Unpublished Study).
Davao City: Ateneo
de Davao University

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

& ground survey and


aggravated due to
competing interests
of LGUs
- transparency of info
for critical, informed
decisions
-monitoring &
implementation:
repeated violations of
some companies &
not dealt w/ by mgt;
lack of lab facilities &
skill of multipartite
monitoring team
5. Indigenous
Peoples (IP) Rights
-FPIC now obtained
thru Council of
Leaders/Elders, no
longer community
consensus; need for
a broader context
validation of impact
areas( not only host
& neighboring);
absence of policy to
respond to different
positions
-Indigenous
Governance & Right
to SelfDetermination-IP Royalty: is one
percent enough?,
issue of company
transparency in

Response:
Company

Recommendation
s
operations, and
conflict
management
*Strengthen critical
stakeholders
engagement with
core stakeholders
*Assert Indigenous
customary laws
and processes
*Build and
strengthen alliance
for greater support
and vigilance in all
stages in mining
*Undertake more
technical and
social researches
to improve
understanding of
mining.

62

Source of Data

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Socioeconomic
(Caraga Region)

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

computation of
royalties; perception
that IPs cannot
manage own funds
-Sociocultural
Impacts: fear of
changes in their
traditional activities
with influx of
migrants.
6. Knowing Mining
- need of credible info
and expert
knowledge on
mining and its
impact; lack of
universities to assist
in understanding
mining
1. Increased
borrowing in the
mining areas of the
region.

Response:
Company

Recommendation
s

*Need to work for


the improvement
of the quality of life
by stepping up
efforts towards
human
development,
entrepreneurship
and pollution
control.
Responsible
mining builds the
resilience of
people to natural
hazards for
sustainable dev. in
Caraga Region

2. Increased in
investment for human
capital buildup, as
implied by the
increase in food and
education
expenditures.
3. In-migration and
efforts on the part of
mining to participate
in the improvement of
accessibility condition

63

Source of Data

Balanay, Raquel M.,


et al. Analyzing the
Socioeconomic
Impact of Mining with
Propensity
Score
Matching
(PSM): Insights for
Responsible Mining
in Caraga Region,
Philippines, 2014.
Developing Country
Studies. International
Institute for Science,
Technology,
and
Education. Vol. 4.
No. 13.

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

Response:
Company

Recommendation
s

Source of Data

through the provision


of paved roads.
Environmental,
Economic, and
Sociocultural
(Region X or Caraga
region)

Environment
(Marinduque)

-Increased borrowing
in the mining areas of
the region
-Using the nearest
neighbor, kernel and
radius matching, the
study

Environmental
problems which stem
from large scale open
pit copper mining at
Marcopper Mining
Corp., Marinduque Isl
&,viz;
the Mogpog & Boac
Rivers which receive
acid rock drainage,
high sediments
loads, & tailings
transported from the
mine site

People of
Marinduque
have a MOA with
the DENR that
provides for an
independent
technical review
of the available
options for
environmental
remediation &
restoration after
the 1996 tailing
spill

Preferred
Remedial
optionSubmarine
tailings disposal
in the deep
waters of Tablas
Strait.

-the beaches &

64

Balanay, Raquel M.,


et al. Analyzing the
Socioeconomic
Impact of Mining with
Propensity Score
Matching (PSM):
Insights for
Responsible Mining
in Caraga Region,
Philippines, 2014.
Developing Country
Studies. International
Institute for Science,
Technology, and
Education. Vol. 4.
No. 13.
[Link]
com/s/
kq5sl6qc78cwd92/
An%20Overview%20
of%20Mining
-Related% 20Environ
mental%20 &%20
Human%20Health%2
[Link]. An
Overview of MiningRelated
Environmental &
Human Health
Issues, Marinduque
Islands &,
Philippines:
Observations from a

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

ocean at & near the


mouth of the Mogpog
& Boac River
systems.
-Calancan Bay: very
large volumes of
tailings were
disposed for 16 years

Environment
(Cagayan de Oro)

Indigenous Peoples
(Tantawan, Cotabato)

-Area within &


adjacent to mine site
affected by multiple
sources of acid rock
drainage into ground
& surface waters &
by sediments erode
from mine waste
piles.
Environmental
sustainability &
human welfare of
mining activities in
Brgys. Tumpagon,
Tuburan, & Pagatpat,
Cagayan de Oro City

Case1.
Struggle Against

Response:
Company

Recommendation
s

Source of Data
Joint U.S. Geological
SurveyArmed
Forces
Institute of Pathology
Reconnaissance
Field Evaluation, May
12-19, 2000, U. S.
Geological Survey
Open-File Report 00397Geoffrey S.
Plumlee, et al.

Issued only
permits to smallscale mining
operators. (no
government
monitoring &
supervision over
the activities like
mining &
quarrying in the
areas.)

1. 9 January
2012- DENR

Identified the
effects of
mining;
environment
(loss of
marine life)
- upstream
inhabitants
could no
longer wash
clothes in
the river due
to murky
water.
Community leaders &
NGOs questioned the

[Link] took
up armed

65

[Link]
com/s /7dpq0zeft53f
ayx/Ancestral%
20L&% 20&
%20Mining%20Issue
s%20in%20Southern
%[Link].
Isaias S. Sealza , et
al., Ancestral Land &
Mining Issues in
Southern Philippines,
Xavier UniversityAteneo de Cagayan
Cagayan de Oro City
Philippines
August 2013
[Link]
com/s/cb5kebof6urq5

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location
IPs (Abra)

Specific Issues &


Concerns
Large-Scale Mining
in Tampakan ,
Mindanao
-Conflict in the use of
land
Case 2: Small &
Large-Scale Mining
in the Binongan
Ancestral
Domain/Abra
Province
-Conflict in the use of
land

Response:
Government
ordered SMI to
stop all
operations in the
area
because the
company did not
meet the
requirements for
an Environmental
Compliance
Certificate (ECC)
-military
operationapprehension/cap
ture of suspected
NPA who took
part in the armed
resistance
against SMI.
2. DENR & NCIP
certified that no
indigenous
peoples lived in
the targeted area,
regardless of the
Binongans claim
of ancestral
domain.

Responses
Response:
Response:
NGO/CSO
Community
legality of SMIs
resistance
activities
against the
- NGOs suggest
two
indigenous peoples
companies
themselves to uphold of
traditional values &
Sagittarius
practices, such as
Mines Inc.
peace pacts between (SMI) &
tribes & other
Xstrata
mechanisms of
to defend
conflict resolution.
their
ancestral
domains
2. In Abra
Province,
northern
Luzon,
communities
have
successfully
pushed for a
stop
of the largescale mining
operations of
JABEL
Corporation/
Abra Mining
Industrial
Cor-ASEAS
5(2)
340 341
poration
(AMIC
-for smallscale
mining-the

66

Response:
Company

Recommendation
s

Source of Data
zm/Cultural%20Impa
cts%20of%20Mining
%20in%20Indigenou
s%20Peoples%E2%
80%99%20Ancestral
%[Link]
Marina Wetzlmaier
(2012). Cultural
Impacts of Mining in
Indigenous Peoples
Ancestral Domains in
the Philippines
ASEAS-Austrian
Journal of the SouthEast Studies 5(2)
335-334

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Economic
(Mt. Province)

Environment
-water/aquatic
(Rapurapu, Albay)

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community
community
protested on
outsiders for
destroying
their land

Employment

Large fish kills in


Rapu-Rapu, Albay
(fish & water were
contaminated with
mercury & cyanide
due to tailing spill
from LFT mining.)
-sale on fish
plummeted
-residents stopped
buying marine
products caught by
local fisher folks

Response:
Company

Benguet
corporation
reopened the
Acupan mines
thru a
partnership with
a small scale
miners (Acupan
Contract mining
Project)

DENR Secretary
Michael Defensor
signed a Cease &
Desist Order
against LPI &
levied a fine of
approximately
US$200,000.
Pres. Arroyo
assigned UP to
do the
independent
study & formed
independent
commission
headed by Bishop
Bastes to assess
the overall

- local
officials,
fisher folks,
NGOs, &
church
workers
staged a
fluvial rally
to oppose
the LPI
operation.

67

Recommendation
s

Source of Data

[Link]
com/s/c73ohujibfi4wq
e/Enhancing%20Dec
ent%20Work%20Out
[Link]
Maria Isabel D. Artajo
(2012),
Enhancing Decent
Work Outcomes in
Small-Scale Gold
Mining,
ILS Discussion Paper
Series 2012
[Link]
com/s/fsl287ujjtrjiaz/
Environmental%20Sa
feguards%20&%20C
ommunity%20Benefit
s%[Link]
Jeffrey Stark,
Jennifer Li, &
Katsuaki Terasawa
(2006),
Environmental
Safeguards &
Community Benefits
in
Mining: Recent
Lessons from the
Philippines. USAID

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Governance

Although Philippine
government has
remained sensitive to
concerns of
stakeholders in
mining issues, it has
not been able to raise
much-needed
revenues from mining
contracts.

Mining Industry
Coordinating
Council created
to implement
industry reforms
& dialogue with
stakeholders &
review all existing
mining-related
laws & rules.

February 1, 2011President Aquino


passed Executive
Order (EO) No.
23 exempting mining
corporations from the
logging ban. Some
mining companies

Executive Order
79 passed-An Act
institutionalizing &
implementing
reforms in the
Philippine mining
sector providing
policies &

Governance

Response:
Government
situation with
regard to the
resumption of
LPIs mining
operation.
-UP dispelled the
fear of remaining
mercury &
cyanide in fish &
water.
-the commission
held for the
permanent
closure of the
mining.

Responses
Response:
Response:
NGO/CSO
Community

Response:
Company

Recommendation
s

Source of Data

When mining
reforms fail bizlinks
by Rey Butch
Gamboa
(The Philippine
Star)
Updated January 28,
2014 - 12:00am
[Link]
m/business/2014/01/
28/1283669/whenmining-reforms-fail
Sunday Essays:
Mining
Consequences
Published: Saturday,
August 31, 2013
Earl Jon N. Africa
[Link]

68

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns
began their
operations by cutting
down plenty of trees
for them to dig up
what they needed to
find underground.

Health & Social

Response:
Government
guidelines to
ensure
environmental
protection &
responsible
mining in the
utilization of
mineral
resources.

Responses
Response:
Response:
NGO/CSO
Community

Response:
Company

Recommendation
s

Source of Data
[Link]/weekenddavao/2013/08/31/su
nday-essays-miningconsequences300759

Issue 1:
Mining poses
tremendous risks to
life & limb, not only to
miners but to the
community as well:
1. Occupational
health hazards posed
by mining to workers
are exposure to
intense heat, poor
ventilation, vibration,
dust, fumes,
repetitive stress
injury (RSI), intense
noise, manual
hauling (e.g. lifting) of
heavy machinery &
biological/chemical
hazards.
2. Miners usually
have fluid & salt
deficiency due to
constant sweating,
increased stress on
the heart, heat
stroke, opacity of the
lens & reduced

1. Monitoring
capacity for OHS &
working conditions
of mines & other
enterprise in
general should be
increased &
widened to make
timely & pro-active
intervention.
2. Health & Safety
Education should
be given primacy
to create culture of
safety among
workers.
3. More research &
related literature
on OHS in Mines
should be done &
supported.
Although there are
existing studies,
compared to
papers & materials
focusing on the
environmental
effects of mines,

69

Mining in the
Philippines & the
effects on
Occupational Health
& Safety of Mine
Workers
Submitted by Institute
for Occupational
Health & Safety
Development
(IOHSAD) on Fri,
11/24/2006 - 4:31pm
[Link]
/11/06/mining/miningphilippines-&-effectsoccupational-health&-safety-mineworkers*

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

fertility due to high


heat.
3. Vibration can
cause permanent
damage to bones &
vibration syndrome or
"dead finger"
syndrome can lead to
gangrene in the
hands & fingers. It
can also cause
digestive problems
due to constant
shaking of the
internal organs, heart
problems &
disruption of the
nervous system.
4. Mines expose
workers to different
types of airborne
particulates, making
them vulnerable to
systemic toxic effects
due to the absorption
of lead, manganese,
cadmium, zinc &
other toxic materials.
5. Noise or irritating &
hazardous sound can
cause hearing
impairment &/or
disrupt body
functions like blood
circulation &
hormone imbalance.
6. Manual lifting of

Response:
Company

Recommendation
s
informative &
substantive studies
on OHS in Mines is
far behind.

70

Source of Data

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

Response:
Company

Recommendation
s

Source of Data

materials causes
back troubles leading
to acute pain.
Issue 2: the
Philippines signed
ILO convention 176
to regulate & monitor
occupational health &
safety in mines.
Report by the Bureau
of Working
Conditions (BWC) in
2000: only 59
accredited working
conditions inspector
tasked to monitor &
inspect more than
700,000 registered
enterprises, including
mining companies.
Eco-labor &
displacement
(Cebu, Leyte/ Davao
del Norte)

1. Consolidated
Mining Development
Corporation.
-Impact of copper
tailing pollution
-impact of Atlas on
the labor force of
Toledo
[Link] Davao
Mining Corporation in
New Leyte &
Amakan, Maco,
Davao, del Norte
-Displacement of
residents

Tenants of
hacienda in
Magdugo
sought
compensatio
n from Atlas
for crop
losses on
the l&
polluted by
copper
tailings.

71

Workers staged
a strike in 1996
against the Atlas
Mining due to
low wage.

Mc Andrew, John P.
(1999/), The Impact
of Corporate Mining
on the Local Phil.
Communities: The
Cases of North
Davao Mining, APEX
mining, Benguet
corporation & Black
Mt in Davao del
Norte, & of Atlas
Consolidated Mining
& Dev. Corp in
Toledo, Cebu

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

[Link] Sabena Mining


Corporation in
Camalangan, New
Bataan, Davao del
Norte
-tailing pollution
(towns in Compostela
& New Bataan)
-dislocation of
settlers
(Camanlangan) due
to Sabena expansion
of mining operation
2. The barangay
council & NDMC
agreed to a
settlement of
Php10 million for
all claims on the
valley. The
money would be
used for the
construction of
the relocation
area & payment
for their crop
damages.
3. National
Pollution Control
Commission
(NPCC) imposed
a fine of Php
1,000 on the
company for each
milling day from 4

2. At first the
residents in
New Leyte &
Amakan
determined
not to leave
their lands;
Later they
were
persuaded &
accepted the
compensatio
n payment
from the
NDMC.
Payment
ranges from
Php15, 000
to Php50,
000 per
legitimate
claimant.

72

Response:
Company

Recommendation
s

Source of Data

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Environmental
(Davao)

Mercury pollution
(Compostela Valley &

Response:
Government
Dec. 1979-May
1980.
- The Mayor &
Sangguniang
Bayan of New
Bataan wrote an
open letter to
Sabena Mining
Corp appealing to
reconsider the
residents of
Camanlangan &
free them from
being displaced.
-The chairman of
NPCC testified
before the
Batasang
Pambansa
Subcommittee on
Envl Pollution that
Sabena
operations
brought pollution
in the Batutu river
irrigation system.
1. According to
the key
informants, there
was no serious
monitoring done
by the LGU &
National
Government re
mercury pollution.

Responses
Response:
Response:
NGO/CSO
Community
3. Farmers
of
Compostela
& New
Bataan
complained
tailing
pollution
brought river
pollution,
siltation &
thus,
destroyed
1,000
hectares of
young rice
plants.

Response:
Company

Recommendation
s

Source of Data

[Link]
com/s/c3i1bpis88f3y
wz/Mercury%20Pollut
ion%20Due%20to%2
[Link].
Danilo C. Israel &
Jasminda P. Asirot,
Mercury Pollution
Due to Small-Scale
Gold Mining in the
Philippines:

73

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

Response:
Company

Recommendation
s

Source of Data
An Economic
Analysis, Research
Paper Series No
2002-02

Environment
(Zamboanga del
Norte)

Social
Economic &
Governance
(Nueva Vizcaya)

Overflow of Philexs
silt dam due to heavy
rain.
( Lipay, Zamboanga
del Norte)

1. No proper
compensation for the
land use.
2. Bribery on
barangay officials for
favorable approval of
mining (Climax
Arimco Mining
Corporation) in the
locality (Didipio,
Nueva Vizcaya).

The DENR
ordered Philex to
create a
monitoring team
as part of its
Environment
Compliance.
DENR suspended
the mining
operation of
Philex due to
mercury &
cyanide pollution.

Regional
Development
Council (RDC) of
Cagayan Valley
issued a
Resolution # 0234-2000
Rejecting the
Proposal of
CAMC to operate
the Didipio
Gold/Copper
Mining Project.

Legal Right Center


responded with
training, researches,
& legal actions.
October 11, 2001,
DENR Sec Heherson
Alvarez issued a
Notice of
Suspension of
Exploration Activities
to CAMC on the
following grounds: 1)
That the Project
has allegedly not
secured Social

Polluted
fishing
dependent
communities
complained
to the govt
on the
pollution of
the
Murcielagos
Bay & called
upon the
DENR to
stop Philex
mining
operation.
The antiCAMC
section of
Didipio
population
organized
Earth Savers
Movement
Association
(DESAMA)
to initiate
campaign
against the
CAMC
mining

74

[Link]
com/s/nls2qmn6nqho
5a3/Mining%2Bor%2
BFood%2BCase%2B
Study%[Link]
Robert Goodland &
Clive Wicks (2008),
Mining or Food?
Case Study 2:
Copper & Gold
Mining Zamboanga
del Norte, Mindanao
Island, Working
Group on Mining in
the Philippines , UK
.[Link]
com/s/839xt6knd8q5
xyo/When%20the%2
0%E2%80%98Isles%
20of%20Gold%E2%8
0%99%20turn%20int
o%20Isles%20of%20
[Link].
Raymundo D.
Rovillos
Salvador B. Ramo
CatalinoCorpuz, Jr.,
the Isles of Gold
turn into Isles of
Dissent:

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community
Acceptability; 2) That project.
the Project is located DESAMA
inside the Addalam
submitted a
River Watershed.
petition to
30-member
the
Association of
COMELEC
Barangay Captains of invoking the
Kasibu, Nueva
power of
Vizcaya, representing initiative.
all 30 barangays of
the municipality,
signed a joint
resolution
Requesting the
Sangguniang
Bayan Members Not
to Endorse the
Didipio Gold/Copper
Mining Project of
CAMC & to spare
the entire
municipality from any
mining application.
Entire Kasibu
Municipal Council
issued Resolution
156 series 2002
Denying
the Request of the
Sangguniang
Barangay of Didipio,
Nueva Vizcaya for
the Endorsement of
the
Proposed Didipio
Gold/Copper Project
of Climax Arimco

75

Response:
Company

Recommendation
s

Source of Data
A Case Study on the
Philippine Mining Act
of 1995

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Economic-Agriculture

Adverse effect of
mining on the
livelihood of rural
areas in the
Philippines,
particularly the
communities that rely
on fishing &
agriculture.

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community
Mining Corporation.
In 1998, the
CBCP
issued an
official
statement
demanding
the repeal of
the Mining
Act.
-CBCP
called
Arroyo
government
to cancel all
concessions
& deny
applications.
-Individual
bishops
have been
crusading
against
opening
mining to
foreigners,
criticizing
mining
companies,
&
blaming the
industry for
deaths in
natural
disasters.
-National
organization

76

Response:
Company
These
vulnerable
population turn
for help to
specific
municipalities or
province (LGU),
& other civic
organizations.
They also found
help in the
Roman Catholic
Church or the
CBCP.

Recommendation
s

Source of Data

[Link]
com/s/doggafphkmu8
4kg/The%20trail%20
of%20mining%20law.
pdf
March, Minerva
Chaloping, The trail
of a mining law:
resource
nationalism in the
Philippines, Paper
read at the
conference on Mining
& Mining Policy in the
Pacific: History,
Challenges
& Perspectives, 2125 November 2011.
Noumea, New
Caledonia.

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Health
(Cotabato)

[Link]-scale mining
in South CotabatoTboli miners
-impact on health due
to poor working
Condition.
-low educational
attainment of
children.
(380 pupils in
DESAWO
Elementary School
30% of grade 1 pupil
will make it to grade
6.)
-lack of basic
services in the area.

(Abra)

2. Benguet-smallscale mining.
-health-women suffer
respiratory deceases

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community
s allied with
Bayan.
-BAYAN
takes a
political
position
during
elections &
represents
peasants,
industrial
workers,
indigenous
peoples, &
others.

Response:
Company

Recommendation
s

Source of Data

1. Enacted local
ordinances to
rehabilitate the
areas damaged
by mining
activities,
Ordinance No. 4,
Series 2010, E.O
No. 12, Res No.
144, series of
2003. he Prov
Mining
Regulatory Board
(PMRB) enforces
the total ban
of all hydraulic
mining, panning &
amalgamation
operations.

[Link]
com/s/d7vgd8abzzosl
o0/Small%20Scale%
[Link]
Vidal, Aida T. 2005.
A Background Study
on the Small-Scale
Gold Mining
Operations in
Benguet & South
Cotabato & their
Impact
on the Economy, the
Environment. The
Alternate Forum for
Research in
Mindanao (AFRIM).

2. Low revenue
collection in

The Community
Bantay Kita, Bantay

77

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns
& back pain.
-lack of basic
services

Socio Cultural
IPs & Governance
(Mindanao)

Response:
Government
Benguet
attributed to the
fact that smallscale mining is a
traditional
livelihood in the
province. The
government has
no specific local
tax ordinances.

Responses
Response:
Response:
NGO/CSO
Community

Response:
Company

Recommendation
s

Source of Data
Kita Occasional
Paper Series No.
2012-02

Opposition of the
Roman Catholic
Church in Mindanao
to govt. eorts to
attract foreign
investment by
mining corporations
on the ff. grounds:
1. Displacement of
the indigenous
peoples.
2. Militarization of
areas where mining
projects are located.
3. Pervasive
corruption impeding
implementation of
responsible mining in
the Philippines.
4. Source of
materialism in society
5. Degradation of the
environment which
,in turn, becomes
livelihood & power
issues in the society

Advocate
activities, such
as nonferrous
metals mining,
to be used as a
means of
protecting the
environment.

Ecclesial Opposition
to Mining on
Mindanao:
Neoliberalism
Encounters the
Church of the Poor in
the Land of Promise
William N. Holden &
R. Daniel Jacobson
Department of
Geography/Program
of Environmental
Science, University of
Calgary,
2500 University Drive
N.W., Calgary,
Alberta, Canada T2N
1N4
wnholden@ucalgary.
ca;
[email protected]
a

78

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Social & Political

1. Corruption
2. Many of the
proposed new mining
sites are in areas of
conflict, including
Mindanao.
3. Mining in the
Philippines is being
developed at a speed
& scale which likely
to cause massive
long-term
environmental
damage & social
problems.
3. Although the
Philippines has
strong laws designed
to protect the
environment,
communities &
indigenous peoples,
the law is viewed as
a mere technicality to
be circumvented
where the
investments are
concerned.
4. Human rights
abuses &
misreporting are
associated w/ current
mining activities.
5. Asking consent
from the IPs where
dev. takes place w/n

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community
1. The religious
sector of mining
oppositionists
includes Catholic
clergymen,
particularly the
politically influential
Catholic Bishops
Conference of the
Philippines (CBCP)
that raised a moral
issue in regard to
mining: the land must
not be defiled, the
environment
protected & the
disadvantaged
sectors particularly
the indigenous
peoples must not be
displaced.
2. BAYAN (Bagong
Alyansa Makabayan),
a leftist supraorganization that
coordinates mass
movements, seek
involvement in any
constituency of
resistance that they
can identify.

79

Response:
Company

Recommendation
s

Source of Data

a. Government
1. Demonstrate
that it adheres to
its own laws & intl.
mining best
practices &
standards by
immediately
canceling all
current mining
applications w/c
will
cause major envl
damage to critical
watersheds, ecosystems,
agriculture or
fisheries & result in
social disruption,
such as those in
Midsalip. Evidence
of serious
inadequacies in
consultation &
consent
processes.
2. Ensure
regulation &
redress
3. Establish an
independent
mining review body
involving civil
society & affected
communities, with
the power to

Mining in the
Philippines:
Concerns & Conflicts
Report of a FactFinding Trip to the
Philippines
July-August 2006
Copyright Columban
Fathers 2007
First Published 2007
by Society of St.
Columban, Widney
Manor Rd., Knowle,
Solihull B93 9AB,
West
Midl&s, UK

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

the
ancestral domain is
obtained thru
misinformation,
misrepresentation,
bribery & intimidation.
6. The (NCIP),
according to the IPs
failed to protect their
rights.
7. World Bank fails to
assist w/ the
countrys steps to
sustainable
development &
abide by obligations
to its own mandate &
obligations
under intl human
rights law.

Response:
Company

Recommendation
s
recommend
cancellation of
mining licenses.
4. Provide
independent
technical & legal
advice & support
to communities &
IPs
throughout the
mining application
phase in both the
FPIC & ESIA
processes & where
licenses are
granted
5. Upgrade &
restructure the
DENR to focus
exclusively on the
protection & dev.
of the environment
& renewable
natural resources.
6. Strengthen legal
frameworks for
sustainable dev.
by empowering
govt
depts, covering
health agriculture
& tourism, to
enforce standards
& take appropriate
action where
mining projects
threaten nat'l.

80

Source of Data

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

Response:
Company

Recommendation
s
strategy for
sustainable devt.
7. Establish an
inter-departmental
coordinating
committee to
approve all
extractive industry
projects. To
ensure
transparency &
accountability civil
society
participation at
committee level
would be required.
8. Empower local
communities & civil
society to explore
& pursue all
avenues available
w/in the law, at
local natl. & intl.
levels, to register
their concerns &
aspirations & seek
redress for wrongs
caused by mining
operations.
9. Sign up to the
Extractive Industry
Transparency
Initiative (EITI) &
publish details of
all payments,
taxes & royalties
made by mining

81

Source of Data

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

Response:
Company

Recommendation
s
companies.
Implement EITI in
accordance with
the EITI criteria,
ensuring
participation by
self-selected
representatives of
civil society at
each stage of the
process.
b. Environmental
concern &
sustainable
development
1. Protect
biodiversity &
apply the
Precautionary
Principle to any
mining or other
high impact
development to
ensure that they
only proceed
where there will
not be significant
negative impact on
the lives of the preexisting
population, the
environment or the
ability of future
generations to
meet their needs.
2. DENR should

82

Source of Data

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

Response:
Company

Recommendation
s
conduct regional
Strategic
Environmental
Appraisals (SEAs)
with independent
technical support &
effective
participation of civil
society.
c. International
Governance
1. Govts. establish
binding
frameworks to
regulate mining, &
ensure access to
courts & other
effective
mechanisms of
redress w/in the
home countries of
transnational
mining companies
& the financial
institutions that
support them.
2. WB should
assist w/ the
countrys
sustainable dev by
providing technical
& financial support
for the protection &
dev. of renewable
resources,
sustainable

83

Source of Data

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

Response:
Company

Recommendation
s
activities & poverty
reduction
programs &
support Strategy
Environmental
Appraisals (SEAs)
of the key islands
& regions affected
by mining.
d. Human Rights
Issues
1. Address human
rights violations.
2. Implement laws
to protect
communities-necessitates
independent
monitoring of the
processes of
determining FPIC
& community
consent.
3. Ratification of
international
treaties.
e. Financing
1. Mining
companies & the
investor
community are
urged to exercise
extreme caution in
funding any mining
operations in the

84

Source of Data

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

Response:
Company

Recommendation
s

Source of Data

Philippines until
effective
structures, laws &
controls are in
place to protect the
environment &
human rights.
2. Financial
institutions are
encouraged to
adopt & adhere to
the Equator
Principles, &
governments in the
EU & other major
investor countries
to ensure that
public money is
not invested in
ways which
support
irresponsible or
damaging mining
projects.
3. Adequate bonds
commensurate
with the potential
impact of mining
should be required
to fully cover
potential damage
& end-of-life envl.
& social costs.
[Link] govt attracting
foreign investments
in mining, but some
local governments

The trail of a mining


law: resource
nationalism in the
Philippines

85

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

Response:
Company

Recommendation
s

impede the
implementation of the
Mining Act.
2. The poor natural
resource-dependent
communities that rely
on fishing &
agriculture are the
ultimate recipients of
the adverse effects of
mining, both direct &
indirect.

1. The experience of
local communities in
mining:
dispossession
& displacement;
threatened
livelihoods;
infringed on
watershed
areas, denuded

Source of Data
*Paper read at the
conference on Mining
& Mining Policy in the
Pacific: History,
Challenges
& Perspectives, 2125 November 2011.
Noumea, New
Caledonia.

1. Guidelines for
the Free, Prior &
Informed Consent
(FPIC) currently
applied by the
National
Commission for
Indigenous
Peoples
(NCIP) are also

Civil society
organizations have
protested, filed legal
cases against mining
companies &/or govt.
agencies
perceived
to have facilitated the
operations of mining
companies w/out

1. Enterprises
are also liable
for a number of
tax obligations
to LGUsbusiness taxes,
real property
taxes &
community
taxes.

86

1. There is a need
for further study on
the system of
estimating
potential tax
collection, verifying
these estimates &
taking action when
there is failure to
realize them.

Minerva ChalopingMarch, PhD


Research Fellow,
'After Mining' Public
Sector Linkage
Project PhilippinesAustralia Studies
Centre, Institute for
Human Security
La Trobe University,
Bundoora 3086 VIC,
Australia
[Link]@[Link].a
u or
[Link]@[Link]
Transparency Issues
in the Philippine
Mining Industry by
Maita Gomez,
December 1, 2010

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns
forests & caused
environmental
vulnerability;
flagrantly
disregarded IPs &
human rights.
2. Promotion of
mining by the natl
govt appears to
fail in balancing its
three supposedly
non-conflicting
objectives
1) promoting mining
investments, 2)
achieving local
development &
3) protecting the
environment.
3. Law itself is
defective & as a
result 3 alternative
mining bills have
been filed in the Phil
Legislature.
4. For local
governments, smallscale mining is a
source of livelihood
& revenue for local
government units
(LGUs). From the
natl level perspective,
it is seen as a sector
that lacks integration
into the formal
economy & is

Response:
Government
being reviewed
by the
Congressional
Committee on
Indigenous
Cultural
Communities.
2. DENR-MGB
recently
recommended to
the President that
all mining areas
be declared as
mineral
reservation areas
in order to subject
companies to the
5% royalty.

Responses
Response:
Response:
NGO/CSO
Community
exercising due
diligence.

87

Response:
Company
Transparency
issues in the
Philippine
Mining Industry.
2. Additional
fees &
expenditures are
required of
large-scale
mining
contractors for
the purpose of
envl protection.
3. Contractors
are also
required to
establish a Mine
Rehabilitation
Fund to ensure
the availability of
funds for
compliance w/
envtl.
commitments
stated in the
EPEPs.
4. Contractors
are charged per
metric ton of
mine waste &
tailings created
by their
operations.
5.

Recommendation
s

Source of Data

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Environment &
Socioeconomic
(Mindanao)

Specific Issues &


Concerns
therefore less
regulated in terms
of taxation as well as
environment impact.
5. The mining
industry is also
plagued by several
social issues that
include health,
human displacement
& disrespect to
indigenous people &
cultures. Source:
drafted Medium-Term
Philippine
Development Plan
(MTPDP) for 2011
2016
6. Discrepancy
between potential &
actual collection of
excise taxes
7. Many members of
host localities
&communities are
unconvinced that
large-scale mining
ventures actually
bring dev to their
localities.
Issue 1: Potential
Hydrology & Water
Quality Impacts:
1. Generation of acid
mine drainage
2. Siltation of surface
waters

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

1. Ratel will
develop a
detailed
Environmental &
Socio-Economic
Baseline Study
Plan for the

Response:
Company

1. Will conduct
preliminary
mitigation
measures
through
Progressive
Rehabilitation/

88

Recommendation
s

Source of Data

This project should


apply generally
under the Mining
Act of 1995;
several other laws
& regulations may
apply

King-King CopperGold Project


Mindanao,
Philippines
Technical Report
Pursuant To National

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns
3. Changes in
hydrology
Issue 2: Potential
Socioeconomic
Impacts:
1. Subsistence
farming in the mine
facility areas
would be eliminated.
2. Temporary
disruptions could
occur in the normal
community life
during the
construction phase
due to influx of
construction
tradesmen.
3. The King-King
operations plan could
potentially entail
usage of a large
amount of water.
Water consumption &
rights could become
a significant
permitting issue.

Response:
Government
King-King project
through an
international team
led by AATA
International, Inc.
(AATA),
headquartered in
Denver,
Colorado, USA

Responses
Response:
Response:
NGO/CSO
Community

2. Social &
Community
Management to
include
Resettlement
Action Plan;IP
Plan;
Community Devt.
Plan; Cultural
Resource Mgmt
Plan; Public
Consultation &
Disclosure Plan.

Response:
Company
Restoration of
Areas
directed
towards meeting
stakeholder,
legislative, &
corporate
requirements.

Recommendation
s

Source of Data
Instrument 43-101 Of
The Canadian
Securities
Administrators
Prepared For
Ratel Gold Limited
& Russell Mining &
Minerals, Inc.
Prepared by
Independent
Mining Consultants,
Inc., October 12,
2010

Issue 3 Potential
Ecological Impacts:
Large acreages of
land would be
affected by the mine
operation,
particularly by the
open pit, non-ore

89

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

Response:
Company

Recommendation
s

Source of Data

material & low grade


ore management
facilities & tailing
management facility.
Environment &
Socioeconomic
(Mindanao)

Continued local
resistance by the
local Subanen & nonSubanen residents &
neighboring
municipalities to
oppose the mining
activities at
Canatuan, Siocon.

The national
government & the
MGB are keen to
fully implement
the Philippine
Mining Act of
1995 in
Canatuan.

The provl govt fully


supported TVI
Resources mining
project. But, the
municipal
government of
Siocon & Brgy.
Tabayo continue to
oppose the mining
operation of the
company.

Task Force
Detainees of the
Philippines (TFDP) is
among the first to
respond the issues of
the Subanen in
Canatuan that later
paved the way for the
creation of DIOPIM
Committee on Mining
Issues (DCMI).
Through DCMI &
other NGOs, the
SSAI were able to
tap the support of
local & international
organizations that
resulted to SSAIs
efforts to pursue the
conversion of their
CADC to CADT.

Economic
displacement of the
local Subanen &
SSMs from their
sources of livelihood

The NCIP intervened


in the division of the
local Subanen from
anti-mining & promining groups.

Resource Kit on
Mining Issues in
Mindanao
by Aida T. Vidal,
Alternative Forum for
Research in
Mindanao, Inc., 1st
AFRIM Edition, 2005

Containment of food
& supplies

90

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

Response:
Company

Recommendation
s

Source of Data

Threat & intimidation


against key leaders &
elders of the original
SSAI group
Environment &
Socioeconomic
(Mindanao)
Socioeconomic and
Cultural
(Claver, Surigao del
Norte)

The presence of
Taganito Mining
Corporation has not
radically altered the
agricultural
production of the
farmers in the area
since the mining site
is very far from the
farmlands.

Assisted the
host community
through
Livelihood
Program &
projects like
installation of
water refilling
station, family
enterprise
project, rice
brokering
(wholesaling &
retailing of rice),
general
merchandise,
vegetable
demonstration
farms, hog &
poultry raising,
agri-vet supplies
retailing, welding
& vulcanizing
shop, family
enterprise &
public market
funding.

Fishing activity is
affected. During
heavy rains & storms,
laterate soil creates
landslides that cause
devastation to
farmlands & the
coastal areas
become muddy due
to pollution that the
mining companies
produce.
Some coastal rice
fields & coco land
areas were converted
into mine tailing

91

Corporate Social
Responsibility of
Taganito Mining
Corporation in
Claver, Surigao del
Norte
John Vincent C.
Espenido
Unpublished
Undergraduate
Thesis
Department of
Sociology, MSU-IIT
October 2013

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

ponds.
The Mamanua
suffered severe
poverty & deprivation
due to the entry of
logging & mining in
their ancestral
domain. They were
deprived of their
rights over their land
as they had never
been part in the
consultation &
decision-making
process.

Response:
Company
*Assisted the
host community
through
employment
program,
education &
capacity building
program.

Recommendation
s

Source of Data

*Assisted
through facility
infrastructure
program
*Assisted
through health
care services,
nutrition, &
sanitation
program
*Initiated
environmental
protection &
rehabilitation
program
*Make sure that
there is
information,
communication
& education
program.

Environmental and
Socioeconomic
(Brgy Binuangan,
Tubay , Agusan del

Changes in the
womens involvement
in fishing activities
since the start of the

Government has
given them
fishing equipment
so as they can go

In case of
seasons
where it is
not possible

92

Impacts of Mining in
the Fishing
Community of
Barangay Binuangan,

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location
Norte

Specific Issues &


Concerns
mining operation.
Fishes that were
used to be seen near
the shore have now
swum farther away
from the shore
because of
disturbances done by
the ships present, &
because of the slit.
This further resulted
to an increase in
gasoline use since
fisherfolks have to
travel farther.

Response:
Government
on fishing trips.
Gave animals to
be taken care of
& use it as capital
to sell

Responses
Response:
Response:
NGO/CSO
Community
for them to
catch fish,
women
would go to
the
mountains &
plant crops
instead.

The mining company


threw their wastes,
esp. their motor oil
into the sea that
affected the fishes.
Lesser catch resulted
to lesser income.
The mining company
did not practice the
principle of
subsidiary: to
recognize the
inherent democratic
right to selfdetermination of
people, communities,
& nations.

93

Response:
Company

Recommendation
s

Source of Data
Tubay, Agusan del
Norte (2004-2012)
Catherine S. Gomez
Vanessa Kyle A.
Llamar
Rachelle Marie
Rosales
Unpublished
Undergraduate
Thesis
Department of
Socio., MSU-IIT
October 2012

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location
Sociocultural,
Economic,
Governance

Specific Issues &


Concerns

Response:
Government
Since 1989, the
Subanon of Mt.
Canatuan has
been protesting
against mining on
the mountain.
Despite the
inalienable rights
of the Subanon
who have tilled &
lived on the land
for centuries, the
Philippine
government has
continually
chosen to side
with Toronto
Ventures Inc,
Resource
Development
The mining
operation of
TVIRD evicted
more than 300
families,
threatened
farmlands &
water resources
of Siocon &
desecrated Mt.
Canatuan, the
Subanons sacred
mountain.

Responses
Response:
Response:
NGO/CSO
Community
1. Church
Subanon
*Organized DIOPIM
people of Mt.
or Dipolog, Ipil,
Canatuan
Ozamis, Pagadian
have been
Iligan, Marawi
opposing
Dioceses whose
mining
advocacy is to work
activities
with mining affected
since the
communities in order 80s.
to protect their
families, their
Signed
livelihood from the
petitions
destructive effects of both from
mining.
the Subanon
& other
*Educate the
support
community about
groups have
mining, the
been sent to
environment & their
government
rights.
agencies,
lobbying &
*Seek dialogue within other legal
the community &
means had
assist those who
been utilized
would otherwise have by the
trouble making their
people.
voices heard.

Subanon people

94

Response:
Company

Recommendation
s

Source of Data
Mining in Mt.
Canatuan, Siocon,
Zamboanga del
Norte: Patterns of
Collective Responses
of the Subanon
Nita AkiatanManabilang
Unpublished Special
Project
Masters in Socio
MSU-IIT
March 2008

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government
& the
environment were
affected by the
mining operation
but also people in
the downstream
communities.

Responses
Response:
Response:
NGO/CSO
Community

Response:
Company

Recommendation
s

Source of Data

Since start of
mining operation,
there was a slow
death of rivers &
sea.
Environment, Cultural ,
Political &
Socioeconomic
(Sitio Punta Naga,
Cagdianao, Claver,
Surigao del Norte)

Mamanua were
affected after their
resettlement in terms
of mining in the
economy, politics,
religion, language &
education & health
aspect.

Provided
concrete houses
for the resettled
Mamanua.
*Built school
building, church
building, health
center,

Economy
*The Mamanua no
longer practice
hunting due to the
noise & disturbances
created by the mining
companies which
made the wild
animals moved from
the area.
*After the
resettlement, the
value of money for
the Mamanua
changed.

*Extended basic
services such
as water source,
electricity &
power source,
educational
opportunities

95

From Dait-dait to
Resettlement: The
Impacts of Mining
Among the Resettled
Mamanua in Sitio
Punta Naga,
Cagdianao, Claver,
Surigao del Norte
Kimberly M. Dantes
Tina Abigail B.
Purganan
Shem A. Tuazon
Unpublished
Undergraduate
Thesis
Department of Socio
MSU- IIT
October 2013

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

Political
* There is now a
change in the
process of selecting
a leader & their
preference of the
present political
structure
which is democratic
& participatory in
nature
Before resettlement,
the selection of the
tribal leader would be
decided from the
elders of the
community & the
Baylan through his or
her dreams.
*Weakening of
traditional bonds of
kinship & customary
laws
Geo-physical
environment
*Due to mining
activities, the soil
becomes infertile &
the Mamanua can no
longer plant in the
barren areas.
*In terms of the
moisture soil, it is
now parched due to

96

Response:
Company

Recommendation
s

Source of Data

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

Response:
Company

Recommendation
s

Source of Data

the plants that were


pulled out because of
the mining activities.
*There is now a
change in the
freshness of air. It
becomes so warm &
dull.
*Water now becomes
filthy.
Environment
Cultural
Socioeconomic
Political

Economic
*Confiscated several
commodities for sale
by some owners of a
sari-sari store in
Canatuan
*Checkpoints
prevented the people
from selling their
products & bring
goods to their
houses- food
blockade
*houses were
demolished
*prevented from
planting root crops,
bananas, coconut,
rubbers & the like
*damaged &
destroyed coconuts &
bananas
*husbands have to
work in the citymany kilometers

Mining in Mt.
Canatuan, Siocon,
Zamboanga del
Norte: Patterns of
Collective Responses
of the Subanon
Nita AkiatanManabilang
Unpublished MAS
Department of
Sociology
MSU-IIT
March 2009

97

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

away from Canatuan


in order to survive
*Low farm production
*Fishpond owners
loss of income due to
fish kills brought
about by toxic
chemicals that flowed
down the river
affecting water
quality
Families depending
on fishing industries
had difficulties to
sustain their families
basic needs
Cultural
*Mining desecrated
Mt. Canatuan which
is the Subanons
sacred mountain
*Mt. Canatuan had
turned into a
dumping site of toxic
chemicals
*Health problems
existed due to the
contamination of
water
Environment
*Slow death of rivers
& seas due to
siltation
*Pollution
*Forest denudation
Economic

98

Response:
Company

Recommendation
s

Source of Data

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

*Livelihood of
farmers & fishermen
are affected by
pollution.
*The mining industry
not only affected the
Subanon people in
the downstream
communities mostly
those who are
engaged in fishing.
There is now scarcity
of fish.
Political
*Used of coercion
*Checkpoints
prevented the free
movement of the
Subanon in the area
*Numerous incidents
of harassments &
frustrated murder
*Prevented access to
usual roads
Sociocultural
*Subanon had been
displaced from their
homelands
*Communities were
driven out from Mt.
Canatuan &
prevented from
conducting rituals on
the sacred grounds
*People were

99

Response:
Company

Recommendation
s

Source of Data

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

Response:
Company

Recommendation
s

Source of Data

displaced/evicted
from their homeland
&
*Suffered hunger,
sicknesses & even
death
*Feared that no l&
could be inherited by
the next generation
There are 4 major
areas to consider in
deciding whether an
area may be
considered a No-Go
Zone or a Go-Zone.
These include 1)
Fragile and NonFragile Ecosystems:
Irreversibility of the
effects on fragile
ecosystems some
conservation units
such as national
parks, biosphere
reserves and world
heritage sites; 2)
Food Security:
Increasing the threat
to life through
depletion of water
and food resources in
areas of marginable
resources; 3)
Disaster Risk:
Increasing the
magnitude and
exposure of poor

Establishing a No Go
Zone Policy in the
Philippines: Issues,
Concerns and
Guideposts (A
Working Draft). 2012
by Alyansa Tigil Mina

100

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community
communities to
disaster risk; and 4)
Intensified Conflict:
Increasing the
exposure of
communities and
employees to the
risks of armed
conflicts and increase
the number
unresolved rights
abuse that worsens
the situation of
impunity.

Sociocultural:
The prime social and
cultural issues tend
to fall into the
following interlinked,
areas: economic,
women and mining,
internal conflict,
cultural and spiritual
impacts, and human
rights violations
Health:
Tuberculosis and
other lung diseases
are the common
illnesses of miners in
the Atlas
Consolidated Mining
in Toledo, Cebu.
There are also rare
cases of gas

Response:
Company

Recommendation
s

Source of Data

Pitfalls and Pipelines:


Indigenous Peoples
and Extractive
Industries.
Anongos, [Link]. 2012
published by Tebteba
Foundation and
IWGIA
The Impact of
Corporate Mining on
the local Philippine
Communities: The
Cases of North
Davao Mining, APEX
Mining, Benguet
Corporation and
Black Mountain in
Davao del Norte, and

101

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community

Response:
Company

Recommendation
s

poisoning and eye


effects as the Atlas
workers undergo a
physical examination
hospital each year.

Socio-cultural:
Displacement and
violence against
indigenous
communities due to
mining operations
and expansion.
In recent times,
mining development
and expansion of
large-scale
agricultural
enterprises threaten
the security and
future of the lumads
in their ancestral
lands. Their
resistance to these
forms of development
aggression are met
with state-sponsored
and privately-funded
violence
The Case of the
Banwaon Evacuees
of Balit, San Luis,
Agusan Del Sur

Source of Data
of Atlas Consolidated
Mining and
Developmen
Corporation in
Toledo, Cebu

After months of
encamping in
their evacuation
center where
scores have died
and got sick, the
Banwaon Bakwits
of Balit, San Luis,
Agusan del Sur
was able to return
home last March
18, 2015 as
military officials
promised to pull
out from civilian
facilities and
cease camping
near populated
areas.

Led by the nuns of


the Rural
Missionaries of the
Philippines, a
contingent of two
hundred supporters
braved the long travel
from various points of
the country - Davao,
Iligan, Cagayan de
Oro and even as far
as Manila, to
converge in Balit last
March 8-10, 2015 in
order to unite with
more than a
thousand Banwaons
displaced from the
intensifying
militarization of their
communities. The
International
Solidarity Mission
confirmed and
documented the

On January
23, 2015,
174
Banwaon
families went
on a
massive
exodus from
their
ancestral
lands to the
village
center of
Balit. They
came from
14 sitios
from four
barangays of
the
Municipality
of San Luis.
The
evacuation
caused the
deaths of

102

Mc Andrew, John
(1999)
Dumas, Mary Louis
(2014), Salt of The
Earth, Iligan City:
Rural Missionaries of
the Philippines.

N/A

[Link]
/03/16/statementbalit-mission

N/A

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns
Summary of Human
Rights Violations:
Forcible
evacuation
Extrajudicial
killing
Death in
evacuation
Violations of
childrens
rights
Threats,
harassment,
and
intimidation
Restriction of
movement
Gun touting
Destruction of
properties
Divestment of
properties
Violation of
domicile
Use of public
facilities for
military
purpose
Use of civilians
as guides or
shields
Fake surrender

14
2
3
13
31

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community
rights violations and
three
undertook psychochildren and
social interventions
the spread
and established a
of various
health clinic during
illnesses that
the two-day affair.
afflicted
hundreds of
women, the
elderly, and
children in
the
evacuation
center.

1
1
3
5
1
12

2
1

The killing of Balit


Bgy. Capt. "Angis"
Precioso Sr. last
December 2014, an
anti-mining advocate

After months
of
encamping
in their
evacuation
center where
scores have
died and got
sick, the
Banwaon
Bakwits of
Balit, San
Luis, Agusan
del Sur was
able to
return home
last March

103

Response:
Company

Recommendation
s

Source of Data

Developing a Shared Agenda for Mining Development in the Philippines


General
Classification of
Issues & Location

Specific Issues &


Concerns
who opposed the
entry of the
Malampay, Makilala,
and Tambuli Mining
companies into their
ancestral domain ,
was the final straw
that pushed
Banwaon Bakwits to
collectively flee their
homes and descend
into the abandoned
hospital compound
where they endured
desperate conditions
for two months.

Response:
Government

Responses
Response:
Response:
NGO/CSO
Community
18, 2015 as
military
officials
promised to
pull out from
civilian
facilities and
cease
camping
near
populated
areas.

104

Response:
Company

Recommendation
s

Source of Data

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

APPENDIX 1B. OUTPUTS OF KEY INFORMANT INTERVIEWS WITH SELECTED


GOVERNMENT OFFICIALS

This section contains the salient points from interviews conducted with selected government
officials as key informants:
Informant 1: Assemblyman, Member of Lower House/Congress,
September 17, 2014, 10:00-12NN
Mining Issues
As an LGU official for almost a decade, the assemblyman acknowledged the prevalence of
mineral resources in the country and its contribution to the economy. He expressed his
enthusiasm for mining development in the country, particularly in his region. While there is
observed prevalence of rampant small-scale miners who eke out a living from ore extraction,
their activities are unregulated, the income generated from which is not registered,
notwithstanding environmental destructions. Mining industry is actually a new industry and
there are many gray areas or loop holes of the old law where the industry can take advantage
of.
It was underscored by the congressman that banning mining is not apparently the answer and
the more it is banned, the more it cannot be regulated. If the government is not prepared, there
will be tolerance of illegal small-scale miners. From field observations, there are gold-buyers
estimated to be between 6kg to 20kg per month from illegal sources. This speaks of weak
governance structure indicating frail institutions to execute the law. Apparently, the local
governments do not have the teeth to enforce the law. It is difficult to pinpoint responsibilities.
On the other hand, when the license is required, there are corresponding responsibilities. In this
sense, more regulations should be done by the executive branch.
Most importantly, it has been his observation that ores are being extracted out of the country. It
is his strong position that the extraction process be done within the country to
maximize/enhance the benefits considering that the GDP derived at present is very minimal.
This is value-adding where the essence is to leverage better and optimize the value of
resources. For instance, it was cited that 48% iron is the requirement but nickel is also being
included and brought out. This is an appropriate way to attract investors who are capable of
doing it with capacity to invest on a long-term basis. This necessitates constitutional amendment
of the 1995 Mining Bill Act to include sharing for the benefit of the next generation and the
county in general. This bans the export of unprocessed mineral ore to encourage growth and
develop capacity for mineral processing. This means transformation of extracted primary
mineral or mineral ores to a higher quality and quantity of processed minerals to result to the
value-adding and eventually creating more jobs and increase in domestic revenues in terms of
taxes or duties. In this context, House Bill 4728 has passed the first reading at the House of
Congress entitled An Act Providing for the Mandatory Domestic Processing of All Mineral
Resources. The congressman opined that it is for the good of the country to craft the law and to
have a research center for mineral industry.
He expects lobby support from those taking a position against mining. However, he expects the
bill will get the ire of the big business. There may be oppositions from the Chamber on the
ground that there will be additional capitalization/investment and those with funds may be
sidelined. The natural resources committee may also oppose it so as to secure the interest of
mining companies. It is a proposition to introduce incentives such as tax holidays along with
responsible mining. At the end, it was posed, how the academia could help. It was deemed
necessary to undertake research on mining industry to inform the leaders so as to dispel
ignorance about the mining industry.
Informant 2: Assemblyman, Member of Lower House/Congress
September 17, 2014 [Link]PM

105

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

Mining Issues
As embodied in Executive Order 79, the issuance of exploration permits is rigid providing for the
no-go zones and referring to areas which should not be subjected to exploration. For instance,
in Surigao, a mining company that applied for 3,500 hectares and included in the no-go zone
incurred heavy expenses for the application and gone through the FPIC process. Questions
were raised on why mining industries have to spend millions even in the application for
exploration stage when there is uncertainty as to substantial amount of mineral deposits in the
applied area. Thus, he opined that the mining industry cannot be improved because of very
restrictive policies.
There exists a final draft of MICC, but this was not officially filed yet in congress. Regarding the
proposition to improve additional taxes, it is only 10% adjusted earnings and currently, there is
only 2% excise tax. In areas mostly covered by mineral reservation mostly in Mindanao,
practically in Surigao provinces, there is additional percentage. If the draft will be approved,
there would be 10% windfall profits. The minerals being owned by the state must have a share
and for mining investors, big investment must have a commensurate return.
Big risk was mentioned such as the case of Silangan mines, a sister company of Philex
Company that was owned by Pangilinan, a high ranking official in the country. Having
exhausted the mines, they reportedly utilized old tailings. About PhP1.5B dollars was the
original target in 2017 to operate the gold mining company. It was reported that they were then
digging 100 kms down when they accidentally hit an area that produced a problem on strong
water intrusion. Until now, they could not trace and discern where the water comes from. This
necessitates the hiring of new group of consultants. This has technical implications and risks
since water keep coming out. The resort is to adopt an open pit, which is not environment
friendly.
Environmental degradation and hazards pose interesting challenges. Two cases have been
pinpointed. Case 1: From Siargao, Bucas Grande, on a small boat/banca, you can see the
mountains becoming bald in Placer, Claver. Inevitably, one can compare the difference from
Siargao where it is all green as against mining areas full of dust and chocolate-like seas due to
serious sedimentation. But these mining companies are already in place that necessitates
monitoring to check compliance to regulatory standard.
Case 2: Nickel processing plant in Taganito, Claver. The presence of bad smell was subjected
to investigation. While the company alleged that this is no cause for alarm, it calls for a scientific
endeavor and tie-up with the academia. This apparently needs facilities and equipment to
effectively carry out the scientific undertaking.
Another issue pertains to LGU hosting the mining companies. The LGUs cannot get share in
ones term as congressman when (under the law it has 40% share under national government)
considering that this will take a long period of time, that is about 2-3 years, for the national
treasury to plow back the LGU share of funds.
Moreover, the presence of the indigenous peoples in the locality was posed as a problem. The
IPs are entitled to 1% royalty share. In the case of Taganito mining company in Placer, the
average amount received is PhP100M per year. But this apparently mainly goes only to the
leaders. The IP lawyers are also benefitted. This is mandated and appropriated by the national
government and the services of the lawyer are not necessary. It was also posted that the IP
community remains poor. And the ails and woes at the community level are mounting. There are
even no medicines for the constituents. It is a continuing question what happened to the million
shares.

106

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

The congressman further noted the problem of law implementation that while laws good laws
abound, the problem lies in the implementation. This is the governance aspect. It was cited that
there is an impending bill limited only to strategic minerals such as nickel, iron, copper,
chromite, and manganese. While there are two processing plants for nickel, what are exported
are the concentrates. While the whole ore is exported, only Nickel is charged. In this case, the
country is short changed and not fully benefitting from the mining industry. With respect to the
approval of the impending bill, doubt was cast as this will take time. At the House of
Representatives, there are anti-mining and pro-mining groups, but usually, it is the anti-mining
ones that usually attend hearings.
As a whole, mining is good if there is compliance with regulation and implementing bodies to
strictly monitor. It was declared that the office of the assemblyman is willing to coordinate with
research-related tasks.
Recommendations:
-

Organize a technical working group, albeit this will take time.


equitable sharing of resources. The problem in the utilization of funds by the IPs was
mentioned as a problem as there is distortion in use of funds.
guidelines necessary on fund utilization, e.g.,how much will go to health or education

Informant 3: Official, Board of Investments Office


According to this official, there is a future for mining being a top-ranking in the world in ore
deposits such as Au, Cu, Ni, Chromite. Having rich deposit of mines, the MGB (Mines and
Geosciences Bureau) declares that there are still mine ores to be discovered in the future.
But the future actually is dependent based the policies we are preparing right now. It was
stressed that it is important that what we craft today in terms of legislations and policies
would determine the future of the mines. We have the mines, but it all depends on the laws
to make our country attractive to investors, and to make it acceptable to stakeholders,
communities, IPs. If we have sound economic policies and sound laws on mining, then
surely a bright future for mining will follow. This is the reason why the president for the last 2
years issued EO 79 to rationalize the mining industry and to bring more emphasis on
aspects that are really causing constraints on the mining industry.

Issues and Concerns:


1. Environmental
2. Economic: This pertains to government laws on equitable sharing of mining revenues.
People want mining but they seem hesitant because they feel they do not get fair share
or enough of what they are supposed to get.
The assemblyman declared that at present the sharing is 2% for excise tax. There is a
pending law crafted by BOI. It depends on who is talking when it comes to equitable sharing.
When you are in the industry, then you say you are already giving enough to the
government. But if you are in the government, you say you need more than what you are
receiving. This is like a tug-of-war, but it is something that we expect. What we really expect
to happen is that industry and government should meet and agree together on terms where
both are satisfied in regard to equitable sharing. The proposed bill is addressing to craft a
new fiscal regime for mining. It is an initial proposal how much the government obtains a
share for the mining revenues. We dont really call it sharing because in fact, the mineral
belongs to the state and the mining companies are just the contractors (subsurface rights,
etc). And they enter into an agreement and part of this agreement is how they are going to
share. The equitable sharing will still have to be determined. It is not fixed: 50-50, 20-80?
Between that could be an equitable sharing because you have the revenue, then deduct all
the cost to include the investment cost and expenses to be able to obtain the earnings/
revenues. Just like between brothers and sisters, the most equitable sharing is when, you
divide the cake into two. But in mining, its not just as simple as that.

107

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

What is 50-50% today is only for FTAA (Financial and Technical Agreement). Two
agreements in mining: FTAA and Mineral Agreement.
Mineral agreements
1. MPSA
2. Joint venture: government has to put its equity
3. Co-production: government has to provide facilities and get involved in expenditure
Co-production and joint ventures are not very common. With these agreements, the
government has to invest. And since it has no money, it will always be on the MPSA (where
there is a private company coming in) where a lot of mining companies are. This is going to
be Filipino owned corporation, 60% should be Filipino-owned. Under the FTAA, there are
only six but this is only for the big companies. In FTAA, it can be 100% foreign owned.
The Tampakan, Oceana gold in Nueva Viscaya is the first and first one to operate. FTAA
has also some modes of sharing that has evolved from time to time. MGB has issued
different DAOs with different ways of sharing. The most current is 50-50% sharing. Basically,
revenue is less cost = net mining revenue (NMR), still going to pay excise tax, corporate
income tax, IPs all charges that the government requires where you total everything you
pay to government, if that is exactly 50%, then thats the 50-50 sharing. But normally, what
the company pays to the government is below the figure. For instance, 100M is the 50% but
you were able to pay only 60M, then you still need to pay 40 to make it 100M. This is the
current, 50-50 sharing. The government needs higher, but the industry is still looking at this
as too much.
3. Nationalistic aspect or patrimony of the nation: What belongs to the state, it should be
the people in the Philippines who will develop it. But we dont have the capability,
technology and capital, the reason why we need foreign investments.
In addition, the Philippines has the best resources in the world for some commodities. We just
had a five six years global mining boom but none of the major companies except Xtrata has
invested. When EO 79 was issued, they suspended new investments on mining until the new
regulation on sharing is passed (for the past 2 years). Prior to that, there were mines that were
committed even before five years. Some issues were the banning of open-pit mining For
example, the local government ban in South Cotabato. The reason why Tampakan did not go.
They had some discussions with LGU to reconsider this ordinance and even the national
government is pressing the LGUs to lift that ban because national policies do not really ban the
open pit type. National policies should always prevail over local ordinances is an issue that
needs to be resolved. But Tampakan is going to push through to develop that mine: its a big
mine and they have already invested a lot in exploration and social development.
In regard to the proposed bill, how are we dealing with those who are involved especially with
the private companies who do not feel how equitable sharing is being defined? When we crafted
this bill, they participated in doing simulations based on what we were proposing. So, they have
their data and they applied our tax structure and showed to us the results. Two indicators:
Average Effective Tax Rate (AETR) and Internal Rate of Return (IRR). How the IRR of mining
companies will look like if this will be the fiscal regime. They have their own model and they also
adapted our model. They have their assumptions, 20-year projection, projected cost, revenues.
They compute what will be the IRR and the government computes for the AETR which is
normally for the government. How much share is the government getting is measured through
the IRR. We need to take a close look at those two indicators. The industry said that its too high
for the government. Ours is just a very marginal IRR. First of all, the mining companies should
acknowledge that we are defining the structure. The structure is almost the same as FTAA, but
this time it is 55% government and 45% mining company. They put costs that are not maybe
directly related to mining because these are general/ administrative. The capping is 10% of the
mining, milling, processing cost - the bulk of mining operations cost. If you compare it with the
general administration, it is approximate to this cost or even lower. Depreciation is already part
of the operating cost. How much of that interest should be allowed? World Bank recommends
thin capitalization so industry should not depend so much on loans: 25 equity 75 loans for BOI
projects. On the part of the mining company, some say they can incur more loans since they
usually borrow from their affiliate companies abroad to avoid the abuse of charging too high
interest. Because interest rate is deductible, the implication is less tax to accrue to the
government coffers.

108

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

The main part of our structure is sharing.


1. 10% of gross revenue is the minimum share the government should get regardless if the
industry is earning or not, provided there is revenue.
2. Excess profit is similar to a windfall profit. In times when there is a boom in the mining
industry and excessive profit is acquired, the government must also have its share.
Note that the sharing system is already applied in other countries. The companies are hesitant
since the 55 share for government is too much for them. But they are not telling us, they just
say we dont want the fiscal regime. In engaging with the industry, we start with the chamberwhere big mines are members of chamber. They explained their hesitance with the tax rates in
one of the meetings too big for the government, too little for them left to realize a reasonable
IRR.
Views on mandatory processing. Although Indonesia already started to ban its minerals,
they want more value added on their ores, especially on the nickel. In Mindanao, there is
direct shipment of tons and tons of dirt because its mostly soil with a very small content,
2-3% or even lower, of nickel are being exported there. We encourage processing their
minerals rather than exporting it raw. Thats what we are going to look at in the future.
On tax holidays, we have to give incentives because you cannot just ban if you dont
prepare facilities, invite investors into this area and offer incentives.
The present government is not aggressively promoting mining right now but still
encouraging exploration. But we hope that we can fast tract the legislation and promote
mining.
We are preparing a road map for the mining industry for the value adding particularly for
gold, copper, nickel and other metals for commodity. We started it already with copper
smelter. The copper smelter is Pasar/ Glencore (foreign-owned) this is importing the
copper concentrates raw materials to make copper cathode. It sources its raw material
PNG and other countries nearby, Indonesia, Brazil for outsourcing concentrates. Irony: we
have copper mines producing the concentrates but they are not selling it to Pasar (foreignowned company) because they are given the freedom to export and also Pasar has the
freedom to import. Price of Pasar is too low and the factor is logistics. They say it is even
costlier to ship to Pasar than Quatar. Issue of monopoly, a state-conferred monopoly. If its
just one operator, and it has the right to process the ore, thats monopoly. Pasar is
expanding its facilities.
On Integrated Mining Road Map for the Philippines. BOI, NEDA, DOST need to make an
integrated/ unified roadmap for the Philippines. Complementary: DOST roadmap has a lot
to do with environmental issues and other aspects; DTI roadmap usually focuses more on
production, value adding, operations.

When EO 79 was issued, one of the units that were institutionalized was the creation of the
Mineral Industry Coordinating Council (MICC) a big council, theres no other council that
the government recognizes. We used to have a mineral council from DENR, but this was
abolished. MICC comprises cabinet ministers, NEDA, DENR, DOF, LGUs, DTI, DOST that
would looking into mining. It is in the EO 79 that a roadmap has to be crafted and lodged to
DTI. The council has four technical groups: 1. Economic concerns, 2. LGUs and smallscale mining, 3. Environment, 4. Policies- AITI. NEDA is the MICC and it is aware of that
roadmap. This is important on how the mining industry will help the industrialization of the
Philippines.

109

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

APPENDIX 2. FGD Participants Profile and Highlights of Proceedings in Davao and


Manila

2.1.

FGD Participants Profile in Davao, Proceedings, and Photo Documentation

Focus Group Discussion on Responsible Mining in the Philippines


Seda Hotel, Davao City, June 23, 2014
Group 1 Participants Profile
Table 2.1. FGD Participants Profile (Davao, June 23, 2014)
Name

Age

Sex

Occupatio
n

Position

Current
work
address

1. Ernani D.
Villasencio

34

Male

Faculty
member

Research and
Extension
Coordinator,
COE, USEP

Obrero St.,
Davao City

2. Datu
Constancio
D. Mamotuan

70

Male

Coconut
farmer

President, Davao
United Coconut
Farmers and
Farmworkers
Association

3. Rev. Fr.
Ronald
Sanchez

54

Male

Roman
Catholic
priest

President,
Hugpong
Kinaiyahan
(Organization of
Tree Farmers,
Planters, Wood
Processors and
Producers, Inc.)
PMRB Member,
Davao Regional
Hospital

4. Strauss
Fernandez

50

Male

Advocate

Number
of years
with
organiz
ation
7

Contact
details
cell/email

Religious
affiliation

09264462605
bahl_1999@y
[Link]

Christian

Limaton,
Mati City

15

0915577337

Islam

Kalagan

College

Apokon,
Tagum City

22

09204537852
09434762602

Roman
Catholic

Cebuano

PhilosophyTheology

Chancery
Office,
Rizal,
Tagum City

Camia St.,
Junal
Subd.
Matina,
Davao City

3
months

09289853228
tsfernandez@
[Link]

52

Male

Farmer

Chairman, Kilos
Ka Kilosan
Maralita sa
Kaunlaran, Inc.

Dumangas,
Nuevo,
Kalamansi
g, Sultan
Kudarat

20

09065132346

Roman
Catholic

6. Ryan D.
Rosauro

38

Male

Journalist/
NGO
worker

Peace
Partnership
Coordinator,
PAILIG

Pala-o,
Iligan City

09275446066
[Link]
@[Link]

Roman
Catholic

7. Nita M.
Akiatan

36

Fem
ale

Sangunian
g Bayan
Member

LGU

Josefina,
Zamboang
a del Sur

Roman
Catholic

8. Noreen S.
Pallong

39

Male

Community
Organizer

President, AlBalagh Ulama


Association, Inc.

Isabela,
Basilan

09103695159
09985398459
lumad78@yah
[Link]
09264113089
noreen_pallon
g@[Link]

Koronadal
City

Tiling Tribal
Hall,
Mawbal,
RT Lim

09093624211
nldblb@yahoo
.com
09156712656

Pagadian

56

Fem
ale

10. Timuay
Charlito V.
Tugao

34

Male

11. Romeo M.

58

Male

Pastoral
worker/
Missionary
Small scale
miner

Farmer

110

Master
graduate

Cebuano

5. Antonio
Fernandez
Manaog

9. Sr. Nelda L.
Balaba

Highest
educational
attainment

Environmental
Advocacy Officer,
AFRIM

Sec. Gen.
SOWESMINCOC
O
Justice and
Peace Program
Coordinator
Chairman,
Pagbogolahan (7)
Pito Dulongan
Sapa Nog
Zamboanga
Peninsula
Member,

Ethnic
affiliation

College
graduate

Cebuano

MA in Conflict
and
Reconciliation
Studies
(Thesis)
MA

Islam

TausugYakanSama
Banguingui

Master of
Public
Administration

Roman
Catholic

Cebuano/
Boholano

BSE

Islam

Subanen

Civil Engineer
undergraduate

charlitugao@y
[Link]
09267835777

Christian

College

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Zuyco

SOWEMINCOCO

City

12. Helen B.
Pondevida

57

Fem
ale

Faculty

Director,
Research
Division, USEP

Obrero,
Davao

35

13. Carlos
Cerezo

45

Male

Governme
nt
employee

Technical staff,
MINDA

St. Laurel
Avenue,
Davao

14. Antonio P.
Kinoc

65

Male

MILF
Peace
Panel

MILF Peace
Panel Member

Magallanes
Cotabato
City

14

15. Fe C.
Diabordo

53

Fem
ale

NGO
Employee

Chairperson,
Kongreso ng mga
Mangagawa,
Magsasaka at
Mangingisda
Para sa
Kaunlaran
(KOMMMPAK)

Tawontaka,
Datu Odin
SInsuat,
Maguindan
ao

17

111

mczuyco@gm
[Link]
09228093214
09214451449
helenbp@yah
[Link]
09981500141
[Link]
@[Link].p
h
09354540972
09983751456
09059605127
[Link]@ya
[Link]
09066616808
jdiabordo@ya
[Link]

Protestan
t

PhD Biology

Christian

Master of Arts
in Peace and
Development

Protestan
t

Blaan

AB LLB

Boholano,
Subanen

BS Commerce
graduate

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

Focus Group Discussion on Responsible Mining in the Philippines


Seda Hotel, Davao City, June 24, 2014
Group 2 Participants Profile
Table 2.2. FGD Participants Profile (Davao, June 24, 2014)
Name

Ag
e

Sex

Occupati
on

Position

Current
work
address

1. Joel Q.
Bernales

49

Male

70

Femal
e

Roving
COMREL,
SRMA RO XII
Executive
Director, KDI

Maa,
Davao City

2. Imelda A.
Dela Cruz

Mining
Company
Employee
Developm
ent
worker

3. Arvin L.
Carlom

44

Male

Developm
ent
worker

Community
Relations
Manager,
AMCOR

4. Mario N.
Bulacan

49

Male

Engineer

EMS II, EMB


Region XI

5. Edilberto
L. Arreza

56

Male

Engineer

Regional
Director,
DENR EMB
Region XI

6. Jose
Paolo M.
Evangelist
a

24

Male

Lawyer

Associate
Lawyer, BMV
Law Firm

7. Charlyn G.
Binghoy

50

Femal
e

Governm
ent
employee

Provincial
Officer, NCIP

8. Lorel M.
Castillo

43

Male

Mining
Engineer

Head, Lands
and Tenement

9. Lyndon H.
Roble

52

Male

Faculty

USEP
Dean, College
of
Engineering,
USEP

Num
ber of
years
w/org
2

375 B Palm
Drive,
Buhangin,
Davao City
Macambol,
Mati City

40

Km 7,
Lanang,
Davao City
669 A.
Quezon
Street,
Davao City
8000
7F Abreeza
Corporate
Center,
Davao City
Tandag
City,
Surigao del
Sur
Davao City

26

Davao City

112

Contact details
cell/email

09153489669
[Link]@y
[Link]
(082) 2220236
09399237446
imy_kdi@yahoo.
com
(087) 8114305
09999940742
dodongarvin@g
[Link]

Religiou
s
affiliatio
n
Roman
Catholic

Ethnic
affiliati
on

Highest
educational
attainment

Ilongo

MPA

Roman
Catholic

Dabaw
enyo

Roman
Catholic

Bohola
no
Cebua
no

Master in
Sociology and
Master in
Management
Master of
Science in
Environmental
Resource
Management
with ongoing
PhD in
Development
Administration

09213131847
mariobulacan@y
[Link]
(082) 2216535
09177198853
ed_arreza@yah
[Link]

Roman
Catholic

09328630829
Jpmevangelista.
[email protected]
om
09286123809
ncipsurigaodelsu
r@[Link]

Catholic

Catholic

Manob
o

MPA

09088868620
[Link]@g
[Link]

Roman
Catholic

College
graduate

30

09088806817
lhrobledean@ya
[Link]

Roman
Catholic

Ilonggo
/
Tagalo
g
Cebua
no

34

23

Roman
Catholic

Manob
o

Master of
Public
Administration

LLB

PhD/ Doctor of
Technology

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

Focus Group Discussion on Responsible Mining


Date: June 23, 2014

Time Started: 9:10 AM

Time Finished: 2:00 PM

Table 2.3. FGD Highlights of Day One Proceedings (June 23, 2014)
Issue
1. Opening Prayer
2. National Anthem

Speaker
Datu Constancio
Manguntuan
Nita Akiatan

3. Welcome Remarks

Sukarno D. Tanggol (MSUIIT)

4. Introduction of
Participants
5. Rationale of the
Activity

Phyllis Marie Teanco


Saleem H. Ali

Prof and Director for Social


Responsibility in Mining
saleem@[Link]

1. Presentation of
Outputs in Shangrila
on 2013
2. FGD Proper
FQ1: Based on your
experience, what do
you think are the
issues and concerns of
mining industry in your
locality? What are the
possible underlying
causes?
1. Social

Phyllis Marie Teanco


Angeli V. Mag-aso
Amabelle A. Embornas
Nimfa L. Bracamonte

Topics

Discussions

I
1. Mining exacerbates existing
conflicts n Mindanao.
2. Learn from Australian experience
considering the Mindanao unique
situation and the tri-people in
Mindanao and the Bangsamoro
struggle
3. Role of academia i.e., research
and extension for sustainable
mining for peace and
development in Mindanao
Environmental Conflict Resolution:
Is there a way forward for mining
and development in the
Philippines?
1. Definition
2.

Goals see#2 focus in Peru


experience for a possible national
dialogue
3. UQ Background
4. Centre for Social Responsibility
in Mining
5. Vicious Triangle inequality
one of the great issues as per
IMF
6. Structural Elements key
issues .. moving from positions to
principles.
7. Hard and Soft
8. Creating versus Claiming Value
9. Avoiding Entrenchment
Governance Cluster
Environmental Cluster
Social Dimension Cluster
Consolidated Output

Nimfa L. Bracamonte

Datu Tony

Why the mining areas remain poor?

Sister Nelda Balaba

Mining is in the water shed and


affects food security in the lowlands

113

They have quarrying permit


but they mine and carry soil
to Davao for further
exploration.

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker
Ryan Journalist - TVI

Nita

Saleem Ali
Timuay Charlie

Topics
FPIC and social acceptability
- engineered consent process
among the affected communities
-cannot impose a uniform process
across the country but should be
specific to certain regions
-reception on the part of the IP
-killings and legitimacy of IP leaders
Timuay Anoy
Process must be specific to tribal
conditions
TVI and NCIP organized the tribal
leaders to sign the consent
TVI organized a tribal council
because the real Subanens
opposed
What is the appropriate way of
representing the IPs?
Overlap of areas of domain due to
claim of IP leaders and monetary
issues
Recent assassination last August
2013 so training of next generation
of leaders important

Discussions

From Sibugay to Norte- one


of the areas of Timuay
Manglang. Our area is in
Zamboanga Sur to
Pagadian. Timuay Manlang
is one of the leaders
fighting against the mines.
His descendants occupy
the position now.
The problem with TVI was
politics. There was already
a leader but they placed a
different leader, so projects
cannot be implemented.
Just like in Baligi-an in
Timuay Anoy it was
claimed under Dondingan.
But Anoy is also claiming it.
So they are fighting
nothing will happen to the
tribe.
The leaders themselves are
in conflict. That is why we
are in between these
parties to have peace. The
seven rivers tribes need to
be in place. The seven
tribes need to sit down in
order to develop.
Disunity of tribal leaders
impedes the projects that
are supposed to trickle
down to the tribal
community.

Sister Nelda Balaba

Tampacan (Sagittarius Mining, Inc.)


divided the area and provided
support to IP faction
- Bunggal Bango (under privileged)
- Inter-ethnic conflict
- Free Prior Informed Consent
- Displacement of IPs (in a way
threatening existence of IPs)
- Cultural Integrity (respect for laws

114

In Tampakan, the IPs were


divided and spoiled by the
company. They secured the
FPIC but did not secure the
IPs in Bunnga Bango. The
IPs occupying the land
were not consulted. The cry
of the IPs in Bunnga Bango
they are killing each
other, when in fact they are

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

Topics
and traditions of IP)

Datu Tony

MGB and Mining Companies


conspiring
Tampakan hazard due to its
strategic position as it connects
various rivers
SMI water impoundment
Trucks with bridge limit of 15 tons
but trucks 30 tons
Corruption as the root cause of all
problems
Camarines and Ifugaos still poor
Western Mining Newmond in
Indonesia

Discussions
blood kins.
I am a Blaan. The ones you
mentioned are my brothers.
Because of the collusion of
the mining company and
NCIP. Where can you find a
planning that is done on a
beach? How can you ask
What is your opinion or I
will not pay you?
Im not a hydrologist, but I
can see the river you will
kill all the rivers.
The MGB has a hazard
map. But why is Tampakan
not labeled as a hazardous
area? Why is Glencore not
concerned with Tampakan
as a watershed?
I was with Mr Mining for a
while. I do not trust Filipino
mining engineers such as
what happened in
Marinduque it was
breached.
We had a meeting with
Bishop Gutierrez he was
also with the anti-mining
group.
You go to Cordillera the
Igorot they do not dress,
they are still very poor. The
old mining company in
Camarines still the people
are very poor. Makati has
no mining company but
they are very rich.
A Subanen is pitied against
a Subanen. My niece was
given a car. But she has
nothing to do with mining.
They do not talk to me
because I am against
mining.
Companies go to people
that they manipulate. They
continue indigenizing the
IPs.
SMI is technically owned by
former governor Alcantara
with the Alcantara group
of companies.
We were among those
brought to Indonesia to see
a submarine bridge for
waste water which was
showed to the tribal

115

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

Topics

Discussions
leaders.
Blaan said okay if that was
the way you will do it.
But now Blaan are not
allowed to pass through.
That is our land, why cant
we pass through?
The lawyers are saying:
but we know better our
forests. That is why I ask,
what is important: mining or
the resources?

Sister Nelda

Killing IPs and IKSP


Displacement of IPs as a result of
development undertaking

They are already relocating


the people.
They kill us and l our
culture.
They relocate the IPs in
another place. But if you
remove them (IPs) from the
forest, you are killing not
just our body but also our
culture.
Genocide culture-cide
IPs in Bunnga Bango of the
royal blood-the men of the
family are killed. There are
arbitrary filing of cased by
the military/ government/
company.

Datu Tony
Timuay Tugao

Saleem Ali
2.

Environmental

Datu Manguntuan

Water Quality siltation rendering


tap water not fit for drinking. Needs
money to but purified water

There is a question from


the IPs. When we go to
Cebu, we follow the law of
Cebu. But when the
lowlanders go there, they
dont follow our laws.
Atty Bentayo mentioned
that NCIP should have an
anthropologist in your office
What happened to us on
August 2012, there was
assassination in Pagadian.
We went to the tribe at the
other side (nagduol sa tribu
sa pikas dugo). Now, at
least, we are training the
young for them to represent
and fight for us. This is our
right to self-determination.
Philippines is the most
dangerous place in Asia for
environmentalists.
In water supply, the result is
there is contamination.
Economic implication, if you
do not have water, you
need to buy mineral water.
Siltation negative
economic effect
- Decrease in water level

116

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

Topics

Discussions
- No source for agriculture
irrigation

Saleem Ali

Type of mining and how to address

Tatay

Saleem Ali
Tatay

Unregulated with small scale mining


Migrants from Luzon and Visayas
Myopic FPIC as limited to direct
area of operation.. required where
there are occupants
Look at greater picture as part of
watershed continuum
ECC issued after companies has
already operated and have money
to bribe those who will be consulted

In Davao, there is mining


and the irrigation of
agriculture. In 5 years
thousands of hectares will
be gone.
About water, I was
wondering if you could talk
about small- scale mining.
The result of water
contamination is due to
small- scale mining which is
not monitored by the
government
How would you solve this,
they are poor people who
try to find work
There is a myopic FPIC.
Migrants who do smallscale mining are from
Luzon, Ilocos, Bicol. In
Dinalud they are from
Luzon. The natives in
Davao are gone. There are
unscrupulous mining
practices. If only the
government has a proper
mechanism for people
coming to the Lumad areas.
I ventured in small scale
mining; we use water as a
source of oxygen. If there is
a tube, they do FPIC, but if
there is no tube no FPIC.
Looking into FPIC
following the watershed
continuum. Davao involves
4 provinces. If only is part
of IPRA law is changed,
there will be a lot of happy
people. Amend IPRA law to
include indirect
communities affected by
the mining activities.
If anything happens in the
mountains, they should
follow the watershed
continuum.
Cartolani did not approve
the mining, but they are
affected by the mining in
Carascal.
ECCs are issued mostly
after the operation has
been done.

Tatay

ECC joke Tampakan has


no license but they are
already digging truckloads
of soil, which is in
exploration phase. Which

117

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

Topics

Sister Nelda

ECC large : issuance by national


govt. without consultation in the
locality
Electricity: coal-fired power plant
Maasin: destruction of coral reefs by
PAMB?
Source of coal Semirara and
Indonesia also in Lead?

Datu Tony

Case of SMI 150 has

Sister Nelda

Discussions
can be extended for
another 2 years and
another 2 years and so on.
With ECC, when large
scale it is from the national.
When people know, when
you start to ask, the ECC is
already there.

FPAA 50,000 hectares


Western Mining issued by
the government of Ramos
SMI will need electricity,
Sofitech cannot provide so
SMI will construct a coal
fired power plant in Maasin.
And there is already coral
destruction in Maasin.
PAMBI did not know that
ECC was already given.
In addition, my classmate
from Germany said that
Germany will let go of coal
plants in 2018.

Ryan

3.

Political Aspects

Noreen

Issuance and renewal of permits


Small scale backyard mining
Small scale, but a number financed
by large or medium companies:
great destruction or impact still
Annual renewal of temporary
permits

Bangsamoro subsidy
Terms or sharing for mining, i.e.
Lamoyan in Tawi-tawi
Social responsibility

118

Sarangani will start coal


plant. In Lake Sebu in one
mining area, the tribal
leaders do not want to sell
their land for mining. There
is hunting of tribal leaders
in Lake Sebu.
Regulating small scale
mining in the past 7-10
years. Small scale is no
longer small scale due to
the presence of politicians.
Medium to large scale
miners to get around
regulations in large scale
mining. The license is from
the LGU which is a source
for corruption divide the
large group into small scale
mining. The current
regulation for small scale
mining does not fit the
situation on the ground.
Small -scale miners are
somehow excused from the
environmental effects.
Temporary permit is up to
10-20 years in granting. As
long as the corrupt
politicians continue to hold
the position, the temporary
permit can be renewed.
We are a people of many
brands. Temporary permit
for 10 years? The
Bangsamoro question is the
longest running revolution.

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

Topics

Timuay Charlie

Due to mining (effects on fishing


ground)
Island disturbed or depleted or
possible sinking

Romy

Deep problems in the government.


Need changes such as in issuance
in permits and making the process
more participatory

Discussions
Why it ran so long??
Treatment of the
government about the
problem.
One problem in Samal
Tumbagaan is an island,
they are in the mine level.
200,000 metric tons per
month of nickel. What will
happen to Tumbagaan. It is
a fishing ground for the
Philippines. Bu the fishes
are gone. Pitiful Samal
residents. It will open again
in other islands- all in the
seas
Effects to fishing and
environment. One island
might sink such as those
Tawi-tawi .
In small-scale mining, the
freshwater will also be
affected.
To add to brother Noreen,
deep problems to be solved
by the government (lalom
na sulbaron sa
government). There must
be some changes. Filipino
people have full of jokes.
Our government issuing
licenses without
consultation is a joke.

Tony

Interference of World Bank in


policies to pay debts

Saleem Ali

Issue on NPA attacks and


collaboration with Lumads?

Datu Tony

Problem is social and economic


-vigilance of citizens
-sincerity of the government

So, we will not let change to


happen. It will continue 10
years.
There seems to be dictation
by WB to have mining so
we can pay our
loans/debts.
If there are comments on
the leftist, I there anything
they want like from the
past?
Our problem is social and
economic. If everybody is
enjoying their economic life,
there is no problem An
angry head is the
warehouse of the devil
Blaans have NPA. There is
no vacation, you cannot go
downtown.

Tatay

As to Saleems query?
-Lumads and NPA
CPP-NPAs provided the arms

119

If the government is sincere


in providing for the people,
then there will be no NPAs.
I was an activist for the
Church. The government
did not recognize us. We
went to the mountains and
met the NPA.

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

Topics

Discussions
The Lumads are implicated
as bandits and rebels. NPA
goes to them and gives
them arms. They are not
related, but there is also no
formal alliance.

Saleem Ali

Issue of IPs in owning mining

Tatay

NPA deceit- nationalized mining but


meaning for the NPA
-Some lumads need part of
ownership

There is deception of the


IPs from the rebels. The
rebels want a nationalized
mining not giving to the
people but getting it
themselves.
Lumads and natives want
ownership of the mines. 5
partylist groups are with
NDF receiving 70 million
a year from the government

Dr. Tanggol

Fr. Ronnie

-cause for rebels; NPA for lack of


revolutionary taxes
- injustice and poor governance
-weak legislation and enforcement
-more autonomy or selfdetermination

-labor sector (no capacity to pay bill)


-disparity (distribution of wealth)

Saleem Ali

-charities of mining companies

Fr. Ronnie

-no sense of responsibility

Timuay Charlie

-Long tern sustainability plan


-health centre, school building and
building and so no mining due to
lack of funds
- road maintenance
-own company or operate for their
tribe but needs technical equipment
and training
- case of trees cut as seed were
privately provided but seized by
government

120

I do not include them in my


activities
One, if not the most
immediate cause for the
leftist group, is lack of
revolutionary tax. Two
words injustice and bad
governance. A soft state
has weak legislation and
weak implementation of
policies/laws. I would
support the serious granting
of autonomy, and not this
token.
Governance should be
transparent, accountable,
participative, and
predictable there is rule of
the law.
I was assigned as chaplain
in Davao Regional Hospital
in Tagum.
From my experience, the
labor sector in Diwalwal has
a problem of disparity.
Do companies set up
hospital and educational
institutions?
There are liaison officers,
the owner of the mining
companies do not support.
Just like what happened,
we were given health
center, bus, but the
company stopped. One is
managing the center and
gasoline there was no
support anymore. Our road
was not taken care of now,
my wife gave birth on the
road. There is no
sustainable plan for long
term. The building
constructed was less. We

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

Topics

Discussions
want the company to be
owned by the Lumad.
Our forefathers use water
and earth as ritual areas.
We are the ones who own
the ancestral domain (Ang
mao kaliwatan mag-ampo
sa diwata sa tubig, yuta.
Kami ang gibinlan sa
kaliwatan)
They are only company
investors. We dont know
how to mine, they should
teach us. We should be
taught how so that our
ancestors will not feel
aggrieved (kami dili kabalo
sa pag mina. Tudlu-an mi
nila. Magpadala mi og tawo
nga magtu-on. Tudlu-an mi
nga maayo pag-atiman sa
yuta nga dili mi mahayan sa
among tribo.)
Last week, we were given
mahogany seedlings; we
were reprimanded why we
cut down the trees.
Now, the community can
choose: the national
government or the
Bangsamoro government.
Show the community that
the government can stand.
We have peaceful. We
have a pact between
Subanen and the Muslims.
As a representative from
Zamboanga Peninsula,
whether the government
should do good or if not, we
will choose another
government.

FQ2
What concrete steps ?
Dr. Glen Corder
Sis Nelda
Dr. Glen Corder

Impact evaluation in the mining


industry
Emerging Technologies in mining
Different horizons
- Using biological
techniques
- Underground miningmechanized
- Minimal disturbance in
extraction
- Efficiencies in mining
- Minimize waste & tailings
- Minimal environmental
impacts
- Alternative options

121

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker
Saleem Ali

Dr. Glen Corder

Saleem Ali

Datu Tony

Dr. Glen Corder


Datu Tony
Saleem Ali

Sis Nelda

Dr. Glen Corder

Saleem Ali

Tatay
Saleem Ali

Dr. Glen Corder


Tatay

Topics
Tailings
Semi-liquid impoundment dams
(consistency of the tailings)- paste
tailings
3 levels of technology
1. invaluable
[Link] effective
3. not existing
Use of water in mining.. example
use saltwater in alternative for
freshwater
- Cyanide alternative for large
scale gold mining no
alternatives yet
SMI danger of mine tailing pond in
mining area 2000 MASL. Is there a
way to regulate or prevent them
from doing it?
-300 meter wall in a very unstable
geographical location (earthquakeprone)
- design provision for safety of pond
- Deviation from original plan of
Western Mining
- AiTi
- International body for regulating?
None
- World Bank does auditing if they
are involved there is funding,
There is transparency because
they comply. Otherwise, there is
none.
- Alternative way of doing mining
that is environmental friendly?
Community not for closing mining
but doing it in indigenous way.
- In situ leaching
Put solvent in the ground and
pump solvent. What comes out is
a solution with the mineral, but still
has environmental issues
- Issue putting precautionary
measure because there is no
mining without environmental
impact
- Its always a risk-management
issue, No zero impact mining
-mining brought in into
communities
-issue of integrating mining into
the community and for equitable
sharing
-Community should decide if there
are other alternatives for
economic growth
- Balance of opportunities and risks
- Mining communities are brought
into by the government
- Ethnic communities didnt need
mining, but they dont have a
choice
- Many indigenous communities

122

Discussions

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

Topics

Discussions

also want to integrate with modern


economy
Nelda

- Feasibility of Phytomining?

Dr. Glen Corder

- Plant sucking minerals to extract


minerals
- Area of research
- Yes, but still a concern is the
amount of plants needed to
extract a significant amount of
mineral
- Summit coming up in Indonesia
and Malaysia (through David
Mulligan of CMLR)
- Use of bacteria in metabolizing
heavy metals
- IP share in mining?
- Depends on region where they
are, and whether on negotiation
process
- Do not give money directly, for
instance, get a trucking company
from the IPs
- Australia is the leading country
that employs IPs in mining
companies.
- Navajo in US, very large mines
accumulated 1bilion dollars in
trust funds for Navajo government
- USAID for more info
Are the IP people in coordination
with the national level?

Saleem Ali

Datu Tony
Saleem Ali

Saleem Ali

Charlie
Datu Tony

Saleem Ali
Datu Tony
Sis Nelda
Saleem Ali
Datu Mangatuan
Datu Tony
Charlie
Sister

Datu Tony
Saleem Ali

- A certain level
- A single ancestral domain for
Blaan
- Demarcation of boundaries as per
tribe
- How IPs are identified?
- In accordance with ILO 67
- People in NCIP dont protect IPs
- Boomal Banwa (Ancestral domain
as 1 territory)
- Process as to how IPs and
leaders and their representation in
political bodies in the govt
- Representation of Lumads in local
government
- RA 8371 IPRA
- Issuance of ID as PANAMIN and
subject to abuse
- Giving birth at home as unlawful
- Philippines have conflicting laws
eg. IPRA law vs. DOH
- If you want to adapt a law, it
should be an overarching policy
- Why mining areas remain poor?
- Power to redistribute wealth
- Revenue distribution
- tapping other sources of income

123

Resource curse: good


mechanism to get power, if
distributed there will be
equality eg. Chile

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker
Dr. Glen Corder
Tatay

Saleem Ali
Nelda
Resources or environment

Saleem Ali

Resources or people

Datu Tony
Sis Nelda
Datu Tony
Sis Nelda

Next Steps.

Topics
- Structure of sharing how much
goes to the national and local
levels
- Historical evidence of poverty
- Communities are more
impoverished now than before
mining
- Phil case and Saudi
- Strong sense of national identity
- Other sources of income. ex. Ecotourism
- Japan many similar cases
social equity, very strong solidarity
- Tampacan is not the impact area
- Japan is too nationalistic and
discipline
- So many religions but poor in
actual practices
- Geography why? Resources
and people when one area to live
on
- 1. Accessing information

[Link] to email

- 2. Proceedings for the FGD

2. do-

- 3. Contact details
- amygale2001@[Link]
Datu Con
Charlie
Tony
Tatay
Fr. Ronnie
Saleem Ali
Dr. Glen Corder
Nelda
Noreen
Ryan
Romy Muico
Nita
Fe
Datu Tony
Tess Ignacio

Melly

Discussions

- preservation of minerals- concrete


move now
- Zamboanga, management for the
next generation
- Beyond mining- sincerity of
government in enforcement of
environmental laws
- Human rights
- Use and dont abuse
- Be humble about your resources
- Thanks for everybody for coming
- Thank you for the opportunity
- FGD: quite informative
- Recognition rather assimilation
- Serious rethinking of human devt
options
- Preservation of mother earth
- People oriented and service
oriented
- FGD opportunity to air concern
and this should be headed to
something
- Advocacy for environment before
anything else
- Thanks everyone for coming
- Use of proper use resources
- Leaders with conscience for the
greater good
- Organizing was so uncertain
- Good to hear directly from

124

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

Topics
stakeholders
- Use for research purposes.
- We need inputs to have a
balanced view

125

Discussions

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

Photo Documentation
Photodocumentation for Day 1, June 23, 2014

Figure 2.1.1 Welcome remarks from Dr.


Sukarno D. Tanggol, MSU-IIT Chancellor

Figure 2.1.2. Introduction of the


participants

Figure 2.1.4. During the focus group


discussion, participants place their
metacards with issues on the board

Figure 2.1.3. Dr Saleem Ali discussing


Environmental Conflict Resolution: Is there
a Way Forward for Mining and
Development in the Philippines?

Figure 2.1.5. A participant presenting his


views during the discussion of issues
raised

126

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

Figure 2.1.6. Dr Glen Corder discussing


about impact evaluation in the mining
industry

Figure 2.1.7. Closing remarks from Prof.


Ignacio

Figure 2.1.8. Participants during the


FGD on Mining on Day 1

127

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

FGD Davao: Day Two:


June 24, 2013 Time Started: 9:00 ARE Time Finished: 3:00 PM
Table 2.4. FGD Highlights of Day Two Proceedings
Issue

Speaker

3. Opening Prayer

Charlene Binghoy

4. National Anthem
5. Welcome Remarks

Angeli V. Mag-aso
Dr. Perfecto A. Alibin USEP
President

6. Introduction of
Participants
7. Rationale of the
Activity

6.

Presentation of
Outputs in
Shangrila on
2013

7. FGD Proper
FQ1: Based on your
experience, what do
you think are the
issues and concerns of
mining industry in your
locality? What are the
possible underlying
causes?

Saleem H. Ali
Prof and Director for Social
Responsibility in Mining
saleem@[Link]

Phyllis Marie Teanco


Angeli V. Mag-aso
Amabelle A. Embornas
Nimfa L. Bracamonte

Topics

Discussion

1. Role of mining in economy


2. Development and
environmental balance
3. Promotion of responsible
mining
Can mining lead to
sustainable development?
1. Definition
2. Goals see#2 focus in
Peru experience for a
possible national
dialogue
3. UQ Background
4. Centre for Social
Responsibility in Mining
5. Vicious Triangle
inequality one of the
great issues as per IMF
(powerpt presentation)
Governance Cluster
Environmental Cluster
Social Dimension Cluster
Consolidated Output
(powerpt presentations)

Nimfa L. Bracamonte

Dr. Alibin

We need data on mining


industry in the Philippine
Economy

Is there a baseline information


regarding the resource in the
Philippines?
We do not have that, but the
central office has the data.
1 trillion dollars still a very
small approximation of the
value of resource
6.8% of the GDP

What is for community from


mining?

What can we do regarding


facilitating the knowledge
about mining in the
community?

Arvin Kanlon
Saleem Ali

Imee dela Cruz

What can this group do or


share for us NGOs to help
facilitate the proper
information on the benefits
and negative consequences.
When one company invests in
mining even without
responsible mining, people go

128

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

Topics

Discussion
for it. Their stomach is empty.

Arvin

4.

Social

Joel

Data as to employment
Data as only regulated and
exclusive of the small scale and
unregulated ones

-Security (extortion from lawless


elements)
-Sagittarrius MI (retrenchment ;
equipment and properties were
burned)
-Apex in Compostela Valley

How can we, sociologists and


community organizers do
regarding mining in the
community?
It should be noted that there is
0.9 mining contribution
doesnt count upstream and
downstream industries that
are from mining.
60% of mineral production is
from small- scale mining
Region 12 Socsargen
Field based activities - based
on association meetings
Security aspect the problem
is extortion from different
lawless elements
Sagittariuss equipment was
burned down, because the
company cut down the
payment of revolutionary tax
Economic problems due to
extortion even during the
exploration stage. This
problem of security has been
experienced.

Saleem Ali
Joel

Arvin

When you said revolutionary tax


was stopped was there an
agreement?
Verbal agreement for the activity
to proceed

Damages done to company

Verbal negotiation but was not


documented. Just for the
company to move on. If they
fail, bad things will happen.
Not killing, but burning of
equipment.
Last incident in APEX, the
incident cost them 120M in
Compostela Valley.
PHPALCO burning of
equipment cost 500M US
dollars
Companies became proxy
targets of armed groups. It will
cost a lot to the companies.
Only 1% of the resources in
the Philippines are
used/extracted.
We asked the military but they
refused because they said
that we need to protect
everyone, not just a few.
Most of the mining companies
in Mindanao are in conflict
areas.

Saleem Ali

Would a different solution be


done, like livelihood or jobs?

129

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

Topics

Discussion

Arvin

Negotiations and agreements


become dependent on changes
in leadership of MNLF and NPA
leadership, as well as local
political leaders

We asked help from the elite


politicians because they have
connections in the left and
right like we funded the
Madrasah for 5 years.
But if there are changes in the
leadership in the armed
groups, then they will ask
again for a different
negotiation. You have to go
through another negotiation.

Joel
Saleem Ali

Want to thank Arvin on how he


elaborated on the situation.
Do you have your own security?

Joel

Assailed the comments of


Arvin
Mining company own security
groups

Yes, we have blue guards just


to protect the equipment

Arvin

Replace blue guards with tribal


people as guards become target
due to guns

We also experienced burning


because of the blue guards.
When we eliminated the blue
guards, the burning stopped.
We asked the tribal groups
to talk to their relatives
regarding extortion.

Saleem Ali

What about the environmental


activists and journalists as being
intimidated, what are your
answers?

Ariza

Actually, the situation/killings


are not done by the mining
company. It is not, after
investigation, not related to
mining. There were other
issues. Mining companies are
law abiding.
Like Holcim, they employ blue
guards with no arms. Because
this will entice the armed
group to get their guns.
Other reasons like a journalist
they might be targeting a
politician, they are vocal
against this politician.
There are many tribal leaders
who were killed like in
Mandaya in Pangantucan.
They are my friends, we are
assisting them in the
collection of royalties. They
said the company killed them.
Why are they doing it? There
were good relations between
MGB, mining company and
the tribe.
Who killed them? There were
no results.

Saleem Ali

One point I heard, between the


divergent groups. How are you

130

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

Topics

Discussion

dealing with the relationship?


Ed

Killings are simply associated


with mining companies
- other reasons after thorough
investigation

Saleem Ali

How does NCIP identify the


recognized tribal leaders?
ID based on identified leaders
in the locality
-IPO as per IPS receive the
royalty based on Community
Development Plan
-FPIC procurement, provision
in the MOA and M& E is done
by NCIP

Charlene

We rely on NCIP to give us


the recognized tribal leaders.
When the project is there,
there are a lot of tribal leaders
emerging.
The community identifies their
own tribal leaders. Whatever
the decision based on the
policies ,s based on their
Indigenous Peoples
Organization
There will be others who will
say they are the leaders. But
we validate the information.
During the FPIC process, the
recognized/ authorized
representative will sign the
MOA.

Imee

Arvin

Saleem Ali

Charlene

Saleem Ali

Charlene
Saleem Ali
Charlene

IP in Davao Oriental
Royalty when not generally
understood creates rivalry

Conflict is not merely due to


mining
- cultural dynamics
- struggle for leadership such
as in the case for mandatory
representation in LGUs
Ways to push the process
to formalize agreements,
especially the terms
During FPIC procurement,
due process is observed as
there are opposing views
towards mining
Provisions in MOA for
safeguards such as
delineating, prohibiting
areas but problem in during
operations
FPIC required only once,
statistics as to FPIC
Dependent on the
application of companies
and use new guidelines
Surigao del Sur, 2
General impression as to yes
or no to mining
Documentation of
consultation for consensus
building

131

We conduct monitoring and


assessment in the distribution
of royalty.
Am exposed in Davao
Oriental when the process is
not understood. There is a
need for companies to
educate the community as to
royalty; need for companies to
understand the intricacies of
the culture in areas they
operate

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

Topics

Saleem Ali

Actual process for


consultation
Posting of notices to areas
applied for mining
- Schedule for community
assembly
IEC on IPRA and FPIC
process and discuss Field
Based Investigation report
2nd community assembly
with mining companies to
present their plans and
programs

Charlene

Saleem Ali
Charlene

Consensus building with


tribal leaders, council of
elders, customary holders
and decide whether to
accept or not and
Is consensus building
handled?
- NCIP documenting the
process; exclusive for the
council of elders according to
customary laws without the
mining companies
- NCIP will issue certificate
precondition . If it is a go

Arvin

- Presence of lobbyists during


consensus building and
bribery is practiced and is
outside of the FPIC process

Imee

- Presence of church and


parishes opposing mining as
perceived to killings, landslide
which has a good structure

Glen

- Weak element to promote the


good works of mining
industries

Joel

- Companies have limited


resources (economic and
human resource) and have
not given emphasis to IEC
- Government to do something
to address the issue by
creating an agency perhaps
- Good idea but needs
resources

Mario (EMB)

Ed

Discussion

Lack of expertise to explain to


community as to NGOs

132

The government should do


something about IEC
Creating an agency in order to
support the mining industry in
the country
That is a good idea for coming
up with a policy for IEC on the
aspects in companies
responsibilities
We already organized the IEC
group. We are far behind in
terms of IEC work. The
engineers do not know how to
talk. We hire some journalists
but we still lag behind. We
have improved our internet
connection.

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker
Imee

Topics
Need to work with people but
also for the church

Discussion
How I wish that the mining
company operating work
with the people and the
church.
If you think the government
should do this, there are
government agencies that do
not want the information to be
known by the community. The
money goes to their pockets
instead of going to the
community.
The company should reach
out to the church and NGOs.
Through partnership with the
tribal groups to verify whether
the leadership is good or not.

Arvin

- Government offices. also


have interests; i.e. money
for personal
- Government to work much
harder to reach more people
- NGOs come to the
community as ministry with
not because as being paid
-

Lyndon
Glen
Arvin

Lloyd
Ed

Imee

Charlene

- Curriculum for mining,


geology and met eng
- Contextualize the laws in the
area and not just comply with
requirements
- Importance of IEC for social
acceptability mining for
development including
educators as 90% are antimining
- Enrolment in mining going up
in 9 HEIs and more in mining
communities
- Small scale miners versus
large scale
- Small scale came in first
before large scale
- Small scale but of great
number
- Land use area conflict as to
utilization as mining site or
sanctuary
Government lacks interest in
enforcement of laws for the
community but cares only how
much they get (moral issue)
Muddling politicians for
monetary and political
interests

133

Real education is needed.


Dissect the kind of workers
that we have, the church and
NGOs
When I was in NGO, I was a
volunteer worker based on a
kind of ministry. When you
become a worker of a
company, you change; you
entice the community to say
yes to mining in order to get
benefits.
Educate teachers IEC for
social acceptability

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

FQ2What concrete steps


Impact evaluation in the
mining industry
Q&A

Speaker
Arvin

Migration pattern due to


poverty and failure of
government to provide gainful
employment

Charlene

Sharing of royalty

Lyndon
Glen
Charlene
Glen
Saleem

Arvin

Next Steps.

Topics

Imee

Joel

Tess Ignacio

- In Australia, is open pit mining


preferred?
- Generally common but
depends on technical
feasibility
- Laws to protect the
aborigines?
- Negotiate with aborigines , a
practice for about 20 years
- Mining are the greatest
employers of aborigines in
Australia
- Philippines is more advanced
in terms of FPIC
- Preservation of green grass in
the area and plant it back after
DeCom of mines
- Fly in or fly out in mining sites
( no settlement in mine sites)
- 1. Accessing information
- 2. Proceedings for the FGD
- 3. Contact details
- amygale2001@[Link]
- issues are raised and clarified
- light shed for future of mining
industry
- discussion should be brought
to the level of communities
and not just at academic level
- consider the role of churches
in IEC as they source of light
in communities
- educators to be more
participative/proactive in
educating the young to be
more functional for the country
- present best practices in
responsible mining through
fora and lectures
- curriculum revision is such
courses as sciences and
sociology
Apprehensive and reserved to
talk about sensitive topic in
particular the security
- issues and matters on mining
be brought out and discussed
so solutions for problems can
be explored
Appreciated the presence of
each one
- need to harness utilization of
minerals as maybe needed
-Thanked the USEP
counterparts, especially
Maam Melly

134

Discussion

[Link] to email
2. do-

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker
Melly

Topics

Discussion

Thanks IM4CD and Dr Glen


and Saleem

Some notes:

A lot of emerging technologies but still too costly eg. Tailings paste
SEE the future (S=social, E=environment, E=economic development)
Rehabilitation should be in a way that it can be put back as much as possible, or even
better (gene bank for plants)

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DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

Photo Documentation for Day 2, June 24, 2014

Figure 2.1.9. Welcome remarks by Dr.

Figure 2.1.10. Introduction of


participants

Perfecto A. Alibin, USEP President

Figure 2.1.11. Dr Saleem Ali discussing


if Mining Leads to Sustainable
Development?

Figure 2.1.12. Presentation of outputs


during the Shangri-la RTD on Mining

136

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

Figure 2.1.13. Participants writing on


the meta cards about issues and
concerns regarding mining

Figure 2.1.14. Categorizing the issues


and concerns

Figure 2.1.15. Discussing the issues


and concerns raised

Figure 2.1.16. Discussions

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DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

Figure 2.1.18. Participants of the FGD


on Mining
Day 2

Figure 2.1.17. Dr Glen Corder on


Impact evaluation in the mining
industry

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DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

2.2.

FGD Participants Profile in Manila, Proceedings, and Photo Documentation

NEC, UP Diliman, September 16, 2014

Time Started: 9:25 AM

Time Finished: 12:30PM

Table 2.2.1. Highlights of Proceedings in NEC UP, Diliman


Issue
Opening Prayer
National Anthem
Welcome
Introduction of
Participants
Welcome remarks

Rationale of the Activity

Speaker

EMCEE: Phyllis Teanco


Herman Mendoza

David Brereton
Emmy Manlapig

Monsod to David
Presentation of Outputs
in Shangrila in 2013

Nimfa
Angie
Bong

Monsod

FGD Proper
FQ1: Based on your
experience, what do you
think are the issues and
concerns of mining
industry in your locality?
What are the possible
underlying causes?

Discussion

NEC serves the interest for the national


development
This endeavour will help us look into
issues of this activity
SMI background
Focus of IM4DC assist countries with
rich mineral resources
The report that outlines the issues, join
them together to understand the issues in
mining
Common understanding on what
sustainable mining means?
-it is not sustaining the mining industry
9:45am: Background of the process
Level-off with the Title: Is there a
future
Does this mean Phil. Development? Too
general- what type of development? What
are the premises?
Situate the mining industry in the
Philippine context
-That would be easy for us to make
suggestions
-We have been mapping indigenous
communities

Nimfa

Tigil Mina
Nina

Responsible mining and sustainable


mining
They want to look at mining in the context
of Philippine development as a whole in
the context of national development
-agriculture/ ecotourism
-least priority in the land uses
-bill; mineral regime

SOCIAL/ CULTURAL
Jing

Good faith rests on relationship with the


community
-Information provided to community is
insufficient
-Genuine engagement: open to all pros
and cons
-Respect
e.g. They are selecting specific persons
from the community to sign a resolution for

139

Recommendations

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker
Tigil Mina

Bong

Jill

Grace: Why mining?

Monsod

David
Cielo

NB
Cielo

Fr. Ed CBCP

Agham

Discussion
consent
Consent-through local govt
-Social acceptability should be part of EIA
Mining community assumes that permit of
contract is already an entitlement for
exploration.
-Mining communities fail to secure that
consent
Past legacy of mining industry correlates
to environmental destruction, land
grabbing, human rights violation and they
dont benefit from the mining.
-Mining industry has to show good faith by
addressing past legacies.
-Sensitive to the rights of indigenous
people (collective rights)
Indigenous peoples self-determined social
development (different from what mining
companies offer).
-Sacred places cannot be brought back
once destroyed
Social acceptability is violated.
Ancestral domain development planmanagement plan
Many equipment have been burned
FPIC management plan needed
Who says mining is necessary? Its
actually the community.
Why do people in power listen to
corporations than to communities?
Case: El Salvador
[Link] are enough supreme court
decisions in this country to- issue on
state sovereignty
2. Mining concessions not covered in the
CMST, thus subject to change/ override it
No go areas for prime agricultural lands- it
is now
Specific partnership
Extractive Industry Transparency
Agreement is it true that
If a govt., is there a compensation?
It is possible
Regalian document
EIPI-show how weak governance is in the
country
Semerara
Coal
Copies of reports
Customs- no follow-up on delivery
We are making why they are not reporting
Political will of our institutions
Multi-stakeholders
-We reach out to MGB-no mechanism on
how to select representatives in the mining
companies
IM4DC is another jargon as responsible
mining
-We dont believe in responsible mining
More than environmental and social, it is
moral and ethical
-Unlike in Australia, where there is a vast
land and few people
-Wherever you go, mining will always spell
destruction in the Philippines
We are requested to provide technical
support.

140

Recommendations

Mining companies
should

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

Agham 2

NB

Cielo
NB
Christian Monsod

Discussion
-We attest to these happeningsenvironmental and the like. The framework
of mining in the Philippines is towards
export of raw materials. Genuine
development is important.
Very much liberalized, it is dependent on
foreign aid/ foreign oriented. Based on the
needs on the country and the people
create a self-reliant economy. We support
the peoples mining bill.
Inevitable that we have to do mining but
there seems to be something wrong.
Authentic meaningful development is for
our own people.
Regalian doctrine. IPRA was meant to be
an exception. The law did not go that far;
the IP has priority rights on subsurface
Disharmony of provisions between the
IPRA and mining law
Inequitable rights;
1. people forget that the govt wears two
hats: sovereign tax collector and as
owner of the minerals
2. incentives are front loaded eg. TVI,
Rapurapu
3. distribution of mining revenues are fraud
Owners of mine are capped. It should be
the mining contractors share that should
be capped and the government share
should be open-ended. Theres no such
thing as joint venture but a contact
agreement.
Mining companies talk about all kinds of
funds, funds do not cover disasters.

Cielo

Bong

Monsod

Nina
Monsod
Agham

Recommendations

There has to be some


shift in paradigm
competitiveness should
not be the basis; fiscal
management
There should be costand-benefit analysis
What is really actually happening on the
ground? Barges of ships are waiting where
they conduct this from SSMs (Cu and
gold). Organizing needed
Benefitting mining companies while our
country is not...
On competitiveness: all are moving
towards social justice e.g. Ghana, Peru,
Chile, Venezuela
Unstads world
1. they do not take account of
sustainable development
2. imbalance of benefits
3. mining industry always invokes
the Frasers reports. They are
driven more in world
Abito: of the operating surplus of mining
46% goes to the mining companies.
There are other options such as
agriculture: with mining or without mining.
Case: Samar
Mining has not contributed because they
have not downstreamed.
Employment: Tampakan
Balance and plan for long term
development it depends on the nature of

141

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

Miriam

Discussion
the place (katangian ng lugar) such as
ecotourism and agricultural.
But we need machineries and it can only
be through extraction.
Probably, but extract only from out of our
needs

Recommendations

Spread that we have to


ask people how we
want to develop or
progress but the benefit
should be

The environmental impacts are on us


because we export ore
There is always a trade-off in
development.
Nationalization of our mineral resources
extraction
FQ2
What concrete steps .
Grace

Strategies and mechanisms: there are


lots already
EIA, IPRA, NIPAS, local govt. code
Alternative Management Bill, Peoples
Mining Bill, EO 79. There are promises
for government to review on contracts;
whether they have complied with the
deadlines, etc.)

Cielo
Cielo

Cielo
Jing

Bong

Mining companies do not respect rights of


IPs (FPIC, etc..)
UN have guidelines on obligations of
corporation on human rights- extension on
CSR
Is there a future for mining industry in the
Philippines
1. In mineral rich
2. Archipelagic country
3. Very fragile ecosystems
FTAA is not for us

Bong

142

There should be a
disclosure in the mining
companies where they
should get minerals. I
dont think it is in our
mechanisms now.
(Where they are going
to use it and why?)
Free access of
information: has to be
available on-line
Paradigm shift on how
we price minerals=
consumerism, incentive
to develop new
technologies/
strengthen recycling
Concept of national
genuine ownership
They should not exploit
the gaps
Mining companies
should adhere to the
guidelines
Adhere to the
development agenda by
regions local
communities should be
the one to develop their
development agenda.
Not pushing mining
The role of mining in
societal development
but this should be in the
framework of national
industrialization, let us
learn from others.
I believe that we have to
engage and change the
mindset in the mining
industry and the
academia has a big role
on this.
Academia research is
pro-people and not
capital-oriented. If the
people will listen to you,
hopefully the

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

Discussion

Recommendations
government will also
listen.

Tigil Mina

DENR- power is on exploiting resources


than protecting them

1. Full implementation
on EO 79 (eg. nogo zones),
production of
unified map. Lack
of this puts a
serious question on
how we are going
to decide where to
allow mining
2. Mineral Resources
Act a bet that that
can
CSR is not enough,
accountability-past
sins
3. Have a body like
EPA
Climate risk- should be
factored in in the mining
industry. That is not
factored in cost
DRRM- CCA should be
factored in
Typology
If we do mining,
structural and policy
reforms needed
Human rights
Ensure ecological
integrity

NB
Fr. CBCP

Mining Act is loop sided on the mining


company

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DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

FGD and Interviews: Future of Mining Industry in the Philippine Development


September 16-17, 2014
PHOTODOCUMENTATION: FGD at UP-NEC

Fig. 2.2.1. Technology of participation


(TOP) process.

Fig. 2.2.2. Round-table discussion

Fig. 2.2.3. Discussions on the issues


raised.

Fig. 2.2.4. Emmy Manlapig addressing


the group

Fig. 2.2.5. Nimfa Bracamonte


facilitating the discussion.

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DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

FGD with the MINING EXECUTIVES


Manila Polo Club
Time Started: 4:10PM Time Finish[Link]PM
Table 2.2.2. Highlights of the FGD Proceedings with Mining Executives
Issue

Speaker
Emcee: Ma. Teresa Ignacio
Emmy Manlapig
David Brereton

Ma. Teresa Ignacio


Nimfa Bracamonte
Brimo
NB
Emmy

Sid

Brimo

Taxation/ Sharing of
resources

Ramos

Discussion
Introduction of Participants
Welcome remarks
Rationale of the Activity
SMI background
Focus of IM4DC: assist
countries with rich mineral
resources
Report that outlines the
issues, join them together to
understand the issues in
mining
Collaboration between the
universities: help with
dialogues give clarity,
structure, further activities
about promoting the dialogue
Presentation of Outputs in
Shangrila in 2013
Background of the process
What would you do with the
output of this discussion?
-Action research and
discussions
-The intention is to listen,
create a report, bring all the
stakeholders together, and
talk about the mining
industry.
What to do first: talk to
different stakeholders,
assemble in a piece of
document/ output of the
discussion. A way of getting
the different stakeholders to
talk.
Does society want to have it?
Political situations and
sentiments of the people.
Dependent on public policy.
Maybe it should be from a
different question: Should
there be a mining industry in
the Philippines? Instead of
Is there a future of mining
industry in the Philippine
development?
I dont think any of our
communities dont want us.
None of the local
communities of the big 5
companies. We have a very
good relationship with our
local community. Those that
are clamoring are from
different areas.
The planned government
policy will not allow the
industry to set-up
The government gets
taxation that they wanted to

145

Recommendation

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

David
Ramos

Discussion
pass. It looks good but there
are no mines that will come
out. They wont get any
benefit from that. We worry
that once thats passed, they
will be focusing on what are
open even though they say
its for future mining projects.
NGOs-talk about getting fair
share of revenues for the
country. Equitable sharing?
50-50 with no risk of
government and no credit
being put into the capital that
has to be invested there is
nothing to talk about.
Basis (on taxation) for a more
constructive discussion.
It depends on where people
are coming from. If they are
coming from the perspective
that it has to be a 50-50
share on annual basis without
giving credit to any capital
investment, there is nothing
to talk about. It is impossible.
We are willing to talk about it
if they feel that there is fair
sharing that is required. We
help them benchmark the
Philippines with other
countries. Put the Philippines
on the map in terms of risks,
what kind of returns do
investors expect?
Paying complex. We have to
pay VAT on importation of
goods but can never ... or this
takes years for refund.

Sid
Wrong statistics that the
industry is not doing welllead to wrong policy
decisions

Brimo

We never said that we dont


want to pay more. Its how
you want the mining company
to develop. If you dont want it
to develop, raise the taxes or
otherwise. But you couldnt
raise it to a point where
nobody is willing to invest.
(excise tax of Chile 2-4% progressive, income tax is
20%)
Its a percentage of sales and
the function of how much
profit they make.
This might be of interest to
you in the academia as to
why the president thinks that
we dont pay enough.
Remember the SONA 3
years ago, where he said that
we cannot have a mining
industry with only getting 10%
revenues.
Wrong information/statistics,

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Recommendation

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

Ramos
Brimo

Sid
Ramos

Revenue sharing/ excise tax

NB

Discussion
wrong policy decisions.
What happened was when
they looked at the statistics of
the industry in terms of the
output and taxes paid, they
included small-scale gold. In
2010, it was 40B pesos from
small scale- they know that
because Central Bank has
buying stations in Diwalwal,
ComVal. They can track that.
A lot of that gets smuggled
out. No tax from small scaleadd with that of industry, you
get a distorted ratio include
a big output (which is small
scale gold) where there are
no taxes to begin with.
They added Pasar
They used the wrong
statistics to come up with the
conclusion that the industry is
not doing enough. Thats
where the problem started
and we were never able to
get away from the concept.
They dont believe (Ayaw
maniwala).
Govt is not getting enough
from the large-scale mining
industry.
They had large scale mines,
quarries, small scale mines,
and Pasar. They summed up
all the total output and taxes.
They included Pasar which is
not a mine but an export
processing smelter
In terms of sharing, what are
really your recommended
propositions?

Sid
David
Ramos
Sid

NB

Primo
Ramos

Recommendation

Let it be a function of
profitability, more money you
take you pay more
on royalty
Royalty is separate, above
and beyond the excise tax
EIPI
Government. does not
understand industrys
perspective no
consultations with the mining
industry
Difference between Philippine
economy, etc
Access to technology
Have there been efforts from
the mining companies to
relay their sentiments to the
President
Had many discussions with
government, but they dont
listen
They are obsessed with the
50-50 sharing.

147

Government should look at it


from the life of mine
perspective

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

Emmy
Ramos
Mining companies were not
involved/ not consulted in
crafting the no go zones

Sid
Rufo

No consultation in the
issuance of permits

Sid

Structural issue involving


policies and implementation

Simbulan
Ramos

NB
NB
Rufo

Rufo

Ramos
NB
Rufo

Zamora

Discussion
Were asking them to look at
it from the life of mine
perspective, government
looks at it on a per year
basis. In a mining industry,
things can change each year
How do they treat capital
investments
Admin before the mining
industry was given income
___ but now, not anymore.
Go no- no go zones
We have an MPSA and then
they come up with an
ordinance banning/ opposing
mining (LGU)
Permits you have the
permit to do surface mining
but you are not allowed to do
tree cutting
Government not delivering its
obligations.
Main issue why LGUs do not
support mining in their
communities: Mining
company pays excise tax to
the national government, it
will take 3 years for the LGU
to get their share past the
electoral cycle (terms of
office)
Is CSR introduced?
Yes
IPs how they spend royalty?
The company doesnt
monitor?
They have the organization
that looks over this matter.
Its up to them how to spend
it. Politicians do not want us
to get involved.
Purchases: laptops, mobile
phones, very nice office
buildings.. before they start
focusing on their needs
Part of MPSA contract, not
ECC
In a forum: suggestion that
perhaps we can help how
royalties are spent/ programs
from IPs
Reaction of priest: Are you
trying to insult us?
IP process takes a long time
Should align with the
ADSDPP
Thats what the law says but
unfortunately that is not being
done that way - they pay for
IPs motorcycles, mobile
phones, vehicles
There are hundreds of
issues, basic points:
The government has to

148

Recommendation

Invest in their community


before you consider going in

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

Emmy

Sid
Ramos
Pro-mining is a political
liability

Sid

Mining could be a driver for


economic development but
there is no commitment and
Support from bureaucracy
(NB)

Brimo

David
Sid
Ramos
Sid
Ramos
Emmy

Ramos

NB

Ramos

Discussion
decide if it wants to promote
mining.
We dont throw stones but we
just dont talk should
communicate: should there
be actually mining in the
Philippines?
If govt makes up its mind that
there should be mining in the
Philippines, then things are
possible: they can work with
miners; they can make sure
law enforcement; can protect
industry from LGUs that pass
ordinance against the law
because its the national
government that takes care of
natural resources.
Problem is intention and
thats not being
communicated properly
Present govt has no interest
in mining. They dont talk
about the mining industry as
something important.
2.5B produced by the
industry is less than 1%. It is
a very small amount
It can grow up to 5 times 10
times
Mining was not given a
chance to develop.
Mining is a very good vehicle
to create growth but were not
understood. Where else can
you have god paying salaries
in the rural areas if not for
mining?
Pro-mining is a political
liability.
No commitment from the
government to the mining
industry- almost like a
decided kind of aversion that
this is the path Id like to take.
Local hiring
We teach locals higher level
skills
80% of our work force come
from our local communities
Loyalty of community to
companies (Rio Tuba)
People who are anti/against
are never from there
Percentage of negativity to
the industry is inversely
related to distance from
mining company
These people dont know
what they are talking about.
Theyve never been there,
how do they know?
Maybe because they have a
development framework that
is not yet concretized at the
local level
There are people who think

149

Recommendation

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker

Discussion
that mining should be a
national industry. You will
never convince them.
Propositions/
Recommendations

Sid

Emmy
Sid
Ramos
Manny Agcaoillli

Communication

Politically there should be


cognizance of the realities of
the industry.
There should be a desire for
a real dialogue.
With the change of govt,
Was there a distinct
difference?
The previous (GMA) was
decisive about her support
Learned about it and
supported
Rapurapu, a very
controversial mine. She
(GMA) was really the
president who made the
decision to seek
investigation, accepted
reports from both parties and
decided later which report to
follow. Former administration
GMA was more decisive

Simbulan

Martin

Ramos

Emmy

David
Emmy
David
Sid
NB

National govt should be


putting a role model to the
policies, they are subverted
by LGUs. We dont know
which one national or local
laws?
Willingness to have the other
side of the story
On governance, the president
even has a few visits so as to
see the benefits
The people behind
Tampakan have been using
this as an educational
platform, how does it work?
They decided not to without
learning
In terms of consistency on
how does the government
look at the industry? What
about the other countries?
Chile Peru- new government
We will be talking with BOI
-Draft taxation laws
Increase revenues
Drafting without consultation

Willingness to learn about it

If you could share your


discussion with them (govt)
with us

This is a continuing process


and a dialogue, hopefully we
could bring all stakeholders
together to an understanding
that this is a shared agenda
without being confrontational

Sid
David

Recommendation

Discussions with NGOs: you


have to know perceptions vs.
reality
Outcomes: objective studies

150

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES


Issue

Speaker
NB

Discussion
Converging point:
Governance system, laws,
taxation, cost-benefit
analysis, royalty

Emmy
Brimo
Sid
NB
Closing

Judge

Emmy
David

Recommendation

Looking at operational mining


areas- case studies
Rio Tuba, Palawan
Look at how important mining
companies are to their host
communities
Hopefully this will not end-up
as a document only
The role of education is How
can we educate the
government so they can
understand? They should
listen first (Ramos)
NEC- Mine 101 (EM 101) let
other non-mining majors
(economists etc...) to
understand mining.
Why cant we offer this
course to
congressmen/senators
Let other people understand
the A-Z of mining
Scholars can be disciples for
this matter
Acknowledgements
IM4DC

151

Communicating technical
information
There should be a way for the
academia to educate the
government

We can use the research


data as basis for capacity
building

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

FGD and Interviews: Future of Mining Industry in the Philippine Development

September 16-17, 2014


PHOTODOCUMENTATION
FGD at Manila Polo Club

Fig. 2.2.7. Round-table discussion.

Fig. 2.2.6. Round-table discussion


facilitated by Nimfa Bracamonte.

Fig. 2.2.8. Emmy Manlapig explaining


the rationale.

Fig. 2.2.9. David Brereton addressing


the group.

152

DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

2.3.

Photo documentation of Key Informant Interviews


FGD and Interviews: Future of Mining Industry in the Philippine Development

September 16-17, 2014


PHOTODOCUMENTATION
The Facilitators (MSU-IIT Team)

Fig. 2.3.2 The facilitators with


Congressman Erlpe John M. Amante.

Fig. 2.3.1. Interview with Agusan del


Norte congressman, Erlpe John M.
Amante.

Fig. 2.3.3. Interview with Surigao del


Norte Congressman, Hon. Francisco T.
Matugas.

Fig. 2.3.4. The facilitators with Surigao


del Norte Congressman, Hon.
Francisco T. Matugas.

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DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

FGD and Interviews: Future of Mining Industry in the Philippine Development


September 16-17, 2014
PHOTODOCUMENTATION
4: The Facilitators at UP Diliman Campus

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DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

APPENDIX 3A. Mini-Case Study of TVI Mining Company (Decommisioned) in Siocon,


Zamboanga del Norte, Southern Philippines
Nimfa L. Bracamonte
Amabelle A. Embornas
Angie V. Mag-aso
Brief Historical Background of Siocon (Source of Data: Municipal Land Use Plan)
The settlers in Siocon were first traced during the 17 th century. Several years later, Spanish
officials came to the area and asked a Subanen leader Que es nobre de este lugar? (What is
the name of the place?). The Subanen did not understand and asked the Spaniard Sinokon?
(Who is this?) referring to the Spaniard. Upon hearing what the Subanen said, the Spanish
scribe recorded Sinokon as the name of the place. Through the years, the place became known
as Siocon.
The first inhabitants were Subanen, followed by the Maguindanaos from Cotabato, and the
Ilanon from Basilan. Due to intermarriage, the Kalibugan was born. Siocon was divided into
territories of the three groups, the Subanen on the upper areas and along the rivers, the
Maguindanaons at the center, and the Ilanon at the lower areas, particularly Barangay Balili and
Malambuhangin. The Kalibugans stayed near the sea from Barangay Dolungin to Sta. Maria.
Political Background
Siocon became a municipality on March 10, 1937 through Executive Order No. 32 dated
December 23, 1936. Before becoming a municipality, Siocon was part of the municipality of
Sibuco. The municipality was created due to the influx of migrants from Luzon and Visayas who
came to the area in search of fertile land.
The first appointed Mayor of Siocon was Dionisio E. Riconalla while the first elected Mayor was
Justiniano P. Miranda from 1938-1941.
Location and Physical Information
Siocon lies of latitude; 742 north 736 South; longitude 12208 East and 1225 West. It is
located on the northeast quadrant of Region IX; on the north Zamboanga City, the regional
Center; and the southeast of Dipolog City, the Provincial Capital.
It is mostly a rolling country with wild valley along the coast facing the Sulu Sea. The lowland
areas are utilized as fertile rice fields dotted with islands of coconut grooves and pocket of
swamps and marshland stretching from the coastal barangay of Molambuhangin in the South.
It is bounded on the west by Sulu Sea; on the east by the Province of Zamboanga del Sur; on
the north by the municipality of Baliguian; and on the south by the municipality of Sirawai.
Basically, Siocon municipality is an agricultural community with a potential fishing area along the
coastal barangays.
Siocon is composed of 26 barangays with total land area 50,320 hectares. The coastal area is
composed of six barangays from Molambuhangin to the Northern part of barangay Sta. Maria
where the port is located. There are two rivers, the Balili River and the Lituban River that
converges into Siocon River at the Barangay Bucana, which drains towards the Sulu Sea.
Komitong creek located at the Poblacion area serves as the main drainage passing through the
mangroves and converges to the Balili River.
Table 3A.1. Barangay by area (hectares)
Barangay
Area (in hectares)
1. A.L. Micubo Sr.
657.00

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2. Balagonan
3. Bucana
4. Bulacan
5. Candiz
6. Datu Sailila
7. D. Riconalla
8. J.P Brillantes
9. Latabon
10. Makiang
11. Malipot
12. Manaol
13. Matiag
14. M. Francisco
15. Molambuhangin
16. New Lituban
17. Pangian
18. Pisawak
19. Poblacion
20. S. Arabi
21. S. Cabral
22. Siay
23. Sta. Maria
24. Tabayo
25. Tagaytay
26. Tibangao
Total
Forest Land
Total Land Area

588.00
103.20
583.00
4,989.00
140.00
552.75
376.87
741.25
446.87
255.20
450.00
374.00
280.00
1,661.20
435.93
347.75
697.50
126.00
435.00
612.00
650.00
737.00
1,935.50
108.00
367.18
18,650.37
31,669.63
50,320.00

Land Area
Siocon is an agricultural community composed of 26 barangays with a total land area of 50.320
hectares. Presented below is the distribution of the land use of the land area of the municipality.
Table 3A.2. Land Use by Land Area
Land use
Forest and Watershed
Teak reserved
Communal forest
Swamps and mangroves
Watershed
Man-made-forest
ISF
Timberland
Alienable and Disposable
Agricultural
Institutional and other land uses
Total land area

Area (hectare)
32, 605
955.0
164.0
850.0
612.5
817.21
684.21
20, 699.0
7, 933.0
10, 734.8
6, 867.29
50, 320.0

Percentage
65.01

21.34
13.65
100.0

Topography
The topographic features of the municipality ranges from plain to nearly level (38%), slightly
rolling to severely rolling (41%) and hilly to mountainous (21%), with two rivers that converges to
the Siocon river and drains to the Sulu Sea. The Poblacion area is flat which is suitable for
residential, commercial, institutional and light industrial uses with two slightly rolling and low
elevated hills, the PC, and the Pantukan hill. The coastal areas of barangay of Molambuhangin,
Balagunan, and Sta. Maria are slightly rolling with wide valleys and forest trees facing the Sulu
Sea. The lowland areas are utilized as rice fields, corn and coconut with swamps and
marshland stretching to Latabon in the Southern part, of Barangay Pisawak in the Eastern, and
barangay Matiag in the Northern part.

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Geology
Spreading within the geologic structure are the metamorphic, genesis and quartzite rocks. The
volcanic rocks include besalt and tuff agglomerate overlies the metamorphic rocks. These
sediments are found in the coastal areas. The sedimentary rock formations that overlie the
basement complex are thinly bedded, suggesting low suitability alluvium which overlies
limestone and loosely consolidated formation with sand, gravel and clay. The altitude of the bed
generally plays north to northwest parallel with the coastline.

Climate
The municipality of Siocon, like most of the municipalities of the Province of Zamboanga del
Norte belongs to the fourth type of climate which is mild and moderate where rainfall is evenly
distributed throughout the year. There are two pronounced seasons in the municipality, the wet
season that starts from June to December and the dry season that starts from January to May.
The highest rainfall was recorded in the month of June at 68.1 and the lowest at 64.4 mm. The
average rainfall therefore is 66.3 mm. Fortunately, the municipality does not fall on the typhoon
belt and seldom experienced heavy floods.
The recorded temperature of the municipality ranges from 26.4 degree to 28.7 degree
centigrade with January and May as the lowest and the highest recorded temperatures,
respectively. As to humidity, the highest recorded was on the month of November at 89% and
the lowest is in the month of January, March and April at 80%.
Economy
Siocon is a first class municipality that is primarily agricultural with farming as the major source
of livelihood and income for the people. Most of the labor force is engaged in agricultural
activities such as farming, fishing, forestry, and hunting. The total agricultural area is 9,735
hectares of the 50,320 hectares total land area of Siocon. The 9,735 can be divided into the
following crop areas:
Table 3A.3. Crops Planted
Crop
Rice lands
Corn lands
Coconut
Vegetable/ fruits
Other crops
Total

Land area (hectare)


2, 016.5
1,330.0
3, 240.0
200.25
2, 948.25
9, 735.0

Fishing is the next largest source of livelihood in Siocon. There are about 30 fishpond
concessions operating in the area, covering approximately 240 hectares. The two major types of
fishery production in this municipality are deep sea fishing and sustenance fishing.
Demography
Based on the 2010 census on population, the municipality registered a population of 41,637.
The population has increased due to mining activities in the upland area of the municipality.
Migrant workers come to the municipality, bringing with them their families in order to find a job
to sustain their needs. The spike in the increase of the population in 1975 was due to the start of
the mining activities by TVI.

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Table 3A.4. Historical growth of the population, 1939 - 1995


Year

Population

1939
1948
1960
1970
1975
1980
1990
1995
2000
2007
2010
Source: NSO, 2010

10, 326
11, 751
16, 953
18, 842
26, 723
29, 519
26, 544
28, 196
32, 699
41,221
41, 637

Increase or
Decrease
1, 225
5, 202
1, 889
7, 881
2, 796
2, 975
1, 652

Average growth
rate
1.23
3.16
1.06
7.24
2.01
1.05
1.21
3.23
3.25
0.37

The table below shows that Barangay Poblacion and Barangay Tagaytay have the highest and
the lowest population, respectively. The population density as of 2010 was 83/km 2 or 210/sq mi.
Table 3A.5. Population and number of households by Barangay, 2010
Barangay
A.L. Micubo
Balagonan
Bucana
Bulacan
Candiz
D. Riconalla
D. Sailila
J.P. Brillantes Sr
Latabon
M. Francisco
Makiang
Malipot
Manaol
Matiag
Molambuhangin
New Lituban
Pangian
Pisawak
Poblacion
S. Arabi
S. Cabral
Sta. Maria
Siay
Tabayo
Tagaytay
Tibangao
Total
Source: NSO, 2010

Population
1, 098
1, 637
2, 535
802
3, 081
1, 132
482
1, 895
1, 303
922
1, 303
956
956
920
508
1, 215
809
1, 726
5, 688
2, 180
755
2, 583
1, 427
3, 316
363
996
41, 637

Number of household
195
174
133
298
590
119
78
266
158
114
215
138
138
102
99
280
89
138
138
305
931
305
233
661
66
133
6, 150

People
The municipality consists of three groups of people, Christians, Muslims and Subanen. Siocon
is composed of 64.7% of Christians, 27.28%, Muslim, and 8.01% Subanen. The people took
along with them their local customs and practices, which in large measures enrich the
cosmopolitan and multi-tribunal cultures being pooled together in the new home of the
municipality of Siocon.

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About 82.5% of the people in the municipality are Christian divided among religious sect such
as Catholic, Protestant, Seventh Day Adventist, Iglesia Ni Cristo, Jehovahs Witnesses,
Aglipays Alliance and the Assembly of God.
Table 3A.6. Religious Affiliation
Religious group
Roman Catholic
Islam
Iglesia ni Kristo
UCCP
Seventh Day Adventist
Protestant
Total

Percentage
55.06
31.72
2.17
1.65
1.43
0.93
100.0

Traditionally, the Christian people live in the lowland area to manage their farming trade and
commerce, then the Subanen settled in the hinterlands, developed the upland farming as their
sources of livelihood, and most of the Muslim people live in the coastal area to concentrate on
fishing activities.
Language Spoken
Among the three groups of people in Siocon, Cebuano (Visayan) language is dominantly
spoken which is about 58.13% of the total population, followed by the Tausug 13.08% and
Maguindanao of 11.55%.
Health Services
Siocon has a mortality rate of 3.28%, a morbidity rate of 23.40%, birth rate of 12.18%, and
crude birth rate of 12.18% (2010 Municipal Profile). There were several reports of malnourished
children in the locality with 73% low, 23% moderate, and 25% severely malnourished.
The health services needs of the municipality of Siocon is primarily attended by the Siocon
Health District Services. The hospital has 25-bed capacity. One private clinic is in Siocon owned
by Ceasar C. Soriano.
The health need of the municipality is also being taken care of by the Rural Health Unit which
has one Main Health Center and five Barangay Health Stations. The Rural Health Unit is
manned by a Municipal Health Officer, one Public Health Nurse, six Rural Health Midwives, one
Dentist, one Dentist Aide, and one Sanitary Inspector. There are five drugstores in the
municipality owned by the private sector.
Educational Institutions
The literacy rate of the municipality is 56.75%. There are a total of 26 educational institutions
with 23 elementary schools located in various barangays, two high schools, and one college
namely Jose Rizal Memorial State College.
Recreation Facilities
A Cultural and Exhibition Center is located in the Poblacion, has been the venue of numerous
basketball leagues, social activities and cultural presentations. It has a capacity of 1,400
spectators. Within the public plaza in the Poblacion is located the Tanghalan ng Paraiso with the
tennis court, volleyball and basketball court. All the barangays utilized their multi-purpose
pavement basketball courts and school grounds as community playgrounds.
In addition, there is a cockpit arena usually open during Sundays, a skating rink with a fountain,
and several drinking places around the Poblacion and market areas as well as sing-a-long joints
in the locality. There are also three hotels, four lodging houses, and private residential houses
that can accommodate visitors or tourists.

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Protective Services
This municipality has a total of 32 police personnel. It has one Police Headquarter
complementing the police force in the maintenance of peace and order in the area. In addition,
the 3rd District PNP Mobile Force and the 10th Army Battalion and several CAFGUs are also
assigned in the area. There are also seven firemen to cope with fire incidents.
Welfare Services
The Municipal Welfare and Development serves the needs of the residents in the municipality.
Transportation
Siocon has 44 kilometers of provincial road, two kilometers of Barangay roads, and 14.645
kilometers of municipal streets. The concrete road is 2.735 kilometers. Below is the summary of
the road network and the type of pavement in the municipality.

Table 3A.7. Types of Roads


Concrete (kms)
National
1
Provincial
2
Municipal
2.735
Barangay
0.99
Source: Siocon Municipal Profile, 2010

Gravel (kms)

Earth (kms)
12
30

11.190
158.36

34.94

The most common means of land transportation for municipality to municipality is the bus line
while within the municipality the tricycle and sikad-sikad are used. It is estimated that there are
approximately 200 units of motored tricycle plying the Poblacion and nearby barangays. The
barangays that do not have roads, however, use bull carts. Single motorcycle commonly known
as habal-habal is also used when commuting in the interior areas.
The municipality has a port in Santa Maria about 10 kilometers from the Poblacion. There are
boats that ply the Siocon-Zamboanga route during good weather conditions.

Communication Facilities
The municipality of Siocon has one government postal service station under the Bureau of Post.
Also there are two communication facilities such as Globe and TM and Smart for mobile
communication. There are also money changers such as Mlhullier, Kuwarta Padala, Cebuana
Padala and GCash Stations that cater to the needs of the people.
In addition, there are also single side band radios operated by the Local Government Unit,
Zamsureco Station and in the ORACES Group of Company. There are two FM Radio stations,
but the extent of the communication is within Siocon-Sirawai-Baliguian only. One Cable Station
operates in the locality, the Siocon Cable Corporation with six channels available.
Water and Energy Facilities
Siocon has three types of water facilities available. There are 10 units of Level I, one unit of
Level II, and one unit of Level III facilities in the community.
Moreover, Zamboanga del Sur Electric Cooperative II provides the electricity needs of the
municipality.

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Siocon is a municipality located in the southern part of the province of Zamboanga del Norte,
Mindanao, Philippines (latitude 736" South, longitude 12223"East and1225" West), with an
area of 503.2 square kilometers. It is primarily an agricultural municipality with farming as the
major source of livelihood and income for the people. Figure 1 shows the farmlands in Siocon.
Fishing is the next largest source of livelihood with several fishpond concessions operating in
the area. The total forest land in Siocon covers 40,428 hectares. This constitutes 80.34% of the
municipal land area of 50,320 hectares. The municipality has its mineral deposit which is found
to be of commercial quantity. Mining of gold, copper and silver is operated in the eastern part of
this municipality particularly in Sitio Canatuan and some portions of Guinabokan, barangay
Pisawak and Candiz. Other deposits such as coal, silica and lime stone can also be found in
some areas of the municipality of Siocon website.
[Link] on June 2014). [6]. Figure 3A.2 shows the
map of the Canadian Area showing locations of mining permits and prospects.

Figure 3A.1. .Agricultural areas of Siocon showing rice and coconut plantations.

Figure 3A.2. Map of Canatuan, Siocon showing areas of mining and mining prospects
Source: TVI Pacific Inc. Annual information Form. March 19, 2014.

In the 1980s, gold panning activity in the Canatuan area was first recorded. Subsequently,
small-scale miners came to eke out a living. According to the Mines and Geosciences Bureau

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DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

(MGB) records, a Mineral Production Sharing Agreement (MPSA) was executed between the
government through the Department of Environment and Natural Resources (DENR) and
Ramon Bosque/ Benguet Corp. on October 23, 1996 (DENR. CENR-IX-A4, Siocon, Zamboanga
del Norte; cf Complete List of Approved MPSA - March 31, 2004 at [Link]).TVI (TVI
Minerals Processing, Inc. and TVI Resources Development (Phil,), Inc.)applied for an
Environmental Compliance Certificate (ECC) for the Canatuan Mining Project and obtained
approval on June 8, 1997 by the DENR through Secretary Victor O. Ramos ((DENR. CENR-IXA4, Siocon, Zamboanga del Norte).
A Deed of Assignment dated June 16, 1997 over the MPSA area was executed between
Ramon Bosque/Benguet Corporation and TVI Resource to assign, transfer and convey to the
latter all the rights, interests and obligations under the MPSA.. DENR approved the Deed of
Assignment on May 14, 1998(DENR. CENR-IX-A4, Siocon, Zamboanga del Norte;
[Link]
human
rights.
org/sites/default/files/media/bhr/files/[Link] .
Initially, TVI produced gold and silver dor from an overlying gossan (oxidized) portion of the
deposit from 2004 to 2008. As this upper portion of the ore body was mined out, the underlying,
primary sulphide portion of the deposit, containing copper and zinc, was exposed. By March
2009, TVI had finished the construction of a new sulphide production plant and started
commercial production of copper concentrate. TVI completed construction of a Zinc Circuit that
allowed for the production of zinc concentrate in April of 2010. The 39th shipment of copper
concentrate was completed on January 26, 2014 summing up a total production volume of
195,660 dmt and the 7th shipment of zinc concentrate was completed on January 7, 2014 for a
total volume of 30,548 dmt, as compared to an initially anticipated 119,800 dmt of copper
concentrate and 6,100 dmt of zinc concentrate. Reserves mined significantly exceeded initial
reserves as a result of additional material found and mined. The copper and zinc operations
have provided a 5.9 year mine life compared to an initially anticipated 5 to 6 year mine life, but
actual mill throughput has been much higher than planned.
The Company has stopped milling operations at its Canatuan mine after having exhausted its
remaining stockpile, pending the results of assessing various mine life extension and expansion
opportunities. The operation has been put under maintenance while evaluating mine life
extension options before the implementation of the planned final mine rehabilitation and
decommissioning plan ([Link] Mine/
[Link]; TVI Pacific Inc. Annual information Form. March 19, 2014).
Mitigating measures and corresponding programs were undertaken by TVI to deal with the
environment were obtained from the interviews as follows. Note that at the time of study, the
company was already on a decommissioning status and the researchers failed to have access
to their formal documents. But the research team was given a brief verbal orientation on the
status and partly observed the rehabilitation with plants growing along mined-out areas.
Table 3A. 8. Mitigating measures undertaken by TVI
Mitigating measures undertaken by TVI

Frequency

Percent

Tree planting by people living near the affected areas ;


Planting of shrubs and other ornamental plans would not
return the area to its previous situation / Mangrove reforestation with bakhaw and nipa with 100 thousand
propagules for planting; Environmental development,
rehabilitation and benching, plantation of mined-out areas,
progressive rehabilitation, tired their best to prove, give
seedlings, TVI has nurseries, usually mangium, fruit trees ;
Tree planting along the riverside, provide seedlings (cacao)
for rehabilitation of the IPs; 5-10 years rehabilitation contract
on the mining areas

69.2

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DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

Mitigating measures undertaken by TVI

Frequency

Percent

Complete record with environment development, seedlingrehab on one body, tunnel back filling, tribal hall, re- routing
of river back to original water way embankment

7.7

Others

7.7

Maize, Coffee-provided the needs and training. TVI will also


buy the produce. The owner of the company has good
intentions but the CREDD personnel did not implement it
well. There was supposed to be 12 classrooms but it was
not implemented.

7.7

7.7

13

100

Medical doctors, free consultation, rip rapping, road


maintenance
Total

Concerning the Social Development Programs for the community as part of the corporate social
responsibility, the table below shows the programs/projects undertaken by TVI for the
community. These include infrastructure such as roads, barangay halls, health centers and
schools, livelihood projects for fishing and farming, mangrove planting, and royalty tax for the
IPs.

Table 3A.9. Projects undertaken by TVI in Siocon and surrounding communities


Name of program or project

Frequency

Percent

Road accessibility and maintenance

17.1

Project: schools(Day Care, Elementary, High School)


Fishing equipment, fishing bras, pump boats
(motorized banca), nets
Hog raising, womens livelihood (handicraft and
microfinance) / Handicraft training and marketing
Pisawak Spillway construction

14.3

11.4

14.3

5.7

Scholarship-NORSO

5.7

SDMP

5.7

Health Center / Hospitalization

5.7

Training on cooking (squash, sardines, bagoong)

2.9

Pasalubong center by the CREDO

2.9

2.9

2.9

TVI employed Tausug residents

2.9

Mangrove reforestation

2.9

IP royalty

2.9

Total

35

100.0

Farmers: farm inputs (seedlings, vegetables, mud


boat)
Barangay Hall infrastructure

E.2. Environmental Status


This environmental status report is based on interviews from local stakeholders and ocular
observation of the area from the R.T. Lim to Siocon access road on May 2014. Secondary data
available from the DENR CENR-IX-A4, TVI Resource Development Phils., Inc website and
NGO reports were also used as reference. No actual scientific data gathering to investigate
environmental conditions such as on the soil and aquatic ecosystems were done by the team.

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Environmental Impacts and Management


Environmental disturbance is inevitable in most, if not all, anthropogenic activities that promote
development to address the economic needs of the society. In a mineral-rich and primarily
agricultural area where these activities are common, such as in Siocon, several impacts to the
environment can be identified. These include those that concern the aquatic and terrestrial
systems, such as disturbance to the watershed, erosion, sedimentation landscape modification,
diversion of natural waterways and water quality degradation. Noise pollution and impacts to air
quality are of concern as well. Consequently, impacts to biodiversity brought about by these
disturbances are highly likely to occur. However, it is valuable to note that strategies and
mitigation measures have been developed and implemented such as those by the large-scale
mining industry to represent its commitment for environmental management and protection
during the stages of mining, including reclamation and closure operations.
Mining activity increased in the area in 2004 resulting in an increase in the monitoring activity.
Subsequently, through the Mine Rehabilitation Fund Committee (MRFC), an independent
monitoring team was established to oversee the implementation of the environmental and social
programs. The MRFC is tasked to deputize a Multipartite Monitoring Team (MMT) to serve as
monitoring division. The team is comprised of a MGB representative as the chairman, and
representatives from the Environmental Management Bureau (EMB), local government unit
(LGU), non-government organization (NGO), Indigenous People (IP), CENRO, Provincial
government and TVI (DENR, CENR-IX-A4, cf Annual Environmental Protection and
Enhancement Program Year 2010. November 2009). The figure below is a map of Siocon
showing the regional water quality monitoring stations (Fig.3A.3).

Figure [Link] water quality monitoring stations in SioconTVI Pacific website.


Source: [Link] Mine/ [Link]
Water quality is a very important factor to consider in identifying environmental impacts.
Information from interviews revealed that decline in water quality due to heavy siltation and
heavy metal contamination may have caused reduced yields in the communitys fisheries and
farms. Some attribute this to the mining activities since they have observed these disturbances
since mining began its operations. Furthermore, sedimentation in Siocon River and some
waterways along the access road from Siocon proper to Canatuan are evident in the area (Fig.
3A.4).

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Figure [Link] and a water system along the Siocon proper - Canatuan access road.
A recent project by the Coastline Philippines, Inc. on the Physico-chemical and Trace Metal
Water Quality Assessment in Siocon and Sibugay Coastal Waters in November and December
2013 reported that Litoban river (one of the major river systems in Siocon with tributaries from
upland areas such as Canatuan) and Siocon coastal waters has acceptable values for
temperature and salinity; low dissolved oxygen (DO) and biological oxygen demand (BOD- is
the amount of dissolved oxygen needed by aerobic biological organisms to decompose organic
matter) and slightly acidic (pH5.2-5.8) waters were observed particularly in Litoban river;
upstream and midstream station cyanide concentrations in the river are slightly higher than the
set maximum of 2%; cyanide concentration in coastal stations are lower and acceptable;
transparency and mercury values are higher than the standard values set by the DENR with
0.02 parts per billion (ppb) for mercury (Coastline Philippines, Inc. 2013).
The report further discloses that small-scale mining industries are still actively utilizing mercury
for mineral processing and that cyanide used in large scale industries may have overflowed
from dumpsites in the upland areas. It must also be noted that the sampling was done during a
rainy season with reportedly heavy rainfall. With reference to data from previous years, water
quality assessment by the MMT for 2009 as reported in the 2010 environmental protection
program document of TVI (Annual Environmental Protection and Enhancement Program Year
2010. November 2009) shows that results of Free Cyanide analysis for the sampling event
conducted in March from the upper Canatuan Creek B identified presence of free cyanide
concentration in slight exceedance of the regulatory standards (Annual Environmental
Protection and Enhancement Program Year 2010. November 2009). However, split TVI sample
for the same station sent to a DENR accredited laboratory identified negative presence of free
cyanide in the water. This result was disregarded considering there are no potential sources of
free cyanide from this stream being not directly affected by the mining operations. All other
stations during this sampling event indicated absence of free cyanide contamination.
Further, results of free cyanide analysis for the sampling event conducted in July of the same
year from Upper Canatuan Creek an identified presence of free cyanide concentration in slight
exceedance of the regulatory standards. A resampling was conducted for the same station
which resulted in concentration of free cyanide below detection limits. All other sampling
stations during this monitoring event indicated absence of free cyanide contamination.
Generally, the water quality was reported to be within required ranges - at or below standard
acceptable values. Similarly, in 2013, the mean concentrations of the metals and physical
parameters were within the water quality standards and that there was some improvement in
water quality within those streams draining the surface mine and overburden waste disposal
areas which are subject to potential Acid Mine Drainage (TVI Pacific Inc. Annual information
Form. 2014). For sedimentation, it is apparent that several causes can be attributed other than
mining-related activities, these include farming practices, construction of roads and other
infrastructures such as housing, and even natural processes depending on the climatic
conditions and quality of the substrate. As for cyanide, it is presently the acceptable material for
gold extraction over mercury since the former can be degraded by microorganisms and
ultraviolet exposure. Hence, it is less likely for it to be accumulated as water is being transported
downstream towards the coastal areas, if ever leaking may have occurred.
Large-scale mining industries have already abandoned mercury, which is known to hyper
accumulate and is toxic to both humans and the environment, in favor of chemicals like cyanide.
But small-scale miners still utilize mercury because it is easy to use, cheap and leaves the gold

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DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

cleaner than just panning. On their end, TVI has taken measures to mitigate and monitor these
highly potential impacts as sedimentation and cyanide contamination. Erosion and
sedimentation were managed using surface erosion control structures, diversion canals, silt
fences and sedimentation ponds. Water quality has been reported to be monitored by the MMT
on a regular schedule. Several sediment ponds were maintained within the MPSA. These serve
as control strategies to mitigate the impacts of soil erosion and sediment conveyed by surface
water runoff to Canatuan, Lumot and Cusan Creeks. Furthermore, a Sulphide Tailings
Impoundment which serves to control sediment materials within the Canatuan Creek watershed
that are not captured by the smaller sediment ponds was complied (Fig. 3A.5). A neutralization
pond that serves as a treatment pond during instances when acid mine drainage is observed
was also constructed. Furthermore, researches such as on sediment pond effectiveness,
cyanide degradation and vegetation treatment of acid mine drainage are also being done.

Figure 3A.5. The sulfide tailings dam of TVI in CanatuanSiocon.


Other environmental issues raised during the interviews include the occurrence of river pollution
that caused skin infections. A report, however, explained that the Department of Health (DOH)
in Siocon, had done a study following the allegations and found that the skin condition was due
to scabies, a contagious disease characterized by severe skin itching caused by mites, which
passed via water ([Link]
[Link]).
In addition to this, another issue on the severe flood in Siocon and adjacent municipalities in
2012 was perceived by some residents to be a dam spill due to the heavy rains brought about
by a tropical depression. On the contrary, TVI has officially stated that there was no dam
leakage and that the Sulphide Tailings Impoundment Dam, the only operational dam during that
time, continues to have its designed 8-meter freeboard or the distance between the surface of

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the contained water and the top of the dam. Instead, the unfortunate event was due to
extraordinary heavy rain with precipitation exceeding way beyond the usual maximum (posted
by TVIRD on September 26, 2012 [Link] news_
id=20120926014307). Furthermore, there are impending risks of soil erosion on landscape
stability, particularly along roads and disturbed lands (Figure 3A.6).

Figure 3A.6. Areas showing potential landscape stability risks along the Canatuan-Siocon road.
Other TVI control strategies for the land resources focus primarily on rehabilitation and
revegetation of the disturbed lands. Progressive rehabilitation has been practiced particularly
within the overburden waste areas with activities carried out each year to rehabilitate areas no
longer active which include landscape stabilization, drainage controls and re-vegetation. These
also include those of the small scale mining areas operated by others. As of December 2013,
more than 52,000 seedlings were reportedly planted in 2013 with a large number being
threatened and endangered tree species. Through the end of 2013, more than 400,000
seedlings have been planted within the disturbed areas since the beginning of the Gossan
Phase operations. More than 100,000 seedlings are maintained within the two company
nurseries on a continual basis (TVIRD issues official statement on Siocon flooding (posted by
TVIRD
on
September
26,
2012.[Link]
Figure 3A.7 shows the sulphide mine open pit with revegetation activities commencing at the
topmost part. Through ocular observation, patches of dense areas with ferns and tall trees are
still evident along the road in Canatuan. With regards to final land use options, consultations on
closure planning discussed on the plantation of fruit-bearing trees. It was recently reported that
cacao plantation was found to be a feasible crop considering the soil quality and topography of
the area, in addition to low maintenance requirements of the plant. TVI is also involved in
rehabilitation programs outside the MPSA area such as its assistance in the development and
maintenance of mangrove areas within the vicinity of the Sta. Maria port, which was one of the
prime transport areas for the company. Air and noise pollution has also been regularly
monitored by the company.

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Figure [Link] sulphide mine open pit with revegetation commencing at the top.
It is unavoidable that wildlife species within the area are disturbed by the presence of activities
from mining and support services. Animal poaching, however, may have been significantly
reduced due to security and limited access to the TVI Project Area. TVI, through an external
consultant, has done projects that monitor the mining operation impacts on aquatic and
terrestrial wildlife. The overall conclusion indicated that the area remains very diverse with
respect to wildlife species. Several threatened species identified in the baseline studies continue
to inhabit the area and have been able to successfully coexist with the mining and operations
activities (Annual Environmental Protection and Enhancement Program Year 2010. November
2009). The DENR CENR-IX-A4 based in Siocon also reported sightings and subsequent
location of the Philippine Eagle (Pithecophagajefferyi) nesting site in its adjacent municipality of
Baliguian, particularly in Barangay Benoni (DENR. CENR-IX-A4).It must be noted that each
breeding pair of this critically endangered species requires a wide home range. Their territory
has been estimated at about 100 km2, and a study on Mindanao found the nearest distance
between breeding pairs to be about 13 km on average, resulting in a circular plot of
133 km2(Bueser, GL, et al. 2003). Considering this, their presence has implications on the
ecological stability of the area, particularly, in Siocon as well.
Further rehabilitation and revegetation activities, including reconstruction of aquatic habitats are
anticipated to occur within the year.

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APPENDIX 3B. Profile of Key Informant Interviews in Siocon, Zamboanga del Norte
(Decommissioned TVI Company)

Profile of Key Informant Interviews


Table 3B.1. Sector, Organization and Position
Specific Sector
Academia
Business

Frequency
1
1

Percent
7.7
7.7

Cooperative
DENR
Fisher folk Association
Former Mayor
Former TVI Employee
Religious Sector
RHU
Senior Citizen
Women's Sector
Total
Organization

1
2
1
1
1
2
1
1
1
13
Frequency

7.7
15.4
7.7
7.7
7.7
15.4
7.7
7.7
7.7
100
Percent

None

30.8

Former Mayor
Ecosystem Management Specialist
Forestry Specialist, OIC-CENRO
Former TVI
Julian Soriano Memorial Comprehensive
Kauswagan Agrarian Reform Beneficiaries Multipurpose Coop
OIC-RHU
Siocon Market Vendors Association
Women's Organization

1
1
1
1
1

7.7
7.7
7.7
7.7
7.7

7.7

1
1
1

7.7
7.7
7.7

Total

13

100

Position

Frequency

Percent

President

25

Head Supervisor

25

Conservation Officer

25

M & E Officer

25

Total

100

Table 3B.2. Sex, Ethnic Affiliation, Education, Civil Status, No. Of Children and Occupation
Sex
Frequency Percent
Male
9
69.2
Female
4
30.8
Total
13
100
Ethnic Affiliation
Frequency Percent
Bisaya/Cebuano
8
61.5
Boholano
2
15.4
Ilocano
1
7.7
Tausug
1
7.7
Bicolano
1
7.7
Total
13
100.0
Highest educational attainment
Frequency Percent
High School Level
1
7.7
High School Graduate
1
7.7
College Level
1
7.7
College Graduate
8
61.5

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Post Graduate (MA)


Total
Civil status
Single
Married
Widow
Total
Number of children

2
13
Frequency
2
8
3
13
Frequency

15.4
100
Percent
15.4
61.5
23.1
100
Percent

9.1

45.5

27.3

18.2

Total

11

100

Occupation

Frequency

Percent

Business owner

23.07

No answer

15.4

Government Employee

15.4

Church worker

7.7

Development Officer

7.7

LGU Casual Employee

7.7

Priest

7.7

Retired

7.7

Teacher Principal

7.7

Total

13

100

Table 3B.3. Spouse occupation


Spouse occupation
Frequency
No answer
4
Business-restaurant
1
Deceased
1
Former Inspector
1
(Municipal Engineer)
Housewife
2
Mlhuiller employee
1
Teacher
3
Total
13

Percent
30.8
7.7
7.7
7.7
15.4
7.7
23.1
100.0

Table 3B.4. Years of residents, Native born in the area and Place of origin
Years of residency in the area (in range)
Frequency Percent
10 years and below

30.8

11 - 20 years

7.7

21 - 30 years

7.7

31 - 40 years

15.4

41 - 50 years

15.4

51 - 60 years

7.7

61 years and above

15.4

Total
Native born in the area
Yes

13
Frequency
2

100
Percent
15.4

No

11

84.6

Total

13

100

If not born in the area, place of origin

Frequency

Percent

Dapitan City
Dipolog City

1
2

9.09
18.18

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Piacan, Siraway
Sibuco
Surigao del Sur
Labason, Zamboanga del Norte
Alicia, Zamboanga Sibugay

1
1
1
1
1

9.09
9.09
9.09
9.09
9.09

Zamboanga City

18.18

Zamboanga del Norte

9.09

Total

11

100

Additional Information
Table 3B.5. Experience of natural disaster, of other forms of disaster and Year natural disaster
happened and Years other forms of disaster
Experience of natural disaster
Frequency Percent
Flooding
11
68.8
Earthquake
2
12.5
Typhoon
Mining
Low Pressure Area

1
1
1

6.3
6.3
6.3

Total
Experience of other forms of
disaster
Fire
MILF attack/ War
Total
Year natural disasters happened

16

100

Frequency

Percent

4
6
10
Frequency

40
60
100
Percent

1952
2004
2012
2013
Total
Year other forms of disaster
happened
1972
2003
Total

1
2
2
9
14

7.14
14.28
14.28
64.29
100

Frequency

Percent

1
1
2

50
50
100

Table 3B.6. Impact or destruction of natural disasters


Frequency

Percent

23.1

15.4

7.7

7.7

7.7

7.7

7.7

Kaingin, road widening (cutting of trees), drainage system

7.7

Strong winds during typhoon

7.7

My mother died

7.7

Total

13

100.0

Intense rain / Houses were swept away due to continuous rain / Water
reached our house at half meters, market was affected but houses near river
swept away
There are a lot of flash flood occurring / After typhoons, the dam has flash
flood continually
August 2013 no casualties because it happened at daytime, structure of
basin/catchment of 3 rivers, heavy rains
Typhoon Pablo, downtown area
Damages on agriculture
Due to heavy rains, past two years happened in the municipality, 5 inches of
water
Houses destroyed

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Table 3B.7. Impact or destruction of other forms of disasters


Frequency Percent
5 policeman and civilians on May 4,
1
33.3
houses in town was burned down
5-6 Policemen died
1
33.3
Some neighbours were killed
1
33.4
Total
3
100.0

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APPENDIX 3C. Photo Documentation of the Field Research

Siocon, Zamboanga del Norte, Philippines


May 2014

Fig.3.c.1 Entry protocol with Siocon Municipal Mayor, Hon. Julius S. Lobrigas

Fig.3.c.2. With the former Siocon Municipal Mayor.

Fig. 3.c.3. The Central District/ Poblacion of Siocon (left: Rizal Park; back left: Municipal
Hall; right: Catholic Church).

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[A]

[B]

[C]
[D]
Fig. 3.c.4. Landmarks of Siocon: A. Entrance Arc. [Link] Center C. Municipal Hall. D.
Cultural and Exhibition Centre.

[A]

[B]

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Fig.3.c.5. Key informant interviews in Poblacion: A. with DENR CENRO OIC Rey. B.
with Siocon Market Vendors Association President, Mr. Juvael Musadin. C. With D. With the
DENR CENRO IX-A4 staff.

[A]

[B]

Fig. 3.c.6. Siocon Public market: A. Store selling silver. B. Tuna catch from nearby seas.

[A]
[B]
Fig. 3.c.7. Siocon River: A. Coconut plantations near the river bank. B. Children playing in
the river.

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[A]
[B]
Fig. 3.c.8. Agricultural Areas: A. Corn plantation with cattle grazing, near the river
bank. B. Rice plantation showing the use of carabao/ traditional (left) and
modern methods/ tractor (right) in tilling the soil.

[A]
[B]
Fig. 3.c.9. Buildings in Canatuan: A. Canatuan Elementary School. B. TVI Cooperative
building.

[A]

[B]

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[C]
[D]
Fig. 3.c.10. Communities in Canatuan: A-B. Stores along the road. C. A basketball
court and some houses; showing a woman washing and hanging clothes near the
wooden basketball ring board, and the sulphide mine pit at the back right. D. Some
residents and their dwellings along the smaller road where the mine open pit can be
clearly observed.

[A]

[B]

[C]

[D]

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DEVELOPING A SHARED AGENDA FOR MINING DEVELOPMENT IN THE PHILIPPINES

[E]
[F]
Fig. 3.c.11. Infrastructures of the large-scale mining company, TVI: A-B. The motorpool.
C-D. The sulphide mine open pit. E-F. Tailings impoundment facilities/ dam.

[A]
[B]
Fig. 3.c.12. Signage: A. TVIs SDMP highlights. B. The companys commitment to preserve
life.

[A]

[B]

[C]

[D]

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Fig. 3.c.13. Interviews at Canatuan: A-B. With CREDO representative. C. With
Timuay Charlie Tugtugan. D. A Subanen house along the road near TVI
office.

[A]
[B]
Fig. 3.c.14. A small scale miners shop selling accessories made of gold and silver.

[A]

[B]

[C]
[D]
Fig. 3.c.15. Sights along the Siocon-Canatuan access road: A. Plants along the terrain. B.
Housing of TVI employees at the left. C. A small bridge with a nearby stream/
waterway. D. View from the top showing the meandering Siocon river and the coast.

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APPENDIX 4. Mining Maps in the Philippines


4.A. Cement Mines Maps

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4.B. Metallic Mining Maps

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183

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4.C. Non Metallic Mines Maps

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Source: [Link]
Published 9:49 PM, Jun 28, 2012
Updated 12:10 PM, Jan 25, 2013
Accessed on 8:59PM, Aug 30, 2014

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