Have the Mining Crushers Been Silenced? When we look at the metals we use in our daily lives – our jewelry, bronze and silver artworks, the coins we exchange, and even the microchips in our cell phones and laptops, among many others – we appreciate them, but often forget that they are not inexhaustible. Our metal ores in the Philippines are precious, however, once they are extracted and processed as raw materials, they may soon be shipped to other countries and then, simply return to us as much more expensive finished products. May 20, 2014 by PF By Ma. Corazon P. Lim Mining has challenged both the natives and the colonizers in this nation. Long before the Spaniards came, our ancestors had been trading with raw gold as medium among the Chinese, Japanese, and Indian merchants in Asia. Yet, it was the Royal Decree of 1837 that was officially recognized as the first Philippine mining law which paved the way for the opening of the Lepanto mine for copper and gold in 1864. 1 Nevertheless, the conquistadores were not as aggressive as the Americanos were in expanding the mining industry. Many of the army troops that came over had experiences in the California and Klondike gold rush that started in 1849. By then, the United States had already adopted the gold standard for its federal monetary system. Hence, armed with the Philippine Bill of 1902, the nation’s second mining law, the veterans who had deeper understanding of the country’s geology, stayed on to explore its treasured mines of raw gold. Baguio was developed, not only because of its invigorating climate, but also because the Benguet Mine, along with seventeen other nearby gold mines, was an attractive magnet to the colonialists. The industry turned fully-blown with the Commonwealth Act 137 in 1936 that became the nation’s third mining law. This period was referred to as the peak or the boom years when forty gold mines were operating and exporting as much as thirty tons annually,until the new invaders came. But It was also the time when indigenous peoples like the Igorots started to be forcefully driven out of their ancestral lands. Certainly, during their short but infamous reign, the Japanese also exploited the nation’s iron, copper, chromite, and manganese ores for their military campaigns. 2 After the devastation of World War II, Filipino leaders were deceived into signing the Laurel-Langley Agreement, together with the Parity Rights Amendment supposedly to rehabilitate the nation, in a manner that would benefit both the U.S. and the Philippines. However, it turned out to be more favorable to the former colonizers as copper mines were established, aside from their retaining owner- ship of the gold deposits. Atlas, Sipalay, and Philex were major sources of these two metals in the late 1950s. Then, a fellow Filipino took advantage of the situation two decades later by imposing martial law. Former President Ferdinand Marcos declared Presidential Decree No. 463 in 1974 which became the fourth mining law in the country. With it, he gained full control over the mines since the previous treaties with the Americans had expired. Yet, the greed had to end with our oppressed people’s determination to regain control of the government. Despite the simultaneous closure of fourteen metal mines and the low prices for which our metal products competed in the international market, the industry did not totally collapse. Gold panning grew as a small-scale industry which became a major source of livelihood for families that took the risks in areas like Mount Diwalwal, this time in Mindanao. Thus, there arose the need for the newly-established government to restructure the mining industry. The Philippine Mining Act of 1995 (Republic Act 7942) became the nation’s fifth mining law which has not yet been revoked up to the present, although it has ignited a lot of controversies. 3 On October 11, 2006,the National College of Public Administration and Governance (NCPAG) at the University of the Philippines in Diliman carried out the Forum entitled “The Challenges and Prospects of Sustainable Mining in the Philippines.” Engr. Rodolfo Velasco stressed that meeting the needs of the present generation should be done without compromising the ability of future generations to meet their own needs. This was his definition of sustainable mining. He enumerated eight inland mineralized areas and offshore mineral reservations within the Philippine territorial limits. These are in Ilocos Norte(Feldspar), Zambales(Chromite), Camarines Sur(Siruma), Samar(Bauxite),Surigao(Mineral), Zamboanga(Mineral), Bulacan(Biak na Bato), and Compostela Valley(Diwalwal). Meanwhile, Engr. Rolando Pena explained the implementing rules and regulations (IRR) of the R.A. 7942 and the amendments it has gone through, particularly on the Financial Technical Assistance Agreement (FTAA) that the government is willing to extend investors to encourage them.4 Engr. Glen Marcelo Noble spoke in behalf of the Department of Environment and Natural Resources(DENR) as he focused on the three principles of sustainable development: economic growth, environmental protection, and social equity. Besides, he expertly pointed out activities that promote responsible mining. First, to conserve mineral resources, Filipinos need not only be exporters of raw products but must also develop downstream industries like mineral processing. Second, the country has to promote the use of efficient technologies such as anti-pollution devices and waste reduction processes to minimize the negative impacts of the industry. Third, as a precautionary measure, the possible impacts on the environment must be scrutinized even before a project starts to be operational. Furthermore, he emphasized the need to rehabilitate the mining area in case it gets abandoned or as soon as the mining is finished. He cited the Marcopper Mines in Marinduque which created a lot of problems, like acid generation and dried up tailings in the Boac river, that were never fully resolved after the mines closed down.5 The last speaker, Atty. Rhia Muhi’s insights were real eyeopeners to most of the 150 participants in the forum. She explained her ideas in layman’s terms. She stated that although the government claims the investments in the mining industry are meant to alleviate poverty, there is no direct correlation to prove the community will prosper by allowing a mining firm to operate. Jobs available in the mines are very highly technical, like driving million-dollar trucks, thus, only a few really benefit from them. Auxiliary rights, such as water rights, are given to investors, instead of farmers that need them for irrigation. The Mining Act also allows full participation of 100% foreign corporations which should have been reserved for Filipinos. The mineral resources which are non-renewable are owned by the state, yet, the only share that the national and local governments receive are the minimal excise taxes. Aside from these, unjust militarization in affected areas often evolves in social unrest. Moreover, smelting still frequently takes place in other countries which results in an “export-oriented, import-dependent economy.” 6 The issues tackled at the Diliman Governance Forum were confirmed in the December 13,2006 report presented by a foreign group, the Fact-Finding Trip to the Philippines (from July to August , 2006) that was led by the British Member of the Parliament (House of Commons) Clare Short. The group was primarily concerned about the Philippine mining industry’s failure to comply with national law and international standards. They detested the corruption and extrajudicial killings going on to secure the consent of people to operate and expand mines. Instead of free, prior, informed consent (FPIC), much misinformation, misrepresentation, bribery, and intimidation happened. They were alarmed by the fact that some of the mining companies were even based in the United Kingdom. Besides, the World Bank, which is given substantial funds by U.K. taxpayers, was supportive of the “expansion of destructive mining in the Philippines.”7 The group also wanted the matter discussed further by parliamentarians, the Department for International Development, as well as by the European Union itself. The latter was urged to show a stronger commitment to the welfare of indigenous people and to sustainable development. The Philippines simply needed to restore its degraded environment and provide a stable future to millions of displaced workers in agriculture and fisheries. 8 On Monday, July 9, 2012, President Benigno Aquino III released the long-awaited Executive Order No. 79 regarding his policies on the mining industry. Beforehand, there had been protests from some Catholic bishops who campaigned for a moratorium on its implementation.9 Nevertheless, many businessmen, including the Chamber of Mines of the Philippines, approved of the directives involved. Environmentalists were happy that Palawan was excluded from being mined. However, there remained qualms about the implementing rules and regulations (IRR) that followed soon afterwards. Conflicts arose on the vagueness and contradictory implications of some sections such as those on pending applications and renewal of permits for existing mining claim holders. Critic Danny Jovica also voiced out his discontent with permitting only gold, silver, and chromite to be mined, and excluding other minerals such as copper, zinc, manganese, and lead.10 Consequently, as of September 29, 2012, the same IRR have been suspended, most likely, until a new legislation shall have been passed after next year’s election. Although the COMP President Benjamin Philip Romualdez claimed his group recognized President Aquino’s “difficult duty of balancing interests,” he still stated that they were” preparing legal action against the government.” They oppose the government’s move to renegotiate contracts after twenty-five years, instead of the maximum fifty years.11 But honestly, is fifty years not too long for a mining contract to be assessed? Anyway, it can be renewable, provided that the firm had satisfactorily abided by the conditions set by the government. It is long enough for the company to have recovered its initial investments, as the Marcopper did after about the same period (1970-1996). In conclusion, let us be grateful for the abundant mineral resources our country has. As the Diliman Forum reported, we rank third in gold, fourth for copper, fifth for nickel, and sixth for chromite! Moreover, our offshore potentials for minerals have hardly been tapped. But let our generation not be too greedy to prosper; we owe our descendants their future sustainability. REFERENCES: End Notes 1. “Historical Sketch of the Mining Industry.” prrm.org(November 3, 2012) 2.Ibid. 3.Ibid. 4.The Challenges and Prospects of Sustainable Mining in the Philippines. Working Paper Series No.8. Diliman Governance Forum. National College of Public Administration and Governance, University of the Philippines. (March, 2008) 5.Ibid. 6.Ibid. 7. Short, Clare. M.P. “Mining in the Philippines: Concerns and Conflicts. Report of a Fact-Finding Trip to the Philippines (July-August, 2006).” Published on December 13, 2006. West Midlands, U.K.: Society of St.Columban. C-2007. msdata.iucn.org. 8. Ibid. 9. Cabacungan, Gil C., Jr. and Jocelyn R. Uy. “Aquino to unveil mining policy Monday; bishops ready to campaign vs. mining” business.inquirer.net (July 8, 2012) 10. Jovica, Danny. “My Insights into Mining and the Philippines: Executive Order No. 79 by Benigno S.Aquino III, President of the Philippines.” wordpress (July 11 2012) 11. “Controversial mining rules suspended.” Philippine Daily Inquirer. newsinfo.inquirer.net (September 29, 2012) References Cabacungan, Gil C., Jr. and Jocelyn R. Uy. “Aquino to unveil mining policy Monday; Bishops ready to Campaign vs. mining” business.inquirer.net (July 8, 2012). “Historical Sketch of the Mining Industry.” prrm.org/publications/gmo2/historical.htm. (accessed on : November 3, 2012) Jovica, Danny. “My Insights into Mining and the Philippines: Executive Order No. 79 by Benigno S. Aquino III, President of the Philippines. wordpress (July 11, 2012) Olchondra, Riza and Jeannette I. Andrade. “Controversial mining rules suspended,” Philippine Daily Inquirer newsinfo.inquirer.net (September 29, 2012) Short, Clare. M.P.. “Mining in the Philippines: Concerns and conflicts. Report of a Fact-Finding Trip to the Philippines (July-August, 2006).” Published on December 13, 2006. West Midlands, U.K.: Society of St. Columban. msdata.iucn.org. C-2007. The Challenges and Prospects of Sustainable Mining in the Philippines. Working Paper Series No. 8. Diliman Governance Forum. National College of Public Administration and Governance, University of the Philippines. (March, 2008)
Posted on: Fri, 11 Jul 2014 12:33:07 +0000
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