What with the irreversible social and environmental costs, the Arroyo government perilously guns for gold

or economic salvation in mining. With the Arroyo administrations calibrated policy on the revitalization of mining, the Philippines still stands to live up to its reputation as the 5th most mineralized country in the world. And far from abating the sordid, and irreversible, legacy of environmental destruction, social displacement and other correlative grim consequences brought by the countless years of profligate mining and quarrying operations, transnational corporations (TNCs) are as fervidly posed to scrounge, fleeceor even sack up to the tiltat the countrys rich mineral resources, thanks to Mrs. Arroyos Mining Act of 1995, or Republic act 7942 (which she authored erstwhile as Senator) and Minerals Action Plan (MAP), a policy document she issued immediately after the Supreme Court reversed its ruling on the Mining Act only last December 2004. That TNCs are clambering to seize mining investments in the Philippines is no doubt because of the countrys unrefuted track record in mineral production, dating back to pre-Spanish era, which speaks of its bountiful mineral wealth bestowed by nature. This is well confirmed and recognized by many geologists not only in the Asia-Pacific region but also in many parts of the world. Unassumingly, records and figures are enticing enough to account for the increasing investment interest in the Philippines. The 2004 Mining dossier published by the National Secretariat for Social Action, Justice and Peace of the Catholic Bishops conference of the Philippines reports that based on past production and defined resources, the Philippine mineral endowment is second in the world for gold and third for copper. The Philippines has reserves of about 13 known metallic and 29 non-metallic minerals. In 1996, the Mines and Geosciences Bureau of the Department of environment and Natural Resources recorded a total of 7.1 billion metric tons of non-metallic reserves. Copper dominates the metallic reserves, comprising 4.8 billion tons or 67.5% of the total. Limestone, the largest non-metallic mineral deposit reported, accounts for 57% of the total non-metallic reserves, or 29 billion metric tons, followed by marble that accounts for 16.7% or 8.5 billion metric tons. Gold can be found throughout the country in the form of lode or placer deposit. The principal goldproducing districts are Baguio, Paracale (Camarines Norte), Masbate, Surigao, and Masara (Davao del Norte). Silver is a by-product of copper and gold mining. The bulk of chromite deposits in the country are found in Zambales Province and Dinagat Island, off northeastern Mindanao. The chromite deposit in Coto, Zambales is believed to be the largest known deposit of refractory (or ability of a material to resist high temperatures) chromite in the whole world. The country is also greatly endowed with nickel-rich deposits of laterites (residual products of rock decay in red color with high content in oxides of iron and hydroxide of aluminum) which are currently the source of its nickel export. The vast laterite deposits of Surigao in northeastern Mindanao were first reported in 1912, but were not exploited until 1975. Other metallic mineral deposits such as platinum, iron, manganese, lead, zinc, molybdenum, mercury, and aluminum also exist in the Philippines, dispersed throughout favorable geological terrain. Non-metallic mineral deposits such as coal, fertilizer, salt, sand and gravel, marble, clay, limestone, feldspar, dolomite, magnesite, phosphate rock, guano, sulfur, industrial gemstone and decorative minerals also abound in the country. These are major important sources of raw materials for construction, agriculture, and power generation. Gunning for Gold in Mining On cursory blush, from R. A. 7942 or Mining Act of 1995 to President Arroyos Executive Order 270 and Minerals Action Plan (MAP) the government has been doggedly pursuing for the full liberalization of the countrys mining sector. The patent premise, flaunted always by the government, is to usher in foreign investments and thereby purportedly gain economic benefits, especially for the Arroyo administration which has been plagued with fiscal woes, ballooning debts, widening budget deficits, falling tax collection, and the wrenching economic whammy due to unabated sky-high oil prices, not to mention the worsening credibility crisis. However, a candid reckoning cannot simply escape some doubts about the governments calibrated policy on mining more than its touted economic intentions, and may as well skip the far more plausible reasons or factors attendant to the unperturbed dash for mining liberalization. Authored by then Senator Gloria Macapagal-Arroyo, the Mining Act of 1995 or R..A. 7942 was signed into law by then President Fidel V. Ramos on March 3, 1995, allowing the government to enter into Financial or Technical Assistance Agreement (FTAAs) with mining companies in the extraction of mineral resources. Verily, back then, the Ramos administration was not as plagued with debilitating fiscal or economic woes as with the current Arroyo government. Hence, more than the domestic economic condition, the transnational pressure of globalization precipitated R.A. 7942. For the World Bank, which pushed for the passage of the law, the Philippines should export its natural resources through foreign companies to be able to pay its debts. Consistently, thus, in its Country Assistance Strategy for the Philippines 2003-2005, the World Bank, not stopping short of urging the Philippines government to aggressively explore the

export potential of the mining sector, categorically requires even more the government to resolve obstacles to 100 percent foreign ownership of mines. Evidently, however, the Constitutional provision regulating foreign ownership of Philippine-based businesses at 40% maximum collides with the World Bank requisite. Not surprisingly so, the rather compatible Cha-cha duo, Fidel Ramos and Gloria Macapagal-Arroyo, have relentlessly been dancing to the tune of Charter changetheir grand acquiescence to the prescriptions of multilateral aid agencies that dictate the liberalization of vital industries. Notwithstanding the goal of economic development through mining investments of R.A. 7942 and the hegemonic pressures by World Bank and WTO, the supreme court, in its erstwhile celebrated ruling of January 27, 2004, upheld the Constitution and struck down several provisions of 1995 Mining Act or R.A. 7942 and DAO (Implementing rules and Regulations of R.A. 7942 that allow the execution of service contracts with foreign-owned corporations for the exploration, development, exploitation and use of the countrys mineral resources). In its decision, the Supreme Court ruled that foreign-led mining is tantamount to foreign ownership and control of the countrys resources and is violative of the Constitution. The ruling magnified the lines between those who support mining and those who oppose it. As civil society and pro-environment groups celebrated with relief, the mining industry and the government fumed. The industry vilified the Supreme Court for its excessive meddling in economic matters. The government lamented over the purported loss of investment potential in mining. Unbudged by the Supreme Court ruling, President Arroyo remained even more resolved to rescue the mining export industrythe one sector she has promoted for years. Apart from ordering the Solicitor General to contest the supreme Court decision, and her administration meanwhile besieged by crippling fiscal woes and budget deficits, Mrs. Arroyo desperately sought for investments in the mining sectoreven as earlier in late 2003 she had already proven she can walk the talk by declaring a policy shift on mining from tolerance to full promotionby yet issuing Executive Order 270 or the national Policy agenda on Revitalizing Mining in the Philippines on January 2004, which delivered the impetus to open new mines, expand existing ones and resurrect others that have died. Consonant to E.O. 270, the government crafted the Minerals Action Plan for minerals development providing the strategic directions for the exploration, development and utilization of the countrys mineral resources. The MAP is basically a policy document taken entirely from the Mining Act, but only added few provisions on social and environmental protection to make it appear that large-scale mining can also be responsible and sustainable. Finally, President Arroyo completely slugged it out with her resolute propensity on mining, or her gunning for gold, when last December 2004 the Supreme Court, apparently convinced of the mining industrys arguments of economic benefits for the majority, delivered the final blow by reversing its previous ruling and upholding the 1995 Mining Act. The Supreme Court decision eliminated the last obstacle, save alone the Constitution, to the full liberalization of the countrys mining sector. Conspicuously, the governments calibrated policy on mining revitalization are both premised on the same argumentto cough up investments purportedly beneficial to the countrys ailing economy. Even as early as February this year the Arroyo government had claimed that the countrys total mineral Bagacay (Samar) post-mining legacy: deforestation, desertification, water potential worth $840 billion is enough to wipe off the resource degradation, crop damages, countrys debts. Figures culled from the Mines and Geosciences Bureau of the Department of Environment siltation, and what-ought-not. and Natural Resources (DENR) reveal that the government hopes to generate in the next ten years some $6-$7 billion potential investments, $800 million exports, $490 million tax revenues (if without incentives), aside from providing more than 200,000 jobs. Already, as of late, the government reported that mining investments in January to September 2005 soared to $345 million, poured in by 23 mining firms led by Coral Bay (Palawan Nickel project), Lafayette Philippines Inc. (Rapu-Rapu Polymetalliic Project), Australasian Philippines Mining Inc. (Dipidio Copper-Gold Project), TVI Resources (Canatuan Gold Project), Lepanto Consolidated Mining Co. (Far East Gold Project), Filmenera Resources (Masbate Gold Project), and Eagle Cement Corp. (Akle Cement Project). Scarring Experience: Social-Environmental Costs and Corollary Problems No denying, the countrys experience as the worlds 5th most mineralized country has been more debilitating, if scarring, than not. Despite the conspicuously thundering cases of mining firms violating environmental standardsnot to exclude transgressing indigenous peoples rights and culture, and labor regulationswhich have wrought destruction and other irreversible consequences to the environment and the local communities, the government has remained unperturbed, if not unbudged, and more so has even calibrated its revitalizations agenda for mining to bag for more investments. The mining process has always been equated with environmental destructiondeforestation, slope destabilization, soil erosion, desertification, water resource degradation, defertilization, crop damages,

siltation, alteration of terrain and sea-bottom topography, increased water turbidity and air pollution. Mining operations in the Philippines have damaged forests, agricultural lands, river systems and marine resources, displacing thousands of indigenous peoples and upland dwellers, peasants and fisherfolk. It is interesting to note that according to a recent World Bank study called Philippine Environment Monitor 2004Assessing Progress, the Philippines loses over 2 billion dollars annually due to environmental degradation. The World Bank estimate only includes damage from water pollution, mismanagement of fishery resources, and air pollution in four urban centersexcluding yet the social costs and the loss of quality of life. Moreover, according to the World Bank, landslides and flashfloods cost the country roughly 15 billion pesos annually. Mining operations, which require clearing acres of forests, contribute to such catastrophes. Theres no arguing, furthermore, that more than the social and ecological costs, mining undeniably whips up an irreversible depletion or exhaustion of the countrys mineral wealth. Once minerals are unearthed they can only be replenished in another million years, so say geologists. The February 8, 2005 statement of the Ecumenical Bishops Forum aptly expressed, Consider (too), that what has been mined and what has been destroyed to allow for mining can never be restored. A Manila Times columnist likewise echoes a similar sentiment, While mining sites can be rehabilitated there is no way of restoring a mountain to its pre-mining glory. The pastoral statement of the Episcopal commission on Social Action, Justice and Peace of the Catholic Bishops Conference of the Philippines issued last March 10 comprehensively identifies the harsh consequences, or scarring experience, of mining in the country, Mining has given the Philippines a scarring experience: mine tailings flooding villages and killing individuals, depletion of natural resources, ill effects on health, fabricated social acceptability, polarization among locals, unjust labor practices, delays in or non-payment of taxes due the local government, abandoned mines that continue to harm the environment and inhabitants long after operations have ceased, displacement of indigenous communities, unfulfilled promises of community development, militarization, intimidation and threats. In particular, not only a few local communities and provinces in the country are indeed afflicted with such scarring experience caused by mining. In 1996, the Marcopper Mining Corporation (owned by Canadian Placer Dome) in Marinduque spilled four million tons of waste that killed the nearby Boac River. In Benguet, mill outlet and mine tailings dam of the Victoria Gold Project of Lepanto Consiolidated Mining Co. reportedly yielded lead, mercury and cyanide levels above the maximum safety levels set by the DENR and the US Environmental Protection Agency, according to a recent independent study. Philex Mining Corporation in Tublay, Benguet, according to independent think-tank IBON Foundation, abandoned its pit mines without rehabilitating the water sources in the area, and also reportedly dumped mine wastes into the Bued River, endangering the lives, livelihood and property of the residents. In Samar, the Catholic hierarchy of the Diocese of Borongan, in its pastoral statement, have assailed the mining activities in the province, The dead river of Taft, Eastern Samar, the dying environs around Manicani Island and some parts of Homonhon Island cry out an appeal to us that mining operations be stopped and shut down altogether. Not only the scarring experience of environmental destruction but, of equal concern too, are the strident cases of rights violations, militarization, intimidation and threats. In Canatuan, Siocon, Zamboanga del Norte where the Canadian firm Toronto Ventures Inc. (TVI) operates the Canatuan Gold Project, the local Subanon tribes have complained of deceptive tactics used by the company to avail of their consent, as well as harassment from military and paramilitary elements assigned to guard the TVI premises. The Bishop of Dipolog in Zamboanga del Norte, Bishop Jose Manguiran, in a statement published in August 2005 issue of IMPACT, deplored the affliction, or scarring experience, of the Subanon people, The operations of the company have already caused grave environmental damage to an important watershed. The mountain is also a sacred place to the Subanon and it has been violated. The Subanon have suffered abuses at the hands of the company guards. Their community has been disrupted and divided against itself to serve the interests of the company. A group of respected elders of the Subanon have condemned efforts to falsely project some supporters of the company as the leaders of the community while the real traditional leader of the local Subanon, Timuay Jose Anoy, is not even free to live in his home or enter his ancestral land. There is also the corollary problem of fabricated social acceptability which has likewise bred other problematic consequences as division or polarization among local stakeholders, bribery, corruption, trickery or deceptive procedures, intimidation and threats. Free, Prior and Informed Consent (FPIC) of the local community and other stakeholders is a mandatory requirement included in the preparation and compliance of the Environmental Impact Statement (EIS) to ascertain the social acceptability of the mining project in mine sites. The FPIC is acquired or duly complied through a scooping process, under which a supposedly thorough consultation among various local stakeholdersthe local community or indigenous peoples, local government units, Church and non-government organizations, mining project

proponent/s, and the DENR. During the community consultation, the mining project proponent/s and their consultant/s are required, according to government procedural standards, to present the mining projects mitigating measures detailing the proponents action plan or strategies to lessen or combat the adverse impactsocial, environmental, and othersof mining operation. These mitigating measures, and along with the FPIC document are supposedly included in the Environmental Impact Assessment (EIA) required for submission to the DENR to secure the appropriate mining permits. On first blush, the governments mandated standards required for mining operations appear to be in place. But, gleaned from actual experience, according to NGOs and Marcopper Mining Corporation spilled four peoples organizations, the situation in the country million tons of waste that killed nearby contrives more than meets the eye. Obviously, mining project proponents or investors, flanked by their claque Boac River in Marinduque. of local accomplicesfrom the local government units or from the DENRare simply more cunning, if unscrupulous, than the local indigenous people and residents. Mining firms, according to NGOs and peoples organizations, often resort to bribery, trickery, and intimidation in order to obtain the required FPIC. The Environmental Impact Assessment (EIA) document that is submitted by the mining project proponent does not at all show any plausible proof or document reflecting the free, prior and informed consent of the local residents except their signatures in the attendance sheet from the community consultative meeting. Joyce Palacol, Ecology Program Officer of CBCPs National Secretariat for Social Action (NASSA), aptly affirms, I have reviewed not only a few EIA documents and I have never seen a single document showing any proof of acceptability except their signatures in the attendance sheet. In reality, obtaining the consent of the stakeholders through the scooping process is not as effective as it is. The provisions provided for in the EIS (Environmental Impact Statement) system has been circumvented through bribery, deception and intimidation. Project proponent normally conducts consultative meetings with stakeholders and the attendance sheet obtained from such meetings is used as attachment to the EIA document supposedly reflecting the consent. Affixing signature on the attendance sheet however does not reflect the agreement or disagreement of the individual participants, Palacol added. Worse yet, even signatures in the attendance sheet are illicitly obtained, in some cases, through bribery, trickery, or threat, according to an independent pro-environment group. The situation which is the current norm in the Philippines is that virtually in all cases, mining companies can and do claim to have secured FPIC, while affected communities, or at the least, significant proportions of the affected communities, deny ever having given consent that is free, prior or properly informed and in most instances they assert that at least one of the those qualities has been missing. Or they assert that signatures have been gained only by threat, trickery or bribery, the group added. In some cases, according to NGOs and peoples organizations, the object of bribery are employees at the MGB (Mines and Geo-sciences Bureau) and EMB (Environmental Management Bureau) of the DENR, or government officials from the local government units. There are cases when the proponent tries to influence through illicit or underground means some members of DENRs screening committee which reviews the Environmental Impact Assessment (EIA) to ensure its approval. The local government units (LGUs) too are not immune from bribes as they are likewise principal stakeholders in the processing of mining permits. There are even cases where the proponent would put up or create a separate bogus NGO who will support their project, NASSAs Joyce Palacol revealed. Not even tribal leaders are exempt from the bribes and scheming overtures of mining companies. Tribal leaders sometimes become tribal dealers. Hoodwinked by wily proponents, they are lured, bribed or bought in exchange for their consent for the project, said Palacol. Moreover, mitigating measures contained in the Environmental Impact Assessment (EIA) document submitted by mining companies have been more useful on paper than in practice. NASSAs Joyce Palacol explains, Based from past records and on-going projects, mitigating measures embodied in the submitted EIA have proven to be failures. Safeguards stipulated have proven to be ineffective and needs to be reassessed in the light of past experiences. Concrete examples of these are Marinduque, Sipalay and Surigao del Norte mining projects. The Ecumenical Bishops Forum in their statement likewise voiced a similar sentiment, Despite what these laws say about safety nets, it is our experience that foreign mining firms pay lip service to the dignity and well-being of the people especially those directly affected by such mining activities. Lastly the problematic issue of rehabilitation in post-mining sites and communities is worth discussing. Experience has it that local communities have suffered the grim consequencesecological, social, and economicafter mining companies have abandoned or terminated with operations leaving the sites unrehabilitated as in such cases of Benguet Corporation in Itogon, Benguet; of Atlas Consolidated Mining Development Corporation in Toledo City, Cebu; of Manila Mining Corporation in Placer, Surigao del Norte; and not excluding, of course, the scarring legacy of Marcopper in Marinduque.

Curiously, according to independent think-tank IBON Foundation, the government has kept mum on the issue of rehabilitation despite its calibrated stance on mining. Filipinos are left to deal with long-term effects of mine tailings, contaminated water systems and denuded forest lands. (But) it is ironic how the government wants to revitalize mining by foreign investments and yet leave the issue of mine rehabilitation unattended. Worse yet, both mining and government officials have failed to account for their responsibilities, while the people pay for the costs, says IBON research director Antonio Tujan. Ironically still, IBON reports that even mining firms that have notorious records in terms of environmental and social damages like Marcopper, Toronto Ventures Inc. (TVI), Lepanto, and Philex are yet among those endorsed by President Arroyo to be accorded with an array of incentives as Investment Priority Projects (IPPs) under the governments revitalized mining program. Nature Is Groaning: Churchs Stance and Teachings While the Arroyo administration has set its sight for gold, or economic deliverance, in mining, the Church cannot simply close its eyes and remain blind to the adverse social, ecological, economic, cultural, and moral implications, problems and consequences of mining. The pastoral statement, Nature is Groaning: A Statement on the Revitalization of Mining in the Philippines, of the Episcopal commission on Social Action, Justice and Peace of the Catholic Bishops Conference of the Philippines clearly articulates in detail the Churchs stance and teachings on the mining mania: Responsible Stewardship (Sollicitudo Rei Socialis #34): As guardians of Gods creation, it is our collective duty to ensure Earths well being. Mining tyrannizes nature making it inhospitable to life. As responsible stewards of Gods creation, we must pay attention to the consequences of such actions on the present and future generations. Universal Destination of Goods (Gaudium et Spes #69): After developing and nurturing it, everyone must be able to enjoy the fruits of the earth. But, truth is, mining does not benefit everyone save the foreign mining companies alone. Integrity of Creation (Sollicitudo Rei Socialiis #34): Nature, with man in it, is an ordered system governed by intricate principles of interrelatedness and interconnectedness. Large-scale destruction caused by mining results in massive disturbance of the system, with disastrous effects on all life forms that the system supports, ultimately leading to the defeat of ecological sustainability. Human dignity (Sollicitudo Rei Socialis #47): Mining companies exploit poor locals who are willing to work for low pay under hazardous conditions. Labor unions are suppressed. Some mining operations encroach on ancestral domains. Mining displaces indigenous communities making them lose not only their habitats but also their culture. Preferential Option for the Poor (Rerum Novarum #29): The poor suffer when mining operations, requiring heavy volumes of water, deplete the precious resource; when they pollute rivers, springs and brooks; when they destroy watersheds, obliterate farms and poison fishing grounds. The poor end up poorer from economic stagnation when mining operations cease. Subsidiarity and Peoples Participation (Mater et Magistra #55 & Pacem in Terris #26): Locals are in the best position to decide on development strategies that best respond to their needs and conditions. Solution or Illusion? Indeed, albeit the irreversible depletion or exhaustion of the countrys mineral wealth, destruction of the environment, displacement of indigenous communities, and other adverse corollary consequences, the Arroyo government is yet hell-bent on pinning its hopes for Bulawan Gold project's reforested area in gold, if not economic jackpot, in mining. With the Sipalay, Negros Occidental. Supreme Courts reversal ruling last year upholding the constitutionality of the Mining Act, theres no hampering at all for the Arroyo administration to slug it out in enforcing the MAP, its calibrated revitalized mining agenda, brandishing the purported concept of environmentally, socially, economically sustainable and responsible mining. Obviously, the underlying reason proffered by the government in pursuing its rather pro-TNC mining policy is not at all difficult to comprehend: to cash in on mining investmentsor extract what former NEDA Secretary Romulo Neri estimates is some $840 billion worth of mineral wealth lying undergroundto save the countrys floundering economy and thereby likewise generate more jobs or, in a word, a solution to the debilitating economic crisis. But the governments so-called calibrated agenda on environmentally, socially, economically sustainable and responsible mining, according to NGOs and peoples organizations, may yet hew to be a blimp and has more leaks than the Titanic. President Arroyos unswerving hope, if dream, of attaining economic salvation from mining may just go the way of all flash. Illusory, say NGOs and peoples organizations of Arroyos economic miracle in mining, for more reasons than one. One, the countrys long history of mining has in no way brought the Philippines any further to an economic boom, save the long-term social and environmental ill effects after the bust of several mine sites. Noel Sto. Domingo of CBCP-NASSA exactly puts it, The present economic conditions in Itogon, Benguet and Placer,

Surigao del Norte mirror the myth that mining industry is a long-lasting source of income for the community and the local government. This is likewise corroborated by the pastoral statement of the Catholic Bishops of Northern Luzon, Our experience in Northern Luzon, however, disproves what government is saying. Benguet, host to a number of mining companies over several decades still feel the brunt of poverty. Another, the provisions of the Mining Act and Minerals Action Plan (MAP)like, among others, co-financing schemes with the government or with local companies, 100% foreign ownership system, and a wide array of tax incentivesrepudiate the governments purported agenda of ushering in profits and economic benefits for the country. Independent think-tank IBON Foundation executive director Rosario Bella Guzman explains, There is no potential of investments since mining transnational corporations (TNCs) usually enter into co-financing schemes with the government or with local companies, or avail of loans from local banks aside from multilateral agencies. Government even co-assumes co-financing whenever exploration fails. The IBON director also wonders why government officials get excited about export receipts from a sector that is under a 100% foreign ownership system where mining TNCs are allowed to repatriate their profits fully. And even export earning, Guzman adds, are also cancelled by the huge costs of importation of equipment and inputs, which foreign mining TNCs also produce. Original investments are petty compared to the superprofits that mining TNCs repatriate from the economy, say Guzman. Guzman adds that mining TNCs are already raking in huge profits through speculation, where they gamble on the mere potential of mine sites and make money without actually drilling a hole. With generally speculative investments, the government is left with nothing, Guzman said. Moreover, how can the government earn from mining when it is hell-bent on granting mining companies a wide array of tax incentives which include6 years tax holidays, 3 years tax holidays for expansion projects, 10 years exemption from export taxes and other fees, and exemption from corporate income tax? The country is not even assured of additional tax revenues since the government can only collect taxes from companies only after the company has earned its capital, which can take at least 7 yearsenough time for mining firms to underdeclare their profits or simply pull out and claim unstable investment climate or other reasons. Simply put, the governments mining policy allows firms to fully repatriate their earnings, including any excess capital, in its first decade of operation and even beyond, IBON said. Lastly, that the governments revitalized mining program will generate more jobs cannot be gauged as substantial enough as to provide long-term benefits. Apart from taking advantage on the countrys cheap labor, mining companies can only accommodate non-technical workers on a short duration during the construction or pre-operational phase. To a certain degree, yes, mining firms may need local workers, but only for a short period of timethat is, only during the construction phase. After that, workers for the technical positions, only around one or two hundred of them and who are not from the local area, are left behind for the operation and commercial production, Palacol of NASSA said. Yes, indeed, the Philippines undeniably abound in mineral wealthsecond in the world for gold and third for copper. For which reason, the country has unwittingly gained the reputation being the worlds 5th most mineralized country, borne out certainly not of its collective free, prior and informed consent but of globalized economic forces, the World Bank, mining TNCs, WTOand yes, not to exclude too of the profligate whims and vested interests of the countrys high and mighty. Whilst being the worlds 5th most mineralized, the country is yet stuck in damning poverty. Clearly enough, for more reasons than one, the Arroyo governments revitalized mining policy contrives not to benefit the country but the mining TNCsand far from delivering the promised economic salvation, it plainly smacks more of an illusion than not. Wherefore, as such, it appropriately behooves for the national leadership, in the supreme interest of national patrimony, to undertake the logical imperatives: to re-examine its revitalized mining policy and other existing legislative, judicial and executive decisions and policies (R.A. 7942, E.O. 270, Minerals Action Plan) on mining as whether they do stand to benefit the greatest interest of the greater number of people, and; to pursue a genuine sustainable and responsible mining policy and program consonant to the tenets of national patrimony in the extraction and use of natural resources where people themselves are the ones directing its development and benefiting from it. Whilst, again, scarring is the countrys experience in mining, and the governments gunning for gold in mining is deemed but illusory. What reason else is there for the government to stick to its revitalized mining agenda? PFII/2007/WS.3/7 Original: English

UNITED NATIONS

NATIONS UNIES

DEPARTMENT OF ECONOMIC AND SOCIAL AFFAIRS Division for Social Policy and Development Co-organizers Secretariat of the Permanent Forum on Indigenous Issues Government of Khabarovsk Krai and the Russian Association of Indigenous Peoples of the North (RAIPON) INTERNATIONAL EXPERT GROUP MEETING ON INDIGENOUS PEOPLES AND PROTECTION OF THE ENVIRONMENT

KHABAROVSK, RUSSIAN FEDERATION AUGUST 27.-29, 2007

Case Study on the Impacts of Mining and Dams on the Environment and Indigenous Peoples in Benguet, Cordillera, Philippines

Paper by CORDILLERA PEOPLES ALLIANCE

Background Land and People of Benguet The Cordillera region in Northern Luzon, Philippines, is homeland to more than 1 million indigenous peoples belonging to at least 8 distinct ethnic groups collectively known as Igorots. Two of these ethnic groups, the Ibaloy and the Kankanaey, are found in the province of Benguet, which occupies 265,538 hectares of the Cordillera regions total land area of 1.8 million hectares. The Ibaloy people live in the southeastern portion, occupying 8 of the provinces 13 towns. The Kankanaey, meanwhile dominate the northeast areas of Benguet. Benguets fertile land along the rivers and gold ore in the mountains saw the emergence of distinct villages engaged in various economic activities. Gold mining communities rose in the gold-rich areas in Itogon, while gold-trading villages were established along strategic mountain passes and trails. Ricegrowing villages emerged in the river valleys. Swidden farming combined with gold panning in the streams and rivers. Land ownership among the Ibaloy and Kankanaey is traditionally recognized by prior occupation, investment of labor and permanent improvements on the land, specifically irrigation systems and retaining stonewalls of the ricefields. The community shares access rights to the forests, rivers, and creeks, and the fruits of these lands and waters are open to those who gathered them.1 Entry of mining, construction of dams

Jacqueline K. Carino. Case Study. WCD. 2000

Mining has a long history in the Philippines. Small scale mining has been practiced by Philippine peoples for at least ten centuries, and large scale mining by foreign as well as Filipino firms for about a century. Little is known, though, about mining prior to the coming of the Spanish colonialists in the 16th century.2 Corporate mining in Benguet started during the Spanish colonial period when Spanish businessmen secured a mining concession from the Igorots in Mancayan and launched the operations of the Sociedad Minero-Metalurgica Cantabro-Filipina de Mancayan in 1856. This mine eventually closed down. When the Americans arrived in the 1900s, they entered into contracts with local families to file legal claims to mineral-bearing land. These claims were later used by American prospectors to create the mining companies that would dominate the mining industry in Benguet. These were Benguet Corporation, Atok Big Wedge, Itogon-Suyoc Mines and Lepanto Consolidated.3 In the 1950s, the Agno River in Benguet was tapped as a source of hydropower. The first dam to be built along the Agno River was the Ambuklao Dam, followed by the Binga Dam. Twelve (12) other run-of-river mini-hydros, all privately operated, were also built in other parts of Benguet. In the 1980s, widespread peoples resistance forced the Marcos government and the World Bank to give up its plans for major dam projects in the region. However, the Ramos government took advantage of the energy crisis in the 1990s and initiated with Japanese funding, the construction of the San Roque Multipurpose Project. The San Roque dam is the third dam to be built along the Agno River, located in the boundary between Benguet and Pangasinan province of Central Luzon.4 Mining Operations, Dams and Impacts on the Indigenous Peoples of Benguet Mines and Dams Present in Benguet The province of Benguet has hosted 14 mining companies since corporate mining started in 1903. Some of these mines have closed down while others have continued. Presently operating in Benguet are two large mines using high technology for large-scale mineral extraction. These are the Lepanto Consolidated Mining Company (operating for 70 years) and the Philex Mining Corporation (operating since 1955). Benguet Corporation, the oldest mining company in the country, abandoned its operations in 1997 after mining for almost a century. The abandoned open pit mine site, underground tunnels, waste dump sites, mill, diversion tunnels and tailings dams in Itogon still remain today. The company now has ongoing contract mining arrangements with small scale miners. Itogon-Suyoc mines closed down in 1997, but is now negotiating with foreign investors to reopen its mines. In addition, new mining explorations and applications are now coming into other parts of Benguet with renewed efforts by the government to invite foreign investments. These applications of various kinds, numbering 138, are found in all 13 municipalities of the province covering 147,618.9 hectares or 55.7% of the provinces total land area. This figure is aside from the area already covered by past and existing mines. Thus we have a situation where most of the total land area of Benguet is covered by past, ongoing and future mining operations. Accompanying mining operations is the construction of tailings dams needed to contain the mine wastes. These tailings dams were built across the river beds in various parts of Benguet. However, most tailings dams are not leak proof and have not been strong enough to withstand torrential currents during the typhoon season, and the major earthquake that rocked Northern Luzon in 1990. Through the years, tailings dams in Benguet have proved incapable of containing the volume of tailings that came from the mills. Time and again, these tailings have breached their dams. Benguet Corporation constructed 5 tailings dams. Lepanto has 5 tailings dams, 2 of which collapsed. Philex has 3 tailings dams, 2 of which collapsed in 1992 and 1994. In 2001, tailings breached another Philex dam. Itogon-Suyoc has 1 tailings dam that collapsed in 1994. Thus we have a situation where burst, broken, weak and leaking tailings dams dot the major river systems of the province the Abra River, Agno River, Antamok River and Bued River. Another concern is the series of three mega hydroelectric dams built along the Agno River - the Ambuklao, Binga and San Roque dams that block the river flow to generate electricity. The power generated by these dams has gone to supply the power needs of the mining companies as well as the overall power demand of the Luzon Grid. However, Ambuklao and Binga dams are dying and no longer fully operational, crippled by the voluminous silt that has accumulated in the reservoirs, upstream and beyond. The San Roque dam, which has the generating capacity of 345 megawatts, is now generating only 18 megawatts.
2 3

APIT Tako. Mining in Philippine History APIT Tako. Mining in Philippine History 4 Cordillera Peoples Alliance. December 2002. Cordillera Hydropower Projects and the Indigenous Peoples

Impacts of Mines and Dams The combination of mines and dams in Benguet has had devastating impacts on the environment and on the Kankanaey and Ibaloy people in the province. These impacts have not only caused serious environmental destruction and suffering for the affected communities, but have also violated the collective rights of the indigenous peoples. As proven by the experience of the Benguet indigenous peoples, largescale corporate mining and dams destroy, pollute, disrupt agricultural economies, and displace indigenous peoples. Land destruction, subsidence and water loss Corporate mining in Benguet is done by surface mining as well as underground tunneling and block caving. Also significant are other surface excavations by the mining companies for the installation of facilities, such as portals for deep mining, lumber yards, ore trains, mills, tailings ponds, power houses, mine administration offices, and employee housing.5 Open pit mining is the most destructive as it requires removing whole mountains and excavation of deep pits. Generally, open pits need to be very big sometimes more than 2.5 kilometres long. In order to dig these giant holes, huge amounts of earth need to be moved, forests cleared, drainage systems diverted, and large amounts of dust let loose. According to the Benguet Corporation, Any open-pit mining operation, by the very nature of its method, would necessarily strip away the top soil and vegetation of the land.6 Sure enough, open-pit mining in Itogon by Benguet Corporation has removed whole mountains and entire villages from the land surface. After exhausting the gold ore, the open pit in Itogon is now abandoned as the company has shifted to other economic ventures like water privatization. Not known to many, Philex also practices open pit mining in Camp 3, Tuba, Benguet, presently affecting 98 hectares of land. The affected area is continuously expanding as the open pit mine operations of Philex continue. The land damage has displaced homes and communities and caused the people to lose their lands. Meanwhile, underground block-caving operations by Philex and Lepanto have induced surface subsidence and ground collapse. In Mankayan, where Lepanto is operating, the land surface in populated areas is sinking, causing damage to buildings, farms and property. In July 1999, Pablo Gomez, a villager in Mankayan, was killed when he was suddenly swept away in a landslide along with the Colalo Primary School building. 71 million cubic feet of earth gave way beneath him, covering and destroying 14 hectares of farming land.7 Aside from land subsidence, the water tables have also subsided as deep mining tunnels and drainage tunnels disrupt groundwater paths. Tunneling often leads to a long-term lowering of the water table. In 1937, a disaster hit Gumatdang, Itogons oldest rice-producing village. Atok-Big Wedge drove in two gigantic tunnels on opposite sides of the village, immediately draining the water from its most abundant irrigation sources. In 1962, Benguet Corporation drove in another drainage tunnel that stretched between its Kelly mine in Gumatdang and its mines in Antamok. Instead of just draining water from the mines, the tunnel drained the water from a major irrigation source, drying up ricefields. Ventilation shafts have also drawn water away from surface streams, irrigation canals, and pondfields. In addition, the felling of timber to shore up underground tunnels has denuded surrounding watersheds, aggravating water loss.8 Not only does mining cause water subsidence, it also deprives farming communities of much-needed water. The industry requires large volumes of water for mining, milling and waste disposal. Mining companies have privatized numerous natural water sources in Itogon and Mankayan for the purpose. Now, the people in many mining-affected communities have to buy water for drinking and domestic use from outside sources through water delivery trucks, or by lining up for hours in the few remaining water sources to fill up a gallon of water. Pollution of Water and Soil
5 6

APITTAKO Christian Aid and PIPLinks. Breaking Promises, making profits. Mining in the Philippines.UK. Dec. 2004 7 CA and PIPLinks 8 APIT TAKO. Mining In Philippine History: Focus On The Cordillera Experience. Paper presented to the United Nations Economic and Social Councils Commission on Human Rights during its Transnational Extractive Industries Review. December 2001 and revised March 2002.

Open-pit and underground bulk mining by Philex in Tuba and Lepanto in Mankayan generate ore and tailings at a rate of up to 2,500 metric tons per mine per day.9 Toxic mine tailings are usually impounded in tailings dams. However, when pressure in the tailings dams builds up, especially during times of heavy rainfall, the mining companies drain their tailings dams of water or face the risk of having the dams burst or collapse. In either case, the tailings eventually find their way out, polluting the water and silting up the rivers and adjacent lands. People of Mankayan remember the Abra River before the mine. It was deep and narrow, just 5 meters wide, full of fish and surrounded by verdant rice paddies. Now there is a wide gorge of barren land on either side of the polluted river. Fruit trees and animals have died from the poisoned water and rice crops are stunted. 10 When Lepanto started operations in 1936, the company dumped mine tailings and waste straight into the river. It was only in the 1960s that the first tailings dam was built. The dam was abandoned after less than 10 years and the land became unsuitable for agriculture. Tailings dam 2 was constructed in the 1970s. Its collapse caused the contamination of nearby ricefields. Tailings Dam 3 and a diversion tunnel gave way in 1986 during a strong typhoon. Another spillway collapsed after a typhoon in 1993. The spilled tailings encroached on riverbanks and destroyed ricefields downstream. They also caused the riverbed to rise and the polluted water to backflow into other tributaries of the Abra River. 11 An Environmental Investigative Mission (EIM) in September 2002 indictaed that heavy metal content (lead, cadmium and copper) was elevated in the soil and waters downstream from the Lepanto mine. Water samples from the Abra River were found to have low level pH (acidic) capable of solubilizing heavy metals. One resident who used gravel taken from the Mankayan River for construction of his house reported that the steel bar reinforcements were corroded after a few months. The same EIM report revealed dissolved oxygen readings at the CIP Mill Outlet and at Tailings Dam 5A to be below 2 mg/L. Aquatic life cannot survive in conditions where dissolved oxygen is below 2 mg/L. Sulfuric acid is also believed to be the cause of the rotten eggs smell that residents report when mine tailings are released into the Mankayan River during heavy rainfall. Another concern is the high amount of Total Suspended Solids (TSS) and Total Dissolved Solids (TDS) found at various points of the Mankayan River downstream from Tailings Dam 5A.12 Abandoned mine sites like Benguet Corporation and Itogon-Suyoc Mines in Itogon have long-term damaging impacts on rivers and their surrounding fields because of the build up of acidic mine water. Acid mine drainage comes from both surface and underground mine workings, waste rock, tailings piles and tailings ponds.13 Pollution of this kind can continue long after a mine is closed or abandoned, and the water that leaches into the ecosystem is frequently acidic, killing rivers and posing health risks to local communities.14 Siltation Siltation of rivers is a serious problem in Benguet resulting from mining operations and dam construction. The Ambuklao and Binga dams are stark examples of the detrimental impacts of siltation and megadams on rivers. The steadily rising level of silt in the dam reservoirs and along the Agno River upstream of the dams is covering a wider and wider area around the dams and continues to destroy more and more rice fields. In the case of the Ambuklao dam, the communities of Bangao and Balacbac were located far above the predicted water level of the dam and 17 kilometers away from the predicted edge of the reservoir. These two communities are now inundated because of the rising water level and accumulation of silt upstream along the Agno River. Government authorities dismiss the increasing siltation as a natural phenomenon. However, the Ibaloy people know that the dams are the real culprit. The farmlands and communities were never affected by silt before the dams were built despite storms and earthquakes. The dams blocked the free flow of water and silt down to the lowlands. Silt deposits built up in the dam reservoir and blocked oncoming silt that receded backwards upstream, swamping and inundating all farmlands and communities within reach.15
9

APIT Tako. CA and PIPLinks. 11 Save the Abra River Movement (STARM). What is Happening to the Abra River? A Primer on the Effects of Corporate Mining on the Abra River System. September 2003. 12 STARM 13 STARM 14 CA and PIPLinks
10

In the case of the Philex, a tailings dam collapsed in 1992, releasing some 80 million tons of tailings and causing heavy siltation in the irrigation system downstream. The company paid Php5 million to the affected farmers. Again, during a typhoon in 2001, another tailings dam of Philex collapsed. Ricefields in San Manuel and Binalonan, Pangasinan, were buried in toxic silt a meter deep. This time, Philex refused to admit responsibility for the disaster putting the blame on nature.16 In the case of Lepanto, the downstream impact of tailings disposal is that along a 25-kilometer stretch of the Abra River, some 465 hectares of riceland have been washed out.17 Further, Lepantos claim that Tailings Dam 5A is actually helping to contain siltation is deceiving. The high level of TDS and TSS from the CIP Mill Outlet up to Tailings Dam 5A indicates that the silt originates from company operations and is not due to natural siltation.18 Serious health problems due to water, soil and air pollution Contamination of water, soil and air contributes to increased toxic build-up in peoples bodies. Asthma and other respiratory problems often affect local communities as well as mine workers. When peoples health deteriorates, their ability to work and earn money is reduced even further. The old and the young are particularly vulnerable. 19 In 1985, a copper ore dryer was installed by Lepanto. The copper dryer affected the 3 barangays of Paco, Colalo and Cabiten in Mankayan. Local residents complained of abnormal withering of crops, sickness and death of domestic animals and high incidence of respiratory ailments. The company was forced to close down the dryer in the face of peoples opposition.20 The most common symptoms felt by residents of Mankayan who have inhaled chemical fumes emanating from the mine are: headache, dizziness, cough, chest pain, nasal and eye irritation. Other symptoms reported are itching of the skin, rashes and diarrhea. Some residents report that wounds take longer to heal when exposed to the water of the Abra River. Because of past adverse reactions, people avoid contact with the river water. They do not allow children to bathe in the river. Nor do they let their animals drink from it. Incidence of cancer is a cause for further study as it is among the top 3 causes of mortality in some affected communities.21 Women are primarily responsible for maintaining the health of the family and the community. As such, women have to carry the burden of ill health arising from environmental destruction and pollution due to mining operations. At the height of the open pit mine and mill in Itogon, some pregnant women suffered miscarriage, while others experienced diseases of the skin, respiratory tract and blood when exposed to toxic fumes emanating from the mill. The drying up of natural water sources in another contributory factor in the poor health and sanitation in the community.22 Loss of Flora, Fauna, Biodiversity, and food insecurity The drainage area of the Abra River is home to about 1689 species of plants belonging to 144 families, including 177 species of orchids in 47 genera. More than half (51.2%) of the plants found within the area are classified as endemics with 60.7% of all the orchids classified as such. Benguet has the highest plant species diversity within the river basin area compared to other provinces. The EIM conducted in September 2002 noted gross differences between the waterways located directly below the Lepanto mining operations and tributaries originating from sources elsewhere. When the company started a fishpond in March 2001, all the fingerlings died after only 4 days. Aquatic organisms like udang (shrimp) and igat (eel) are reportedly becoming rare. Residents observed fish disease and deformities, aside from a drop in the fish catch. Fishkills occur every rainy season,
15

Jacqueline K. Carino. A case Study of the Ibaloy People and the Agno River Basin, Province of Benguet, Philippines. Presented during the Consultation on Dams, Indigenous Peoples and Ethnic Minorities. Geneva, Switzerland. August 1999) 16 Croft 17 APIT TAKO. 18 STARM 19 CA and PIPILinks 20 STARM 21 STARM 22 Jill K. Carino and Cornelia Ag-agwa. The Situation of Mining in the Cordillera Region, Philippines and its Impact on Land Rights and Indigenous Women. Paper presented during the Second International Conference on Women and Mining. Bolivia. 2000

attributed to the release of water from the tailings dams by the company. The loss in aquatic life is a major change in the life support system of the communities who rely on the river for daily food. Not only are livelihood sources affected, but so is the general biodiversity damaged, causing breakdowns in the food web. Once-common birds and tree species have disappeared. Among the bird species reported now to be rarely seen are: pagaw, tuklaw and kannaway. Trees such as the kamantires and burbala were also identified to be no longer in significant quantities.23 Dislocation of Indigenous People from Ancestral Land and Traditional Livelihoods Large-scale corporate mining and dams have dislocated the indigenous Kankanaey and Ibaloy people from their ancestral lands and traditional livelihoods. Dams have caused the loss of ancestral lands to inundation and siltation. Descendants of families displaced by dams have been reduced to illegal occupants in the dams watershed areas or settlers in land owned by others. Mining patents granted by the government to mining companies have denied indigenous communities of their rights to ownership and control over their ancestral lands and resources. In terms of livelihood, mining concessions have taken over lands used by indigenous peoples for their traditional livelihoods - ricefields, vegetable gardens, swiddens, hunting and grazing livestock. Rice fields along riverbanks have been damaged by siltation. Garden cultivators have lost their crops to surface subsidence. Traditional small scale miners have lost their pocket mines and gold panning sites to the big mines and dams. Some communities have lost entire mountainsides, burial sites and hunting grounds to ground collapse and deep open pits. Traditional fishing is no longer possible in polluted rivers, replaced by commercial fishponds in dam reservoirs. An additional impact is the violation of the collective rights of the indigenous Kankanaey and Ibaloy people of their collective rights to self-determination and cultural integrity as they are displaced from the land and community that is the basis of their continued existence and identity. Peoples Alternatives Peoples alternatives to corporate mining and dams and indigenous systems of sustainable resource utilization and management can be found in indigenous communities in the Cordillera. The Ibaloy and Kankanaey people of Benguet continue to practice traditional small-scale mining till today. Traditional methods of pocket-mining and gold panning are crude but environment-friendly and have been passed down through generations since the 16th century. Small-scale mining is a community affair and access to resources is defined by customary laws, characterized by equitable sharing, cooperation and community solidarity. Men, women, children and the elderly each have a role to play in the extraction and processing of the ore. They extract only enough gold to meet their basic necessities and receive their share of the gold based on an equitable sharing system. However, as communities are deprived of their land and resources, these traditional small-scale mining methods and positive values are now under threat of vanishing. An alternative source of energy are microhydro dams as opposed to megadams. The experience of the micro-hydro project (MHP) of the Chapyusen Mangum-uma Organization (CMO) in the Cordillera proves the viability of a community-based and community-owned power system to provide energy for lighting, rice milling, sugar pressing, blacksmithing and carpentry. The MHP has built up the peoples capacity to develop their own local resources while ensuring affordable access of poor households to electricity. It also became an opportunity for the people to improve their organization by participating in all phases of project implementation. The observance of ubfo or the traditional system of labor exchange in community mobilization has had a positive outcome by restoring traditional cooperative practices and the free utilization and exchange of individual skills towards a common objective.24 Recommendations The experience of the Kankanaey and Ibaloy people brings to a fore the need for changes in the development paradigm and policies affecting indigenous peoples. The following recommendations, arising
23 24

STARM.

Hapit, The Official Publication of the Cordillera Peoples Alliance. 3rd Quarter 2005. A basic Service to the People: The Chapyusen Micro-Hydro Project

from various reports and fact-finding missions, are forwarded for consideration by the United Nations, by international financial institutions, mining and dam companies and national governments: The international community should develop minimum standards for the protection of the environment and human rights that are binding on all countries and companies, based on the highest existing standards, and with effective monitoring and sanctions imposed on the offending parties, be it the national government, funding institutions, or the companies. There exists the Akwe:Kon voluntary guidelines, developed under the Convention of Biological Diversity, for the conduct of cultural, environmental and social impact assessments regarding developments proposed to take place on, or which are likely to impact on sacred sites and on lands and waters traditionally occupied or used by indigenous and local communities. These guidelines should be made binding rather than voluntary and could be adopted as a minimum standard by international financial institutions and national governments when implementing development projects affecting indigenous peoples. Countries that are home to transnational companies should enact legislation that will require those companies to operate using the same standards wherever they operate in the world. Home countries whose nationals and corporate entities inflict damage in developing countries, particularly on indigenous peoples, should impose some form of penalty on the offending parties. An international system should be created to allow complaints to be filed by affected indigenous communities against companies, governments and financial institutions whose development programs and interventions violate the rights of ownership and control by indigenous peoples over their ancestral land, territories and resources and cause serious destruction of the environment. In the case of Benguet where the indigenous people have already suffered and will continue to suffer enormous damage to their lands and environment due to the long-term impacts of mining and dams, proper and immediate compensation and reparation should be provided to all affected people to include adequate monetary compensation, sustainable livelihood, alternative land, employment and other sources of regular income. A program for the restoration and rehabilitation of lands and waters destroyed by mines and dams should also be implemented. Past experience has shown that no monetary compensation nor livelihood project could replace or surpass the destroyed ancestral land and traditional livelihoods of affected indigenous peoples. The solution to restoring the living quality and to stop the permanent destruction of the environment is to stop destructive large-scale corporate mining and decommission unviable tailings dams and megadams. Alternatives such as chemical-free traditional small scale mining methods and community-based microhydros need to be promoted and supported. National legislation and policy on the liberalization of mining and the energy industry need to be reviewed and revised as these have proven detrimental to indigenous peoples in different parts of the country. A new mining policy should support the Filipino peoples efforts towards nationalist industrialization and ensure the creation of jobs, food security, a stable economy, mitigation of environmental degradation, and environmental rehabilitation.
Because Mining in the Philippines is Unsustainable, Irresponsible, Toxic and Inequitable. Tuesday, 14th of December, 2010 1. Mining: A Questionable Development Model To communities immediately impacted by a mining project, mining companies claim that they bring into the community roads, schools, health services, many of the amenities of modern living, that they create jobs, and inject a lot of money into the local economy. To look upon mining companies as agents of development is however problematic. Many problems are encountered when countries pursue development strategies through encouraging private investment. Mining companies are not, by nature, altruistic; they are in business to make a profit and if they do not make a profit, they do not stay in business for very long. In fact the private sector can address sustainable development concerns as long as adequate profits can be maintained. Mining companies exist to make profits not to help communities. 2. Mining also imposes many costs.

Problems inherent in a mining-based development paradigm can be summarized as follows: If mining were just another industry with positive and negative characteristics similar to most other economic activities, proposals to focus international development assistance on mining projects in developing countries would not be controversial. However mining has characteristics that raise concerns about its social costs. Mining intensively uses land and environmental resources often leading to significant and enduring environmental degradation. Because mineral commodity prices tend to be volatile, income and employment in mining can also be unstable. Mining projects necessarily deplete the mineral deposits they extract, assuring a limited and often relatively short life span for any given project. Of the costs imposed by mining, the environmental costs are perhaps the most challenging. Mines have finite lifetimes; the ore deposit is discovered, it is mined, and then the mine is closed. The economic benefits of a mine only last throughout the lifetime of a mine. The costs of a mine, however, can be high and they may exist in perpetuity (e.g. Acid Mine Drainage). 3. The Disaster Vulnerability of the Philippines Another important topic in any discussion of mining in the Philippines is the unique vulnerability of an archipelagic nation to natural disasters. Being vulnerable to earthquakes, typhoons, and droughts, the Philippines is considered by many to be one of the most disaster prone countries in the world. The propensity of these events further exacerbates the potential environmental effects of metallic and gold mining projects; it is an extant contingency to have a mine site requiring perpetual care and attention, it is a substantially more complicated contingency to have a minesite requiring perpetual care in a situation where a torrential rain storm, from a typhoon, causes a tailings dam to overflow or where an earthquake causes a catastrophic tailings impoundment failure. Couple the intrinsic geographical vulnerability of the Philippines to natural disasters with the economic vulnerability of many Filipino communities and one begins to gain a further dimension of the strong opposition to metallic and gold mining. Moreover many communities in the archipelago are communities of subsistence farmers or subsistence fisherfolk; who live a very precarious existence at the best of time. 4. Mining and Corruption In view of the potential for adverse environmental effects inherent in mining, it is imperative that mining be subject to a thorough regulatory framework. There are many citizens in Philippine society, however, who are of the view that the Philippines suffers from a degree of corruption so high as to render such a regulatory framework, effectively, untenable. There is a substantial body of literature documenting the extent of corruption in the archipelago. This corruption is so pervasive, many view it as being an impediment to the implementation of responsible mining in the Philippines. 5. Mining and Conflict A particularly troublesome dimension of metallic and gold mining is conflict. Many parts of the Philippines are subject to acts of armed aggression by the armed revolutionary movements of the Communist Party of the Philippines-New Peoples Army-National Democratic Front of the Philippines (CPP-NPA-NDFP), the Moro Islamic Liberation Front (MILF), and another armed group called the Abu Sayyaf, in encounters with Armed Forces of the Philippines (AFP). The NPA are active nationwide in the Philippines, while the latter two groups are active on the mineral-rich Island of Mindanao. To provide security for development projects, such as mining, the (AFP) conducts security operations in the vicinity of projects in advance of their development. Armed violence is an extant reality in the Philippines. In 2007, for example, there were 64 encounters between the NPA and the AFP resulting in 126 deaths (IBON 2007). 6. Mining and Indigenous People The governments mining based development paradigm has immense potential to displace indigenous peoples (intense fighting broke out in August 2008 in the southern region of Mindanao leading to the displacement of an estimated 600,000 people). The 23 priority mining projects outlined by the Government encroach on 60% of already declared protected areas and another 53% of ancestral domains. Notwithstanding the successful defence of IPRA, many indigenous peoples worry about this overlap between mineralization and ancestral domain and the consequences this could have upon indigenous cultural communities. In the Philippines, indigenous peoples are considered to be among the more marginalized of the marginalized. If there is conflict between the multinational firms of the mining industry and indigenous people, the latter will not be in a good position to seek a favourable outcome. 7. Mining: A Sale of National Patrimony An important aspect of Philippine opposition to the use of metallic and gold mining as a vehicle for economic development is the colonization factor experienced by Filipino people. Many Filipinos view the Mining Act of 1995, particularly the Financial or Technical Assistance Agreement (FTAA) provisions of it, as being an invitation to new colonial masters from Australia (in the case of OceanGold or CGA Masbate Gold) or Canada (in the case of Crew Minerals, now Intex Resources or Placer Dome). Many, particularly after the involvement of Canadas Placer Dome in the Marcopper tailings spill, view foreign mining companies as being insensitive, or unconcerned, with issues of environmental protection. Ultimately, many affected communities view foreign investment in mineral resource extraction to be a disposal of the nations patrimony or even a loss of national sovereignty. This desire to truly control the long-

run future of their nation and its resources, in a sustainable manner, is perhaps the overriding impetus to Filipino opposition to metallic mining. Pope Benedict XVI criticized the impacts of mineral exploitation and other projects that harm the environment. There are also scars which mark the surface of our earth, erosion, deforestation, the squandering of the worlds mineral and ocean resources in order to fuel an insatiable consumption, he declared to 150,000 pilgrims who participated in World Youth Day activities held in Sydney, Australia. (July 17, 2008) His Holiness called on them to protect the environment and manage the goods of the Earth in a responsible manner, thus confirming the Catholic Churchs concern with the serious environmental deterioration that the planet is suffering due to an irrational exploitation of natural resources, which is propelled by an economic model that favours the accumulation of wealth over the life and dignity of human beings. The CBCP through its Diocesan Social Action Centres continues to exhort its message of concern on the state of the Philippine environment. It continues to fulfil its prophetic role in questioning mining activities in the sites of struggles (SoS). The likes of Bishop Evangelista of Marinduque, Bishop Bastes of Bicol, Bishop Gutierrez of Cotabato, Bishop Villena of Nueva Viscaya and Bishop Arigo of Palawan have been key prelates in voicing the concern of the church which heralds the upholding of the integrity of creation. The religious members of the AMRSP and its Mission Partners continue to support and compliment the efforts of the CBCP and civil society networks through the Justice, Peace and Integrity of Creation Commission to care for and consolidate efforts in the promotion of the integrity of creation.

Executive Summary A team led by Clare Short MP, the former UK Secretary of State for Overseas Development, visited the Philippines in July and August 2006. The Catholic Bishops of the Philippines attracted international attention because of their concerns regarding the proposed expansion of the mining industry, which has already had major negative impacts on local communities and the environment. In their view The implementation of the Mining Act will certainly destroy both the environment and people and will lead to national unrest. The team was shocked by what they heard and saw during their visit. In its attempts to woo foreign direct investment, the Philippines government appears willing to circumvent its own laws protecting the environment and human rights and reduce standards below acceptable international practice. Internationally the World Banks Extractive Industry Review (EIR), a range of academic studies and UN reports have been highly critical of such an approach. All identify mining companies as the main beneficiaries of regulatory concessions in the extractive industry, while the long-term burden of environmental and social costs remains with the developing countries and some of their poorest communities. The team recognizes the external pressures on the Philippines as a deeply indebted country to generate foreign investment but fears that the emphasis on export-driven mining based on foreign investment may diminish rather than improve the possibility of a balanced, long-term, sustainable development strategy. The problems are exacerbated by the unresolved problems of corruption and the fact that, again contrary to the recommendations of the EIR, many of the proposed new mining sites are in areas of conflict including Mindanao. Mining in the Philippines is being developed at a speed and scale (See Appendix 9 Scale of Planned Mineral Opportunities presented to Investors), and in a manner likely to cause massive long-term environmental damage and social problems. Current mining plans will undermine the Governments own strategy for sustainable development by destroying or severely damaging critical eco-systems, including watersheds, rivers, marine eco-systems and important agricultural production areas. The population, currently 84 million, is expected to reach 150 million by 2036. Maintaining the productivity and viability of the land and marine environment is surely the highest priority. Food shortages already exist. The Medium Term Philippine Development Plan (MTPDP) of the National Economic and Development Authority highlights the need to address environmental degradation. The team fears further damage to the environment by mining will occur and will increase the threat to the countrys long-term food security and the survival of future generations of Filipinos. The Philippines is one of the 17 countries in the world to be categorized as a mega-biodiversity country. It is also a geo-hazard hotspot, prone to typhoons, earthquakes, landslides and volcanoes. Its environmental sustainability is already under serious threat with the UNDP highlighting the urgent

need to properly manage the countrys natural resources if MDG 7 is to be achieved1 . These factors, together with potential social impacts, should require the Philippine government to exercise extreme caution in authorizing large-scale mining projects. The Philippines has relatively strong laws designed to protect the environment, communities and indigenous peoples. The reality, however, is that where investments are concerned the law is too often viewed as a mere technicality to be overlooked or circumvented. Human rights abuses and misreporting are clearly associated with some current mining activities. It is of concern that those in iv government and international agencies seem to lack the capacity or inclination to challenge and end such misconduct. Philippine Law requires that before any development takes place within the ancestral lands of indigenous people they must give their free, prior, informed consent (FPIC). The team heard, however, that this consent is sometimes obtained through misinformation, misrepresentation, bribery and intimidation. Government agencies, in particular the National Commission on Indigenous Peoples (NCIP), are, according to indigenous people the team talked to, failing to fulfill their mandate to protect indigenous peoples rights. Many indigenous peoples view the NCIP as siding with mining companies. They feel the need for an independent body to ensure indigenous peoples are adequately informed about plans to operate and expand mines, and to assist them in representing their views. The World Bank is implicated in the expansion of mining in the Philippines. Despite historical problems with mining and a legacy of 800 abandoned mines, the Bank was one of the major actors influencing the liberalized Mining Act of 1995. More recently, it has played a crucial role in sponsoring and promoting the adoption of the National Minerals Policy, the Mineral Action Plan and the revitalization of the mining industry. In failing to address the negative impacts of mining plans on the poor and marginal, the Bank is failing in its duty both to assist with the countrys steps to sustainable development and is failing to abide by obligations to its own mandate and obligations under international human rights law. Based on the economic evidence available, the team believes that implementation of the proposed mining plan will bring insufficient benefits to the Filipino people. Once incentives to mining firms have been considered and revenues offset against the associated costs in particular the environmental costs the net gain will be far lower than that claimed by the companies and the promoters of mining in government. The country may be left with clean-up costs that run into billions of dollars. Corruption is a serious problem in the Philippines and it can be expected that plans for extensive mining operations in remote areas requiring licensing, regulation and monitoring will make it worse. The Philippines currently faces a crisis of extra-judicial killings. More than 700 activists including civil rights and environmental advocates have been killed since the current administration came to power in 2001. Corruption and extrajudicial killings will do untold damage to the reputation of the Philippines worldwide, limiting its ability to promote tourism and other sustainable activities, or responsible foreign direct investment of any kind. The following is a summary of the recommendations the team makes, some of which are elaborated on in the concluding recommendation section. These recommendations are informed by our various experiences, informants in the Philippines, existing practice in other parts of the world and emerging standards suggested by authoritative international processes.