Thematic Session “Geohazards”, 49th CCOP Annual Session

Sendai, Japan, October 22 - 23, 2013

Socio-Economic Analysis of Natural Resources in Mindanao

Yuri Oki1, Yasukuni Okubo2, Conrado R. Miranda3 and Shuichi Rokugawa4

1
Department of Political Science, Graduate Institute of International and Development Studies,
Geneva
2
Geological Survey of Japan
3
Mines and Geosciences Bureau, Department of Environment and Natural Resources, Philippines
4
Research into Artifacts, Center for Engineering, The University of Tokyo
e-mail: yuri.oki@graduateinstitute.ch

Abstract
The study is aimed at investigating the solution to sub-national conflicts. We focus on one of the root
causes of sub-national conflicts, which is the un-equal distribution of wealth. From an in-depth case
study of Mindanao, the Philippines, we find that insufficient governance over mineral resources
induces inequality in the distribution of wealth, which drives people to engage in violent conflicts and
impede mineral resources development projects. To provide a solution to this problem, our study
proposes the application of a web-GIS system as a tool to conduct, and to achieve good mineral
governance. Furthermore, we recommend international donor counterparts to assist in the capacity
building training of technical experts to manage, and operate the mineral information through
administration of the web-GIS system.

Keywords: conflicts, mineral governance, web-GIS, capacity building,

1. Introduction
The objective of this research is to investigate the solutions to sub-national conflicts.
Although we understand that there exist many reasons why conflicts occur, we intend to focus
on one specific reason in this paper, which is the un-even distribution of wealth. This article
presents the findings from multiple interviews conducted in the Philippines on how un-even
distribution of wealth can induce poverty that makes people who are marginalized by the
society to engage in activities involving violence and conflict.
Our findings suggest that development of mineral resources bring wealth –nationally and
sub-nationally- that boosts regional economy, and improves standards of living of the local
people. Hence, development of mineral resources is a key element to the solution of conflicts.
The question is, what are the tools to measure and evaluate the potential for wealth generation
from mineral resources development? And if we have such tools, how do we apply them?
This paper concludes by recommending a web-GIS database on mineral resources as a tool in
measuring its potential, capacity, and feasibility of mineral resources development, in
addition to raising the information transparency at both national and sub-national level.

2. Background: the Profile of Mindanao Conflict

There are several ongoing modes of conflict in Mindanao; the two Muslim groups and
the communist group. The three groups vary in their ideology, yet all three hold a common
objective in taking up arms and engaging in violence against the central government; to
correct the un-equal distribution of wealth among those marginalized.
The two Muslim groups that began its secession movements in 1970s had requested for
larger autonomy over the Muslim dominated area in respect to the Muslims’ ancestral domain.
Oki et al., Socio-Economic Analysis of Natural Resources in Mindanao

For Muslims, partial autonomy was achieved through the 1996 Peace Agreement. However a
splinter group along with other paramilitaries sharing the ideology of ‘self-determination of
the Muslims in Mindanao’ kept engaging in violence until a cease-fire in 2003. Under the
current Benigno Aquino III administration, peace is expected to be achieved by the end of
2016.
While some areas in the Philippines enjoy wealth from mineral resources developments,
some areas do not. For example, the Muslim dominated areas in Mindanao have been cast out
from mineral resources development plans due to prolonged conflict from the 1970s. Since
then, security concerns have been preventing resources developments. Due to robust agrarian
reform by the American colonial government that was succeeded by the Philippines
government after the end of the world wars, many Christian migrants had re-settled to areas
that were predominantly under Muslim control, which created tensions between the Muslims
and the Christians over land and the natural resources ownership.
Muslims have their customary concept of communal land ownership. Thus, Christian
migrants holding permissions issued by the central government granting permits to re-settle to
Muslim land had contributed to the growing grievance over Muslims’ customary farmland
ownership. The re-settlement policy of Christian migrants from Northern and Central
Philippines (Luzon and Visayas) had pushed, and marginalized, the Muslims and indigenous
peoples of Mindanao to highlands where social infrastructures were underdeveloped or even
non-existent.
As we look into the historical background of those marginalized in the Mindanao society,
we find that the benefit sharing of wealth derived from the mineral resources has been the
core issue of inequality of the distribution of wealth in Mindanao. With many of the locals
living in poverty, inequality of wealth sharing is a major social issue in Mindanao.

3. Findings from Mindanao

From the briefings and interviews we have conducted with geologists and government
officials in the Philippines1, we find that mineral resources are abundant throughout the
Mindanao region but not fully explored and developed.

1 Interviews were conducted with the officials from the Mines and Geosciences Bureau,
Department of Environment and Natural Resources (MGB-DENR) in Manila, Cebu, Davao, and in
Cotabato City during the course of October 2012 to July 2013.
Thematic Session “Geohazards”, 49th CCOP Annual Session
Sendai, Japan, October 22 - 23, 2013

Fig. 1. Metallic and Non-Metallic Mineral Occurrences Map of Mindanao.

The Missing Data Problem

Because ground exploration surveys and investigations have not been conducted due to
protracted violence, there is a gap of the mineral resources data in the Muslim areas (five
provinces) of Mindanao. Missing data prevents government officials and government
resources development agencies from generating comprehensive mineral resources
development plans for the Mindanao region. The external actors, such as international donor
and development agencies, can help address the information gap of politically un-stable
regions, and assist in the collection of such data as a third party. Having a complete national
data on resources can contribute in the identification, and delivery of public services in
redressing the social disparity between those ‘who have’ mineral resources from those ‘who
have none’.

Example From Large-scale and Small-scale Mining

For local peoples, large-scale mining projects are merely an act of exploitation on their
land and their wealth. Thus, large-scale mining is highly controversial because the people are
constantly in doubt whether their community will benefit from mineral development projects.
This misunderstanding is especially true for those who are marginalized from the Mindanao
society, such as the Muslims and the indigenous peoples who are landless. The people believe
that large-scale mining imposes socially vulnerable locals (often times ethnic indigenous
groups) to relocate into marginal areas, while developers benefit from the resources entitled to
the indigenous people2. Although implementation of corporate social responsibility scheme

2 Indigenous People’s Rights Act (IPRA) of 1997 validates Indigenous peoples’ rights to ancestral
Oki et al., Socio-Economic Analysis of Natural Resources in Mindanao

can prevent this kind of scenario, such misunderstandings on the nature of large-scale mining
activities are widely propagated through grass-roots networks, religious institutions and
religious leaders3.
On the contrary, local communities are sympathetic to small-scale miners, as they feel
inevitable to prevent fellow locals to be in dire poverty by conducting small-scale mining just
to raise day-to-day cash. It is large-scale mining that are more likely to generate strong
oppositions from communities as the local stakeholders feel that they are being exploited by
the ‘big-men’4 who envision profit from mineral resources developments. It is therefore the
expected utility of mineral resources that motivates landowners and political elites to grab
land and the resources without local or indigenous peoples’ consent. The situation is further
complicated when indigenous groups make collective actions against pro-mining policy with
groups of armed men who are often times ethnically tied to each other, to prevent the
government and the national mineral resources development agencies to implement
large-scale mining.

Mineral Governance
We understand that such problems occur because of insufficient governance of mineral
resources. By mineral governance, we refer to a concept that enforces and maximizes the
capacity and systems of government institutions that manages minerals sector5. The elements
of mineral governance include strengthening of a) technical and legal capacities of
state-owned mining companies to fully-engage with mining sponsors, b) government-led
management of mining projects by supporting the project implementation units such as the
Department of Environmental and Natural Resources, Department of Trade and Industry, and
National Economic and Development Authority, c) government capacity in mineral
management including the control and monitoring of mining operations, and d) facilitation of
regional and local development plans and its implementation with the private sector6.
In the next section, we introduce an ongoing initiative aimed to manage the mineral data
in the ASEAN region. This web-GIS database can contribute as a tool used to achieve some
of the elements of mineral governance mentioned in the previous paragraph. For example,
web-GIS can contribute in strengthening the implementation of project by raising
transparency of mineral information to mining companies and to local communities. It can be
used as a presentation device to convince regional and local counterparts on assessments and
evaluation of development projects, which contributes to good practice of mining companies

domain. http://www.gov.ph/1997/10/29/republic-act-no-8371/
3 According to responses from multiple informants, information on resource developments is
dispersed through religious churches and influential leaders of the community, for those who are
challenged in reading newspapers and government publications. Radio remains the source of
information to the local people in the outskirts.
4 According to the responses from the interview, ‘big-men’ refer to politicians and political elites.
It also symbolizes how they are from the ‘outside’, which often times refers to those who are
coming to Mindanao from Manila, the capital and the center-point symbolizing national power.
5 Our team has generated the concept ‘mineral governance’ that represents a holistic concept
based on the idea of the management of mineral resources.
6 To understand the individual elements, we have referred to mineral governance support project

drafted by the World Bank for the country of Guinea. For more details, refer to The World Bank,
Projects & Operations, Project Mineral Governance Support Project webpage
http://www.worldbank.org/projects/P122916/mineral-governance-support-project?lang=en&tab=ov
erview
Thematic Session “Geohazards”, 49th CCOP Annual Session
Sendai, Japan, October 22 - 23, 2013

and in achieving good governance. Furthermore, it can be used as an instrument to monitor

mining operations by overlaying the satellite (LANDSAT) data to check the possibility of
environmental degradation and prediction of geo-hazards.

4. Initiative on ASEAN Mineral Resource Database Webpage

We introduce an ongoing project conducted by the ASEAN community and Japan. The
objective of the project is to construct a database system to manage the mineral resources data
of the ASEAN. The online geographic information system (GIS) is operated open source, and
manages mineral data of the ASEAN member countries through the Internet. The advantages
of the database are the following: (1) it is cost-efficient; there being no need to obtain GIS
license since the system is run by open-source, and (2) it allows editing and updating of data.
An example of this online database system is shown below.

Fig. 2. Sample of ASEAN Mineral Database Webpage.

The system is designed to share the ASEAN mineral resources data among member
countries and the public. It allows production of static and dynamic maps by overlaying
spatial data ranging from geological data (topography, geology, mineral resources,
geo-hazzards, and satellite images) to socio-economic data (income and education level,
poverty rate, percentage access to basic social infrastructures). In addition to easy overlaying
of data, the system also allows easy spotting of missing data.
In sum, the web-GIS helps identify (and locate) the needs for mineral governance at
sub-national and national level. Thus, we strongly recommend web-GIS as a management
tool for good mineral governance.

Next Step: Capacity Building

We find that mineral governance is the key to solving sub-national conflicts. We also find
that web-GIS can serve as a tool in the management of mineral resources, resulting in good
mineral governance. The next step is to strengthen the capacity of human resources, as we
need technical experts to handle the web-GIS. It is important to keep in mind that the
web-GIS is a means to an end, not an end itself.
We propose a training program to strengthen the capacity of IT technicians and
geologists who assemble and manage the mineral information using the web-GIS system.
Oki et al., Socio-Economic Analysis of Natural Resources in Mindanao

Managing the mineral resources information means not only the collection and compilation of
mineral data, but includes monitoring, assessment, and evaluation of mineral resources
information. The aim for training of technical experts is to nurture the trainee’s
comprehensive skills to understand the scientific technology in achieving mineral governance.
International counterparts can play a significant role in arranging such training programs or
packages that contribute to the enforcement of mineral governance in ASEAN countries.

5. Lessons Learned
The objective of this paper was to investigate the solution to conflict. We find that
un-equal distribution of wealth induces conflict, and we focused on mineral resources in
Mindanao as a case study to understand this phenomenon. The findings suggest that
insufficient management of mineral resources information leads to insufficient mineral
governance. Thus, to reiterate our message, we propose a management of mineral information
presented using the dynamic web-GIS system. Creation of a base-map is essential for the
development of minerals, and thus we believe web-GIS is an appropriate tool. We believe that
International counterparts can contribute in building the capacity of technical experts in
handling the web-GIS.
To summarize the implications from our findings, our proposal suggesting the use of
web-GIS to enhance mineral governance, would contribute in the capacity building of human
resources. Enhancement of mineral governance would help communities to achieve good
governance, and help raise social maturity to prepare for mineral development projects.
Consequently, good mineral governance would help mitigate the cause of conflict; the
un-equal distribution of mineral wealth, and help prevent exploitation.

References
Sato, Jin eds. 2013, Governance of Natural Resources: Uncovering the Social Purpose of Materials in
Nature. United Nations University Press.
World Bank, Projects & Operations, Project Mineral Governance Support Project webpage
<http://www.worldbank.org/projects/P122916/mineral-governance-support-project?lang=en&t
ab=overview>