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1.1 Fisheries potential

The Philippines is the 11th top fishing nation in the world This annual fisheries yield is
estimated to be worth around US$2.5 billion (estimated at around 4.3% of gross domestic
product). Annual harvest is around 1.67 million tons from capture fisheries, the estimated value
of which was around US$578 million in 1994 (US$1 = PhP23.75). This contributed to around
62% of annual total fisheries catch, with the rest covered by aquaculture and inland fisheries.
Towards the early 1990’s, a decline has been observed in the municipal fisheries (i.e., small-
scale capture fisheries from less than 3 gross ton boats). The decline has been offset by
commercial fisheries (i.e., capture fisheries from more than 3 gross ton boats). Around 47% of
this capture fisheries (~787,000 tons) came from municipal fisheries and the rest (~885,000 tons)
was from commercial fisheries. In the medium term development plan of the Philippines
(including the next 5 years), it is projected that no further increases from municipal fisheries are
expected. Thus, it was emphasized in the Philippine’s National Fisheries Agenda to arrest the
decline in municipal fisheries and sustain the present levels. Commercial capture fisheries
production was expected to increase by around 10% to compensate for the deficits from
increased demand due to population growth. Aquaculture was also expected to account for over
35% of the total harvests, and hence, complement overall fisheries production. By the year 2010,
if the annual population growth of the Philippines continues at 2.4%, then a considerable deficit
in fisheries yield relative to per capita consumption is expected (Barut et al. 1997)

1.2 Mining potential

In 2013, the mining and quarrying sector (at constant 2000 prices) contributed about
1.08% to the Philippines’ gross domestic product (GDP) compared with 1.14% in 2012. The
construction sector contributed 5.64% to the GDP compared with 5.52% in 2012. The value of
metallic mineral production was $2.34 billion compared with $2.35 billion in 2012. The value of
nickel produced in 2013 was about $973.2 million (0.6% of the GDP); gold, $764.3 million
(0.5% of the GDP); and copper, $526.8 million (0.3% of the GDP) (Bangko Sentral ng
Pilipinas, 2014; Mines and Geosciences Bureau, 2014b–c). According to the Philippines Senate
Economic Planning Office, the modest contribution of the mining industry revenues to the
economy of the country could be in part attributable to the limited domestic minerals processing
facilities. Most of the mined raw material is exported to other countries for processing. The
Senate Economic Planning Office suggested that in order to overcome the challenge and
generate more tax revenues and employment opportunities in the mining sector, legislation
should be introduced that mandates for mining enterprises to setup processing facilities in the
country (Agub, 2013).
1.3 Map distribution potential of mining in philippines

1.4 Total population of philippines

The population of the Philippines has been steadily growing for many years. It is the 12th
most populated country in the world, between Mexico and Ethiopia, and grew at a rate of 1.72%
between 2010 and 2015. The 2018 population is 106.51 million, according to the latest UN
estimates. Based on 2015 census data, the population in 2016 in the Philippines was
100,981,437. Based on the 2015 census results, the population increased by over 8 million
people when compared to the 2010 census census results. The growth rate has slowed slightly
from the previous census, down to 1.72% from 1.89%.

1.5 National boundaries of Philippines

The Philippines comprises an archipelago of some 7,107 islands located off Southeast
Asia, between the South China Sea on the west and the Philippine Sea on the east. The major
islands are Luzon in the north, the Visayan Islands in the middle, and Mindanao in the south.
The total area is about 300,000 square kilometers, including about 298,000 square kilometers of
land and about 2,000 square kilometers of water. The Philippines stretches about 1,850
kilometers from Y’Ami Island in the north to Sibutu Island in the south and is about 1,000
kilometers at its widest point east to west. The bulk of the population lives on 11 of the 7,107
islands. The Philippines has no land boundaries. Nearby neighbors are Taiwan to the north,
Malaysia and Indonesia to the south, Vietnam to the west, and China to the northwest.

1.6 Type of mine in Philippines

The Philippines is endowed with US$ 1.4 trillion in mineral reserves, including gold,
copper, nickel, aluminum, and chromite. The mining potential is one of largest in the world;
being second in in gold and third in copper resources. The country is also ranked top five in the
world for overall mineral reserves, although less than 2% has received mining permits.

1.7 mining handling institution

The Government has proposed to significantly raise taxes on the mining industry, and
with national elections to be held in May 2016, the industry is waiting to see what the next
administration’s policy will be when it comes to minerals development.There is discussion to
declare some jurisdictions as “mining-free” zones, both through local ordinances and national
law. The Philippine mining industry is promoting the passage of a rational and competitive
mining fiscal regime that gives the government a fair share in mining revenues. It would allow
for inclusive growth in host communities, and give investors security and allows them a fair and
reasonable return on their investments.

2.1 information of illegal mining in Philippines

The 7,107 islands of the Philippines skirt the western fringe of the Pacific ring of fire,
where volcanic activity mineralized much of the country: copper-gold porphyry systems abound
under its surface and nickel laterites crowd its tropical soils. “With over 200 inactive
volcanoes—not to mention the unknown number that have eroded—there is no telling what else
is waiting out there,” said Dr. Carlo A. Arcilla, director and professor of CP geology at the
University of the Philippines. Mineral deposits, including copper, gold, nickel, chromite,
limestone and semi precious stones are believed to exist in abundance in the Sierra Madre
mountain range in Luzon and in the Mindanao region. Gold and copper deposits lie under Mt.
Diwalwal in the Compostela Valley in Central Mindanao, Benguet in Northern Luzon and at
Rapu Rapu island in Bicol. The provinces of Mindoro, Benguet, Zambales, Nueva Vizcaya,
Cebu and Leyte also teem with minerals. The Philippines is amongst the most mineralized
countries in the world; The Mines and Geosciences Bureau (MGB), under the Republic of the
Philippines Department of Energy and Natural Resources (DENR) estimates that the archipelago
contains more than $840 billion worth of untapped mineral wealth. In 2011, The MGB listed just
34 producing mines in the Philippines and, although illegal mining extends the actual number
significantly beyond this, the Philippine mining sector is startlingly small. In 2011 the gross
production value for metallic minerals was PhP122.58 billion ($3 billion), of which PhP63.14
billion ($1.6 billion) came from gold production. Worryingly, for a country whose marquee
mines are nearing the end of their life spans, investment in the sector fell by 35% in 2011
according to the MGB. The Philippine mining industry is beset by political uncertainty and
contends with wide spread civil anti-mining sentiment. “There are literally thousands of NGOs
working against mining here, including religious organizations and local government units that
act like NGOs,” said Leo L. Jasareno, acting director at Department of Environment and Natural
Resources (DENR), Mines and Geosciences Bureau. Of the Philippines’ 80 provinces, 14 had
promulgated ordinances, such as open-pit mining bans, that contravene the country’s mining act.
As of September 2012, a further six provinces and two cities were asking for a law to ban mining
in their areas. In January 2011, President Aquino imposed a moratorium on the processing of all
new mining agreements and cancelled over 500 existing applications. In formulating a new
mining regime, the government hopes to stimulate investment, increase its share of revenues
from mining operations, tackle illegal mining, and protect environmentally sensitive areas.
Currently, reforms to the mining law are still ongoing, and more than 1,000 applications for new
mining contracts remained on hold. The massive discrepancy between mineral potential and its
exploitation reflects the highly complex relationship between themining industry and Philippine
3.2 The effects of illegal mining in the Philippines.


 Mining has an effect on the quality of the air. Coal mines releases methane that
contributes to environmental issues since it contains greenhouse gas.
 Some cooling plants may release these ozone-depleting substances yet the amount
released is just very small.
 Heavy metals like sulfur dioxide is polluted into the air by unsafe smelter operations with
insufficient safeguards.
 Gold mining industry is actually one of the most destructive industries in the world
because of the toxins released into the air.
 Another side effect of mining are acid rain and smog.
 A total of 142 million tons of sulfur dioxide is emitted into the atmosphere, every year
because of smelting and that is 13% of total global emissions.


 When sulfide is oxidized through contact with air via mining, it forms sulfuric acid and
when this is combined with trace elements, it has a negative impact on groundwater. This
happens both surface and underground mines.
 Chemical deposits that are left over from explosives are usually toxic and it increase the
salinity of mine water as well as contaminating it. Through the “in situ” mining
groundwater can be directly contaminated, in which a solvent seeps into un-mined rock,
leaching minerals.
 Toxins like cyanide and mercury are used in the extraction of minerals that can
permanently pollute the water, making it difficult to the fishermen to find fish.
 Spills into the lakes and ocean also add toxic to heavy metals and sulfuric acid to the
environment, where it can take years.


 Land impacts are immense in mining which involves moving large quantities of rock and
in surface mining. Almost all of the mined ore of non-ferrous metals become waste.
 Mining activities might as well lead to erosion which is very dangerous for the land.
 This also leads to destruction of river banks and changes how the river flows, where it
flows, what lives in it, etc.
 Toxins such as cyanide and by products like mercury which is used in the extraction of
minerals can permanently pollute the land and people will no longer be able to farm in
certain places.
 Open-pit mining also leaves behind large craters that can be seen from outer-space.
 Due to people digging in search of precious minerals, a lot of areas are pock marked by
thousands of small holes.

 Deep sea mines are at risk in eliminating rare and potentially valuable organisms.
 Mining also destroys animal habitats and ecosystem.
 Those activity that surrounds the mine which includes explosions, transportation of
goods, road construction, the movement of people, the sound made, etc are actually
harmful to the ecosystem and will change the way animals have to live since they will
have a new way to cope with the mine and live around it.
 In general, spills of deadly substances have a very negative effect on animals and
 Discharged toxins and tailing from the mines can disrupt and disturb the way animals
 By adding or taking out something from the animals’ everyday lives, mining can
completely destroy the ecosystem.

Local comunities

 Loss of agricultural and livelihood.

 Due to huge environmental, social and cultural costs, this puts extreme stress on health,
food security, displacement, and respiratory diseases.
 Mining companies who promised to provide scholarships and livelihood to the affected
people are mere palliatives in comparison to the massive environmental destruction and
are long-term negative heath impacts of unsustainable mining practices.

Mining is still considered as a hazardous industry, though it has its advantages yet the
disadvantages far outweigh the advantages of its existence

3.1 The causes of illegal mining in the Philipppines

When the Philippines inhabited by pre-colonial settlers 67,000 years ago, the traditional
place and lode mining were part of the activities of the natives. This was the time of Negrito
tribes. These groups traded with what is now China, India, Japan, Thailand, Vietnam and
Indonesia. Raw gold was a commodity that was sold or bartered to these trading partners.The
Spanish colonizers were not able to turn mining into an industry due to the fierce resistance they
encountered from the Ygorotes of the Gran Cordillera Central. In 1837, a Royal Decree was
issued creating the Inspeccion General de Manila with the stated purpose of administering to all
the mining activities in the colony. In 1864, the Lepanto Mine was opened and marked the first
full scale mining operation that produced gold and copper. The Philippine Mining Bureau was
set up in 1900 to process and administer claims and all related transactions pertaining to mining.
The Benguet Mine was opened in 1907. It was the first modern gold mine in the Philippines.
Seventeen other mining companies followed suit in Baguio and Benguet. Commercial mining
was born in the Philippines.

The boom years of the Philippine mining industry was the pre-war period. The principal
product was gold. There were forty gold mines in operation producing about 40 metric tons per
annum before the outbreak of World War II. Year 1936 saw the passing of Commonwealth Act
137 or country’s third mining law. Gold had taken the third spot in the top commodities exported
by the Philippines after sugar and coconut products. The outbreak of World War II on December
7, 1941 with the Japanese attack on Pearl Harbor had destructive effects on the mining industry.
Aside from gold, the Japanese utilized prison labor explore and mine for iron, copper, chromite
and manganese. The same were shipped back to Japan to serve as raw materials for the war
effort. Yamashita’s last stand in the hinterlands of Northern Luzon forced the Americans to
bomb the area extensively resulting in extensive damage to the mines.

4.1 Action plan

The simple action plan it can realizeis law provides the regulatory and institutional
framework for the operation of large-scale mining in the hope that substantial foreign capital is
brought into government coffers. The law also provides for mechanisms to ensure community
consultation, local government empowerment, concern for the indigenous communities, and
equitable benefits sharing. However, the national government – with the country’s minerals
industry – has focused on foreign investments at the expense of equity and benefit allocations for
local communities. Several local governments have blocked the entry of large-scale mining or
forbidden open pit mining. Such action, including new local legislations, manifests sub-national
resource nationalism that is founded on locality and affinity to homeland, and confronts the
national government in matters of resource governance.

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compiled and drawn by the Geological Survey Division, Bureau of Mines in cooperation
with private mining companies ; edited by the Philippine Committee on Mineral
Distribution and Metallogenic Maps.