Philippines

Philippines: Mining or Food?

Case Study 2: Copper and Gold Mining Zamboanga del Norte - Mindanao Island
by

Robert Goodland and Clive Wicks for

The Working Group on Mining in the Philippines

Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs
The Brundtland Report, Our Common Future, UN World Commission on Environment and Development, 1987

In a world overflowing with riches, it is an outrageous scandal that more than 826 million people suffer hunger and malnutrition and that every year over 36 million die of starvation and related causes. We must take urgent action now.
Jean Ziegler UN Special Rapporteur on the Right to Food, April 2001

DEDICATION The Working Group on Mining in the Philippines and the authors respectfully dedicate this report to all the courageous and dignified people who have been killed while protecting the environment and upholding human rights in the Philippine archipelago.

Disclaimer The views expressed in this report are those of the authors and not necessarily those of the participating or supporting organizations. The authors have, however, done their utmost to reflect the views of the many people they met in the Philippines and the views and reports of the people and organizations who have commented on earlier drafts if this report.

 Copyright Working Group on Mining in the Philippines 2008

First Published in 2008 by the Working Group on Mining in the Philippines, 28 Redington Road, London, NW3 7RB, United Kingdom wgmpuk@tiscali.co.uk

ISBN Number: 978-0-9560616-0-7

Report authors: Robert Goodland and Clive Wicks Report editors: Cathal Doyle, Ellen Teague, Sarah Sexton and Frank Nally. Report layout and cover design Frank Nally and Cathal Doyle

Front Cover Photos: -Placer Dome Marcopper Mine Marinduque Island by Dr Catherine Coumans, MiningWatch, Canada; - Rice fields on Authors Field Trip to Midsalip

The Working Group on Mining in the Philippines The Working Group on Mining in the Philippines was established in 2007, after the publication in January that year of the report, Mining in the Philippines: Concerns and Conflicts. Based in Britain and chaired by the Right Honorable Clare Short MP, UKs former Minister of International Development it includes representatives from the Columban Missionary Society, the Ecumenical Council for Corporate Responsibility, Philippine Indigenous Peoples Links and IUCN- CEESP.

The Authors Robert Goodland is an environmental scientist specializing in economic development. He advised the World Bank Group from 1978 through 2001. He then became the technical director to H.E. Dr. Emil Salims independent Extractive Industry Review (http://www.ifc.org/eir) of the World Bank Groups portfolio of oil, gas and mining projects. He was elected president of the International Association of Impact Assessment, and Metropolitan Chair of the Ecological Society of America. He was awarded the World Conservation Unions Coolidge medal in October 2008. (RbtGoodland@aol.com) Clive Wicks has 48 years of experience of working in engineering, agriculture and environment, specializing in the impact of extractive industries on the environment. He is a vice chair of IUCN-CEESP (IUCNs Commission on Environmental, Economic and Social Policy) and co-chairs SEAPRISE (IUCN-CEESPs Working Group on the Social and Environmental Accountability of the Private Sector). He worked in the international environmental movement for the last 24 years, mainly with WWF UK. He headed WWF UKs African, Asian and Latin American programs, and represented WWF at G8, World Bank, International Finance Corporation, UNEP and UNDP meetings on extractive industries. (Clivewicks@googlemail.com)

Acknowledgements The Authors wish to thank all those who helped them, both during their trip to the Philippines and in the last year, for the substantial information provided to help them with their research. This report would not have been possible without the support of many people in all the areas visited, including Indigenous Peoples, who opened their hearts and shared their concerns with the authors about the environmental and human rights abuses caused by mining. They are the real authors of this report. However, in view of the vast number of extrajudicial killings that have taken place since 2001, now believed to be over 1,000, including a Bishop of the Independent Church, the authors are reluctant to name people or organisations in the Philippines. The authors admire the many other people, including lawyers, some of whom have also lost their lives while trying to protect their people from mining industry abuses. The authors admire the courage of the politicians, bishops, priests, sisters and pastoral workers of the Catholic Church and the leaders of many other faiths and none and human rights lawyers who have the courage to speak out against the destruction that mining is currently and will increasingly cause to their beautiful, fruitful and biodiverse archipelago. It has been a great honour and a humbling experience for the authors to work with such brave and committed people. They would like to thank the Local Governments Units, the Catholic Church, especially the Columban Missionaries and the bishops, priests, sisters and communities who welcomed them during their trip and provided accommodation, transport and food for the team. The best help the authors could provide was to apply their long years of experience and professional knowledge of the extractive industry around the world and their knowledge of environmental and human rights best practise, laws and conventions in an impartial and professional way. They would like to especially thank PAFID for their contribution to the mapping of the areas visited in their February 2008 Field Trip, LRC-KSK-Friends of the Earth for their expertise on the law and assisting Indigenous Peoples protect their rights, Professor Arturo Boquiren, Professor Ernesto Gonzales for their contribution and insights about the economics of mining versus environmental value and Cathal Doyle of the Irish Centre for Human Rights for input on the rights of indigenous peoples.Paul K. From The Working Group on Mining in the Philippines (WGMP): The Working Group would like to thank Robert Goodland and Clive Wicks for their dedication and passion for human rights and environmental justice, which has led them to generously give of their time and expertise to travel to the Philippines and answer the call of an ever increasing number of communities to help them protect their rights, their lands, their lives and livelihoods. We wish to thank Cordaid, the Holly Hill Charitable Trust, Paul K. Feyerabend Foundation, the Columbans, the IUCN-CEESP (Commission on Environmental Economic and Social Policy), for their financial support to realise this report and maps.

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Case Study 2: Copper and Gold Mining Zamboanga del Norte - Mindanao Island Table of Contents

Background Mining damage Future plans? Sibutad and Libay Visit Sibutad and Libay Conclusion, Recommendation and Map ANNEX: Table of Contents for Entire Report Including Case Studies

94 95 98 99 100 106

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Map of the Philippine Archipelago

Case Study Locations

5. MINDORO NICKEL PROJECT

6. SIBUYAN ISLAND

2. LIBAY SIBUTAD

3. TAMPAKAN SAGITTARIUS COPPER & GOLD

1. MIDSALIP

4. MATI DAVAO ORIENTAL PUJADA BAY

Report and Case Studies available in individual documents at: http://www.piplinks.org/miningorfood MAPS associated with these 6 Case Studies are available at http://www.piplinks.org/maps

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Provincial Map of the Philippines1

Source Wikipedia

Case Study 2: Copper and Gold Mining Zamboanga del Norte - Mindanao Island
Background2
The barangay (village) of Libay is located on the coast of Sibutad3 in Zamboanga del Norte, one of the provinces in the Zamboanga Peninsula in northwestern Mindanao. It is a picturesque area with lush vegetation and rolling hills covered in forest. At the foot of the hills are rice fields, homes, and Murcielagos Bay, 4 which contains coral, mangroves and important fishing grounds. It is one of the most fertile areas of the Philippines, exporting commodities to the mainland.
Bishop Jose Manguiran DD

Mineral deposits in the province of Zamboanga del Norte include chromite, gold, bentonite, marble, limestone, quartz, pebbles and gravel. According to the website of Philex Mining, Sibutad has measured reserves of 17.6 million metric tonnes of ore containing an estimated 0.84 grammes of gold per tonne. Libay is at the center of Philex Mining operations and is the home base of small-scale miners. Before Philexs arrival, local people remember that their seashore was so clear: fish and seashells were found in abundance; fishermen never experienced foul odours from the mountain that they believe to be from poisonous chemicals; people did not experience drinking water shortages, or fear poison in their water. The farmers were able to fully utilize the potential of vast tracts of rice fields. Some people also engaged in small-scale mining to augment their income; peoples capacity for buying increased, which led to more small businesses, especially food stores. Philex Gold Inc., which operates, develops and explores gold projects in the Philippines, was created in 1996 as a spin-off from the gold assets of Philex Mining Corporation, a Philippine-based company that had been operating in the country for around 40 years. It ran the Bulawan gold mine in Negros Island, and Sibutad, its second mine, was billed to begin production in 1997. In its first year of existence, Philex Gold claimed to have become the largest primary gold producer in the Philippines with an aggressive exploration and acquisition program. Philex Gold was 81.8% owned by Philex Mining Corporation; it was listed on the Toronto Stock
2

Much of this section is derived from: http://www.minesandcommunities.org//search.php?words=Libay www.minesandcommunities.org/company/philex1.htm ; Tito Natividad Fiel, Program Coordinator DIOPIM Committee on Mining Issues G/F, Diocesan Pastoral Center, Sicayab, Dipolog City (2006), and from Patenaude (1999). and http://www.maplandia.com/philippines/region-

http://sibutad.zamboangadelnorte.com/ 9/zamboanga-del-norte/sibutad/
4

http://www.dcmiphil.org/Bye-bye_Murcielagos_Bay.pdf

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Exchange5 on 28th October 1996 under the trading symbol PGI and raised $23 million for its Philippine operations through its initial public offering.6

Mining damage
In contrast to some of the other areas visited during the authors field visits, Sibutad is an example of gold and copper mining that caused such destruction in the 1990s and early 2000s that the government departments were eventually forced to suspend the permits. Nonetheless, the damage remains, and there are fears that the mining may start up again. The problems started in 1995 when the machinery of Philex Gold arrived in Sibutad. Philex began constructing diversion roads in Sibutad before the Department of the Environment and Natural Resources (DENR) had granted the company a permit to do so. Materials excavated from the diversion road were dumped down the hillside, rather than being stockpiled according to mining legislation. Sedimentation from the excavated materials clogged small creeks, from where it spread into rice paddies, and then began to accumulate along the coastline. Community protests over the massive earth-moving and resulting sedimentation into Murcielagos Bay did not stop Philex from continuing its operations. The DENR initially rejected Philexs Environmental Impact Assessment (EIA) and told the company to upgrade it. In January 1997, however, it granted Philex an Environmental Compliance Certificate (ECC), and then, in April 1997, its application for a Mineral Production Sharing Agreement (MPSA) for 3,888 hectares in Lablab The town boomed almost immediately: its population soared to over 10,000, the market for fish rocketed, employment soared and supply stores flourished as did prostitution, child labor, disease, gambling and violence. 7 Siltation and sedimentation It was not long, however, before the direct impacts of the copper and gold mining became apparent. At the end of October 1997, Philexs Chair and Chief Executive Officer Gerard Brim boasted that the companys silt barriers were strong enough to withstand six months of torrential rains. One week after this boast, on 6th November 1997, a flash flood led to a mudslide caused by the failure of one of Philexs silt dams. This was after just two hours of heavy rains. This torrential mud inundated agricultural lands and irrigated rice fields, and destroyed five homes.

http://www.tsx.com/

The original sale of a companys securities, in which the proceeds from the sale are received directly by the company.

In 1995, the Department of Labor and Employment (DOLE) study reported 114 child laborers in small scale mining (see Norman Jennings ed. 2000.) Child labor in small-scale mining: Examples from Niger, Peru & Philippines, ILO. http://www.ilo.org/public/english/dialogue/sector/papers/childmin/137e3.htm Department of Labor and Employment, Region 9, Zamboanga: A study of the incidence of child labor in Sibutad municipality, 1996. Footnote 26 http://www.ilo.org/public/english/dialogue/sector/papers/childmin/137en.htm#N_26_

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This was just the beginning. Between 1997 and 2002, overflows from Philexs tailings dams repeatedly affected the immediate surroundings, causing mudslides that continued to destroy rice fields, silt the bay (reaching 200 meters out to sea), and damage mangroves, which resulted in rice production falling by half and massive fish kills (Bautista 2008). Heavy sedimentation of Murcielagos Bay8 disrupted the ecological balance so that marine life became weak and diseased or simply died. Fishingdependent communities lost their primary source of livelihood that the bay once provided in abundance, especially fish, shellfish, and seaweed. They complained to government agencies on several occasions about the pollution of the Bay, the destruction of their agricultural lands and the loss of drinking water.. DENR eventually found Philex responsible for the damage, not in compliance with mandated precautions, and lacking the necessary permits. Despite these findings of reckless laxity, DENR did not penalize Philex, nor order it to suspend operations to stabilize the area so as to prevent further damage to agriculture, fisheries and property (DENR 1997a.b.c.). Instead, DENR ordered Philex to create a monitoring team as part of its Environmental Compliance which the company refused to do. The impacted people and their advocates called upon DENR to stop Philexs operations entirely until they could be rendered safe and the company compliant with national regulations. But the DENR refused to act. Mercury Poisoning Murcielagos Bay was affected not only by sedimentation but also by mercury and cyanide pollution from the mine spills. In September 1997, marine biologists from the University of San Carlos at Cebu City, found a higher concentration of mercury in
Bye-Bye Murcielagos Bay Bye-bye, A Case Study of Philex Gold Philippines Incorporated in Sibutad, Zamboanga del Norte by Andrea Patenaude, Originally Published in Minding Mining! Lessons from the Philippines by the Philippine International Forum (PIF) in 1999. http://www.dcmiphil.org/Byebye_Murcielagos_Bay.pdf
8

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sediments close to where Philex mining was operating (University of San Carlos, 1998).9 The DENR itself documented dangerously high levels of mercury in the Bay. Cases of Minimata Disease and other evidence of mercury poisoning of humans were reported. Another study in 2004 found that those who had been directly exposed to mercury during the gold processing had significantly higher mercury and methylmercury levels in their blood compared with those people who were indirectly exposed.10 Philexs major excavations were in formerly artisanal miners areas, and thus may have opened up mercury-laced residues from previous mining. Small-scale gold mining activities using mercury had begun in the late 1980s in Sibutad, near to the Murcielagos Bay. In addition, Philex bought and re-processed mercury-rich bags of tailings from artisanal miners. Violence between Philex and artisanal miners resulted in Philex security guards killing Crelim Cadalin, a small-scale miner, in May 1998 when he was trying to access his small-scale tunnel while trespassing on Philexs site. Philexs environmental director labeled this killing as a typical incident blown out of proportion.

Cyanide Contamination Philex did acknowledge using the cyanide heap-leach method to separate gold from residues. The Cyanide Detection Test (CDT) Laboratory Network of the Bureau of Fisheries and Aquatic Resources tested Philex waters on 24th February 1999, and found them positive for the presence of cyanide. 11 Moreover, they found all the main
Potential impacts of the Lablab mine not only affect Libay but the surrounding bay and marine reserves to the south. Many impacts may continue to accrue to the surrounding areas and to the southern province of Misamis Occidental, which has 169 km of coastline fronting the rich fishing grounds of Panguil Bay on one side and Iligan bay on the other (Fide: Science of the Total Environment 354). Some forest remains on some peaks; there are brackish-water fishponds in the region.
10 9

Nelia Cortes-Maramba et al, Health and environmental assessment of mercury exposure in a gold mining community in Western Mindanao, Philippines, Journal of Environmental Management, Vol. 81, Issue 2, October 2006, pp.126-134.

11

The cyanide detection test was certified true and correct by Melessa G. Melchor, CDT Chemist, and noted by Benita E. Manipula, Assistant Laboratory Director.

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fish species to be contaminated with cyanide. Philex reportedly contracted another mining company, BHP, to carry out an Environmental Impact Statement in 1999, but it was not made available to the Government (University of San Carlos 1998). In 2002, however, DENR finally suspended the mining operations of Philex. Nonetheless, locals report that the company is continuing with small-scale mining within the site using mechanized equipment. At least 90% of the ore was still remaining when the mine was closed.

We believe that the Sibutad Claims hold great promise for the future.
Philex Gold Inc Annual Report 1996

Future plans?
The official reason Philex gave for suspending its mining operations was the low price of gold at the time; there was also speculation that it did not have enough resources to continue mining at their previous levels. Gold and silver dor bullion bars were shipped for sale to the UK, Germany and Singapore. During the current world financial crisis, more investors may shift to precious metals, raising the price of gold. Whether that leads to more financing for gold mining remains to be seen. In Sibutad, however, Philex employees have been seen talking to barangay (village) leaders, and many communities fear that mining will expand. Their fears have been exacerbated by the interest of mining corporation FreeportMcMoRan in Philex. On 19th March 2007, Freeport-McMoRan acquired US mining company Phleps Dodge for US$13.9 billion and 136.9 million stocks and shares to become the worlds largest publicly traded copper mining company. As a result of the takeover, Phelps Dodge became Freeport McMoRan Copper & Gold, Inc., which owns 40% of Philex Gold. On 3rd October 2007, Philex Gold announced that its wholly-owned subsidiary, Philex Gold Philippines, Inc., had signed an agreement with PDEPI (Phelps Dodge Exploration Philippines. Inc.), which is an indirectly 40%-owned subsidiary of Freeport McMoran Copper & Gold Inc. The Earn-In Agreement concerns part of PGPIs Sibutad project tenements covering 6,954 hectares. The Property consists of the areas covered by three permits: an Exploration Permit Application (EPA # 047IX) covering 5,846 hectares; a Mine Production Sharing Agreement (MPSA 63-97IX) covering 622 hectares; and an Application for Production Sharing Agreement (APSA 73 -IX) covering 486 hectares. Philex Gold has also announced another surprise move concerning its operations elsewhere in Mindanao: a joint venture with the UK-based Anglo American Exploration concerning the Boyongan copper-gold porphyry deposit in the province of Surigao del Norte in north-eastern Mindanao which was discovered in August 2000. On 25th September 2008, Anglo Philex Gold Inc. stated that Philex Mining Corporation (PMC) had approved the acquisition of Anglo American Exploration (Philippines) BVs 50% interest over the Boyongan copper-gold porphyry property for $55 million, giving Philex and its subsidiary, Philex Gold Philippines, Inc., full

98

control over the property. PMC will apparently buy the shares currently owned by Anglo American in the joint venture companies, Silangan Mindanao Mining Company, Inc. and Silangan Mindanao Exploration Company, Inc.; these companies are the owners of four mining tenements, including Mineral Production Sharing Agreement (MPSA) No. 149-99-XIII, which cover five parcels of land including the Boyongan deposit.12 Many deals entered into by both local and foreign mining companies and mining multinationals profit from exploration and mining licenses and permits and mineral data by using them for speculative purposes rather than with a view of exploring or mining themselves.

Sibutad and Libay Visit

The authors visited Sibutad and Libay during February 2008 and met Bishop Jose Manguiran who strongly opposes mining and logging because of the environmental damage and human rights abuses caused in his diocese, especially to the indigenous Subanen people. They went to the Libay mining sites in Zamboanga del Norte in Mindanao and met with small farmers and fisherfolk, who had gathered at a seminar on sustainable agriculture organized by the local communities and the Diopim13 Committee on Mining Issues (DCMI)14 of the Catholic Church, which is assisting communities affected by mining projects. The team visited the area where mine spills and landslides occurred and could clearly see the extent of the damage caused by the collapse of the tailings dam. Some attempts had been made at erosion control by dyking and planting seedling trees, but it looked incommensurate with the need. The seedlings were not flourishing and the dykes were eroding. We also saw the Bay and coastal area, which showed signs of returning seagrass and mangroves. Fisherfolk reported that fish stocks were slowly restoring themselves since the mining was halted.

12

http://www.miningtopnews.com/philex-gold-announces-sale-by-anglo-of-50-interest-in-boyonganproject-to-philex-mining-corporation.html The DIOPIM Committee on Mining Issues (DCMI) is an acronym for the dioceses headed by the Bishops of Dipolog, Ipil, Ozamiz, Pagadian, Iligan and Marawi.

13

See http://www.dcmiphil.org/dcmi/index.php for The DIOPIM Committee on Mining Issues (DCMI) is a non-governmental organization (NGO) based in Dipolog City, the Philippines. The committee is spearheaded by the Roman Catholic Church and composed of Social Action Directors with inputs from NGOs and Indigenous Peoples groups. See also The Halifax Initiative - Canatuan Polymetallic Mine http://www.halifaxinitiative.org/index.php/miningmap/aen45a510a98928d

14

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Sibutad and Libay Conclusion, Recommendation and Map

The authors believe that mining in the Zamboanga Peninsula will severely damage the remaining forests and water catchment quality, increase flooding, erosion, siltation and landslides. It will thereby reduce production of agricultural, marine resources, and bio-diversity, displace populations, re-engender conflict, and affect the human rights of local communities, particularly the Subanen, the largest population of indigenous people in the Philippines. Mining will increase poverty and limit the ability of future generations to survive. The authors conclude that mining is not compatible with irrigated agriculture notably rice or fish production and is inappropriate in areas such as the Zamboanga Peninsula in western Mindanao. The authors strongly recommend that the Government bans mining in critical water catchments and prioritises the immediate protection of the environment including reforestation, food security and human rights including the right to a healthy environment for present and future generations.

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MINING TENEMENTS STATISTICS REPORT AS OF MARCH 2008 REGIONAL OFFICE NO. IX - ZAMBOANGA PENINSULA III. Under Process LIST OF MINERAL PRODUCTION SHARING AGREEMENTS (MPSA) TENEME TENEMENT NT ID HOLDER Under Preliminary Evaluation 1. APSA Oreline Mining 000015-IX Corporation/Ben * guet Corp./ Toquero Geologists and Affiliates 2. APSA Oreline Mng 000098-IX Corp./Toquero Geologist & Aff 3. APSA PNOC-Energy 000017-IX Dev''t Corporation 4. APSA Emiliano 000022-IX Veneracion Jr. Pending Area Clearance / Status 1. APSA Maharlika 000082-IX Dragon Mining Corporation 2. APSA Ester M. 000110-IX Valencia 3. APSA Elmo B. Valencia 000111-IX 4. APSA Mt. Sinai Mng. 000125-IX Explo. & Devt. Corp.

DATE FILED

LOCATION

AREA (Has)

COMMODITY

REMARKS

04-10-92

R.T.Lim, Zamboanga 4,212.00 Sibugay & Siocon, ZDN

Gold

29/12/19 99 05-26-92

RTLim, Zambo.Sibugay;Siocon ZDN Alicia, ZDS

3,888.00 Gold, etc.

2,340.00

07-31-92

Alicia, ZDS

486.00

Gold

09-15-97

Polanco,Kalawit&Osme 7,533.00 a, ZDN;Ipil,Zsibugay Brgy. Pange, Siayan, 810.00 Zamboanga del Norte Brgy. Pange, Siayan, 1,134.00 Zamboanga del Norte Tungawan,Z. 10,125.00 Sibugay:Gutalac&Dapita n, ZDN; Suminot&Dumingag, ZDS; Vitali,ZC

Chromite

Transfer Order (09-28-07)

01-27-05 01-28-05 05-24-05

Gold, Silver, etc. Gold, Silver,Iron, etc. Managanese, IronGold, Silver, etc.

Undergoing Revisions/Rectifications 1. APSA Alberta 03-31-05 000119-IX Resources Dev't. Corp. 2. APSA MASADA 04-28-05 000122-IX Resources & Mng. Corp.

Sindangan, ZDN

8,100.00

Gold,Copper, Silver, etc.

Ipilan,Salug;Pange,Siaya 8,100.00 n, ZDN, Balagon, Midsalip, ZDS; Bitoon & Dicoyong, Sidangan, ZDN

Managanese, IronGold, Silver, etc.

Undergoing Publication, Posting, Radio Announcement 1. APSA Butuan Logs Inc. 08-11-97 000076-IX 2. APSA Maharlika 09-15-97 000082-IX Dragon Mining Corporation 3. APSA Maharlika 12-16-97 000085-IX Dragon Mining Corporation 4. APSA BB Minerals 04-02-98 000087-IX Corporation 5. APSA Rojuman Realty 04-19-99 000095-IX & Dev't Corporation 6. APSA Curuan Mineral 04-11-03 000100-IX Resources and Dev't. Corp. 7. APSA Mindanao 03-08-04 000105-IX Mining &

Siraway, ZDN

3,645.00

Gold Chromite Transfer Order(09-2807) Transfer Order (09-0407)

Polanco,Kalawit&Osme 7,533.00 a, ZDN;Ipil,Zsibugay Kulasihan, Tampilisan, ZDN Tipan, Pitawi,Kanapon, Sibalic,Gutalac, ZDN Tigbalangao, Ligian, Tungawan, ZDS Brgy. Mina, Curuan, Zamboanga City Gitalus, Midsalip & Depore, Bayog, ZDS 810.00

Chromite

4,536.00

Chromite

5,022.00

Gold

2,430.00

Gold, Silver, etc.

7,573.00

Iron,Gold, Silver, etc.

101

8. APSA 000106-IX 9. APSA 000112-IX 10. APSA 000113-IX 11. APSA 000114-IX

Mineral Resources Corp Edmund B. Bilang Astron Resources Mining Corp. Matatag Mining Corp. 31st Century Mining Corp.

03-19-04 02-21-05

02-21-05 03-03-05

Sitio Talaptap, Brgy. Saaz, Gutalac, ZDN Brgy. Lunday & Litawan, Zamboanga Del Norte Brgy. Litawan, Dinolan & Basakm, ZDN Brgy. Pearanda, Kabasalan , Zambo. Sibugay Brgy. Seroan & Seres, Katipunan ZDN

810.00 4,131.00

Gold, etc. Iron, Gold, Silver, etc.

4,293.00 8,100.00

Iron, Gold, Silver, etc. Gold, etc.

12. APSA Shamrock Metal 03-03-05 000115-IX & Mineral Processing Corp. 13. APSA Jeffrey Andrew 03-11-05 000117-IX L. Ocampo 14. APSA Astron 000120-IX Resources Mining Corp. 15. APSA MASADA 000121-IX Resources & Mng. Corp. 16. APSA Mt. Sinai Mng. 000123-IX Explo. & Devt. Corp. 17. APSA Rigid Agreggates 000127-IX and Mining Corp 18. APSA Greater Asia 000128-IX Mininig & Dev't. Corp. 19. APSA Greater Asia 000129-IX Mininig & Dev't. Corp. 04-06-05

8,100.00

Chromite, etc.

Brgy. 810.00 Sanghanan,Kabasalan, Zambo. Sibugay Tigbucay,Tigpalay,Tunga 3,969.00 wan,Z.Sibugay Longilog,Titay,Caparan, 8,100.00 Ipil, Z. Sibugay Pange,Siayan;Bato,Sinda 6,075.00 ngan,ZDN La Paz, Baluno, Zamboanga City Lintangan & Malayal, Sibuco, ZDN 1,458.00 6,399.00

Iron, Gold, Silver, etc.

Managanese, IronGold, Silver, etc. Managanese, IronGold, Silver, etc. Managanese, IronGold, Silver, etc. Gold, Copper, Lead, Zinc, etc. Iron., Manganese, Gold, Silver, Etc. Iron., Manganese, Gold, Silver, Etc.

04-20-05

05-03-05

07-20-05 08-02-05

08-02-05

Balukbahan, Bayog, ZDS 2,673.00

Published/Posted/Announced 1. APSA Alberto D. 06-07-05 000126-IX Sildlao 2. APSA Daihan Graciano 12-23-93 000036-IX 3. APSA Jessmag, Inc. 08-01-95 000058-IX 4. APSA Philex Gold 03-05-97 000073-IX Philippines Inc. Endorsed to Central Office for Final Evaluation 1. APSA Geotechniques 03-05-04 000104-IX and Mines Inc. 2. APSA Holcim Phils. 03-08-05 000116-IX Manufacturing * Corp. 3. APSA A.P Tang Mning 03-11-05 000118-IX Corp. * Pending NCIP Certification ICC Consent, etc. 1. APSA Maharlika 06-29-92 000019-IX Dragon Mining Corporation 2. APSA Zamboanga Gold 09-18-92 000023-IX Mining Corp. 3. APSA EMACO, Inc. 12-03-93 000034-IX 4. APSA TVI Resource 01-21-94 000039-IX Dev't.(Phils) Inc. 5. APSA Mingson Agro- 05-29-96 000063-IX Urban Dev't Corp. 6. APSA Roldan Dalman 11-14-96 000064-IX

Siayan, Zamboanga Del Norte Diplahan, Zamboanga Sibugay Sibuco, ZDN Rizal, ZDN

810.00 405.00 8,100.00 486.00

Chromite, Manganese, Gold, etc. Gold Gold Gold

Midsalip, Zamboanga del 567.00 Sur Brgy. Kipit,Labason & 486.00 San Juan,Gutalac ZDN Brgys. Lumponid & Datagan,Midsalip,ZDS 6,200.00

Iron, Gold, Silver, etc. Silica Sand

returned/re:C ert. Panel A. form. Alsons Cement Corp. form. SDV P. Mng. Corp.

Iron, Gold, Silver, etc.

Titay, Zamboanga Sibugay, & Labason, ZDN Siocon, ZDN Sibuco, ZDN Siocon, ZDN Labason & Liloy, ZDN

10,449.00

Manganese

Transfer Order (09-0407)

2,673.00 4,131.00 2,754.00 5,015.51

Gold,Copper Bentonite Clay Copper,Silver Silica Return to R.O. for rePendng FPIC

Jose Dalman, ZDN

486.00

Copper,Gold

102

7. APSA 000074-IX 8. APSA 000075-IX 9. APSA 000086-IX 10. APSA 000094-IX 11. APSA 000099-IX

Butuan Logs, Inc. Libres and Sons Mining & Dev't Corp. Delram Mineral Corporation Juraclex Dev't. Inc. Pola Mining Corp.

06-04-97 08-08-97

Panganuran,Sibuco, ZDN 4,832.00 Tampilisan & Liloy, ZDN 4,941.00

Gold, etc. Laterite

Revision of loc. map

03-06-98 02-18-03 02-21-03

Tipan, Bakong, 1,458.00 Mamawan, Gutalac, ZDN Lintangan, Pangan, 3,969.00 Sibuco, ZDN Siraway, ZDN 4,131.00

Chromite Gold form. Juraclex Dev't. Inc. Iron, Gold, Silver, formerly etc. Cebu Ore Mng. & Min. Res. Corp. Iron, Gold, Silver, etc. Gold

12. APSA 168 Ferrum 000101-IX Pacific Mining Corp.

12-22-03

Canipay, Midsalip, Datagan, Bayog and Depore, ZDS Lunday, Sibuco, Zambaonaga del Norte and Cuatro Ojos, Vitali, Zamboanga City

8,100.00

13. APSA Hard Rock 03-04-04 000103-IX Mineral Trading, Inc.

6,075.00

VIII. Converted to other Tenements TENEME TENEMENT NT ID HOLDER 1. APSA Philex Gold 000056-IX Philippines Inc. DATE FILED 04-1095 DAT LOCATION E CONVERTED 11- Dapitan City, ZDN 1904 05- Kumalarang, ZDS & 30- Buug, Zamboanga 05 Sibugay 05- Milidan, Baliguian & 30- Bakong, Gutalac, ZDN 05 06- Vitali,Licomo,ZC 3005 AREA (Has.) 5,565.00 COMMODITY REMARKS

Gold

(converted to EXPA) (converted to EXPA) (converted to EXPA) (converted to EXPA)

2. APSA Rigid Aggregates 03-26000107-IX Corporation 04 3. APSA Rigid Aggregates 03-26000108-IX Corporation 04 4. APSA Linktone 000124-IX Intl.Mng. Corp. NOTE: 05-1805

2,430.00 Manganese, Chromite, Iron, etc. 7,290.00 Manganese, Chromite, Iron, etc. 7,776.00 Managanese, IronGold, Silver, etc. 1,159.00 Chromite

Mt. Kabasalan Mng. & Explo. Gutalac, Zamboanga del Co. vs Norte Leuk Reg Min. Res. Dev't. Corp

DENR Case No. 8074

103

Sustainable Development and Mining Industry in Zamboanga Peninsula, Philippines

The Philippine government has identified Luzon and Mindanao as its food baskets but states that: The sad irony of Mindanao as food basket is that it has some of the highest hunger in our nation. It has large fields of high productivity, yet also six of our ten poorest provinces (Extract - State of the Nation Address 2008).

The Zamboanga Peninsula in western Mindanao, with a current population of 3,230,094 (estimated at 5.5 million by 2036), is vital for food production. In spite of being badly damaged by logging, the forests in the mountains sustain critical watersheds necessary for agriculture and fish farming. Numerous rivers and shallow coastal waters provide ideal breeding grounds for fish but these are easily damaged by pollution particularly acid drainage and siltation from mines and deforestation.

Experts commissioned by the Working Group on Mining in the Philippines visited Mindanao in February 2008, (See report, Philippines: Mining or Food?) and helped produce this map which indicates the potential negative impacts of mining on forests, agriculture and marine resources as well as on indigenous peoples ancestral lands. The experts cannot reconcile the prioritisation of mining with the governmental obligation to reduce conflict and guarantee food security for a rapidly expanding population.

There is no Strategic Environmental Assessment available which would critique the risk of planned and existing mining operations, and consider their cumulative impacts on livelihood and food production, factoring in the affects of high rainfall, erosion, land slides and intensive seismic activity. Without this information Free Prior Informed Consent processes are invalid.

The experts believe that Mining will severely damage the remaining forests and water catchment quality, increase flooding, reduce production of agricultural and marine resources, displace populations, engender conflict, affect the human rights of local communities particularly the indigenous people, increase poverty and limit the ability of future generations to survive.

The experts conclude that mining is not compatible with irrigated agriculture notably rice or fish production and is inappropriate in areas such as the Zamboanga Peninsula. The experts strongly recommend that the Government bans mining in critical water catchments and prioritises the immediate protection of the environment including reforestation, food security and the Human Rights for present and future generations.

The pictures show mountains and irrigated rice fields which will be damaged by mining and a family with the Right Honorable Clare Short the former Minister for International Development for the UK Government after they were expelled from their land by a mining company. Farm and house before and after mining starts Clare Short MP with family

Mining in progress

104

105

ANNEX Entire Report Table of Contents Foreword to Second Mining Report Message from Senator Aquilino Pimentel Jr Message from Bishop. Zacarias C. Jimenez, DD EXECUTIVE SUMMARY AND RECOMMENDATIONS Summary recommendations to the Philippine Government Summary recommendations to Mining Corporations Summary recommendations to Development Agencies, NGOs, World Bank Summary recommendations to the Investor Community Summary recommendations to Mining-Impacted Communities INTRODUCTION Chapter 1: Mining and Food Security 1.1 The Importance of Rice 1.2 The 2008 Food Price Frenzy 1.3 Peak Oil, Peak Food, Peak Phosphate, Peak Water & Peak Stable Climate 1.4 Why Does the Philippines Import Rice? 1.5 Reasons for Decreased Domestic Rice Production Chapter 2: Mining and Forests 2.1 Deforestation Harms Rice and Fisheries 2.2 The Need for Watershed Conservation 2.3 Deforestation Increases Poverty 2.4 Indigenous Peoples and Forests 2.5 Rainforestation Chapter 3: Mining and Marine Resources 3.1 Mining and Fisheries 3.2 Pollution From Mining Chapter 4: Flawed Government Policy 4.1 Scale of the Mining Problem 4.2 Conflict of Interest 4.3 DENR Promotes Mining and Demotes Environment 4.4 Corruption in Environmental Governance 4.5 Philippine Mining Act, 1995 4.6 Separate Exploration from Exploitation 4.7 Post-Mining Rehabilitation Must Be Enforced 4.8 Government and Society Split on the Benefits of Mining Chapter 5: Indigenous Peoples 5.1 Indigenous Peoples and the National Commission on Indigenous Peoples 5.2 The Role of the National Commission on Indigenous Peoples 5.3 Rights of Ownership and Ancestral Domain 5.4 Right to Develop Lands and Natural Resources 5.5 The Right to Benefits vii viii ix xi xvi xxi xxiii xxv xxvii 1 4 4 5 7 8 9 11 11 13 13 13 14 15 15 15 18 18 20 20 22 23 29 29 32 36 36 37 38 38 38

106

5.6 5.7 5.8 5.9

Protections Afforded by Indigenous Peoples Rights Act Free and Prior Informed Consent FPIC and ESIA Indigenous Peoples need Environmental and Social Impact Assessments

39 39 41 42 44 44 45 47 48 49 51 51 53 53 54 54 55 55 57 59 61 70 70 72 73

Chapter 6: Human Rights, Militarization and Mining 6.1 Human Rights and Mining 6.2 Official Reports Documenting Human Rights Violations 6.3 Human Rights, Civil Society and the Catholic Church 6.4 The Human Security Act 6.4 Further Militarization of Mining Projects and Investment Defense Forces 6.5 The Relationship Between DENR and NCIP 6.6 DENR Engulfs NCIP Chapter 7: Philippine Mining Economics 7.1 Deficiencies in Mining Economics 7.2 Internalizing Currently Externalized Costs 7.3 Policy Options for Internalization 7.4 Benefit Allocation 7.5 The Resource Curse 7.6 Impact-Benefit Agreements 7.7 Assessment of Cost Externalization in Philippine Mining 7.8 Mining is the wrong Engine for Growth Chapter 8: The Position of the International Agencies 8.1 The World Bank Group 8.2 International Development Assistance to DENR FIELD TRIP CASE STUDIES

Case Study 1: Iron Ore & other Minerals, Midsalip, Zamboanga del Sur - Mindanao Island 75 Background 75 Water, Food and Livelihoods 77 The Threat of Mining in Midsalip 79 Potential Impacts and Opposition 82 Midsalip Visit 84 Midsalip Conclusion, Recommendation and Map 85 Case Study 2: Copper and Gold Mining Zamboanga del Norte - Mindanao Island Background Mining damage Future plans? Sibutad and Libay Visit Sibutad and Libay Conclusion, Recommendation and Map 94 94 95 98 99 100

Case Study 3: Copper and Gold Mining in Tampakan, South Cotabato Mindanao Island 106 Background 106 Threat of a huge open-pit copper and gold mine 108

107

Uncertainty Raising Fears Visit to South Cotabato South Cotabo Conclusion, Recommendation and Map Case Study 4: Nickel and Cobalt in Davao Oriental Mindanao. The Hallmark Project Background Proposed Mining Environmental and Social Impacts Opposition and Deficiencies in Consultation Visit to Pujada Bay / Mt Hamiguitan Pujada Bay Conclusion, Recommendation and Map Case Study 5: Nickel Mining Mindoro Island Background Mining Proposal Opposition Indigenous opposition Visit to Mindoro Company continues to plan Governor Issues Order to Stop Mining Activities Mindoro Conclusion, Recommendation and Map Case Study 6: Gold and Nickel Mining - Sibuyan Island Background Forest Resources Already Threatened Proposed Industrial Mining Opposition Visit to Sibuyan Sibuyan Island Conclusion, Recommendation and Map Recommendations to the Philippine Government Recommendations to Mining Corporations Recommendations to Development Agencies, NGOs & the World Bank Group Recommendations to the Investor Community Recommendations to Mining-Impacted Communities Annex A: Church Declarations and Position Papers on Mining Annex B: Civil Society Reports on Human Rights Violations Annex C: Strategic Environmental Assessment (SEA) Annex D: Health Impact Assessment (HIA) Annex E: Literature Cited and Guide to Further Information Annex F: Mines and Communities (MAC): The London Mining Declaration. Annex G: Geohazards and Earthquakes in the Philippines Annex H: Philippine Biodiversity Conservation Priorities

113 118 121

126 126 127 129 31 134 135 142 142 143 144 145 148 149 156 161 172 172 173 173 175 176 177 181 191 196 199 202 206 212 213 217 221 246 251 260

108

About the Authors

Robert Goodland is an environmental scientist specializing in economic development. He advised the World Bank Group from 1978 through 2001. He then became the technical director to H.E. Dr. Emil Salims independent Extractive Industry Review (eir.org) of the World Bank Groups portfolio of oil, gas and mining projects. He was elected president of the International Association of Impact Assessment, and Metropolitan Chair of the Ecological Society of America. He was awarded the World Conservation Unions Coolidge medal in October 2008. (RbtGoodland@aol.com)

Clive Wicks has 48 years of experience of working in engineering, agriculture and environment, specializing in the impact of extractive industries on the environment. He is a vice chair of IUCN-CEESP (IUCNs Commission on Environmental, Economic and Social Policy) and co-chairs SEAPRISE (IUCN-CEESPs Working Group on the Social and Environmental Accountability of the Private Sector). He worked in the international environmental movement for the last 24 years, mainly with WWF UK. He headed WWF UKs African, Asian and Latin American programs, and represented WWF at G8, World Bank, International Finance Corporation, UNEP and UNDP meetings on extractive industries. (Clivewicks@googlemail.com)

.. Perhaps reluctantly we come to acknowledge that 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. Some of you come from island nations whose very existence is threatened by rising water levels; others from nations suffering the effects of devastating drought. Gods wondrous creation is sometimes experienced as almost hostile to its stewards, even something dangerous. How can what is good appear so threatening? ...My dear friends, Gods creation is one and it is good. The concerns for non-violence, sustainable development, justice and peace, and care for our environment are of vital importance for humanity. His Holiness Pope Benedict XVI, 23rd World Youth Day, Sydney, Australia, July 12-21, 2008

Photos if the fact-finding trip can be found on: http://workinggrouponmininginthephilippines.blogspot.com

Working Group on Mining in the Philippines (WGMP) 28 Redington Road, London, NW3 7RB wgmpuk@tiscali.co.uk