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2011




Alyansa Tigil Mina
Prepared	
 by




                               Alyansa Tigil Mina
                                      September	
 2011




Photos	
 by	
 Farah	
 Sevilla,	
 Jay	
 Azucena,	
 Denise	
 Fontanilla	
 &	
 Bro.	
 Martin	
 Francisco
Updated  September  2011*

Summary

The   economic   cluster   of   the   Aquino   administration   has   adopted   the   misplaced  
policy  of  the  previous  adminsitration  to  revitalize  the  Philippine  industry.    Despite  
the   numerous   studies   done   recently   showing   that   mining   has   not   contributed  
significantly  to  the  Philippine  economy,  mining  has  been  included  in  the  industrial  
priority   list   (Arangkada   2011),   and   the   Medium   Term   Philippine   Development  
(ironically,  under  Chapter  10:  Environment  and  Natural  Resources).    It  is  ATM’s  
position   that   such   policies   are   inconsistent   with  
President   Aquino’s   Social   Contract   with   the  
Filipino  People.

The   performance   of   the   Philippine   mining  
industry  is  dismal.  It  failed  to  deliver  on  its  promises  
on   revenues,   investments   and   employment.                   
Its   contribution   to   the   Philippine   economy   is  
relatively   insignificant   compared   to   Agriculture,  
Fisheries   and   Forestry.      Adding   tourism   to   the  
equation  (whose  operations  are  directly  impacted  
by  mining),  then  you  have  an  imbalance.

There  are  evidences  that  describe  the  seriousness  
of   issues   lodged   against   large-­scale   mining.        
These   include   threats   to   gains   in   asset   reform,  
physical  displacement  and  cultural  dislocation  of  
indigenous   peoples,   destruction   of   biodiversity,  
inconsistency   with   the   new   laws   on   climate  
change   and   disaster   risk   reduction,   escalation   of  



     Alyansa Tigil Mina                                                                        1
social  conflicts  and  human  rights  violations,  undermining  of  local  autonomy,  weak  
governance  and  regulatory  mechanisms,  and  the  myth  of  responsible  mining.  These  
threats  are  more  than  enough  to  counter-­balance  the  claimed  benefits  of  large-­scale  
mining,  and  will  possibly  result  in  negative  net  benefits  to  the  communities  and  the  
country.  The  proposal   to  stop  mining  operations   in   protected   areas   is   a   welcome  
initiative.  However,  it  is  easy  to  legally  comply  with  this,  because  National  Integrated  
Protected  Areas  System  Law  (NIPAS  or  RA  7586)  defines  “protected  areas”  as  those  
declared  by  the  President  or  Congress.    We  argue  that  there  is  mining  in  areas  of  
high  biodiversity,  critical  watersheds  and  natural  forests,  that  have  not  been  declared  
by  the  President  or  Congress,  and  thus  are  not  legally  defensible  if  such  an  Executive  
Order  will  be  pushed.

ATM   recommends   that   the   Aquino   administration   drops   the   policy   on   mining  
revitalization   and   immediately   revoke   Executive   Order   270-­A.      The   government  
must  also  adopt  a  “Cost-­Benefit  Analysis”  in  all  mining  projects.    In  the  absence  of  
such,  certain  areas  of  the  Philippines  must  be  declared  as  “No-­Go  Zones”.    Enforcing  
the  Mining  Act  of  1995  has  been  problematic,  and  given  its  inherent  flaws,  a  new  
minerals   management   law   must   be   enacted.      A   rational   and   needs-­based   mineral  
policy  must  be  put  in  place  in  the  interim,  anchored  on  a  National  Industrialization  
Plan.    In  all  cases,  the  rights  of  indigenous  peoples,  just  and  equitable  sharing  of  
benefits,  and  the  principles  of  local  autonomy  must  always  be  protected  and  upheld.      
Finally,  the  government  must  ensure  that  transparency  and  accountability  are  firmly  
embedded  in  the  mining  industry  and  govenment  agencies.    
2                2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
The	
 current	
 policy	
 and	
 its	
 claimed	
 basis

The  Philippine  Mining  Act  of  1995  (RA  7942)  is  the  national  legislation  regulating  
the   mining   industry   in   the   Philippines.      EO   270-­A   was   signed   last   September  
2004,  establishing  the  revitalization  of  the  Philippine  mineral  industry.    In  effect,  
the   Philippine   government   has   shifted   its   policy   from   “tolerance”   to   “aggressive  
promotion”   of   the   mining   industry.      Thirty-­two   (32)   priority   large-­scale   mining  
projects   have   been   pipelined   since   then,   aside   from   more   than   two   thousand  
applications  for  mining  contracts  and  exploration  permits.    Relatedly,  government  
has  put  its  support  to  the  mining  industry  in  terms  of  i)  fast-­tracking  the  application  
and   permission   process,   ii)   watering   down   the   consent   process   for   indigenous  
peoples,   iii)   weakening   local   autonomy   of   local   governments   to   resist   or   oppose  
the  entry  of  large-­scale  mining  in  their  territories,  and  iv)  highlighting  mining  as  a  
priority  in  the  Medium  Term  Philippine  Development  Plan  (MTPDP:  2004-­2010).

The   Arroyo   administration   based   this   policy   shift   on   the   claimed   economic  
benefits   dangled   by   the   mineral   industry.      There   was   pervasive   belief   in   the  
previous  administration  that  a  revitalized  mining  industry  will  bring  in  significant  
investments,  emplyment  and  revenues.  The  promises  
have   included   i)   US$5-­7   billion   dollars   in   foreign  
exchange   generation,   ii)   Php5-­7   billion   pesos   in  
excise   tax   colletion,   iii)   239,000   indirect   and   direct  
employment,  and  iv)  US$4-­6  billion  dollars  worth  of  
investments.  

The   Department   of   Environment   and   Natural  
Resources   (DENR)   has   been   confronted   with   a  
conflicting   role.      On   one   hand,   its   main   task   is   to  
ensure   conservation,   protection   and   rehabilition   of  
biodiversity   areas.      However,   it   is   also   expected   to  
manage  and  regulate  utilization  of  natural  resources  
and  is  required  to  implement  the  mining  policies.    

Amidst   the   backdrop   of   an   attempt   to   sell   the   idea  
of  “sustainable  mining”,  the  Philippine  government  
equipped   the   mining   revitalization   policy   with   the  
National  Minerals  Action  Plan  (NMAP).    Through  the  
NMAP,  the  Philippine  mining  industry  was  depicted  
as   compliant   with   the   sustainable   development  
framework   by   identifying   social   development,   environmental   mitigation   and  
economic  benefits  as  a  convergence  framework.    However,  as  international  opinion  
was   consistently   debunking   the   concept   of   “sustainable   mining”,   the   Philippine  
government  had  to  fall  back  on  the  concept  of  “responsible  mining”.    Responsible  

     Alyansa Tigil Mina                                                                              3
mining,  as  showcased  by  the  Chamber  of  Mines  of  the  Philippines  (COMP)  espoused  
“best  practices”  reflecting  the  key  elements  of:  i)  compliance  with  the  principles  of  
sustainable  development,  ii)  built-­in  protection  for  indigenous  peoples,  iii)  ensuring  
shared   benefits   of   mining   to   major   stakeholders,   and   iv)   compliance   with   strict  
environmental  and  social  provisions.

Performance	
 of	
 the	
 revitalized	
 mining	
 policy

In  a  Philippine  Institute  for  Development  (PIDS)  discussion  paper,  it  stated  that  in  
an  18  year  period  (1990-­2008),  the  percent  share  of  Employment in the Mining and
Quarrying Sector to Employment in All Industries  never  went  higher  than  0.65%.                               
The  highest  figure  was  recorded  in  1990.    In  the  same  period,  the  total employment
in mining and quarrying  in  any  given  year  never  exceeded  more  than  160,000.1    It  
is   important   to   note   that   these   figures   capture   both   mining   and   quarrying.      It   is  
logical   to   expect   that   if   only   figures   for   quarrying   were   not   factored   in,   the   total  
number  of  employment  for  mining  alone,  
would   be   significantly   lower.   The   same  
paper   found   that   the   knowledge   base   of  
the   country   needed   to   pursue   national  
industrialization   strategy   is   poor.   It  
concluded   that   “judging   by   experience,  
the   search   for   national   industrialization  
in  the  mining  sector  would  be  a  difficult…  
However,   [this]   should   not   prevent   the  
country   from   attempting   once   again  
especially   given   the   importance   of  
industrialization   to   the   growth   of   the  
economy.”2

The  gross  production  value  in  mining  rose  
from  US$568.7  million  in  2001,  to  a  high  of  US$912.4  million  in  2005.  However,  
total   payments   to   government   during   this   period   averaged   only   4.64   %   of   gross  
production  value  –  in  stark  contrast  to  the  statements  referring  to  wealth  generation  
and   wealth   sharing.      Although   the   production   value   of   mining   rose   steadily   over  
the   period,   the   share   going   to   local   government   plummeted   to   0.19   %   of   gross  
production  value  in  2005,  and  a  measly  5.5  %  of  the  total  tax  take.  This  is  a  far  cry  
from  the  ‘fair’  share  that  the  national  government  has  promised.3

                                                                                                           -




4                  2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
There  is  evidence  that  undercollection  of  
                                                taxes  in  the  mining  industry  was  between  
                                                60%   to   80%   from   1997-­2008,   a   period  
                                                of   13   years.      It   was   also   observed   that  
                                                poor  revenue  collection  from  mining  was  
                                                recorded  for  the  period  1997  to  2009.    The  
                                                average  revenue  effort  for  the  Philippines  
                                                for   the   period   was   15.9%,   and   for   the  
mining  industry,  it  was  only  9%!    Collection  of  taxes  at  the  LGU  level  was  also  
dismal.    The  average  revenue  collection  from  1997-­2000,  was  only  5%.    From  2001-­
2009,  this  average  has  gone  down  to  
0.7%!4  In  the  case  of  Marinduque,  
Marcopper  Mining  Corporation  has  
an   outstanding   balance   of   unpaid  
real  property  taxes  for  the  period  of  
1980  to  2006  alone  of  more  or  less  
ONE  BILLION  PESOS  due  to  the  
LGUs  of  Boac,  Mogpog,  Sta.  Cruz,  
Torrijos  and  the  province.

Despite   the   commitments   in   the  
previous   MTPDP   (2004-­2010)   and  
the   NMAP,   the   resolution   of   the  
Marcopper  mine  tailings  spill,  the  rehabilitation  of  the  Mabatas  Tailings  Dam  and  
the  rehabilitation  of  seven  abandoned  legacy  mines  remain  undone.    

Serious	
 issues	
 and	
 concerns	
 on	
 the	
 revitalized	
 mining	
 policy

   1.   Large-­scale  mining  poses  serious  threats  to  asset  reform  gains.  It  displaced  
        and  continues  to  displace  indigenous  peoples  from  their  ancestral  domains  
        under   the   Indigneous   Peoples   Rights   Act   (IPRA   or   RA   8371)   and   small  
        farmers  under  the  Comprehensive  Agrarian  Reform  Program  (CARP).  In  fact,  
        the  displacements  of  indigenous  peoples  and  farmers  have  been  heightened.               
        PhilDHRRA  reported  in  2008  that  more  than  half  of  ancestral  domains  of  
        indigenous  peoples  are  directly  impacted  by  mining  and  logging  applications  
        or   operations.      Moreover,   the   study   revealed   that   72%   of   these   extractive  
        activities   (mining   and   logging)   located   within   ancestral   domains   operate  
        without   securing   free   prior   and   informed   consent   (FPIC)   from   indigenous  
        peoples.5

                                                                                                 Que-



     Alyansa Tigil Mina                                                                               5
            The   government   have   spent   billions   of   pesos   of   public   and   private   funds  
             on  the  above  mentioned  asset  reform  program  and  it  is  but  right  to  sustain  
             the   gains   from   these   programs.   Concerned   government   agencies   in   charge  
             of   processing   large-­scale   mining   application   should   seriously   consider   it.  
             Displacement  would  affect  not  only  the  future  of  the  families  displaced  but  
             also  the  country’s  food  security  and  sovereignty.  

             Concrete  cases  include  the  resistance  of  farmers  in  Calatagan,  Batangas,  in  
             the  forced  entry  of  Asturias  Chemical  Industries.    An  estimate  of  more  than  
             a  hundred  farmers,  working  productively  in  about  500  hectares  of  farmlands,  
             are  opposing  a  limestone  mining  operations.  These  farmers  are  beneficiaries  
             of  the  CARP,  and  have  fully  paid  their  amortizations  to  the  Land  Bank.    

   2.   Mining   negatively   impacts   indigenous   peoples.      Despite   the   safeguards  
        provided   by   IPRA,   the   IPs   are   marginalized   in   the   fight   against   mining  
        because  the  free,  prior  and  informed  consent  is  routinely  violated  by  mining  
        companies.    Cases  of  misinformation,  subtle  bribery,  intimidation  and  even  
        harassment  have  been  documented.  Even  if  royalty  payments  are  successfully  
        negotiated,   the   assurance   that   communities   will   receive   equitable   and   just  
        share  in  these  benefits  are  not  assured.

             In  2002  and  2003,  Rodolfo  Stavenhagen,  United  Nations  special  rapporteur  
             for   the   human   rights   and   fundamental   freedoms   of   indigenous   peoples  
             visited  the  Philippines  and  reported:  “Of  particular  concern  are  the  long-­term  
                                                devastating   effects   of   mining   operations   on  
                                                the   livelihood   of   indigenous   peoples   and   their  
                                                environment.   These   activities   are   often   carried  
                                                out   without   their   prior,   free   and   informed  
                                                consent,   as   the   law   stipulates.   Communities  
                                                resist   development   projects   that   destroy   their  
                                                traditional   economy,   community   structures  
                                                and   cultural   values,   a   process   described   as  
                                                development   aggression.   Indigenous   resistance  
                                                and  protest  are  frequently  countered  by  military  
             force  involving  numerous  human  rights  abuses,  such  as  arbitrary  detention,  
             persecution,   killings   of   community   representatives,   coercion,   torture,  
             demolition  of  houses,  destruction  of  property,  rape,  and  forced  recruitment  
             by  the  armed  forces,  the  police  or  the  so-­called  paramilitaries.”

             In  Oriental  Mindoro,  the  Mangyans  in  the  towns  of  Pola,  Socorro  and  Victoria  
             are   opposing   the   entry   of   Intex   Mining   Corporation,   a   Norwegian   mining  
             company.    The  resistance  is  multi-­sectoral,  including  LGUs,  farmers,  fishers,  
             women,  professional,  the  religious  and  academe.    It  culminated  in  a  hunger  

6                    2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
strike   last   November   2009,   that   successfully   revoked   the   Environmental  
      Compliance  Certificate  (ECC)  of  Intex,  wrongfully  issued  by  the  DENR.  The  
      proposed   mining   area   was   within   the   ancestral   domains   of   the   Mangyans,  
      and  they  have  categorically  denied  the  mining  company  their  free,  prior  and  
      informed  consent.6    

        Recent  struggles  of  IPs  against  mining  include  the  Palaw’an  tribe  of  Southern  
        Palawan  versus  mining  company  MacroAsia  Corporation  who  claims  to  have  
        undergone   the   process   of   free   prior   and   informed   consent,   when   the   real  
        tribal  warriors  and  leaders  are  publicly  against  mining  in  their  ancestral  land.  
        (This  is  further  discussed  in  the  next  item.)

        Meanwhile,  killings  and  human  rights  abuses  against  anti-­mining  communities  
        also   continue   to   rise.   Florita   Caya,   General   Manager   of   the   Unified   Tribal  
        Council  of  Elders  (UTCEL)  was  shot  on  April  27  this  year.  Their  organization,  
        a   group   of   indigenous   peoples   (Mandaya,   Manobo,   Mangguangan   and  
        Dibabawon)  in  Monkayo,  Compostela  Valley,  were  engaged  in  protecting  their  
        ancestral  lands  against  large  scale  mining  and  logging.  UTCEL  members  said  
        that  prior  to  her  death,  Caya  has  received  threats  urging  them  to  stop  their  
        activities,  especially  in  their  advocacy  against  mining.  




     Alyansa Tigil Mina                                                                                7
            The   negative   impacts   of   large-­scale  
           mining  to  indigenous  peoples  were  also  
           documented   by   a   report   produced   by  
           the   London-­based   Working   Group   on  
           Mining   in   the   Philippines   (WGMP).            
           The   report   stated   that   IPs   “are  
           particularly   vulnerable   to   the   negative  
           effects   of   mining.      The   ancestral  
           domains   of   indigenous   communities  
           tend   to   be   in   forested   upland   areas,  
           many   of   which   are   now   targeted   by  
           mining   corporations.      Stewardship  
           over   these   lands   is   enshrined   in   oral  
           history,   myths,   prayers,   and   traditional  
           laws   that   pre-­date   the   Philippine   state.  
                                                                
           These   indigenous   communities   have  
           traditionally   lived   sustainably   in   the  
           forest,   but   have   been   displaced   or   are  
           currently  threatened  with  displacement  
           by  what  they  call  “development  aggression”  such  as  commercial  logging  and  
           mining.    The  Philippine  Indigenous  Peoples  Rights  Act  (IPRA)  requires  that  
           Indigenous  Peoples’  free  and  prior  informed  consent  be  obtained  for  mining  
           on  their  lands.  However,  manipulation  of  the  FPIC  process,  resulting  in  the  
           fabrication  of  their  consent,  is  widespread.”7  

             Last  March  21-­23,  2011,  more  than  150  indigenous  peoples  gathered  in  the  
             National   IP   Summit.      In   the   Summit   Resolutions,   the   delegates   called   for  
             the  following:  i)  Repeal  the  Philippine  Mining  Act  of  1995  and  support  the  
             passage  of  alternative  mining  bills  that  provide  for  the  rational  management  
             of  minerals  and  uphold  the  right  of  indigenous  peoples;  ii)  Respect  for  the  
             mining   moratorium   issuances   consistent   with   local   government   autonomy,  
             iii)  Declaration  of  a  moratorium  on  large-­scale  mining  and  strict  regulation  
             of   small-­scale   mining;   and   iv)   Prohibition   on   the   use   of   state   forces   in   the  
             implementation  and  operation  of  mining  projects.8

   3.   Large-­scale   mining   poses   risks   to   high   biodiversity   areas,   watershed   areas  
        and  fragile  small-­island  ecologies.  It  has  also  direct  impacts  on  irrigation  and  
        agriculture  lands  of  farmers  and  will  contaminate  municipal  waters  and  coastal  




8                     2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
areas  under  the  Fisheries  Code.  In  the  Philippines,  most  
       of   the   mining   and   exploration   concessions   are   located  
       in   watershed   areas   where   demand   for   waters   exceeds  
       the   available   supply.   According   to   the   United   States  
       Environmental  Protection  Agency,  water  contamination  
       from   mining   poses   one   of   the   top   three   ecological  
       security  threats  in  the  world.

        The  open-­pit  mining  method  will  strip  mountains  and  
        forests   that   threaten   our   protected   areas.   According  
        to   HARIBON,   in   2011,   about   60%   of   KBAs,   and  
        approximately   1/3   of   ancestral   domains   are   directly  
        overlapping  with  the  23  priority  mining  projects  in  the  
        country.9

        The   current   issue   in   Palawan   is   a   clear   example   of  
        conflicting   land   use.      Mining   operations   have   already  
        destroyed   forest   and   coastal   areas,   while   drastically   reducing   agricultural  
        productivity   of   irrigated   rice   fields.   Additional   mining   applications  
        will   encroach   in   natural   forests.   This   is   despite   the   status   of   Palawan   as   a  
                                    “Man   and   Biosphere   Reserve”   as   declared   by   the  
                                    United   Nations   Educational,   Scientific   and   Cultural  
                                    Organization  (UNESCO).    Palawan  is  host  to  40%  of  
                                    the   country’s   remaining   mangrove   areas,   30%   of   the  
                                    country’s  coral  reefs,  has  identified  17  key  biodiversity  
                                    areas   (KBAs),   2   world   heritage   sites,   and   8   declared  
                                    protected  areas.  49  animals  and  56  plant  species  which  
                                    are   globally   threatened   with   extinction—according  
                                    to   the   International   Union   for   the   Conservation   of  
                                    Nature(IUCN)—are  also  found  in  Palawan.  Palawan  is  
                                    so   unique   and   special   that   a   Strategic   Environmental  
                                    Plan  (SEP  Law  or  RA  7611)  was  passed  in  1992.10  

        There  are  also  429  mining  applications  in  Palawan,  with  at  least  two  (2)  large-­
        scale  mining  and  several  contiguous  small-­scale  mining  operations.    Aside  from  
        Rio  Tuba  Nickel  Mining  Corporation  (RTNMC)  operating  in  Bataraza,  two  
        other  mining  companies  are  planning  to  operate  in  the  towns  of  Brooke’s  Point.  
        These   are   MacroAsia   Corporation   (MAC),   and   Ipilan   Nickel   Corporation  
        (INC).  Corporations  such  as  Citinickel,  Berong  Nickel  Corporation  and  other  



   10   Conservation   International   (CI),   Priority   Sites   for   Conservation   in   the  
        Philippines:  Key  Biodiversity  Areas,  2006
     Alyansa Tigil Mina                                                                                      9
mining  companies  partnering  with  the  Canadian  MBMI  (under  Financial  or  
            Technical  Assistance  Agreements  (FTAAs))  represent  an  additional  threat  to  
            Palawan  forest.  All  these  operations  will  encroach  not  only  on  natural  forests  
            but  also  on  core  zones  and  protected  areas,  if  we  use  the  original  delineation  
            of   the   Environmentally   Critical   Areas   Network   (ECAN)   zones   in   Palawan.       
            What  has  happened  is  that  the  Palawan  Council  for  Sustainable  Development  
            (PCSD)   has   failed   to   fulfill   its   own   mandate   by   releasing   environmental  
            clearances   and   exploration   permits   to   mining   corporations   in   “core”   and  
            “restricted”  areas,  where  any  form  of  extractive  activity  is  strictly  forbidden.  

              The  indigenous  peoples  (Palaw’an  tribe)  in  Brooke’s  Point  have  never  given  
              their  consent  to  mining  operations.  Moreover,  the  resolutions  endorsing  the  
              operations  of  MAC  and  INC  signed  by  the  Sangguniang  Bayan  of  Brooke’s  
              Point  and  by  the  Sangguniang  Panlalawigan  of  Palawan  bypass  the  decisions  
              and   sentiments   of   the   majority   of   Brooke’s   Point   Municipality   population.  
              In  endorsing  the  mining  exploration  of  both  MAC  and  INC,  the  Sangguniang  
              Bayan   has   acted   in   contradiction   with   its   own   Municipal   Comprehensive  
              Land  Use  Plan  (CLUP)  for  2000-­2010,  in  which  mining  was  never  considered  
              as  a  development  strategy.  Also  barangay  governments  have  approved  mining  
              operations,  bypassing  all  forms  of  consultations  with  their  constituents  and  
              neglecting   the   important   requirement   of   the   Local   Government   Code   (RA  
                                                7160)   with   respect   to   the   duty   of   consulting  
                                                local  people  on  any  project  or  program  that  may  
                                                cause   pollution,   climate   change,   depletion   of  
                                                non  renewable  resources.  The  anti-­mining  stand  
                                                and   opposition   to   MAC   and   INC   operations  
                                                on   the   part   of   the   residents   of   Brooke’s   Point  
                                                Municipality  has  been  made  clear  in  the  course  
                                                of   several   rallies   and   peaceful   demonstrations  
                                                from  2008  to  2010.  

                                                  Mining   will   also   have   an   adverse   impact   on  
                                                  Palawan   tribes’   sacred   and   worship   sites,   which  
                                                  occupy  a  special  position  in  people’s  cosmology  
                                                  and   worldview.   Furthermore,   mining   activities  
                                                  will   destroy   the   resource-­base   on   which   upland  
                                                  indigenous   communities   depend   for   their  
                                                  survival,  including  water  sources  and  non-­timber  
                                                  forest  products.  It  needs  to  be  pointed  out  that  
                                                  some  of  these  communities  have  limited  contacts  
                                                  with   the   outside   world,   are   not   listed   in   the  
                                                  national   census   and   are   particularly   vulnerable  
                                                  to  diseases  brought  in  my  migrants  and  miners.

10                     2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
       Meanwhile,  in  June  2011,  a  group  of  indigenous  peoples  claiming  to  be  leaders  
        of  the  Palaw’an  tribe  signed  a  free  prior  and   informed  consent  with  MAC.  
        This  was  when  the  real  elders  (Panglima)  and  tribal  leaders  of  Palaw’an  tribe  
        sought  the  support  of  Congressman  Teddy  Brawner  Baguilat,  chairperson  of  
        the  House  Committee  on  National  Cultural  Communities,  and  the  NCIP.  As  
        of  now,  the  NCIP  has  put  on  hold  its  issuance  of  Certificate  of  Pre  Condition  
        to  MAC  because  of  issues  that  still  need  to  be  addressed.  

        In  Mindanao,  the  town  of  Cantilan  Surigao  del  Sur,  is  opposing  the  operations  
        of  Marcventures  Mining  Development  Corporation  (MMDC).    The  mine  site  
        is  part  of  a  critical  watershed  area,  declared  by  Pres.  Arroyo  in  2008  under  
        Presidential   Proclamation   No.   1747.      Aside   from   the   Manobo   indigenous  
        tribe—who  lay  claim  to  an  ancestral  domain  in  the  area—the  LGU,  organized  
        farmers,  fisherfolk,  professionals,  the  Catholic  Church  and  even  the  Provincial  
        Office  of  the  National  Irrigation  Association  (NIA)  has  publicly  opposed  the  
        mining  operations.    

        In  November  10,  2010,  the  complainants  filed  an  application  for  temporary  
        environmental  protection  order  (TEPO)  against  MMDC.  On  that  same  day,  
        the  Honorable  Court  issued  a  TEPO  “restraining  and  enjoining  the  defendant  
        from   continuing   its   mining   activities   and   operations   inside   the   Watershed  
        Forest   Reserves…   covering   the   municipalities   of   Cantilan,   Carrascal,   and  
        Madrid,  all  in  Surigao  del  Sur,  to  prevent  irreparable  damage  and  injury  to  
        plaintiffs  and  residents  of  the  said  municipalities  until  further  notice  from  this  
        Court.”  However,  despite  the  court  order,  MMDC  still  continued  operations  
        in  the  mining  area.  

        In   August   17,   2011,   the   Committee   on   Natural   Resources   of   the   House   of  
        Representatives   conducted   a   hearing   on   the   TEPO.   During   the   hearing,  

     Alyansa Tigil Mina                                                                             11
MMDC   and   Department   of  
            Environment   and   Natural  
            Resources—Mines                 and  
            Geosciences   Bureau   denied  
            having  received  a  copy  of  the  
            TEPO,   and   said   they   will  
            implement   it   immediately.  
            But  despite  this,  MMDC  was  
            still  able  to  complete  shipment  
            of   55,600   wet   metric   tons  
            of   high-­grade   nickel   ore   to  
            China,   in   August   20,   only  
            three   days   after   the   House  
            Committee  hearing.  

              Another   case   in   point   is   the   Rapu-­rapu   spills   tragedy.   In   October   11  
              and   29,   2005,   two   spills   occurred   in   the   Rapu-­Rapu   Polymetallic   Project  
              operated   by   Lafayette   Philippines,   Inc,   in   the   island   of   Rapu-­Rapu,   Albay.  
                                                                                                               
              Tones  of  effluent  and  toxic  materials  were  spilled  in  the  creeks  and  coastal  
              areas   of   Rapu-­Rapu,   causing   fish   kills   and   fish   scare.      An   independent  
              commission   was   created   by   then   President   Arroyo   to   investigate   the   matter  
              and  to  make  recommendations.    The  Rapu-­Rapu  Fact-­Finding  Commission  
              (RRFFC)   stated   that   “the   two   tailings   spill   incidents   were   the   proximate  
              cause   of   the   health   and   environmental   hazards   in   Rapu-­Rapu   and   coastal  
              municipalities  of  Sorsogon.”  The  commission  also   commented   that  DENR  
              has   been   noticeably   consistent   in   allowing   Lafayette   to   violate   especially  
              the   environmental   protection   requirements   of   its   approved   Environmental  
              Protection   and   Enhancement   Program   (EPEP).   Among   the   commission’s  
              recommendation   were:   i)   Investigation   by   the   Bureau   of   Internal   Revenues  
              (BIR)   on   the   underreporting   of   ore   production   and   violation   of   tax   laws,  
              ii)   Rescinding   of   economic   and   financial   incentives   to   the   Lafayette   group,  
              iii)  A  moratorium  on  mining  in  Rapu-­rapu  and  a  suspension  of  MPSAs  in  
              the  island  pending  scientific  and  experts’  favorable  resolution  of  the  issue  of  
              ecological  conservation  and  the  acid  mine  drainage  problem  in  a  fragile  small  
              island  ecosystem,  iv)  Cancellation  of  the  ECC  of  the  mining  project,  and  v)  
              Review  of  the  Philippine  Mining  Act  (RA  7942)  specifically  the  provisions  on  
              the  ownership  and  management  of  mining  firms  and  operations  to  protect  
              the  interest  of  the  Filipino  people  and  the  Philippine  government.  11    To  date,  
              none  of  these  recommendations  have  been  adequately  acted  on.

   4.   The  policy  on  large-­scale  mining  is  inconsistent  with  the  new  laws  on  climate  



12                     2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
change   (Climate   Change   Act   or   RA   9729)  
      and   disaster   risk   reduction   (Disaster   Risk  
      Reduction   Law   or   RA   10121).      The   mining  
      industry  is  a  direct  contributor  to  deforestation.     
      The  GHG  emmissions  of  the  mining  industry  is  
      not  accounted  for,  and  their  demand  for  energy  
      will   exponentially   increase   these   emmision  
      figures.         Caution   must  be   observed   regarding  
      the  Philippines  incompatibility  to  accommodate  
      large-­mining   operations,   given   its   geography  
      and   topography   and   poor   regulatory   regime.         
      The   country   is   also   prone   to   mining   disasters  
      and  other  environmental  problems.    Based  on  
      the  data  compiled  by  Newsbreak,  10  out  of  24  
      mining   comnpanies   with   projects   included   in  
      the   priority   list   of   the   Philippine   government  
      were  involved  in  mining  accidents  or  were  the  
      subject   of   pollution   investigation   for   the   past  
      two  decades.12  

        The   Philippines   has   already   experienced  
        environmentally   devastating   mining   disasters  
        such   as   the   1996   Marcopper   tragedy   in  
        Marinduque   (the   6th   worst   mining   disaster  
        in   the   world),   which   killed   marine   life   in   the  
        26-­kilometer   waterway   and   flooded   farmlands  
        and   villages   along   its   banks,   leaving   a   clean-­
        up   cost   of   US$80   million.   The   combination  
        of   risks   involved   in   mining   operations   and  
        unpredictable   bad   weather   (such   as   strong  
        typhoons)  will  be  a  double  whammy  of  catastrophes  waiting  to  happen  that  
        will  cost  not  just  environmental  sabotage  but  worst,  cost  human  lives.  

        Mining  impacted  communities,  due  to  the  losses  of  forests  and  other  natural  
        barriers   to   typhoons,   are   also   the   most   vulnerable   to   hydro-­meteorological  
        hazards.  Any  investment  by  the  local  and  national  government  for  sustainable  
        development,   millennium   development   goals,   poverty   alleviation,   and   even  


     Alyansa Tigil Mina                                                                            13
infrastructures   can   be   easily   wiped   out   by   a   single   bursting   of   a   mining  
            dam  such  as  Tapian  Pit  in  Marinduque,  which  is  a  continuing  threat  to  the  
            safety  of  more  than  50,000  inhabitants  in  the  low-­lying  villages.  Worst,  the  
            contaminated   mine   tailings   will   destroy   all   the   biota   of   Tablas   Strait,   the  
            common  waters  of  Romblon,  Mindoro,  Marinduque,  Batangas,  and  Quezon  
            provinces,  which  is  also  part  of  the  Verde  Island  Pass  Marine  Corridor,  the  
            “center  of  the  epicentre  of  the  marine  biodiversity  of  the  world.”

   5.   Social   conflicts,   human   rights   violations   and   killings   in   mining-­hosted  
        communities  have  escalated.  Human  rights  violations  have  been  documented,  
        and   one   case   has   even   been   elevated   and   discussed   already   at   the   UN  
        Commission   on   the   Elimination   of   Racial   Discrimination   or   UNCERD.             
        In   August   2009,   two   Subanon   leaders   –   Timuay   Boy   Anoy   and   Timuay  
        Noval  Lambo  –  were  heard  by  UN  officials,  because  of  the  complaint  filed  
        by   the   Subanon   against   Canada-­based   mining   company   Toronto   Ventures,  
        Incorporated  (TVI).  To  date,  T VI  has  been  forced  to  recognize  the  legitimacy  of  
        Timuay  Boy  Anoy’s  leadership,  but  the  full  implementation  of  the  UNCERD  
        recommendation  has  not  been  accomplished  by  the  Philippine  government.  

              Last  January  10,  2011,  the  Commission  on  Human  Rights  issued  its  resolution  
              on   the   complaint   of   farmers   and   indigenous   peoples   against   Oceana   Gold  
              Philippines,  Inc.  (OGPI).    The  CHR  established  that:  i)  OGPI  violated  the  
              right  to  residence,  the  right  to  adequate  housing  and  property  rights  of  several  
              residents  in  (barangay)  Didipio  (Kasibu,  Nueva  Vizcaya);  ii)  OGPI  violated  the  
              right  to  freedom  of  movement  and  the  right  not  to  be  subjected  to  arbitrary  
              interference  with  the  home  of  the  people  in  Didipio;  iii)  OGPI  violated  the  
              right  to  security  of  persons  of  the  people  in  Didipio;  iv)  OGPI  violated  the  
              indigenous  community’s  right  to  manifest  their  culture  and  identity;  v)  OGPI  
              must  exercise  great  caution  in  exploiting  the  water  resource  of  Didipio,  possibly  
              endangering  the  community’s  fundamental  right  to  access  to  clean  water;  and  
              vi)   the   PNP   violated   its   own   operational   procedures   during   the   October   2  
              incident   carrying   high-­powered   firearms   and   by   applying   unnecessary   and  
              unreasonable  force.13    

              The   CHR   resolution   has   recommended   that   the   government   withdraw   the  
              FTAA  granted  to  the  foreign  company  (OGPI)  in  view  of  the  gross  violations  
              of  human  rights  it  has  committed.

              As  of  April  2011,  at  least  seven  (7)  anti-­mining  activists  have  sacrificed  their  lives  
              in  defense  of  their  land  and  natural  resources.    In  October  3,  2007,  Councilor  
              Armin  Marin  from  San  Fernando,  Sibuyan  Island  (Romblon)  was  shot  dead  

                                                                                                                   -


14                     2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
while  leading  a  mobilization  against  the  entry  of  workers  from  Sibuyan  Nickel  
       Properties   Development   Corporation   (SNPDC).      In   December   23,   2008,  
       Fernando  Sarmiento,  Chairperson  of  Panalipdan-­Southern  Mindanaon  was  
       killed.    He  was  leading  the  local  organizations  against  the  exploration  activities  
       of   PhilCo   Mining   Corporation   in   Compostella   Valley.      In   March   9,   2009,  
       Eliezer  “Boy”  Billanes  was  shot  dead  at  the  public  market  of  Koronadal  City  
       in  South  Cotabato.    He  was  a  leading  figure  against  the  mining  operations  of  
       Xstrata-­Sagitarious   Mines,   Inc   in   Tampakan,   South   Cotabato.      In   February  
       10,   2010,   Barangay   Captain   Ricardo   Ganad   from   Poblacion   3,   Victoria,  
       Oriental  Mindoro  was  shot  dead.    Ganad  was  President  of  the  Association  
       of   Barangay   Captains   (ABC)   in   Victoria,   and   the   most   outspoken   critic   of  
       mining   in   the   province.   In   March   1,   2010,   Gensun   Agustin   from   Buguey,  
                                                               Cagayan   Valley,   was   shot   dead  
                                                               while   riding   his   motorcycle,   on  
                                                               his  way  back  home  from  a  forum  
                                                               where   they   discussed   strategies  
                                                               on   how   to   strengthen   the   anti-­
                                                               mining  movement  in  their  area.         
                                                               In   January   24,   2011,   Dr.   Gerry  
                                                               Ortega,  broadcaster,  veterinarian  
                                                               and   environmentalist,   was   shot  
                                                               dead   in   Puerto   Princesa   City,  
                                                               Palawan.      Aside   from   being   a  
                                                               project   manager   of   the   Bantay-­
                                                               Kalikasan   of   the   ABS-­CBN  
                                                               Foundation,   he   was   also   a  
                                                               staunch   critic   of   the   on-­going  
                                                               mining   projects   in   Palawan.  
       Lastly,  indigenous  leader  Nang  Florita  Caya,  who  was  shot  at  the  back  of  her  
       head  in  April  27,  2011,  instantly  killing  her.  

         These   are   just   some   of   the   documented   extra-­judicial   killings   and   human  
         rights   violations   committed   against   activists   environmentalists   who   have  
         passionately  opposed  destructive,  large-­scale  mining  in  the  Philippines.

   6.   Weakening   of   local   autonomy.      As   of   March   30,   2011,   at   least   twenty-­two  
        (22)  local  government  units  have  passed  ordinances,  resolutions  and  executive  
        orders  opposing  the  entry  or  declaring  a  moratorium  on  mining  operations  in  
        their  territories.    The  most  notable  ones  include  the  i)  Provincial  Environment  
        Code  of  the  Province  of  South  Cotabato  which  has  a  ban  on  open-­pit  mining,  
        ii)   the   Provincial   Resolutions   of   the   two   Mindoro   provinces   (Oriental   and  
        Occidental),   which   put   a   25-­year   moratorium   on   any   large-­scale   mining  
        operations,  and  iii)  Provincial  resolution  of  Marinduque  declaring  a  50-­year  

     Alyansa Tigil Mina                                                                               15
moratorium  on  mining.    Other  LGUs  with  similar  measures  include  the  three  
           Samar   provinces,   the   three   municipalities   of   Sibuyan   island   in   Romblon,  
           towns  in  Davao  Oriental,  Province  of  Iloilo,  Puerto  Princesa  City,  Tacloban  
           City,  Zambales,  Bulacan  and  Quezon.    The  DENR  and  the  Chamber  of  Mines  
           have   erroneously   portrayed   this   as   defiance   of   local   governments   against   a  
           national   policy.      It   may   be   more   accurate   to   describe   this   as   a   dissonance  
           between  the  implementation  of  two  national  laws—the  Philippine  Mining  Act  
           of  1995  and  the  Local  Government  Code  of  1991.

      7.   There   are   weak   regulatory   and   governance   mechanisms   in   the   mineral  
           industry.      The   DENR   does   not   have   enough   technical   and   personnel  
           capacities   to   adequately   address   the   rigorous   demands   of   the   mineral  
           industry.      There   is   no   effective   “Cost-­Benefit   Analysis”   that   will   determine  
           the  best  use  of  the  land.  In  this  absence,  there  is  little  evidence  that  the  “net  
           effect”   of   the   mining   industry   will   be   positive   for   the   Philippine   economy,  
           let   alone   contribute   to   poverty   reduction.   The   Philippines   does   not   have   a  
           National   Industrialization   Plan.   The   downstream   industry   of   minerals   and  
           metals  is  practically  undeveloped,  with  no  blueprint.    The  Corporate  Social  
           Responsibility  framework  of  the  Chamber  of  Mines  continues  to  be  a  work  
           in   progress,   while   the   destruction   of   biodiversity,   cultural   displacement   of  
           indigenous  peoples  and  escalation  of  social  conflicts  in  mining  areas  pursue.    

   8.   The  myth  of  “responsible  mining”.    The  global  and  local  mining  industry  
        suffered  from  the  backlash  of  its  attempt  to  re-­package  itself  as  “sustainable  
        mining”.      Environmental   groups,   human   rights   groups,   think-­tanks   and   IP  
        support   groups   exposed   this   “re-­labeling”   approach.      Consequently   finding  
        itself  unable  to  respond,  the  mining  industry  had  to  contend  itself  with  the  

16                   2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
branding   of   “responsible   mining”.      The   framework   of   responsible   mining  
 is   drawn   from   the   so-­called   ‘best   practices’   of   various   mining   operations  
 happening   simultaneously   in   different   countries.   BUT   this   model   has   not  
 been  successfully  closed  or  “looped-­in”  in  one  single  operation  in  a  specific  
 area.  Moreover,  no  large-­scale  mining  operation  has  completed  the  whole  cycle  
 of  the  model  yet.  ATM  believes  that  the  concept  of  responsible  mining  is  a  
 weak  model,  because  it  a)  relies  on  voluntary  compliance  of  large-­scale  mining  
 companies;  b)  highly  depends  on  the  ability  of  the  government  to  enforce  and  
 implement   the   safeguards   articulated   in   national   laws   and   policies;   c)   does  
 not  address  the  issue  of  corporate  and  state  graft  and  corruption,  a  scenario  
 that  is  not  totally  insulated  in  the  extractive  industries;  and  d)  there  is  token  
 recognition   of   safeguards   (participatory   process,   free   prior   and   informed  
 consent,   Environmental   Impact   Assessment).      Furthermore,   the   industry’s  
 track  record  has  earned  enormous  social  distrust,  which  does  not  adhere  to  
 the  elements  of  ‘responsible  mining’,  and  there  are  evidences  that  such  illegal,  
 sub-­standard,   unethical,   dirty   and   unsustainable   practices   in   the   mining  
 industry   continue,   despite   the   effort   to   peddle   the   concept   of   “responsible  
 mining”.




Alyansa Tigil Mina                                                                            17
POLICY	
 RECOMMENDATIONS

      1.   The   new   MTPDP   (2011-­2016)   must   drop   the   priotization   of   revitalizing  
           the   mineral   industry.      EO   270-­A   (Revitalization   of   the   Philippine   Mining  
           Industry)  must  be  revoked  immediately.    Chapter  10  of  the  MTPDP  is  a  failure  
           in   participatory   processes,   when   the   CSO   inputs   on   the   very   controversial  
           mining   issues   were   watered   down,   re-­phrased   neutrally   or   even   outright  
           deleted  in  whole  paragraphs.    Numerous  studies  have  showed  that  mining  has  
           not   contributed   significantly   to   economic   growth   in   terms   of   tax   revenues,  
           substantial  investments,  or  employment.    It  has  too  many  incentives,  and  is  
           suffering   from   tax   undercollection   and   uneven   distribution   on   benefits   to  
           major  stakeholders,  even  among  government  agencies.    

              In   fact,   it   is   not   difficult   to   trace   that   there   are   strong   inconsistencies   in  
              the  new  MTPDP  when  mining  is  overlaid  with  the  policy  to  push  for  rural  
              development.    Mining  will  not  bring  “inclusive  growth”  as  indigenous  peoples  
              access   to   their   ancestral   domains   and   natural   resources   are   constrained,  
              human  rights  are  violated,  biodiversity  destroyed,  local  autonomy  is  weakened  
              and  graft  and  corruption  left  unattended.    Finally,  revitalization  of  the  mining  
              industry  goes  against  Points  #  15  and  16  of  the  President’s  Social  Contract  to  
              the  Filipino  people.




18                      2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
  2.   The  government  must  adopt  a  policy  of  “the  whole  Philippines  is  not  open  
        to   mining,   unless   certain   conditions   (e.g.,   asset   reform,   social   justice,   cost-­
        benefit  analysis,  etc.)  reveal  that  extracting  the  mineral  is  the  best  use  and  most  
        economically  beneficial  option.    There  are  several  areas  in  the  Philippines  –  
        given  their  topography,  geo-­hazard,  fragile  ecology,  economic/productive  use,  
        cultural  value  or  current  land  use  –  are  not  suitable  or  even  directly  in  conflict  
        with   mining.      For   large-­scale   mining   to   pursue,   a   Cost-­Benefit   Analysis  
        (CBA)   must   be   completed   for   all   current   mining   projects   and   new   mining  
        applications.    The  CBA  must  take  into  account  all  factors  that  will  be  affected  
        by  the  mining  project,  including  ecological  services,  cultural  and  social  values,  
        just   compensation,   and   reasonable   comfort.      Unless   the   CBA   shows   a   net  
        positive  impact,  the  mining  contract  must  either  be  withdrawn  or  reviewed.    

         In  the  interim,  the  government  must  declare  several  areas  in  the  Philippine  
         territory  as  “No-­Go  Zones”  for  mining  and  other  extractive  industries.    The  
         basis  and  justifications  for  such  declarations  are  i)  embedded  in  several  national  
         laws,   ii)   reflected   in   international   treates   and   multi-­lateral   environmental  
         agreements   that   the   Philippines   have   acceded   to,   and   iii)   initiative   or  
         concurrence  of  local  governments.      

   3.   The  current  Philippine  Mining  Act  of  1996  (RA  7962)  is  f lawed,  given  that  its  
        conflicts  or  inconsistencies  with  other  laws  is  clearly  manifested.    Enforcement  
        issues  and  weak  governance  and  regulatory  mechanisms  are  pervasive.    A  new  
        mineral  management  law,  that  promotes  a  balance  of  mining  implementation  
        with  other  laws  (IPRA,  NIPAS,  LGC,  AFMA,  EIA/EIS,  Climate  Change  Act,  
        etc.),   must   be   enacted.   The   government   must   certify   the   pending   bills   on  

     Alyansa Tigil Mina                                                                                 19
mining  in  Congress  as  urgent  (HB  207  and  HB  3673).    The  new  mining  law  
            must  ensure  that  the  conservation  of  non-­renewable  mineral  resources  is  for  
            the  benefit  of  both  present  and  future  generations  of  Filipinos.  This  can  be  
            done  by  adopting  a  sustainable,  rational,  needs-­based  minerals  management  
            policy,  geared  towards  effective  utilization  of  mineral  resources  for  national  
            industrialization  and  modernization  of  agriculture.

   4.   As   the   findings   of   several   researches   reveal,   too   much   risk   and   negative  
        impacts  are  being  introduced  by  the  current  policy  on  aggressively  promoting  
        large-­scale  mining.  It  is  not  enough  that  mining  applications  are  suspended.  A  
        moratorium  on  large-­scale  mining  operations  must  be  immediately  imposed  
        so  that  carrying  capacities  of  ecologies  can  be  improved.  Permits  for  pending  
        applications  must  not  be  issued,  and  all  large-­scale  mining  operations  that  have  
        questionable  circumstances  (resistance  of  communities,  opposition  of  LGUs,  
        flawed  procedures,  etc.),  must  be  immediately  suspended  and  reviewed.    

              Government   must   immediately   act   on   recent   recommendations   and  
              resolutions  that  are  directly  related  to  large-­scale  mining:  

               i)   Commission  on  Human  Rights  (CHR)  resolution  last  January  10,  2011,  
                    on  human  rights  violations  of  Oceana  Gold  Philippines,  Inc.  (OGPI)  
                    and  the  recommended  withdrawal  of  the  mining  contract;  

              ii)   The   recommendation   of   the   Rapu-­Rapu   Fact   Finding   Commission  
                    (RRFFC)  last  August  2006,  recommending  the  withdrawal  of  the  ECC  
                    and  suspension  of  the  MPSA  of  the  Rapu-­Rapu  Polymetallic  Project  in  
                    Rapu-­Rapu,  Albay;  

20                   2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
         iii)   Revocation   of   the   ECC   of   Intex   Mining   Corporation   in   Oriental  
                 Mindoro,  issued  by  DENR  last  November  2009;  

          iv)   Recommendations   of   the   UN   Commission   on   the   Elimination   of  
                all   forms   of   Racial   Discrimination   (UNCERD)   issued   last   October  
                2009   and   reitereated   last   August   2010,   to   ensure   the   protection   and  
                promotion  of  the  rights  of  indigenous  peoples;  

           v)   Temporary  Environmental  Protection  Orders  (TEPOs)  issued  by  courts  
                and  writs  of  kalikasan  granted  by  courts.

   5.   The  principles  of  local  autonomy  must  be  respected.    LGUs  who  have  passed  
        resolutions  and    ordinances  banning  mining  or  issuing  moratoriums  against  
        mining   in   their   localities   must   be   respected   and   upheld.      The   Department  
        of  the  Interior  and  Local  Government  and  the  Department  of  Justice  must  
        review  and  upgrade  their  position  that  a  “2-­out-­of-­3”  ruling  of  LGUs  giving  
        permission   is   equivalent   to   “consent”   or   endorsement   of   the   LGU.      Both  
        should  be  regarded  as  what  they  are  –  “opinions”.    Sec.  26  and  27  of  the  Local  
        Government  Code  (LGC)  must  be  absolutely  respected,  where  it  states  that  
        ALL   LGUs   to   be   affected   by   national  
        development   projects   (including  
        mining)  must  give  their  consents.

   6.   Should  the  government  decide  to  retain  
        its   misplaced   policy   of   aggressively  
        promoting   large-­scale   mining,   several  
        structural  and  policies  must  be  put  in  
        place,   prior   to   granting   of   application  
        permits   and   actual   mining   contracts.       
        These  include:

         6.a   Finalization   of   a   National  
               Industrialization   Plan,   that   will  
               indicate  the  actual  minerals  and  
               metal  needs  of  the  country,  that  
               will  contribute  to  the  realization  
               of  this  industrialization  plan.

         6.b   Complete   an   accurate   and  
               realistic   inventory   of   the   actual  
               mineral   reserves,   pin-­pointing  
               the   specific   locations,   types   and  
               values   of   the   minerals,   that   will  
               be  potentially  extracted.

     Alyansa Tigil Mina                                                                              21
          6.c   Produce  a  mineral  extraction  plan  that  will  respond  to  the  actual  needs  
                 specified  in  the  National  Industrialization  Plan,  while  considering  the  
                 other   alternative   (and   more   beneficial)   uses   of   the   targeted   mineral  
                 lands.

      7.   The  government  must  sign-­up  to  the  Extractive  Industry  Transparency  Initiative  
           (EITI),  in  order  to  practice  and  implement  transparency  and  accountability  of  
           mining  companies  operating  here  in  the  Philippines.    

   8.   An   EO   must   be   issued   by   the   President   not   to   allow   mining   operations   in  
        areas  that  are  scientifically  identified  as  important  biodiversity  areas  (IBAs),  
        watershed  areas  and  natural  forests.  These  areas  are  aside  from  the  protected  
        areas  system  already  covered  by  NIPAS.    The  EO  must  also  include  provisions  
        that  consent  of  LGUs  and  IPs,  whenever  applicable,  that  are  of  paramount  
        requirements  before  mining  is  permitted.

   9.   The  government  should  demonstrate  
        its   capacity   to   uphold   the   right   of  
        the   people   to   a   balanced   ecology   by  
        ensuring   to   expedite   the   prosecution  
        of  all  cases  related  to  large-­scale  mining  
        incidents   such   as   the   Marcopper  
        tragedy  of  1996  in  which  all  cases  filed  
        in   relation   thereof   have   not   reached  
        even  the  trial  stage  15  years  after.




22                 2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
Alyansa Tigil Mina     23
ATM	
 Assessment	
 of	
 PNoy	
 1st	
 Year
This   assessment   attempts   to   assess   the   performance   of   the   PNoy   administration  
in  its  first  year  in  relation  to  the  issue  of  large-­scale  mining.    A  10-­point  indicator  
system   is   used   as   a   barometer   to   determine   the   success   or   failure   of   the   Aquino  
government  in  addressing  the  key  concerns  revolving  the  revitalization  of  the  mining  
industry  in  the  Philippines.    The  indicator  system  is  a  combination  of  reviewing  the  
administration’s  responses  and  delivery  of  commitments,  along  the  lines  of  1)  the  
main  calls  of  the  ATM  campaign;  2)  the  initial  set  commitments  of  the  DENR  under  
Sec.  Ramon  Paje;  3)  introduction  of  reforms  in  key  government  agencies  and  offices  
directly  related  to  mining  issues;  and  4)  the  different  scenarios  unfolding  in  key  sites  
of  struggles  within  the  ATM  campaign.    The  matrix  below  presents  the  indicators  
and  a  brief  explanation  of  the  parameters  in  the  assessment  exercise.


 1.   Scraping  of  the  Mining  
      Act  of  1995  (RA  7942)  and  
      enactment  of  a  new  mining  
      law
 2.  


 3.  
           Mining                                      on  mining
 4.  




   Enact  the  Alternative  Minerals  Management  Bills!




24                  2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
5.  

 6.  




 7.  
                                              b.   Arangkada  2011

 8.  

         of  mining


 9.  




 10.  



As  with  other  assessments  of  other  sectors  on  the  performance  of  the  first  year  of  
the  PNoy  administration,  it  is  critical  that  the  policies  and  actions  of  the  previous  
government  be  used  as  reference.  

The   GMA   administration   shifted   the   government   policy   from   “tolerance“   to  
“aggressive  promotion“.  This  led  to  the  streamlining  of  mining  applications  process,  
and  the  increased  number  of  approved  mining  contracts.    In  turn  this  resulted  in  
amplified  social  issues,  as  indigenous  peoples  were  physically  and  culturally  displaced  
and   the   key   biodiversity   areas   of   the   countries   were   directly   threatened.      Social  
tensions   also   escalated,   as   local   communities,   including   many   local   government  
units,  mounted  strong  resistance  against  the  entry  or  expansion  of  mining  projects.             
On   the   other   hand,   the   asset   reform,   social   justice   and   sustainable   development  
tracks  of  government  was  effectively  set  aside.  

Upon  assumption  of  the  Aquino  administration,  mining  activists,  together  with  the  
broader  environmental  movement,  held  on  to  high  expectations  for  reforms.    This  
                                                                                             
expectation  has  since  then  been  downgraded  to  “guarded  optimism“  after  the  first  
year  of  PNoy’s  government.  

        Alyansa Tigil Mina                                                                             25
Several  bills  on  mining  have  been  filed  with  the  15th  Congress.    These  are  HB  206  
(Alternative  Mining  Bill),  HB  3763  (Philippine  Mineral  Resources  Act)  and  HB  4315  
(People’s  Mining  Bill).    Despite  significant  support  from  senior  and  newly-­elected  
representatives,  to  date  however,  no  committee  hearings  have  been  conducted.    No  
parallel  bill  has  been  filed  at  the  senate.    The  prevailing  impression  is  that  the  Liberal  
Party  is  supportive  of  a  new  mining  law.    The  mining  bills  have  not  been  prioritized,  
and  there  is  no  indication  that  it  will  be  certified  as  urgent  by  President  Aquino.    No  
clear  directives  to  push  for  the  mining  bills  from  the  Office  of  the  President  is  seem  
to  be  forthcoming,  nor  were  there  indications  that  mining  issues  were  discussed  in  
the  LEDAC,  except  during  the  finalization  stage  of  the  draft  PDP.  On  this  item,  the  
PNoy  administration  gets  a  failing  mark  

ATM  has  sent  at  least  two  formal  communications  to  the  Office  of  the  President,  
urging  the  immediate  revocation  of  EO  270-­A  or  the  Revitalization  of  the  Philippine  
Mining  Industry.    ATM’s  position  is  that  this  is  a  legacy  of  the  GMA  administration,  
and  as  a  misplaced  economic  policy,  has  no  rightful  place  in  the  “tuwid  na  daan”.            
The  Office  of  the  President  has  twice  responded,  informing  ATM  that  the  matter  has  
been  referred  to  the  DENR  Sec.  Ramon  Paje,  and  that  his  official  recommendation  
is   being   awaited,   with   complete   staff   work.      To   the   best   of   our   knowledge,   no  
recommendation  has  been  sent  to  the  OP  on  this  matter.    There  is  a  move  to  sign  a  
new  EO  on  mining,  and  contains  the  controversial  proposal  of  Sec.  Paje  to  declare  23  
mineral  reservations.    The  official  position  of  ATM  has  been  relayed,  opposing  this  
provision  in  the  draft  EO,  and  counter-­proposing  a  “no-­go  zone”  policy  which  will  
prohibit  mining  in  key  biodiversity  areas  and  fragile  island  ecosystems,  as  strongly  
positioned  by  HARIBON,  one  of  the  ATM  convenors.    A  recent  report  from  the  
House  Committee  on  National  Cultural  Communities  (IPs)  has  recommended  that  

26                2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
ancestral  domains  be  included  as  “no-­go  zones”  for  mining.    For  this  item,  the  PNoy  
administration  is  disappointing.  

No  policy  pronouncement  for  a  moratorium  on  mining  has  been  declared  by  the  
Aquino  administration.    House  Resolution  528  has  been  filed  at  Congress,  authored  by  
Rep.  Teddy  Brawner  Baguilat  from  the  lone  district  of  Ifugao,  calling  for  such  a  mining  
moratorium.    This  has  not  been  acted  upon  by  Congress.    PNoy  gets  a  failing  mark  on  this.      
In   the   first   few   engagements   of   civil   society   with   Sec.   Paje,   one   of   his   initial  
commitments  was  public  disclosure  of  mining  contracts.    After  several  attempts  and  
months  in  waiting,  photocopies  of  the  contracts  of  the  23  priority  mining  projects  
were  sent  to  the  ATM  office.    For  a  limited  time,  these  were  also  available  in  the  
DENR  website.    Since  then,  the  list  of  mining  applications  and  approved  mining  
contracts  are  downloadable  from  the  internet.    This  is  an  improvement.    However,  
the  critical  portions  of  mining  documents  —  EIA  reports,  feasibility  studies,  ECCs  —  
still  remain  inaccessible.    Maps  of  mining  tenements  are  likewise  almost  impossible  
to  procure.    ATM  has  proposed  that  “midnight  mining  contracts”  be  subjected  to  
review.    This  has  not  been  done.    The  DENR  has  done  an  internal  audit  of  almost  
2,000  mining  contracts,  and  they  reported  that  they  have  canceled  almost  750  of  
these  for  their  non-­performance.    However,  they  have  also  recommended  the  pursuit  
of  more  than  125  mining  applications  and  live  contracts.    Commendation  for  the  
effort   of   public   disclosure   is   in   order.      It   is,   however,   inadequate,   and   therefore,  
disappointing.




     Alyansa Tigil Mina                                                                                     27
With   regard   to   the   “legacy  
problems”   of   mining   tragedies  
and   disasters   in   the   past,   after  
one  year  of  PNoy  administration,  
very   little   has   been   actually  
achieved.      Assessment   for   the  
rehabilitation   of   the   Bagacay  
Mine  has  been  completed.    But  
that’s   about   it.      There   is   not  
enough   capacities,   resources  
and   resolve   to   address   the  
abandoned   and   idle   mine   sites.      The   Marcopper   tragedy   in   Marinduque   has   not  
been  addressed.    There  is  no  public  information  about  the  Mabatas  Tailings  Dam.  
Finally,  the  assessment  of  the  7  abandoned  mines  has  not  been  completed.    For  this  
item,  the  DENR  and  PNoy  get  a  failing  mark.  

In  terms  of  engaging  the  government,  civil  society  is  relieved  to  witness  and  be  part  
of  remarkable  accomplishments.    Significant  reforms  in  the  National  Commission  
on   Indigenous   Peoples   (NCIP),   the   Commission   on   Human   Rights   (CHR)   and  
the   National   Anti-­Poverty   Commission   (NAPC)   were   clearly   pursued.      These  
bodies   have   significant   contributions   in   resolving   conflicts   in   mining-­affected  
                                   communities,  particularly  in  the  case  of  indigenous  
                                   peoples.      Numerous   resolutions   have   been   issued  
                                   including   cases   in   Nueva   Vizcaya   and   Palawan.         
                                   Assessments   and   evaluations,   including   financial  
                                   and  legal  audits  of  the  performance  and  outputs  of  
                                   these  agencies  are  well  underway,  possibly  pointing  
                                   to  even  greater  reforms.    Some  fruitful  engagement  
                                   with   the   Climate   Change   Commission   (CCC)   was  
                                   also   recorded.      Even   the   DSWD   have   extended   its  
                                   interest  to  engage  civil  society  to  support  initiatives  
                                   for  IPs  and  rural  poor  impacted  by  mining.  To  this  
                                   end,  this  item  can  be  described  as  a  successful  effort,  
                                   and  gets  a  high  passing  mark.  

                                       ATM  has  actively  engaged  the  formulation  process  of  
                                       the  Philippine  Development  Plan  (2011-­2016).    The  
                                       engagement   can   be   illustrated   as   a   running   battle,  
                                       with  the  civil  society  trying  its  best  to  keep  up  with  
                                       the  intent  of  the  mining  industry  and  the  DENR  to  
                                       sustain  the  priority  status  of  mining  as  an  economic  
                                       policy.    Overall,  however,  the  process  of  crafting  the  
                                       new  PDP  can  be  described  as  participatory,  open  and  

28               2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
genuine.    Theoretically,  mining  has  been  downgraded,  with  its  role  characterized  as  
needing  to  comply  with  the  conservation,  protection  and  rehabilitation  policies  of  
the  government.    Meanwhile  the  Economic  Cluster  of  the  administration  continued  
to  pitch  mining  as  a  critical  industry,  effectively  inserting  it  as  one  of  the  investment  
priority   areas   of   the   Aquino   administration.      With   these   conflicting   aspects,   the  
PNoy  administration  is  given  a  unsatisfactory  rating.  

LRC-­KsK,  one  of  the  ATM  convenors,  has  eloquently  described  the  commendable  
behavior  of  several  LGUs,  in  their  assertion  to  say  no  to  mining  in  their  territorial  
jurisdiction.    Despite  the  continuous  policy  on  mining,  LGUs  have  gained  ground  
with  several  provinces  issuing  executive  orders  and  passing  resolutions  not  to  allow  
mining   and   effetively   withdrawing  
their   consent.      The   trailblazing            Sagittarius Mines, Inc. (SMI) of the Philippines, along with Australian-based Xstrata
effort   of   South   Cotabato   with   its         Copper (a subsidiary of the Swiss-British giant Xstrata Plc) and Indophil Resources NL,
                                                    also of Australia, is proposing a project that will impact the South Cotobato, Davao del Sur,
                                                    Sarangani and Sultan Kudarat provinces.
Provincial   Environment   Code   has               Mining in Tampakan will:
inspired   other   LGUs,   including                       Cause extensive physical disturbance of almost 10,000 hectares of forest lands

Zamboanga   del   Sur,   to   replicate                    that serve as the watersheds of the four provinces of South Cotabato, Sultan
                                                           Kudarat, Davao del Sur and Sarangani;

the  local  ordinance.    On  the  other                   Leave 1.65 billion tons of waste rock and 1.1 billion tons of tailings in an area
                                                           of high seismic activity and fault lines;

hand,   while   there   will   be   few   to               Affect the water resources of communities, as it will impact the head waters of 7
                                                           river systems, affecting water supply reserved for residential and irrigation
question  the  capability  and  integrity                  purposes;


of  Sec.  Jesse  Robredo  of  the  DILG,                   This mining project will use up thousands of liters of water per second;

                                                           Cut down 4,000 hectares of forests including old growth forests, which are
the   anti-­mining   movement   was                        initial components of the protected areas system (NIPAS);


shocked   when   he   issued   a   Memo                    Displace more than 2,600 people belonging to the B’laan communities; the
                                                           mine site will also affect the ancestral domains, covered by CADT 102, CADT 108,
                                                           CADT 72 and CADC 74;
Order   instructing   the   Provincial                     It will also undermine the Provincial Environment Code of South Cotabato’s ban on

Government   of   South   Cotabato   to                    open pit mining signed last June 29, 2010.


review  a  provision  on  its  Provincial  
Environment   Code   that   banned  
open-­pit   mining   in   the   locality.      It  
should   be   mentioned   however,  
that  DILG  officials  have  in  general,  
remained   open   to   dialogue   and  
negotiations   on   a   case-­to-­case  
basis.      Conscious   of   the   principle  
of   decentralization   and   local  
autonomy,  ATM  gives  LGUs  a  high  
grade,   while   disappointed   with   the                             *all data were derived from SMI’s own draft Environmental Impact Statement last April 2011


misinformed  stance  of  the  DILG.  

Indigenous  peoples  bear  the  brunt  of  the  negative  impacts  of  mining.    More  recent  
maps  produced  by  ATM  members  reveal  that  more  ancestral  domains  are  threatened  
by  mining,  as  compared  to  available  data  in  2005.    This  scenario  is  compounded  
by   the   questionable   issuance   of   FPIC   (free,   prior   and   informed   consent).      It   is  
interesting  to  note  that  remedial  measures  have  been  initiated.    A  review  of  the  2006  

       Alyansa Tigil Mina                                                                                                                                     29
FPIC   guidelines   was   recently   concluded,   and   civil   society   is   awaiting   with   much  
anticipation   the   results   of   these   exercise,   looking   forward   to   substantial   reforms.  
                                                                                                         
Credits    go  to  the  newly-­installed  NCIP  commissioners  and  the  House  Committee  
on  NCC  (IPs).    While  cases  involving  conflicts  in  ancestral  domains  versus  mining  
remain  considerable,  there  are  enough  openings  to  be  hopeful.    But  these  are  only  
enough  for  a  passing  mark.

Actions  of  the  PNoy  administration  to  site-­specific  cases  reveal  ambivalence  regarding  
the   mining   issue.      On   one   hand,   favorable   action   has   been   observed   with   the  
decision  to  cancel  mining  contracts  in  Palawan,  and  the  public  recognition  that  the  
stand  of  the  LGUs  not  to  accept  mining  is  legitimate,  such  as  the  cases  in  Romblon  
and  Oriental  Mindoro.    The  situation  in  Tampakan,  South  Cotabato,  seems  to  be  
a   problematic   for   the   government,   though,   as   the   government   has   sent   signals   to  
foreign  investors  that  the  national  government  is  ready  to  intervene,  when  the  right  
time  comes.    Using  the  escalating  tensions  being  reported  by  the  Sites  of  Struggles  
as  a  barometer,  it  is  safe  to  say  that  while  some  forms  of  victories  in  some  sites  have  
been  gained,  this  is  not  a  general  rule.    For  this  matter,  a  rating  of  disappointment  
is  justified.

Summary	
 Rating	
 of	
 PNoy	
 Administration	
 on	
 the	
 Mining	
 Issue



  1.   Scraping  of  the  Mining  Act  of  1995  (RA  7942)  and  
       enactment  of  a  new  mining  law




30                2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
PRESS  RELEASE
                                     September  19,  2011



Greens	
 ask:	
 If	
 DENR	
 doesn’t,	
 who	
 will?
A   synergy-­promoting   coalition   of   nearly   30   organizations   and   networks   working  
on   various   environmental   concerns   has   expressed   extreme   disappointment   in  
the   DENR.      The   Green   Convergence   for   Safe   Food,   Healthy   Environment   and  
Sustainable   Economy   (GC)   said   that   while   DENR   is   supposed   to   protect   the  
environment,  recent  news  reports  are  proving  the  opposite.

The  group  disclosed  that  among  the  series  of  news  that  had  drawn  their  ire  was  the  
most   recent   pronouncement   of   DENR   Sec.   Ramon   Paje   about   the   possibility   of  
lifting  the  ban  on  mining  applications  and  reconsidering  even  those  that  had  been  
rejected.  GC  said  Paje  has  clearly  sided  with  the  mining  industry  versus  the  will  of  
the   Filipino   people   who   have   persistently   asked   that   this   destructive   business   be  
limited  if  not  banned  completely.    

Paje   has   also   reportedly   recommended   that   areas   where   mining   companies   are  
operating   be   turned   into   mineral   reserves   so   that   the   government   can   collect   a  
higher  percentage  of  the  companies’  income.  GC  pointed  out,  however,  that  while  it  
may  seem  like  a  good  idea,  a  closer  look  would  reveal  that  its  downside  far  outweighs  
its  potential  income  benefit.    

Fr.  Archie  Casey,  GC  Internal  Vice-­President,  explained,  “If  that  is  done,  the  mining  
company  would  have  rights  over  everything  in  the  area  and  not  be  subject  to  the  laws  
that  are  precisely  meant  to  protect  our  resources  -­-­  like  the  NIPAS  on  protected  areas,  
IPRA  on  the  rights  of  indigenous  peoples,  and  EO  23  on  the  logging  moratorium  
in  natural  and  residual  forests.    The  companies  would  also  have  the  right  to  all  the  
water  in  their  reserve,  to  the  detriment  of  communities  living  there.”    The  priest,  who  
represents  the  church-­based  JPICC-­AMRSP  in  the  Green  Convergence,  concluded,  
“All  of  these  are  unacceptable.”  


     Alyansa Tigil Mina                                                                              31
Citing   a   separate   news   report   that   MMDA   Chair   Francis   Tolentino   planned   to  
revisit  incineration  as  a  garbage  solution  and  that  Paje  had  been  consulted  about  
it,  Marie  Marciano,  GC  External  Vice-­President  and  an  active  zero-­waste  advocate  of  
the  EcoWaste  Coalition,  remarked,  “Sec.  Paje  should  have  been  the  first  to  oppose  
this  move,  because  incineration  is  banned  under  the  Clean  Air  Act  to  protect  our  
people  and  environment  from  the  dioxins,  furans,  heavy  metals  and  other  toxic  by-­
products  of  incineration.”  

According   to   Marciano,   although   Chairman   Tolentino   gave   assurances   that   new  
technologies  can  keep  emissions  at  a  minimal  level,  there  is  no  safe  level  of  exposure  
to   some   of   these   highly   toxic   substances,   particularly   dioxin,   and   there   is   yet   no  
‘high   tech’   incinerator   that   can   completely   prevent   harmful   emissions.      “Besides,  
waste  can  be  converted  to  badly  needed  resources,  so  burning  waste  is  tantamount  
to  burning  money!”  she  emphasized.

The   group   also   lamented   an   earlier   report   that   Paje   had   recommended   the  
exploitation  of  the  West  Philippine  Sea  for  its  oil.  “Does  he  not  take  global  warming  
seriously?”  asked  GC  Secretary  Noemi  Tirona  of  the  Consumer  Rights  for  Safe  Food  
(CRSF).  

“He   should   be   the   first   to   advise   the   President   to   shift   away   from   the   fossil   fuel  
economy,  since  studies  have  clearly  shown  that  the Philippines  is  blessed  with  more  
than   enough   renewable   energy   sources   to   power   our   development   far   into   the  
future,”  she  said,  adding  further,  “Exporting  the  oil  for  economic  gain  is  not  worth  
the  suffering  and  losses  that  will  be  caused  by  climate  change.”  

Green  Convergence  believes  that  at  this  point  in  time,  when  the  environment  has  
been  so  devastated,  DENR  should  do  all  in  its  authority  to  prioritize  the  environment.  
                                                                                                     

“There   are   many   ways   by   which   we   can   advance   national   development   through  
programs  that  would  sustainably  utilize  our  natural  patrimony,”  declared  Dr.  Nina  
Galang,   GC   President,   who   also   revealed   that   their   coalition   had   been   pointing  
this   out,   dialoguing   with   Sec.   Paje   precisely   to   enjoin   him   to   show   bias   for   the  
environment.    “This  is  his  role  in  the  Cabinet;  raising  money  is  not,”  she  stressed,  
“and  if  DENR  does  not  speak  to  the  President  for  the  environment’s  protection,  
who  will?  “    

                                                        Reference:


                                                                   DR.  NINA  P.  GALANG
                                                                                  9296671  
                                                                             09178538841    

32                 2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
Alyansa Tigil Mina

Alyansa Tigil Mina (ATM) is an advocacy group and a people’s movement
that upholds the rights of the present and future Filipinos against the
persisting injustices related to large-scale mining.

The term “tigil-mina”
going against (to prohibit or ban) all kinds of mining. What ATM is
referring to, is stopping the policy regime on large-scale mining being
adopted by the Arroyo administration and the Department of Environment
and Natural Resources (DENR), which irrationally exploits mineral
resources – undermining the ‘real value of land’ (where minerals are found)
to Filipinos and promoting purely foreign-controlled and export-oriented
mining industry,
problems, poverty situation, environmental and other socio-political
concerns in our country.

ATM, formed in 2004, is a coalition of organizations and individuals from
mining-affected communities, NGOs, POs, church-based organizations
and academic institutions, that decided to disengage from the series of
consultations convened by the DENR regarding the revitalization of the
mining industry through the aggressive promotion of large-scale mining in
the country.

Much like the Bantay Mina coalition in the 1990s and the Peoples’ Call
presented at the Dapitan Initiative in 2002, ATM serves as a watchdog that

corporations/institutions, multinational mining corporations and other key
players to expose their wrongdoings and failures of the laws and policies,
their implementation and the practices involved in the mining industry.
Alyansa Tigil Mina




                Alyansa	
 Tigil	
 Mina	
 National	
 Secretariat
     #	
 973	
 Aurora	
 Blvd.	
 corner	
 Dapdap	
 St.,	
 Anonas,	
 Cubao,	
 Quezon	
 City	
 1109	
 Philippines	
 
                     Tel.:	
 +63	
 (02)	
 434.46.42	
 loc	
 27	
 	
  	
 	
 Fax:	
 +63	
 (02)	
 434.46.96	
 
                                                      Emails:  
        nc@alyansatigilmina.net             policy@alyansatigilmina.net             sos@alyansatigilmina.net
            Website:                               Facebook:                              Twitter:
     www.alyansatigilminat.net                 Alyansa  Tigil  Mina                    atm_philippines

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ATM Policy Paper on Mining in the Philippines

  • 2. Prepared by Alyansa Tigil Mina September 2011 Photos by Farah Sevilla, Jay Azucena, Denise Fontanilla & Bro. Martin Francisco
  • 3. Updated  September  2011* Summary The   economic   cluster   of   the   Aquino   administration   has   adopted   the   misplaced   policy  of  the  previous  adminsitration  to  revitalize  the  Philippine  industry.    Despite   the   numerous   studies   done   recently   showing   that   mining   has   not   contributed   significantly  to  the  Philippine  economy,  mining  has  been  included  in  the  industrial   priority   list   (Arangkada   2011),   and   the   Medium   Term   Philippine   Development   (ironically,  under  Chapter  10:  Environment  and  Natural  Resources).    It  is  ATM’s   position   that   such   policies   are   inconsistent   with   President   Aquino’s   Social   Contract   with   the   Filipino  People. The   performance   of   the   Philippine   mining   industry  is  dismal.  It  failed  to  deliver  on  its  promises   on   revenues,   investments   and   employment.     Its   contribution   to   the   Philippine   economy   is   relatively   insignificant   compared   to   Agriculture,   Fisheries   and   Forestry.     Adding   tourism   to   the   equation  (whose  operations  are  directly  impacted   by  mining),  then  you  have  an  imbalance. There  are  evidences  that  describe  the  seriousness   of   issues   lodged   against   large-­scale   mining.     These   include   threats   to   gains   in   asset   reform,   physical  displacement  and  cultural  dislocation  of   indigenous   peoples,   destruction   of   biodiversity,   inconsistency   with   the   new   laws   on   climate   change   and   disaster   risk   reduction,   escalation   of   Alyansa Tigil Mina   1
  • 4. social  conflicts  and  human  rights  violations,  undermining  of  local  autonomy,  weak   governance  and  regulatory  mechanisms,  and  the  myth  of  responsible  mining.  These   threats  are  more  than  enough  to  counter-­balance  the  claimed  benefits  of  large-­scale   mining,  and  will  possibly  result  in  negative  net  benefits  to  the  communities  and  the   country.  The  proposal   to  stop  mining  operations   in   protected   areas   is   a   welcome   initiative.  However,  it  is  easy  to  legally  comply  with  this,  because  National  Integrated   Protected  Areas  System  Law  (NIPAS  or  RA  7586)  defines  “protected  areas”  as  those   declared  by  the  President  or  Congress.    We  argue  that  there  is  mining  in  areas  of   high  biodiversity,  critical  watersheds  and  natural  forests,  that  have  not  been  declared   by  the  President  or  Congress,  and  thus  are  not  legally  defensible  if  such  an  Executive   Order  will  be  pushed. ATM   recommends   that   the   Aquino   administration   drops   the   policy   on   mining   revitalization   and   immediately   revoke   Executive   Order   270-­A.     The   government   must  also  adopt  a  “Cost-­Benefit  Analysis”  in  all  mining  projects.    In  the  absence  of   such,  certain  areas  of  the  Philippines  must  be  declared  as  “No-­Go  Zones”.    Enforcing   the  Mining  Act  of  1995  has  been  problematic,  and  given  its  inherent  flaws,  a  new   minerals   management   law   must   be   enacted.     A   rational   and   needs-­based   mineral   policy  must  be  put  in  place  in  the  interim,  anchored  on  a  National  Industrialization   Plan.    In  all  cases,  the  rights  of  indigenous  peoples,  just  and  equitable  sharing  of   benefits,  and  the  principles  of  local  autonomy  must  always  be  protected  and  upheld.     Finally,  the  government  must  ensure  that  transparency  and  accountability  are  firmly   embedded  in  the  mining  industry  and  govenment  agencies.     2       2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
  • 5. The current policy and its claimed basis The  Philippine  Mining  Act  of  1995  (RA  7942)  is  the  national  legislation  regulating   the   mining   industry   in   the   Philippines.     EO   270-­A   was   signed   last   September   2004,  establishing  the  revitalization  of  the  Philippine  mineral  industry.    In  effect,   the   Philippine   government   has   shifted   its   policy   from   “tolerance”   to   “aggressive   promotion”   of   the   mining   industry.     Thirty-­two   (32)   priority   large-­scale   mining   projects   have   been   pipelined   since   then,   aside   from   more   than   two   thousand   applications  for  mining  contracts  and  exploration  permits.    Relatedly,  government   has  put  its  support  to  the  mining  industry  in  terms  of  i)  fast-­tracking  the  application   and   permission   process,   ii)   watering   down   the   consent   process   for   indigenous   peoples,   iii)   weakening   local   autonomy   of   local   governments   to   resist   or   oppose   the  entry  of  large-­scale  mining  in  their  territories,  and  iv)  highlighting  mining  as  a   priority  in  the  Medium  Term  Philippine  Development  Plan  (MTPDP:  2004-­2010). The   Arroyo   administration   based   this   policy   shift   on   the   claimed   economic   benefits   dangled   by   the   mineral   industry.     There   was   pervasive   belief   in   the   previous  administration  that  a  revitalized  mining  industry  will  bring  in  significant   investments,  emplyment  and  revenues.  The  promises   have   included   i)   US$5-­7   billion   dollars   in   foreign   exchange   generation,   ii)   Php5-­7   billion   pesos   in   excise   tax   colletion,   iii)   239,000   indirect   and   direct   employment,  and  iv)  US$4-­6  billion  dollars  worth  of   investments.   The   Department   of   Environment   and   Natural   Resources   (DENR)   has   been   confronted   with   a   conflicting   role.     On   one   hand,   its   main   task   is   to   ensure   conservation,   protection   and   rehabilition   of   biodiversity   areas.     However,   it   is   also   expected   to   manage  and  regulate  utilization  of  natural  resources   and  is  required  to  implement  the  mining  policies.     Amidst   the   backdrop   of   an   attempt   to   sell   the   idea   of  “sustainable  mining”,  the  Philippine  government   equipped   the   mining   revitalization   policy   with   the   National  Minerals  Action  Plan  (NMAP).    Through  the   NMAP,  the  Philippine  mining  industry  was  depicted   as   compliant   with   the   sustainable   development   framework   by   identifying   social   development,   environmental   mitigation   and   economic  benefits  as  a  convergence  framework.    However,  as  international  opinion   was   consistently   debunking   the   concept   of   “sustainable   mining”,   the   Philippine   government  had  to  fall  back  on  the  concept  of  “responsible  mining”.    Responsible   Alyansa Tigil Mina   3
  • 6. mining,  as  showcased  by  the  Chamber  of  Mines  of  the  Philippines  (COMP)  espoused   “best  practices”  reflecting  the  key  elements  of:  i)  compliance  with  the  principles  of   sustainable  development,  ii)  built-­in  protection  for  indigenous  peoples,  iii)  ensuring   shared   benefits   of   mining   to   major   stakeholders,   and   iv)   compliance   with   strict   environmental  and  social  provisions. Performance of the revitalized mining policy In  a  Philippine  Institute  for  Development  (PIDS)  discussion  paper,  it  stated  that  in   an  18  year  period  (1990-­2008),  the  percent  share  of  Employment in the Mining and Quarrying Sector to Employment in All Industries  never  went  higher  than  0.65%.     The  highest  figure  was  recorded  in  1990.    In  the  same  period,  the  total employment in mining and quarrying  in  any  given  year  never  exceeded  more  than  160,000.1    It   is   important   to   note   that   these   figures   capture   both   mining   and   quarrying.     It   is   logical   to   expect   that   if   only   figures   for   quarrying   were   not   factored   in,   the   total   number  of  employment  for  mining  alone,   would   be   significantly   lower.   The   same   paper   found   that   the   knowledge   base   of   the   country   needed   to   pursue   national   industrialization   strategy   is   poor.   It   concluded   that   “judging   by   experience,   the   search   for   national   industrialization   in  the  mining  sector  would  be  a  difficult…   However,   [this]   should   not   prevent   the   country   from   attempting   once   again   especially   given   the   importance   of   industrialization   to   the   growth   of   the   economy.”2 The  gross  production  value  in  mining  rose   from  US$568.7  million  in  2001,  to  a  high  of  US$912.4  million  in  2005.  However,   total   payments   to   government   during   this   period   averaged   only   4.64   %   of   gross   production  value  –  in  stark  contrast  to  the  statements  referring  to  wealth  generation   and   wealth   sharing.     Although   the   production   value   of   mining   rose   steadily   over   the   period,   the   share   going   to   local   government   plummeted   to   0.19   %   of   gross   production  value  in  2005,  and  a  measly  5.5  %  of  the  total  tax  take.  This  is  a  far  cry   from  the  ‘fair’  share  that  the  national  government  has  promised.3 - 4       2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
  • 7. There  is  evidence  that  undercollection  of   taxes  in  the  mining  industry  was  between   60%   to   80%   from   1997-­2008,   a   period   of   13   years.     It   was   also   observed   that   poor  revenue  collection  from  mining  was   recorded  for  the  period  1997  to  2009.    The   average  revenue  effort  for  the  Philippines   for   the   period   was   15.9%,   and   for   the   mining  industry,  it  was  only  9%!    Collection  of  taxes  at  the  LGU  level  was  also   dismal.    The  average  revenue  collection  from  1997-­2000,  was  only  5%.    From  2001-­ 2009,  this  average  has  gone  down  to   0.7%!4  In  the  case  of  Marinduque,   Marcopper  Mining  Corporation  has   an   outstanding   balance   of   unpaid   real  property  taxes  for  the  period  of   1980  to  2006  alone  of  more  or  less   ONE  BILLION  PESOS  due  to  the   LGUs  of  Boac,  Mogpog,  Sta.  Cruz,   Torrijos  and  the  province. Despite   the   commitments   in   the   previous   MTPDP   (2004-­2010)   and   the   NMAP,   the   resolution   of   the   Marcopper  mine  tailings  spill,  the  rehabilitation  of  the  Mabatas  Tailings  Dam  and   the  rehabilitation  of  seven  abandoned  legacy  mines  remain  undone.     Serious issues and concerns on the revitalized mining policy   1.   Large-­scale  mining  poses  serious  threats  to  asset  reform  gains.  It  displaced   and  continues  to  displace  indigenous  peoples  from  their  ancestral  domains   under   the   Indigneous   Peoples   Rights   Act   (IPRA   or   RA   8371)   and   small   farmers  under  the  Comprehensive  Agrarian  Reform  Program  (CARP).  In  fact,   the  displacements  of  indigenous  peoples  and  farmers  have  been  heightened.     PhilDHRRA  reported  in  2008  that  more  than  half  of  ancestral  domains  of   indigenous  peoples  are  directly  impacted  by  mining  and  logging  applications   or   operations.     Moreover,   the   study   revealed   that   72%   of   these   extractive   activities   (mining   and   logging)   located   within   ancestral   domains   operate   without   securing   free   prior   and   informed   consent   (FPIC)   from   indigenous   peoples.5 Que- Alyansa Tigil Mina   5
  • 8.     The   government   have   spent   billions   of   pesos   of   public   and   private   funds   on  the  above  mentioned  asset  reform  program  and  it  is  but  right  to  sustain   the   gains   from   these   programs.   Concerned   government   agencies   in   charge   of   processing   large-­scale   mining   application   should   seriously   consider   it.   Displacement  would  affect  not  only  the  future  of  the  families  displaced  but   also  the  country’s  food  security  and  sovereignty.       Concrete  cases  include  the  resistance  of  farmers  in  Calatagan,  Batangas,  in   the  forced  entry  of  Asturias  Chemical  Industries.    An  estimate  of  more  than   a  hundred  farmers,  working  productively  in  about  500  hectares  of  farmlands,   are  opposing  a  limestone  mining  operations.  These  farmers  are  beneficiaries   of  the  CARP,  and  have  fully  paid  their  amortizations  to  the  Land  Bank.       2.   Mining   negatively   impacts   indigenous   peoples.     Despite   the   safeguards   provided   by   IPRA,   the   IPs   are   marginalized   in   the   fight   against   mining   because  the  free,  prior  and  informed  consent  is  routinely  violated  by  mining   companies.    Cases  of  misinformation,  subtle  bribery,  intimidation  and  even   harassment  have  been  documented.  Even  if  royalty  payments  are  successfully   negotiated,   the   assurance   that   communities   will   receive   equitable   and   just   share  in  these  benefits  are  not  assured.     In  2002  and  2003,  Rodolfo  Stavenhagen,  United  Nations  special  rapporteur   for   the   human   rights   and   fundamental   freedoms   of   indigenous   peoples   visited  the  Philippines  and  reported:  “Of  particular  concern  are  the  long-­term   devastating   effects   of   mining   operations   on   the   livelihood   of   indigenous   peoples   and   their   environment.   These   activities   are   often   carried   out   without   their   prior,   free   and   informed   consent,   as   the   law   stipulates.   Communities   resist   development   projects   that   destroy   their   traditional   economy,   community   structures   and   cultural   values,   a   process   described   as   development   aggression.   Indigenous   resistance   and  protest  are  frequently  countered  by  military   force  involving  numerous  human  rights  abuses,  such  as  arbitrary  detention,   persecution,   killings   of   community   representatives,   coercion,   torture,   demolition  of  houses,  destruction  of  property,  rape,  and  forced  recruitment   by  the  armed  forces,  the  police  or  the  so-­called  paramilitaries.”     In  Oriental  Mindoro,  the  Mangyans  in  the  towns  of  Pola,  Socorro  and  Victoria   are   opposing   the   entry   of   Intex   Mining   Corporation,   a   Norwegian   mining   company.    The  resistance  is  multi-­sectoral,  including  LGUs,  farmers,  fishers,   women,  professional,  the  religious  and  academe.    It  culminated  in  a  hunger   6       2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
  • 9. strike   last   November   2009,   that   successfully   revoked   the   Environmental   Compliance  Certificate  (ECC)  of  Intex,  wrongfully  issued  by  the  DENR.  The   proposed   mining   area   was   within   the   ancestral   domains   of   the   Mangyans,   and  they  have  categorically  denied  the  mining  company  their  free,  prior  and   informed  consent.6         Recent  struggles  of  IPs  against  mining  include  the  Palaw’an  tribe  of  Southern   Palawan  versus  mining  company  MacroAsia  Corporation  who  claims  to  have   undergone   the   process   of   free   prior   and   informed   consent,   when   the   real   tribal  warriors  and  leaders  are  publicly  against  mining  in  their  ancestral  land.   (This  is  further  discussed  in  the  next  item.)     Meanwhile,  killings  and  human  rights  abuses  against  anti-­mining  communities   also   continue   to   rise.   Florita   Caya,   General   Manager   of   the   Unified   Tribal   Council  of  Elders  (UTCEL)  was  shot  on  April  27  this  year.  Their  organization,   a   group   of   indigenous   peoples   (Mandaya,   Manobo,   Mangguangan   and   Dibabawon)  in  Monkayo,  Compostela  Valley,  were  engaged  in  protecting  their   ancestral  lands  against  large  scale  mining  and  logging.  UTCEL  members  said   that  prior  to  her  death,  Caya  has  received  threats  urging  them  to  stop  their   activities,  especially  in  their  advocacy  against  mining.   Alyansa Tigil Mina   7
  • 10.     The   negative   impacts   of   large-­scale   mining  to  indigenous  peoples  were  also   documented   by   a   report   produced   by   the   London-­based   Working   Group   on   Mining   in   the   Philippines   (WGMP).     The   report   stated   that   IPs   “are   particularly   vulnerable   to   the   negative   effects   of   mining.     The   ancestral   domains   of   indigenous   communities   tend   to   be   in   forested   upland   areas,   many   of   which   are   now   targeted   by   mining   corporations.     Stewardship   over   these   lands   is   enshrined   in   oral   history,   myths,   prayers,   and   traditional   laws   that   pre-­date   the   Philippine   state.     These   indigenous   communities   have   traditionally   lived   sustainably   in   the   forest,   but   have   been   displaced   or   are   currently  threatened  with  displacement   by  what  they  call  “development  aggression”  such  as  commercial  logging  and   mining.    The  Philippine  Indigenous  Peoples  Rights  Act  (IPRA)  requires  that   Indigenous  Peoples’  free  and  prior  informed  consent  be  obtained  for  mining   on  their  lands.  However,  manipulation  of  the  FPIC  process,  resulting  in  the   fabrication  of  their  consent,  is  widespread.”7       Last  March  21-­23,  2011,  more  than  150  indigenous  peoples  gathered  in  the   National   IP   Summit.     In   the   Summit   Resolutions,   the   delegates   called   for   the  following:  i)  Repeal  the  Philippine  Mining  Act  of  1995  and  support  the   passage  of  alternative  mining  bills  that  provide  for  the  rational  management   of  minerals  and  uphold  the  right  of  indigenous  peoples;  ii)  Respect  for  the   mining   moratorium   issuances   consistent   with   local   government   autonomy,   iii)  Declaration  of  a  moratorium  on  large-­scale  mining  and  strict  regulation   of   small-­scale   mining;   and   iv)   Prohibition   on   the   use   of   state   forces   in   the   implementation  and  operation  of  mining  projects.8   3.   Large-­scale   mining   poses   risks   to   high   biodiversity   areas,   watershed   areas   and  fragile  small-­island  ecologies.  It  has  also  direct  impacts  on  irrigation  and   agriculture  lands  of  farmers  and  will  contaminate  municipal  waters  and  coastal   8       2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
  • 11. areas  under  the  Fisheries  Code.  In  the  Philippines,  most   of   the   mining   and   exploration   concessions   are   located   in   watershed   areas   where   demand   for   waters   exceeds   the   available   supply.   According   to   the   United   States   Environmental  Protection  Agency,  water  contamination   from   mining   poses   one   of   the   top   three   ecological   security  threats  in  the  world.     The  open-­pit  mining  method  will  strip  mountains  and   forests   that   threaten   our   protected   areas.   According   to   HARIBON,   in   2011,   about   60%   of   KBAs,   and   approximately   1/3   of   ancestral   domains   are   directly   overlapping  with  the  23  priority  mining  projects  in  the   country.9     The   current   issue   in   Palawan   is   a   clear   example   of   conflicting   land   use.     Mining   operations   have   already   destroyed   forest   and   coastal   areas,   while   drastically   reducing   agricultural   productivity   of   irrigated   rice   fields.   Additional   mining   applications   will   encroach   in   natural   forests.   This   is   despite   the   status   of   Palawan   as   a   “Man   and   Biosphere   Reserve”   as   declared   by   the   United   Nations   Educational,   Scientific   and   Cultural   Organization  (UNESCO).    Palawan  is  host  to  40%  of   the   country’s   remaining   mangrove   areas,   30%   of   the   country’s  coral  reefs,  has  identified  17  key  biodiversity   areas   (KBAs),   2   world   heritage   sites,   and   8   declared   protected  areas.  49  animals  and  56  plant  species  which   are   globally   threatened   with   extinction—according   to   the   International   Union   for   the   Conservation   of   Nature(IUCN)—are  also  found  in  Palawan.  Palawan  is   so   unique   and   special   that   a   Strategic   Environmental   Plan  (SEP  Law  or  RA  7611)  was  passed  in  1992.10       There  are  also  429  mining  applications  in  Palawan,  with  at  least  two  (2)  large-­ scale  mining  and  several  contiguous  small-­scale  mining  operations.    Aside  from   Rio  Tuba  Nickel  Mining  Corporation  (RTNMC)  operating  in  Bataraza,  two   other  mining  companies  are  planning  to  operate  in  the  towns  of  Brooke’s  Point.   These   are   MacroAsia   Corporation   (MAC),   and   Ipilan   Nickel   Corporation   (INC).  Corporations  such  as  Citinickel,  Berong  Nickel  Corporation  and  other     10   Conservation   International   (CI),   Priority   Sites   for   Conservation   in   the   Philippines:  Key  Biodiversity  Areas,  2006 Alyansa Tigil Mina   9
  • 12. mining  companies  partnering  with  the  Canadian  MBMI  (under  Financial  or   Technical  Assistance  Agreements  (FTAAs))  represent  an  additional  threat  to   Palawan  forest.  All  these  operations  will  encroach  not  only  on  natural  forests   but  also  on  core  zones  and  protected  areas,  if  we  use  the  original  delineation   of   the   Environmentally   Critical   Areas   Network   (ECAN)   zones   in   Palawan.     What  has  happened  is  that  the  Palawan  Council  for  Sustainable  Development   (PCSD)   has   failed   to   fulfill   its   own   mandate   by   releasing   environmental   clearances   and   exploration   permits   to   mining   corporations   in   “core”   and   “restricted”  areas,  where  any  form  of  extractive  activity  is  strictly  forbidden.       The  indigenous  peoples  (Palaw’an  tribe)  in  Brooke’s  Point  have  never  given   their  consent  to  mining  operations.  Moreover,  the  resolutions  endorsing  the   operations  of  MAC  and  INC  signed  by  the  Sangguniang  Bayan  of  Brooke’s   Point  and  by  the  Sangguniang  Panlalawigan  of  Palawan  bypass  the  decisions   and   sentiments   of   the   majority   of   Brooke’s   Point   Municipality   population.   In  endorsing  the  mining  exploration  of  both  MAC  and  INC,  the  Sangguniang   Bayan   has   acted   in   contradiction   with   its   own   Municipal   Comprehensive   Land  Use  Plan  (CLUP)  for  2000-­2010,  in  which  mining  was  never  considered   as  a  development  strategy.  Also  barangay  governments  have  approved  mining   operations,  bypassing  all  forms  of  consultations  with  their  constituents  and   neglecting   the   important   requirement   of   the   Local   Government   Code   (RA   7160)   with   respect   to   the   duty   of   consulting   local  people  on  any  project  or  program  that  may   cause   pollution,   climate   change,   depletion   of   non  renewable  resources.  The  anti-­mining  stand   and   opposition   to   MAC   and   INC   operations   on   the   part   of   the   residents   of   Brooke’s   Point   Municipality  has  been  made  clear  in  the  course   of   several   rallies   and   peaceful   demonstrations   from  2008  to  2010.   Mining   will   also   have   an   adverse   impact   on   Palawan   tribes’   sacred   and   worship   sites,   which   occupy  a  special  position  in  people’s  cosmology   and   worldview.   Furthermore,   mining   activities   will   destroy   the   resource-­base   on   which   upland   indigenous   communities   depend   for   their   survival,  including  water  sources  and  non-­timber   forest  products.  It  needs  to  be  pointed  out  that   some  of  these  communities  have  limited  contacts   with   the   outside   world,   are   not   listed   in   the   national   census   and   are   particularly   vulnerable   to  diseases  brought  in  my  migrants  and  miners. 10       2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
  • 13.     Meanwhile,  in  June  2011,  a  group  of  indigenous  peoples  claiming  to  be  leaders   of  the  Palaw’an  tribe  signed  a  free  prior  and   informed  consent  with  MAC.   This  was  when  the  real  elders  (Panglima)  and  tribal  leaders  of  Palaw’an  tribe   sought  the  support  of  Congressman  Teddy  Brawner  Baguilat,  chairperson  of   the  House  Committee  on  National  Cultural  Communities,  and  the  NCIP.  As   of  now,  the  NCIP  has  put  on  hold  its  issuance  of  Certificate  of  Pre  Condition   to  MAC  because  of  issues  that  still  need  to  be  addressed.       In  Mindanao,  the  town  of  Cantilan  Surigao  del  Sur,  is  opposing  the  operations   of  Marcventures  Mining  Development  Corporation  (MMDC).    The  mine  site   is  part  of  a  critical  watershed  area,  declared  by  Pres.  Arroyo  in  2008  under   Presidential   Proclamation   No.   1747.     Aside   from   the   Manobo   indigenous   tribe—who  lay  claim  to  an  ancestral  domain  in  the  area—the  LGU,  organized   farmers,  fisherfolk,  professionals,  the  Catholic  Church  and  even  the  Provincial   Office  of  the  National  Irrigation  Association  (NIA)  has  publicly  opposed  the   mining  operations.         In  November  10,  2010,  the  complainants  filed  an  application  for  temporary   environmental  protection  order  (TEPO)  against  MMDC.  On  that  same  day,   the  Honorable  Court  issued  a  TEPO  “restraining  and  enjoining  the  defendant   from   continuing   its   mining   activities   and   operations   inside   the   Watershed   Forest   Reserves…   covering   the   municipalities   of   Cantilan,   Carrascal,   and   Madrid,  all  in  Surigao  del  Sur,  to  prevent  irreparable  damage  and  injury  to   plaintiffs  and  residents  of  the  said  municipalities  until  further  notice  from  this   Court.”  However,  despite  the  court  order,  MMDC  still  continued  operations   in  the  mining  area.       In   August   17,   2011,   the   Committee   on   Natural   Resources   of   the   House   of   Representatives   conducted   a   hearing   on   the   TEPO.   During   the   hearing,   Alyansa Tigil Mina   11
  • 14. MMDC   and   Department   of   Environment   and   Natural   Resources—Mines   and   Geosciences   Bureau   denied   having  received  a  copy  of  the   TEPO,   and   said   they   will   implement   it   immediately.   But  despite  this,  MMDC  was   still  able  to  complete  shipment   of   55,600   wet   metric   tons   of   high-­grade   nickel   ore   to   China,   in   August   20,   only   three   days   after   the   House   Committee  hearing.       Another   case   in   point   is   the   Rapu-­rapu   spills   tragedy.   In   October   11   and   29,   2005,   two   spills   occurred   in   the   Rapu-­Rapu   Polymetallic   Project   operated   by   Lafayette   Philippines,   Inc,   in   the   island   of   Rapu-­Rapu,   Albay.     Tones  of  effluent  and  toxic  materials  were  spilled  in  the  creeks  and  coastal   areas   of   Rapu-­Rapu,   causing   fish   kills   and   fish   scare.     An   independent   commission   was   created   by   then   President   Arroyo   to   investigate   the   matter   and  to  make  recommendations.    The  Rapu-­Rapu  Fact-­Finding  Commission   (RRFFC)   stated   that   “the   two   tailings   spill   incidents   were   the   proximate   cause   of   the   health   and   environmental   hazards   in   Rapu-­Rapu   and   coastal   municipalities  of  Sorsogon.”  The  commission  also   commented   that  DENR   has   been   noticeably   consistent   in   allowing   Lafayette   to   violate   especially   the   environmental   protection   requirements   of   its   approved   Environmental   Protection   and   Enhancement   Program   (EPEP).   Among   the   commission’s   recommendation   were:   i)   Investigation   by   the   Bureau   of   Internal   Revenues   (BIR)   on   the   underreporting   of   ore   production   and   violation   of   tax   laws,   ii)   Rescinding   of   economic   and   financial   incentives   to   the   Lafayette   group,   iii)  A  moratorium  on  mining  in  Rapu-­rapu  and  a  suspension  of  MPSAs  in   the  island  pending  scientific  and  experts’  favorable  resolution  of  the  issue  of   ecological  conservation  and  the  acid  mine  drainage  problem  in  a  fragile  small   island  ecosystem,  iv)  Cancellation  of  the  ECC  of  the  mining  project,  and  v)   Review  of  the  Philippine  Mining  Act  (RA  7942)  specifically  the  provisions  on   the  ownership  and  management  of  mining  firms  and  operations  to  protect   the  interest  of  the  Filipino  people  and  the  Philippine  government.  11    To  date,   none  of  these  recommendations  have  been  adequately  acted  on.   4.   The  policy  on  large-­scale  mining  is  inconsistent  with  the  new  laws  on  climate   12       2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
  • 15. change   (Climate   Change   Act   or   RA   9729)   and   disaster   risk   reduction   (Disaster   Risk   Reduction   Law   or   RA   10121).     The   mining   industry  is  a  direct  contributor  to  deforestation.     The  GHG  emmissions  of  the  mining  industry  is   not  accounted  for,  and  their  demand  for  energy   will   exponentially   increase   these   emmision   figures.       Caution   must  be   observed   regarding   the  Philippines  incompatibility  to  accommodate   large-­mining   operations,   given   its   geography   and   topography   and   poor   regulatory   regime.     The   country   is   also   prone   to   mining   disasters   and  other  environmental  problems.    Based  on   the  data  compiled  by  Newsbreak,  10  out  of  24   mining   comnpanies   with   projects   included   in   the   priority   list   of   the   Philippine   government   were  involved  in  mining  accidents  or  were  the   subject   of   pollution   investigation   for   the   past   two  decades.12       The   Philippines   has   already   experienced   environmentally   devastating   mining   disasters   such   as   the   1996   Marcopper   tragedy   in   Marinduque   (the   6th   worst   mining   disaster   in   the   world),   which   killed   marine   life   in   the   26-­kilometer   waterway   and   flooded   farmlands   and   villages   along   its   banks,   leaving   a   clean-­ up   cost   of   US$80   million.   The   combination   of   risks   involved   in   mining   operations   and   unpredictable   bad   weather   (such   as   strong   typhoons)  will  be  a  double  whammy  of  catastrophes  waiting  to  happen  that   will  cost  not  just  environmental  sabotage  but  worst,  cost  human  lives.       Mining  impacted  communities,  due  to  the  losses  of  forests  and  other  natural   barriers   to   typhoons,   are   also   the   most   vulnerable   to   hydro-­meteorological   hazards.  Any  investment  by  the  local  and  national  government  for  sustainable   development,   millennium   development   goals,   poverty   alleviation,   and   even   Alyansa Tigil Mina   13
  • 16. infrastructures   can   be   easily   wiped   out   by   a   single   bursting   of   a   mining   dam  such  as  Tapian  Pit  in  Marinduque,  which  is  a  continuing  threat  to  the   safety  of  more  than  50,000  inhabitants  in  the  low-­lying  villages.  Worst,  the   contaminated   mine   tailings   will   destroy   all   the   biota   of   Tablas   Strait,   the   common  waters  of  Romblon,  Mindoro,  Marinduque,  Batangas,  and  Quezon   provinces,  which  is  also  part  of  the  Verde  Island  Pass  Marine  Corridor,  the   “center  of  the  epicentre  of  the  marine  biodiversity  of  the  world.”   5.   Social   conflicts,   human   rights   violations   and   killings   in   mining-­hosted   communities  have  escalated.  Human  rights  violations  have  been  documented,   and   one   case   has   even   been   elevated   and   discussed   already   at   the   UN   Commission   on   the   Elimination   of   Racial   Discrimination   or   UNCERD.     In   August   2009,   two   Subanon   leaders   –   Timuay   Boy   Anoy   and   Timuay   Noval  Lambo  –  were  heard  by  UN  officials,  because  of  the  complaint  filed   by   the   Subanon   against   Canada-­based   mining   company   Toronto   Ventures,   Incorporated  (TVI).  To  date,  T VI  has  been  forced  to  recognize  the  legitimacy  of   Timuay  Boy  Anoy’s  leadership,  but  the  full  implementation  of  the  UNCERD   recommendation  has  not  been  accomplished  by  the  Philippine  government.       Last  January  10,  2011,  the  Commission  on  Human  Rights  issued  its  resolution   on   the   complaint   of   farmers   and   indigenous   peoples   against   Oceana   Gold   Philippines,  Inc.  (OGPI).    The  CHR  established  that:  i)  OGPI  violated  the   right  to  residence,  the  right  to  adequate  housing  and  property  rights  of  several   residents  in  (barangay)  Didipio  (Kasibu,  Nueva  Vizcaya);  ii)  OGPI  violated  the   right  to  freedom  of  movement  and  the  right  not  to  be  subjected  to  arbitrary   interference  with  the  home  of  the  people  in  Didipio;  iii)  OGPI  violated  the   right  to  security  of  persons  of  the  people  in  Didipio;  iv)  OGPI  violated  the   indigenous  community’s  right  to  manifest  their  culture  and  identity;  v)  OGPI   must  exercise  great  caution  in  exploiting  the  water  resource  of  Didipio,  possibly   endangering  the  community’s  fundamental  right  to  access  to  clean  water;  and   vi)   the   PNP   violated   its   own   operational   procedures   during   the   October   2   incident   carrying   high-­powered   firearms   and   by   applying   unnecessary   and   unreasonable  force.13         The   CHR   resolution   has   recommended   that   the   government   withdraw   the   FTAA  granted  to  the  foreign  company  (OGPI)  in  view  of  the  gross  violations   of  human  rights  it  has  committed.     As  of  April  2011,  at  least  seven  (7)  anti-­mining  activists  have  sacrificed  their  lives   in  defense  of  their  land  and  natural  resources.    In  October  3,  2007,  Councilor   Armin  Marin  from  San  Fernando,  Sibuyan  Island  (Romblon)  was  shot  dead   - 14       2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
  • 17. while  leading  a  mobilization  against  the  entry  of  workers  from  Sibuyan  Nickel   Properties   Development   Corporation   (SNPDC).     In   December   23,   2008,   Fernando  Sarmiento,  Chairperson  of  Panalipdan-­Southern  Mindanaon  was   killed.    He  was  leading  the  local  organizations  against  the  exploration  activities   of   PhilCo   Mining   Corporation   in   Compostella   Valley.     In   March   9,   2009,   Eliezer  “Boy”  Billanes  was  shot  dead  at  the  public  market  of  Koronadal  City   in  South  Cotabato.    He  was  a  leading  figure  against  the  mining  operations  of   Xstrata-­Sagitarious   Mines,   Inc   in   Tampakan,   South   Cotabato.     In   February   10,   2010,   Barangay   Captain   Ricardo   Ganad   from   Poblacion   3,   Victoria,   Oriental  Mindoro  was  shot  dead.    Ganad  was  President  of  the  Association   of   Barangay   Captains   (ABC)   in   Victoria,   and   the   most   outspoken   critic   of   mining   in   the   province.   In   March   1,   2010,   Gensun   Agustin   from   Buguey,   Cagayan   Valley,   was   shot   dead   while   riding   his   motorcycle,   on   his  way  back  home  from  a  forum   where   they   discussed   strategies   on   how   to   strengthen   the   anti-­ mining  movement  in  their  area.     In   January   24,   2011,   Dr.   Gerry   Ortega,  broadcaster,  veterinarian   and   environmentalist,   was   shot   dead   in   Puerto   Princesa   City,   Palawan.     Aside   from   being   a   project   manager   of   the   Bantay-­ Kalikasan   of   the   ABS-­CBN   Foundation,   he   was   also   a   staunch   critic   of   the   on-­going   mining   projects   in   Palawan.   Lastly,  indigenous  leader  Nang  Florita  Caya,  who  was  shot  at  the  back  of  her   head  in  April  27,  2011,  instantly  killing  her.       These   are   just   some   of   the   documented   extra-­judicial   killings   and   human   rights   violations   committed   against   activists   environmentalists   who   have   passionately  opposed  destructive,  large-­scale  mining  in  the  Philippines.   6.   Weakening   of   local   autonomy.     As   of   March   30,   2011,   at   least   twenty-­two   (22)  local  government  units  have  passed  ordinances,  resolutions  and  executive   orders  opposing  the  entry  or  declaring  a  moratorium  on  mining  operations  in   their  territories.    The  most  notable  ones  include  the  i)  Provincial  Environment   Code  of  the  Province  of  South  Cotabato  which  has  a  ban  on  open-­pit  mining,   ii)   the   Provincial   Resolutions   of   the   two   Mindoro   provinces   (Oriental   and   Occidental),   which   put   a   25-­year   moratorium   on   any   large-­scale   mining   operations,  and  iii)  Provincial  resolution  of  Marinduque  declaring  a  50-­year   Alyansa Tigil Mina   15
  • 18. moratorium  on  mining.    Other  LGUs  with  similar  measures  include  the  three   Samar   provinces,   the   three   municipalities   of   Sibuyan   island   in   Romblon,   towns  in  Davao  Oriental,  Province  of  Iloilo,  Puerto  Princesa  City,  Tacloban   City,  Zambales,  Bulacan  and  Quezon.    The  DENR  and  the  Chamber  of  Mines   have   erroneously   portrayed   this   as   defiance   of   local   governments   against   a   national   policy.     It   may   be   more   accurate   to   describe   this   as   a   dissonance   between  the  implementation  of  two  national  laws—the  Philippine  Mining  Act   of  1995  and  the  Local  Government  Code  of  1991.   7.   There   are   weak   regulatory   and   governance   mechanisms   in   the   mineral   industry.     The   DENR   does   not   have   enough   technical   and   personnel   capacities   to   adequately   address   the   rigorous   demands   of   the   mineral   industry.     There   is   no   effective   “Cost-­Benefit   Analysis”   that   will   determine   the  best  use  of  the  land.  In  this  absence,  there  is  little  evidence  that  the  “net   effect”   of   the   mining   industry   will   be   positive   for   the   Philippine   economy,   let   alone   contribute   to   poverty   reduction.   The   Philippines   does   not   have   a   National   Industrialization   Plan.   The   downstream   industry   of   minerals   and   metals  is  practically  undeveloped,  with  no  blueprint.    The  Corporate  Social   Responsibility  framework  of  the  Chamber  of  Mines  continues  to  be  a  work   in   progress,   while   the   destruction   of   biodiversity,   cultural   displacement   of   indigenous  peoples  and  escalation  of  social  conflicts  in  mining  areas  pursue.       8.   The  myth  of  “responsible  mining”.    The  global  and  local  mining  industry   suffered  from  the  backlash  of  its  attempt  to  re-­package  itself  as  “sustainable   mining”.     Environmental   groups,   human   rights   groups,   think-­tanks   and   IP   support   groups   exposed   this   “re-­labeling”   approach.     Consequently   finding   itself  unable  to  respond,  the  mining  industry  had  to  contend  itself  with  the   16       2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
  • 19. branding   of   “responsible   mining”.     The   framework   of   responsible   mining   is   drawn   from   the   so-­called   ‘best   practices’   of   various   mining   operations   happening   simultaneously   in   different   countries.   BUT   this   model   has   not   been  successfully  closed  or  “looped-­in”  in  one  single  operation  in  a  specific   area.  Moreover,  no  large-­scale  mining  operation  has  completed  the  whole  cycle   of  the  model  yet.  ATM  believes  that  the  concept  of  responsible  mining  is  a   weak  model,  because  it  a)  relies  on  voluntary  compliance  of  large-­scale  mining   companies;  b)  highly  depends  on  the  ability  of  the  government  to  enforce  and   implement   the   safeguards   articulated   in   national   laws   and   policies;   c)   does   not  address  the  issue  of  corporate  and  state  graft  and  corruption,  a  scenario   that  is  not  totally  insulated  in  the  extractive  industries;  and  d)  there  is  token   recognition   of   safeguards   (participatory   process,   free   prior   and   informed   consent,   Environmental   Impact   Assessment).     Furthermore,   the   industry’s   track  record  has  earned  enormous  social  distrust,  which  does  not  adhere  to   the  elements  of  ‘responsible  mining’,  and  there  are  evidences  that  such  illegal,   sub-­standard,   unethical,   dirty   and   unsustainable   practices   in   the   mining   industry   continue,   despite   the   effort   to   peddle   the   concept   of   “responsible   mining”. Alyansa Tigil Mina   17
  • 20. POLICY RECOMMENDATIONS   1.   The   new   MTPDP   (2011-­2016)   must   drop   the   priotization   of   revitalizing   the   mineral   industry.     EO   270-­A   (Revitalization   of   the   Philippine   Mining   Industry)  must  be  revoked  immediately.    Chapter  10  of  the  MTPDP  is  a  failure   in   participatory   processes,   when   the   CSO   inputs   on   the   very   controversial   mining   issues   were   watered   down,   re-­phrased   neutrally   or   even   outright   deleted  in  whole  paragraphs.    Numerous  studies  have  showed  that  mining  has   not   contributed   significantly   to   economic   growth   in   terms   of   tax   revenues,   substantial  investments,  or  employment.    It  has  too  many  incentives,  and  is   suffering   from   tax   undercollection   and   uneven   distribution   on   benefits   to   major  stakeholders,  even  among  government  agencies.         In   fact,   it   is   not   difficult   to   trace   that   there   are   strong   inconsistencies   in   the  new  MTPDP  when  mining  is  overlaid  with  the  policy  to  push  for  rural   development.    Mining  will  not  bring  “inclusive  growth”  as  indigenous  peoples   access   to   their   ancestral   domains   and   natural   resources   are   constrained,   human  rights  are  violated,  biodiversity  destroyed,  local  autonomy  is  weakened   and  graft  and  corruption  left  unattended.    Finally,  revitalization  of  the  mining   industry  goes  against  Points  #  15  and  16  of  the  President’s  Social  Contract  to   the  Filipino  people. 18       2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
  • 21.   2.   The  government  must  adopt  a  policy  of  “the  whole  Philippines  is  not  open   to   mining,   unless   certain   conditions   (e.g.,   asset   reform,   social   justice,   cost-­ benefit  analysis,  etc.)  reveal  that  extracting  the  mineral  is  the  best  use  and  most   economically  beneficial  option.    There  are  several  areas  in  the  Philippines  –   given  their  topography,  geo-­hazard,  fragile  ecology,  economic/productive  use,   cultural  value  or  current  land  use  –  are  not  suitable  or  even  directly  in  conflict   with   mining.     For   large-­scale   mining   to   pursue,   a   Cost-­Benefit   Analysis   (CBA)   must   be   completed   for   all   current   mining   projects   and   new   mining   applications.    The  CBA  must  take  into  account  all  factors  that  will  be  affected   by  the  mining  project,  including  ecological  services,  cultural  and  social  values,   just   compensation,   and   reasonable   comfort.     Unless   the   CBA   shows   a   net   positive  impact,  the  mining  contract  must  either  be  withdrawn  or  reviewed.         In  the  interim,  the  government  must  declare  several  areas  in  the  Philippine   territory  as  “No-­Go  Zones”  for  mining  and  other  extractive  industries.    The   basis  and  justifications  for  such  declarations  are  i)  embedded  in  several  national   laws,   ii)   reflected   in   international   treates   and   multi-­lateral   environmental   agreements   that   the   Philippines   have   acceded   to,   and   iii)   initiative   or   concurrence  of  local  governments.         3.   The  current  Philippine  Mining  Act  of  1996  (RA  7962)  is  f lawed,  given  that  its   conflicts  or  inconsistencies  with  other  laws  is  clearly  manifested.    Enforcement   issues  and  weak  governance  and  regulatory  mechanisms  are  pervasive.    A  new   mineral  management  law,  that  promotes  a  balance  of  mining  implementation   with  other  laws  (IPRA,  NIPAS,  LGC,  AFMA,  EIA/EIS,  Climate  Change  Act,   etc.),   must   be   enacted.   The   government   must   certify   the   pending   bills   on   Alyansa Tigil Mina   19
  • 22. mining  in  Congress  as  urgent  (HB  207  and  HB  3673).    The  new  mining  law   must  ensure  that  the  conservation  of  non-­renewable  mineral  resources  is  for   the  benefit  of  both  present  and  future  generations  of  Filipinos.  This  can  be   done  by  adopting  a  sustainable,  rational,  needs-­based  minerals  management   policy,  geared  towards  effective  utilization  of  mineral  resources  for  national   industrialization  and  modernization  of  agriculture.   4.   As   the   findings   of   several   researches   reveal,   too   much   risk   and   negative   impacts  are  being  introduced  by  the  current  policy  on  aggressively  promoting   large-­scale  mining.  It  is  not  enough  that  mining  applications  are  suspended.  A   moratorium  on  large-­scale  mining  operations  must  be  immediately  imposed   so  that  carrying  capacities  of  ecologies  can  be  improved.  Permits  for  pending   applications  must  not  be  issued,  and  all  large-­scale  mining  operations  that  have   questionable  circumstances  (resistance  of  communities,  opposition  of  LGUs,   flawed  procedures,  etc.),  must  be  immediately  suspended  and  reviewed.         Government   must   immediately   act   on   recent   recommendations   and   resolutions  that  are  directly  related  to  large-­scale  mining:     i)   Commission  on  Human  Rights  (CHR)  resolution  last  January  10,  2011,   on  human  rights  violations  of  Oceana  Gold  Philippines,  Inc.  (OGPI)   and  the  recommended  withdrawal  of  the  mining  contract;     ii)   The   recommendation   of   the   Rapu-­Rapu   Fact   Finding   Commission   (RRFFC)  last  August  2006,  recommending  the  withdrawal  of  the  ECC   and  suspension  of  the  MPSA  of  the  Rapu-­Rapu  Polymetallic  Project  in   Rapu-­Rapu,  Albay;   20       2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
  • 23.   iii)   Revocation   of   the   ECC   of   Intex   Mining   Corporation   in   Oriental   Mindoro,  issued  by  DENR  last  November  2009;     iv)   Recommendations   of   the   UN   Commission   on   the   Elimination   of   all   forms   of   Racial   Discrimination   (UNCERD)   issued   last   October   2009   and   reitereated   last   August   2010,   to   ensure   the   protection   and   promotion  of  the  rights  of  indigenous  peoples;     v)   Temporary  Environmental  Protection  Orders  (TEPOs)  issued  by  courts   and  writs  of  kalikasan  granted  by  courts.   5.   The  principles  of  local  autonomy  must  be  respected.    LGUs  who  have  passed   resolutions  and    ordinances  banning  mining  or  issuing  moratoriums  against   mining   in   their   localities   must   be   respected   and   upheld.     The   Department   of  the  Interior  and  Local  Government  and  the  Department  of  Justice  must   review  and  upgrade  their  position  that  a  “2-­out-­of-­3”  ruling  of  LGUs  giving   permission   is   equivalent   to   “consent”   or   endorsement   of   the   LGU.     Both   should  be  regarded  as  what  they  are  –  “opinions”.    Sec.  26  and  27  of  the  Local   Government  Code  (LGC)  must  be  absolutely  respected,  where  it  states  that   ALL   LGUs   to   be   affected   by   national   development   projects   (including   mining)  must  give  their  consents.   6.   Should  the  government  decide  to  retain   its   misplaced   policy   of   aggressively   promoting   large-­scale   mining,   several   structural  and  policies  must  be  put  in   place,   prior   to   granting   of   application   permits   and   actual   mining   contracts.     These  include:   6.a   Finalization   of   a   National   Industrialization   Plan,   that   will   indicate  the  actual  minerals  and   metal  needs  of  the  country,  that   will  contribute  to  the  realization   of  this  industrialization  plan.   6.b   Complete   an   accurate   and   realistic   inventory   of   the   actual   mineral   reserves,   pin-­pointing   the   specific   locations,   types   and   values   of   the   minerals,   that   will   be  potentially  extracted. Alyansa Tigil Mina   21
  • 24.   6.c   Produce  a  mineral  extraction  plan  that  will  respond  to  the  actual  needs   specified  in  the  National  Industrialization  Plan,  while  considering  the   other   alternative   (and   more   beneficial)   uses   of   the   targeted   mineral   lands.   7.   The  government  must  sign-­up  to  the  Extractive  Industry  Transparency  Initiative   (EITI),  in  order  to  practice  and  implement  transparency  and  accountability  of   mining  companies  operating  here  in  the  Philippines.       8.   An   EO   must   be   issued   by   the   President   not   to   allow   mining   operations   in   areas  that  are  scientifically  identified  as  important  biodiversity  areas  (IBAs),   watershed  areas  and  natural  forests.  These  areas  are  aside  from  the  protected   areas  system  already  covered  by  NIPAS.    The  EO  must  also  include  provisions   that  consent  of  LGUs  and  IPs,  whenever  applicable,  that  are  of  paramount   requirements  before  mining  is  permitted.   9.   The  government  should  demonstrate   its   capacity   to   uphold   the   right   of   the   people   to   a   balanced   ecology   by   ensuring   to   expedite   the   prosecution   of  all  cases  related  to  large-­scale  mining   incidents   such   as   the   Marcopper   tragedy  of  1996  in  which  all  cases  filed   in   relation   thereof   have   not   reached   even  the  trial  stage  15  years  after. 22       2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
  • 26. ATM Assessment of PNoy 1st Year This   assessment   attempts   to   assess   the   performance   of   the   PNoy   administration   in  its  first  year  in  relation  to  the  issue  of  large-­scale  mining.    A  10-­point  indicator   system   is   used   as   a   barometer   to   determine   the   success   or   failure   of   the   Aquino   government  in  addressing  the  key  concerns  revolving  the  revitalization  of  the  mining   industry  in  the  Philippines.    The  indicator  system  is  a  combination  of  reviewing  the   administration’s  responses  and  delivery  of  commitments,  along  the  lines  of  1)  the   main  calls  of  the  ATM  campaign;  2)  the  initial  set  commitments  of  the  DENR  under   Sec.  Ramon  Paje;  3)  introduction  of  reforms  in  key  government  agencies  and  offices   directly  related  to  mining  issues;  and  4)  the  different  scenarios  unfolding  in  key  sites   of  struggles  within  the  ATM  campaign.    The  matrix  below  presents  the  indicators   and  a  brief  explanation  of  the  parameters  in  the  assessment  exercise. 1.   Scraping  of  the  Mining   Act  of  1995  (RA  7942)  and   enactment  of  a  new  mining   law 2.   3.   Mining on  mining 4.   Enact  the  Alternative  Minerals  Management  Bills! 24       2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
  • 27. 5.   6.   7.   b.   Arangkada  2011 8.   of  mining 9.   10.   As  with  other  assessments  of  other  sectors  on  the  performance  of  the  first  year  of   the  PNoy  administration,  it  is  critical  that  the  policies  and  actions  of  the  previous   government  be  used  as  reference.   The   GMA   administration   shifted   the   government   policy   from   “tolerance“   to   “aggressive  promotion“.  This  led  to  the  streamlining  of  mining  applications  process,   and  the  increased  number  of  approved  mining  contracts.    In  turn  this  resulted  in   amplified  social  issues,  as  indigenous  peoples  were  physically  and  culturally  displaced   and   the   key   biodiversity   areas   of   the   countries   were   directly   threatened.     Social   tensions   also   escalated,   as   local   communities,   including   many   local   government   units,  mounted  strong  resistance  against  the  entry  or  expansion  of  mining  projects.     On   the   other   hand,   the   asset   reform,   social   justice   and   sustainable   development   tracks  of  government  was  effectively  set  aside.   Upon  assumption  of  the  Aquino  administration,  mining  activists,  together  with  the   broader  environmental  movement,  held  on  to  high  expectations  for  reforms.    This     expectation  has  since  then  been  downgraded  to  “guarded  optimism“  after  the  first   year  of  PNoy’s  government.   Alyansa Tigil Mina   25
  • 28. Several  bills  on  mining  have  been  filed  with  the  15th  Congress.    These  are  HB  206   (Alternative  Mining  Bill),  HB  3763  (Philippine  Mineral  Resources  Act)  and  HB  4315   (People’s  Mining  Bill).    Despite  significant  support  from  senior  and  newly-­elected   representatives,  to  date  however,  no  committee  hearings  have  been  conducted.    No   parallel  bill  has  been  filed  at  the  senate.    The  prevailing  impression  is  that  the  Liberal   Party  is  supportive  of  a  new  mining  law.    The  mining  bills  have  not  been  prioritized,   and  there  is  no  indication  that  it  will  be  certified  as  urgent  by  President  Aquino.    No   clear  directives  to  push  for  the  mining  bills  from  the  Office  of  the  President  is  seem   to  be  forthcoming,  nor  were  there  indications  that  mining  issues  were  discussed  in   the  LEDAC,  except  during  the  finalization  stage  of  the  draft  PDP.  On  this  item,  the   PNoy  administration  gets  a  failing  mark   ATM  has  sent  at  least  two  formal  communications  to  the  Office  of  the  President,   urging  the  immediate  revocation  of  EO  270-­A  or  the  Revitalization  of  the  Philippine   Mining  Industry.    ATM’s  position  is  that  this  is  a  legacy  of  the  GMA  administration,   and  as  a  misplaced  economic  policy,  has  no  rightful  place  in  the  “tuwid  na  daan”.     The  Office  of  the  President  has  twice  responded,  informing  ATM  that  the  matter  has   been  referred  to  the  DENR  Sec.  Ramon  Paje,  and  that  his  official  recommendation   is   being   awaited,   with   complete   staff   work.     To   the   best   of   our   knowledge,   no   recommendation  has  been  sent  to  the  OP  on  this  matter.    There  is  a  move  to  sign  a   new  EO  on  mining,  and  contains  the  controversial  proposal  of  Sec.  Paje  to  declare  23   mineral  reservations.    The  official  position  of  ATM  has  been  relayed,  opposing  this   provision  in  the  draft  EO,  and  counter-­proposing  a  “no-­go  zone”  policy  which  will   prohibit  mining  in  key  biodiversity  areas  and  fragile  island  ecosystems,  as  strongly   positioned  by  HARIBON,  one  of  the  ATM  convenors.    A  recent  report  from  the   House  Committee  on  National  Cultural  Communities  (IPs)  has  recommended  that   26       2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
  • 29. ancestral  domains  be  included  as  “no-­go  zones”  for  mining.    For  this  item,  the  PNoy   administration  is  disappointing.   No  policy  pronouncement  for  a  moratorium  on  mining  has  been  declared  by  the   Aquino  administration.    House  Resolution  528  has  been  filed  at  Congress,  authored  by   Rep.  Teddy  Brawner  Baguilat  from  the  lone  district  of  Ifugao,  calling  for  such  a  mining   moratorium.    This  has  not  been  acted  upon  by  Congress.    PNoy  gets  a  failing  mark  on  this.     In   the   first   few   engagements   of   civil   society   with   Sec.   Paje,   one   of   his   initial   commitments  was  public  disclosure  of  mining  contracts.    After  several  attempts  and   months  in  waiting,  photocopies  of  the  contracts  of  the  23  priority  mining  projects   were  sent  to  the  ATM  office.    For  a  limited  time,  these  were  also  available  in  the   DENR  website.    Since  then,  the  list  of  mining  applications  and  approved  mining   contracts  are  downloadable  from  the  internet.    This  is  an  improvement.    However,   the  critical  portions  of  mining  documents  —  EIA  reports,  feasibility  studies,  ECCs  —   still  remain  inaccessible.    Maps  of  mining  tenements  are  likewise  almost  impossible   to  procure.    ATM  has  proposed  that  “midnight  mining  contracts”  be  subjected  to   review.    This  has  not  been  done.    The  DENR  has  done  an  internal  audit  of  almost   2,000  mining  contracts,  and  they  reported  that  they  have  canceled  almost  750  of   these  for  their  non-­performance.    However,  they  have  also  recommended  the  pursuit   of  more  than  125  mining  applications  and  live  contracts.    Commendation  for  the   effort   of   public   disclosure   is   in   order.     It   is,   however,   inadequate,   and   therefore,   disappointing. Alyansa Tigil Mina   27
  • 30. With   regard   to   the   “legacy   problems”   of   mining   tragedies   and   disasters   in   the   past,   after   one  year  of  PNoy  administration,   very   little   has   been   actually   achieved.     Assessment   for   the   rehabilitation   of   the   Bagacay   Mine  has  been  completed.    But   that’s   about   it.     There   is   not   enough   capacities,   resources   and   resolve   to   address   the   abandoned   and   idle   mine   sites.     The   Marcopper   tragedy   in   Marinduque   has   not   been  addressed.    There  is  no  public  information  about  the  Mabatas  Tailings  Dam.   Finally,  the  assessment  of  the  7  abandoned  mines  has  not  been  completed.    For  this   item,  the  DENR  and  PNoy  get  a  failing  mark.   In  terms  of  engaging  the  government,  civil  society  is  relieved  to  witness  and  be  part   of  remarkable  accomplishments.    Significant  reforms  in  the  National  Commission   on   Indigenous   Peoples   (NCIP),   the   Commission   on   Human   Rights   (CHR)   and   the   National   Anti-­Poverty   Commission   (NAPC)   were   clearly   pursued.     These   bodies   have   significant   contributions   in   resolving   conflicts   in   mining-­affected   communities,  particularly  in  the  case  of  indigenous   peoples.     Numerous   resolutions   have   been   issued   including   cases   in   Nueva   Vizcaya   and   Palawan.     Assessments   and   evaluations,   including   financial   and  legal  audits  of  the  performance  and  outputs  of   these  agencies  are  well  underway,  possibly  pointing   to  even  greater  reforms.    Some  fruitful  engagement   with   the   Climate   Change   Commission   (CCC)   was   also   recorded.     Even   the   DSWD   have   extended   its   interest  to  engage  civil  society  to  support  initiatives   for  IPs  and  rural  poor  impacted  by  mining.  To  this   end,  this  item  can  be  described  as  a  successful  effort,   and  gets  a  high  passing  mark.   ATM  has  actively  engaged  the  formulation  process  of   the  Philippine  Development  Plan  (2011-­2016).    The   engagement   can   be   illustrated   as   a   running   battle,   with  the  civil  society  trying  its  best  to  keep  up  with   the  intent  of  the  mining  industry  and  the  DENR  to   sustain  the  priority  status  of  mining  as  an  economic   policy.    Overall,  however,  the  process  of  crafting  the   new  PDP  can  be  described  as  participatory,  open  and   28       2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
  • 31. genuine.    Theoretically,  mining  has  been  downgraded,  with  its  role  characterized  as   needing  to  comply  with  the  conservation,  protection  and  rehabilitation  policies  of   the  government.    Meanwhile  the  Economic  Cluster  of  the  administration  continued   to  pitch  mining  as  a  critical  industry,  effectively  inserting  it  as  one  of  the  investment   priority   areas   of   the   Aquino   administration.     With   these   conflicting   aspects,   the   PNoy  administration  is  given  a  unsatisfactory  rating.   LRC-­KsK,  one  of  the  ATM  convenors,  has  eloquently  described  the  commendable   behavior  of  several  LGUs,  in  their  assertion  to  say  no  to  mining  in  their  territorial   jurisdiction.    Despite  the  continuous  policy  on  mining,  LGUs  have  gained  ground   with  several  provinces  issuing  executive  orders  and  passing  resolutions  not  to  allow   mining   and   effetively   withdrawing   their   consent.     The   trailblazing   Sagittarius Mines, Inc. (SMI) of the Philippines, along with Australian-based Xstrata effort   of   South   Cotabato   with   its   Copper (a subsidiary of the Swiss-British giant Xstrata Plc) and Indophil Resources NL, also of Australia, is proposing a project that will impact the South Cotobato, Davao del Sur, Sarangani and Sultan Kudarat provinces. Provincial   Environment   Code   has   Mining in Tampakan will: inspired   other   LGUs,   including   Cause extensive physical disturbance of almost 10,000 hectares of forest lands Zamboanga   del   Sur,   to   replicate   that serve as the watersheds of the four provinces of South Cotabato, Sultan Kudarat, Davao del Sur and Sarangani; the  local  ordinance.    On  the  other   Leave 1.65 billion tons of waste rock and 1.1 billion tons of tailings in an area of high seismic activity and fault lines; hand,   while   there   will   be   few   to   Affect the water resources of communities, as it will impact the head waters of 7 river systems, affecting water supply reserved for residential and irrigation question  the  capability  and  integrity   purposes; of  Sec.  Jesse  Robredo  of  the  DILG,   This mining project will use up thousands of liters of water per second; Cut down 4,000 hectares of forests including old growth forests, which are the   anti-­mining   movement   was   initial components of the protected areas system (NIPAS); shocked   when   he   issued   a   Memo   Displace more than 2,600 people belonging to the B’laan communities; the mine site will also affect the ancestral domains, covered by CADT 102, CADT 108, CADT 72 and CADC 74; Order   instructing   the   Provincial   It will also undermine the Provincial Environment Code of South Cotabato’s ban on Government   of   South   Cotabato   to   open pit mining signed last June 29, 2010. review  a  provision  on  its  Provincial   Environment   Code   that   banned   open-­pit   mining   in   the   locality.     It   should   be   mentioned   however,   that  DILG  officials  have  in  general,   remained   open   to   dialogue   and   negotiations   on   a   case-­to-­case   basis.     Conscious   of   the   principle   of   decentralization   and   local   autonomy,  ATM  gives  LGUs  a  high   grade,   while   disappointed   with   the   *all data were derived from SMI’s own draft Environmental Impact Statement last April 2011 misinformed  stance  of  the  DILG.   Indigenous  peoples  bear  the  brunt  of  the  negative  impacts  of  mining.    More  recent   maps  produced  by  ATM  members  reveal  that  more  ancestral  domains  are  threatened   by  mining,  as  compared  to  available  data  in  2005.    This  scenario  is  compounded   by   the   questionable   issuance   of   FPIC   (free,   prior   and   informed   consent).     It   is   interesting  to  note  that  remedial  measures  have  been  initiated.    A  review  of  the  2006   Alyansa Tigil Mina   29
  • 32. FPIC   guidelines   was   recently   concluded,   and   civil   society   is   awaiting   with   much   anticipation   the   results   of   these   exercise,   looking   forward   to   substantial   reforms.     Credits    go  to  the  newly-­installed  NCIP  commissioners  and  the  House  Committee   on  NCC  (IPs).    While  cases  involving  conflicts  in  ancestral  domains  versus  mining   remain  considerable,  there  are  enough  openings  to  be  hopeful.    But  these  are  only   enough  for  a  passing  mark. Actions  of  the  PNoy  administration  to  site-­specific  cases  reveal  ambivalence  regarding   the   mining   issue.     On   one   hand,   favorable   action   has   been   observed   with   the   decision  to  cancel  mining  contracts  in  Palawan,  and  the  public  recognition  that  the   stand  of  the  LGUs  not  to  accept  mining  is  legitimate,  such  as  the  cases  in  Romblon   and  Oriental  Mindoro.    The  situation  in  Tampakan,  South  Cotabato,  seems  to  be   a   problematic   for   the   government,   though,   as   the   government   has   sent   signals   to   foreign  investors  that  the  national  government  is  ready  to  intervene,  when  the  right   time  comes.    Using  the  escalating  tensions  being  reported  by  the  Sites  of  Struggles   as  a  barometer,  it  is  safe  to  say  that  while  some  forms  of  victories  in  some  sites  have   been  gained,  this  is  not  a  general  rule.    For  this  matter,  a  rating  of  disappointment   is  justified. Summary Rating of PNoy Administration on the Mining Issue 1.   Scraping  of  the  Mining  Act  of  1995  (RA  7942)  and   enactment  of  a  new  mining  law 30       2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
  • 33. PRESS  RELEASE September  19,  2011 Greens ask: If DENR doesn’t, who will? A   synergy-­promoting   coalition   of   nearly   30   organizations   and   networks   working   on   various   environmental   concerns   has   expressed   extreme   disappointment   in   the   DENR.     The   Green   Convergence   for   Safe   Food,   Healthy   Environment   and   Sustainable   Economy   (GC)   said   that   while   DENR   is   supposed   to   protect   the   environment,  recent  news  reports  are  proving  the  opposite. The  group  disclosed  that  among  the  series  of  news  that  had  drawn  their  ire  was  the   most   recent   pronouncement   of   DENR   Sec.   Ramon   Paje   about   the   possibility   of   lifting  the  ban  on  mining  applications  and  reconsidering  even  those  that  had  been   rejected.  GC  said  Paje  has  clearly  sided  with  the  mining  industry  versus  the  will  of   the   Filipino   people   who   have   persistently   asked   that   this   destructive   business   be   limited  if  not  banned  completely.     Paje   has   also   reportedly   recommended   that   areas   where   mining   companies   are   operating   be   turned   into   mineral   reserves   so   that   the   government   can   collect   a   higher  percentage  of  the  companies’  income.  GC  pointed  out,  however,  that  while  it   may  seem  like  a  good  idea,  a  closer  look  would  reveal  that  its  downside  far  outweighs   its  potential  income  benefit.     Fr.  Archie  Casey,  GC  Internal  Vice-­President,  explained,  “If  that  is  done,  the  mining   company  would  have  rights  over  everything  in  the  area  and  not  be  subject  to  the  laws   that  are  precisely  meant  to  protect  our  resources  -­-­  like  the  NIPAS  on  protected  areas,   IPRA  on  the  rights  of  indigenous  peoples,  and  EO  23  on  the  logging  moratorium   in  natural  and  residual  forests.    The  companies  would  also  have  the  right  to  all  the   water  in  their  reserve,  to  the  detriment  of  communities  living  there.”    The  priest,  who   represents  the  church-­based  JPICC-­AMRSP  in  the  Green  Convergence,  concluded,   “All  of  these  are  unacceptable.”   Alyansa Tigil Mina   31
  • 34. Citing   a   separate   news   report   that   MMDA   Chair   Francis   Tolentino   planned   to   revisit  incineration  as  a  garbage  solution  and  that  Paje  had  been  consulted  about   it,  Marie  Marciano,  GC  External  Vice-­President  and  an  active  zero-­waste  advocate  of   the  EcoWaste  Coalition,  remarked,  “Sec.  Paje  should  have  been  the  first  to  oppose   this  move,  because  incineration  is  banned  under  the  Clean  Air  Act  to  protect  our   people  and  environment  from  the  dioxins,  furans,  heavy  metals  and  other  toxic  by-­ products  of  incineration.”   According   to   Marciano,   although   Chairman   Tolentino   gave   assurances   that   new   technologies  can  keep  emissions  at  a  minimal  level,  there  is  no  safe  level  of  exposure   to   some   of   these   highly   toxic   substances,   particularly   dioxin,   and   there   is   yet   no   ‘high   tech’   incinerator   that   can   completely   prevent   harmful   emissions.     “Besides,   waste  can  be  converted  to  badly  needed  resources,  so  burning  waste  is  tantamount   to  burning  money!”  she  emphasized. The   group   also   lamented   an   earlier   report   that   Paje   had   recommended   the   exploitation  of  the  West  Philippine  Sea  for  its  oil.  “Does  he  not  take  global  warming   seriously?”  asked  GC  Secretary  Noemi  Tirona  of  the  Consumer  Rights  for  Safe  Food   (CRSF).   “He   should   be   the   first   to   advise   the   President   to   shift   away   from   the   fossil   fuel   economy,  since  studies  have  clearly  shown  that  the Philippines  is  blessed  with  more   than   enough   renewable   energy   sources   to   power   our   development   far   into   the   future,”  she  said,  adding  further,  “Exporting  the  oil  for  economic  gain  is  not  worth   the  suffering  and  losses  that  will  be  caused  by  climate  change.”   Green  Convergence  believes  that  at  this  point  in  time,  when  the  environment  has   been  so  devastated,  DENR  should  do  all  in  its  authority  to  prioritize  the  environment.     “There   are   many   ways   by   which   we   can   advance   national   development   through   programs  that  would  sustainably  utilize  our  natural  patrimony,”  declared  Dr.  Nina   Galang,   GC   President,   who   also   revealed   that   their   coalition   had   been   pointing   this   out,   dialoguing   with   Sec.   Paje   precisely   to   enjoin   him   to   show   bias   for   the   environment.    “This  is  his  role  in  the  Cabinet;  raising  money  is  not,”  she  stressed,   “and  if  DENR  does  not  speak  to  the  President  for  the  environment’s  protection,   who  will?  “     Reference: DR.  NINA  P.  GALANG 9296671   09178538841     32       2011  Position  Paper  on  the  Revitalization  of  the  Philippine  Mineral  Industry  Policy
  • 35. Alyansa Tigil Mina Alyansa Tigil Mina (ATM) is an advocacy group and a people’s movement that upholds the rights of the present and future Filipinos against the persisting injustices related to large-scale mining. The term “tigil-mina” going against (to prohibit or ban) all kinds of mining. What ATM is referring to, is stopping the policy regime on large-scale mining being adopted by the Arroyo administration and the Department of Environment and Natural Resources (DENR), which irrationally exploits mineral resources – undermining the ‘real value of land’ (where minerals are found) to Filipinos and promoting purely foreign-controlled and export-oriented mining industry, problems, poverty situation, environmental and other socio-political concerns in our country. ATM, formed in 2004, is a coalition of organizations and individuals from mining-affected communities, NGOs, POs, church-based organizations and academic institutions, that decided to disengage from the series of consultations convened by the DENR regarding the revitalization of the mining industry through the aggressive promotion of large-scale mining in the country. Much like the Bantay Mina coalition in the 1990s and the Peoples’ Call presented at the Dapitan Initiative in 2002, ATM serves as a watchdog that corporations/institutions, multinational mining corporations and other key players to expose their wrongdoings and failures of the laws and policies, their implementation and the practices involved in the mining industry.
  • 36. Alyansa Tigil Mina Alyansa Tigil Mina National Secretariat # 973 Aurora Blvd. corner Dapdap St., Anonas, Cubao, Quezon City 1109 Philippines Tel.: +63 (02) 434.46.42 loc 27 Fax: +63 (02) 434.46.96 Emails:   nc@alyansatigilmina.net            policy@alyansatigilmina.net            sos@alyansatigilmina.net   Website:   Facebook:   Twitter:   www.alyansatigilminat.net   Alyansa  Tigil  Mina   atm_philippines