Philippines –social and environmental

impacts

Presented by Andy Whitmore

Indigenous Peoples Links

Outline

I. Background

II. Mining facts and figures

III. Picturing the national situationIII. Picturing the national situation

IV. Issues and Concerns

V. Peoples Response

VI. In summary

PhilippinesPhilippines

I. Background

� Bad legacy on mining issues – Mankayan, Marinduque & Rapu Rapu

� Strong & vibrant civil society

� Some advanced legislation – such as IPRA, but � Some advanced legislation – such as IPRA, but poor implementation

� Despite years of promotion most large multi-nationals have withdrawn from the country (Rio Tinto, BHP Billiton, Anglo American…. Xstrata still have a concession)

I. Background

� Original legislation 1995 Mining Act (proposed by GMA as a Senator)

� Under President GMA, policy shift in 2004 -> from tolerance to “aggressive promotion”from tolerance to “aggressive promotion”

� Judicial decisions -> reversal of Jan. 2004 SC decision re constitutionality of certain provisions of Mining Act

� Roadshows by Chamber of Mines (2004-2006)

� DENR houses MGB

Scope of Mining Operations (2009)1. 29 operating metallic mines, which is an increase on

last four years

2. 65 priority projects in 2009, up from 23 in 2005 and 62 in 2008

� 10 are in full operation

� 5 second-tier development stage

8 in construction stage� 8 in construction stage

� 8 are in financing (fund-raising)

� 9 in advanced exploration

� 23 in early exploration

3. DENR-MGB states only 32 official priority in 2010

4. Over 2,000 small-scale mines and quarries (with legitimate records)

30

No. of Operating Metallic Mines

(DENR-MGB, Jan. 2010)

0

10

20

12006 2007 2008 2009

16 23 26 29

6265

40

50

60

70

No. of Priority Mining Projects (MGB, Jan. 2010)

23 23

32 32

0

10

20

30

1 2 3 4 5 62005 2006 2007 2008 2009 2010

Mining Tenements (Sept. 2009)

a) 4 FTAAs (80,502 has.)

b) 297 MPSAs (480,524 has.)

c) 47 EPs_ (183,172 has.)

Total of 348 mining agreementsTotal of 348 mining agreements

d) 744,199 hectares mineralized lands, up from about 515,000 hectares in January 2007, and 722,691 in 2008

--GoldGold

--CopperCopper

--NickelNickel

Philippine Philippine mineral mineral reservesreserves::

--NickelNickel

--ChromiteChromite

--IronIron

--bauxitebauxite

--MarbleMarble

--limestonelimestone

Quantity of Mineral Quantity of Mineral Resources per unit areaResources per unit area

�� 33rdrd in the world for goldin the world for gold

�� 44thth in the world for copperin the world for copper

�� 55thth in the world for nickelin the world for nickel

�� 66thth in the world for chromitein the world for chromite

Minute Economic Contributions of Mining to Philippine Economy

� Mining gross production value in 2007 was valued at Php 101.5 billion pesos ($2.2 bn)

� Government tax collection (in 2007) was at

Php 10.4 billion pesos ($0.23 bn)� National Gov’t. (Agencies) collected Php 8.35 bn pesos � National Gov’t. (Agencies) collected Php 8.35 bn pesos

($0.18 bn)

� BIR collected Php 942 million pesos ($20.8 mn)

� DENR/MGB collected Php 774 million pesos ($17.1 mn)

� LGUs collected Php 357.9 million pesos ($7.8 mn)

� Contribution of mining sector to 2007 GDP was merely 1.4% (consistent in 3 decades)

Crunching the Numbers

�Job creation was only at 158,000 in 2008

�Actual tax collection was only at 11%

�GDP contribution is only 1%�GDP contribution is only 1%

�Agriculture GDP contribution is at 16.5%

� The Philippines needs an ideal 54% of forest cover to maintain its natural ecological processes (Sajise, 1996)

� In 1999, DENR (unofficially) reported that

State of Philippine Forests

� In 1999, DENR (unofficially) reported that Philippines had been reduced to about 18%-19% forest cover

� In 2006-07, the unofficial data claimed that this has gone up to about 20%-21%

Good News! [?]

Actually no…

Because DENR changed the official definition Because DENR changed the official definition of what a FOREST is…

�5,000 sq. meters (half-hectare)

�At least 10% cover

•• The Philippines has The Philippines has 1818 identified identified

major river basinsmajor river basins

1313 1818

Major WatershedsMajor Watersheds

•• 1313 out of out of 1818major river basins major river basins

have forest cover below have forest cover below 20%20% of its of its

total areatotal area

Other risks of Other risks of mining in the mining in the PhilippinesPhilippines

•• More than half of More than half of active active concessions and concessions and

LRC-KsK, irlg 2005

concessions and concessions and twotwo--thirds of thirds of exploratory exploratory concessions are concessions are located in zones located in zones of high seismic of high seismic riskrisk

Peoples Response (local)

1. Local alliances (Task Forces in Nueva Vizcaya, Masbate, CARAGA, Zambo Norte)

2. Legal actions, such as in Gambang & Palawan

3. Barricades have been set-up in 3 communities 3. Barricades have been set-up in 3 communities (Nueva Vizcaya, Masbate and Surigao del Norte)

4. Moving towards an uprising of indigenous B’laan at Xstrata Tampakan mine

Peoples Response (national/international)

5. At national level is filing of an Alternative Mining Bill

� Research on “No-Go Zones”

� CERD complaint from community leaders in � CERD complaint from community leaders in Zamboanga del Norte

� OECD Complaint through Norwegian NCP

� Complaints to UN Special Rapporteurs

In Summary

1. Mining will remain to be a government 2010 priority (although elections coming in May)

2. Local resistance will increase…2. Local resistance will increase…

Maraming

LRC-KsK, irlg 2005

Maraming

Salamat Po!