Environmental Sustainability and Community Rights to Natural Resources:The Compostela Valley and South Cotabato Extractive Industry Governance Experience

Reversing Resource Curse: Promoting Transparent, Effective, and Accountable Governance (TEAG)Agenda for Conference and Site Visits in Accra, Ghana

26-30 August 2013

Beverly F. Besmanos From the compiled presentations of

Melvin Lamanilao (PBPF), Hon. BM Agusto Blanco (SP-ComVal) and Mr. Siegfred Flaviano (PEMO-South Cotabato) delivered during the ASEAN Sub-National Conference on EITI

22-23 Aug 2013, Davao City, Philippines

A BACKGROUND STUDY ON THE SMALL-SCALE GOLD MINING OPERATIONS AND THEIR IMPACT ON THE ECONOMY, THE ENVIRONMENT AND THE COMMUNITYA Study Commissioned by Bantay Kita2011-2012

o 1988 - Philippines ranked 2nd to Africa in gold production per unit land area.o 2002 – Philippines ranked 29th as top gold producer.o 2007 – 18th in the GFMS Gold Survey list of Top 20 Gold Producing Countries

The 2008 – 2009 data revealed that small-scale mining sector contributed almost

80% of the total gold production.

Small-Scale Gold Mining in the Philippines

Data Sources: Israel and Asirot, 2002 Teves, 2008 Philippine Mining Almanac 2010

Findings:

Data Sources: Israel and Asirot, 2002 Teves, 2008 Philippine Mining Almanac 2010

Economic. SSM operations in the area can contribute to the local revenue generation provided that local policies are in place and enforced.

Environment. The current practices of SSM operations threaten the environment. Because of weak enforcement of laws, majority of the SSM operations are illegal and the weak environmental monitoring by the government tolerate substandard facilities.

Health and Safety. Dependence on hazardous chemicals in gold extraction and refining processes exposes miners, plant workers and the community to health problems.

Women. The SSM operations in the areas provided the women with livelihood from washing ores/sacks and participating in the initial processing of gold.

Cultural Dimension. In Benguet, SSM operation is historically part of their way of life. SSM defines their cultural identity. The traditional practices of SSM are threatened by competition for resource and profit.

Governance and Policies. The government and the community suffer from weak enforcement of laws.

Small-Scale Gold Mining ISSUES:

Data Sources: Israel and Asirot, 2002 Teves, 2008 Philippine Mining Almanac 2010

There are inconsistencies in the system of regulation and enforcement of laws;

Existing regulatory policies, along with the requirements to seek consent to mine in areas covered by large –scale patented claims raised negative reactions from traditional SSM operated by IP communities;

The existing policies on regulation and enforcement threaten the traditional way of small-scale mining and managing of resources in the IP community;

The regulation efforts of the government are perceived to be anti-SSM operations and pro-large scale mining operations;

The current regulation efforts encourage IP communities to assert their rights over land and resources.

Small-Scale Gold Mining CHALLENGES:

Data Sources: Israel and Asirot, 2002 Teves, 2008 Philippine Mining Almanac 2010

There is a need to re-visit and amend small-scale mining law (i.e. legal definition of small-scale mining)

There are existing conflicts among IP groups in SSM areas, especially when the area has an existing large-scale mining application / operation.

There is a huge challenge in the enforcement of laws and much more on the capacity of the local governments to enforce law.

Local community shall be capacitated on local development planning.

There shall be an alternative livelihood for SSM communities.

The shift from agriculture to small-scale mining of communities is a threat for the community (environment, health, food security and socio-cultural issues).

“MINAHANG BAYANIHAN PROGRAM”“The South Cotabato SSM Initiatives”

ECONOMY

ENVIRONMENT

SOCIAL

SUSTAINABLE MINING

GOOD GOVERNANCE

RESPONSIVECONVERGENCE

The quest for sustainability:

The Minahang Bayanihan Program aims to promote sustainable SSM by RESPONDING to current SSM issues and concerns, integrating the concept of CONVERGENCE and GOOD GOVERNANCE

GOVERNANCEGOVERNANCE

hared Governance

ersonnel Investment

ntegrating Technology

xecute Policies

ystem Overhaul

•S

•P

•I

•E

•S

RESPONSIVE:

apacitate to Motivate

nvolve to Resolve

ct the ACTS

C

I

A

E.O. 37, Series of 2013 entitled“ AN ORDER INTENSIFYING SMALL-SCALE MINING PERMITTING AND SAFETY REGULATION

in the province of South Cotabato”

•Notarized Oath of undertaking Small Scale Mine Safety Rules and Regulations

•Area Status Clearance certifying the applied site is not within highly critical disaster prone area

•Tribal Resolution/Certification interposing no objection

•Section 3. SSM ID System “No individual shall engage in any form of SSM activities without a Registered SSM I.D. which is valid for two (2) years.”

ederate System

roaden/expand Partnership

nter-agency cooperation

CONVERGENCE(BAYANIHAN)

F

B

I

Positive Results and Impacts

-Increased revenue-Increased budget for SSM development Program-Increased participation and involvement-Increased/Facilitated Compliance-Developed Social and Environmental Awareness-Capacitated and well informed miners-Strengthened transparency and accountability mechanisms in SSM operations in T’boli.

Towards improved Governance of the Extractive Industry for Sustainable Future

Compostela Valley Transparency Initiative

• Multi-Stakeholders’ Council on T & A organized last November 2012

Mandate of the Council• Institute policies, programs and mechanisms ensuring transparency and

accountability in the mining industry both large and small scale mining projects in the province

• Formulate, design and approve the Guidebook, tools and instruments for transparency and accountability in the mining industry;

• Design and implement reporting template for disclosure of information

• Conduct periodic review and monitoring of compliance by respective stakeholders to the policies, programs and mechanisms for transparency and accountability

• Prepare annual budget for inclusion in the annual appropriations of the Province.

Indigenous Peoples’ Response to Transparency Mechanism

in Compostela Valley

11 Municipalities

2 Congressional Districts

Home of the six tribes:

Mansaka

Mandaya

Dibabawon

Mangguangan

Manobo

Kagan

BRIEF PROFILE

Ancestral Domain Map of Compostela Valley Province

Estimated IP Population: 221, 068

ISSUED AND APPROVED CADTs

Mandaya Manobo Mangguangan & Dibabawon

Mandaya & Mansaka

Dibabawon

Mansaka

Dibabawon & Mangguangan

141,769.00090,413.8676

30,468.23

60,968.49

20,087.33

Land area (Comval):

428,120 has

Total: 345,701.91has.

Ancestral Domains are now taking center stage for Investments

Sectoral Distribution of FBI-FPIC Applicationssince February 2004-Present (%)

79.56

6.57

5.84

2.922.19

1.46.73

.73

Distribution of FBI-FPIC Applications of Miners in ComVal Since February 2004-Present

60.2% 38.9%

IP Initiatives on Transparency Mechanism

• Review the implementation of FPIC process;

• Efforts on Facilitating Compliance to Memorandum of Agreements; and

• Review programs and projects implementation by IPOs

Decision to extract/not to extract

Awarding of Contracts/ licenses

Fiscal Terms

Extraction Process

Trading of Commodities

Tax and revenue collection

Revenue Management and allocation

Development Project/ policies

Taking the principles of Value ChainBy experience, FPIC process has its effects to quality of MOA and its state of compliance by Parties

Lessons Learned on IP Transparency Mechanism

Improves the financial management system by making it more transparent;

Encourages people to become more responsible in the management of resources;

Strengthens indigenous institutions by improving credibility to people running it;

Assisting role of stakeholders is helpful to empower ICCs/IPs in exercising self-governance

Environmental Sustainability and Community Rights

Data Sources: Israel and Asirot, 2002 Teves, 2008 Philippine Mining Almanac 2010

Environmental sustainability in the mining areas can only be achieved if the local government and all stakeholders are well-informed, capacitated and open to transparency and accountability measures in the entire value chain.

An inclusive and participatory governance of the extractive industry involves a process of communication and behavioral change (individual, organizational / community level) of the stakeholders in the entire value chain .

Community rights can only be ensured when there are enabling policies (local and national – i.e. IPRA Law, Local Environment Code) and continuous community development trainings that will build the capacity and capability of the individuals and community to assert their rights towards management of natural resources.

Sound and well-implemented local policies are key to success.

Tey bong s’lamat!