Philippines Mining or Food Case Study 2

Philippines
Philippines: Mining or Food?
Case Study 2: Copper and Gold Mining
Zamboanga del Norte - Mindanao Island
by
Robert Goodland and Clive Wicks
for
The Working Group on Mining in the Philippines
Sustainable development is development that meets the needs of the present
without compromising the ability of future generations to meet their own
needs
The Brundtland Report, Our Common Future,
UN World Commission on Environment and Development, 1987
In a world overflowing with riches, it is an outrageous scandal that more than
826 million people suffer hunger and malnutrition and that every year over 36
million die of starvation and related causes. We must take urgent action now.
Jean Ziegler
UN Special Rapporteur on the Right to Food, April 2001
DEDICATION
The Working Group on Mining in the Philippines and the authors respectfully
dedicate this report to all the courageous and dignified people who have been
killed while protecting the environment and upholding human rights in the
Philippine archipelago.
Disclaimer
The views expressed in this report are those of the authors and not necessarily those
of the participating or supporting organizations. The authors have, however, done
their utmost to reflect the views of the many people they met in the Philippines and
the views and reports of the people and organizations who have commented on earlier
drafts if this report.
© Copyright Working Group on Mining in the Philippines 2008
First Published in 2008 by the Working Group on Mining in the Philippines,
28 Redington Road, London, NW3 7RB, United Kingdom
wgmpuk@tiscali.co.uk
ISBN Number: 978-0-9560616-0-7
Report authors: Robert Goodland and Clive Wicks
Report editors: Cathal Doyle, Ellen Teague, Sarah Sexton and Frank Nally.
Report layout and cover design Frank Nally and Cathal Doyle
Front Cover Photos:
-Placer Dome Marcopper Mine Marinduque Island by Dr Catherine Coumans,
MiningWatch, Canada;
- Rice fields on Authors Field Trip to Midsalip
The Working Group on Mining in the Philippines
The Working Group on Mining in the Philippines was established in 2007, after the
publication in January that year of the report, Mining in the Philippines: Concerns
and Conflicts. Based in Britain and chaired by the Right Honorable Clare Short MP,
UK’s former Minister of International Development it includes representatives from
the Columban Missionary Society, the Ecumenical Council for Corporate
Responsibility, Philippine Indigenous Peoples’ Links and IUCN- CEESP.
The Authors
Robert Goodland is an environmental scientist specializing in economic
development. He advised the World Bank Group from 1978 through 2001. He then
became the technical director to H.E. Dr. Emil Salim’s independent Extractive
Industry Review (http://www.ifc.org/eir) of the World Bank Group’s portfolio of oil,
gas and mining projects. He was elected president of the International Association of
Impact Assessment, and Metropolitan Chair of the Ecological Society of America.
He was awarded the World Conservation Union’s Coolidge medal in October 2008.
(RbtGoodland@aol.com)
Clive Wicks has 48 years of experience of working in engineering, agriculture and
environment, specializing in the impact of extractive industries on the environment.
He is a vice chair of IUCN-CEESP (IUCN’s Commission on Environmental,
Economic and Social Policy) and co-chairs SEAPRISE (IUCN-CEESP’s Working
Group on the Social and Environmental Accountability of the Private Sector). He
worked in the international environmental movement for the last 24 years, mainly
with WWF UK. He headed WWF UK’s African, Asian and Latin American
programs, and represented WWF at G8, World Bank, International Finance
Corporation, UNEP and UNDP meetings on extractive industries.
(Clivewicks@googlemail.com)
i
Acknowledgements
The Authors wish to thank all those who helped them, both during their trip to the
Philippines and in the last year, for the substantial information provided to help them
with their research. This report would not have been possible without the support of
many people in all the areas visited, including Indigenous Peoples, who opened their
hearts and shared their concerns with the authors about the environmental and human
rights abuses caused by mining. They are the real authors of this report.
However, in view of the vast number of extrajudicial killings that have taken place
since 2001, now believed to be over 1,000, including a Bishop of the Independent
Church, the authors are reluctant to name people or organisations in the Philippines.
The authors admire the many other people, including lawyers, some of whom have
also lost their lives while trying to protect their people from mining industry abuses.
The authors admire the courage of the politicians, bishops, priests, sisters and pastoral
workers of the Catholic Church and the leaders of many other faiths and none and
human rights lawyers who have the courage to speak out against the destruction that
mining is currently and will increasingly cause to their beautiful, fruitful and biodiverse archipelago. It has been a great honour and a humbling experience for the
authors to work with such brave and committed people.
They would like to thank the Local Governments Units, the Catholic Church,
especially the Columban Missionaries and the bishops, priests, sisters and
communities who welcomed them during their trip and provided accommodation,
transport and food for the team.
The best help the authors could provide was to apply their long years of experience
and professional knowledge of the extractive industry around the world and their
knowledge of environmental and human rights ‘best practise’, laws and conventions
in an impartial and professional way.
They would like to especially thank PAFID for their contribution to the mapping of
the areas visited in their February 2008 Field Trip, LRC-KSK-Friends of the Earth for
their expertise on the law and assisting Indigenous Peoples protect their rights,
Professor Arturo Boquiren, Professor Ernesto Gonzales for their contribution and
insights about the economics of mining versus environmental value and Cathal Doyle
of the Irish Centre for Human Rights for input on the rights of indigenous
peoples.Paul K.
From The Working Group on Mining in the Philippines (WGMP):
The Working Group would like to thank Robert Goodland and Clive Wicks for their
dedication and passion for human rights and environmental justice, which has led
them to generously give of their time and expertise to travel to the Philippines and
answer the call of an ever increasing number of communities to help them protect
their rights, their lands, their lives and livelihoods. We wish to thank Cordaid, the
Holly Hill Charitable Trust, Paul K. Feyerabend Foundation, the Columbans, the
IUCN-CEESP (Commission on Environmental Economic and Social Policy), for their
financial support to realise this report and maps.
ii
Case Study 2: Copper and Gold Mining Zamboanga del Norte - Mindanao
Island
Table of Contents
Background
Mining damage
Future plans?
Sibutad and Libay Visit
Sibutad and Libay Conclusion, Recommendation and Map
94
95
98
99
100
ANNEX: Table of Contents for Entire Report Including Case Studies
106
iii
Map of the Philippine Archipelago
Case Study Locations
5. MINDORO NICKEL
PROJECT
6. SIBUYAN
ISLAND
2. LIBAY SIBUTAD
3. TAMPAKAN
SAGITTARIUS
COPPER & GOLD
1. MIDSALIP
4. MATI DAVAO
ORIENTAL PUJADA
BAY
Report and Case Studies available in individual documents at:
http://www.piplinks.org/miningorfood
MAPS associated with these 6 Case Studies
are available at http://www.piplinks.org/maps
iv
Provincial Map of the Philippines1
1
Source Wikipedia
v
Case Study 2: Copper and Gold Mining Zamboanga del
Norte - Mindanao Island
Background2
The barangay (village) of Libay is located on the coast of
Sibutad3 in Zamboanga del Norte, one of the provinces in the
Zamboanga Peninsula in northwestern Mindanao. It is a
picturesque area with lush vegetation and rolling hills
covered in forest. At the foot of the hills are rice fields,
homes, and Murcielagos Bay, 4 which contains coral,
mangroves and important fishing grounds. It is one of the
most fertile areas of the Philippines, exporting commodities
to the mainland.
Bishop Jose Manguiran DD
Mineral deposits in the province of Zamboanga del Norte include chromite, gold,
bentonite, marble, limestone, quartz, pebbles and gravel. According to the website of
Philex Mining, Sibutad has measured reserves of 17.6 million metric tonnes of ore
containing an estimated 0.84 grammes of gold per tonne.
Libay is at the center of Philex Mining operations and is the home base of small-scale
miners. Before Philex’s arrival, local people remember that their seashore was so
clear: fish and seashells were found in abundance; fishermen never experienced foul
odours from the mountain that they believe to be from poisonous chemicals; people
did not experience drinking water shortages, or fear poison in their water. The farmers
were able to fully utilize the potential of vast tracts of rice fields. Some people also
engaged in small-scale mining to augment their income; people’s capacity for buying
increased, which led to more small businesses, especially food stores.
Philex Gold Inc., which operates, develops and explores gold projects in the
Philippines, was created in 1996 as a spin-off from the gold assets of Philex Mining
Corporation, a Philippine-based company that had been operating in the country for
around 40 years. It ran the Bulawan gold mine in Negros Island, and Sibutad, its
second mine, was billed to begin production in 1997. In its first year of existence,
Philex Gold claimed to have become the largest primary gold producer in the
Philippines with an aggressive exploration and acquisition program. Philex Gold was
81.8% owned by Philex Mining Corporation; it was listed on the Toronto Stock
2
Much
of
this
section
is
derived
from:
http://www.minesandcommunities.org//search.php?words=Libay
www.minesandcommunities.org/company/philex1.htm ; Tito Natividad Fiel, Program Coordinator
DIOPIM Committee on Mining Issues G/F, Diocesan Pastoral Center, Sicayab, Dipolog City (2006),
and from Patenaude (1999).
3
http://sibutad.zamboangadelnorte.com/
9/zamboanga-del-norte/sibutad/
4
and
http://www.maplandia.com/philippines/region-
http://www.dcmiphil.org/Bye-bye_Murcielagos_Bay.pdf
94
Exchange5 on 28th October 1996 under the trading symbol PGI and raised $23 million
for its Philippine operations through its initial public offering.6
Mining damage
In contrast to some of the other areas visited during the authors’ field visits, Sibutad is
an example of gold and copper mining that caused such destruction in the 1990s and
early 2000s that the government departments were eventually forced to suspend the
permits. Nonetheless, the damage remains, and there are fears that the mining may
start up again.
The problems started in 1995 when the machinery of Philex Gold arrived in Sibutad.
Philex began constructing diversion roads in Sibutad before the Department of the
Environment and Natural Resources (DENR) had granted the company a permit to do
so. Materials excavated from the diversion road were dumped down the hillside,
rather than being stockpiled according to mining legislation. Sedimentation from the
excavated materials clogged small creeks, from where it spread into rice paddies, and
then began to accumulate along the coastline. Community protests over the massive
earth-moving and resulting sedimentation into Murcielagos Bay did not stop Philex
from continuing its operations.
The DENR initially rejected Philex’s Environmental Impact Assessment (EIA) and
told the company to upgrade it. In January 1997, however, it granted Philex an
Environmental Compliance Certificate (ECC), and then, in April 1997, its application
for a Mineral Production Sharing Agreement (MPSA) for 3,888 hectares in Lablab
The town boomed almost immediately: its population soared to over 10,000, the
market for fish rocketed, employment soared and supply stores flourished – as did
prostitution, child labor, disease, gambling and violence. 7
Siltation and sedimentation
It was not long, however, before the direct impacts of the copper and gold mining
became apparent. At the end of October 1997, Philex’s Chair and Chief Executive
Officer Gerard Brim boasted that the company’s silt barriers were strong enough to
withstand six months of torrential rains. One week after this boast, on 6th November
1997, a flash flood led to a mudslide caused by the failure of one of Philex’s silt
dams. This was after just two hours of heavy rains. This torrential mud inundated
agricultural lands and irrigated rice fields, and destroyed five homes.
5
http://www.tsx.com/
6
The original sale of a company’s securities, in which the proceeds from the sale are received directly
by the company.
7
In 1995, the Department of Labor and Employment (DOLE) study reported 114 child laborers in
small scale mining (see Norman Jennings ed. 2000.) Child labor in small-scale mining: Examples from
Niger, Peru & Philippines, ILO.
http://www.ilo.org/public/english/dialogue/sector/papers/childmin/137e3.htm
Department of Labor and Employment, Region 9, Zamboanga: A study of the incidence of child labor
in Sibutad municipality, 1996. Footnote 26
http://www.ilo.org/public/english/dialogue/sector/papers/childmin/137en.htm#N_26_
95
This was just the beginning. Between 1997 and 2002, overflows from Philex’s tailings
dams repeatedly affected the immediate surroundings, causing mudslides that
continued to destroy rice fields, silt the bay (reaching 200 meters out to sea), and
damage mangroves, which resulted in rice production falling by half and massive fish
kills (Bautista 2008).
Heavy sedimentation of Murcielagos
Bay8 disrupted the ecological balance so
that marine life became weak and
diseased or simply died. Fishingdependent communities lost their
primary source of livelihood that the
bay once provided in abundance,
especially fish, shellfish, and seaweed.
They complained to government
agencies on several occasions about the
pollution of the Bay, the destruction of
their agricultural lands and the loss of
drinking water..
DENR eventually found Philex
responsible for the damage, not in
compliance with mandated precautions,
and lacking the necessary permits.
Despite these findings of reckless
laxity, DENR did not penalize Philex,
nor order it to suspend operations to
stabilize the area so as to prevent further
damage to agriculture, fisheries and
property (DENR 1997a.b.c.). Instead,
DENR ordered Philex to create a
monitoring team as part of its
Environmental Compliance – which the
company refused to do. The impacted
people and their advocates called upon
DENR to stop Philex’s operations
entirely until they could be rendered
safe and the company compliant with
national regulations. But the DENR
refused to act.
Mercury Poisoning
Murcielagos Bay was affected not only by sedimentation but also by mercury and
cyanide pollution from the mine spills. In September 1997, marine biologists from the
University of San Carlos at Cebu City, found a higher concentration of mercury in
8
Bye-Bye Murcielagos Bay Bye-bye, A Case Study of Philex Gold Philippines Incorporated in Sibutad,
Zamboanga del Norte by Andrea Patenaude, Originally Published in “Minding Mining! Lessons from
the Philippines” by the Philippine International Forum (PIF) in 1999. http://www.dcmiphil.org/Byebye_Murcielagos_Bay.pdf
96
sediments close to where Philex mining was operating (University of San Carlos,
1998).9 The DENR itself documented dangerously high levels of mercury in the Bay.
Cases of Minimata Disease and other evidence of mercury poisoning of humans were
reported. Another study in 2004 found that those who had been directly exposed to
mercury during the gold processing had significantly higher mercury and
methylmercury levels in their blood compared with those people who were indirectly
exposed.10
Philex’s major excavations were in
formerly artisanal miners’ areas,
and thus may have opened up
mercury-laced
residues
from
previous mining. Small-scale gold
mining activities using mercury
had begun in the late 1980s in
Sibutad, near to the Murcielagos
Bay. In addition, Philex bought
and re-processed mercury-rich
bags of tailings from artisanal
miners. Violence between Philex
and artisanal miners resulted in
Philex security guards killing
Crelim Cadalin, a small-scale
miner, in May 1998 when he was
trying to access his small-scale
tunnel while ‘trespassing’ on
Philex’s
site.
Philex’s
environmental director labeled this
killing as “a typical incident blown
out of proportion”.
Cyanide Contamination
Philex did acknowledge using the cyanide ‘heap-leach’ method to separate gold from
residues. The Cyanide Detection Test (CDT) Laboratory Network of the Bureau of
Fisheries and Aquatic Resources tested Philex waters on 24th February 1999, and
found them positive for the presence of cyanide. 11 Moreover, they found all the main
9
Potential impacts of the Lablab mine not only affect Libay but the surrounding bay and marine
reserves to the south. Many impacts may continue to accrue to the surrounding areas and to the
southern province of Misamis Occidental, which has 169 km of coastline fronting the rich fishing
grounds of Panguil Bay on one side and Iligan bay on the other (Fide: Science of the Total
Environment 354). Some forest remains on some peaks; there are brackish-water fishponds in the
region.
10
Nelia Cortes-Maramba et al, “Health and environmental assessment of mercury exposure in a gold
mining community in Western Mindanao, Philippines”, Journal of Environmental Management, Vol.
81, Issue 2, October 2006, pp.126-134.
11
The cyanide detection test was certified true and correct by Melessa G. Melchor, CDT Chemist, and
noted by Benita E. Manipula, Assistant Laboratory Director.
97
fish species to be contaminated with cyanide.
Philex reportedly contracted another mining
company, BHP, to carry out an Environmental
Impact Statement in 1999, but it was not made
available to the Government (University of San
Carlos 1998).
In 2002, however, DENR finally suspended the
mining operations of Philex. Nonetheless, locals
report that the company is continuing with
“small-scale” mining within the site using
mechanized equipment. At least 90% of the ore
was still remaining when the mine was closed.
“We believe that the Sibutad
Claims hold great promise
for the future”.
Philex Gold Inc
Annual Report 1996
Future plans?
The official reason Philex gave for suspending its mining operations was the low
price of gold at the time; there was also speculation that it did not have enough
resources to continue mining at their previous levels. Gold and silver doré bullion
bars were shipped for sale to the UK, Germany and Singapore.
During the current world financial crisis, more investors may shift to precious metals,
raising the price of gold. Whether that leads to more financing for gold mining
remains to be seen. In Sibutad, however, Philex employees have been seen talking to
barangay (village) leaders, and many communities fear that mining will expand.
Their fears have been exacerbated by the interest of mining corporation
FreeportMcMoRan in Philex. On 19th March 2007, Freeport-McMoRan acquired US
mining company Phleps Dodge for US$13.9 billion and 136.9 million stocks and
shares to become the world’s largest publicly traded copper mining company. As a
result of the takeover, Phelps Dodge became Freeport McMoRan Copper & Gold,
Inc., which owns 40% of Philex Gold.
On 3rd October 2007, Philex Gold announced that its wholly-owned subsidiary,
Philex Gold Philippines, Inc., had signed an agreement with PDEPI (Phelps Dodge
Exploration Philippines. Inc.), which is an indirectly 40%-owned subsidiary of
Freeport McMoran Copper & Gold Inc. The Earn-In Agreement concerns part of
PGPI’s Sibutad project tenements covering 6,954 hectares. The “Property” consists of
the areas covered by three permits: an Exploration Permit Application (EPA # 047IX) covering 5,846 hectares; a Mine Production Sharing Agreement (MPSA 63-97IX) covering 622 hectares; and an Application for Production Sharing Agreement
(APSA 73 -IX) covering 486 hectares.
Philex Gold has also announced another surprise move concerning its operations
elsewhere in Mindanao: a joint venture with the UK-based Anglo American
Exploration concerning the Boyongan copper-gold porphyry deposit in the province
of Surigao del Norte in north-eastern Mindanao which was discovered in August
2000. On 25th September 2008, Anglo Philex Gold Inc. stated that Philex Mining
Corporation (PMC) had approved the acquisition of Anglo American Exploration
(Philippines) BV’s 50% interest over the Boyongan copper-gold porphyry property
for $55 million, giving Philex and its subsidiary, Philex Gold Philippines, Inc., full
98
control over the property. PMC will apparently buy the shares currently owned by
Anglo American in the joint venture companies, Silangan Mindanao Mining
Company, Inc. and Silangan Mindanao Exploration Company, Inc.; these companies
are the owners of four mining tenements, including Mineral Production Sharing
Agreement (MPSA) No. 149-99-XIII, which cover five parcels of land including the
Boyongan deposit.12
Many deals entered into by both local and foreign mining companies and mining
multinationals profit from exploration and mining licenses and permits and mineral
data by using them for speculative purposes rather than with a view of exploring or
mining themselves.
Sibutad and Libay Visit
The authors visited Sibutad and Libay during February 2008 and met Bishop Jose
Manguiran who strongly opposes mining and logging because of the environmental
damage and human rights abuses caused in his diocese, especially to the indigenous
Subanen people.
They went to the Libay mining sites in Zamboanga del Norte in Mindanao and met
with small farmers and fisherfolk, who had gathered at a seminar on sustainable
agriculture organized by the local communities and the Diopim13 Committee on
Mining Issues (DCMI)14 of the Catholic Church, which is assisting communities
affected by mining projects.
The team visited the area where mine spills and landslides occurred and could clearly
see the extent of the damage caused by the collapse of the tailings dam. Some
attempts had been made at erosion control by dyking and planting seedling trees, but
it looked incommensurate with the need. The seedlings were not flourishing and the
dykes were eroding. We also saw the Bay and coastal area, which showed signs of
returning seagrass and mangroves. Fisherfolk reported that fish stocks were slowly
restoring themselves since the mining was halted.
12
http://www.miningtopnews.com/philex-gold-announces-sale-by-anglo-of-50-interest-in-boyonganproject-to-philex-mining-corporation.html
13
The DIOPIM Committee on Mining Issues (DCMI) is an acronym for the dioceses’ headed by the
Bishops of Dipolog, Ipil, Ozamiz, Pagadian, Iligan and Marawi.
14
See http://www.dcmiphil.org/dcmi/index.php for The DIOPIM Committee on Mining Issues
(DCMI) is a non-governmental organization (NGO) based in Dipolog City, the Philippines. The
committee is spearheaded by the Roman Catholic Church and composed of Social Action Directors
with inputs from NGOs and Indigenous People’s groups. See also The Halifax Initiative - Canatuan
Polymetallic Mine http://www.halifaxinitiative.org/index.php/miningmap/aen45a510a98928d
99
Sibutad and Libay Conclusion, Recommendation and Map
The authors believe that mining in the Zamboanga Peninsula will severely damage the
remaining forests and water catchment quality, increase flooding, erosion, siltation
and landslides. It will thereby reduce production of agricultural, marine resources,
and bio-diversity, displace populations, re-engender conflict, and affect the human
rights of local communities, particularly the Subanen, the largest population of
indigenous people in the Philippines. Mining will increase poverty and limit the
ability of future generations to survive.
The authors conclude that mining is not compatible with irrigated agriculture notably
rice or fish production and is inappropriate in areas such as the Zamboanga Peninsula
in western Mindanao. The authors strongly recommend that the Government bans
mining in critical water catchments and prioritises the immediate protection of the
environment including reforestation, food security and human rights including the
right to a healthy environment for present and future generations.
100
MINING TENEMENTS STATISTICS REPORT AS OF MARCH 2008
REGIONAL OFFICE NO. IX - ZAMBOANGA PENINSULA
III. Under Process
LIST
OF
MINERAL
PRODUCTION SHARING
AGREEMENTS (MPSA)
TENEME TENEMENT
NT ID
HOLDER
Under
Preliminary
Evaluation
1. APSA Oreline Mining
000015-IX Corporation/Ben
*
guet Corp./
Toquero
Geologists and
Affiliates
2. APSA Oreline Mng
000098-IX Corp./Toquero
Geologist & Aff
3. APSA PNOC-Energy
000017-IX Dev''t
Corporation
4. APSA Emiliano
000022-IX Veneracion Jr.
Pending Area Clearance /
Status
1. APSA Maharlika
000082-IX Dragon Mining
Corporation
2. APSA Ester M.
000110-IX Valencia
3. APSA Elmo B. Valencia
000111-IX
4. APSA Mt. Sinai Mng.
000125-IX Explo. & Devt.
Corp.
DATE
FILED
LOCATION
04-10-92
R.T.Lim,
Zamboanga 4,212.00
Sibugay & Siocon, ZDN
29/12/19
99
05-26-92
RTLim,
Zambo.Sibugay;Siocon
ZDN
Alicia, ZDS
2,340.00
07-31-92
Alicia, ZDS
486.00
09-15-97
Polanco,Kalawit&Osmeñ 7,533.00
a, ZDN;Ipil,Zsibugay
Chromite
01-27-05
Brgy. Pange, Siayan,
810.00
Zamboanga del Norte
Brgy. Pange, Siayan,
1,134.00
Zamboanga del Norte
Tungawan,Z.
10,125.00
Sibugay:Gutalac&Dapita
n, ZDN;
Suminot&Dumingag,
ZDS; Vitali,ZC
Gold, Silver, etc.
01-28-05
05-24-05
Undergoing
Revisions/Rectifications
1. APSA Alberta
03-31-05
000119-IX Resources Dev't.
Corp.
2. APSA MASADA
04-28-05
000122-IX Resources &
Mng. Corp.
Undergoing Publication, Posting, Radio
Announcement
1. APSA Butuan Logs Inc. 08-11-97
000076-IX
2. APSA Maharlika
09-15-97
000082-IX Dragon Mining
Corporation
3. APSA Maharlika
12-16-97
000085-IX Dragon Mining
Corporation
4. APSA BB Minerals
04-02-98
000087-IX Corporation
5. APSA Rojuman Realty 04-19-99
000095-IX & Dev't
Corporation
6. APSA Curuan Mineral 04-11-03
000100-IX Resources and
Dev't. Corp.
7. APSA Mindanao
03-08-04
000105-IX Mining &
Sindangan, ZDN
AREA
(Has)
COMMODITY
REMARKS
Gold
3,888.00 Gold, etc.
8,100.00
Gold
Transfer
Order
(09-28-07)
Gold, Silver,Iron, etc.
Managanese, IronGold, Silver,
etc.
Gold,Copper, Silver, etc.
Ipilan,Salug;Pange,Siaya 8,100.00
n, ZDN, Balagon,
Midsalip, ZDS; Bitoon &
Dicoyong, Sidangan,
ZDN
Managanese, IronGold, Silver,
etc.
Siraway, ZDN
Gold
3,645.00
Polanco,Kalawit&Osmeñ 7,533.00
a, ZDN;Ipil,Zsibugay
Chromite
Transfer
Order(09-2807)
Transfer
Order (09-0407)
Kulasihan, Tampilisan,
ZDN
810.00
Chromite
Tipan, Pitawi,Kanapon,
Sibalic,Gutalac, ZDN
4,536.00
Chromite
Tigbalangao, Ligian,
Tungawan, ZDS
5,022.00
Gold
Brgy. Mina, Curuan,
Zamboanga City
2,430.00
Gold, Silver, etc.
Gitalus, Midsalip &
Depore, Bayog, ZDS
7,573.00
Iron,Gold, Silver, etc.
101
8. APSA
000106-IX
9. APSA
000112-IX
10. APSA
000113-IX
11. APSA
000114-IX
Mineral
Resources Corp
Edmund B.
Bilang
Astron
Resources
Mining Corp.
Matatag Mining
Corp.
31st Century
Mining Corp.
03-19-04
02-21-05
02-21-05
03-03-05
12. APSA Shamrock Metal 03-03-05
000115-IX & Mineral
Processing Corp.
13. APSA Jeffrey Andrew 03-11-05
000117-IX L. Ocampo
14. APSA Astron
000120-IX Resources
Mining Corp.
15. APSA MASADA
000121-IX Resources &
Mng. Corp.
16. APSA Mt. Sinai Mng.
000123-IX Explo. & Devt.
Corp.
17. APSA Rigid Agreggates
000127-IX and Mining Corp
18. APSA Greater Asia
000128-IX Mininig & Dev't.
Corp.
19. APSA Greater Asia
000129-IX Mininig & Dev't.
Corp.
Sitio Talaptap, Brgy.
Saaz, Gutalac, ZDN
Brgy. Lunday &
Litawan, Zamboanga Del
Norte
Brgy. Litawan, Dinolan
& Basakm, ZDN
Brgy. Peñaranda,
Kabasalan , Zambo.
Sibugay
810.00
Gold, etc.
4,131.00
Iron, Gold, Silver, etc.
4,293.00
Iron, Gold, Silver, etc.
8,100.00
Gold, etc.
Brgy. Seroan & Seres,
Katipunan ZDN
8,100.00
Chromite, etc.
Brgy.
810.00
Sanghanan,Kabasalan,
Zambo. Sibugay
Tigbucay,Tigpalay,Tunga 3,969.00
wan,Z.Sibugay
Managanese, IronGold, Silver,
etc.
04-20-05
Longilog,Titay,Caparan, 8,100.00
Ipil, Z. Sibugay
Managanese, IronGold, Silver,
etc.
05-03-05
Pange,Siayan;Bato,Sinda 6,075.00
ngan,ZDN
Managanese, IronGold, Silver,
etc.
07-20-05
La Paz, Baluno,
Zamboanga City
Lintangan & Malayal,
Sibuco, ZDN
1,458.00
Gold, Copper, Lead, Zinc, etc.
6,399.00
Iron., Manganese, Gold, Silver,
Etc.
Balukbahan, Bayog, ZDS 2,673.00
Iron., Manganese, Gold, Silver,
Etc.
Siayan, Zamboanga Del
Norte
Diplahan, Zamboanga
Sibugay
Sibuco, ZDN
810.00
Chromite, Manganese, Gold, etc.
405.00
Gold
8,100.00
Gold
Rizal, ZDN
486.00
Gold
04-06-05
08-02-05
08-02-05
Published/Posted/Announced
1. APSA Alberto D.
06-07-05
000126-IX Sildlao
2. APSA Daihan Graciano 12-23-93
000036-IX
3. APSA Jessmag, Inc.
08-01-95
000058-IX
4. APSA Philex Gold
03-05-97
000073-IX Philippines Inc.
Endorsed to Central Office for Final
Evaluation
1. APSA Geotechniques
03-05-04
000104-IX and Mines Inc.
2. APSA Holcim Phils.
03-08-05
000116-IX Manufacturing
*
Corp.
3. APSA A.P Tang Mning 03-11-05
000118-IX Corp.
*
Pending NCIP Certification ICC
Consent, etc.
1. APSA Maharlika
06-29-92
000019-IX Dragon Mining
Corporation
2. APSA Zamboanga Gold 09-18-92
000023-IX Mining Corp.
3. APSA EMACO, Inc.
12-03-93
000034-IX
4. APSA TVI Resource
01-21-94
000039-IX Dev't.(Phils) Inc.
5. APSA Mingson Agro- 05-29-96
000063-IX Urban Dev't
Corp.
6. APSA Roldan Dalman 11-14-96
000064-IX
Iron, Gold, Silver, etc.
Midsalip, Zamboanga del 567.00
Sur
Brgy. Kipit,Labason &
486.00
San Juan,Gutalac ZDN
Iron, Gold, Silver,
etc.
Silica Sand
returned/re:C
ert. Panel A.
form. Alsons
Cement Corp.
Brgys. Lumponid &
Datagan,Midsalip,ZDS
6,200.00
Iron, Gold, Silver,
etc.
form. SDV P.
Mng. Corp.
Titay, Zamboanga
Sibugay,
& Labason, ZDN
Siocon, ZDN
10,449.00
Manganese
Transfer
Order (09-0407)
2,673.00
Gold,Copper
Sibuco, ZDN
4,131.00
Bentonite Clay
Siocon, ZDN
2,754.00
Copper,Silver
Labason & Liloy, ZDN
5,015.51
Silica
Jose Dalman, ZDN
486.00
Return to
R.O. for rePendng FPIC
Copper,Gold
102
7. APSA
000074-IX
8. APSA
000075-IX
9. APSA
000086-IX
10. APSA
000094-IX
11. APSA
000099-IX
Butuan Logs,
Inc.
Libres and Sons
Mining & Dev't
Corp.
Delram Mineral
Corporation
Juraclex Dev't.
Inc.
Pola Mining
Corp.
12. APSA 168 Ferrum
000101-IX Pacific Mining
Corp.
06-04-97
Panganuran,Sibuco, ZDN 4,832.00
Gold, etc.
08-08-97
Tampilisan & Liloy, ZDN 4,941.00
Laterite
03-06-98
Tipan, Bakong,
1,458.00
Mamawan, Gutalac, ZDN
Lintangan, Pangan,
3,969.00
Sibuco, ZDN
Siraway, ZDN
4,131.00
Chromite
02-18-03
02-21-03
12-22-03
13. APSA Hard Rock
03-04-04
000103-IX Mineral Trading,
Inc.
Revision of
loc. map
Gold
Gold
Canipay, Midsalip,
Datagan, Bayog and
Depore, ZDS
8,100.00
Lunday, Sibuco,
Zambaonaga del Norte
and Cuatro Ojos, Vitali,
Zamboanga City
6,075.00
form.
Juraclex
Dev't. Inc.
Iron, Gold, Silver, formerly
etc.
Cebu Ore
Mng. & Min.
Res. Corp.
Iron, Gold, Silver, etc.
AREA
COMMODITY
REMARKS
(Has.)
5,565.00
Gold
(converted to
EXPA)
VIII. Converted to other
Tenements
TENEME TENEMENT
NT ID
HOLDER
1. APSA Philex Gold
000056-IX Philippines Inc.
DATE
FILED
04-1095
2. APSA Rigid Aggregates 03-26000107-IX Corporation
04
3. APSA Rigid Aggregates 03-26000108-IX Corporation
04
4. APSA Linktone
000124-IX Intl.Mng. Corp.
05-1805
DAT LOCATION
E
CONVERTED
11- Dapitan City, ZDN
1904
05- Kumalarang, ZDS &
30- Buug, Zamboanga
05
Sibugay
05- Milidan, Baliguian &
30- Bakong, Gutalac, ZDN
05
06- Vitali,Licomo,ZC
3005
2,430.00 Manganese,
Chromite, Iron,
etc.
7,290.00 Manganese,
Chromite, Iron,
etc.
7,776.00 Managanese,
IronGold, Silver,
etc.
(converted to
EXPA)
1,159.00 Chromite
DENR Case
No. 8074
(converted to
EXPA)
(converted to
EXPA)
NOTE:
Mt. Kabasalan Mng. & Explo.
Gutalac, Zamboanga del
Co. vs
Norte
Leuk Reg Min. Res. Dev't. Corp
103
104
Mining in progress
Farm and house before and after mining starts
Clare Short MP with family
The pictures show mountains and irrigated rice fields which will be damaged by mining and a family with the Right Honorable Clare Short the former
Minister for International Development for the UK Government after they were expelled from their land by a mining company.
The experts conclude that mining is not compatible with irrigated agriculture notably rice or fish production and is inappropriate in areas such as the
Zamboanga Peninsula. The experts strongly recommend that the Government bans mining in critical water catchments and prioritises the immediate
protection of the environment including reforestation, food security and the Human Rights for present and future generations.
The experts believe that Mining will severely damage the remaining forests and water catchment quality, increase flooding, reduce production of
agricultural and marine resources, displace populations, engender conflict, affect the human rights of local communities particularly the indigenous people,
increase poverty and limit the ability of future generations to survive.
There is no Strategic Environmental Assessment available which would critique the risk of planned and existing mining operations, and consider their
cumulative impacts on livelihood and food production, factoring in the affects of high rainfall, erosion, land slides and intensive seismic activity. Without
this information Free Prior Informed Consent processes are invalid.
Experts commissioned by the Working Group on Mining in the Philippines visited Mindanao in February 2008, (See report, Philippines: Mining or Food?)
and helped produce this
map which indicates the potential negative impacts of mining on forests, agriculture and marine resources as well as on indigenous people’s ancestral lands.
The experts cannot reconcile the prioritisation of mining with the governmental obligation to reduce conflict and guarantee food security for a rapidly
expanding population.
The Zamboanga Peninsula in western Mindanao, with a current population of 3,230,094 (estimated at 5.5 million by 2036), is vital for food production. In
spite of being badly damaged by logging, the forests in the mountains sustain critical watersheds necessary for agriculture and fish farming. Numerous
rivers and shallow coastal waters provide ideal breeding grounds for fish but these are easily damaged by pollution particularly acid drainage and siltation
from mines and deforestation.
The Philippine government has identified Luzon and Mindanao as its food baskets but states that: “The sad irony of Mindanao as food basket is that it
has some of the highest hunger in our nation. It has large fields of high productivity, yet also six of our ten poorest provinces” (Extract - State of the
Nation Address 2008).
Sustainable Development and Mining Industry in Zamboanga Peninsula, Philippines
105
ANNEX Entire Report Table of Contents
Foreword to Second Mining Report
Message from Senator Aquilino Pimentel Jr
Message from Bishop. Zacarias C. Jimenez, DD
vii
viii
ix
.
EXECUTIVE SUMMARY AND RECOMMENDATIONS
Summary recommendations to the Philippine Government
Summary recommendations to Mining Corporations
Summary recommendations to Development Agencies, NGOs, World Bank
Summary recommendations to the Investor Community
Summary recommendations to Mining-Impacted Communities
xi
xvi
xxi
xxiii
xxv
xxvii
INTRODUCTION
1
Chapter 1: Mining and Food Security
1.1
The Importance of Rice
1.2
The 2008 Food Price Frenzy
1.3
Peak Oil, Peak Food, Peak Phosphate, Peak Water & Peak Stable Climate
1.4
Why Does the Philippines Import Rice?
1.5
Reasons for Decreased Domestic Rice Production
4
4
5
7
8
9
Chapter 2: Mining and Forests
2.1
Deforestation Harms Rice and Fisheries
2.2
The Need for Watershed Conservation
2.3
Deforestation Increases Poverty
2.4
Indigenous Peoples and Forests
2.5
Rainforestation
11
11
13
13
13
14
Chapter 3: Mining and Marine Resources
3.1
Mining and Fisheries
3.2
Pollution From Mining
15
15
15
Chapter 4: Flawed Government Policy
4.1
Scale of the Mining Problem
4.2
Conflict of Interest
4.3
DENR Promotes Mining and Demotes Environment
4.4
Corruption in Environmental Governance
4.5
Philippine Mining Act, 1995
4.6
Separate Exploration from Exploitation
4.7
Post-Mining Rehabilitation Must Be Enforced
4.8
Government and Society Split on the Benefits of Mining
18
18
20
20
22
23
29
29
32
Chapter 5: Indigenous Peoples
5.1
Indigenous Peoples and the National Commission on Indigenous Peoples
5.2
The Role of the National Commission on Indigenous Peoples
5.3
Rights of Ownership and Ancestral Domain
5.4
Right to Develop Lands and Natural Resources
5.5
The Right to Benefits
36
36
37
38
38
38
106
5.6
5.7
5.8
5.9
Protections Afforded by Indigenous Peoples’ Rights Act
Free and Prior Informed Consent
FPIC and ESIA
Indigenous Peoples need Environmental and Social Impact Assessments
39
39
41
42
Chapter 6: Human Rights, Militarization and Mining
6.1
Human Rights and Mining
6.2
Official Reports Documenting Human Rights Violations
6.3
Human Rights, Civil Society and the Catholic Church
6.4
The Human Security Act
6.4
Further Militarization of Mining Projects and Investment Defense Forces
6.5
The Relationship Between DENR and NCIP
6.6
DENR Engulfs NCIP
44
44
45
47
48
49
51
51
Chapter 7: Philippine Mining Economics
7.1 Deficiencies in Mining Economics
7.2
Internalizing Currently Externalized Costs
7.3
Policy Options for Internalization
7.4
Benefit Allocation
7.5
The Resource Curse
7.6
Impact-Benefit Agreements
7.7
Assessment of Cost Externalization in Philippine Mining
7.8
Mining is the wrong Engine for Growth
53
53
54
54
55
55
57
59
61
Chapter 8: The Position of the International Agencies
8.1
The World Bank Group
8.2
International Development Assistance to DENR
70
70
72
FIELD TRIP CASE STUDIES
73
Case Study 1: Iron Ore & other Minerals, Midsalip, Zamboanga del Sur - Mindanao
Island
75
Background
75
Water, Food and Livelihoods
77
The Threat of Mining in Midsalip
79
Potential Impacts and Opposition
82
Midsalip Visit
84
Midsalip Conclusion, Recommendation and Map
85
Case Study 2: Copper and Gold Mining Zamboanga del Norte - Mindanao Island
Background
Mining damage
Future plans?
Sibutad and Libay Visit
Sibutad and Libay Conclusion, Recommendation and Map
94
94
95
98
99
100
Case Study 3: Copper and Gold Mining in Tampakan, South Cotabato – Mindanao
Island
106
Background
106
Threat of a huge open-pit copper and gold mine
108
107
Uncertainty Raising Fears
Visit to South Cotabato
South Cotabo Conclusion, Recommendation and Map
113
118
121
Case Study 4: Nickel and Cobalt in Davao Oriental – Mindanao. The Hallmark
Project
Background
Proposed Mining
Environmental and Social Impacts
Opposition and Deficiencies in Consultation
Visit to Pujada Bay / Mt Hamiguitan
Pujada Bay Conclusion, Recommendation and Map
126
126
127
129
31
134
135
Case Study 5: Nickel Mining – Mindoro Island
Background
Mining Proposal
Opposition
Indigenous opposition
Visit to Mindoro
Company continues to plan
Governor Issues Order to Stop Mining Activities
Mindoro Conclusion, Recommendation and Map
142
142
143
144
145
148
149
156
161
Case Study 6: Gold and Nickel Mining - Sibuyan Island
Background
Forest Resources Already Threatened
Proposed Industrial Mining
Opposition
Visit to Sibuyan
Sibuyan Island Conclusion, Recommendation and Map
172
172
173
173
175
176
177
Recommendations to the Philippine Government
Recommendations to Mining Corporations
Recommendations to Development Agencies, NGOs & the World Bank Group
Recommendations to the Investor Community
Recommendations to Mining-Impacted Communities
181
191
196
199
202
Annex A: Church Declarations and Position Papers on Mining
Annex B: Civil Society Reports on Human Rights Violations
Annex C: Strategic Environmental Assessment (SEA)
Annex D: Health Impact Assessment (HIA)
Annex E: Literature Cited and Guide to Further Information
Annex F: Mines and Communities (MAC): The London Mining Declaration.
Annex G: Geohazards and Earthquakes in the Philippines
Annex H: Philippine Biodiversity Conservation Priorities
206
212
213
217
221
246
251
260
108
About the Authors
Robert Goodland is an environmental scientist specializing in economic development.
He advised the World Bank Group from 1978 through 2001. He then became the
technical director to H.E. Dr. Emil Salim’s independent Extractive Industry Review
(eir.org) of the World Bank Group’s portfolio of oil, gas and mining projects. He was
elected president of the International Association of Impact Assessment, and
Metropolitan Chair of the Ecological Society of America. He was awarded the World
Conservation Union’s Coolidge medal in October 2008. (RbtGoodland@aol.com)
Clive Wicks has 48 years of experience of working in engineering, agriculture and
environment, specializing in the impact of extractive industries on the environment. He
is a vice chair of IUCN-CEESP (IUCN’s Commission on Environmental, Economic and
Social Policy) and co-chairs SEAPRISE (IUCN-CEESP’s Working Group on the Social
and Environmental Accountability of the Private Sector). He worked in the international
environmental movement for the last 24 years, mainly with WWF UK. He headed WWF
UK’s African, Asian and Latin American programs, and represented WWF at G8, World
Bank, International Finance Corporation, UNEP and UNDP meetings on extractive
industries. (Clivewicks@googlemail.com)
.. Perhaps reluctantly we come to acknowledge that there are also scars which mark the surface of our
earth: erosion, deforestation, the squandering of the world’s mineral and ocean resources in order to fuel
an insatiable consumption. Some of you come from island nations whose very existence is threatened by
rising water levels; others from nations suffering the effects of devastating drought. God’s wondrous
creation is sometimes experienced as almost hostile to its stewards, even something dangerous. How can
what is “good” appear so threatening? ...My dear friends, God’s creation is one and it is good. The
concerns for non-violence, sustainable development, justice and peace, and care for our environment are
of vital importance for humanity.
His Holiness Pope Benedict XVI, 23rd World Youth Day, Sydney, Australia, July 12-21, 2008
Photos if the fact-finding trip can be found on:
http://workinggrouponmininginthephilippines.blogspot.com
Working Group on Mining in the Philippines
(WGMP)
28 Redington Road, London, NW3 7RB
wgmpuk@tiscali.co.uk
1