Sunday, March 11, 2012

‘Philippine Mining Act cannot be saved by executive order’ – environmentalists



http://bulatlat.com/main/2012/03/09/%E2%80%98philippine-mining-act-cannot-be-saved-by-an-executive-order%E2%80%99-%E2%80%93-environmentalists 
‘Philippine Mining Act cannot be saved by executive order’ – environmentalists
Published on March 9, 2012

Even if Aquino manages to get a bigger share in the mining firms’ declared profits, it would be nothing compared to the mining firms’ profits and worth of ‘plundered’ wealth.
By MARYA SALAMAT
Bulatlat.com

MANILA – A growing number of local ordinances are coming out in the Philippines declaring their specific areas of jurisdiction as mining-free zones, and specifically banning open pit mining. “It can only mean that at the local level, people are rejecting mining,” said Rep. Teddy Brawner Baguilat from the lone district of Ifugao in a forum at the Catholic Bishops Conference of the Philippines (CBCP) in Intramuros, Manila early this week.

Indeed, from Cordillera in the North down to Palawan, Bicol and Negros in the Visayas and Caraga in Mindanao, communities and indigenous peoples have been banding together into anti-mining alliances, with some supported by the Church, and successfully convincing or pressuring their mayors, councilors, governors and representatives to ban the operation of destructive mining in their areas.

This, on top of the natural wealth and beauty of the Philippines, is a great piece of good news, said Sr. Stella Matutina of Panalipdan from Mindanao at the recent 3rd Peoples’ Mining Conference late last week.

The bad news, she hastily added in Filipino, is that “massive destruction of our beautiful environment is happening because of greed for profits by a few.” That greed, based on reports of anti-mining activists in the same conference and elsewhere, is being nurtured and advanced by the Philippine Mining Act of 1995.

The Philippine Mining Act of 1995 is widely blamed for having opened wide the country’s mineral and non-mineral wealth to as much as 100-percent foreign exploitation. “This law has opened the floodgates to widespread plunder of our natural wealth, unprecedented environmental degradation and worsening human rights violations,” said Renato Reyes Jr., secretary-general of multi-sectoral alliance Bayan.

As such, many groups greeted the 17th year of Philippine Mining Act with protests and calls for its repeal. Even an impending executive order from MalacaƱang promising to address complaints about mining, but still hinged on the Mining Act of 1995, did not escape the fury of the protesters.

Last Saturday, on the 17th anniversary of the derided Mining Act, some 600 protesters from various regions, indigenous groups and various sectors criticized President Benigno “Noynoy” Aquino’s policy on mining as “subservient to foreign interests.” In Mendiola near MalacaƱang they burned an effigy of a foreign puppeteer controlling a marionette, which happens to be the Philippine president astride a backhoe.

Aquino merely interested in revenue-sharing

Lip service, barefaced lies, or “greenwashing,” is how the leaders of local communities dislocated and disadvantaged by mining frequently describe the claims made by mining industry bigwigs and the Aquino government.

Bayan suspects that “From all indications, the Aquino government has acceded to the demands of the big foreign mining firms and is now merely concerned about making this acceptable to the opposition groups.

The Mining Act today faces unprecedented opposition from a broad cross-section of society, including inside and outside parliament, indigenous communities, schools, church groups, environmental groups and armed rebels in the countryside. There is a growing clamor to stop destructive large-scale foreign mining in so many provinces and regions nationwide, noted Bayan.
To counter these clamors, the government and the mining firms use billions of peso worth of “greenwashing or PR gimmicky” or multimedia lies, and “state-sponsored terrorism of military forces” in areas covered by mining, according to the Kalikasan-PNE.

Bautista of Kalikasan-PNE said that “at least 40 human rights violations since 2001, of which 37 are politically-motivated killings, two are frustrated murders and one is a case of enforced disappearance,” have been attributed to struggles against mining.

“The promise of ‘economic and social development’ by mining companies is just lip service. The lopsided mining policies have significantly contributed to the degradation of ‘host communities,’ which companies see only as repositories of minerals–not as homes to families and individuals,” said Kakai Tolentino, Dumagat Spokesperson of KATRIBU Partylist.

“When they destroy what’s underneath, where would they relocate those who live above it?” asked Sr. Stella Matutina. She shared how in some places in the Caraga region, for example, the people have to evacuate every six months due to the simultaneous entry of mining firms and the military. More than 42-percent of Caraga’s lands are covered by mining permits and applications, excluding areas approved for coal mining, said Sr. Stella.

In Rapu-rapu in Bicol, almost the entire island is targeted for mining, with some villages already leveled down by mining. As much as 70-percent of Cagayan Valley coastlines are being dredged or up for dredging for magnetite mining, said Santos Mero, member of the Ibaloi tribe and Cordillera Peoples’ Alliance. He said that almost the entire area of the Cordillera region is covered by mining permits or applications.

Yet, mining has contributed only slightly to the national economy. Based on a study on transparency issues in Philippine mining, it contributed only 0.91-percent to GDP from 2001-2009, and a mere 0.376-percent average share of total employment from 1990-2004.

Seventeen years of Mining Act have given a total of more than a million hectares of Philippine lands to foreign mining corporations’ control. The law gives each of them as vast as 81,000 hectares for a period of 25 to 50 years, with little in return except for a 2-percent excise tax. But critics said this is offset by other tax exemptions such as the eight to 10 years tax holidays.

Worse, the Bureau of Internal Revenue is probably collecting less excise tax than the actual collectible, observed Maita Gomez who researched on Philippine Mining Industry’s transparency issues. Gomez said the Philippines exported more minerals than the mining companies have reportedly produced, suggesting that they may have under-declared their production. “No wonder the mining firms are very happy operating here,” she said.

It is this glaring inequity in sharing that the Aquino government is reportedly seeking to address in a new mining Executive Order, only the Chamber of Mines is opposed to it. But even if Aquino was to have his way in carving out a slightly bigger share from the mining firms’ declared profits, that is just “a drop in the bucket compared to the billions of profits and worth of mined wealth carted out of the country each year,” said Gabriela Women’s Partylist Luzviminda Ilagan.

As it stands, mining is an extractive industry that does not develop the economy, said Bayan. They charged that the foreign mining firms and their local counterparts are apparently merely interested in exporting the country’s resources, which has grown at a rate of 27.96 percent from 2005-2010.
The Philippine Mining Act of 1995 is beyond saving or revision, according to the environment defenders. What is needed is mining moratorium, they said, and “this must stand until we are able to put in place a pro-people, pro-environment mining law,” said Clemente Bautista, national coordinator of an environmentalists’ coalition called Kalikasan PNE.

In Congress the progressive partylist bloc has a pending proposed bill seeking to allow mining only when an industrialization program calls for it, and if the affected community truly gave their consent.


What ails the Philippine mining sector?

For municipalities and provinces concerned for their environment and people, the local government officials can invoke their powers and rights to protect their communities.

The national mining law which seeks advantages for the national government seems to be viewed by some as disadvantageous to their communities as evidenced by their anti-mining measures.

Here's a copy-paste of an article that mentions the points above:


http://www.abs-cbnnews.com/business/09/13/11/what-ails-philippine-mining-sector
What ails the Philippine mining sector?
Posted at 09/14/2011 2:40 AM | Updated as of 09/14/2011 9:48 AM
 
 
MANILA, Philippines - Mining investments in the Philippines this year are forecast to hit $2.8 billion, double initial forecasts of $1.4 billion, and the highest annual figure since 2005 when the sector was opened fully to foreigners.

The Southeast Asian country, which sits on an estimated $1 trillion worth of mineral resources, wants to attract more mining investors and take advantage of higher global metal prices to create jobs and stimulate the domestic economy.

Investment policy flip-flops and a strong anti-mining lobby, however, have slowed development and the chances of boosting investments in the sector.

What is the government's stand on mining? 

Investment of $560 million in Aquino's first six months in office last year was in existing projects.
But hopes for new operations have grown after the Environment department completed in July an eight-month "cleansing" process aimed at getting rid of mining speculators.

The proliferation of mining speculators, or those given permits but have not started any projects, has discouraged serious investors and the development of the country's mining industry.

The government's use-it-or-lose-it policy has resulted in the cancellation of hundreds of permits for non-moving projects and the opening of about 5 million hectares of potentially mineralised areas across the archipelago to new investors.

The government is also seeking a review of fiscal incentives in the Mining Act to get more revenues to plug a huge budget gap.

But the 2010/2011 Fraser Institute annual survey of mining companies showed the Philippines was among the least attractive mining territories in the world, although it improved its ranking to 66th out of 79, from 70th out of 72 in the previous survey.

The index measures overall policy attractiveness based on taxation, infrastructure, political stability, labour issues, security and environmental regulations.

What is the status of the country's biggest mining project?

The $5.9 billion Tampakan copper-gold project of Xstrata Plc in the southern province of South Cotabato -- Southeast Asia's largest undeveloped copper-gold prospect -- is under threat from an open-pit mining ban imposed by the local government.

The justice, environment, and local government departments agree the mining ban and other anti-mining measures imposed by local governments run counter to the national mining law.
However, local government officials have invoked their powers and rights to protect their communities, causing an impasse on how to proceed with mining projects.

Sagittarius Mines Inc, Xstrata's Philippine unit, has sought a review of the ban, saying open pit mining was the safest and most economic extraction method.

Sagittarius has presented an environmental impact statement (EIS) on the mine via a series of public consultations, set to end this month, one of the requirements before a review of the local code starts.

Are other provinces adopting anti-mining measures?

Environmental concerns were also cited for similar bans and mining moratorium in other provinces.
Industry group the Chamber of Mines of the Philippines has said local government bans on mining have also been issued in the central provinces of Capiz, Bohol, Samar, Romblon, and Mindoro and the southern province of North Cotabato.

Anti-mining groups cite local opposition borne out of past accidents.

In 2005, heavy rains and a lack of safeguards triggered a cyanide spill at the poly metallic mine operated by Australian miner Lafayette in the central Philippines -- the first foreign-owned mine in the country after the Mining Act was enacted. The mine was closed after the accident and efforts to restart work failed due to a lack of funding.

Another often-cited accident was the 1996 tailings spill at Marcopper Mining Corp's copper mine in central Marinduque province, in which at least 1.5 million cubic metres of mine tailings flowed into surrounding rivers following flash floods, contaminating the river system and causing illnesses in the communities around the mine up to today.

What problems do miners face?

A strong opponent in the majority Christian country is the Catholic Church, which has come out against mining projects such as the proposed Tampakan mine, citing local concerns.

Tax and security issues are also among investors' major concerns. Environment Secretary Ramon Paje has proposed a 5% royalty fee from miners on top of the existing 2% excise tax, a proposal shot down by the industry.

Existing investors also complain that local governments impose unregulated taxes on mining. Local government units are given the power to levy taxes, fees or charges on businesses in their areas under the local code.

Miners must also deal with communist rebels demanding revolutionary taxes and compensation for communities hosting mining projects, and miners are harassed if they fail to pay up.

One result of large players shunning the country is that small-scale gold mining accounts for two-fifths to nearly half of annual total mining output by value, becoming a major employer as a result.

Wednesday, February 1, 2012

IPs wary over new mining policy

Do we have to be wary over new mining policy? Here's a copy-paste of an article that would make you think about it:

http://www.nordis.net/?p=11732

IPs wary over new mining policy

Written By: editors on January 29, 2012 No Comment
By KAMP (PR)
www.nordis.net

QUEZON CITY—Indigenous peoples’ organization Kalipunan ng mga Katutubong Mamamayan ng Pilipinas (KAMP) criticized President Bengino Aquino’s actions in a meeting of foreign chambers of commerce last Thursday.
“Aquino acted like a kid amongst bullies in a schoolyard,” Piya Macliing Malayao, KAMP spokesperson said. “But instead of lunch money, he gave away national economy and patrimony without a fight.”
Aquino promised investors of a new mining policy to be drawn up in mid-February after complaints of ‘inconsistencies’ in the country’s mining policies. Aquino said the new mining policy will be ‘clear-cut’ in response to investors’ unfavorable comments on the extractive industry.
“Aquino was quick to assure investors that their interests are secure, notwithstanding the growing opposition against destructive, large-scale mining in the country,” Malayao said. “It shows Aquino has no real interest in the protection of people’s rights and the environment.”
Investors are ‘confused’ over the Philippines’ current mining policy, according to Julian Payne, President of the Canadian Chamber of Commerce. Canadian mining company, TVI Resources Ltd have mining investments in Zamboanga Peninsula, and recently battled local government unit in Zamboanga del Norte after they enacted an open-mining ban in the province.
“We could imagine an even more liberalized mining policy that will attempt to mute mining-affected people and leave local government disempowered from opposing projects they deem unbeneficial for their constituents. Apparently, resistance from affected communities, environmentalists, and local government units have been cutting mining corporations’ profits,” Malayao said.
KAMP says that the government is already very lenient with mining investors, and even an eager promoter of investments on our mineral lands. “The only thing that is preventing mining corporations of laying waste on our mineral resources is the people. We fear that the mining policy conjured up by the Aquino administration will attack the people’s assertion for their rights to land, and to national patrimony,” Malayao said.
However, KAMP says the new mining policy will not come unchallenged. “Mining has taken a beating lately, with the protests and other forms of opposition from concerned groups. We are sure that Aquino’s mining policy, as with other anti-people policies that preceded it, will be met by the resistance of the people.” Malayao ended. # nordis.net