Yours, "Mines", and Ours

Mining is not the enemy, poverty is

Philippine Daily Inquirer March 3, 2012



http://newsinfo.inquirer.net/155113/manny-pangilinan-mining-is-not-the-enemy-poverty-is

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   “Average cellphone contains about 24 milligrams of gold, 250 milligrams of silver, 3,800 milligram of cobalt and 9 milligram of palladium.” (Pangilinan, Inquirer, March 2012) Almost all the gadgets and tools of modern living – from cellphones to computers, automobiles and planes to the chalice used in the Eucharist – come from the materials that are mined. It simply supports to the issue that mining must continue. But what is really mining all about? How does it affect our economic growth?

   In 2004 GDP grew by 4.5%, similar to 2003, and per capita GDP (in terms of purchasing power parity) amounting to an estimated US$4,600. Mineral contribution to export earnings has declined from 20% in 1980 to 2% in 2004. The Philippines mines gold (37,800 kg in 2003), silver (9,600 kg in 2003), copper (2003: 20,400 t), nickel ore (2003: 0.962 Mt), coal (2003: 2.03 Mt) and Cement (2003: 326,670 kg). The country also produces oil and gas.

   The Philippine government grants Mineral Production Sharing Agreements on condition that the mining activities are managed in a technically, financially, socially, culturally and environmentally responsible manner to enhance the national growth and welfare of the Philippines.

   The Department of Environment and Natural Resources requires an Environmental Clearance Certificate for any mining activity at a more advanced stage than mineral exploration. The ECC is issued by the DENR based on an Environmental Impact Statement prepared by the company in accordance with the procedures under the Environmental Impact Assessment System. A completed ecological profile of the proposed mining area is required as part of these procedures.

   The ECC is the basis for the Environmental Protection and Enhancement Program, which every party to an MPSA must undertake within the subject area of the MPSA. To implement an approved EPEP, an Annual Environment Protection and Enhancement Program is required to be submitted 30 days prior to the beginning of every calendar year. To ensure compliance with the APEP, mine site inspections and quarterly monitoring are conducted by the DENR and a multipartite monitoring team composed of local government units, host communities, any affected indigenous cultural communities, non-governmental organizations, the DENR and the company.

   The Philippines Department of the Environment and Natural Resources (DENR), in co-ordination with other relevant government agencies and the mining industry, is finalising a Minerals Action Plan (MAP) in an attempt to harmonise the laws of local governments with forestry and lands legislation, and the Indigenous People Rights Act (IPRA). The responsibilities for the environment will be separated from the DENR. In January 2004 the Philippine Supreme Court reached a decision that nullified some provisions in the 1995 Philippine Mining Act that allow 100% foreign equity in large mining projects (requiring an investment of more than US$50 million) through Financial and Technical Assistance Agreements (FTAAs). The Supreme Court also declared as null and void provisions in the Mining Act relating to Exploration Permits and Mineral Processing Permits. A recent law also gives the power of veto to indigenous people where a new mine is planned on ancestral lands.

    As of the end of December the government of the Philippines issued 762 mining rights, though, of the total land area of the Philippines, only 1,9% are held by mining rights.

Notable gold, copper iron, nickel and chromite deposits can be found in various parts of the Philippines. (mining journal, www.mibe.com).

POSITIVE AND NEGATIVE EFFECTS OF MINING

Positive Effect

·         Mining touches most aspects of our daily life – when we build our home, use our laptops, and take our car to work.

·         Mining industry could boost the country’s economic growth to 7 to 8 percent, the pace of growth needed to break the poverty trends

·         Mining would create hundreds of thousands more jobs

·         Mining will build more roads, and bring basic utilities like water and electricity to the communities

·         Mining is tourism’s another potential growth driver

Negative Effect

·         Mines that were simply abandoned by the mining operators causes acid mine drainage, siltation, ghost towns and other nightmares to the host companies

·         Mining inevitably affects the environment and no amount of tree planting by mining companies can restore biodiversity in any area that suffers damage from the extractive industry

·         Developmental effects of mining cannot be carried out without affecting and disturbing natural resources

·         Mining results to deforestation and mineral degradation

Suggestions:

 

      For mining industry to benefit the country, it should meet four conditions: that environmental and social costs are accounted for; that the country gets full share of value extracted minerals; the institutional capacity government must be put in place; and money for mining must be used to create new capital, including human capital and boost infrastructure in the countryside.

   Mining industry is not perfect, which sometimes leads to perception that mining is dangerous and destructive. The following are some suggestions to eliminate the said perception:

·         That national and local policies on mining need to be harmonized and the cooperation of local government units must be procured in order to subject small scale miners to the same regulation as large scale miners;

·         That the capacity and competence of state regulators be improved particularly in regard to equipment and quantity and quality of regulatory staff;

·         That there must be an independent environmental commission responsible for supervising and enforcing environmental concerns;

·         That the private sector be open to a profit-sharing scheme which will assure the government of a more appropriate share in the benefits derived from the resources

·         That mining benefits between host local government units and the national government be shared more equitably.

“MVP: Mining is not an enemy, poverty is”. Putting my best foot forward as a miner, I will not run away from my responsibilities to the environment and the people. Mining cites should have environmental rehabilitation afterwards. Anticipating the potential effects of mining, I will allow the government to monitor my mining industry and be vigilant of what’s going on. Such mining projects should leave legacy mines.