Philippine Mining Act of 1995:

A curse to the environment

and communities
Date: March 6, 2015Author: cpaphils0 Comments

March 3, 2015

On March 3, 1995, Republic Act 7942 otherwise known as the

Philippine Mining Act was passed into law. As a law liberalizing the
mining industry, the Mining Act was hailed to boost the countrys
economic growth. The law was also hyped to bring rural progress and
development especially in communities hosting large scale mining
corporations.

20 years after the passage of the law, the promises of economic

growth, rural progress and development are pure myths and far from
becoming a reality. More than economic growth, the Mining Act paved
way for the massive plunder and destruction of natural resources,
displacement of communities, and violations of the collective rights of
indigenous peoples over our ancestral domains and natural resources
as experienced by the Igorot communities in the Cordillera from
decades of large-scale mining operations.

Some of the oldest and biggest mining operations in the country are
found in Benguet province the Lepanto Consolidated Mining
Company, Philex and Benguet Corporation. These mining operations
have left permanent scars to the residents of Mankayan and Itogon
municipalities and other affected communities due to the destructions
wrought by the mining operations on their ways of life, the
environment, and to robbing the future of the next generations.

At the onset, large mining firms have been exploiting our natural
resources for gold, copper and other minerals for the sake of super
profit, while leaving mountains flattened, excavated and hollowed;
rivers and creeks contaminated; and peoples livelihood lost. While
mining firms indulge in gold extraction, communities face constant
risks and dangers from impending disasters as a result of mining
activities. The experiences of mining-affected communities in the
Cordillera region are a living proof and witnesses to the impacts of
large scale mining operations.

The ground subsidence and massive sinking of communities in

Mankayan which claimed lives and destruction of livelihood, the
collapse of Philexs tailings dam 3, and the continuing pollution of
rivers are only a few of the serious environmental crimes committed by
Lepanto, Philex and Benguet Corporation. In spite of these, Lepanto
aims to further expand its operations in partnership with trans-national
companies such as the South African Goldfields Mining Ltd. while Philex
continues to use its tailings dam 3.

At present and due to the liberalization of the mining industry in the

country, mining companies continue to target the Cordillera region for
the extraction of gold, copper, silver and other minerals, with
numerous mining applications covering more than 60% or 1.2 million
hectares of the regions total land area. These mining applications are
coupled with militarization and violations of the Free Prior Informed
Consent (FPIC) by the National Commission on Indigenous Peoples
(NCIP) and mining companies. These are a cause of trouble and chaos
in communities. For instance, the manipulation by the NCIP-Kalinga in
the FPIC process in favor of the Makilala Mining Company in Guinaang,
Pasil, Kalinga is in no way a move that promotes our rights as
indigenous peoples. FPIC violations are similarly experienced in other
Cordillera communities.

The mining industry is among the least contributors to the countrys

wealth contrary to the governments claim of bringing about prosperity
to the country. In 2012, a study conducted by IBON revealed that the
gross-value added (GVA) of the mining industry, which government
itself measures, registered an average of 1% in 2000-2011. The mining
contribution only peaked in 2007 at only 1.63 percent. IBON also added
that while the GVA in mining in absolute terms has been increasing on
average albeit in a slow pace, the share of minings GVA to the gross
domestic product (GDP) is actually decreasing on average after
peaking in the 1970s.

The Mining Act of 1995 has been selling-out our national patrimony to
trans-national corporations. Let us be reminded of the salient points of
the Mining Act which clearly put mining firms in a pedestal while
alienating and plundering our own lands and resources for greed and
profit:

100 percent foreign ownership of mining projects;

Foreign company can lay claim to 81,000 hectares onshore or

324,000 hectares offshore;

Companies can repatriate all profits, equipment and investment;

Companies are guaranteed against expropriation by the state;
 Excise duties are cut from five to two percent and tax holidays
and deferred payment are allowed until all costs are recovered;

Losses can be carried forward against income tax;

The government commits itself to ensuring the removal of all

obstacles to mining, including settlements and farms;

Companies are promised priority access to water resources within

their concession;

Companies are given the right to sell gold directly to the

international market without Central Bank intervention;

Mining leases last 25 years with an option of a 25-year extension.

The Philippine Mining Act of 1995 is clearly anti-people and anti-
environment. Worst, it does not protect the Filipino people from foreign
mining firms. The people are neither benefitting from, nor in control, of
these resources.

The Philippine government must heed the voice of the people: Uphold
indigenous peoples rights. Scrap the Philippine Mining Act of 1995.
Nationalize and industrialize the mining industry for the people. ***