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Mining As A Threat To Forests
Mining As A Threat To Forests
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ABSTRACT
Mining is currently being promoted as a key industry towards fostering economic growth.
Starting with Arroyo government’s policy shift from tolerance to promotion of mining in January
2003, policy and economic reforms have been initiated in the bid to build up the industry. In
January 2004, a year after the policy shift, Executive Order 270 or the National Policy Agenda
Mineral Action Plan (MAP). These two policy documents spell out the government’s thrusts and
plans to revitalize the industry. Once the MAP has been fully implemented, the government
expects as much as US$4.36 billion in investments, with annual potential revenues of US$2.32
billion and employment generation of as much as 19,000 workers from identified high-profit
mining projects within the next ten years. The government has also identified an initial 21
projects to be developed within the next 5 years with potential investments amounting to
US$2.05 billion.
The Philippines is undoubtedly rich in mineral resources. The National Economic Development
Authority (NEDA) has estimated the country’s mineral wealth to be worth US$840 billion, and it
is this wealth that the government wishes to harness to gain revenue. The revitalization program
was welcomed by the mining industry, but it has also met considerable opposition, as questions
were raised on its contribution to genuine economic growth and sustainable development. As
mining is an environmentally-critical project, concerns were also raised regarding its impacts on
the country’s forests and biodiversity. The Philippine archipelago is composed of fragile island
ecosystems whose forests provide ecological values like food, water, and forest products; and
also performs pollution regulation, climate stabilization, watershed functions, and other services.
since at least 45% is needed on an island level in order to maintain its natural ecological
processes.
This paper seeks to study the mining threat to our country’s forests and sustainable development
concerns; and
! To illustrate the extent of threats of existing and potential mining operations to forests
and biodiversity.
Literature review focused on selected cases to illustrate adverse mining impacts. Relevant
portions of current policies (Mining Act of 1995, Local Government Code of 1991, Executive
Order 270, the Mineral Action Plan, and other official sources and pronouncements) were
analyzed as they relate to the concerns of the study. Spatial data analysis made use of the forest
cover data of 1988 produced by the National Mapping and Resource Information Authority,
existing mining tenements as of 29 February 2004 from the Mines and Geosciences Bureau with
the exception of five Mineral Production Sharing Agreements (with an aggregated area of 5,400
hectares) due to problems with their technical description. Small-scale mining permits were also
excluded.
Data input, manipulation, spatial analysis, and overlays of all geographic data was done using
ArcView GIS 3.2 software. All computations made on spatial data used the Universal Transverse
1. Environment
Government estimates of the potential wealth from mining are deemed by officials to be more
than enough to pay the country’s foreign debt. NEDA projections even show increased revenue
from exports, direct taxes and fees that are expected to increase GDP growth by 4%-7% in seven
years. However, there are inherent impacts on the environment in any mining operation even
with the use of best practices and technologies. These impacts are magnified in the Philippines
since the country’s fragile island ecosystems and high biodiversity make it more vulnerable to
! Open-pit mining in the Philex mines in Sto. Niño, Tublay, Benguet upon closure in the
1980s destroyed all water sources in the area. (Corpuz and Catalino, in Tujan and
Guzman, 2002)
village at the rate of one centimeter per year. The sinking has then accelerated when
Lepanto started bulk mining that resulted in the sinking of houses in the area by 18 inches
! Mine tailings disposal is considered the “main source of land and water pollution.” From
1980s until the decline of the industry, “a yearly average of 102 million metric tons of
mine wastes and tailings was released into the environment.” This has resulted in the
pollution of major rivers systems in Benguet, Pangasinan, Mt. Province, Ilocos Sur,
Negros, Cebu and Davao del Norte. Farmlands have also been reported to suffer
decrease in crop yield or semi-permanent land damages due to mine waste and tailings.
! 1.6 million cubic meters of mine tailings or 5-10 cubic meters per second was
accidentally released into Makulapnit and Boac River, Marinduque in 1996 rendering the
27-km Boac River biologically dead and causing heavy siltation in the coastal and
estuarine areas thereby adversely affecting the livelihood of close to 20,000 people
! Dinagat Island in Surigao del Norte is home to 355 Philippine endemic flora and fauna.
A total of 102 bird species have been recorded in the island, 9 of which are threatened
and endemic to the Mindanao Faunal Region, and 38 are forest dependent. It is also host
to 3 endemic species of mammals, a very high number for such a small island. Mts.
117 Important Biodiversity Areas (IBAs) identified by Mallari et.al. (2001). This rich
biodiversity provides vital resources and ecological services for livelihood and basic
estimated that more than half of the total forest cover of Dinagat Island (15,188 hectares)
lowland forests. The continued mining operation puts the already endangered wildlife at
risk that may lead to the species’ eventual extinction. (De Alban and Bernabe, 2004)
Human rights abuses, militarization, and displacement as a result of mining have been reported
" The coverage of the MPSA issued to Mindex-Crew is located over several rivers that
serve as tributaries to a major river system in the island, Mag-asawang Tubig (Water
" Provision in the Indigenous Peoples Rights Act (IPRA) on Free and Prior Informed
Free and Prior Informed Consent (FPIC) to the company. This was facilitated when
the company organized a new tribal group among its workers and employees from
" With the help of the DENR Secretary Antonio Cerilles, “seven army battalions were
one year. Youth activists, Mangyan members have either been arrested, tortured or
missing.
Proceedings of the National Conference on Integrating Forest Conservation 6
with Local Governance in the Philippines
9-12 November 2004
Subic, Zambales, Philippines
" Peasant and indigenous communities have been “reconcentrated” for easy monitoring
" First ever Financial or Technical Assistance Agreement (FTAA) covering 99,400
" While WMC offered potable water systems, schools and roads, they bribed and
appointed illegitimate tribal leaders to represent the B’laan people in order to secure
the Certificate of FPIC. These leaders were persuaded to sign an agreement accepting
the entry of mining into their territory, which resulted in conflict within the tribe and
" The B’laans eventually filed a case against WMC in 1997 questioning the legality of
the FTAA. Finally, in January this year, the Supreme Court decided in favor of the
B’laans by nullifying and voiding the 1995 FTAA issued to WMC and declared
unconstitutional several provisions in the Mining Act of 1995. (Aning and Gaylican,
" In 1998, a state of calamity was declared in three villages along Calancan Bay in
Marinduque wherein all of the 59 children tested had high levels of lead in their
blood. Four years after the incident, 74 out of 118 children still tested positive for
" In October 2004, the people in Siocon, particularly the indigenous Subanons, led by
Timuay (elder) Jose Anoy, were driven away from their land and ancestral domain.
Elder Timuay reports that TVI started illegal mining operations and also desecrated
their altar, which is found at the tip of Mt Canatuan, considered to be their most
3. Economic
Large mining and industrial projects significantly impact economies of developing nations.
(Colley in Evans, 2002) Developing nations have only a minority of its workforce operating in
the formal or cash economy while the majority is engaged in subsistence or near subsistence
living. As such, “national governments have only a small proportion of the population from
which to raise taxes from.” It is therefore understandable for the Philippine government to be
overwhelmed by the potential income to be derived from the mineral wealth valued at US$840
However, past experiences in the Philippines show that the mining industry has not catered to the
development model. Tujan and Guzman (2002) identifies the Philippines as one of the world’s
major producers of gold, copper, chromite, and nickel. Yet with all its mineral endowment, the
Philippines does not have a developed economy - “instead the Philippine mineral wealth feeds
the engines of industrialization in the developed countries as an export product.” (Tujan and
Guzman, 2002) To illustrate, the country’s metal products exports in 2002 was worth US$89.92
million but imports were valued at US$918.4 million which is over 1000% of total exports for
regular or long-term employment. Most companies employ temporary, casual and contract
labor. This is clearly shown in a survey conducted on Philippine Mine Workers in 1997 where
30% of enterprises in the non-metallic and 42% in the base metal industry have resorted to
employing different types of non-regular labor. (Tujan and Guzman, 2002) In addition, most of
the workforce comes outside host communities, thus marginalizing local residents.
On the other hand, valuation studies in Samar Island peg the value of biodiversity at US$43.5
billion over 25 years. This is double the projected earnings from bauxite that is US$21 billion
for the same period. Economic values for ecological indicators allow “non-use” values to be
evaluated alongside economic and financial values. This is seen to facilitate analysis of trade
Similar situations have been experienced in other regions in the world. Power (2002) revealed
other developing countries in the Asian region. The study even stresses that the more a
developing country depends on its mineral development, the slower its rate of growth, and that a
country’s reliance on mineral development has not been consistent with sustained economic
development and the heavier the reliance on natural resources in exports, the slower the rate of
growth in GNP per capita. Power (2002) also cites a World Bank study of hard-mineral
exporters, oil exporters and other middle income and poor countries. Findings in that study
reveal that nations that have prematurely exported their natural resources instead of using them
internally to support citizens and manufacturing had significant negative impact on growth.
The major legislation currently governing the mining industry is the Mining Act of 1995. Under
the Mining Act, the national government, through the Mines and Geosciences Bureau (MGB),
currently issues four major mining permits: the Exploration Permit (EP), the Mineral Production
Sharing Agreement (MPSA); the Financial or Technical Assistance Agreement, (FTAA); and the
The Mining Act is now supplemented by the Executive Order 270 on mining revitalization and
its Mineral Action Plan (MAP). During the course of the development and the issuance of these
policies, a number if issues have been raised by various civil society groups – limitations and
concerns that have persisted even in the final policy documents. The Mining Act itself is
currently facing a constitutional challenge, as the Supreme Court in January 2004 ruled that
FTAA provisions in the Act are unconstitutional. The government has filed a Motion for
This portion analyzes the current mining policies and how they address three key concerns: its
definition of sustainability, its provided safeguards to the environment, and the involvement of
local governments.
It is interesting to note that the government previously used the term “sustainable mining” in
earlier discourses and policy drafts. This term proved controversial, as civil groups repeatedly
pointed out that mining involves the extraction of non-renewable resources to the exclusion of
An earlier draft of the National Mineral Policy, precursor of the issued MAP, included a lengthy
“Sustainable development is feasible if the accrued rent from the depletion of mineral resources is
continuously reinvested into other sustainable undertakings and in community support services
(health, education, culture, etc.). Sustainable development implies that spin-offs from mining are
both sustainable and generated from the outset of the mining operations in order to create an inter-
generational transfer… In other words, sustainable development implies that mining be fully
integrated in the local and regional economy from the outset.”
(National Minerals Policy, August 2001 draft)
The rationale used was that while mining in itself may not be sustainable, its “spin-offs” and
discoveries of mineral deposits and technological advancements that enable more efficient
A critical limitation to this line of thinking, which even now guides the existing policies, is that it
reduced sustainability to the economic and geological level to the detriment of the environmental
level. Mining is an activity that has inherent environmental as well as economic impacts, and its
Government policies have consistently stated that environmental considerations shall always be
incorporated at every stage of mining operations, but this still does not address questions on the
wisdom of opening up those mining operations in the first place. The policy recognizes that the
Philippines is well endowed with mineral resources, and presupposes that the industry will be
able to successfully implement best mining practices. It does not, however, recognize the reality
that the Philippine archipelago, with small islands having forests and surrounding marine
ecosytems, are more sensitive to mining impacts. There are areas where the resulting ecological
Proceedings of the National Conference on Integrating Forest Conservation 11
with Local Governance in the Philippines
9-12 November 2004
Subic, Zambales, Philippines
loss resulting from mining operations will be too considerable to be justified by the benefits.
Sustainable development will not be achieved if the country’s backbone of biodiversity resources
is severely compromised. While the mineral supply may be considerable, the archipelago as a
Under the Mining Act, the following areas are closed to mining operations: old growth or virgin
forests, proclaimed watershed forest reserves, wilderness areas, mangrove forests, mossy forests,
national parks provincial/municipal forests, parks, greenbelts, game refuge and bird sanctuaries
as defined by law and in areas expressly prohibited under the National Integrated Protected
Areas System (NIPAS) Act. While the list seemingly shows a lot of areas closed to mining, these
areas are not at all extensive or even sufficient. Closed canopy or old growth forests, for
example, comprise only 35% of remaining forest cover, while most NIPAS areas are not yet
delineated and can still be reduced in size to leave some areas open to mining. This in fact is the
major contentious issue in the Samar Island Natural Park, where the MGB wants to excise some
54,000 hectares from the proposed park to be used for mineral development. MacKinnon (2002)
even stresses that the Philippine protected areas system is weak in real protection, contains a high
proportion of degraded habitats, not well related to the distribution of biodiversity, and shows
little relation to the forest boundaries on the ground. There are still significant areas of
biodiversity in lowland forests that do not have any legal protection under the NIPAS or
elsewhere.
The Mineral Action Plan includes a provision that the DENR should “fully implement the
guidelines ensuring the adequate consultations with all stakeholders including the mining
Action Plan, Agenda B 4.1.1) Ostensibly, the reason for involving the mining industry in NIPAS
reason is the intent to prevent mineral-rich areas from being declared as protected areas in the
“In establishing and managing protected areas, the Government recognizes the desirability of
leaving lands particularly those with high mineral potential, open for mineral development when
this is consistent with legislation and government policies, and compatible with environmental and
social objectives. Consequently, the Government will… fully take into account the mineral
potential of the area in question before taking decisions to create resource conservation/protection
areas.”
While the MAP states that a valuation framework will be used to determine the best land use of
an area, there is still an implicit bias for mining since it merely provides that biodiversity and
small island ecosystem concerns shall be incorporated in the Environmental Impact Assessment
process (EIA). This is highly contentious; as the EIA process itself and the way it has been
implemented in the past has its own set of faults and limitations and do not necessarily provide
adequate safeguards. Nowhere is it stated in the MAP that the valuation may eventually lead to a
decision not to mine a high biodiversity area. This kind of “have minerals, will mine” mindset is
“The Mineral Action Plan will not impose mining on everyone. It will not prevent any community
from refusing mining.”
- MGB Director Horacio Ramos, May 31, 2004
The following are the roles of LGUs in the mining industry (DENR-MGB Briefing Kit, 2003):
! In consonance with the Local Government Code of 1991, LGUs have a share of 40% of
the gross collection derived by the National Government from mining taxes, fees or
! Issue permits for small-scale mining and quarrying operations, through the Provincial or
decision on the social acceptability of a mining project as a requirement for securing and
! Ensure that relevant laws on public notices, consultations and public participation are
complied with.
The cooperation of local government units is a critical factor to the success of the government’s
mining revitalization program. To secure this cooperation, the MAP prescribes ways to expedite
the process of securing LGU endorsements for mining projects. It also seeks to ensure that LGUs
receive their due share from mineral wealth through the speedy remittance of taxes and other
fees. LGUs are also encouraged to incorporate mining in their Comprehensive Land Use
Program. While technically LGUs have the right to deny its endorsement of mining projects, the
national government is using all its influence and creating the climate to make endorsements the
standard response. What LGUs should keep in mind, however, is their mandate to promote the
general welfare of their constituents. This is not limited to economic welfare but also
encompasses promotion of health and safety and the right of the people to a balanced ecology,
among other considerations. Local government officials have the responsibility to carefully
evaluate the merits of any project, especially if it is a critical project such as mining.
As of 29 February 2004, there are 190 existing MPSAs, 16 existing EPs, and 2 approved FTAAs
covering a total land area of 489,898 hectares. These existing mining tenements enclose 1.59%
of the country’s remaining forest cover, almost 40% of which are deemed as closed canopy or
The existing mining tenements also come in conflict with conservation priority areas. These
include Important Biodiversity Areas (IBA) identified by Mallari et.al. (2001), Conservation
Priority Areas (CPA) determined by a pool of experts under the Philippine Biodiversity
Conservation Priority-setting Program, and protected areas under the NIPAS Act. Strikingly,
only 18 out of 117 IBAs were identified to come in conflict with mining areas (Figure 1) while
35 out of 170 CPAs, of which 18 are simultaneously considered as IBAs, were similarly in the
same predicament. Finally, 32 out of 244 NIPAS components, of which 22 have yet to be
established, also come in conflict with existing mining tenements (Figure 2).
The Presidential Task Force on Water Resources Development and Management (PTFWRDM)
identified 18 major river basins in the country. Table 1 compares the remaining forest cover
against the area occupied by mining tenements within each watershed. Javier (2003) illustrated
that good forest cover for a watershed is estimated at 60-75% in order to minimize surface run-
off and soil loss. Watersheds with 37% forest cover or less release surface run-off to as much as
14-75% of precipitation that it receives. While existing mining tenements in some of the major
river basins occupy very minimal areas in contrast to their remaining forests (Figure 3), note that
13 out of 18 watersheds have forest cover below 20% of its total area which may be considered
Table 1. Remaining Forest Cover vs. Mining Tenements of the 18 Major River Basins in the Philippines.
% of
REMAINING TOTAL AREA % of FOREST
RIVER BASIN TENEMENT
FOREST Of MINING to
MAJOR RIVER BASIN AREA to
COVER TENEMENTS RIVER BASIN
(SQ.KM.) RIVER BASIN
(SQ.KM.) (SQ.KM.) AREA
AREA
Abra River Basin 4,921.020 959.683 89.653 19.502 1.822
Abulog River Basin 2,977.044 1,550.500 52.082
Agno River Basin 6,342.325 853.710 128.912 13.461 2.033
Agus River Basin 1,897.534 1,000.720 52.738
Agusan River Basin 12,768.411 7,082.556 39.309 55.469 0.308
Bicol River Basin 3,057.477 91.943 38.989 3.007 1.275
Buayan-Malungan River Basin 1,485.410 163.778 8.424 11.026 0.567
Cagayan de Oro River Basin 1,689.529 319.307 18.899
Cagayan Valley River Basin 27,663.924 9,262.703 430.281 33.483 1.555
Davao River Basin 1,366.311 441.022 0.609 32.278 0.045
Ilog-Hilabangan River Basin 1,827.025 30.850 1.689
Jalaud River Basin 1,754.340 98.664 5.624
Pampanga River Basin 12,317.292 1,833.321 45.682 14.884 0.371
Panay River Basin 2,148.619 13.141 100.224 0.612 4.665
Pasig-Laguna River Basin 4,312.990 192.587 30.419 4.465 0.705
Rio-Pulangi River Basin 20,080.523 3,157.921 700.864 15.726 3.490
Tagoloan River Basin 1,574.313 297.131 18.874
Tagum-Libuganon River Basin 2,508.847 494.454 19.708
What should be observed is that the country’s high mineral potential areas are heavily in conflict
with high priority biodiversity areas (Figure 5). The MGB recognizes this and even identifies
critical areas in terms of overlapping biodiversity priority and mineral potential areas. With a
revitalized mining industry, these highly prospective mineral areas may indiscriminately be
opened for extraction regardless of whether the area is a conservation priority or not. An
estimated minimum of 37% of remaining forests will be subjected to and potentially decimated
by various mining permits (Figure 6). The revitalization of the mining industry is, therefore, a
the Philippines. The EBA approach is effective in distinguishing areas that are important for the
maintenance of avian diversity in general as well as for the diversity of other flora and fauna.
4 out of 7 EBAs (including Mindoro, Negros-Panay, Cebu, and the Sulu Archipelago) were
highlighted under critical threat level while the others (Luzon, Mindanao and Eastern Visayas,
and Palawan) under urgent threat level. Table 2 illustrates the remaining forests of each EBA.
Apparently, the EBA of Cebu, Negros and Panay, and Mindoro have very scant forests left
(Figure 4), which may already be irreparable in terms of the damage to biodiversity due to
habitat loss. The EBA of Palawan, Mindanao and Eastern Visayas, and Luzon, while still holding
on to a significant area of forest, are still very prone to extraction and forest fragmentation.
Considering how fragile the remaining forest habitats of these EBAs are already, opening up
more areas for mining will only exacerbate their already critical state and strip them of any
opportunity to rehabilitate. Since EBAs possess diverse flora and fauna that are unique to that
area alone and can be found nowhere else in the world, the extinction of a single species is a
tremendous loss to the nation’s rich resources and to global biodiversity as well. More
importantly, the continual loss of forest habitats bears a direct negative impact to local
use and irrigation, and medicine, among others. These clearly point out that mining threatens the
V. CONCLUSIONS
! Past experiences show that mining results in adverse, irreversible, and widespread
impacts to the environment that directly affects forests and local communities. The
! Current mining policy follows a limited framework for genuine sustainable development.
Its single minded thrust is to promote mining operations in order to gain revenue, but
such as mining. The LGU has the mandate to decide on the most appropriate
! Due to the fragile state of the country’s forests, watersheds, and biodiversity, a revitalized
mining industry poses a threat to the continued delivery of vital ecological services, and
deprives the right of present and future generations to a healthy and balanced ecology.
VI. RECOMMENDATIONS
1. LGUs should determine trade-offs of mining and other resource extractive industries as
of mining that consider not only financial indicators but ecological values as well.
3. There is a need to undertake more comprehensive studies that document mining impacts
4. The National Government should reconsider its policy on revitalizing the mining industry
5. Future studies assessing mining as a threat to forests should use the latest and most
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