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Background of The Study
Background of The Study
In today’s time, mining has been considered to be one of the biggest industries
in the world. Particularly in the largest countries around the world – Canada, United
States, Australia, Japan etc., there are mining companies that competes to excavate
natural resources for profit. In the Philippines, mining is already evident during the
pre-colonial period. Different religious and indigenous groups mined for gold, copper,
and many more other minerals. This was being traded the old Filipino people to the
neighboring countries. In fact, as of today, the Philippines is ranked as the fifth most
mineral rich country in the world for gold, nickel, copper, and chromite. The first
commercial mine in the Philippines was in Benguet, Central Luzon, established by the
Benguet Mining Coporation. In 1900’s the Philippine Mining Bureau was established
in order to process and administer claims and all related transaction related to
mining. In history, Americans got interested in the minerals and other natural
resources that the Philippines have. As a result, they did a geological survey, which
validated the fact that Philippines is really a country that is rich in natural resources.
After the said survey, Act 468 was issued in order to give the government the right to
reserve mineral lands for its own purpose alone. Despite the tragedy that happened in
the 1998 in Malangas Coal Corporation in Zamboangga, still mining industry remain
progressive.
Because of being one or the largest industries present in the Philippines, it has
contributed a lot to the economic growth of the country. Although the GDP
contribution of the mining is relatively low which consist of 0.6 percent as of 2016, the
implementation of Mining Act 1995 which allows the foreign investor to participate in
the mining activities in the Philippines opened windows for more mining companies to
open. In addition, the mining tax two percent for metallic and non-metallic minerals.
Mining has always constituted one of the most dangerous industries. The
development of standards relating to actions taken to improve health and safety at
work in mining, public safety and environmental protection. An intensive mining
process, which results in a huge scale of production, generates many risks related to
both the operations and resources used, but also to the interaction between the
mining system (mines) and the environment. Hence, along with traditional risks such
as commodity price and access to reserves, new and growing threats involving cyber-
attacks, access to water and energy, health and safety issues, climate change and a
host of other factors all play a critical role in the risk landscape. However, miners can
also help support growth and sustainability through the adoption of innovative
technologies designed to better manage operational costs, improve extraction methods,
streamline distribution, increase worker productivity, and mitigate risks by building
new partnerships and attracting the right talent. In every case, the proper strategic
response to risk can be an opportunity to create value for mining companies. In
addition, mines are a complex human engineering system, they are exposed to multi-
faceted risk.
Often, the result of this risk occurrence is the loss of life and health of people. It
is important to note that these effects may apply not only to employees of mines, but
also to the environment—i.e., residents of areas adjacent to the mine. Thus, mining
sectors has been focusing for several years on the need to implement and develop
various risk assessment and management concepts. Fraud and misconduct can be
extremely costly and undermine public trust and confidence in an organization.
Businesses may be susceptible to a range of threats including fraudulent financial
reporting, theft of cash or other assets, and illegal or unethical acts such as bribery,
corruption, market rigging or conflicts of interest. Mining companies also have to keep
up with a stream of new laws and regulations from around the world, adding a further
layer of complexity to their anti-fraud Land corruption efforts. This risk should be
analyzed not only in the professional aspect (human factor) but also in strategic
(environmental impact) and operational aspects (safety of machines and devices,
correctness of the implemented mining process.
The DENR is the primary government agency responsible for the conservation,
management, development and proper use of the country’s environment and natural
resources.
Regulatory standards involve in Mining industry are the Republic Act No. 6969
(the “Toxic Substance and Hazardous and Nuclear Wastes Control Act”). Republic
Act No. 8749 (the “Clean Air Act”). Republic Act No. 9003 (the “Ecological Solid
Waste Management Act”). Republic Act No. 8371 (the “Indigenous Peoples’ Rights
Act”). Republic Act No. 7076 (the “People’s Small-Scale Mining Act of 1991”)