The Dirty Business of Mining in the Philippines: A Backgrounder

Bishops speak out against socially divisive and environmentally destructive mining.

By Edwin Cordero Mercurio

Alarmed over the perilous state of the country's natural endownments, Catholic Bishops of Eastern Visayas Islands of Leyte, Samar and Biliran on October 22, 2010 issued a statement to the Philippine Government to halt large scale mining on these islands.

The call to end the “socially divisive and environmentally destructive mining operations” in these picturesque islands was sent to Philippine Environment and Natural Resources Secretary Ramon JP Paje.

Citing the Catholic Bishops Conference of the Philippines (CBCP) Pastoral Letter on Ecology, “What is Happening to our Beautiful Land,” the first pastoral letter of its kind worldwide in 1988 and even today, the bishops sounded off the alarm about the perilous state of the Philippine’s natural endowments.

“All living systems on land and in seas are being ruthlessly exploited. The damage to date (then) is extensive and, sad to say, irreversible.” We, the undersigned bishops call on all Filipinos to recognize the situation at hand and that such situation shall be responded with utmost urgency. “The task of preserving and healing is a daunting one given human greed and relentless drive of our plundered economy. But we must not lose hope.”

“As shepherds of our flock, it is our collective sentiments that the continuing drive for development of the Eastern Visayas region anchored on mining as well as other extractive economic pursuits only reinforce the irreversible trend of permanently damaging nature’s endowments. As a consequence the many lines of opportunities upon which our people can draw their life sustenance will definitely be threatened immensely. We ask ourselves, “Haven’t we learned the lessons of the past?” In our own reckoning, our people have so much to share about the adverse effects of mining to their livelihood, to their well-being as persons and as families, to the quality of life in their communities and to their own dignity as people of God.

According to the bishops’ statement, “ the Eastern Visayas Region has lately been the object of high level interest by certain sectors, both government and private, to pursue aggressively the development of mining in the region. During a mining forum in Tacloban in August this year, the Regional Director of the Mines and Geosciences Board (MGB) even boasted that the region will eventually be the top mining region in the country considering its vast mining potentials. In fact, even prior to the said forum, several mining permits to explore along with Mining Production Sharing Agreements (MPSAs) have been issued in many parts of the region extending the three islands – Samar, Leyte and Biliran. Moreover, small islands like Manicani and Homonhon in Eastern Samar and Batag Island in Northern Samar remain threatened by mining operations. In Manicani for instance, Nickel Asia Corporation (NAC) has since initiated moves to lift the suspension of mining operations in the island. Homonhon, an historical island, after a few months respite from massive mining operations, again, is threatened by the application of a large mining permit by the Cambayas Mining, and the current small-scale mining operations granted to two permit holders by the local Mining Board. Same is also happening in Batag Island. The mainland of Samar and Leyte are not spared by the onslaught of mining permits (i.e. exploration permits, MPSAs, permit to extract among others) issued left and right by the Local Mining Board (small-scale) and the (MGB) for large scale.”

The Bishops also said that “mining experience in Bagacay is a very clear and compelling example of how bad mining is. After exploiting the area, the mining company left it abandoned and permanently destroyed. The people who had high hopes of being lifted from their sorry state of poverty were left to fend for themselves and grapple with the realities that there are no more fertile grounds to grow food or natural river systems to catch the fish for their day’s meal. The sorry state of Taft River to this very day is a perfect symbol of mining’s neglect and abandonment and waste.”

According to the bishops “The struggle of the people in the islands of Macani, Homonhon and Batag for more than a decade now is another clear testament that mining never lived up to its promise of improving the quality of life of the people. Instead, the islands’ source of livelihood had been systematically destroyed – the forest, the farmlands, mangroves, river systems, coral reefs among others. But more telling is the destruction of the islands’ social fabric – families and communities have been polarized. What pervades has been the situation of unpeace and disharmony. People in the islands have been constantly threatened by another prospect of systematic destruction of the island they call home.”

The statement also expressed concern over the government’s misplaced priorities and misleading information about the dangers of mining. “ Compounding these lessons on the effects of mining are the misplaced priorities of some of our local leaders who have acted more as agents of the mining firms rather than agents of the people. In many instances, highlighting the benefits of mining and ignoring the ‘real’ costs are concrete examples how people are being misled or misinformed about mining. In many instances still, the financial levers of mining make their way to the different levels of the decision flow to get favourable cognizance or acceptance.”

In reference to the Pastoral Letter on Ecology, the bishops concluded, “Indeed, the collective observation and sentiments, then, were very profound and prophetic. Our observations still very valid and evident to this day, and our call for action remains as urgent as ever. Most parts of the country today are still in perilous state because of too much development aggression, particularly mining and logging.”

The statement concludes by calling to tasks government leaders and reminding them of the inherent the right of peoples to a clean environment and better and brighter future for generations to come.

“Weighing down the benefits and cost of mining whether it is economic, social or environmental; judging on the lessons of the past and prospects of the future generations; and, reflecting on our role as Stewards of God’s creation, we, the bishops of Eartern Visayas, call on to our responsible leaders in government, in the private sector and all those who harbour intentions of mining our region to listen to the voices of our people, “Bring back the Beautiful Land we once had; STOP MINING IN OUR REGION.”

The statement was signed by:

+Most Rev. Jose S. Palma, DD Archbishop, Archdiocese of Palo +Most Rev. Felomino G. Bactol, DD
Bishop, Diocese of Naval
+Most Rev. Emmanuel C. Trance, DD
Bishop, Diocese of Catarman
+Most Rev. Precioso D. Cantillas, SDB, DD
Bishop, Diocese of Maasin
+Most Rev. Crispin B. Varquez, DD
Bishop, Diocese of Borongan Bishop,
+Most Rev. Isabelo C. Abarquez, DD
Bishop, Diocese of Calbayog

Sources: Ellen Teague, UCANews, CBCP

MINING AS DIRTY BUSINESS: A BACKGROUNDER

By Edwin Mercurio

TORONTO - Love, acceptance and positive relationships often begin with an eighteen (18) karat gold ring or diamond studded necklace.

However, the means employed in the extraction of the things we value and appreciate are far from romantic. Mining companies that extract gold, diamond, silver, copper, aluminum and other minerals often adopt the “out of sight, out of mind” attitude in dealing with their toxic mine tailings in the third world. Hidden from the watchful eyes of the North American and European public, the activities and operations of transnational mining corporations are considered morally and socially unacceptable by Church groups and NGOs, environmentally and culturally destructive and violate the fundamental tenets of ancestral land rights of indigenous peoples and disregard the health concerns of citizens in underdeveloped countries.

Canadian mining companies with all their pretensions to the contrary are among the world’s worst polluters and transgress the laws of their host country with impunity. Their mining activities result in the degradation of the environment, promote genocide and biocide and human rights violations.
These were the salient points of a ‘Special Forum’ entitled “Mining: The Dirty Role of Canadian Corporations” held on October 6 at St. Vladimir Institute in Toronto.

Canadian Church, labor and community leaders presented an over all background on the operations of Canadian mining corporate activities in the developing countries of Asia and their impact on the economy, politics and environment of the region.

Ms. Bern Jagunos, Asia-Pacific Coordinator of the United Church of Canada and a member of the Philippine Solidarity Group of Toronto addressed the issue of foreign mining interests and the ongoing militarization in the Philippines.

Placer Dome’s (Marcopper) broken promises

Ms. Jagunos who hails from the Philippines, spoke about the environmental disaster caused by Marcopper Inc. which is 40% owned by Vancouver-based Placer Dome. Marcopper which operated in the heart-shaped island of Marinduque for more than 30 years has evoked fear about the risks of mine tailings dumped by the company into the Calancan Bay. That fear has turned into anger when in March 1996 more than 3 million tons of toxic mine tailings spilled into Boac river, clogging its arteries, killing all aquatic life and destroying the homes and properties of the communities around it.

It happened when a badly sealed tunnel in an old mine tailings pit burst open and disgorged its toxic contents. “Placer Dome recognized its responsibility and promised to clean up the river within six months. The company dredged a channel at the ocean mouth of Boac river to catch the tailings flowing down the river. However, because the coast was already previously covered with tailings from the spill, the channel was filled to capacity within months, causing further deterioration of the coast,” Jagunos said.

Placer Dome twice applied for permit to dump the tailings into the sea using Submarine Tailings Disposal or STD ( a method of disposal not allowed in Canada). “Twice, the application was denied by the Philippine government on the grounds that all offshore and submarine areas in the country are environmentally delicate and critical. The company was ordered to complete the clean up, and the rehabilitation and compensation of the victims. It refused to accept the ruling and halted all work on the river.”

The 1996 spill was not the first calamity caused by Placer Dome in Marinduque.

In 1993, a siltation dam collapsed pouring toxic mine waste into Mogpog river. That disaster killed all marine life and caused flooding which destroyed the rich farming areas along the river.

Toronto Ventures Inc.
Strong arm tactics

Calgary-based mining company Toronto Ventures Incorporated (TVI), PacificIncorporated is accused of harassment and intimidation of indigenous Subanen people in the province of Zamboanga del Norte. “ Violent dispersal, physical assault and harassment, illegal entry, food and economic blockades, illegal arrests and detention of Subanen people who opposed the mining operation” have been documented by local support groups, the Mennonite Central Committee in the Philippines, DCMI, a broad coalition of six Roman Catholic dioceses, non-governmental organizations and the Task Force Detainees of the Philippines.

Crew Development Corp., based in Vancouver, acquired the gold mine concession in the island of Mindoro when it merged and later got full ownership of the Norwegian company Mindex in 1999.

In December 2000, a Crew subsidiary, Aglubang Mineral Corporation was granted a Mineral Production Sharing Agreement or MPSA, granting it the right to explore and develop over 2200 hectares of the concession area for 25 years. A substantial portion of Crew’s mining concession overlaps with the ancestral domain of the indigenous Mangyan peoples.

The island of Mindoro is considered as the third largest food producing province in the Philippines. The island’s watershed is critical for the irrigation of 70% of the rice farms, fruit trees and drinking water source. It is also one of the top bio-diversity sites in the world.

The fate of Tablas Strait hangs precariously on edge as “Crew plans to dump about 4 million mine tailings into the sea at Tablas Strait using Submarine Tailings Disposal, the same strait where Placer Dome dumped tailings from its spill. When that happens, all of these natural resources will be threatened with destruction. This will in turn result in the massive displacement of indigenous Mangyan people,” Ms. Jagunos explained.

Public opinion against the environmentally destructive mine tailings disposal galvanized the opposition to the plan. Those opposing include the Roman Catholic bishop, priests and religious groups, Protestant churches, people’s organizations, indigenous peoples, farmers, NGOs, professionals and human rights workers. A broad coalition was formed which also drew support from the provincial government and municipal councils.

Due to overwhelming public opposition, the Philippine government was forced to revoke Crew’s MPSA in July 2001 citing the need to protect critical watersheds and the food security of the province. In January 2002, the provincial government passed an ordinance banning all forms of mining in Mindoro for 25 years.

Mining divides communities

According to Ms. Jagunos, the mining projects have divided the communities in all three cases. The Indigenous People’s Rights Act in the Philippines stipulates that mining companies must secure the free and prior approval of the affected communities.

In Mindoro, after Mindex/Crew was told by the Philippine National Commission on Indigenous Peoples (NCIP) that the best way to secure support for the mine was to set up a new Mangyan people’s association, it formed an association called Kabilogan (the whole community) composed mainly of Mindex/Crew employees, including its chair.

Leaders and members of the new organization admitted to receiving rewards from the company in the form of water buffalos, agricultural machinery and cash.

After the new association held a meeting inside company premises and issued a statement of support for the mine, NCIP issued a certification that the Crew subsidiary, Aglubang Mining Co. had the agreement of the community.

In Zamboanga del Norte, a similar divide and rule tactic was used by Toronto Ventures Inc. After years of failing to secure the support of the Subanon Sioco Association in the concession area, employees of the company and supporters including Subanon from another community, with TVI support, attempted to take over the Association and replace the leadership with company workers and supporters.

In Marinduque, Placer Dome Inc. (PDI) commissioned a Social Impact Assessment which reported that giving generous compensation to the spill victims would encourage dependency. PDI, then, employed local NGOs to recruit community support behind Placer Dome’s proposed development projects. Those who questioned it were labeled anti-development.

At the same time, “PDI denied its responsibility for lost livelihood of fishermen in Calancan Bay and farmers in Mogpog. It also denied culpability for cases of metal poisoning and other illnesses affecting some villagers,” Ms. Jagunos said.

In the Boac, Marinduque case, “ the committee which oversees compensation continued to delay paying the victims. It now required victims to pass a lie detector test claiming they are lying.”
“An October 2001 report by the consultant hired by Placer Dome to assess all dams and structures at the mine site came out with the findings that five structures need urgent repairs and a dam on the mountain in Mogpog and a tailing pit were in such a bad shape that collapse was very certain in the near future resulting in certain loss of lives downstream.

“The Philippine government ordered Placer Dome and the local company to fix the structures or face criminal charges should another disaster occur. In December 2001, Placer Dome completely left the Philippines without warning and failed to fix the dangerous structures until today.”

Militarization and Human Rights Violations

“The manipulative tactics of these Canadian mining companies gave rise to violence and grave human rights violations,” Ms. Jagunos explained.

Last March, protesters who were trying to prevent the start of TVI’s mine operation by blocking the entry of equipment to the mine site were fired at by company security guards. Twelve people, mostly indigenous people, were arrested.

In the mid 1990s, the company deployed at least 100 armed security guards, set up check points along the roads leading into the community of the Subanen tribe and for seven long years imposed a blockade which prevented food and other basic necessities from going into the community. People who attempted to cross the barricade were shot and injured. Company security guards spiked foot trails with hidden nails.

In Mindoro, the entry of Mindex/Crew also showed the sharp increase of militarization in the province.

After 9/11, the government used the pretext of “War Against Terror” to deploy more troops in Mindoro. The government exploited the situation in Mindoro to go after political opposition and critics of the government, including human rights workers. Thirty people have been killed in Mindoro since 2001 including leaders and members of organizations in the coalition opposing the Crew’s project.

Role of the Canadian Government

“Despite all these, the Canadian government continues to support TVI/Crew.

Two days after the Philippine Government revoked the permit of Crew in July 2001, Canadian Ambassador to the Philippines, Robert Collete, wrote to President Arroyo to protest the revocation. Collette also accompanied Crew’s CEO to visit the governor of Mindoro to discuss the latter’s opposition to the mine,” Ms. Jagunos stated.

“Going for the total liberalization of the mining industry will shave off our mountains from the trees that hold the land; poison the rivers, seas, farmlands and abort the yields of our land; worst, it will dig and shatter the very foundations of our mountains down to the core.” An Aeta (indigenous people
of Central Luzon) leader from Central Luzon, Philippines.

The year 1995 saw the passing of the Philippine Mining Act. The act signed by former President Fidel Ramos aims to attract foreign mining companies to exploit mineral resources in the country. It liberalized the mining industry by removing restrictions and offering numerous incentives such as tax holidays and easement rights - meaning the right of mining companies to remove settlers and indigenous peoples from their ancestral abode.

Ten years of resistance by churches, communities and social movements appeared to have scored a success when the Philippine Supreme Court declared in January this year that several provisions of the Mining Act of 1995 violate the constitution. However, two months after the Supreme Court ruling, the government of Gloria Macapagal Arroyo reversed its decision that revoked Crew’s mining permit. Meanwhile, the struggle of communities affected by Canadian mining companies continues.(Article written and published October and November 2004)