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that upholds the rights of the present and future Filipinos against the
persisting injustices related to large-scale mining.
The term "tigil-minaN (stop mining) does not reflect the stand of totally
going against (to prohibit or ban) all kinds of mining. What ATM is referring
to, is stopping the policy regime on large-scale mining being adopted
by the Arroyo administration and the Department of Environment and
Natural Resources {DENR}, which irrationally exploits mineral resources
undermining the {real value of land' (where minerals are found) to
Filipinos and promoting purely foreign-controlled and export-oriented
mining industry, that does more harm than good in addressing the fiscal
-
Republic Act 7076 (RA 7076) or the People's Small-Scale Mining Act of
1991 defines "small-scale mining" as mining activities which rely heavily
on manual labor, and do not use explosives or heavy mining equipment.
Philippine mining laws do not make a distinction between "artisanal" and
((small-scale" mining.
However, existing literature on mining often differentiates small
scale gold miners as either ((traditional" or "gold-rush" miners. The
said particularities can be attributed to how these groups developed.
The People's Mining Sector: A Review and Analysis of Artisanal and Small-scale Mining in the Philippines
mining workers to higher risks and poorer work conditions than workers
in large-scale mining. Miners are also exposed to regular mine accidents
such as falling objects, suffocation from chemical fumes, crushing injuries,
erosion, and others. Additionally, women miners are exposed to sexual
violence and abuse and child labor exists in many ASM operations.
The rampant use of mercury and cy an ide in gold ASM operations also
endangers the health and safety of miners and their families. In fact, the
ASM sector releases 70 metric tons of mercury annually, making it the
single largest emitter of mercury pollution in the country.
The People's Mining Sector: A Review and Analysis of Artisanal and Smal l-scale Mining in the P h i l ippines
:3
Alyansa T i g i l Mina
Recommendations
These
illegal
Artisanal
and
Small-Scale
Mining
operations create problems
in terms of difficulty in:
monitoring
environmental
providing
compliance,
necessary
technical
and
technological support, and
ensuring workers proper
access to healthcare, training
and other social services.
The national government
must show the people that it will uphold the law and public interest. All
mining operations, whether large-scale or small-scale, in environmentally
critical areas and {{no-go mining" zones, should be closed down.
The DENR and concerned P/CMRB should immediately conduct an
inventory of all existing ASM operations and pending applications
for Minahang Bayan sites should be settled within six months. All
unregistered ASM activities outside of declared Minahang Bayan areas
after the six-month deadline should be closed down.
In addition, the Congress should enact a new {{Artisanal and Small-Scale
Mining Law" that will promote a responsible, sustainable and equitable
people's mining sector. {{Artisanal" mining should be made distinct from
{{small-scale" mining.
The use of explosives, heavy equipment and toxic chemicals should be
banned and all {{artisanal" mining must be limited to tribal areas such
as I/Minahang Katutubo./I Meanwhile, small-scale mining must be strictly
regulated in Minahang Bayan. Small-scale mining operations should
have an extraction quota and be subjected to stricter regulations such as
compliance to existing environmental and pollution control, monitoring
systems, and social acceptability.
No mining, large-scale or small-scale, should use toxic chemicals or be
implemented inside {{no-mining" zones.
The Aquino administration should also mobilize the Bureau of Internal
Revenue, National Bureau of Investigation, Philippine National Police and
Department of Interior and Local Government to end the illegal market of
gold and mercury trade.
The People's Mi ning Sector: A Review and Analysis of Artisanal and Small-scale Min i ng in the Philippi nes
I. INTRODUCTION
BACKGROUND
Reserves in Million MT
Gold
Copper
Nickel
Chromium
Iron
Aluminium
(200S)
3,056
2,968
953
18
410
292
11
12
have ASM within its borders define artisanal mining as informal, non
mechanized extraction activities carried out manually by individuals or
groups. Small-scale mining however has some' mechanization and has
identified production levels.
However this distinction is not relevant to the Philippines. Republic Act
7076 (RA 7076) or the People's Small-scale Mining Act of 1991 defined
"small-scale miningH as mining activities which rely heavily on manual
labor, using simple implement and methods and do not use explosives or
heavy mining equipment.
The existing legal definition of small-scale mining has been a subject of
criticism from many small-scale mining federations and groups in the
country. For instance, subsistence gold miners in Benguet and some parts
of Compostela Valley use explosives and/or heavy machines for digging
and hauling, and technically, are not considered as small-scale miners
under RA 7076.
The Mines and Geosciences Bureau of the Department of Environment
and Natural Resources (DENR-MGB) estimates that there are 2,000-3,000
companies with small-scale mining operations nationwide.8 ln the regions
of Cordillera and Davao, some small scale miners organize themselves
into associations, cooperatives and/or federations.
Despite the huge economic projections and the sheer number of people
and organizations involved, the ASM sector remains a highly unregulated
industry. Many small-scale mining operations remain unregistered and
decentralized. Demanding procedures, registration costs and/or lack of
support from the government dissuade many small-scale miners and
operators to seek legal accreditation.
III. TRADITIONAL vs. GOLD-RUSH MINING
13
14
The People's M i n i n g Sector: A Review and Analysis of Artisanal a n d Small-scale M i n i ng in the Philippines
15
The lack of occupational and safety standards for ASM workers such as
safety regulations, safety awareness, training, access to adequate safety
equipment and healthcare, are evident in the two sites that were visited.
This leads to higher health risks and poorer working conditions for miners
working on ASM operations compared to those involved in large-scale
mining.
The rampant use of mercury and cyanide in gold ASM operations further
endangers the health and safety of miners and their families, especially
women and children. Mercury is one of the most toxic heavy metals
known to man. !t bio-accumulates in the food chain and persists in the
16
17
18
Social unrest and local violence have also been documented in many
ASM communities in Compostela Valley. Meanwhile the rising cases of
prostitution and child trafficking in Daplahan, Zamboanga Sibugay were
being attributed to the illegal mining trade.24
D. CONFLICTING lEGISLATIONS
Two overarching laws govern the ASM sector in the country: Republic
Act 7076 and the Presidential Decree No. 1988 titled ((Establishing
Small-scale Mining as a New Dimension in Mineral Development" issued
during the Marcos regime. However, conflicting provisions in these two
laws especially on the authoritative entity for issuing mining permits has
resulted in confusion and in some cases, political and social mayhem in
mineral-rich provinces.2s
On June 22, 2011, the Department of Justice issued Opinion No. 29 series
of 2011 stating that RA 7076 has already repealed PO 1988, thus limiting
the power of provincial governors and city mayors to unilaterally approve
mining permits. Under the said legal opinion, all small-scale miners
seeking a permit to operate must organize themselves into cooperatives
and they will only be allowed to mine in areas declared as People's SmallThe People's Mining Sector: A Review and Analysis of Artisanal and Smal l-scale Mining in the P h i l ippines
19
Issued policies by the DENR and existing legal instruments catering more
in favor of large-scale mining industries/corporations may have hindered
the development and mainstreaming of small-scale mining sector. In
some provinces, overlapping permits issued by different agencies have
caused confusion and fuelled local conflicts between miners.
Many small-scale miners also believe that some officials use the Minahang
Bayan provision of the law to remove them from their current operational
sites, paving the entry of large-scale mining corporations.
ASM groups also complained that most of their applications are being
turned down by the DENR-MGB.
The ASM sectoral group Save Pantukan Alliance- filed a petition in 2007
to declare the areas of Diat, Biasong and Boringot as Minahang Katutubo
and the areas of Panganason, Gumayan and Lumanggang as Minahang
Bayan. According to the group, they have completed the application
requirements but decided to withdraw their application because i\tiGB
is requiring them to acquire consent from the Nationwide Development
Corp. (Nadecor), a large-scale mining company which has an existing
mineral production sharing agreement (MPSA) in the said areas.28
Aside from Nadecor, foreign mining firms operating in Pantukan are:
Napnapan Miner Resource and Corporation (4,912 hectares); Blue
22
GOOD
_ "-- 'L....
The People's M i n i n g Sector: A Review and Analysis of Artisanal and Smal l-scale M i n i n g in the P h i l ippi nes
23
"'-1I"-"."--U"
25
It is hard to deny the fact that one of the glaring reasons why small-scale
operations thrive in many provinces is because those who are in power
benefits from this sector. Political families and prominent groups thrive
from venturing into small-scale mining operations.
In one media interview, Compostela Valley Governor Arturo Uy admitted
that during the 2010 campaign period, he received a donation of P20
million pesos from one mining site alone.33 Also one tunnel owner in
Nabunturan that was interviewed for this paper also confirmed that they
regularly pay {{revolutionary tax" to members of the Communist Party of
the Philippines - New People's Army (CPP-NPA).
In the context of national development, it is difficult to assess how much
is the sector's contribution, if any, can be linked to national progress since
the ASM sector's major production goes to the black market, rather than
the country's mineral reserve inventory. BSP recorded an unprecedented
zero gold buys for 2013 and it shows that almost all small-scale miners in
the country cater the black market to sell their goods. In 2008, the DENR
reported that at least 3 million metric tons of various mineral ores were
illegally shipped out of the country to China alone.
With the lack of official registration,
monitoring and similar systems to ensure
the collection of environmental damages and
compensation, in the end, it will eventually be
the general public who will shoulder the huge
costs of addressing and mitigating the hazards
brought by small-scale mining sector, such
as the clean-up of contaminated sites and
healthcare support for affected residents.
VIII. RECOMMENDATIONS
A. REGULATION AND IMPLEMENTATION OF THE LAW
Both the national and local government units should be held responsible
for the chaotic state and lack of regulation of small-scale mining activities
in many parts of the country.
The DENR's central bias in favor of large-scale mining corporations,
along with the ineptness and lack of political will of its regional and field
offices, may have contributed to the failure to mainstream the small-scale
The People's Mining Sector: A Review and Analysis of Artisanal and Small-scale Mining in the Philippines
27
28
29
ho
l+h
...
..
11\.:.01\.1111..)",,).
30
I bid
4
5
Ibid.
Enviro n m e nt al M a n agement B u re a u - Department of Enviro n m e nt a n d N a t u ra l
Resou rces, N a tion a l Str a tegic Plan for the Phase-out of Mercury i n Artis a n a l and
I bi d .
Center for Deve l o p ment Stu d ies - U n iversity of Wa les Swa nsea, N ove m b e r 2004,
Livelihoods and Policy in the Artis anal and Sm a ll-sc ale Mining Sector - An Overview.
8
10
The Altern ative Foru m for Rese a rc h i n M i n d a no, Ba ntay Kita Occas i o n a l P a p e r
Se ries N o . 2 0 1 2-02, A B ackground Study o n the Sm all-Sc ale Mining Oper a tions in
Benguet and South Cotabato and their Imp act on Econom the Environment and
the Community.
11
I bi d .
12
Ibid.
13
gold tra de, 19 Nove m b e r 2012. http ://b usiness . i n q u i re r. n et/93838/s m u gglers-n ow
control-9 5-of- p h i l i p p i ne-go l d-tra d e .
14
M agtu l is, Prinz P. P h i l i p p i ne Daily I n q u i rer, New t ax rules hinder BSP gold purch ases,
6 M ay 2 0 1 3 . http ://www. p h i lsta r. co m/b u s i n ess/2013/05/06/9 3 8 705/new-tax-ru l e
h i n d e rs-bsp-go l d - p u rchases
16
Lu, J i n ky Le i l a n ie, J o u r n a l of Wome n's I nternati o n a l Stu d ies Vol 13, Occup ation al
He alth and S afety in Sm all Sc ale Mining: Focus on Women Workers in the
Philippines, 3 J u l y 2012.
17
18
I bi d .
Lim, Fri nsto n L . , P h i l i p p i n e D a i ly I n q u i re r, Com Val mining tunnel coll a pse: 1 de ad,
I LO News, Sm a ll-sc ale mining on the incre ase in developing countries, 17 M ay 1999.
htt p ://www. i l o . o rg/gl o b a l/a bout-the-i l o/newsroo m/n ews/WCMS_OO7929/l an g-
e n/i ndex . ht m
20
B a n Toxi cs, The Price of Gold: Mercury Use a n d Current Issues Surrounding Artis an a l
22
S a r m i e nto, Bo ng, S . S u nSta r Davao, Sm all-sc ale miners eye oper ation i n Ta mpakan,
The People's Mining Sector: A Review and Analysis of Artisanal and Small-scale Mi n i ng i n the P h i l ippines
31
23
25
M ayhem Triggers Eco-dis aster in Zamb a les, 18 August 2009 . http ://pcij . o rg/
b log/2009/08/18/m i n i ng-mayh e m -triggers-eco-d isaster-i n-za m b a les
26
27
28
29
P h i l i p p i n e N ews Age n cy, Sm a ll-sc ale miners occupy Compostel a Valley bridge to
dem and assur ances, 18 M ay 2012. http ://www. i ntera ksyo n . co m/a rti c l e/32 2 5 2/
s m a l l-sca le-m i n e rs-occu py-com poste l a -va l l ey-bridge-to-d e m a n d-ass u ra n ces
30
31
32
33
34
should-BIR, 14 Nove m ber 2012. http ://b u s i n ess . i n q u i re r. n et/9 2798/ b i r-chi efo p poses-gol d -tax-suspe ns i 0 n-says-tra d e rs-payi ng-I ess-tax-th a n -th ey-s h o u I d
32
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Alyansa Tig i l M i na
J a n u a ry 2014