Mining in the Philippines - Concerns and Conflicts
Mining in the Philippines - Concerns and Conflicts
Mining in the Philippines - Concerns and Conflicts
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<strong>M<strong>in</strong><strong>in</strong>g</strong> <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es<br />
<strong>Concerns</strong> <strong>and</strong> conflicts<br />
Report of a Fact-F<strong>in</strong>d<strong>in</strong>g Trip to <strong>the</strong> Philipp<strong>in</strong>es<br />
July-August 2006<br />
Acknowledgments<br />
The Fact F<strong>in</strong>d<strong>in</strong>g Mission wishes to thank all those who took time to meet with us. The right to enjoy<br />
human rights <strong>and</strong> development is universal. We wish to encourage any <strong>and</strong> all communities <strong>and</strong> local<br />
authorities adversely affected by m<strong>in</strong><strong>in</strong>g impacts to cont<strong>in</strong>ue to explore <strong>and</strong> pursue all avenues<br />
available with<strong>in</strong> <strong>the</strong> law at local, national <strong>and</strong> <strong>in</strong>ternational levels to register <strong>the</strong>ir concerns <strong>and</strong><br />
aspirations <strong>and</strong> seek redress for wrongs. We offer our cont<strong>in</strong>ued support to all parties <strong>in</strong> future efforts<br />
to realize a national path to susta<strong>in</strong>able development based on justice.<br />
Disclaimer<br />
The views expressed <strong>in</strong> this report are those of <strong>the</strong> authors <strong>and</strong> not necessarily those of <strong>the</strong><br />
participat<strong>in</strong>g or support<strong>in</strong>g organizations. The authors have however done <strong>the</strong>ir best to reflect <strong>the</strong><br />
views, of <strong>the</strong> many people <strong>the</strong>y met <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es <strong>and</strong> <strong>the</strong> views of <strong>the</strong> people <strong>and</strong> organizations<br />
who have commented on <strong>the</strong> report.
Copyright Columban Fa<strong>the</strong>rs 2007<br />
First Published 2007 by Society of St. Columban, Widney Manor Rd., Knowle, Solihull B93 9AB, West<br />
Midl<strong>and</strong>s, UK<br />
ISBN number 1-902648-92-7<br />
978-1-902648-92-7<br />
Report written by Cathal Doyle, Clive Wicks <strong>and</strong> Frank Nally<br />
Edited by Mara Stankovitch, Geoff Nettleton <strong>and</strong> Andrew Whitmore
Table of Contents<br />
Foreword................................................................................................................................................................ i<br />
Acronyms <strong>and</strong> Abbreviations............................................................................................................................ ii<br />
Executive Summary ........................................................................................................................................... iii<br />
1. Introduction...................................................................................................................................................1<br />
2. Trip Overview...............................................................................................................................................3<br />
3. Areas of Concern ..........................................................................................................................................8<br />
3.1. Human Rights......................................................................................................................................8<br />
3.1.1. Security firms <strong>and</strong> militarization..................................................................................................8<br />
3.2. Corruption............................................................................................................................................9<br />
3.3. Pressure on <strong>the</strong> judiciary..................................................................................................................10<br />
3.4. Environmental concerns...................................................................................................................10<br />
3.4.1. Legislation......................................................................................................................................12<br />
3.4.2. Environmental Social Impact Assessments & Strategic Environmental Assessments .......12<br />
3.5. Indigenous peoples <strong>and</strong> Free, Prior, Informed, Consent.............................................................12<br />
3.5.1. Lack of <strong>in</strong>dependent monitor<strong>in</strong>g & expertise provision & <strong>the</strong> NCIP....................................14<br />
3.5.2. Weaknesses <strong>in</strong> <strong>the</strong> Law ................................................................................................................14<br />
3.6. The Philipp<strong>in</strong>es Local Government Code......................................................................................15<br />
3.7. Health impacts...................................................................................................................................15<br />
3.8. Militarized commerce.......................................................................................................................16<br />
3.9. Economic model ................................................................................................................................17<br />
3.9.1. Alternative economic <strong>and</strong> susta<strong>in</strong>able development models.................................................18<br />
4. Conclusion ...................................................................................................................................................20<br />
5. Recommendations ......................................................................................................................................23<br />
Appendix 1. It<strong>in</strong>erary.........................................................................................................................................29<br />
Appendix 2. Case Studies..................................................................................................................................31<br />
Appendix 3. Catholic Bishops Conference of <strong>the</strong> Philipp<strong>in</strong>es Stance ........................................................36<br />
Appendix 4. Investment risks ...........................................................................................................................38<br />
Appendix 5. The Threat to Indigenous Rights <strong>and</strong> Environment by <strong>M<strong>in</strong><strong>in</strong>g</strong>............................................41<br />
Appendix 6. Petition aga<strong>in</strong>st TVI exploration permit <strong>in</strong> Midsalip..............................................................44<br />
Appendix 7: Photos of Fact F<strong>in</strong>d<strong>in</strong>g Team Mission.......................................................................................48<br />
Appendix 8: <strong>M<strong>in</strong><strong>in</strong>g</strong> Impacts at Mt Canatuan................................................................................................50<br />
Appendix 9: Scale of Planned M<strong>in</strong>eral Opportunities presented to Investors ..........................................51<br />
Appendix 10: Maps of Mar<strong>in</strong>e <strong>and</strong> Terrestrial Conservation Priorities .....................................................52<br />
Appendix 11 Gross Value Added <strong>in</strong> Agriculture, Fisheries <strong>and</strong> Forestry .................................................53<br />
Appendix 12: Concentration of Indigenous Peoples <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es.....................................................54<br />
Endnotes ..............................................................................................................................................................55<br />
List of Boxes<br />
Extrajudicial kill<strong>in</strong>gs 8<br />
Extractive Industry Transparency Initiative 9<br />
Food <strong>and</strong> Water Security 11<br />
Philipp<strong>in</strong>e obligations under International Law 15<br />
Peace agreements 16<br />
Small-scale m<strong>in</strong>ers 19
Foreword<br />
Hav<strong>in</strong>g visited many develop<strong>in</strong>g countries <strong>and</strong> seen many places where environmental degradation<br />
or destructive development has damaged <strong>the</strong> livelihoods of people, I was never<strong>the</strong>less deeply<br />
shocked by <strong>the</strong> negative impact of m<strong>in</strong><strong>in</strong>g <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es. In July 2006 I led a team of human<br />
rights <strong>and</strong> environmental experts on a fact f<strong>in</strong>d<strong>in</strong>g visit to <strong>the</strong> Philipp<strong>in</strong>es <strong>in</strong> order to exam<strong>in</strong>e <strong>the</strong><br />
impact of m<strong>in</strong><strong>in</strong>g on <strong>the</strong> environment <strong>and</strong> people’s livelihoods. We met with communities affected<br />
by m<strong>in</strong><strong>in</strong>g <strong>and</strong> proposals for new m<strong>in</strong>es. We heard how <strong>in</strong>digenous people had been shifted off <strong>the</strong>ir<br />
l<strong>and</strong>s to make way for m<strong>in</strong><strong>in</strong>g <strong>and</strong> how <strong>the</strong>ir consultation rights had been underm<strong>in</strong>ed <strong>and</strong> ignored.<br />
We saw polluted rivers, destroyed mangrove forests, damaged coral <strong>and</strong> ru<strong>in</strong>ed agriculture. We<br />
concluded that <strong>the</strong> Philipp<strong>in</strong>es is <strong>in</strong> danger of los<strong>in</strong>g much of its rich biodiversity <strong>and</strong> damag<strong>in</strong>g <strong>the</strong><br />
lives of unique <strong>in</strong>digenous cultures. I believe that current plans for m<strong>in</strong><strong>in</strong>g <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es should<br />
be scrapped <strong>and</strong> a new strategy put <strong>in</strong> place which takes proper account of <strong>the</strong> large number of jobs<br />
that already exist <strong>in</strong> small scale m<strong>in</strong><strong>in</strong>g <strong>and</strong> <strong>the</strong> need to establish criteria for that development of <strong>the</strong><br />
m<strong>in</strong><strong>in</strong>g <strong>in</strong>dustry which protects <strong>the</strong> precious <strong>and</strong> unique biodiversity of <strong>the</strong> Philipp<strong>in</strong>es <strong>and</strong> <strong>the</strong> rights<br />
of <strong>in</strong>digenous communities.<br />
Dur<strong>in</strong>g our visit, we found scant evidence of m<strong>in</strong><strong>in</strong>g benefit<strong>in</strong>g local people or <strong>the</strong> country’s<br />
economy. We believe that <strong>the</strong> Government of <strong>the</strong> Philipp<strong>in</strong>es <strong>and</strong> <strong>the</strong> m<strong>in</strong><strong>in</strong>g companies have failed<br />
to comply with national law <strong>and</strong> <strong>in</strong>ternational st<strong>and</strong>ards. We believe that <strong>the</strong> Government should be<br />
challenged to demonstrate that it is will<strong>in</strong>g to adhere to its own laws <strong>and</strong> <strong>in</strong>ternational m<strong>in</strong><strong>in</strong>g best<br />
practice by immediately refus<strong>in</strong>g all m<strong>in</strong><strong>in</strong>g applications which would damage critical watersheds,<br />
ecosystems, agriculture or fisheries or lead to serious social disruption. We are also concerned that<br />
some of <strong>the</strong> m<strong>in</strong><strong>in</strong>g companies are based <strong>in</strong> <strong>the</strong> UK <strong>and</strong> <strong>in</strong>creas<strong>in</strong>gly money raised <strong>in</strong> <strong>the</strong> City of<br />
London is be<strong>in</strong>g used to fund disastrous projects.<br />
World Bank support for an expansion of destructive m<strong>in</strong><strong>in</strong>g <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es is also a matter of great<br />
concern <strong>and</strong> given <strong>the</strong> substantial provision of fund<strong>in</strong>g to <strong>the</strong> World Bank by UK taxpayers, a matter<br />
that should be taken up by parliamentarians <strong>and</strong> <strong>the</strong> Department for International Development.<br />
Similarly <strong>the</strong> European Union claims that its development programmes are dedicated to <strong>the</strong><br />
protection of <strong>the</strong> rights of <strong>in</strong>digenous people <strong>and</strong> to a strong commitment to susta<strong>in</strong>able development<br />
but its development <strong>in</strong>terventions <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es are fail<strong>in</strong>g to live up to <strong>the</strong>se st<strong>and</strong>ards. All<br />
<strong>the</strong>se development agencies should play a bigger role <strong>in</strong> help<strong>in</strong>g <strong>the</strong> Philipp<strong>in</strong>es protect <strong>and</strong> restore<br />
its degraded environment <strong>and</strong> thus enhance <strong>and</strong> provide a susta<strong>in</strong>able future for millions of poor<br />
people work<strong>in</strong>g <strong>in</strong> agriculture <strong>and</strong> fisheries. We also believe that <strong>the</strong> <strong>in</strong>vestor community must<br />
behave more responsibly <strong>in</strong> <strong>the</strong>ir <strong>in</strong>vestment decisions <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es.<br />
My own conclusion from <strong>the</strong> visit was that I have never seen anyth<strong>in</strong>g so systematically destructive<br />
as <strong>the</strong> m<strong>in</strong><strong>in</strong>g programme <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es. The environmental effects are catastrophic as are <strong>the</strong><br />
effects on people’s livelihoods.<br />
The attached report has been prepared by Cathal Doyle, Irish Centre for Human Rights, National<br />
University of Irel<strong>and</strong>, Galway, Clive Wicks a UK Member of CEESP <strong>the</strong> IUCN Commission on<br />
Environmental Economic <strong>and</strong> Social Policy <strong>and</strong> Fr Frank Nally, UK Columban Faith <strong>and</strong> Justice<br />
Office <strong>and</strong> takes fur<strong>the</strong>r <strong>the</strong> conclusions that I have outl<strong>in</strong>ed here. We all wish to express our<br />
solidarity with <strong>and</strong> admiration for <strong>the</strong> Catholic Bishops’ Conference of <strong>the</strong> Philipp<strong>in</strong>es which has<br />
been vocal <strong>in</strong> its public opposition to <strong>the</strong> country’s 1995 <strong>M<strong>in</strong><strong>in</strong>g</strong> Act, local m<strong>in</strong><strong>in</strong>g practices <strong>and</strong> plans<br />
for a massive expansion of m<strong>in</strong><strong>in</strong>g.<br />
Clare Short MP<br />
House of Commons<br />
13 December 2006<br />
i
ADSDPP<br />
ASEAN<br />
CADT<br />
CAFGU<br />
CALT<br />
CBCP<br />
CEDAW<br />
CERD<br />
CEESP<br />
CHR<br />
CRC<br />
DENR<br />
EIA<br />
EIR<br />
ESIA<br />
EU<br />
FPIC<br />
FTAA<br />
FTT<br />
GoP<br />
ICCPR<br />
ICESCR<br />
IFC<br />
ILO<br />
IPRA<br />
IPs<br />
IRR<br />
LGU<br />
MAP<br />
MDGs<br />
MILF<br />
MPSA<br />
NASSA<br />
NCIP<br />
NDF<br />
NEDA<br />
NPA<br />
OECD<br />
SCAA<br />
SEA<br />
SRSG<br />
STD<br />
UNEP<br />
UNCTAD<br />
Acronyms <strong>and</strong> Abbreviations<br />
Ancestral Doma<strong>in</strong> Susta<strong>in</strong>able Development Protection Plans<br />
Association of South East Asian Nations<br />
Certificate of Ancestral Doma<strong>in</strong> Title<br />
Citizens Armed Forces Geographical Unit<br />
Certificate of Ancestral L<strong>and</strong> Title<br />
Catholic Bishops Conference of <strong>the</strong> Philipp<strong>in</strong>es<br />
Convention on <strong>the</strong> Elim<strong>in</strong>ation of all forms of Discrim<strong>in</strong>ation Aga<strong>in</strong>st Women<br />
Convention on <strong>the</strong> Elim<strong>in</strong>ation of all forms of Racial Discrim<strong>in</strong>ation<br />
IUCN Commission on Environmental, Economic <strong>and</strong> Social Policy<br />
Commission on Human Rights<br />
Convention on <strong>the</strong> Rights of <strong>the</strong> Child<br />
Department of Environment <strong>and</strong> Natural Resources<br />
Environmental Impact Assessment<br />
Extractive Industry Review<br />
Environmental Social Impact Assessment<br />
European Union<br />
Free, Prior, Informed, Consent<br />
F<strong>in</strong>ancial <strong>and</strong> Technical Assistance Agreement<br />
Fact F<strong>in</strong>d<strong>in</strong>g Team<br />
Government of <strong>the</strong> Philipp<strong>in</strong>es<br />
International Covenant on Civil <strong>and</strong> Political Rights<br />
International Covenant on Economic Social <strong>and</strong> Cultural Rights<br />
International F<strong>in</strong>ance Corporation<br />
International Labour Organization<br />
Indigenous Peoples’ Rights Act<br />
Indigenous Peoples<br />
Implement<strong>in</strong>g Rules <strong>and</strong> Regulations<br />
Local Government Unit<br />
M<strong>in</strong>eral Action Plan<br />
Millennium Development Goals<br />
Moro Islamic Liberation Front<br />
M<strong>in</strong>eral Production Shar<strong>in</strong>g Agreement<br />
National Secretariat for Social Action<br />
National Commission on Indigenous Peoples<br />
National Democratic Front<br />
National Economic <strong>and</strong> Development Authority<br />
New People’s Army<br />
Organization for Economic Cooperation <strong>and</strong> Development<br />
Special CAFGU Armed Auxiliary<br />
Strategic Environmental Appraisal<br />
Special Representative of <strong>the</strong> Secretary General<br />
Submar<strong>in</strong>e Tail<strong>in</strong>gs Disposal<br />
United Nations Environmental Programme<br />
United Nations Commission on Trade <strong>and</strong> Development<br />
ii
Executive Summary<br />
A team led by Clare Short MP, <strong>the</strong> former UK Secretary of State for Overseas Development, visited<br />
<strong>the</strong> Philipp<strong>in</strong>es <strong>in</strong> July <strong>and</strong> August 2006.<br />
The Catholic Bishops of <strong>the</strong> Philipp<strong>in</strong>es attracted <strong>in</strong>ternational attention because of <strong>the</strong>ir concerns<br />
regard<strong>in</strong>g <strong>the</strong> proposed expansion of <strong>the</strong> m<strong>in</strong><strong>in</strong>g <strong>in</strong>dustry, which has already had major negative<br />
impacts on local communities <strong>and</strong> <strong>the</strong> environment. In <strong>the</strong>ir view ‘The implementation of <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong><br />
Act will certa<strong>in</strong>ly destroy both <strong>the</strong> environment <strong>and</strong> people <strong>and</strong> will lead to national unrest’.<br />
The team was shocked by what <strong>the</strong>y heard <strong>and</strong> saw dur<strong>in</strong>g <strong>the</strong>ir visit. In its attempts to woo foreign<br />
direct <strong>in</strong>vestment, <strong>the</strong> Philipp<strong>in</strong>es government appears will<strong>in</strong>g to circumvent its own laws protect<strong>in</strong>g<br />
<strong>the</strong> environment <strong>and</strong> human rights <strong>and</strong> reduce st<strong>and</strong>ards below acceptable <strong>in</strong>ternational practice.<br />
Internationally <strong>the</strong> World Bank’s Extractive Industry Review (EIR), a range of academic studies <strong>and</strong><br />
UN reports have been highly critical of such an approach. All identify m<strong>in</strong><strong>in</strong>g companies as <strong>the</strong> ma<strong>in</strong><br />
beneficiaries of regulatory concessions <strong>in</strong> <strong>the</strong> extractive <strong>in</strong>dustry, while <strong>the</strong> long-term burden of<br />
environmental <strong>and</strong> social costs rema<strong>in</strong>s with <strong>the</strong> develop<strong>in</strong>g countries <strong>and</strong> some of <strong>the</strong>ir poorest<br />
communities.<br />
The team recognizes <strong>the</strong> external pressures on <strong>the</strong> Philipp<strong>in</strong>es as a deeply <strong>in</strong>debted country to<br />
generate foreign <strong>in</strong>vestment but fears that <strong>the</strong> emphasis on export-driven m<strong>in</strong><strong>in</strong>g based on foreign<br />
<strong>in</strong>vestment may dim<strong>in</strong>ish ra<strong>the</strong>r than improve <strong>the</strong> possibility of a balanced, long-term, susta<strong>in</strong>able<br />
development strategy. The problems are exacerbated by <strong>the</strong> unresolved problems of corruption <strong>and</strong><br />
<strong>the</strong> fact that, aga<strong>in</strong> contrary to <strong>the</strong> recommendations of <strong>the</strong> EIR, many of <strong>the</strong> proposed new m<strong>in</strong><strong>in</strong>g<br />
sites are <strong>in</strong> areas of conflict <strong>in</strong>clud<strong>in</strong>g M<strong>in</strong>danao.<br />
<strong>M<strong>in</strong><strong>in</strong>g</strong> <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es is be<strong>in</strong>g developed at a speed <strong>and</strong> scale (See Appendix 9 Scale of Planned<br />
M<strong>in</strong>eral Opportunities presented to Investors), <strong>and</strong> <strong>in</strong> a manner likely to cause massive long-term<br />
environmental damage <strong>and</strong> social problems. Current m<strong>in</strong><strong>in</strong>g plans will underm<strong>in</strong>e <strong>the</strong> Government’s<br />
own strategy for susta<strong>in</strong>able development by destroy<strong>in</strong>g or severely damag<strong>in</strong>g critical eco-systems,<br />
<strong>in</strong>clud<strong>in</strong>g watersheds, rivers, mar<strong>in</strong>e eco-systems <strong>and</strong> important agricultural production areas.<br />
The population, currently 84 million, is expected to reach 150 million by 2036. Ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g <strong>the</strong><br />
productivity <strong>and</strong> viability of <strong>the</strong> l<strong>and</strong> <strong>and</strong> mar<strong>in</strong>e environment is surely <strong>the</strong> highest priority. Food<br />
shortages already exist. The Medium Term Philipp<strong>in</strong>e Development Plan (MTPDP) of <strong>the</strong> National<br />
Economic <strong>and</strong> Development Authority highlights <strong>the</strong> need to address environmental degradation.<br />
The team fears fur<strong>the</strong>r damage to <strong>the</strong> environment by m<strong>in</strong><strong>in</strong>g will occur <strong>and</strong> will <strong>in</strong>crease <strong>the</strong> threat<br />
to <strong>the</strong> country’s long-term food security <strong>and</strong> <strong>the</strong> survival of future generations of Filip<strong>in</strong>os.<br />
The Philipp<strong>in</strong>es is one of <strong>the</strong> 17 countries <strong>in</strong> <strong>the</strong> world to be categorized as a mega-biodiversity<br />
country. It is also a geo-hazard hotspot, prone to typhoons, earthquakes, l<strong>and</strong>slides <strong>and</strong> volcanoes. Its<br />
environmental susta<strong>in</strong>ability is already under serious threat with <strong>the</strong> UNDP highlight<strong>in</strong>g <strong>the</strong> urgent<br />
need to properly manage <strong>the</strong> country’s natural resources if MDG 7 is to be achieved 1 . These factors,<br />
toge<strong>the</strong>r with potential social impacts, should require <strong>the</strong> Philipp<strong>in</strong>e government to exercise extreme<br />
caution <strong>in</strong> authoriz<strong>in</strong>g large-scale m<strong>in</strong><strong>in</strong>g projects.<br />
The Philipp<strong>in</strong>es has relatively strong laws designed to protect <strong>the</strong> environment, communities <strong>and</strong><br />
<strong>in</strong>digenous peoples. The reality, however, is that where <strong>in</strong>vestments are concerned <strong>the</strong> law is too<br />
often viewed as a mere technicality to be overlooked or circumvented. Human rights abuses <strong>and</strong><br />
misreport<strong>in</strong>g are clearly associated with some current m<strong>in</strong><strong>in</strong>g activities. It is of concern that those <strong>in</strong><br />
iii
government <strong>and</strong> <strong>in</strong>ternational agencies seem to lack <strong>the</strong> capacity or <strong>in</strong>cl<strong>in</strong>ation to challenge <strong>and</strong> end<br />
such misconduct. Philipp<strong>in</strong>e Law requires that before any development takes place with<strong>in</strong> <strong>the</strong><br />
ancestral l<strong>and</strong>s of <strong>in</strong>digenous people <strong>the</strong>y must give <strong>the</strong>ir free, prior, <strong>in</strong>formed consent (FPIC). The<br />
team heard, however, that this consent is sometimes obta<strong>in</strong>ed through mis<strong>in</strong>formation,<br />
misrepresentation, bribery <strong>and</strong> <strong>in</strong>timidation. Government agencies, <strong>in</strong> particular <strong>the</strong> National<br />
Commission on Indigenous Peoples (NCIP), are, accord<strong>in</strong>g to <strong>in</strong>digenous people <strong>the</strong> team talked to,<br />
fail<strong>in</strong>g to fulfill <strong>the</strong>ir m<strong>and</strong>ate to protect <strong>in</strong>digenous peoples’ rights. Many <strong>in</strong>digenous peoples view<br />
<strong>the</strong> NCIP as sid<strong>in</strong>g with m<strong>in</strong><strong>in</strong>g companies. They feel <strong>the</strong> need for an <strong>in</strong>dependent body to ensure<br />
<strong>in</strong>digenous peoples are adequately <strong>in</strong>formed about plans to operate <strong>and</strong> exp<strong>and</strong> m<strong>in</strong>es, <strong>and</strong> to assist<br />
<strong>the</strong>m <strong>in</strong> represent<strong>in</strong>g <strong>the</strong>ir views.<br />
The World Bank is implicated <strong>in</strong> <strong>the</strong> expansion of m<strong>in</strong><strong>in</strong>g <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es. Despite historical<br />
problems with m<strong>in</strong><strong>in</strong>g <strong>and</strong> a legacy of 800 ab<strong>and</strong>oned m<strong>in</strong>es, <strong>the</strong> Bank was one of <strong>the</strong> major actors<br />
<strong>in</strong>fluenc<strong>in</strong>g <strong>the</strong> liberalized <strong>M<strong>in</strong><strong>in</strong>g</strong> Act of 1995. More recently, it has played a crucial role <strong>in</strong><br />
sponsor<strong>in</strong>g <strong>and</strong> promot<strong>in</strong>g <strong>the</strong> adoption of <strong>the</strong> National M<strong>in</strong>erals Policy, <strong>the</strong> M<strong>in</strong>eral Action Plan <strong>and</strong><br />
<strong>the</strong> revitalization of <strong>the</strong> m<strong>in</strong><strong>in</strong>g <strong>in</strong>dustry. In fail<strong>in</strong>g to address <strong>the</strong> negative impacts of m<strong>in</strong><strong>in</strong>g plans on<br />
<strong>the</strong> poor <strong>and</strong> marg<strong>in</strong>al, <strong>the</strong> Bank is fail<strong>in</strong>g <strong>in</strong> its duty both to assist with <strong>the</strong> country’s steps to<br />
susta<strong>in</strong>able development <strong>and</strong> is fail<strong>in</strong>g to abide by obligations to its own m<strong>and</strong>ate <strong>and</strong> obligations<br />
under <strong>in</strong>ternational human rights law.<br />
Based on <strong>the</strong> economic evidence available, <strong>the</strong> team believes that implementation of <strong>the</strong> proposed<br />
m<strong>in</strong><strong>in</strong>g plan will br<strong>in</strong>g <strong>in</strong>sufficient benefits to <strong>the</strong> Filip<strong>in</strong>o people. Once <strong>in</strong>centives to m<strong>in</strong><strong>in</strong>g firms<br />
have been considered <strong>and</strong> revenues offset aga<strong>in</strong>st <strong>the</strong> associated costs – <strong>in</strong> particular <strong>the</strong><br />
environmental costs – <strong>the</strong> net ga<strong>in</strong> will be far lower than that claimed by <strong>the</strong> companies <strong>and</strong> <strong>the</strong><br />
promoters of m<strong>in</strong><strong>in</strong>g <strong>in</strong> government. The country may be left with clean-up costs that run <strong>in</strong>to billions<br />
of dollars.<br />
Corruption is a serious problem <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es <strong>and</strong> it can be expected that plans for extensive<br />
m<strong>in</strong><strong>in</strong>g operations <strong>in</strong> remote areas requir<strong>in</strong>g licens<strong>in</strong>g, regulation <strong>and</strong> monitor<strong>in</strong>g will make it worse.<br />
The Philipp<strong>in</strong>es currently faces a crisis of extra-judicial kill<strong>in</strong>gs. More than 700 activists – <strong>in</strong>clud<strong>in</strong>g<br />
civil rights <strong>and</strong> environmental advocates – have been killed s<strong>in</strong>ce <strong>the</strong> current adm<strong>in</strong>istration came to<br />
power <strong>in</strong> 2001. Corruption <strong>and</strong> extrajudicial kill<strong>in</strong>gs will do untold damage to <strong>the</strong> reputation of <strong>the</strong><br />
Philipp<strong>in</strong>es worldwide, limit<strong>in</strong>g its ability to promote tourism <strong>and</strong> o<strong>the</strong>r susta<strong>in</strong>able activities, or<br />
responsible foreign direct <strong>in</strong>vestment of any k<strong>in</strong>d.<br />
The follow<strong>in</strong>g is a summary of <strong>the</strong> recommendations <strong>the</strong> team makes, some of which are elaborated<br />
on <strong>in</strong> <strong>the</strong> conclud<strong>in</strong>g recommendation section. These recommendations are <strong>in</strong>formed by our various<br />
experiences, <strong>in</strong>formants <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es, exist<strong>in</strong>g practice <strong>in</strong> o<strong>the</strong>r parts of <strong>the</strong> world <strong>and</strong> emerg<strong>in</strong>g<br />
st<strong>and</strong>ards suggested by authoritative <strong>in</strong>ternational processes.<br />
1 Recommended immediate actions by <strong>the</strong> Philipp<strong>in</strong>e government<br />
1.1 Demonstrate that it is will<strong>in</strong>g to adhere to its own laws <strong>and</strong> to <strong>in</strong>ternational m<strong>in</strong><strong>in</strong>g best<br />
practice <strong>and</strong> st<strong>and</strong>ards by immediately cancel<strong>in</strong>g all current m<strong>in</strong><strong>in</strong>g applications which will<br />
<strong>in</strong>evitably cause major environmental damage to critical watersheds, eco-systems, agriculture or<br />
fisheries <strong>and</strong> result <strong>in</strong> social disruption, such as those <strong>in</strong> Midsalip visited by <strong>the</strong> team. This should<br />
<strong>in</strong>clude cases where <strong>the</strong>re is strong evidence of serious <strong>in</strong>adequacies <strong>in</strong> <strong>the</strong> consultation <strong>and</strong> consent<br />
processes. Best International practice would also require that:<br />
• <strong>M<strong>in</strong><strong>in</strong>g</strong> licenses should not be issued <strong>in</strong> conflict zones as recommended by <strong>the</strong> Extractive Industry<br />
Review (EIR).<br />
• The precautionary approach to m<strong>in</strong><strong>in</strong>g is adopted as required by <strong>the</strong> Rio Declaration - this would<br />
require a ban on submar<strong>in</strong>e <strong>and</strong> river<strong>in</strong>e tail<strong>in</strong>gs disposal <strong>and</strong> mar<strong>in</strong>e m<strong>in</strong><strong>in</strong>g.<br />
iv
• No fur<strong>the</strong>r m<strong>in</strong><strong>in</strong>g licenses be issued until adequate enforceable legislation <strong>and</strong> controls are put <strong>in</strong><br />
place to protect <strong>the</strong> environment <strong>and</strong> <strong>the</strong> economic, social, cultural, civil <strong>and</strong> political human<br />
rights of <strong>the</strong> Indigenous Peoples <strong>and</strong> m<strong>in</strong><strong>in</strong>g impacted communities.<br />
1.2 Ensure regulation <strong>and</strong> redress. We recommend that <strong>the</strong> government addresses <strong>the</strong> shift of its role<br />
from ‘regulator of m<strong>in</strong><strong>in</strong>g’ to ‘active promoter of m<strong>in</strong><strong>in</strong>g’ by ensur<strong>in</strong>g that all relevant government<br />
agencies conf<strong>in</strong>e <strong>the</strong>ir activities to <strong>the</strong> impartial regulation of m<strong>in</strong><strong>in</strong>g.<br />
1.3 Revoke <strong>the</strong> 1995 <strong>M<strong>in</strong><strong>in</strong>g</strong> Act. We suggest that <strong>the</strong> government heeds <strong>the</strong> calls to revoke <strong>the</strong><br />
<strong>M<strong>in</strong><strong>in</strong>g</strong> Act of 1995 <strong>and</strong> enact alternative legislation that more effectively protects <strong>the</strong> <strong>in</strong>terests of <strong>the</strong><br />
affected local communities, <strong>in</strong>digenous peoples <strong>and</strong> <strong>the</strong> environment.<br />
1.4 Establish an <strong>in</strong>dependent m<strong>in</strong><strong>in</strong>g review body <strong>in</strong>volv<strong>in</strong>g civil society <strong>and</strong> affected communities,<br />
with <strong>the</strong> power to recommend cancellation of m<strong>in</strong><strong>in</strong>g licenses.<br />
1.5 Provide <strong>in</strong>dependent technical <strong>and</strong> legal advice <strong>and</strong> support to communities <strong>and</strong> <strong>in</strong>digenous<br />
peoples throughout <strong>the</strong> m<strong>in</strong><strong>in</strong>g application phase <strong>in</strong> both <strong>the</strong> FPIC <strong>and</strong> ESIA processes <strong>and</strong> where<br />
licenses are granted, throughout <strong>the</strong> life of <strong>the</strong> projects. The EU <strong>and</strong> o<strong>the</strong>r <strong>in</strong>ternational donors could<br />
assist <strong>in</strong> establish<strong>in</strong>g <strong>and</strong> fund<strong>in</strong>g such an <strong>in</strong>dependent body.<br />
1.6 Upgrade <strong>and</strong> restructure <strong>the</strong> Department of Environment <strong>and</strong> Natural Resources (DENR) to focus<br />
exclusively on <strong>the</strong> protection <strong>and</strong> development of <strong>the</strong> Philipp<strong>in</strong>es environment <strong>and</strong> renewable natural<br />
resources. A Department of M<strong>in</strong>es, Hydrocarbons <strong>and</strong> Geosciences could deal with licens<strong>in</strong>g of<br />
m<strong>in</strong><strong>in</strong>g <strong>and</strong> hydrocarbon development <strong>and</strong> ensure compliance with <strong>the</strong> highest <strong>in</strong>ternational<br />
technical st<strong>and</strong>ards. Consider establish<strong>in</strong>g an office of <strong>M<strong>in</strong><strong>in</strong>g</strong> Ombudsman.<br />
1.7 Streng<strong>the</strong>n legal frameworks for susta<strong>in</strong>able development by empower<strong>in</strong>g government<br />
departments, cover<strong>in</strong>g health agriculture <strong>and</strong> tourism, to enforce st<strong>and</strong>ards <strong>and</strong> take appropriate<br />
action where m<strong>in</strong><strong>in</strong>g projects threaten <strong>the</strong> national strategy for susta<strong>in</strong>able development.<br />
1.8 Establish an <strong>in</strong>ter-departmental coord<strong>in</strong>at<strong>in</strong>g committee to approve all extractive <strong>in</strong>dustry<br />
projects. To ensure transparency <strong>and</strong> accountability civil society participation at committee level<br />
would be required.<br />
1.9 Empower local communities <strong>and</strong> civil society to explore <strong>and</strong> pursue all avenues available with<strong>in</strong><br />
<strong>the</strong> law, at local national <strong>and</strong> <strong>in</strong>ternational levels, to register <strong>the</strong>ir concerns <strong>and</strong> aspirations <strong>and</strong> seek<br />
redress for wrongs caused by m<strong>in</strong><strong>in</strong>g operations.<br />
1.10 Sign up to <strong>the</strong> Extractive Industry Transparency Initiative (EITI) <strong>and</strong> publish details of all<br />
payments, taxes <strong>and</strong> royalties made by m<strong>in</strong><strong>in</strong>g companies. Implement EITI <strong>in</strong> accordance with <strong>the</strong> six<br />
EITI criteria, ensur<strong>in</strong>g participation by self-selected representatives of civil society at each stage of <strong>the</strong><br />
process.<br />
2 Issues of Environmental concern <strong>and</strong> susta<strong>in</strong>able development:<br />
2.1 Protect biodiversity <strong>and</strong> apply <strong>the</strong> Precautionary Pr<strong>in</strong>ciple to any m<strong>in</strong><strong>in</strong>g or o<strong>the</strong>r high impact<br />
development to ensure that <strong>the</strong>y only proceed where <strong>the</strong>re will not be significant negative impact on<br />
<strong>the</strong> lives of <strong>the</strong> pre-exist<strong>in</strong>g population, <strong>the</strong> environment or <strong>the</strong> ability of future generations to meet<br />
<strong>the</strong>ir needs.<br />
2.2 We recommend that DENR conduct regional Strategic Environmental Appraisals (SEAs) with<br />
<strong>in</strong>dependent technical support <strong>and</strong> effective participation of civil society. International donors,<br />
<strong>in</strong>clud<strong>in</strong>g <strong>the</strong> World Bank <strong>and</strong> <strong>the</strong> EU, should endorse <strong>and</strong> support this approach. For each m<strong>in</strong><strong>in</strong>g<br />
v
project proposed, jo<strong>in</strong>t Environmental <strong>and</strong> Social Impact Assessments (ESIAs), open to <strong>in</strong>dependent<br />
verification, should be developed with appropriate community participation.<br />
3 International Governance<br />
3.1 We recommend that governments establish b<strong>in</strong>d<strong>in</strong>g frameworks to regulate m<strong>in</strong><strong>in</strong>g, <strong>and</strong> ensure<br />
access to courts <strong>and</strong> o<strong>the</strong>r effective mechanisms of redress with<strong>in</strong> <strong>the</strong> home countries of transnational<br />
m<strong>in</strong><strong>in</strong>g companies <strong>and</strong> <strong>the</strong> f<strong>in</strong>ancial <strong>in</strong>stitutions that support <strong>the</strong>m.<br />
3.2 We call on <strong>the</strong> World Bank Group to uphold its m<strong>and</strong>ate to help reduce world poverty <strong>and</strong><br />
protect <strong>the</strong> environment by halt<strong>in</strong>g its promotion <strong>and</strong> support for m<strong>in</strong><strong>in</strong>g expansion <strong>in</strong> <strong>the</strong><br />
Philipp<strong>in</strong>es under current conditions. The Bank should assist with <strong>the</strong> country’s susta<strong>in</strong>able<br />
development by provid<strong>in</strong>g technical <strong>and</strong> f<strong>in</strong>ancial support for <strong>the</strong> protection <strong>and</strong> development of<br />
renewable resources, susta<strong>in</strong>able activities <strong>and</strong> poverty reduction programs <strong>and</strong> support Strategy<br />
Environmental Appraisals (SEAs) of <strong>the</strong> key isl<strong>and</strong>s <strong>and</strong> regions affected by m<strong>in</strong><strong>in</strong>g. It should be<br />
strictly guided by its Operational Pr<strong>in</strong>ciple 4.10 on Indigenous Peoples, OD 430 on Involuntary<br />
Resettlement <strong>and</strong> IFC Safeguard policies.<br />
4 Human Rights Issues<br />
4.1 Address Human Rights Violations. We urge <strong>the</strong> government to <strong>in</strong>crease its efforts to stamp out<br />
<strong>the</strong> spate of kill<strong>in</strong>gs of politically active citizens <strong>and</strong> prosecute <strong>the</strong> perpetrators. Independent<br />
<strong>in</strong>vestigations should be conducted with <strong>in</strong>vites extended to <strong>the</strong> UN Human Rights Special<br />
Rapporteurs.<br />
4.2 The implementation of laws to protect communities necessitates <strong>in</strong>dependent monitor<strong>in</strong>g of <strong>the</strong><br />
processes of determ<strong>in</strong><strong>in</strong>g FPIC <strong>and</strong> community consent. The participation <strong>in</strong> such monitor<strong>in</strong>g by <strong>the</strong><br />
Human Rights Commission, civil society, relevant religious <strong>and</strong> academic <strong>in</strong>stitutions <strong>and</strong> <strong>in</strong>digenous<br />
peoples organizations is required to ensure credibility. The EU <strong>and</strong> o<strong>the</strong>r <strong>in</strong>ternational partners could<br />
assist <strong>in</strong> this.<br />
4.3 Ratification of <strong>in</strong>ternational treaties. In keep<strong>in</strong>g with <strong>the</strong> spirit of <strong>the</strong> Philipp<strong>in</strong>e Constitutional<br />
provisions (1987) <strong>and</strong> IPRA (1997) we recommend that <strong>the</strong> Philipp<strong>in</strong>e Government ratify ILO<br />
Convention 169 on Indigenous <strong>and</strong> Tribal Peoples <strong>and</strong> support <strong>the</strong> Declaration on Indigenous<br />
Peoples <strong>in</strong> <strong>the</strong> next General Assembly vote.<br />
4.4 Prior claims. In l<strong>in</strong>e with <strong>the</strong> 1987 constitutional recognition of prior <strong>in</strong>digenous peoples’ rights to<br />
<strong>the</strong>ir ancestral l<strong>and</strong>s we urge <strong>the</strong> government to end <strong>the</strong> contradictory practice of allow<strong>in</strong>g <strong>the</strong><br />
proposition that m<strong>in</strong><strong>in</strong>g companies can assert prior rights claims over <strong>in</strong>digenous peoples’ (<strong>the</strong><br />
traditional owners/occupiers of <strong>the</strong> l<strong>and</strong>) ancestral l<strong>and</strong>s.<br />
4.5 European Union should place an emphasis on ensur<strong>in</strong>g that FPIC is effectively <strong>in</strong>corporated as a<br />
core element of <strong>the</strong> 2007-2013 EC Philipp<strong>in</strong>es Country Strategy Paper <strong>in</strong> its midterm review. It should<br />
exert its good offices to reduce tension <strong>and</strong> promote dialogue <strong>and</strong> a strict adherence to legal process<br />
<strong>and</strong> <strong>in</strong>formed decision-mak<strong>in</strong>g.<br />
5 F<strong>in</strong>anc<strong>in</strong>g<br />
5.1 We urge m<strong>in</strong><strong>in</strong>g companies <strong>and</strong> <strong>the</strong> <strong>in</strong>vestor community to exercise extreme caution <strong>in</strong> fund<strong>in</strong>g<br />
any m<strong>in</strong><strong>in</strong>g operations <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es until effective structures, laws <strong>and</strong> controls are <strong>in</strong> place to<br />
protect <strong>the</strong> environment <strong>and</strong> human rights. They should improve methods of exercis<strong>in</strong>g due diligence<br />
over <strong>in</strong>vestments <strong>in</strong> m<strong>in</strong><strong>in</strong>g projects based on reliable <strong>in</strong>dependent <strong>in</strong>formation.<br />
5.2 F<strong>in</strong>ancial probity. We encourage f<strong>in</strong>ancial <strong>in</strong>stitutions to adopt <strong>and</strong> adhere to <strong>the</strong> Equator<br />
Pr<strong>in</strong>ciples, <strong>and</strong> governments <strong>in</strong> <strong>the</strong> EU <strong>and</strong> o<strong>the</strong>r major <strong>in</strong>vestor countries to ensure that public<br />
vi
money is not <strong>in</strong>vested <strong>in</strong> ways which directly or <strong>in</strong>directly support irresponsible or damag<strong>in</strong>g m<strong>in</strong><strong>in</strong>g<br />
projects.<br />
5.3 Adequate bonds, commensurate with <strong>the</strong> potential impact of m<strong>in</strong><strong>in</strong>g, should be required to fully<br />
cover potential damage <strong>and</strong> end-of-life environmental <strong>and</strong> social costs. Provisions for m<strong>in</strong>e closure<br />
should adhere to <strong>the</strong> current highest st<strong>and</strong>ards as stated <strong>in</strong> <strong>the</strong> Extractive Industry Review.<br />
6 Company specific recommendations<br />
The FFT discussed a number of cases <strong>in</strong> depth with local impacted communities. Regard<strong>in</strong>g <strong>the</strong><br />
follow<strong>in</strong>g subset of <strong>the</strong>se cases it makes a number of specific recommendations which are <strong>in</strong>cluded <strong>in</strong><br />
<strong>the</strong> f<strong>in</strong>al section of <strong>the</strong> report: Geotechniques <strong>and</strong> M<strong>in</strong>es Inc (GAMI) <strong>in</strong> Midsalip, Zamboanga del Sur,<br />
M<strong>in</strong>danao; TVI Pacific <strong>in</strong> Mt Canatuan, Siocon, Zamboanga del Norte M<strong>in</strong>danao <strong>and</strong> Crew<br />
Development Group <strong>in</strong> Victoria, M<strong>in</strong>doro.<br />
vii
1. Introduction<br />
<strong>M<strong>in</strong><strong>in</strong>g</strong> has a very poor record <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es as a result of <strong>the</strong> massive social <strong>and</strong> environmental<br />
problems it has caused historically. Records kept by <strong>the</strong> United Nations Environmental Programme<br />
(UNEP) reveal <strong>the</strong> Philipp<strong>in</strong>es to be among <strong>the</strong> worst countries <strong>in</strong> <strong>the</strong> world with regard to tail<strong>in</strong>gs<br />
dam failures 2 whereby <strong>the</strong> surface impoundments conta<strong>in</strong><strong>in</strong>g <strong>the</strong> toxic waste from <strong>the</strong> m<strong>in</strong><strong>in</strong>g process<br />
failed with disastrous consequences for local people <strong>and</strong> <strong>the</strong> environment.<br />
In spite of this, s<strong>in</strong>ce 1992, <strong>the</strong> Government of <strong>the</strong> Philipp<strong>in</strong>es has been pursu<strong>in</strong>g an aggressive policy<br />
to revitalize <strong>the</strong> m<strong>in</strong><strong>in</strong>g <strong>in</strong>dustry, potentially open<strong>in</strong>g 30 per cent of <strong>the</strong> country’s l<strong>and</strong> area to<br />
m<strong>in</strong><strong>in</strong>g. 3 It has promised that m<strong>in</strong><strong>in</strong>g will be carried out to full <strong>in</strong>ternational st<strong>and</strong>ards <strong>and</strong> that<br />
environmental <strong>and</strong> social problems will be addressed effectively.<br />
The government has conducted m<strong>in</strong><strong>in</strong>g road shows 4 across <strong>the</strong> globe. Incentives for foreign firms<br />
make <strong>the</strong>ir operations effectively tax-free for <strong>the</strong> first five years. Billions of dollars <strong>in</strong> <strong>in</strong>vestments<br />
have been promised <strong>and</strong> a total of 2,000 m<strong>in</strong><strong>in</strong>g permit applications are pend<strong>in</strong>g. 5 However, critics<br />
say <strong>the</strong>re is scant evidence of economic benefit to <strong>the</strong> Philipp<strong>in</strong>es at <strong>the</strong> national level. At <strong>the</strong> local<br />
level evidence of <strong>the</strong> detrimental economic, environmental <strong>and</strong> social impact is widespread. The<br />
‘streaml<strong>in</strong><strong>in</strong>g’ of <strong>the</strong> m<strong>in</strong><strong>in</strong>g application process has become synonymous with a relax<strong>in</strong>g of<br />
environmental laws comb<strong>in</strong>ed with attempts to underm<strong>in</strong>e <strong>the</strong> legal protections afforded to<br />
<strong>in</strong>digenous peoples. It is feared that proposed constitutional change 6 may fur<strong>the</strong>r weaken protections.<br />
The Philipp<strong>in</strong>es, which consists of 7,107 isl<strong>and</strong>s, has fragile tropical ecosystems <strong>and</strong> is an outst<strong>and</strong><strong>in</strong>g<br />
biodiversity hotspot. It is one of <strong>the</strong> 17 countries <strong>in</strong> <strong>the</strong> world that are <strong>the</strong> richest <strong>in</strong> biodiversity. More<br />
than 52,177 species have been identified, half of <strong>the</strong>m are found nowhere else <strong>in</strong> <strong>the</strong> world. Accord<strong>in</strong>g<br />
to <strong>the</strong> biodiversity conservation priorities of <strong>the</strong> Department of Environment <strong>and</strong> Natural Resources<br />
(DENR), ‘<strong>the</strong> Philipp<strong>in</strong>es is one of <strong>the</strong> few countries <strong>in</strong> <strong>the</strong> world that is both a mega-diversity country<br />
<strong>and</strong> a biodiversity hotspot. 7 It recognizes that <strong>the</strong>re is a ‘small w<strong>in</strong>dow of opportunity <strong>in</strong> which it is<br />
still possible to save this global hotspot from complete devastation <strong>and</strong> <strong>the</strong> unique life forms found<br />
with<strong>in</strong> from ext<strong>in</strong>ction’. This extraord<strong>in</strong>ary biological diversity is at risk because <strong>the</strong> forest cover of<br />
<strong>the</strong> Philipp<strong>in</strong>es has dropped from 270,000km 2 when <strong>the</strong> Spanish left <strong>the</strong> country <strong>in</strong> 1898, to 150,000<br />
km 2 at Independence <strong>in</strong> 1946, to just 8,000 km 2 <strong>in</strong> 2006. 8 <strong>M<strong>in</strong><strong>in</strong>g</strong> is targeted for many upl<strong>and</strong> areas<br />
where it would fur<strong>the</strong>r reduce forest cover <strong>and</strong> leave a toxic heritage for succeed<strong>in</strong>g generations.<br />
Natural hazards are common <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es, with major portions of <strong>the</strong> country classified as<br />
natural disaster hotspots. 9 Much of its m<strong>in</strong>eral resources lie ei<strong>the</strong>r <strong>in</strong> areas of rich biodiversity, <strong>in</strong> geohazard<br />
zones or with<strong>in</strong> <strong>the</strong> ancestral doma<strong>in</strong> of <strong>in</strong>digenous peoples.<br />
Responsible m<strong>in</strong><strong>in</strong>g, <strong>in</strong> accordance with <strong>in</strong>ternational best practice, is simply not be<strong>in</strong>g observed <strong>in</strong><br />
<strong>the</strong> country. Despite <strong>the</strong> legal frameworks <strong>and</strong> guidel<strong>in</strong>es, <strong>in</strong> practice m<strong>in</strong><strong>in</strong>g applications are<br />
considered for watershed areas. The Environmental <strong>and</strong> Social Impact Assessments performed fail to<br />
protect <strong>the</strong> environment adequately, <strong>and</strong> submar<strong>in</strong>e tail<strong>in</strong>gs disposal (STD) – a practice vehemently<br />
opposed by many mar<strong>in</strong>e scientists <strong>and</strong> effectively illegal <strong>in</strong> some of those m<strong>in</strong><strong>in</strong>g companies’ home<br />
countries – is be<strong>in</strong>g proposed. 10 <strong>M<strong>in</strong><strong>in</strong>g</strong> is also pursued <strong>in</strong> conflict zones, a practice contrary to <strong>the</strong><br />
recommendations of <strong>the</strong> World Bank-commissioned Extractive Industry Review (EIR). 11<br />
The comb<strong>in</strong>ation of <strong>in</strong>adequate protection measures <strong>and</strong> natural hazards can be <strong>and</strong> has been<br />
catastrophic. The country’s record of m<strong>in</strong><strong>in</strong>g accidents is evidence of this. Most <strong>in</strong>famous is <strong>the</strong><br />
Marcopper disaster of 1996, on Mar<strong>in</strong>duque Isl<strong>and</strong>, when a m<strong>in</strong>e tail<strong>in</strong>gs spill of more than four<br />
million metric tons of waste caused widespread flood<strong>in</strong>g <strong>and</strong> damage to farm l<strong>and</strong>s <strong>and</strong> property.<br />
Villages were evacuated <strong>and</strong> an estimated 20,000 people along <strong>the</strong> Boac River were affected. The river<br />
was subsequently declared biologically dead. 12 More recently, follow<strong>in</strong>g spills of cyanide <strong>and</strong> tail<strong>in</strong>gs<br />
1
at Rapu-Rapu Isl<strong>and</strong> – <strong>the</strong> government’s current m<strong>in</strong><strong>in</strong>g showcase – <strong>in</strong> Albay, Sou<strong>the</strong>rn Luzon, an<br />
<strong>in</strong>dependent commission established by <strong>the</strong> Government found <strong>the</strong> company guilty of negligence <strong>and</strong><br />
recommended that <strong>the</strong> m<strong>in</strong><strong>in</strong>g operation be closed down 13 . The government failed to do this <strong>and</strong> <strong>the</strong><br />
m<strong>in</strong>e rema<strong>in</strong>s open.<br />
Most of <strong>the</strong> Philipp<strong>in</strong>es’ m<strong>in</strong>eral resources are located with<strong>in</strong> <strong>the</strong> ancestral doma<strong>in</strong> of its <strong>in</strong>digenous<br />
peoples. 14 By law, it is required that <strong>in</strong>digenous peoples give <strong>the</strong>ir free, prior, <strong>in</strong>formed consent<br />
(FPIC) before any projects proceed with<strong>in</strong> <strong>the</strong>ir territories. 15 The fact-f<strong>in</strong>d<strong>in</strong>g team learned of several<br />
<strong>in</strong>cidents where companies violated <strong>the</strong> legal guidel<strong>in</strong>es <strong>and</strong> ‘eng<strong>in</strong>eered’ <strong>the</strong> required consent.<br />
The fact-f<strong>in</strong>d<strong>in</strong>g team witnessed at first h<strong>and</strong> <strong>the</strong> havoc m<strong>in</strong><strong>in</strong>g is wreak<strong>in</strong>g on <strong>the</strong> livelihoods, health<br />
<strong>and</strong> human rights of <strong>in</strong>digenous peoples <strong>and</strong> o<strong>the</strong>r local communities. They also saw <strong>the</strong> potential for<br />
massive environmental damage to critical water catchment areas, thous<strong>and</strong>s of hectares of<br />
agricultural l<strong>and</strong> <strong>and</strong> <strong>the</strong> valuable mar<strong>in</strong>e environment. Given <strong>the</strong> rapidly grow<strong>in</strong>g population, which<br />
is projected to rise from 84 million to 150 million by 2036, <strong>the</strong> destruction of <strong>the</strong>se vital ecosystems<br />
will have serious implications for <strong>the</strong> food security <strong>and</strong> future susta<strong>in</strong>able development of <strong>the</strong><br />
country. Unless <strong>the</strong> water catchment areas are protected <strong>and</strong> forests are replanted on a massive scale<br />
with native species, it is estimated that at least 50 per cent of susta<strong>in</strong>able agriculture, which require<br />
irrigation, will be lost.<br />
There are many vocal advocates for <strong>the</strong> rights of <strong>in</strong>digenous peoples, local communities <strong>and</strong><br />
protection of <strong>the</strong> environment. Such advocates <strong>in</strong>clude an active <strong>and</strong> well-organized civil society with<br />
a history of challeng<strong>in</strong>g legislation <strong>and</strong> policy, <strong>the</strong> Catholic Bishops Conference of <strong>the</strong> Philipp<strong>in</strong>es<br />
(CBCP), 16 <strong>and</strong> <strong>in</strong>digenous peoples’ organizations. The development of m<strong>in</strong><strong>in</strong>g under current<br />
circumstances is underst<strong>and</strong>ably a major <strong>and</strong> controversial issue. There have been many legitimate<br />
expressions of concern <strong>and</strong> opposition. Even <strong>in</strong> Congress strong voices are call<strong>in</strong>g for amendments to<br />
<strong>the</strong> m<strong>in</strong><strong>in</strong>g law. Some people <strong>in</strong> government <strong>and</strong> <strong>in</strong> corporations, however, have labeled critics of<br />
<strong>the</strong>se policies as ‘anti-m<strong>in</strong><strong>in</strong>g’ <strong>and</strong> leftist. In <strong>the</strong> context of <strong>the</strong> ongo<strong>in</strong>g armed conflict <strong>in</strong> <strong>the</strong><br />
Philipp<strong>in</strong>es between government <strong>and</strong> left-w<strong>in</strong>g guerrilla forces, it is feared that such label<strong>in</strong>g is<br />
viewed by some <strong>in</strong> <strong>the</strong> military as an <strong>in</strong>citement to action. The fact-f<strong>in</strong>d<strong>in</strong>g team was particularly<br />
alarmed to learn that hundreds of people labeled <strong>in</strong> this way, <strong>in</strong>clud<strong>in</strong>g many <strong>in</strong>volved <strong>in</strong> peaceful<br />
<strong>and</strong> legitimate criticism of m<strong>in</strong><strong>in</strong>g projects <strong>and</strong> policies, have been killed <strong>and</strong> targeted for execution.<br />
One human rights organization has recorded more than 700 17 extra-judicial kill<strong>in</strong>gs s<strong>in</strong>ce 2001, with<br />
many human rights <strong>and</strong> environmental activists among <strong>the</strong> victims. Calls have come from <strong>the</strong><br />
Philipp<strong>in</strong>e Commissioner on Human Rights, Senators <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es, from Amnesty International<br />
<strong>and</strong> UN Special Rapporteurs for immediate action to stop <strong>the</strong> kill<strong>in</strong>gs.<br />
From <strong>the</strong> <strong>in</strong>formation acquired dur<strong>in</strong>g <strong>the</strong>ir visit, <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team fear that <strong>the</strong> government’s<br />
current m<strong>in</strong><strong>in</strong>g plans will result <strong>in</strong> heightened divisions <strong>and</strong> social conflict. They have already<br />
resulted <strong>in</strong> human rights abuses, environmental disasters <strong>and</strong> <strong>the</strong> destabilization of rural<br />
communities <strong>in</strong> many areas of <strong>the</strong> Philipp<strong>in</strong>es. The team also fears that such developments <strong>and</strong><br />
associated conflicts could damage <strong>the</strong> country’s ability to protect <strong>and</strong> develop susta<strong>in</strong>able agriculture,<br />
forestry, fisheries, tourism, <strong>and</strong> renewable energy – <strong>the</strong>reby potentially fur<strong>the</strong>r <strong>in</strong>creas<strong>in</strong>g rural<br />
poverty.<br />
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2. Trip Overview<br />
The fact f<strong>in</strong>d<strong>in</strong>g team (FFT) consisted of <strong>the</strong> Rt Honourable Clare Short, MP <strong>and</strong> former UK<br />
International Development Secretary; Clive Wicks, a Member of CEESP <strong>the</strong> IUCN Commission on<br />
Environmental Economic <strong>and</strong> Social Policy; Cathal Doyle, a representative of <strong>the</strong> Irish Centre for<br />
Human Rights; <strong>and</strong> Fr Frank Nally, Columban Faith <strong>and</strong> Justice Office. Their aim was to assess<br />
reports of corruption, human rights abuses <strong>and</strong> environmental degradation associated with planned<br />
<strong>and</strong> current m<strong>in</strong><strong>in</strong>g operations (July-August 2006). They met with representatives of <strong>the</strong> Catholic<br />
Bishops’ Conference of <strong>the</strong> Philipp<strong>in</strong>es, non-governmental organizations (NGOs), <strong>in</strong>digenous<br />
peoples’ organizations, academics, Senate <strong>and</strong> House members, <strong>the</strong> Chairman of Transparency<br />
International-Philipp<strong>in</strong>es, a prov<strong>in</strong>cial governor, <strong>the</strong> World Bank, <strong>the</strong> Under-Secretary of <strong>the</strong><br />
Department of <strong>the</strong> Environment <strong>and</strong> Natural Resources, <strong>the</strong> British Ambassador, <strong>the</strong> Chairman of <strong>the</strong><br />
Chamber of M<strong>in</strong>es, <strong>the</strong> M<strong>in</strong>erals Development Council, <strong>the</strong> Chief Justice, <strong>and</strong> <strong>the</strong> Ombudsman. (See<br />
Appendix 1)<br />
The team had <strong>in</strong>tended to visit three local communities affected by m<strong>in</strong><strong>in</strong>g on <strong>the</strong> isl<strong>and</strong> of M<strong>in</strong>danao<br />
<strong>in</strong> <strong>the</strong> south of <strong>the</strong> Philipp<strong>in</strong>es. To obta<strong>in</strong> a comprehensive overview, <strong>the</strong> communities selected<br />
represented <strong>the</strong> three phases of <strong>the</strong> m<strong>in</strong><strong>in</strong>g operations: <strong>the</strong> application phase, when m<strong>in</strong><strong>in</strong>g<br />
companies seek m<strong>in</strong><strong>in</strong>g permits; <strong>the</strong> exploration <strong>and</strong> m<strong>in</strong><strong>in</strong>g operation phase; <strong>and</strong> <strong>the</strong> post-m<strong>in</strong><strong>in</strong>g<br />
phase, when <strong>the</strong> m<strong>in</strong><strong>in</strong>g site is officially closed. However, <strong>the</strong> team was able to visit only two of <strong>the</strong>se<br />
sites. Ow<strong>in</strong>g to <strong>the</strong> presence of an ex-m<strong>in</strong>ister <strong>in</strong> <strong>the</strong> delegation, <strong>the</strong> team was strongly advised, on<br />
security grounds, aga<strong>in</strong>st visit<strong>in</strong>g <strong>the</strong> Mt Canatuan site, which is situated <strong>in</strong> a region where both rebel<br />
groups <strong>and</strong> paramilitaries have been <strong>and</strong> are active. The team did, however, meet residents from <strong>the</strong><br />
local community. They also had extensive discussions, both before <strong>and</strong> dur<strong>in</strong>g <strong>the</strong> visit, with<br />
representatives from organizations that have visited this site.<br />
The follow<strong>in</strong>g is a summary of <strong>the</strong> site visits. More detailed overviews are provided <strong>in</strong> Appendix 2:<br />
Case Studies. Photos of <strong>the</strong> some of places visited <strong>and</strong> people met are <strong>in</strong>cluded <strong>in</strong> Appendix 7.<br />
Pre-operation phase - Midsalip<br />
The team met with <strong>the</strong> Subaanen people of Midsalip, Zamboanga del Sur, M<strong>in</strong>danao. 18 The local<br />
community successfully opposed past attempts by Rio T<strong>in</strong>to (TEPI) to enter <strong>and</strong> m<strong>in</strong>e <strong>in</strong> <strong>the</strong> area 19 .<br />
They also opposed illegal logg<strong>in</strong>g with a five-month blockade to protect <strong>the</strong> watershed <strong>and</strong> forest <strong>in</strong><br />
1987/8. The latest <strong>in</strong> <strong>the</strong> series of attempts to acquire <strong>the</strong>ir l<strong>and</strong>s is an application for an iron ore<br />
m<strong>in</strong><strong>in</strong>g permit by Geotechniques <strong>and</strong> M<strong>in</strong>es Inc (GAMI), purportedly a Ch<strong>in</strong>ese firm, one of several<br />
m<strong>in</strong><strong>in</strong>g companies apply<strong>in</strong>g for rights over up to 70 per cent of <strong>the</strong> l<strong>and</strong> <strong>in</strong> <strong>the</strong> municipality.<br />
The Midsalip iron ore deposit is located beneath <strong>the</strong> sacred mounta<strong>in</strong> range, Mt P<strong>in</strong>ukis, of <strong>the</strong><br />
Subaanen people. This mounta<strong>in</strong> range is also <strong>the</strong> source of three rivers. It is surrounded by fertile<br />
irrigated rice fields. The Subaanen <strong>and</strong> o<strong>the</strong>rs <strong>in</strong> <strong>the</strong> local community made it clear to <strong>the</strong> FFT that<br />
<strong>the</strong>y view m<strong>in</strong><strong>in</strong>g as a threat to <strong>the</strong>ir livelihoods, food security, culture <strong>and</strong> very existence.<br />
The Subaanen people of Midsalip expla<strong>in</strong>ed how <strong>the</strong>ir right, enshr<strong>in</strong>ed <strong>in</strong> <strong>the</strong> IPRA law, to give Free,<br />
Prior, Informed Consent (FPIC) to any m<strong>in</strong><strong>in</strong>g proposals on <strong>the</strong>ir l<strong>and</strong>s, was be<strong>in</strong>g overridden<br />
through tactics <strong>in</strong>clud<strong>in</strong>g misrepresentation, lack of effective participation, a serious deficit of<br />
<strong>in</strong>formation on <strong>the</strong> potential negative impact of m<strong>in</strong><strong>in</strong>g <strong>and</strong> false promises. They also described<br />
similar attempts to obta<strong>in</strong> <strong>the</strong>ir FPIC <strong>in</strong> <strong>the</strong> past. Subsequent meet<strong>in</strong>gs were held with local people<br />
<strong>in</strong>clud<strong>in</strong>g environmentalists, church members, representatives of farmers <strong>and</strong> local irrigators. The<br />
day culm<strong>in</strong>ated <strong>in</strong> a meet<strong>in</strong>g with over 300 community members <strong>in</strong> <strong>the</strong> local church. All of <strong>the</strong>se<br />
meet<strong>in</strong>gs revealed a people liv<strong>in</strong>g <strong>in</strong> dread of 70 percent of <strong>the</strong>ir municipality be<strong>in</strong>g taken over by<br />
m<strong>in</strong><strong>in</strong>g. The team was utterly shocked that applications were be<strong>in</strong>g considered for open-cast m<strong>in</strong><strong>in</strong>g<br />
3
<strong>in</strong> a watershed area which would <strong>in</strong>evitably br<strong>in</strong>g destruction to rich irrigated agricultural l<strong>and</strong> <strong>and</strong><br />
seriously impact local livelihoods.<br />
The team recommends cancel<strong>in</strong>g all current m<strong>in</strong><strong>in</strong>g applications <strong>in</strong> Midsalip because <strong>the</strong>y have <strong>the</strong><br />
potential to cause major environmental damage to critical watersheds, eco-systems, agriculture <strong>and</strong><br />
fisheries <strong>and</strong> to result <strong>in</strong> social disruption. We also suggest that this policy be applied to all such areas<br />
<strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es.<br />
Both <strong>the</strong> Indigenous Peoples Rights Act <strong>and</strong> <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Act require that <strong>in</strong>digenous peoples’ free,<br />
prior, <strong>in</strong>formed, consent (FPIC) be obta<strong>in</strong>ed before m<strong>in</strong><strong>in</strong>g permits are issued. Local residents told <strong>the</strong><br />
team that <strong>the</strong> company, GAMI, had fabricated <strong>the</strong> <strong>in</strong>digenous peoples’ consent. They claimed that <strong>the</strong><br />
National Commission on Indigenous Peoples (NCIP) had failed to adhere to its m<strong>and</strong>ate to ensure <strong>the</strong><br />
execution of <strong>the</strong> FPIC process <strong>in</strong> l<strong>in</strong>e with IPRAs implement<strong>in</strong>g rules <strong>and</strong> regulations. They described<br />
that <strong>the</strong> methods used to do this <strong>in</strong>cluded <strong>the</strong> underm<strong>in</strong><strong>in</strong>g of traditional decision-mak<strong>in</strong>g structures,<br />
misrepresentation, false promises <strong>and</strong> mis<strong>in</strong>formation. The <strong>in</strong>digenous people said <strong>the</strong>y had not been<br />
provided with adequate <strong>in</strong>formation about <strong>the</strong> potential environmental <strong>and</strong> social impacts on which<br />
to base <strong>the</strong>ir free, prior <strong>and</strong> <strong>in</strong>formed consent.<br />
The team also recommends that <strong>the</strong> exist<strong>in</strong>g FPIC process be declared <strong>in</strong>valid <strong>and</strong> proposes that an<br />
<strong>in</strong>vestigation <strong>in</strong>to <strong>the</strong> role of NCIP’s <strong>in</strong> <strong>the</strong> FPIC process be undertaken by <strong>the</strong> office of <strong>the</strong><br />
Ombudsman. Any future FPIC process should be <strong>in</strong> strict adherence with <strong>the</strong> implement<strong>in</strong>g rules <strong>and</strong><br />
regulations of IRPA. To ensure that such an FPIC process is credible <strong>in</strong> <strong>the</strong> eyes of <strong>the</strong> Subaanen<br />
people, <strong>the</strong> participation of an <strong>in</strong>dependent body, capable of provid<strong>in</strong>g <strong>in</strong>formation on <strong>the</strong> potential<br />
environmental <strong>and</strong> social impact of m<strong>in</strong><strong>in</strong>g as well as legal advice should be ensured.<br />
The community of Midsalip also has a long-st<strong>and</strong><strong>in</strong>g compla<strong>in</strong>t that <strong>the</strong> local municipal officers were<br />
pay<strong>in</strong>g <strong>the</strong>mselves <strong>the</strong> salaries to which only officials <strong>in</strong> cities such as Manila were entitled, thus<br />
us<strong>in</strong>g all <strong>the</strong> fund<strong>in</strong>g provided for <strong>the</strong> municipality leav<strong>in</strong>g little for services. A compla<strong>in</strong>t to <strong>the</strong> local<br />
ombudsman had been turned down <strong>and</strong> <strong>the</strong> case is now before <strong>the</strong> Supreme Court. In <strong>the</strong> meantime,<br />
<strong>the</strong> malpractice is spread<strong>in</strong>g to o<strong>the</strong>r municipalities, particularly to those <strong>in</strong> which m<strong>in</strong><strong>in</strong>g is be<strong>in</strong>g<br />
proposed. The team recommends that measures be taken to address this disturb<strong>in</strong>g phenomenon.<br />
While <strong>in</strong> Midsalip <strong>the</strong> Pagadian Diocesan Social Action Centre presented <strong>the</strong> FFT with documents<br />
detail<strong>in</strong>g m<strong>in</strong><strong>in</strong>g applications <strong>and</strong> local community protest to same <strong>in</strong> municipalities throughout <strong>the</strong><br />
diocese. The team was alarmed by <strong>the</strong> scale of <strong>the</strong> m<strong>in</strong><strong>in</strong>g applications, both <strong>in</strong> terms of <strong>the</strong> l<strong>and</strong> area<br />
covered <strong>and</strong> <strong>the</strong> number of communities potentially impacted. In November 2006 <strong>the</strong> FFT were<br />
provided with a petition filed by <strong>the</strong> Midsalip community, aga<strong>in</strong>st <strong>the</strong> most recent application for an<br />
exploration permit <strong>in</strong> <strong>the</strong>ir municipality by TVI Resource Development Philipp<strong>in</strong>es (henceforth TVI),<br />
a company with exist<strong>in</strong>g m<strong>in</strong><strong>in</strong>g operations <strong>in</strong> Mt Canatuan. The petition is attached <strong>in</strong> Appendix 6.<br />
Operation Phase – TVI - Canatuan<br />
Mt Canatuan is located close to <strong>the</strong> town of Siocon <strong>in</strong> Zamboanga del Norte, M<strong>in</strong>danao. It is part of<br />
<strong>the</strong> ancestral doma<strong>in</strong> of <strong>the</strong> Subanon people <strong>in</strong> <strong>the</strong> area <strong>and</strong> was <strong>the</strong>ir sacred mounta<strong>in</strong>. The area<br />
around Mt Canatuan has been described as <strong>the</strong> ‘rice granary of Zamboanga del Norte’ <strong>and</strong> is a critical<br />
water catchment zone. It is also an area categorized by Conservation International as a biodiversity<br />
hotspot.<br />
The Subanon people <strong>and</strong> ancestral doma<strong>in</strong> holders have been protest<strong>in</strong>g aga<strong>in</strong>st m<strong>in</strong><strong>in</strong>g on Mt<br />
Canatuan s<strong>in</strong>ce 1989. Despite this, a m<strong>in</strong><strong>in</strong>g permit (a M<strong>in</strong>eral Production Shar<strong>in</strong>g Agreement –<br />
MPSA) was awarded <strong>in</strong> <strong>the</strong> name of RV Bosque <strong>and</strong> Benguet Corporation. It was acquired by what<br />
were reported to <strong>the</strong> team to be dubious means 20 <strong>and</strong> aga<strong>in</strong>st <strong>the</strong> wishes of <strong>the</strong> <strong>in</strong>digenous people.<br />
This process allegedly <strong>in</strong>volved <strong>the</strong> dup<strong>in</strong>g of small-scale m<strong>in</strong>ers. Benguet Corporation subsequently<br />
4
sold this permit to TVI, a Canadian m<strong>in</strong><strong>in</strong>g company, <strong>in</strong> 1994. Because this permit predates <strong>the</strong> IPRA,<br />
<strong>the</strong> company claims that <strong>the</strong>re is no legal requirement to obta<strong>in</strong> <strong>the</strong> FPIC of <strong>the</strong> <strong>in</strong>digenous peoples.<br />
Although unable to visit <strong>the</strong> actual m<strong>in</strong>e site <strong>the</strong> FFT met with members of <strong>the</strong> Subanon community,<br />
<strong>in</strong>clud<strong>in</strong>g traditional leader <strong>and</strong> Certificate of Ancestral Doma<strong>in</strong> Title holder, Timuay Jose Boy Anoy.<br />
It also met with members of <strong>the</strong> small scale m<strong>in</strong><strong>in</strong>g community that predates TVI on <strong>the</strong> Canatuan<br />
site. Accord<strong>in</strong>g to this community, <strong>the</strong>y were <strong>the</strong> orig<strong>in</strong>al proponents of <strong>the</strong> m<strong>in</strong><strong>in</strong>g application which<br />
was subsequently registered <strong>in</strong> <strong>the</strong> name of only one of <strong>the</strong>ir number, Ramon Bosque. This group has<br />
subsequently suffered numerous <strong>and</strong> serious violations of <strong>the</strong>ir rights <strong>in</strong>clud<strong>in</strong>g forced displacement,<br />
restriction of movement, as well as seizure <strong>and</strong> destruction of property. A high level <strong>in</strong>vestigation by<br />
<strong>the</strong> DENR <strong>in</strong>to <strong>the</strong> legality of <strong>the</strong> orig<strong>in</strong>al claim filed by Ramon Bosque would appear to be a<br />
m<strong>in</strong>imum requirement. The FFT notes that <strong>the</strong>re are clearly deeply disturb<strong>in</strong>g conflicts that have<br />
arisen <strong>in</strong> <strong>the</strong> Canatuan Subanon community, <strong>and</strong> surround<strong>in</strong>g district, as a result of <strong>the</strong> actions of TVI<br />
Pacific m<strong>in</strong><strong>in</strong>g company. It was of concern that - despite <strong>the</strong> high level of conflict, loss of life <strong>and</strong><br />
series of reported ambushes, shoot<strong>in</strong>g <strong>in</strong>cidents <strong>and</strong> o<strong>the</strong>r reported acts of violence - many issues<br />
rema<strong>in</strong> unresolved with community protests <strong>and</strong> even legal petitions rema<strong>in</strong><strong>in</strong>g unanswered.<br />
Families liv<strong>in</strong>g <strong>in</strong> <strong>the</strong> Subanon ancestral doma<strong>in</strong> have been evicted, <strong>and</strong> <strong>the</strong>ir sacred site has been<br />
desecrated by m<strong>in</strong><strong>in</strong>g operations. The company employs a large paramilitary security force called<br />
Special CAFGU Armed Auxiliary (SCAA), armed, tra<strong>in</strong>ed <strong>and</strong> supported by <strong>the</strong> Philipp<strong>in</strong>es military<br />
but paid for <strong>and</strong> under <strong>the</strong> control of <strong>the</strong> company. The SCAA st<strong>and</strong> accused of numerous human<br />
rights abuses – rang<strong>in</strong>g from violence <strong>and</strong> <strong>in</strong>timidation to <strong>the</strong> plac<strong>in</strong>g of hidden barbed nails <strong>in</strong> trails,<br />
food blockades <strong>and</strong> shoot<strong>in</strong>g at people dur<strong>in</strong>g pickets. 21 Serious accusations were substantiated by <strong>the</strong><br />
Philipp<strong>in</strong>e Commission on Human Rights <strong>in</strong> <strong>the</strong>ir report on violent dispersals of a picket <strong>in</strong> 1999.<br />
Local farmers, fishermen <strong>and</strong> fish-farmers have reported damage to <strong>the</strong>ir livelihoods <strong>and</strong> health.<br />
There have been clear reductions <strong>in</strong> crop yields <strong>and</strong> fish harvests that people claim is caused by<br />
pollution from <strong>the</strong> m<strong>in</strong>e, <strong>and</strong> people exposed to contact with river water developed sk<strong>in</strong> <strong>in</strong>fections.<br />
With 70 per cent depend<strong>in</strong>g on agriculture <strong>and</strong> fish<strong>in</strong>g for <strong>the</strong>ir livelihood, <strong>the</strong> threat to <strong>the</strong>ir<br />
environment is a very serious cause for concern. Timuay ‘Boy’ Anoy, whose ancestral doma<strong>in</strong> rights<br />
were recognized by two Philipp<strong>in</strong>es Presidents, views <strong>the</strong> unwelcome entrance of TVI <strong>in</strong>to <strong>the</strong><br />
Subanon ancestral doma<strong>in</strong> as an act of plunder. He <strong>and</strong> o<strong>the</strong>r Subanon told <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team that<br />
<strong>the</strong> desecration of <strong>the</strong>ir sacred mounta<strong>in</strong>, <strong>the</strong> human rights abuses suffered, <strong>the</strong> sever<strong>in</strong>g of <strong>the</strong>ir<br />
symbiotic l<strong>in</strong>ks with <strong>the</strong>ir l<strong>and</strong>s <strong>and</strong> <strong>the</strong> presence of outsiders contest<strong>in</strong>g <strong>the</strong>ir ancestral l<strong>and</strong> rights<br />
have destabilized <strong>and</strong> divided <strong>the</strong> Subanon community.<br />
We suggest <strong>the</strong> <strong>in</strong>tervention of a Jo<strong>in</strong>t Commission for Human Rights / National Bureau of<br />
Investigation / Department of Justice team of prosecutors to <strong>in</strong>vestigate <strong>and</strong> prosecute any human<br />
rights violations <strong>in</strong> Canatuan. A credible <strong>in</strong>dependent <strong>in</strong>vestigation <strong>in</strong>to <strong>the</strong> role of <strong>the</strong> NCIP, who are<br />
accused of be<strong>in</strong>g <strong>in</strong>volved <strong>in</strong> caus<strong>in</strong>g <strong>the</strong> division with<strong>in</strong> <strong>the</strong> community, <strong>and</strong> dislodg<strong>in</strong>g <strong>the</strong> genu<strong>in</strong>e<br />
Timuay, Jose Boy Anoy, is suggested.<br />
We recommend that, <strong>in</strong> l<strong>in</strong>e with <strong>the</strong> provisions of IPRA, <strong>the</strong> NCIP should use <strong>and</strong> recognize<br />
traditional leadership structures <strong>and</strong> not those created under government registered/<strong>in</strong>corporate<br />
organizations. It is our view that an <strong>in</strong>dependent <strong>in</strong>vestigation should be conducted <strong>in</strong>to TVI’s<br />
adherence to <strong>the</strong> m<strong>and</strong>atory FPIC process, as stipulated <strong>in</strong> IPRA’s implement<strong>in</strong>g rules <strong>and</strong><br />
regulations, at Mt Canatuan. If it is found that <strong>the</strong> requirements have not been adhered to <strong>the</strong> DENR<br />
should review <strong>the</strong> validity of <strong>the</strong> TVI MPSA.<br />
For conflict<strong>in</strong>g presentations of <strong>the</strong> local reality see <strong>the</strong> local dioceses committee on m<strong>in</strong><strong>in</strong>g issues<br />
(DCMI), <strong>M<strong>in</strong><strong>in</strong>g</strong> Watch Canada <strong>and</strong> TVI’s websites at http://www.dcmiphil.org,<br />
www.m<strong>in</strong><strong>in</strong>gwatch.ca <strong>and</strong> www.tvipacific.com, respectively. (Also see Appendix 7 & 8)<br />
5
Post-operation phase – Philex - Libay<br />
The barangay 22 of Libay is located on <strong>the</strong> coast of Sibutad, Zamboanga del Norte, M<strong>in</strong>danao. It is a<br />
picturesque area with lush vegetation <strong>and</strong> roll<strong>in</strong>g hills covered <strong>in</strong> forest. At <strong>the</strong> foot of <strong>the</strong> hills are<br />
homes, rice fields <strong>and</strong> Murcellagos Bay, conta<strong>in</strong><strong>in</strong>g coral <strong>and</strong> mangroves <strong>and</strong> important fish<strong>in</strong>g<br />
grounds. Philex Gold, a Canadian registered subsidiary of <strong>the</strong> Philipp<strong>in</strong>es parent company Philex,<br />
started large-scale m<strong>in</strong><strong>in</strong>g <strong>the</strong>re <strong>in</strong> 1997, stripp<strong>in</strong>g <strong>the</strong> surface of <strong>the</strong> mounta<strong>in</strong>side <strong>and</strong> expos<strong>in</strong>g it to<br />
erosion. Follow<strong>in</strong>g protests <strong>and</strong> fall<strong>in</strong>g m<strong>in</strong>eral prices, Philex Gold suspended its operations <strong>in</strong> 2002.<br />
Local residents told <strong>the</strong> team how between 1997 <strong>and</strong> 2002 tail<strong>in</strong>gs dam overflows <strong>and</strong> mudslides<br />
destroyed rice fields <strong>and</strong> filled <strong>the</strong> bay with mud. Mangroves <strong>and</strong> coral died. They expla<strong>in</strong>ed that<br />
ow<strong>in</strong>g to toxicity <strong>and</strong> massive siltation of Murcellagos Bay, fish<strong>in</strong>g was no longer viable. They<br />
claimed that rice production had fallen by up to 50 percent. The effects were said to be felt by<br />
surround<strong>in</strong>g communities up to 30 kilometers away, affect<strong>in</strong>g up to 15,000 people. <strong>M<strong>in</strong><strong>in</strong>g</strong> was also<br />
accompanied by violence: a small-scale m<strong>in</strong>er was shot dead by a company security guard for<br />
trespass<strong>in</strong>g <strong>in</strong> 1998. 23<br />
Philex Gold rema<strong>in</strong>s <strong>in</strong> control of <strong>the</strong> Libay site. Local residents report that small-scale m<strong>in</strong>ers who<br />
have come from Davao (outside <strong>the</strong> local area) use Philex’s equipment to perform open-pit m<strong>in</strong><strong>in</strong>g<br />
<strong>and</strong> pay a commission to Philex. They use cyanide to process <strong>the</strong> ore. Effects on health, crop<br />
production, water pollution <strong>and</strong> animal sterility are, it was claimed, still be<strong>in</strong>g felt. The fact f<strong>in</strong>d<strong>in</strong>g<br />
team witnessed <strong>the</strong> damage caused by recent l<strong>and</strong>slides, a phenomena common <strong>in</strong> deforested areas,<br />
which destroyed 14 houses.<br />
With 90 per cent of <strong>the</strong> ore rema<strong>in</strong><strong>in</strong>g, locals fear <strong>the</strong> resumption of large-scale m<strong>in</strong><strong>in</strong>g. O<strong>the</strong>r smallscale<br />
m<strong>in</strong>ers, displaced by large-scale m<strong>in</strong><strong>in</strong>g operations from Mt Canatuan <strong>in</strong> Siocon, also operate <strong>in</strong><br />
<strong>the</strong> area <strong>in</strong>dependently of Philex. They follow gold-rich ve<strong>in</strong>s <strong>and</strong> use mercury to extract gold from<br />
ore. They receive no technical or f<strong>in</strong>ancial assistance from <strong>the</strong> government. The m<strong>in</strong><strong>in</strong>g rights<br />
afforded to <strong>the</strong> Philex small-scale m<strong>in</strong>ers are not extended to this community. 24<br />
O<strong>the</strong>r m<strong>in</strong><strong>in</strong>g sites<br />
In addition to <strong>the</strong>se three M<strong>in</strong>danao communities, representatives from civil society, church<br />
organizations <strong>and</strong> local <strong>and</strong> prov<strong>in</strong>cial governments from o<strong>the</strong>r areas came to Manila to meet with <strong>the</strong><br />
fact-f<strong>in</strong>d<strong>in</strong>g team. They <strong>in</strong>cluded people affected by four m<strong>in</strong><strong>in</strong>g operations: Victoria, M<strong>in</strong>doro (Crew<br />
Gold Canada/Norway/UK); Tampakan, M<strong>in</strong>danao (Saggitarius M<strong>in</strong>es Inc, Australia); Rapu-Rapu,<br />
Albay, Sou<strong>the</strong>rn Luzon (Lafayette, Australia); Sibuyan Isl<strong>and</strong>, Prov<strong>in</strong>ce of Romblon (Pelican<br />
Resources, Australia).<br />
Victoria, M<strong>in</strong>doro, Crew Gold<br />
The FFT had meet<strong>in</strong>gs with Atty Arnan C. Panaligan, <strong>the</strong> Prov<strong>in</strong>cial Governor of M<strong>in</strong>doro Oriental<br />
<strong>and</strong> a range of local officials, civil society organizations <strong>and</strong> <strong>in</strong>digenous representatives. Through<br />
<strong>the</strong>se meet<strong>in</strong>gs <strong>and</strong> <strong>the</strong> written submissions of resolutions <strong>and</strong> o<strong>the</strong>r documents, it is clear that many<br />
local organizations <strong>in</strong> M<strong>in</strong>doro, <strong>in</strong>clud<strong>in</strong>g affected <strong>in</strong>digenous <strong>and</strong> down stream communities, oppose<br />
any development of <strong>the</strong> Victoria, M<strong>in</strong>doro Nickel project. The company seems not to have secured <strong>the</strong><br />
necessary FPIC from <strong>the</strong> affected <strong>in</strong>digenous populations nor <strong>the</strong> community consent or plann<strong>in</strong>g<br />
permission from <strong>the</strong> local authorities. The Governor of M<strong>in</strong>doro Oriental clearly expressed his<br />
frustration, that despite all <strong>the</strong>ir efforts to register <strong>the</strong>ir legitimate opposition, <strong>the</strong> project rema<strong>in</strong>s on<br />
<strong>the</strong> government’s priority projects list <strong>and</strong> <strong>the</strong> company cont<strong>in</strong>ues to <strong>in</strong>clude <strong>the</strong> project <strong>in</strong> its<br />
corporate plans. We appeal to <strong>the</strong> government <strong>and</strong> <strong>the</strong> corporation to resolve <strong>the</strong> current anomalous<br />
<strong>and</strong> destabiliz<strong>in</strong>g position by announc<strong>in</strong>g <strong>the</strong> removal of <strong>the</strong> Victoria, M<strong>in</strong>doro Nickel Project from<br />
<strong>the</strong> 23 National Priority projects <strong>and</strong> <strong>the</strong> cancellation of <strong>the</strong> project <strong>in</strong> l<strong>in</strong>e with <strong>the</strong> expressed wishes<br />
of <strong>the</strong> affected population <strong>and</strong> LGUs.<br />
6
Tampakan, Saggitarius M<strong>in</strong>es Inc<br />
A major copper <strong>and</strong> gold project is <strong>in</strong> preparation at Tampakan. This project was <strong>in</strong>itiated by<br />
Australian m<strong>in</strong>er WMC. However it sold on its rights to <strong>the</strong> current developers. The FFT met with <strong>the</strong><br />
Bishop of <strong>the</strong> Diocese of Marbel, South Cotabato, Bishop D<strong>in</strong>ualdo Gutierrez. He expressed his<br />
outrage at <strong>the</strong> proposed copper <strong>and</strong> gold m<strong>in</strong><strong>in</strong>g operation <strong>in</strong> Tampakan, M<strong>in</strong>danao by Saggitarius<br />
M<strong>in</strong>es Inc, Australia, which he claims will threaten <strong>the</strong> food security of M<strong>in</strong>danao. The Bishop<br />
expla<strong>in</strong>ed that <strong>the</strong> proposed m<strong>in</strong><strong>in</strong>g site is <strong>in</strong> a watershed area that supplies water to 5 rivers <strong>in</strong> 4<br />
prov<strong>in</strong>ces. South Cotabato is known as <strong>the</strong> food basket of M<strong>in</strong>danao <strong>and</strong> Bishop Gutierrez believes<br />
that it is <strong>in</strong>evitable that <strong>the</strong> planned m<strong>in</strong><strong>in</strong>g operation would lead to <strong>the</strong> pollution of <strong>the</strong> nearby<br />
downstream Lake Buluan <strong>and</strong> upstream Liguasan Marsh, damag<strong>in</strong>g farml<strong>and</strong>s <strong>and</strong> fisheries <strong>and</strong><br />
seriously impact<strong>in</strong>g <strong>the</strong> food source for <strong>the</strong> Muslim <strong>and</strong> <strong>in</strong>digenous populations while destroy<strong>in</strong>g<br />
<strong>the</strong>ir livelihoods. This eventuality, he concluded, would most certa<strong>in</strong>ly lead to major social unrest.<br />
The bishop’s sentiments reflect those of <strong>the</strong> local Sangguniang Bayan (municipal council) of Buluan <strong>in</strong><br />
Magu<strong>in</strong>danao which recently passed a resolution oppos<strong>in</strong>g <strong>the</strong> operations of Sagittarius M<strong>in</strong>es, Inc. <strong>in</strong><br />
<strong>the</strong> mounta<strong>in</strong>s of Tampakan <strong>in</strong> South Cotabato, express<strong>in</strong>g ‘fears that it would destroy <strong>the</strong> livelihood<br />
of thous<strong>and</strong>s of residents dependent on Lake Buluan’ 25 .<br />
Gold m<strong>in</strong><strong>in</strong>g <strong>in</strong> Rapu-Rapu is already under way. It was halted <strong>in</strong> 2005 <strong>in</strong> response to tail<strong>in</strong>gs spills,<br />
but <strong>the</strong> m<strong>in</strong>e has s<strong>in</strong>ce reopened. In Sibuyan Isl<strong>and</strong>, a company has drilled for nickel us<strong>in</strong>g small-scale<br />
m<strong>in</strong><strong>in</strong>g permits, <strong>and</strong> is now seek<strong>in</strong>g to exp<strong>and</strong> its operations.<br />
Rapu-Rapu, Sibuyan Isl<strong>and</strong> <strong>and</strong> Victoria are located <strong>in</strong> geo-hazard areas. In Rapu-Rapu, negligence<br />
<strong>and</strong> <strong>the</strong> failure of environmental protection measures were l<strong>in</strong>ked to fish kills, documented by an<br />
<strong>in</strong>dependent, government sanctioned fact-f<strong>in</strong>d<strong>in</strong>g commission. 26 The commission felt that <strong>the</strong>re was<br />
‘high probability of connection or that <strong>the</strong> <strong>in</strong>cidents [which caused damage to mar<strong>in</strong>e life]<br />
subsequently led to or caused certa<strong>in</strong> negative consequences to health, environmental <strong>and</strong> economic<br />
problems to <strong>the</strong> people of Rapu-Rapu <strong>and</strong> nearby coastal municipalities’ 27 . It also noted <strong>the</strong> failure to<br />
adhere to <strong>in</strong>ternational environmental best practices regard<strong>in</strong>g test<strong>in</strong>g <strong>and</strong> monitor<strong>in</strong>g.<br />
Tampakan, Victoria <strong>and</strong> Sibuyan Isl<strong>and</strong> are areas of high biodiversity where m<strong>in</strong><strong>in</strong>g would threaten<br />
endemic species. They are also watershed areas. In Sibuyan <strong>the</strong> proposed future m<strong>in</strong><strong>in</strong>g areas<br />
encroach on a national park. In Victoria submar<strong>in</strong>e tail<strong>in</strong>gs disposal has been proposed, <strong>and</strong> m<strong>in</strong><strong>in</strong>g<br />
would take place on a site <strong>the</strong> <strong>in</strong>digenous people hold sacred.<br />
People from all four sites reported that large-scale m<strong>in</strong><strong>in</strong>g had created divisions among local <strong>and</strong><br />
<strong>in</strong>digenous communities. They also reported lack of participation <strong>and</strong> transparency <strong>in</strong> <strong>the</strong><br />
preparation, validation <strong>and</strong> availability of Environmental Impact Assessments (EIAs). Those from<br />
Rapu-Rapu <strong>and</strong> Sibuyan Isl<strong>and</strong> told <strong>the</strong> team that <strong>the</strong> companies had failed to recognize that <strong>the</strong>ir<br />
operations could have an impact on <strong>in</strong>digenous peoples <strong>and</strong> had failed to consult <strong>the</strong>m. In Sibuyan<br />
Isl<strong>and</strong> <strong>the</strong> company simply ignored <strong>the</strong> objections of local communities <strong>and</strong> <strong>the</strong> local government. It<br />
was <strong>the</strong> same <strong>in</strong> Victoria where, <strong>in</strong> addition to ignor<strong>in</strong>g <strong>the</strong> objections of local <strong>and</strong> prov<strong>in</strong>cial<br />
government, residents said, <strong>the</strong> company had misrepresented <strong>the</strong>ir views <strong>and</strong> made false claims that<br />
<strong>the</strong>y had consented to m<strong>in</strong><strong>in</strong>g. People from all four sites felt that <strong>the</strong> media had privileged <strong>the</strong><br />
company position over those of local communities.<br />
The team was alarmed by <strong>the</strong> repeated <strong>and</strong> extensive compla<strong>in</strong>ts concern<strong>in</strong>g processes <strong>and</strong> abuse of<br />
requirements <strong>and</strong> processes. The major <strong>the</strong>mes that emerged are addressed <strong>in</strong> <strong>the</strong> follow<strong>in</strong>g section<br />
<strong>and</strong> reflect <strong>the</strong> team’s discussions with a wide range of concerned groups <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es.<br />
7
3. Areas of Concern<br />
3.1. Human Rights<br />
The extractive <strong>in</strong>dustry worldwide has been described as hav<strong>in</strong>g an ‘enormous <strong>and</strong> <strong>in</strong>trusive social<br />
<strong>and</strong> environmental footpr<strong>in</strong>t’. 28 The UN Secretary General’s Special Representative on <strong>the</strong> Issue of<br />
Human Rights <strong>and</strong> Transnational Corporations <strong>and</strong> O<strong>the</strong>r Bus<strong>in</strong>ess Enterprises, Professor John<br />
Ruggie, has acknowledged its deplorable record <strong>in</strong> relation to human rights, result<strong>in</strong>g from<br />
militarization <strong>and</strong> corruption, <strong>and</strong> lead<strong>in</strong>g to a broad array of abuses ‘up to <strong>and</strong> <strong>in</strong>clud<strong>in</strong>g complicity<br />
<strong>in</strong> crimes aga<strong>in</strong>st humanity’. 29 He described <strong>the</strong> extractive <strong>in</strong>dustry as ‘utterly dom<strong>in</strong>at[<strong>in</strong>g]’ <strong>in</strong> terms<br />
of reported abuses, account<strong>in</strong>g for two-thirds of <strong>the</strong> total reported. 30 This trend is evident <strong>in</strong> <strong>the</strong><br />
Philipp<strong>in</strong>es with abuses affect<strong>in</strong>g local communities, especially <strong>in</strong>digenous people.<br />
3.1.1. Security firms <strong>and</strong> militarization<br />
The global trend of <strong>in</strong>creas<strong>in</strong>g human rights violations associated with m<strong>in</strong><strong>in</strong>g security <strong>and</strong><br />
militarization is evident <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es. Follow<strong>in</strong>g his country visit <strong>in</strong> 2003, <strong>the</strong> Special Rapporteur<br />
on <strong>the</strong> Human Rights <strong>and</strong> Fundamental Freedoms of Indigenous Peoples, Professor Rodolfo<br />
Stavenhagen, stated that <strong>the</strong> ‘militarization of <strong>in</strong>digenous areas is a grave human rights problem’.<br />
Members of <strong>the</strong> Subanon <strong>in</strong>digenous people told <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team that 169 armed security<br />
guards, hired by <strong>the</strong> TVI m<strong>in</strong><strong>in</strong>g company, 31 were mann<strong>in</strong>g checkpo<strong>in</strong>ts <strong>and</strong> block<strong>in</strong>g access to <strong>the</strong>ir<br />
ancestral doma<strong>in</strong>.<br />
The dangers of do<strong>in</strong>g bus<strong>in</strong>ess <strong>in</strong> <strong>the</strong> conflict zones of <strong>the</strong> rural Philipp<strong>in</strong>es was highlighted dur<strong>in</strong>g a<br />
Canadian parliamentary hear<strong>in</strong>g <strong>in</strong> 2005 <strong>in</strong>to <strong>the</strong> activities of TVI <strong>and</strong> o<strong>the</strong>r Canadian m<strong>in</strong><strong>in</strong>g<br />
companies overseas 32 . In hear<strong>in</strong>g evidence <strong>the</strong> committee referred to statements made by Allan Laird,<br />
a former project manager from <strong>the</strong> K<strong>in</strong>gK<strong>in</strong>g M<strong>in</strong>e Inc (a m<strong>in</strong>e located <strong>in</strong> Sou<strong>the</strong>rn M<strong>in</strong>danao <strong>and</strong><br />
controlled by Echo Bay M<strong>in</strong>es, with TVI as junior partner 33 ). Laird had claimed that it was <strong>the</strong> practice<br />
for <strong>the</strong> m<strong>in</strong>e to make illegal payments of protection money to a range of terrorist <strong>and</strong> military groups<br />
‘By <strong>the</strong> time <strong>the</strong> project was completed, approximately $2 million was provided to terror/<strong>in</strong>surgent<br />
groups,’ 34 . He said he was so concerned about this that he ensured that his monthly management<br />
reports to <strong>the</strong> company board ‘<strong>in</strong>cluded detailed summaries of payments made to <strong>the</strong> military,<br />
political figures <strong>and</strong> terror/<strong>in</strong>surgent groups’. The board members were quoted as characteriz<strong>in</strong>g<br />
<strong>the</strong>se illegal payments as <strong>the</strong> ‘cost of do<strong>in</strong>g bus<strong>in</strong>ess’. 35 In response to <strong>the</strong> committee’s questions<br />
regard<strong>in</strong>g Lairds claims, Mr. Clifford James, President <strong>and</strong> CEO of TVI Pacific Inc, replied that he<br />
was on <strong>the</strong> board <strong>and</strong> had never received reports ‘that <strong>the</strong>re was anyth<strong>in</strong>g like that go<strong>in</strong>g on’ 36 .<br />
Presentations to <strong>the</strong> FFT by church <strong>and</strong> o<strong>the</strong>r groups report that <strong>the</strong> use of <strong>in</strong>timidation <strong>and</strong> force by<br />
m<strong>in</strong><strong>in</strong>g security forces, military <strong>and</strong> police aga<strong>in</strong>st <strong>in</strong>digenous peoples <strong>and</strong> small-scale m<strong>in</strong>ers at<br />
m<strong>in</strong><strong>in</strong>g sites is widespread. Dur<strong>in</strong>g <strong>the</strong>ir visit <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team met a small-scale m<strong>in</strong>er who was<br />
one of four people shot <strong>and</strong> <strong>in</strong>jured <strong>in</strong> 2004 when a company guard opened fire on an unarmed picket<br />
block<strong>in</strong>g <strong>the</strong> road to stop equipment dest<strong>in</strong>ed for <strong>the</strong> m<strong>in</strong><strong>in</strong>g site at Canatuan. Ano<strong>the</strong>r one of <strong>the</strong><br />
<strong>in</strong>jured <strong>in</strong> <strong>the</strong> same <strong>in</strong>cident was Timuay Macario Salacao, a 70-year old traditional leader of <strong>the</strong><br />
Subanons <strong>in</strong> Siocon who was one of <strong>the</strong> leaders of <strong>the</strong> picket. TVI claimed that <strong>the</strong> pickets were act<strong>in</strong>g<br />
<strong>in</strong> a violent <strong>and</strong> menac<strong>in</strong>g manner <strong>and</strong> that <strong>the</strong> company’s armed guards acted <strong>in</strong> self-defense. In <strong>the</strong><br />
history of TVI’s presence <strong>in</strong> Canatuan, four shoot<strong>in</strong>gs have been documented by NGOs. Compla<strong>in</strong>ts<br />
over <strong>the</strong>se <strong>in</strong>cidents have also been filed with <strong>the</strong> police.<br />
Extrajudicial kill<strong>in</strong>gs<br />
Accord<strong>in</strong>g to Karapatan 37 <strong>and</strong> o<strong>the</strong>r human rights organizations, s<strong>in</strong>ce 2001 more than 700 citizens<br />
of <strong>the</strong> Philipp<strong>in</strong>es, many of <strong>the</strong>m associated with legal political opposition groups <strong>and</strong> protest<br />
causes have been killed. It is claimed that at least 11 of <strong>the</strong>se extrajudicial kill<strong>in</strong>gs were related to<br />
protests aga<strong>in</strong>st m<strong>in</strong><strong>in</strong>g. 38 The Philipp<strong>in</strong>es Commissioner on Human Rights has warned that <strong>the</strong><br />
8
country is <strong>in</strong> danger of be<strong>in</strong>g blacklisted by <strong>the</strong> UN because <strong>the</strong> ‘authorities have failed to stop <strong>the</strong><br />
spate of kill<strong>in</strong>gs <strong>and</strong> abductions of activists’. 39 At least half of <strong>the</strong> cases of disappearances<br />
<strong>in</strong>vestigated by <strong>the</strong> Commission on Human Rights (CHR) were allegedly perpetrated by <strong>the</strong><br />
military or <strong>the</strong> police.<br />
International attention is <strong>in</strong>creas<strong>in</strong>gly focus<strong>in</strong>g on human rights abuses <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es. The<br />
political kill<strong>in</strong>gs are <strong>the</strong> subject of an Amnesty International report. 40 A jo<strong>in</strong>t Dutch-Belgian<br />
delegation of lawyers highlighted <strong>the</strong> kill<strong>in</strong>g of 15 lawyers <strong>and</strong> 10 judges <strong>and</strong> recommended that<br />
<strong>the</strong> Government of <strong>the</strong> Philipp<strong>in</strong>es order an <strong>in</strong>dependent <strong>in</strong>vestigation <strong>in</strong>to <strong>the</strong> kill<strong>in</strong>gs. The<br />
delegation stated that ‘a culture of impunity’ was develop<strong>in</strong>g. 41 The call for action was echoed by<br />
Senator Jamby Madrigal, who has filed compla<strong>in</strong>ts with a number of UN Special Rapporteurs. The<br />
Special Rapporteur on Freedom of Expression has committed to mak<strong>in</strong>g <strong>the</strong> Philipp<strong>in</strong>es his priority<br />
<strong>and</strong> has requested permission from <strong>the</strong> Philipp<strong>in</strong>e Permanent Mission <strong>in</strong> Geneva to visit <strong>the</strong><br />
country. The UN Human Rights Council may review <strong>the</strong> Philipp<strong>in</strong>es’ track record as part of its<br />
Universal Periodic Review <strong>in</strong> <strong>the</strong> com<strong>in</strong>g months. The government is also com<strong>in</strong>g under <strong>in</strong>creas<strong>in</strong>g<br />
pressure to meet its long-neglected <strong>in</strong>ternational human rights report<strong>in</strong>g obligations. 42<br />
The fact-f<strong>in</strong>d<strong>in</strong>g team members were disturbed by <strong>the</strong> climate of fear develop<strong>in</strong>g among legitimate<br />
protesters aga<strong>in</strong>st government policies <strong>and</strong> commercial projects <strong>and</strong> <strong>the</strong> apparent lack of effective<br />
protection of <strong>the</strong> right to peaceful protest <strong>and</strong> opposition. The team concluded, <strong>in</strong> l<strong>in</strong>e with <strong>the</strong><br />
conclusions of Dr Emil Salim’s Extractive Industries Review for <strong>the</strong> World Bank, that it is<br />
<strong>in</strong>advisable to develop large-scale <strong>and</strong> controversial m<strong>in</strong><strong>in</strong>g projects <strong>in</strong> an environmentally <strong>and</strong><br />
socially responsible way if people feel threatened when <strong>the</strong>y criticize government <strong>and</strong> corporate<br />
practices.<br />
3.2. Corruption<br />
The Philipp<strong>in</strong>es was categorized by Transparency International <strong>in</strong> 2004 as suffer<strong>in</strong>g from ‘rampant<br />
corruption’. 43 The m<strong>in</strong><strong>in</strong>g sector <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es appears to be no exception to this. The fact-f<strong>in</strong>d<strong>in</strong>g<br />
team was provided with examples of corruption l<strong>in</strong>ked with m<strong>in</strong><strong>in</strong>g at local government level. 44 The<br />
fact-f<strong>in</strong>d<strong>in</strong>g team is support<strong>in</strong>g a compla<strong>in</strong>t to <strong>the</strong> national ombudsman <strong>in</strong> relation to corruption <strong>in</strong><br />
Midsalip.<br />
The Special Representative of <strong>the</strong> Secretary General on <strong>the</strong> Issue of Human Rights <strong>and</strong> Transnational<br />
Corporations <strong>and</strong> O<strong>the</strong>r Bus<strong>in</strong>ess Enterprises, John Ruggie, listed large-scale corruption as one of <strong>the</strong><br />
abuses typically associated with <strong>the</strong> extractive <strong>in</strong>dustry. 45 The Extractive Industry Review,<br />
commissioned by <strong>the</strong> World Bank to review <strong>the</strong> possible contribution of Bank <strong>in</strong>vestment <strong>in</strong> m<strong>in</strong><strong>in</strong>g<br />
projects to poverty alleviation <strong>and</strong> susta<strong>in</strong>able development, highlighted <strong>the</strong> connection between<br />
corruption <strong>and</strong> m<strong>in</strong><strong>in</strong>g 46 . O<strong>the</strong>r <strong>in</strong>ternational studies have likewise l<strong>in</strong>ked dependency on natural<br />
resources to high rates of corruption. 47<br />
A 2005 European Commission report stated that <strong>the</strong> DENR had ‘shied away’ from <strong>in</strong>troduc<strong>in</strong>g<br />
‘<strong>in</strong>ternal controls to curb corruption, which has traditionally been notorious with respect to illegal<br />
logg<strong>in</strong>g <strong>and</strong> m<strong>in</strong><strong>in</strong>g concessions’. 48<br />
Extractive Industry Transparency Initiative<br />
The EITI is a multi-stakeholder <strong>in</strong>itiative to address corruption with<strong>in</strong> <strong>the</strong> extractive <strong>in</strong>dustries. The EITI<br />
requires government, <strong>in</strong>dustry <strong>and</strong> civil society to work toge<strong>the</strong>r to publish <strong>and</strong> verify company payments <strong>and</strong><br />
government revenues from m<strong>in</strong><strong>in</strong>g. 49 Although participation by m<strong>in</strong>eral-rich countries is voluntary, a new<br />
validation mechanism has recently been agreed to evaluate whe<strong>the</strong>r a country is fulfill<strong>in</strong>g its commitment to<br />
implement <strong>the</strong> EITI or not.<br />
The Government of <strong>the</strong> Philipp<strong>in</strong>es <strong>and</strong> <strong>the</strong> Philipp<strong>in</strong>es Chamber of M<strong>in</strong>es have expressed <strong>in</strong>terest <strong>in</strong> this<br />
<strong>in</strong>itiative but have not yet signed up to it. Participation <strong>in</strong> <strong>the</strong> EITI process by <strong>the</strong> government would be<br />
welcome, but this must also be accompanied by <strong>the</strong> mean<strong>in</strong>gful <strong>in</strong>volvement of genu<strong>in</strong>e representatives of<br />
Filip<strong>in</strong>o civil society. Unless <strong>the</strong>re is <strong>the</strong> political will to address <strong>the</strong> underly<strong>in</strong>g issues outl<strong>in</strong>ed <strong>in</strong> this <strong>and</strong><br />
9
o<strong>the</strong>r reports, engagement with <strong>the</strong> <strong>in</strong>itiative will be <strong>in</strong>effectual <strong>and</strong> risks unduly legitimiz<strong>in</strong>g <strong>the</strong> operations of<br />
<strong>the</strong> m<strong>in</strong><strong>in</strong>g <strong>in</strong>dustry with<strong>in</strong> <strong>the</strong> country.<br />
3.3. Pressure on <strong>the</strong> judiciary<br />
At <strong>the</strong> Philipp<strong>in</strong>e government’s m<strong>in</strong><strong>in</strong>g roadshow <strong>in</strong> London <strong>in</strong> June 2005, <strong>the</strong> Speaker of <strong>the</strong> House<br />
of Representatives, Jose DeVenecia, told <strong>in</strong>ternational m<strong>in</strong><strong>in</strong>g <strong>in</strong>vestors about his role <strong>in</strong> <strong>the</strong><br />
controversial reversal of a Supreme Court decision on <strong>the</strong> constitutionality of <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Act <strong>in</strong> <strong>the</strong> La<br />
Bugal-B’laan Tribal Ass’n v. Ramos case of 2004. 50 He announced that, toge<strong>the</strong>r with <strong>the</strong> Chamber of<br />
M<strong>in</strong>es ‘we mounted a strong campaign to get <strong>the</strong> Supreme Court to reverse itself. It was a difficult<br />
task to get 15 proud men <strong>and</strong> women of <strong>the</strong> Supreme Court to reverse <strong>the</strong>mselves. But we succeeded.<br />
F<strong>in</strong>ally, <strong>the</strong> law was declared constitutional.’ 51 The statement appeared to <strong>in</strong>dicate that <strong>the</strong><br />
Philipp<strong>in</strong>es judiciary may be vulnerable to pressure from legislators.<br />
While it is clear that laws <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es seem to provide a framework for <strong>the</strong> protection of local<br />
rights, <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team was told that it appears to be practically impossible for local<br />
communities to obta<strong>in</strong> timely <strong>and</strong> effective resolution of cases submitted at municipal <strong>and</strong> regional<br />
trial courts.<br />
3.4. Environmental concerns<br />
The record of m<strong>in</strong><strong>in</strong>g companies with regard to environmental protection, disasters <strong>and</strong> post-m<strong>in</strong><strong>in</strong>g<br />
clean-up <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es is widely acknowledged, even with<strong>in</strong> <strong>the</strong> government, to be very poor. 52<br />
As of 2003, <strong>the</strong>re had been at least 16 serious tail<strong>in</strong>gs dam failures <strong>in</strong> <strong>the</strong> preced<strong>in</strong>g 20 years 53 <strong>and</strong> over<br />
800 ab<strong>and</strong>oned m<strong>in</strong>e sites have not been cleaned up. Clean-up costs are estimated <strong>in</strong> billions of<br />
dollars <strong>and</strong> <strong>the</strong> damage caused will never be fully reversed. 54<br />
Modern m<strong>in</strong><strong>in</strong>g <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es typically consists of open-pit m<strong>in</strong><strong>in</strong>g of low-grade ores for copper<br />
<strong>and</strong> gold, <strong>and</strong> strip-m<strong>in</strong><strong>in</strong>g for nickel. This <strong>in</strong>volves flatten<strong>in</strong>g mounta<strong>in</strong>tops, creat<strong>in</strong>g huge craters<br />
<strong>and</strong> produc<strong>in</strong>g vast amounts of waste <strong>in</strong> <strong>the</strong> form of tail<strong>in</strong>gs. Large-scale gold m<strong>in</strong><strong>in</strong>g is particularly<br />
destructive because it <strong>in</strong>volves <strong>the</strong> process<strong>in</strong>g of huge volumes of ground rock, us<strong>in</strong>g cyanide to<br />
separate gold from <strong>the</strong> ore. This process also releases o<strong>the</strong>r potentially harmful toxic metals, <strong>the</strong><br />
monitor<strong>in</strong>g of which has been described as <strong>in</strong>adequate <strong>in</strong> certa<strong>in</strong> m<strong>in</strong><strong>in</strong>g operations <strong>in</strong> <strong>the</strong><br />
Philipp<strong>in</strong>es. 55<br />
The DENR has described <strong>the</strong> Philipp<strong>in</strong>es as <strong>the</strong> ‘hottest of hotspots’ <strong>in</strong> <strong>the</strong> world <strong>in</strong> terms of threats to<br />
its ‘mega diverse’ biodiversity. It highlighted <strong>the</strong> ‘urgent need to properly manage natural resources<br />
<strong>and</strong> protect <strong>the</strong> environment’. 56 In a once densely forested country, which today has <strong>the</strong> second<br />
lowest forest cover <strong>in</strong> <strong>the</strong> Association of South East Asian Nations (ASEAN), this is not an<br />
overstatement. The loss of forest has resulted <strong>in</strong> <strong>in</strong>creased flood<strong>in</strong>g, devastat<strong>in</strong>g l<strong>and</strong>slides, siltation<br />
<strong>and</strong> <strong>the</strong> destruction of biodiversity areas. Large-scale m<strong>in</strong><strong>in</strong>g has <strong>the</strong> potential to seriously exacerbate<br />
this. In <strong>the</strong> Philipp<strong>in</strong>es 81 per cent of <strong>the</strong> globally important l<strong>and</strong>-based biodiversity areas are <strong>in</strong> forest<br />
habitats. It is estimated that 37 per cent of this forest area may be opened up to new m<strong>in</strong><strong>in</strong>g. 57<br />
Accord<strong>in</strong>g to <strong>the</strong> United States Environmental Protection Agency, water contam<strong>in</strong>ation from m<strong>in</strong><strong>in</strong>g<br />
poses one of <strong>the</strong> top three ecological security threats <strong>in</strong> <strong>the</strong> world. 58 Many m<strong>in</strong><strong>in</strong>g applications <strong>in</strong> <strong>the</strong><br />
Philipp<strong>in</strong>es are <strong>in</strong> water catchment areas very close to <strong>the</strong> sea, <strong>and</strong> pose a major threat to valuable<br />
mar<strong>in</strong>e environments. In addition a number of companies are propos<strong>in</strong>g to use submar<strong>in</strong>e tail<strong>in</strong>gs<br />
disposal (STD) also referred to as deep-sea tail<strong>in</strong>gs placement. The full potential impact of this on <strong>the</strong><br />
vital mar<strong>in</strong>e environment is only now be<strong>in</strong>g discovered. The practice is effectively illegal <strong>in</strong> Canada<br />
<strong>and</strong> <strong>the</strong> United States <strong>and</strong> has never been proposed for use <strong>in</strong> Australia – <strong>the</strong> home countries of some<br />
10
of <strong>the</strong> companies propos<strong>in</strong>g STD <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es. 59 The FFT was disturbed by this apparent double<br />
st<strong>and</strong>ard among companies claim<strong>in</strong>g to operate to <strong>the</strong> highest <strong>in</strong>ternational st<strong>and</strong>ards.<br />
The Philipp<strong>in</strong>es has very high geo-hazard risks. 60 Typhoons, earthquakes, volcanoes <strong>and</strong> l<strong>and</strong>slides<br />
are common. The eruption of <strong>the</strong> Mt Mayon volcano dur<strong>in</strong>g <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team’s visit served as a<br />
timely rem<strong>in</strong>der of this. The eruption displaced 43,000 people. Alarm<strong>in</strong>gly, <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es over<br />
half of <strong>the</strong> active m<strong>in</strong><strong>in</strong>g concessions <strong>and</strong> two-thirds of exploratory concessions are located <strong>in</strong> areas of<br />
high seismic risk where earthquakes are considered likely. 61 The Marcopper disaster was blamed by<br />
Placer Dome, <strong>the</strong> company operat<strong>in</strong>g <strong>the</strong> m<strong>in</strong>e, on a m<strong>in</strong>or earthquake. 62 The disaster <strong>in</strong> 1996,<br />
<strong>in</strong>volv<strong>in</strong>g <strong>the</strong> rupture of a cement plug <strong>in</strong> <strong>the</strong> base of a tail<strong>in</strong>gs dump<strong>in</strong>g pit, spilled an estimated 4<br />
million tons of tail<strong>in</strong>gs slurry <strong>in</strong>to <strong>the</strong> Boac river. The spill affected 20,000 people <strong>and</strong> resulted <strong>in</strong> <strong>the</strong><br />
river be<strong>in</strong>g declared biologically dead.<br />
Food <strong>and</strong> Water Security<br />
<strong>M<strong>in</strong><strong>in</strong>g</strong> can be both a major consumer <strong>and</strong> a major polluter of water. Accord<strong>in</strong>g to <strong>the</strong> United States<br />
Environmental Protection Agency, water contam<strong>in</strong>ation from m<strong>in</strong><strong>in</strong>g poses one of <strong>the</strong> top three<br />
ecological security threats <strong>in</strong> <strong>the</strong> world. 63<br />
The communities that <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team met with <strong>and</strong> a range of organizations all voiced grave<br />
concerns about <strong>the</strong> potential impact on <strong>the</strong> volume <strong>and</strong> quality of water. These concerns are<br />
reflected <strong>in</strong> <strong>the</strong> documented experience of many communities downstream of exist<strong>in</strong>g m<strong>in</strong>es.<br />
International experience suggests that if pursued on <strong>the</strong> scale currently proposed by <strong>the</strong> Philipp<strong>in</strong>e<br />
government, m<strong>in</strong><strong>in</strong>g could weaken <strong>the</strong> food security of affected communities <strong>and</strong> even of <strong>the</strong><br />
country as a whole. Local communities feared that pollution <strong>and</strong> siltation of rivers may deplete<br />
water sources, reduc<strong>in</strong>g rice production <strong>and</strong> fisheries.<br />
The last national census estimated that <strong>the</strong> population will grow from its current level of 84 million<br />
to over 150 million with<strong>in</strong> 30 years. The crisis of water management <strong>and</strong> irrigation has been raised<br />
by <strong>the</strong> National Economic <strong>and</strong> Development Authority (NEDA) <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>e Medium Term<br />
Development Plan 2004-2010. Accord<strong>in</strong>g to NEDA, ‘<strong>the</strong> management of watersheds has not been<br />
properly given attention. This has led to shortages of water for irrigation, <strong>in</strong>dustrial <strong>and</strong> domestic<br />
uses <strong>and</strong> is thus likely to negatively affect future development <strong>in</strong>itiatives.’ 64<br />
In <strong>the</strong> Philipp<strong>in</strong>es many m<strong>in</strong><strong>in</strong>g <strong>and</strong> exploration concessions overlap watershed areas where<br />
dem<strong>and</strong> for water exceeds <strong>the</strong> available supply. <strong>M<strong>in</strong><strong>in</strong>g</strong> <strong>in</strong> <strong>the</strong>se areas would <strong>the</strong>refore be likely to<br />
compete with <strong>the</strong> needs of o<strong>the</strong>r users, <strong>in</strong>clud<strong>in</strong>g farmers <strong>and</strong> households, for scarce water. 65 Many<br />
m<strong>in</strong><strong>in</strong>g sites are located on mounta<strong>in</strong>s that act as watersheds for numerous rivers, potentially<br />
compound<strong>in</strong>g <strong>the</strong> threat.<br />
While <strong>the</strong> DENR recognizes that ‘pollution of water sources such as rivers <strong>and</strong> lakes is evident <strong>in</strong><br />
many parts of <strong>the</strong> country’, <strong>the</strong>re appears to be a disjunction between this assessment <strong>and</strong> its<br />
recommendations on m<strong>in</strong><strong>in</strong>g. In its m<strong>in</strong><strong>in</strong>g plan <strong>the</strong> DENR states that ‘8.5 million hectares or 94.4<br />
percent of m<strong>in</strong>eralized areas [approximately 28 per cent of <strong>the</strong> total l<strong>and</strong> area of <strong>the</strong> Philipp<strong>in</strong>es]<br />
have yet to be developed’, without reference to <strong>the</strong> potential environmental damage. Those most<br />
likely to be adversely affected will be <strong>the</strong> <strong>in</strong>digenous <strong>and</strong> local communities who rely on agriculture<br />
<strong>and</strong> fish<strong>in</strong>g for <strong>the</strong>ir livelihoods <strong>and</strong> food. In <strong>the</strong> long term, <strong>the</strong> entire economy <strong>and</strong> food security of<br />
<strong>the</strong> Philipp<strong>in</strong>es will suffer. As <strong>the</strong> <strong>the</strong>n Secretary of <strong>the</strong> DENR Heherson Alvares put it: ‘What does it<br />
ga<strong>in</strong> a nation to be short-sighted <strong>and</strong> merely th<strong>in</strong>k of money when an irreparable damage to <strong>the</strong> environment<br />
will cost human lives, health, <strong>and</strong> livelihood capacity of our farmers <strong>and</strong> fisherfolk endanger<strong>in</strong>g <strong>the</strong> food<br />
security of our people? 66 ’<br />
11
3.4.1. Legislation<br />
The Philipp<strong>in</strong>es has ga<strong>in</strong>ed <strong>in</strong>ternational credibility for its legislation on <strong>in</strong>digenous peoples’ rights.<br />
Its environmental legislation has also, <strong>in</strong> <strong>the</strong> past, been described as <strong>the</strong> most progressive <strong>in</strong> South<br />
East Asia. 67 Protection of peoples’ right to enjoy ‘a balanced <strong>and</strong> healthful ecology’ is afforded <strong>in</strong> <strong>the</strong><br />
constitution. 68 A progressive Supreme Court case, Oposa v. Factoran, halted deforestation of <strong>the</strong><br />
Philipp<strong>in</strong>e ra<strong>in</strong>forests by recogniz<strong>in</strong>g <strong>the</strong> locus st<strong>and</strong>i (or <strong>the</strong> right to appear <strong>in</strong> court) of both present<br />
<strong>and</strong> future (unborn) generations. 69 The Philipp<strong>in</strong>e government, under pressure from civil society, had<br />
made some progress towards meet<strong>in</strong>g <strong>the</strong> Rio Declaration requirements for public participation <strong>in</strong><br />
environmental decision mak<strong>in</strong>g. 70<br />
3.4.2. Environmental Social Impact Assessments & Strategic Environmental<br />
Assessments<br />
However, hard-won provisions for public participation <strong>in</strong> Environmental Impact Assessments (EIAs)<br />
are be<strong>in</strong>g eroded <strong>in</strong> <strong>the</strong> name of ‘streaml<strong>in</strong><strong>in</strong>g’ application processes. Recent Adm<strong>in</strong>istrative Orders<br />
have weakened participation rights, <strong>in</strong>clud<strong>in</strong>g <strong>the</strong> right to <strong>in</strong>formation, participation <strong>in</strong> decision<br />
mak<strong>in</strong>g <strong>and</strong> access to justice. EIA process<strong>in</strong>g timeframes have been reduced, with automatic approval<br />
if <strong>the</strong>y are exceeded. Requirements to provide public <strong>in</strong>formation have been relaxed, as has <strong>the</strong> need<br />
to provide notice of public hear<strong>in</strong>gs 71 . These changes have been accompanied by relax<strong>in</strong>g of <strong>the</strong><br />
controls <strong>in</strong> <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Act. Taken toge<strong>the</strong>r, <strong>the</strong>y seriously underm<strong>in</strong>e <strong>the</strong> protection afforded by EIAs<br />
<strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es.<br />
Dur<strong>in</strong>g its visit <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team was <strong>in</strong>formed by locals <strong>and</strong> NGOs of <strong>the</strong> difficulty communities<br />
had <strong>in</strong> obta<strong>in</strong><strong>in</strong>g copies of EIAs, <strong>and</strong> of <strong>the</strong> lack of <strong>in</strong>dependent analysis or explanation of <strong>the</strong>ir<br />
contents <strong>and</strong> implications. Communities are not provided with adequate <strong>in</strong>dependent <strong>in</strong>formation to<br />
enable <strong>the</strong>m to monitor m<strong>in</strong><strong>in</strong>g companies’ compliance with environmental st<strong>and</strong>ards. Bodies that<br />
provide this type of <strong>in</strong>dependent environmental review <strong>and</strong> monitor<strong>in</strong>g exist <strong>in</strong> o<strong>the</strong>r countries, 72 but<br />
<strong>the</strong>re seems to be no adequate Philipp<strong>in</strong>e equivalent as yet.<br />
Ano<strong>the</strong>r area of concern to <strong>the</strong> team is <strong>the</strong> seem<strong>in</strong>g lack of attention to <strong>the</strong> social <strong>and</strong> environmental<br />
impact of projects. Best practice would require Strategic Environmental Appraisals (SEAs) to identify<br />
threats to biodiversity <strong>and</strong> susta<strong>in</strong>able development. These identify all biodiversity areas, <strong>in</strong>clud<strong>in</strong>g<br />
mangroves, coral reefs, seabed grasses, fish breed<strong>in</strong>g grounds, <strong>the</strong> migratory routes of fish, turtles<br />
<strong>and</strong> mar<strong>in</strong>e mammals, <strong>the</strong> areas of highest fish catch, direction of currents at different times of year,<br />
critical water catchment areas, major agricultural areas <strong>and</strong> forested areas. SEAs would identify<br />
current <strong>and</strong> all potential threats <strong>and</strong> <strong>the</strong>ir potential accumulative impacts. To ensure protection of<br />
<strong>in</strong>digenous peoples’ rights, SEAs should also identify all protected areas, <strong>in</strong>clud<strong>in</strong>g <strong>the</strong> sacred sites of<br />
<strong>in</strong>digenous peoples. Currently <strong>the</strong>re seems to be no comprehensive assessment of <strong>the</strong>se important<br />
potential impacts. Best practice would also require that a jo<strong>in</strong>t Environmental <strong>and</strong> Social Impact<br />
Assessment (ESIA) be prepared <strong>and</strong> <strong>in</strong>dependently reviewed for each project.<br />
It was also disturb<strong>in</strong>g to discover that apparently <strong>the</strong> Philipp<strong>in</strong>e Council for Susta<strong>in</strong>able Development<br />
(PCSD) has not been called to meet by <strong>the</strong> Government for <strong>the</strong> past two years.<br />
3.5. Indigenous peoples <strong>and</strong> Free, Prior, Informed, Consent<br />
The Indigenous Peoples Rights Act (IPRA, 1997) <strong>and</strong> <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Code (Republic Act 7942, 1995)<br />
guarantee <strong>in</strong>digenous peoples <strong>the</strong> right to free, prior, <strong>in</strong>formed consent (FPIC) over decisions<br />
affect<strong>in</strong>g <strong>the</strong>m <strong>and</strong> developments on <strong>the</strong>ir l<strong>and</strong>s (See Appendix 12 for an overview of <strong>the</strong> location of<br />
12
<strong>the</strong> Philipp<strong>in</strong>es 10 – 15 million <strong>in</strong>digenous peoples). The right to FPIC extends to natural resource<br />
extraction projects. FPIC is def<strong>in</strong>ed as:<br />
<strong>the</strong> consensus of all members of <strong>the</strong> ICCs/IPs [Indigenous Cultural Communities/Indigenous Peoples] to be<br />
determ<strong>in</strong>ed <strong>in</strong> accordance with <strong>the</strong>ir respective customary laws <strong>and</strong> practices, free from any external<br />
manipulation, <strong>in</strong>terference or coercion, <strong>and</strong> obta<strong>in</strong>ed after fully disclos<strong>in</strong>g <strong>the</strong> <strong>in</strong>tent <strong>and</strong> scope of <strong>the</strong><br />
activity, <strong>in</strong> a language <strong>and</strong> process underst<strong>and</strong>able to <strong>the</strong> community. 73<br />
The def<strong>in</strong>ition is based on what has subsequently become Article 32 of <strong>the</strong> UN Declaration on<br />
Indigenous Peoples <strong>and</strong> similar provisions exist <strong>in</strong> ILO Convention 169 on Indigenous <strong>and</strong> Tribal<br />
Peoples.<br />
The FFT heard compell<strong>in</strong>g evidence that this right to FPIC is be<strong>in</strong>g systematically denied to <strong>the</strong><br />
<strong>in</strong>digenous peoples of <strong>the</strong> Philipp<strong>in</strong>es. The <strong>in</strong>digenous communities <strong>the</strong>y met raised a number of<br />
issues that <strong>the</strong>y claim were serious impediments to <strong>the</strong> effective implementation of <strong>the</strong>ir right to<br />
FPIC.<br />
One of <strong>the</strong> major concerns voiced by <strong>the</strong> <strong>in</strong>digenous peoples is <strong>the</strong> lack of <strong>in</strong>dependent <strong>in</strong>formation<br />
regard<strong>in</strong>g m<strong>in</strong><strong>in</strong>g that is made available to <strong>the</strong>m. They felt that, ra<strong>the</strong>r than be<strong>in</strong>g <strong>in</strong>formed about <strong>the</strong><br />
potential impacts of m<strong>in</strong><strong>in</strong>g, as required by law, <strong>the</strong> <strong>in</strong>formation <strong>the</strong>y are currently provided<br />
frequently amounted to little more than propag<strong>and</strong>a by m<strong>in</strong><strong>in</strong>g companies. As a result <strong>the</strong>y feel that<br />
<strong>the</strong>y are not <strong>in</strong> a position to make an <strong>in</strong>formed choice. 74 Based on <strong>the</strong> experiences of o<strong>the</strong>r <strong>in</strong>digenous<br />
communities <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es <strong>the</strong>y fear that many of <strong>the</strong> promises made by <strong>the</strong> m<strong>in</strong><strong>in</strong>g companies<br />
dur<strong>in</strong>g <strong>the</strong> FPIC negotiations would not be subsequently fulfilled. In some cases verbal promises<br />
made to <strong>the</strong>m border on <strong>the</strong> absurd. 75<br />
Ano<strong>the</strong>r serious issue raised by <strong>the</strong> <strong>in</strong>digenous communities was what <strong>the</strong>y described as a type of<br />
‘foot <strong>in</strong> <strong>the</strong> door’ policy be<strong>in</strong>g operated by m<strong>in</strong><strong>in</strong>g companies. They described how companies only<br />
provide <strong>the</strong>m with details of <strong>the</strong>ir <strong>in</strong>itial planned operations <strong>and</strong> do not give <strong>the</strong>m <strong>in</strong>formation on <strong>the</strong><br />
potential for future expansion. The experience of <strong>in</strong>digenous communities has been that, once m<strong>in</strong><strong>in</strong>g<br />
operations have been established <strong>the</strong> <strong>in</strong>cremental process<strong>in</strong>g costs are m<strong>in</strong>imal, expansion is almost<br />
<strong>in</strong>evitable regardless of <strong>the</strong> wishes of <strong>the</strong> communities impacted.<br />
The Midsalip community described how attendance sheets at meet<strong>in</strong>gs with a m<strong>in</strong><strong>in</strong>g company had<br />
been used as proof of consent. They, along with o<strong>the</strong>r <strong>in</strong>digenous communities that <strong>the</strong> FFT met,<br />
recounted offers rang<strong>in</strong>g from bags of rice to cash amounts, significant by local st<strong>and</strong>ards, offered <strong>in</strong><br />
exchange for <strong>the</strong>ir consent.<br />
In <strong>the</strong> FFT discussions with <strong>the</strong> <strong>in</strong>digenous peoples two common <strong>the</strong>mes emerged. Firstly, <strong>in</strong>digenous<br />
communities felt that m<strong>in</strong><strong>in</strong>g companies lacked respect for <strong>the</strong>ir traditional cultures, view<strong>in</strong>g <strong>the</strong>ir<br />
right to FPIC as a technical obstacle to be overcome as quickly as possible ra<strong>the</strong>r than a necessary<br />
protection of rights. Concrete examples provided by <strong>in</strong>digenous peoples <strong>in</strong>cluded cases where m<strong>in</strong><strong>in</strong>g<br />
companies arbitrarily declared that <strong>the</strong>ir sacred sites were ‘not sacred’. This lack of respect was<br />
reflected <strong>in</strong> a speech by a m<strong>in</strong><strong>in</strong>g company CEO when he dismissed a mounta<strong>in</strong> that <strong>in</strong>digenous<br />
people had been fight<strong>in</strong>g to protect as be<strong>in</strong>g ‘a bit of an ugly look<strong>in</strong>g place’. 76<br />
The second <strong>the</strong>me that emerged from discussions with <strong>the</strong> <strong>in</strong>digenous peoples relates to factionalism<br />
<strong>and</strong> misrepresentation. A pattern appears to exist of m<strong>in</strong><strong>in</strong>g companies attempt<strong>in</strong>g to capitalize on,<br />
or generate, division with<strong>in</strong> <strong>in</strong>digenous communities. In cases where <strong>the</strong> consent of <strong>the</strong> <strong>in</strong>digenous<br />
people has not been forthcom<strong>in</strong>g, non-representative <strong>in</strong>digenous leaders have been created <strong>and</strong><br />
recognized by <strong>the</strong> NCIP <strong>and</strong> <strong>the</strong> m<strong>in</strong><strong>in</strong>g companies. The <strong>in</strong>digenous people view <strong>the</strong> selection of<br />
elders through procedures that do not respect customary laws as <strong>in</strong>valid. Accord<strong>in</strong>g to <strong>the</strong>m consent<br />
obta<strong>in</strong>ed <strong>in</strong> this manner should not <strong>and</strong> cannot be <strong>the</strong> basis of FPIC. This view is supported by IPRA<br />
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which requires that consent be obta<strong>in</strong>ed ‘<strong>in</strong> accordance with <strong>the</strong> customary laws <strong>and</strong> practices’ <strong>and</strong><br />
‘free from any external manipulation’.<br />
Cases similar to those recounted to <strong>the</strong> FFT, where m<strong>in</strong><strong>in</strong>g companies eng<strong>in</strong>eered consent, have been<br />
documented all over <strong>the</strong> country. 77<br />
3.5.1. Lack of <strong>in</strong>dependent monitor<strong>in</strong>g & expertise provision & <strong>the</strong> NCIP<br />
The National Commission on Indigenous Peoples (NCIP) is <strong>the</strong> body m<strong>and</strong>ated to ‘protect <strong>and</strong><br />
promote <strong>the</strong> <strong>in</strong>terest <strong>and</strong> well-be<strong>in</strong>g of <strong>the</strong> ICCs/IPs’. It is responsible for ensur<strong>in</strong>g adherence to <strong>the</strong><br />
implement<strong>in</strong>g rules <strong>and</strong> regulations of <strong>the</strong> IPRA. The perception among <strong>in</strong>digenous peoples, based on<br />
<strong>the</strong>ir experience of <strong>the</strong> FPIC process to date, is that <strong>the</strong> NCIP is fail<strong>in</strong>g <strong>in</strong> its m<strong>and</strong>ate <strong>and</strong> has <strong>in</strong> many<br />
cases sided with m<strong>in</strong><strong>in</strong>g companies. Some blame this on a lack of fund<strong>in</strong>g for <strong>the</strong> NCIP, o<strong>the</strong>rs on its<br />
lack of <strong>in</strong>dependence from a political agenda that is strongly pro-m<strong>in</strong><strong>in</strong>g; o<strong>the</strong>rs still attribute it to<br />
corruption <strong>and</strong> bribes by m<strong>in</strong><strong>in</strong>g companies.<br />
Given this perception of <strong>the</strong> NCIP’s bias aga<strong>in</strong>st <strong>in</strong>digenous peoples, <strong>the</strong>re is a need to address its lack<br />
of credibility <strong>and</strong> restore confidence <strong>in</strong> legal processes. This might take <strong>the</strong> form of a credible<br />
<strong>in</strong>dependent body to certify that consent has been given <strong>in</strong> l<strong>in</strong>e with <strong>the</strong> IPRA’s legal guidel<strong>in</strong>es. The<br />
Philipp<strong>in</strong>e Commission on Human Rights may be able to play an important role <strong>in</strong> certify<strong>in</strong>g<br />
<strong>in</strong>digenous peoples’ consent. Where methods used to obta<strong>in</strong> consent breach <strong>the</strong> IPRA guidel<strong>in</strong>es,<br />
legal remedies should be accessible to <strong>the</strong> affected communities. It should be noted that communities<br />
repeat <strong>the</strong>ir concern that <strong>the</strong> f<strong>in</strong>ances <strong>and</strong> expertise available to companies <strong>and</strong> <strong>the</strong> <strong>in</strong>ability of<br />
communities to ‘afford’ <strong>the</strong> lawyers <strong>and</strong> costs of access to justice, is a significant barrier to just<br />
outcomes. The team believes that given <strong>the</strong> scale of <strong>the</strong> violations, <strong>the</strong> office of <strong>the</strong> Ombudsman<br />
should be streng<strong>the</strong>ned to deal with violations of <strong>in</strong>digenous peoples’ rights. The model implemented<br />
<strong>in</strong> Venezuela, of a post of Special Ombudsman on Indigenous Issues, should be considered. A<br />
credible selection process <strong>and</strong> <strong>the</strong> employment of staff sympa<strong>the</strong>tic to, <strong>and</strong> knowledgeable about,<br />
<strong>in</strong>digenous cultures is essential for this office to be credible <strong>in</strong> <strong>the</strong> eyes of <strong>in</strong>digenous peoples.<br />
There is also a need to m<strong>and</strong>ate an <strong>in</strong>dependent body to provide scientific <strong>and</strong> legal assistance to<br />
<strong>in</strong>digenous peoples dur<strong>in</strong>g <strong>the</strong> FPIC process. Such a body is essential to ensure that <strong>in</strong>digenous<br />
peoples are <strong>in</strong> a position to consider giv<strong>in</strong>g <strong>the</strong>ir <strong>in</strong>formed consent. There is a need to provide<br />
<strong>in</strong>dependent assessments <strong>and</strong> explanations of ESIAs. This <strong>and</strong> o<strong>the</strong>r <strong>in</strong>formation should be provided<br />
as part of <strong>the</strong> FPIC process <strong>in</strong> a language <strong>and</strong> format underst<strong>and</strong>able by <strong>in</strong>digenous peoples, to<br />
ensure that <strong>the</strong>y are fully <strong>in</strong>formed of <strong>the</strong> potential impacts. 78<br />
3.5.2. Weaknesses <strong>in</strong> <strong>the</strong> Law<br />
There are a number of weaknesses <strong>in</strong> <strong>the</strong> current IPRA legislation <strong>and</strong> its Implement<strong>in</strong>g Rules <strong>and</strong><br />
Regulations (IRR), as currently revised, <strong>in</strong> relation to FPIC. Two major problems are:<br />
• <strong>the</strong> short timeframe allotted for consensus build<strong>in</strong>g <strong>in</strong> <strong>the</strong> Implement<strong>in</strong>g Rules <strong>and</strong><br />
Regulations;<br />
• <strong>the</strong> current <strong>in</strong>terpretation of Section 56 of <strong>the</strong> IPRA which seeks to deny <strong>in</strong>digenous peoples<br />
<strong>the</strong> right to FPIC for m<strong>in</strong><strong>in</strong>g operations that existed before <strong>the</strong> enactment of <strong>the</strong> IPRA.<br />
The government, <strong>in</strong> <strong>the</strong> <strong>in</strong>terest of speed<strong>in</strong>g up permit applications <strong>and</strong> with <strong>the</strong> approval of <strong>the</strong><br />
NCIP, has implemented new guidel<strong>in</strong>es for <strong>the</strong> FPIC process. Ra<strong>the</strong>r than address<strong>in</strong>g exist<strong>in</strong>g<br />
concerns, <strong>the</strong>y focus on speed<strong>in</strong>g up <strong>the</strong> FPIC process <strong>and</strong> may even reduce protections that currently<br />
exist.<br />
14
Philipp<strong>in</strong>e obligations under International Law<br />
The Philipp<strong>in</strong>es has ratified all <strong>the</strong> ma<strong>in</strong> United Nations <strong>in</strong>ternational human rights treaties, but<br />
surpris<strong>in</strong>gly it absta<strong>in</strong>ed from vot<strong>in</strong>g on <strong>the</strong> recent UN Human Rights Council resolution on <strong>the</strong><br />
Declaration of Indigenous Peoples’ Rights (June 29, 2006), which was approved <strong>and</strong> sent to <strong>the</strong><br />
General Assembly for f<strong>in</strong>al confirmation.<br />
The Philipp<strong>in</strong>es has also ratified <strong>in</strong>ternational environmental treaties <strong>and</strong> agreements such as <strong>the</strong><br />
Convention on Biodiversity, <strong>the</strong> Basel Convention on Hazardous Wastes, <strong>the</strong> UN Convention on <strong>the</strong><br />
Law of <strong>the</strong> Sea, <strong>the</strong> Convention on Mar<strong>in</strong>e Dump<strong>in</strong>g <strong>and</strong> <strong>the</strong> Convention on Wetl<strong>and</strong>s. In<br />
Philipp<strong>in</strong>e law, <strong>in</strong>ternational agreements that <strong>the</strong> country has ratified have <strong>the</strong> same status as<br />
legislative acts. The Philipp<strong>in</strong>es is thus bound by <strong>the</strong> obligations <strong>the</strong>y impose. Rights guaranteed <strong>in</strong><br />
<strong>the</strong> exist<strong>in</strong>g <strong>in</strong>ternational human rights treaties that are particularly relevant to <strong>in</strong>digenous peoples<br />
<strong>in</strong>clude <strong>the</strong> right to self-determ<strong>in</strong>ation, <strong>the</strong> right to non-discrim<strong>in</strong>ation <strong>and</strong> <strong>the</strong> right to culture.<br />
In address<strong>in</strong>g previous reports completed by <strong>the</strong> government of <strong>the</strong> Philipp<strong>in</strong>es, <strong>the</strong> Human Rights<br />
Committee (HRC), responsible for oversee<strong>in</strong>g <strong>the</strong> International Covenant on Civil <strong>and</strong> Political<br />
Rights (ICCPR), <strong>and</strong> <strong>the</strong> Committee on <strong>the</strong> Convention on Elim<strong>in</strong>ation of all forms of Racial<br />
Discrim<strong>in</strong>ation (CERD) have raised <strong>the</strong> issue of <strong>in</strong>digenous peoples’ rights <strong>in</strong> <strong>the</strong> context of m<strong>in</strong><strong>in</strong>g.<br />
The HRC expressed concern for <strong>the</strong> ‘human rights implications for <strong>in</strong>digenous groups of economic<br />
activities, such as m<strong>in</strong><strong>in</strong>g operations’ <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es. 79 It also requested that <strong>the</strong> IPRA be<br />
effectively enforced, <strong>the</strong> capacity of <strong>the</strong> NCIP be streng<strong>the</strong>ned <strong>and</strong> that ‘<strong>in</strong>digenous peoples’ l<strong>and</strong><br />
<strong>and</strong> resource rights enjoy adequate protection <strong>in</strong> relation to m<strong>in</strong><strong>in</strong>g <strong>and</strong> o<strong>the</strong>r compet<strong>in</strong>g usage’. 80<br />
The CERD committee raised similar concerns <strong>and</strong> questioned <strong>the</strong> displacement of <strong>in</strong>digenous<br />
peoples from <strong>the</strong>ir ancestral l<strong>and</strong>s as a result of development. 81<br />
Both <strong>the</strong> CERD Committee <strong>and</strong> <strong>the</strong> Committee on Economic Social <strong>and</strong> Cultural Rights (CESCR)<br />
have stated that consent of <strong>in</strong>digenous peoples should be obta<strong>in</strong>ed for m<strong>in</strong><strong>in</strong>g. The HRC has<br />
highlighted <strong>the</strong> need to protect <strong>in</strong>digenous peoples’ ‘cultural identity <strong>and</strong> traditional livelihood’ <strong>in</strong><br />
relation to extractive <strong>in</strong>dustries.<br />
The Convention on Biodiversity provides for <strong>the</strong> preservation of <strong>in</strong>digenous peoples’ traditional<br />
lifestyles <strong>and</strong> <strong>the</strong>ir <strong>in</strong>volvement <strong>in</strong> shar<strong>in</strong>g <strong>the</strong>ir knowledge <strong>and</strong> benefits from those lifestyles. 82 The<br />
Declaration on Indigenous Peoples requires that <strong>in</strong>digenous peoples be afforded <strong>the</strong> right to FPIC <strong>in</strong><br />
all decisions that affect <strong>the</strong>m.<br />
The Philipp<strong>in</strong>e Commissioner on Human Rights, Purificacion V. Quisumb<strong>in</strong>g, recently chastised <strong>the</strong><br />
government for its failure to meet its report<strong>in</strong>g commitments to <strong>the</strong> human rights treaty bodies.<br />
With some reports 14 years overdue, she warned that <strong>the</strong> Philipp<strong>in</strong>es may be listed as a violator of<br />
its treaty obligations. 83<br />
3.6. The Philipp<strong>in</strong>es Local Government Code<br />
The Local Government Code of 1991 requires that local governments be consulted with regard to<br />
development <strong>in</strong>itiatives, <strong>in</strong>clud<strong>in</strong>g m<strong>in</strong><strong>in</strong>g operations, with<strong>in</strong> <strong>the</strong>ir jurisdiction. In practice it seems<br />
this requirement is frequently over-ridden by national government, or ignored, or rendered<br />
<strong>in</strong>effective by bribery.<br />
3.7. Health impacts<br />
<strong>M<strong>in</strong><strong>in</strong>g</strong> can have serious health implications for local communities. Professor Rodolfo Stavenhagen<br />
<strong>the</strong> UN Special Rapporteur on <strong>in</strong>digenous peoples’ rights, on his visit to <strong>the</strong> Philipp<strong>in</strong>es <strong>in</strong> 2002,<br />
identified threats to health as one of <strong>the</strong> negative impacts of m<strong>in</strong><strong>in</strong>g that urgently needed to be<br />
halted. 84 In M<strong>in</strong>danao <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team heard numerous reports of people suffer<strong>in</strong>g from itch<strong>in</strong>g<br />
<strong>and</strong> sk<strong>in</strong> rashes as a result of wash<strong>in</strong>g with water or work<strong>in</strong>g <strong>in</strong> <strong>the</strong>ir rice fields. They attributed <strong>the</strong>se<br />
to pollution caused by m<strong>in</strong><strong>in</strong>g operations. In much commercial m<strong>in</strong><strong>in</strong>g, cyanide separation is used to<br />
extract gold from ore. It is estimated that one-millionth of a gram of cyanide per liter of water can be<br />
15
fatal to fish. The m<strong>in</strong><strong>in</strong>g process can also lead to toxic metals be<strong>in</strong>g released from <strong>the</strong> ore. If toxic<br />
metals, mercury or cyanide get <strong>in</strong>to <strong>the</strong> food cha<strong>in</strong> <strong>the</strong>y can seriously damage health 85 .<br />
Decreased productivity of farm<strong>in</strong>g or fish<strong>in</strong>g - a widespread compla<strong>in</strong>t of affected communities - has<br />
an immediate impact on health, <strong>in</strong> particular that of children, as nutrition levels fall <strong>and</strong> families can<br />
no longer afford health services.<br />
The collapse of tail<strong>in</strong>gs dams has resulted <strong>in</strong> <strong>in</strong>juries <strong>and</strong> deaths, but can also have disastrous longer<br />
term health effects, with contam<strong>in</strong>ated water lead<strong>in</strong>g to sk<strong>in</strong> <strong>in</strong>fections, loss of food sources <strong>and</strong><br />
chemicals enter<strong>in</strong>g <strong>the</strong> food cha<strong>in</strong>. The full potential direct <strong>and</strong> <strong>in</strong>direct health impacts of submar<strong>in</strong>e<br />
tail<strong>in</strong>gs disposal are unknown 86 . Health impacts also result from <strong>the</strong> <strong>in</strong>flux of people <strong>in</strong>to <strong>the</strong> m<strong>in</strong>e<br />
site. The <strong>in</strong>troduction of HIV/AIDS, sometimes associated with migrant male workers, is a major<br />
worry among local communities. In <strong>in</strong>digenous communities, <strong>the</strong> health of <strong>in</strong>dividuals can suffer<br />
when <strong>the</strong>ir connection with <strong>the</strong> l<strong>and</strong> is broken, because this limits <strong>the</strong>ir access to traditional sources of<br />
food <strong>and</strong> medic<strong>in</strong>e. This dislocation from <strong>the</strong>ir natural environment can also be detrimental to <strong>the</strong>ir<br />
psychological well-be<strong>in</strong>g. To address <strong>the</strong>se concerns <strong>the</strong> EIR commissioned by <strong>the</strong> World Bank<br />
emphasized <strong>the</strong> importance of <strong>the</strong> health impacts of m<strong>in</strong><strong>in</strong>g <strong>and</strong> recommended that Health Impact<br />
Assessments be performed.<br />
3.8. Militarized commerce<br />
The EIR noted that ‘<strong>the</strong> large economic rents generated by extractive <strong>in</strong>dustries may help provoke or<br />
prolong civil conflict. Indigenous peoples are particularly vulnerable.’ The review recommended that<br />
one of <strong>the</strong> ‘core macro-governance’ criteria <strong>in</strong> relation to m<strong>in</strong><strong>in</strong>g should be ‘<strong>the</strong> absence of conflict or<br />
of a high risk of conflict’ <strong>and</strong> that <strong>in</strong> no circumstance should <strong>the</strong> World Bank support m<strong>in</strong><strong>in</strong>g projects<br />
<strong>in</strong> areas <strong>in</strong>volved <strong>in</strong> armed conflict.<br />
In <strong>the</strong> Philipp<strong>in</strong>es m<strong>in</strong><strong>in</strong>g is currently proceed<strong>in</strong>g <strong>in</strong> conflict zones. The Special Rapporteur on<br />
<strong>in</strong>digenous peoples’ rights noted that <strong>the</strong>re had been ‘extensive human rights violations by <strong>the</strong> army<br />
<strong>in</strong> nor<strong>the</strong>rn M<strong>in</strong>danao’ <strong>in</strong> connection with economic development projects <strong>in</strong>clud<strong>in</strong>g m<strong>in</strong><strong>in</strong>g. Both <strong>the</strong><br />
Moro Islamic Liberation Front (MILF) <strong>and</strong> Abu Sayyaf are reported to have been active <strong>in</strong> <strong>the</strong><br />
Zamboanga prov<strong>in</strong>ces, where TVI is operat<strong>in</strong>g.<br />
The record of <strong>the</strong> logg<strong>in</strong>g <strong>in</strong>dustry <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es reveals that many logg<strong>in</strong>g operations <strong>in</strong> remote<br />
areas attracted <strong>the</strong> attention of b<strong>and</strong>it <strong>and</strong> guerrilla groups <strong>and</strong> many were forced to pay protection<br />
money. <strong>M<strong>in</strong><strong>in</strong>g</strong> operations, particularly for gold, <strong>in</strong> zones of conflict seem <strong>in</strong>evitably to draw<br />
attention from armed groups. Records of payments made to various armed groups by K<strong>in</strong>gk<strong>in</strong>g<br />
M<strong>in</strong>es <strong>in</strong> <strong>the</strong> Davao Gulf <strong>in</strong> M<strong>in</strong>danao have been published by <strong>the</strong> Sierra club, a respected North<br />
American Environmental group <strong>and</strong> presented to a Canadian parliamentary committee <strong>in</strong> 2005.<br />
Militarization <strong>and</strong> conflict are widespread <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es, <strong>and</strong> human rights violations are<br />
committed by <strong>the</strong> military, private armies <strong>and</strong> rebel groups. 87 <strong>M<strong>in</strong><strong>in</strong>g</strong> <strong>in</strong> <strong>the</strong>se conflict areas has led to<br />
significant <strong>in</strong>creases <strong>in</strong> militarization <strong>and</strong> an associated escalation of human rights abuses.<br />
Peace agreements<br />
One area of concern brought to <strong>the</strong> attention of <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team was that peace negotiations<br />
between <strong>the</strong> government <strong>and</strong> <strong>the</strong> MILF may enable m<strong>in</strong><strong>in</strong>g on <strong>in</strong>digenous peoples’ l<strong>and</strong>s without<br />
<strong>the</strong>ir consent.<br />
Failure to address <strong>the</strong> concerns of <strong>in</strong>digenous peoples <strong>in</strong> <strong>the</strong> peace negotiations could lead to<br />
<strong>in</strong>stability <strong>and</strong> <strong>the</strong> denial of rights to <strong>in</strong>digenous peoples of <strong>the</strong> region. A recent statement by 26<br />
<strong>in</strong>digenous tribes – compris<strong>in</strong>g <strong>the</strong> United Indigenous Nations of M<strong>in</strong>danao – expressed <strong>the</strong>ir<br />
opposition to <strong>the</strong> <strong>in</strong>clusion of <strong>the</strong>ir ancestral doma<strong>in</strong>s <strong>and</strong> ancestral l<strong>and</strong>s <strong>in</strong> <strong>the</strong> proposed coverage<br />
16
of <strong>the</strong> Bangsamoro homel<strong>and</strong>. The statement said that <strong>the</strong> agreements would not be a guarantee for<br />
peace <strong>and</strong> unity between Muslims <strong>and</strong> <strong>in</strong>digenous peoples 88 <strong>and</strong> called on <strong>the</strong> government of <strong>the</strong><br />
Philipp<strong>in</strong>es, <strong>the</strong> MILF <strong>and</strong> <strong>the</strong> Malaysian government, which is mediat<strong>in</strong>g <strong>the</strong> talks, to give<br />
‘considerable attention’ to <strong>the</strong>ir position if <strong>the</strong>y wish to achieve a last<strong>in</strong>g peace.<br />
3.9. Economic model<br />
The government of <strong>the</strong> Philipp<strong>in</strong>es is promot<strong>in</strong>g m<strong>in</strong><strong>in</strong>g as ‘assist<strong>in</strong>g <strong>in</strong> <strong>the</strong> Government’s program on<br />
poverty alleviation <strong>and</strong> contribut<strong>in</strong>g to <strong>the</strong> general economic well be<strong>in</strong>g of <strong>the</strong> nation’. 89 Despite this<br />
laudable goal <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team found scant evidence of m<strong>in</strong><strong>in</strong>g benefit<strong>in</strong>g <strong>the</strong> local poor or <strong>the</strong><br />
country’s economy as a whole. Evidence seemed ra<strong>the</strong>r to po<strong>in</strong>t to <strong>the</strong> contrary. Examples <strong>in</strong>clude<br />
Mar<strong>in</strong>duque <strong>and</strong> Benguet, whose experiences have been well documented. Despite <strong>the</strong>ir past<br />
<strong>in</strong>ternational importance as m<strong>in</strong><strong>in</strong>g areas, <strong>the</strong>y rema<strong>in</strong> among <strong>the</strong> poorest regions <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es. 90<br />
At a macro level <strong>the</strong> figures presented by <strong>the</strong> National Economic Development Authority (NEDA)<br />
<strong>and</strong> <strong>the</strong> M<strong>in</strong>es <strong>and</strong> Geosciences Bureau (MGB) make a less than compell<strong>in</strong>g case for m<strong>in</strong><strong>in</strong>g. NEDA<br />
based its economic forecasts for <strong>the</strong> total benefit of proposed m<strong>in</strong><strong>in</strong>g operations on <strong>the</strong> commercial<br />
figures produced by m<strong>in</strong><strong>in</strong>g companies to generate <strong>in</strong>vestment. These figures are not regarded as<br />
reliable forecasts of actual earn<strong>in</strong>gs with<strong>in</strong> <strong>the</strong> m<strong>in</strong><strong>in</strong>g sector itself, nor do <strong>the</strong>y take account of <strong>the</strong><br />
costs that will have to be borne by <strong>the</strong> taxpayer to facilitate <strong>the</strong> m<strong>in</strong><strong>in</strong>g sector or <strong>the</strong> cost of <strong>the</strong><br />
environmental <strong>and</strong> social legacies often left beh<strong>in</strong>d by m<strong>in</strong><strong>in</strong>g companies.<br />
The NEDA / MGB figures, listed <strong>in</strong> <strong>the</strong> 2004 – 2010 Presidents Ten-Po<strong>in</strong>t Legacy, for <strong>the</strong> 23 priority<br />
m<strong>in</strong><strong>in</strong>g projects show a total annual cumulative revenue (before <strong>in</strong>centives) of $135m 91 . When<br />
<strong>in</strong>centives are factored <strong>in</strong>, <strong>the</strong> total revenues drop significantly – <strong>in</strong> some cases close to zero.<br />
Accord<strong>in</strong>g to <strong>the</strong> CEO of Climax <strong>M<strong>in</strong><strong>in</strong>g</strong> Limited, a subsidiary of Climax <strong>M<strong>in</strong><strong>in</strong>g</strong> an Australian<br />
company, 92 <strong>the</strong> conditions offered with <strong>the</strong> F<strong>in</strong>ancial <strong>and</strong> Technical Assistance Agreement (FTAA) to<br />
foreign firms are ‘sweet <strong>and</strong> very attractive’ <strong>and</strong> ‘effectively tax free for <strong>the</strong> first five years’. In<br />
addition to tax holidays, foreign firms are entitled to full repatriation of profits. 93 With many project<br />
life spans rang<strong>in</strong>g from five to 20 years <strong>the</strong> macro-economic ga<strong>in</strong>s to <strong>the</strong> Philipp<strong>in</strong>es are far from<br />
evident.<br />
This conclusion is borne out by numerous <strong>in</strong>ternational empirical studies regard<strong>in</strong>g <strong>the</strong> macroeconomic<br />
impacts of m<strong>in</strong><strong>in</strong>g <strong>and</strong> was also recently reiterated by <strong>the</strong> 2005 United Nations Conference<br />
on Trade <strong>and</strong> Development report <strong>in</strong> <strong>the</strong> context of similar policies on m<strong>in</strong><strong>in</strong>g <strong>in</strong> Africa. 94 Macroeconomic<br />
benefits were shown to be m<strong>in</strong>imal, ow<strong>in</strong>g to such factors as dependency on exports with<br />
no process<strong>in</strong>g of raw m<strong>in</strong>erals, low employment due to <strong>the</strong> technology-<strong>in</strong>tensive nature of large-scale<br />
m<strong>in</strong><strong>in</strong>g, costs associated with social <strong>and</strong> environmental damage <strong>and</strong> low tax rates comb<strong>in</strong>ed with<br />
large f<strong>in</strong>ancial <strong>in</strong>centives for m<strong>in</strong><strong>in</strong>g companies. 95<br />
Accord<strong>in</strong>g to an Oxfam study <strong>and</strong> o<strong>the</strong>r academic reviews, at <strong>the</strong> micro level ‘historic m<strong>in</strong><strong>in</strong>g regions<br />
have become synonymous with persistent poverty, not prosperity’ 96 . In <strong>the</strong> Philipp<strong>in</strong>es <strong>the</strong> negative<br />
social, environmental <strong>and</strong> cultural impact of m<strong>in</strong><strong>in</strong>g reported at local level <strong>in</strong>clude militarization,<br />
human rights abuses, pollution <strong>and</strong> <strong>the</strong> destruction of <strong>in</strong>digenous communities. The livelihoods of<br />
farmers <strong>and</strong> fishermen are affected by pollution. Small-scale m<strong>in</strong>ers are displaced by large-scale<br />
operations, often with <strong>the</strong> net result of fewer jobs. 97 <strong>M<strong>in</strong><strong>in</strong>g</strong> communities that <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team<br />
spoke to said that those employed by <strong>the</strong> m<strong>in</strong>es <strong>in</strong>clude many who come from outside <strong>the</strong> local<br />
communities, but are skilled.<br />
<strong>M<strong>in</strong><strong>in</strong>g</strong> policies <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es are directed towards <strong>the</strong> export of m<strong>in</strong>erals. As contemporary<br />
m<strong>in</strong><strong>in</strong>g is highly capital <strong>in</strong>tensive, its ability to create jobs would appear limited.<br />
17
The fact-f<strong>in</strong>d<strong>in</strong>g team requested economic models provid<strong>in</strong>g projections of <strong>in</strong>come from m<strong>in</strong><strong>in</strong>g from<br />
government agencies, <strong>the</strong> World Bank <strong>and</strong> <strong>the</strong> Chamber of M<strong>in</strong>es. Apart from <strong>the</strong> NEDA / MGB<br />
figures for <strong>the</strong> 23 priority m<strong>in</strong>es, none were forthcom<strong>in</strong>g. Philip Romualdez, President of <strong>the</strong><br />
Chamber of M<strong>in</strong>es <strong>and</strong> CEO of Benguet <strong>M<strong>in</strong><strong>in</strong>g</strong> Corp, accredited with ‘almost s<strong>in</strong>gle h<strong>and</strong>edly<br />
spearhead<strong>in</strong>g <strong>the</strong> revival of local m<strong>in</strong><strong>in</strong>g through aggressive road-shows’ 98 was asked, dur<strong>in</strong>g a<br />
meet<strong>in</strong>g with <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team <strong>and</strong> o<strong>the</strong>rs at <strong>the</strong> British embassy, what <strong>the</strong> economic benefits to<br />
<strong>the</strong> country <strong>and</strong> local people were. He replied that it was ‘impossible to answer’ <strong>and</strong> could be known<br />
only once m<strong>in</strong><strong>in</strong>g had been carried out. It would appear that <strong>in</strong> effect <strong>the</strong> people of <strong>the</strong> Philipp<strong>in</strong>es are<br />
be<strong>in</strong>g asked to risk <strong>the</strong>ir natural resources, biodiversity, livelihoods <strong>and</strong> culture with little <strong>in</strong>dication<br />
of what <strong>the</strong> benefits will be <strong>and</strong> no estimation of <strong>the</strong> costs for <strong>the</strong>m.<br />
The Supreme Court, <strong>in</strong> overturn<strong>in</strong>g its orig<strong>in</strong>al decision declar<strong>in</strong>g provisions of <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Act as<br />
unconstitutional, 99 based its decision on claimed economic benefits of FTAAs, which allow 100%<br />
foreign ownership, on <strong>the</strong> argument that <strong>the</strong> additional government share of net m<strong>in</strong><strong>in</strong>g revenues<br />
compensates for <strong>the</strong> low tax rates <strong>and</strong> high <strong>in</strong>centives. However, <strong>the</strong>re is widespread skepticism that<br />
this will yield <strong>the</strong> revenue shar<strong>in</strong>g expected by <strong>the</strong> Court. 100 A manifestation of this skepticism was<br />
seen <strong>in</strong> <strong>the</strong> Rapu-Rapu Fact F<strong>in</strong>d<strong>in</strong>g Commission report which recommended an <strong>in</strong>vestigation of<br />
Lafayette Philipp<strong>in</strong>es Incorporated ‘for possible underreport<strong>in</strong>g of ore/processed’ 101 which <strong>the</strong><br />
Commission claimed had impacted on <strong>the</strong> tax due. The DENR committed to follow<strong>in</strong>g up on <strong>the</strong><br />
Rapu-Rapu Commissions recommendation by forward<strong>in</strong>g <strong>the</strong> request to <strong>in</strong>vestigate <strong>the</strong> alleged<br />
underreport<strong>in</strong>g of ore to <strong>the</strong> Bureau of Internal Revenue 102 .<br />
On <strong>the</strong> evidence available to it, <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team has strong grounds to believe that:<br />
• Large-scale, technologically sophisticated m<strong>in</strong><strong>in</strong>g appears unlikely to lead to job creation.<br />
There is considerable basis for <strong>the</strong> fear that more livelihoods will be destroyed (through<br />
damage to agricultural l<strong>and</strong> <strong>and</strong> fisheries, <strong>and</strong> displacement of small-sale m<strong>in</strong>ers) than new<br />
jobs created.<br />
• It seems clear that revenues to <strong>the</strong> state, once <strong>in</strong>centives have been accounted for, will be<br />
substantially less than expected.<br />
• Based on all past experience, affected poor <strong>and</strong> <strong>in</strong>digenous communities on site <strong>and</strong><br />
downstream will be worse off. The fact-f<strong>in</strong>d<strong>in</strong>g team was not conv<strong>in</strong>ced that royalty payments<br />
would adequately offset such impacts. They rema<strong>in</strong> concerned that <strong>the</strong> management of<br />
royalty payments was lack<strong>in</strong>g <strong>in</strong> transparency <strong>and</strong> participation, <strong>and</strong> might become a source<br />
of corruption <strong>and</strong> conflict.<br />
3.9.1. Alternative economic <strong>and</strong> susta<strong>in</strong>able development models<br />
The above economic analysis does not address <strong>the</strong> potential negative impacts of m<strong>in</strong><strong>in</strong>g. Damage<br />
caused by pollution <strong>and</strong> m<strong>in</strong><strong>in</strong>g disasters, if a cost can be fully estimated, could run <strong>in</strong>to billions of<br />
dollars. Nor does <strong>the</strong> macro-economic analysis look at <strong>the</strong> alternative sources of revenue available to<br />
<strong>the</strong> Philipp<strong>in</strong>es, a country rich <strong>in</strong> renewable natural resources. The World Bank has identified tourism<br />
<strong>and</strong> agriculture as be<strong>in</strong>g major potential growth areas. It has also stated that, for this potential to be<br />
realized, environmental protection is essential. To put this <strong>in</strong>to context, <strong>the</strong> World Bank estimates that<br />
<strong>the</strong> damage currently be<strong>in</strong>g done to <strong>the</strong> Philipp<strong>in</strong>e economy as a result of water pollution alone, is<br />
about $1.3 billion a year. 103 This is prior to m<strong>in</strong><strong>in</strong>g expansion. There is a serious need to revise exist<strong>in</strong>g<br />
policies, programmes <strong>and</strong> projects, <strong>in</strong> particular those perta<strong>in</strong><strong>in</strong>g to m<strong>in</strong><strong>in</strong>g, to br<strong>in</strong>g <strong>the</strong>m <strong>in</strong>to l<strong>in</strong>e<br />
with susta<strong>in</strong>able development commitments. (see Appendix 10 Maps of Mar<strong>in</strong>e <strong>and</strong> Terrestrial<br />
Conservation Priorities <strong>and</strong> Appendix 11 Gross Value Added <strong>in</strong> Agriculture, Fisheries <strong>and</strong> Forestry).<br />
The Long-Term Philipp<strong>in</strong>e Development Plan (LTPDP), 2000-2025 (Plan 21), if effectively<br />
implemented, would require susta<strong>in</strong>able development programs to be <strong>in</strong>tegrated <strong>in</strong>to <strong>the</strong> decision-<br />
18
mak<strong>in</strong>g process of all government departments <strong>and</strong> agencies at national <strong>and</strong> local levels. Do<strong>in</strong>g so<br />
would raise <strong>in</strong>herent contradictions between <strong>the</strong> promotion of current m<strong>in</strong><strong>in</strong>g policy <strong>and</strong> <strong>the</strong> nation’s<br />
bluepr<strong>in</strong>t for susta<strong>in</strong>able development. This proved to be <strong>the</strong> case <strong>in</strong> M<strong>in</strong>doro Oriental, where <strong>the</strong><br />
national government’s promotion of <strong>the</strong> m<strong>in</strong><strong>in</strong>g agenda clashed with <strong>the</strong> local government’s Agenda<br />
21 plan based on fisheries, farm<strong>in</strong>g <strong>and</strong> tourism.<br />
The Philipp<strong>in</strong>es has a range of options for susta<strong>in</strong>able economic expansion. Its rich mar<strong>in</strong>e resources,<br />
its beautiful countryside <strong>and</strong> beaches <strong>and</strong> its young, educated, English-speak<strong>in</strong>g workforce are but a<br />
few of its many assets. The options <strong>in</strong>clude mak<strong>in</strong>g greater use of mar<strong>in</strong>e resources, meet<strong>in</strong>g <strong>the</strong><br />
grow<strong>in</strong>g global dem<strong>and</strong> for organic produce, <strong>and</strong> capitaliz<strong>in</strong>g on biodiversity through bioprospect<strong>in</strong>g<br />
<strong>and</strong> Payments for Environmental Services (PESs). <strong>M<strong>in</strong><strong>in</strong>g</strong>, as currently proposed, could<br />
place all of <strong>the</strong>se alternative sources of long-term susta<strong>in</strong>able revenue at risk.<br />
In <strong>the</strong> context of <strong>in</strong>digenous peoples susta<strong>in</strong>able development <strong>the</strong> NCIP is required to provide<br />
assistance <strong>in</strong> <strong>the</strong> formulation of Ancestral Doma<strong>in</strong> Susta<strong>in</strong>able Development <strong>and</strong> Protection Plans<br />
(ADSDPP) to <strong>in</strong>digenous peoples. 104 The purpose of <strong>the</strong>se plans is to <strong>in</strong>volve <strong>in</strong>digenous peoples <strong>in</strong><br />
<strong>the</strong> ‘susta<strong>in</strong>able management <strong>and</strong> development of <strong>the</strong> l<strong>and</strong> <strong>and</strong> natural resources’ based on <strong>the</strong><br />
pr<strong>in</strong>ciple of self-determ<strong>in</strong>ation. Preparation of ADSDPPs address<strong>in</strong>g <strong>the</strong> range of economic<br />
opportunities available to <strong>in</strong>digenous peoples would help provide a basis on which <strong>in</strong>formed<br />
decisions on <strong>the</strong> available options – potentially <strong>in</strong>clud<strong>in</strong>g large- or small-scale m<strong>in</strong><strong>in</strong>g – could be<br />
reached <strong>in</strong> a mean<strong>in</strong>gful FPIC process. The team was <strong>in</strong>formed by <strong>in</strong>digenous groups that <strong>in</strong> certa<strong>in</strong><br />
cases ADSDPPs were be<strong>in</strong>g formulated by <strong>and</strong> with m<strong>in</strong><strong>in</strong>g companies, someth<strong>in</strong>g <strong>the</strong>y regarded as a<br />
disturb<strong>in</strong>g abuse of <strong>the</strong> process. 105<br />
Small-scale m<strong>in</strong>ers<br />
The EIR has recommended that greater attention be paid to small-scale m<strong>in</strong><strong>in</strong>g by <strong>the</strong> World<br />
Bank. 106 It was noted that <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es <strong>the</strong> government has taken some steps <strong>in</strong> this direction.<br />
However, based on <strong>the</strong>ir meet<strong>in</strong>gs with small-scale m<strong>in</strong>ers <strong>in</strong> Libay <strong>and</strong> discussions with civil<br />
society, <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team urges <strong>the</strong> government of <strong>the</strong> Philipp<strong>in</strong>e to do more <strong>in</strong> this regard,<br />
particularly towards <strong>the</strong> poorest <strong>in</strong> <strong>the</strong> sector.<br />
It has been estimated that <strong>the</strong>re are at least 300,000 small-scale m<strong>in</strong>ers currently <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es. 107<br />
The probable displacement of <strong>the</strong>se m<strong>in</strong>ers by commercial large-scale projects is omitted from <strong>the</strong><br />
figures for employment generation estimated by <strong>the</strong> MGB <strong>and</strong> NEDA. Based on past experience it is<br />
reasonable to assume that <strong>the</strong> number of jobs ‘created’ by large-scale, technology-<strong>in</strong>tensive, open-pit<br />
m<strong>in</strong><strong>in</strong>g will at best equal, <strong>and</strong> most probably fall short of, <strong>the</strong> number of small-scale m<strong>in</strong>ers<br />
displaced to facilitate it. 108 In some cases <strong>the</strong>se small-scale m<strong>in</strong>ers are <strong>in</strong>digenous people resid<strong>in</strong>g on<br />
<strong>the</strong>ir ancestral doma<strong>in</strong>s. 109 Currently relatively little assistance is provided to small-scale m<strong>in</strong>ers by<br />
<strong>the</strong> government, with priority given to large, foreign-owned firms. 110 In <strong>the</strong> Philipp<strong>in</strong>es <strong>the</strong> open<strong>in</strong>g<br />
up of m<strong>in</strong><strong>in</strong>g to foreign corporations has resulted <strong>in</strong> <strong>in</strong>creas<strong>in</strong>g confrontations between <strong>the</strong>se<br />
companies <strong>and</strong> small-scale m<strong>in</strong>ers. Accord<strong>in</strong>g to accounts received (from Canatuan <strong>and</strong> elsewhere)<br />
<strong>the</strong>ir tunnels were bulldozed, <strong>the</strong>y were prohibited from enter<strong>in</strong>g <strong>the</strong>ir traditional m<strong>in</strong><strong>in</strong>g areas or<br />
ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g <strong>the</strong>ir houses <strong>the</strong>re, <strong>and</strong> as a result <strong>the</strong>y have been displaced. Some have been evicted by<br />
force. Protests by small-scale m<strong>in</strong>ers have been met with human rights violations, <strong>in</strong>clud<strong>in</strong>g<br />
blockades to control <strong>the</strong> entry of goods, food <strong>and</strong> people, <strong>and</strong> a series of shoot<strong>in</strong>g <strong>in</strong>cidents, violence<br />
<strong>and</strong> threats by security firms work<strong>in</strong>g for m<strong>in</strong><strong>in</strong>g corporations. 111<br />
Small-scale gold m<strong>in</strong><strong>in</strong>g can be dangerous <strong>and</strong> environmentally damag<strong>in</strong>g. It tends to follow visible<br />
high-grade gold ore, <strong>in</strong> contrast to open-cast methods which are extensive <strong>and</strong> generate large<br />
volumes of waste. However small-scale m<strong>in</strong><strong>in</strong>g is already clearly an important rural employer. If<br />
managed appropriately with technical <strong>and</strong> f<strong>in</strong>ancial assistance, SSM has <strong>the</strong> potential to make a<br />
significant contribution to rural livelihoods <strong>and</strong> poverty reduction, without <strong>the</strong> massive social <strong>and</strong><br />
environmental disturbances of large-scale m<strong>in</strong><strong>in</strong>g.<br />
19
4. Conclusion<br />
The Philipp<strong>in</strong>es is globally important as a centre of biological diversity. Additionally many poor<br />
people depend on <strong>the</strong> environment <strong>and</strong> its bounty to susta<strong>in</strong> <strong>the</strong>ir lives. The economic, cultural <strong>and</strong><br />
spiritual potential of Philipp<strong>in</strong>e biodiversity for <strong>the</strong> future of <strong>the</strong> nation <strong>and</strong> especially its poorest<br />
citizens, should be given priority <strong>in</strong> plann<strong>in</strong>g for <strong>the</strong> future.<br />
In her <strong>in</strong>auguration speech <strong>in</strong> 2004 <strong>the</strong> Philipp<strong>in</strong>es President, Gloria Macapagal-Arroyo, promised ‘a<br />
pro-poor agenda that will lift up our poorest bro<strong>the</strong>rs <strong>and</strong> sisters, <strong>in</strong>vest <strong>the</strong>m with dignity, imbue<br />
<strong>the</strong>m with hope’. 112 Unfortunately, far from uplift<strong>in</strong>g <strong>the</strong> poor <strong>and</strong> imbu<strong>in</strong>g <strong>the</strong>m with hope, <strong>the</strong><br />
current adm<strong>in</strong>istration’s promotion of m<strong>in</strong><strong>in</strong>g appears to threaten exactly <strong>the</strong> opposite.<br />
S<strong>in</strong>ce <strong>the</strong> overthrow of <strong>the</strong> Marcos dictatorship <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es <strong>in</strong> 1986 <strong>the</strong> Filip<strong>in</strong>o nation has been<br />
struggl<strong>in</strong>g with <strong>the</strong> legacies of debt, corruption, over exploitation of natural resources <strong>and</strong><br />
militarization which underp<strong>in</strong>ned <strong>the</strong> Marcos regime.<br />
Lessons should be learned from <strong>the</strong> past. In <strong>the</strong> 1960s <strong>and</strong> 70s - <strong>and</strong> particularly dur<strong>in</strong>g <strong>the</strong> Marcos<br />
regime - <strong>the</strong> World Bank promoted a development path through <strong>the</strong> exploitation of Philipp<strong>in</strong>e natural<br />
wealth <strong>in</strong> <strong>the</strong> form of <strong>the</strong> rapid development of logg<strong>in</strong>g. The result was that major logg<strong>in</strong>g projects<br />
destroyed much of <strong>the</strong> country’s tropical forests <strong>and</strong> benefited only around 65 elite families 113 while<br />
impoverish<strong>in</strong>g <strong>in</strong>digenous <strong>and</strong> o<strong>the</strong>r poor communities whose liv<strong>in</strong>g depended upon <strong>the</strong> forest <strong>and</strong><br />
its rivers.<br />
<strong>M<strong>in</strong><strong>in</strong>g</strong>, as it is currently envisaged, is perceived by many as a repeat of <strong>the</strong> logg<strong>in</strong>g experience.<br />
People frequently reported to <strong>the</strong> FFT that <strong>the</strong>y feared that m<strong>in</strong><strong>in</strong>g threatens major environmental<br />
destruction <strong>and</strong> <strong>the</strong> fur<strong>the</strong>r impoverishment of <strong>the</strong> majority to <strong>the</strong> benefit of only a few. This has led<br />
to <strong>the</strong> wide scale opposition to m<strong>in</strong><strong>in</strong>g of those who once aga<strong>in</strong> see <strong>the</strong>ir l<strong>and</strong>s <strong>and</strong> future threatened.<br />
Significant changes <strong>in</strong> perception, practice <strong>and</strong> outcomes are essential if <strong>the</strong> concerned communities<br />
are ever to consider m<strong>in</strong><strong>in</strong>g as anyth<strong>in</strong>g more than a curse. Such changes would almost <strong>in</strong>evitably<br />
<strong>in</strong>clude a major scal<strong>in</strong>g back of current proposals for m<strong>in</strong><strong>in</strong>g expansion, <strong>and</strong> <strong>the</strong> streng<strong>the</strong>n<strong>in</strong>g of <strong>the</strong><br />
legal framework. There are frequent calls for a moratorium on all m<strong>in</strong><strong>in</strong>g.<br />
The Philipp<strong>in</strong>es is to be congratulated for some of <strong>the</strong> steps it has taken. The 1987 Philipp<strong>in</strong>e<br />
Constitution was a historic step, <strong>in</strong> its recognition of <strong>the</strong> historical <strong>in</strong>justice to <strong>in</strong>digenous peoples <strong>and</strong><br />
<strong>the</strong> f<strong>in</strong>al recognition of <strong>the</strong>ir l<strong>and</strong> rights. The passage of <strong>the</strong> 1991 Local Government Code, <strong>the</strong> 1997<br />
Indigenous Peoples Rights Act (IPRA) <strong>and</strong> <strong>the</strong> formation of <strong>the</strong> Philipp<strong>in</strong>e Council for Susta<strong>in</strong>able<br />
Development have all been welcomed, both nationally <strong>and</strong> <strong>in</strong>ternationally.<br />
However <strong>the</strong> FFT was concerned by accounts of <strong>the</strong> disparity between <strong>the</strong> provisions of <strong>the</strong> legal<br />
framework for <strong>the</strong> protection <strong>and</strong> exercise of <strong>the</strong> rights of local communities <strong>and</strong> Indigenous Peoples,<br />
<strong>and</strong> <strong>the</strong> negative practical experience of those who seek to exercise <strong>the</strong>ir rights aga<strong>in</strong>st m<strong>in</strong><strong>in</strong>g<br />
proposals. In particular <strong>the</strong> welcome <strong>and</strong> important provision for Free Prior Informed Consent is,<br />
accord<strong>in</strong>g to accounts received be<strong>in</strong>g subjected to manipulation <strong>and</strong> misuse to <strong>the</strong> benefit of m<strong>in</strong><strong>in</strong>g<br />
<strong>in</strong>terests, result<strong>in</strong>g <strong>in</strong> division, conflict <strong>and</strong> dispossession for <strong>the</strong> affected communities. The FFT was<br />
not <strong>in</strong> a position to ascerta<strong>in</strong> conclusively <strong>the</strong> full circumstances <strong>in</strong> each of several cases presented to<br />
<strong>the</strong>m, but did note <strong>the</strong> similar <strong>and</strong> disturb<strong>in</strong>g compla<strong>in</strong>ts of various diverse communities.<br />
The FFT was also concerned that laws formulated to safeguard respect for <strong>the</strong> decisions of local<br />
communities <strong>and</strong> <strong>in</strong>digenous peoples are be<strong>in</strong>g implemented through more recent fast track<br />
Implement<strong>in</strong>g Rules <strong>and</strong> Regulations that seem to work <strong>in</strong> contradiction to <strong>the</strong> spirit <strong>and</strong> purpose of<br />
20
<strong>the</strong> orig<strong>in</strong>al law. Fur<strong>the</strong>r, <strong>the</strong>y are be<strong>in</strong>g implemented <strong>in</strong> ways, seen by affected communities, as<br />
be<strong>in</strong>g both arbitrary <strong>and</strong> biased <strong>in</strong> favor of m<strong>in</strong><strong>in</strong>g <strong>in</strong>terests.<br />
The Philipp<strong>in</strong>es is a deeply <strong>in</strong>debted country. It is clear that <strong>the</strong> national m<strong>in</strong>eral wealth is perceived<br />
as one means to reduce such debt <strong>and</strong> improve <strong>the</strong> economic situation. Hence <strong>the</strong> <strong>in</strong>ternational<br />
community bears a direct responsibility for <strong>the</strong> current thrust for m<strong>in</strong><strong>in</strong>g expansion <strong>in</strong> <strong>the</strong><br />
Philipp<strong>in</strong>es. The current policies were formulated <strong>and</strong> are be<strong>in</strong>g implemented under <strong>the</strong> guidance of<br />
<strong>the</strong> World Bank <strong>and</strong> o<strong>the</strong>r <strong>in</strong>ternational <strong>in</strong>stitutions, f<strong>in</strong>anciers, m<strong>in</strong><strong>in</strong>g companies <strong>and</strong> <strong>in</strong>vestors, with<br />
<strong>the</strong> support of <strong>the</strong> home countries of m<strong>in</strong><strong>in</strong>g companies. In so do<strong>in</strong>g, <strong>the</strong>se <strong>in</strong>stitutions have, <strong>in</strong> <strong>the</strong><br />
view of <strong>the</strong> FFT, paid <strong>in</strong>sufficient attention to <strong>the</strong> potential negative impacts of large-scale m<strong>in</strong><strong>in</strong>g on<br />
<strong>the</strong> poor <strong>and</strong> marg<strong>in</strong>al. These negative consequences are <strong>the</strong>refore also, <strong>in</strong> our view, a shared<br />
responsibility. If <strong>the</strong> problems are to be overcome <strong>the</strong> <strong>in</strong>ternational community will need to share <strong>the</strong><br />
responsibility <strong>and</strong> act to avoid any future occurrence.<br />
The World Bank has actively promoted m<strong>in</strong><strong>in</strong>g law liberalization <strong>and</strong> m<strong>in</strong><strong>in</strong>g development <strong>in</strong> <strong>the</strong><br />
Philipp<strong>in</strong>es for more than 15 years. It has done this despite substantial evidence of <strong>the</strong> adverse<br />
impacts of <strong>the</strong>se policies <strong>and</strong> <strong>in</strong> contradiction of <strong>the</strong> stated objectives of <strong>the</strong> Bank to promote<br />
susta<strong>in</strong>able development <strong>and</strong> alleviate poverty. The Bank has failed to adequately consider or<br />
safeguard <strong>the</strong> <strong>in</strong>terests of <strong>the</strong> poor <strong>and</strong> marg<strong>in</strong>al - <strong>in</strong>clud<strong>in</strong>g <strong>in</strong>digenous peoples - <strong>in</strong> its promotion of<br />
m<strong>in</strong><strong>in</strong>g. The Bank has also failed to implement <strong>the</strong> recommendations of <strong>the</strong> Extractive Industry<br />
Review which it f<strong>in</strong>anced. Similar conclusions regard<strong>in</strong>g m<strong>in</strong><strong>in</strong>g policy were reached <strong>in</strong> a 2005<br />
UNCTAD report address<strong>in</strong>g m<strong>in</strong><strong>in</strong>g <strong>in</strong> Africa. It described export-orientated, foreign direct<br />
<strong>in</strong>vestment driven m<strong>in</strong><strong>in</strong>g as a “W<strong>in</strong>ners Curse” 114 . From what we have seen, <strong>the</strong> conditions lead<strong>in</strong>g<br />
to this “W<strong>in</strong>ners Curse” also exist <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es. In its operations <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es <strong>the</strong> FFT<br />
believes <strong>the</strong> Bank has failed to adhere to its own guidel<strong>in</strong>es, safeguards <strong>and</strong> directives as well as its<br />
obligations under <strong>in</strong>ternational law. Its policy recommendations on m<strong>in</strong><strong>in</strong>g are also tend<strong>in</strong>g to<br />
subvert <strong>the</strong> national legal protective framework <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es on issues of susta<strong>in</strong>able<br />
development <strong>and</strong> especially <strong>the</strong> protection of <strong>in</strong>digenous peoples’ rights.<br />
The home countries of m<strong>in</strong><strong>in</strong>g companies need to hold <strong>the</strong>ir corporations to account. <strong>M<strong>in</strong><strong>in</strong>g</strong><br />
companies need to act more responsibly <strong>and</strong> as a m<strong>in</strong>imum adhere to national <strong>and</strong> <strong>in</strong>ternational laws<br />
<strong>and</strong> <strong>in</strong>ternational best practice. Despite rhetoric to <strong>the</strong> contrary it is clear that this is not currently<br />
occurr<strong>in</strong>g. Governments that seek to benefit from a globalized economy should also provide, with<strong>in</strong><br />
<strong>the</strong>ir political processes <strong>and</strong> courts, for adequate means to raise concerns <strong>and</strong> ga<strong>in</strong> redress if <strong>and</strong><br />
where adequate st<strong>and</strong>ards are not ma<strong>in</strong>ta<strong>in</strong>ed <strong>in</strong> overseas operations. The <strong>in</strong>ternational community<br />
fur<strong>the</strong>r needs to ensure that its <strong>in</strong>ternational f<strong>in</strong>ance <strong>in</strong>stitutions better translate <strong>the</strong>ir <strong>in</strong>ternal policy<br />
priorities <strong>in</strong>to practice. Donor countries concerned for <strong>the</strong> future of <strong>the</strong> Philipp<strong>in</strong>es, <strong>in</strong>clud<strong>in</strong>g <strong>the</strong> EU,<br />
should ensure that <strong>the</strong>ir development programs live up to <strong>the</strong>ir rhetoric on <strong>in</strong>digenous peoples’<br />
rights, pro-poor development <strong>and</strong> environmental protection.<br />
The massive scale of m<strong>in</strong><strong>in</strong>g expansion proposed for <strong>the</strong> Philipp<strong>in</strong>es <strong>in</strong>evitably generates concern <strong>and</strong><br />
opposition. The shift <strong>in</strong> <strong>the</strong> position of <strong>the</strong> government from regulator to active promoter <strong>and</strong><br />
advocate of m<strong>in</strong><strong>in</strong>g has also added to this concern. It is clear to <strong>the</strong> FFT that <strong>the</strong> active promotion by<br />
government of <strong>the</strong> m<strong>in</strong><strong>in</strong>g <strong>in</strong>dustry, <strong>and</strong> <strong>the</strong> subsequent foreign led m<strong>in</strong><strong>in</strong>g boom, has damaged <strong>the</strong><br />
st<strong>and</strong><strong>in</strong>g <strong>and</strong> credibility of government <strong>in</strong> many affected rural communities who fear <strong>and</strong> oppose<br />
m<strong>in</strong><strong>in</strong>g. To restore public confidence <strong>the</strong> Philipp<strong>in</strong>es government should demonstrate more clearly<br />
that it is committed to uphold<strong>in</strong>g its own national laws, <strong>in</strong>clud<strong>in</strong>g <strong>the</strong> IPRA <strong>and</strong> Local Government<br />
Code. It should also prioritize its <strong>in</strong>ternational obligations to human rights, even where <strong>the</strong>se might<br />
be seen to negatively impact on private <strong>in</strong>vestors.<br />
In this regard <strong>the</strong> Philipp<strong>in</strong>e Government needs to ma<strong>in</strong>ta<strong>in</strong> adequate st<strong>and</strong>ards of environmental<br />
<strong>and</strong> human rights protection. Unfortunately, <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>e context - of high population density,<br />
21
typhoons, heavy seasonal ra<strong>in</strong>s <strong>and</strong> <strong>the</strong> constant danger of seismic activity – it is not clear whe<strong>the</strong>r or<br />
not ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g <strong>the</strong>se precautionary st<strong>and</strong>ards is with<strong>in</strong> <strong>the</strong> technical <strong>and</strong> f<strong>in</strong>ancial capacity of<br />
current best practice <strong>in</strong> <strong>the</strong> global m<strong>in</strong><strong>in</strong>g <strong>in</strong>dustry. What is blatantly clear, however, is that many<br />
m<strong>in</strong>es <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es - <strong>in</strong>clud<strong>in</strong>g those most recently opened at Rapu-Rapu, Canatuan <strong>and</strong> Sibutad<br />
- have negatively impacted on <strong>the</strong> environment <strong>and</strong> have seriously adversely affected significant<br />
sectors of <strong>the</strong> poorest communities liv<strong>in</strong>g nearby.<br />
Treat <strong>the</strong> earth well: it was not given to you by your parents, it was loaned to you by your children.<br />
We do not <strong>in</strong>herit <strong>the</strong> Earth from our Ancestors, we borrow it from our Children. Chief Seattle<br />
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5. Recommendations<br />
The FFT offers <strong>the</strong> follow<strong>in</strong>g comments <strong>and</strong> suggestions. These are <strong>in</strong>formed by our various<br />
experiences, <strong>in</strong>formants <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es, exist<strong>in</strong>g practice <strong>in</strong> o<strong>the</strong>r parts of <strong>the</strong> world <strong>and</strong> emerg<strong>in</strong>g<br />
st<strong>and</strong>ards suggested by authoritative <strong>in</strong>ternational processes 115 .<br />
The context of our comments is that <strong>the</strong> current thrust for m<strong>in</strong><strong>in</strong>g expansion <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es is<br />
clearly deeply divisive. We were profoundly disturbed <strong>and</strong> surprised by <strong>the</strong> negative impacts <strong>and</strong><br />
negative perceptions of m<strong>in</strong><strong>in</strong>g proposals <strong>and</strong> <strong>the</strong> widespread opposition to m<strong>in</strong><strong>in</strong>g <strong>in</strong> many areas.<br />
Our suggestions are focused on constructive steps to address <strong>the</strong>se widespread concerns. S<strong>in</strong>ce <strong>the</strong><br />
passage of <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Code <strong>in</strong> 1995 <strong>the</strong>re have been significant changes <strong>in</strong> <strong>the</strong> global economic <strong>and</strong><br />
environmental situation. We hope, <strong>the</strong>refore, that this is accepted as a good time for a reappraisal.<br />
The team is aware that some of its recommendations would require <strong>in</strong>creased f<strong>in</strong>anc<strong>in</strong>g. We can only<br />
observe that <strong>the</strong> potential for social division <strong>and</strong> environmental damage <strong>and</strong> impoverishment which<br />
might result from a fail<strong>in</strong>g process argue strongly for this <strong>in</strong>vestment. The f<strong>in</strong>al report of <strong>the</strong><br />
Extractive Industries Review of Dr Emil Salim 116 made <strong>the</strong> po<strong>in</strong>t that if m<strong>in</strong><strong>in</strong>g is to have beneficial<br />
outcomes for <strong>the</strong> poor <strong>the</strong>n a pre-requisite is strong checks <strong>and</strong> balances <strong>in</strong> governance that provide<br />
adequate protection for <strong>the</strong> <strong>in</strong>terests of <strong>the</strong> weak <strong>and</strong> marg<strong>in</strong>al. We support his view <strong>and</strong> we feel that<br />
<strong>in</strong>ternational, national <strong>and</strong> non-government f<strong>in</strong>ancial support should be directed to this end.<br />
It is of great concern to <strong>the</strong> FFT that <strong>the</strong> <strong>in</strong>ternational community seems, so far, to be more <strong>in</strong>terested<br />
<strong>in</strong> uncritically promot<strong>in</strong>g <strong>the</strong>ir national <strong>in</strong>vestment opportunities than fac<strong>in</strong>g up to <strong>the</strong> environmental<br />
<strong>and</strong> social damage that may result.<br />
1. Recommended urgent actions by <strong>the</strong> Philipp<strong>in</strong>e government<br />
1.1 The Philipp<strong>in</strong>e government should demonstrate that it is will<strong>in</strong>g to adhere to its own laws <strong>and</strong><br />
<strong>in</strong>ternational m<strong>in</strong><strong>in</strong>g best practice <strong>and</strong> st<strong>and</strong>ards by immediately cancel<strong>in</strong>g all current m<strong>in</strong><strong>in</strong>g<br />
applications which will <strong>in</strong>evitably cause major environmental damage to critical watersheds, ecosystems,<br />
agriculture or fisheries <strong>and</strong> result <strong>in</strong> social disruption, such as those <strong>in</strong> Midsalip visited by<br />
<strong>the</strong> team. This should <strong>in</strong>clude cases where <strong>the</strong>re is strong evidence of serious <strong>in</strong>adequacies <strong>in</strong> <strong>the</strong><br />
consultation <strong>and</strong> consent processes.<br />
Best International practice would also require:<br />
• That m<strong>in</strong><strong>in</strong>g licenses should not be issued <strong>in</strong> conflict zones as recommended by <strong>the</strong> Extractive<br />
Industry Review.<br />
• The adoption of <strong>the</strong> precautionary approach to m<strong>in</strong><strong>in</strong>g as required by <strong>the</strong> Rio Declaration -<br />
this would require a ban on submar<strong>in</strong>e <strong>and</strong> river<strong>in</strong>e tail<strong>in</strong>gs disposal <strong>and</strong> mar<strong>in</strong>e m<strong>in</strong><strong>in</strong>g.<br />
• That no fur<strong>the</strong>r m<strong>in</strong><strong>in</strong>g licenses be issued until adequate enforceable legislation <strong>and</strong> controls<br />
are put <strong>in</strong> place to protect <strong>the</strong> environment <strong>and</strong> <strong>the</strong> economic, social, cultural, civil <strong>and</strong><br />
political human rights of <strong>the</strong> <strong>in</strong>digenous peoples m<strong>in</strong><strong>in</strong>g impacted communities <strong>and</strong> <strong>the</strong> needs<br />
of future generations<br />
1.2 Regulation <strong>and</strong> redress. Effective regulation <strong>and</strong> access to redress are essential both with<strong>in</strong> <strong>and</strong><br />
outside <strong>the</strong> Philipp<strong>in</strong>es. The current trend towards self-regulation is <strong>in</strong>appropriate to <strong>the</strong> potential<br />
seriousness of m<strong>in</strong><strong>in</strong>g impacts. The shift of government from ‘regulator of m<strong>in</strong><strong>in</strong>g’ to ‘active promoter<br />
of m<strong>in</strong><strong>in</strong>g’ sets up a conflict of <strong>in</strong>terest which tends to underm<strong>in</strong>e confidence <strong>in</strong> <strong>the</strong> impartiality of<br />
government agencies, especially at <strong>the</strong> community level. We recommend that all relevant government<br />
agencies conf<strong>in</strong>e <strong>the</strong>ir activities to <strong>the</strong> impartial regulation of m<strong>in</strong><strong>in</strong>g.<br />
23
1.3 Revoke <strong>the</strong> 1995 <strong>M<strong>in</strong><strong>in</strong>g</strong> Act. Among civil society groups we met <strong>the</strong>re were repeated calls for <strong>the</strong><br />
scrapp<strong>in</strong>g of <strong>the</strong> 1995 <strong>M<strong>in</strong><strong>in</strong>g</strong> Code. We suggest, given <strong>the</strong> division <strong>and</strong> conflict associated with it,<br />
that <strong>the</strong> government heeds <strong>the</strong> calls to revoke <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Act of 1995 <strong>and</strong> enact alternative legislation<br />
to regulate m<strong>in</strong><strong>in</strong>g, based on a participatory process that more effectively protects <strong>the</strong> <strong>in</strong>terests of <strong>the</strong><br />
affected local communities, <strong>in</strong>digenous peoples <strong>and</strong> <strong>the</strong> environment.<br />
1.4 <strong>M<strong>in</strong><strong>in</strong>g</strong> Review Body. We recommend that <strong>the</strong> government establishes a credible <strong>in</strong>dependent<br />
m<strong>in</strong><strong>in</strong>g review body <strong>and</strong> subject all recently granted m<strong>in</strong><strong>in</strong>g licenses under <strong>the</strong> 1995 <strong>M<strong>in</strong><strong>in</strong>g</strong> Code to a<br />
credible <strong>in</strong>dependent review, <strong>in</strong>volv<strong>in</strong>g civil society <strong>and</strong> affected communities <strong>in</strong> <strong>the</strong> process. This<br />
review body should have <strong>the</strong> power to recommend cancellation of m<strong>in</strong><strong>in</strong>g licenses where anomalies<br />
<strong>in</strong> process or breaches <strong>in</strong> st<strong>and</strong>ards are revealed.<br />
1.5 Independent technical advice. The processes, perta<strong>in</strong><strong>in</strong>g to m<strong>in</strong><strong>in</strong>g applications <strong>and</strong> subsequent<br />
operations, would benefit greatly if communities <strong>and</strong> <strong>in</strong>digenous peoples had access to an<br />
<strong>in</strong>dependent resource pool, drawn from academia <strong>and</strong> o<strong>the</strong>r sections of civil society, to provide<br />
<strong>in</strong>dependent technical <strong>and</strong> legal advice (<strong>and</strong> where necessary legal support) throughout <strong>the</strong> life of <strong>the</strong><br />
projects. This body could also provide <strong>in</strong>formation, expertise <strong>and</strong> capacity build<strong>in</strong>g to <strong>in</strong>digenous<br />
peoples dur<strong>in</strong>g <strong>the</strong> free, prior, <strong>in</strong>formed consent process. The EU <strong>and</strong> o<strong>the</strong>r <strong>in</strong>ternational donors<br />
could assist <strong>in</strong> establish<strong>in</strong>g <strong>and</strong> fund<strong>in</strong>g an <strong>in</strong>dependent body provid<strong>in</strong>g legal <strong>and</strong> scientific advice to<br />
<strong>in</strong>digenous peoples dur<strong>in</strong>g <strong>the</strong> FPIC <strong>and</strong> ESIA processes. The body could be composed of a<br />
comb<strong>in</strong>ation of <strong>in</strong>digenous peoples’ organizations, civil society organizations <strong>and</strong> academia. For<br />
example a centre for <strong>in</strong>digenous peoples’ rights could be established with<strong>in</strong> a respected Philipp<strong>in</strong>e<br />
University.<br />
1.6 Upgrad<strong>in</strong>g <strong>and</strong> restructur<strong>in</strong>g of government departments. In l<strong>in</strong>e with best <strong>in</strong>ternational practice<br />
<strong>and</strong> <strong>the</strong> recommendations of <strong>the</strong> EIR, we urge <strong>the</strong> government to consider <strong>the</strong> restructur<strong>in</strong>g of <strong>the</strong><br />
Department of Environment <strong>and</strong> Natural Resources (DENR). This should be done to elim<strong>in</strong>ate <strong>the</strong><br />
conflict of <strong>in</strong>terest <strong>in</strong> <strong>the</strong> DENR m<strong>and</strong>ate, by divorc<strong>in</strong>g <strong>the</strong> office for approval of exploration <strong>and</strong><br />
m<strong>in</strong><strong>in</strong>g applications from <strong>the</strong> office of environmental regulation, monitor<strong>in</strong>g <strong>and</strong> legal enforcement. 117<br />
The DENR could <strong>the</strong>n better focus on <strong>the</strong> protection <strong>and</strong> development of <strong>the</strong> Philipp<strong>in</strong>e environment<br />
<strong>and</strong> renewable natural resources; while a Department of M<strong>in</strong>es, Hydrocarbons <strong>and</strong> Geosciences could<br />
deal with licens<strong>in</strong>g of m<strong>in</strong><strong>in</strong>g <strong>and</strong> hydrocarbon development <strong>and</strong> ensure compliance with <strong>the</strong> highest<br />
<strong>in</strong>ternational technical st<strong>and</strong>ards. The government should also establish an office of m<strong>in</strong><strong>in</strong>g<br />
ombudsman where any concerns <strong>and</strong> compla<strong>in</strong>ts over process <strong>and</strong> where accusations <strong>in</strong> relation to<br />
human rights, aris<strong>in</strong>g from m<strong>in</strong><strong>in</strong>g activities, might be addressed.<br />
1.7 Streng<strong>the</strong>n legal frameworks for susta<strong>in</strong>able development. Government departments, <strong>in</strong>clud<strong>in</strong>g<br />
those cover<strong>in</strong>g health, agriculture <strong>and</strong> tourism should be empowered to take appropriate action<br />
where m<strong>in</strong><strong>in</strong>g or o<strong>the</strong>r projects, threaten or cause environmental or social damage affect<strong>in</strong>g <strong>the</strong><br />
national plans towards susta<strong>in</strong>able development. The government <strong>and</strong> <strong>in</strong>ternational partners should<br />
also ensure that <strong>the</strong> DENR, <strong>and</strong> o<strong>the</strong>rs responsible for enforc<strong>in</strong>g regulations <strong>and</strong> st<strong>and</strong>ards, are<br />
allocated a sufficient budget to effectively monitor <strong>and</strong> hold companies to account.<br />
1.8 Establish an <strong>in</strong>ter-departmental coord<strong>in</strong>at<strong>in</strong>g committee to approve all extractive <strong>in</strong>dustry<br />
projects <strong>and</strong> ensure that <strong>the</strong>y meet national <strong>and</strong> <strong>in</strong>ternational environmental <strong>and</strong> social st<strong>and</strong>ards for<br />
susta<strong>in</strong>able development, <strong>in</strong>clud<strong>in</strong>g full compliance with FPIC for <strong>in</strong>digenous people <strong>and</strong> broad<br />
community consent for all affected communities. To ensure transparency <strong>and</strong> accountability, we<br />
suggest that civil society participation at committee level would be essential.<br />
1.9 Local communities <strong>and</strong> civil society The right to enjoy human rights <strong>and</strong> development are<br />
universal. We wish to encourage any <strong>and</strong> all communities adversely affected by m<strong>in</strong><strong>in</strong>g impacts to<br />
24
cont<strong>in</strong>ue to explore <strong>and</strong> pursue all avenues available with<strong>in</strong> <strong>the</strong> law at local, national <strong>and</strong><br />
<strong>in</strong>ternational levels to register <strong>the</strong>ir concerns <strong>and</strong> aspirations <strong>and</strong> seek redress for wrongs.<br />
1.10 Sign up to <strong>the</strong> Extractive Industry Transparency Initiative (EITI) <strong>and</strong> publish details of all<br />
payments, taxes <strong>and</strong> royalties made by m<strong>in</strong><strong>in</strong>g companies. Implement EITI <strong>in</strong> accordance with <strong>the</strong> six<br />
EITI criteria, ensur<strong>in</strong>g participation by self-selected representatives of civil society at each stage of <strong>the</strong><br />
process.<br />
2. Issues of environmental concern <strong>and</strong> susta<strong>in</strong>able development<br />
2.1 Biodiversity <strong>and</strong> <strong>the</strong> precautionary pr<strong>in</strong>ciple. Given <strong>the</strong> global importance of <strong>the</strong> Philipp<strong>in</strong>es as a<br />
centre of biodiversity, <strong>the</strong> past damage caused <strong>and</strong> current pressures on <strong>the</strong> Philipp<strong>in</strong>e environment,<br />
<strong>the</strong> Precautionary Pr<strong>in</strong>ciple should be applied to any m<strong>in</strong><strong>in</strong>g or o<strong>the</strong>r high impact development to<br />
ensure it only proceeds where <strong>the</strong>re will not be significant negative impact on <strong>the</strong> lives of <strong>the</strong> preexist<strong>in</strong>g<br />
population or on <strong>the</strong> environment.<br />
2.2 Access to <strong>in</strong>formation. To assist <strong>in</strong> determ<strong>in</strong><strong>in</strong>g if <strong>and</strong> where m<strong>in</strong><strong>in</strong>g might or might not take<br />
place, we suggest that both communities <strong>and</strong> government agencies are <strong>in</strong> need of more <strong>in</strong>formation<br />
<strong>in</strong>dependent of <strong>the</strong> commercial <strong>in</strong>terests of corporations. The team recommends that more effort <strong>and</strong><br />
resources be directed to <strong>the</strong> goal of provid<strong>in</strong>g timely <strong>in</strong>formation to communities. This is a<br />
recommendation directed to government, <strong>in</strong>ternational agencies <strong>and</strong> <strong>the</strong> NGO community.<br />
2.3 Strategic Environmental Appraisals (SEAs). The team notes <strong>and</strong> welcomes <strong>the</strong> provisions <strong>in</strong> <strong>the</strong><br />
<strong>M<strong>in</strong><strong>in</strong>g</strong> Code which bar m<strong>in</strong><strong>in</strong>g development from key environmental zones <strong>and</strong> ancestral l<strong>and</strong>s of<br />
<strong>in</strong>digenous peoples, but are concerned by reports of a grow<strong>in</strong>g list of exceptions. We suggest regional<br />
SEAs might be carried out by <strong>the</strong> DENR with <strong>the</strong> effective participation of civil society. Such<br />
assessments of <strong>the</strong> context <strong>and</strong> potential impact of m<strong>in</strong><strong>in</strong>g development could set <strong>the</strong> framework for<br />
all subsequent studies, ESIAs <strong>and</strong> environmental management systems. We urge <strong>in</strong>ternational<br />
donors, <strong>in</strong>clud<strong>in</strong>g <strong>the</strong> World Bank <strong>and</strong> EU, to endorse <strong>and</strong> support this approach. (See Section 3.4.2<br />
above)<br />
2.4 Prepare jo<strong>in</strong>t Environmental <strong>and</strong> Social Impact Assessments (ESIAs). ESIAs should be<br />
developed for each m<strong>in</strong><strong>in</strong>g project <strong>and</strong> proposed exploration activity. Potential social impacts can be<br />
among <strong>the</strong> most serious. We <strong>the</strong>refore recommend community participation is maximized <strong>and</strong> <strong>the</strong><br />
results be made widely available - <strong>in</strong>clud<strong>in</strong>g through <strong>the</strong> Internet - <strong>and</strong> open to <strong>in</strong>dependent<br />
verification. 118 The current potential for automatic approval of EIAs seems <strong>in</strong>appropriate to us given<br />
<strong>the</strong> potential impacts <strong>and</strong> controversy surround<strong>in</strong>g many projects. These <strong>in</strong>dependently verified<br />
ESIAs should be presented to <strong>in</strong>digenous peoples as part of <strong>the</strong> FPIC process. We urge <strong>in</strong>ternational<br />
donors <strong>in</strong>clud<strong>in</strong>g <strong>the</strong> World Bank <strong>and</strong> EU, to endorse <strong>and</strong> support this approach.<br />
2.5 Health impact. Health impact assessments should be performed <strong>and</strong> <strong>in</strong>formation provided to<br />
communities <strong>in</strong> advance of m<strong>in</strong><strong>in</strong>g operations. Monitor<strong>in</strong>g on <strong>the</strong> basis of <strong>the</strong>se base l<strong>in</strong>e studies<br />
should be conducted <strong>in</strong> <strong>the</strong> vic<strong>in</strong>ity of all m<strong>in</strong><strong>in</strong>g sites, <strong>and</strong> companies held accountable for any<br />
negative effects observed. Companies should be required to provide a bond aga<strong>in</strong>st potential health<br />
impacts. (See recommendation 5.3 below)<br />
3. International governance<br />
3.1 B<strong>in</strong>d<strong>in</strong>g frameworks. The evidence available to <strong>the</strong> FFT argues strongly for <strong>the</strong> need for b<strong>in</strong>d<strong>in</strong>g<br />
<strong>in</strong>ternational frameworks of accountability to regulate m<strong>in</strong><strong>in</strong>g, <strong>and</strong> national level access to courts <strong>and</strong><br />
o<strong>the</strong>r effective mechanisms with<strong>in</strong> <strong>the</strong> home countries of transnational m<strong>in</strong><strong>in</strong>g companies <strong>and</strong><br />
25
f<strong>in</strong>ancial <strong>in</strong>stitutions which f<strong>in</strong>ance damag<strong>in</strong>g m<strong>in</strong><strong>in</strong>g operations. We also encourage corporations<br />
<strong>and</strong> <strong>in</strong>vestors to adhere to obligations under exist<strong>in</strong>g <strong>and</strong> emerg<strong>in</strong>g <strong>in</strong>ternational law as articulated <strong>in</strong><br />
various treaties, declarations, st<strong>and</strong>ards <strong>and</strong> <strong>in</strong>ternational consultative processes: <strong>in</strong>clud<strong>in</strong>g <strong>the</strong> UN<br />
Norms on Transnational Corporations; <strong>the</strong> Declaration of Indigenous Peoples Rights; ILO Convention<br />
169; <strong>the</strong> Equator Bank Pr<strong>in</strong>ciples; <strong>the</strong> Extractive Industry Review Report; World Bank Operational<br />
Directive 4.10 <strong>and</strong> IFC Safeguard Policies; <strong>the</strong> Aarhus Pr<strong>in</strong>ciples; <strong>the</strong> OECD Guidel<strong>in</strong>es <strong>and</strong> <strong>the</strong> Aken<br />
Kon Guidel<strong>in</strong>es on <strong>the</strong> Implementation of <strong>the</strong> Convention on Biodiversity.<br />
3.2 The World Bank Group. The FFT calls on <strong>the</strong> World Bank to halt its promotion of, <strong>and</strong> support<br />
for, m<strong>in</strong><strong>in</strong>g expansion <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es under current conditions <strong>and</strong> to adhere to its stated<br />
objectives of poverty alleviation <strong>and</strong> susta<strong>in</strong>able development by:<br />
• Comply<strong>in</strong>g with recommendations of <strong>the</strong> Extractive Industry Review:<br />
• Assist<strong>in</strong>g with <strong>the</strong> implementation of <strong>the</strong> country’s susta<strong>in</strong>able development strategy by<br />
provid<strong>in</strong>g technical <strong>and</strong> f<strong>in</strong>ancial support for <strong>the</strong> protection <strong>and</strong> development of renewable<br />
resources, susta<strong>in</strong>able activities <strong>and</strong> poverty reduction programs.<br />
• Instigat<strong>in</strong>g <strong>and</strong> support<strong>in</strong>g an <strong>in</strong>dependent m<strong>in</strong><strong>in</strong>g sector review address<strong>in</strong>g <strong>the</strong> social <strong>and</strong><br />
environmental problems that have been identified.<br />
• Support<strong>in</strong>g an economic analysis of <strong>the</strong> revenues from m<strong>in</strong><strong>in</strong>g based on <strong>the</strong> current tax<br />
<strong>in</strong>centives <strong>and</strong> revenue shar<strong>in</strong>g schemes, <strong>in</strong>clud<strong>in</strong>g Government expenditure required to<br />
support m<strong>in</strong><strong>in</strong>g operations <strong>and</strong> clean up costs. As recommended by <strong>the</strong> EIR such an analysis<br />
should ‘evaluate whe<strong>the</strong>r an extractive project provides <strong>the</strong> best option <strong>in</strong> <strong>the</strong> context of<br />
poverty alleviation through susta<strong>in</strong>able development <strong>and</strong> <strong>in</strong> l<strong>in</strong>e with <strong>the</strong> Precautionary<br />
Pr<strong>in</strong>ciple’. Impact of m<strong>in</strong><strong>in</strong>g on, <strong>and</strong> alternatives to m<strong>in</strong><strong>in</strong>g <strong>in</strong>, sectors such as fish<strong>in</strong>g,<br />
agriculture <strong>and</strong> tourism should be factored <strong>in</strong>to analysis as should <strong>the</strong> direct <strong>and</strong> <strong>in</strong>direct costs<br />
<strong>and</strong> benefits.<br />
• Support<strong>in</strong>g Strategy Environmental Appraisals (SEAs) of <strong>the</strong> key isl<strong>and</strong>s <strong>and</strong> regions likely to<br />
be affected by m<strong>in</strong><strong>in</strong>g operations especially <strong>the</strong> twenty three priority m<strong>in</strong><strong>in</strong>g projects.<br />
• Ensur<strong>in</strong>g strict adherence to its safeguards <strong>and</strong> policies on <strong>in</strong>digenous peoples <strong>in</strong>clud<strong>in</strong>g<br />
recogniz<strong>in</strong>g <strong>the</strong> pr<strong>in</strong>ciple of Free Prior Informed Consent, as stated <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es<br />
Indigenous Peoples Rights Act <strong>and</strong> <strong>the</strong> UN Declaration on Indigenous Peoples, as a condition<br />
for fund<strong>in</strong>g of all World Bank Group member <strong>in</strong>stitution projects that impact on <strong>in</strong>digenous<br />
peoples.<br />
Note: These recommendations could apply to o<strong>the</strong>r F<strong>in</strong>ancial Institutions such as <strong>the</strong> Asian<br />
Development Bank.<br />
4. Human Rights issues<br />
4.1 Human Rights violations. We urge <strong>the</strong> government to <strong>in</strong>crease its efforts to stamp out <strong>the</strong> spate<br />
of kill<strong>in</strong>gs of politically active citizens <strong>and</strong> prosecute <strong>the</strong> perpetrators. We commend to <strong>the</strong><br />
government <strong>the</strong> value of <strong>in</strong>dependent <strong>in</strong>vestigation <strong>and</strong> <strong>the</strong> potential assistance that could be<br />
provided for this by <strong>the</strong> UN system through <strong>the</strong> <strong>in</strong>put of <strong>the</strong> UN Human Rights Special Rapporteurs,<br />
were <strong>the</strong>y <strong>in</strong>vited to visit <strong>and</strong> report.<br />
4.2 Implementation of laws to protect communities. It is clear that a credible <strong>in</strong>dependent<br />
monitor<strong>in</strong>g of <strong>the</strong> processes of determ<strong>in</strong><strong>in</strong>g FPIC <strong>and</strong> community consent is urgently needed. The<br />
current exclusively government adm<strong>in</strong>istered processes, <strong>in</strong>clud<strong>in</strong>g those with<strong>in</strong> <strong>the</strong> DENR <strong>and</strong> <strong>the</strong><br />
NCIP, lack public confidence <strong>and</strong> need to be streng<strong>the</strong>ned. The FFT felt that <strong>the</strong> participation <strong>in</strong> such<br />
monitor<strong>in</strong>g by <strong>the</strong> Human Rights Commission, civil society, religious <strong>and</strong> academic <strong>in</strong>stitutions <strong>and</strong><br />
<strong>in</strong>digenous peoples organizations would enhance <strong>the</strong> credibility <strong>and</strong> effectiveness of such a process.<br />
26
This might <strong>in</strong>clude provision of subsidized access to legal assistance. The EU <strong>and</strong> o<strong>the</strong>r <strong>in</strong>ternational<br />
partners could assist <strong>in</strong> this.<br />
4.3 Ratification of <strong>in</strong>ternational treaties. The Philipp<strong>in</strong>e constitutional provisions of 1987 <strong>and</strong> IPRA<br />
are a clear <strong>and</strong> welcome expression of national aspirations <strong>in</strong> relation to <strong>in</strong>digenous peoples’ rights.<br />
As national legislation is already generally <strong>in</strong> l<strong>in</strong>e with <strong>the</strong> provisions of <strong>the</strong> UN Declaration on<br />
Indigenous Peoples Rights <strong>and</strong> International Labour Organization Convention (No. 169) concern<strong>in</strong>g<br />
Indigenous <strong>and</strong> Tribal Peoples <strong>in</strong> Independent Countries, <strong>the</strong> team recommends that <strong>the</strong> Philipp<strong>in</strong>es<br />
government ratifies ILO Convention 169 <strong>and</strong> support <strong>the</strong> Declaration on Indigenous Peoples <strong>in</strong> <strong>the</strong><br />
General Assembly, avail<strong>in</strong>g of any support for implementation <strong>and</strong> education that might result from<br />
implementation of same.<br />
4.4 Prior claims. In l<strong>in</strong>e with <strong>the</strong> 1987 constitutional recognition of prior <strong>in</strong>digenous peoples’ rights to<br />
<strong>the</strong>ir ancestral l<strong>and</strong>s we urge <strong>the</strong> government to end <strong>the</strong> contradictory practice of allow<strong>in</strong>g <strong>the</strong><br />
proposition that m<strong>in</strong><strong>in</strong>g companies can assert prior rights claims over <strong>in</strong>digenous peoples (<strong>the</strong><br />
traditional owners/occupiers of <strong>the</strong> l<strong>and</strong>) ancestral l<strong>and</strong>s .<br />
4.5 European Union support. The EU should ma<strong>in</strong>stream Indigenous Rights <strong>in</strong> <strong>the</strong> 2007-2013 EC<br />
Philipp<strong>in</strong>es Country Strategy Paper. Emphasis should be placed on this <strong>in</strong> its midterm review,<br />
ensur<strong>in</strong>g that FPIC is <strong>in</strong>corporated as a core element of <strong>the</strong> country strategy. The EU should exert its<br />
good offices to reduce tension <strong>and</strong> promote dialogue <strong>and</strong> a strict adherence to legal process <strong>and</strong><br />
<strong>in</strong>formed decision-mak<strong>in</strong>g.<br />
5. F<strong>in</strong>anc<strong>in</strong>g<br />
5.1 Caution from m<strong>in</strong><strong>in</strong>g companies <strong>and</strong> <strong>the</strong> <strong>in</strong>vestor community. Investors should exercise<br />
caution. We urge m<strong>in</strong><strong>in</strong>g companies <strong>and</strong> potential <strong>in</strong>vestors to exercise extreme caution <strong>in</strong> fund<strong>in</strong>g<br />
any m<strong>in</strong><strong>in</strong>g operations <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es unless <strong>and</strong> until effective structures, laws <strong>and</strong> controls are <strong>in</strong><br />
place to protect <strong>the</strong> environment <strong>and</strong> human rights. Companies <strong>and</strong> <strong>in</strong>vestors need to improve<br />
methods of exercis<strong>in</strong>g due diligence over <strong>in</strong>vestments <strong>in</strong> such m<strong>in</strong><strong>in</strong>g projects, <strong>in</strong>clud<strong>in</strong>g<br />
consideration of more <strong>in</strong>dependent <strong>in</strong>formation about <strong>the</strong> practices of m<strong>in</strong><strong>in</strong>g companies <strong>in</strong> relation<br />
to human rights <strong>and</strong> <strong>the</strong> environment. To this end consultations should be held with communities<br />
<strong>and</strong> NGOs to obta<strong>in</strong> reliable <strong>in</strong>dependent <strong>in</strong>formation. (See Appendix 4 for discussion on <strong>in</strong>vestment<br />
risks)<br />
5.2 F<strong>in</strong>ancial probity. We encourage f<strong>in</strong>ancial <strong>in</strong>stitutions to adopt <strong>and</strong> adhere to <strong>the</strong> Equator<br />
Pr<strong>in</strong>ciples <strong>and</strong> governments <strong>in</strong> <strong>the</strong> EU <strong>and</strong> o<strong>the</strong>r major <strong>in</strong>vestor countries to ensure that public money<br />
such as export credit agency f<strong>in</strong>ance or pension funds are not <strong>in</strong>vested <strong>in</strong> a way that directly or<br />
<strong>in</strong>directly supports irresponsible or damag<strong>in</strong>g m<strong>in</strong><strong>in</strong>g projects.<br />
5.3 Bonds. Regulatory authorities should ensure that adequate bonds, commensurate with <strong>the</strong><br />
potential impact of m<strong>in</strong><strong>in</strong>g, are required to fully cover potential damage <strong>and</strong> end-of-life<br />
environmental <strong>and</strong> social costs. The provisions for m<strong>in</strong>e closure should adhere to <strong>the</strong> <strong>in</strong>tegrated<br />
closure plann<strong>in</strong>g recommendation of <strong>the</strong> EIR or to <strong>the</strong> current highest st<strong>and</strong>ards as identified by<br />
<strong>in</strong>dependent experts. (See recommendation 2.5 above).<br />
6. Recommendations on specific m<strong>in</strong><strong>in</strong>g sites<br />
The FFT discussed some cases <strong>in</strong> more depth <strong>and</strong> makes <strong>the</strong> follow<strong>in</strong>g more case specific comments.<br />
27
6.1 Geotechniques <strong>and</strong> M<strong>in</strong>es Inc (GAMI) <strong>in</strong> Midsalip, Zamboanga del Sur, M<strong>in</strong>danao .<br />
The team was utterly shocked that applications were be<strong>in</strong>g considered for open-cast m<strong>in</strong><strong>in</strong>g <strong>in</strong> a<br />
watershed area which would <strong>in</strong>evitably br<strong>in</strong>g destruction to rich irrigated agricultural l<strong>and</strong>, destroy<br />
<strong>the</strong> water catchment area, damage rivers <strong>and</strong> seriously impact local livelihoods.<br />
We recommend:<br />
• cancel<strong>in</strong>g all current m<strong>in</strong><strong>in</strong>g applications <strong>in</strong> Midsalip because <strong>the</strong>y have <strong>the</strong> potential to cause<br />
major environmental damage to critical watersheds, eco-systems, agriculture <strong>and</strong> fisheries <strong>and</strong><br />
result <strong>in</strong> social disruption. We also suggest that this policy be applied to all such areas <strong>in</strong> <strong>the</strong><br />
Philipp<strong>in</strong>es.<br />
• that <strong>the</strong> previous FPIC process be declared <strong>in</strong>valid <strong>and</strong> propose an <strong>in</strong>vestigation <strong>in</strong>to <strong>the</strong> role<br />
of NCIP’s <strong>in</strong> <strong>the</strong> FPIC process be undertaken by <strong>the</strong> office of <strong>the</strong> Ombudsman. Any future<br />
FPIC process should be <strong>in</strong> strict adherence with <strong>the</strong> implement<strong>in</strong>g rules <strong>and</strong> regulations of<br />
IRPA.<br />
• that measures be taken to address <strong>the</strong> disturb<strong>in</strong>g malpractice under which local municipal<br />
officers were pay<strong>in</strong>g <strong>the</strong>mselves <strong>the</strong> salaries to which only officials <strong>in</strong> cities such as Manila<br />
were entitled, thus us<strong>in</strong>g all <strong>the</strong> fund<strong>in</strong>g provided for <strong>the</strong> municipality leav<strong>in</strong>g little for<br />
services.<br />
6.2 TVI Pacific <strong>in</strong> Mt Canatuan, Siocon, Zamboanga del Norte, M<strong>in</strong>danao.<br />
It was of concern that - despite <strong>the</strong> high level of conflict, loss of life <strong>and</strong> series of reported ambushes,<br />
shoot<strong>in</strong>g <strong>in</strong>cidents <strong>and</strong> o<strong>the</strong>r reported acts of violence - many issues rema<strong>in</strong> unresolved with<br />
community protests <strong>and</strong> even legal petitions rema<strong>in</strong><strong>in</strong>g unanswered.<br />
We recommend:<br />
• <strong>the</strong> <strong>in</strong>tervention of a Jo<strong>in</strong>t Commission for Human Rights / National Bureau of Investigation<br />
/ Department of Justice team of prosecutors to <strong>in</strong>vestigate <strong>and</strong> prosecute any human rights<br />
violations <strong>in</strong> Canatuan.<br />
• a credible <strong>in</strong>dependent <strong>in</strong>vestigation <strong>in</strong>to <strong>the</strong> role of <strong>the</strong> NCIP, who are accused of be<strong>in</strong>g<br />
<strong>in</strong>volved <strong>in</strong> caus<strong>in</strong>g <strong>the</strong> division with<strong>in</strong> <strong>the</strong> community, <strong>and</strong> dislodg<strong>in</strong>g <strong>the</strong> genu<strong>in</strong>e Timuay,<br />
Jose Anoy.<br />
• that, <strong>in</strong> l<strong>in</strong>e with <strong>the</strong> provisions of IPRA, <strong>the</strong> NCIP should use <strong>and</strong> recognize traditional<br />
leadership structures <strong>and</strong> not those created under government registered/<strong>in</strong>corporated<br />
organizations.<br />
• an <strong>in</strong>dependent <strong>in</strong>vestigation be conducted <strong>in</strong>to TVI’s adherence to <strong>the</strong> m<strong>and</strong>atory FPIC<br />
process, as stipulated <strong>in</strong> IPRA’s implement<strong>in</strong>g rules <strong>and</strong> regulations, at Mt Canatuan. If it is<br />
found that <strong>the</strong> requirements have not been adhered to <strong>the</strong> DENR should review <strong>the</strong> validity of<br />
<strong>the</strong> TVI MPSA.<br />
• a high level <strong>in</strong>vestigation by <strong>the</strong> DENR <strong>in</strong>to <strong>the</strong> legality of <strong>the</strong> orig<strong>in</strong>al m<strong>in</strong><strong>in</strong>g claim filed by<br />
Ramon Bosque.<br />
6.3 Crew Development Group <strong>in</strong> Victoria, M<strong>in</strong>doro<br />
In view of <strong>the</strong> potential environmental damage to <strong>the</strong> water catchement area, agricultural<br />
productivity <strong>and</strong> <strong>the</strong> mar<strong>in</strong>e environment we appeal to <strong>the</strong> government <strong>and</strong> corporation to resolve<br />
<strong>the</strong> current anomalous <strong>and</strong> destabiliz<strong>in</strong>g position by announc<strong>in</strong>g <strong>the</strong> removal of <strong>the</strong> Victoria, M<strong>in</strong>doro<br />
Nickel Project from <strong>the</strong> 23 National Priority projects <strong>and</strong> <strong>the</strong> cancellation of <strong>the</strong> project <strong>in</strong> l<strong>in</strong>e with <strong>the</strong><br />
expressed wishes of <strong>the</strong> affected population <strong>and</strong> Local Government Units (LGUs).<br />
28
Appendix 1. It<strong>in</strong>erary<br />
Fact F<strong>in</strong>d<strong>in</strong>g Team:-<br />
Honorable Clare Short MP UK.<br />
Cathal Doyle - Irish Center for Human Rights, NUI Galway, Irel<strong>and</strong><br />
Clive Wicks - CEESP ( IUCN Commission on Environmental, Economic <strong>and</strong> Social Policy)<br />
Fr. Fank Nally SSC - Columban Faith <strong>and</strong> Justice Office, UK<br />
The follow<strong>in</strong>g is a summary of <strong>the</strong> meet<strong>in</strong>gs attended by <strong>the</strong> team. The Honorable Clare Short<br />
attended meet<strong>in</strong>gs from <strong>the</strong> 27th July to <strong>the</strong> 2nd August.<br />
Date / Time Location Attendees<br />
Tuesday 25 th July<br />
2006<br />
pm<br />
Wednesday 26 th<br />
July 2006<br />
am<br />
Thursday<br />
July<br />
pm<br />
27 th<br />
Manila Meet<strong>in</strong>g with retired Judge Dolores Espaňol -<br />
Transparency International – Philipp<strong>in</strong>es<br />
Manila<br />
Malate Convento,<br />
Manila<br />
Javier <strong>and</strong> Antonio Claparol Ecological Society of <strong>the</strong><br />
Philipp<strong>in</strong>es, members of CEESP (IUCN Commission on<br />
Environmental, Economic <strong>and</strong> Social Policy), <strong>and</strong><br />
SEAPRISE (IUCN Work<strong>in</strong>g Group on <strong>the</strong> Social <strong>and</strong><br />
Environmental Accountability of <strong>the</strong> Private Sector.<br />
LRC-KSK (Friends of <strong>the</strong> Earth Philipp<strong>in</strong>es), Tebtebba,<br />
L<strong>in</strong>gkod Tao Kalikasan, ATM – Phildhraa, Haribon,<br />
Mo<strong>the</strong>r Earth, FPE - Foundation for Philipp<strong>in</strong>e<br />
Environment, Defend <strong>the</strong> National Patrimony, CEC –<br />
Center for Environment Concern/ Kalikasan, WWF.<br />
Paul<strong>in</strong>o Alecha, Felix Unabia - Midsalip<br />
Friday 28 th July<br />
am<br />
Quezon City<br />
Ombudsman Ma. Merceditas N. Guiterrez<br />
Friday 28 th<br />
pm<br />
Friday 28 th<br />
pm<br />
July<br />
July<br />
Sto. Thomas<br />
University Social<br />
Research Center,<br />
Pontifical<br />
University of Sto.<br />
Tomas,<br />
Manila<br />
Supreme Court,<br />
Manila<br />
Director Ernesto R. Gonzales, Ph.D (Environmental<br />
Economist); Research Associates: Dr. Alv<strong>in</strong> P. Ang<br />
(Economics) ; Dr. Arlene Ancheta (Environmental<br />
Science); Dr. Jaime Jimenez (Socio-political studies).<br />
Peoples’ Movement: Mr. Ronald Llamas, Akbayan<br />
Peoples’ Party; Ms. Rizza Hontiveros, Akbayan<br />
Peoples’ Party; Mr. P. Torres, National Rizalistas<br />
Organization.<br />
Non-governmental Organizations:<br />
Director Nito Doria, Institute for Strategic Studies;<br />
Mr. Ed Aurelio Reyes, Convenor, Saniblakas<br />
Foundation of <strong>the</strong> Philipp<strong>in</strong>es <strong>and</strong> among o<strong>the</strong>rs,<br />
representatives from <strong>the</strong> Sibuyan Isl<strong>and</strong>.<br />
Chief Justice Artemio V. Panganiban<br />
Saturday 29 th Diocesan Social Subanon of Mt Canatuan. Timuay Boy Anoy,<br />
29
July<br />
pm<br />
Sunday 30 th<br />
am<br />
Sunday 30 th<br />
pm<br />
Sunday 30 th<br />
pm<br />
Monday 31 st July<br />
am<br />
Monday 31 st July<br />
am<br />
Monday 31 st July<br />
pm<br />
Action Center,<br />
Dipolog ,<br />
M<strong>in</strong>danao<br />
Midsalip,<br />
M<strong>in</strong>danao<br />
Midsalip,<br />
M<strong>in</strong>danao<br />
Midsalip,<br />
M<strong>in</strong>danao<br />
Sibutad,<br />
M<strong>in</strong>danao<br />
M<strong>in</strong>danao<br />
Manila<br />
Representatives from Jose Dalman <strong>and</strong> Bayog at DCMI<br />
(D = DIOPIM = Dioceses of Dipolog, Iligan, Ozamiz,<br />
Pagadian, Ipil, Marawi).<br />
CMI = Committee on <strong>M<strong>in</strong><strong>in</strong>g</strong> Issues)<br />
Meet<strong>in</strong>g with Subaanen Indigenous Peoples<br />
Meet<strong>in</strong>g with <strong>M<strong>in</strong><strong>in</strong>g</strong> <strong>Concerns</strong> group<br />
Meet<strong>in</strong>g with local community<br />
Visit m<strong>in</strong><strong>in</strong>g application area with local community<br />
Local Residents impacted by Philex M<strong>in</strong>es Operation<br />
Bishop Jose Manguiran<br />
Senator Pimentel<br />
Tuesday<br />
August<br />
am<br />
Tuesday<br />
August<br />
pm<br />
Wednesday<br />
August<br />
am<br />
Wednesday<br />
August<br />
pm<br />
1 st<br />
1 st<br />
2 nd<br />
2 nd<br />
Congress<br />
NASSA<br />
Manila<br />
offices,<br />
Meet<strong>in</strong>g at British<br />
Embassy, Manila<br />
Meet<strong>in</strong>g at British<br />
Embassy, Manila<br />
Brief<strong>in</strong>gs on Human Rights situation<br />
Congressman Satur C Ocampo, Bayan Muna.<br />
Congresswoman ‘Risa’ Ana Theresia Hontiveros-<br />
Baraquel, 'Risa' – Akbayan.<br />
Bishop. Gutierrez <strong>and</strong> representatives of<br />
CBCP/NASSA<br />
His Excellency Ambassador Peter Beck<strong>in</strong>gham; <strong>the</strong><br />
Governor of M<strong>in</strong>doro, Honorable Arnan C. Panaligan;<br />
Fr Edw<strong>in</strong> Gariguez; Department of Environment <strong>and</strong><br />
Natural Resources, Undersecretary for M<strong>in</strong>es, Ramon<br />
J.P. Paje; Executive Director of M<strong>in</strong>erals Development<br />
Council, Soledad M. Cagampang-De Castro; Wai-Hang<br />
Lok, Desk Officer South East Asia <strong>and</strong> Pacific Group,<br />
Foreign <strong>and</strong> Commonwealth Office, London; John<br />
Charles Chick MBE, Director Trade <strong>and</strong> Investment,<br />
British Embassy, Manila.<br />
Mr. Benjam<strong>in</strong> Philip G. Romualdez, President<br />
Chamber of M<strong>in</strong>es <strong>and</strong> President of ASEAN Federation<br />
of <strong>M<strong>in</strong><strong>in</strong>g</strong> Associations, Nelia C. Halcon, Executive<br />
Vice President of Chamber of M<strong>in</strong>es <strong>and</strong> Secretary<br />
General ASEAN Federation of <strong>M<strong>in</strong><strong>in</strong>g</strong> Associations.<br />
30
Appendix 2. Case Studies<br />
Dur<strong>in</strong>g <strong>the</strong> trip <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team visited three local communities affected by m<strong>in</strong><strong>in</strong>g on <strong>the</strong> isl<strong>and</strong><br />
of M<strong>in</strong>danao <strong>in</strong> <strong>the</strong> south of <strong>the</strong> Philipp<strong>in</strong>es. To obta<strong>in</strong> a comprehensive overview, <strong>the</strong> communities<br />
selected represented <strong>the</strong> three phases of <strong>the</strong> m<strong>in</strong><strong>in</strong>g operations: <strong>the</strong> application phase when m<strong>in</strong><strong>in</strong>g<br />
companies are seek<strong>in</strong>g permits, <strong>the</strong> exploration <strong>and</strong> m<strong>in</strong><strong>in</strong>g operation phase, <strong>and</strong> <strong>the</strong> post-m<strong>in</strong><strong>in</strong>g<br />
phase when <strong>the</strong> m<strong>in</strong><strong>in</strong>g site is officially closed.<br />
The application phase<br />
Midsalip municipality is situated <strong>in</strong> <strong>the</strong> centre of <strong>the</strong> Zamboanga Pen<strong>in</strong>sula. It sits at <strong>the</strong> foot of<br />
forested mounta<strong>in</strong>s, which are <strong>the</strong> source of three rivers that provide water for <strong>the</strong> three neighbor<strong>in</strong>g<br />
prov<strong>in</strong>ces. The surround<strong>in</strong>g l<strong>and</strong>s conta<strong>in</strong> beautifully terraced, fertile <strong>and</strong> well-irrigated rice fields.<br />
The mounta<strong>in</strong> range is home to a biologically diverse ecosystem <strong>and</strong> has been considered as sacred by<br />
<strong>the</strong> Subaanen people s<strong>in</strong>ce time immemorial (See Appendix 7 for photos of Midsalip <strong>and</strong> Subaanen<br />
people). It is home to <strong>the</strong> Philipp<strong>in</strong>e eagle, an endangered species. In <strong>the</strong> past, m<strong>in</strong>eral exploration has<br />
shown <strong>the</strong> mounta<strong>in</strong>s to conta<strong>in</strong> iron ore <strong>and</strong> o<strong>the</strong>r m<strong>in</strong>erals. As a result m<strong>in</strong><strong>in</strong>g operations have<br />
frequently been proposed for <strong>the</strong>se l<strong>and</strong>s.<br />
The <strong>in</strong>digenous people of Midsalip see <strong>the</strong> proposed m<strong>in</strong>e as a threat to <strong>the</strong>ir livelihoods, food<br />
security, culture <strong>and</strong> very existence. Toge<strong>the</strong>r with o<strong>the</strong>rs <strong>in</strong> <strong>the</strong> local community <strong>the</strong>y have a long<br />
history of resist<strong>in</strong>g m<strong>in</strong><strong>in</strong>g <strong>and</strong> logg<strong>in</strong>g operations <strong>in</strong> <strong>the</strong>ir mounta<strong>in</strong>s. Over <strong>the</strong> past 11 years <strong>the</strong> local<br />
community has repeatedly filed compla<strong>in</strong>ts <strong>and</strong> held rallies <strong>and</strong> protests to object to attempts by<br />
m<strong>in</strong><strong>in</strong>g companies to obta<strong>in</strong> permits. Most recently <strong>the</strong>y have filed a petition aga<strong>in</strong>st TVIs application<br />
for an exploration permit (See Appendix 6).<br />
The current national government policy to promote m<strong>in</strong><strong>in</strong>g means that <strong>the</strong>y face an onslaught of<br />
m<strong>in</strong><strong>in</strong>g applications. The most recent applications for m<strong>in</strong><strong>in</strong>g come from seven companies <strong>and</strong> cover<br />
70 percent of <strong>the</strong> municipality, <strong>in</strong>clud<strong>in</strong>g <strong>in</strong>digenous ancestral l<strong>and</strong>s. Access<strong>in</strong>g <strong>the</strong> iron ore will<br />
require stripp<strong>in</strong>g away <strong>the</strong> face of <strong>the</strong> mounta<strong>in</strong>, destroy<strong>in</strong>g forests <strong>and</strong> biodiversity <strong>and</strong> damag<strong>in</strong>g a<br />
watershed that is <strong>the</strong> source of irrigation <strong>and</strong> local communities’ water supply.<br />
The first of <strong>the</strong> seven m<strong>in</strong><strong>in</strong>g applications be<strong>in</strong>g processed is that of GeoTechniques <strong>and</strong> M<strong>in</strong>es Inc<br />
(GAMI), a Ch<strong>in</strong>ese-based company, 119 to extract iron ore from <strong>the</strong> sacred Mt P<strong>in</strong>ukis range. As<br />
required by <strong>the</strong> Indigenous Peoples Rights Act (IPRA), <strong>the</strong> company is engaged <strong>in</strong> a consultation<br />
process to obta<strong>in</strong> <strong>the</strong> free, prior, <strong>in</strong>formed, consent of <strong>the</strong> Subaanen <strong>in</strong>digenous people.<br />
Strict guidel<strong>in</strong>es on <strong>the</strong> procedures to be followed with regard to <strong>the</strong> FPIC process are provided <strong>in</strong> <strong>the</strong><br />
Implement<strong>in</strong>g Rules <strong>and</strong> Regulations of <strong>the</strong> IPRA. The NCIP is m<strong>and</strong>ated to ensure that this process<br />
is followed <strong>and</strong> <strong>the</strong> rights of <strong>in</strong>digenous peoples are protected.<br />
Despite <strong>the</strong>se protections, <strong>the</strong> <strong>in</strong>digenous peoples described to <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team how <strong>the</strong> m<strong>in</strong><strong>in</strong>g<br />
company, <strong>and</strong> <strong>the</strong> NCIP, failed to adhere to <strong>the</strong>se guidel<strong>in</strong>es. They site examples <strong>in</strong>clud<strong>in</strong>g:<br />
• misrepresentation <strong>and</strong> appo<strong>in</strong>tment of non representative leaders <strong>and</strong> failure to recognize<br />
<strong>in</strong>digenous peoples’ traditional elders, <strong>in</strong> l<strong>in</strong>e with <strong>the</strong>ir customary law;<br />
• failure to provide <strong>in</strong>formation on <strong>the</strong> potential negative impacts of m<strong>in</strong><strong>in</strong>g;<br />
• prevention of <strong>in</strong>digenous peoples’ organizations from provid<strong>in</strong>g <strong>the</strong>ir views on <strong>the</strong> impact of<br />
m<strong>in</strong><strong>in</strong>g dur<strong>in</strong>g <strong>the</strong> FPIC process;<br />
• creation of false expectations regard<strong>in</strong>g <strong>the</strong> benefits of m<strong>in</strong><strong>in</strong>g to local people;<br />
• attempts to have <strong>in</strong>digenous leaders sign a Memor<strong>and</strong>um of Agreement with <strong>the</strong> company,<br />
despite <strong>the</strong> failure to obta<strong>in</strong> <strong>the</strong> consent of <strong>the</strong> <strong>in</strong>digenous people as required by <strong>the</strong><br />
Indigenous Peoples Rights Act.<br />
31
The <strong>in</strong>digenous peoples of Midsalip, as <strong>in</strong> many o<strong>the</strong>r places, see m<strong>in</strong><strong>in</strong>g as a threat to <strong>the</strong>ir<br />
livelihoods, food security, culture <strong>and</strong> very existence.<br />
The operation phase<br />
Mt. Canatuan is located close to <strong>the</strong> town of Siocon <strong>in</strong> Zamboanga del Norte, M<strong>in</strong>danao. It is part of<br />
<strong>the</strong> ancestral doma<strong>in</strong> of <strong>the</strong> Subanon people <strong>and</strong> is <strong>the</strong>ir sacred mounta<strong>in</strong>. The area around Mt<br />
Canatuan has been described as <strong>the</strong> ‘rice granary of Zamboanga del Norte’. The mounta<strong>in</strong> itself had<br />
important forest cover <strong>and</strong> is <strong>the</strong> source of rivers that are used by local farmers to irrigate <strong>the</strong>ir l<strong>and</strong>s.<br />
The sea, a few kilometers away, provides livelihoods for local fish<strong>in</strong>g communities <strong>and</strong> fish-farm<br />
operators.<br />
From 1989 to <strong>the</strong> present day <strong>the</strong> <strong>in</strong>digenous Subanon people have been protest<strong>in</strong>g aga<strong>in</strong>st m<strong>in</strong><strong>in</strong>g<br />
activities. This <strong>in</strong>cluded an objection to <strong>the</strong> orig<strong>in</strong>al MPSA acquired by a small-scale m<strong>in</strong>er <strong>in</strong> dubious<br />
circumstances <strong>in</strong> 1993. 120 This same MPSA was subsequently sold to TVI, a Canadian m<strong>in</strong><strong>in</strong>g<br />
company, <strong>in</strong> 1994. In 2003 <strong>the</strong> traditional leader Timuay Jose ‘Boy’ Anoy was granted a Certificate of<br />
Ancestral Doma<strong>in</strong> Title (CADT) by <strong>the</strong> President of <strong>the</strong> Philipp<strong>in</strong>es. S<strong>in</strong>ce 2004 TVI has been<br />
operat<strong>in</strong>g an open-pit gold m<strong>in</strong>e on Mt Canatuan, us<strong>in</strong>g cyanide to extract gold from <strong>the</strong> ore <strong>and</strong><br />
stor<strong>in</strong>g <strong>the</strong> vast quantities of waste beh<strong>in</strong>d tail<strong>in</strong>gs dams. 121<br />
The fact-f<strong>in</strong>d<strong>in</strong>g team met a number of <strong>the</strong> affected Subanons – <strong>in</strong>clud<strong>in</strong>g <strong>the</strong>ir traditional leader <strong>and</strong><br />
CADT holder Timuay Jose ‘Boy’ Anoy, Solil<strong>in</strong>g Ons<strong>in</strong>o Mato – <strong>the</strong> spokesperson for <strong>the</strong> descendants<br />
of Apo Manglang who established <strong>the</strong> traditional Subanon boundaries <strong>and</strong> territories 122 – <strong>and</strong> <strong>the</strong><br />
Galves family, recently evicted from <strong>the</strong>ir home, which was demolished to make way for TVI’s<br />
m<strong>in</strong><strong>in</strong>g operations (see Appendix 7 & 8 for photos).<br />
In addition to describ<strong>in</strong>g how <strong>the</strong>y had been deprived of <strong>the</strong>ir right to FPIC <strong>in</strong> relation to m<strong>in</strong><strong>in</strong>g on<br />
<strong>the</strong>ir ancestral l<strong>and</strong>s, <strong>the</strong> Subanons also gave <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team details of <strong>the</strong> human rights abuses<br />
<strong>the</strong>y claim were committed s<strong>in</strong>ce TVI’s m<strong>in</strong><strong>in</strong>g operations started <strong>in</strong> <strong>the</strong> area, The abuses <strong>in</strong>cluded:<br />
• evictions of families liv<strong>in</strong>g on <strong>the</strong> ancestral doma<strong>in</strong>; a total of 40 families are directly affected;<br />
• desecration of <strong>the</strong>ir sacred mounta<strong>in</strong>;<br />
• multiple security checkpo<strong>in</strong>ts block<strong>in</strong>g <strong>in</strong>digenous peoples’ access to <strong>the</strong>ir ancestral doma<strong>in</strong><br />
<strong>and</strong> prevent<strong>in</strong>g <strong>the</strong>m from perform<strong>in</strong>g <strong>the</strong>ir rituals;<br />
• use of checkpo<strong>in</strong>ts to block transport of food <strong>and</strong> equipment for small-scale m<strong>in</strong>ers;<br />
• violence <strong>and</strong> <strong>in</strong>timidation by <strong>the</strong> TVI-f<strong>in</strong>anced paramilitary force known as <strong>the</strong> Special<br />
CAFGU (Citizen Armed Forces Geographical Unit) Armed Auxiliary (SCAA), <strong>in</strong>clud<strong>in</strong>g<br />
shoot<strong>in</strong>g at picketers <strong>and</strong> plac<strong>in</strong>g hidden barbed nails <strong>in</strong> trails used by local residents. The<br />
SCAA consists of 169 armed security personnel as of August 2006.<br />
Ow<strong>in</strong>g to <strong>the</strong> vocal opposition of <strong>the</strong> Subanons <strong>the</strong>se violations, along with o<strong>the</strong>rs, have been welldocumented<br />
by NGOs. They have been <strong>the</strong> subject of <strong>in</strong>vestigations <strong>and</strong> reports by <strong>the</strong> Philipp<strong>in</strong>e<br />
Commission on Human Rights, a Canadian parliamentary committee 123 <strong>and</strong> a Philipp<strong>in</strong>es<br />
congressional hear<strong>in</strong>g 124 . The Subanon protests aga<strong>in</strong>st m<strong>in</strong><strong>in</strong>g have also <strong>in</strong>cluded formal compla<strong>in</strong>ts<br />
to <strong>the</strong> DENR, <strong>the</strong> MGB, petitions, rallies, <strong>and</strong> pickets, as well as advocacy <strong>in</strong> <strong>the</strong> UK <strong>and</strong> Canada.<br />
TVI claims that because <strong>the</strong> 1995 <strong>M<strong>in</strong><strong>in</strong>g</strong> Act predates <strong>the</strong> 1997 IPRA, <strong>the</strong>ir claim has precedence,<br />
ignor<strong>in</strong>g <strong>the</strong> fact that <strong>the</strong> IPRA merely codifies <strong>the</strong> rights of <strong>in</strong>digenous peoples <strong>in</strong> <strong>the</strong> ancestral<br />
doma<strong>in</strong> which has been <strong>the</strong>irs for generations. Given that <strong>the</strong> legality of <strong>the</strong> process through which<br />
<strong>the</strong> orig<strong>in</strong>al MPSA was obta<strong>in</strong>ed has been questioned <strong>and</strong> that <strong>the</strong> Subanon people have been<br />
protest<strong>in</strong>g 125 aga<strong>in</strong>st m<strong>in</strong><strong>in</strong>g before <strong>and</strong> after TVI purchased this MPSA, <strong>the</strong>y believe that <strong>the</strong> NCIP<br />
should have <strong>in</strong>sisted on:<br />
32
1) a thorough <strong>in</strong>vestigation of <strong>the</strong> process by which <strong>the</strong> MPSA was acquired;<br />
2) <strong>the</strong> right of <strong>the</strong> Subanon people to FPIC, as stated <strong>in</strong> IPRA.<br />
However, accord<strong>in</strong>g to <strong>the</strong> Subanon <strong>the</strong> NCIP appears to have sided with <strong>the</strong> m<strong>in</strong><strong>in</strong>g company. They<br />
claim that <strong>the</strong> NCIP violated <strong>the</strong>ir traditional customs <strong>and</strong> practice when it established a Council of<br />
Elders, a concept <strong>the</strong> Subanon claim is alien to <strong>the</strong>m. They facilitated this by <strong>the</strong> merg<strong>in</strong>g of <strong>the</strong><br />
orig<strong>in</strong>al anti-m<strong>in</strong><strong>in</strong>g Siocon Subanon Association Inc (SSAI), <strong>the</strong> Subanon organization which had<br />
protested <strong>the</strong> MPSA claim, with a pro-m<strong>in</strong><strong>in</strong>g group consist<strong>in</strong>g ma<strong>in</strong>ly of m<strong>in</strong><strong>in</strong>g employees <strong>and</strong><br />
supporters of TVI operations.<br />
The impact of m<strong>in</strong><strong>in</strong>g at Mt Canatuan has already been felt by local farmers, fishermen <strong>and</strong> fishfarmers.<br />
Silt is ris<strong>in</strong>g <strong>in</strong> rivers <strong>and</strong> costal areas. Local people compla<strong>in</strong>ed of reduced crop yields <strong>and</strong><br />
fish harvests. Dur<strong>in</strong>g <strong>the</strong> ra<strong>in</strong>y season, when floods come, those <strong>in</strong> contact with <strong>the</strong> water have<br />
reported sk<strong>in</strong> <strong>in</strong>fections. There was widespread belief that <strong>the</strong> situation will deteriorate. Local people<br />
– Muslims, Christians <strong>and</strong> Subanons – have protested <strong>and</strong> signed petitions aga<strong>in</strong>st TVI (see DCMI<br />
website http://www.dcmiphil.org). With <strong>the</strong> livelihood of 70 per cent of <strong>the</strong> population dependent<br />
on agriculture <strong>and</strong> fish<strong>in</strong>g, <strong>the</strong> threat to <strong>the</strong>ir environment is a very serious ground for concern.<br />
Post-operation phase<br />
The barrio of Libay is located on <strong>the</strong> coast of <strong>the</strong> Municipality of Sibutad, Zamboanga del Norte,<br />
M<strong>in</strong>danao. It is a picturesque area with lush vegetation <strong>and</strong> roll<strong>in</strong>g hills covered <strong>in</strong> forest. At <strong>the</strong> foot<br />
of <strong>the</strong> hills are homes <strong>and</strong> rice fields. Mangroves, essential for both aquatic <strong>and</strong> l<strong>and</strong> ecologies,<br />
surrounded a bay once rich <strong>in</strong> coral. The bay was also an abundant source of fish <strong>and</strong> sea food. (see<br />
Appendix 7 for photos of Libay)<br />
Philex Gold started large-scale m<strong>in</strong><strong>in</strong>g operations <strong>in</strong> Libay <strong>in</strong> 1997. Its tail<strong>in</strong>gs dams, <strong>the</strong> rema<strong>in</strong>s of its<br />
process<strong>in</strong>g site <strong>and</strong> <strong>the</strong> cleared area of forest cover are still visible on <strong>the</strong> mounta<strong>in</strong> slopes that<br />
overlook <strong>the</strong> bay. Follow<strong>in</strong>g protests <strong>and</strong> fall<strong>in</strong>g m<strong>in</strong>eral prices, Philex Gold officially closed its<br />
operations <strong>in</strong> Libay <strong>in</strong> 2002.<br />
Local residents recounted that between 1999 <strong>and</strong> 2002 frequent mudslides destroyed rice fields <strong>and</strong><br />
filled <strong>the</strong> bay with mud reach<strong>in</strong>g 200 meters out to sea. They described how every ra<strong>in</strong>y season for<br />
three years <strong>the</strong> clear waters of <strong>the</strong> bay turned brown. Accord<strong>in</strong>g to <strong>the</strong> residents, <strong>the</strong> effects <strong>in</strong>cluded<br />
<strong>the</strong> death of mangroves <strong>and</strong> coral, with fish<strong>in</strong>g no longer viable because people were afraid to eat<br />
anyth<strong>in</strong>g that was caught <strong>in</strong> <strong>the</strong> bay. They described a tail<strong>in</strong>gs dam overflow that caused a major<br />
mudslide <strong>and</strong> fish kills. They said mercury levels <strong>in</strong> fish had been monitored at over 400 times <strong>the</strong><br />
norm <strong>and</strong> claimed that rice production was down by up to 50 per cent. People from neighbor<strong>in</strong>g<br />
communities claim that <strong>the</strong> effects were felt up to 30 kilometers away, across 24 barangays, four<br />
municipalities <strong>and</strong> two prov<strong>in</strong>ces, with a population close to 15,000 people.<br />
Despite hav<strong>in</strong>g closed its operations locals claimed that Philex Gold ma<strong>in</strong>ta<strong>in</strong>s a presence through<br />
small-scale m<strong>in</strong>ers who moved <strong>in</strong> from Davao, <strong>in</strong> <strong>the</strong> south of M<strong>in</strong>danao whom <strong>the</strong>y say pay a<br />
commission to Philex. These m<strong>in</strong>ers are practically medium-scale m<strong>in</strong>ers, us<strong>in</strong>g large-scale m<strong>in</strong><strong>in</strong>g<br />
techniques (open-pit m<strong>in</strong><strong>in</strong>g with cyanide).<br />
Accord<strong>in</strong>g to local residents recent l<strong>and</strong>slides, a result of <strong>the</strong> deforestation necessary for m<strong>in</strong><strong>in</strong>g,<br />
destroyed 14 houses. People are suffer<strong>in</strong>g from sk<strong>in</strong> reactions to water used for irrigation <strong>and</strong> after<br />
bath<strong>in</strong>g with spr<strong>in</strong>g water. These effects cont<strong>in</strong>ue to be felt downstream of <strong>the</strong> m<strong>in</strong>e. New tail<strong>in</strong>gs<br />
ponds cont<strong>in</strong>ue to cause flood<strong>in</strong>g, sterility <strong>and</strong> even <strong>the</strong> death of animals. Crop yields rema<strong>in</strong> low. On<br />
<strong>the</strong> positive side, some mangroves have recovered <strong>and</strong> fish have returned to <strong>the</strong> bay. However, with<br />
no monitor<strong>in</strong>g of toxicity levels, <strong>the</strong> safety of food be<strong>in</strong>g consumed needs to be questioned.<br />
33
The fact-f<strong>in</strong>d<strong>in</strong>g team also met ano<strong>the</strong>r group of small-scale m<strong>in</strong>ers who act <strong>in</strong>dependently of Philex<br />
m<strong>in</strong>es. They were orig<strong>in</strong>ally work<strong>in</strong>g <strong>in</strong> Mt Canatuan but were forced to leave when TVI commenced<br />
operations <strong>the</strong>re. They follow gold rich ve<strong>in</strong>s <strong>and</strong> use mercury to extract gold from ore. They receive<br />
no technical or f<strong>in</strong>ancial assistance from <strong>the</strong> government.<br />
Most alarm<strong>in</strong>g for <strong>the</strong> local community, after all <strong>the</strong>ir suffer<strong>in</strong>g <strong>and</strong> protests, which led to <strong>the</strong> closure<br />
of <strong>the</strong> m<strong>in</strong>e, is that <strong>the</strong>y believe that <strong>the</strong>re may be attempts to reopen <strong>the</strong> ma<strong>in</strong> m<strong>in</strong><strong>in</strong>g site as up to 90<br />
per cent of <strong>the</strong> ore is estimated to rema<strong>in</strong>.<br />
O<strong>the</strong>r m<strong>in</strong><strong>in</strong>g operations<br />
In addition to <strong>the</strong>se visits, <strong>the</strong> team also met representatives of o<strong>the</strong>r communities where major<br />
m<strong>in</strong><strong>in</strong>g operations are ongo<strong>in</strong>g or planned, despite local resistance. The follow<strong>in</strong>g is a sample of <strong>the</strong>se<br />
m<strong>in</strong><strong>in</strong>g operations.<br />
Rapu-Rapu – Lafayette <strong>M<strong>in</strong><strong>in</strong>g</strong>, Australia<br />
Lafayette’s m<strong>in</strong><strong>in</strong>g operation on <strong>the</strong> Isl<strong>and</strong> of Rapu-Rapu was declared <strong>the</strong> government ‘showcase’<br />
for <strong>the</strong> new m<strong>in</strong><strong>in</strong>g policy. Follow<strong>in</strong>g two tail<strong>in</strong>gs spills <strong>in</strong> October 2005, which resulted <strong>in</strong> <strong>the</strong> death<br />
of mar<strong>in</strong>e life, <strong>the</strong> gold m<strong>in</strong><strong>in</strong>g was stopped. President Arroyo launched an <strong>in</strong>dependent fact-f<strong>in</strong>d<strong>in</strong>g<br />
mission. The report of this commission was completed <strong>in</strong> March 2006 <strong>and</strong> presented to <strong>the</strong> President.<br />
The fact-f<strong>in</strong>d<strong>in</strong>g team heard an overview of <strong>the</strong> report’s f<strong>in</strong>d<strong>in</strong>gs.<br />
The report concluded that Lafayette did not have adequate safety measures <strong>in</strong> place to safeguard <strong>the</strong><br />
isl<strong>and</strong>’s eco-system <strong>and</strong> was negligent <strong>in</strong> its operations. In addition to documented fish kills, <strong>the</strong><br />
commission believed that <strong>the</strong> m<strong>in</strong><strong>in</strong>g operation ‘led to or caused certa<strong>in</strong> negative consequences to<br />
health, environmental <strong>and</strong> economic problems to <strong>the</strong> people of Rapu-Rapu <strong>and</strong> nearby coastal<br />
municipalities’. It also po<strong>in</strong>ted out that <strong>in</strong>digenous people affected by <strong>the</strong> m<strong>in</strong><strong>in</strong>g had not been<br />
consulted. The commission also found evidence of possible underreport<strong>in</strong>g of m<strong>in</strong>eral production.<br />
The report recommended <strong>the</strong> closure of Lafayette’s operations, a ban on m<strong>in</strong><strong>in</strong>g <strong>in</strong> Rapu-Rapu <strong>and</strong> a<br />
review of <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Act, <strong>in</strong> particular <strong>the</strong> provision allow<strong>in</strong>g 100 per cent foreign ownership of local<br />
m<strong>in</strong>es. Despite this, <strong>the</strong> government response was to provide a 30-day trial operation period to<br />
Lafayette, which <strong>the</strong> DENR has subsequently extended.<br />
The reopen<strong>in</strong>g of <strong>the</strong> m<strong>in</strong>e co<strong>in</strong>cided with <strong>the</strong> visit of <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team. There was strong local<br />
opposition to its cont<strong>in</strong>ued operation, with protests supported by civil society, church groups,<br />
m<strong>in</strong>ority parties <strong>and</strong> academics. A class action court case seek<strong>in</strong>g an <strong>in</strong>junction aga<strong>in</strong>st <strong>the</strong><br />
resumption of operations was also <strong>in</strong>itiated. Dur<strong>in</strong>g <strong>the</strong> trial period, commitments were made, by<br />
<strong>the</strong> DENR, that <strong>the</strong> test-run would be open to <strong>the</strong> public <strong>and</strong> third-party experts. 126 The subsequent<br />
arrest of a Greenpeace member who was attempt<strong>in</strong>g to measure water quality raises serious questions<br />
as to <strong>the</strong> s<strong>in</strong>cerity of <strong>the</strong> governments promise.<br />
Sibuyan Isl<strong>and</strong> – Pelican Resources, Australia<br />
The fact-f<strong>in</strong>d<strong>in</strong>g team met local officials from Sibuyan Isl<strong>and</strong>, Prov<strong>in</strong>ce of Romblon who are oppos<strong>in</strong>g<br />
m<strong>in</strong><strong>in</strong>g. They expla<strong>in</strong>ed that thirty-three per cent of <strong>the</strong>ir small isl<strong>and</strong> (44,500 hectares) is covered <strong>in</strong><br />
primary forest <strong>and</strong> has been declared a national park. It is home to <strong>the</strong> world’s densest forest, with 54<br />
species of trees found nowhere else <strong>in</strong> <strong>the</strong> world. It is also home to a number of endemic species of<br />
birds <strong>and</strong> mammals, some of which are endangered. This isl<strong>and</strong> with unique flora <strong>and</strong> fauna, s<strong>and</strong>y<br />
beaches, <strong>and</strong> surrounded by a coral reef has huge eco-tourism potential. Agriculture <strong>and</strong> fish<strong>in</strong>g are<br />
also viable sources of economic growth: <strong>the</strong> soil is fertile <strong>and</strong> crop yields are high. The seas have an<br />
abundant supply of fish of many varieties. 127<br />
34
By us<strong>in</strong>g small-scale m<strong>in</strong><strong>in</strong>g permits, <strong>the</strong> Australian company Pelican Resources is fund<strong>in</strong>g nickelm<strong>in</strong><strong>in</strong>g<br />
on <strong>the</strong> isl<strong>and</strong>. It aims to ship up to 100,000 tones of laterite nickel ore annually. To date 36<br />
diamond core holes have been drilled. 128 Pelican Resources has submitted MPSA applications<br />
adjacent to <strong>the</strong> current m<strong>in</strong><strong>in</strong>g sites, accord<strong>in</strong>g to <strong>the</strong> locals some of which cross <strong>in</strong>to <strong>the</strong> national park<br />
area. Up to six rivers would be affected by <strong>the</strong>se m<strong>in</strong><strong>in</strong>g operations. 129<br />
The prov<strong>in</strong>cial government has ignored <strong>the</strong> wishes of <strong>the</strong> local mayors. <strong>M<strong>in</strong><strong>in</strong>g</strong> is proceed<strong>in</strong>g despite<br />
<strong>the</strong>ir objections <strong>and</strong> without prior consultation with <strong>the</strong> people. The Environmental Compliance<br />
Certificate issued by <strong>the</strong> DENR thus lacks social acceptability. The Mangyan Taga-Bukid <strong>in</strong>digenous<br />
people on <strong>the</strong> isl<strong>and</strong> may also ultimately be affected. They hold a Certificate of Ancestral Doma<strong>in</strong><br />
Title cover<strong>in</strong>g almost 20 per cent of <strong>the</strong> isl<strong>and</strong>.<br />
The World Wildlife Fund, <strong>the</strong> International Institute for Environment <strong>and</strong> Development <strong>and</strong> <strong>the</strong><br />
Cooperative for Assistance <strong>and</strong> Relief Everywhere (CARE - Philipp<strong>in</strong>es) are currently fund<strong>in</strong>g a<br />
project to look <strong>in</strong>to <strong>the</strong> feasibility of payments for environmental services (PES’s) on <strong>the</strong> isl<strong>and</strong>. 130<br />
PES’s may <strong>in</strong> <strong>the</strong> future act as viable sources of <strong>in</strong>come for <strong>in</strong>digenous peoples while allow<strong>in</strong>g <strong>the</strong>m to<br />
pursue <strong>the</strong>ir traditional livelihoods. <strong>M<strong>in</strong><strong>in</strong>g</strong> projects that damage <strong>the</strong> environment could undercut<br />
<strong>the</strong>se attempts to build susta<strong>in</strong>able economic models for biodiversity-rich areas.<br />
Victoria, M<strong>in</strong>doro – Crew Development Group, Canada/UK<br />
Crew Development Group has applied for a permit to m<strong>in</strong>e nickel on <strong>the</strong> isl<strong>and</strong> of M<strong>in</strong>doro, to <strong>the</strong><br />
south of Luzon. The m<strong>in</strong><strong>in</strong>g area is located <strong>in</strong> an area of vital forest cover <strong>and</strong> <strong>in</strong> an important<br />
watershed area. The fact-f<strong>in</strong>d<strong>in</strong>g team met <strong>the</strong> governor of M<strong>in</strong>doro Oriental who, along with all <strong>the</strong><br />
local government units <strong>in</strong> <strong>the</strong> prov<strong>in</strong>ce, strongly opposes m<strong>in</strong><strong>in</strong>g. He expla<strong>in</strong>ed that m<strong>in</strong><strong>in</strong>g, with its<br />
negative environmental impact, is <strong>in</strong> direct conflict with <strong>the</strong>ir susta<strong>in</strong>able development plans. A prior<br />
application by Crew (<strong>the</strong>n M<strong>in</strong>dex of Norway) on <strong>the</strong> same area had been revoked by <strong>the</strong> <strong>the</strong>n<br />
Secretary of <strong>the</strong> DENR on <strong>the</strong> basis that <strong>the</strong> proposed site is a de facto watershed area <strong>and</strong> m<strong>in</strong><strong>in</strong>g<br />
could cause significant damage. This decision was overturned by <strong>the</strong> Office of <strong>the</strong> President.<br />
The current Crew application has received strong support from <strong>the</strong> national government, despite <strong>the</strong><br />
objections of <strong>the</strong> prov<strong>in</strong>cial governor, local governments <strong>and</strong> <strong>in</strong>digenous peoples. The application is<br />
now be<strong>in</strong>g approved on <strong>the</strong> basis that three barangays have supposedly consented to it. Accord<strong>in</strong>g to<br />
<strong>the</strong> governor, <strong>the</strong>se same barangays strongly reject m<strong>in</strong><strong>in</strong>g.<br />
Tampakan, M<strong>in</strong>danao - Saggitarius M<strong>in</strong>es Inc, Australia<br />
See Section 2 Trip Overview.<br />
35
Appendix 3. Catholic Bishops Conference of <strong>the</strong> Philipp<strong>in</strong>es Stance<br />
The fact-f<strong>in</strong>d<strong>in</strong>g team met two Catholic Bishops active <strong>in</strong> protection of <strong>in</strong>digenous peoples <strong>and</strong> <strong>the</strong><br />
environment. The bishops claim to have <strong>the</strong> support of <strong>the</strong> people <strong>and</strong> say <strong>the</strong>ir actions are based on<br />
<strong>the</strong> experiences of <strong>the</strong>ir communities. In January 2006 <strong>the</strong> Catholic Bishops Conference of <strong>the</strong><br />
Philipp<strong>in</strong>es (CBCP) came out with <strong>the</strong> follow<strong>in</strong>g statement oppos<strong>in</strong>g <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Act. It reaffirmed<br />
<strong>the</strong>ir statement on m<strong>in</strong><strong>in</strong>g made <strong>in</strong> 1998.<br />
A Statement on <strong>M<strong>in</strong><strong>in</strong>g</strong> Issues <strong>and</strong> <strong>Concerns</strong><br />
29th January 2006<br />
“Do not defile <strong>the</strong> l<strong>and</strong> where you live <strong>and</strong> where I dwell” (Num. 35:34)<br />
Sisters <strong>and</strong> Bro<strong>the</strong>rs <strong>in</strong> Christ: We are Pastors. We listen to <strong>the</strong> voice of <strong>the</strong> flock <strong>and</strong> take care of<br />
<strong>the</strong>m. In our task to care for <strong>the</strong>m, we reiterate our concern for <strong>the</strong> Earth, <strong>the</strong> source of life for all.<br />
1. In 1998, we <strong>in</strong> <strong>the</strong> CBCP issued “A Statement of Concern on <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Act of 1995”. We declared<br />
that <strong>the</strong> government m<strong>in</strong><strong>in</strong>g policy is offer<strong>in</strong>g our l<strong>and</strong>s to foreigners with liberal conditions while<br />
our people cont<strong>in</strong>ue to grow <strong>in</strong> poverty. (par 4) We stated that <strong>the</strong> adverse social impact on <strong>the</strong><br />
affected communities far outweigh <strong>the</strong> ga<strong>in</strong>s promised by m<strong>in</strong><strong>in</strong>g Trans-National Corporations<br />
(TNCs). (par 8) In our 1998 statement we also forewarned that <strong>the</strong> “implementation of <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Act<br />
will certa<strong>in</strong>ly destroy both environment <strong>and</strong> people <strong>and</strong> will lead to national unrest.” (par 9)<br />
2. We reaffirm our st<strong>and</strong> for <strong>the</strong> repeal of <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Act of 1995. We believe that <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Act<br />
destroys life. The right to life of people is <strong>in</strong>separable from <strong>the</strong>ir right to sources of food <strong>and</strong><br />
livelihood. Allow<strong>in</strong>g <strong>the</strong> <strong>in</strong>terests of big m<strong>in</strong><strong>in</strong>g corporations to prevail over people’s right to <strong>the</strong>se<br />
sources amounts to violat<strong>in</strong>g <strong>the</strong>ir right to life. Fur<strong>the</strong>rmore, m<strong>in</strong><strong>in</strong>g threatens people’s health <strong>and</strong><br />
environmental safety through <strong>the</strong> wanton dump<strong>in</strong>g of waste <strong>and</strong> tail<strong>in</strong>gs <strong>in</strong> rivers <strong>and</strong> seas.<br />
3. Our experiences of environmental tragedies <strong>and</strong> <strong>in</strong>cidents with <strong>the</strong> m<strong>in</strong><strong>in</strong>g transnational<br />
corporations belie all assurances of susta<strong>in</strong>able <strong>and</strong> responsible m<strong>in</strong><strong>in</strong>g that <strong>the</strong> Arroyo<br />
Adm<strong>in</strong>istration is claim<strong>in</strong>g. Increas<strong>in</strong>g number of m<strong>in</strong><strong>in</strong>g affected communities, Christians <strong>and</strong> non-<br />
Christians alike, are subjected to human rights violations <strong>and</strong> economic deprivations. We see no relief<br />
<strong>in</strong> sight.<br />
4. President Arroyo’s “<strong>M<strong>in</strong><strong>in</strong>g</strong> Revitalization Program” is encourag<strong>in</strong>g fur<strong>the</strong>r <strong>the</strong> entry <strong>and</strong><br />
operation of large-scale m<strong>in</strong><strong>in</strong>g of TNCs. Alarm<strong>in</strong>gly, <strong>the</strong> m<strong>in</strong><strong>in</strong>g tenements granted through <strong>the</strong><br />
program have encroached <strong>in</strong>to seventeen (17) of important biodiversity areas, <strong>in</strong>to thirty-five (35) of<br />
national conservation priority areas, <strong>and</strong> thirty-two (32) of national <strong>in</strong>tegrated protected areas. The<br />
promised economic benefits of m<strong>in</strong><strong>in</strong>g by <strong>the</strong>se transnational corporations are outweighed by <strong>the</strong><br />
dislocation of communities especially among our <strong>in</strong>digenous bro<strong>the</strong>rs <strong>and</strong> sisters, <strong>and</strong> <strong>the</strong> risks to<br />
health <strong>and</strong> livelihood <strong>and</strong> massive environmental damage. <strong>M<strong>in</strong><strong>in</strong>g</strong> areas rema<strong>in</strong> among <strong>the</strong> poorest<br />
areas <strong>in</strong> <strong>the</strong> country such as, <strong>the</strong> m<strong>in</strong><strong>in</strong>g communities <strong>in</strong> CARAGA, Bicol <strong>and</strong> Cordillera Regions. The<br />
cultural fabric of <strong>in</strong>digenous peoples is also be<strong>in</strong>g destroyed by <strong>the</strong> entry of m<strong>in</strong><strong>in</strong>g corporations.<br />
5. Moreover, we are apprehensive that <strong>the</strong> proposed deletion of <strong>the</strong> nationalist provisions <strong>in</strong> <strong>the</strong><br />
Constitution by <strong>the</strong> Consultative Commission (CONCOM) can pave <strong>the</strong> way to <strong>the</strong> wholesale<br />
plunder of our National Patrimony, <strong>and</strong> underm<strong>in</strong>e our Sovereignty.<br />
6. We reiterate our request to <strong>the</strong> President to recall all approved m<strong>in</strong><strong>in</strong>g concessions, <strong>and</strong> to<br />
disapprove pend<strong>in</strong>g applications.<br />
36
7. As Shepherds we rem<strong>in</strong>d <strong>the</strong> faithful of God’s <strong>in</strong>junction to us through our first parents to care for<br />
<strong>and</strong> cultivate <strong>the</strong> Earth (Genesis 2:15). As believers, we should live a lifestyle that is outwardly simple<br />
yet <strong>in</strong>wardly rich <strong>and</strong> compassionate to <strong>the</strong> Earth community. We <strong>the</strong>refore call on all religious<br />
leaders:<br />
a. To support, unify <strong>and</strong> streng<strong>the</strong>n <strong>the</strong> struggle of <strong>the</strong> local Churches <strong>and</strong> <strong>the</strong>ir constituency<br />
aga<strong>in</strong>st all m<strong>in</strong><strong>in</strong>g projects, <strong>and</strong> raise <strong>the</strong> anti-m<strong>in</strong><strong>in</strong>g campaign at <strong>the</strong> national level;<br />
b. To support <strong>the</strong> call of various sectors, especially <strong>the</strong> Indigenous Peoples, to stop <strong>the</strong> 24 Priority<br />
<strong>M<strong>in</strong><strong>in</strong>g</strong> Projects of <strong>the</strong> government, <strong>and</strong> <strong>the</strong> closure of large-scale m<strong>in</strong><strong>in</strong>g projects, for<br />
example, <strong>the</strong> Rapu-Rapu Polymetallic Project <strong>in</strong> Albay, HPP Project <strong>in</strong> Palawan, Didipio Gold-<br />
Copper Project <strong>in</strong> Nueva Vizcaya, Tampakan Copper-gold Project <strong>in</strong> South Cotabato,<br />
Canatuan Gold Project <strong>in</strong> Zamboanga del Norte, <strong>and</strong> <strong>the</strong> San Antonio Copper Project <strong>in</strong><br />
Mar<strong>in</strong>duque, among o<strong>the</strong>rs;<br />
c. To support <strong>the</strong> conduct of studies on <strong>the</strong> evil effects of m<strong>in</strong><strong>in</strong>g <strong>in</strong> dioceses;<br />
d. To support all economic activities that are life-enhanc<strong>in</strong>g <strong>and</strong> poverty-alleviat<strong>in</strong>g.<br />
8. As we have said <strong>in</strong> our 1998 statement, “even our best efforts will come to noth<strong>in</strong>g without <strong>the</strong> help<br />
of God, our Creator. We <strong>in</strong>voke upon you <strong>the</strong> grace of <strong>the</strong> Holy Spirit who renews <strong>the</strong> face of <strong>the</strong><br />
earth. With gratitude <strong>in</strong> our hearts we ask <strong>the</strong> <strong>in</strong>tercession of Mary <strong>the</strong> Mo<strong>the</strong>r of Jesus <strong>and</strong> our<br />
Mo<strong>the</strong>r to obta<strong>in</strong> for us a renewed l<strong>and</strong> <strong>and</strong> a converted people.”<br />
For <strong>the</strong> Catholic Bishops’ Conference of <strong>the</strong> Philipp<strong>in</strong>es,<br />
Angel N. Lagdameo, D.D.<br />
President<br />
Archbishop of Jaro<br />
37
Appendix 4. Investment risks<br />
The Government of <strong>the</strong> Philipp<strong>in</strong>es <strong>and</strong> <strong>the</strong> Chamber of M<strong>in</strong>es have been promot<strong>in</strong>g <strong>the</strong> Philipp<strong>in</strong>es<br />
as a m<strong>in</strong><strong>in</strong>g companies’ paradise. They claim to offer a stable environment, good law <strong>and</strong> order,<br />
strong support from government at all levels, an absence of legal barriers <strong>and</strong> a s<strong>in</strong>gle ‘one stop shop’<br />
for permits <strong>in</strong> a transparent, corruption-free environment. However, <strong>the</strong>se claims do not match <strong>the</strong><br />
reality.<br />
Favorable legal regimes<br />
The government has placed great emphasis on <strong>the</strong> reversal of <strong>the</strong> Supreme Court decision 131 of<br />
January 2004 that declared <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Act provision allow<strong>in</strong>g F<strong>in</strong>ancial <strong>and</strong> Technical Assistance<br />
Agreements (FTAA) which enable 100% foreign-owned corporations to explore, develop, exploit <strong>and</strong><br />
use <strong>the</strong> country's m<strong>in</strong>eral resources, to be unconstitutional. However, as <strong>the</strong> Chief Justice po<strong>in</strong>ted out,<br />
<strong>the</strong> subsequent Supreme Court judgment, overturn<strong>in</strong>g this decision, conta<strong>in</strong>s a number of str<strong>in</strong>gent<br />
conditions. Among <strong>the</strong>m are <strong>the</strong> follow<strong>in</strong>g:<br />
• Regardless of <strong>the</strong> FTAA provision, m<strong>in</strong>erals will always rema<strong>in</strong> subject to <strong>the</strong> full control <strong>and</strong><br />
supervision of <strong>the</strong> state.<br />
• The state reta<strong>in</strong>s ‘power to direct overall strategy <strong>and</strong> to set aside, reverse or modify plans <strong>and</strong><br />
actions of <strong>the</strong> contractor’.<br />
• While <strong>the</strong> President is given <strong>the</strong> prerogative to determ<strong>in</strong>e <strong>the</strong> net m<strong>in</strong><strong>in</strong>g revenues between<br />
<strong>the</strong> contractor <strong>and</strong> <strong>the</strong> state, if <strong>the</strong>re is deemed to be grave abuse of discretion <strong>in</strong> <strong>the</strong> execution<br />
of this prerogative <strong>the</strong> court may nullify specific provisions of <strong>the</strong> FTAA that are contrary to<br />
law or are manifestly <strong>and</strong> grossly disadvantageous to <strong>the</strong> nation.<br />
• The court cautioned <strong>the</strong> President to take appropriate steps to secure <strong>the</strong> best terms <strong>and</strong><br />
conditions <strong>in</strong> <strong>the</strong> circumstances stat<strong>in</strong>g that:<br />
‘if it should later be found that <strong>the</strong> share (of <strong>the</strong> profit) agreed upon is grossly<br />
disadvantageous to <strong>the</strong> government, <strong>the</strong> officials responsible for enter<strong>in</strong>g <strong>in</strong>to such<br />
contract on its behalf will have to answer to <strong>the</strong> court for <strong>the</strong>ir malfeasance <strong>and</strong> <strong>the</strong><br />
contract provisions voided’ 132<br />
In summary contracts are not as secure as <strong>the</strong> government <strong>and</strong> Chamber of M<strong>in</strong>es would make <strong>the</strong>m<br />
appear. Changes <strong>in</strong> adm<strong>in</strong>istration, or challenges to <strong>the</strong> real benefits of specific FTAAs <strong>in</strong> <strong>the</strong> courts,<br />
may result <strong>in</strong> <strong>the</strong>ir be<strong>in</strong>g declared void.<br />
The Philipp<strong>in</strong>e Constitution also offers strong protections of economic rights. The Chief Justice has<br />
stated that <strong>the</strong> courts are <strong>the</strong> ‘protectors also of economic rights’. 133 He has also highlighted that <strong>the</strong><br />
constitution promotes ‘a just <strong>and</strong> dynamic social order that will ensure <strong>the</strong> prosperity <strong>and</strong><br />
<strong>in</strong>dependence of <strong>the</strong> nation <strong>and</strong> free <strong>the</strong> people from poverty’ m<strong>and</strong>at<strong>in</strong>g a ‘more equitable<br />
distribution of opportunities, <strong>in</strong>come <strong>and</strong> wealth’. The track record of <strong>the</strong> Philipp<strong>in</strong>e Supreme Court<br />
should also be borne <strong>in</strong> m<strong>in</strong>d. In its first decision on <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Act, FTAAs were ruled<br />
unconstitutional. It has also <strong>in</strong> <strong>the</strong> past upheld <strong>the</strong> right to a healthy environment, as stated <strong>in</strong> <strong>the</strong><br />
constitution, 134 as a ‘specific, fundamental legal right’. 135 This right to a healthy environment was<br />
ruled to supersede non-impairment of contract laws <strong>and</strong> used to nullify exist<strong>in</strong>g logg<strong>in</strong>g permits.<br />
O<strong>the</strong>r legal considerations<br />
In 2006 an alliance of civil society groups lobbied House <strong>and</strong> Senate members for a revised m<strong>in</strong><strong>in</strong>g<br />
bill. The opposition to <strong>the</strong> exist<strong>in</strong>g Act is grow<strong>in</strong>g, with <strong>the</strong> Catholic Bishops Conference com<strong>in</strong>g out<br />
strongly aga<strong>in</strong>st it <strong>in</strong> January 2006. The <strong>in</strong>digenous movement also clearly opposes <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Act<br />
stance. Scrut<strong>in</strong>y of companies’ adherence to <strong>the</strong> FPIC process is <strong>in</strong>creas<strong>in</strong>g. Numerous resolutions<br />
have been filed <strong>in</strong> <strong>the</strong> Lower House question<strong>in</strong>g <strong>the</strong> legitimacy of <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Act <strong>and</strong> call<strong>in</strong>g for<br />
<strong>in</strong>vestigation of specific m<strong>in</strong><strong>in</strong>g operations such as TVI <strong>in</strong> Mt Canatuan <strong>in</strong> Zamboanga del Norte,<br />
38
Placer Dome (now Barrick Gold) <strong>in</strong> Mar<strong>in</strong>duque <strong>and</strong> Lafayette <strong>in</strong> Rapu-Rapu. Congressional<br />
Hear<strong>in</strong>gs have been held on certa<strong>in</strong> m<strong>in</strong><strong>in</strong>g operations <strong>and</strong> courts are hear<strong>in</strong>g applications for<br />
<strong>in</strong>junctions aga<strong>in</strong>st m<strong>in</strong><strong>in</strong>g operations. 136<br />
Changes made by <strong>the</strong> government to laws designed to protect <strong>the</strong> environment <strong>and</strong> <strong>in</strong>digenous<br />
peoples are be<strong>in</strong>g challenged. In addition to a constitution that affords protection to <strong>the</strong> environment,<br />
economic rights of <strong>the</strong> poor <strong>and</strong> <strong>in</strong>digenous rights, <strong>the</strong> Philipp<strong>in</strong>es has laws to protect <strong>the</strong><br />
environment <strong>and</strong> <strong>in</strong>digenous peoples’ rights, as well as water codes 137 <strong>and</strong> a Local Government Code<br />
that allow challenges to m<strong>in</strong><strong>in</strong>g operations on a range of grounds. In a society considered one of <strong>the</strong><br />
most litigious <strong>in</strong> <strong>the</strong> world, with a highly active civil society, legal challenges to m<strong>in</strong><strong>in</strong>g operations at<br />
home <strong>and</strong> abroad are <strong>in</strong>evitable.<br />
A recent example of litigation outside <strong>the</strong> Philipp<strong>in</strong>es is <strong>the</strong> case filed <strong>in</strong> Nevada by <strong>the</strong> governor of<br />
Mar<strong>in</strong>duque aga<strong>in</strong>st Placer Dome. The case is for damage to <strong>the</strong> environment <strong>and</strong> livelihoods over<br />
<strong>the</strong> 30 years of <strong>the</strong> Marcopper m<strong>in</strong>e’s operation. Placer Dome denied responsibility for <strong>the</strong> major<br />
accidents <strong>in</strong> 1996, po<strong>in</strong>t<strong>in</strong>g to a m<strong>in</strong>or earthquake that took place a week before <strong>the</strong> tragedy as <strong>the</strong><br />
cause. 138 Barrick Gold, which acquired 81 per cent of Placer Dome’s shares, has been <strong>in</strong>cluded as a<br />
defendant <strong>in</strong> <strong>the</strong> case. 139 In a country with a history of m<strong>in</strong><strong>in</strong>g disasters <strong>and</strong> a high risk of flood<strong>in</strong>g,<br />
l<strong>and</strong>slides, earthquakes, typhoons <strong>and</strong> volcanoes, similar cases can be expected to follow.<br />
Stable <strong>in</strong>vestment environment<br />
The current political environment <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es is far from stable. The clearest evidence of this<br />
came <strong>in</strong> February of 2006 when follow<strong>in</strong>g claims of a planned coup d’etat, <strong>the</strong> President declared a<br />
State of Emergency. More recently <strong>the</strong>re have been calls from <strong>the</strong> m<strong>in</strong>ority leader <strong>in</strong> <strong>the</strong> Senate for <strong>the</strong><br />
President’s resignation. These followed earlier attempts to have her impeached. With House elections<br />
due next year <strong>and</strong> grow<strong>in</strong>g <strong>in</strong>ternational attention be<strong>in</strong>g focused on <strong>the</strong> government’s atrocious<br />
human rights record, <strong>the</strong> political environment <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es is regarded by many to be <strong>in</strong> a very<br />
fragile state. This has resulted <strong>in</strong> a deep crisis <strong>in</strong> <strong>the</strong> political <strong>and</strong> social <strong>in</strong>stitutions. The level of<br />
<strong>in</strong>security was evident <strong>in</strong> <strong>the</strong> President’s State of <strong>the</strong> Nation Address (SONA), held dur<strong>in</strong>g <strong>the</strong> FFT<br />
trip, when sixteen thous<strong>and</strong> soldiers were posted around Congress. In parallel to this political<br />
uncerta<strong>in</strong>ty <strong>the</strong>re is grow<strong>in</strong>g unrest among lower levels <strong>in</strong> <strong>the</strong> military sector. Throughout <strong>the</strong><br />
country <strong>the</strong>re is a proliferation of arms <strong>and</strong> <strong>the</strong> government’s current hard l<strong>in</strong>e approach to <strong>the</strong> New<br />
People’s Army (NPA) is expected to lead to <strong>in</strong>creased violence <strong>and</strong> escalated human rights abuses.<br />
Among <strong>the</strong> youth <strong>the</strong>re is widespread hopelessness about <strong>the</strong> future of <strong>the</strong>ir country, its leaders <strong>and</strong><br />
<strong>in</strong>stitutions. 140 This uncerta<strong>in</strong>ty is spill<strong>in</strong>g <strong>in</strong>to <strong>the</strong> economic sphere with <strong>the</strong> local bus<strong>in</strong>ess sector<br />
lack<strong>in</strong>g <strong>in</strong> confidence <strong>and</strong> hampered by an <strong>in</strong>ability to plan beyond <strong>the</strong> short term.<br />
Implications for m<strong>in</strong><strong>in</strong>g<br />
Keenly aware of <strong>the</strong> fact that environmental protections are not adequately enforced 141 , civil society,<br />
<strong>in</strong>digenous peoples <strong>and</strong> church groups have all become watchdogs of <strong>the</strong> government’s performance<br />
<strong>in</strong> this regard. As well as fil<strong>in</strong>g legal cases, <strong>the</strong>y have started mak<strong>in</strong>g representations to <strong>in</strong>ternational<br />
forums, such as <strong>the</strong> United Nations, to <strong>the</strong> home governments of <strong>the</strong> m<strong>in</strong><strong>in</strong>g companies, to <strong>the</strong> public<br />
at home <strong>and</strong> to company shareholders.<br />
This pressure has an impact on m<strong>in</strong><strong>in</strong>g. It has resulted <strong>in</strong> a commitment by both Houses of Congress<br />
to review <strong>the</strong> 1995 <strong>M<strong>in</strong><strong>in</strong>g</strong> Act. A recent letter 142 from <strong>the</strong> Chamber of M<strong>in</strong>es to <strong>the</strong> President, dated 29<br />
August 2006, highlighted concern over what <strong>the</strong> chamber perceives as ‘a seem<strong>in</strong>g policy shift from<br />
active promotion of <strong>the</strong> previous two years to one of cautious reconsideration of policy reforms’. In<br />
his letter <strong>the</strong> President of <strong>the</strong> Chamber of M<strong>in</strong>es, Benjam<strong>in</strong> Philip Romualdez writes that this ‘has led<br />
m<strong>in</strong><strong>in</strong>g companies to believe <strong>and</strong> confirm <strong>the</strong>ir early suspicions that <strong>in</strong>vestment policies <strong>in</strong> <strong>the</strong><br />
Philipp<strong>in</strong>es are not stable <strong>and</strong> are heightened by high political risks.’<br />
39
In Rapu-Rapu, follow<strong>in</strong>g two accidents, an <strong>in</strong>dependent commission recommended <strong>the</strong> closure of <strong>the</strong><br />
m<strong>in</strong><strong>in</strong>g operations. International attention was subsequently focused on Lafayette’s actions <strong>and</strong> <strong>the</strong>ir<br />
share price fell by almost 50 per cent <strong>in</strong> four months. 143<br />
Many of <strong>the</strong> m<strong>in</strong>eral-rich l<strong>and</strong>s of <strong>the</strong> Philipp<strong>in</strong>es lie <strong>in</strong>, or close to, areas where Muslim rebels <strong>and</strong><br />
Communist <strong>in</strong>surgent are active. Given <strong>the</strong> current global ‘war on terror’, payments made to <strong>the</strong>se<br />
groups by m<strong>in</strong><strong>in</strong>g companies, which <strong>in</strong> <strong>the</strong> past were described as ‘<strong>the</strong> cost of do<strong>in</strong>g bus<strong>in</strong>ess’ 144 will<br />
no longer be tolerated by <strong>the</strong> <strong>in</strong>ternational community. The UN Special Rapporteur on Freedom of<br />
Expression has made a commitment to exam<strong>in</strong>e extrajudicial kill<strong>in</strong>gs <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es, so <strong>the</strong> l<strong>in</strong>ks<br />
between m<strong>in</strong><strong>in</strong>g <strong>and</strong> extrajudicial kill<strong>in</strong>gs of m<strong>in</strong><strong>in</strong>g activists will come under <strong>the</strong> spotlight. The<br />
actions of m<strong>in</strong><strong>in</strong>g companies will <strong>in</strong>creas<strong>in</strong>gly come under <strong>the</strong> scrut<strong>in</strong>y of <strong>the</strong> <strong>in</strong>ternational<br />
community, <strong>and</strong> ultimately of <strong>the</strong>ir own shareholders.<br />
40
Appendix 5. The Threat to Indigenous Rights <strong>and</strong> Environment by <strong>M<strong>in</strong><strong>in</strong>g</strong><br />
- A Philipp<strong>in</strong>e Case Study<br />
A Letter of His Excellency<br />
MOST REV. RAMON B. VILLENA, D.D.<br />
Bishop's Residence Bishop of Bayombong,<br />
Bayombong, 3700 Nueva Vizcaya<br />
Thursday, 21 September 2006<br />
Latest government statistics on national physical accounts show that m<strong>in</strong><strong>in</strong>g <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es has ga<strong>in</strong>ed <strong>in</strong><br />
value. However <strong>the</strong> environmental degradation it has caused has also <strong>in</strong>creased. This, it seems, is <strong>the</strong> pr<strong>in</strong>cipal<br />
trigger of <strong>the</strong> cont<strong>in</strong>u<strong>in</strong>g wide opposition aga<strong>in</strong>st m<strong>in</strong><strong>in</strong>g as an economic activity <strong>in</strong> <strong>the</strong> country. Placed fur<strong>the</strong>r<br />
<strong>in</strong> <strong>the</strong> context of extremely high biodiversity, low l<strong>and</strong> base, ris<strong>in</strong>g dem<strong>and</strong> for l<strong>and</strong> due to a ris<strong>in</strong>g population,<br />
extremely socially sensitive tenure regimes <strong>in</strong>volv<strong>in</strong>g <strong>in</strong>digenous peoples, <strong>and</strong> high downstream impacts of<br />
open extraction <strong>in</strong> a generally mounta<strong>in</strong>ous archipelago, <strong>the</strong> negative externalities of m<strong>in</strong><strong>in</strong>g <strong>in</strong>vite magnified<br />
cause for social, ethical, religious <strong>and</strong> ecological concerns.<br />
International m<strong>in</strong><strong>in</strong>g companies from Australia (n<strong>in</strong>e at <strong>the</strong> last count) have entered <strong>in</strong>to f<strong>in</strong>ancial <strong>and</strong> technical<br />
assistance agreements. Climax Arimco <strong>M<strong>in</strong><strong>in</strong>g</strong> Corp. (CAMC), whose name has been changed to Australasian<br />
Philipp<strong>in</strong>es <strong>M<strong>in</strong><strong>in</strong>g</strong> Inc. (APMI) operates on 21,465 hectares of <strong>the</strong> Didipio Copper/Gold Project <strong>in</strong> Didipio,<br />
Kasibu, Nueva Vizcaya. The site is located some 200 km north of Manila.<br />
The company claims that it has "strong local community <strong>and</strong> government support." This could not be far<strong>the</strong>r<br />
from <strong>the</strong> truth. The people have resisted <strong>the</strong> entry of <strong>the</strong> m<strong>in</strong>e from <strong>the</strong> beg<strong>in</strong>n<strong>in</strong>g of <strong>the</strong> mid 1990s. Here are<br />
some events:<br />
1. Invok<strong>in</strong>g a people's <strong>in</strong>itiative, <strong>the</strong> local barangay mustered 20% of <strong>the</strong> legitimate voters <strong>and</strong> filed a petition to<br />
<strong>the</strong> Commission on Election (COMELEC) for <strong>the</strong> conduct of a referendum to decide whe<strong>the</strong>r <strong>the</strong> m<strong>in</strong>e should be<br />
allowed <strong>in</strong> or not. However, <strong>the</strong> COMELEC took almost four years to act on <strong>the</strong> petition. Eventually, <strong>the</strong><br />
petition became moot <strong>and</strong> academic s<strong>in</strong>ce <strong>the</strong> majority of <strong>the</strong> anti-m<strong>in</strong><strong>in</strong>g c<strong>and</strong>idates for <strong>the</strong> Sangguniang<br />
Barangay (local legislative body) won 6 out of 8 seats. The people retracted <strong>the</strong>ir petition for obvious reasons.<br />
2. The local barangay council (Didipio) had passed a resolution approv<strong>in</strong>g <strong>the</strong> m<strong>in</strong>e's entry, which was revoked<br />
by <strong>the</strong> new set of barangay officials after <strong>the</strong> 2004 election. (The officials were reportedly elected on <strong>the</strong> basis of<br />
<strong>the</strong>ir anti-Climax Arimco st<strong>and</strong>.)<br />
3. In July 2005, <strong>the</strong> municipality of Kasibu voted aga<strong>in</strong>st <strong>the</strong> entry of <strong>the</strong> m<strong>in</strong>e, but <strong>the</strong> prov<strong>in</strong>cial government<br />
(egged on by <strong>the</strong> regional MGB) approved it <strong>the</strong> follow<strong>in</strong>g month.<br />
4. With<strong>in</strong> a week of <strong>the</strong> prov<strong>in</strong>cial board's decision, <strong>the</strong> people – led by DESAMA (Didipio Earth Savers<br />
Movement) <strong>and</strong> supported by <strong>the</strong> Social Action Centre of <strong>the</strong> Diocese of Bayombong, Nueva Vizcaya – turned<br />
out <strong>in</strong> a well-attended <strong>in</strong>dignation rally <strong>in</strong> front of <strong>the</strong> prov<strong>in</strong>cial capitol. Despite <strong>the</strong> ra<strong>in</strong>s <strong>and</strong> <strong>the</strong> short notice,<br />
some 1,000 people were at <strong>the</strong> rally.<br />
The local economy is agricultural, with fruits, vegetables, <strong>and</strong> rice grown <strong>in</strong> <strong>the</strong> prov<strong>in</strong>ce <strong>and</strong> brought for sale to<br />
Manila. There is also a thriv<strong>in</strong>g citrus fruit production, for which a festival is held every two years, to announce<br />
to all that "<strong>the</strong> people’s gold is picked from a tree, not dug from <strong>the</strong> ground." (Their situation is much like that<br />
of Tambogr<strong>and</strong>e, Peru, where farmers engaged <strong>in</strong> grow<strong>in</strong>g lemons <strong>and</strong> mangoes fought a giant gold m<strong>in</strong>e.)<br />
Brooms <strong>and</strong> baskets woven by <strong>the</strong> people from locally-sourced plants are also brought to Manila or sold along<br />
<strong>the</strong> highway.<br />
The people are a mixture of Ilocano <strong>and</strong> several <strong>in</strong>digenous tribes, notably <strong>the</strong> <strong>in</strong>digenous Bugkalot (or Ilongot)<br />
<strong>and</strong> <strong>the</strong> Ifugao, who went east when <strong>the</strong> large dams <strong>in</strong> <strong>the</strong> Cordilleras displaced <strong>the</strong>m <strong>in</strong> <strong>the</strong> 1960s <strong>and</strong> 1970s.<br />
The people resist <strong>the</strong> m<strong>in</strong>e because:<br />
41
5. It will deprive <strong>the</strong>m of <strong>the</strong>ir l<strong>and</strong> <strong>and</strong> livelihood, e.g. Sitio D<strong>in</strong>auyan, Climax <strong>in</strong>tends to turn <strong>in</strong>to its tail<strong>in</strong>gs<br />
dam. To do this, <strong>the</strong> company will need to drive away <strong>the</strong> local people from <strong>the</strong>ir l<strong>and</strong>s.<br />
6. Right now, <strong>the</strong> company is go<strong>in</strong>g through what <strong>the</strong> people call "behest buy<strong>in</strong>g," where a comb<strong>in</strong>ation of<br />
<strong>in</strong>timidation <strong>and</strong> verbal harassment is employed to get <strong>the</strong> citizens to give up <strong>the</strong>ir l<strong>and</strong>.<br />
7. The company has also resorted to bribery, as reported by named officials of <strong>the</strong> Kabataang Barangay to give<br />
up <strong>the</strong>ir anti-m<strong>in</strong><strong>in</strong>g stance.<br />
8. Climax has deceitfully set up pseudo-Indigenous People (IP) groups among those whom <strong>the</strong>y have<br />
"conv<strong>in</strong>ced" to move to Kasibu from <strong>the</strong> neighbor<strong>in</strong>g town of Cabarroguis <strong>and</strong> Nagtipunan, both municipalities<br />
of Quir<strong>in</strong>o Prov<strong>in</strong>ce.<br />
9. The entry of <strong>the</strong> m<strong>in</strong>e has caused divisions with<strong>in</strong> families <strong>and</strong> <strong>the</strong> barangay itself, underm<strong>in</strong>ed <strong>the</strong> local<br />
culture of consultation <strong>and</strong> cooperation (Free <strong>and</strong> Prior Informed Consent) <strong>and</strong> weakened <strong>in</strong>digenous cultural<br />
practices through <strong>the</strong> company's divide <strong>and</strong> rule tactics, bribery <strong>and</strong> <strong>in</strong>timidation, result<strong>in</strong>g <strong>in</strong> a case filed by<br />
DESAMA <strong>in</strong> <strong>the</strong> local courts.<br />
Who are <strong>the</strong> people help<strong>in</strong>g <strong>the</strong> local communities:<br />
10. DESAMA is <strong>the</strong> local people's organization, composed of residents of Didipio <strong>and</strong> those from o<strong>the</strong>r<br />
barangays who oppose <strong>the</strong> entry of <strong>the</strong> m<strong>in</strong>e.<br />
11. The Diocesan Social Action Commission, <strong>the</strong> social advocacy <strong>and</strong> service arm of <strong>the</strong> Diocese of Bayombong,<br />
under <strong>the</strong> leadership of Bishop Ramon B. Villena.<br />
12. O<strong>the</strong>r groups: Local Peoples' organizations – KIRED, KOVENANT, LUFA, GNBP, Local NGO's – ACDA,<br />
Task Force Deta<strong>in</strong>ees – Nor<strong>the</strong>rn Luzon (Region 2), Save <strong>the</strong> River Movement (referr<strong>in</strong>g to Cagayan River, <strong>the</strong><br />
ma<strong>in</strong> river system <strong>in</strong> Cagayan Valley, one of whose tributaries is D<strong>in</strong>auyan River where <strong>the</strong> tail<strong>in</strong>gs will be<br />
released), Legal Resources Centre, Foundation for <strong>the</strong> Philipp<strong>in</strong>e Environment, Tebtebba Foundation, <strong>and</strong><br />
Alyansa Tigil M<strong>in</strong>a.<br />
The Didipio project is strongly opposed by <strong>the</strong> majority of <strong>the</strong> people <strong>in</strong> Quir<strong>in</strong>o <strong>and</strong> Nueva Vizcaya <strong>and</strong> a<br />
broad alliance of local government bodies, <strong>the</strong> Catholic Bishop <strong>and</strong> church organizations, environmental<br />
activists, human rights groups, farmers' organizations, organizations work<strong>in</strong>g with social issues <strong>and</strong> Indigenous<br />
Peoples' federations.<br />
The opposition of <strong>the</strong> residents of Didipio <strong>and</strong> civil society groups should be more than sufficient <strong>in</strong> Philipp<strong>in</strong>e<br />
Law to prevent <strong>the</strong> project as <strong>the</strong> <strong>in</strong>formed consent from <strong>the</strong> affected <strong>in</strong>digenous peoples, <strong>and</strong> <strong>the</strong> consent <strong>and</strong><br />
endorsement of all affected populations <strong>and</strong> local authorities, are required for a project of this type to proceed.<br />
However, President Arroyo <strong>and</strong> her central government agencies are strongly promot<strong>in</strong>g foreign m<strong>in</strong><strong>in</strong>g<br />
<strong>in</strong>vestment. They are backed <strong>in</strong> <strong>the</strong>ir support to <strong>the</strong> m<strong>in</strong><strong>in</strong>g sector by <strong>the</strong> World Bank, Asian Development Bank<br />
<strong>and</strong> o<strong>the</strong>r <strong>in</strong>ternational <strong>in</strong>vestors. <strong>Concerns</strong> about abuse of process are based on past experience of <strong>the</strong> impact of<br />
m<strong>in</strong><strong>in</strong>g <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es, e.g. <strong>the</strong> ongo<strong>in</strong>g impact of <strong>the</strong> Australian (Melbourne) Lafayette Rapu Rapu<br />
polymetallic m<strong>in</strong>e cyanide spills of contam<strong>in</strong>ated tail<strong>in</strong>gs on <strong>the</strong> environment, on safeguard<strong>in</strong>g <strong>the</strong> rights of<br />
local communities <strong>and</strong> <strong>in</strong>digenous groups, on accelerat<strong>in</strong>g deforestation with consequences for biodiversity,<br />
water <strong>and</strong> soil protection <strong>and</strong> impacts on local fisherfolk.<br />
The Catholic Church wishes to register its concern at <strong>the</strong> breakdown <strong>in</strong> legal process <strong>and</strong> good governance <strong>and</strong><br />
<strong>the</strong> proper protection of local <strong>and</strong> <strong>in</strong>digenous rights manifest <strong>in</strong> <strong>the</strong> Didipio Copper/Gold Project <strong>in</strong> Didipio.<br />
The Philipp<strong>in</strong>e Catholic Bishops seek <strong>the</strong> active support of Australian Bishops, <strong>in</strong>stitutions <strong>and</strong> civil society<br />
actors for <strong>the</strong> protection of democratic processes, local governance <strong>and</strong> adequate safeguards for <strong>the</strong> human<br />
rights of Indigenous Peoples, <strong>the</strong> poor <strong>and</strong> marg<strong>in</strong>alized, as you celebrate Social Justice Sunday on <strong>the</strong> 24th of<br />
September. As we stated clearly <strong>and</strong> unequivocally <strong>in</strong> our Pastoral Letter on <strong>M<strong>in</strong><strong>in</strong>g</strong>:<br />
"[We] support <strong>the</strong> call of various sectors, especially <strong>the</strong> Indigenous Peoples, to stop <strong>the</strong> 24 Priority <strong>M<strong>in</strong><strong>in</strong>g</strong><br />
Projects of <strong>the</strong> government, <strong>and</strong> <strong>the</strong> closure of large-scale m<strong>in</strong><strong>in</strong>g projects, for example, <strong>the</strong> Rapu-Rapu<br />
Polymetallic Project <strong>in</strong> Albay, HPP Project <strong>in</strong> Palawan, Didipio Gold-Copper Project <strong>in</strong> Nueva Vizcaya,<br />
Tampakan Copper-Gold Project <strong>in</strong> South Cotabato, Canatuan Gold Project <strong>in</strong> Zamboanga del Norte, <strong>and</strong> <strong>the</strong><br />
San Antonio Copper Project <strong>in</strong> Mar<strong>in</strong>duque, among o<strong>the</strong>rs; [we] support <strong>the</strong> conduct of studies on <strong>the</strong> evil<br />
effects of m<strong>in</strong><strong>in</strong>g <strong>in</strong> dioceses; [we] support all economic activities that are life-enhanc<strong>in</strong>g <strong>and</strong> povertyalleviat<strong>in</strong>g."<br />
(January 29, 2006)<br />
42
We are also call<strong>in</strong>g for stronger control <strong>and</strong> safeguards over <strong>the</strong> activities of corporations based <strong>in</strong> <strong>the</strong><br />
Philipp<strong>in</strong>es <strong>and</strong> Australia <strong>and</strong> operat<strong>in</strong>g around <strong>the</strong> world with particular attention to <strong>the</strong> extractive <strong>in</strong>dustries<br />
sector, which has such a large impact on <strong>the</strong> environment <strong>and</strong> such a poor record <strong>in</strong> its deal<strong>in</strong>gs on issues of<br />
human rights <strong>and</strong> susta<strong>in</strong>able development. We pray for your support <strong>and</strong> underst<strong>and</strong><strong>in</strong>g <strong>in</strong> <strong>the</strong> struggle<br />
aga<strong>in</strong>st irresponsible m<strong>in</strong><strong>in</strong>g <strong>and</strong> blatant exploitation of Indigenous Peoples.<br />
We would like to express our appreciation of <strong>the</strong> efforts of <strong>the</strong> Australian Bishops' Committee for Justice,<br />
Development <strong>and</strong> Peace for <strong>the</strong>ir pastoral statement "CHRISTIANS AND THEIR DUTY TOWARDS NATURE"<br />
where <strong>the</strong>y have expressed <strong>the</strong>ir call of concern for <strong>the</strong> care <strong>and</strong> responsibility towards creation:<br />
“We must consider very carefully <strong>the</strong> ways <strong>in</strong> which we can help o<strong>the</strong>r nations not to harm <strong>the</strong> environment.<br />
Richer nations can criticize <strong>the</strong> poorer ones for destroy<strong>in</strong>g <strong>the</strong>ir forests <strong>and</strong> ravag<strong>in</strong>g <strong>the</strong>ir l<strong>and</strong>, even though <strong>the</strong><br />
more affluent nations contribute to that destruction. Exist<strong>in</strong>g <strong>in</strong>ternational economic structures are such that<br />
nations <strong>in</strong> <strong>the</strong> third world are forced <strong>in</strong>to us<strong>in</strong>g up <strong>the</strong>ir natural resources.”<br />
The <strong>in</strong>vitation gives us <strong>the</strong> assurance that we are one <strong>in</strong> this advocacy of cont<strong>in</strong>u<strong>in</strong>g our duty <strong>and</strong> responsibility<br />
towards nature <strong>and</strong> <strong>the</strong> Creator, thus, an essential part of our Faith.<br />
BISHOP RAMON B. VILLENA, D.D.<br />
Bishop of Bayombong Nueva Vizcaya<br />
For fur<strong>the</strong>r <strong>in</strong>formation contact:<br />
SR. EDEN ORLINO, SPC Diocesan Social Action Commission<br />
Diocese of Bayombong<br />
Lunduyan Pastoral Centre<br />
Basa Street<br />
Bayombong<br />
3700, Nueva Vizcaya<br />
43
Appendix 6. Petition aga<strong>in</strong>st TVI exploration permit <strong>in</strong> Midsalip.<br />
Republic of <strong>the</strong> Philipp<strong>in</strong>es<br />
Prov<strong>in</strong>ce of Zamboanga del Sur<br />
Municipality of Midsalip<br />
November 22, 2006<br />
The Regional Director—R —IX<br />
Department of Environmental & Natural Resources<br />
M<strong>in</strong>es <strong>and</strong> Geosciences Bureau - IX,<br />
2 nd Floor GL Build<strong>in</strong>g, Veteran Avenue<br />
Tetuan, Zamboanga City<br />
Sir/Madam;<br />
SUBJECT:<br />
PETITION AGAINST EXPLORATION<br />
PERMIT APPLICATION OF TVI RESOURCE<br />
DEVELOPMENT PHILS., INC. (EXPA 00056-IX)<br />
We had recently heard that <strong>the</strong> TVI was apply<strong>in</strong>g for an Exploration Permit <strong>in</strong> our town<br />
of Midsalip. We learnt this also from <strong>the</strong> DENR, Pagadian City. So from <strong>the</strong> month of October<br />
some of our companions went regularly to <strong>the</strong> Municipal Build<strong>in</strong>gs to check if <strong>the</strong> application<br />
was posted on <strong>the</strong> bullet<strong>in</strong> board. We did this every week. Eulalia Abadia, Manuela Pateno<br />
<strong>and</strong> Ricardo Tol<strong>in</strong>o visited aga<strong>in</strong> November 20 th 2006 <strong>and</strong> <strong>the</strong>re was no Application of TVI<br />
RESOURCE DEVELOPMENT PHILS., INC. posted on <strong>the</strong> Public Bullet<strong>in</strong> Board. However<br />
when <strong>the</strong>y went upstairs to <strong>the</strong> Mayor’s Office <strong>the</strong>y discovered that <strong>the</strong> Application had been<br />
posted on a wall outside her clerk’s office on October 25 th 2006. Immediately a Government<br />
Employer transferred <strong>the</strong> application to <strong>the</strong> Public Bullet<strong>in</strong> Board downstairs. It was only on<br />
November 20th 2006 that <strong>the</strong> TVI application was posted on <strong>the</strong> Public Bullet<strong>in</strong> Board. Even<br />
<strong>the</strong> Vice Mayor <strong>and</strong> Municipal Secretary were unaware of <strong>the</strong> TVI application until<br />
November 20 th 2006.<br />
That’s why, yet once aga<strong>in</strong>, we are consistently <strong>and</strong> ardently send<strong>in</strong>g a Petition Aga<strong>in</strong>st<br />
any k<strong>in</strong>d or form of <strong>M<strong>in</strong><strong>in</strong>g</strong> Activities <strong>in</strong> our locality. We have sent to you (<strong>in</strong> your office)<br />
s<strong>in</strong>ce last July 28, 2001 more than 5 years now, that we <strong>the</strong> Peoples of Midsalip, through <strong>the</strong><br />
groups of {BUHILAMAN) ‘Buh<strong>in</strong>g L<strong>and</strong>ong Aron Molambo ang Nasud”, (HUBADMI)<br />
“Hugpong sa mga Biyuda alang sa Demokrasya sa Midsalip”, EARTHLINKS, {KABAMI)<br />
“Kahugpongan sa mga Bakwiter sa Midsalip”, {PMCB} “Prov<strong>in</strong>cial Masipag Coord<strong>in</strong>at<strong>in</strong>g<br />
Body; {PPC} “Parish Pastoral Council”; {TIMPOBIA} “Timbaboy Poblacion B. Irrigators<br />
Association”; POBLACION A – GUMA IRRIGATORS ASSOCIATION INC.; BIBILOP<br />
IRRIGATORS ASSOCIATION; AND EXPANDED GROUP AGAINST<br />
MINING/ECOLOGICAL DESTRUCI1ON, strongly <strong>and</strong> passionately assert<strong>in</strong>g our<br />
opposition to any <strong>M<strong>in</strong><strong>in</strong>g</strong> operations anywhere <strong>in</strong> our town <strong>in</strong> Midsalip <strong>and</strong> <strong>the</strong> neighbor<strong>in</strong>g<br />
towns.<br />
44
Petition aga<strong>in</strong>st exploration permit application<br />
of TVI RESOURCE DEVELOPMENT PHILS, Inc. (Expa 00056-lX)<br />
Page 2 of 4pages<br />
THESE ARE OUR REASONS FOR OPPOSING MINING OPERATION:<br />
1. We wont allow our Mounta<strong>in</strong>s, Forests, L<strong>and</strong> <strong>and</strong> Waters of Midsalip to be destroyed<br />
because of <strong>M<strong>in</strong><strong>in</strong>g</strong>, as <strong>the</strong> Livelihood of <strong>the</strong> Farmers <strong>in</strong> our place will be lost, most specially<br />
those liv<strong>in</strong>g <strong>in</strong> <strong>the</strong> effected barangay’s.<br />
2. We wont allow M<strong>in</strong>ers to destroy <strong>the</strong> home (place) <strong>and</strong> L<strong>and</strong> of Subanen Tribe (<strong>in</strong>digenous<br />
peoples) especially <strong>the</strong>ir Sacred Mounta<strong>in</strong>, Mount P<strong>in</strong>ukis, like what happened <strong>in</strong> Loacan,<br />
Benguet, <strong>in</strong> Sibutad, Zamboanga del Norte, <strong>and</strong> what happened <strong>in</strong> o<strong>the</strong>r places <strong>in</strong> <strong>the</strong><br />
Philipp<strong>in</strong>es. Likewise <strong>in</strong> o<strong>the</strong>r places of <strong>the</strong> World <strong>the</strong> Sacred Mounta<strong>in</strong>s <strong>and</strong> Holy places of<br />
<strong>the</strong> Indigenous Peoples were destroyed because of <strong>M<strong>in</strong><strong>in</strong>g</strong>.<br />
3. We wont allow <strong>the</strong>m to leave us with <strong>the</strong>ir waste <strong>and</strong> damages as <strong>the</strong> result of m<strong>in</strong><strong>in</strong>g.<br />
Based on our experiences of <strong>the</strong> places that were destroyed by Logg<strong>in</strong>g <strong>the</strong>y never went<br />
back to <strong>the</strong>ir orig<strong>in</strong>al state. What if m<strong>in</strong><strong>in</strong>g? Through open-cut <strong>and</strong> open-pit large-scale<br />
production <strong>the</strong>y wilt destroy our Mounta<strong>in</strong>s. If <strong>the</strong> Logg<strong>in</strong>g Company did not comply with<br />
<strong>the</strong> Written Agreement {TLA} “Timber License Agreement” or Reforestation, how much<br />
more will <strong>the</strong> m<strong>in</strong><strong>in</strong>g companies not conform to any written agreement. How much more<br />
will <strong>the</strong> environment of Midsalip not return to its orig<strong>in</strong>al slate after <strong>the</strong> m<strong>in</strong><strong>in</strong>g companies<br />
move on to o<strong>the</strong>r places.<br />
4. The destruction of <strong>the</strong> Mounta<strong>in</strong>s results <strong>in</strong> many calamities like soil erosion to <strong>the</strong> Farms,<br />
Creeks, Rivers, <strong>and</strong> Sea. This is what happened <strong>in</strong> Sipalay, Negros Oriental, where 550<br />
hectares of rice field were silted by soil <strong>and</strong> rocks because <strong>the</strong>ir mounta<strong>in</strong> was open cut by<br />
<strong>the</strong> Philex Gold <strong>M<strong>in</strong><strong>in</strong>g</strong> Company. The same th<strong>in</strong>g happened <strong>in</strong> Libay, Sibutad, Zamboanga<br />
del Norte.<br />
5. The area be<strong>in</strong>g applied for by <strong>the</strong> m<strong>in</strong><strong>in</strong>g company is an Agricultural L<strong>and</strong>, which has been<br />
<strong>the</strong> Sources of <strong>the</strong> Livelihood of Farmers for a long period of time.<br />
6. This place where <strong>the</strong> m<strong>in</strong><strong>in</strong>g company is apply<strong>in</strong>g for is a Watershed Area. The government<br />
has spent a large amount of money to develop <strong>and</strong> preserve <strong>the</strong> Sources of Water.<br />
7. In this place where <strong>the</strong> m<strong>in</strong><strong>in</strong>g company is apply<strong>in</strong>g <strong>the</strong>re are a number of government<br />
projects. The government has built Irrigation Dams to supply water to <strong>the</strong> rice fields for <strong>the</strong><br />
people who live <strong>in</strong> <strong>the</strong> place. The water that comes from <strong>the</strong>se mounta<strong>in</strong> ranges supports <strong>the</strong><br />
rice fields of Labangan, Pagadian, Dumal<strong>in</strong>ao, <strong>and</strong> Tigbao. This source of water not only<br />
supports <strong>the</strong> rice fields of <strong>the</strong> prov<strong>in</strong>ce of Zamboanga del Sur, it also supports water to <strong>the</strong><br />
rice fields <strong>in</strong> <strong>the</strong> prov<strong>in</strong>ces of Zamboanga Sibugay <strong>and</strong> Zamboanga del Norte.<br />
45
Petition aga<strong>in</strong>st exploration permit application<br />
of TVI RESOURCE DEVELOPMENT PHILS, Inc. (Expa 00056-lX)<br />
Page 3 of 4pages<br />
We, <strong>the</strong> peoples of Midsalip, have consistently opposed all <strong>M<strong>in</strong><strong>in</strong>g</strong> Applications for a long<br />
period of time now. For more than 7 years we have Struggled aga<strong>in</strong>st all m<strong>in</strong><strong>in</strong>g<br />
applications. We have so many petitions that have been sent to <strong>the</strong> office of DENR/MGB,<br />
but why is it until now <strong>the</strong>re are still applications be<strong>in</strong>g sent to your office to operate<br />
m<strong>in</strong><strong>in</strong>g <strong>in</strong> our town of Midsalip? Even though you know that we are so strongly opposed?<br />
It makes us sad because we clearly do not want that you accept any fur<strong>the</strong>r m<strong>in</strong><strong>in</strong>g<br />
applications anywhere <strong>in</strong> Midsalip or <strong>in</strong> <strong>the</strong> neighbor<strong>in</strong>g towns like Som<strong>in</strong>ot, Bayog,<br />
Dum<strong>in</strong>gag <strong>and</strong> o<strong>the</strong>rs.<br />
GIVE US A TIME TO LIVE FREE, HAPPY AND PEACEFUL.<br />
The provisions of Article II of <strong>the</strong> 1987 Philipp<strong>in</strong>es Constitution particularly Section 5<br />
“ <strong>the</strong> ma<strong>in</strong>tenance of peace <strong>and</strong> Order, <strong>the</strong> Protection of Life <strong>and</strong> property” <strong>and</strong>;<br />
Section 16 “ The State shall protect <strong>and</strong> advance <strong>the</strong> right of <strong>the</strong> people to a balanced <strong>and</strong><br />
healthy ecology <strong>in</strong> accord with rhythm <strong>and</strong> harmony of nature”<br />
That’s why we, <strong>the</strong> different groups of Midsalip, Respectfully send our petition to your<br />
office to ask that do not approve TVI RESOURCE DEVELOPMENT PHILS., INC (EXPA<br />
00056-IX) Exploration Permit Application <strong>and</strong> Plan to operate <strong>M<strong>in</strong><strong>in</strong>g</strong> <strong>in</strong> our place. We<br />
strongly endorse that you do not approve <strong>the</strong>ir application because of <strong>the</strong> reasons stated<br />
above.<br />
Very Truly Yours<br />
TERSO LOPECILLO<br />
PPC President<br />
LEONARDO TAMPOS<br />
Chairman, Bibilop Irrigators Association<br />
GERMAN CAMARADOR SALUD ANDIGON IRENE CAANGAY<br />
BUHILAMAN Chairperson HUBADMI Chairman KABAMI Chairman<br />
FRANCISCO LIGTAS JESUS S. CATAMCO, JR. HYDENIA CAMARADOR<br />
Earthl<strong>in</strong>ks Chairman Parish Worker HUBADMI Coord<strong>in</strong>ator<br />
RODOLFO TUBA<br />
PRIVATO OCIAL<br />
Timpobia, Vice Chairman Vice Chairman Pob. A. Guma Irrigators Assn.<br />
46
Petition aga<strong>in</strong>st exploration permit application<br />
of TVI RESOURCE DEVELOPMENT PHILS, Inc. (Expa 00056-lX)<br />
Page 4 of 4pages<br />
PRECTOSO M. TAPITAN<br />
Chairman<br />
FMCB & EXPANDED GROUP AGAINST<br />
MINING/ECOLOGICAL DESTRUCTION<br />
Copy Furnished by Registered Mail:<br />
1 DENR Secretary North Avenue, Diliman City, Philipp<strong>in</strong>es<br />
2 TVI RESOURCE DEVELOPMENT PHILS., INC.<br />
Suite 1903 B, West Tower, PSE Centre, Exchange Road. Ortigas Centre, Pasig City, Philipp<strong>in</strong>es<br />
2 Panel of Arbitrartors, M<strong>in</strong>es <strong>and</strong> Geosciences Bureau-IX, 2 nd Floor GL Build<strong>in</strong>g, Veteran<br />
Avenue, Tetuan, Zamboanga City, Philipp<strong>in</strong>es<br />
3 PENRO, DENR Office, Pagadian City, Philipp<strong>in</strong>es<br />
4 CENRO, DENR Office, Pagadian City, Philipp<strong>in</strong>es<br />
5 Environmental Ombudsman, Ombudsman Build<strong>in</strong>g, Agham Road, Diliman Quezon City,<br />
Philipp<strong>in</strong>es<br />
6 Office of <strong>the</strong> Prov<strong>in</strong>cial Governor, Prov<strong>in</strong>cial Capitol, Pagadian City, Philipp<strong>in</strong>es<br />
7 Office of <strong>the</strong> President, Malacañang Palace. Manila, Philipp<strong>in</strong>es<br />
8 Isidoro Real Jr, Congressman 1 st District, Zamboanga del Sur, Philipp<strong>in</strong>es<br />
9 Office of <strong>the</strong> Municipal Mayor, Midsalip, Zamboanga del Sur<br />
10 Clive Wick, International Union for <strong>the</strong> Conservation of Nature, London<br />
11 Clare Short, Parliamentary Member, London<br />
12 Fr. Frank Nally, JPIC Columban Fa<strong>the</strong>rs, London<br />
47
Appendix 7: Photos of Fact F<strong>in</strong>d<strong>in</strong>g Team Mission<br />
48
Appendix 8: <strong>M<strong>in</strong><strong>in</strong>g</strong> Impacts at Mt Canatuan<br />
50
Appendix 9: Scale of Planned M<strong>in</strong>eral Opportunities presented to Investors<br />
51
Appendix 10: Maps of Mar<strong>in</strong>e <strong>and</strong> Terrestrial Conservation Priorities<br />
LUZON<br />
Manila<br />
Rapu-Rapu<br />
MINDORO<br />
Sabuyan<br />
Cebu<br />
VISAYAS<br />
Libay<br />
Midsalip<br />
Mt Canatuan<br />
MINDANAO<br />
52
Appendix 11 Gross Value Added <strong>in</strong> Agriculture, Fisheries <strong>and</strong> Forestry<br />
53
Appendix 12: Concentration of Indigenous Peoples <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es<br />
Indigenous Peoples <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es <strong>and</strong> M<strong>in</strong>danao<br />
Source UNDP 2003<br />
54
Endnotes<br />
1<br />
Asia <strong>and</strong> <strong>the</strong> Pacific Philipp<strong>in</strong>es Progress Towards Environmental Susta<strong>in</strong>ability MDG 7 UNDP p198 see<br />
http://www.undp.org/energy<strong>and</strong>environment/susta<strong>in</strong>abledifference/PDFs/Asia/Philipp<strong>in</strong>es.com.pdf<br />
2 Tail<strong>in</strong>gs are <strong>the</strong> residue of <strong>the</strong> mill<strong>in</strong>g process that is used to extract metals of <strong>in</strong>terest from m<strong>in</strong>ed ores. Most of <strong>the</strong> mill<br />
tail<strong>in</strong>gs mass produced worldwide is dumped <strong>in</strong> large surface impoundments which are know as "tail<strong>in</strong>gs dams". Due to a<br />
comb<strong>in</strong>ation of <strong>the</strong> geo-hazards <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es <strong>and</strong> a lack of adequate assessment <strong>and</strong> cont<strong>in</strong>uous monitor<strong>in</strong>g <strong>and</strong> control<br />
of <strong>the</strong> dams, dur<strong>in</strong>g <strong>the</strong> construction or operations phases, <strong>the</strong>re have been a number of complete or partial failures which<br />
have had disastrous consequences for local people <strong>and</strong> <strong>the</strong> environment. See Chronology of Tail<strong>in</strong>gs Dam Failures <strong>in</strong> <strong>the</strong><br />
Philipp<strong>in</strong>es (1982-2002), compiled by Philipp<strong>in</strong>e Indigenous Peoples L<strong>in</strong>ks http://www.pipl<strong>in</strong>ks.org 29 October 2003. On<br />
file with fact f<strong>in</strong>d<strong>in</strong>g team. The <strong>in</strong>formation is based on <strong>the</strong> records of <strong>the</strong> United Nations Environment Programme<br />
(UNEP), (www.unep.org) <strong>and</strong> o<strong>the</strong>r sources.<br />
3 M<strong>in</strong>es <strong>and</strong> GeoSciences Bureau, An Overview of M<strong>in</strong>erals Potential <strong>and</strong> Opportunity <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es, Slide 5, available<br />
at http://clients.westm<strong>in</strong>ster-digital.co.uk/m<strong>in</strong>esite/microsite/events/philipp<strong>in</strong>es/<strong>in</strong>dex.aspx.<br />
4 As of October 2005 <strong>the</strong> Chamber of M<strong>in</strong>es <strong>and</strong> <strong>the</strong> government had held <strong>in</strong>vestment promotion road shows <strong>in</strong> 12<br />
countries. BizNews Asia 5-12 October 2005, p12.<br />
5 Department of Environment <strong>and</strong> Natural Resources (DENR), Summary of <strong>the</strong> Status of Implementation of <strong>the</strong> Philipp<strong>in</strong>es<br />
<strong>M<strong>in</strong><strong>in</strong>g</strong> Act of 1995 (Republic Act No 7942), p2. As of June 2006 <strong>the</strong>re were 1,953 applications. Until June 2006 <strong>the</strong> total<br />
number of major m<strong>in</strong><strong>in</strong>g tenements under <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Act was 250.<br />
6 Proposed constitutional changes <strong>in</strong>clude a transition from <strong>the</strong> present presidential bi-cameral system to a parliamentary<br />
form of government <strong>and</strong> additional measures, <strong>in</strong>clud<strong>in</strong>g some <strong>in</strong>tended to facilitate <strong>in</strong>creased foreign <strong>in</strong>vestment.<br />
7 DENR, Philipp<strong>in</strong>e Biodiversity Conservation Priorities: National Biodiversity Strategy <strong>and</strong> Action Plan, Executive<br />
Summary, Quezon City, Philipp<strong>in</strong>es, 2002.<br />
8 Haribon Foundation presentation, ‘Status of Philipp<strong>in</strong>e Biodiversity’ Slides 86 <strong>and</strong> 92.<br />
9 Legal Rights <strong>and</strong> Natural Resources Center – Kasama Sa Kalikasan/Friends of <strong>the</strong> Earth Philipp<strong>in</strong>es (LRC-KsK/FoE-Phil)<br />
presentation, ‘<strong>M<strong>in</strong><strong>in</strong>g</strong> Situation’, Slide 22, presented to <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team on 27 July, at a meet<strong>in</strong>g with NGOs <strong>and</strong><br />
Indigenous Peoples’ Organizations, Malate Parish Hall, Manila. The <strong>in</strong>formation quoted from Natural Disaster Hotspots –<br />
A Global Risk Analysis 2005, World Bank <strong>and</strong> Columbia University see<br />
http://www.earth.columbia.edu/news/2005/story03-29-05.html See also The Manila Observatory, Mapp<strong>in</strong>g Philipp<strong>in</strong>e<br />
Vulnerability to Environmental Disasters at www.observatory.ph/vm/hazard.html.<br />
10 The practice is effectively illegal <strong>in</strong> Canada <strong>and</strong> <strong>the</strong> United States. See Submar<strong>in</strong>e Tail<strong>in</strong>gs Disposal Toolkit<br />
‘Introduction: <strong>M<strong>in</strong><strong>in</strong>g</strong>’s Problem with Waste’, p1, available at www.m<strong>in</strong><strong>in</strong>gwatch.ca/<strong>in</strong>dex.php?/Crew/STD_toolkit.<br />
Published jo<strong>in</strong>tly by <strong>M<strong>in</strong><strong>in</strong>g</strong>Watch Canada <strong>and</strong> Project Underground, June 2002.<br />
The European Parliament, <strong>in</strong> response to <strong>the</strong> Extractive Industry Review, called on its member states ‘to br<strong>in</strong>g <strong>the</strong>ir<br />
<strong>in</strong>fluence to bear to m<strong>in</strong>imize its support for <strong>the</strong> use of toxic materials such as cyanide <strong>and</strong> mercury <strong>and</strong> to support a<br />
moratorium on submar<strong>in</strong>e tail<strong>in</strong>g disposal.’ European Parliament Resolution on World Bank-commissioned Extractive<br />
Industry Review (EIR)2004, available at<br />
http://www.environmentaldefense.org/documents/3637_EPF<strong>in</strong>alResOnEIR.pdf#search=%22european%20parliament%20re<br />
solution%20extractive%20<strong>in</strong>dustry%20review%22.<br />
11 The EIR noted that ‘The large economic rents generated by extractive <strong>in</strong>dustries may help provoke or prolong civil<br />
conflict. Indigenous peoples are particularly vulnerable’ (p6). The review recommended that one of <strong>the</strong> ‘core macrogovernance’<br />
criteria <strong>in</strong> relation to m<strong>in</strong><strong>in</strong>g should be ‘<strong>the</strong> absence of conflict or of a high risk of conflict’ <strong>and</strong> that <strong>in</strong> no<br />
circumstance should <strong>the</strong> Bank support m<strong>in</strong><strong>in</strong>g projects <strong>in</strong> areas <strong>in</strong>volved <strong>in</strong> armed conflict (p46).<br />
12 Placer Dome, <strong>the</strong> Canadian company, were holders of a 40 per cent stake <strong>in</strong> <strong>the</strong> Marcopper operations, <strong>and</strong> were <strong>the</strong> only<br />
m<strong>in</strong><strong>in</strong>g company <strong>in</strong>volved <strong>in</strong> <strong>the</strong> m<strong>in</strong>e. After <strong>the</strong> spill, Marcopper closed <strong>and</strong> Placer Dome subsequently withdrew. The<br />
prov<strong>in</strong>cial authorities <strong>in</strong> Mar<strong>in</strong>duque are currently pursu<strong>in</strong>g a case aga<strong>in</strong>st Placer Dome <strong>in</strong> <strong>the</strong> US courts to try to ga<strong>in</strong> some<br />
redress. The result was <strong>the</strong> loss of livelihoods for <strong>the</strong> local Mar<strong>in</strong>duque population <strong>and</strong> huge economic loss for <strong>the</strong><br />
Philipp<strong>in</strong>es. See http://www.umich.edu/~snre492/Jones/marcopper.htm University of Michigan Environmental Justice,<br />
Case Study Marcopper <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es. See also <strong>the</strong> UNEP report F<strong>in</strong>al Report of <strong>the</strong> United Nations Expert Assessment<br />
Mission Mar<strong>in</strong>duque Isl<strong>and</strong>, Philipp<strong>in</strong>es 30 September, 1996 pp65, 69, which declared <strong>the</strong> river biologically dead.<br />
13 “President Gloria Macapagal Arroyo’s Adm<strong>in</strong>istrative Order No. 145, created <strong>the</strong> Rapu-Rapu fact-f<strong>in</strong>d<strong>in</strong>g commission.<br />
See F<strong>in</strong>d<strong>in</strong>gs <strong>and</strong> Recommendations of <strong>the</strong> Fact-F<strong>in</strong>d<strong>in</strong>g Commission on <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Operations <strong>in</strong> Rapu-Rapu Isl<strong>and</strong> May<br />
19 th 2006 Executive Summary p12, p24. The company Lafayette Philipp<strong>in</strong>es Inc is 100% owned by Lafayette <strong>M<strong>in</strong><strong>in</strong>g</strong><br />
Limited of Australia”<br />
The commission received submissions from Lafayette see http://www.greenpeace.org/seasia/en/targets/lafayette for more<br />
details. The full report is available at<br />
http://www.agham.org/<strong>in</strong>dex.php?option=com_docman&task=cat_view&gid=40&Itemid=33<br />
The Department of Environment <strong>and</strong> Natural Resources own report also accused <strong>the</strong> company of negligence ‘The ma<strong>in</strong><br />
cause of <strong>the</strong> two <strong>in</strong>cidents can largely be attributed to <strong>the</strong> negligence <strong>and</strong> un-preparedness of <strong>the</strong> company to<br />
address such emergencies.’ DENR Assessment of <strong>the</strong> Rapu-Rapu Polymetallic Project P35 available at<br />
http://www.greenpeace.org/raw/content/seasia/en/press/reports/denr-assessment-of-<strong>the</strong>-rapu-ra.pdf.<br />
55
14 It is estimated that up to 15 per cent of <strong>the</strong> population of <strong>the</strong> Philipp<strong>in</strong>es is <strong>in</strong>digenous. Indigenous peoples are def<strong>in</strong>ed <strong>in</strong><br />
<strong>the</strong> Indigenous Peoples Rights Act Chapter II, Section 3 h.<br />
15 The Indigenous Peoples Rights Act of 1997 <strong>and</strong> <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Act of 1995 require free, prior, <strong>in</strong>formed consent from an<br />
<strong>in</strong>digenous people for any outside development to take place with<strong>in</strong> <strong>the</strong>ir ancestral l<strong>and</strong>s. It is also required <strong>in</strong> <strong>the</strong> UN<br />
Declaration of Indigenous Peoples Rights.<br />
16 See Appendix 3: Catholic Bishops Conference of <strong>the</strong> Philipp<strong>in</strong>es Stance.<br />
17 The team was provided with documents list<strong>in</strong>g over 700 activists killed s<strong>in</strong>ce 2001, based on statistics provided by <strong>the</strong><br />
human rights organization Karapatan. These statistics are available at Stop <strong>the</strong> Kill<strong>in</strong>gs <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es Campaign<br />
www.stop<strong>the</strong>kill<strong>in</strong>gs.org. Amnesty International highlights <strong>the</strong> lack of reliable statistics <strong>and</strong> confirms that <strong>the</strong>re have been<br />
at least 244 kill<strong>in</strong>gs. See Philipp<strong>in</strong>es: Political Kill<strong>in</strong>gs, Human Rights <strong>and</strong> <strong>the</strong> Peace Process, Amnesty International, 15<br />
August 2006.<br />
18 The Subaanen of Midsalip, Zamboanga del Sur, (are from <strong>the</strong> same tribal group<strong>in</strong>g as Subanon <strong>in</strong> Canatuan) are <strong>the</strong><br />
largest tribal group <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es (300,000) <strong>and</strong> are <strong>the</strong> <strong>in</strong>digenous <strong>in</strong>habitants of <strong>the</strong> Zamboanga pen<strong>in</strong>sula <strong>in</strong> Western<br />
M<strong>in</strong>danao.<br />
19 A series of protests launched <strong>in</strong> 1996 <strong>and</strong> <strong>in</strong>clud<strong>in</strong>g meet<strong>in</strong>gs with <strong>the</strong> company both <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es <strong>and</strong> UK led to<br />
Rio T<strong>in</strong>to announc<strong>in</strong>g its withdrawal <strong>in</strong> 1999.<br />
20 Small scale m<strong>in</strong>ers accused Ramon Bosque of dup<strong>in</strong>g <strong>the</strong>m <strong>in</strong> order to obta<strong>in</strong> his claim. See Christian Aid <strong>and</strong> PIPL<strong>in</strong>ks,<br />
Break<strong>in</strong>g Promises, Mak<strong>in</strong>g Profits <strong>M<strong>in</strong><strong>in</strong>g</strong> <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es, December 2004 p30<br />
21 There have been at least four documented <strong>in</strong>cidents from 1997-2004 see www.m<strong>in</strong>es<strong>and</strong>communities.org .<br />
22 A barangay is <strong>the</strong> smallest unit of local government.<br />
23 See www.m<strong>in</strong>es<strong>and</strong>communities.org/company/philex1.htm. The site documents <strong>the</strong> study ‘The Impact Of Philex <strong>M<strong>in</strong><strong>in</strong>g</strong><br />
Operation In Sibutad’ By Tito Natividad Fiel Coord<strong>in</strong>ator DIOPIM Committee on <strong>M<strong>in</strong><strong>in</strong>g</strong> Issues, DCMI (DIOPIM<br />
Committee on <strong>M<strong>in</strong><strong>in</strong>g</strong> Issues), Sicayab, Dipolog City’ of <strong>the</strong> m<strong>in</strong><strong>in</strong>g operations of Philex <strong>M<strong>in</strong><strong>in</strong>g</strong> at Sibutad. Accord<strong>in</strong>g to<br />
which, Crelem Cadal<strong>in</strong> was shot <strong>and</strong> killed by m<strong>in</strong>e security personnel on 3 May 1998. The site also provides details of <strong>the</strong><br />
environmental, health <strong>and</strong> economic damage aris<strong>in</strong>g from <strong>the</strong> m<strong>in</strong><strong>in</strong>g operation.<br />
24 Authorization from <strong>the</strong> local government is required to set up a legal entity under <strong>the</strong> Small-scale M<strong>in</strong>ers Act of 1992.<br />
This authorization has been granted to <strong>the</strong> small-scale m<strong>in</strong>ers from Davao who work with Philex M<strong>in</strong>es, but not to those<br />
who operate <strong>in</strong>dependently.<br />
25 Buluan town opposes SMI m<strong>in</strong><strong>in</strong>g Written by Carolyn O. Arguillas/M<strong>in</strong>daNews Thursday, 05 October 2006<br />
Available at http://m<strong>in</strong>danews.com/<strong>in</strong>dex.php?option=com_content&task=view&id=1008&Itemid=50<br />
26 Rapu-Rapu F<strong>in</strong>d<strong>in</strong>g <strong>and</strong> Recommendations of <strong>the</strong> Fact-F<strong>in</strong>d<strong>in</strong>g Commission on <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Operations <strong>in</strong> Rapu-Rapu<br />
Isl<strong>and</strong> 19 th May 2006, Chapter 2, p303 ‘Ignored were <strong>in</strong>digenous Taboi people <strong>in</strong> <strong>the</strong> periphery of <strong>the</strong> m<strong>in</strong>e site. They were<br />
not only not consulted, Lafayette’s EIS also failed to mention <strong>the</strong>m’<br />
27 See F<strong>in</strong>d<strong>in</strong>gs <strong>and</strong> Recommendations of <strong>the</strong> Fact-F<strong>in</strong>d<strong>in</strong>g Commission on <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Operations <strong>in</strong> Rapu-Rapu Isl<strong>and</strong><br />
May 19 th 2006 Executive Summary p14<br />
28 John Ruggie, Interim Report of <strong>the</strong> Special Representative of <strong>the</strong> Secretary-General on <strong>the</strong> Issue of Human Rights <strong>and</strong><br />
Transnational Corporations <strong>and</strong> O<strong>the</strong>r Bus<strong>in</strong>ess Enterprises, U.N. Doc. E/CN.4/2006/97 (2006). Para 29 ‘Extractive sector<br />
is unique because no o<strong>the</strong>r has so enormous <strong>and</strong> <strong>in</strong>trusive a social <strong>and</strong> environmental footpr<strong>in</strong>t’ (para 29) which operates <strong>in</strong><br />
contexts where ‘<strong>the</strong>re is clearly a negative symbiosis between <strong>the</strong> worst corporate-related human rights abuses <strong>and</strong> host<br />
countries that are characterized by a comb<strong>in</strong>ation of relatively low national <strong>in</strong>come, current or recent conflict exposure, <strong>and</strong><br />
weak or corrupt governance’ (para 30)<br />
29 John Ruggie, ibid. Para 25<br />
30 Ibid.<br />
31 TVI was nom<strong>in</strong>ated for Public Eye Awards<br />
http://www.evb.ch/cm_data/public/TVI%20PublicEye_Awards_Nom<strong>in</strong>ation_.pdf<br />
32 38th PARLIAMENT, 1st SESSION Subcommittee on Human Rights <strong>and</strong> International Development of <strong>the</strong> St<strong>and</strong><strong>in</strong>g<br />
Committee on Foreign Affairs <strong>and</strong> International Trade Evidence Contents: Wednesday, March 23, 2005 See<br />
http://cmte.parl.gc.ca/cmte/CommitteePublication.aspx?SourceId=127056 <strong>and</strong> Wednesday, May 18, 2005 available at<br />
http://cmte.parl.gc.ca/cmte/CommitteePublication.aspx?SourceId=127044<br />
33 Echo Bay M<strong>in</strong>es, a North American m<strong>in</strong><strong>in</strong>g corporation now controlled by K<strong>in</strong>ross Gold Corporation, was <strong>the</strong> primary<br />
manager of <strong>the</strong> K<strong>in</strong>gK<strong>in</strong>g m<strong>in</strong>e. TVI <strong>and</strong> Benguet Corporation were junior operat<strong>in</strong>g partners. Echo Bay M<strong>in</strong>es had a<br />
corporate vice-president on TVI’s board of directors.<br />
34 Statement by Allan Laird to <strong>the</strong> Subcommittee on Human Rights <strong>and</strong> International Development of <strong>the</strong> St<strong>and</strong><strong>in</strong>g<br />
Committee on Foreign Affairs <strong>and</strong> International Trade Meet<strong>in</strong>g May 18, 2005. Ottawa K<strong>in</strong>gk<strong>in</strong>g M<strong>in</strong>es Inc. Corporate<br />
Support of Terrorism <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es available at http://www.dcmiphil.org/Allan_Laird%27s_Statement.pdf<br />
35 http://www.dcmiphil.org/Allan_Laird%27s_Statement.pdf Reports show<strong>in</strong>g payments to Abu Sayyaf were provided to<br />
<strong>the</strong> FBI <strong>in</strong> June 1994. In 2004 <strong>the</strong> Sierra Club published a report on <strong>the</strong> K<strong>in</strong>gK<strong>in</strong>g m<strong>in</strong>e ‘The Cost of do<strong>in</strong>g Bus<strong>in</strong>ess’<br />
56
available at http://www.sierraclub.org/sierra/200405/terrorism/page1.asp provid<strong>in</strong>g copies of receipt for payments to <strong>the</strong><br />
NPA <strong>and</strong> <strong>the</strong> MNLF.<br />
36 38th PARLIAMENT, 1st SESSION Subcommittee on Human Rights <strong>and</strong> International Development of <strong>the</strong> St<strong>and</strong><strong>in</strong>g<br />
Committee on Foreign Affairs <strong>and</strong> International Trade Evidence Contents Wednesday, May 18, 2005 available at<br />
http://cmte.parl.gc.ca/cmte/CommitteePublication.aspx?SourceId=127044 ‘I was on <strong>the</strong> board of that company. I can tell<br />
you that I never received any report from anybody, <strong>in</strong>clud<strong>in</strong>g Allan Laird, that <strong>the</strong>re was anyth<strong>in</strong>g like that go<strong>in</strong>g on’<br />
37 Karapatan (Alliance for <strong>the</strong> Advancement of People’s Rights) is an alliance of human rights advocates. Seen as with<strong>in</strong><br />
<strong>the</strong> broad array of left-lean<strong>in</strong>g cause-orientated groups, it focuses on expos<strong>in</strong>g <strong>and</strong> document<strong>in</strong>g human rights violations<br />
committed by government forces <strong>in</strong> <strong>the</strong> context of counter-<strong>in</strong>surgency operations, <strong>in</strong>clud<strong>in</strong>g kill<strong>in</strong>gs <strong>and</strong> torture, <strong>and</strong> calls<br />
for <strong>the</strong> release of all political prisoners.<br />
38 The fact-f<strong>in</strong>d<strong>in</strong>g team was provided with documents list<strong>in</strong>g <strong>the</strong> over 700 activists killed s<strong>in</strong>ce 2001 based on Karapatan<br />
statistics. Statistics provided by <strong>the</strong> Karapatan organization are available at Stop <strong>the</strong> Kill<strong>in</strong>gs <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es Campaign<br />
www.stop<strong>the</strong>kill<strong>in</strong>gs.org. Amnesty International highlights <strong>the</strong> lack of reliable statistics <strong>and</strong> confirms that <strong>the</strong>re have been<br />
at least 244 kill<strong>in</strong>gs. See Amnesty International, Philipp<strong>in</strong>es: Political Kill<strong>in</strong>gs, Human Rights <strong>and</strong> <strong>the</strong> Peace Process, 15<br />
August 2006.<br />
39 ‘RP faces UN blacklist over rights record, says CHR chair’, Philipp<strong>in</strong>e Daily Inquirer, 28 July 2006.<br />
40 Amnesty International, Philipp<strong>in</strong>es: Political Kill<strong>in</strong>gs, Human Rights <strong>and</strong> <strong>the</strong> Peace Process, 15 August 2006.<br />
http://web.amnesty.org/library/Index/ENGASA350062006<br />
41 Dutch Lawyers for Lawyers Foundation, From Facts to Action Report on <strong>the</strong> Attacks Aga<strong>in</strong>st Filip<strong>in</strong>o Lawyers <strong>and</strong><br />
Judges. The International Fact F<strong>in</strong>d<strong>in</strong>g Mission (IFFM), 24 July 2006 pp37–39.<br />
42 The Chairperson of <strong>the</strong> CHR, Purificacion Valera Quisumb<strong>in</strong>g, has also chastised <strong>the</strong> Philipp<strong>in</strong>e government for its<br />
failure to report to <strong>in</strong>ternational human rights treaty bodies. She stated that this may result <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es be<strong>in</strong>g listed as<br />
a violator of its treaty obligations, with 14 reports overdue <strong>and</strong> an alarm<strong>in</strong>g record of human rights violations with regard to<br />
extrajudicial kill<strong>in</strong>gs <strong>and</strong> violations of <strong>the</strong> rights of <strong>in</strong>digenous peoples. See ‘UN blacklist over rights record, says CHR<br />
chair’ Philipp<strong>in</strong>e Daily Inquirer 28 July 2006.<br />
43 Transparency International Annual Report 2004 pP8-9 available at<br />
http://www.transparency.org/publications/annual_report.<br />
44 A Supreme Court case is currently pend<strong>in</strong>g with regard to corruption <strong>in</strong> <strong>the</strong> use of <strong>the</strong> Internal Revenue Allotment <strong>in</strong> <strong>the</strong><br />
municipality of Midsalip. Locals provided <strong>the</strong> fact f<strong>in</strong>d<strong>in</strong>g team with lists of similar cases throughout <strong>the</strong> Zamboanga<br />
Pen<strong>in</strong>sula. One group of locals, who for safety reasons wished to rema<strong>in</strong> anonymous, claimed that <strong>the</strong> grant<strong>in</strong>g of m<strong>in</strong><strong>in</strong>g<br />
rights was l<strong>in</strong>ked to corruption <strong>in</strong> relation to up-com<strong>in</strong>g elections. The Canadian parliamentary hear<strong>in</strong>gs addressed<br />
payments made by <strong>the</strong> K<strong>in</strong>gK<strong>in</strong>g m<strong>in</strong>e to political figures. See Statement by Allan Laird for <strong>the</strong> Subcommittee on Human<br />
Rights <strong>and</strong> International Development of <strong>the</strong> St<strong>and</strong><strong>in</strong>g Committee on Foreign Affairs <strong>and</strong> International Trade Meet<strong>in</strong>g May<br />
18, 2005. Ottawa K<strong>in</strong>gk<strong>in</strong>g M<strong>in</strong>es Inc. Corporate Support of Terrorism <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es available at<br />
http://www.dcmiphil.org/Allan_Laird%27s_Statement.pdf<br />
45 John Ruggie, Interim Report of <strong>the</strong> Special Representative of <strong>the</strong> Secretary-General on <strong>the</strong> Issue of Human Rights <strong>and</strong><br />
Transnational Corporations <strong>and</strong> O<strong>the</strong>r Bus<strong>in</strong>ess Enterprises, U.N. Doc. E/CN.4/2006/97 (2006). Paragraph 25.<br />
46 Shift<strong>in</strong>g <strong>the</strong> balance The World Bank Group <strong>and</strong> Extractive Industries The F<strong>in</strong>al Report of Extractive Industries Review<br />
December 2003 p18. The EIR found that <strong>in</strong> <strong>the</strong> context of extractive <strong>in</strong>dustry projects ‘<strong>the</strong>re was often <strong>the</strong> <strong>in</strong>creased risk of<br />
corruption by local officials deal<strong>in</strong>g with l<strong>and</strong> issues <strong>and</strong> an <strong>in</strong>crease <strong>in</strong> organized crime aga<strong>in</strong>st l<strong>and</strong>owners who received<br />
compensation.’ It also highlighted that <strong>in</strong> <strong>the</strong> extractive sector issues of weak governance (for example corruption) are<br />
particularly problematic because all revenues are channeled through central government (p6).<br />
47 See Legal Remedies for <strong>the</strong> Resource Curse. A Digest of Experience <strong>in</strong> Us<strong>in</strong>g Law to Combat Natural Resource<br />
Corruption. Open Society Justice Initiative 6 September 2005 available at<br />
http://www.justice<strong>in</strong>itiative.org/db/resource2?res_id=102966 See also Carlos Leite & J Weidmann. Does Mo<strong>the</strong>r Nature<br />
Corrupt? Natural Resources, Corruption <strong>and</strong> Economic Growth, IMF Work<strong>in</strong>g Paper WP/99/85 (1999).<br />
48 Review of Environmental Actions Funded by <strong>the</strong> European Commission <strong>and</strong> <strong>the</strong> EU Member States <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es<br />
June 2005 Executive Summary Pg xi http://www.delphl.cec.eu.<strong>in</strong>t/docs/Env.actions_EC_EUMS.PDF<br />
49 See Extractive Industry Transparency Initiative http://www.eitransparency.org/countryupdates.htm<br />
50 La Bugal-B’laan Tribal Ass’n v. Ramos, G.R. No 127882 421 S.C.R.A. 148 (Dec. 1, 2004)<br />
51 See M<strong>in</strong>esite.com Speech of Jose DeVenecia 17 June 2005, London,<br />
http://clients.westm<strong>in</strong>ster-digital.co.uk/m<strong>in</strong>esite/microsite/events/philipp<strong>in</strong>es/<strong>in</strong>dex.aspx<br />
52 A L Clark, (1994 ) The Phillipp<strong>in</strong>es M<strong>in</strong>eral Sector to 2010: Policy <strong>and</strong> Recommendations, Report to <strong>the</strong> Asian<br />
Development Bank on T.A. No 1894-PHI. East-West Center Honolulu, Hawaii, p360. Quoted <strong>in</strong> E Caruso, M Colchester, F<br />
McKay, N Hildyard & G Nettleton (2005) Syn<strong>the</strong>sis Report Extract<strong>in</strong>g Promises Indigenous Peoples, Extractive Industries<br />
<strong>and</strong> <strong>the</strong> World Bank, Second Edition, Tebtebba Indigenous Peoples International Centre for Policy Research <strong>and</strong> Education<br />
<strong>and</strong> Forest Peoples Programme (Tebtebba Foundation) p63.<br />
57
53 Chronology of Tail<strong>in</strong>gs Dam Failures <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es (1982-2002) Compiled by Philipp<strong>in</strong>e Indigenous Peoples L<strong>in</strong>ks<br />
http://www.pipl<strong>in</strong>ks.org last updated: 29 October 2003 See endnote 2 for explanation re tail<strong>in</strong>g dam failures.<br />
54 Ronnie E Calumpita, ‘857 ab<strong>and</strong>oned m<strong>in</strong>es pose health menace, say NGOs’, The Manila Times Reporter, 11 October<br />
2005. The article quotes <strong>in</strong>formation provided by Kalikasan-People’s Network for <strong>the</strong> Environment. available at<br />
http://www.m<strong>in</strong>es<strong>and</strong>communities.org/Action/press759.htm<br />
55 See Rapu-Rapu F<strong>in</strong>d<strong>in</strong>g <strong>and</strong> Recommendations of <strong>the</strong> Fact-F<strong>in</strong>d<strong>in</strong>g Commission on <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Operations <strong>in</strong> Rapu-Rapu<br />
Isl<strong>and</strong>, 19 May 2006, Executive Summary p15.<br />
56 National Economic <strong>and</strong> Development Authority, Medium Term Philipp<strong>in</strong>e Development Plan, p44, available at<br />
www.neda.gov.ph<br />
57 State of <strong>the</strong> Philipp<strong>in</strong>es Forest <strong>and</strong> Important Biodiversity Areas, Harribon Foundation Protect<strong>in</strong>g Nature Preserv<strong>in</strong>g<br />
Life Slide 6 Presented to <strong>the</strong> FFT 27 th July Meet<strong>in</strong>g with NGOs <strong>and</strong> Indigenous Peoples Organizations Malate Parish Hall,<br />
Manila<br />
58<br />
Submar<strong>in</strong>e Tail<strong>in</strong>gs Disposal Toolkit, ‘Introduction: <strong>M<strong>in</strong><strong>in</strong>g</strong>’s Problem with Waste’, p1, available at<br />
www.m<strong>in</strong><strong>in</strong>gwatch.ca/<strong>in</strong>dex.php?/Crew/STD_toolkit Published jo<strong>in</strong>tly by <strong>M<strong>in</strong><strong>in</strong>g</strong> Watch Canada <strong>and</strong> Project Underground<br />
2002<br />
59 See www.m<strong>in</strong><strong>in</strong>gwatch.ca/<strong>in</strong>dex.php?/Crew/STD_toolkit <strong>the</strong> European Parliament, <strong>in</strong> response to <strong>the</strong> EIR, called on its<br />
member states ‘to br<strong>in</strong>g <strong>the</strong>ir <strong>in</strong>fluence to bear to m<strong>in</strong>imize its support for <strong>the</strong> use of toxic materials such as cyanide <strong>and</strong><br />
mercury <strong>and</strong> to support a moratorium on submar<strong>in</strong>e tail<strong>in</strong>g disposal’ European Parliament Resolution on World Bankcommissioned<br />
Extractive Industry Review available at<br />
http://www.environmentaldefense.org/documents/3637_EPF<strong>in</strong>alResOnEIR.pdf#search=%22european%20parliament%20re<br />
solution%20extractive%20<strong>in</strong>dustry%20review%22<br />
60 Accord<strong>in</strong>g to <strong>in</strong>formation provided by <strong>the</strong> World Bank to <strong>the</strong> Centre for Hazards <strong>and</strong> Risk Research, <strong>the</strong> Philipp<strong>in</strong>es was<br />
among <strong>the</strong> top 20 countries requir<strong>in</strong>g loans for disaster reconstruction needs from 1980 to 2003. Maxx Dilley, Robert S.<br />
Chen, Uwe Deichmann, Arthur L. Lerner-Lam <strong>and</strong> Margaret Arnold, Jonathan Agwe, Piet Buys, Oddvar Kjekstad,<br />
Bradfield Lyon <strong>and</strong> Gregory Yetman Natural Disaster Hotspots: A Global Risk Analysis Syn<strong>the</strong>sis Report, March 2005.<br />
2005, International Bank for Reconstruction <strong>and</strong> Development/The World Bank <strong>and</strong> Columbia University, p23, available at<br />
http://sedac.cies<strong>in</strong>.columbia.edu/hazards/hotspots/syn<strong>the</strong>sisreport.pdf see also http://www.worldbank.org/hazards.<br />
61 Legal Rights <strong>and</strong> Natural Resources Center – Kasama Sa Kalikasan/Friends of <strong>the</strong> Earth Philipp<strong>in</strong>es (LRC-KsK/FoE-<br />
Phil), <strong>M<strong>in</strong><strong>in</strong>g</strong> Situation Presentation, Slide 24 Presented to <strong>the</strong> FFT 27 July at a meet<strong>in</strong>g with NGOs <strong>and</strong> <strong>in</strong>digenous<br />
peoples’ organizations. Malate Parish Hall, Manila.<br />
62 See http://www.umich.edu/~snre492/Jones/marcopper.htm University of Michigan Environmental Justice Case Study<br />
Marcropper <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es<br />
63<br />
Submar<strong>in</strong>e Tail<strong>in</strong>g Disposal Toolkit Introduction: <strong>M<strong>in</strong><strong>in</strong>g</strong>’s Problem with Waste p1 available at<br />
www.m<strong>in</strong><strong>in</strong>gwatch.ca/<strong>in</strong>dex.php?/Crew/STD_toolkit see also recent reports from Earthwatch highlight<strong>in</strong>g <strong>the</strong> impact of<br />
m<strong>in</strong><strong>in</strong>g on water pollution <strong>and</strong> <strong>the</strong> necessity for <strong>in</strong>dependent monitor<strong>in</strong>g available at www.m<strong>in</strong>e-aid.org/predictions<br />
64 National Economic <strong>and</strong> Development Authority, Medium Term Philipp<strong>in</strong>e Development Plan, p44, available at<br />
www.neda.gov.ph<br />
65 Legal Rights <strong>and</strong> Natural Resources Center – Kasama Sa Kalikasan/ Friends of <strong>the</strong> Earth Philipp<strong>in</strong>es (LRC-KsK/FoE-<br />
Phil) <strong>M<strong>in</strong><strong>in</strong>g</strong> Situation Presentation Slide 23 Map 7: Stressed Watersheds <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es. Presented to <strong>the</strong> FFT 27 th July<br />
Meet<strong>in</strong>g with NGOs <strong>and</strong> Indigenous Peoples Organizations Malate Parish Hall Manila,<br />
66 Philipp<strong>in</strong>e Star, November 13, 2001<br />
67 Lye L<strong>in</strong> Heng, ‘Public Participation <strong>in</strong> <strong>the</strong> Environment: A South-East Asian Perspective’ <strong>in</strong> D N Zillman, A R Lucas<br />
<strong>and</strong> G Pr<strong>in</strong>g (eds) (2002) Human Rights <strong>in</strong> Natural Resource Development: Public Participation <strong>in</strong> <strong>the</strong> Susta<strong>in</strong>able<br />
Development of <strong>M<strong>in</strong><strong>in</strong>g</strong> <strong>and</strong> Energy Resources, Oxford University Press, Oxford, p673.<br />
68 Constitution of <strong>the</strong> Philipp<strong>in</strong>es, section 16 article II (1987).<br />
69 Oposa v. Factoran 224 Sup. Cts. Ann. Reps. 792 (1993) Sup. Ct. of <strong>the</strong> Philipp<strong>in</strong>es.<br />
70 Rio Declaration on Environment <strong>and</strong> Development, Pr<strong>in</strong>ciples 10 <strong>and</strong> 17. See<br />
http://www.unep.org/Documents.multil<strong>in</strong>gual/Default.asp?DocumentID=78&ArticleID=1163. Participation is also required<br />
by <strong>the</strong> ASEAN Agreement on <strong>the</strong> Conservation of Nature <strong>and</strong> Natural Resources, which <strong>the</strong> Philipp<strong>in</strong>es has ratified. It<br />
requires that states circulate <strong>in</strong>formation regard<strong>in</strong>g conservation measures <strong>and</strong> ‘organize participation of <strong>the</strong> public <strong>in</strong> <strong>the</strong><br />
plann<strong>in</strong>g <strong>and</strong> implementation of conservation measures’. This agreement was signed <strong>in</strong> 1985 by <strong>the</strong> six ASEAN countries<br />
but has yet to be ratified by S<strong>in</strong>gapore, Brunei <strong>and</strong> Malaysia. See also Ingrid Gorre, Jason Lamchek, Streaml<strong>in</strong><strong>in</strong>g<br />
Environmental Impact Assessment <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es Implications for Human Rights Issue Paper 2005-03, Legal Rights <strong>and</strong><br />
Natural Resource Centre Inc Kasama sa Kalikasan (LRC-KsK/Friends of <strong>the</strong> Earth Philipp<strong>in</strong>es), (2005, Manila) p11.<br />
71 Gorre & Lamchek ibid, p25 ‘Public proponents are no longer required to provide <strong>in</strong>formation to <strong>the</strong> public ‘public<br />
hear<strong>in</strong>gs are required for environmentally critical projects but not for non-environmentally critical projects located <strong>in</strong><br />
environmentally critical areas. The notice requirements for public hear<strong>in</strong>gs are not replicated <strong>in</strong> <strong>the</strong> new Adm<strong>in</strong>istrative<br />
Order’<br />
72 An example is <strong>the</strong> Pr<strong>in</strong>ce William Sound Regional Citizens' Advisory Council <strong>in</strong> Alaska. Follow<strong>in</strong>g <strong>the</strong> 1989 Exxon<br />
Valdez Oil Spill <strong>in</strong> Alaska, <strong>the</strong> need for an <strong>in</strong>dependent body to review oil operations was recognized <strong>and</strong> it was decided to<br />
58
set up a totally <strong>in</strong>dependent civil society organization called a ‘Citizen’s Advisory Council’. The oil companies are required<br />
to pay money <strong>in</strong>to a trust fund which is used by <strong>the</strong> council to employ a team of experts who monitor all oil company<br />
operations <strong>and</strong> report <strong>in</strong>dependently to <strong>the</strong> government, civil society <strong>and</strong> <strong>the</strong> companies.. See<br />
http://www.pwsrcac.org/about/<strong>in</strong>dex.html<br />
73 Indigenous Peoples Rights Act, Chapter III Section 3 g.<br />
74 Submar<strong>in</strong>e Tail<strong>in</strong>gs Disposal is a good example of where <strong>in</strong>dependent expert <strong>in</strong>formation provision is essential. <strong>M<strong>in</strong><strong>in</strong>g</strong><br />
companies are stat<strong>in</strong>g that it is safe to use this method <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es due to <strong>the</strong> deep ocean trenches. However, <strong>the</strong><br />
reality is that <strong>the</strong> risks to deep sea mar<strong>in</strong>e life <strong>and</strong> <strong>the</strong> impact to <strong>the</strong> greater mar<strong>in</strong>e eco system are not yet known. Lack of<br />
<strong>in</strong>dependent expertise <strong>in</strong> this case could have disastrous consequences.<br />
An example of lack of scientific evidence lead<strong>in</strong>g to disastrous impacts to <strong>the</strong> environment <strong>and</strong> <strong>the</strong> local community is <strong>the</strong><br />
case of Ok Tedi <strong>in</strong> Papua New Gu<strong>in</strong>ea. Accord<strong>in</strong>g to <strong>the</strong> m<strong>in</strong><strong>in</strong>g company BHP Billiton Limited ‘The decision to proceed<br />
at <strong>the</strong> time was based on evidence that <strong>the</strong> downstream aquatic ecosystem was well adapted to recover<strong>in</strong>g from natural<br />
<strong>in</strong>puts of massive amounts of sediment. Predicted environmental impacts were based on <strong>the</strong> best available knowledge at <strong>the</strong><br />
time.’ This resulted <strong>in</strong> <strong>the</strong> kill<strong>in</strong>g of fish <strong>and</strong> <strong>the</strong> destruction of vegetation along <strong>the</strong> river bank impact<strong>in</strong>g <strong>the</strong> 40,000 down<br />
stream dwellers. Subsequent to this <strong>and</strong> attempted litigation by <strong>the</strong> local community BHP has publicly stated that it would<br />
no longer <strong>in</strong>vest <strong>in</strong> new projects us<strong>in</strong>g river<strong>in</strong>e tail<strong>in</strong>gs disposal. It appears that a disaster on <strong>the</strong> scale of Ok Tedi is required<br />
before m<strong>in</strong><strong>in</strong>g companies admit <strong>the</strong> potential impacts of operations are ei<strong>the</strong>r unknown or, as many <strong>in</strong>digenous<br />
communities have experienced, are be<strong>in</strong>g deliberately understated. See<br />
http://www.bhpbilliton.com/bb/susta<strong>in</strong>ableDevelopment/community/okTediSusta<strong>in</strong>ableDevelopmentProgram.jsp Ok Tedi<br />
Susta<strong>in</strong>able Development Program. See also Zhiguo Gao, George Akpan Jim Vanjik The Ok Tedi Case <strong>and</strong> its Implications<br />
<strong>in</strong> Human Rights <strong>in</strong> Natural Resource Development Zillman Lucas <strong>and</strong> Pr<strong>in</strong>g (eds) (Oxford University Press 2002) p679-<br />
694<br />
75 In Midsalip dur<strong>in</strong>g <strong>the</strong> FPIC process, Mr Real of Geotechniques <strong>in</strong>formed <strong>the</strong> <strong>in</strong>digenous people that those directly<br />
affected by m<strong>in</strong><strong>in</strong>g would become millionaires <strong>and</strong> be able to buy Mercedez Benz cars; he also claimed that up to 10,000<br />
jobs would be created. See ‘<strong>M<strong>in</strong><strong>in</strong>g</strong> Midsalip, Zamboanga del Sur’s Future’, Bus<strong>in</strong>ess World 10 February 2006 available at<br />
http://news.yehey.com/news3.asp?c=14&i=139843<br />
76 TVI declared that Mt Canatuan, <strong>the</strong> sacred mounta<strong>in</strong> of <strong>the</strong> Subanon people, was not a sacred place because small-scale<br />
m<strong>in</strong>ers were operat<strong>in</strong>g <strong>the</strong>re. This was despite <strong>the</strong> fact that <strong>the</strong> Subanon has already objected to <strong>the</strong> small-scale m<strong>in</strong>ers’<br />
presence.<br />
At a presentation at <strong>the</strong> Sydney <strong>M<strong>in</strong><strong>in</strong>g</strong> Club Robert Thomas CEO “Climax <strong>M<strong>in</strong><strong>in</strong>g</strong> Limited” (CMX) discussed CMX plans<br />
<strong>in</strong>clud<strong>in</strong>g its planned m<strong>in</strong><strong>in</strong>g operations at Didipio, <strong>in</strong> <strong>the</strong> l<strong>and</strong>s of <strong>the</strong> Ifugao people <strong>in</strong> Luzon, he described <strong>the</strong> mounta<strong>in</strong> to<br />
be m<strong>in</strong>ed as ‘a bit of an ugly look<strong>in</strong>g place’ “Climax <strong>M<strong>in</strong><strong>in</strong>g</strong> Limited” CMX, Sydney <strong>M<strong>in</strong><strong>in</strong>g</strong> Club, Philipp<strong>in</strong>es Focus,<br />
Tuesday, 8 August 2006 http://www.brr.com.au/event/CMX/837/12916/wmp/221.242.254.150/wsl.wmp. There is a long<br />
history of conflict between <strong>the</strong> Ifugao people <strong>and</strong> Climax over m<strong>in</strong><strong>in</strong>g at this site (See Appendix 5). See also<br />
http://www.m<strong>in</strong>orityrights.org/Dev/mrg_dev_title4_philipp<strong>in</strong>es/mrg_dev_title3_philipp<strong>in</strong>es_6.htm.<br />
77 See Joji Car<strong>in</strong>o Indigenous Peoples’ Right to Free Prior Informed Consent: Reflections on Concepts <strong>and</strong> Practice Vol 22<br />
(2005) Arizona Journal of International <strong>and</strong> Comparative Law pp19-39. The Tebtebba Foundation is currently document<strong>in</strong>g<br />
FPIC processes throughout <strong>the</strong> Philipp<strong>in</strong>es.<br />
78 Ingrid L. Gorre Jason S. Lamchek Streaml<strong>in</strong><strong>in</strong>g Environmental Impact Assessment <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es: Implications for<br />
Human Rights Issue Paper 2005-03, Legal Rights <strong>and</strong> Natural Resources Center – Kasama Sa Kalikasan/Friends of <strong>the</strong><br />
Earth Philipp<strong>in</strong>es (LRC-KsK/FoE-Phil). See also ‘Free Prior Informed Consent Process: Emerg<strong>in</strong>g Issues <strong>and</strong><br />
Recommendations’ available at www.tebtebba.org<br />
79 Conclud<strong>in</strong>g observations of <strong>the</strong> Human Rights Committee: Philipp<strong>in</strong>es : Philipp<strong>in</strong>es. 01/12/2003. CCPR/CO/79/PHL<br />
80 Ibid. (Conclud<strong>in</strong>g Observations/Comments) para 16. ‘The Committee welcomes <strong>the</strong> adoption of <strong>the</strong> Indigenous Peoples’<br />
Rights Act (IPRA) <strong>in</strong> 1997 <strong>and</strong> <strong>the</strong> subsequent establishment of <strong>the</strong> National Commission on Indigenous Peoples (NCIP),<br />
but rema<strong>in</strong>s concerned about <strong>the</strong> lack of effective implementation of <strong>the</strong> legislation … It is fur<strong>the</strong>r concerned at <strong>the</strong> human<br />
rights implications for <strong>in</strong>digenous groups of economic activities, such as m<strong>in</strong><strong>in</strong>g operations. The State party should ensure<br />
effective enforcement of <strong>the</strong> above legislation <strong>and</strong> ensure that <strong>in</strong>digenous peoples’ l<strong>and</strong> <strong>and</strong> resource rights enjoy adequate<br />
protection <strong>in</strong> relation to m<strong>in</strong><strong>in</strong>g <strong>and</strong> o<strong>the</strong>r compet<strong>in</strong>g usage, <strong>and</strong> that <strong>the</strong> capacity of <strong>the</strong> National Commission on<br />
Indigenous Peoples is streng<strong>the</strong>ned. Positive measure should be exp<strong>and</strong>ed to <strong>in</strong>clude l<strong>and</strong> rights issues.’<br />
81 Conclud<strong>in</strong>g observations of <strong>the</strong> Committee on <strong>the</strong> Elim<strong>in</strong>ation of Racial Discrim<strong>in</strong>ation: Philipp<strong>in</strong>es. 15/10/97.<br />
CERD/C/304/Add.34. (Conclud<strong>in</strong>g Observations/Comments) Para 14, 17.<br />
82 The Convention on Biodiversity Article 8 j ‘Each Contract<strong>in</strong>g Party shall, as far as possible <strong>and</strong> as appropriate: …<br />
subject to its national legislation, respect, preserve <strong>and</strong> ma<strong>in</strong>ta<strong>in</strong> knowledge, <strong>in</strong>novations <strong>and</strong> practices of <strong>in</strong>digenous <strong>and</strong><br />
local communities embody<strong>in</strong>g traditional lifestyles relevant for <strong>the</strong> conservation <strong>and</strong> susta<strong>in</strong>able use of biological diversity<br />
<strong>and</strong> promote <strong>the</strong>ir wider application with <strong>the</strong> approval <strong>and</strong> <strong>in</strong>volvement of <strong>the</strong> holders of such knowledge, <strong>in</strong>novations <strong>and</strong><br />
practices <strong>and</strong> encourage <strong>the</strong> equitable shar<strong>in</strong>g of <strong>the</strong> benefits aris<strong>in</strong>g from <strong>the</strong> utilization of such knowledge, <strong>in</strong>novations<br />
<strong>and</strong> practices’.<br />
83 ‘RP faces UN blacklist over rights record, says CHR chair’ Philipp<strong>in</strong>es Daily Inquirer, 28 July 2006.<br />
59
84 Report of <strong>the</strong> Special Rapporteur on <strong>the</strong> situation of human rights <strong>and</strong> fundamental freedoms of <strong>in</strong>digenous people,<br />
Rodolfo Stavenhagen Mission to Philipp<strong>in</strong>es E/CN.4/2003/90/Add 3, para 63.<br />
85 See http://www.epa.gov/mercury/effects.htm#elem, see also Cyanide Gold <strong>M<strong>in</strong><strong>in</strong>g</strong>s Devastat<strong>in</strong>g Killer Greenpeace<br />
http://www.greenpeace.org/raw/content/seasia/en/press/reports/cyanide-gold-m<strong>in</strong><strong>in</strong>g-s-devasta.pdf<br />
86 Serious claims of adverse affects on health have been made at <strong>the</strong> Buyat Bay area of Sulawesi, Indonesia by local people<br />
<strong>and</strong> health professions. Newmont m<strong>in</strong><strong>in</strong>g, responsible for <strong>the</strong> STD <strong>in</strong> <strong>the</strong> bay disputes <strong>the</strong>se claims. See for example “U.S.<br />
<strong>M<strong>in</strong><strong>in</strong>g</strong> Giant Called Lax <strong>in</strong> Waste Disposal <strong>in</strong> Indonesia” Perlez,Jane, The New York Times, February 3rd, 2006<br />
87 Report of <strong>the</strong> Special Rapporteur on <strong>the</strong> situation of human rights <strong>and</strong> fundamental freedoms of <strong>in</strong>digenous people,<br />
Rodolfo Stavenhagen Mission to Philipp<strong>in</strong>es E/CN.4/2003/90/Add 3, para 51-52.<br />
88 See ‘26 Tribes oppose bid for Bangsamoro l<strong>and</strong>’, Manila Bullet<strong>in</strong>, Saturday August 5 2006. See also The Quest of <strong>the</strong><br />
Indigenous Communities M<strong>in</strong>danao, Philipp<strong>in</strong>es: Rights to Ancestral Doma<strong>in</strong>, Commission on Human Rights 12-16 May<br />
2003. Paper prepared by Erl<strong>in</strong>da M. Burton, Research Institute for M<strong>in</strong>danao Culture, Xavier University, Cagayan de Oro<br />
City, Philipp<strong>in</strong>es UN Doc E/CN.4/Sub.2/AC.5/2003/WP.15 p 19 ‘How would <strong>the</strong> Islamic government deal with <strong>the</strong> IPs<br />
situation with<strong>in</strong> <strong>the</strong> Islamic framework, specifically <strong>the</strong>ir rights to ancestral doma<strong>in</strong>? This is a crucial problem that <strong>the</strong> IPs<br />
are so much concerned because <strong>the</strong>ir future, <strong>the</strong>y believe, h<strong>in</strong>ges on <strong>the</strong>ir ga<strong>in</strong><strong>in</strong>g of <strong>the</strong>ir ancestral doma<strong>in</strong>.’ See also<br />
http://m<strong>in</strong>danews.com/<strong>in</strong>dex2.php?option=com_content&do_pdf=1&id=553 Statement: H<strong>in</strong>iusang baroganan sa mga<br />
Lumad sa GRP-MILF Kasabotan sa Bangsamoro Homel<strong>and</strong> Contributed by United Indigenous Peoples of M<strong>in</strong>danao<br />
Monday, 31 July 2006.<br />
89 ‘An overview of m<strong>in</strong>eral potential opportunities <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es’, M<strong>in</strong>es <strong>and</strong> GeoSciences Bureau 2005, Slide 31<br />
available at http://clients.westm<strong>in</strong>ster-digital.co.uk/m<strong>in</strong>esite/microsite/events/philipp<strong>in</strong>es/<strong>in</strong>dex.aspx<br />
90 Christian Aid <strong>and</strong> PIPL<strong>in</strong>ks, Break<strong>in</strong>g Promises, Mak<strong>in</strong>g Profits <strong>M<strong>in</strong><strong>in</strong>g</strong> <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es, December 2004, pp17, 22- 28<br />
illustrates <strong>the</strong> lack of economic benefits <strong>in</strong> Mankayan, Benguet, despite a long history of m<strong>in</strong><strong>in</strong>g <strong>in</strong> <strong>the</strong> area.<br />
91 Department of Environment <strong>and</strong> Natural Resources M<strong>in</strong>es <strong>and</strong> GeoSciences Bureau Medium To Large Scale M<strong>in</strong>eral<br />
Resources Development Projects Under The Ten-Po<strong>in</strong>t Legacy Of President Gloria Macapagal Arroyo (2004-2010)<br />
Investments Profile http://www.mgb.gov.ph/revitalization_files/revitalization_23projects.htm<br />
92 The Department of Environment <strong>and</strong> Natural Resources M<strong>in</strong>es <strong>and</strong> GeoSciences Bureau estimates for Climax <strong>M<strong>in</strong><strong>in</strong>g</strong><br />
Limited operations show potential annual excise revenues of almost 5M US$ before <strong>in</strong>centives for <strong>the</strong> same project. After<br />
<strong>in</strong>centives this drops to 0 for 5 years.<br />
93 The <strong>M<strong>in</strong><strong>in</strong>g</strong> Act provides generous concessions to foreign firms <strong>in</strong>vestors <strong>in</strong>clud<strong>in</strong>g: tax holidays from five to ten years,<br />
full repatriation of <strong>in</strong>vestments, full remittance of earn<strong>in</strong>gs <strong>and</strong> freedom from expropriation, tax deductible operational<br />
expenses see http://www.chanrobles.com/RA7942.htm<br />
94 Among <strong>the</strong> empirical studies conducted are <strong>the</strong> follow<strong>in</strong>g: Jeffrey D Sachs <strong>and</strong> Andrew M. Warner (1997) ‘Natural<br />
Resource Abundance <strong>and</strong> Economic Growth’, updated <strong>and</strong> extended version of NBER work<strong>in</strong>g paper 5398 (October 1995)<br />
Harvard University, Harvard Institute for International Development, Cambridge, MA. Jeffrey D. Sachs <strong>and</strong> Andrew M.<br />
Warner (2001) ‘The Curse of Natural Resources’, European Economic Review, 45(2001):827-838. Richard M. Auty<br />
(1998) Resource Abundance <strong>and</strong> Economic Development: Improv<strong>in</strong>g <strong>the</strong> Performance of Resource-Rich Countries,<br />
UNU/WIDNER, Research for Action 44, 1998. See also United Nations Conference on Trade <strong>and</strong> Development 2005<br />
Economic Development <strong>in</strong> Africa Reth<strong>in</strong>k<strong>in</strong>g <strong>the</strong> Role of Foreign Direct Investment<br />
www.unctad.org/en/docs/gdsafrica20051_en.pdf.<br />
These studies suggest that export-oriented models such as that be<strong>in</strong>g pushed by <strong>the</strong> government of <strong>the</strong> Philipp<strong>in</strong>es are<br />
unlikely to effectively boost <strong>the</strong> GDP; researches show that <strong>the</strong> overall growth rate after a natural resource boom is at best<br />
<strong>the</strong> same as before it <strong>and</strong> at worst negative.<br />
Controversial studies associated with <strong>the</strong> m<strong>in</strong><strong>in</strong>g <strong>in</strong>dustry claim that m<strong>in</strong><strong>in</strong>g contributed positively to national development<br />
<strong>in</strong> such countries as Canada, <strong>the</strong> USA <strong>and</strong> Australia. However, as po<strong>in</strong>ted out by Professor Power, ow<strong>in</strong>g to vastly different<br />
<strong>in</strong>itial conditions, <strong>the</strong>se models have little relevance to <strong>the</strong> current situation <strong>in</strong> many sou<strong>the</strong>rn economies, <strong>in</strong>clud<strong>in</strong>g <strong>the</strong><br />
Philipp<strong>in</strong>es. In addition <strong>the</strong> importance of m<strong>in</strong><strong>in</strong>g to <strong>the</strong> successful growth of <strong>the</strong>se economies is strongly disputed. See<br />
Thomas Michael Power, Digg<strong>in</strong>g to development: A Historical Look at <strong>M<strong>in</strong><strong>in</strong>g</strong> <strong>and</strong> Economic Development. Oxfam<br />
America Report, September 2002.<br />
95 Economic, geographical <strong>and</strong> developmental maturity were very different <strong>in</strong> <strong>the</strong>se countries than <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es These<br />
conditions <strong>in</strong>clude: <strong>the</strong> scale of operations <strong>and</strong> large national economies capable of absorb<strong>in</strong>g local booms <strong>and</strong> busts;<br />
technology <strong>and</strong> knowledge developed <strong>and</strong> stayed <strong>in</strong> <strong>the</strong>se countries ra<strong>the</strong>r than be<strong>in</strong>g imported; less volatility <strong>in</strong> markets;<br />
m<strong>in</strong>erals m<strong>in</strong>ed stayed <strong>in</strong> <strong>the</strong> countries generat<strong>in</strong>g o<strong>the</strong>r <strong>in</strong>dustries ra<strong>the</strong>r than be<strong>in</strong>g exported.<br />
96 Thomas Michael Power, Digg<strong>in</strong>g to development: A Historical Look at <strong>M<strong>in</strong><strong>in</strong>g</strong> <strong>and</strong> Economic Development. Oxfam<br />
America Report, September 2002 p20<br />
97 The Canadian Human Rights Alliance British Columbia Committee for Human Rights <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es has noted this<br />
negative effect. ‘Our <strong>in</strong>vestigations <strong>in</strong>to m<strong>in</strong><strong>in</strong>g <strong>in</strong>form us that communities are not benefit<strong>in</strong>g economically or socially<br />
from local m<strong>in</strong><strong>in</strong>g regardless. It appears that more revenue has been taken away from small-scale m<strong>in</strong><strong>in</strong>g with <strong>the</strong><br />
<strong>in</strong>cursions of large-scale m<strong>in</strong><strong>in</strong>g activities’. Roundtable Discussion on Extractive Industries Foreign Affairs <strong>and</strong><br />
International Trade Canada Vancouver, B.C. June 14, 2006.<br />
http://<strong>in</strong>ternational.gc.ca/cip-pic/library/BCCHRP.pdf#search=%22TVI%20canadian%20ambassador%22<br />
60
98 Antonio S. Lopez, ‘<strong>M<strong>in</strong><strong>in</strong>g</strong> is Back’ BizNews Asia, Vol 3 No 56 October 5-12, 2005 p11.<br />
99 See La Bugal-B’laan Tribal Ass’n v. Ramos, G.R. No 127882 421 S.C.R.A. 148 (Dec. 1, 2004)<br />
100 Companies are expected to ei<strong>the</strong>r reduce <strong>the</strong>ir net m<strong>in</strong><strong>in</strong>g revenues or ensure that <strong>the</strong> State is entitled to a smaller portion<br />
of same. The lack of State control over operational expenses reported by m<strong>in</strong><strong>in</strong>g companies is seen as a weakness. In<br />
addition FTAA contracts may be negotiated with <strong>the</strong> government conta<strong>in</strong><strong>in</strong>g clauses that provide <strong>the</strong> means by which <strong>the</strong><br />
company could reduce <strong>the</strong> government entitlement. This was <strong>the</strong> case with <strong>the</strong> WMCP FTAA until <strong>the</strong> Supreme Court<br />
ruled one of <strong>the</strong> clauses permitt<strong>in</strong>g it as <strong>in</strong>valid. See La Bugal-B’laan Tribal Ass’n v. Ramos, G.R. No 127882 421<br />
S.C.R.A. 148 (Dec. 1, 2004).<br />
101 Rapu-Rapu F<strong>in</strong>d<strong>in</strong>g <strong>and</strong> Recommendations of <strong>the</strong> Fact-F<strong>in</strong>d<strong>in</strong>g Commission on <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Operations <strong>in</strong> Rapu Rapu<br />
Isl<strong>and</strong>, 19 May 2006, Introduction p23.<br />
102 DENR Assessment of <strong>the</strong> Rapu-Rapu Polymetallic Project Executive Summary p9 ‘The DENR will take <strong>the</strong> required<br />
appropriate actions to resolve hang<strong>in</strong>g issues vis-à-vis Rapu-Rapu Fact F<strong>in</strong>d<strong>in</strong>g Commission Report. These actions will<br />
essentially consist of <strong>the</strong> follow<strong>in</strong>g:… 5) The forward<strong>in</strong>g of a request to <strong>the</strong> BIR to undertake an <strong>in</strong>vestigation of <strong>the</strong> issue<br />
concern<strong>in</strong>g alleged under-report<strong>in</strong>g of ore production.’<br />
Available at http://www.greenpeace.org/raw/content/seasia/en/press/reports/denr-assessment-of-<strong>the</strong>-rapu-ra.pdf<br />
103 Estimates are based on health costs, reductions <strong>in</strong> fisheries production <strong>and</strong> tourism. An Agenda for Susta<strong>in</strong>able<br />
Development DENR <strong>in</strong> <strong>the</strong> Next 5 Years, Slide 9 quot<strong>in</strong>g a World Bank report.<br />
104 The po<strong>in</strong>t has been made that it should not be assumed that <strong>in</strong>digenous peoples want to partake <strong>in</strong> <strong>the</strong> development of an<br />
ADSDPP <strong>and</strong> that by not do<strong>in</strong>g so <strong>the</strong>y may <strong>in</strong> fact be exercis<strong>in</strong>g <strong>the</strong>ir right to self-determ<strong>in</strong>ation. See Notes on NCIP<br />
Adm<strong>in</strong>istrative Issuances 2002 – 2003 Issue Paper 2004 – 02 Legal Rights <strong>and</strong> Natural Resource Centre Inc p13<br />
105 A compla<strong>in</strong>t made by Timuay Boy Anoy among o<strong>the</strong>rs regard<strong>in</strong>g TVI <strong>and</strong> NCIP at <strong>the</strong> Canatuan m<strong>in</strong>e.<br />
106 The EIR recommends that <strong>the</strong> World Bank <strong>in</strong>corporate this sector <strong>in</strong>to its Country Strategy Assessments.<br />
107 Antonio A Tujan Jr. <strong>and</strong> Rosario Bella Guzman (2002) Globaliz<strong>in</strong>g Philipp<strong>in</strong>e <strong>M<strong>in</strong><strong>in</strong>g</strong>, IBON Foundation Inc. Databank<br />
<strong>and</strong> Research Centre, IBON Books, Manila) p142. They estimate that this number could be as high as 500,000. They quote<br />
Central Bank figure show<strong>in</strong>g small-scale m<strong>in</strong>ers contributed 45 per cent of <strong>the</strong> country’s gold between 1993 <strong>and</strong> 1997 pp19<br />
<strong>and</strong> 142.<br />
See also Break<strong>in</strong>g Promises, Mak<strong>in</strong>g Profits <strong>M<strong>in</strong><strong>in</strong>g</strong> <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es, A Christian Aid <strong>and</strong> PIPL<strong>in</strong>ks report December<br />
2004 p18 & 19 studies by <strong>the</strong> Asian Development Bank estimated that <strong>the</strong>re are 300,000 small-scale m<strong>in</strong>ers.<br />
108 The fact-f<strong>in</strong>d<strong>in</strong>g team met small-scale m<strong>in</strong>ers who had been operat<strong>in</strong>g at Mt Canatuan before TVI displaced <strong>the</strong>m. They<br />
said that <strong>the</strong> small-scale m<strong>in</strong>ers out numbered <strong>the</strong> total current TVI workforce at <strong>the</strong> m<strong>in</strong><strong>in</strong>g site by at least two to one. This<br />
is supported by a case study carried out by Christian Aid <strong>and</strong> PIPl<strong>in</strong>ks: Break<strong>in</strong>g Promises, Mak<strong>in</strong>g Profits <strong>M<strong>in</strong><strong>in</strong>g</strong> <strong>in</strong> <strong>the</strong><br />
Philipp<strong>in</strong>es, December 2004, p39.<br />
109 The Benguet Corporations operation at Antamok Itogon on <strong>the</strong> Ibaloi l<strong>and</strong>s displaced small scale m<strong>in</strong>ers. It <strong>the</strong>n<br />
switched its operations to large scale open bit m<strong>in</strong><strong>in</strong>g reduc<strong>in</strong>g work forces from 6,000, many of whom were <strong>in</strong>digenous<br />
peoples, to 600. Extract<strong>in</strong>g Promises Indigenous Peoples Extractive Industries & <strong>the</strong> World Bank Second Edition<br />
(Tebtebba 2005 Baguio City) p65<br />
110 Little attention is given to small scale m<strong>in</strong>ers <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es M<strong>in</strong>eral Action Plan. It provides large tax breaks for<br />
foreign firms while offer<strong>in</strong>g no benefits, o<strong>the</strong>r than <strong>the</strong> regulation of <strong>the</strong>ir activities, to small-scale m<strong>in</strong>ers. Many believe<br />
that this regulation would be used to limit <strong>the</strong>ir activity <strong>in</strong> favour of large m<strong>in</strong>es. See ILO study of small-scale m<strong>in</strong>ers,<br />
Norman S. Jenn<strong>in</strong>gs (ed) (2002) Small-scale gold m<strong>in</strong><strong>in</strong>g: Examples from Bolivia, Philipp<strong>in</strong>es <strong>and</strong> Zimbabwe Industrial<br />
Activities Branch Work<strong>in</strong>g Paper, available at<br />
http://www.ilo.org/public/english/dialogue/sector/papers/goldm<strong>in</strong>e/130e2.htm<br />
111 The FFT met with a small-scale m<strong>in</strong>er wounded when shot at dur<strong>in</strong>g protest aga<strong>in</strong>st TVI. The private armed security<br />
force known as <strong>the</strong> Special CAFGU Armed Auxiliary (SCAA) enforced a food <strong>and</strong> economic blockade aga<strong>in</strong>st <strong>the</strong> small<br />
scale m<strong>in</strong>ers <strong>in</strong> 1997. See Antonio A. Tujan Jr. Rosario Bella Guzman Globaliz<strong>in</strong>g Philipp<strong>in</strong>e <strong>M<strong>in</strong><strong>in</strong>g</strong> IBON Foundation<br />
Inc. Databank <strong>and</strong> Research Centre 2002 (IBON Books Manila) p149, quot<strong>in</strong>g Manila Times, 28 May 1997.<br />
112 http://www.news.ops.gov.ph/<strong>in</strong>augural_speech2004.htm<br />
113 The Death of Life: The Horror of Ext<strong>in</strong>ction Sean MacDonagh SSC (Columba Press Dubl<strong>in</strong>, 2005), p21 highlights that<br />
despite <strong>the</strong> astronomical profits from m<strong>in</strong><strong>in</strong>g only a few elite families benefited from logg<strong>in</strong>g <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es. Also<br />
<strong>in</strong>terview with Sean MacDonagh, 31/07/06 Manila Philipp<strong>in</strong>es.<br />
114 United Nations Conference on Trade <strong>and</strong> Development 2005 Economic Development <strong>in</strong> Africa Reth<strong>in</strong>k<strong>in</strong>g <strong>the</strong> Role of<br />
Foreign Direct Investment www.unctad.org/en/docs/gdsafrica20051_en.pdf<br />
115 Includ<strong>in</strong>g Strik<strong>in</strong>g a Better Balance, F<strong>in</strong>al report of <strong>the</strong> Extractive Industries Review, World Bank, Wash<strong>in</strong>gton 2003<br />
116 ibid, Strik<strong>in</strong>g a Better Balance<br />
117 Academic reviews of <strong>the</strong> Philipp<strong>in</strong>es’ environmental protections have suggested that perhaps <strong>the</strong> time has come to split<br />
<strong>the</strong> DENR functions. See A Khee-J<strong>in</strong> Tan, All that Glitters: Foreign Investment <strong>in</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Trumps <strong>the</strong> Environment <strong>in</strong> <strong>the</strong><br />
Philipp<strong>in</strong>es, 23 Pace Environmental Law Review p206.<br />
118 Exploration, as def<strong>in</strong>ed below, that can cont<strong>in</strong>ue up to eight years, clearly has potential environmental <strong>and</strong> social<br />
impacts. Accord<strong>in</strong>g to Republic Act No. 7942 [An Act Institut<strong>in</strong>g A New System Of M<strong>in</strong>eral Resources Exploration,<br />
Development, Utilization, And Conservation], Section 3q: ‘Exploration means <strong>the</strong> search<strong>in</strong>g or prospect<strong>in</strong>g for m<strong>in</strong>eral<br />
61
esources by geological, geochemical or geophysical surveys, remote sens<strong>in</strong>g, test pitt<strong>in</strong>g, trench<strong>in</strong>g, drill<strong>in</strong>g, shaft s<strong>in</strong>k<strong>in</strong>g,<br />
tunnel<strong>in</strong>g or any o<strong>the</strong>r means for <strong>the</strong> purpose of determ<strong>in</strong><strong>in</strong>g <strong>the</strong> existence, extent, quantity <strong>and</strong> quality <strong>the</strong>reof <strong>and</strong> <strong>the</strong><br />
feasibility of m<strong>in</strong><strong>in</strong>g <strong>the</strong>m for profit.’<br />
119 As of August 2006 <strong>in</strong>adequate <strong>in</strong>formation was available at <strong>the</strong> Securities <strong>and</strong> Exchange Commission to determ<strong>in</strong>e<br />
which corporations are beh<strong>in</strong>d Geotechniques.<br />
120 Follow<strong>in</strong>g an agreement between <strong>the</strong> small-scale m<strong>in</strong>er, Ramon Bosque, <strong>and</strong> <strong>the</strong> Benguet Corp, a Philipp<strong>in</strong>e m<strong>in</strong><strong>in</strong>g<br />
company. The president of Benguet Corp, Benjam<strong>in</strong> Romualdez, is currently <strong>the</strong> President of <strong>the</strong> Chamber of M<strong>in</strong>es.<br />
121 For photos of <strong>the</strong> scared mounta<strong>in</strong> before <strong>and</strong> after TVI’s arrival, see Appendix 7, see also<br />
http://www.dcmiphil.org/photogallery.htm.<br />
122 A Tebtebba case study documents <strong>the</strong> history of <strong>the</strong> Subanon people <strong>in</strong> <strong>the</strong> region of <strong>the</strong> Seven Rivers on <strong>the</strong><br />
Zamboanga pen<strong>in</strong>sula. Penelope C Sanz How to get a MOA without even try<strong>in</strong>g? The Subanon of Canatuan experience<br />
Draft version on file with <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g team.<br />
123<br />
Hear<strong>in</strong>gs were held by <strong>the</strong> Canadian St<strong>and</strong><strong>in</strong>g Committee on Foreign Affairs <strong>and</strong> International Trade see<br />
http://www.pipl<strong>in</strong>ks.org/development_issues/articles/success.htm<br />
124 http://www.pipl<strong>in</strong>ks.org/development_issues/articles/sep_29_2005.htm<br />
125 Protests of <strong>the</strong> Subanon people are documented <strong>and</strong> are available at http://www.dcmiphil.org/documents.htm<br />
126 Rapu-Rapu F<strong>in</strong>d<strong>in</strong>g <strong>and</strong> Recommendations of <strong>the</strong> Fact-F<strong>in</strong>d<strong>in</strong>g Commission on <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Operations <strong>in</strong> Rapu-Rapu<br />
Isl<strong>and</strong> 19 th May 2006 Summary Report pg 8<br />
127 For a descriptions of <strong>the</strong> biological diversity of <strong>the</strong> Sibuyan Isl<strong>and</strong> see<br />
http://www.fieldmuseum.org/vanish<strong>in</strong>g_treasures/Discover_4.htm <strong>and</strong> Herbarium Digital Library<br />
http://www.pnh.com.ph/category/5-Critical-Plant-Sites/14-Sibuyan-Isl<strong>and</strong>-page-1.html.<br />
128 http://www.<strong>in</strong>fom<strong>in</strong>e.com/countries/philipp<strong>in</strong>es.asp<br />
129 http://clearblogs.com/SAM/page2/&thisy=&thism=&thisd=<br />
130 World Wildlife Fund, Payments for Environmental Services, An Equitable Approach for Reduc<strong>in</strong>g Poverty <strong>and</strong><br />
Conserv<strong>in</strong>g Nature, June 2006, pp14, 20, 35, 69. A Philipp<strong>in</strong>es National Conference-Workshop on Payments for<br />
Environmental Services: Develop<strong>in</strong>g Incentives for Conservation <strong>and</strong> Poverty Alleviation, 1-2 March 2005, addressed<br />
present PESs <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es, draw<strong>in</strong>g on lessons <strong>in</strong> develop<strong>in</strong>g direct <strong>in</strong>centives <strong>and</strong> payment mechanisms for<br />
conservation <strong>and</strong> poverty reduction. Issues related to m<strong>in</strong><strong>in</strong>g arose, such as conflict<strong>in</strong>g l<strong>and</strong> claims of m<strong>in</strong><strong>in</strong>g companies<br />
<strong>and</strong> <strong>in</strong>digenous peoples, compet<strong>in</strong>g water use, conflict<strong>in</strong>g water <strong>and</strong> l<strong>and</strong> rights.<br />
131 La Bugal-B’laan Tribal Ass’n v. Ramos G.R. No. 127882. December 1, 2004<br />
132 ibid<br />
133 http://www.supremecourt.gov.ph/speech/tw<strong>in</strong>.pdf#search=%22Bugal-<br />
B%E2%80%99laan%20Tribal%20Association%20v.%20Ramos%22<br />
134 Constitution of <strong>the</strong> Philipp<strong>in</strong>es Article II Section 16. The State shall protect <strong>and</strong> advance <strong>the</strong> right of <strong>the</strong> people to a<br />
balanced <strong>and</strong> healthful ecology <strong>in</strong> accord with <strong>the</strong> rhythm <strong>and</strong> harmony of nature.<br />
135 Philipp<strong>in</strong>es Supreme Court case, M<strong>in</strong>ors Oposa v. Secretary of <strong>the</strong> Department of Environment <strong>and</strong> Natural Resources<br />
(DENR), 33 I.L.M 173 (1994). The case sought to halt <strong>the</strong> grant<strong>in</strong>g of timber licences by <strong>the</strong> government.<br />
136 Congressional hear<strong>in</strong>g have been held with regard to TVI’s operations <strong>in</strong> Mt Canatuan <strong>and</strong> an <strong>in</strong>junction was sought<br />
aga<strong>in</strong>st Lafayette’s operations <strong>in</strong> Rapu-Rapu.<br />
137 For example conflicts of use arise between easement rights given by <strong>the</strong> <strong>M<strong>in</strong><strong>in</strong>g</strong> Act section 75 <strong>and</strong> Water Acts.<br />
138<br />
See Environmental Justice case study, Marcopper <strong>in</strong> <strong>the</strong> Philipp<strong>in</strong>es<br />
http://www.umich.edu/~snre492/Jones/marcopper.htm.<br />
139<br />
Mar<strong>in</strong>duque government <strong>in</strong>cludes Barrick Gold as defendant <strong>in</strong> Nevada case, Press Release June 21, 2006 see<br />
http://www.jatam.org/english/<strong>in</strong>dex.php?option=com_content&task=view&id=31&Itemid=75&PHPSESSID=1fb645bd671<br />
0164a978444ac92b8dca9 see <strong>M<strong>in</strong><strong>in</strong>g</strong> Ombudsman Case updates 2005 Oxfam Australia August 2006 available at<br />
http://www.oxfam.org.au/campaigns/m<strong>in</strong><strong>in</strong>g/ombudsman/2005/case_updates.pdf page 13<br />
140 BizNews Asia Vol 3 No 36 October 5-12 2005 p 32<br />
141<br />
M<strong>in</strong>ers behav<strong>in</strong>g badly abroad by: Techa Beaumont 18th August 2006 www.newmatilda.com available at<br />
http://www.newmatilda.com/policytoolkit/policydetail.asp?PolicyID=478<br />
142 See M<strong>in</strong>ers say GMA fails to live up to vows, cancel <strong>in</strong>t'l meet by Ayen Infante, Tribune 12th September available at<br />
http://www.tribune.net.ph/20060912/bus<strong>in</strong>ess/20060912bus2.html also available at<br />
http://www.m<strong>in</strong>es<strong>and</strong>communities.org/Action/press1215.htm See also ‘Manila review hits m<strong>in</strong>ers’ The St<strong>and</strong>ard,Ch<strong>in</strong>ese<br />
Bus<strong>in</strong>ess Newspaper 21 September 2006 available at<br />
http://www.<strong>the</strong>st<strong>and</strong>ard.com.hk/news_detail.asp?pp_cat=22&art_id=27731&sid=10019223&con_type=1<br />
143 Follow<strong>in</strong>g a consistent rise, share prices <strong>in</strong> <strong>the</strong> month of April 2006 reached $1.50, as of <strong>the</strong> 19 th of August 2006 share<br />
prices had fallen to $0.76 see<br />
http://www.asx.com.au/asx/research/CompanyInfoSearchResults.jsp?searchBy=asxCode&all<strong>in</strong>fo=on&asxCode=LAF<br />
144 http://www.dcmiphil.org/Allan_Laird%27s_Statement.pdf. Reports show<strong>in</strong>g payments to <strong>the</strong> Abu Sayyaf were provided<br />
to <strong>the</strong> FBI <strong>in</strong> June 1994.<br />
62
“Not only have <strong>the</strong> oil, gas <strong>and</strong> m<strong>in</strong><strong>in</strong>g <strong>in</strong>dustries not helped <strong>the</strong> poorest people <strong>in</strong><br />
develop<strong>in</strong>g countries, <strong>the</strong>y have often made <strong>the</strong>m worse off. Scores of recent<br />
academic studies <strong>and</strong> many of <strong>the</strong> bank's own studies confirmed our f<strong>in</strong>d<strong>in</strong>gs that<br />
countries which rely primarily on extractive <strong>in</strong>dustries tend to have higher levels<br />
of poverty, child morbidity <strong>and</strong> mortality, civil war, corruption <strong>and</strong><br />
totalitarianism than those with more diversified economies. Does this mean<br />
extractive <strong>in</strong>dustries can never play a positive role <strong>in</strong> a nation's economy? No, it<br />
simply means that <strong>the</strong> only evidence of such a positive role we could f<strong>in</strong>d took<br />
place after a country's democratic governance had developed to such a degree<br />
that <strong>the</strong> poorest could see some of <strong>the</strong> benefits…”. Dr Emil Salim, World Bank<br />
Extractive Industries Review 2004 (EIR). UK F<strong>in</strong>ancial Times on 16 June 2004.<br />
“…. We must <strong>the</strong>refore encourage <strong>and</strong> support <strong>the</strong> 'ecological conversion' which<br />
<strong>in</strong> recent decades has made humanity more sensitive to <strong>the</strong> catastrophe to which<br />
it has been head<strong>in</strong>g. Man is no longer <strong>the</strong> Creator's 'steward', but an autonomous<br />
despot, who is f<strong>in</strong>ally beg<strong>in</strong>n<strong>in</strong>g to underst<strong>and</strong> that he must stop at <strong>the</strong> edge of <strong>the</strong><br />
abyss". Pope John Paul II 17 January 2001<br />
“[We] support <strong>the</strong> call of various sectors, especially <strong>the</strong> Indigenous Peoples, to<br />
stop <strong>the</strong> 24 Priority <strong>M<strong>in</strong><strong>in</strong>g</strong> Projects of <strong>the</strong> government, <strong>and</strong> <strong>the</strong> closure of largescale<br />
m<strong>in</strong><strong>in</strong>g projects, for example, <strong>the</strong> Rapu-Rapu Polymetallic Project <strong>in</strong> Albay,<br />
HPP Project <strong>in</strong> Palawan, Didipio Gold-Copper Project <strong>in</strong> Nueva Vizcaya,<br />
Tampakan Copper-Gold Project <strong>in</strong> South Cotabato, Canatuan Gold Project <strong>in</strong><br />
Zamboanga del Norte, <strong>and</strong> <strong>the</strong> San Antonio Copper Project <strong>in</strong> Mar<strong>in</strong>duque,<br />
among o<strong>the</strong>rs; [we] support <strong>the</strong> conduct of studies on <strong>the</strong> evil effects of m<strong>in</strong><strong>in</strong>g <strong>in</strong><br />
dioceses; [we] support all economic activities that are life-enhanc<strong>in</strong>g <strong>and</strong><br />
poverty-alleviat<strong>in</strong>g.” (CBCP Pastoral, January 29, 2006)<br />
“What does it ga<strong>in</strong> a nation to be short-sighted <strong>and</strong> merely th<strong>in</strong>k of money when<br />
an irreparable damage to <strong>the</strong> environment will cost human lives, health, <strong>and</strong><br />
livelihood capacity of our farmers <strong>and</strong> fisherfolks endanger<strong>in</strong>g <strong>the</strong> food security<br />
of our people.”<br />
Then Secretary of <strong>the</strong> DENR Heherson Alvares. Philipp<strong>in</strong>e Star, November 13,<br />
2001<br />
Photos of <strong>the</strong> fact-f<strong>in</strong>d<strong>in</strong>g trip can be found on:<br />
http://philipp<strong>in</strong>esfactf<strong>in</strong>d<strong>in</strong>g.blogspot.com/<br />
Front cover: Timbaboy, Midsalip, Zamboanga del Sur, M<strong>in</strong>danao. Ricefields thrive <strong>in</strong><br />
rich irrigated volcanic soils <strong>in</strong> <strong>the</strong> Mt P<strong>in</strong>ukis range of mounta<strong>in</strong>s, held sacred by <strong>the</strong><br />
Subaanen People. They are now threatened by m<strong>in</strong><strong>in</strong>g.<br />
63