Mining in the Philippines - Concerns and Conflicts

The fact-finding team also met another group of small-scale miners who act independently of Philex
mines. They were originally working in Mt Canatuan but were forced to leave when TVI commenced
operations there. They follow gold rich veins and use mercury to extract gold from ore. They receive
no technical or financial assistance from the government.
Most alarming for the local community, after all their suffering and protests, which led to the closure
of the mine, is that they believe that there may be attempts to reopen the main mining site as up to 90
per cent of the ore is estimated to remain.
Other mining operations
In addition to these visits, the team also met representatives of other communities where major
mining operations are ongoing or planned, despite local resistance. The following is a sample of these
mining operations.
Rapu-Rapu – Lafayette Mining, Australia
Lafayette’s mining operation on the Island of Rapu-Rapu was declared the government ‘showcase’
for the new mining policy. Following two tailings spills in October 2005, which resulted in the death
of marine life, the gold mining was stopped. President Arroyo launched an independent fact-finding
mission. The report of this commission was completed in March 2006 and presented to the President.
The fact-finding team heard an overview of the report’s findings.
The report concluded that Lafayette did not have adequate safety measures in place to safeguard the
island’s eco-system and was negligent in its operations. In addition to documented fish kills, the
commission believed that the mining operation ‘led to or caused certain negative consequences to
health, environmental and economic problems to the people of Rapu-Rapu and nearby coastal
municipalities’. It also pointed out that indigenous people affected by the mining had not been
consulted. The commission also found evidence of possible underreporting of mineral production.
The report recommended the closure of Lafayette’s operations, a ban on mining in Rapu-Rapu and a
review of the Mining Act, in particular the provision allowing 100 per cent foreign ownership of local
mines. Despite this, the government response was to provide a 30-day trial operation period to
Lafayette, which the DENR has subsequently extended.
The reopening of the mine coincided with the visit of the fact-finding team. There was strong local
opposition to its continued operation, with protests supported by civil society, church groups,
minority parties and academics. A class action court case seeking an injunction against the
resumption of operations was also initiated. During the trial period, commitments were made, by
the DENR, that the test-run would be open to the public and third-party experts. 126 The subsequent
arrest of a Greenpeace member who was attempting to measure water quality raises serious questions
as to the sincerity of the governments promise.
Sibuyan Island – Pelican Resources, Australia
The fact-finding team met local officials from Sibuyan Island, Province of Romblon who are opposing
mining. They explained that thirty-three per cent of their small island (44,500 hectares) is covered in
primary forest and has been declared a national park. It is home to the world’s densest forest, with 54
species of trees found nowhere else in the world. It is also home to a number of endemic species of
birds and mammals, some of which are endangered. This island with unique flora and fauna, sandy
beaches, and surrounded by a coral reef has huge eco-tourism potential. Agriculture and fishing are
also viable sources of economic growth: the soil is fertile and crop yields are high. The seas have an
abundant supply of fish of many varieties. 127
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