Mining in the Philippines - Concerns and Conflicts

Executive Summary
A team led by Clare Short MP, the former UK Secretary of State for Overseas Development, visited
the Philippines in July and August 2006.
The Catholic Bishops of the Philippines attracted international attention because of their concerns
regarding the proposed expansion of the mining industry, which has already had major negative
impacts on local communities and the environment. In their view ‘The implementation of the Mining
Act will certainly destroy both the environment and people and will lead to national unrest’.
The team was shocked by what they heard and saw during their visit. In its attempts to woo foreign
direct investment, the Philippines government appears willing to circumvent its own laws protecting
the environment and human rights and reduce standards below acceptable international practice.
Internationally the World Bank’s Extractive Industry Review (EIR), a range of academic studies and
UN reports have been highly critical of such an approach. All identify mining companies as the main
beneficiaries of regulatory concessions in the extractive industry, while the long-term burden of
environmental and social costs remains with the developing countries and some of their poorest
communities.
The team recognizes the external pressures on the Philippines as a deeply indebted country to
generate foreign investment but fears that the emphasis on export-driven mining based on foreign
investment may diminish rather than improve the possibility of a balanced, long-term, sustainable
development strategy. The problems are exacerbated by the unresolved problems of corruption and
the fact that, again contrary to the recommendations of the EIR, many of the proposed new mining
sites are in areas of conflict including Mindanao.
Mining in the Philippines is being developed at a speed and scale (See Appendix 9 Scale of Planned
Mineral Opportunities presented to Investors), and in a manner likely to cause massive long-term
environmental damage and social problems. Current mining plans will undermine the Government’s
own strategy for sustainable development by destroying or severely damaging critical eco-systems,
including watersheds, rivers, marine eco-systems and important agricultural production areas.
The population, currently 84 million, is expected to reach 150 million by 2036. Maintaining the
productivity and viability of the land and marine environment is surely the highest priority. Food
shortages already exist. The Medium Term Philippine Development Plan (MTPDP) of the National
Economic and Development Authority highlights the need to address environmental degradation.
The team fears further damage to the environment by mining will occur and will increase the threat
to the country’s long-term food security and the survival of future generations of Filipinos.
The Philippines is one of the 17 countries in the world to be categorized as a mega-biodiversity
country. It is also a geo-hazard hotspot, prone to typhoons, earthquakes, landslides and volcanoes. Its
environmental sustainability is already under serious threat with the UNDP highlighting the urgent
need to properly manage the country’s natural resources if MDG 7 is to be achieved 1 . These factors,
together with potential social impacts, should require the Philippine government to exercise extreme
caution in authorizing large-scale mining projects.
The Philippines has relatively strong laws designed to protect the environment, communities and
indigenous peoples. The reality, however, is that where investments are concerned the law is too
often viewed as a mere technicality to be overlooked or circumvented. Human rights abuses and
misreporting are clearly associated with some current mining activities. It is of concern that those in
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