leo jasareno presentation at conference on mining's impact on philippine economy and ecology
DESCRIPTION
The Conference on Mining's Impact on Philippine Economy and Ecology, March 2, 2012, Inter-Continental ManilaEngr. Leo Jasareno of the Mines and GeoSciences Bureau and the Department of Environment and Natural Resources presented the government's perspective.TRANSCRIPT
MINING’S IMPACT ON THE PHILIPPINE ECONOMY AND
ECOLOGY:GOVERNMENT PERSPECTIVE
LEO L. JASARENOActing Director
Mines and Geosciences BureauDepartment of Environment and Natural Resources
Shall we mine or not?
“The Philippines possesses a strong mineral resource base that justifies mining as a development option - for as long as it is responsible mining where benefits far outweigh the costs.”
From: Garwin
THE LEGAL BASIS OF MINING
•Section 2, Article XII of the 1987 Philippine Constitution
“The exploration, development, and utilization of natural resources shall be under the full control and supervision of the State. The State may directly undertake such activities, or it may enter into co-production, joint venture, or production-sharing agreements with Filipino citizens, or corporations or associations at least 60 per centum of whose capital is owned by such citizens. Such agreements may be for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and under such terms and conditions as may provided by law”. “The President may enter into agreements with foreign-owned corporations involving either technical or financial assistance for large-scale exploration, development, and utilization of minerals, petroleum, and other mineral oils according to the general terms and conditions provided by law, based on real contributions to the economic growth and general welfare of the country. In such agreements, the State shall promote the development and use of local scientific and technical resources.”
•Section 2 of the Philippine Mining Act of 1995
“All mineral resources in public and private lands within the territory and exclusive economic zone of the Republic of the Philippines are owned by the State. It shall be the responsibility of the State to promote their rational exploration, development, utilization and conservation through the combined efforts of government and the private sector in order to enhance national growth in a way that effectively safeguards the environment and protect the rights of affected communities”.
• Enshrined the principles of responsible mining;
• Placed strong focus on life-of-mine and after-mining environmental and social responsibilities;
• Ensured equitable sharing of benefits; and
• Protected the rights of Indigenous Peoples and communities.
Philippine Mining Act and IRR
Other Major Laws on Mining
• National Integrated Protected Areas System Act• Indigenous Peoples Rights Act • Environmental Laws
• Philippine EIS System• Clean Water Act• Clean Air Act• Ecological Solid Wastes Management Act• Hazardous and Toxic Wastes Management Act
• Local Government Code• Forestry Code• Small-Scale Mining Laws
• Old growth or virgin forests, proclaimed watershed forest reserves, wilderness areas, mangrove forests, mossy forests, national parks, provincial/municipal forests, tree parks, greenbelts, game refuge, bird sanctuaries and areas proclaimed as marine reserves/marine parks, tourist zones, and identified initial components of the NIPAS;
• Critical watersheds with appropriate barangay/municipal/ city/provincial Sanggunian ordinance;
• Forest and other government reservations (unless with clearance from agency concerned);
• Built-up areas (buildings, bridges, private plantations, etc.) unless with consent from agency or party concerned;
• Ancestral domains/lands unless with Free and Prior Informed Consent from Indigenous Peoples;
• Coastal areas; and
• Other areas expressly prohibited by law.
Mining is NOT allowed in:
THE LEGACY MINES
Rallying point ofthose who opposenew mining projects
FINAL MINE REHABILITATION/DECOMMISSIONING PLAN
Year 0: Mined-Out Area
Year 2
Year 3
Year 4
Exploration Permit 115
Mineral Production Sharing Agreement 339
Financial or Technical Assistance Agreement 6
Mineral Processing Permit 68
Industrial Sand and Gravel Permit 214
Mining Lease Contract 36
TOTAL EXISTING/APPROVED MINING PERMITS 778
Approved Mining Tenements (As of January 2012)
• 3 Copper mines (with gold and silver)
• 1 Copper mine (with gold, silver zinc)
• 5 Gold mines
• 3 Chromite mines
• 1 Magnetite mine
• 18 Nickel mines
• 1 Nickel Processing Plant
• 1 Copper Processing Plant
• 2000+ sand and gravel, and other non-metallic small-scale operations
Operating Mines
Mine Development Projects
Kingking Copper Gold Project
Sumitomo Nickel Project
Tampakan Copper Project
Boyungan Gold Project
Far Southeast Copper-Gold Project
Runruno Gold-Molybdenum Project
OceanaGold Didipio Copper-Gold Project
Siana Gold Project
Industry Performance 2009 2010 2011*
GROSS PRODUCTION VALUE IN MINING (MGB)
Large Scale Metallic Mining P 42.8 Billion P 68.2 Billion P 88.0 Billion
Small Scale Gold Mining 36.8 Billion 42.9 Billion 34.1 Billion
Non-metallic mining 26.5 Billion 33.3 Billion nya
TOTAL P 106.1 Billion P144 .4 Billion P122.1 Billion
GROSS VALUE ADDED IN MINING AT CURRENT PRICES (NSCB)
P 65.8 Billion P 88.2 Billion P 56.1 Billion*
Mining Contribution To GDP 0.8% 1.0% 1.2%
TOTAL EXPORTS OF MINERALS & MINERAL PRODUCTS (BSP) $1,470 Million $1,870 Million $2,043 Million
Mining Contribution To Total Exports 3.9% 3.7% 5.6%
TOTAL EXPORTS OF NON-MET. MINERAL MANUFACTURES (BSP)
$156 Million $162 Million $130 Million
Mining Contribution To Total Exports 0.4% 0.3% 0.4%
EMPLOYMENT IN MINING AND QUARRYING (DOLE) 169,000 197,000 205,000
Mining Contribution To Total Employment 0.5% 0.5% 0.6%
TAXES, FEES AND ROYALTIES FROM MINING
Fees, Charges & Royalties Collected by DENR-MGB/LGUs P 396.2 Million P 800.6 Million P 558.6 Million
Excise Tax Collected by BIR 718.8 Million 1,299.7 Million nya
Taxes Collected by Nat'l. Gov't. Agencies 10,272.5 Million 10,612.4 Million nya
Taxes and Fees Collected by LGUs 992.8 Million 1,113.0 Million 23.0 Million
TOTAL P12,380.3 Million P13,825.7 Million P581.6 Million
* - Preliminary
Industry Performance
Mineral Commodity Unit
2011 2010 % Change
Quantity Value Quantity Value Qty.
Value
PRECIOUS METALS 65,898,447,124 71,698,391,862 -8
Gold kg 31,120 63,142,761,963 40,847 70,508,198,235 -24 -10
Silver kg 45,530 2,755,685,161 41,004 1,190,193,627 11 132
BASE METALS 56,248,482,781 40,271,604,780 40
Copper Concentrate DMT 253,975 19,091,584,582 236,814 15,775,710,591 7 21
Nickel Concentrate DMT 38,798 11,197,108,000 33,539 9,795,473,000 16 14
Nickel Direct Shipping Ore DMT 20,104,142 24,463,091,114 13,763,734 14,080,650,478 46 74
Metallurgical Chromite DMT 25,483 145,178,018 14,807 117,135,758 72 24
Zinc DMT 37,354 1,036,557,037 19,819 502,634,953 88 106
Iron Ore DMT 126,177 314,964,029 0 0
TOTAL 122,146,929,905
111,969,996,642 9
PH now 2nd in global mine production after Russia
(United States Geological Survey Mineral Commodity Summaries 2012)
CHALLENGES
• Perception of mining as an environmental despoiler;
• Lapses and delinquencies of miners;• Lack of monitoring capability of government;• Insufficient national mineral resources
inventory;• Insufficient Government Share from mineral
resources utilization;• Security of investments; and• Opposition of LGUs to mining.
CHALLENGES
• Small-Scale mining:
• Having 2 laws on small-scale mining;• The unabated use of mercury in extracting gold;• Unsafe mining practices;• Lack of environmental impact mitigation;• Rampant child labor; • Illegal use of heavy equipment and explosives; • Non-collection of excise tax;• Rapid depletion of mineral deposits due to
selective unsystematic method of mining; and • Proliferation of illegal small-scale mining
operations.
CHALLENGES
• Land Use Conflicts with -
• Farmlands.• Ancestral land/domain.• Key biodiversity areas.• Proposed protected areas.• Eco-tourism areas.• Agrarian reform areas.• Forestry projects.• Fishing grounds.
The Road Forward
• Pursuing further the “Use it or Lose it Policy”;
• Enrolling the mining industry in the National Greening Program;
• Participating in the Extractive Industry Transparency Initiative;
• Responding to the legislative challenges to the Mining Act;
The Road Forward
• Pursuing the early resolution of cases filed against mining projects, such as the petitions for Writ of Kalikasan and Temporary Environmental Protection Order;
• Intensifying information, education and communication campaign.
Mining Policy of the Aquino Administration
THANK YOU !
www.MGB.gov.ph
Siltation: From the mine or not?
A mining area situated right along a road and the coast, with vulnerable features.