LESSONS FROM TWO MEETINGS for LUZON CORDILLERA PHILIPPINES

LESSONS FROM TWO MEETINGS for LUZON CORDILLERA, PHILIPPINES SMALLSCALE GOLD MINERS Victor Maglambayan, Ph. D Exploration Manager Philex Mining Corporation 27 Brixton St. Pasig City Philippines 1600

OUTLINE § INTRODUCTION § BACKGROUND OF THE MEETINGS § MEETING ONE – STUDY OF BUSINESS PRACTICES § MEETING TWO – DISSEMINATING SCIENTIFIC DATA § OBSERVATIONS, LESSONS § CONCLUSIONS

PHILIPPINES –An Introduction Land Area – 300, 000 sq. kms. 7, 100 islands and islets Population - 88 M CAPITAL CITY – MANILA LUZON CORDILLERA Ca. 30% below 500 m elevation 70% Up to 2, 000 m elevation 70% above 30% slope BAGUIO CITY SSM IN LUZON CORDILLERA IS NOT TYPICAL IN THE COUNTRY.

DIVERSITY OF COUNTRY SITUATION • TRADITIONAL VS. ASM OR GOLD RUSH • PEOPLE’S MINING AREAS IN A FEW PLACES IN SOUTHERN PHILIPPINES • UNSTABLE PEACE AND ORDER

Primary City of Benguet province – Baguio City (Plateau at 1, 400 m elevation) Itogon town

Small-scale gold mining in Benguet (2004) 6, 400 to 8, 000 small-scale gold miners and panners The industry directly benefited some 58, 000 people. Est. total gold production - 68, 000 ounces Value - US$25 M/year 6% by vol. of total national production (35 MT gold)

SS gold miners flourish despite major difficulties in obtaining acceptance in mainstream Philippine society The law regulating small-scale miners is largely ineffective in monitoring them and their contribution. Some 40% of their production is lost to the black market. In Benguet, only two out of 68 small-scale mining associations possessed small-scale mining permits (2002). Their use of Hg and cyanide is unregulated.

Background of our study (1999): Dr. Satoshi Murao of the Geological Survey of Japan National Institute of Geological Sciences of the University of the Philippines Diliman

Topics Studied § Problems of SS miners in sustaining their livelihood § Assessing the use of Hg in SS mining sites Iwate Cyclotron Center - Hg in the hairs of SS miners § How much Hg is thrown out to the environment Graduate thesis - Geology student of University of the Philippines Diliman Extent of Hg contamination in river sediments and river water in one part of Itogon town (2001 - 2002)

From 2001 -2004: Our study group expanded into related topics: Risk communication Risk perception Health security Entrepreneurship (sustaining the livelihood) Psychologists, sociologists and medical doctors A continuing dialogue with SS gold miners Later, with different groups of people in the town of Itogon and other parts of Baguio City

“A meeting to Study the Business practices of Small-scale Gold Mining in Benguet, Philippines”

March 17, 2004 University of the Philippines Baguio ORGANIZERS: National Institute of Advanced Industrial Science and Technology (AIST) of Japan NIGS-UPD Mines and Geosciences Bureau of the Cordillera Autonomous Region Department of Science and Technology of the Philippines’ Philippine Council for Industry and Energy Research and Development (DOST-PCIERD)

Aim of the meeting: To educate the SS miners about the government instruments that can assist them to increase their productivity

SPEAKERS: 1. Heads of two SS miners’ associations 2. Service contractor 3. Large gold mining corporation 4. Town councilor 5. NGO representative 6. Benguet’s Provincial Mining Regulatory Board

Relationship between a large mining company and a small-scale miners’ cooperative acting as a service contractor for the large mining company Community abandons use of mercury and cyanide.

Government Side: 1. Regional Unit of the Central Bank of the Philippines 2. Social Security System 3. Cooperative Development Authority 4. Department of Trade and Industry 5. Department of Labor and Employment.

Government Side: 1. Central Bank is trying to respond to suggestions for it to capture a bigger share of the gold production from the SS miners. 2. Social Security System - Encouraged SS miners to avail of their retirement and sickness benefits by joining as members of SSS 3. Cooperative Development Authority Trainings are available if SS miners’ associations transformed their grouping into cooperatives.

Government Side: 4. Department of Trade and Industry speaker – Barangay (village) Micro-Business Enterprise 5. DOLE speaker – Advantages of registering : Programs and trainings available – PRESEED (Promotion of Rural Employment thru Self-Employment and Enterpreneurial Development) Loan programs WEED (Women Employment and Enterpreneurial Development) Workers Organization Development Program (WODP) Promotion of the Barangay Business Enterprises (PBBE)

Observations It seemed to us that SS miners in Luzon Cordillera were proactive in seeking solutions to their problems, especially concerning their desire for recognition and acceptance. JUST LIKE THE PEOPLE OF MONGOLIA, IN A SENSE.

Lessons Learned § SS miners - Problems in obtaining financing and their lack of permits from the government § The law on small-scale mining was examined and some of its loopholes pointed out. § Symbiotic relationship between a large mining company and a small-scale miners cooperative § SS miners clamored for social insurance, training and assistance from the government § Information systems need much improvement.

Second Meeting “A meeting to examine and discuss scientific data of mercury in and around the municipality (or town) of Itogon”.

Village of Bua, Itogon Integrated Watershed Management Training Center December 8, 2004 The scientific data of mercury contamination was examined before the town residents and other stakeholders.

Government officer explains hazards of mercury intoxication to the people of Itogon, including the town mayor.

OBSERVATIONS 1. Skeptical attitude of SS miners 2. Tendency to ask for assistance from foreigners. 3. Apparent reluctance to spend on research to find solutions 4. Medical doctors lack documented case of mercury intoxication; noted rise in cancers 5. “We did not have problem before. ”

Lessons Learned: It appeared that SS miners, even when confronted by scientific facts, tend to deny possible negative effects on their bodies. The meeting highlighted the differences in risk perception among different groups of people. Some positive, some negative reactions.

CONCLUSIONS: 1. Taken together, the two meetings resulted to a better understanding of the problems of SS gold miners in the region. 2. Clear action plans were arrived at in the first meeting; less so in the second meeting. 3. Our experience in organizing these meetings helped us to appreciate the need for more effort in sustaining the relationships and improving synergy among stakeholders. 4. Information, education and communication are key factors. 5. Sustainable development of SS miners’ industry can 6. Contribute to human security.

THANK YOU FOR YOUR ATTENTION. Special thanks to: 1. World Bank 2. Dr. Satoshi Murao, CASM-ASIA 3. Dr. Toshiko Kikkawa, Keio Univ. Japan 4. Mr. Edmund Bugnosen, Bugnosen Minerals Engineering, UK 5. Philex Mining Corporation 6. People of Mongolia for the warm hospitality