RATIONALE AND MINING IN THE PHILIPPINES RATIONALE The

RATIONALE AND MINING IN THE PHILIPPINES

RATIONALE The mining industry has a significant role in the Philippine economy. Economic expansion, is due to the following advantages brought about by mining: • Higher tax incomes for the government; • Increase in employment in local communities; • An increase in demand for goods and services; • Supplies raw materials that are needed to build and maintain industries and economies; • Excellent support for mining industry in the international community; • and, increased foreign investments.

Mining is obviously harmful to the environment. • It brings about deforestation. • The chemicals used in the process are also dangerous to the environment as they pollute the water sources and other living organisms. • Mining damages natural beauty. • Mining also causes the loss of ecosystems. • Mining pollutes the environment, takes away people’s homes, and poses health risks to the surrounding communities.

• Given that mining both has its advantages and disadvantages, “the question then is not whether we should mine or not, but how do we mine responsibly”. • While it is inevitable that mining activities impact the surrounding environment, every measure must be undertaken to ensure that the impact is managed to acceptable degrees and that proper rehabilitation is carried out after mining operations. We are all potential beneficiaries of the mineral wealth of our country, but we must not forget our role as caretakers of our nation; we must work towards responsible mining.

• We believe that responsible mining can greatly contribute to national economic growth and countryside community development. However, we are also sensitive to the known environmental impacts of mining and we recognize that the development of responsible laws to govern mineral exploration, mining and investment decisions and an effective institutional structure, are fundamental for the sustainable utilization of the country's mineral resources.

Mining in the Philippines • When it comes to mineral resources, the Philippines is considered the fifth richest country in the world. It has the largest nickel reserves. It is third in the world for gold, and fifth in copper. The Philippines is also rich in non-metallic and industrial minerals such as marble, limestone, clay, dolomite, guano and other quarry resources.

• According to the Mines and Geosciences Bureau of the Department of Environment and Natural Resources (DENR), the country sits on an estimated $840 billion worth of untapped mineral wealth. That is said to be 15 times the amount of the country’s foreign debt. • Of the 30 million hectares total land area of the country, about a third or nine million hectares have been identified as having high mineral potential.

Mining, however, has caused a lot of problems for the country. • For one, over half of the lands used as mining sites are ancestral domains of indigenous tribes in the Philippines. • Cases of human rights violations ranging from forced evacuation, harassment and massacre of locals opposing mining operations have been reported. • Local communities have lost their former livelihoods in fishing, agriculture and forestry, as some of them were forced to become mineworkers instead. • Massive siltation of the rivers, poisoning the waterways and agricultural fields with toxic chemicals and rendering fields stale and communities more vulnerable to flooding.

• The Philippine Mining Act of 1995 allows 100% foreign ownership of mining assets. Foreign companies may only hold 40% of the land title however, and therefore international companies form partnerships with local companies in order to secure the land tenure. • On February 1, 2011, President Aquino passed Executive Order (EO) number 23 which exempted the mining corporations from the logging ban. • Executive Order No. 79 was issued on July 6, 2012 by President Aquino to institutionalize and implement reforms in the Philippine mining sector by providing policies and guidelines to ensure environmental protection and responsible mining in the utilization of mineral resources.

Mission/Vision • To promote responsible mining that honors people's rights, builds sustainable communities, supports the local and national economy, promotes good governance, practices transparency, respects the indigenous peoples and protects the environment.