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Environmen

t
MINING, DIRTY
ENERGY(COAL)

Source: lightstalkers.org

The Philippine Mining Industry


- High mining potential
- Has a very poor record
massive social and environmental problems
- World ranking (Mining and Geosciences Bureau)
2nd in gold resources
3rd in copper reserves
5th in overall mineral resources
- 9 million hectares, 2% has received mining
permits

The Philippine Mining Industry


---insert table 1. mining products export
distribution, 2009

The Philippine Mining Industry

Most mineral resources are located


within the ancestral domain of
indigenous people

Issues on the livelihood, health and


human rights of indigenous people

The Philippine Mining Industry

The Philippine government had been


conducting major studies on the
country's mineral potentials

Potential jobs, investments,


economic benefits

The Philippine Mining Industry


Establishments
According to ASCPBI, 2010
(conducted by NSO)
There are 110 establishments under
mining and quarrying sector
The gold ore mining dominates the
sector

The Philippine Mining Industry

The Philippine Mining Industry


Workers
According to ASCPBI, 2010 (NSO)
There are only 26, 834 workers
employed at mining and quarrying
establishments

The Philippine Mining Industry

The Philippine Mining Industry


However, according to National
Statistical Coordination Board (2011)
- there are 226,000 workers under the
mining and quarrying industry, which
is only 0.58% of the total employed
persons in the Philippines (total
employed: 38, 551, 000)

The Philippine Mining Industry


Salary
According to ASCPBI, 2010 (NSO)
Average Annual Salary (264,438)
Crude Petroleum: 1, 440, 697
Copper: 275, 556
Gold: 273, 750
Nickel: 225, 364

The Philippine Mining Industry

The Philippine Mining Industry


Types of Mining
1. Large Scale Mining
-Done by big corporations
-With big manual labor force
2. Small Scale Mining
-Done with group of 5-6 workers
-This group travels from one site to other site

The Philippine Mining


Industry
Coal Mining

The Coal Mining Industry


Coal
Coal is defined as a sedimentary rock
composed predominantly of solid
organic materials with a greater or
lesser proportion of mineral matter.
sought-after energy source
has the largest reserve
the cheapest of the fuel options

The Coal Mining Industry


Philippine Coal Mining Potential
vast potential for coal resources
As of 31 September 2005
---The in-situ coal reserves amount to 458
million metric tons or 18 % of the
country's total coal resource potential of
2.53 billion metric tons.

The Coal Mining Industry


Overall Coal Statistics (DOE)
- Philippines has a total coal consumption of
16.163 million metric tons as of 2012, of
which 11.895 million metric tons is
imported, and only 3.173 million metric
tons is exported

The Coal Mining Industry


Statistics on Coal Mining (NSO, 2006)
Coal mining sector is only 5.1% of total
mining and quarrying sector
It only generated 1.9% of total 10,764
employment generated by mining and
quarrying industries.
Workers under Coal Mining Industry has an
average annual income of 297, 900.

The Coal Mining Industry


Recent upswing development in the coal
industry encouraged increased interest in
coal exploration
To date, there are 36 coal operating
contracts, 16 of which are under
exploration stage to verify potentials of
the coal fields, and 43 small-scale coal
mining operators.

The Coal Mining Industry


Incentives
The current coal operating contract (COC) system
gives the following incentives to contractors:
Exemption from all taxes except income tax
Exemption from payment of tariff duties and
compensating tax on importation of
machinery/equipment/spare parts/materials
required for the coal operations
Allow entry of alien technical personnel
The right of ingress to and egress from the COC
area
Recovery of operating expenses

Issues and
Concerns

Issues and Concerns

Human Rights
Corruption
Pressure on the judiciary
Environmental concerns
Issues in relation to indigenous people
Health impacts

Issues and Concerns:

HUMAN RIGHTS
Security firms and militarization
Global trend of human rights violations
associated with mining security and
militarization is very evident in the Philippines

Issues and Concerns:

HUMAN RIGHTS
Security firms and militarization
The use of intimidation and force by the
mining security forces and/or the police are
widespread
Militarization of indigenous areas is a grave
human rights problem
- Prof. Rodolfo Stavenhagen

Issues and Concerns:

HUMAN RIGHTS
Security firms and militarization
It was a practice for the mine to make illegal
payments of protection money to a range of
terrorist and military groups
Military, political figures, and
terrorist/insurgent groups

Issues and Concerns:

HUMAN RIGHTS
Security firms and militarization
Extra-judicial killings

Issues and Concerns:

CORRUPTION
The Philippines have been categorized in
2004 by Transparency International as
suffering from rampant corruption.
Mining industry is no exception to this.
Corruption linked to mining at local
government level.

Issues and Concerns:

CORRUPTION
Reviews and studies include
Extractive Industry Transparency Initiative commissioned by World Bank
Other international studies

Linked dependency on natural resources to


high levels of corruption

Issues and Concerns:

PRESSURE ON THE JUDICIARY


Philippine judiciary may be vulnerable
to pressure from legislators
It appears to be practically impossible for local
communities to obtain timely and effective
resolution of cases submitted at municipal and
regional trial courts

Issues and Concerns:

ENVIRONMENTAL CONCERNS

Issues and Concerns:

ENVIRONMENTAL CONCERNS

Issues and Concerns:

ENVIRONMENTAL CONCERNS

Issues and Concerns:

ENVIRONMENTAL CONCERNS

Issues and Concerns:

ENVIRONMENTAL CONCERNS
Modern mining
- open pit mining involves flattening of
mountaintops, creating huge craters and later on
result to various amounts of waste which will
become tailings
The Philippines & Geo-Hazard Risks

Issues and Concerns:

ENVIRONMENTAL CONCERNS
Food and water security
- many mining exploration areas overlap watershed
areas where demands for water exceeds the
available supply
- competition

Issues and Concerns:

INDIGENOUS PEOPLE
Legislation
- for indigenous people gained
international credibility
- for the environment most progressive
in the SEA

Issues and Concerns:

INDIGENOUS PEOPLE
The protection of peoples right to enjoy a balanced
and healthy ecology is in the constitution.The
Indigenous Peoples Rights Act (IPRA, 1997)
and the Mining Code (Republic Act 7942,
1995)

Issues and Concerns:

INDIGENOUS PEOPLE
- lack of independent information regarding mining
that is made available to them ( as required by law)
they feel they are not in the position to
make an informed choice.

Issues and Concerns:

INDIGENOUS PEOPLE
- Foot in the door policy
Companies only provide them with details of
their initial planned operations and do not give
them information on the potential for future
expansion

Issues and Concerns:

INDIGENOUS PEOPLE
- Misinterpretation in relation to capitalism of
mining companies
- Getting consent
- Weaknesses in the law

Issues and Concerns:

HEALTH IMPACTS
- Threats to health
itching, skin rashes
(washing with water, working in
the rice fields)

Issues and Concerns:

HEALTH IMPACTS
- Commercial mining cyanide separation to extract
gold from ore
one-millionth of a gram of cyanide per liter of
water can be fatal to fish

Issues and Concerns:

HEALTH IMPACTS
- Decreased productivity of farming and fishing
food supply

Issues and Concerns:

HEALTH IMPACTS
- Collapse of tailing dams
injuries, deaths

Programs/
Projects

Programs/projects that address issues

References

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