Leo Jasareno presentation at Conference on Mining's Impact on Philippine Economy and Ecology

MINING’S IMPACT ON THE PHILIPPINE ECONOMY AND ECOLOGY: GOVERNMENT PERSPECTIVE LEO L. JASARENO Acting Director Mines and Geosciences Bureau Department 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 thefull control and supervision of the State. The State may directly undertake suchactivities, or it may enter into co-production, joint venture, or production-sharingagreements with Filipino citizens, or corporations or associations at least 60 percentum of whose capital is owned by such citizens. Such agreements may be for aperiod 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 involvingeither technical or financial assistance for large-scale exploration, development, andutilization of minerals, petroleum, and other mineral oils according to the generalterms and conditions provided by law, based on real contributions to the economicgrowth and general welfare of the country. In such agreements, the State shallpromote 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 exclusiveeconomic zone of the Republic of the Philippines are owned by the State. It shall bethe responsibility of the State to promote their rational exploration, development,utilization and conservation through the combined efforts of government and theprivate sector in order to enhance national growth in a way that effectively safeguardsthe environment and protect the rights of affected communities”.

Philippine Mining Act and IRR• 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

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

Mining is NOT allowed in:• 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.

THE LEGACY MINESRallying point ofthose who opposenew miningprojects

FINAL MINEREHABILITATION/DECOMMISSIONING PLAN Year 0: Mined-Out Area

Year 2

Year 3

Year 4

Approved Mining Tenements (As of January 2012)Exploration Permit 115Mineral Production Sharing Agreement 339Financial or Technical Assistance Agreement 6Mineral Processing Permit 68Industrial Sand and Gravel Permit 214Mining Lease Contract 36TOTAL EXISTING/APPROVED MINING PERMITS 778

Operating Mines• 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

Mine Development Far Southeast Copper- Gold Project Projects OceanaGold Didipio Copper-Gold Project Siana Gold Project BoyunganRunruno Gold- Gold ProjectMolybdenum Project SumitomoKingking Copper Gold Nickel ProjectProjectTampakan Copper 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 BillionSmall Scale Gold Mining 36.8 Billion 42.9 Billion 34.1 BillionNon-metallic mining 26.5 Billion 33.3 Billion nya TOTAL P 106.1 Billion P144 .4 Billion P122.1 BillionGROSS VALUE ADDED IN MINING AT CURRENT PRICES P 65.8 Billion P 88.2 Billion P 56.1 Billion*(NSCB)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 MillionMining Contribution To Total Exports 3.9% 3.7% 5.6%TOTAL EXPORTS OF NON-MET. MINERAL MANUFACTURES $156 Million $162 Million $130 Million(BSP)Mining Contribution To Total Exports 0.4% 0.3% 0.4%EMPLOYMENT IN MINING AND QUARRYING (DOLE) 169,000 197,000 205,000Mining Contribution To Total Employment 0.5% 0.5% 0.6%TAXES, FEES AND ROYALTIES FROM MININGFees, Charges & Royalties Collected by DENR-MGB/LGUs P 396.2 Million P 800.6 Million P 558.6 MillionExcise Tax Collected by BIR 718.8 Million 1,299.7 Million nyaTaxes Collected by Natl. Govt. Agencies 10,272.5 Million 10,612.4 Million nyaTaxes 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 2011 2010 % Change Mineral Commodity Unit Quantity Value Quantity Value Qty ValuePRECIOUS METALS 65,898,447,124 71,698,391,862 -8Gold kg 31,120 63,142,761,963 40,847 70,508,198,235 -24 -10Silver kg 45,530 2,755,685,161 41,004 1,190,193,627 11 132BASE METALS 56,248,482,781 40,271,604,780 40Copper Concentrate DMT 253,975 19,091,584,582 236,814 15,775,710,591 7 21Nickel Concentrate DMT 38,798 11,197,108,000 33,539 9,795,473,000 16 14Nickel Direct Shipping Ore DMT 20,104,142 24,463,091,114 13,763,734 14,080,650,478 46 74Metallurgical Chromite DMT 25,483 145,178,018 14,807 117,135,758 72 24Zinc DMT 37,354 1,036,557,037 19,819 502,634,953 88 106Iron Ore DMT 126,177 314,964,029 0 0TOTAL 122,146,929,90 111,969,996,642 9 5

PH now 2nd in global mineproduction 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 themine or not?

A mining area situated right along a road andthe coast, with vulnerable features.

Leo Jasareno presentation at Conference on Mining's Impact on Philippine Economy and Ecology

by Arangkada Philippines

Accessibility

Categories

Upload Details

Usage Rights

Statistics

Leo Jasareno presentation at Conference on Mining’s Impact on Philippine Economy and Ecology Presentation Transcript