MacArthur Assessment Results - GIZ ENRD
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MacArthur Assessment Results - GIZ ENRD

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MacArthur Assessment Results - GIZ

“WHERE HAVE ALL THE RICEFIELDS GONE, GONE TO MINING…”


THE CASE OF MACARTHUR, LEYTE

Presented by Maria Aurora T.W. Tabada, Director, Institute of Strategic Research and Development Studies, Visayas State University, during the GIZ-ENRD Program 4th Quarterly Team Meeting on 14 October 2011 @ CCE, VSU

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  • YES TO LIFE
    AGRICULTURE & ECO TOURISM
    No to mining in Palawan AND other
    Key Biodiversity Areas (KBAs)
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  • Ang yaman ng Palawan ay yaman ng Pilipinas It is known as the Philippines’ Last Ecological Frontier. It has 40% of our country’s remaining mangrove areas, 30% of our coral reefs, at least 17 Key Biodiversity Areas (KBAs), 2 UNESCO World Heritage Sites, and 8 declared Protected Areas (PAs). It is unmatched anywhere in the country
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    MacArthur Assessment Results - GIZ ENRD MacArthur Assessment Results - GIZ ENRD Presentation Transcript

    • “WHERE HAVE ALL THE RICEFIELDS GONE,  GONE TO MINING ” GONE TO MINING…”  THE CASE OF MACARTHUR,  LEYTEPresented by Maria Aurora T.W. Tabada, Director,  Institute of Strategic Research and Development Presented by Maria Aurora T.W. Tabada, Director, Studies, Visayas State University, during the GIZ‐ENRD Program 4th Quarterly Team Meeting on 14 October Studies, Visayas State University, during the GIZ‐2011 @ CCE, VSU
    • OVERVIEW• VSU created a TEAM to respond to the request VSU created a TEAM to respond to the request  of Liwayway‐Danao‐Romualdez‐ Imelda‐Maya  Irrigators Association (LIDAROIMA) through Irrigators’ Association (LIDAROIMA)  through  NIA, Archdiocese of Palo, and the Macarthur  Parish• General objective of the study was to  p y , , determine the biophysical, social, and  economic effects of the mining activities of  NICUA Corporation in MacArthur, Leyte
    • OBJECTIVES• Describe the general profile of the affected  g p communities;• Describe the profile of the mining project; Describe the profile of the mining project;• Describe differences if any, observed in the  community since the start of the mining  community since the start of the mining activities;• Identify the perceived effects/problems of the  d f h d ff / bl f h mining activities in the area• Recommend specific courses of action  
    • METHODOLOGY• Bi h i l Biophysical aspects: collection of soil and  ll i f il d water (freshwater and marine) samples for  analysis, ocular inspection l i l i ti• Social & economic aspects:  focus group  discussions, key informant interviews, review  of secondary data • Data collection: August – October 2010 
    • THE MINING PROJECTS IN THE MINING PROJECTS IN MACARTHUR, LEYTE 
    • MAGNETITE MINING MAGNETITE MINING• Magnetite mining;  black sand/iron sand with  titanium tit i• Leyte Ironsand Project of the Strong Built (Mining)  Development Corporation (MPSA No. 254‐2007‐VIII)  Development Corporation (MPSA No 254 2007 VIII) issued on July 28, 2007  covering 7,411.556 ha in  the municipalities of MacArthur and Javier, Leyte  p , y• Mt. Mogan Resources and Development Corp. (EP‐ VIII‐0MR‐11‐2009) issued on Dec. 23, 2009 – Dec.  22, 2011 covering 15,781.6110 ha in the offshore  areas of Tanauan, Tolosa, Dulag, Mayorga MacArthur & Abuyog, Leyte MacArthur & Abuyog Leyte
    • Leyte Magnetite Project Leyte Magnetite Project MPSA NO.   PERMITEE AREA (ha) LOCATION DURATION REMARKS 290‐2009‐VIII  Vincent  523.57  Javier and  29 Sep 2009 – Mines  Tan Tiong i MacArthur,  A h 28 Sep 2034 28 S 2034 Operating  O i Leyte  Agreement  with NICUA  Corp. dated 2  November  N b 2009     317‐2010‐VIII  Edgar L.  776.88    MacArthur,   10 Feb 2010 –  Mines  Lim  Li La Paz and  9 F b 2035 L P d 9 Feb 2035 Operating  O ti Mayorga,  Agreement  Leyte  with NICUA  Corp. dated 30  April 2010 April 2010 Total    1300.45 • ECC (Ref. Code: 1006‐0016) issued on 11 June 2010  • Maximum annual production of 2 million WMT Maximum annual production of 2 million WMT • Use of Chinese technology and skilled manpower
    • LEYTE IRONSAND CORPORATIONLEYTE IRONSAND CORPORATION The Nicua group has over a period of the past 5‐6 years,  The Nicua group has over a period of the past 5‐6 years conducted extensive exploration and metallurgical  testwork on its Leyte magnetite iron ore project. HSMC  farmed in on a large portion of the project late in 2009. f d l f h lhttp://hengshengmining.com/ downloaded 27 October 2010
    • • The venture is well located logistically, being The venture is well located logistically, being  near to existing low cost geothermal power,  and adjacent to the coast for ease of shipping.  It has social and political support and is  environmentally sound.• LIC controls some 20,402 ha of claims in Leyte,  and the claims are all mineralized and cover a  flat area of rice paddies and coconut  plantations.
    • Floating dredges suck up the sand and upgrade the iron sands using an onboard rougher magnetic separator (MSU) to a concentrate containing approx 56% Fe.  upgraded by  hauled by trucks a distance of 1.5 km  grinding in  to the port owned by LIS ready for  to the port owned by LIS ready for ball mills  shipping.
    • Congratulations to Leyte Iron Iron- sand Corp on the first batch of iron concentrate October 20 2010 20,Group photo ofpart of Chineseengineers &technicians.
    • Timeline http://hengshengmining.com/ Time EventMAY 2009 Start to develop and prepare southern part of the mine area in 1200 hec.July - Nov Nov. Complete the construction of roadwork in mine area and connection towards the2009 port. Complete the construction of the port, capable of handling monthly turnover ofFeb 2010 150,000-200,000 ton Complete the construction of an initial magnetic separator plant and anotherFeb 2010 final magnetic separator plant for a total of two plants. Complete the first p p production line, and p pilot run capable of monthly p p y productionFeb 2010 of 15,000 ton iron with the grade of 60%Mar - Apr Install another six production lines and reach the capacity of 60,000-80,000 ton2010 monthlyJul-Aug Install two more production lines and reach the capacity of 100,000 ton monthly2010 to meet the demand of Chinese customers.2011 We plan to reach annual capacity of 1-1.5million ton2012 We plan to reach annual capability of 2million ton 
    • THE AFFECTED COMMUNITIESTHE AFFECTED COMMUNITIES
    • MACARTHUR PROFILE MACARTHUR PROFILE• Income class:   5th  class• T l Total population:  l i 17,608 (9,802; 50% of  17 608 (9 802 50% f population) • Total households:  3,133 • Total land area:  7,344.6627 sq. km• No. of barangays:  31 (14 affected)• Primary livelihoods Primary livelihoods agriculture:  rice agriculture: rice fisheries• Others mining  (2010) mining (2010) Source: LGPMS, 2009
    • FINANCIAL PROFILE FINANCIAL PROFILE• IRA: 32, 121,629.00 32 121 629 00• Local sourced revenue: 2,461,436.39• Other revenues: 4,553,419.55• Total LGU income: 39,136,484.94 Source: LGPMS, 2009
    • Mostly rice farmers, some have coconutsOther sources of income: driving; Land tenure: 80% are tenants; many landowners reside outside MacArthurProduce sold at farm, to the financier or in neighboring Abuyog since no market in town t
    • WATER
    • Declining rice and coconut harvests partly due to extreme weather conditions, lack of water, pestsconditions lack of water pests
    • WHAT IS AT STAKE? WHAT IS AT STAKE? LAKE BITO &  LIVELIHOODS OF  LIVELIHOODS OF TILAPIA FISHERSIrrigated RICE FIELDS I i t d RICE FIELDSand the LIVELIHOODS of 374 farmers
    • Balire South River Irrigation SystemBalire South River Irrigation System• Total rice field area  275.9731 has covered by mining firm• Average rice yield per hectare 80 cavans/ha• No. of cropping seasons per year 2• Annual production 10,132 MT• Total no. of farmers in area    374 farmers • Amount of investment P120MSource: NIA BIG Irrigation System, Macarthur, Leyte
    • OBSERVED PROBLEMS WITH MINING  OPERATIONLivelihood displacement (no more farms to farm)  Not all affected farmers are employed at NICUANot all farmers in the area agree with the miningNot all farmers in the area agree with the miningOther owners who sold their lands to NICUA are  not living in the place  t li i i th lAdjacent unsold rice areas are affected by the  mining operationWater level of Lake Bito seems to be lower:  report of fish kill
    • OBSERVATIONS WITH THE MINING  OPERATION  Operation is 22 hours; VERY NOISY; children  cannot study because of noise; have difficulty  sleeping; ground shakes like there is an  earthquakeWater source disturbance/competition during Water source disturbance/competition during operation: no water when pumps operate;  water is muddy;  even at 20 ft. no more water  water is muddy; even at 20 ft. no more water unlike before at 15 ft. can get waterWater in the ricefields do not get impounded Water in the ricefields do not get impounded anymore 
    • PROCESSES FOR OBTAINING SOCIAL  ACCEPTABILITY• No posting of notice No posting of notice  • People aware because NICUA already  operating• No assembly done in barangays (EIS show one  public consultation in the municipal gym held  bli l i i h i i l h ld on 28 May 2010)  • Only barangays covered by LIDAROIMA signed  a petition against mining
    • FARMERS PERCEIVED IMPACTS FARMERS PERCEIVED IMPACTS• Destruction of area (Kadaot; magun‐ob)• Hunger for the farmers (Gutom sa mag‐uma) H f th f (G t )• Children cannot study (Dili na maka‐eskwela)• No farm work available because no more farms  No farm work available because no more farms (Wala nay magpasuhol kay waray tuna)• If the Balire river overflows, will drown (Kon , ( magbaha ang Balire, malunod kami)• Fish kill (Ma‐poison ang isda sa Danao Lake)• Villa Imelda will transfer to Pongon (because of  ponding;  mabalhin sa Pongon)• Lower water level at Lake Bito Lower water level at Lake Bito (Mobali ang tubig tubig,   naibanan na ang tubig sa Lake Bito)
    • PROTEST OUTSIDE THE NICUA THE NICUACOMPANY SITE ON 15 FEBRUARY 20115 FEBRUARY 2010 
    • BIOPHYSICAL FINDINGSBIOPHYSICAL FINDINGS
    • Table 1. Summary of soil physical properties. Bulk Particle Sampling Depth density density (g Ksat Spot (cm) Texture (g cm-3) cm-3) Porosity (cm d-1) A 0-30 Sandy Clay 0.87 2.66 0.67 3,177.66 30 60 30-60 Loamy Sand 1.53 2.88 0.47 4,305.72 B 0-30 Sandy Clay 0.93 2.54 0.64 1,296.92 30-60 Loamy Sand 0.91 2.47 0.63 999.85 C 0-30 Sandy Clay 0.90 2.28 0.61 not determined 30-60 Loamy Sand 1.16 2.67 0.56 887.02 D 0-30 0 30 Sandy Clay S d Cl 0.88 0 88 2.36 2 36 0.63 0 63 996.26 996 26 30-60 Loamy Sand 1.43 2.92 0.51 1,472.43  Ksat values of the soil range from around 900 cm d‐1 to over 4,000 cm d‐1. These  values mean that the soil very effectively allows water to pass through. 
    • Table 2. Estimation of groundwater drawdown and volume of water  drawn into excavation (VWDE) Average Porosity* 0.54  Sample Excavation  Depth (m) Depth (m) 10.00  10 00 Average Depth to WT  (m)**  0.24  Sample Area – one  l hectare (m2) 10,000 Ground Water  Drawdown (m) 4.33  VWDE  per hectare  (m3) )  44,603 44 603*- average  porosity of the 30- 60 cm layer of the four sampling spots** - average depth to the water table at the four sampling spots at the time of sampling
    • • Mining operations with an excavation depth of Mining operations with an excavation depth of  10 to 15 m.• That a 10 m deep excavation could lead to That a 10 m‐deep excavation could lead to  drawdown from the observed WT depth of  0.24 m to as deep as 4.33 m from the surface.  0 24 m to as deep as 4 33 m from the surface• the presence of a nearby source of water, as a  hi h 44 603 3 of water could be drawn  high as 44,603 m f t ld b d into the 10 m deep excavation for every  hectare of area excavated h t f t d
    • • If there is a source of water nearby such as a  river or a lake, an actual drawdown of the WT  level may not be observed. This is because water  from a river or lake, or even from the  surrounding locations of the aquifer (including  subsurface drinking water sources) may be  drawn into the excavation; • expected in areas with very high Ksat such as the  surveyed site
    • • Continued excavation in an area with a very Continued excavation in an area with a very  conductive soil would continue to draw water  from surface water sources such as nearby a  from surface water sources such as nearby a river or lake, or from the aquifer adjacent to the  excavation. The water budget in a nearby lake  excavation The water budget in a nearby lake could be disturbed which may endanger the  year‐round water supply in a lake.  year‐round water supply in a lake
    • 2. It is likely that during times that the  excavation pumps in the mining site are  turned on water supply in water wells in  nearby home sites may be adversely affected. b h i b d l ff d3. Ponding of the deep excavations in mining sites  is almost guaranteed. This means that it would  is almost guaranteed This means that it would be very difficult to rehabilitate the site to  revert the area to its previous agriculturally‐ p g y productive state. 
    • WATER QUALITY Sampling pH Hardness DO TDS TSS Site (ppm CO3) ppm ppm ppm S1 7.3 Hard 8.4 8110 300 (163) (-) S2 7.5 Very Hard 8.3 8550 380 (204) (-) S3 8.2 (6.8)* Soft 8.4 560 20 (10) (-) S4 7.2 Soft 7.6 70 30 (11) (11) S5 7.0 Soft 8.5 50 30 (11) (11) S6 7.2 Soft 8.2 120 40 (11) (16)Source: F bS February 2010 ecological i l i l investigation team ti ti t
    • WATER QUALITY WATER QUALITY• Results obtained are inconclusive because Results obtained are inconclusive because  they reflect only one sampling incidence• pH values obtained were tolerable but Lake pH values obtained were tolerable but Lake  Bito  water was found to be rather alkaline• DO values showed well aerated water in all  l h d ll d i ll sampling sites; Sites S4‐S6 showed high  organic matter content i
    • MARINE WATERS• Biodiversity Fishes Banak Invertebrates Shells (24/m2) Bangus Kuhol−Fishes and invertebrates were observed Fishes and invertebrates were observed  Talakitok T l ki k Alimango Ali mainly.  Interview showed that the  Mangagat Lambay estuary of Balere River is a fishing  Tilapia Banagan ground for economically important  Saminsamin Balat fishes (Table 1). Gobies Sea stars−Fishes and invertebrates were not  Turnos Corals abundant.  Fishes caught were usually of  Bolinao Mayamaya small size. small size Mamsa−Empty shells of kuhol, a freshwater  Katambak univalve, were abundant which indicate  Sapsap that they were carried by the water from  Lapalapa the upland to the estuary. h l d h Bulanbulan Balo Bugsong Tambangongo/hito g g Talho/tiktiki Bisugo Pata
    • RESULTS• Biodiversity
    • SEDIMENTATION • Sedimentation−Dominant sediment is sand.−Highest deposition was at the  Highest deposition was at the mouth of the river (station 3) and  lowest at 100m upstream.  −These indicate strong water flow.  −Sand covers and smothers the  aquatic organisms.  −Gills of fishes and invertebrates  would be blocked resulting to  would be blocked resulting to suffocation and death of the  organisms.  −silt and clay mostly towards the  marine area.  −seawater was highly turbid; this  lessen the amount of light  penetration in the water column  penetration in the water column that could affect the productivity  and growth of marine plants and  corals.
    • PHYSICO‐CHEMICAL FACTORS−increasing trend of stream  flow towards the river  mouth.  −as the width decreases  towards the mouth of the  river, the water speed  increases resulting to high  sediment load at the  di t l d t th estuary. −dissolved oxygen was  highest at the marine  highest at the marine environment due to wave  action.
    • • The low abundance of aquatic fauna  could be due to the high sedimentation  could be due to the high sedimentation of the Balere estuary.  • Anthropogenic activities, such as  mining, in the upland area would likely  to exacerbate the sedimentation, and  ultimately will lead to the ecological  instability of the estuarine ecosystem.
    • ECONOMIC ASPECT ECONOMIC ASPECTTable 1.    N e t   I n c o m e   f r o m   r i c e   f a r m i n g   p e r   h e c t a r e.    Average  Net Income  Net Income Per  Yield per  Per Year (P)  Cropping (P)  hectare      (cavan)  N I C U A   r e p o r t  73  57,660  28,830  N I A  80 48,880  24,440          Note:  If we follow the rice farming period which is  3‐4  months, the farmers must have  other sources  of income as an add‐on from rice farming. of income as an add on from rice farming
    • • Hiring rate at NICUA Corporation vs Income from rice farming Hiring rate at NICUA Corporation vs Income from rice farming Table 2.  Labor employment of Nicua.    A) @ 22‐days work per month @ 22‐days work per month   Wage Rate per  Monthly  For Three  For Four  Day (P)  Income (P)  Months  Months     Labor  Labor 220 4,840  4,840 14,520 19,360  Mason‐Carpenter  250  5,500  16,500   22,000   Electrician   280 6,160  18,480 24,640   B) @ 30 days work per month    Wage Rate (P)  Monthly  For Three  For Four  Income (P)  Months  Months     Labor  220  6,600  19,800  26,400   Mason‐Carpenter  250 7,500  22,500 30,000  Electrician   280  8,400  25,200  33,600    Note:  Average Income from Rice Farming per Cropping      Nicua Report    P 28,830    NIA    P 24,440
    • Value of Rice Fields as per purchase price of NICUAValue of Rice Fields as per purchase price of NICUA TWO OPTIONS 1. Outright Sale of Land  • N Negotiated,  not below Market rates ti t d tb l M k t t 2. Buy‐back Option (1/2 of the amount is given to the  farmers, the other ½ is held in trust in the bank  farmers, the other ½ is held in trust in the bank which will serve as payment for the “buy‐back” of  the land) • Foregone income is given g gFarmers have very minimal opportunity cost of capital opportunity cost of capitalthus, the purchase price of rice lands by NICUA is low.rice lands by NICUA is low.
    • • Value of Rice Fields as per purchase price of NICUA Value of Rice Fields as per purchase price of NICUA Table 3.  P u r c h a s e   p r i c e   o f   N i c u a   p e r   h e c t a r e.      P U R C H A S E   P R I C E   O F   N I C U A     P E R   H E C T A R E  M INING  160,000  170,000  180,000   OPERATION    L A N D    R E N T  (Years)  Per Year Per Month Per Year Per Month Per Year Per Month 10  16,000  1,333.33  17,000  1,416.67  18,000  1,500 15  15 10,667 10 667 888.89 888 89 11,333 11 333 944.44 944 44 12,000 12 000 1,000 1 000 20  8,000  666.67  8,500  708.33  9,000  750  25  6,400 533.33 6,800 566.67 7,200 600      
    • FOOD SECURITY FOOD SECURITY• As a consequence of conversion there is less area for  rice production.   rice production• These areas covered by the LMP overlaps with the  service area of the Balire South River Irrigation System  under the National Irrigation Administration based at  d h N i l I i i Ad i i i b d MacArthur, Leyte.  • The NIA service area at MacArthur covers a total area  of 275.9731 hectares affecting 374 farmers, or an  average area of 0.74 ha/farmer. There are two  croppings per year (wet and dry) with an average yield  pp g p y ( y) g y per hectare of 80 cavans. Total yield for the entire area  is 22,077.848 cavans or 1,103,892.4 mt.
    • GENERAL LAYOUT BALIRE SOUTH IRS BALIRE SOUTH IRSArea Mined By NICUA = 15 - 20 hasAs of 11/5/2010
    • ISSUES• Processes to ensure community y participation were circumvented; people  were not informed were not informed• Absence of transparency and failure of   national agencies and concerned LGUs to  g perform their legally mandated functions
    • ISSUES• Conversion of rice fields without following  g approved process (NICUA argues that this is  j just temporary in nature and not  p y permanent), • Damage to the irrigation system and Damage  to the irrigation system and  ricefields of farmers • Decline in rice yields which are likely to lead Decline in rice yields which are likely to lead  to a loss of food security for municipality  and Leyte province and Leyte province
    • CONCERNS• The basic issue is really whether mining should be  allowed to continue in Leyte Island • Need to review existing policies that are  conflicting:  – mining and ecotourism – Mining and becoming the food hub of Eastern Visayas• Passage of policy on NO GO ZONES for mining• Preparation of CLUPs by LGUs must be strictly  enforced and sanctions done
    • CONCERNS• Mechanism for ensuring communities are  aware of applications, etc need to be reviewed  f li ti t dt b i d and put in place• If mining continues, communities should be  trained to monitor the mining activities• The need for the civil society groups especially  the church to engage the mining companies  from the perspective of stewardship and  sustainable development