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Mining in the Municipality of Tampakan:Risks and Alternatives
 

Mining in the Municipality of Tampakan:Risks and Alternatives

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Mining in the Municipality of Tampakan:Risks and Alternatives...

Mining in the Municipality of Tampakan:Risks and Alternatives



Justice and Peace Desk
Social Action Center,

Diocese of Marbel



With Arturo Boquiren

Assistant Professor, Economics
University of the Philippines-Baguio



Sr. Pat Babiera

Coordinator, Justice and Peace Desk



Fr. Romeo Catedral
Director

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    Mining in the Municipality of Tampakan:Risks and Alternatives Mining in the Municipality of Tampakan:Risks and Alternatives Presentation Transcript

    • Mining in theMunicipality of Tampakan: risks and alternatives Justice and Peace Desk Social Action Center, Diocese of Marbel With Arturo Boquiren Assistant Professor, Economics University of the Philippines-Baguio Sr. Pat Babiera Fr. Romeo Catedral Coordinator, Justice and Peace Desk Director 1
    • Key results: Benefits from mining 2
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    • Opportunity cost analysis of benefit• Opportunity costs are benefits foregone or deprived from a community (economic agent) given alternative or better uses for a resource• One possible best use for the lands covered by mining is through a combination of agriculture, agro-forestry, and forest development• Comparative analysis was used to determine what is superior: use the land for mining or use it for a combination of agriculture, agro-forestry, and forest development. This is done through the use of a proxy 7
    • Basis for opportunity cost analysis• Mining in Tampakan will initially involve at least 81,000 hectares• Although there is provision in the mining law that lands for exploration will be limited to only 5,000 by the 8 th year of exploration, Tampakan ore targeted by Sagitarius mines is scattered in around 144 hectares of land• Other than 144 hectares of land, mine operators will need a mill, tailing ponds, and various types of land for operation 8
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    • SMI data implies that the ore is locatedin an area of around 144 hectares 12
    • Implication• Net economic benefit from Tampakan mining is zero• If potential environmental damage is considered net benefit from mining is a large negative number 13
    • Risks of miningin municipality of Tampakan 14
    • Comparison: Philex and Tampakan• Philex milled 311 million metric tons of ore between 1955 to 2006• Today, Philex will mill 54 million metric tons in six years or around 9 million metric tons per annum• Tampakan mining will mill 2.2 billion metric tons in 25 years implying 88 million metric tons per annum or more than 10 times of Philex mining from 1955 to 2008• Thus, Tampakan mining is unprecedented and more than 10 times the environmental impact and risks of Philex mining 15
    • How does an ISO-certified miningcompany operate 16
    • Like Philex, Tampakan mining willrequire not only the area for oremining but also land for the following• Space for the mined ore• Milling• Tailing ponds• Company facilities• Public relations facilities• Dams (tailing ponds must be linked to rivers that have dams preferably for environmental damage controls) 17
    • Thus, Tampakan mining will require• Ten times the tailing ponds required in Philex mining• Dams or dam services more than that provided today by the San Roque Dam• Mining in Benguet or environmental damage from Benguet mining are addressed or subsidized by government through the San Roque mega dam that serve as a catch dam for tailing ponds. Mega dams have risks• In addition, the tailing ponds themselves have risks. For instance, the 1992 breakdown of a Philex tailing pond in Benguet released 80 million metric tons of mine waste to the environment• Tampakan mining have the potential create unprecedented social unrests in Tampakan and South Cotabato as farms are deprived of water and exposed to mine tailings or as dams as created similar to the San Roque dam or as tailing ponds similar to those in Benguet are created 18
    • How do tailing ponds look? 19
    • Establishment of Philex-type tailing pondstimes 10 with Tampakan Mining(source: Philex PowerPoint Slides) 20
    • From the sky, this how tailing ponds look like (vicinity ofPhilex mining and tailing ponds are in the northeast ofthe picture): 21
    • Possible route of wastes 1: Malalag Bayand Davao Gulf 22
    • Possible route of wastes 2: Buluan lake 23
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    • Implications:• Tampakan mining threatens the tuna industry of Gensan that generates around P15 billion annually and the multi-million fish industries of Lake Buluan and Malalag Bay and Davao Gulf• Thousands of hectares of farmlands are threatened with mine wastes from 88 million metric tons of ore annually• Farms will be deprived of water that will be used by mining companies and as water tables are disturbed or rerouted• Given that net benefits from mining is already zero as alternatives exist that can provide incomes comparable to Tampakan mining, the above implies that the net benefits from mining is a large negative number 25
    • Our limitation: the following is still unanalyzed 27