State of Mining: Liberalization under the Aquino Administration and the People's Movement.

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State of Mining: Liberalization under the Aquino Administration and the People's Movement.

State of Mining: Liberalization under the Aquino Administration and the People's Movement.

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  • 1. State of Mining:Liberalization under the Aquino Administration and the People’s  p Movement Kalikasan PNE Defend Patrimony! Alliance Defend Patrimony! Alliance
  • 2. Philippine Mining Industry• Mainly extractive  Mainly extractive• Export‐oriented• Dominated by TNCs, local elite • Dependent on foreign capital and  Dependent on foreign capital and technologies
  • 3. Philippine Mining IndustryPhilippine Mining Industry Exploration  Mine Development Extraction Initial  Processing Refining & Smelting Fabricating
  • 4. Mining Act of 1995• Investment Guarantees – Repatriation of Capital – Freedom from Expropriation – Remittance from earnings and  interest on foreign loans – Freedom from requisition of  properties – Confidentiality of Information• Tax Holiday during recovery of  pre‐operating expenses for a  maximum of 8 years from  commercial production (FTAA)• Income Tax carry forward of  losses• Water rights, timber rights,  easement rights
  • 5. Philippine Mining StatisticsPhilippine Mining Statistics
  • 6. National Policy Agenda on Revitalizing Mining in the Revitalizing Mining in thePhilippines (EO No. 270‐2004) • 2003, 23 then 63 (2007)  Priority Mining Projects under  GMA• Overall value of production in  2006 reached P68.4 billion  compared to P35.2 billion in  2002• 8 tailings dam failures since 8 tailings dam failures since   2001• 4 tailings dam failures in Rapu‐ rapu, Albay. Alb
  • 7. Employment and TaxesEmployment and Taxes
  • 8. Mining AgreementsMining Agreements 2005 2006 2007 2008 2009+ 2009
  • 9. Mining Concession Area  Mining Concession Area 2007 2008 2009 July 2010EP 89,828.76  NA NA 345,974MPSA 373, 201  NA NA 587,340FTAA 41,199 , 87,249 , 90,341 , 109,217 ,TOTAL 514,948 600,000 + 782, 187 1,042,531
  • 10. New Trends in the Mining Industry  (2009‐2010) ( )• Renewed mining offensive • Expansion of magnetite  – Record breaking gold prices  mining with small scale  $1,300/oz  (AO 09/28/10) mining permit – Rising industrial metal prices  • Proliferation of coal mining Proliferation of coal mining  or economic security concern contracts – New DENR Secretary and  President Aquino? – Energy supply for local power  p plants• Entry of big local businesses – Export – MPC/Pangilinan • Continuing Militarization  – San Miguel/Cojuangco and Human Rights  and Human Rights – Lucio Tan, Violations in mining‐• Use of greenwashing,  affected areas corporate propaganda p p p g
  • 11. Killings of Environmental ActivistsKillings of Environmental Activists
  • 12. New Administration, Same Old Mining Policies ld l • Appointed Ramon Paje as DENR • Issued logging Issued logging  Secretary moratorium • Increased target mining output from  2009 to 30%  for 2010 (Arroyo was • Cancel 600 mining  g 10‐20% only) 10 20% only) applications • Interfered in the South Cotabato  open‐pit mining ban to pursue a  “win‐win” solution for Xstrata and  LGU • Did not act on Mt. Diwalwal mining  privatization • Did not reverse midnight mining  deals like FTAA in  Palawan and MPSA  in Camarines Sur (21 MPSA, 2FTAA,  13 EP) 13 EP)
  • 13. People s Struggle People’s Struggle• Increasing resistance at Increasing resistance at  • Local government Local government  the grassroot level units imposing mining  – Southern Tagalog  moratorium (Romblon, Mindoro,  • Continuing Legislative  Batangas, Palawan) and Legal Actions – Eastern Visayas Eastern Visayas – writ of Kalikasan – Southern Mindanao  – People’s Mining Bill Region – CARAGA Region • Broadening of alliances – SoCSKSarGen Region • International support
  • 14. People s StrugglePeople’s Struggle
  • 15. Our Call Our Call1. Mining moratorium on Large scale Mining 1 Mining moratorium on Large‐scale Mining Projects and Operation2. Repeal the Mining Act of 19952 Repeal the Mining Act of 19953. Pass the People’s Mining Bill Defend our Patrimony, Protect our Rights! y, g