Depletion of Natural Resources: Threats to Sustainable Development


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Depletion of Natural Resources: Threats to Sustainable Development

Plaridel Institute of Strategic Studies
Angeles University, Pampanga
Aug. 26, 2005

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  • Ring of Fire / Rim of Fire– a geological faultline encircling the Pacific that is associated with rich deposits of copper, gold and other minerals; intensed volcanic a ctivity at the margins of the tectonic palates and well-known for epithermal gold, porphyry copper-gold and volcanic-hosted massive sulfide deposits.
  • Depletion of Natural Resources: Threats to Sustainable Development

    1. 1. Depletion of Natural Resources: Threats to Sustainable Development Plaridel Institute of Strategic Studies Angeles University, Pampanga Aug. 26, 2005
    2. 2. Outline <ul><li>Philippine Natural Resources: A Broad View </li></ul><ul><li>Forests & Wildlife </li></ul><ul><li>Wetlands and Marine Eco-System </li></ul><ul><li>Protected Areas </li></ul><ul><li>Mineral Lands </li></ul><ul><li>Summary Threats / Issues </li></ul><ul><li>Some Recommendations </li></ul>
    3. 3. Philippine Natural Resources: A Broad View <ul><li>Floral Diversity: </li></ul><ul><li>13,500 species </li></ul><ul><li>5% of world’s flora </li></ul><ul><li>22.5% of Malesian flora </li></ul><ul><li>25% are endemic to the Philippines </li></ul><ul><li>5-8% are believed to be still unidentified </li></ul>
    4. 4. Philippine Natural Resources: A Broad View <ul><li>Faunal Diversity: </li></ul><ul><li>1,084 species of terrestrial vertebrates </li></ul><ul><li>20,000 species of insects, only 5 are fully inventoried </li></ul><ul><li>Endemism of invertebrates is generally poor known, between 44% and 87%. </li></ul><ul><li>86 species of birds are threatened </li></ul><ul><li>30 species of terrestrial mammals are threatened (Tamaraw and Philippine Eagle) </li></ul>
    5. 5. Philippine Natural Resources: A Broad View <ul><li>Wetlands & Marine Diversity: </li></ul><ul><li>2 nd longest coastline in Asia </li></ul><ul><li>9,875 species of flora and fauna </li></ul><ul><li>28% are economically important </li></ul><ul><li>145 threatened species, 15 ENDANGERED </li></ul><ul><li># 2 in coral reef diversity </li></ul><ul><li># 2 in seagrass richness </li></ul>
    6. 6. Philippine Natural Resources: A Broad View <ul><li>Protected Areas: </li></ul><ul><li>Composed of watershed, forest, mangroves, marine and other categories </li></ul><ul><li>1997 – 290 areas (4.06 million has.) </li></ul><ul><li>2003 – 209 areas (2.6 million has) </li></ul><ul><li>Difference of 1.46 million has. in 6 years </li></ul>
    7. 7. Philippine Biodiversity: A Broad View <ul><li>Minerals: </li></ul><ul><li>Spanish times: small-scale mining </li></ul><ul><li>American period: Small-scale but covered large areas and heavy volumes </li></ul><ul><li>1960s-1980s, RP among top ten producers of gold, nickel, copper, and chromite </li></ul><ul><li>1990s –dropped to 19 th </li></ul>
    8. 8. MINERAL RESOURCES POTENTIAL <ul><li>9 million hectares are high potential sites for copper, gold, nickel, chromite, etc. </li></ul><ul><li>Only 1.4% covered by mining permits </li></ul><ul><li>Has the potential to be among the 10 largest mining powers in the world </li></ul>Mineral Land Distribution (As % of Total Philippine Land Area) 30% or 9 Million Hectares 1.4% Covered w/permits High-Potential Low-Medium Potential 70%
    9. 9. Uses and Value of Forest Resources <ul><li>Filling sustenance needs </li></ul><ul><ul><li>Food, clothing and shelter </li></ul></ul><ul><ul><li>Medicines </li></ul></ul><ul><ul><li>Wildlife sanctuary </li></ul></ul><ul><li>Commercial production demands </li></ul><ul><ul><li>Timber </li></ul></ul><ul><ul><li>Processed forest products </li></ul></ul><ul><li>Carbon sink </li></ul>
    10. 10. State of Philippine Forests <ul><li>The Philippines needs an ideal 54% of forest cover to maintain its natural ecological processes (Sajise, 1996) </li></ul><ul><li>The Philippines has 23% of forest cover left (NAMRIA, 1988) </li></ul>
    11. 11. <ul><li>8.02% of remaining Philippine forest cover is under existing mining permits* & active timber license agreements** </li></ul><ul><li>37% will potentially be opened to mining if the mining industry is revitalized </li></ul>State of Philippine Forests * as of 29 February 2004 ** as of 30 November 2004
    12. 12. Important Biodiversity Areas <ul><li>95 important biodiversity areas </li></ul><ul><li>(81% of total 117 IBAs) </li></ul><ul><li>are found on forest habitats </li></ul>
    13. 13. <ul><li>18 IBAs are threatened by existing mining permits*, 17 by active TLAs**, and 2 by both </li></ul><ul><li>82 potentially threatened by revitalized mining industry </li></ul>Threats to IBAs * as of 29 February 2004 ** as of 30 November 2004
    14. 14. <ul><li>The Philippines has 18 identified major river basins </li></ul><ul><li>13 out of 18 major river basins have forest cover below 20% of its total area </li></ul>Major Watersheds
    15. 15. Rate of Deforestation <ul><li>Philippine Forest Cover </li></ul><ul><li>1900 70% </li></ul><ul><li>1920 60% </li></ul><ul><li>1960 40% </li></ul><ul><li>1970 34% </li></ul><ul><li>1987 23.7 </li></ul><ul><li>1998 22.2 </li></ul><ul><li>2003 23% </li></ul>
    16. 16. Causes of Deforestation <ul><li>Logging </li></ul><ul><li>Upland Migration </li></ul><ul><li>Agricultural Expansion </li></ul>
    17. 17. Fisheries <ul><li>Significant contributor to Philippine economy (5% of GNP) </li></ul><ul><li>Provides 2/3 of national protein consumption </li></ul><ul><li>Employs about 1 million fisherfolk </li></ul><ul><li>12% of the population depend on fisheries-related activities </li></ul><ul><li>Steady dollar earner (+ value net export) </li></ul>
    18. 18. Fisheries Employment, 1990
    19. 19. 1948-1994 Data reveal… <ul><li>Catch per unit effort (CPUE) has steadily fallen </li></ul><ul><li>By 1984, it was only a third of 1965 figure </li></ul><ul><li>“ more effort has been dedicated to catching fish, but the yield per unit has declined” </li></ul><ul><li>(Israel & Banzon, 2002) </li></ul>
    20. 20. Philippine Fisheries <ul><li>The marine fisheries sectors is already over-fished </li></ul><ul><li>Models of efficiency and sustainability have established that “peaks” were reached between early 80s and early 90s </li></ul><ul><li>Unemployment is a likely serious side effect (466,000) </li></ul><ul><li>(Israel & Banzon, 2002) </li></ul>
    21. 21. Coastal Resources <ul><li>Between 1976-1981, </li></ul><ul><li>Philippine Coral Reefs: </li></ul><ul><li>32 % POOR </li></ul><ul><li>38% Fair </li></ul><ul><li>24% Good </li></ul><ul><li>6% Excellent </li></ul><ul><li>(UP-MSI, OneOcean.Org) </li></ul>
    22. 22. Coastal Resources <ul><li>EarthWatch, 1998 </li></ul><ul><li>30% of Philippine Reefs are DEAD </li></ul><ul><li>39% are dying </li></ul>
    23. 23. Philippine Coastal Resources <ul><li>4.3% coral reefs are in GOOD condition </li></ul><ul><li>95.7% are in a VERY BAD STATE </li></ul><ul><li>( Phil Dustan, College of Charleston </li></ul><ul><li>Using LandSat 7) </li></ul>9th International Coral Reef Symposium (Bali Indonesia, 2000)
    24. 24. Protected Areas <ul><li>Recognizes the importance of ecological biodiversity as an element of sustainable development </li></ul><ul><li>Comprises of forests, tourist zones, marine reserves, other landscapes/ seascapes </li></ul>
    25. 25. Uses & Values of Protected Areas <ul><li>Sustenance of local ecology and economy </li></ul><ul><li>Wildlife sanctuary </li></ul><ul><li>Tourism </li></ul>Ancestral Domain
    26. 26. Threats to Protected Areas <ul><li>Increasing Human Population Demands </li></ul><ul><li>Changes in Land Use Preference </li></ul><ul><li>Commercial Tourism </li></ul>
    27. 27. Philippine Mining Industry – At a GLANCE <ul><li>Gross Production Value : US$ 764 m </li></ul><ul><li>GDP Contribution : 1.62% </li></ul><ul><li>Value Added Contribution: US$ 327 m </li></ul><ul><li>Value of Mineral Exports : US$ 638 m </li></ul><ul><li>Exports Contribution : 1.8% </li></ul><ul><li>Direct Employment : 104,000 </li></ul><ul><li>Wages & Benefits : US$ 91 m </li></ul><ul><li>Taxes & Fees : US$ 38 m </li></ul><ul><li>Mineral Resources : Nickel, Cobalt, Silver, Gold, Copper </li></ul><ul><li>Multiplier Effect : For each mining job, 4 to 10 additional jobs upstream &/or downstream created </li></ul><ul><li>Source: Chamber of Mines of the Phils. </li></ul>
    28. 28. RP’s COMPETITIVE ADVANTAGE Natural Mining Endowments <ul><li>Located in the “Ring of Fire” </li></ul><ul><li>5 th most mineralized country in the world </li></ul><ul><ul><li>2 nd in Gold </li></ul></ul><ul><ul><li>4 th in Copper </li></ul></ul><ul><ul><li>5 th in Nickel </li></ul></ul><ul><ul><li>6 th in Chromite </li></ul></ul><ul><li>Established reserves of 13 known metallic & 29 non-metallic minerals (source: Mines & Geosciences Bureau) </li></ul><ul><li>RP has 9 million hectares of mineralized land </li></ul><ul><ul><li>Only 420,000 hectares – with mining permits </li></ul></ul><ul><ul><li>THUS, 8.6 million hectares – still waiting to be tapped! </li></ul></ul>
    29. 29. RP’s COMPETITIVE ADVANTAGE Incentives to Mining Projects <ul><li>4 to 8 years Income Tax Holidays </li></ul><ul><li>Special 5% tax rate after the lapse of ITH (for ecozone locators) </li></ul><ul><li>Tax & duty-free exemption of imported capital equipment </li></ul><ul><li>Unrestricted use of consigned equipment </li></ul><ul><li>Additional deduction for labor expense of 50% </li></ul><ul><li>Additional deduction for training expense of 50% </li></ul><ul><li>Exemption on wharfage dues </li></ul><ul><li>Employment of foreign nationals </li></ul><ul><li>VAT exemption (for ecozone locators) </li></ul>
    30. 30. RP’s COMPETITIVE ADVANTAGE Government Support & Initiatives <ul><li>Supreme Court ruling allowing 100% foreign ownership of mining companies </li></ul><ul><li>Policy-shift from “tolerance to promotion” of mining operations </li></ul><ul><li>Establishment of Mining Investment Assistance Center (MIAC) </li></ul><ul><li>Implementation of Mineral Action Plan (MAP) </li></ul><ul><li>Streamlining of procedures for issuance of mining permits (e.g. MAP – from 3 years to 7 months processing) </li></ul>
    31. 31. ECONOMIC CONTRIBUTIONS OF THE MINERALS SECTOR (FY 2003) P 2.1 Billion (CY 2002) Taxes and Fees Estimate For each mining job, 4 to 10 allied jobs created upstream and downstream Multiplier Effect P 4 to P5 Billion Wages and Benefits 104,000 Employment P 367 Million (CY2002) Paid-up Investments US$ 638 Million or 1.8% of total Phil. Exports Exports P 18.0 Billion or 1.6% of Phil. GDP or 1.52% of the Phil. GNP (CY 2003) Value Added Contribution P 41.5 Billion or 19% increase from CY 2002 Production Value
    32. 32. CONCRETE IMPACTS OF CORPORATE MINING IN THE PHILIPPINES Outright violation of ancestral lands rights, socio-political systems and self determination of indigenous peoples! Violation of the PFIC: subversion of consent, manipulated consultations, one-sided information, empty promises *** IPRA useless to defend IP rights! Some NCIP officials become negotiators of companies
    33. 33. CONCRETE IMPACTS OF CORPORATE MINING IN THE PHILIPPINES Pollution and destruction of water bodies: Agno river, Abra river, Mogpog river and Boac rivers, others
    34. 34. CONCRETE IMPACTS OF CORPORATE MINING IN THE PHILIPPINES <ul><ul><ul><ul><ul><li>Destruction of agricultural lands due to siltation and water pollution--- hundreds of thousands of peasants lossing their livelihoods </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>MINING THREAT TO FOOD SECURITY! </li></ul></ul></ul></ul></ul>
    35. 35. CONCRETE IMPACTS OF CORPORATE MINING IN THE PHILIPPINES <ul><li>Systematic violation of the rights of mine workers: low wages, union-busting, denial of benefits, high risk working conditions, poor safety standards and facilities </li></ul>
    36. 36. CONCRETE IMPACTS OF CORPORATE MINING IN THE PHILIPPINES <ul><li>Health problems due to </li></ul><ul><li>Water and air pollution </li></ul><ul><li>Respiratory diseases </li></ul><ul><li>Skin problems </li></ul><ul><li>Reproductive health of women </li></ul><ul><li>others </li></ul>
    37. 37. CONCRETE IMPACTS OF CORPORATE MINING IN THE PHILIPPINES Destruction of land and creation of massive mine toxic waste: 6-7 tons of toxic waste per ounce of gold
    39. 39. CONCRETE IMPACTS OF CORPORATE MINING IN THE PHILIPPINES MILITARIZATION OF MINING AREAS RESULTING TO MASSIVE HUMAN RIGHTS VIOLATIONS OF PROTESTERS AND AFFECTED COMMUNITIES: <ul><li>intimidation and harassment, arrest and detention, charging of fabricated criminal offenses, killings and others </li></ul><ul><li>use of divide and rule tactics thru formation of paramilitary forces </li></ul>
    40. 40. Sustainable Mining? <ul><li>Sustainable Mining myths… </li></ul><ul><li>It has a small footprint </li></ul><ul><li>Communities want mining </li></ul><ul><li>The government will protect </li></ul><ul><li>Enormous economic benefits </li></ul><ul><li>Environmental Integrity </li></ul>
    41. 41. Why is sustainable mining a myth? <ul><li>Mining has a small footprint? </li></ul><ul><ul><li>No, its not just a small hole in the ground. </li></ul></ul><ul><ul><li>Mills, processing plants, tailings dams, wastes It’s a major user of water </li></ul></ul><ul><li>Communities want mining? </li></ul><ul><ul><li>Disinformation </li></ul></ul><ul><ul><li>Division of communities </li></ul></ul><ul><ul><li>Harassment and threat </li></ul></ul><ul><ul><li>Questionable consultations </li></ul></ul>
    42. 42. <ul><li>The government will protect us and the environment? </li></ul><ul><ul><li>Corruption </li></ul></ul><ul><ul><li>Weak enforcement </li></ul></ul><ul><ul><li>DENR is SCHIZOPHRENIC </li></ul></ul><ul><li>Economic benefits are enormous? </li></ul><ul><ul><li>Unverified financial data </li></ul></ul><ul><ul><li>Mining dependent countries are lagging behind </li></ul></ul><ul><ul><li>Employment is limited casual, unskilled, contractual </li></ul></ul><ul><ul><li>Tax holidays, 100% repatriation, 100% foreign ownership </li></ul></ul>Why is sustainable mining a myth?
    43. 43. <ul><li>Environmental Integrity? </li></ul><ul><ul><li>53% of ancestral domains are threatened </li></ul></ul><ul><ul><li>60% of protected areas are threatened </li></ul></ul><ul><ul><li>Agricultural lands are threatened </li></ul></ul><ul><ul><li>Coastal areas are threatened </li></ul></ul>Why is sustainable mining a myth?
    44. 44. Responsible Mining <ul><li>Is there such a thing? </li></ul><ul><li>Self-regulation, not government supervision </li></ul><ul><li>The “best practice” is fragmented, not yet completed in one site </li></ul><ul><li>We do not a have a plan to develop the downstream industry! </li></ul>
    45. 45. The WB EIR <ul><li>&quot;Not only have the oil, gas and mining industries not helped the poorest people in the developing countries, they have made them worse off . Scores of recent academic studies and many of the banks own studies confirmed our findings that countries which rely primarily on extractive industries tend to have a higher level of poverty, child morbidity, civil war, corruption and totalitarianism than those with more diversified economies&quot;. </li></ul>
    46. 46. The TRUTHS… <ul><li>One gold wedding ring leaves between 6 to 20 tonnes of waste rock. </li></ul><ul><li>A citrus farm in Nueva Vizcaya earns a farmer 1.2 million pesos per hectare </li></ul><ul><li>Timuay Boy Anoy (a Subanon) from Zamboanga cannot enter his ancestral land and their sacred grounds. </li></ul><ul><li>40,000 hectares from the Samar Island National Park will be extracted. </li></ul>
    47. 47. The CARAGA region : a review of existing resource management regimes
    48. 48. CARAGA <ul><li>1997 in the Caraga region, the average income of indigenous peoples was 42% lower than the national average </li></ul>
    49. 49. CARAGA <ul><li>There are seven (7) Watersheds/Forest reserves; </li></ul><ul><li>10 sites are under the initial components of the NIPAS act; </li></ul><ul><li>1 Site has been officially legislated as a National Park </li></ul>
    50. 50. TLAs w/in the CADC areas in CARAGA <ul><li>Three (3) active Timber Lease Agreements are currently operating w/in five (6) NMCRMP-CADCs; </li></ul><ul><li>The recently awarded CADT 002 has a 100% overlap with an existing TLA; </li></ul><ul><li>Areas of the TLAs range from 5,000-100,00+ hectares; </li></ul>
    51. 51. IFMAs and CADCs in CARAGA <ul><li>Seven (7) active IFMAs overlap with four (4) CARAGA-CADCs; </li></ul><ul><li>Areas covered range from 5,000-50,00 hec. </li></ul><ul><li>1 IFMA covers 100% of a CADC; </li></ul><ul><li>Corporate IFMA holders include local and multi-national groups. </li></ul>
    52. 52. Mining Activities/Applications <ul><li>There are forty two (42) pending Mining applications that overlap or are in the same area with eight (8) CADCs in CARAGA; </li></ul><ul><li>Two (2) MPSAs have been approved; </li></ul><ul><li>One (1) EPA has also been approved. </li></ul>
    53. 53. Issues/problems <ul><li>Overlapping coverages of LTIs; </li></ul><ul><li>There is no clear delineation of resource management priorities; </li></ul><ul><li>Conflicts in jurisdiction, management prerogative/structure and objectives; </li></ul><ul><li>Most existing multi-sectoral bodies for are underutilized, lack credibility or non-functioning. </li></ul>
    54. 54. Issues/problems <ul><li>Lack of an institutional arbiter/facilitator that can be viewed as impartial, objective and acceptable to all stakeholders ; </li></ul><ul><li>Lack of a common framework and venue for dialogue to resolve conflicts; </li></ul><ul><li>Lack of transparency in information regarding resources. (kanya-kanya) </li></ul>
    55. 55. Results on the ground <ul><li>Very high propensity for violence; </li></ul><ul><li>Polarization of stakeholders and marginalization of ICCs/poor communities; (wala nang nag-uusap) </li></ul><ul><li>Difficulty in implementing developmental activities/projects due to jurisdictional problems (NMCRMP of IFAD has yet to take off) </li></ul><ul><li>Demoralization and loss of faith w/ Government; </li></ul>
    56. 56. Summary Threats & Issues <ul><li>Habitat Destruction </li></ul><ul><li>Overexploitation </li></ul><ul><li>Pollution </li></ul>
    57. 57. Millennium Development Goals <ul><li>Goal 7: Environmental Sustainability </li></ul><ul><li>The Philippine SusWatch Network (2005) concluded that the growth-oriented approach of the present administration is unsustainable and aggravates environmental destruction and poverty because: </li></ul><ul><li>it supports an enterprise system that appropriates community resources which deprives local communities of the benefits of their resources. </li></ul><ul><li>its continuing emphasis on globalization pushes the local communities to shift the use of their resources from domestic consumption and development to meeting quotas set by commitments to international trade. </li></ul>
    58. 58. Some Recommendations <ul><li>Reject the growth-led model of development </li></ul><ul><li>Adopt the sustainable development framework </li></ul><ul><li>Comply with international commitments </li></ul><ul><li>Alternative Lifestyle: Low consumption </li></ul>
    59. 59. <ul><li>Thank You Very Much! </li></ul>
    60. 60. Depletion of Natural Resources: Threats to Sustainable Development Plaridel Institute of Strategic Studies Angeles University, Pampanga Aug. 26, 2005