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Taming the Resource Curse Part 1

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Taming the Resource Curse: Understanding the Philippine Framework for Extraction; A presentation by Atty. Grizelda Mayo-Anda for the Seminar-Workshop and Media Fellowship on Covering the Extractive Industries: Digging Out Stories that Matter

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Taming the Resource Curse Part 1

  1. 1. Taming the Resource Curse: Understanding the Philippine Framework for Extraction Atty. Grizelda “Gerthie” Mayo-Anda Executive Director Environmental Legal Assistance Center,Inc. (ELAC)
  2. 2. SUSTAINABLE DEVELOPMENT FRAMEWORK Mining for Development Framework
  3. 3. Sustainable development is defined as “development that meets the needs of the present without compromising the ability of the future generations to meet their needs” (United Nations, 1987) SUSTAINABLE DEVELOPMENT
  4. 4. Mainstream Paradigm  Low Investment in Mining  Generate employment  Need for competitive rates  Generate economic activity
  5. 5. DOESTHE MAINSTREAM PARADIGM WORK FOR DEVELOPING COUNTRIES?
  6. 6. Protect Respect Remedy
  7. 7. State ownership of natural resources  All lands of the public domain, minerals, coal and other natural resources are owned by the State (Regalian Doctrine; Art 12, Sec. 2, Constitution).  Not limited to land but extends to “all natural wealth found in the bowels of the earth” (Republic vs. CA, 160 SCRA 228)  State’s “full control and supervision” proceeds from the recognition of the importance of the country’s natural resources for national economic development as well as security and national defense (Miners vs Factoran, 240 SCRA 100)
  8. 8. Philippine Mining Act (RA 7942)  Reiterates the Constitutional policies  Because the State does not always have the capacity to develop and utilize the minerals, it may undertake exploration, development, utilization, it may undertake these mineral development activities by entering into MPSAs, FTAAs and JointVenture Agreements  DENR is mandated to administer and regulate the conservation, management, development and proper use of the State’s mineral resources.
  9. 9. Laws and Policies on Mining RepublicAct No. 7942 – Philippine MiningAct of 1995 and its IRR RA 7076 – People’s Small-Scale MiningAct of 1991 and its IRR Executive Order No. 79 (and IRR) – Mining Policy of Aquino Administration
  10. 10. Mineral Resources: RA 7942  Philippine Mining Act of 1995 (RA 7942) is the principal law regulating mining and the mining industry.  This law shall govern the exploration, development, utilization and processing of all mineral resources.
  11. 11. Mineral Resources: RA 7942  Implementing Mechanism: DENR Mines and Geosciences Bureau (MGB); Provincial Mining Regulatory Board (PMRB) for small scale mining and quarrying
  12. 12. What is Mining?  Mining – the process of extracting, removing and disposing mineral resources found on or underneath the surface of private or public land or the seabed  Mining operation - means mining activities involving exploration, feasibility, development, utilization,and processing
  13. 13. What are minerals?What are the types of mineral resources? Minerals: all resources that come from the soil Types: a) metallic minerals, b) non-metallic minerals and c) mineral fuels. (a) Metallic minerals: gold, copper, nickel, mercury (b) Non-metallic minerals: limestone, sand (c) Fossil fuels: coal, petroleum, natural gas
  14. 14. How is Mining Done?What are the stages in a mining operation? Stages in a Mining Operation: 1. Exploration 2. Development 3. Utilization 4. Mineral Processing 5. Decommissioning
  15. 15. Where is Mining allowed? What are the permits and licenses issued?  Mining shall be undertaken in all mineral resources in public or private lands, including timber or forest lands as defined in existing laws. , shall be open to mineral agreements or financial or technical assistance agreement applications.  Permits/Licenses: (a) Exploration Permit; (b) Mineral Production Sharing Agreement (MPSA); (c) Financial orTechnical Assistance Agreement (FTAA)
  16. 16. Where is Mining Prohibited?  Areas covered by valid mining rights and applications  Old growth or virgin forests proclaimed watershed forest reserves,wilderness areas, mangrove forests, mossy forests, national parks, provincial/municipal forests, parks, greenbelts, game refuge and bird sanctuaries as defined by law in areas expressly prohibited under the National Integrated Protected Areas System (NIPAS) under Republic Act No. 7586, Department Administrative Order No. 25 , series of 1992 and other laws.
  17. 17. Areas closed to Mining  Areas identified by DENR Secretary after a thorough study, such as “critical watersheds”  Areas identified as core zones and restricted use zones under the Environmentally CriticalAreas Network (ECAN) of the Strategic Environmental Plan (SEP) for Palawan  Areas expressly prohibited by law
  18. 18. Areas where Consent is required for Mining Activities  In military and other government reservations,  Near or under public or private buildings, cemeteries, archeological and historic sites, bridges, highways, waterways, railroads, reservoirs,dams or other infrastructure projects ,public or private works including plantations or valuable crops  Ancestral domains/territories of indigenous peoples/communities
  19. 19. What processes does a mining operation undergo? 1.Exploration – looking into the availability of minerals and the commercial viability and feasibility of the mining operation.
  20. 20. What processes does a mining operation undergo? 2.Development – all preparatory work related to mining, such as construction and infrastructure- realted work.
  21. 21. What processes does a mining operation undergo? 3.Utilization – actual gathering of minerals. Mining Operation ng Narra Nickel Corporation
  22. 22. Mining Operation of Platinum Group of Metals, Inc. (PGMC)
  23. 23. Gotoc Limestone Quarry Site of Rio Tuba Nickel Mining Corporation (RTNMC) for its Hydrometallurgical Processing Plant (HPP) operations Before Now
  24. 24. What processes does a mining operation undergo? 4. Mineral processing – conversion of raw mineral into finished product. 5. Decommissioning and final mine rehabilitation – all work related to completion of mining operation and restoration/rehabilitation.
  25. 25. The MiningAct (RA 7942) and Mining Policy Framework  Allows 100% foreign ownership participation in mining exploration and financial technical assistance agreements (FTAAs)
  26. 26. Local Autonomy  State shall ensure the autonomy of local governments (Article 2, Sect 25, Consti)  Local governments are entitled to an equitable share in the proceeds of the utilization
  27. 27. ROLE OF LGUS  Implementation of small-scale mining act and quarrying requirements  Monitoring of mining and quarrying  Participating in multisectoral monitoring teams (MMTs)
  28. 28. LGU Initiatives  Passage of ordinances providing for moratorium on mining and quarrying activities  Seek assistance from scientists and technical experts to conduct a total economic valuation or studies to assess environmental impacts
  29. 29. Small Scale Mining
  30. 30. Local Legislative Initiatives  Mining Moratorium Ordinances (Capiz, Mindoro, Sibuyan in Romblon, Eastern Samar, Marinduque)  Environmental Codes  Establishment of local protected areas (watersheds, marine reserves and sanctuaries)  Filing of Environmental Cases (using the new Supreme Court Rules on the Prosecution of Environmental Cases)  Advocacy for a new alternative mining law
  31. 31. Indigenous peoples’ rights  The State recognizes and promotes the the rights of indigenous cultural communities within the framewrok of national unity and development.  IPRA (RA 8371) declares the promotion of IP/ICC rights, including those over their ancestral domain, a policy of the statekkkkkk
  32. 32. Environmental Policies  (note: first national policies directed at mining focused on the development of mineral resources and were devoid of any reference to environmental protection)  Right to a balanced and healthful ecology under the Constitution (Art 2, Sec 16)  Phil Environmental Policy (PEP,1977)  Phil Environmental Impact Statement (EIS) System (PD 1586)  International Environmental Laws and Philippine treaty obligations (1992 Rio Declaration,UNFCCC, CBD, UN Convention on the Rights of Indigenous Peoples,Other Human Rights Instruments)
  33. 33. Local government empowerment • LGUs get 40% of taxes, fees and royalties collected by national government • Part of multi-partite monitoring team and mind rehab fund committee Respect for indigenous cultural communities • Free Prior and Informed Consent (FPIC) Equitable distribution of gains of natural wealth •Government share in MPSAs is amount equal to excise tax collected •Government share in FTAAs includes corporate income tax, excise tax, special allowance, withholding tax due arising from dividend or interest payments to foreign nationals, duties and fees, etc. Social and Environment safety nets under the Mining Act
  34. 34. Social and Environment safety nets under the Mining Act Sustainability and environmental protection •Environmental Work Program – at least 10% of exploration costs •10% of estimated project development cost devoted to environment-related infrastructure •Mine Rehabilitation Fund – about 3-5% of annual direct mining/milling costs or Php 5 million, whichever is lower, plus P50,000 for monitoring trust fund •Environmental Trust Fund - Php 50,000 is replenished and is to be used to compensate for damages apart from those arising from mine waste and railings
  35. 35. Social and Environment safety nets • MineWasteTailing and Reserve Fund – Php0.05 for every ton of mine waste, Php 0.10 for mine tailings; used to compensate for damages resulting from these • Polluter’s tax – Php 50 for every ton of waste disposed in unauthorized areas • Final Mine Rehabilitation/Decommissioning fund – variable cost including cost of 10-year monitoring maintenance and monitoring period
  36. 36. The Mining Act and Mining Policy Framework The Mining Act’s constitutionality was questioned in a suit filed by the La Bugal-B’laan Tribal Association in February 1997. The suit was against Australian- owned Western Mining Corp, which entered into an FTAA with Philippine Government. In January 2004, the Supreme Court ruled that the law violated constitutional prohibition against foreign ownership of natural resources but later reversed itself in Dec. 2014, saying that it was unwise “to strangulate growth for parochial and narrow interests.”
  37. 37. La Bugal, et al. vs. Ramos, et al.  In a dissenting opinion Justice Carpio said the law negates the State’s ownership of mineral resources as stated in the 1987 Constitution. The share of government in terms of taxes, fees etc. are “not contractual payments to the State as owner of the mineral resources but are mandatory exactions based on the taxing power of government”.
  38. 38. Government Policy vis-a-vis Constitution  Mining as an industry to achieve Sustainable Development (Mineral Action Plan)  Article 12, Section 2, Paragraph 4 of the Constitution --- “The President may enter into agreements xxx utilization of minerals, petroleum xxx based on real contributions to the economic growth and general welfare of the country.”
  39. 39. Policy Issues Mining policy is structured to fulfill the foreign market, catering to the need of the global extractive industry players; Export-oriented and Dependent on foreign capital Government prioritizes the revitalization of the mining industry, as expressed in the Mineral Action Plan (EO 270 and 270-A)
  40. 40. Policy Issue Overgenerous fiscal incentives and other benefits to mining corporations in the use of our mineral and other resources
  41. 41. Mining revitalization: Government is selling our national patrimony  Mining Incentives under Mining Act of 1995  Incentives of the Omnibus Investment Code of 1987  Investment Guarantees  Repatriation of Capital  Freedom from Expropriation  Remittance from earnings and interest on foreign loans  Freedom from requisition of properties  Confidentiality of Information
  42. 42. Mining revitalization: Government is selling our national patrimony  Mining Incentives under 1987 Omnibus Investment Code  Fiscal incentives: tax exemptions, tax credit on raw materials and supplies, additional deductions from taxable income  Non-fiscal incentives: employment of foreign nationals, simplified import procedures, 10-year imports of consigned equipment
  43. 43. Incentives under Philippine Mining Act  Tax Holiday during recovery of pre- operating expenses for a maximum of 5 years from commercial production (FTAA)  Income Tax carry forward of losses  Income Tax accelerated depreciation of fixed assets  Exemption from payment of real property taxes on pollution control devices
  44. 44. More benefits to mining corporations in the use of our natural resources (i) preference of “mining rights” over “surface rights” (ii) provision of “income tax holiday” under the Omnibus Investment Code or EO 226 and other “tax incentives” under the Special Economic Zone Act or RA 7916 (iii) Provision of ancillary rights like “timber rights, water rights, easement rights”
  45. 45. Not a Single Centavo from Mining Companies “xxx the 1987 Constitution mandates the State to exploit our mineral resources through direct undertaking, joint venture, or co-production arrangements. The purpose is for the State, as owner of the mineral resources, to receive its fair share in the profits from the exploitation of our mineral resources. Sadly, for the last 20 years the State has not received a single centavo from the profits of mining companies.” Supreme Court Justice Antonio Carpio on Closing the Gaps between Law and Justice, Regional Convention of Mindanao lawyers on November 30, 2007, Davao City
  46. 46. Policy Issues  Mineral Exploration is exempted from the EIA requirements under PD 1586  Allowing “open pit mining” (cheap, fast and easy to do but destructive to the environment)
  47. 47. Legal Issues  Unclear rules and regulations on the implementation of the 1% royalty share for the affected Indigenous Peoples/Communities  Non-compliance with environmental laws, safety standards and permit requirements  Institutional: Weak regulatory mechanisms; weak Implementation of existing laws
  48. 48. Consent and Acceptability Issues Effect of Moratorium Ordinances of LGUs Effect of Free, Prior and Informed Consent (FPIC) under the Indigenous Peoples’ Rights Act (IPRA, RA 8371) Social Acceptability processes
  49. 49. Weak Implementation  Mining activities have been allowed in watersheds, protected areas and core zones ◦ Violation of RA 7611 or Strategic Environmental Plan for Palawan (SEP), which provides that all natural forests (old-growth or residual forests) are areas of maximum protection (Section 9, RA 7611)  Allowing large-scale corporations to apply for small- scale mining permits while their large-scale mining permits or MPSAs (mineral production sharing agreements) are being processed and pending approval
  50. 50. Weak implementation  Small scale mining has been allowed in areas where no small-scale mining reservations (minahang bayan) were established
  51. 51. • Small Scale Mining Permits issued in areas without small scale mining reservations (minahang bayan )
  52. 52. Cost and Risks of Mining vis-à-vis Biodiversity, Food Security, Human Dignity
  53. 53. Introduction  Questions/Issues ◦ Can mining be sustainably undertaken in these places, given existing remediation technology? ◦ Should mining be allowed in island ecosystems? ◦ Is it worth the risk?
  54. 54. Island Ecosystems  Unique, Fragile andVulnerable  Distinction: ◦ Evolution of flora and fauna has taken place in relative isolation ◦ Endemism and rich biodiversity  Many remote islands have some of the most unique flora in the world; some have species of plants and animals that are not found anywhere else, which have evolved in a specialized way, sheltered from the fierce competition that species face on mainland. (http://www.eionet.europa.eu/gemet/concept)
  55. 55. Biodiversity Status of Islands with Existing and Proposed Mining Projects Island Ecosystem Conservation Priority Area Priority Level Protected Areas Area in hectares 1. Dinagat Island (Mt. Kambinlio & Mt. Redondo) Extremely High Critical 85,955.42 2. Marinduque Marinduque Very High 33,575.42 3. Mindoro Included in the list of Endemic Bird Areas Lubang island,Mindoro Occidental Extremely High Critical 6,918.78 Mt. Calavite,Mindoro Occidental Very High 19,668.82 Puerto Galera Extremely High Critical UNESCO Man and Biosphere Reserve 39,144.83 Mt. Halcon Extremely High Critical 62,949.51 Naujan Lake National Park Very High Naujan Lake National Park 25,361.82 Sablayan,Mindoro Oriental Extremely High Critical 25,770.45 Iglit and Baco Mountains,Mindoro Occidental Extremely High Critical Mt. Iglit Baco National Park 47,482.84
  56. 56. 4. Palawan Included in the list of Endemic Bird Areas Coron Lakes Extremely High Critical 1,219.94 hectares Cuyo Island Extremely High Critical 12,302.58 El Nido Extremely High Critical 101,985.53 Lake Manguao Insufficient Data 1,226.33 SanVicente-Roxas Forests Extremely High Urgent 152,430.89 Puerto Princesa Subterranean River National Park (Cleopatra’s Needle) Extremely High Critical Puerto Princesa Subterranean River National Park 134,987.00 Victoria andAnepahan Ranges Extremely High Critical 182,456.06 Mt. Mantalingahan Very High Mt. Mantalingan Protected Landscape 169,406.09 Ursula island Extremely High Critical 1,157.22 Balabac Group of Islands Insufficient Data 35,277.60 Biodiversity Status of Islands with Existing and Proposed Mining Projects
  57. 57. 5. Romblon Sibuyan Island (included in the list of endemic bird areas) Extremely High Critical Mt.Giting Giting Natural Park 32,033.30 BalogoWatershed (Romblon-Tablas; included in the list of endemic bird areas) Very High 6.Samar Island Situated in Eastern Visayas which has been identified as an area where endemic bird species are located Samar Island Natural Park Mt.Cabalantian – Mt. Capotoan Complex Extremely High Critical 398,116.97 Southern Samar Mountains Very High 60,813.16 Biodiversity Status of Islands with Existing and Proposed Mining Projects
  58. 58. Policies:International Guidance  Chapter 17, Agenda 21: seeks the protection of the oceans and all kinds of seas, identifies small island developing States and islands supporting small communities as special cases for environment and development, being ecologically fragile and vulnerable.  Comprehensive Framework for Small Island Developing States (SIDS) ◦ Recognition that many problems are directly related to the small size of these States, and that the small size of SIDS“means that the environment and development are closely interrelated and interdependent”.
  59. 59. Policies:National Laws  No specific legislation on all island ecosystems in the Philippines  Strategic Environmental Plan for Palawan (SEP, RA 7611) as a special legislation  National Integrated Protected Areas System (NIPAS, RA 7586)  Philippine Wildlife Conservation Act (RA 9147)  Local Government Code (RA 7160)  Philippine Fisheries Code (RA 8550)
  60. 60. Policies:Administrative Issuances  DENR Administrative Order No. 83 (2000): Guidelines for the Management And Development of Small Islands, Including Its Coastal Areas ◦ Small Islands are defined as islands/islets with an area of not more than 50,000 hectares. ◦ Island Physical Framework Plan (IPFP) to define the boundaries of the islands/island groups and their coastal areas, including foreshore and nearshore areas ◦ Small Island ManagementAgreement (SIMA) as legal instrument
  61. 61. DENR Administrative Order 83, 2000  Islands/Islets less than 500 hectares - strict conservation areas; not for alientation and disposal  Islands/Islets 500 hectares up to 5,000 hectares - restricted use; land titling limited to those with pending applications on classified alienable and disposable lands as of the effectivity of this Order  Island/Islets above 5,000 hectares up to 50,000 hectares - open to sustainable development; land titling may be undertaken in certified alienable and disposable lands
  62. 62. DENR AO 83, 2000  Valid and existing mineral agreements in highly mineralized islands/island groups (declared as such by the Secretary) and whose residents are economically dependent primarily on mining activities shall be allowed to continue until the expiration of the mining permit. Renewal of mining permits shall only be granted if this is included in IPFP and an Environmental Compliance Certificate shall have been secured.  All development activities subject to the requirement of the Environmental Impact Statement (EIS) System.
  63. 63. 21 Abandoned Mines “Abandoned mine sites pose environmental and health risks” – TetraTech for MGB
  64. 64. Bagacay, Samar Loan from World Bank for Rehabilitation of Bagacay Mines: 34.7 million pesos
  65. 65. Impacts and Damages • Household, community displacement from subsistence or livelihood activities • Reduced access or availability of local water supply for in-site and off-site areas • Unpaid use and depletion of groundwater • Pollution of surface water and aquifer • Leakages, overflowing or collapse of tailings dam • Loss of biodiversity • Impacts on health
  66. 66. Marinduque DAMAGES: US$80 million or higher Acid Mine Drainage: Dead Boac and Mogpog Rivers
  67. 67. Heavy Metal Poisoning Marinduque
  68. 68. Rapu-Rapu,Albay
  69. 69. Contaminated Tailings, mud and silt that flowed downslope towards the sea. (Ungay and Hollowstone)
  70. 70. Rapu-Rapu,Albay Fish Kill in Rapu-Rapu in 2007
  71. 71. Didipio, NuevaVizcaya 2007
  72. 72. Didipio, NuevaVizcaya 2009
  73. 73. Didipio, NuevaVizcaya 2013
  74. 74. Didipio, NuevaVizcaya R E S O L U T I O N CHR (IV) No. A2011-004 Some Findings Violations: • Right to Residence • Right to Adequate Housing and Property Rights • Right to Freedom of Movement • Right not to be subjected to arbitrary interference • Right to Security of Persons • Right to manifest their Culture and Identity of the Indigenous Community Others: OGPI must exercise great caution in exploiting the water resource of Didipio, possibly endangering the Community’s Fundamental Right to Access to Clean Water. Some Conclusions • Consider the probable withdrawal of the FTAA granted to the foreign company in view of the gross violations of human rights it has committed • Advice OGPI to consider the findings above and conduct a policy re-orientation on the conduct of mining operation taking into conscious account the observance of human rights of the community involved
  75. 75. Mt. Canatuan Mining Site Siocon, Zamboanga del Norte
  76. 76. Siocon, Zamboanga del Norte
  77. 77. Claver, Surigao del Norte Pollution of coastal areas Siltation due to Taganito Nickel Mining activities (Photo taken on December 2012 by Erwin Mascarinas)
  78. 78. Padcal, Benguet Damaged Tailings Pond No. 3 discharged more than 20 million metric tons of solids
  79. 79. Gray sandy sediment build up on river bank. This build up is NOT natural to the Balog creek. Padcal, Benguet
  80. 80. Murky waters of the Balog River Padcal, Benguet
  81. 81. Funds CLRF MRF MWTFRFFMR/DF MTF RCP Contingent Liability Rehabilitation Fund 10% of the total amount needed to implement the Environmental Protection and Enhancement Program (EPEP) or P5 million, whichever is lower Rehabilitation Cash FundMonitoring Trust Fund P150,000 Mine Waste Tailings Fee Reserve Fund ( P0.05/MT of mine waste) x (assessed volume) Full cost of final rehabilitation including maintenance and monitoring for 10 years after closure Final Mine Rehabilitation and Decommissioning Fund Mine Rehabilitation Fund
  82. 82. FINE: P 1B - tailings fee P 92M - for three violations of the Clean Water Act Padcal, Benguet
  83. 83. Mt. Mantalingahan, Palawan
  84. 84. Mining in Mt. Mantalingahan Protected Landscape  MMPL established by Proclamation 1815 in 2009 covering 120,000 hectares  5 municipalities  33 watersheds  MPSAs issued  Land UseValuation shows enormous benefits from water and biodiversity resources
  85. 85. Potential Sand and Gravel and Nickel Reserves Amount Value Sand and Gravel* 11,044,104 m3 2.2 billion pesos Nickel** 268,010 mt 12.8 billion pesos TOTAL 15.0 billion pesos *The volume of sand and gravel reserve was estimated on the assumption that the total mineable length is 10% of the total length of all the rivers in the watersheds and at a price of P200/m3 ** The value for nickel was computed at P47,810/mt Mt. Mantalingahan, Palawan
  86. 86. Mt. Mantalingahan Total Economic Value (TEV) THEVALUE OF ENVIRONMENTAL GOODS AND SERVICES PRODUCED FAR EXCEEDSTHE NET BENEFIT FROM MINING Direct Use (timber,farming, livestock production,non- timber forest products gathering, river-based livelihood,water and mining) 93.9 billion pesos Indirect Use (carbon stock, soil, conservation,watershed and biodiversity functions, and protection of marine biodiversity) TOTAL ECONOMICVALUE (2% discount) 172.1 billion pesos 266.0 BILLION PESOS
  87. 87. Tampakan, South Cotabato
  88. 88. Tampakan FAULTLINES
  89. 89. Tampakan Water supply for the nearby villages and agricultural lands of the four provinces will be compromised
  90. 90. Tampakan Proposed Open Pit Mine
  91. 91. Tampakan “…this brings about a situation in which a responsible open- pit mine of this magnitude does not seem feasible.”
  92. 92. POVERTY INCIDENCE IN MINING PROVINCESPoverty Incidence of Select Provinces with Mining, 2012 Philippines 25.2 Benguet 3.7 Zambales 16 Palawan 26.4 Albay 41 Masbate 51.3 Cebu 22.7 Eastern Samar 63.7 Leyte 39.2 Zamboanga del Norte 54.4 CompostelaValley 36.7 Agusan del Norte 34.7 Surigao del Sur 36 Surigao del Norte 41.8
  93. 93. NEW MINING POLICY NEEDED Bridging the Gap between Law and Justice
  94. 94. 4 NECESSARY CONDITIONS MINING DEVELOPMENT FRAMEWORK Good governance of the public and extractive sector Link the extractive sector and the rest of the economy Fair share in the extraction of resources Institutional capacity
  95. 95. Proposal  Evidence-based and grounded on national consensus and a balancing of stakeholder interests  Accurately accounts for benefits and costs in order to make rational decisions ◦ Currently, we are not able to accurately measure benefits and costs, and this is so fundamental ◦ Environmental and social costs are high but can be mitigated if done properly.  Extractive Industries Transparency Initiative  Environmental and Social Impact Assessment (ESIA)  Strategic Environmental Assessment (SEA) ◦ Critical island ecosystems need to be closed off to mining (i.e. NIPAS, SEP)
  96. 96. Alternative:Minerals Management Bill (Pending in Congress)  Perspective: ◦ Conservation of non-renewable mineral resources ◦ for the benefit of the present and future generations of Filipinos ◦ adopting a sustainable, rational, needs-based minerals management ◦ towards effective utilization of mineral resources for national industrialization and modernization of agriculture
  97. 97. Minerals Management Bill  Multisectoral Minerals Councils  Prohibit open-pit mining  No-Go zones for Mining; Protect Island Ecosystems  Mineral agreements reserved for Filipino citizens and corporations (area: 500 to 750 hectares for a maximum of 15 years)  Establish corporate transparency and accountability
  98. 98. Taxation to reflect current context of the Philippines Promote slow utilization of minerals to give leeway in strengthening institutions Recommendations Weak institutional policy Design tax regime that ensures profit for mining companies but at the same time gives government and local communities a fair share from their resources Weak regulatory capacity Biodiversity hotspot Limited implementation of good governance measures Weak tax administration
  99. 99. Areas for Reform  STRENGTHENING MONITORING OF IP ROYALTIES  INSTITUTIONALIZING ACCOUNTABILITY MECHANISMS  STRENGTHENING REGULATORY CAPACITY  DEVELOPMENT OF DOWNSTREAM INDUSTRY
  100. 100. GovernanceG O V E R N A N C E

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