The document analyzes the impact of mining in the municipality of Tampakan, arguing that the net economic benefit is zero when considering potential environmental damage. It highlights the significant opportunity cost of using the land for mining instead of agriculture and the unprecedented environmental risks associated with mining operations compared to previous mining activities in the area. The document concludes that mining threatens local industries and agricultural viability while presenting large negative net benefits.

1. 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 Fr. Romeo Catedral
Coordinator, Justice and Peace Desk Director
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2. Key results: Benefits from mining
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7. 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
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8. 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
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12. SMI data implies that the ore is located
in an area of around 144 hectares
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13. Implication
• Net economic benefit from Tampakan
mining is zero
• If potential environmental damage is
considered net benefit from mining is a
large negative number
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14. Risks of mining
in municipality of
Tampakan
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15. 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
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16. How does an ISO-certified mining
company operate
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17. Like Philex, Tampakan mining will
require not only the area for ore
mining 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)
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18. 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
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19. How do tailing ponds look?
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20. Establishment of Philex-type tailing ponds
times 10 with Tampakan Mining
(source: Philex PowerPoint Slides)
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21. From the sky, this how tailing ponds look like (vicinity of
Philex mining and tailing ponds are in the northeast of
the picture):
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22. Possible route of wastes 1: Malalag Bay
and Davao Gulf
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23. Possible route of wastes 2: Buluan lake
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25. 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
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26. Our limitation: the following is still unanalyzed
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