Green Justice
The DENR is under fire. The mining industry is assailing the leadership of DENR Secretary Gina Lopez. For her relentless efforts to suspend mining that harms people and mining that harms our watersheds, Secretary Gina is under attack.
In the wake of the resumption of the Commission on Appointment hearing for her confirmation on May 2, 2017, more and more lies about mining are coming into the fore. Allow me to provide a critique to the mining industry that plundered the country’s natural resources especially that of Mindanao.
While the Philippines is blessed with 9 million hectares of mineralized land and undeniably, there is wealth lying beneath the national terrestrial domain, the extractive industry also brings both disruptive and destructive impacts, socially, economically and more so, environmentally. Mining corporations operating in the Philippines through the Chamber of Mines of the Philippines (COMP) have argued incessantly on the benefits of minerals development. Let us not be too quick to believe them.
MYTH: Mining will attract and bring in more investment projected to reach US $20 billion.
FACT: Investments are not to be equated with benefits. Of the multi-billion dollar investments, only a pittance inure to the benefit of the Filipino people. While the project cost appears in billions, much of it are utilized in purchasing equipment, machines, processing of ores that are taking place outside the Philippines and payment of consultants who are mostly foreigners. The largest share of the value of output accrues to operating surplus, amounting to 43%, indicating that the benefits from mining accrue primarily to investors, and hence a relatively narrow segment of society (Cielito Habito, 2010).
MYTH: The extractive industry will save the Philippine economy.
FACT: Mining has contributed only an average of 0.91% to the Philippine Gross Domestic Product (GDP) from 2000-2009, peaking only in 2007 at 1.44%. The same can be said in Zamboanga Peninsula (1.06%), Northern Mindanao (0.66%), Southern Mindanao (3.97%), SOCKSARGEN (0.14%) and CARAGA (6.38%) regions (Mines and Geosciences Bureau, 2010), whereas, agriculture, fishery and forestry account for around 15% of the Philippine GDP. Mining’s share of total exports has only averaged 3.5% from 2000-2009. The truth is, the economy can still survive without the mining industry.
MYTH: Large-scale metallic and non-metallic mining can generate millions of jobs.
FACT: On the average, the industry’s contribution to total employment during the decade (2000-2009) was a mere 0.376 % (MGB, 2010). The Oyu Tolgoi in Mongolia for instance, is approximately a US$100 billion mine over 40 years that will be the world’s 3rd largest copper mine. It has generated 11,400 jobs (half Mongolian; half foreign) during the construction phase but only 3,500 jobs will be permanent, eventually (Revenue Watch Institute). Therefore, employment may only be intensive in the initial stage but labor absorption is likely to decline over time because more labor-saving technologies are adopted in the industry. Agriculture on the other hand contributes nearly two-fifths or 40% of the jobs in the Philippines.
MYTH: The mining industry can increase government revenues.
FACT: In 2007, then DENR Secretary Angelo Reyes affirmed that the profit-sharing scheme under DAO 99-56 is disadvantageous to the State, that is, the probability of the government receiving an additional and fair share of its mineral from the mining companies was nil. In 2000-2009, mining contributed only 1.7% to the excise taxes of the country (BIR). Under the 1995 Mining Act (RA 7942, Sections 81, 92 and 93), mining companies enjoy several forms of tax holidays. Deduction of all exploration and development costs from taxable income from start of commercial operations is mandate. Hence, government cannot even collect withholding taxes until costs have been fully recovered. Given these advantages, mining’s actual contribution to the national revenues is only 4% (Revenue Watch Institute). This shows that while foreign mining corporations see the Philippines as a milking cow, the owner of the natural wealth only gets dog food.
MYTH: With mining, communities will be developed and progressive.
FACT: There is no mining site in the country that shows economic development in the lives of the people living around and in it. In fact, mining communities are often among the, if not the most impoverished of communities. There is, for example, increased poverty incidence in Region 13 (Caraga) from 46% in 2002 to 49% in 2007 attributed to increased mining in the region (Maita Gomez, 2011).
MYTH: Mining can be environmentally sound and socially responsible.
FACT: Open-pit mining, which has been banned in several industrialized countries like Canada and USA, tends to be environmentally destructive. Smelters and waste materials from mining are also known to produce sulfurous dust clouds that cause acid rain. Tailings run-offs can contaminate nearby water sources with heavy metal pollutants used in mining such as cadmium, mercury, sodium cyanide and zinc, rendering them useless as sources of food, water and livelihood. An estimated 16,000 tons of mine tailings find their way into rivers, lakes and irrigation systems. The 1996 Marcopper tragedy in Marinduque should not be forgotten (Cielito Habito, 2010).
It clearly shows from the facts above-stated that mining is not among the triggers of development in the Philippines. It will not hurt if the mining industry is banned. After all, it does not dictate the shape of our economy.
Therefore, the call for the promotion of sustainable, responsible and equitable management and utilization of our natural resources, toward the conservation and protection of the environment and rehabilitation of mined areas is in place.
The Mining Act of 1995 (RA 7942) must be repealed and the government must enact the consolidated minerals management bill pending in the House of Representatives so that minerals development in the country can be truly pro-Filipino, pro-environment and pro-human rights.
To this end, an IMMEDIATE MINING MORATORIUM and suspension and cancellation, if applicable, of all mining operations, licenses and applications, is called for while the relevant mining policies are being reviewed; and concerned government agencies be held accountable (Defending the Dignity of Life, Securing our Future: The Mindanao Declaration, 2012).
Justice for the environment is imperative from us who depend on her resources because no one else will speak up for her except us.
(Photo credit: ofwheroes.blogspot.com)
