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TitleCase studies of medium / large scale mines and theirimplications in the Phillippines(1) : Procedures of participationin project level

Author(s) KURITA, Hideyuki

Citation 愛媛大学法文学部論集. 総合政策学科編. vol.36, no., p.39-55

Issue Date 2014-02-28

URL http://iyokan.lib.ehime-u.ac.jp/dspace/handle/iyokan/4142

Rights

Note

－ 39 －

Case studies of medium/large scale mines and their implications in the Philippines(1)

Kurita Hideyuki

Procedures of participation in project level

Introduction

Many researchers found negative correlation between richness of natural resources

and richness of society. Such phenomenon has been pointed out from ancient period

but theoretical accumulation has just started from 1950 by Prebisch and Singer. Theory

of Dutch Disease followed theory of Prebisch-Singer, but no theoretical succeeding,

as pure economic theory at the first and expanding into political science one later, then

‘Resource Curse’ theory has been created as comprehensive and multi-dimensional

political science theory.

‘Resource Curse’ has many infection routs but recent studies connect variety of infection

routs with a factor, deterioration of democratic institution. EITI(Extractive Industry

Transparent Initiative)and RF(Resource Fund)are now addressed as main solutions

to improve democratic institution by making functioning check & balance(C&B)

enhanced by revenues’ transparency.

However, from series of my studies in the Philippines, I found another infection rout,

from impossibility of democratic process for agreement on mining project through dete-

rioration of institution for democracy into several negative consequences in the society.

My hypothesis still needs to be verified from multidimensional data. If my hypothesis

is true, EITI and RF scheme which Aquino government just declared participation are

not enough solutions on deterioration of institution for democracy and variety of social

Kurita Hideyuki

－ 40 －

crisis.

As so many reports from field research in almost all medium/large scale mining sites

mentioned, human rights violation, environmental destruction, improper procedures

of agreement such as EIA including agreement of LGU(Local Government Unit)

and FPIC(Free and Prior Informed Consent)with indigenous community, breaking

many promises such as employment & high salary, compensation, and community dand

evelopment program, are so common. Although NGO and academic researchers have

done many case studies, there is still no data/information set to study impact of mining

sector into national level. Also data from several reports does not have same criteria of

evaluation so that comparative and statistical study for choosing determinant of regulate

or under-regulate institution for democracy in mining sector is impractical. In addition,

it is hard to know credibility of data/information in each report. Report might be written

with misunderstanding/lack of information or might be misleaded for some political

purposes.

For evaluating impact of mining industry into national level especially into national

institution for democracy, data/information set which can be compatible and integratable

among whole Philippines should be corrected with enough credibility. This report is just

an initial attempt to collect data/information set for analysis & evaluation.

As following tables show that it is still early to publish as a research paper for so

many vacant spaces and vague data/information. The reason why I try to publish this

insufficient paper is to show my research intention to proper agencies & bodies in the

Philippines to communicate & improve data/information through website. Therefore I

will present again improved data/information set in second volume of the report. The

contents of the report including volume 2 will be as followings.


－ 41 －

The first volume

Introduction

１．‘Resouce Curse’ and two check & balances

２．Methodology and contents of collecting data/information set

３．Basic data/information

４．Selecting general problems on procedure of agreement

Second volume

５．Local Variety

６．Variety of operating companies

７．NGO’s strategy and network

８．Oppression/Conflicts

９．Analysis of correlation among data/information set

Conclusion

１．‘Resouce Curse’ and two check & balances

Institution for democracy has maybe two main processes to be deteriorated. One is

malfunctioning of check & balance around benefit sharing of EI(Extractive Industry)

through tax/royalty, employment, indirect benefit by expanding local market, commu-

nity & social development project, and compensation. Here we call the first check &

balance as C&BEI. Other is check & balance of agreement process among stakeholders

which we call here C&BAG.

The C&BEI has been now well studied and results of studies have been integrated into

attacking ‘Resource Curse’. On the other hand, although the second check & balance,

C&BAG is previous procedures of narrow scope of benefit sharing, C&BEI, for develop-

ment process, the results of studies on it have not yet been integrated into ‘Resource

Kurita Hideyuki

－ 42 －

Curse’.

In previous stage of medium/large scale natural resource development, majority of

population depends on so many kinds of and complicated mix of livelihoods that come

from rich variety of natural resources. However medium/large scale natural resource

development such as mining development that seriously destroys or drastically changes

natural environment inevitably excludes so many local people from nature oriented

livelihood in huge area. In other word, structure of benefit sharing on natural resources,

larger and more primarily than the first benefit sharing on mineral benefit, is inevitably

changed. However EITI/RF does not directly include participation of such excluded

people into decision-making process of primary benefit sharing on natural resources.

Impact of neglecting participation in primary benefit sharing into institution for

democracy on development process might be severe in countries with high density of

population, rich & vulnerable nature, large portion of proposed/projected mining area,

strong unbalance of power among stakeholders such as existence of IP, strong patronage

system, or severe poverty.

２．Methodology and contents of collecting Information/data set

The Philippines has two main EI, coal mining sector managed under DOE(Department

of Energy)and mineral & quarrying sector managed under DENR(Department of

Environment and Natural Resources). Mineral & quarrying sector is also divided into

mining sector and quarrying sector, then mining can be classified into medium/large

scale and small scale mining(SSM). My hypothesis focusing on de-democratization

by impossibility of democratic agreement among affected people, and medium/large

scale mining has far remarkable negative influence on institution for democracy than

other EI sectors. Therefore, the analysis here focuses on medium/large mining for the

evaluation work.

At the end of 2012, operating medium/large scale metal mines are only 29. However

if exploration and development activities which means approved and registered mining


－ 43 －

projects are included, the number of projects becomes 707(28 plus 679). In addition,

the number of project leaps to 3,478(707 plus 2,771)if projects under processing

applications are counted. It is impossible to check all data/information from all mining

projects or even approved and registered projects. Therefore the report limits mining

projects into active mines.

In addition, for the purpose of checking credibility on information in relation with

real procedure and damages/complains, it is necessary to know informants and claimants

such as NGO, church, municipalities & its staffs, and local people with damages &

claims. Therefore interview through e-mail and through field research has been con-

ducted.

Because of necessary information, it is inevitable that the interview would be con-

centrated to claimants. Off course it must be the best to make interview with mining

companies and municipalities that are supportive to mining projects. However it has

often be occurred that local politicians try to disturb research by asking/ordering people

not to tell about their problem, disallowing my enter to the communities for companies’

security reason, or even harassing people and community organizers, when they get to

know intention of my research.

Data/information set of the research is classified into SEVEN categories apart from

integrated data of EI in the Philippines as followings.

１)Basic data of project and area such as

　a)Area of project

　b)Chronology of each project

２)General problems on procedure of agreement such as

　a)Agreement with communities of indigenous people(IP)through FPIC

　b)Agreement with LGU(Local Government Unit of Municipality and

　　Province)

Kurita Hideyuki

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　c)Strong social disturbances especially for anti-project people/groups not to

　　participate agreement process/consensus making

３)General problems on direct impacts from mining activities and on

　　process of claims by several stakeholders including NGO such as

　a)Environment destruction/pollution

　b)Employment

　c)Royalty/compensation

　d)Community development

　e)Tax

４)Local varieties such as

　a)Population and population density

　b)Main livelihood of affected people

　c)Structure of industry

　d)Situation of IP

　e)Patronage structure

５)Variety of operating company such as

　a)Shareholders’ equity ratio

　b)Web site of project or shareholding companies

　c)Nationality of shareholding companies

　d)Self-regulation

６)NGO’s strategy and network for opposition such as

　a)Acting NGOs(or POs; people’s organizations)in the area

　b)Original purposes of the NGO

　c)Relationship with monitoring team and affected communities


－ 45 －

　d)Relationship of NGO network with national level and international level

７)Oppression/Conflicts around anti-mining movement

　a)Armed conflicts

　b)Intervention of PMA(Philippines Military Army)

　c)Other types of armed groups for protecting/pursuing project

３．Basic information/data

３－１．Philippines legal system for mining activities

The foundation of present legal mining system was created by RA7942 or the Philip-

pines Mining Act of 1995. The present system has introduced two types of mining

contracts between the Philippines government and mining company. The first contract is

FTAA(Financial or Technical Assistance Agreement)which allows foreign company’s

ownership, meaning over 40% up to 100% of shares are foreigners’/foreign corpora-

tions’, to large metal mining project and the second contract, MPSA(Mineral Produc-

tion Sharing Agreement), allows only companies of Philippine ownership.

Democratic procedures especially about participation of direct stakeholders and their

agents are the same in both FTAA and MPSA under law of LGU, EIA(Environment

Impact Assessment), and IP(Indigenous Peoples).

RA7160, or the local government code of 1991, addresses LGU such as province and

municipality as contract body in mining contract. Also the law allows LGU to levy own

tax to mining activities. Mining company needs to get many kinds of permission and

agreement from/with LGU.

RA8371, or IPRA(Indigenous Peoples’ Rights Act of 1997), recognizes FPIC(Free

and Prior Informed Consent)as IP’s fundamental right. Mining companies need to

get FPIC from ancestral title holding IP communities through the IP's own traditional

decision making process.

EIA process is regulated mainly by PD1151, PD1586, DENR AO2002-42, 2003-30.

Kurita Hideyuki

－ 46 －

With mining act, EIA process needs to conduct consultation for mining project in af-

fected LGU & communities with presenting plan for mitigating social & environmental

damages and for benefit sharing such as priority of employment and suggesting com-

munity development plan before agreement.

３－２．Selected mining projects

Table 1 and figure 1 shows 29 medium/large active mines with location and basic

data at the end of 2012. The Philippines has 12 mineral potential areas, a)Luzon

Central Cordillera(Au, Cu, Fe, Mn), b)Northern Sierra Madre(Cr, Ni, Cu), c)

Zambales(Cr, Ni, Co, Pt, Cu, Au), d)Vizcaya-Aurora(Cu, Au), e)Bicol(Au,

Fe, Cu), f)Southern Tagalog(Cu, Au, Ni, Co), g)Central Visayas(Cu, Au, Mn),

h)Samar-Eastern Mindanao(Au, Cu, Fe, Cr, Ni, Co, Pt, Mn), i)North Central

Mindanao(Cr, Cu, Au), j)Zamboanga Peninsula(Au, Cu, Cr, Fe), k)Southern

Mindanao(Cu, Au), and l)Palawan(Cr, Ni, Co, Pt, Au, Rare Earth Elements). Only

b)Northern Sierra Madre and d)Viscaya-Aurora areas do not have active medium/

large scale mines but so many exploration projects have been already on operation there.

Chronology of each project is not yet enough filled with information. The biggest

reason is insufficient openness of mining companies in the Philippines. Apart from

traditional domestic mining companies and large transnational mining corporations

(TMC), mining companies operating in the Philippines, unlike in developed mineral

countries such as Australia, Canada, and US, do not open even their basic information

through their web sites and annual reports.

４．General problems on procedure of agreement

Under mining legal system in the Philippines, mining companies need to get agree-

ments with LGUs(local government unit at municipality and province level), directly

affected communities, and IP communities(if any in project area)through FPIC. The

MPSAs and FTAAs conducted before IPRA did not need to be canceled after implemen-

tation of IPRA. Mining companies just need to get agreement with IP communities on


－ 47 －

＊１　LEPANTO; LEPANTO CONSOLIDATED MINING COMPANY, APEX; APEX Mining Company Inc., PHILSAGA; PHILSAGA Mining Corporation, FILMINERA; Filminera 　　Resources Corporation, JGMC; Johson Gold Mining Corporation, PHILEX; Philex Mining Corporation, CCC; Carmen Copper Corporation, TVI; TVI Resources

Development Philippines Inc., RRM; Rapu-Rapu Minerals Inc., AAM; AAM-PHIL Natural Resources Exploration and Development Corporation, Krominco; Krominco Inc., CAMBAYAS;Cambayas Mining Corporation, NICUA; NICUA Corporation, ZDMC; Zambales Diversified Metals Corporation, BC;Benguet Corporation, BNC; Beron Nickel Corporation, CCITINICKEL;CITINICKEL Mines and Development Corporation, ORG; ORIENTALPENINSULA Resources Group, 1nc., Rio Tuba; Rio Tuba Mining Corporation, SRM;SR Metals, Incorporated, HMC; Hinatuan Mining Corporation, CMC; CAGDIANAO MINING CORPORATION, PGMC;PLATINUM GROUP METALS CORPORATION, TMC; Taganito Mining Corporatio, SMGC; Shenzhou Mining Group Corporation, OSMC;Oriental Synergy Mining Corporation, SMI; Shuley Mine Inc., CTP; CTP Construction and Mining Corporation, CNC; Carrascal Nickel Corporation, MERC(Mercventures Mining and Development, Medusa; Medusa Mining Limited, CGA; CGA Mining Limited, ACMDC; Atlas Consolidated Mining and Development Corporation, CITIC; CITIC United Asia Investment Ltd.,TMC;Tolec Mining Corporation ,NAC; Nickel Asia Corporation, ORE; Oriental Peninsula Resources Group, Inc.

＊２　n.d; no data Source:MGB website and author

1. Basic information/data of active mines at the end of 2012Operating Mining Project

Mining Company Region MuniciparityProvince

IP groups for FPIC

Registration no.of MPSA Main minerals Field visit

or Interview

1 Victoria/Teresa Gold Project LEPANTO CAR Mankayan

BenguetKankana-ay

Ibaloy MPSA(1990)001 Gold 2011.3

2 Padcal Copper-Gold Operation PHILEX CAR Itogon & Tuba

Benguet Kalanguya MPSA(2009)276 Copper/Gold 2013.7

3 Sta. Cruz Candelaria Project ZDMC Ⅲ Sta. Cruz

Zambales MPSA(2004)191 Nickel 2013.7

4 Sta. Cruz Nickel Project BC Ⅲ Sta. Cruz

Zambales MPSA(2005)226 Nickel/Chromite 2013.7

5 Berong Nickel Project BNC ⅣB Quezon

Palawan Tagbanua MPSA(2007)235 Nickel 2013.6

6 Toronto Nickel Projects CITINICKEL ⅣB Narra

Palawan PalawanoTagbanuaMPSA(2007)229

Nickel 2013.6

7 Pulot Nickel Projects CITINICKEL ⅣB Espanora

Palawan PalawanoTagbanua Nickel 2013.6

8 Rio Tuba Nickel Project Rio Tuba ⅣB Bataraza

Rio Tuba Palawano MPSA(1998)114 Nickel 2007.122009.6

9 Paracale Gold ProjectJGMC Ⅴ Jose Panganiban

Camarines Norte n.d MPSA(1999)139 Gold/Silver not yet

10 Masbate Gold Project Filminera Ⅴ Aroroy

Masbate MPSA(1997)095 Gold not yet

11 Rapu-Rapu Mine RRM Ⅴ Rapu-Rapu

Albay TaboysMPSA(1998)122MPSA(2000)163MPSA(2007)255

Copper/Gold not yet

12 Toledo Copper Project ACMDC Ⅶ Toledo

CebuMPSA(2005)210MPSA(2008)264 Copper/Gold not yet

13 Leyte Magnetite Project NICUA Ⅷ MacArthur

Leyte MPSA(2009)290 Iron not yet

14 Homonhon Chromite Project CAMBAYAS Ⅷ Guiuan

Eastern Samar MPSA(2009)292 Chromite not yet

15 Canatuan Mining ProjectTVI Ⅸ Siocon

Zamboanga del Norte Subanen MPSA(1996)054 Copper not yet

16 APEX Maco OperationAPEX Ⅺ Maco

Compostella Valley Mansaka MPSA(2005)225 Gold 2013.6

17 Dinagat Chromite-Nickel Project AAM-Phil � Basiliza / San Jose

Dinagat Island MPSA(2010)328(SMR) Chromite 2013.3

18 Dinagat Chromite Project Krominco Inc � Loreto

Dinagat Island MPSA(2009)291(SMR) Nickel/Chromite 2013.3

19 Mountain Top Nickel Project OSMC � Loreto

Dinagat Island MPSA(1992)92(SMR) Nickel/Chromite 2013.3

20 Cagdianao Nickel Project CMC � Cagdianao

Dinagat Island MPSA(1997)078(SMR) Ncikel 2013.3

21 Tagana-an Project HMC � Tagana-an

Surigao del Norte Manobo/Mamanuwa MPSA(2007)246 Ncikel 2013.3

22 Taganito Nickel Project TMC � Calaver


23 Cagdianao Nickel Project PGMC � Calaver


24 Tandawa Nickel ProjectSMGC � Calaver


25 Adlay and Dahican Nickel Projects CTP � Carrascal

Surigao del Sur Manobo/Mamanuwa MPSA(1993)018(SMR)MPSA(2000)158(SMR) Ncikel 2013.2

26 Carrascal Nickel Project CNC � Carrascal

Surigao del Sur Manobo/Mamanuwa MPSA(2007)243 Ncikel 2013.3

27 Cantilan Nickel Project MARC � Cantilan

Surigao del Sur Manobo/Mamanuwa MPSA(1993)016(SMR) Ncikel 2013.3

28 Tubay Nickel-Cobalt Mining Project SRM � Tubay

Agusan del Norte Mamanuwa MPSA(2008)261 Nickel/Cobalt 2013.3

29 Banahaw Gold Project PHILSAGA � Bunawan

Agusan del Norte n.d MPSA(2008)262 Gold not yet

Kurita Hideyuki

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the issues of compensation and royalty.

Agreement process of proper stakeholders is shown in table 2. Although many LGU

have shown strong concerns on environmental and economical damages from mines in

recent years, only three projects among 29 have been apparently opposed or have not

gained agreement with proper LGUs. Two oppositions or vague agreements are the


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same LGU, municipality of Sta. Cruz in Zambales. Former mayor of Sta. Cruz, now

present mayor is his wife, sometimes indicated that he did not give agreement of MPSA,

but still information about agreement is vague even for former municipal councilors

at the moment of MPSA. At least it is obvious that proper procedures in municipal

level within local politicians were not done in case of conducting agreement. Cantilan

government has not yet agreed with mining company but MPSA was conducted. Mayor

of Cantilan with opposition groups tried to appeal many times to MGB/DENR about

illegality of MPSA and also decision of regional court supported their position. However

MGB/DENR have not yet shown their reaction to the problem.

Eight projects among 29 could not properly addressed opposition from directly affected

groups/communities which mining companies must persuade in their process of EIA. In

scope of agreement with directly affected groups/communities, two issues always raise

to the table of agreement. The first issue is procedure in the groups/communities. It is

impossible to check all stake holding groups/communities about their way of agreement

but all projects challenged by opposition movement during agreement process and after

starting operation got claims about legitimacy of leaders’ sign for agreement. No proper

discussion among groups/communities or even among leaders is so common. Another

issue is scope of potential affected area. The directly affected groups/communities in

the table is picked up by EIA which companies made by themselves with permission of

DENR. However all projects have been challenged by groups of farmers, fisherfolks,

and residents around the potential affected area for narrow recognition of its area, which

leads to strong opposition to all projects.

FPIC is also the same or even worse than LGU agreement for vagueness of traditional

decision system which FPIC demands to IP communities as agreement process. As next

section mentions, many IP communities do not have proper decision making process

for participatory development method recognized as necessary way of benefit sharing,

community development, and livelihood compensation. In addition, vague definition

and insufficient historical information always bring room for conflict by challenging

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legitimacy of leadership.

The case of BNC(5), single Tagbanuwa community is recognized as IP land title

holder even though Tagbanuwa community is mentally and practically divided into two,

barangay Berong and barangay Aramaywan. In addition, their traditional way of deci-

sion making had become unpractical so that they had to recreate their way for FPIC in

a hurry, which brought a big room for questioning legitimacy of the way. Anti-project

leaders and groups, most of menbers are from barangay Aramaywan, have criticized the

way of selecting leaders. It is vague who is close enough to leaders blood line and how

many leaders are proper.

　　Such vagueness around ‘IP’ often brings confusion into FPIC process & legality

of project even after starting operation. Some other leaders/groups often tries to enter

negotiation of Royalty sharing. Padcal(2), Canatuan(15), Maco(16), Taganito(22),

Cagdianao(23)and Tandawa(24)are now challenged by other IP groups/leaders

about legitimacy of FPIC with great intervention/support from local politicians and

NCIP(National Committee of Indigenous People)high officials.

Some IP groups, especially recent mining’s shareholding IP communities live in remote

area such as in forests and mountains without close relation with other ‘ordinal’ Filipino

groups. Such condition enables strong elites and politicians to force IP’s agreement to

mining project by illegal method such as dirty money and mental & physical violence.

On the one hand, remote and isolated area also give revolutionary armed groups good

hiding places, and strong oppression from such elites becomes strong incentives for

residents to support revolutionary groups. These two dimensions have been strength-

ened each other, active revolutionary movement gives government strong incentive to

enlarge national army, PMA(Philippines Military Army), & range of it’s activities, then

creating physical & mental pressure & violence to residents, and residents’ sense of

powerlessness to decision making on usage of natural resources enhances attitude to

support/participate revolutionary armed movement.

FPIC of Tandawa(24), Adlay(25), and Cantilan(27)were all done under strong vio-


－ 51 －

2. Process of agreementOperating Mining Project

Mining Company LGU＊1 Directly Affected groups/communities FPIC Other procedures

1 Victoria/Teresa Gold ProjectLEPANTO AG

NCSurrouding communities

opposeNP Many environemtal disputes

have not yet been settled

2 Padcal Copper-Gold OperationPHILEX AG AG AG

3 Sta. Cruz Candelaria ProjectZDMC Conflict bet. Mayor & ZDMC AG

4 Sta. Cruz Nickel ProjectBC Conflict bet. Mayor & BC AG

5 Berong Nickel ProjectBNC AG AG LQ Project occupies

ristricted zone

6 Toronto Nickel ProjectsCITINICKEL AG AG AG Project occupies

ristricted zone

7 Pulot Nickel ProjectsCITINICKEL AG AG AG Project occupies

ristricted zone

8 Rio Tuba Nickel ProjectRio Tuba AG AG NP

9 Paracale Gold ProjectJGMC NI NI NI

10 Masbate Gold ProjectFilminera NI NI

11 Rapu-Rapu Mine RRM AG

Fishermen and many residents disagree

restart after disasterNC

12 Toledo Copper ProjectACMDC AG AG NI

13 Leyte Magnetite ProjectNICUA AG NI

14 Homonhon Chromite ProjectCAMBAYAS AG Fisherfolks and many

residents disagree

15 Canatuan Mining ProjectTVI AG Farmers and fisherfolks

disagree LQ

16 APEX Maco OperationAPEX

NCAG SSM disagree LQ

17 Dinagat Chromite-Nickel ProjectAAM-Phil AG AG

18 Dinagat Chromite ProjectKrominco Inc AG AG

19 Mountain Top Nickel ProjectOSMC AG AG

20 Cagdianao Nickel ProjectCMC AG AG

21 Tagana-an ProjectHMC AG AG

22 Taganito Nickel ProjectTMC AG AG

NC NP

23 Cagdianao Nickel ProjectPGMC AG AG

NC NP

24 Tandawa Nickel ProjectSMGC AG AG SO

25 Adlay and Dahican Nickel ProjectsCTP AG Farmers tries to oppose

but strong oppression SO

26 Carrascal Nickel ProjectCNC AG NI NI

27 Cantilan Nickel ProjectMARC

＊Cantilan government disagrees＊Cantilan government does not give

business permitFarmers oppose SO

28 Tubay Nickel-Cobalt Mining ProjectSRM NI Farmers oppose SO

29 Banahaw Gold ProjectPHILSAGA NI NI

＊1　AG; Agree with companies, NI; no information about agreement＊2　LQ; legitimacy of IP group/leadership is questioned, NP; not practical because MPSA was conducted before IPRA, SO; agreement is done under strong oppression, NC;

no consultationSource: Author created through interview and web information from Informant of my research and website of several newspapers

Kurita Hideyuki

－ 52 －

lence, at least leaders of IP community felt danger of their life if they reject agreement or

sharing royalty with elites because of intentional pressure from PMA and civilian armed

groups organized by local elites.

５．General problem on direct impacts from mining activities

Here table 3 shows general problems of agreement procedures after MPSA. So many

problems unpredicted in EIA or in negotiations of MPSA occur after MPSA & start of

operation. All mining projects are supposed to be equipped with democratic method to

solve such problems.

Mining activity is never free from unpredicted environmental destruction so that solu-

tions not only as recovery/rehabilitation but also as compensation/benefit sharing with

democratic negotiation becomes important for conducting agreement with residents.

Among 29 projects still 18 projects can not address properly many variety of envi-

ronmental problems. Some problems might not be occured by mining projects but by

other industrial/accidental reasons such as by SSM or by pure natural disaster. However

some more problems might be reasons for severe damage of environment and residents.

The big problem for stakeholders is that they all have to struggle with the vagueness of

damage causes, and vagueness is very sensitive to power balance among stakeholders.

All contract workers can be regular worker after 6 months but it is so common in the

Philippines that companies make contract below 6 months with contract worker and

re-contract after several month of contract end or no more contract with the same person.

All mining companies depend heavily on such illegal employment condition.

It is hard to know about workers condition because many varieties of workers have

been hired in a mining company and mining companies do not open such data. Many

working accidents must be occurred in mining projects especially development or initial

operation period but it is hard to get such data from mining companies.

Most Royalty related projects face strong conflicts or claims among IP communities

because of vagueness of IP and following reasons. Participatory method is effective and


－ 53 －

one of necessary condition in community development project but many IP traditional

organizations do not have enough experience and does have many structural and mental

obstacles.

In Padcal(2), IP community is divided into two and an another group tries to insist

ancestral land title by strong support of NCIP higher officials. Berong(5)’s IP com-

munity is also divided into two, one is pro-mining with better benefit sharing because

of geological reason and other is anti-mining. Unfair, from view point of anti-mining

group, royalty sharing and pro-mining group’s royalty control increase distrust and con-

flict. In addition, Berong(5), Pulot(7), Rio Tuba(8), Canatuan(15), Taganito(22),

Cagdianao(23), Tandawa(24), Adlay(25), Carrasscal(26), Cantilan(27)are under

conflict because of unclear Royalty use/distribution by some leaders and distribution

along with clan network.

Community Development is not only one of important conditions to mining com-

pany for MPSA but also important factor to persuade LGU & residents for agreement.

Therefore luxurious CD projects are always proposed to LGU, affected communities,

and residents but it is often happens that a portion or even none of CD projects are

just offered. Or also there are many cases that only local politicians and communities’

leaders know contents of CD.

Tandawa(24)and Cantilan(27)do not offered CD, all projects except Cagdi-

anao(20)in Dinagat island((17)-(19))do not open properly to residents about CD,

Adlay(25)and Carrasscal(26)both owed by CTP(CNC is operation company under

contract with CTP)shows their project & attainment by large boards along main road

but benefits do not go enough to main damaged residents.

It is very important to mention that all CD programs never see post mining livelihood.

Many CD programs have been planned but if we recognize that creating post mining

livelihood is one of corporate responsibilities, quantity and effectiveness of CD's benefit

are too small.

Tax disputes have been occurred between companies and municipalities. Local

Kurita Hideyuki

－ 54 －

government code of 1991 allows municipality to levy variety of tax to business in its

territory. Some LGU tried to levy special tax such as loading tax and transportation tax,

and such attempts often brought conflict between LGU and companies. One reason is

there is still some discussion whether LGU has right to add tax to national level contract

MPSA. After conflict between LGU and companies, Berong(5)and Pulot(7)reached

agreement to pay local tax. However it is no way for LGU to check whether reporting

extracting ore amount from companies is true or not.

It is noteworthy that many LGUs now deepen concerns about negative mining impact

to natural environment, and many LGUs passed their resolution of moratorium to ban

mining activities in their territories. Victoria(1)faces now strong concerns from sur-

rounding LGUs about environmental pollution after NGO’s investigation on Abra river’s

pollution. Padcal(2)and Rapu-Rapu(11)also face strong concerns from LGUs and

face strong oppositions to re-start operations after severe tailing accidents.

There are so many Small Scale Miners and the number & operating area especially

non-registered area has been increasing after 9.11’s gold price hike. Even government

does not grasp enough figures of SSM because most of SSM does not resister their busi-

ness to the government and also the government cannot grasp gold supply from SSM.

Such expansion on number and area of both SSM & medium/large scale mining increase

overlapped area which strengthened land/deposit disputes among them like Victoria(1),

Padcal(2), Sta Cruz(3)(4), Masbate(10), Canatuan(15), and APEX(16).


－ 55 －

３．Process on general problemsOperating Mining Project

Mining Company Environment Employment Royalty CommunityDevelopment Tax Others

1 Victoria/Teresa Gold ProjectLEPANTO

＊Land collapse＊Pollution of Agno

River

So many severe conflicts with LU

＊Strong opposition from surrounding LGUs

＊Dispute with SSM

2 Padcal Copper-Gold OperationPHILEX Tailing disaster Conflicts among IP

groups

Strong opposition from surrounding LGUs about

re-start of mine

3 Sta. Cruz Candelaria ProjectZDMC

＊River pollution＊Air dust

Strong opposition from surrounding LGUs

4 Sta. Cruz Nickel ProjectBC

＊River pollution＊Air dust

5 Berong Nickel ProjectBNC Illegal logging

Strong complains about usage of compensation

Insufficiant payment to LGU

6 Toronto Nickel ProjectsCITINICKEL

＊Water pollution＊Air dust

＊Inproper equipment of monitoring

Royalty was not payed at the first Insufficiant CD

＊No rehabilitation fund＊Several construction

w/o permission

7 Pulot Nickel ProjectsCITINICKEL


＊Improper monitoring equipment

＊Royalty was not payed at the first

＊IP leader monopolize royalty

Insufficiant CD Insufficiant payment to LGU

8 Rio Tuba Nickel ProjectRio Tuba

＊Water pollution＊Air pollution

Strong complains about usage of compensation

9 Paracale Gold ProjectJGMC NI NI NI NI NI

10 Masbate Gold ProjectFilminera

11 Rapu-Rapu MineRRM Tailing disaster NI NI NI

12 Toledo Copper ProjectACMDC NI NI NI NI

13 Leyte Magnetite ProjectNICUA

＊Fish kill ＊Lake pollution＊Destruction of

farmland

NI NI NI

14 Homonhon Chromite ProjectCAMBAYAS

＊River pollution ＊Siltation

＊Water shortageNI NI NI Dispute on land with

farmers

15 Canatuan Mining ProjectTVI Water pollution Dispute among IP Disputes on deposits

and equipment with SSM

16 APEX Maco OperationAPEX Land slides

17 Dinagat Chromite-Nickel ProjectAAM-Phil

Mud spill into rice field

18 Dinagat Chromite ProjectKrominco Inc Salary delay

19 Mountain Top Nickel ProjectOSMC Salary delay

20 Cagdianao Nickel ProjectCMC Sea pollution

21 Tagana-an ProjectHMC NI NI

22 Taganito Nickel ProjectTMC

＊Water pollution＊Siltation

Insufficiant Royalty at the first

Insufficiant improvement of drinking water

pollution

23 Cagdianao Nickel ProjectPGMC

Many severe workers' accidents

Insufficiant Royalty at the first Insufficiant CD

24 Tandawa Nickel ProjectSMGC

Many severe workers' accidents

Strong conflict bet. IP and company Insufficiant CD

25 Adlay and Dahican Nickel ProjectsCTP

＊No regular worker＊Nopriority of employment

to locals

IP leader monopolize royalty Insufficiant CD

26 Carrascal Nickel ProjectCNC NI Insufficiant CD

27 Cantilan Nickel ProjectMARC


No priority of employment to locals Insufficiant CD

28 Tubay Nickel-Cobalt Mining ProjectSRM

＊Pollution of castal area

＊Overflow of tailing＊Flood

NI NI NI Tax dispute Dispute with LGU

29 Banahaw Gold ProjectPHILSAGA NI NI NI NI

＊１　AG; LGU agreeed with companies, NI; no information about agreement＊２　LQ; legitimacy of IP group/leadership is questioned, NP; not practical because MPSA was conducted before IPRA, SO(agreement is done under strong oppression)NC; 　　　no proper consultationSource: Author through interview and web information from Informant of my research and website of several newspapers

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