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Manila Mining Corporation in Surigao Del Norte Mining District

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Manila Mining Corporation in Surigao Del Norte Mining District 2003 LEGACY MINES VISIT MANILA MINING CORPORATION IN THE SURIGAO DEL NORTE MINING DISTRICT: STRUGGLING WITH CORPORATE SOCIAL RESPONSIBILITY AT THE LOCAL Philippine Working Group on Mining Environmental Science for Social Change March 2008 TABLE OF CONTENTS THE SURIGAO DEL NORTE MINING DISTRICT ........................................... 3 CONSTRUCTIVE ENGAGEMENT AMONG MINING STAKEHOLDERS .... 3 The Multipartite Monitoring Team and Mine Rehabilitation Fund Committee ....... 3 The Community Technical Working Group ........................................................... 4 MANILA MINING CORPORATION IN PLACER, SURIGAO DEL NORTE.. 4 MMC OPERATION IN PLACER: ENVIRONMENTAL DISASTERS AND CONFLICTS WITH STAKEHOLDERS .............................................................. 5 Tailings Pond No. 5 collapse ................................................................................. 5 Tailings Pond No. 7 failure.................................................................................... 6 MMC AND MMT/MRFC CONFLICT OVER TP 7............................................. 6 Landslide in Heine Pit............................................................................................ 9 Social acceptability issues on MMC’s exploration permit in Anislagan and Malakaya............................................................................................................... 9 MMC MINE SITE IN PLACER: PRESENT SITUATION AND FUTURE PLANS....................................................................................................................12 MMC’s unclear plans for Placer mine...................................................................12 LGU proposal to open site to small scale mining ..................................................12 MMC’s on-going consultations in Anislagan and exploration in Malakaya ...........12 MMC MINING ISSUES: QUESTIONS AND CHALLENGES...........................13 Effectiveness of the multipartite monitoring..........................................................13 Tracking MMC’s record in mining and impelling corporate social responsibility and accountability.................................................................................................14 Mining governance issues.....................................................................................15 REFERENCES.......................................................................................................17 ENDNOTES ...........................................................................................................18 ESSC: 2003 Legacy Mines Visit – Surigao del Norte 2 March 2008 THE SURIGAO DEL NORTE MINING DISTRICT Surigao del Norte is a mineral-rich province, and its economy is closely tied with the exploitation of its mineral resources. With its metallic and non-metallic resources, the entire Surigao del Norte province was declared a Mineral Reservation Area under Presidential Proclamation No. 391 in the 1930s. The province has large reserves of metals that include aluminum, chromite, copper, cobalt, gold, iron, lead, manganese, nickel, silver and zinc. Non-metallic resources, on the other hand, include deposits of limestone, coal and aggregate construction materials. The current, redefined mining reserve in Surigao del Norte covers 20,000 hectares of the province’s mainland and 5,063 hectares in Dinagat Island. The economy of many towns in the province, which has a total land area of 273,902 hectares, relies heavily on mining. The province’s vast mineral reserves are evinced in the long history of mining and high concentration of mining activities and interests in the area (Figure 1). At present, active large scale mining operations include nickel mining by Philnico Processing Corporation/Hinatuan Mining Company and Cagdianao Mining Corporation in Dinagat Island, Taganito Mining Corporation in Claver, and limestone quarrying by Pacific Cement Company in Sison. Mines that are opening soon include those of Claver Mining Development Corporation and Case Mining Corporation in Claver, and another mine of Philnico Processing Corporation in Dinagat. There are also five exploration activities undertaken by different companies. Six mines are in temporary operational suspension, one of which is the copper-gold mine of Manila Mining Corporation in Placer. CONSTRUCTIVE ENGAGEMENT AMONG MINING STAKEHOLDERS The Multipartite Monitoring Team and Mine Rehabilitation Fund Committee Constructive local engagement among on-site mining stakeholders (such as the local government units, indigenous peoples, the church, non-government organizations) and regional line agencies involved in mining (specifically the Department of Environment and Natural Resources-Mines and Geosciences Bureau or DENR-MGB) in multi-stakeholder mine monitoring mechanisms provided for under the Philippine Mining Act was first coordinated in Surigao del Norte mining district. These mechanisms are the Multipartite Monitoring Team (MMT) and the Mine Rehabilitation Fund Committee (MRFC). An MMT is organized for each operational mine and the team conducts quarterly monitoring of the mine to check if its operations comply with environmental regulation and the commitments and conditions specified in its Environmental Compliance Certificate (ECC). The MMT reports its findings to the MRFC, a regional committee that evaluates the monitoring report and makes necessary recommendations. The composition of these monitoring groups is multi-sectoral. Among the companies that formed their MMTs in the province are Manila Mining Corporation, Taganito Mining Corporation, Hinatuan Mining Corporation, Cagdianao Mining Corporation, Krominco (chromite mining) and Pacific Cement Company. However, the initial gains in making the multipartite monitoring process work in the Surigao del Norte mining district were significantly undermined by a year-long ESSC: 2003 Legacy Mines Visit – Surigao del Norte 3 March 2008 conflict between the MMT of Manila Mining Corporation (MMC) with the regional MRFC, and the MMC in 2000. The Diocese of Surigao del Norte, recognizing the major role mining plays in the local economy, was actively involved in the local MMTs and the regional MRFC until its resignation in December 2000. Disenchanted with the multi-sectoral monitoring process in general because of the groups’ lack of control of the process and the complex politics involved, the diocese also chose not to participate in the Community Technical Working Groups (CTWGs). However, the church continues its critical engagement of mining issues. The Community Technical Working Group Another mining dialogue mechanism that is currently productively driving the Surigao del Norte mining district are the Community Technical Working Groups (CTWGs) that monitor different mines within the province. The CTWGs informally parallel the functions of the MMTs and are working actively in their respective areas to ensure responsible mining through fostering communication and partnership among stakeholders. The CTWGs also cover exploration activities of mining companies that are not under the jurisdiction of MMTs. The CTWGs are composed of representatives from mining companies, government, non-governmental organizations, local government units and local community members. The MGB in Caraga region initiated the formation of the CTWGs to address the complaint of mining stakeholders that the composition of the mandated MMT is very limited. Compared with the MMT, the CTWG has more members that allows for a broad-based, multi-sectoral approach in addressing environmental and social mining issues. The adaption of the CTWG process, which is showing positive outcomes in Surigao del Norte, is now being considered in other provinces of Caraga and other regions. The CTWGs of Surigao del Norte have the support of mining companies in the whole province except the Manila Mining Corporation. MANILA MINING CORPORATION IN PLACER, SURIGAO DEL NORTE Placer is a coastal municipality in Surigao del Norte. The town is 34 kilometers southeast of Surigao City (Figure 1) and is adjacent to the towns of Tubod, Mainit and Tagana-an that were previously three large barangays of Placer. Its population of around 23,000 is spread over 17 barangaysi. Rich in marine and mineral resources, fishing and farming are the people’s main sources of income. Placer is a fourth class municipality with an Internal Revenue Allotment (IRA) of PhP 21 million. Manila Mining Corporation (MMC) started operating within the former mining claims of the East Mindanao Mining Company (EMMC) in Placer in 1979. The EMMC operated in Placer in the late 1930s, mining gold in the area for a short period in pre-World War II. Prior to the commencement of MMC mining, small-scale mining was a major livelihood for local residents. Incorporated on 3 June 1949, MMC is an affiliate of the Lepanto Consolidated Mining Company. MMC initially employed underground mining methods for its gold mining activities in Barangay Magsaysay in Placer (Figure 2). In 1982, MMC upgraded its operations from its former 1,500 tonnes per day output to 3,000 tonnes per day with the simultaneous implementation of its open-pit and underground mining ESSC: 2003 Legacy Mines Visit – Surigao del Norte 4 March 2008 projects. In 1997, the company expanded its milling operations to accommodate copper from its gold-copper deposits. MMC was producing gold bullions through a carbon-in-pulp (CIP) plant and copper concentrates from its copper flotation plant until it temporarily put on hold its mining
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