Case Study 6: Gold and Nickel Mining - Sibuyan Island

PhilippinesPhilippines

Philippines: Mining or Food? Case Study 6: Gold and Nickel Mining - Sibuyan Island

Robert Goodland and Clive Wicks

for

The Working Group on Mining in the Philippines

Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs The Brundtland Report, Our Common Future, UN World Commission on Environment and Development, 1987

In a world overflowing with riches, it is an outrageous scandal that more than 826 million people suffer hunger and malnutrition and that every year over 36 million die of starvation and related causes. We must take urgent action now. Jean Ziegler UN Special Rapporteur on the Right to Food, April 2001

DEDICATION

The Working Group on Mining in the Philippines and the authors respectfully dedicate this report to all the courageous and dignified people who have been

killed while protecting the environment and upholding human r ights in the Philippine archipelago.

Disclaimer

The views expressed in this report are those of the authors and not necessarily those of the participating or supporting organizations. The authors have, however, done their utmost to reflect the views of the many people they met in the Philippines and the views and reports of the people and organizations who have commented on earlier drafts if this report.

First Published in 2008 by the Working Group on Mining in the Philippines, 28 Redington Road, London, NW3 7RB, United Kingdom [email protected]

ISBN Number: 978-0-9560616-0-7

Report authors: Robert Goodland and Clive Wicks

Report editors: Cathal Doyle, Ellen Teague, Sarah Sexton and Frank Nally.

Report layout and cover design Frank Nally and Cathal Doyle

Front Cover Photos: -Placer Dome Marcopper Mine Marinduque Island by Dr Catherine Coumans, MiningWatch, Canada; - Rice fields on Authors Field Trip to Midsalip

The Working Group on Mining in the Philippines The Working Group on Mining in the Philippines was established in 2007, after the publication in January that year of the report, Mining in the Philippines: Concerns and Conflicts . Based in Britain and chaired by the Right Honorable Clare Short MP, UK’s former Minister of International Development it includes representatives from the Columban Missionary Society, the Ecumenical Council for Corporate Responsibility, Philippine Indigenous Peoples’ Links and IUCN- CEESP.

The Authors

Robert Goodland is an environmental scientist specializing in economic development. He advised the World Bank Group from 1978 through 2001. He then became the technical director to H.E. Dr. Emil Salim’s independent Extractive Industry Review (http://www.ifc.org/eir) of the World Bank Group’s portfolio of oil, gas and mining projects. He was elected president of the International Association of Impact Assessment, and Metropolitan Chair of the Ecological Society of America. He was awarded the World Conservation Union’s Coolidge medal in October 2008. ([email protected])

Clive Wicks has 48 years of experience of working in engineering, agriculture and environment, specializing in the impact of extractive industries on the environment. He is a vice chair of IUCN-CEESP (IUCN’s Commission on Environmental, Economic and Social Policy) and co-chairs SEAPRISE (IUCN-CEESP’s Working Group on the Social and Environmental Accountability of the Private Sector). He worked in the international environmental movement for the last 24 years, mainly with WWF UK. He headed WWF UK’s African, Asian and Latin American programs, and represented WWF at G8, World Bank, International Finance Corporation, UNEP and UNDP meetings on extractive industries. ([email protected])

i Acknowledgements

The Authors wish to thank all those who helped them, both during their trip to the Philippines and in the last year, for the substantial information provided to help them with their research. This report would not have been possible without the support of many people in all the areas visited, including Indigenous Peoples, who opened their hearts and shared their concerns with the authors about the environmental and human rights abuses caused by mining. They are the real authors of this report.

However, in view of the vast number of extrajudicial killings that have taken place since 2001, now believed to be over 1,000, including a Bishop of the Independent Church, the authors are reluctant to name people or organisations in the Philippines. The authors admire the many other people, including lawyers, some of whom have also lost their lives while trying to protect their people from mining industry abuses.

The authors admire the courage of the politicians, bishops, priests, sisters and pastoral workers of the Catholic Church and the leaders of many other faiths and none and human rights lawyers who have the courage to speak out against the destruction that mining is currently and will increasingly cause to their beautiful, fruitful and bio- diverse archipelago. It has been a great honour and a humbling experience for the authors to work with such brave and committed people.

They would like to thank the Local Governments Units, the Catholic Church, especially the Columban Missionaries and the bishops, priests, sisters and communities who welcomed them during their trip and provided accommodation, transport and food for the team.

The best help the authors could provide was to apply their long years of experience and professional knowledge of the extractive industry around the world and their knowledge of environmental and human rights ‘best practise’, laws and conventions in an impartial and professional way.

They would like to especially thank PAFID for their contribution to the mapping of the areas visited in their February 2008 Field Trip, LRC-KSK-Friends of the Earth for their expertise on the law and assisting Indigenous Peoples protect their rights, Professor Arturo Boquiren, Professor Ernesto Gonzales for their contribution and insights about the economics of mining versus environmental value and Cathal Doyle of the Irish Centre for Human Rights for input on the rights of indigenous peoples. Paul K.

From The Working Group on Mining in the Philippines (WGMP):

The Working Group would like to thank Robert Goodland and Clive Wicks for their dedication and passion for human rights and environmental justice, which has led them to generously give of their time and expertise to travel to the Philippines and answer the call of an ever increasing number of communities to help them protect their rights, their lands, their lives and livelihoods. We wish to thank Cordaid, the Holly Hill Charitable Trust, Paul K. Feyerabend Foundation, the Columbans, the IUCN-CEESP (Commission on Environmental Economic and Social Policy), for their financial support to realise this report and maps.

ii Case Study 6: Gold and Nickel Mining - Sibuyan Island

Table of Contents

Background 172 Forest Resources Already Threatened 173 Proposed Industrial Mining 173 Opposition 175 Visit to Sibuyan 176 Sibuyan Island Conclusion, Recommendation and Map 177

ANNEX: Table of Contents for Entire Report Including Case Studies 181

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Map of the Philippine Archipelago

Case Study Locations

5. MINDORO NICKEL PROJECT 6. SIBUYAN ISLAND

2. LIBAY SIBUTAD 3. TAMPAKAN SAGITTARIUS COPPER & GOLD

1. MIDSALIP 4. MATI DAVAO ORIENTAL PUJADA BAY

Report and Case Studies available in individual documents at: http://www.piplinks.org/miningorfood MAPS associated with these 6 Case Studies are available at http://www.piplinks.org/maps

Provincial Map of the Philippines 1

1 Source Wikipedia

Case Study 6: Gold and Nickel Mining - Sibuyan Island

Background Sibuyan is a small crescent-shaped island in Romblon Province, 33% of which is covered with primary dense forests. 2 The island has never been commercially connected to the rest of the Philippines archipelago until very recently and hence has one of the world’s highest rates of endemism and biodiversity. Some 54 species of trees are found nowhere else in the world. For these reasons, on 20 th February 1996, President Fidel V. Ramos declared the 2,057 meter-high central mountain ranges as the Mount Guiting-Guiting Natural Park. 3 This Park conserves 157 km 2 (around 15,700 hectares) of the 445 km 2 (44,500 hectares) forests of the whole island, surrounded by a buffer zone in which land use is (theoretically) stringently controlled.

Mount Guiting-Guiting 4 By Sanrokan

Back in 1980, President Ferdinand Marcos had proclaimed the whole island to be protected as a Mangrove Forest Swamp Reserve because of its 3,400 hectares of mangroves. President Gloria Macapagal- Arroyo in her 2006 State of the Nation Address singled out Romblon for eco-tourism, emphasizing that Sibuyan in particular has high economic potential for tourism.

The island’s economy is entirely based on sustainable agriculture (41%) and fisheries (8%). The agricultural mainstay for the 34,862 Sibuyanons is rain-fed rice; some 293 hectares produce 2.6 million kilograms of rice per year. Coconuts and bananas are the next biggest crops.

All the island’s 34, exceptionally clean, rivers are fished, and the island boasts 35 waterfalls. All mangrove-lined deltas are intensively fished, and there is also intensive small-scale prawn farming. The coastal offshore and coral fisheries (tuna, squid, turtles, eels, lapu-lapu , lobsters, oysters and other mollusks, scads, diwal, snappers,

2 Sources of further information: Batario & Alvarez 1997, DENR 1997,a,b,c,d, 1998, 1999, 2000a,b,c,d, 2002, 2004, EBJFI 1997, Haribon 2003, NSO 2000, Olsson & Knudsen 2004. Noli Zuela, Rodne Galicha, Sibuyans Against Mining (SAM): clearblogs.com/sam; Sibuyan Island Sentinels League for Environment (SLE) Inc. and Fr. Raymun J. Festin ([email protected] ) possess valuable information.

3 Key Biodiversity Area No. 248. Mt. Guiting-guiting Natural Park (Proc. # 746) municipalities of Magdiwang, Cajidiocan, San Fernando in province of Romblon covering 15,265 hectares.

4 Picture at http://www.sanrokan.com/newsanrokan/frontpage/photos.asp?page=13

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and dogsharks), are highly productive for the island economy. More than one million kilograms of fish are harvested annually. Seaweed and shells also contribute substantially to the local economy.

Tatus/Coconut crab The Mangyan Taga-Bukid Indigenous People on the island hold a Certificate of Ancestral Domain Title covering almost 20 per cent of the island.

Forest Resources Already Threatened

Logging is officially banned on Sibuyan Island, but illegal logging takes place, driven by demand from big cities in the Philippines. As all the more accessible forests throughout the archipelago have been cleared since the late 1980s, pressures on the quality lumber of Sibuyan have increased. Middlemen facilitate the export of logs from the island, using the forest-dependent people – some, but not all, are Indigenous Peoples – to do the illegal cutting and hauling. Forest-dependent people often have limited alternative livelihood options, which would in any case lower their already low income compared to that from illegal logging (Olsson 2004). As Philippine tropical forests have already been so severely destroyed, the remnants on Sibuyan should be conserved and protected with extreme urgency, particularly against illegal logging and mining. Moreover, if enough political will can be mustered to help regenerate forests on the other islands, protecting Sibuyan’s tropical forests will be crucial to serve as a primary nursery and gene-pool for the whole country.

Proposed Industrial Mining

Sibuyan is rich in nickel (7.26 million tonnes of proven 1.56% ore) while gold, manganese, iron, limestone, and silica quartz are also present. A few people are engaged in very small-scale artisanal gold panning, primarily in the Dulangan river bed. But it is large-scale miners that are eyeing up the island. Despite its forested state, one calculation estimates that more than one-third of the island is now covered by mining permits that have been issued to Philippine, Canadian and Australian mining corporations. 5

5 When governance fails: Murder in the island. A consortium of mining companies, called Sibuyan Nickel Properties Development Corp. Ltd. (SNPDC), was formed. Among the applicants for mining activity in Sibuyan are Altai Mining, Sun Pacific, All Acacia, San Roque Mining, and Pelican Resources. http://newsinfo.inquirer.net/inquirerheadlines/regions/view_article.php?article_id=92666 See also Residents, green groups demand halt to mining on Sibuyan , By TJ Burgonio, Inquirer http://newsinfo.inquirer.net/breakingnews/regions/view_article.php?article_id=92829 & Save Sibuyan at http://www.manilatimes.net/national/2007/oct/12/yehey/opinion/20071012opi2.html

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The records are unclear, but it seems that at least 25 exploration/mining permits have been applied for. Four small-scale permits have been issued; three Mineral Production Sharing Agreements (MPSAs) are pending.

The Department of the Environment and Natural Resources (DENR) Regional Director, Rolando de Jesus, admitted that 12 large-scale mining applications were pending for Sibuyan (26 November 2007). 6

Altai Philippines, a subsidiary of Canadian Altai Resources filed an application for a Mineral Profit Sharing Agreement (MPSA, denoted as AMA-1VB-25) in 1995 with the Government of Philippines, covering an area of 1,822 hectares (4,500 acres) that is 18 kilometers northwest of the town of San Fernando. 7 An unnamed third party has 0.5% NSR (Net Smelter Return) royalty interest for all metals. As of 30 th June 2008, the MPSA had not been approved.

Pelican Resources Ltd, an Australian company, is still awaiting the approval of its MPSA for Sibuyan. Its Philippine subsidiary is Sibuyan Nickel Properties Development Corporation (SNPDC), which is owned in conjunction with Pelican’s Joint Venture partner, All-Acacia Resources Inc. and a consortium of foreign mining companies interested in Sibuyan, including Altai Mining, Sun Pacific and San Roque Mining). 8 They also aim to establish a nickel laterite direct ore shipping operation on Sibuyan Island.

Pelican announced to the ASX (Australian Securities Exchange) on the 18 September 2007 that a Memorandum of Agreement had been executed between BHP Billiton and Sibuyan Nickel Properties Development Corporation Limited (SNPDC), the holder of the Romblon Nickel Project in the Philippines with the exclusive rights to purchase the laterite nickel. BHP Billiton would be the sole financier of the exploration and drilling programme of the Romblon Nickel Project.

SNPDC has been carrying out small-scale mining, however, since May 2006. (Permits for small-scale mining are granted by the Provincial Government.) The nickel ore

6 Sibuyan Anti-mining Advocates SLAPPed , Sibuyans Against Mining, Press Release, 28th November 2007. (SLAPP stands for Strategic Lawsuits Against Public Participation ). The term SLAPP suit came from the United States, a term for the strategy employed by mining corporations to practically suppress the opposition and resistance of communities. See http://www.minesandcommunities.org/article.php?a=8348

7 http://www.altairesources.com/properties_Philippines_SibuyanNickel.htm

8 Resolution of Sen. M. A. Madrigal http://www.senate.gov.ph/lisdata/62535590!.pdf

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extracted is sold to BHP Billiton. Although there is no official exploration on the island, communities suspect that the small-scale mining operations are in fact being used to prospect and explore.

Opposition There is significant opposition from people and officials alike to the proposed mining and to the small- scale corporate mining. In August 2006, the three local mayors issued a manifesto against nickel mining on Sibuyan, while in July 2007, they passed a municipal resolution urging that an exploration permit not be granted to Rommel Ibuna. They followed this up with a letter to DENR Secretary on 7 th September 2007. 9

The use of small scale mining permits in the context of large scale operations is widespread on the Island. In relation to one mining operation Senators Pia Cayetano and Juan Ponce Enrile had urged the DENR to cancel it because it contravened the 1991 Small-Scale Mining Act, which prohibits the use of heavy machinery in areas of existing small- scale operations. Likewise, Acacia Resources operations covering a total area of 200,000 square metres and Sun Pacific covering 155,800 square metres inappropriately made use of small scale mining permits as a means to conduct exploration for large scale mining operations.

The DENR has, however, revoked the 24 th August 2007 “midnight approval” granted by outgoing DENR Secretary Angelo Reyes to allow the mining corporations to remove 69,709 trees in order to mine, in violation of the Philippine Wildlife Act. Some of the trees designated included endangered species, according to the Philippine Haribon Foundation for the Conservation of Natural Resources. The DENR’s revocation of the tree removal came only after strong local opposition, including the murder of a local Municipal Councillor, Armin Rios Marin

Armin Marin had been leading a protest of hundreds of concerned stakeholders 10 against the tree removal. At 10.30 in the morning on

9 Official opposition to the proposed mining is outlined in: (a) Magdiwang Council, 10 Mayors. Municipal Resolution No. 07-55 23 July 2007. urging the denial of an exploration permit to Rommel Ibuna. (b) Manzala, Hon. Ibarra, Nicosio Ramos, Nanette Tansingco MD (The three Mayors of Magdiwang, Cajidiocan & San Fernando) 2007. SAM: Sibuyans against mining. (c) Manzala, Hon. Ibarra, Hon. Athena B. Malapitan, Dindo C. Rios (The three Mayors of Magdiwang, Cajidiocan & San Fernando 10th. Aug 2006. Manifesto against nickel mining on Sibuyan. (d) Mayor Hon. Denisa R. Repizo, vice-Mayor, Acting Mayor letter to DENR 7 Sept 2007 urging the denial of exploration to Rommel Ibuna in Magdiwang Municipality.

10 In Sitio Olango, Our Lady of Remedies, Barangay Espana, San Fernando

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3rd October 2007, a security official of Pelican’s subsidiary, Sibuyan Nickel Properties Development Corporation (SNPDC), Mario Kingo, shot him in the mouth at point blank range. Armin Marin had been an official of the World Wildlife Fund Philippines; he was the 23 rd environmentalist to be murdered during the Macapagal- Arroyo administration and the first Parish Council President. Kingo was arraigned for murder by the Prosecutor’s Office on 6 th December 2007, along with two accomplices. A spokesperson for Sibuyan Nickel Properties Development Corporation said it was an unfortunate accident..

Bishop Jose Corazon Talaoc of the Diocese of Romblon exhorted the people to stand firm in their protest against large-scale mining on Sibuyan. Lawmakers from the Philippine Congress and Senate condemned the killing.

The World Wildlife Fund is doing important work with the indigenous communities on Sibuyan Island. In partnership with other organizations it has looked into the feasibility of payments for environmental services (PES’s) as a future viable source of income for indigenous peoples on the islands that would allowing them to pursue their traditional livelihoods. Mining projects that damage the environment could undercut these attempts to build sustainable economic models for vulnerable communities inhabiting rich biodiversity-rich areas.

Visit to Sibuyan

The authors were not able to visit Sibuyan in February 2008 due to the remote location of the island, but, in Manila, they did meet people from the Island and others who know the island well. They also carried out a lot of desk research, which was used to produce this report and the map of the island. Other members of the Working Group on Mining in the Philippines did visit the island, however, to verify details shown on the map. It is obvious that mining will cause massive damage to Sibuyan. Many vital fish breeding and fishing grounds could be affected.

As far as Free and Prior Informed Consent (FPIC) is concerned, the evidence available to the Authors indicates that Indigenous People and other stakeholders were consulted adequately or informed on what mining would do to their environment.

From the information the Authors received, they do not believe that the environmental and social study was adequate nor that the accumulative impacts were properly studied. A full Strategic Environmental Assessment (SEA) ( see Annex, C) should have been carried out by the Government in accordance with international best practise.

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Mt Guiting-guiting Nepenthes Sibuyanensis

Sibuyan Island Conclusion, Recommendation and Map

The authors believe that no mining should be carried out on Sibuyan Island which deserves its label as a National and International treasure. It has important primary tropical forest which is largely intact and is extremely rich in bio-diversity. Mining in the Natural Park and on coastal lands and in the sea, will displace and impoverish many people, including the islands indigenous peoples, on this Treasure Island and affect their human rights, damage water catchments, forests and pollute rivers and the ocean. Mining will undermine the island’s ability to feed itself or develop its significant eco-tourism potential.

No Strategic Environmental Assessment (SEA) has been carried out to manifest the cumulative impacts of all the proposed mines targeting the island and which the authors believe will be a disaster for this up-to-now remote island. Mining applications cover 42% of the whole island. The mining applications overlap with 32% of the management area of the Natural Park, including 14 sq km of the Protected Aream, 32% of mangrove, montane, primary lowland and secondary lowland forests, 45% of rice lands, 56% of coconut lands, and 43% of the Sibuyan Mangyan Tagabukid ancestral domain. Illegal small scale mining activities and stock-piling of nickel should be immediately halted and the culprit mining companies, including international ones, be held criminally liable for their illegal direct and indirect activities.

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ases cover vironmental demism demism and w w mining will ut lands. Eight ployee, gunned ewed the mining ining ining applications and 14 sq km of Twenty-two leases s s approved the Mt. nt Gloria Macapagal- nded nded by a buffer zone rights, damage forests es es and eco tourism. All feed feed itself or develop its intact and coastal waters lowland and secondary lowland forests. Thirteen le ng. ng. Sibuyan is distinguished as a global center of en e land area. Thirty-four exceptionally clean rivers ral ral Park including 14 sq km of the Protected Area. cillor Armin R. Marin, a former WWF Philippines em n Mangyan Tagabukid ancestral domains. No Strategic En eases eases overlap approximately 57 sq km (56 %) of cocon q q km or 42% of the islands. Ninety-two percent of m the WGMP visited the Philippines in 2008. They revi h potential, tourista h as notably destination. 0 0 by 2030, rely on sustainable agriculture, fisheri s s Food?” and helped prepare this map, which shows ho g g her visit to San Fernando, in April 2006, Preside m m of the total 454 sq km of the whole island, surrou mining protest mining on October 3,2007. impacts of all the proposed of impacts all mines. ean. ean. Mining will undermine the island’s ability to Asia.” On 20 February 1996, President Fidel V. Ramo rawn rawn farming. Over half of the coral reef cover is ng will displace many people and affect their human ish ish areharvested annually. SibuyanPhilippines Island, Romblon, Sustainable in Development Sustainable Miningand Industry biodiversity biodiversity and is often called “the Galapagos of Sibuyan Island is home to majestic Mt. Guiting-guiti down by a mine while guard down leadingaby peacefulanti- Guiting-Guiting Natural Park. It conserves 154 sq k These These two pages are dedicated to the memory of Coun in which which in use controlled. is land Primary forests cover 120 sq km, mangroves, which are fished. There is is also 26%small-scale p of th rich shelter 1 fisheries.than More kg of million f 56,541 Sibuyanons (2007), estimated to rise to 90,00 arable lowland is needed for food production. Durin Arroyo stated Arroyo that Sibuyan a economic has high growt There There are 24 Mining Applications. These cover 191 s overlap overlap with 32% of the management area of the Natu mining leases overlap 36 sq km or 43% of the Sibuya cover cover 82 sq km approximately or 10 sq 32% km (45%) of of rice mangrove, lands and 15 montane, l primary plans, prepared a report “Philippines: Mining versu Assessment has been carried has been outAssessment on the cumulative National National and international experts commissioned by impact on the island. The experts believe that mini and and water catchments, and pollute rivers and the oc significant eco tourism potential. significant tourism eco

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WE DEMAND THF IMMEDIATE PULL-OUT OF BRITISH MINING INVESTMENTS IN THE PHILIPPINES

BHP BILLITON OUT OF SIBUYAN ISLAND, PHILIPPINES!

The murder of Councilor Armin Marin of San Fernando in Sibuyan Island, on October 3, 2007, reflects the heinous character of mining operations in the island. As powerful mining interests will not tolerate opposition and are determined to ride roughshod over the popular opposition. Councilor Marin as a staunch defender of Sibuyan people’s resistance against destructive mining had to pay the price.

He was mercilessly gunned down in broad daylight, on October 3, 2007 as he was leading a picket/protest to denounce and dramatise the destructive operations of several mining exploration activities in the island and to reassert the community’s sovereign will through their resistance since 2005, on the grounds that mining sorely lacks social acceptability and community consent.

The people, citizens of Sibuyan Island condemn this cold-blooded and brutal killing of a defenseless public official who was reportedly shot in the mouth by simply leading his people in their peaceful and legal protest. We, the people of Sibuyan, hereby bring the case of our slain public servant and call on the stockholders of BHP BILLITON to pull out their mining investments in Sibuyan and in the Philippines. We particularly appeal to the stockholders of BHP Billiton to urge the company not to engage in unethical, deceitful, and blood-tainted mining contracts and investments.

We know and we trust that the majority of the company’s stockholders are well-meaning, peace -loving citizens who mean no harm against other peoples and who may have been ill- informed about where their investments ultimately go. Every ounce of mineral mined in Sibuyan and elsewhere in the Philippines is being paid for dearly by the defenseless and powerless host communities in terms of human rights violations, irreversible environmental costs and destruction of communities and livelihoods.

BHP Billiton’s recent signing of a Memorandum of Agreement with Pelican Resources Ltd. and Sibuyan Nickel Properties Development Corporations for an Off-take Agreement for the purchase of products extracted from the project operations in effect signifies its sense of impunity and complicity to the various violations and atrocities to human rights and environment in a mad rush for minerals extractions.

We, therefore, call on the stockholders of BHP Billiton and other British Mining investments to immediately pull-out their investments in Sibuyan and in the Philippines. Your solidarity and support will greatly help us, the people of Sibuyan and other communities harmed BHP Billiton’s malpractice in the Philippines - to finally reclaim our basic entitlement to our lands and communities, assert our sovereignty over our natural resources, defend our patrimony and determine our own sustainable path to development. Furthermore, your strong support will force our own government to rethink its policy promotion of mining and to look into the legitimate grievances of the local communities and respect local government units’ right to determine their own path to development.

A copy of this Petition, with more than 2,000 signatories, was submitted to BHP Billiton at the AGM Queen Elizabeth II Centre, London, 25 th October 2007

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ANNEX Entire Report Table of Contents

Foreword to Second Mining Report vii Message from Senator Aquilino Pimentel Jr . viii Message from Bishop. Zacarias C. Jimenez, DD ix

EXECUTIVE SUMMARY AND RECOMMENDATIONS xi

Summary recommendations to the Philippine Government xvi Summary recommendations to Mining Corporations xxi Summary recommendations to Development Agencies, NGOs, World Bank xxiii Summary recommendations to the Investor Community xxv Summary recommendations to Mining-Impacted Communities xxvii

INTRODUCTION 1

Chapter 1: Mining and Food Security 4 1.1 The Importance of Rice 4 1.2 The 2008 Food Price Frenzy 5 1.3 Peak Oil, Peak Food, Peak Phosphate, Peak Water & Peak Stable Climate 7 1.4 Why Does the Philippines Import Rice? 8 1.5 Reasons for Decreased Domestic Rice Production 9

Chapter 2: Mining and Forests 11 2.1 Deforestation Harms Rice and Fisheries 11 2.2 The Need for Watershed Conservation 13 2.3 Deforestation Increases Poverty 13 2.4 Indigenous Peoples and Forests 13 2.5 Rainforestation 14

Chapter 3: Mining and Marine Resources 15 3.1 Mining and Fisheries 15 3.2 Pollution From Mining 15

Chapter 4: Flawed Government Policy 18 4.1 Scale of the Mining Problem 18 4.2 Conflict of Interest 20 4.3 DENR Promotes Mining and Demotes Environment 20 4.4 Corruption in Environmental Governance 22 4.5 Philippine Mining Act, 1995 23 4.6 Separate Exploration from Exploitation 29 4.7 Post-Mining Rehabilitation Must Be Enforced 29 4.8 Government and Society Split on the Benefits of Mining 32

Chapter 5: Indigenous Peoples 36 5.1 Indigenous Peoples and the National Commission on Indigenous Peoples 36 5.2 The Role of the National Commission on Indigenous Peoples 37 5.3 Rights of Ownership and Ancestral Domain 38 5.4 Right to Develop Lands and Natural Resources 38 5.5 The Right to Benefits 38

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5.6 Protections Afforded by Indigenous Peoples’ Rights Act 39 5.7 Free and Prior Informed Consent 39 5.8 FPIC and ESIA 41 5.9 Indigenous Peoples need Environmental and Social Impact Assessments 42

Chapter 6: Human Rights, Militarization and Mining 44 6.1 Human Rights and Mining 44 6.2 Official Reports Documenting Human Rights Violations 45 6.3 Human Rights, Civil Society and the Catholic Church 47 6.4 The Human Security Act 48 6.4 Further Militarization of Mining Projects and Investment Defense Forces 49 6.5 The Relationship Between DENR and NCIP 51 6.6 DENR Engulfs NCIP 51

Chapter 7: Philippine Mining Economics 53 7.1 Deficiencies in Mining Economics 53 7.2 Internalizing Currently Externalized Costs 54 7.3 Policy Options for Internalization 54 7.4 Benefit Allocation 55 7.5 The Resource Curse 55 7.6 Impact-Benefit Agreements 57 7.7 Assessment of Cost Externalization in Philippine Mining 59 7.8 Mining is the wrong Engine for Growth 61

Chapter 8: The Position of the International Agencies 70 8.1 The World Bank Group 70 8.2 International Development Assistance to DENR 72

FIELD TRIP CASE STUDIES 73

Case Study 1: Iron Ore & other Minerals, Midsalip, Zamboanga del Sur - Mindanao Island 75 Background 75 Water, Food and Livelihoods 77 The Threat of Mining in Midsalip 79 Potential Impacts and Opposition 82 Midsalip Visit 84 Midsalip Conclusion, Recommendation and Map 85

Case Study 2: Copper and Gold Mining Zamboanga del Norte - Mindanao Island 94 Background 94 Mining damage 95 Future plans? 98 Sibutad and Libay Visit 99 Sibutad and Libay Conclusion, Recommendation and Map 100

Case Study 3: Copper and Gold Mining in Tampakan, South Cotabato – Mindanao Island 106 Background 106 Threat of a huge open-pit copper and gold mine 108

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Uncertainty Raising Fears 113 Visit to South Cotabato 118 South Cotabo Conclusion, Recommendation and Map 121

Case Study 4: Nickel and Cobalt in Davao Oriental – Mindanao. The Hallmark Project 126 Background 126 Proposed Mining 127 Environmental and Social Impacts 129 Opposition and Deficiencies in Consultation 31 Visit to Pujada Bay / Mt Hamiguitan 134 Pujada Bay Conclusion, Recommendation and Map 135

Case Study 5: Nickel Mining – Mindoro Island 142 Background 142 Mining Proposal 143 Opposition 144 Indigenous opposition 145 Visit to Mindoro 148 Company continues to plan 149 Governor Issues Order to Stop Mining Activities 156 Mindoro Conclusion, Recommendation and Map 161

Case Study 6: Gold and Nickel Mining - Sibuyan Island 172 Background 172 Forest Resources Already Threatened 173 Proposed Industrial Mining 173 Opposition 175 Visit to Sibuyan 176 Sibuyan Island Conclusion, Recommendation and Map 177

Recommendations to the Philippine Government 181 Recommendations to Mining Corporations 191 Recommendations to Development Agencies, NGOs & the World Bank Group 196 Recommendations to the Investor Community 199 Recommendations to Mining-Impacted Communities 202

Annex A: Church Declarations and Position Papers on Mining 206 Annex B: Civil Society Reports on Human Rights Violations 212 Annex C: Strategic Environmental Assessment (SEA) 213 Annex D: Health Impact Assessment (HIA) 217 Annex E: Literature Cited and Guide to Further Information 221 Annex F: Mines and Communities (MAC): The London Mining Declaration. 246 Annex G: Geohazards and Earthquakes in the Philippines 251 Annex H: Philippine Biodiversity Conservation Priorities 260

183 About the Authors

Robert Goodland is an environmental scientist specializing in economic development. He advised the World Bank Group from 1978 through 2001. He then became the technical director to H.E. Dr. Emil Salim ’s independent Extractive Industry Review (eir.org) of the World Bank Group ’s portfolio of oil, gas and mining projects. He was elected president of the International Association of Impact Assessment, and Metropolitan Chair of the Eco logical Society of America. He was awarded the World Conservation Union ’s Coolidge medal in October 2008. ([email protected])

.. Perhaps reluctan tly we come to acknowledge that there are also scars which mark the surface of our earth: erosion, deforestation, the squandering of the world’s mineral and ocean resources in order to fuel an insatiable consumption. Some of you come from island nations wh ose very existence is threatened by rising water levels; others from nations suffering the effects of devastating drought. God’s wondrous creation is sometimes experienced as almost hostile to its stewards, even something dangerous. How can what is “good” appear so threatening? ...My dear friends, God’s creation is one and it is good. The concerns for non-violence, sustainable development, justice and peace, and care for our environment are of vital importance for humanity. His Holiness Pope Benedict XVI, 23rd World Youth Day, Sydney, Australia, July 12-21, 2008

Photos if the fact-finding trip can be found on: http://workinggrouponmininginthephilippines.blogspot.com

Working Group on Mining in the Philippines (WGMP) 28 Redington Road, London, NW3 7RB [email protected] 1