A PRIMER ON THE TAMPAKAN MINES AND THE MINDANAO ECOLOGY UnderMining Lies in the Philippines What is the legal basis of large-scale mining in the Philippines? The Philippine Constitution of 1987 (Article XII, Section 2) and the Philippine Mining Act of 1995 (RA 7942) govern the exploration, mb.com.ph development, processing and utilization of mineral resources in the Philippines. Under the Introduction Constitution, the State owns all mineral resources. However, the This primer is a handy guide to understanding the value of State may enter into agreements Mindanao’s environment and the imperatives of environmental justice with private contractors for the leading to a categorical and strong position against the SMI Gold-Copper exploitation of mineral resources Mining Project in Tamapakan South Cotabato. through a Financial and Technical In the hope of educating various communities and advocating to a Assistance Agreement (FTAA), broad audience in order to build constituencies that support the call to Mineral Production Sharing stop the Tampakan Mines, this primer may be used by teachers, students, Agreement (MPSA), Co-Production community leaders, and advocates. This comes in a question and answer Agreement (CPA) and Joint Venture format for easy navigation which can be utilized during small group Agreement (JVA). The Mining Act discussions, informal caucuses, classroom lectures and other platforms of and its Implementing Rules and conversations including the social media. Regulations (DENR Administrative Order No. 2010-21) defne these The primer is designed in order to safeguard our constitutional right agreements, delineate the various 1] to life (Article III, Section 1, 1987 Constitution); 2] to the promotion and mining rights recognized in the protection of our health (Article II, Section 15, 1987 Constitution); 3] to a Philippines and provide the balanced and healthful ecology in accord with the rhythm and harmony requirements for acquiring these of nature (Article II, Section 16, 1987 Philippine Constitution); and 4] to the mining rights. preservation of waters, minerals, coal, petroleum, and other mineral continued on Page 3 oils, all forces of potential energy, fsheries, forests or timber, wildlife, continued on Page 2 Introduction fora and fauna, and other natural 3. “(146) It is essential to show the survival of their culture and resources which are owned by the special care for indigenous identity. State (Article XII, Section 2, 1987 communities and their cultural Constitution) sanctifed by our traditions. They are not merely 4. Many of the points raised in this solemn duty to protect the rights one minority among others, but primer also rely on the doctrinal to environment of the generations should be the principal dialogue precedence of “Precautionary yet unborn under the doctrine of partners, especially when large Principle,” enunciated by the “intergenerational responsibility” projects afecting their land Supreme Court in the case of (Oposa vs. Factoran, GR No 101083, are proposed. For them, land ISAAA vs. Greenpeace Southeast July 30, 1993). is not a commodity but rather Asia (G.R. No. 20927, 8 December a gift from God and from their Apart from the legal 2015) stating that when human ancestors who rest there, a foundations to environmental activities may lead to threats sacred space with which they rights, this primer takes inspiration of serious and irreversible need to interact if they are to from Pope Francis’ ‘Laudato Si’ damage to the environment that maintain their identity and which provides, thus: is scientifcally plausible but values. When they remain on uncertain, actions shall be taken 1. “(29) Underground water sources their land, they themselves to avoid or diminish that threat. in many places are threatened care for it best. Nevertheless, SMI Tampakan Project will by the pollution produced in in various parts of the world, threaten and cause harm of an certain mining, farming and pressure is being put on them unimaginable magnitude as to industrial activities, especially to abandon their homelands prejudice the life, property, and in countries lacking adequate to make room for agricultural health of the peoples of South regulation or controls. It is not or mining projects which are Cotabato, Sultan Kudarat, only a question of industrial undertaken without regard for Davao del Sur and Sarangani waste. Detergents and chemical the degradation of nature and provinces and a huge portion of products, commonly used in culture.” Mining generally has Mindanao as well. As such, the many places of the world, displaced indigenous peoples large-scale mining project must continue to pour into our rivers, communities and has destroyed be stopped and abandoned. lakes and seas.” Sacred to their sacred spaces threatening human existence is our right to water, it being a social asset and therefore inextricably essential to our right to life. 2. “(51) The export of raw materials to satisfy markets in the industrialized north has caused harm locally, as for example in mercury pollution in gold mining or sulphur dioxide pollution in copper mining.” Mining has created an ecological debt of the developed countries to the developing countries from where they plunder resources to feed the voracious appetite of rich countries in a globally capitalist market. Page 2 | A Primer on the Tampakan Mines and the Mindanao Ecology Getting to Know SMI Who is SMI? Saggitarius Mines Inc (1989) was originally a joint venture between Xstrata Copper (62.5%), Indophil Resources NL (34.2%) and the Alsons Corporation (3.3%) when it was awarded in 1995 with a Financial and Technical Assistance Agreement to operate the project. By 2017, acquisitions by Alsons and Alcantara Group UnderMining Lies in the in 2015 and the sale of Xstrata Glencore has made the SMI 100% Philippine owned , with shares Philippines largely owned by the Alcantara Group of Companies. What is the legal basis of large-scale mining How big is SMI? The Constitution provides As an exception to this Reportedly the largest foreign that all lands of the public domain, nationality requirement, the investment at $5.9 billion, and water, minerals, coal, petroleum, Constitution authorizes the was projected to provide 9,000 and other mineral oils, all forces of President of the Philippines to jobs during construction phase potential energy, fsheries, forests enter into agreements with foreign- and 2,000 jobs during the regular or timber, wildlife, fora and other owned corporations involving phase, with billions in taxes a natural resources are owned by the either fnancial or technical year. https://www.linkedin.com/ state. The exploration, development assistance, for the large-scale company/sagittarius-mines-inc./ and utilization of these natural exploration, development and Investments as of 2016 were resources are also under the full utilization of minerals, petroleum reported to be PhP1.1 Billion (as of control and supervision of the state. and other mineral oils. Dec. 2016) with Taxes and Fees paid However, the state has the option Other Philippine laws also at PhP37.2M (national and local). of entering into co-production, govern investments in the Philippine Employment generated was at 144. joint venture or production-sharing mining industry like Executive agreements with Philippine Expenditures from 2007-2011 Order No. 79 (Institutionalizing citizens or Philippine corporations were reported to be at PhP 18 billion and Implementing Reforms in or associations. At least 60% of (U$416 million) where Indophil the Philippine Mining Sector, the capital of a corporation or had spent Au$27 million for the Providing Policies and Guidelines association must be owned by exploration activities prior to the to Ensure Environmental Protection Philippine citizens before it can entry of Xstrata Copper in 2007. and Responsible Mining in the be considered as a Philippine continued on Page 4 Utilization of Mineral Resources). corporation or association. continued on Page 4 A Primer on the Tampakan Mines and the Mindanao Ecology | Page 3 Getting to Know SMI How big is SMI? The entire FTAA covers 28,539 hectares or larger than Batanes island (20,930 has) and nearly the size of Samal island (30,130 has) and Camiguin island (29,187 hectares). Aside from the Final Mining Area (FMA) of 9,605 hectares, the FTAA includes the resettlement area, the OLI (Ofease infrastructure) which includes a power station and flter plant. continued on Page 5 UnderMining Lies in the Are we against mining? Philippines We recognize the contribution of the mining industry to the development of breakthrough Is large scale mining appropriate technologies used in manufacturing in the Philippines? gadgets, jewelry, cars, building, appliances, etc. However, mining should be undertaken only in No. Large scale mining unlike the central plains of countries where people, the planet operation is not compatible Australia, Canada or China where and other populations will not be with the archipelagic make- mining tenements are located, they adversely afected and harmed. up of the Philippines being an are far from human settlements island ecosystem. These kinds and rich vegetation. The entire We are against mining IN of ecosystems are vulnerable Philippine archipelago is also one THE Philippines considering to destruction brought about huge watershed system. Under this its geographic and topographic by extractive activities since framework, we must address the vulnerabilities. In island population of peoples and species highest priority