All for the Greed of Coal

24 | a l l f o r t h e g r e e d f o r c o a l

2009


ALL FOR THE GREED FOR COAL Three Evacuations of Surigao Sur IP Communities under the US‐Gloria Macapagal‐Arroyo Regime


Introduction

he mountain areas of Caraga, part of the Diwata Mountain Ranges, is said to have the largest gold and nickel deposits in the country, making it one of the country’s major mining

areas. The Gloria Macapagal‐Arroyo Regime is bent on exploiting these resources at the expense not only of the lumad people but those living on the foot of these ancestral lands. The region is covered by 41 mineral production sharing agreements (MPSAs), with 15 of these in the Dinagat Islands, 13 in Surigao del Norte, eight in Surigao del Sur, and one each in Agusan del Norte and Agusan del Sur. All in all, these 41 MPSAs cover a total of 96,186 hectares, or 5.05 percent of Caraga’s 1.9 million hectares.

Among the largest mining firms operating in Caraga are Tag‐anito Mining, Platinum Group, and Oriental Synergy Mining, all in Surigao del Norte; SR Metals Inc. in Agusan del Norte; and Philsaga in Agusan del Sur.

Particular attention of the Arroyo Regime and her Department of Energy is on Surigao del Sur with its large deposits of gold, nickel, chromite and coal. According to the report of the Mines and Geosciences Bureau for the 5th Caraga Mining Summit held last April 23‐24, 2009, Surigao del Sur has the largest number of exploration permit applications in the country, amounting to 35 applications as of March this year. It is followed by Agusan del Sur, with 27 applications; Surigao del Norte, with 22; Dinagat Islands, with 21; and Agusan del Norte, with 13.

Surigao del Sur has also the most number of applications for production‐sharing agreements (APSAs) in the region, with 19;

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CONTINUING STRUGGLE TO DEFEND ANCESTRAL LANDS

he ancestral land is the lifeblood of the lumads, to separate land from them is tantamount to robbing them of their lives. And so they continue to resist any attempts to

plunder and destroy their ancestral lands. They refuse to join the TFG‐BF declaring that infighting between lumad tribes ended long ago and demands the end to militarization in their communities. As they continue to suffer repeated displacement from the communities, homes, schools and livelihood that they have persevered to establish and develop, they recognize that it is only through their determined unity that they can harness their strength to continue protecting their ancestral domain for future generations. References:

1. Philippine Daily Inquirer, “13 Companies Eye Coal Mining Contracts, 18 Prospects Nationwide” By Amy R. Remo, June 10, 2009

2. Philippine Daily Inquirer, “Lodestar, OVMPC Sign Deal”, July 4, 2009 3. Business Mirror: “DOE signs 11 coal‐operating contracts amounting to

$580M” By Paul Anthony A. , September 16, 2009 4. Department of Energy, Philippine Energy Contracting Round – 2009 5. Department of Energy Coal Areas for Offer – 2005, 2007, 2009 6. Department of Energy “Energy Independence” Presentation 7. Abacus Consolidated Resources and Holdings Inc. website 8. Benguet Corporation’s 2009 QUARTERLY REPORT to the SEC. 9. Bulatlat “In Surigao and Caraga Region, a Brutal Push for

Investments”, September 22, 2009 10. Steel Guru “Lodestar Holdings To Develop Surigao Coal Mine”, June 14,

2009

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Returning Evacuees and supporters made to stop and sign a logbook at a military checkpoint at the entrance of the communities by elements of the 58th IB PA

Teachers’ cottage and a classroom in Han‐ayan ransacked 3 | a l l f o r t h e g r e e d f o r c o a l

followed by Agusan del Norte, with 18; Agusan del Sur, with 17; Surigao del Norte, with 12; and Dinagat Islands, with five.

Majority of these mining applications and operations cover the mountainous areas of the Region where the ancestral lands of the lumad people are located.


THE LUMAD PEOPLE OF SURIGAO DEL SUR

ike most the indigenous people in the country, the Manobo tribes of Surigao

del Sur were driven away from the lowlands towards the forested areas. There they lived by the bounty of the earth, harvesting only what they needed, preserving the gifts of nature for their future generations. They suffered human rights violations and dislocations during the 80’s prompting them to unite and defend their rights as persons and as indigenous people. The lumad in Lianga, San Agustin, Marihatag, Cagwait, Tago and San Miguel organized themselves and formed the Malahutayong Pakigbisog Alang sa Sumusunod (MAPASU) (Persevering Struggle for the Next Generation) in the early part of the 90’s when militarization and accompanying human rights violations happened. Through the help of the then Tandag Diocese Apostolate on Tribal Filipinos and Peasants, they were able to establish agriculture and cooperatives in their communities. At present, the people in these lumad communities no longer rely on rattan alone for livelihood. They have diversified their means of livelihood through the development of agriculture and sustainable extraction of forest resources. They have become one of the bigger suppliers of abaca in the province and maintain farms that provide their daily food needs while harvesting forest products like rattan in certain seasons. They are on the road to

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DOCUMENTED HUMAN RIGHTS VIOLATIONS

1. Illegal Checkpoints 2. Food blockade 3. Violation of Domicile 4. Threat and Intimidation 5. Forced Recruitment/Conscription 6. Use of civilians as shields 7. Use of civilian facilities such as schools and homes as

military barracks during military operations and endangerment of civilians

8. Forced Evacuation 9. Violation of Children’s Right to Survival 10. Violation of Children’s Right to Protection or Safety by the

State or its Agents 11. Violation of Children’s Right to Development 12. Branding of legitimate organizations and institutions as

“fronts of the Communist Party of the Philippines”, making them military targets during operations

PRESENT CONDITIONS The more than 1,700 Lianga and San Agustin evacuees returned to their communities last August 30, 2009 after the 58th IB PA’s troop pull‐out. They were accompanied by more than 200 members of people’s organizations, human rights advocates, the religious and Partylist representatives Luz Ilagan and Joel Maglungsod. They went home to destroyed crops, ransacked houses and violated schools. Atty. Leila De Lima of the Commission on Human Rights also accompanied the evacuees and promised to investigate the complaints of the lumad people.



establishing a self‐supporting economy while preserving the ancestral land. Sixteen (16) community schools have been set up and a Lumad highschool was built through the leadership of the Malahutayong Pakigbisog alang sa Sumusunod (MAPASU), the organization of 22 lumad communities, and with the help of the Tribal Filipino Program of Surigao del Sur (TRIFPSS) and Alternative Learning Center for Agricultural and Livelihood Development (ALCADEV) Inc. A Demonstration Farm has been established by the schools for the practice of organic farming.

THE RAPE OF THEIR ANCESTRAL LANDS

owever, greed for profit of multinational companies and the blatant disregard of lumad interests by the government continue unabated. For them, the riches in

the ancestral lands of the lumad people are too good to resist. In the early 1950’s the American company, Lianga Bay Logging Company Inc., profited from the forests of Lianga until the 90’s. For years now multinational companies have been eyeing the mineral resources of the Andap Valley Complex situated at the center of the ancestral lands. The Andap Valley Complex has been studied and discovered to have viable commercial mining resources, the biggest bulk of which is gold and coal. In the early 80’s several mining companies were exploring hectare upon hectare within the Andap Valley Complex. More known among these mining companies were Benguet Corporation which now owns 12 coal blocks totalling 12,000 hectares and SEMIRARA Coal Corporation. Other mining companies were Atlas Mining Corporation covering areas in the

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municipality of San Miguel; Montenegreen Mining Corporation in Marihatag; and Semirara and Sabina Mining Corporation in San Agustin and Marihatag.

On July 5, 2005 Coal Operating Contract (COC) # 140 was awarded by the DOE to the state owned Philippine National Oil Company subsidiary, PNOC‐Exploration Corporation (PNOC‐EC). The project covers 3 coal blocks, totalling 3,000 hectares in the Municipality of Tago, Surigao del Sur. The coal mine area lies between the Lanuza Bay and Lianga Bay of Surigao del Sur. It has estimated potential coal resources of 42 million MT.

The PNOC‐EC and the National Commission on Indigenous People (NCIP)‐CARAGA tried to secure a Free, Prior and Informed Consent (FPIC), a requirement for mining, prior to its full operation but the lumad in the area refused and the coal project


On August 16, 2009 an group composed of representatives from the provincial government, DSWD, DILG, religious sisters, Social Action Center of the Diocese of Tandag, NGOs and community members went to the communities to validate the military’s claim of troop pull‐out. They saw military men in Purok 5, San Isidro staying in civilian houses.


They evacuated to the Diocesan Pastoral Center and stayed for 40 days demanding military pull‐out so they can return to their livelihoods, communities and schools.


was put on moratorium on October 12, 2006. The PNOC‐EC however, sited insurgency as the cause for shelving of the project.

It again tried to procure the lumad community’s FPIC in 2007, calling the tribal elders to a meeting called by the Tago Municipal LGU. It was attended by the local representatives of the PNOC‐EC, NCIP, soldiers from the 58th IBPA and municipal LGU officials. Fearing reprisal for their refusal to sign the FPIC, about 50 families evacuated their community.

On August 31, 2005 the Department of Energy put areas in Tandag‐Tago‐Lianga‐Bislig of Surigao del Sur in its First Coal Contracting Round. In 2006 areas in Cagwait‐Marihatag; San Agustin‐Lianga and Tandag‐Tago, Surigao Del Sur were included in areas for coal mining in its Second Coal Contracting Round. Awarded with Coal Operating Contracts (COC) in 2007 were:

1. Philippine National Oil Company ‐ Exploration Corporation (PNOC‐EC): Tago: Exploration

2. Benguet Corporation: Lianga, Marihatag & San Miguel, Surigao del Sur: Development and Production

3. Great Wall Mining & Power Corp. (*former COC of CAREMINER): San Miguel, Tandag, Surigao del Sur: Exploration

4. Abacus Consolidated Resources & Holdings Inc.: Tandag, Surigao del Sur: Exploration


On January 10, 2007 Abacus Consolidated signed a new Coal Operating Contract with the Department of Energy for the exploration and eventual production of coal in Tago and Marihatag, Surigao del Sur.

In October of the same year, the company created Abacus Coal to focus on the full‐scale exploration of the seven coal blocks. According to GMA News on line dated August 25, 2009 the coal sites are rumoured to have 182 million tons of coal reserves estimated at P2.6 billion.

On that same year Lodestar purchased, along with Music Semiconductors, Abacoal from Abacus Consolidated Resources Holdings Inc. Appraisers has valued the Abacoal property at about P2.7 billion.


Several attempts were made by the military to enter the evacuation center in Lianga like an intelligence operative climbing over the wall of the gym at 3 o’clock dawn, pretending to be a mental patient (nagpa‐buang‐buang) while carrying a digital camera. Since July 21, uniformed and armed soldiers were stationed outside the gym while others in civilian clothing have followed some of the residents who were went out of the gym to the homes of their nearby relatives.

Col. Fabian and Lt. Col. Pedralvez, in their press releases and media interviews, have consistently accused the ALCADEV staff of manipulating and lying to the communities against the military.

On July 28, the evacuees fearful of military visiting them in the isolated Lianga Gym, transferred to Tandag. They were stopped by military men and the police 11 times, interrogated and the males made to undress making the 2 hour travel to Tandag become 10 hours.


Program. They also gave a mimeographed flyer with cartoons depicting the process of surrender. They encouraged the children and youth to get the guns of the NPA who visit them because they offer a good price for firearms that are turned over to the military. They told children to convince their ate’s and kuya’s to surrender.

A team of military men focused particularly on the students of ALCADEV. They distributed the brochures and flyers to all the students. Monitoring of the staff and learners at the military post across the ALCADEV clinic was particularly active. Some students and teachers saw the soldiers taking their pictures and using binoculars pointed at the school.

The insistence of the soldiers that the community members surrender because they were NPA supporters; their allegations that their organization MAPASU, their school ALCADEV and the program they work with, TRIFPSS, were communist fronts; the proximity of the armed soldiers to their homes and schools where their children spend their day; the armed patrols; the aggressive recruitment to the TFG–BF ‐‐‐ these created an untenable atmosphere of anxiety and insecurity among the residents since this campaign was ostensibly being conducted with them as targets. They were also going hungry because it became more and more difficult and expensive to bring food to the community. The soldiers were also putting up more restrictions at the checkpoints.

On July 18, the communities decided to leave their homes. At around 7 am, residents and students from 14 communities, bringing what meager belongings they could carry and dragging their farm animals, started the trek to the Lianga Municipal Gym. About 1,400 men, women and children arrived at the evacuation center at around 6:30 in the evening joining the 346 evacuees from Purok 5, Kamanggahan and Upper Oregon.


In a news item released on June 10, 2009 through the Philippine Daily Inquirer, Lodestar Holdings Investment Corp. signed a memorandum of agreement with Oriental Vision Mining Phils. Corp. (OVMPC) for the development of the former’s 7,000‐hectare coal mine in Surigao del Sur. OVMPC is owned by businessman Salvador B. Zamora II, who supposedly invested P300 million in the project.

Meanwhile Benguet Corporation continues to eye the San Miguel, Lianga and Marihatag areas for coal mining. According to its 2009 First Quarter Report, Benguet Corporation has “initiated activities to obtain the ECC necessary to start development and mining by open pit.” The Romualdezes, President Arroyo’s close political allies, own 44 percent of Benguet Corporation.

Last April 14 the DOE again announced coal areas for offer under its 4th Philippine Energy Contracting Round (PECR), again including the mountain areas in Tandag‐Tago, San Agustin‐Lianga and Cagwait‐Marihatag. These cover 11,000 hectares located in the Andap Valley Complex, right in the middle of the ancestral lands of the indigenous people.



and Development” has done its survey of the community. He said that they were not after the NPA but was there to offer development to the community and to bring them back to the folds of the law. After about 30 minutes, five soldiers put up camp in the entrance of the school and were seen setting up binoculars and what looked like camera equipment.

Upon the soldiers’ arrival, they started to recruit residents to the TFG–BF. Datu Tayadan, the tribal chieftain of Han‐ayan, was approached by 1Lt. Marmol who told him that it would be to his advantage if they are able to establish the TFG–BF in the community because they are going to give them firearms. When Datu Tayadan refused to arm the community, he was told, “Organized ug solid gyud mo sa NPA. Magsurrender na lang kamo.” (You are really organized and solidly support the NPA. It is better if you surrender).

The military men distributed brochures of the Office of the President on the Peace Process (OPAPP) on the Social Integration


Oregon in Brgy. St. Christine in the Municipality of Lianga in Surigao del Sur. With them were armed elements belonging to Task Force Gantangan ‐ Bagani Forces (TFG–GF). They aggressively recruited members of the community to the TFG–BF. Marcos Vocales, a known armed lumad from Brgy. Bolhoon, San Miguel, Surigao del Sur, was introduced by 58th Infantry Battalion Commander Lt. Col. Benjamin Pedralvez as the “battalion commander” of the TFG‐BF. Vocales conducted house‐to‐house surveys, himself fully armed along with his armed guards. He targeted community leaders, telling them to encourage their community to enlist, reprimanding them and accusing them of being NPA members when they refused.

On June 18, finding the situation untenable because of hunger and tension, residents of Upper Oregon Kamangahan, and Purok 5 evacuated. Only 10 families remained in Purok 5, Upper Oregon.

About 346 individuals arrived at the Lianga Municipal Gym after trekking the 16 kilometers on foot from their communities. The evacuees stayed at the Lianga Municipal Gym.

On July 11, in the early dawn hours, about 100 soldiers from the 58th IBPA arrived from the direction of Diatagon proper. Some set up their hammocks in residents’ houses and in nearby forested areas in Km. 9 and began their patrol. They were joined by 100 soldiers

On July 13 at around 10 am, about 30 soldiers from the 58th IBPA Bravo Company led by 1Lt. Jesson Marmol arrived in Km. 16. They went from house to house, asking residents about the presence of the NPA in the area.

A certain 1Lt. Marmol talked with one of ALCADEV’s staff in the school grounds and said that they were there to implement projects to be determined after their “Research Team for Peace


On September 16, 2009, Oriental Energy and Power Corp. (OEPC) was awarded coal operating contracts to explore for potential coal in Surigao del Sur. Oriental Energy is expected to infuse about P82.99 million in Cebu, another P82.99 in Quezon and P49.2 million In Surigao del Sur for a two‐year work program. DOE also awarded contracts to ASK Mining and Exploration Corp. to explore coal prospect areas in Cagwait‐Marihatag, Surigao del Sur. At present, there are 6 Coal Operating Contracts (COC) in Surigao del Sur awarded to:

1. Philippine National Oil Company ‐ Exploration Corporation (PNOC‐EC): Tago: Exploration

2. Benguet Corporation: Lianga, Marihatag & San Miguel, Surigao del Sur: Development and Production

3. Great Wall Mining & Power Corp. (*former COC of CAREMINER): San Miguel, Tandag, Surigao del Sur: Exploration

4. Abacus Consolidated Resources & Holdings Inc.: Tandag, Surigao del Sur: Exploration


5. Oriental Energy and Power Corp. 6. ASK Mining and Exploration Corp.

PERSECUTION To remove obstacles in the total exploitation by big businesses of the riches in ancestral lands of the lumad, the Macapagal‐Arroyo regime implemented the National Internal Security Plan Application on the Indigenous Peoples (NISP‐IP) with Operational Plan (Oplan) Bantay Laya (OBL) I and II. This campaign, targets the defeat of the communist insurgency in the countrysides, but more importantly, it removes all opposition to the plunder of big business particularly logging and mining in the ancestral lands. This means persistent military operations, increased recruitment of the lumad people into the regular armed forces, and the emergence of more and more paramilitary groups in the guise of traditional tribal warriors such as the bagani and alimaong, but are actually no more than mining or logging concession guards. Special operations teams of the Armed Forces of the Philippines work hand in hand with Task Force Gantangan‐Bagani Force (TFG‐BF), vilifying genuine lumad people’s organizations and their supporters and recruitment in IP communities. Once the TFG‐BF is organized within the IP communities, the people could be easily coerced into giving their “Free”, Prior and Informed Consent to signify their pemission to the mining companies to operate. In consonance with this, President Gloria Macapagal‐Arroyo announced in February 2008 the creation of the Investment Defense Force (IDF), a special unit of the AFP tasked to safeguard mining operations and investments. The IDF’s function, according to Arroyo, is that of a “protective shield” for power and mining facilities. She again emphasized this during her visit to Siargao in April 2008 adding that she has ordered an increase in military deployment in Caraga to protect mining companies.


Target: Andap Valley Complex In May to April of 2005, a massive military operation was launched by the 6TH Scout Rangers and the 58th IB PA in 14 lumad communities within the municipalities of Cagwait, Tago, Marihatag, San Agustin and Lianga victimizing 1,234 individuals or 204 families. These military operations resulted to 75 documented human rights violations including the killing of Jessie Bacasmas, the enforced disappearance of 4 residents in the hands of the military and torture of several. On November 2007 a massive military operation was again conducted by the 58th IB PA in the lumad communities of San Miguel, Tago, San Agustin, Marihatag and Lianga. The military men encamped in the lumad schools and harassed residents and students. They were prevented from going to their farms and threatened with retaliation if military men will be killed by NPAs. Several communities were shelled. 391 lumad families or 2,175 individuals evacuated to six (6) evacuation centers in Lianga, San Agustin and Tago, all of Surigao del Sur. There were 65 documented cases of human rights violations.

Last June 10, 2009, military men of the 58th IBPA under the command of 1Lt. Alex Alipio and 2nd Lt. Valdez with MSgt. Galos arrived, stayed in civilian houses and occupied nearby forested areas and started their patrols around the communities Upper

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All for the Greed of Coal