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Philippines: Mining or Food? Case Study 2: Copper and Gold Mining Zamboanga del Norte - Mindanao Island

by

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

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.

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 rights in the Philippine archipelago.

© Copyright Working Group on Mining in the Philippines 2008 First Published in 2008 by the Working Group on Mining in the Philippines, 28 Redington Road, London, NW3 7RB, United Kingdom wgmpuk@tiscali.co.uk

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

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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. (RbtGoodland@aol.com) 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. (Clivewicks@googlemail.com)

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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.

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Case Study 2: Copper and Gold Mining Zamboanga del Norte - Mindanao Island

Table of Contents

Background 94 Mining damage 95 Future plans? 98 Sibutad and Libay Visit 99 Sibutad and Libay Conclusion, Recommendation and Map 100 ANNEX: Table of Contents for Entire Report Including Case Studies 106

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Map of the Philippine Archipelago

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

6. SIBUYAN ISLAND

2. LIBAY SIBUTAD

5. MINDORO NICKEL PROJECT

1. MIDSALIP

3. TAMPAKAN SAGITTARIUS

COPPER & GOLD

4. MATI DAVAO ORIENTAL PUJADA

BAY

CCaassee SSttuuddyy LLooccaattiioonnss

v

Provincial Map of the Philippines1

1 Source Wikipedia

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Case Study 2: Copper and Gold Mining Zamboanga del Norte - Mindanao Island

Background2 The barangay (village) of Libay is located on the coast of Sibutad3 in Zamboanga del Norte, one of the provinces in the Zamboanga Peninsula in northwestern Mindanao. It is a picturesque area with lush vegetation and rolling hills covered in forest. At the foot of the hills are rice fields, homes, and Murcielagos Bay,4 which contains coral, mangroves and important fishing grounds. It is one of the most fertile areas of the Philippines, exporting commodities to the mainland.

Bishop Jose Manguiran DD Mineral deposits in the province of Zamboanga del Norte include chromite, gold, bentonite, marble, limestone, quartz, pebbles and gravel. According to the website of Philex Mining, Sibutad has measured reserves of 17.6 million metric tonnes of ore containing an estimated 0.84 grammes of gold per tonne.

Libay is at the center of Philex Mining operations and is the home base of small-scale miners. Before Philex’s arrival, local people remember that their seashore was so clear: fish and seashells were found in abundance; fishermen never experienced foul odours from the mountain that they believe to be from poisonous chemicals; people did not experience drinking water shortages, or fear poison in their water. The farmers were able to fully utilize the potential of vast tracts of rice fields. Some people also engaged in small-scale mining to augment their income; people’s capacity for buying increased, which led to more small businesses, especially food stores.

Philex Gold Inc., which operates, develops and explores gold projects in the Philippines, was created in 1996 as a spin-off from the gold assets of Philex Mining Corporation, a Philippine-based company that had been operating in the country for around 40 years. It ran the Bulawan gold mine in Negros Island, and Sibutad, its second mine, was billed to begin production in 1997. In its first year of existence, Philex Gold claimed to have become the largest primary gold producer in the Philippines with an aggressive exploration and acquisition program. Philex Gold was 81.8% owned by Philex Mining Corporation; it was listed on the Toronto Stock

2 Much of this section is derived from: http://www.minesandcommunities.org//search.php?words=Libay www.minesandcommunities.org/company/philex1.htm ; Tito Natividad Fiel, Program Coordinator DIOPIM Committee on Mining Issues G/F, Diocesan Pastoral Center, Sicayab, Dipolog City (2006), and from Patenaude (1999). 3 http://sibutad.zamboangadelnorte.com/ and http://www.maplandia.com/philippines/region-9/zamboanga-del-norte/sibutad/ 4 http://www.dcmiphil.org/Bye-bye_Murcielagos_Bay.pdf

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Exchange5 on 28th October 1996 under the trading symbol PGI and raised $23 million for its Philippine operations through its initial public offering.6

Mining damage In contrast to some of the other areas visited during the authors’ field visits, Sibutad is an example of gold and copper mining that caused such destruction in the 1990s and early 2000s that the government departments were eventually forced to suspend the permits. Nonetheless, the damage remains, and there are fears that the mining may start up again. The problems started in 1995 when the machinery of Philex Gold arrived in Sibutad. Philex began constructing diversion roads in Sibutad before the Department of the Environment and Natural Resources (DENR) had granted the company a permit to do so. Materials excavated from the diversion road were dumped down the hillside, rather than being stockpiled according to mining legislation. Sedimentation from the excavated materials clogged small creeks, from where it spread into rice paddies, and then began to accumulate along the coastline. Community protests over the massive earth-moving and resulting sedimentation into Murcielagos Bay did not stop Philex from continuing its operations. The DENR initially rejected Philex’s Environmental Impact Assessment (EIA) and told the company to upgrade it. In January 1997, however, it granted Philex an Environmental Compliance Certificate (ECC), and then, in April 1997, its application for a Mineral Production Sharing Agreement (MPSA) for 3,888 hectares in Lablab The town boomed almost immediately: its population soared to over 10,000, the market for fish rocketed, employment soared and supply stores flourished – as did prostitution, child labor, disease, gambling and violence.7 Siltation and sedimentation It was not long, however, before the direct impacts of the copper and gold mining became apparent. At the end of October 1997, Philex’s Chair and Chief Executive Officer Gerard Brim boasted that the company’s silt barriers were strong enough to withstand six months of torrential rains. One week after this boast, on 6th November 1997, a flash flood led to a mudslide caused by the failure of one of Philex’s silt dams. This was after just two hours of heavy rains. This torrential mud inundated agricultural lands and irrigated rice fields, and destroyed five homes.

5 http://www.tsx.com/ 6 The original sale of a company’s securities, in which the proceeds from the sale are received directly by the company. 7 In 1995, the Department of Labor and Employment (DOLE) study reported 114 child laborers in small scale mining (see Norman Jennings ed. 2000.) Child labor in small-scale mining: Examples from Niger, Peru & Philippines, ILO. http://www.ilo.org/public/english/dialogue/sector/papers/childmin/137e3.htm Department of Labor and Employment, Region 9, Zamboanga: A study of the incidence of child labor in Sibutad municipality, 1996. Footnote 26 http://www.ilo.org/public/english/dialogue/sector/papers/childmin/137en.htm#N_26_

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This was just the beginning. Between 1997 and 2002, overflows from Philex’s tailings dams repeatedly affected the immediate surroundings, causing mudslides that continued to destroy rice fields, silt the bay (reaching 200 meters out to sea), and damage mangroves, which resulted in rice production falling by half and massive fish kills (Bautista 2008).

Heavy sedimentation of Murcielagos Bay8 disrupted the ecological balance so that marine life became weak and diseased or simply died. Fishing-dependent communities lost their primary source of livelihood that the bay once provided in abundance, especially fish, shellfish, and seaweed. They complained to government agencies on several occasions about the pollution of the Bay, the destruction of their agricultural lands and the loss of drinking water.. DENR eventually found Philex responsible for the damage, not in compliance with mandated precautions, and lacking the necessary permits. Despite these findings of reckless laxity, DENR did not penalize Philex, nor order it to suspend operations to stabilize the area so as to prevent further damage to agriculture, fisheries and property (DENR 1997a.b.c.). Instead, DENR ordered Philex to create a monitoring team as part of its Environmental Compliance – which the company refused to do. The impacted people and their advocates called upon DENR to stop Philex’s operations entirely until they could be rendered safe and the company compliant with national regulations. But the DENR refused to act.

Mercury Poisoning Murcielagos Bay was affected not only by sedimentation but also by mercury and cyanide pollution from the mine spills. In September 1997, marine biologists from the University of San Carlos at Cebu City, found a higher concentration of mercury in

8 Bye-Bye Murcielagos Bay Bye-bye, A Case Study of Philex Gold Philippines Incorporated in Sibutad, Zamboanga del Norte by Andrea Patenaude, Originally Published in “Minding Mining! Lessons from the Philippines” by the Philippine International Forum (PIF) in 1999. http://www.dcmiphil.org/Bye-bye_Murcielagos_Bay.pdf

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sediments close to where Philex mining was operating (University of San Carlos, 1998).9 The DENR itself documented dangerously high levels of mercury in the Bay. Cases of Minimata Disease and other evidence of mercury poisoning of humans were reported. Another study in 2004 found that those who had been directly exposed to mercury during the gold processing had significantly higher mercury and methylmercury levels in their blood compared with those people who were indirectly exposed.10

Philex’s major excavations were in formerly artisanal miners’ areas, and thus may have opened up mercury-laced residues from previous mining. Small-scale gold mining activities using mercury had begun in the late 1980s in Sibutad, near to the Murcielagos Bay. In addition, Philex bought and re-processed mercury-rich bags of tailings from artisanal miners. Violence between Philex and artisanal miners resulted in Philex security guards killing Crelim Cadalin, a small-scale miner, in May 1998 when he was trying to access his small-scale tunnel while ‘trespassing’ on Philex’s site. Philex’s environmental director labeled this killing as “a typical incident blown out of proportion”.

Cyanide Contamination Philex did acknowledge using the cyanide ‘heap-leach’ method to separate gold from residues. The Cyanide Detection Test (CDT) Laboratory Network of the Bureau of Fisheries and Aquatic Resources tested Philex waters on 24th February 1999, and found them positive for the presence of cyanide.11 Moreover, they found all the main

9 Potential impacts of the Lablab mine not only affect Libay but the surrounding bay and marine reserves to the south. Many impacts may continue to accrue to the surrounding areas and to the southern province of Misamis Occidental, which has 169 km of coastline fronting the rich fishing grounds of Panguil Bay on one side and Iligan bay on the other (Fide: Science of the Total Environment 354). Some forest remains on some peaks; there are brackish-water fishponds in the region. 10 Nelia Cortes-Maramba et al, “Health and environmental assessment of mercury exposure in a gold mining community in Western Mindanao, Philippines”, Journal of Environmental Management, Vol. 81, Issue 2, October 2006, pp.126-134. 11 The cyanide detection test was certified true and correct by Melessa G. Melchor, CDT Chemist, and noted by Benita E. Manipula, Assistant Laboratory Director.

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fish species to be contaminated with cyanide. Philex reportedly contracted another mining company, BHP, to carry out an Environmental Impact Statement in 1999, but it was not made available to the Government (University of San Carlos 1998). In 2002, however, DENR finally suspended the mining operations of Philex. Nonetheless, locals report that the company is continuing with “small-scale” mining within the site using mechanized equipment. At least 90% of the ore was still remaining when the mine was closed.

Future plans? The official reason Philex gave for suspending its mining operations was the low price of gold at the time; there was also speculation that it did not have enough resources to continue mining at their previous levels. Gold and silver doré bullion bars were shipped for sale to the UK, Germany and Singapore. During the current world financial crisis, more investors may shift to precious metals, raising the price of gold. Whether that leads to more financing for gold mining remains to be seen. In Sibutad, however, Philex employees have been seen talking to barangay (village) leaders, and many communities fear that mining will expand. Their fears have been exacerbated by the interest of mining corporation FreeportMcMoRan in Philex. On 19th March 2007, Freeport-McMoRan acquired US mining company Phleps Dodge for US$13.9 billion and 136.9 million stocks and shares to become the world’s largest publicly traded copper mining company. As a result of the takeover, Phelps Dodge became Freeport McMoRan Copper & Gold, Inc., which owns 40% of Philex Gold. On 3rd October 2007, Philex Gold announced that its wholly-owned subsidiary, Philex Gold Philippines, Inc., had signed an agreement with PDEPI (Phelps Dodge Exploration Philippines. Inc.), which is an indirectly 40%-owned subsidiary of Freeport McMoran Copper & Gold Inc. The Earn-In Agreement concerns part of PGPI’s Sibutad project tenements covering 6,954 hectares. The “Property” consists of the areas covered by three permits: an Exploration Permit Application (EPA # 047-IX) covering 5,846 hectares; a Mine Production Sharing Agreement (MPSA 63-97-IX) covering 622 hectares; and an Application for Production Sharing Agreement (APSA 73 -IX) covering 486 hectares. Philex Gold has also announced another surprise move concerning its operations elsewhere in Mindanao: a joint venture with the UK-based Anglo American Exploration concerning the Boyongan copper-gold porphyry deposit in the province of Surigao del Norte in north-eastern Mindanao which was discovered in August 2000. On 25th September 2008, Anglo Philex Gold Inc. stated that Philex Mining Corporation (PMC) had approved the acquisition of Anglo American Exploration (Philippines) BV’s 50% interest over the Boyongan copper-gold porphyry property for $55 million, giving Philex and its subsidiary, Philex Gold Philippines, Inc., full

“We believe that the Sibutad Claims hold great promise for the future”.

Philex Gold Inc Annual Report 1996

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control over the property. PMC will apparently buy the shares currently owned by Anglo American in the joint venture companies, Silangan Mindanao Mining Company, Inc. and Silangan Mindanao Exploration Company, Inc.; these companies are the owners of four mining tenements, including Mineral Production Sharing Agreement (MPSA) No. 149-99-XIII, which cover five parcels of land including the Boyongan deposit.12 Many deals entered into by both local and foreign mining companies and mining multinationals profit from exploration and mining licenses and permits and mineral data by using them for speculative purposes rather than with a view of exploring or mining themselves.

Sibutad and Libay Visit The authors visited Sibutad and Libay during February 2008 and met Bishop Jose Manguiran who strongly opposes mining and logging because of the environmental damage and human rights abuses caused in his diocese, especially to the indigenous Subanen people. They went to the Libay mining sites in Zamboanga del Norte in Mindanao and met with small farmers and fisherfolk, who had gathered at a seminar on sustainable agriculture organized by the local communities and the Diopim13 Committee on Mining Issues (DCMI)14 of the Catholic Church, which is assisting communities affected by mining projects. The team visited the area where mine spills and landslides occurred and could clearly see the extent of the damage caused by the collapse of the tailings dam. Some attempts had been made at erosion control by dyking and planting seedling trees, but it looked incommensurate with the need. The seedlings were not flourishing and the dykes were eroding. We also saw the Bay and coastal area, which showed signs of returning seagrass and mangroves. Fisherfolk reported that fish stocks were slowly restoring themselves since the mining was halted.

12 http://www.miningtopnews.com/philex-gold-announces-sale-by-anglo-of-50-interest-in-boyongan-project-to-philex-mining-corporation.html 13 The DIOPIM Committee on Mining Issues (DCMI) is an acronym for the dioceses’ headed by the Bishops of Dipolog, Ipil, Ozamiz, Pagadian, Iligan and Marawi. 14 See http://www.dcmiphil.org/dcmi/index.php for The DIOPIM Committee on Mining Issues (DCMI) is a non-governmental organization (NGO) based in Dipolog City, the Philippines. The committee is spearheaded by the Roman Catholic Church and composed of Social Action Directors with inputs from NGOs and Indigenous People’s groups. See also The Halifax Initiative - Canatuan Polymetallic Mine http://www.halifaxinitiative.org/index.php/miningmap/aen45a510a98928d

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Sibutad and Libay Conclusion, Recommendation and Map The authors believe that mining in the Zamboanga Peninsula will severely damage the remaining forests and water catchment quality, increase flooding, erosion, siltation and landslides. It will thereby reduce production of agricultural, marine resources, and bio-diversity, displace populations, re-engender conflict, and affect the human rights of local communities, particularly the Subanen, the largest population of indigenous people in the Philippines. Mining will increase poverty and limit the ability of future generations to survive. The authors conclude that mining is not compatible with irrigated agriculture notably rice or fish production and is inappropriate in areas such as the Zamboanga Peninsula in western Mindanao. The authors strongly recommend that the Government bans mining in critical water catchments and prioritises the immediate protection of the environment including reforestation, food security and human rights including the right to a healthy environment for present and future generations.

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MINING TENEMENTS STATISTICS REPORT AS OF MARCH 2008 REGIONAL OFFICE NO. IX - ZAMBOANGA PENINSULA III. Under Process LIST OF MINERAL PRODUCTION SHARING AGREEMENTS (MPSA)

TENEMENT ID

TENEMENT HOLDER

DATE FILED

LOCATION AREA (Has)

COMMODITY REMARKS

Under Preliminary Evaluation

1. APSA 000015-IX *

Oreline Mining Corporation/Benguet Corp./ Toquero Geologists and Affiliates

04-10-92 R.T.Lim, Zamboanga Sibugay & Siocon, ZDN

4,212.00 Gold

2. APSA 000098-IX

Oreline Mng Corp./Toquero Geologist & Aff

29/12/1999

RTLim, Zambo.Sibugay;Siocon ZDN

3,888.00 Gold, etc.

3. APSA 000017-IX

PNOC-Energy Dev''t Corporation

05-26-92 Alicia, ZDS 2,340.00

4. APSA 000022-IX

Emiliano Veneracion Jr.

07-31-92 Alicia, ZDS 486.00 Gold

Pending Area Clearance / Status

1. APSA 000082-IX

Maharlika Dragon Mining Corporation

09-15-97 Polanco,Kalawit&Osmeña, ZDN;Ipil,Zsibugay

7,533.00 Chromite Transfer Order (09-28-07)

2. APSA 000110-IX

Ester M. Valencia

01-27-05 Brgy. Pange, Siayan, Zamboanga del Norte

810.00 Gold, Silver, etc.

3. APSA 000111-IX

Elmo B. Valencia 01-28-05 Brgy. Pange, Siayan, Zamboanga del Norte

1,134.00 Gold, Silver,Iron, etc.

4. APSA 000125-IX

Mt. Sinai Mng. Explo. & Devt. Corp.

05-24-05 Tungawan,Z. Sibugay:Gutalac&Dapitan, ZDN; Suminot&Dumingag, ZDS; Vitali,ZC

10,125.00 Managanese, IronGold, Silver, etc.

Undergoing Revisions/Rectifications

1. APSA 000119-IX

Alberta Resources Dev't. Corp.

03-31-05 Sindangan, ZDN 8,100.00 Gold,Copper, Silver, etc.

2. APSA 000122-IX

MASADA Resources & Mng. Corp.

04-28-05 Ipilan,Salug;Pange,Siayan, ZDN, Balagon, Midsalip, ZDS; Bitoon & Dicoyong, Sidangan, ZDN

8,100.00 Managanese, IronGold, Silver, etc.

Undergoing Publication, Posting, Radio Announcement

1. APSA 000076-IX

Butuan Logs Inc. 08-11-97 Siraway, ZDN 3,645.00 Gold

2. APSA 000082-IX

Maharlika Dragon Mining Corporation

09-15-97 Polanco,Kalawit&Osmeña, ZDN;Ipil,Zsibugay

7,533.00 Chromite Transfer Order(09-28-07)

3. APSA 000085-IX

Maharlika Dragon Mining Corporation

12-16-97 Kulasihan, Tampilisan, ZDN

810.00 Chromite Transfer Order (09-04-07)

4. APSA 000087-IX

BB Minerals Corporation

04-02-98 Tipan, Pitawi,Kanapon, Sibalic,Gutalac, ZDN

4,536.00 Chromite

5. APSA 000095-IX

Rojuman Realty & Dev't Corporation

04-19-99 Tigbalangao, Ligian, Tungawan, ZDS

5,022.00 Gold

6. APSA 000100-IX

Curuan Mineral Resources and Dev't. Corp.

04-11-03 Brgy. Mina, Curuan, Zamboanga City

2,430.00 Gold, Silver, etc.

7. APSA 000105-IX

Mindanao Mining &

03-08-04 Gitalus, Midsalip & Depore, Bayog, ZDS

7,573.00 Iron,Gold, Silver, etc.

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Mineral Resources Corp

8. APSA 000106-IX

Edmund B. Bilang

03-19-04 Sitio Talaptap, Brgy. Saaz, Gutalac, ZDN

810.00 Gold, etc.

9. APSA 000112-IX

Astron Resources Mining Corp.

02-21-05 Brgy. Lunday & Litawan, Zamboanga Del Norte

4,131.00 Iron, Gold, Silver, etc.

10. APSA 000113-IX

Matatag Mining Corp.

02-21-05 Brgy. Litawan, Dinolan & Basakm, ZDN

4,293.00 Iron, Gold, Silver, etc.

11. APSA 000114-IX

31st Century Mining Corp.

03-03-05 Brgy. Peñaranda, Kabasalan , Zambo. Sibugay

8,100.00 Gold, etc.

12. APSA 000115-IX

Shamrock Metal & Mineral Processing Corp.

03-03-05 Brgy. Seroan & Seres, Katipunan ZDN

8,100.00 Chromite, etc.

13. APSA 000117-IX

Jeffrey Andrew L. Ocampo

03-11-05 Brgy. Sanghanan,Kabasalan, Zambo. Sibugay

810.00 Iron, Gold, Silver, etc.

14. APSA 000120-IX

Astron Resources Mining Corp.

04-06-05 Tigbucay,Tigpalay,Tungawan,Z.Sibugay

3,969.00 Managanese, IronGold, Silver, etc.

15. APSA 000121-IX

MASADA Resources & Mng. Corp.

04-20-05 Longilog,Titay,Caparan, Ipil, Z. Sibugay

8,100.00 Managanese, IronGold, Silver, etc.

16. APSA 000123-IX

Mt. Sinai Mng. Explo. & Devt. Corp.

05-03-05 Pange,Siayan;Bato,Sindangan,ZDN

6,075.00 Managanese, IronGold, Silver, etc.

17. APSA 000127-IX

Rigid Agreggates and Mining Corp

07-20-05 La Paz, Baluno, Zamboanga City

1,458.00 Gold, Copper, Lead, Zinc, etc.

18. APSA 000128-IX

Greater Asia Mininig & Dev't. Corp.

08-02-05 Lintangan & Malayal, Sibuco, ZDN

6,399.00 Iron., Manganese, Gold, Silver, Etc.

19. APSA 000129-IX

Greater Asia Mininig & Dev't. Corp.

08-02-05 Balukbahan, Bayog, ZDS 2,673.00 Iron., Manganese, Gold, Silver, Etc.

Published/Posted/Announced

1. APSA 000126-IX

Alberto D. Sildlao

06-07-05 Siayan, Zamboanga Del Norte

810.00 Chromite, Manganese, Gold, etc.

2. APSA 000036-IX

Daihan Graciano 12-23-93 Diplahan, Zamboanga Sibugay

405.00 Gold

3. APSA 000058-IX

Jessmag, Inc. 08-01-95 Sibuco, ZDN 8,100.00 Gold

4. APSA 000073-IX

Philex Gold Philippines Inc.

03-05-97 Rizal, ZDN 486.00 Gold

Endorsed to Central Office for Final Evaluation

1. APSA 000104-IX

Geotechniques and Mines Inc.

03-05-04 Midsalip, Zamboanga del Sur

567.00 Iron, Gold, Silver, etc.

returned/re:Cert. Panel A.

2. APSA 000116-IX *

Holcim Phils. Manufacturing Corp.

03-08-05 Brgy. Kipit,Labason & San Juan,Gutalac ZDN

486.00 Silica Sand form. Alsons Cement Corp.

3. APSA 000118-IX *

A.P Tang Mning Corp.

03-11-05 Brgys. Lumponid & Datagan,Midsalip,ZDS

6,200.00 Iron, Gold, Silver, etc.

form. SDV P. Mng. Corp.

Pending NCIP Certification ICC Consent, etc.

1. APSA 000019-IX

Maharlika Dragon Mining Corporation

06-29-92 Titay, Zamboanga Sibugay, & Labason, ZDN

10,449.00 Manganese Transfer Order (09-04-07)

2. APSA 000023-IX

Zamboanga Gold Mining Corp.

09-18-92 Siocon, ZDN 2,673.00 Gold,Copper

3. APSA 000034-IX

EMACO, Inc. 12-03-93 Sibuco, ZDN 4,131.00 Bentonite Clay Return to R.O. for re-

4. APSA 000039-IX

TVI Resource Dev't.(Phils) Inc.

01-21-94 Siocon, ZDN 2,754.00 Copper,Silver Pendng FPIC

5. APSA 000063-IX

Mingson Agro-Urban Dev't Corp.

05-29-96 Labason & Liloy, ZDN 5,015.51 Silica

6. APSA 000064-IX

Roldan Dalman 11-14-96 Jose Dalman, ZDN 486.00 Copper,Gold

103

7. APSA 000074-IX

Butuan Logs, Inc.

06-04-97 Panganuran,Sibuco, ZDN 4,832.00 Gold, etc. Revision of loc. map

8. APSA 000075-IX

Libres and Sons Mining & Dev't Corp.

08-08-97 Tampilisan & Liloy, ZDN 4,941.00 Laterite

9. APSA 000086-IX

Delram Mineral Corporation

03-06-98 Tipan, Bakong, Mamawan, Gutalac, ZDN

1,458.00 Chromite

10. APSA 000094-IX

Juraclex Dev't. Inc.

02-18-03 Lintangan, Pangan, Sibuco, ZDN

3,969.00 Gold

11. APSA 000099-IX

Pola Mining Corp.

02-21-03 Siraway, ZDN 4,131.00 Gold form. Juraclex Dev't. Inc.

12. APSA 000101-IX

168 Ferrum Pacific Mining Corp.

12-22-03 Canipay, Midsalip, Datagan, Bayog and Depore, ZDS

8,100.00 Iron, Gold, Silver, etc.

formerly Cebu Ore Mng. & Min. Res. Corp.

13. APSA 000103-IX

Hard Rock Mineral Trading, Inc.

03-04-04 Lunday, Sibuco, Zambaonaga del Norte and Cuatro Ojos, Vitali, Zamboanga City

6,075.00 Iron, Gold, Silver, etc.

VIII. Converted to other Tenements

TENEMENT ID

TENEMENT HOLDER

DATE DATE

LOCATION AREA COMMODITY REMARKS

FILED CONVERTED (Has.) 1. APSA 000056-IX

Philex Gold Philippines Inc.

04-10-95

11-19-04

Dapitan City, ZDN 5,565.00 Gold (converted to EXPA)

2. APSA 000107-IX

Rigid Aggregates Corporation

03-26-04

05-30-05

Kumalarang, ZDS & Buug, Zamboanga Sibugay

2,430.00 Manganese, Chromite, Iron, etc.

(converted to EXPA)

3. APSA 000108-IX

Rigid Aggregates Corporation

03-26-04

05-30-05

Milidan, Baliguian & Bakong, Gutalac, ZDN

7,290.00 Manganese, Chromite, Iron, etc.

(converted to EXPA)

4. APSA 000124-IX

Linktone Intl.Mng. Corp.

05-18-05

06-30-05

Vitali,Licomo,ZC 7,776.00 Managanese, IronGold, Silver, etc.

(converted to EXPA)

NOTE: Mt. Kabasalan Mng. & Explo.

Co. vs Leuk Reg Min. Res. Dev't. Corp

Gutalac, Zamboanga del Norte

1,159.00 Chromite DENR Case No. 8074

104

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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

107

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

108

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

1

About the Authors

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. (Clivewicks@googlemail.com)

.. Perhaps reluctantly 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 whose 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

Working Group on Mining in the Philippines (WGMP)

28 Redington Road, London, NW3 7RB wgmpuk@tiscali.co.uk

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 Ecological Society of America. He was awarded the World Conservation Union’s Coolidge medal in October 2008. (RbtGoodland@aol.com)

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