Report ENvu

8/4/2019 Report ENvu

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Report onEnvironmental Issues

About Land(The Cost Palawan is Paying for Mining)


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Is the issuance of mining permitsthe solution in boosting

Philippines economic growthdespite of minings ugly past?

General Issue


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Metal (Mining) vs. Rice (Farming)

Overlapping of protected areaswith areas for mining

Is mining a solution to the povertyproblem in the country?

Sub-Issues


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Where will the affected individuals orcitizens complain about the adverse effect ofmining?

Do we need to destroy nature for its benefitor shall we just nurture our environment fortourist to see its beauty? Mining vs. Tourism

Is the government giving our mineral ornatural resources to the foreigners?

Sub-Issues


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Discussion


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ConstitutionalProvisions


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Sec. 16. The State shall protect andpromote the right of the people toa balanced and healthful ecology in

accord with the rhythm andharmony of nature.

Art. IID

eclaration of Principles andState Policies


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Section 1. The goals of the national economy

are a more equitable distribution ofopportunities, income, and wealth; asustained increase in the amount of goodsand services produced by the nation for thebenefit of the people; and an expandingproductivity as the key to raising the quality oflife for all, especially the under-privileged.

Art. XII

National Economy and Patrimony


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The exploration, development, and utilization of natural resources shall be

under the full control and supervision of the State. The State may directlyundertake such activities, or it may enter into co-production, joint venture, orproduction-sharing agreements with Filipino citizens, or corporations orassociations at least sixty per centum of whose capital is owned by suchcitizens. Such agreements may be for a period not exceeding twenty-five

years, renewable for not more than twenty-five years, and under such termsand conditions as may be provided by law. In cases of water rights forirrigation, water supply fisheries, or industrial uses other than thedevelopment of water power, beneficial use may be the measure and limit ofthe grant.

Art. XII

National Economy and Patrimony


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HIGHLIGHTS OF THEMINING ACT OF 1995 (RA 7942)

AND

ITS

REVIS

ED

IMPLEMENTING RULES ANDREGULATIONS


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The Philippine Mining Act of 1995 and its RevisedImplementing Rules and Regulations (RIRR) is considered

in the industry today as one of the most socially andenvironmentally-sensitive legislations in its class. It hasspecific provisions that take into consideration:

Local government empowerment;

Respect and concern for the indigenous culturalcommunities;

Equitable sharing of benefits of natural wealth;

Economic demands of present generation while providingthe necessary foundation for future generations;

Worldwide trend towards globalization; and

Protection for and wise management of the environment.


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The IRR highlights the role of local government units(LGUs) in mining projects, both as beneficiaries and asactive participants in mineral resources management, inconsonance with the Constitution and government policies

on local autonomy and empowerment. As such, the MiningAct provides the following:

In consonance with the Local Government Code of 1992(LGC), LGUs have a share of forty percent (40%) of the

gross collection derived by the National Government frommining taxes, royalties and other such taxes, fees orcharges from mining operations in addition to theoccupational fees (30% to the Province and 70% to the

Municipalities concerned);

ROLE OF LOCAL GOVERNMENTS


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In consonance with the LGC and the People Small-ScaleMining Act (RA 7076), the LGUs shall be responsible forthe issuance of permits for small-scale mining andquarrying operations, through the Provincial/City MiningRegulatory Boards (PMRBs/CMRBs);

To actively participate in the process by which thecommunities shall reach an informed decision on the

social acceptability of a mining project as a requirementfor securing an Environmental Compliance Certificate(ECC);

To ensure that relevant laws on public notices,

consultations and public participation are complied with;

ROLE OF LOCAL GOVERNMENTS


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To participate in the monitoring of mining activities as a

member of the Multipartite Monitoring Team, as wellas in the Mine Rehabilitation Fund Committee;

To act as mediator between the Indigenous Cultural

Communities (ICCs) and the mining contractor as maybe requested/necessary;

To be the recipients of social infrastructures andcommunity development projects for the utilizationand benefit of the host and neighboring communities;and

To coordinate with and assist the DENR and the MGB in

the implementation of the Mining Act and the IRR.

ROLESOF LOCAL GOVERNMENTS


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Pursuant to the Mining Act of 1995 and inconsonance with State policies and existing

laws, areas may either be closed to miningoperations, or conditionally opened, asfollows:

Areas CLOSED to mining applications:

Areas covered by valid and existing mining

rights and applications;

AREAS CLOSED TO THE

MINING APPLICATION


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Old growth or virgin forests, mossy forests,national parks, provincial/municipal forests, tree

parks, greenbelts, game refuge, bird sanctuariesand areas proclaimed as marine reserve/marineparks and sanctuaries and areas proclaimed asmarine reserve/marine parks and tourist zones as

defined by law and identified initial components ofthe NIPAS, and such areas as expressly prohibitedthereunder, as well as under DENR AdministrativeOrder No. 25, s. 1992, and other laws;

AREAS CLOSED TO THE

MINING APPLICATION


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Areas which the Secretary may exclude based,inter alia, or proper assessment of their

environmental impacts and implications onsustainable land uses, such as built-up areas andcritical watershed with appropriatebarangay/municipal/provincial Sanggunian

ordinances specifying therein the location andspecific boundaries of the concerned area; and

Areas expressly prohibited by law.

AREAS CLOSED TO THE

MINING APPLICATION


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The following areas may be opened for miningoperations, the approval of which are subject to the

following conditions:

Military and other government reservations, upon priorwritten consent by the government agency having

jurisdiction over such areas;Areas near or under public or private buildings,cemeteries, and archaeological and historic sites,bridges, highways, waterways, railroads, reservoirs,

dams and other infrastructure projects, public or privateworks, including plantations or valuable crops, uponwritten consent of the concerned government agency orprivate entity, subject to technical evaluation and

validation by the MGB;


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Areas covered by FTAA applications,

which shall be opened, for quarryresources upon written consent of theFTAA applicants/contractors.

However, mining applications for sandand gravel shall require no suchconsent;

DENR Project areas upon priorconsent from the concerned agency.


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A significant feature of the Mining Act of 1995 and itsIRR is the premium given to environmental protection.Stringent measures were institutionalized to ensure

the compliance of mining contractors/ operators tointernationally accepted standards of environmentalmanagement. On top of the ECC conditionalities,herewith are some of the highlights provided for in the

IRR; Mandatory allocation of an approximately 10% of the

initial capital expenditures of the mining project forenvironment-related activities;

ENVIRONMENTAL ANDSAFETYCONCERNS


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Mandatory annual allocation of 3-5% of the direct miningand milling costs to implement an Annual EnvironmentalProtection and Enhancement Program;

Mandatory establishment of a MINE REHABILITATIONFUND (MRF) to be composed of: a) a Monitoring TrustFund of P50,000 which is replenishable; and b) aRehabilitation Cash Fund of P5 Million or 10% of the EPEPcost, whichever I lower. Such Funds are to be deposited as

trust account in a government depository bank to bemanaged by MRF Committee composed of the MGBRegional Director, DENR Regional Executive Director,representatives from the LGU and an NGO, and the

Contractor;



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Conduct of an independent environmental audit toidentify environmental risks affecting miningoperations as a basis for the development of an

effective environmental management system; Mandatory preparation and implementation of a

final Mine Rehabilitation/ Decommissioning Plan at

least five (5) year prior to the end of the life of themine, to be undertaken in consultation and incoordination with the concerned communities,and shall be submitted for approval by the MGB

and LGU concerned;



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Imposition of higher penalty (P50.00/MT) tomining companies that are found to have illegallydischarged and/or discharging solid fractions oftailings into areas other than the approved tailings

disposal area;



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The following are the types of mining permits granted under the Mining

Act of 1995 and its IRR:

Exploration Permit - these permits are issued to qualified individuals orlocal and foreign corporations granting them to undertake purelymineral exploration activities. Has a term of two (2) years renewable

for like terms but not to exceed a total term of six (6) years for non-metallic minerals and eight (8) years for metallic minerals.

Mineral Agreement - are granted to individuals or local corporations

giving them the right to explore, develop and utilize the minerals withinthe contract area. There are three modes of Mineral Agreementsnamely:

Mineral Production Sharing Agreement (MPSA)

Co-Production Agreement (CA)

Joint Venture Agreement (JVA)

MINING PERMITSGRANTED TO QUALIFIED PERSONS


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The features of a Mineral Agreement are as follows:

Term of 25 years, renewable for another term of 25years;

Exploration Period of two (2) years renewable for liketerms but not to exceed a total term of six (6) years fornonmetallic minerals or eight (8) years for metallicminerals;

Maximum allowable areas of 810 hectares in any one

province or 1,620 hectares in the entire country for anindividual, or 8,100 hectares in any one province or16,200 in the entire country for a corporation,association, cooperative or partnership.


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Provides for mandatory relinquishmentsuch that the maximum final area shall notexceed 5,000 hectares for metallic mineralsor 2,000 hectares for non-metallic mines;

Subject to Environmental Work Program(EWP) during the exploration period, andto Environmental Compliance Certificate(ECC) and Environmental Protection andEnhancement Program (EPEP) during thedevelopment and operation period;

Approval by the DENR Secretary


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Sand and Gravel Permits- are issued for extraction , removal anddisposition of sand and gravel and other loose or unconsolidatedmaterials.

Quarry Resources Permits- in accordance with the Local GovernmentCode of 1991, mining permits with areas not more than 5 hectares havebeen devolved to the Provincial Governor or City Mayor for theapproval of the Provincial/City Mining Regulatory Board.

Small-ScaleMining Permits- approved and issued by the City/ProvincialGovernor, upon recommendation of the Provincial Mining RegulatoryBoard

Mineral Processing Permit- permit granting the right to processminerals

Ore Transport Permit -no minerals, mineral products and by productsshall be transported unless accompanied by an ore Transport Permit.


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Discussion

ofRecommendations


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Recommendations

The mining and quarrying sectorin general should improve theenvironmental conditions in themining and quarrying sites.


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On the part of the national and local government:

improved efforts on monitoring and enforcement tomake the mining firms and nearby residents orhouseholds to do their obligatory part forenvironmental protection and management;

increase the provision of government funds and theirjudicious use for environmental monitoring andenforcement to attain better protection and

management in the mining sector;

Recommendations


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monitor the environment conditions in the in themining sites, pertinent government agencies have todo the following:

establish a data base of the reserves in all river beds andmining claims including the condition of the adjacent forestarea and watershed;

produce a control map of concession areas using GIS; and

periodically update the data on each concession area, e.g.,volume allowed and actual extraction, period of operation,water quality of the river, condition of the river bank andwatershed, activities in the surrounding area that may affectthe river and other parameters.

Recommendations


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should plan and implement some effectively safetynets and poverty alleviating projects to mitigate thenegative impact of macroeconomic policies on miningand quarrying households and in so doing reduce thepressure on the environment;

should also ensure that the environmental problemscreated by mining in Palawan be fully addressed to the

satisfaction of the residents in the area; should find a way to raise the extraction fees in mining

and quarrying and ensure that any damages theycause to people and property be paid to the fullest

extent.

Recommendations


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should strictly screen mining applicants. The screening,however, should be in a fair and judicious manner.

to impose higher fines and penalties to

violators. Currently, those who are caught violating theterms and conditions of their permits are rarely broughtto court.

shortening the processing of permit applications.

Another reason for the proliferation of illegal operationsis the difficulty in securing a permit, particularly relatedto the length of time one has to get it. There is a lot ofduplication in the processes used by local and national

agencies for processing applications.

Recommendations


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Reduce the investment in securing the

permit. The so-called grease money inparticular has become an integral part ofthe whole application process that

discourages permit applicants. If this costis reduced, then quarrying proponentsmay be encouraged to apply for a permit

Recommendations


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More efficient through the involvement of local communities.

At present, some residents adjacent to the quarry areas havebeen vigilant in monitoring the activities of theoperators. For instance, they check the volume ofaggregates taken out to ensure that it does not exceed theallowable limit. They also ensure that the extractionmethods employed do not cause undue harm to the

environment, particularly the riverbed and the surroundingarea. This type of participation of local communities inmonitoring and enforcement should be promotedinstitutionalized by the LGUs for effective monitoring andenforcement at the ground level

Recommendations


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THANK YOU!

Documents

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