MEMORANDUM

TO: Atty. Analiza Rebuelta-Teh

FROM: Irene Cristina Manaog-Gono, 2A-JD, Natural Resources
RE: Sustainable and responsible mining
DATE: December 17, 2018

Questions Presented
Can sustainable and responsible mining be done?

Short Answer
Yes. Sustainable and responsible mining can be done.

Statement of Facts1
The Philippines is a well-endowed country in terms of mineral resources. With its long
history and experience in mining, it has demonstrated its very rich potential for copper, gold, nickel,
chromite and other metallic minerals through the commercial operation of numerous mines. It is also
abundant in non-metallic and industrial minerals such as marble, limestone, clays, feldspar, rock
aggregates, dolomite, guano, and other quarry resources. In terms of endowment (minerals resources
per unit area), the Philippines ranks 3rd in the world for gold. 4th for copper, 5th for nickel, 6th for
chromite. The offshore area is another potential domain for mineral wealth of the country.

The granting of mining rights are subject to certain qualifications and selection criteria.

 Qualified Person - The Mining Act and its IRR specifically state that a mining permit or
contract can only be granted to a Qualified Person, meaning, one must possess, among others,
proofs of financial and technical capability as well as a satisfactory environmental
management and community relation track record.
 Land Use Priorities – Areas classified as closed to mining are automatically excluded from
mining applications while applied areas in conflict with other land uses and not covered by
the required area clearance are automatically excluded. Thus, the applied area is either
reduced or in some cases, denied; and
 Economic Feasibility – It is not automatic that a mining contractor shall proceed immediately
to development and commercial operation after it has completed exploration. The Mining
Project Feasibility Study shall consider market, financial and technical factors relevant to the
project as well as all the minimum expenditures for social and environmental

The negative effects of mining can be sub- divided into categories. These may be divided into
three major divisions— economic, environmental, and socio- cultural.

1
http://www.ombudsman.gov.ph/UNDP4/wp-content/uploads/2013/01/PrimerPolicy-Brief-on-sustainable-mining.pdf
  Economic –Contrary to claims that mining was the main driver for growth and
industrialization, it was documented that the extraction and exploitation of minerals may lead
or be the “cause of a lower-than-expected level in the economic growth of a country;
Furthermore, natural resource exploitation can exacerbate conflict, corruption, weak
governance and poverty.

 Environmental –Mining is a highly extractive industry. Tons of earth have to be moved,

treated and processed in order to get a small quantity of the mineral. Because of this,
mountains and hills have been quarries and were destroyed; Furthermore, for cases wherein
mineral deposits are found in mountains, forests have to be cleared first before mining
operations can commence; In order to extract the minerals, in the ores, certain chemicals are
being used. Cyanide, and mercury are the most often used chemicals. These chemicals are
highly dangerous and toxic; etc.

 Socio-cultural –There is an increasing tendency of mining companies to by- pass the

indigenous peoples in their mining decisions. At times the free prior and informed consent
principle is not taken into consideration. Mining operations often leads to direct assaults on
the cultures of the indigenous peoples; In relation to the issue of indigenous peoples, there
cultures are under assault; The increase in military presence in mining areas is also a cause
for concern among many local inhabitants, both indigenous and not. There is always a
looming threat making them unable to exert and push for the exercise of their rights; etc.

Discussion
Section 2 of Art. XII of the 1987 Constitution provides, “The President may enter into
agreements with foreign-owned corporations involving either technical or financial assistance for
large-scale exploration, development, and utilization of minerals, petroleum, and other mineral oils
according to the general terms and conditions provided by law, based on real contributions to the
economic growth and general welfare of the country. In such agreements, the State shall promote the
development and use of local scientific and technical resources.”

One of the principles of Constitutional Construction is that the Constitution is to be

interpreted as a whole. If sustainable mining cannot be done, the Constitution would have
contradicted itself. Note that Section 16 Art. II of the Constitution states, “The State shall protect and
advance the right of the people to a balanced and healthful ecology in accord with the rhythm and
harmony of nature.” If sustainable mining cannot be done, having laid down the right of the people to
a balanced and healthful ecology, the framers should not have included the provisions relevant to
mining anymore because it would be violating the right previously stated.

Sustainable mining is necessary because the Philippines is blessed with so much mineral
resources, it would be a sin not to use them. The Constitution and The Philippine Mining Act of 1995
laid out who should be responsible for, and what to do with the Philippines’ natural resources,
including minerals.
Sec 1. Art. XII of the Constitution states, “The goals of the national economy
are a more equitable distribution of opportunities, income, and wealth; a sustained
increase in the amount of goods and services produced by the nation for the benefit of
 the people; and an expanding productivity as the key to raising the quality of life for
all, especially the under-privileged.”
Sec. 2 of The Philippine Mining Act of 1995 also states, “xxx It shall be the
responsibility of the State to promote their (mineral resource) rational exploration,
development, utilization and conservation through combined efforts of government
and the private sector in order to enhance national growth in a way that effectively
safeguards the environment and protect the rights of the affected communities.

The case of La Bugal B’Laan vs Ramos2, further states, “xxx the State control accorded by
the Constitution over mining activities assures a proper balancing of interests. More pointedly, such
control will enable the President to demand the best mining practices and the use of the best
available technologies to protect the environment and to rehabilitate mined-out areas. Indeed, under
the Mining Law, the government can ensure the protection of the environment during and after
mining. It can likewise provide for the mechanisms to protect the rights of indigenous communities,
and thereby mold a more socially-responsive, culturally-sensitive and sustainable mining industry.”
“Early on during the launching of the Presidential Mineral Industry Environmental Awards on
February 6, 1997, then President Fidel V. Ramos captured the essence of balanced and sustainable
mining in these words: xxx Against a fragile and finite environment, it is sustainability that holds the
key. In sustainable mining, we take a middle ground where both production and protection goals are
balanced, and where parties-in-interest come to terms.”

Sustainable mining is beneficial for several reasons3:

 General economic benefits on mineral trading, including exports. The multiplier effect in
mining does not end in job creation. The mining products appropriately affect and has its
corresponding multiplier effect in many more industries.
 Job creation/ employment opportunities –especially in the small-scale mining operations and
even in the large-scale mining, its multiplier effect must be taken into consideration: for
every job generated in mining, four other jobs are created outside it.
 Increase in National and Local Government Income (Income tax, VAT, Royalties, Capital
Gains Tax, etc.)
 Infrastructure Development -In order for the mining companies to efficiently extract and
transport extracted minerals, they would have to create or improve road conditions in the
area. Furthermore, the creation of health facilities, recreational facilities and other
infrastructures for the companies’ employees, can also be accessed by the affected local
communities.

The Philippine Mining Act specifies the authorities and their roles for sustainable mining to
be possible. Mineral agreements, Financial or Technical Assistance Agreement and specific permits
(such as exploration permit, quarry permit, industrial sand and gravel permit, etc.) are to be a granted
only to duly qualified persons/organizations, as stated in the facts. Furthermore, to ensure that
environmental conditions are sustained over the life of the mine, and even after it, the present mining
act has the following minimum environmental requirements4:
 Environmental Work Program (EnWP) – addresses any potential disturbance during the
exploration stage.

2
La Bugal-Blaan Tribal Association, Inc., et.al. vs. Ramos, et. al., G.R. No. 127882, December 1, 2004.
3
http://www.ombudsman.gov.ph/UNDP4/wp-content/uploads/2013/01/PrimerPolicy-Brief-on-sustainable-mining.pdf
4
http://mgb.gov.ph/2015-05-13-02-04-38#what-is-mining
  Environmental Compliance Certificate (ECC) – should be secured prior to the development
and construction of the mine.
 Environmental Protection and Enhancement Program (EPEP) – the document that details the
methods and procedures the company will use in attaining its environmental protection and
management objectives over the life-of-the-mine.
 Annual Environmental Protection and Enhancement Program (AEPEP) – based on the
approved EPEP to implement progressive rehabilitation measures.
 Final Mine Rehabilitation/Decommissioning Plan ( FMR/DP) – submitted together with the
EPEP before the start of mining operation, ensures that all disturbed areas will be restored, as
near, as possible to its original state or to a pre-agreed productive end-use.
 In addition, the mining/exploration permit applicant is required to secure a Certificate of
Satisfactory Environmental Management and Community Relations Record.

Monitoring of such environmental programs and also of compliance on the terms and
conditions of the agreements and review on any possible violations of the law are also in place. As
stated by the Mines and Geosciences Bureau, “responsible mining and environmental protection can
co-exist. Modern and responsible mining does not destroy the environment; it just alters it to another
land use. The future use of the land after mining is designed and planned even before mining starts.
The government also requires that mining contractors institute an Environmental Protection and
Enhancement Program before the mining operation starts in order to protect the environment.5”

Conclusion
Sustainable mining can be done. The Brundtland Commission defines “sustainability, as the
ability of the current generation to meet their own needs without compromising the ability of the
future generations to meet their own needs”. The definition did not call for preservation of natural
resources, rather it is for a more responsible and sustainable use of them. It is just a matter of
balancing resource consumption and its utilization. Lastly, the environmental protection, not only in
mining but in general, is not solely the Government’s responsibility but is also of the contractors’,
non-governmental organizations’ and civil organizations’, and most importantly, the citizens’.

5
Ibid.