Leo Jasareno Acting Director Mines and Geosciences Bureau Department of Environment and Natural Resources Presentation Conference on Mining's Impact on Philippine Economy and Ecology GOVERNMENT PERSPECTIVE

1. MINING’S IMPACT ON THE
PHILIPPINE ECONOMY AND
ECOLOGY:
GOVERNMENT PERSPECTIVE
LEO L. JASARENO
Acting Director
Mines and Geosciences Bureau
Department of Environment and Natural Resources
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2. Shall we mine or not?

3. “The Philippines possesses a
strong mineral resource
base that justifies mining as
a development option - for
as long as it is responsible
mining where benefits far
costs.”
outweigh the costs ”
From: Garwin

4. THE LEGAL BASIS OF MINING
•Section 2, Article XII of the 1987 Philippine Constitution
“The exploration, development, and utilization of natural resources shall be under the
full control and supervision of the State. The State may directly undertake such
activities, or it may enter into co-production, joint venture, or production-sharing
agreements with Filipino citizens, or corporations or associations at least 60 per
centum of whose capital is owned by such citizens Such agreements may be for a
citizens.
period not exceeding twenty-five years, renewable for not more than twenty-five years,
and under such terms and conditions as may provided by law”.
“The President may enter into agreements with foreign-owned corporations involving
either technical or financial assistance for large-scale exploration, development, and
large scale
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.”
•Section 2 of the Philippine Mining Act of 1995
“All mineral resources in public and private lands within the territory and exclusive
economic zone of the Republic of the Philippines are owned by the State. It shall be
the responsibility of the State to promote their rational exploration development
exploration, development,
utilization and conservation through the 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 affected communities”.

5. Philippine Mining Act and IRR
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• Enshrined the principles of
responsible mining;
• Placed strong focus on life-of-mine
and after-mining environmental and
social responsibilities;
• Ensured equitable sharing of benefits;
and
• Protected the rights of Indigenous
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Peoples and communities.

6. Other Major Laws on Mining
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National Integrated Protected Areas System Act
• Indigenous Peoples Rights Act
• Environmental Laws
• Philippine EIS System
• Clean Water Act
• Clean Air Act
• Ecological Solid Wastes Management Act
• Hazardous and Toxic Wastes Management Act
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• Local Government Code
• Forestry Code
• Small-Scale Mining Laws

7. Mining is NOT allowed in:
g s O a o ed
• Old ggrowth or virgin forests, p
g , proclaimed watershed forest reserves, ,
wilderness areas, mangrove forests, mossy forests, national parks,
provincial/municipal forests, tree parks, greenbelts, game refuge, bird
sanctuaries and areas proclaimed as marine reserves/marine parks,
tourist zones and identified initial components of the NIPAS;
zones,
• Critical watersheds with appropriate barangay/municipal/ city/provincial
Sanggunian ordinance;
• Forest and other government reservations (unless with clearance from
agency concerned);
• Built-up areas (buildings, bridges, private plantations, etc.) unless with
consent from agency or party concerned;
• Ancestral domains/lands unless with Free and Prior Informed Consent
from Indigenous Peoples;
• Coastal areas; and
• Other areas expressly prohibited by law.

8. THE LEGACY MINES
Rallying point of
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those who oppose
new mining
projects

9. FINAL MINE
REHABILITATION/DECOMMISSIONING PLAN
Year 0: Mined-Out Area

10. Year 2

11. Year 3

12. Year 4

13. Approved Mining Tenements
(As of January 2012)
Exploration Permit 115
Mineral Production Sharing Agreement
g g 339
Financial or Technical Assistance Agreement 6
Mineral Processing Permit 68
Industrial Sand and Gravel Permit 214
Mining Lease Contract 36
TOTAL EXISTING/APPROVED MINING PERMITS 778

14. Operating Mines
• 3 Copper mines (with gold and
C i ( ith ld d
silver)
• 1 Copper mine (with gold,
s e
silver zinc)
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• 5 Gold mines
• 3 Chromite mines
• 1M
Magnetite mine
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• 18 Nickel mines
• 1 Nickel Processing Plant
• 1 Copper Processing Plant
• 2000+ sand and gravel, and
other non-metallic small-scale
operations
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15. Mine Development
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Projects Far Southeast Copper-
Gold Project
OceanaGold Didipio
Copper-Gold Project
Siana Gold
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Project Boyungan
Runruno Gold- Gold Project
Molybdenum Project
Sumitomo
Kingking Copper Gold
Nickel Project
Project
Tampakan Copper Project

16. Industry Performance
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2009 2010 2011*
GROSS PRODUCTION VALUE IN MINING (MGB)
g g
Large Scale Metallic Mining P 42.8 Billion P 68.2 Billion P 88.0 Billion
Small Scale Gold Mining 36.8 Billion 42.9 Billion 34.1 Billion
Non-metallic mining 26.5 Billion 33.3 Billion nya
TOTAL P 106.1 Billion P144 .4 Billion P122.1 Billion
GROSS VALUE ADDED IN MINING AT CURRENT PRICES P 65.8 Billion P 88.2 Billion P 56.1 Billion*
(NSCB)
Mining Contribution To GDP 0.8% 1.0% 1.2%
TOTAL EXPORTS OF MINERALS & MINERAL PRODUCTS (BSP) $1,470 Million $1,870 Million $2,043 Million
Mining Contribution To Total Exports 3.9% 3.7% 5.6%
TOTAL EXPORTS OF NON-MET. MINERAL MANUFACTURES $156 Million $162 Million $130 Million
(BSP)
Mining Contribution To Total Exports 0.4% 0.3% 0.4%
EMPLOYMENT IN MINING AND QUARRYING (DOLE) 169,000 197,000 205,000
Mining Contribution To Total Employment 0.5%
0 5% 0.5%
0 5% 0.6%
0 6%
TAXES, FEES AND ROYALTIES FROM MINING
Fees, Charges & Royalties Collected by DENR-MGB/LGUs P 396.2 Million P 800.6 Million P 558.6 Million
Excise Tax Collected by BIR 718.8 Million 1,299.7 Million nya
Taxes Collected by Nat l. Gov t. Agencies
Nat'l Gov't 10,272.5
10 272 5 Million 10,612.4
10 612 4 Million nya
Taxes and Fees Collected by LGUs 992.8 Million 1,113.0 Million 23.0 Million
TOTAL P12,380.3 Million P13,825.7 Million P581.6 Million
* - Preliminary

17. Industry Performance
y
2011 2010 % Change
Mineral Commodity Unit
Quantity Value Quantity Value Qty Value
.
PRECIOUS METALS 65,898,447,124 71,698,391,862 -8
Gold kg 31,120 63,142,761,963 40,847 70,508,198,235 -24 -10
Silver kg 45,530 2,755,685,161 41,004 1,190,193,627 11 132
BASE METALS 56,248,482,781 40,271,604,780 40
Copper Concentrate DMT 253,975 19,091,584,582 236,814 15,775,710,591 7 21
Nickel Concentrate DMT 38,798 11,197,108,000 33,539 9,795,473,000 16 14
Nickel Direct Shipping Ore DMT 20,104,142 24,463,091,114 13,763,734 14,080,650,478 46 74
Metallurgical Chromite DMT 25,483 145,178,018 14,807 117,135,758 72 24
Zinc DMT 37,354 1,036,557,037 19,819 502,634,953 88 106
Iron Ore DMT 126,177 314,964,029 0 0
TOTAL 122,146,929,905 111,969,996,642 9

18. PH now 2nd in global mine
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production ft
after R i
Russia
(United States Geological Survey Mineral Commodity Summaries 2012)

19. CHALLENGES
• Perception of mining as an environmental
despoiler;
• Lapses and delinquencies of miners;
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• Lack of monitoring capability of government;
• Insufficient national mineral resources
inventory;
• Insufficient Government Share from mineral
su c e t Go e e t S ae o ea
resources utilization;
• Security of investments; and
y ;
• Opposition of LGUs to mining.

20. CHALLENGES
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Small-Scale mining:
• Having 2 laws on small-scale mining;
• The unabated use of mercury in extracting gold;
• Unsafe mining practices;
U f i i ti
• Lack of environmental impact mitigation;
• Rampant child labor;
• Illegal use of heavy equipment and explosives;
• Non-collection of excise tax;
• Rapid depletion of mineral deposits due to
selective unsystematic method of mining; and
• Proliferation of illegal small-scale mining
operations.
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21. CHALLENGES
• Land Use Conflicts with -
• Farmlands.
• Ancestral land/domain.
• Key biodiversity areas.
• Proposed protected areas.
• Eco-tourism areas.
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• Agrarian reform areas.
• Forestry projects
projects.
• Fishing grounds.

22. The Road Forward
• Pursuing further the “Use it or Lose it
P rs ing f rther
Policy”;
• Enrolling the mining industry in the National
Greening Program;
• Participating in the Extractive Industry
Transparency Initiative;
• Responding to the legislative challenges to
the Mining Act;

23. The Road Forward
• Pursuing the early resolution of cases filed
against mining projects, such as the
petitions f
titi for W it of K lik
Writ f Kalikasan and d
Temporary Environmental Protection Order;
• Intensifying information, education and
communication campaign
campaign.

24. Mining Policy of the Aquino
Administration

25. THANK
YOU !
www.MGB.gov.ph

26. Siltation: From the
mine or not?

27. A mining area situated right along a road and
the coast, with vulnerable features.