Wednesday, April 27, 2011

DENR won’t impose mining moratorium

By Kristine L. Alave, Vincent Cabreza
Philippine Daily Inquirer, Inquirer Northern Luzon
First Posted 04:19:00 04/27/2011


MANILA, Philippines—The director of the Mines and Geosciences Bureau (MGB), an agency under the Department of Environment and Natural Resources (DENR), Tuesday dismissed the call of a Catholic bishop to declare a moratorium on mining in the wake of the Good Friday landslide in Pantukan town, Compostela Valley province.
MGB director Leo Jasareno said stopping all mining activities nationwide was a disproportionate reaction to the landslide that killed at least eight persons in the gold mining community of Panganason in Barangay Kingking. He said the problem was illegal small-scale mining, and not the mining industry in itself.
Jasareno said small-scale mining was vital to the mining industry, being responsible for about 70 percent of the gold mined in the country. (The quarrying of gravel and sand is also done by small-scale miners.)
He said there were 2,000-3,000 companies with small-scale mining permits nationwide, providing employment in remote areas.
Panganason residents began leaving their homes Tuesday in compliance with a government-ordered evacuation of the area that was found at high risk of more landslides.
On Monday, Manila Auxiliary Bishop Broderick Pabillo called for a moratorium on all mining operations until an efficient monitoring and control system had been put in place.
Pabillo also said the government should address “loopholes” in the Philippine Mining Act of 1995 before allowing both small miners and giant firms to exploit mineral resources.
Repeal Marcos-era decree
Illegal miners, many of whom are residents of mountain communities, number about 300,000, Jasareno said. In Pantukan alone, about 3,000 residents are engaged in mining.
Small-scale mining is a source of income for local governments, which have jurisdiction over these operations, Jasareno said.
He said the DENR recognized that the power to issue small-scale mining permits had been “abused.” Thus, he said, the MGB had proposed that President Benigno Aquino III repeal a Marcos-era decree empowering provincial governors to unilaterally approve such permits.
“We want to stop the implementation of Presidential Decree No. 1899 because it is the cause of the problem,” he said.
The decree, called An Act Establishing Small-Scale Mining as a New Dimension in Mineral Development, was issued in 1984. It is prone to abuse as local governments do not oversee the regulations as well as the safety of the permit holders, according to Jasareno.
The law that should be followed on small-scale mining is Republic Act No. 7076 (An Act Creating a People’s Small-Scale Mining Program and for Other Purposes), which was enacted in 1991, he said.
RA 7076 mandates stringent rules for mining companies and ensures that the government gets a share of the income from the operations.
Jasareno said Environment Secretary Ramon Paje had submitted the proposal to repeal PD 1899 to the Office of the President.
In La Trinidad town, the Benguet Federation of Small-Scale Miners (BFSSM) said the government should start enforcing a 2004 policy recognizing small-scale mining as a formal sector by including pocket miners or their groups as stakeholders once the state reopens mining areas for auction.
Federation president Lomino Kaniteng said these areas had been weeded of underdeveloped or nonperforming properties that had been leased to big mining firms.
Paje began a review process of all mine leases last year on the directive of Mr. Aquino.
Kaniteng said small-scale miners held high hopes in 2004 when then President Gloria Macapagal-Arroyo issued Executive Order No. 270, the national policy agenda for revitalizing the mining industry.
“Under EO 270, one of the guiding principles is the acceptance of small-scale mining as a formal sector in the mine industry, and up to now a policy has never been drafted to that effect,” he said.
Section 2 of EO 270 states: “Small-scale mining shall be promoted as a formal sector of the minerals industry and as part of the development initiative for both downstream and upstream industries.”
The order required the DENR to develop a mineral action plan, but it was silent on small-scale mining, Kaniteng said.
BFSSM records show that small-scale mining is estimated to be worth P250 billion.
In Benguet province, three tons of gold produced by small-scale mining groups were sold to the Bangko Sentral ng Pilipinas (BSP) between 2002 and 2007, according to BSP records.
But despite the sector’s potentials and RA 7076, the industry “never got respect,” Kaniteng said.
He said pocket miners operated without strict supervision in many parts of the country because the law was not enforced properly.
In many provinces, local governments have not set up the required provincial mining regulatory boards (PMRBs) that would issue licenses to operate small-scale mines.
“Where is it legal for mayors to issue mining permits? That should not have happened,” Kaniteng said, referring to reports that the gold rush sites in Compostela Valley were provided legal cover by municipal permits.
Most towns also have no expertise to assess whether a proposed mine site is safe, said Kaniteng, a civil engineer.
“RA 7076 takes charge of artisanal operations, meaning shallow surface and shallow underground [tunnels], but many of the towns now addressing mine ventures in their areas do not know how deep the tunnels should go or what kind of support these tunnels really need,” he said.
Benguet as model
Kaniteng said many mining towns had made Benguet a model for small-scale mining practices because the province hosted the first American-led mining operations in the early 1900s.
Benguet, Mountain Province, Kalinga and parts of Abra also share a centuries-old gold panning tradition, he said.
As well, Benguet has a functioning PMRB that spent years earning the trust of pocket miners, he said.
Kaniteng said that last year, various pocket-mining groups allowed the PMRB to conduct a survey that would list for the first time who and how many small-scale miners were operating in Benguet.
Like many other mine sites, Benguet is now dealing with migrant pocket miners from Mountain Province and Ifugao, “so there is a great deal of diplomacy and politics involved in threshing out problems,” Kaniteng said.

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