Yes and no to mining

As expected, the recent forum on mining highlighted the volatile debate between the pro and anti mining groups. This oftentimes happens when business logic is ranged against emotions.

The extent of emotions being brought forth by the mining issue is shown by the remarks of Manila auxiliary Bishop Broderick Pabilu who was quoted in media saying, “Business is only after profit and does not help the poor. Profit does not help the poor.”

Either the good bishop was misquoted or he has forgotten that without profit no business will survive and without business there will be no employment and there will be more poor people. Even the Catholic Church must make profit on the various services that it charges the faithful, e.g., fees for baptism, wedding, etc. Without profit, the local parishes cannot give its share to the archdiocese or to Rome.

Yes to total ban of irresponsible mining

I admire the gutsy Gina Lopez whose hard work, single-minded dedication and passion brought the sensitive issues surrounding the mining industry into the forefront of public awareness. I definitely support her effort to bring to government and public attention the devastation of the environment caused by irresponsible mining entities.

I agree with Gina that government must implement a total ban on irresponsible and illegal mining activities. But demanding for total ban of all mining activities may not be realistic.

I cannot imagine a world without mining activities. In the same manner, I cannot envisage the absence of another extraction activity, the extraction of oil from the earth or from under water. Without minerals, metals, gold, and without oil, our world will not be as it is now with all the conveniences provided by these extractions from mother earth.

Hidden wealth

According to estimates of experts, our country is blessed with enormous wealth underneath the ground, wealth that can be harnessed to build a stronger Philippines.

I do not subscribe to the idea that extracting this wealth and using it is detrimental to future generations. On the contrary, if we extract our wealth responsibly and put them to use wisely, we can create an economic environment that will raise the standard of living of our children’s children.

Changes in mining law

While those in the mining sector view the existing mining law as effective in ensuring that mining is beneficial to the country and the economy, many are quick to point out that there are some major points that could be revised and strengthened.

Secretary of Finance Cesar Purisima, for instance, observed that while the mining sector is generating revenues approximating P1.3 trillion, the government take is a measly P2 billion.

Apart from what looks like a huge disparity in sharing the economic benefits of the mining business, there is also the weak policing and implementation of rules and regulations, mostly due to graft and corruption prevailing at both national and local government levels.

To totally eliminate irresponsible and illegal mining, these loopholes must be plugged.

Example of responsible mining

To illustrate the benefits of responsible mining, allow me to present an example below. For the sake of transparency and fairness, I am also inviting readers to refute any portion of this story which is not fairly accurate.

There are mining companies that exert extra effort to do their responsible share in returning the environment to its old or even better state. One such company is Philex; and its story takes place in a remote community in Zamboanga del Norte.

When Philex Gold Philippines Inc. (PGPI) was exploring Sitio Lalab in Barangay Libay, Sibutad, Zamboanga del Norte in the early ’90s, the area reeked of the old practice of “swidden” or slash and burn farming (kaingin), compounded by the wanton felling of trees for shanties and log cabins. Illegal small-scale mining activities were also rampant.

Transformed

And yet, when they left in 2000, the place was magically transformed.

From 1997 to 1999, Philex exercised its mining rights. Of the 3,515 hectares covered by Philex’s Mineral Production Sharing Agreement (MPSA) though, only one percent or 38 hectares had been utilized during its mine-related activities.

On the other hand, while extracting for gold and other precious metals, the company planted 444,621 trees over four percent or 144.51 hectares of the land. Furthermore, 20 hectares of shoreline was planted with 132,500 mangrove propagules.  

Lilia Lagudas, one of the locals who lived in the municipality of Sibutad since childhood, recalls how barren the place was before Philex entered the picture.

Pre-mining rehab plan

The Sibutad greening project commenced after the passage of the Philippine Mining Act of 1995, otherwise known as Republic Act (R.A.) No. 7942, which mandates mining companies to have their Final Mine Rehabilitation and Decommissioning Plan (FMRDP) in place even before they start operation.

The law also requires large-scale mining companies to put FMRDP funds in a government depository bank with the Department of Environment and Natural Resources (DENR) and a Multi-partite Monitoring Team as co-depositors. This ensures that funds are readily available for the abovementioned purpose.

Edil Lagudas, Lilia’s son and also the chairman of Barangay Magsaysay (another impact barangay of the Sibutad greening project), retells about the care and maintenance program instituted by the Philex through upland environmental protection activities.

Continuous rehab

More than a decade after Philex stopped operations, rehabilitation work continues in Sibutad. In time, Philex foresees that the area will be lush with young trees.

Now that Philex plans to conduct further exploration activities for the eventual reopening of the Sibutad mining project, the community is once again expectant. Aside from the direct and indirect jobs generated, business can again be expected to flourish in the area.

Yes to responsible mining

As I mentioned earlier, it would be difficult to take the extreme position of stopping mineral extraction given the needs of modern day society. Life today without mining – from where we get iron, steel, aluminum, silver, copper, even oil and gas – would be unimaginable, like going back to the dark ages.

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Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. For a compilation of previous articles, visit www.BizlinksPhilippines.net.