Mining firms bridge development gap

MANILA, Philippines - For years, Canatuan resident Arnel Magsayo could not sell his products in Zamboanga City because there were no farm-to-market roads. His daughter also had to travel for hours over rough terrain to get to the nearest school. Arnel and his family live on the outskirts of the mountainous Subanon tribal village in Zamboanga.

 But now,  Arnel and his fellow Subanon residents are experiencing economic growth thanks to easier transportation to Zamboanga City and other localities.

Rocky Dimaculangan, TVI’s director for public affairs, notes that thousands of passengers are now able to reach the towns of Siocon, Sirawai, Sibuco and Baliguian in Zamboanga del Norte to Zamboanga City on the southern tip of Zamboanga Peninsula or to Dipolog City up north via the Siocon-Canatuan-R.T. Lim route.

“This route now boasts of four steel bridges that TVIRD helped build in partnership with the Philippine government shortly before the company began producing gold and silver in Canatuan in mid-2004.” The road is regularly maintained by TVIRD’s Civil Engineering Services group.

Before TVIRD’s operations, the R.T. Lim-Canatuan-Siocon route was not an alternative. It was only when the company helped the local government in the upkeep and maintenance of the road that it became of use to the residents of the surrounding communities. TVIRD has taken it upon itself to maintain the east-west road from R.T. Lim town in Zamboanga Sibugay to Canatuan, and from Canatuan to Siocon town proper in Zamboanga del Norte, a total of 78 kilometers.

New opportunities have opened up. Bus owners and their drivers now have a viable route to ply. Small sari-sari stores and carinderias have also opened up along the length of the road. Other residents are able to engage in trade – buying and selling products and raw materials from adjoining cities and vice-versa, resulting in greater economic activity within the area. 

Over the years, mineral development firms have, on their own accord, invested in structures that support the livelihood of the communities around it—roads, water and power systems, for example, which benefit those living in surrounding areas. According to Dimaculangan, “It is worth noting that most of these structures are built in remote, inaccessible areas that the local government would not be readily able to develop on its own. In many cases, it is only through the infrastructure built by the mineral development firms, all at no cost to the government, that residents of these areas are able to gain access to basic needs such as power and piped water.” 

Moreover, communities around mineral developments benefit from social programs of these firms, usually in the areas of health, education, environmental conservation, or livelihood enhancement.

In 2009 alone, TVI spent around P8 million in fulfilling its Social Development and Management Plan for the impact communities. 

The socio-economic impact of mineral development industry on the Philippine economy is huge. Between 2004 and 2009, foreign investments in the sector reached $2.8 billion. In 2009, its contribution to the gross domestic product (GDP) was placed at P100.5 billion. Given the wealth of the country’s mineral resources, the opportunities for growth are huge.

As one of three priority sectors of the government, the mineral development industry can bring in investors with the capital, technology and expertise that the Philippines can benefit from. More importantly, it would create jobs in the communities where these are most needed. At the very least, some 200,000 direct jobs, and an equal number of indirect jobs, are expected to be created as a result of the operations of mineral development within the next few years. Allied industries will also experience growth, the effects of which will spill over to the rest of the economy.