state of mining: liberalization under the aquino administration and the people's movement

State of Mining:Liberalization under the Aquino Administration and the People’s p

Movement

Kalikasan PNE

Defend Patrimony! AllianceDefend Patrimony! Alliance

Philippine Mining Industry

• Mainly extractiveMainly extractive • Export‐oriented• Dominated by TNCs, local elite • Dependent on foreign capital and• Dependent on foreign capital and 

technologies

Philippine Mining IndustryExploration 

Philippine Mining Industry

Mine Development

Extraction

Initial Processing

Refining & Smelting

Fabricating

Mining Act of 1995• Investment Guarantees

– Repatriation of Capital

– Freedom from Expropriation

– Remittance from earnings and interest on foreign loans

– Freedom from requisition of properties

– Confidentiality of Information

• Tax Holiday during recovery of pre‐operating expenses for a maximum of 8 years from commercial production (FTAA)

• Income Tax carry forward of losses

• Water rights, timber rights, easement rights

Philippine Mining StatisticsPhilippine Mining Statistics

National Policy Agenda on Revitalizing Mining in theRevitalizing Mining in the Philippines (EO No. 270‐2004) 

• 2003, 23 then 63 (2007) Priority Mining Projects under GMA

• Overall value of production in 2006 reached P68.4 billion compared to P35.2 billion in 2002

• 8 tailings dam failures since• 8 tailings dam failures since  2001

• 4 tailings dam failures in Rapu‐Albrapu, Albay.

Employment and TaxesEmployment and Taxes

Mining AgreementsMining Agreements

2005 2006 2007 2008 20092005 2006 2007 2008 2009+

Mining Concession AreaMining Concession Area 

2007 2008 2009 July 2010

EP 89,828.76  NA NA 345,974

MPSA 373, 201  NA NA 587,340

FTAA 41,199 87,249 90,341 109,217, , , ,

TOTAL 514,948 600,000 + 782, 187 1,042,531

New Trends in the Mining Industry ( )(2009‐2010)

• Renewed mining offensive • Expansion of magnetite – Record breaking gold prices 

$1,300/oz  (AO 09/28/10)– Rising industrial metal prices 

mining with small scale mining permit

• Proliferation of coal miningor economic security concern

– New DENR Secretary and President Aquino?

Proliferation of coal mining contracts– Energy supply for local power 

plants• Entry of big local businesses

– MPC/Pangilinan– San Miguel/Cojuangco

p– Export

• Continuing Militarization and Human Rights

– Lucio Tan,

• Use of greenwashing, corporate propaganda

and Human Rights Violations in mining‐affected areas

p p p g

Killings of Environmental ActivistsKillings of Environmental Activists

New Administration,ld lSame Old Mining Policies

• Appointed Ramon Paje as DENR • Issued loggingSecretary

• Increased target mining output from 2009 to 30%  for 2010 (Arroyo was 10 20% only)

Issued logging moratorium

• Cancel 600 mining  10‐20% only)

• Interfered in the South Cotabato open‐pit mining ban to pursue a “win‐win” solution for Xstrata and 

gapplications

LGU

• Did not act on Mt. Diwalwal mining privatization

• Did not reverse midnight mining deals like FTAA in  Palawan and MPSA in Camarines Sur (21 MPSA, 2FTAA, 13 EP)13 EP)

People’s StrugglePeople s Struggle

• Increasing resistance at • Local governmentIncreasing resistance at the grassroot level– Southern Tagalog 

Local government units imposing mining moratorium

(Romblon, Mindoro, Batangas, Palawan)

Eastern Visayas

• Continuing Legislative and Legal Actions

– Eastern Visayas

– Southern Mindanao Region

– writ of Kalikasan

– People’s Mining Bill

– CARAGA Region

– SoCSKSarGen Region

• Broadening of alliances

• International support

People’s StrugglePeople s Struggle

Our CallOur Call

1 Mining moratorium on Large‐scale Mining1. Mining moratorium on Large scale Mining Projects and Operation

2 Repeal the Mining Act of 19952. Repeal the Mining Act of 1995

3. Pass the People’s Mining Bill

Defend our Patrimony, Protect our Rights!y, g