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

Movement

Kalikasan PNEDefend Patrimony! Alliance

Philippine Mining Industry

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

technologies

Exploration

Mine Development

Extraction

Initial Processing

Refining & Smelting

Fabricating

Philippine Mining Industry

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 Statistics

National Policy Agenda on Revitalizing 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 2001

• 4 tailings dam failures in Rapu-rapu, Albay.

Employment and Taxes

Mining Agreements

2005 2006 2007 2008 2009+

Mining 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– Record breaking gold prices

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

or economic security concern– New DENR Secretary and

President Aquino?• Entry of big local businesses

– MPC/Pangilinan– San Miguel/Cojuangco– Lucio Tan,

• Use of greenwashing, corporate propaganda

• Expansion of magnetite mining with small scale mining permit

• Proliferation of coal mining contracts– Energy supply for local power

plants– Export

• Continuing Militarization and Human Rights Violations in mining-affected areas

Killings of Environmental Activists

New Administration, Same Old Mining Policies

• Appointed Ramon Paje as DENR Secretary

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

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

• Issued logging moratorium

• Cancel 600 mining applications

People’s Struggle

• Increasing resistance at the grassroot level– Southern Tagalog

(Romblon, Mindoro, Batangas, Palawan)

– Eastern Visayas– Southern Mindanao

Region– CARAGA Region– SoCSKSarGen Region

• Local government units imposing mining moratorium

• Continuing Legislative and Legal Actions– writ of Kalikasan– People’s Mining Bill

• Broadening of alliances• International support

People’s Struggle

Our Call

1. Mining moratorium on Large-scale Mining Projects and Operation

2. Repeal the Mining Act of 19953. Pass the People’s Mining Bill

Defend our Patrimony, Protect our Rights!