To Mine or Not to Mine The Case of the Tampakan Copper-Gold

Project: Mindanao, Philippines

Esteban C. Godilano, Ph.D.

With contributions by Atty. Christian S. Monsod email. sgodilano@yahoo.com; christiansmonsod@gmail.com

Room 1 Bonifacio Hall, UP SOLAIR

Diliman, Quezon City, Philippines

Phone no. (632) 408-4203/Email address:

climatechangecongress.org

Climate

Change

Congress of the

Philippines

Presented to the Department of

National Defense. Conference Room

, 3rd Floor, DND Building. Camp

Aguinaldo.

Quezon City, Philippines

May 31, 2012

Presentation Outline

1. Our mineral wealth

2. What others are saying about

Tampakan

3. What has been done by SMI

4. CCCP scientific analysis on

Tampakan

5. Moving forward

Our Mineral Wealth

The mining industry is about $840 billion. Philippines gold

resources can amount to 7.36 trillion pesos or about 76

percent of the country GDP of 9.73 trillion pesos in 2011. (NSDB 2012).

The drawback: mining activities are usually located in rural

and mountainous areas and can affect farmlands, rivers and

shorelines, where the poorest of the poor are located namely,

the farmers, indigenous peoples and municipal fishermen.

This is equal to more than 65.1 times the income gap of

113.1 billion pesos, the amount needed a year to raise the

poor above the threshold of poverty.

THE QUESTION

Should the Tampakan Copper-Gold project

be allowed in the Philippines?

• CCCP providing data and facts in geospatial format on

the controversies that surround the Tampakan Copper-

Gold project.

• CCCP argue on the adaption of watershed as the

planning domain in conducting impact studies on mining

given the “new normal” brought about by climate

change. impacts on food and water security, human rights and social

justice,

suggesting analytical tools in calculating the full cost of

mining.

Impacts of Mining • Mining cannot be conducted without affecting the land,

water, and air surrounding the site, as well as the various

natural resources found in them.

• Mining involves the extraction of minerals, but may also

involve the use or destruction of non-mineral resources,

such as freshwater, timber, and wildlife.

resulting in health problems, displacement of people,

social divisiveness, even the need to provide PNP and

AFP protection to mining companies.

disasters that can happen from the cutting of trees, from

landslides, siltation and erosion, and accidents from

mining structures.

• All these translate into public costs which are borne mainly

by the poor. This is the social justice issue of mining.

Who are the Owners of the

Tampakan project?

Located on the southern

Philippine island of Mindanao,

approximately 40 km. north of

General Santos City. The

Project is situated on the

boundaries of four provinces:

South Cotabato, Sarangani,

Sultan Kudarat and Davao del

Sur, and represents one of the

world’s largest undeveloped

copper-gold deposits in the

South East Asia - Western

Pacific Region.

The Tampakan Project is a 2.4 billion

metric ton deposit, containing 13.5

million metric tons of copper and

15.8 million ounces of gold at a 0.3

% cut-off grade. The Project is

operated by Philippine-based

affiliate Sagittarius Mines, Inc. a joint

venture between Xstrata Copper

and Indophil Resources.

What will happen? • SMI will clear 3,935 hectares of

forest and arable lands when it

starts mining operations,

• It will build its mine tailing

facilities near one of the

tributaries of Mal River, the

biggest river system in the

Tampakan-Columbio area.

The mine life is expected to reach 70 years with more

than US$ 5.4B in needed investments.

SMI has allegedly spent more than P10 billion already

for the exploration and other activities of the company

since 2000.

Who will be

affected? • More than 1,000 families, majority of

them belonging to the B’laan tribe, will

be displaced and relocated once the

company begins commercial operations.

SMI promised to provide scholarships,

livelihood programs and whatever it is

that they need or would help in their

development.

The common perception of the B'laan community is that they

would not be affected by the operations. “As long as their

ancestral lands would not be affected, they were willing to

support the mining company as it provides incentives that the

communities need.

Who will be affected?

• Damage to critical watersheds would leave thousands of farmers and

fishermen with no means to earn a living. The mine development would

draw down the capacity of catchments that supply drinking water and

irrigation water to NIA irrigation systems that sustain 200,000 hectares

of agricultural land for 80,000 farmers in South Cotabato alone.

The Tampakan project estimates a water requirement rate of 908 million

liters per second.

• The mining project proposes to store 1.65 billion tons of waste rock and

1.1 billion tons of tailings in areas of high seismic activity. The open pit

will not be back filled and the billions of tons of acid generating waste

rocks and wet tailings will require management in perpetuity.

“The Tampakan mine has a high potential for loss of life and high

environmental damage if a failure of Dams or Rock Storage facilities

occurs”. (Goodland and Wick 2010)

What will be its impacts?

• If SMI is allowed to operate, it would

destroy the environment and

contaminate the river systems. It

would dry up the irrigation system in

the lowlands and the aquifers in

General Santos and nearby

Koronadal City (The Catholic Church in South

Cotabato).

The mine areas are found atop the headwaters of all the big rivers that

drain into five provinces namely South Cotabato, Sarangani, Davao del

Sur, Sultan Kudarat, and Maguindanao, and the cities of General Santos

and Koronadal.

Any degradation in this region will potentially result in the increased

siltation of the rivers, a decrease in the water level and a high risk of

being contaminated by toxic materials coming from the mine operation

upstream (Catherine Abon, Geologist, UP NIGS).

What will be its impacts?

• Tampakan project will affect agricultural production and infrastructure

projects as the watershed serving the Mal River will be threatened. The

Mal River, supplies two major irrigation systems and 22 communal

irrigation systems covering 13,968 has. and involving 7,421 farmers.

SMI is planning to establish a tailing storage facility in Matanao straddling

1,018 has. that will serve as dumping site of mining wastes (Mindanews: 16

September 2010).

• Tampakan mining project is estimated to

produce 2.7 billion tons of mine wastes.

The mine wastes will be stacked up to

300 meters high and will cover about

500 has., thus the Tampakan Copper

Gold Project is said to be “one of the

most dangerous mining projects in the

world”. (Clive Montgomery Wicks, conservation

and development consultant).

Marinduque Mine Tailings Storage

Response from SMI • "We have completed our

Environmental Impact Assessment

(EIA) studies in accordance with

relevant local and international

standards”.

• These robust, evidence-based

studies involved both Filipino and

international experts and have

taken a number of years to

complete as part of our integrated

mine planning process.

• The EIA identified the proposed

measures to mitigate and manage

the potential environmental and

social risks,” (SMI 2010).

SMI Technical Studies

• Mine closure and

rehabilitation

• Water resources

• Mine waste

management

• Terrestrial and aquatic

ecology

• Noise and vibration

• Social impact

assessment

• Visual amenity

• Climate and

meteorology

• Economic benefits

• Social benefits

Response from SMI

A total of 1.35 B tons of

material including

approximately 250 M tons

of high potential acid

forming waste rocks will be

stored in the TSF.

The tailings generated from the mine processing

activities will be managed and stored in the Tailing

Storage Facility (TSF) which will cover an

impounding area of approximately 1,000 has.

SMI Environmental Awards

Response from SMI

SMI has sponsored thousands of scholars in all school levels,

conducted medical missions, and employed tribesmen in their

labor force.

“Our commitment to ethical behavior underpins all our actions

and making this Project a reality requires us to work in

partnership with our stakeholders in a responsible way” (http://www.smi.com.ph/EN/Pages/Home.aspx).

• SMI is claiming that

they are welcomed by

the communities in the

mining site because of

the economic and

social benefits the

project will bring.

A picture is worth a thousand

words Watershed mapping

and impact studies

should be based on

a wholistic approach

of “ridge-rivers-

reef”. The mining

area straddles three

major watersheds

that will be affected

by SMI mining

operations and

covering

approximately

985,730 has.

(1)Catisan Allah Watershed : 742,858 has.

(2)Marbel Watershed: 122,659 has.

(3)Padada River Watershed: 120,213 has.

Impact areas in the watershed Direct Impact

Direct impact area

within the watershed

totaled 271,175 has.

These are low lying

areas that are prone to

contamination including

the Liguasan Marsh.

The Catisan Allah

Watershed comprises

the largest area

covering 162,623 has.

or 60 percent of the

total impacted areas A total of 696 km of rivers/stream length that could be

affected.

Padada River watershed: 259 km.

Marbel watershed: 95 km.

Catisan Allah River watershed: 342 km.

Land Use Impact

Land Uses

Impact

Areas

Original

Mining

Claim

(ha)

1. Forest 20,064 15,077

2. Agriculture 48,119 15,492

3. Mangrove 217 0

4. Fishponds 1,884 0

5. Marshland and

swamps

84,858 0

6. Lakes 9,417 0

7. Non Agriculture

(Grass land)

5,707 6

8. Built-up 1,097 14

Total 171,363 30,589

Within the mining claim area, 32 and 75 percent of the

agriculture lands and forested areas will be affected.

Impacted

Municipalities Approximately 16 Municipalities, plus Cotabato

City, are in direct influence of the Tampakan

mines. As of NSO 2010 data, impacted

population is approximately 1 million people.

Province/City/Municipality

Population

(NSO

2010)

Davao Sur 232,201

1) Hagonoy 48,166

2) Matanao 50,928

3) Kiblawan 43,057

4) Padada 25,127

5) Sulop 29,082

6) Malalag 35,841

South Cotabato

1) Tampakan 47,159

2) Columbio No Data

3) Lutayan No Data

North Cotabato 163,231

1) Tulunan 49,865

2) Mlang 113,366

Maguidanao 148,312

1) Buluan 32,310

2) Datu Paglas 29,979

3) Datu Pinag 49,971

4) Pagalungan 36,052

Shariff Kabungsuan

1) Kabuntalan 23,143

Cotabato City 301,264

Total 915,310

Climate Change Impact and Fault

lines SMI technical studies

on “climate and

meteorology” did not

include the impact of

climate change in the

analysis as this is not

included in the EIA

guidelines.

CC Impact

Watershed

Impact

Areas

Original

Mining

Claim

1. Landslide 161,542 39,207 12,515

2. Soil Erosion 159,961 16,156 3,912

3. Drought 68,206 37,234 0

4. Flooding 491,642 185,330 131

5. Not Affected 158,822 27,411 14,031

Total 1,040,173 305,338 30,589

In the case of flooding caused by climate

change and a breach of the controlled structure

in the mine area for affluent, the total flooded

area of 491,642 has. will be contaminated by

1.35 Bt of toxic material including 250 Mt of high

potential acid forming waste rocks.

DENR does not support mining over 1,000 meters, yet the Tampakan mining

claim area covers approximately 11,517 hectares of lands (38%) 1,000 meters

above sea level (masl). Worse, underneath the mining area are series of fault

lines numbering 14 with a total length of 83 km.

Why watershed

planning

approach? “Protection of the quality and supply

of freshwater resources. Application

of integrated approaches to the

development, management and use

of water resources”. (Chapter 18 of the

Agenda 21)

We all live in a watershed and we believe that a watershed planning

approach is the most effective framework to address the complex

issues of the mining industry and above all food and water security

in the context of looming climate change impacts.

With Climate Change as the “new normal” a watershed approach to adaptation,

mitigation, anticipation and disaster management where the forests and minerals

are mostly located. A concerted and integrated effort using the watershed as the

planning domain is necessary. Landslide and flooding do not respect

administrative boundaries or local jurisdictions.

Mining should only be allowed when

four minimum conditions are met:

(1) the environmental, social and

economic costs are accounted

for in evaluating mining projects;

(2) the country gets a full and fair

share of the value of the

extracted resources,

(3) the institutional capabilities of the government to evaluate and regulate

mining activities are put in place; and

(4) since mining uses up non-renewable natural capital, the money from

mining are specifically used to create new capital such as more

developed human resources and infrastructure, particularly in the rural

areas.

Should mining be allowed in the

Philippines?

TEV and WAVES

Adopt Total Economic Valuation

(TEV) and Wealth Accounting and

Valuation of Ecosystem Services

(WAVES) which is an integration of

TEV and natural capital accounting.

WAVES is an initiative of the World

Bank which is supportive of

“responsible mining”.

WAVES is a comprehensive wealth management approach to long-term

sustainable development that includes all assets – manufactured capital,

natural capital, human and social capital. The methodological framework

is the UN’s System of Environmental and Economic Accounting (SEEA)

developed over the past 20 years.

Ecosystems are especially important

for developing countries, where the

livelihoods of many people depend

directly on healthy ecosystems.

Tributaries in the Tampakan Watershed

How will WAVES contribute to

poverty reduction?

• Valuation of ecosystem services will enable better

management of ecosystems.

Natural resources are an important asset for the poor

Improving the productivity of natural assets can lead to poverty reduction

by allowing the poor to accumulate assets of their own if economic

activities based on natural resources are not “employment of the last

resort”.

• Ecosystem accounting will also enable the

measurement of who benefits and who bears

the costs of ecosystem changes.

Essential for careful policy design so that the

poor (who lack complementary private assets)

also benefit from improved productivity.

Impacts on Human Rights

The Right to Life and

Security • Everyone has the right to

life, liberty and security

of person. (Universal Declaration

of Human Rights [UDHR]: Article 3)

The Right to Food • The State Parties to the

present Covenant,

recognise the

fundamental right of

everyone to be free from

hunger. (International Covenant on

Economic, Social and Cultural Rights

[ICESCR], Article 11)

SMI Seminar on

Human Rights

Impacts on Human Rights

The Right to Subsistence •Everyone has the right to a standard

of living adequate for the health and

well-being of himself and of his family,

including food, clothing, housing… (UDHR, Article 25) .

‘In no case may a people be deprived of its own

means of subsistence.’ (International Covenant on Civil

and Political Rights [ICCPR], Article 1.2 and ICESCR, Article

1.2)

The Right to Health •The State Parties to the present

Covenant recognise the right of

everyone to the enjoyment of the highest

attainable standard of physical and

mental health.’ (ICESCR, Article 12)

Impacts and Footprints Sharing the Pie, Dividing Responsibilities

LAND USE DENR

4,987 ha (3%)

DA 134,704 ha

(78%)

DILG 1,083 ha

(1%)

SMI 30,538 ha

(18%)

Agricultural Sector Agriculture , 32,627 ha

(24%)

Mangrove 217 ha (0.16%)

Fishponds 1,884 ha

(2%)

Marshland and swamps

84,858 ha (63%)

Lakes 9,417 ha

(7%)

Grassland 5,707 ha

(4%)

72 % is under fisheries - 96,376 ha without CC

- 491,642 with CC

Impacts and Footprints Sharing the Pie, Dividing Responsibilities

LAND USE

DILG 825,094 (90%)

SMI 90,216 (10%)

DENR 3%

DA 134,704

ha (78%)

DILG 1%

SMI 18%

POPULATION

In Cases of Doubt

• Until the new policies and institutional safeguards are fully in

place, the government should strictly apply the precautionary

principle. The principle is public policy under RA 9729

(Climate Change Act of 2009), and was enunciated by the

Supreme Court in issuing the Writ of Kalikasan.

Part V. Rule 20, “Sec. 1: When there is a lack of full scientific

certainty in establishing a causal link between human activity and

environmental effect, the court shall apply the precautionary principle

in resolving the case before it. The constitutional right of the people to

a balanced and healthful ecology shall be given the benefit of the

doubt.”

The Writ of Kalikasan means a legal remedy available to any natural or juridical person, entity authorized by law, people ’s

organization, non-government organization, or any public interest group accredited by or registered with any government

agency, on behalf of persons whose constitutional right to a balance and healthful ecology is violated, or threatened with

violation by an unlawful act or omission of a public official or employee, or private individual or entity, involving

environmental damage of such magnitude as to prejudice the life, health or property of inhabitants in two or more cities or

provinces. (Rules of Procedure for Environmental Cases A.M. No. 09-6-8-SC Rule 7, Sec. 1).

CONCLUSION

“Without social change, climate

change will just worsen the

situation especially for the

vulnerable and the

marginalized”. Archbishop of Cagayan de

Oro Most Rev. Antonio J. Ledesma, J.J., D.D., CCCP

Lead Convener

Doing nothing and a

business as usual approach

to mining coupled with the

uncertainty of climate change

will be an indictment of our

generation that our children

will never forgive.

Marinduque Mine Tailings at Boac River

(the river is dead until now)

RECOMMENDATIONS

Thank You

Marinduque Mine Tailings at Boac River

1. Science-based vulnerability mapping to

include the New Normal (climate change) in

the analysis.

2. DENR with CCCP to revisit the EIA and EIS

guidelines to include WS analysis and

reporting systems not only in mining but all

projects that requires ECC.

3. DENR, NEDA and CCCP should provide

the protocol and guidelines for TEV and

WAVES analysis in the mining industry.

4. Inclusion of Agriculture and Fisheries in the

mining industry study and analysis.

5. Food and water security should never be

compromised, our survival as a nation is at

stake.