The rational use of Philippine mineral resources

Rational mining requires a clear national industrial plan based on the principles of sustainable development.

It is most sad that the Commission on Appointments, heavily influenced by mining interests, rejected the appointment of Gina Lopez as Environment secretary.

This is a major setback for the advocacy for the environment and sustainable development. But from this setback, the movement for the environment and sustainable development will recover and further advance.

For instance, the effort to put in place an alternative mining law will be pursued with more determination.

The Philippine Mining Act of 1995 or Republic Act 7942 was enacted into law on the premise that liberalization of the mining industry will spur economic growth and bring prosperity to the country and our people.

However, since its enactment, which was followed by a string of Executive Orders that aggressively promoted the industry, there is very little evidence that shows the mining industry has benefited the Filipino people, including those communities in mining areas.

The Mining Act of 1995, too, has failed to recognize the role of the mining industry in the country’s industrialization and overall sustainable development path. The enactment of the law was motivated by the short- sighted objective to lure foreign investments and supply the mineral requirements of industrialized countries through multinational corporations, but at the expense of the environment and the rights of affected communities.

The 1995 Mining Act even included the provision of allowing 100% foreign-owned companies to exploit our natural resources through the Financial and Technical Assistance Agreement (FTAA) instrument.

The Mines and Geosciences Bureau ( MGB) reports that for the last 10 years, the industry only contributed between 0.7% and 1.0% to the country’s gross domestic product. The tax effort from the mining industry is below the national average, with overgenerous tax incentives and rampant tax evasion being the main culprits.

RA 7942 was enacted to open the country to exploitation — ex-

tracting and profiting from mining minerals — and encourage foreign and local investments in the industry but it does not ensure our fair share as owner of the minerals. It has lenient policies and provisions for mining applications and operations.

Further, it has inadequate provisions to uphold social, cultural, economic, and environmental rights of affected communities. In the same vein, the law is deficient in addressing increased disaster risks and vulnerabilities of mining- affected communities.

On top of all these, government agencies such as the MGB, the National Commission on Indigenous Peoples (NCIP), and local government units lack institutional capacity to monitor and regulate the industry effectively. Transparency and accountability remain wanting.

Our position is that in order to maximize the full potential of our mineral wealth and other natural resources, it is imperative to enact a new mining law that promotes rational mining. This will shift the current framework of resources exploitation towards a rational minerals management framework.

Rational mining requires a Minerals Utilization Framework — a clear national industrial plan based on the principles of sustainable development. Rational mining for us means that the industry will benefit the Filipino people, particularly the mining- affected communities. It also means properly delineating areas to be mined, identifying the no- go zones that should be given “protection status,” and respecting the community’s decision to disallow mining in their areas.

For rational mining to take place, there are four requisites. We need to know 1) what minerals we need ( to contribute to national industrialization), 2) how much minerals we need; 3) when do we need these minerals; and 4) where is the best location to extract them with minimum negative impact.

Several versions of a good bill have been filed in the 17th Congress. They are titled as “The Philippine Mineral Resources Act (PMRA) — An Act to Regulate the Rational Exploration, Development and Utilization of Mineral Resources, and to Ensure the Equitable Sharing of Benefits for the State, Indigenous Peoples and Local Communities.” The versions are House Bill ( H. B.) No. 54, sponsored by Rep. Kaka Bag- ao, H. B. No. 113 sponsored by Rep. Teddy Baguilat, Jr. and Rep. Lawrence Fortun, and H.B. No. 2663, authored by Rep. Tom Villarin. In the Senate, Sen. Risa Hotiveros and Sen. Grace Poe have filed Senate Bill Nos. 1069 and 1191, respectively.

Also known as the Alternative Minerals Management Bill ( AMMB), PMRA sets a benchmark for responsible and rational mining and addresses the gaps or loopholes in the current law. It is thus not an anti-mining bill.

The PMRA or AMMB presents a sustainable, need- based, rational minerals management policy framework geared towards the effective utilization of our mineral resources and ensures equitable sharing of benefits for the state, indigenous peoples, and local communities. It seeks to guarantee that the exploration, development, and use of mineral resources will primarily benefit the Filipino people. It prioritizes sustainable livelihood choices for communities as well as ensures that the gains from the mining industry will be maximized while preventing or mitigating its adverse effects. It recognizes that the issue of environment and sustainable development is also local and thus encourages local participation in decisions surrounding mining. And it protects the human rights of communities and individuals.

Minerals are finite and nonrenewable resources that should benefit the present and future generations of Filipinos.