To Mine or Not to Mine The Case of the Tampakan Copper-Gold Project: Mindanao, Philippines Presented to the Department of National Defense. Conference Room , 3rd Floor, DND Building. Camp Aguinaldo. Quezon City, Philippines May 31, 2012 Esteban C. Godilano, Ph.D. With contributions by Atty. Christian S. Monsod Climate Change Congress of the Philippines

1. To Mine or Not to Mine
The Case of the Tampakan Copper-Gold
Project: Mindanao, Philippines
Presented to the Department of
National Defense. Conference Room
, 3rd Floor, DND Building. Camp
Aguinaldo.
Quezon City, Philippines
May 31, 2012
Climate
Change
Congress of the
Philippines
Room 1 Bonifacio Hall, UP SOLAIR Esteban C. Godilano, Ph.D.
Diliman, Quezon City, Philippines With contributions by Atty. Christian S. Monsod
Phone no. (632) 408-4203/Email address:
email. sgodilano@yahoo.com; christiansmonsod@gmail.com
climatechangecongress.org

2. 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

3. 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).
 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 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.

4. 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.

5. 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.

6. 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: The Tampakan Project is a 2.4 billion
South Cotabato, Sarangani, metric ton deposit, containing 13.5
Sultan Kudarat and Davao del million metric tons of copper and
Sur, and represents one of the 15.8 million ounces of gold at a 0.3
% cut-off grade. The Project is
world’s largest undeveloped operated by Philippine-based
copper-gold deposits in the affiliate Sagittarius Mines, Inc. a joint
South East Asia - Western venture between Xstrata Copper
Pacific Region. and Indophil Resources.

7. 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.

8. 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.

9. 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)

10. 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).

11. 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. Marinduque Mine Tailings Storage
 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).

12. Response from SMI
• "We have completed our SMI Technical Studies
Environmental Impact Assessment • Mine closure and
(EIA) studies in accordance with rehabilitation
relevant local and international • Water resources
standards”. • Mine waste
• These robust, evidence-based management
studies involved both Filipino and • Terrestrial and aquatic
international experts and have ecology
taken a number of years to • Noise and vibration
• Social impact
complete as part of our integrated
assessment
mine planning process. • Visual amenity
• The EIA identified the proposed • Climate and
measures to mitigate and manage meteorology
the potential environmental and • Economic benefits
social risks,” (SMI 2010). • Social benefits

13. Response from SMI
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.
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.
SMI Environmental Awards

14. Response from SMI
• 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.
 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).

15. 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 (1) Catisan Allah Watershed : 742,858 has.
(2) Marbel Watershed: 122,659 has.
985,730 has.
(3) Padada River Watershed: 120,213 has.

16. 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 A total of 696 km of rivers/stream length that could be
total impacted areas affected.
 Padada River watershed: 259 km.
 Marbel watershed: 95 km.
 Catisan Allah River watershed: 342 km.

17. Land Use Impact
Within the mining claim area, 32 and 75 percent of the
agriculture lands and forested areas will be affected.
Original
Impact Mining
Land Uses
Areas 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 84,858 0
swamps
6. Lakes 9,417 0
7. Non Agriculture 5,707 6
(Grass land)
8. Built-up 1,097 14
Total 171,363 30,589

18. Population
Province/City/Municipality (NSO
2010)
Impacted
Davao Sur
1) Hagonoy
232,201
48,166
Municipalities plus Cotabato
Approximately 16 Municipalities,
2) Matanao 50,928
City, are in direct influence of the Tampakan
3) Kiblawan 43,057
4) Padada 25,127 mines. As of NSO 2010 data, impacted
5) Sulop 29,082 population is approximately 1 million people.
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

19. 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.
Original
Impact Mining
CC Impact Watershed
Areas Claim In the case of flooding caused by climate
1. Landslide 161,542 39,207 12,515 change and a breach of the controlled structure
2. Soil Erosion 159,961 16,156 3,912
in the mine area for affluent, the total flooded
3. Drought 68,206 37,234 0
4. Flooding 491,642 185,330 131
area of 491,642 has. will be contaminated by
5. Not Affected 158,822 27,411 14,031
1.35 Bt of toxic material including 250 Mt of high
Total 1,040,173 305,338 30,589 potential acid forming waste rocks.

20. 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.

21. Why watershed
planning
approach? and supply
“Protection of the quality
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.

22. Should mining be allowed in the
Philippines?
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.

23. TEV and WAVES
Ecosystems are especially important
for developing countries, where the Tributaries in the Tampakan Watershed
livelihoods of many people depend
directly on healthy ecosystems.
 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.

24. 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.

25. 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 SMI Seminar on
Human Rights
Economic, Social and Cultural Rights
[ICESCR], Article 11)

26. 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)

27. Impacts and Footprints
Sharing the Pie, Dividing Responsibilities
Agricultural Sector
LAND USE DENR Grassland Agriculture ,
Lakes 5,707 ha 32,627 ha
4,987 ha (4%)
9,417 ha (24%)
(3%)
SMI (7%) Mangrove
DILG 30,538 ha 217 ha
1,083 ha (18%) (0.16%)
(1%)
Marshland
and swamps
Fishponds
84,858 ha
1,884 ha
(63%)
(2%)
DA
134,704 ha
(78%) 72 % is under fisheries
- 96,376 ha without CC
- 491,642 with CC

28. Impacts and Footprints
Sharing the Pie, Dividing Responsibilities
LAND USE DENR
POPULATION
3% SMI
90,216
SMI (10%)
DILG 18%
1%
DILG
DA 825,094
134,704 (90%)
ha
(78%)

29. 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).

30. CONCLUSION
Doing nothing and a
Marinduque Mine Tailings at Boac River
business as usual approach (the river is dead until now)
to mining coupled with the
uncertainty of climate change
will be an indictment of our
generation that our children
will never forgive.
“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

31. RECOMMENDATIONS
1. Science-based vulnerability mapping to
include the New Normal (climate change) in
Marinduque Mine Tailings at Boac River
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 Thank You
stake.