State of Mining: Liberalization under the Aquino Administration and the People's Movement.

1. State of Mining:
Liberalization under the Aquino
Administration and the People’s
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Movement
Kalikasan PNE
Defend Patrimony! Alliance
Defend Patrimony! Alliance

2. Philippine Mining Industry
• Mainly extractive
Mainly extractive
• Export‐oriented
• Dominated by TNCs, local elite
• Dependent on foreign capital and
Dependent on foreign capital and
technologies

3. Philippine Mining Industry
Philippine Mining Industry
Exploration
Mine Development
Extraction
Initial
Processing
Refining & Smelting
Fabricating

4. 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

5. Philippine Mining Statistics
Philippine Mining Statistics

6. National Policy Agenda on
Revitalizing Mining in the
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
8 tailings dam failures since
2001
• 4 tailings dam failures in Rapu‐
rapu, Albay.
Alb

7. Employment and Taxes
Employment and Taxes

8. Mining Agreements
Mining Agreements
2005 2006 2007 2008 2009+
2009

10. Mining Concession Area
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

11. New Trends in the Mining Industry
(2009‐2010)
( )
• Renewed mining offensive • Expansion of magnetite
– Record breaking gold prices mining with small scale
$1,300/oz (AO 09/28/10) mining permit
– Rising industrial metal prices • Proliferation of coal mining
Proliferation of coal mining
or economic security concern
contracts
– New DENR Secretary and
President Aquino? – Energy supply for local power
p
plants
• Entry of big local businesses – Export
– MPC/Pangilinan
• Continuing Militarization
– San Miguel/Cojuangco
and Human Rights
and Human Rights
– Lucio Tan,
Violations in mining‐
• Use of greenwashing, affected areas
corporate propaganda
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13. Killings of Environmental Activists
Killings of Environmental Activists

14. New Administration,
Same Old Mining Policies
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• Appointed Ramon Paje as DENR
• Issued logging
Issued logging Secretary
moratorium • Increased target mining output from
2009 to 30% for 2010 (Arroyo was
• Cancel 600 mining
g 10‐20% only)
10 20% only)
applications • 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)
13 EP)

15. People s Struggle
People’s Struggle
• Increasing resistance at
Increasing resistance at • Local government
Local government
the grassroot level units imposing mining
– Southern Tagalog moratorium
(Romblon, Mindoro, • Continuing Legislative
Batangas, Palawan)
and Legal Actions
– Eastern Visayas
Eastern Visayas
– writ of Kalikasan
– Southern Mindanao
– People’s Mining Bill
Region
– CARAGA Region • Broadening of alliances
– SoCSKSarGen Region • International support

16. People s Struggle
People’s Struggle

17. Our Call
Our Call
1. Mining moratorium on Large scale Mining
1 Mining moratorium on Large‐scale Mining
Projects and Operation
2. Repeal the Mining Act of 1995
2 Repeal the Mining Act of 1995
3. Pass the People’s Mining Bill
Defend our Patrimony, Protect our Rights!
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