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Mining Debt: A Victim’s Point of View
"No awanen dagiti baker ken maatianan dagiti karayan, ania serbi ti balitok? Nga kasla aramiden ti ingin iti tapok, Maisubli kadi balitok ti ili?" – A Cordillera Elder (When the forests are gone and the rivers are dry,Of what good is gold? The people are scattered as the wind do to dust, Can gold restore life?
The Asia/Pacific Movement on Debt and Development (APMDD) has defined ecological debt as the debt incurred by the industrialized countries and transnational corporations of the North towards the people of the South in the continuing plunder and exploitation of the ecology and resources of the South, and in the destruction of the planet due to their production and consumption patterns that dominate the global economy. Ecological Debt is the ultimate debt, not by one people against another, but by a definite class who works from one country to another, and has institutionalized a system of production driven by greed for profit. It is the sum total of exploitation and plunder of resources on the one hand, and the deprivation of the vast majority of peoples on the other hand. The net effect of ecological debt is the destruction of the material base of human survival-the earth. Ecological Debt is hard to translate in terms of concrete monetary terms. Existing laws provide for penalties and other forms of assurances for rehabilitation in cases where the environment is damaged and destroyed. But as far as those who have been victimized are concerned, these assurances are not enough. In fact, funds are never enough because ecological destruction can never be paid. How can one compute the dollar equivalent of destruction and despair? Can one come up with monetary value for scattered communities and denuded resources that affect present and future generations? Economics of Destruction Over the last four decades, the Philippine government has facilitated and presided over the fastest deforestation process one could ever imagine. By virtue of the partnership between local and foreign companies both in logging concessions and mining operations, the Philippine forest cover has been reduced significantly: from 9 million hectares in 1968, to 1.6 million hectares in 1996. On top of this deforestation process, the Philippine government has also invited global mining companies to engage in large-scale open pit mining operations all throughout the country. The cases that will be described later will show how much suffering and misery has been inflicted on the peoples of the Philippines, all in the name of development and modernization. It is important to note that many of the projects that will be cited are so-called priority development projects of the government. The objective of which is to boost the national economy, earn dollars, and pay the country’s foreign debt. Moreover, these projects are meant to eventually eradicate poverty. The logic is simple: destroy the earth to reduce the number of impoverished peoples. The result: many impoverished peoples and communities are now in their graveyards. This process could not have been made possible without the support of the country’s loyal patrons and mentors: the World Bank, the International Monetary Fund, and the Asian Development Bank. With programs such as Structural Adjustment and other conditionalities, the Philippine ruling elite is able to pursue a development and modernization process that has led to the transformation of rivers into dry lands, of forests into muddy grounds, and of self-subsistent communities into beggars and slum dwellers. Indeed, the development process in the Philippines has gone a long way. The Case of Mining Traditionally, the mining sector has been a significant contributor to the country’s economy. This sector of the economy must have also been important to the American colonial government because a mining law was enacted as early as 1905. Since early 1900s, large scale mining operations have proliferated all throughout the country for gold, copper, silver, coal, and other minerals. However, due to the alleged major flaws in the country’s policy environment, the mining sector began suffering a serious decline starting in the 70s. In the 90s, President Fidel Ramos wanted to fast-track the so-called industrialization process and he made sure that the mining industry would contribute significantly to his vision of a Newly-Industrialized Country. With that, the government in partnership with the Asian Development Bank, commissioned the East-West Center of Hawaii to evaluate the factors leading to the downturn of the industry. Upon the recommendations of the East-West Center and the Asian Development Bank, the Philippine Chamber of Mines came up with a set of recommendations which were later adopted by congress and incorporated into a new mining law, now known as the Philippine Mining Law of 1995 or Republic Act 7942. The new law, and the package of financial aid that came with its passage, are clearly not meant to encourage small miners to go into the industry but for global mining corporations to extract the country’s resources. Some of the benefits it promised to foreign companies were 100% ownership, tax holidays, 100% repatriation, exemption from environmental impact assessments, direct sale of gold to the international market, and other offers. So effective and attractive was the new mining law that in one region alone (Western Mindanao), a flood of mining applications poured in from the world’s biggest mining company Rio Tinto, with a total applied area of 500,000 hectares. In 1997, a total of about 9,299,121.78 million hectares were applied for large scale mining operations all throughout the country. About 99.9% of these are applications of foreign companies, mostly Australian, Canadian and British. While the applications have triggered the sprouting of many protest actions and mobilizations throughout the country, the government and the global companies continued to campaign aggressively for support both from local residents and local government units. This explains why despite the protests, some applications were able to push through with exploration, and eventually operations. Yet, many lessons have to be learned from the history of mining operations in the country-lessons that are too bitter to be remembered especially by those whose lives have been shattered and whose sources of livelihood have forever been destroyed. Unfortunately, the government’s drive for dollars and foreign investments prevented it from learning the lessons of the past. In the name of development and modernization, the government, again, pursues a program that will only lead to more destruction and devastation, where multinational corporations and their local patrons reap gargantuan profit all at the expense of the people. The End-result of Plunder From Luzon down to Mindanao, various people’s organizations and communities have documented different incidents of environmental destruction brought about by mining-incidents that are seldom reported, much less, investigated by the Department of Environment and Natural Resources (DENR). This is why the people have renamed the department as Destruction of the Environment Never Reported. In all the so-called mineral development projects, the people have only seen devastation and destruction. The impacts have been disastrous and far-reaching. Below are specific cases that have occurred over the last 15 years. • Mindoro, Luzon - The Japanese-owned Kanto International Marble Corporation caused serious damage to the environment resulting to soil erosion, heavy siltation of rivers and heavy flooding. • Cordillera - Philex Mining Operations in Itogon spilled 11,000 liters of oil; the Lepanto Consolidated Mining Corporation drained acidic effluents into the Mancayan River (one of the four rivers of the Cordillera either dead or choked by mining wastes); and, Benguet Mining operations has transformed the municipality of Itogon into a virtual graveyard. • Nueva Ecija, Nueva Vizcaya and Zambales - Due to heavy siltation, major river areas are now considered Class C or D (dying or biologically dead). • Negros Occidental -Marikalum Mining Corporation was found to be dumping used oil into the Bulata Bay and tailing ponds are leaking mine wastes into agricultural lands in Sipalay, Negros Occidental. Philex Mining has also deliberately released tailings into the Sipalay River, causing fish kill and siltation. Both operations have negatively affected the environment due to inundation by heavily silted rivers. Skin diseases among children and adults and cases of heavy metal poisoning have also been reported. • Eastern Samar - Operations of the Heritage Mining Company have caused flooding and siltation of areas in the vicinity. • Palawan - An old mercury mine threatens entire city of Puerto Princesa; affected areas were even declared to be under a state of emergency. • Zamboanga Peninsula (Mindanao) - Philex Gold Philippines Inc. in their Sibutad operations has threatened the lives of residents in eight coastal villages with the siltation of the coastal areas; caused also serious damage to livelihoods; depletion of water supply; buried five hectares of ricelands in mud coming from the tailings pond. • Surigao - A tailings pond of Manila Mining Corporation collapsed in 1995 and caused the death of five people. • South
Cotabato - Maughan crater of Mt. Parker collapsed due to mining
operations, leaving 79 people dead.
The Case of Placer Dome In March 1996, 3-4 million tons of metal-enriched and acid-generating tailings filled the 26-km Boac River in the island province of Marinduque. This was caused by a badly sealed drainage tunnel in an old mine pit that burst. The mined-out pit which is located in the high central mountains of Marinduque had been used as storage pit for the tailings from a new adjacent mine since 1992. The culprit was the firm Marcopper Mining Corporation. Greatly affected by the Marcopper incident were the municipalities of Sta. Cruz (center of mining operations), Mogpog, and Boac, all in the island province of Marinduque, 170 kilometers north of Manila. Marcopper is the third largest mining company in the Philippines with a reported production of 30,000 tons of copper daily for the last 27 years. It began mining the Tapian ore body in Marinduque in 1969, and proceeded with San Antonio project in 1991 using the old Tapian pit for waste disposal. The company is 40% owned by the Canadian firm Placer Dome Inc. (PDI) and 50% by a front corporation of former dictator Ferdinand Marcos called Performance Investment Corporation; since it was sequestered during the Aquino government, it is also partly owned by the Philippine government Placer Dome is one of the top gold mining corporations in the world, second only as a mining corporation in its home country, Canada. In 1998, the company posted profits of US$105 billion. Placer Dome employs some 8,400 people in its 14 mines scattered in five countries in five continents. It has a reputation of coming into conflict with local populations in areas of operation. Like the Western Shoshone tribe in Nevada for polluting land; people of Strickland, New Guinea for dumping wastes in the river, and the people of Costa Rica. The company’s Golden Sunlight Mine in Montana, USA is accused of cyanide leaching. Marcopper has a 30-year history of mining disasters and environmental abuse in the Philippines. The 1996 tragedy got the national and global attention on Marcopper’s culpability in destroying entire river systems, communities and livelihoods but actually, the trail of destruction can be traced as far back as 1969. • In Sta. Cruz, Marinduque, Marcopper dumped 200 million tons of tailings in Kalankan Bay from 1975-91, creating 80 square km of tailings along the bay. This had the following effects: – reduction of fish catch of at least 2,000 fishers; other uses of the bay adversely affected – threatened the food security of 200 fishing villages for 25 years now – covered houses and rice fields with dust storms – metal contamination and chronic lead poisoning of victims that remain untreated until today Marcopper responded, albeit inadequately, with the following actions: – launching of a livelihood projects in the area; – setting up funds for artificial corals and rehabilitating seagrass projects; – ignoring any liability on reported health concerns; – and, rationalizing health complaints as arising from Marinduque’s naturally mineralized environment. • In the municipality of Mogpog, Marcopper dumped another kind of waste called overburden, creating practically mountains of waste here in the higher areas of Marinduque. It also built a dam in 1991 and made use of a watershed area as a dumping ground. In 1993, the dam collapsed causing heavy floods, siltation and contamination of the Mogpog River; eruption of skin diseases, plastic anemia, and metal poisoning of townspeople. Marcopper’s response:
• In Boac, the capital of Marinduque province In 1996, the worst environmental mining tragedy in Philippine history occurred when 3-4 million tons of waste equivalent to 1.6 million liters of waste or 300,000 dump trucks of sludge spilled into the river because of an old badly sealed tunnel being used by the company. Because of this, the whole island of Marinduque was declared a calamity area. – The Boac river died instantly – Health problems: > The PDI admitted in 1997 that exposed sulfur in the tailings has started to oxidize, causing the formation of toxic sulfuric acid and potential release of heavy metal such as cadmium, lead, mercury, zinc and arsenic. > A Department of Health study made between 1996 and 1997 confirmed heavy metal contamination due to the use of the river as disposal site for run-off from Marcopper since 1970. > UN investigation identified unacceptable levels of heavy metals in some parts of the river and they also pointed to toxic wastes leaching into the river through the faulty waste rock siltation dam. – Costs calculated by a consultant of the Resources Environment Economic Center for Studies Inc. > US$6 million dollars damage in agriculture alone in 1996 > After three years, US$19.5 million > Other key economic losses such as tourism, US$14.4 million In 20 years of its operations in the Philippines, PDI accumulated earnings estimated at US$1 billion. Their contribution to the national reserves stands at US$370 million. Taxes paid to the government amounted to a mere US$100,000 in 20 years. Social projects have been estimated at only US$40,000. Is these enough vis-à-vis the irreparable damage done to the people and environment of Marinduque? Benefits or Misery Despite the many tragedies associated with mining, the government decided to liberalize the sector in order to encourage more foreign investors to go into exploration and mining operations in the country. With that, the 90s saw a revival in mining interest in the Philippines. But what is so tempting about mining? There is actually great wealth in mining. In a document prepared by the Philippine Chamber of Mines (PCM) that was circulated among similar chambers in other first world countries, it was shown that in an average mining operation in the Philippines, a ton of ore can be extracted from three tons of earth. From this one ton of ore, one can extract 3.77 grams of gold, 105 grams of silver and sometimes copper at an average of 2.79% and zinc at 2.03%. Especially now that open pit mining has become the preferred method, a mining site covering 3,500 hectares can be completely mined in seven years, with an average production rate of 1,850 tons of ore per day. A major interest in the Philippines is gold, where the economics is more attractive. In a 4,500-hectare, with a production rate of 1,850 tons of ore per day, a company can expect to extract in seven years some 179,600 ounces of gold. Multiply this by $300 per ounce and the amounts are staggering. However, according to the PCM, 70-75% of the world’s gold production goes to jewelry. Only a small amount goes to industrial uses and gold reserves in central banks. So much of the earth’s natural resources are destroyed to please the elite. Reading the many papers and reports of mining companies and the Philippine Chamber of Mines, one would expect to see paradise in the mine site. Yet, for the people, whose lives have been severely devastated by the many tragedies, and whose future has been made bleak, mineral development simply means destruction and despair. The billions of dollars extracted by multi-national corporations, and the few thousand dollars given to the national government in the form of taxes, as well as bribe, are never sufficient to justify the degree of destruction that mining has wrought on the environment and on the lives of the people. Yet, despite all these, the plunder continues. The Cost of Destruction There are at least four areas that should be considered in examining the ecological debt incurred from mining activities: the local mining sector, the global mining industry; the national government; and the affected people and communities. The whole history of mining in the country has only shown how disproportionate the proceeds are, with the bulk of the profit going to the multinational corporations and the pockets of accommodating government officials, while the bulk of the environmental damage and suffering are passed on to the people. The existence of ecological debt is all too real and has caused untold suffering for peoples and communities. And the reasons why these things continue are: 1. continuing subservience of nation states to the dictates of global corporations and multinational corporations (MNCs) 2. balance of power favorable to the MNCs, highly industrialized countries and local ruling elites 3. persistence of a purely economic view as regards development 4. a playing field shaped and determined by those who seek to destroy the earth and risk its future, all in the name of profit 5. tendencies among civil society players to confine the engagement in debate and argumentation and reduce the arena of the struggle to lobbying and negotiation 6. polarized and fragmented people’s movement, which provides for an opportunity for the neo-liberals to gain the upper hand in the political positioning.
Terms of Payment Global mining giants, multi-national corporations, and the local ruling elite have to pay the price of destruction and devastation. But such payment can only be made in terms of actual liberation from a social order that is inherently destructive; hence the following premises: 1. The whole issue of ecological debt boils down to the question of control over resources by the people. Thus, ecological debt is largely a political issue; it is a question of power, both at the level of nation states and at the global level. 2. Ecological debt is difficult to monetize; there is no monetary value to erosion, poisoning, siltation, mudflows and flash floods; to shattered homes, broken communities, cultures eradicated. 3. Current production systems and the rush to generate profits entail a conspiracy against the earth and its future. No reason or theory or legal mandate is plausible enough to justify destruction and plunder. 4. Ecological debt is perpetrated not by a simple club of unenlightened persons. It is perpetrated by a certain class through the institutions and structures that are deeply embedded in societies whose interests are irreconcilable and inherently contradictory to the interests of the majority of the dispossessed peoples of the world. Given these, ecological debt can only be paid when the peoples shall have gained control over resources and over means of production, and when utilization of resources shall no longer be geared towards profit but towards the satisfaction of the needs of society. For those who have caused the devastation and destruction, we shall give them this statement of account:
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