Philippines_Palawan Case Study

Case Study by Farah Sevilla, Alyansa Tigil Mina Palawan: Mining and Biodiversity Executive Summary Palawan is a biodiversity hotspot in the Philippines: its abundant forest and rich cultural heritage are the main reasons for exempting it from mining. Few places on earth can match the distinction of the province, home to seven protected areas, a declared “Game Refuge and Bird Sanctuary” since 1967, and a “Mangrove Reserve” since 1981. UNESCO declared the whole Province a Man and Biosphere Reserve in 1990. Included are two World Heritage Sites: The Tubbataha Reef Marine Park and the Puerto Princesa Subterranean River National Park. The expansive reserves of metal ores particularly nickel and chromite, which lay underneath old growth forests, attracts mining investments into the province. The 354 approved mining applications all over Palawan constitute a major threat to Palawan with extensive remaining forest cover and related biodiversity. Palaweños fears that damage to Palawan’s biodiversity will become irreparable if mining increases the threat to the ecosystem and to a booming eco-tourism industry of the province. Many feel that the costs of mining far outweigh its benefits. Dr. Gerry Ortega, an environmental advocate and broadcast journalist who was very vocal against mining in Palawan was killed on January 24, 2011 after his morning radio broadcast. He has been receiving death threats due to his strong opposition to mining and exposed bribery in the government in endorsing of mining through his radio program “Ramatak” over DWAR, a local affiliate of Radyo Mo nationwide. The Philippines has suffered many disastrous environmental impacts from mining including the Marinduque/Boac River mining disaster in 1996, recurrent pollution problems caused by the Atlas mine in Toledo City, Cebu, and the Rapu-rapu mine tailings spills in Albay in 2005 were among the many tragedies which offer lessons of the enormous human and environmental costs brought by mining. These factors should require the Philippine government to exercise extreme caution in authorizing mining operations in Palawan. Social awareness of this problem is of widespread and government actions to prevent damage to the environment have led to the enactment of laws such as the Republic Act No. 7611 otherwise known as the Strategic Environment Plan for Palawan Act or SEP Law directed towards the prevention of activities and events that may adversely affect the environmental sustainability of the province. A resolution passed in November 2008 by the Provincial Board secures a 25-year moratorium on small-scale mining in Palawan. However, this is not 1 | Page

Case Study by Farah Sevilla, Alyansa Tigil Mina Palawan: Mining and Biodiversity enough to prevent large-scale mining corporations from plundering the Island. Here the picture is clear that people appears to be overwhelmingly made worse off because of environmental degradation and human rights violations attendant to mining operations in the province. Government statistics attest that only a small fraction are benefitting from the employment generated by the mining operations1 and the occasional company-sponsored community outreach programs. As things stand, the economic benefits of mining in Palawan remain so unclear, with adverse effects appearing to be at least as likely as clear-cut beneficial ones, it is important to focus on the impact of mining in the local communities and on the environment. The Island Province of Palawan Palawan is the largest province in the Philippines with a total land area is 1,489,655 hectares; 690,000 hectares of which are terrestrial forest and 44,500 hectares are mangrove forests. It is located 7º47' and 12º22' north latitude and 117º00' and 119º51' east longitude, generally bounded by the South China Sea to the northwest and by the Sulu Sea to the east. The main island is nearly 278 miles long (about 435 kilometers) and has a width of forty kilometers at its widest part. It is surrounded by 1,767 islands and islets. Its steep mountainous terrain and the very thin topsoil, makes the island prone to erosion and even landslide. Palawan has a population of approximately 892,600 in 2007 2 distributed in its twenty three municipalities and Puerto Princesa City where almost 20 percent are indigenous peoples belonging to three main ethnic groups: Tagbanua, Pala’wan, Batak (on the main island) and Molbog (Balabac island). The primary source of livelihood and income are fishing, agriculture, collection of nontimber forest products (NTFPs) and tourism. Logging was also once a thriving industry in the province. Meanwhile, the province is also known for its rich natural gas reserves- the Malampaya gas field located 80km off the coast of Palawan with capacity of 2,700MW and the Galoc oil field. Palawan: a biodiversity hotspot Palawan is home to endemic species—both flora and fauna that cannot be found anywhere else in the world. It is home to 30% of 1

Based on the CSO Assessment of Medium Term Philippine Development Plan (MTPDP) for 2004-2010 in mining, as of 2008, the government reported that only 13,462 jobs were created by the mining industry or a mere 5.36% of its intended projection of 239,000 indirect and direct employment. 2 Statistics from National Statistics Office website http://www.census.gov.ph/data/census2007/index.html date accessed: April 4, 2011.

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Case Study by Farah Sevilla, Alyansa Tigil Mina Palawan: Mining and Biodiversity the country’s coral reefs, has 17 key biodiversity areas3 (KBAs), and 8 declared protected areas. The province is host to one of the areas in the country with intact old growth forests.4 Critical Ecosystem Partnership Fund Identification of Biodiversity Hotspot recorded that Palawan comprises the following biodiversity: 

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15 lakes, 42 ponds, 44 waterfalls, 72 natural springs, 9 mineral springs, 28 principal rivers, 43 streams and 165 creeks identified as potential sources of water for domestic consumption and irrigation; 13 out of the 16 sea grasses that can be found in the country; 42,500 hectares of mangrove forests, having 31 species and 90% of the known mangrove species in the country; approximately 690,000 hectares of terrestrial forest; 8 of the 11 amphibians endemic to the Philippines are found only in Palawan; 279 species of birds are found in Palawan and 27 are endemic to the country; 15 of the 25 marine mammals in the Philippines are found in Palawan; 58 species of terrestrial mammals are recorded and 19 or 33% are endemic to the country and 16 are restricted to the Mt. Mantalingahan Range; 24 endemic reptiles and 69 species are found in the Mt. Mantalingahan corridor; 4 of the 5 marine turtles are found in Palawan; and 379 species of corals found in Palawan and 82% of the total coral species recorded in the country.

The UNESCO declared two areas in Palawan as World Heritage sites: The Tubattaha Reed Marine Park in 1993 which covers 332 square kilometers north and south reefs with very high density of marine species and the North Islets are the nesting site for birds and marine turtles; and Puerto Princesa Subterranean River National Park in 1999 hosts some of the most important forests in Asia, and is a site that contains a full ‘mountain to sea’ ecosystem.

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Key Biodiversity Areas are “sites of global significance for biodiversity conservation, identified using globally standard criteria and thresholds, based on the needs of biodiversity requiring safeguard at the site scale.“ They cover 70% of the world’s natural resources. (Ruth Grace Ambal, Conservation International-Philippines) 4 2000 Data from HARIBON Foundation 2003 based on ESSC 1999 cited there are only 18.3% total forest cover in the Philippines and only 3% remaining old growth forest.

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Case Study by Farah Sevilla, Alyansa Tigil Mina Palawan: Mining and Biodiversity

In 1992, Republic Act No. 7611 also known as the Strategic Environment Plan for Palawan Act (SEP Law) was passed establishing a framework of development for the province that support and promote its sustainable development growth. The law especially addresses regulations referring to the environmentally critical areas networks (ECAN) of the province composed of the terrestrial or forestlands, marine or coastal area, and ancestral lands. Unfortunately, even the law recognized the presence of “mine sites in major catchments or are dangerously close to fragile shore and in-shore of marine zones.” The SEP Law endorses the Palawan Council for Sustainable Development (PCSD), which is in charge of governance, implementation and policy direction of SEP Law.

However, the biodiversity of Palawan is under very high threat. Conservation International has identified Palawan as a site for threatened amphibians, mammals, birds, reptiles, and freshwater fish, as well as for restricted-range and congregatory birds, using confirmed locality data for each target species. Geo-tagging5 has also found the province and its biodiversity under threat due to some 354 mining tenements encroached in almost 50% of its total land area, covering forest ranges of Mt. Bulanjao which is a protected area and falls under ‘core zones’6 which should not be open to any development activity, and 90% of ancestral lands. History of mining in Palawan Mining has been done in Palawan at least since the 1970s. The island province is endowed with minerals resources including gold, nickel, copper, cobalt, chromite and even mercury. To date, the resource-rich Palawan has mining applications, and various mining permits issued as presented in Table 1 below. 5

In a photographic context, geotagging is the process of associating photos with specific geographic locations using GPS coordinates. ALDAW geo-tagging findings are available through the following reports: http://participatorygis.blogspot.com/2010/01/counter-mapping-in-philippines-gantong.html http://participatorygis.blogspot.com/2010/01/bulanjao-geotagged-report.html http://www.facebook.com/Aldaw.network.palawan.indigenous.advocacy?v=wall 6

Core zones according to the SEP Law are “areas above 1,000 meters in elevation, virgin forests or primary growth forests, areas with steep gradient (above 50% slope), and critically threatened/endangered habitats and habitats of rare endangered species or habitats of Palawan local endemic species of flora and fauna”. This zone, according to the SEP law, shall be fully and strictly protected and maintained free of human disruption.

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Case Study by Farah Sevilla, Alyansa Tigil Mina Palawan: Mining and Biodiversity

Table 1. Mining permits in Palawan7 Current activities/ stage

Corporation/ Permitee

Permit No., Area coverage, location

Mineral Resources

Rio Tuba Nickel Mining Corporation

MPSA8 No. 114-98-IV issued in June 4, 1998 covering 990 hectares (has) in Bataraza, Palawan MPSA No. 171-01-IV issued in January 16, 2001 covering 4896.1000 has in Quezon, Palawan MPSA No. 172-01-IV issued in January 16, 2001 covering 5234.2079has in Quezon, Palawan MPSA No. 173-01-IV issued in January 16, 2001 covering 5149.9000has in Espanola, Narra and Quezon, Palawan MPSA No. 213-2005-IVB issued in April 28, 2005 covering 84.5364has in Bataraza, Palawan MPSA No. 220-2005-IVB issued in December 1, 2005 covering 1113.9836has in Brooke’s Point, Palawan MPSA No. 221-2005-IVB issued in December 1, 2005 covering 410has in Brooke’s Point, Palawan

Nickel

Commercial Operation

Limestone

Exploration

Limestone

Exploration

Limestone

Exploration

Limestone

Development

Nickel, chromite, iron, and other associated mineral deposits Chromite, nickel, copper and other associated mineral deposits Nickel, chromite and other associated mineral deposits Nickel, iron, cobalt, chromite and other mineral deposits Nickel, chromite, cobalt, copper, gold and other mineral deposits

Exploration

Nickel

Exploration

Nickel, cobalt and other associated

On-going exploration

Central Palawan Mining and Industrial Corporation Palawan Star Mining Ventures Inc. Pyramid Hill Mining and Industrial Corporation Rio Tuba Nickel Mining Corporation MacroAsia Corporation MacroAsia Corporation Citinickel Mines and Development Corporation Berong Nickel Corporation Lebach Mining Corporation

Celestial Nickel Mining Exploration Corporation Narra Nickel Mining and

MPSA No. 229-2007-IVB issued in January 3, 2007 covering 2176has in Narra, Sofronio Espanola, Palawan MPSA No. 235-2007-IVB issued in June 8, 2007 covering 288has in Quezon, Palawan MPSA No. 285-2009-IVB amended into Exploration Permit No. 00001-2009-IVB amended in November 19, 2009 covering 2573.3300has in Brooke’s Point, Palawan MPSA No. 017-93-IV issued in September 18, 1993 covering 2835.0600has in Brooke’s Point, Palawan FTAA 9No. 05-2010-IVB issued in April 12, 2010 covering

Exploration

Exploration

Exploration For registration

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Data from Department of Environment and Natural Resources - Mines and Geosciences Bureau (DENR-MGB), as of March 2011. 8 Mineral Production Sharing Agreement (MPSA) is an agreement wherein the government shares in the production of the contractor, whether in kind or in value, as owner of the minerals and the contractor gets the rest. (DENR-MGB Description)

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Case Study by Farah Sevilla, Alyansa Tigil Mina Palawan: Mining and Biodiversity Development Corporation, Tesoro Mining and Development Corporation and McArthur Mining Inc Berong Nickel Corporation

12381.72has in Rizal, Bataraza, and Narra, Palawan

minerals

EP10 No. IVB-60 issued in February Nickel and cobalt 12, 2010 covering 1069.41has in Quezon and Aborlan, Palawan Source: Mines and Geosciences Bureau (MGB) as of March 2011

On-going exploration

Today, different large-scale mining permits cover a total of 38, 202.2749 hectares of Palawan, while mining applications cover almost the whole of the island province. Meanwhile there are 11 abandoned mine sites in Palawan as shown in the table below. Table 2. Abandoned Mine Sites in Palawan Mining Company

Area of operation

Mineral

Palawan Quicksilver Mining Inc.

Sta. Lourdes, Puerto Princesa City

Mercury

Atlas Consolidated Development Corp.

Mining

& Sta. Lourdes, Puerto Princesa City

Gold

Palawan Venture or Palawan Irawan, Puerto Princesa City Consolidated Mining Co.

Chromite

Soriano Mining Corporation

Aborlan, Puerto Princesa City

Nickel

Trident Mining Corporation

Narra, Palawan

Nickel

Infanta Mining Corporation

Brgy. Ipilan, Brooke’s Point

Nickel

Celestial Mining Corporation

Brgy. Ipilan, Brooke’s Point

Nickel

Long Point Mining Berong, Quezon Corporation/Soriano Mining

Nickel

Benguet Company Inc.

Balabac

Gold ore

Nin Bay Mining Corporation

Roxas, Palawan

Silica

Mining Roxas, Palawan

Silica

Republic Corporation

Glass

Source: Environmental Legal Assistance Center (ELAC)

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Financial or Technical Assistance Agreement (FTAA) is an agreement for the large-scale exploration, development and utilization of minerals. (DENR-MGB Description) 10 Exploration Permit (EP) allows a qualified person to undertake exploration activities for mineral resources in certain areas open to mining. (DENR-MGB Description)

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Case Study by Farah Sevilla, Alyansa Tigil Mina Palawan: Mining and Biodiversity Since the early 1970s, the Rio Tuba Nickel Mining Corporation (RTNMC) has been operating in the municipality of Bataraza in Southern Palawan. Its operations started when the nickel deposit in Rio Tuba was discovered in 1967. On September 18, 1970, the company entered into a Mining Lease Contract with the Republic of the Philippines as lessor, covering 126 hectares of public land or 110 Lode Mining claims of nickel, iron and other minerals located in Rio Tuba. The RTNMC has a mining claim of 5,265 hectares of which 353 hectares are currently operated. Study has shown that the activities of RTNMC do not equitably and efficiently distribute benefits from mining, and that the impacts on the environment are not effectively monitored while the environmental costs are undervalued11. At present, RTNMC continues to mine and has recently been issued another permit expanding towards Mt. Bulanjao range, one of the best conserved ultramafic12 forests in Palawan.13 Further, the exploration permit issued to MacroAsia Corporation14, Ipilan Nickel Corporation15 and Lebach Mining Corporation16 threatens the forests and life in Brooke’s Point (also located in Southern Palawan) as well as the survival of isolated Pala’wan communities having limited contacts with the outside world. MacroAsia was incorporated in the Philippines on February 16, 1970, originally under the name Infanta Mineral & Industrial Corporation, to engage in the business of geological exploration and development. As a mining firm, it had actually mined its leased areas in Brooke’s Point in the 1970’s. MacroAsia Corp. is a listed aviation support company owned by Lucio Tan. Lebach Mining Corporation is a domestic registered company with registered address Silangan House, 7606 Guijo Street, San Antonio Village, Makati City, Philippines. Lebach’s Chairperson and Chief Executive Officer is Edgar L. Rodrigueza. 11

The Costs and Benefits of Three Decades of Mining in Rio Tuba, Bataraza, Palawan by Antonio G.M. La Viña, Grizelda Mayo-Anda, Mary Jean A. Caleda, Redempto D. Anda, Katherine Mana-Galido, Loreto L. Cagatulla, published by ELAC and the Ateneo de Manila University (ADMU), September 2006, pp.1-95] http://no2mininginpalawan.com/2011/03/21/the-costs-and-benefits-of-three-decades-of-mining-in-rio-tubabataraza-palawan/ 12 Ultramafic (also referred to as ultrabasic) rocks are igneous and meta-igneous rocks with very low silica content (less than 45%), generally >18% MgO, high FeO, low potassium, and are composed of usually greater than 90% mafic minerals (dark colored, high magnesium and iron content). The Earth's mantle is composed of ultramafic rocks. http://en.wikipedia.org/wiki/Ultramafic_rock 13 http://participatorygis.blogspot.com/2010/01/bulanjao-geotagged-report.html 14 http://no2mininginpalawan.com/2011/03/25/macro-asia-corporation-certification-of-mpsa-nos-220-2005-ivband-221-2005-ivb/ 15 http://no2mininginpalawan.com/2011/04/17/lebach-mining-corporation-brgy-mainit-brookes-point-palawanref-no-ecc-co-0911-0009/ 16 http://www.slideshare.net/no2mininginpalawan/lebach-mining-corporation-ecc-located-at-bgy-ipilan-brookespoint-palawan

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Case Study by Farah Sevilla, Alyansa Tigil Mina Palawan: Mining and Biodiversity

According to joint reports by Ancestral Lands Domain Watch in Palawan (ALDAW) and the Center for Biocultural Diversity (CBCD) of the University of Kent, the exploration activities there allow the three companies to illegally enter ‘core zones’ and well-developed agricultural lands including wet rice fields and coconut plantations, tribal sacred sites and ancestral lands.17 MacroAsia Corporation and Ipilan Nickel Corporation have permits intruding the Mt. Matalingahan Protected Landscape. Further reports said Environmental Compliance Certificates were issued then by PCSD despite the lack of social acceptance. As of now, also the Palawan branch of the National Commission on Indigenous Peoples (NCIP) has bluntly violated all required procedures leading to transparent and genuine FPIC processes, siding instead with the mining companies.18 Impacts of mining in Palawan In January 2010, through geo-tagging technology and participatory audio-visual documentation19, it was found that mining tenements had intruded into identified ‘core zones’ of protection in Palawan. These activities will damage the province’s water supplies, soils, forests, rivers, corals and marine environments. The efforts to protect and conserve Palawan are now being put in danger and erode by the circumventing laws and encroachment even in the core protected zones is a clear violation of laws by mining companies. These widespread abuses further put the island at higher risk to the different potential impacts of climate change. Anda and Galido (2006)20 identified several socio-cultural, economic and environmental impacts of mining in Palawan in the thirty years of mining activities there. Identified environmental impacts include the following: 

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Deforestation and loss of wildlife habitat for ecologically important flora and fauna in the mined out areas and the Gotok limestone quarry area; Decrease in quantity and quality of water supply;

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“The Mt. Gantong/Brooke’s Point 2010 Geo-Tagged Report”, Mining Threats to Watersheds, Core Zones and to the Ancestral Domain of Isolated Indigenous Communities, Palawan Island (The Philippines) http://www.iapad.org/publications/ppgis/aldaw_gantong_2010_report.pdf 18 http://www.iapad.org/publications/ppgis/aldaw_gantong_2010_report.pdf 19

http://www.youtube.com/user/ALDAWpalawan

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The Cost and Benefits of Three Decades of Mining in Rio Tuba, Bataraza, Palawan, pp. 27-66, Sharing Natural Wealth for Development – Case Studies from Palawan Province, Philippines, ELAC and Ateneo De Manila University, September 2006.

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Case Study by Farah Sevilla, Alyansa Tigil Mina Palawan: Mining and Biodiversity     

Adverse impact on the irrigation system and decrease in agricultural production; Erosion and flash floods; Threats to coastal resources brought by erosion and effluents; Water and air pollution; and Health impacts such as skin lesions.

These are the very reasons why the SEP Law was passed in 1992. The rationale behind the law being, “The destruction of Palawan’s forests would trigger a chain reaction that would bring destruction to the entire environmental and ecological fabric of the province. The resulting soil erosion and loss of top soil would dry up underground and surface water resources, nullifying the efficiency of irrigation systems and waterworks… There is an urgent necessity to stop this deterioration. It is not enough to rely on a network of Parks in the conventional sense, for this would be too limited in area and arouse distrust in local communities.” It seeks to prevent further environmental degradation in the islands. However, violations of environmental and other national laws and policies make mining a bigger threat to Palawan, its resources and its people. This struggle against mining and towards sustainable development has contributed to the rise in numbers of environmental and indigenous advocacy organizations and networks in the province— including the Environmental Legal Action Center (ELAC), Conservation International (CI), Nagkakaisang mga Tribu ng Palawan, Inc. (NATRIPAL), Ancestral Land Domain Watch (ALDAW) and many others. There are local government officials also opposed mining because of its threat to the treasured environment and to tourism like Puerto Princesa Mayor Edward S. Hagedorn (first elected in 1992), when he pursued to prioritize tourism over mining in the capital of Palawan. In 2010, ALDAW, an environmental group launched a signature campaign signed by more than 20,000 petitioners from all over the world calling to stop mining in Palawan Forests. International organizations such as Rainforest Rescue and Survival International closely partnered with ALDAW in the achievement of this objective21. Palaweños who are affected by mining operations and plans of opening up thousands of hectares of bio-fuel and oil palm 21

http://www.survivalinternational.org/tribes/palawan

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Case Study by Farah Sevilla, Alyansa Tigil Mina Palawan: Mining and Biodiversity plantations supported the launching of the campaign at the local level. Their primary campaign concerns included the following:  

Objection to RTNMC building roads towards a biodiversity hotspots in the Mt Bulanjao Range; and Opposition to mining permits being issued to MacroAsia Mining Corporation and Celestial Nickel Mining Exploration Corporation (currently being operated by Ipilan Nickel Corporation) despite the absence of genuine consultation processes, and a flawed free, prior and informed consent (FPIC) process.

Furthermore, these mining companies have been allowed to enter forested “Core” and “Restricted” zones despite all rules and regulations enshrined into the Strategic Environmental Plan (SEP), also known as Republic Act 7611. Dr. Gerry Ortega, an environmental advocate and broadcast journalist who was very vocal against mining in Palawan was killed on January 24, 2011 after his morning radio show in Puerto Princesa City. In the past months before his death, he has been receiving death threats because of his opposition to mining and exposed bribery in the government in endorsing of mining through his radio program “Ramatak” over DWAR, a local affiliate of “Radyo Mo” nationwide. Immediately after Ortega’s death, the 10-million signature campaign to stop mining in Palawan was launched led by Bantay Kalikasan chief Ms. Gina Lopez. The campaign started with the call to stop mining in the province and evolved to stopping mining activities in key biodiversity areas and in critical ecosystems. Today, the signature count has already reached about more than 800,000. No to mining in Palawan The main call of Palaweños and organizations on the threat of mining is for the PCSD to strictly enforce the SEP Law and implement policies that are geared towards sustainable development, especially respecting the identified policies for the environmental critically areas network (ECAN). Further, national policies should respect the rights of indigenous peoples and communities in rejecting mining applications based on the identified serious adverse impacts it has brought in the past and will bring in the future if it is allowed to develop further extraction of minerals in Palawan. Executive Order (EO) No. 23 issued on February 1, 2011 by President Benigno S. Aquino III declaring a moratorium on the 10 | P a g e

Case Study by Farah Sevilla, Alyansa Tigil Mina Palawan: Mining and Biodiversity cutting and harvesting of timber should not be limited to protecting natural and residual forests. In the case of Palawan, the whole of Palawan, including its outlying island municipalities, should be spared from logging and mining. Existing concessioners must no longer be given permits to expand operations and their activities should be strictly monitored. The exploitation of its mineral and oil fields, its marine wealth and virgin forests should stop now. The Philippines is clearly threatened by the effects of climate change. Already there are increased extremes of weather and increased numbers of typhoon storms per season as compared to even 20 years ago. Mining particularly strip mining and open pit operations are particularly vulnerable when affected by extreme storms. Exposed minerals and toxic residues can be more easily flooded into the environment. It is already the case that the Philippines cannot reach best international practice on water and toxic waste management at mining sites. This is due to the already uncontrollable impacts of tropical seasonal typhoon. These are seen to be getting stronger and more unpredictable due to climate change effects. The already disastrous legacy of mining in the Philippines will, it is feared, worsen. The international community should take stronger action in order to regulate mining particularly, near sea level mining that might be easily inundated as sea level rises and all mining in monsoon/typhoon /hurricane affected zones.

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