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Stiff opposition awaits mining TNCs in Cordillera as tribes vow to defend domain

MALIBCONG, Abra (April 29) — More than 6,000 delegates to the 21st Cordillera Day commemoration held in Barangay Buanao, Bangilo district of this upland town renewed their commitment to fight transnational mining corporations that threaten the indigenous peoples’ ancestral domains through mine applications.

Invoking the right of self-determination, community elders from the different villages in the Cordillera region also reiterated the strengthening of their indigenous socio-political systems such as the dap-ay, bodong, ator or ato, among others, in reviving intertribal unity against destructive projects and plunder, such as mining. These systems, claimed the elders in a resolution, have been utilized in opposing large scale projects like the World Bank-funded Chico River dams in Bontoc and Kalinga and the Marcos-backed Cellophil Resources Corporation logging concessions in the Abra, Kalinga, and Mt. Province.

70% Cordi land up for mining

The data from the Cordillera Peoples Alliance (CPA) show that mining applications with the Mines and Geosciences Bureau of the Department of Environment and Natural Resources (MGB-DENR) cover 1,434,770 hectares ( has.) or 70% of the region’s 1,829,368 has. total land area . Records also show that transnational corporations (TNCs) from industrialized countries dominate the mine applications.

MGB documents show that mining applications and permits in the region cover 1,226,394.8 has. or 67 % of the region’s land area. The applications show that 70% or 879,886.9588 has. of the total applications are classified as Financial and Technical Assistance Agreements (FTAA) involving foreign corporations while the other 33% are either exploration or application for production sharing agreements by local corporations.

Probable deposits of minerals which include gold, silver, copper, pyrite, zinc and other by-products are in the region.

In Abra province alone, there are four foreign mining firms with FTA Applications. These are Newmont, covering 77,549 has. which includes areas at the boundary with the provinces of Mt. Province, Benguet and Ilocos Sur; Lindsay Resources Corporation in Manabo, Bucay and other parts of Abra covers 81,000 has.; Eltopan Resources Corporation covers 80,433.04 has. in Apayao and Abra; and Olpaten Resources Corporation covers 75,078.04 has. in Kalinga, Apayao and Abra.

There are other applications for exploration and production sharing agreements. The FTAA, exploration, and production sharing applications are mostly located in the upland areas of Abra.

Transnational Corporations (TNCs)

The mining liberalization is institutionalized by RA 7942 known as the Mining Act of 1995, which allows 100% foreign-owned corporations to be involved in mining through the FTAA provision which allows the exploitation of a maximum area of 81,000 hectares for a period of 25 years, renewal for 25 years. It also grants privileges to mine corporations such as tax holiday, water and timber and easement rights. It was declared constitutional by the Supreme Court in its latest and final decision thereby removing legal obstacles for full mining liberalization.

Even before the SC decision, several foreign corporations have filed FTAAs in the country. The CPA identified several foreign corporations with mining applications or in partnership with local corporations with mine interests in the region. These corporations include Australia’s Western Mining, United States’ Newmont Phil., the South African Anglo American Corp., Australia’s Oxiana Philippines Inc., Ivanhoe Corp. of Canada, Terra Nova Exploration, Newcrest and Climax Arimco of Australia.

CPA Chairperson Joan Carling said that other foreign corporations entered into partnership with local corporations such as the Anglo-American partnership with Philex Mining Corp., Terra Nova Exploration and Ivanhoe Corp. partnership with Lepanto Consolidated Mining Company (LCMC). Ivanhoe Corp. allegedly bought the Rio Tinto Zinc stocks from the LCMC but RTZ maintains its advisory status with the latter. The Terra Nova Exploration is involved in the Wolfland Resources Inc. which presently explores the Guilayon ancestral lands in Tabuk, Kalinga.

Notorious TNCs worldwide

The transnational mining corporations involved in Philippine mining are the key international players. These corporations are said to have negative track record with the environment.

The Rio Tinto Zinc (RTZ), second of the top ten world mine corporations, has several investments in different corporations. RTZ has 12 % stocks with LCMC but was allegedly sold to Ivanhoe Corp. of Canada. Most of the directors of Oxiana Corp., an Australian corporation, have involvement with RTZ, documents downloaded from its website reveal that Oxiana Corp. operates the Sepon gold and copper mines in Laos, the documents added, and has projects in Laos, Thailand, China and the Philippines.

Different labor organizations worldwide noted that RTZ has the worst record in union busting and environmental destruction.

Newmont USA, according to a CPA PowerPoint presentation on the international mining situation, caused violence at the Batu Hijau Copper Mine in Indonesia. It was accountable for the depletion of water in Nevada through its Lone Tree mine and the mercury spill in Choromampa, Peru which is still untreated. Its operations threatened forest reserves in Ghana. It drained 2,000 tons of mine waste into the Buyat Bay and another 120,000 tons into the Senunu Bay. A pending environmental lawsuit has been filed against Newmont in Nevada, USA.

Benefits

The present administration of Gloria Macapagal-Arroyo claims that the revival of the mining industry will save the country’s ailing economy. The Department of Trade and Industry (DTI) expects $6 billion for the next six years as additional capital to the local mine industry while the National Economic Development Authority (NEDA) expects revenues totaling $840 billion.

But the CPA, citing government data, sees otherwise. Remitted gold to the Central Bank accounts 54% to 59% from small scale mining, while large scale mining accounts to a mere 41% to 46%.

The CPA study also cites that large scale mining depletes at least P375 million worth of natural resources but pays only P30 million in taxes. It adds that these companies contribute only 6% to the national income but contribute 57% environmental burden. Agriculture and fisheries contribute 30% of the national income compared to mining.

The yearly exports average from agriculture and fisheries reach $ 2.2 billion while gold export is 0.2%. More than half of this percentage comes from small scale mining.

“Large scale mining in the Philippines does not produce any key industrial metal in large quantities. The main product is gold, which has little industrial use,” Carling said.

Destruction of environment

Delegates from the mining areas of the region who went to the Cordillera Day, attested to corporate mining destruction on their agricultural lands. Their main river systems have been polluted by toxic wastes, narrates a delegate from Mankayan, Benguet where the LCMC operates. She added that LCMC’s mine wastes found its way into the Abra River which silted the river and reduced the agricultural yield of their rice fields downstream. She added that this trend is a threat to the food security as most of them are dependent on farming.

A delegate from Itogon, Benguet also shared mining companies’ pollution of their main rivers. Other delegates from other parts of the country shared the mine pollution of the Mogpog and Boac Rivers. They said that their agricultural fields were left polluted and un-rehabilitated up to the present.

Defending patrimony

Bayan Muna Partylist Rep. Joel Virador, in his keynote speech on April 24, shared updates on the mining issues.

“We have to ensure that our resources, mineral or otherwise, are managed under laws which enshrine the best interests of our people. We have already filed a bill for the repeal of the Mining Act,” Virador said.

House Bill no. 8634, seeking the repeal of the Mining Act, was first read in the plenary, added Virador. He added that they will push for it as some members of the House have supported it.

Indigenous peoples in Cordillera villages threatened by large scale mine applications vowed to defend their land. Meanwhile, in a workshop, elders recalled lessons from the Chico dams and Cellophil struggles, including other large scale oppositions, stressing that they are ready to follow the footsteps of Macliing Dulag and other Cordillera martyrs.

“Whether or not our opposition to large scale mining becomes an international model like that of the Chico dam, this will be judged by history. But it is a big possibility,” said an elder from Bugnay, the village which Macliing fought and died for. # Arthur L. Allad-iw for NORDIS

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