Lawmakers call for probe into mining firm's unpaid royalties to indigenous peoples

MANILA, Philippines — House lawmakers filed a resolution on Monday, October 21, seeking to conduct a legislative inquiry into a mining firm’s impact on Mindanao's ancestral lands and its communities.

The mining company in question, Philsaga Mining Corp, has allegedly withheld royalties owed to indigenous peoples in Bunawan, Agusan del Sur, for conducting mining operations in the Consuela and San Andres areas.

According to House Resolution 2050, lawmakers became aware of the issue after receiving a complaint from Mary Jane Rodrigo-Hallasgo and Amatorio Rodrigo, members of the Manobo Tribe, saying that Philsaga has been denying the indigenous peoples’ rights to their ancestral land in Bunawan.

"The mining operations of Philsaga Mining Corporation permanently deplete the resources of the ancestral land to the detriment of the rightful Indigenous Cultural Communities/Indigenous Peoples (ICC/IPs) who are entitled to royalty shares," the resolution read.

The Philippine Mining Act of 1995 requires mining companies to secure the consent of IPs residing in areas where they intend to operate. 

Section 17 particularly states that royalty payments must be negotiated and agreed upon between the affected community and the mining firm for the extraction of minerals. This is facilitated by the National Commission on Indigenous Peoples (NCIP) through a memorandum of agreement. 

“The said royalty shall form part of a trust fund for the socioeconomic well-being of the indigenous cultural community,” the law reads. 

Section 16 of the Implementing Rules and Regulations of the Philippine Mining Act of 1995 further mandates that indigenous communities must receive at least 1% of the gross output or market value of extracted minerals.

The resolution also noted that Philsaga officers are "well aware of the ongoing issues" regarding the distribution of royalty shares. It further raises the possibility that the mining firm may be colluding with the NCIP "for personal benefit" in the handling of these royalties.

“There still exists some groups of ICC/IPs that are poor, ignorant and underprivileged without access to proper and effective assistance and are prone to abuse which requires protection in law,” the resolution read.

This would not be the first time royalty payments from mining companies have been withheld or not fully paid to affected communities. 

According to a 2018 report by the national coalition Bantay Kita, there have been significant discrepancies — worth millions — between the NCIP's records of royalties paid to indigenous communities and the amounts stated in the financial statements of mining companies.

In 2015, Bantay Kita also reported that IPs in Surigao del Sur lacked access to information on how much royalties were paid to them. 

Katribu Kalipunan ng Katutubong Mamamayan ng Pilipinas (Katribu) told Philstar.com in a message that they support the call to investigate the unpaid royalties.

However, Katribu National Convenor Beverly Longid emphasized the importance of determining the status of the IP royalty payments: are they being claimed by other entities, or are mining firms refusing to pay?

"We strongly urge that the investigation be expanded to include other serious concerns, such as the fraudulent process of Free, Prior, and Informed Consent (FPIC) facilitated by the NCIP, the environmental destruction caused by mining activities, and the absence of concrete rehabilitation plans for the affected areas," she added.

The national alliance of IP organizations also hopes that the lawmakers who filed the resolution cooperate with the Makabayan bloc "to ensure that this matter receives broader and more appropriate legislative attention." 

As an inquiry in aid of legislation, the House resolution calls on the lower chamber’s Committee on Natural Resources and Committee on Indigenous Cultural Communities and Indigenous Peoples to hold a joint inquiry to strengthen the Indigenous Peoples Rights Act of 1997 and the Philippine Mining Act of 1995. 

The resolution was filed by ACT-CIS Partylist representatives Erwin Tulfo, Jocelyn Tulfo, Edvic Yap, including district representatives Eric Yap (Benguet, Lone District) and Ralph Tulfo (Quezon City, 2nd District).