Mining policy

When I went to the Cordilleras last February, the stunning scenery along the winding mountain road from the Banawe Rice Terraces to Bontoc was marred by quarrying at a few spots right by the roadside, most of them near minor waterfalls.

Some of the trucks hauling gravel and sand and boulders from the quarrying areas bore markings of the Department of Public Works and Highways (DPWH).

Perhaps the materials were being used by the DPWH for repairing the road – the only one connecting Banawe to Bontoc and Sagada. It’s difficult to haul road repair materials from the lowlands to that narrow mountain road. The repairs slowed down the drive, but I was told that the road was much improved from previous years. The stretch between Bontoc and Sagada was mostly smooth.

If the DPWH markings were bogus and the quarrying was illegal, local government officials in the Cordilleras should be aware of the activities, since that’s the only highway in that area.

I also spotted quarrying in the equally scenic drive through the Sierra Madres, when I visited the eastern seaboard of Southern Tagalog last year. The quarry was too far for me to see any markings on the trucks and heavy machinery.

The Sierra Madres and the Cordilleras, particularly Benguet and Mountain Province, come to mind as they are included in the list of “cluster destinations” and “tourism development areas” identified by the government for implementation of a total ban on mining, as stipulated in Executive Order 79 – the much-awaited presidential order on the mining industry, which Malacañang released the other day.

The quarrying operations I saw in the Cordilleras were small-scale; the one in the Sierra Madres was larger. All the activities were in remote areas. It will be up to local governments to supervise such activities. Are they up to the job?

Big players in the industry have noted that in several areas, local executives themselves are involved in unregulated small-scale mining. In Bulacan and Pampanga, several politicians are believed to be behind quarrying operations.

The EO is a declaration of intent, a clarification of the national policy on mining, which can be one of the largest revenue sources for the government. Despite global economic woes, the demand for minerals remains high, especially in rapidly industrializing countries such as China.

It’s a complex policy: the government wants to utilize the country’s natural resources and encourage mining investments, but wants to balance it with the needs of indigenous communities, and with policies to protect the environment, promote eco-tourism and boost agricultural productivity.

As in most declarations of intent in this country, the devil will be in the implementation.

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Reactions to the E0 from several sectors have been largely positive so far.

The Chamber of Mines, in a statement, welcomed the EO and expressed willingness to cooperate in crafting legislation that will promote a more equitable revenue-sharing scheme between mining companies and the national and local governments. Until the scheme is approved, no new mining permits will be issued, although explorations can continue.

Existing large-scale mining operations will continue, although compliance with industry regulations will be reviewed by the government. The Chamber of Mines has been calling for tighter regulation of small-scale mining activities, where environmental laws are most blatantly violated (according to the big players). The EO aims to address this concern.

Don’t expect environmental advocates to like anything about mining, whether large or small-scale. Regardless of the size, a mining operation is never pretty. Anti-mining groups have a slew of photos and video footage showing what mining can do to the environment.

The industry is only belatedly fighting back with images of sites that have been rehabilitated after mining operations ended. Open pits are covered and restored for agriculture, for example. There are also images of communities near mining sites being developed even at the exploration stage, with roads and school buildings constructed, for example. The industry is emphasizing that responsible mining can ease poverty in underdeveloped rural areas.

Corporate social responsibility is essential for an industry that continues to suffer from irresponsible operations in the past that led to grievous environmental disasters.

For a long time, “responsible mining” was seen as an oxymoron. Today this is increasingly heard in the industry, although it’s still met with skepticism by affected communities and environmental groups.

The miners’ reaction to the EO was cautiously optimistic. They pushed for a review of the Local Government Code, the Indigenous Peoples’ Rights Act, and the Internal Revenue Code “to harmonize conflicting provisions of these laws” with the mining policy.

Now that President Aquino has made up his mind that his administration wants to continue attracting mining investments, he should provide the necessary support for the growth of the industry.

His mining agenda will enjoy mass support if a key objective of his EO is achieved: to instill responsibility in mining operations. Whether in the large mining sites of the big players, or in the small-scale quarries in the remote areas of the Cordilleras.