Rationalize the mining policy

BANTAY Kita is a newly-formed network advocating for transparency in the extractive, particularly the mining industry. It is composed of organizations engaging the mining industry on their adverse effects on communities and the environment, and economic and governance policy research and reform organizations.

Bantay Kita believes that current policy on mining has not brought promised benefits to the Filipino people. Implementation of the mining law has been fraught with lack of transparency and numerous examples of poor governance. The Free Prior Informed Consent (FPIC) process has, too often, served to misinform indigenous communities on the effects of mining projects. Instead of improved livelihoods and progress, mining has brought displacement and economic injustice to the so-called ‘host’ communities. Watersheds and forests have been encroached upon, endangering the health and welfare of both upland and surrounding downstream communities. Compared to the devastation caused by mining projects in their jurisdictions, local government revenue gains are too miniscule to be felt. The industry is plagued with under-declaration, tax avoidance and tax evasion. From 2000-2009, the under-collection of excise taxes was 65.5 percent. Among the many defects of the Mining Act of 1995 is that it contains provisions that do not allow the national government to get a fair share of mining revenues.

Employing its more than generous gains, the mining industry has embarked on lobbying and media campaigns to mislead the political leadership and the public with statements and advertisements on the benefits of mining. It has even articulated a veiled threat that any obstacles to mining, such as environmental restrictions, will harm economic development. Contrary to all this industry hype, local governments and communities have not felt the benefits but the adverse effects of mining. Their experience has led them to take action to protest against the encroachment of actually irresponsible mining projects and protect themselves from their devastating consequences.

According to the Mines and Geosciences Bureau, 7 out of 16 mining projects in the advanced exploration and feasibility financing stages and 25 out of 28 projects in the development and expansion stages are facing opposition from local populations and their officials.

Over 20 LGUs have issued moratoriums and environmental regulations to prevent mining firms from causing further damage to the environment, to livelihoods and to lives in their jurisdictions. The facts speak for themselves. In the last decade, from 2000 to 2009, mining and quarrying together accounted for no more than 0.91 percent of Philippine GDP. In the same period, the industry’s contribution to total employment was a mere 0.376 percent. Unnecessary incentives have also contributed to making the revenue effort of the mining industry to be slightly more than half of the revenue effort of the country.

Mining has contributed significantly to exports. But, without the development of downstream industries, that is a double-edged sword. As it spreads, it will cause a resource curse situation and hamper future development of the economy. Even if exports give rise to growth, this growth is clearly unsustainable. It will cause dependence on exports that deplete non-renewable resources.

Not a few national government officials have also become concerned with the problems created by the current policy for the mining industry. Some are casting about for means to raise revenues, others are considering mechanisms to improve governance of the industry. Executive Secretary Paquito Ochoa announced that the government intends to adopt the Extractive Industries Transparency Initiative. However, these are piecemeal measures mainly addressed to improving revenues for the national government. To date, no comprehensive policy review has been conducted. Such a review is not even an express priority and therefore no viable vision for a viable and sustainable mining program has been articulated. Without such a vision, new mining projects such as those recently procured by the President in China, will benefit only those companies, not the country, not the Filipino people and not the Philippine government (national as well as local).

Congress has taken due notice of the problems caused by current mining policy. Several alternative mining bills that adequately address these concerns have been filed in the House of Representatives. But, these have not been prioritized in the legislative agenda of the Executive branch of government. On the other hand, moves to amend the economic provisions of the Constitution may further degrade the Philippine position vis-à-vis mining.

Bantay Kita calls for the crafting and institutionalization of reforms before further expansion of the mining industry. Thus, it appeals to President Benigno C. Aquino III to immediately institute an in-depth review of the current mining regime, with special attention to the incentives granted to the industry, its practices vis-à-vis the rights of local populations and indigenous peoples and its long term effects on the environment. Bantay Kita also sees the need to prioritize the passing of a new mining act, the adoption of the Extractive Industries Transparency Initiative (EITI) and other transparency mechanisms and to craft a policy statement on extractive industries. Finally, Bantay Kita calls for a moratorium on new mining projects until a mining regime in which present as well as future generations of stakeholders receive their fair and just share, has become operative. –ANABELLE E. PLANTILLA, Manila Times