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State of Mining: Liberalization under the Aquino Administration and the People's Movement.
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State of Mining:Liberalization under the Aquino Administration and the People’s p
Movement
Kalikasan PNE
Defend Patrimony! AllianceDefend Patrimony! Alliance
Philippine Mining Industry
• Mainly extractiveMainly extractive • Export‐oriented• Dominated by TNCs, local elite • Dependent on foreign capital and• Dependent on foreign capital and
technologies
Philippine Mining IndustryExploration
Philippine Mining Industry
Mine Development
Extraction
Initial Processing
Refining & Smelting
Fabricating
Mining Act of 1995• Investment Guarantees
– Repatriation of Capital
– Freedom from Expropriation
– Remittance from earnings and interest on foreign loans
– Freedom from requisition of properties
– Confidentiality of Information
• Tax Holiday during recovery of pre‐operating expenses for a maximum of 8 years from commercial production (FTAA)
• Income Tax carry forward of losses
• Water rights, timber rights, easement rights
Philippine Mining StatisticsPhilippine Mining Statistics
National Policy Agenda on Revitalizing Mining in theRevitalizing Mining in the Philippines (EO No. 270‐2004)
• 2003, 23 then 63 (2007) Priority Mining Projects under GMA
• Overall value of production in 2006 reached P68.4 billion compared to P35.2 billion in 2002
• 8 tailings dam failures since• 8 tailings dam failures since 2001
• 4 tailings dam failures in Rapu‐Albrapu, Albay.
Employment and TaxesEmployment and Taxes
Mining AgreementsMining Agreements
2005 2006 2007 2008 20092005 2006 2007 2008 2009+
Mining Concession AreaMining Concession Area
2007 2008 2009 July 2010
EP 89,828.76 NA NA 345,974
MPSA 373, 201 NA NA 587,340
FTAA 41,199 87,249 90,341 109,217, , , ,
TOTAL 514,948 600,000 + 782, 187 1,042,531
New Trends in the Mining Industry ( )(2009‐2010)
• Renewed mining offensive • Expansion of magnetite – Record breaking gold prices
$1,300/oz (AO 09/28/10)– Rising industrial metal prices
mining with small scale mining permit
• Proliferation of coal miningor economic security concern
– New DENR Secretary and President Aquino?
Proliferation of coal mining contracts– Energy supply for local power
plants• Entry of big local businesses
– MPC/Pangilinan– San Miguel/Cojuangco
p– Export
• Continuing Militarization and Human Rights
– Lucio Tan,
• Use of greenwashing, corporate propaganda
and Human Rights Violations in mining‐affected areas
p p p g
Killings of Environmental ActivistsKillings of Environmental Activists
New Administration,ld lSame Old Mining Policies
• Appointed Ramon Paje as DENR • Issued loggingSecretary
• Increased target mining output from 2009 to 30% for 2010 (Arroyo was 10 20% only)
Issued logging moratorium
• Cancel 600 mining 10‐20% only)
• Interfered in the South Cotabato open‐pit mining ban to pursue a “win‐win” solution for Xstrata and
gapplications
LGU
• Did not act on Mt. Diwalwal mining privatization
• Did not reverse midnight mining deals like FTAA in Palawan and MPSA in Camarines Sur (21 MPSA, 2FTAA, 13 EP)13 EP)
People’s StrugglePeople s Struggle
• Increasing resistance at • Local governmentIncreasing resistance at the grassroot level– Southern Tagalog
Local government units imposing mining moratorium
(Romblon, Mindoro, Batangas, Palawan)
Eastern Visayas
• Continuing Legislative and Legal Actions
– Eastern Visayas
– Southern Mindanao Region
– writ of Kalikasan
– People’s Mining Bill
– CARAGA Region
– SoCSKSarGen Region
• Broadening of alliances
• International support
People’s StrugglePeople s Struggle
Our CallOur Call
1 Mining moratorium on Large‐scale Mining1. Mining moratorium on Large scale Mining Projects and Operation
2 Repeal the Mining Act of 19952. Repeal the Mining Act of 1995
3. Pass the People’s Mining Bill
Defend our Patrimony, Protect our Rights!y, g