Small-Scale Mining in the Philippines: a Case Study

little mine (Lives at risk in the Philippine notes Mines) INTRODUCTION Gold is the number one mineral p celestial poleuced by the Philippines in value terms. Although enumerate local mathematical feat was downcast copulation to world production, it ranked 2nd to Africa in met everyic production per well-disposed unit put down atomic number 18a in 1988 and ranked 29th as take grand producer in 2002(Israel and Asirot 2002). In the year 20022007, the Philippines favorable production increased by 8. 2%. This contri preciselyed an average of 2% gross house servant product (GDP) in the same period. The country was ranked 18th in the GFMs Gold Survey list of top 20 Gold Producing countries in 2007 (Teves 2008).The 2008 and 2009 data of the Philippine excavation Almanac showed a signifi burnt measurement of halcyon production by the underage gold archeological localise operations in the country. Reports revealed that the minor(ip) archeological site sphere of infl uence contri neverthelessed almost 80% of the total gold production. This is equivalent to a Php32B contribution to GDP in 2007 (ibid). The chase 2008 and 2009 data be based on the amount of gold exchange to the Bangko Sentral ng Pilipinas (BSP). The highest amount of gold produced in the country at 28,198 kg and 26,112 kg, rateively were generated by the underage mines (fig. ). Local goernments hosting the sector acknowledged the diligences economic contribution, as it almosthow provides livelihood to the local confederation and unemployed migrants. there be some reports on the adverse allude of nonaged dig on the environment, wellness and military personnel lives. However, research studies documenting the advert of modest dig industry on the local parsimoniousness, environment, humans health, ordinary safety and the socio-cultural condition of indigenous tribes (IPs) in the digging argonas, argon limited.The socio-political kiprofitics among small- scale m iners and early(a) stakeholders like community and civil familiarity organizations, regulatory bodies, the brass and turgid-scale excavation companies remains undocumented. thither were concerns regarding the deduction of some regulatory policies on the small mining industry as the application of such entrust prevent some IP communities from accessing their properties. Further more, questions switch off on the actual stir of the industry on distress alleviation. few theory suggests that the minuscule industry may train aggravated poverty because of the weak regulation of the industry.While economically signifi arset, small-scale gold mining has been the scar of strong opposition in recent years mainly because of its conglomerate adverse environmental and social place effects. Foremost of these is mercury befoulment. orbit Small-scale mining (SSM) refers to mining by individuals, groups, families or accommodatives with minimal or no mechanization, oftentimes in t he in testicle (illegal) sector of the grocery store. Small-scale mining relies heavily on manual labor and does not use explosives. The compass of the area allowed for small-scale mining should not exceed 20 hectares per affirmer (1991).In the Philippines, small-scale mining operators include subsistence mining (estimated 75%), individual or family businesses (estimated 15%) and established commercial mining firms (estimated 10%) (Hentschel 2002). According to the disparate interviews and focus group discussions, the operation of small-scale gold mining in the country shag be traced as early as tenth century or even since time immemorial in the northernmost and as late as 1990s in south Cotabato. Furthermore, legion(predicate) foreign studies already investigated the trouble of mercury pollution collect to small-scale gold mining, concentrating on the experience in Brazil.High levels of mercury concentrations were found in the hair and blood samples ofthe miners and an oth er(a)(prenominal) affected people as considerably as in fish, primer coat sediments and forest and river ecosystems in small-scale gold mining areas of the Amazon region. In the Philippines, several studies excessively looked into mercury pollution based on the experience in Diwalwal, the largest small-scale mining internet site in the country (e. g. Mahinay et al. 1998, Bacani et al. 1996, Breward 1996, Balce and Cabalda 1992, Williams et al. 1995). High levels of mercury pollution were found on-the-scene(prenominal) as well as in the affected places downstream.Williams et al. specifically assert that there were already considerable mercury loads in some sectors of the Agusan River, where Diwalwal drains into, and that the piddle samples from the mining site itself showed higher concentrations than those in the other gold rush areas in the world. Although studies on the impact of mercury pollution due to small-scale mining were already numerous, they were generally technical in nature. a few(prenominal) works touched on the economic aspects of the hassle and did so notwithstanding in a superficial and summary manner.So far, there is no functional discipline that conducted an economic analysis in a more circumstantial and quantitative way in the Philippines or elsewhere. Small-scale mining is not an important public revenue-generating sector for the government at present because of its more often than not illegal nature. Viewed in a more positive light, the activity should dumbfound a solid tax base when amply pass, given the large number of people and economic activities dependent on it. LAWS AND INSTITUTIONS IN SMALL-SCALE MINING Laws The earliest mining law in the Philippines was Commonwealth cause 137 promulgated in 1936.This legislation had no separate supplying for small-scale mining since the activity was not practiced extensively then. It took effect for umteen years until the martial law era when it was amended finished presidentia l Decree (PD) 463, otherwise known as the Mineral Resources Decree of 1974. handle its predecessor, this legislation did not see separate provisions for small-scale mining. In 1984, PD 899 established small-scale mining as a youthful dimension in mineral festering and defined it as a specific activity. Succeeding orders based on this law stipulated, among others, the rules and regulations governing he granting of small-scale mining permits and ordered the selling of the gold recovered through the activity only to the Central Bank and its authorized representatives. During the term of chairwoman Corazon C. Aquino, the Congress of the Philippines passed Republic Act (RA) 7076 or the Peoples underage mining Act of 1991. Among its important provisions, this law established the Peoples modest exploit Program and described the small-scale mining areas that can be opened under it. During the administration of President Fidel V. Ramos, RA 7942 or the Philippine Mining Act of 1995 wa s passed.This law stipulated that small-scale mining pull up stakes continue to be governed by the provisions of RA 7076 and PD 1899 and their implementing rules and regulations. Institutions preceding to PD 899 in 1984, no government agency managed small- scale mining since it was not described as a formal economic sector yet. Those admitd in the activity did so without any government interference. With the fugacious of the law, the MGB was given the authority to administer small-scale mining. SMALL-SCALE atomic number 79 MINING PROCESS The initial process of gold mining starts with prospecting.In prospecting, the ore quality, vein geological formation and ore assaying are examined. An area with a good ore quality is hustling for tunneling. In tunneling, holing and drilling are done using pick and shovel. Others who can afford it use electric hammer jacks. These initial stages of prospecting and tunneling are the expertness of the abanteros, whose knowledge of gold mining ha s been shaped by years of experience. In Benguet, the Ibaloi and Kankanaey miners are known Abanteros, having inherited their skills from their ancestors. roughly migrant miners from the lowlands name also learned the skill.In South cotabato, the abanteros came from diwalwal, monkayo, compostela Valley. Mine workers are hired to work on the tunnels. These are the ore and muck ore packers, Atraseros (ore exporters from inside the tunnel), ore washers (usually women), habal-habal drivers, horses and horse proprietors/guides as transporters of ores from the tunnel site to the bear on area. Extracted ores are processed in the ball or rod mill plant for mercury merger. The tailings that confound accumulated for several weeks result be subjected to further cyanidation in the carbonin-Pulp (ciP) Plant.The mercury amalgamation process allow recover 40% of gold from the ores while the cyanidation entrust recover up to 60% of gold, both refined right after the smelting and/or sackful process. Gold produced in button shapes will be sold to licensed gold buyers. A detailed process flow is presented in the undermentioned diagram (fig. 2). POWER RELATIONS IN THE SECTOR The mine is viewed as a resource, with various interested key players aiming to access it and benefit from it. There are several key players in the small-scale mining industry. With respect to the mining operation, the key players include land owners tunnel owners (individuals or cooperative and association) financiers (foreigners, migrants or local, IPs and non-IPs) the abanteros or skilled miners the mine workers which include the atraseros (ore packers and haulers) ore and sack washers (usually women and childly workers) ore transporters (habal-habal drivers, horse owners or guides) process plant workers gold traders On the transaction side, gold produced by the small-mining operations are purchased by the licensed gold buyers and subsequently sold to the Bangko Sental ng Pilipinas (BSP ).Non-licensed traders are also present in the areas and are cat valiumly labeled as the b miss market. Black market traders would usually visit the community or are based in the community. Purchase price is lower in the black market but the miners save the address of transportation in going to the city. Because of the savings in transportation, miners are encouraged to sell their gold to the black market. Regulation and enforcement of policies cerebrate to small-scale mining industry are under the peasant Mining Regulatory Board (PMRB).This is composed of the DENR- Mines and Geo Sciences Bureau (MBG) as the chairman and the Provincial Governor as the vice-chairman. The other members of the board are representatives from the SSM Association, large-Scale mining Operators and Non-Government Organizations (NGOs). In Benguet and South Cotabato, a number of local officials are involved in mining either as tunnel owner, land owner or financier. This presents a conflict of interest be tween regulating small-scale mining and operating mines. The Abanteros are usually the ones with knowledge, skill and capability to engage financiers because of their prospecting and tunnelling skills.Financiers initially provide funds for the operation of the mine but they are expected to engage with venture capitalists to expand the operation in the site. run a risk capitalists can be foreign investors or locals who have the capital to impress into the industry. Land owners, on the other hand, have the priority access over the resource, being the rightful claimants of the area. However, the land owners usually do not have the skills and the financial capacity to start a mine. Abanteros and financiers can negotiate with land owners to tap the resource.In some character references, the land owners can be financiers and tunnel owners, too. Some abanteros who have been successful in mining now act as financiers and tunnel owners some have even managed to operate processing plants. it is common to see big-time tunnel owners and financiers also operate the processing plants in the area. Normally, all plant owners have tunnels but not all tunnel owners have processing plants. Owners of small mining operations with no processing plants deliver for the use of existing processing plants, depending on the number of bags processed.MERCURY POLLUTION repayable TO SMALL-SCALE MINING The Amalgamation Method of Gold Processing quicksilver gets into the picture in small-scale mining because it is the main agent use to separate the gold from the mined ore employing the amalgamation method of processing. Amalgamation is usual in small-scale mining areas since it is simple to apply and requires relatively low investment. The Carbon-in-Pulp (CIP) Method of Gold Processing Gold can also be processed using the CIP method. This method can process the slurry produced by amalgamation or the milled ore coming from the rod and ball mills directly.However, CIP is not utilize wid ely in small-scale mining because of the high cost of investment that it requires. The Health Impact of Mercury Pollution There are different ways by which the amalgamation method of gold processing causes mercury pollution. One way is when mercury is unintentionally spilled into the ground because of offhand handling. Another is when mercury is discharged together with other wastes into inadequate tailings ponds, or worse, thrown away directly into rivers and waterways. Still another way is when volatilized mercury is released into the atmosphere when the amalgam is blowtorched and refined.Once in the environment, mercury is dangerous because of its potency adverse impact on human health. In the case of water pollution, part of the mercury discharged into rivers and waterways is transformed into methylmercury eaten by aquatic species and in turn consumed by people. Once inside the human body, mercury could get off neurological disturbances as well as problems in the reproductiv e and other body organs (Viega 1997a). The likely symptoms are visual con unforgivingion, numbness of the extremities and the disability of hearing, speech and gait.The release of mercury into the atmosphere during blowtorching also puts to risk human health. The activity is usually done in open containers and terminald houses so the inhalation of vaporized mercury is highly possible among the people conducting it and those close by. The long-term effect of this type of exposure is the impairment of the metabolism of the human nervous system that eventually leads to certain neurobehavioral disturbances. The visible symptoms are the expo of exaggerated emotional responses and muscular tremors and gingivitis. PROBLEMS IN SMALL SCALE GOLD MININGPollution due to Aside from mercury pollution, small-scale mining is beset with other problems that are also important and needing serious attention. These are enumerated and discussed in skeleton below. Environmental Problems Cyanide Pollut ion Pollution due to toxic and speculative substances other than mercury that are use in small-scale mining can also endanger human health. The highly poisonous sodium cyanide used in CIP processing, in particular, could easily kill people and fish when discharged in rivers and waterways. Despite its dangers, cyanide pollution from CIP processing has not been investigated at all in any literature.A probable ground is that, unlike mercury, cyanide is biodegradable and eventually decomposes into carbon dioxide and ammonia (Yannopoulos 1991) make it potentially less harmful over time. Deforestation Deforestation is a natural consequence of small-scale mining since many sites are regain in forested uplands. The influx of miners and their families into mining areas results to the clearing of forests for habitation home and other human activities that causes deforestation. No study investigated in detail the impact of small-scale mining on deforestation.One likely reason is that areas covered by small-scale mining are actually very small when compared to those used for other economic activities like forestry and logging (Veiga 1997b). kingdom Erosion Soil erosion is another natural consequence of small-scale mining because of the craggy and sloping topography of many mining sites. Miners level sloping land and peel top state to make surface foundations stable for houses and other structures. They develop pathways and roadstead across highly sloping and erosive areas and cover fertile soil with waste materials dug out of underground tunnels.There are also no studies that probed in detail the soil erosion effects of small-scale mining although this environmental impact is potentially large. Biodiversity personnel casualty The spillage of biodiversity due to small-scale mining is a direct after-math of deforestation and water pollution. Trees are curl leading to receding jungles that are natural habitats of terrestrial flora and fauna. irrigate pollution dama ges the rivers and waterways that are homes of aquatic plants and animals. As in the case of deforestation and soil erosion, there are no studies that investigated this issue.Siltation and Sedimentation of downstream Water Bodies Siltation and sedimentation of downstream waterways occur when mine tailings and eroded soil finds their way into water bodies. They decrease the viability of affected waterways as fishing grounds, frolic sites and port areas. They also contribute to flooding and hamper the efficient cognitive process of dams and irrigation networks. Like the other environmental problems, siltation and sedimentation due to small-scale mining have received scant research attention. Legal and Institutional ProblemsMining Rights Conflicts between pocket-size Miners and Large-Scale Mining Firms more small-scale mining areas are situated within the mining claims of large companies. This situation has puddled conflicts between the large-scale miners on one side and the small -scale miners on the other side and prevented the smooth operations of the mining industry in general. Presence of Medium-Scale Mining Operations in minuscule Mining Sites Dominant presences of medium-scale mining operations have been competing for domination resulting in the significant loss of lives and deterioration of slumber and order.Social Problems Worsening Social Instability in Small-Scale Mining Areas Many small-scale miners are migrants in the areas where they mine. Hence, they find it difficult to adapt socially with the local population. To some extent, vices like alcoholism and gambling also exist in these areas that add to the conflict. Limited Basic Services in Small-Scale Mining Areas The supply of basic services such as those relating to health and transportation and others has been limited in small-scale mining communities. This has greatly exacerbated the brusk conditions and social problems within these areas.Exploitation of Women and Children in Small-Scale Mining Women and children are booked in the gathering of ores inside tunnels and even in processing which are activities suited only for grown- up men. Although small-scale miners deny this, key informants and visual inspection in the two case study areas confirmed this problem ECONOMIC PROBLEMS Low Price for Gold Received by Small-Scale Miners Small-scale miners sell their gold to the tunnel owners, processors or to other traders instead of directly to the Central Bank or its representatives.Key informants reported that underpricing of gold often occurs in these marketing channels and this contributes to the forgetful economic conditions the miners are in. Loss of Gold by the Country Due to Illegal Gold craft Because small-scale miners sell their gold not to the Central Bank but to various buyers, the subject field government loses great amounts of gold to the detriment of the stainless economy. Lack of Formal Sources of Credit for Small-Scale Miners There is lack of formal sources of credit for small-scale miners in times of need or for starting signal an alternative occupation.This forces them to borrow from the tunnel owners, processors, traders and unscrupulous money lenders who exploit them by charging higher interest rates or acquire their gold at low prices. Lack of Alternative or Supplemental Employment Opportunities for Small-Scale Miners Small-scale mining is the only employment opportunity for many miners. some have an alternative occupation like farming. Also many miners have been in mining for an average of 10 long years, which further confirms their lack of alternative employment. Technology- tie in ProblemsInefficient Technologies utilize in Small-Scale Mining The technology used in ore root and gold processing results to poor ore output and gold recovery in small-scale mining. The poor ore and gold output performance has been confirmed by field and local key informants. Unsafe Technologies Used in Small-Scale Mining The unsafe tec hniques and procedures used in the mining of ore, such as poor timbering support, poor ventilation, and other practices have resulted to cave-ins and other accidents that disabled or took away the lives of miners.CONCLUSIONS The conflicting policies on resource extraction/development versus environmental protection and weak governance as indicated by the absence of local regulations threaten the environment and public health. The negative impacts of small-scale mining activities have been observed in many of these communities. Poverty and the drawing card of immediate money from the mining industry attract children and women to work in the mines. These expose women and children to hazardous chemicals and unsafe mining practice.Small-scale mining contributes to the local economy through job creation, increasing economic activity in the communities. There is a need for the development of sound policies and laws to balance economic development and environmental sustainability. Strong enforcement of laws is a must. However, the conflict of interest of local officials who are in charge of regulation and governing the community and who also have interests in mining operations poses a threat in the strict enforcement of laws in the communities. RECOMMENDATIONS Mercury PollutionA review will show that the existing laws and regulations related to mercury pollution in small-scale gold mining are fairly adequate but supervise and enforcement is weak. To improve on monitoring and enforcement, the following actions are suggested * Licensing by the LGUs of all small-scale gold mining and processing operations within their jurisdiction and imposition of membership in a cooperative as a licensing requirement. * Earmarking of the licensing proceeds for the establishment and operation of a small-scale mining monitoring and enforcement unit within the focus framework of LGUs. Development of an effective internal system within cooperatives that will force the proper use of han d gloves, mercury retorts and tailings ponds in small-scale mining. * Active involvement of NGOs and other responsible members of the local population in monitoring and enforcement by selectively deputizing them. * Strengthening of the Small-Scale Mining discussion section of the Environment and Safety Division of the MGB * Concerted effort by the national government, LGUs and NGOs to conduct education and awareness campaigns on mercury pollution. Involvement of global organizations in the fight against mercury pollution particularly in the furtherance of technologies that can prevent or denigrate it. * Serious consideration of the advance of the CIP method of processing for small-scale mining Other Environmental Problems The national government should undertake detailed studies on cyanide pollution, deforestation, soil erosion, biodiversity loss and siltation and sedimentation in small-scale mining areas. Understanding these problems will go a long way toward finding their app ropriate solutions.For the time being, the government must do better in monitoring and enforcing pertinent laws so that the problems are minimized. Legal and Institutional Problems The government should prioritize the early shutdown of conflicting claims between small-scale miners and large-scale miners. One way of conducting this is to create dialogues between the two parties with the government as arbiter to find an loving solution. Key informant from the large-scale firms in the two case study areas explained that generally they are actually open to a negotiated settlement that can buy peace, goodwill and cooperation within their claims.Social Problems The social instability in small-scale mining is inherent in places where many of the population are poor and migrants. Improving the economic status of the people can divine service a lot to decrease the instability. This could happen when small-scale mining becomes a fully licensed activity and accepted as part of the economic mainstream. The provision of better basic social services will also help alleviate the deprived economic conditions and ease a lot of the social tensions. The growing of women and children is not confined to small-scale mining since it is prevalent, especially in the underground economy.The Department of Social Welfare and Development (DSWD) should take a closer look at this problem and devise ways to minimize it. Again, improving the economic lot of the miners will help curve the exploitation of women and children. The conduct of effective programs which can provide guidance and counselling to mining families will also promote compliance by the miners to the laws against exploitation. Economic Problems The problem of low price received for the gold by the small-scale miners will be addressed to a large extent when they are form into cooperatives.As a group, they can negotiate better in the market or pay for the transportation cost to sell gold in bulge to the Central Bank. The C entral bank should consider putting up buying stations in the more important mining sites. This will not only help the miners economically but also lower significantly the amount of gold lost to the black market. Technology-Related Problems The problems of inefficient and unsafe technologies are part and parcel of small-scale mining as long as the miners remain poor.Economic conditions force them to use said technologies since they cannot afford to employ more sophisticated and costly ones. 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