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    By Philip M. Lustre Jr.
    Special to the BusinessMirror
     
    Responsible mining is a myth

     

    As mining activities take an upswing, bigger environmental woes loom, offsetting gains that have been made by the mining sector. The heavy social cost of a mining boom is to be expected. Mining growth and environmental degradation, or “ecological terrorism,” as an observer aptly puts it, are two sides of the same coin; one side goes with the other side.

    The environmental consequences will worsen, as investors pour $500 million into the local mining industry this year. Responsible mining is farthest from the investors’ collective mind. The term is an oxymoron; from historical and behavioral standpoint, most mining firms hardly care for the environment in their extractive endeavor. Obsessed by profits, mining firms and their allies, the promining advocates, are always unmindful of the downside of mining.

    The Philippines ranks fifth among the richest in mineral resources and new investments keep on pouring into the country. The firms and their new investments include Atlas Consolidated Mining and Development Corp., $100 million; Oceana Gold Ltd. of New Zealand and Climax Arino Mining Co. of Australia, $100 million; and Coral Bay Nickel Corp., $100 million (to expand its Rio Tuba operations).

    But the other face of mining development is discouraging. The mining boom leads to environmental fiascoes, like the denudation of mountains of their forest cover that leaves low-lying towns and cities vulnerable to floods and landslides; the poisoning of flora and fauna and lakes and other waterways to harmful chemicals; and the destruction of coral reefs, in case of seafloor drilling. Church leaders and environmental activists have referred to mining and logging as probably the most destructive industries man has ever created.

    To describe as irresponsible the activities of the cabal of metallic, nonmetallic and quarry operators, exploration companies, mineral-processing firms and service providers is an understatement. They have become the ecological terrorists, which have no moral qualms to use and pursue the most destructive means to amass profits. The worst in capitalism is exemplified by these corporate entities.

    Consider the following:

    In 1993 and 1996, the mining operations of Marcopper Mining Corp. were the source of major mine-tailing spills in Mogpog River and Boac River in Marinduque. The spills had degraded the river-water quality and led to loss of livelihood for the people. The Mogpog River is still badly affected by the contamination, while the Boac River has partially recovered because of its natural healing process.

    In 2005 Lafayette Phils.’ mining operations led to two spills on the island of Rapu-Rapu in Albay. Unlike Marcopper’s case, the two spills happened after a few weeks of Lafayette’s operations, causing cyanide leakage and fishkills. Lafayette’s saving grace is that it reported the incidents and has made fairly adequate ways to save the environment.

    Most recently, the mineral-processing operations of controversial Platinum Group Metals Corp. in Iligan City was reported to have caused an outbreak of skin and lung diseases among residents of a nearby community. Recent test runs by its ferronickel smelter, which is but a recycled junk, were reported to have emitted toxic and carcinogenic substances that led scores of residents to contract tuberculosis and acute dermatitis.

    Platinum neither reported the incident nor took ways to reduce the damage to the community. What it did was to deny it was the cause of the epidemic and put the blame on residents who, it claimed, lead unsanitary lifestyle. To exacerbate the people’s misery, Platinum announced it would spend $2 million (nearly P90 million) for the improvement and upgrading of the Iligan ferronickel smelter. But it appears that Platinum was engaged in mere propaganda, since the amount was more than twice what would be needed to put up a new smelter. It did not spend that much, though.

    The environmental woes spring from the conflicting mandate of the Department of Environment and Natural Resources (DENR). In what appears to be the strangest among the strange, the DENR has the legal mandate to protect the environment and exploit the natural resources at the same time. This is an administrative and legal anomaly. The DENR, with the inept leadership of the current secretary, finds itself suffering from a split personality.

    Some industry experts have suggested that fuel and nonfuel minerals should be integrated into a single Department of Energy and Natural Resources, while the environment protection aspects should be placed under the proposed Department of Environment, Housing and Information Technology. This bureaucratic realignment makes more sense.

    This is not the only issue. The situation shows a complicated regulatory process for mining firms—or something that borders on the chaotic. The DENR and its regulatory agencies have to subject mining firms to stringent regulatory system that culminates in the issuance of environmental compliance certificate, which allows a mining firm to operate.

    But, as noted by industry observers, the environmental impact assessment, which serves as the basis of the compliance certificate, is essentially conjectural. Such assessment cannot in any way establish the actual damage to the environment, unless the mining firm conducts actual operations.

    This is why a comprehensive monitoring system is being proposed to mobilize the major stakeholders—mining firms, civil society, local government units, private citizens, among others—to participate in assessing the actual effects of any mining activity. The DENR should not be the only agency to make an assessment.

    It is also suggested that a comprehensive monitoring system use conventional monitoring protocols to detect pollution or contamination in the environment. Existing laws do not qualify contaminated sediment as basis for mine closure or imposition of fines, which have to be raised substantially since they are too small for erring mining firms.

    ****

    In the early 1970s Gunnar Myrdal, the eminent Swedish development economist, came out with a study of developing countries, India in particular, which were having difficulty alleviating pervasive poverty. Myrdal used the terms “soft state” to refer to the countries which possess weak political, economic and social structures to deal with poverty.

    This pejorative term may well apply to the Philippines, which also finds great difficulties in enforcing its own laws and rules. Take the case of Zed Phils., an unlicensed value-added service provider. The National Telecommunications Commission (NTC) has issued a cease-and-desist order to stop its illegal operations.

    But it continues to defy the NTC order. It even issued a press statement saying it has stopped when the private complainant himself was claiming it hasn’t. NTC Deputy Commissioner Jorge Sarmiento said the NTC would likely meet this week to discuss the idea of further enforcing its order. It should. Otherwise, the NTC would give credence to the idea that ours is truly a soft state.

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