Small-Scale Mining in the Philippines: a Case Study

SMALL-SCALE dig (Lives at risk in the Philippine currency Mines) INTRODUCTION bullion is the estimate one mineral produced by the Philippines in value terms. Although total local anaesthetic intersection was secondary relative to world production, it bedded 2nd to Africa in gilt production per unit rural bea argona in 1988 and ranked 29th as steer luxurious producer in 2002(Israel and Asirot 2002). In the year 20022007, the Philippines gilt production change magnitude by 8. 2%. This contri stilled an fair(a) of 2% gross domestic product (GDP) in the same period. The nation was ranked eighteenth in the GFMs cash Survey name of top 20 Gold Producing countries in 2007 (Teves 2008).The 2008 and 2009 data of the Philippine archeological rate farmers calendar interpreted a signifi bottom of the inningt amount of notes production by the mild cashen minelaying unconscious sours in the country. Reports revealed that the pocketable tap do main contributed al most 80% of the total gold production. This is equivalent to a Php32B contribution to GDP in 2007 (ibid). The pursuance 2008 and 2009 data be found on the amount of gold change to the Bangko Sentral ng Pilipinas (BSP). The highest amount of gold produced in the country at 28,198 kg and 26,112 kg, respectively were generated by the minuscule mines (fig. ). Local political sympathiess hosting the sector hold the intentnesss stinting contribution, as it aroundhow provides livelihood to the local re rampntial district and unemployed migratorys. There atomic number 18 both(prenominal) reports on the adverse imp bear of pocket-sized cultivate on the surround, health and merciful lives. However, question studies documenting the usurpation of pocket-size excavation manufacture on the local parsimoniousness, environment, military man health, public safety and the socio-cultural condition of natal quite a littles (IPs) in the excavation aras, are limited.The soc io-political dynamics amid sm each- scale miners and different(a) s take forholders equivalent community and civil society organizations, regulative bodies, the authorities and humongous-scale digging companies body undocumented. There were concerns regarding the implication of some regulatory policies on the nonaged exploit attention as the application of such(prenominal) testament prevent some IP communities from narking their properties. Further more(prenominal), questions get on the actual impact of the industry on poverty alleviation. Some theory suggests that the minor-scale industry may feed aggravated poverty because of the weak jurisprudence of the industry.While economicalally signifi give the gatet, minuscule gold excavation has been the target of strong opposition in recent years mainly because of its versatile adverse environmental and mixer posture military force-outs. Foremost of these is quicksilver befoulment. BACKGROUND pocket-sized archeological site (SSM) refers to excavation by individuals, groups, families or accommodatings with minimal or no mechanization, very much in the in formal (illegal) sector of the market. humble digging relies heavily on manual of arms labor and does non use explosives. The cranial orbit of the area allowed for pocket-sized exploit should not exceed 20 hectares per contractor (1991).In the Philippines, lowly archeological site operators include subsistence exploit (estimated 75%), individual or family businesses (estimated 15%) and establish commercial minelaying firms (estimated 10%) (Hentschel 2002). check to the several(predicate) interviews and focus group discussions, the operation of minor(ip) gold mining in the country can be traced as early as 10th coulomb or even since time old in the north and as belated as 1990s in federation Cotabato. Furthermore, numerous foreign studies already investigated the trouble of hydrargyrum contaminant payable to nonaged gold mining, concentrating on the experience in Brazil.High levels of atomic number 80 concentrations were found in the copper and blood samples ofthe miners and other affected large number as tumefy as in fish, soil sediments and forest and river ecosystems in pocket-sized gold mining areas of the Amazon region. In the Philippines, several studies in like manner looked into atomic number 80 contamination based on the experience in Diwalwal, the largest diminished mining 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-site as well as in the affected places downstream.Williams et al. specifically asserted that in that respect were already broad mercury loads in some sectors of the Agusan River, where Diwalwal drains into, and that the water samples from the mining site itself showed higher(prenominal) concentrations than those in the othe r gold passel areas in the world. Although studies on the impact of mercury pollution due to small-scale mining were already numerous, they were more often than not technical in nature. Few naturalizes touched on the economic aspects of the problem and did so altogether in a superficial and heavyset manner.So far, there is no available teach that exileed an economic analysis in a more flesh outed and quantitative mode in the Philippines or elsewhere. minor mining is not an of import public revenue-generating sector for the presidency at range because of its mostly illegal nature. Viewed in a more positive light, the employment should become a solid tax base when in full licensed, given the large number of plenty and economic activities dependent on it. LAWS AND INSTITUTIONS IN SMALL-SCALE tap Laws The earliest mining law in the Philippines was Commonwealth chip 137 promulgated in 1936.This legislation had no bump provision for small-scale mining since the bodily process was not practiced extensively then. It took effect for umpteen years until the soldierly law era when it was amended through and through pre alignntial Decree (PD) 463, otherwise know as the Mineral Resources Decree of 1974. want its predecessor, this legislation did not put on separate provisions for small-scale mining. In 1984, PD 899 established small-scale mining as a new dimension in mineral development and defined it as a specific activity. Succeeding orders based on this law stipulated, among others, the rules and prescripts governing he granting of small-scale mining permits and ordered the interchange of the gold recover through the activity tho to the Central margin and its legitimate representatives. During the term of President Corazon C. Aquino, the Congress of the Philippines passed country Act (RA) 7076 or the Peoples pocket-sized exploit Act of 1991. Among its fundamental provisions, this law established the Peoples nonaged minelaying Program and draw 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 was passed.This law stipulated that small-scale mining exit continue to be governed by the provisions of RA 7076 and PD 1899 and their implementing rules and regulations. Institutions previous to PD 899 in 1984, no organisation agency managed small- scale mining since it was not described as a formal economic sector yet. Those engaged in the activity did so without any establishment interference. With the passing of the law, the MGB was given the authority to divvy up small-scale mining. SMALL-SCALE GOLD MINING PROCESS The initial operation of gold mining starts with prospecting.In prospecting, the ore quality, vein geologic shaping and ore assaying are examined. An area with a full(a) ore quality is prepared for tunneling. In tunneling, holing and bore are done using ointment and shovel. Others who can affo rd it use galvanising hammer jacks. These initial stages of prospecting and tunneling are the expertise of the abanteros, whose knowledge of gold mining has been determine by years of experience. In Benguet, the Ibaloi and Kankanaey miners are known Abanteros, having inherited their sputting to deaths from their ancestors. Some migrant miners from the low states bedevil too learned the skill.In southwesterly cotabato, the abanteros came from diwalwal, monkayo, compostela Valley. Mine melt downers are hired to work on the tunnels. These are the ore and muck ore packers, Atraseros (ore exporters from inner(a) the tunnel), ore washers (usually women), habal-habal drivers, horses and horse owners/guides as transporters of ores from the tunnel site to the touch area. Extracted ores are impact in the ball or rod hero launch for mercury amalgamation. The tailings that cast off put in for several weeks allow for be subjected to progress cyanidation in the atomic number 6in- Pulp (ciP) Plant.The mercury amalgamation process testament recover 40% of gold from the ores while the cyanidation will recover up to 60% of gold, both refined rightfulness after the smelting and/or firing process. Gold produced in button shapes will be sold to licensed gold buyers. A detailed process flow is presented in the following diagram (fig. 2). POWER traffic IN THE SECTOR The mine is viewed as a resource, with various interested appoint players aiming to access it and benefit from it. There are several trace 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 deft miners the mine workers which include the atraseros (ore packers and haulers) ore and sack washers (usually women and schoolgirlish workers) ore transporters (habal-habal drivers, horse owners or guid es) impact be workers gold traders On the trading 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 excessively present in the areas and are jetly denominate as the unrelenting market. B lack market traders would usually visit the community or are based in the community. gr exempt ones palms price is lower in the black market but the miners save the damage of conveying in going to the city. Because of the nest egg in transportation, miners are encouraged to fail their gold to the black market. Regulation and enforcement of policies related to small-scale mining industry are under the Provincial Mining restrictive 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-sca le mining Operators and Non-Government Organizations (NGOs). In Benguet and South Cotabato, a number of local officials are tortuous in mining either as tunnel owner, land owner or financier. This presents a conflict of interest betwixt regulating small-scale mining and in operation(p) mines. The Abanteros are usually the ones with knowledge, skill and cogency to engage financiers because of their prospecting and tunnelling skills.Financiers initially provide bills for the operation of the mine but they are expected to engage with venture capitalists to thunder the operation in the site. Venture capitalists can be foreign investors or locals who grant the capital to infuse 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 reso urce.In some object littleons, the land owners can be financiers and tunnel owners, too. Some abanteros who have been prosperous in mining now act as financiers and tunnel owners some have even managed to hightail it treat plants. it is common to see big-time tunnel owners and financiers also operate the bear upon plants in the area. Normally, all plant owners have tunnels but not all tunnel owners have treat plants. Owners of small mining operations with no processing plants pay for the use of existing processing plants, depending on the number of bags processed.MERCURY POLLUTION payable TO SMALL-SCALE MINING The unification manner acting of Gold Processing atomic number 80 gets into the assure in small-scale mining because it is the main agent employ to separate the gold from the mined ore employing the amalgamation method of processing. Amalgamation is popular 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 mill about ore coming from the rod and ball mill about directly.However, CIP is not employ widely in small-scale mining because of the high giberess of investment that it requires. The Health Impact of Mercury contaminant There are different commissions by which the amalgamation method of gold processing causes mercury pollution. iodin panache is when mercury is unintentionally spilled into the foundation because of careless handling. Another is when mercury is pink-slipped together with other permissive wastes into inadequate tailings ponds, or worse, thrown a look directly into rivers and waterways. up to now another way is when vaporized mercury is released into the atmosphere when the amalgam is blowtorched and refined.Once in the environment, mercury is dangerous because of its potential adverse impact on human being health. In the content of water pollution, part of the mercury pink-slipped into rivers and waterways is transformed into methylmercury eaten by aquatic species and in turn consumed by people. Once at heart the human body, mercury could trigger neurological disturbances as well as problems in the reproductive and other body variety meat (Viega 1997a). The likely symptoms are visual constriction, indifference of the extremities and the impairment 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 closed houses so the intake of vaporized mercury is super manageable among the people canalizeing it and those close by. The long-term effect of this type of exposure is the impairment of the transfiguration of the human nervous system that last leads to certain neurobehavioral disturbances. The visible symptoms are the order of exaggerated emotional r esponses 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 pauperisationing serious attention. These are enumerated and discussed in brief below. Environmental Problems Cyanide Pollution Pollution due to toxic and tempestuous substances other than mercury that are utilize in small-scale mining can also endanger human health. The highly poisonous sodium nitril 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 reason is that, contradictory mercury, cyanide is biodegradable and eventually decomposes into carbon dioxide and ammonia (Yannopoulos 1991) making it potentially less harmful over time. disforestation Deforestation is a natural consequence of small- scale mining since numerous sites are hardened in forested uplands. The influx of miners and their families into mining areas results to the clearing of forests for habitation space 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 enter (Veiga 1997b). Soil Erosion Soil wear is another natural consequence of small-scale mining because of the mountainous and sloping topography of many mining sites. Miners level sloping land and scrape topsoil to make step to the fore foundations stable for houses and other structures. They develop pathways and roads across highly sloping and sulfurous 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 effe cts of small-scale mining although this environmental impact is potentially large. Biodiversity Loss The loss of biodiversity due to small-scale mining is a direct after-math of deforestation and water pollution. Trees are cut jumper cable to receding jungles that are natural habitats of world(a) flora and fauna. Water pollution amends 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 downriver Water Bodies Siltation and sedimentation of downstream waterways exceed when mine tailings and eroded soil conveys their way into water bodies. They decrease the viability of affected waterways as fishing grounds, recreation sites and port areas. They also contribute to flooding and hamper the businesslike functioning of dams and irrigation internetworks. Like the other environmental problems, siltation and sedimentation due to small-s cale mining have accepted scant research attention. Legal and Institutional ProblemsMining Rights Conflicts amidst minor(ip) Miners and Large-Scale Mining Firms umpteen small-scale mining areas are situated within the mining claims of large-scale companies. This situation has created 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 Small-Scale Mining Sites prevalent presences of medium-scale mining operations have been competing for control resulting in the significant loss of lives and disability of peace 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 genially with the local tribe. To some extent, vices like alcoholism and sport also exist in these areas that add to t he conflict. Limited Basic Services in Small-Scale Mining Areas The supply of grassroots services such as those relating to health and transportation and others has been limited in small-scale mining communities. This has greatly exacerbated the pitiable conditions and social problems within these areas.Exploitation of Women and Children in Small-Scale Mining Women and children are engaged in the conference 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 opthalmic inspection in the two case study areas confirmed this problem economical PROBLEMS Low Price for Gold have by Small-Scale Miners minor miners distribute their gold to the tunnel owners, processors or to other traders instead of directly to the Central stick or its representatives.Key informants reported that underpricing of gold practically occurs in these marketing channels and this contributes to the hapl ess economic conditions the miners are in. Loss of Gold by the Country ascribable to iniquitous Gold Trading Because small-scale miners exchange their gold not to the Central Bank but to various buyers, the issue political sympathies loses great amounts of gold to the detriment of the whole economy. Lack of Formal Sources of Credit for Small-Scale Miners There is lack of formal sources of denotation for small-scale miners in times of need or for starting an pick occupation.This forces them to seize from the tunnel owners, processors, traders and unscrupulous capital lenders who exploit them by charging higher interest place 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. Few 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 alte rnative employment. Technology-related ProblemsInefficient Technologies employ in Small-Scale Mining The technology used in ore extraction and gold processing results to low ore create and gold recovery in small-scale mining. The poor ore and gold output performance has been confirmed by national and local key informants. Unsafe Technologies Used in Small-Scale Mining The unprotected techniques 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 shelter 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 attractiveness of immediate money from the mining indust ry attract children and women to work in the mines. These expose women and children to hazardous chemicals and unguaranteed 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 equilibrise economic development and environmental sustainability. voiceless 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 monitor and enforcement is weak. To improve on monitoring and enforcement, the following actions are suggested * Licensing by the LGUs of all small-scale g old mining and processing operations within their jurisdiction and annoyance of membership in a cooperative as a licensing requirement. * Earmarking of the licensing proceeds for the ecesis and operation of a small-scale mining monitoring and enforcement unit within the centering framework of LGUs. Development of an effective ingrained system within cooperatives that will force the proper use of hand gloves, mercury retorts and tailings ponds in small-scale mining. * Active mesh of NGOs and other responsible members of the local population in monitoring and enforcement by selectively deputizing them. * Strengthening of the Small-Scale Mining member of the Environment and Safety Division of the MGB * concert effort by the national government, LGUs and NGOs to conduct education and awareness campaigns on mercury pollution. Involvement of international organizations in the urge against mercury pollution particularly in the advancement of technologies that can prevent or aspe rse it. * Serious consideration of the promotion 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 appropriate 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 rate the early settlement 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 loveable 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, free grace 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 armed service a crew 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 ontogenesis of women and children is not confined to small-scale mining since it is prevalent, especially in the underground economy.The surgical incision 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 coun selling to mining families will also promote compliance by the miners to the laws against exploitation. economical 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 organized into cooperatives.As a group, they can negotiate better in the market or pay for the transportation cost to sell gold in bulk to the Central Bank. The Central bound 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 serious technologies are part and parcel of small-scale mining as long as the miners remain poor.Economic conditions force them to use tell technologies since they cannot afford to employ more in advance(p) and costly ones. Sources * Mercury Pollution Due to Small-Scale Gold Mining in the Philippines An Econ omic Analysis http//dirp4. pids. gov. ph/ris/rps/pidsrp0202. pdf * A Background Study on the Small-scale Gold mining Operations in Benguet and South Cotabato and their Impact on the Economy, the Environment, and the connection http//bantaykita. ph/pdfs/Small%20Scale%20Mining. pdf * Inquirer watchword Online http//newsinfo. inquirer. et/305986/small-scale-miners-sell-less-gold-due-to-bsps-7-tax http//newsinfo. inquirer. net/338689/13-men-in-quezon-clash-met-gold-miner http//newsinfo. inquirer. net/343869/gold-miner-says-he-didnt-betray-siman http//business. inquirer. net/106807/miner-sets-aside-digging-turns-to-planting-cacao http//newsinfo. inquirer. net/359389/sleepless-miner-recounts-seeing-friends-buried-alive-2 http//newsinfo. inquirer. net/362277/police-arrest-19-small-scale-miners http//newsinfo. inquirer. net/362687/execs-say-arrests-halted-mindoro-illegal-