Mining Potential and Economic Contribution

Mineral Resource Potential. The Philippines is one of the highly mineralized countries in the
world with 9 million hectares considered to have high mineral potential. According to the Mines
and Geosciences Bureau (MGB), the country is ranked top five in the world for overall mineral
reserves, second in gold and third in copper resources. The Philippines has untapped mineral
wealth worth at least (PhP47 trillion) in gold, copper, nickel, chromite, manganese, silver and
iron. This is ten times the countrys annual gross domestic product (GDP). The Philippines gold
reserves alone can amount to PhP7.36 trillion, or about 76 percent of the countrys GDP of
PhP9.73 trillion in 2011. This amount, according to the National Statistical Coordination Board
(NSCB), is enough to completely end poverty in the country, which remains the greatest
challenge facing the government.

1. What are the Issues or Problems concerning the resources /ecosystem?

Mining Contribution.
Despite the sectors economic potential, mining contribution to the economy remains low. Based
on the MGB figures, the mining industry has merely accounted for no more than 0.91 percent of
the GDP from 2003 to 2012, on the average. Production has been fraught for the past years by
the effects of natural disasters and low international prices.
Environmental and Social Costs.
Mining is deemed to overexploit and adversely affect environmentally critical areas, leading to
risks and hazards to the publics health, safety and general welfare.
two major disasters related to mining
In June 2012, a fish kill occurred in Lake Bito, a rich fishing ground in Leyte.The tragedy was
traced to mine wastes from Nicua Mining Corporation, which was then operating in another
village in MacArthur, Leyte.
In August 2012, a waste spill happened in the province of Benguet. About 20 million metric
tons of tailings gushed out from the tailings-pond of Philex'sPadcal mines. The huge discharge
drained out to the Balog and Agno River systems, which provide the water requirements of San
Roque Dam for agricultural irrigation and power generation while serving a number of
municipalities in the province of Pangasinan, like San Manuel.

2. What is the government doing to address these issues/problems?

Economic model
The government of the Philippines is promoting mining as assisting in the Governments
program on poverty and contributing to the general economic well being of the nation. Examples
include Marinduque and Benguet, whose experiences have been well documented. Despite
their past international importance as mining areas, they remain among the poorest regions in
the Philippines.90
Indigenous peoples and Free, Prior, Informed, Consent
The Indigenous Peoples Rights Act (IPRA, 1997) and the Mining Code (Republic Act 7942,
1995) guarantee indigenous peoples the right to free, prior, informed consent (FPIC) over
decisions affecting them and developments on their lands.
The Philippines Local Government Code
The Local Government Code of 1991 requires that local governments be consulted with regard
to development initiatives, including mining operations, within their jurisdiction.

The Republic Act No. 7942

Mining Act promotes the national policy of mining in LGUs with mineral deposits subject to
limitations.

3. How are these

development?

resources/ecosystem

being

managed

to

ensure

sustainable

Reducing inputs
Water
Water is used in a number of applications at mine sites. By diverting surface water and pumping
groundwater, mining operations can reduce both the quantity and quality of water available
downstream for aquatic ecosystems and other industrial and municipal water users.
Energy
The extraction of fossil fuels (coal, oil, and gas), and the construction of infrastructure required
for energy generation have their own environmental impacts, including the production of
greenhouse gases and increased risk of environmental contamination along the energy supply
route. Reducing energy consumption at mines can reduce greenhouse gas emissions and

extend the life of fossil fuel reserves in addition to reducing operating costs and therefore the
cost of the commodity being mined.
Reducing outputs
Waste
Mine waste includes solid waste, mine water, and air particles, which can vary significantly in
their composition and potential for environmental contamination. In addition to preventing soil,
water, and air pollution, waste management plans are required in order to select and design
appropriate storage facilities for the large volumes of waste produced at most mine sites.
Restoring environmental function at mine sites
Mine site reclamation and closure activities aim to restore land disturbed by mining activities to
an acceptable state for re-use by people or ecosystems.
4. Give your own ideas on how these resources should be managed?
Address the environmental, economic, health and social impacts and benefits of mining
through their life cycle, including workers' health and safety;
Increase the participation of stakeholders, including local and indigenous communities
and women;
Promote sustainable mining practices through the supply of financial, technical and
capacity-building support to developing countries and countries with economies.

Bibliography:
http://www.miningfacts.org
https://sustainabledevelopment.un.org

March 16, 2015

MINING
IN THE
PHILIPPINES

UNIVERSITY OF SOUTHERN PHILIPPINES FOUNDATION

Salinas Drive Lahug, Cebu City

Submitted by: Poe Anthony M. Ortega

Rogelyn O. Tejero
Felben P. Pinanonang
Submitted to: Ivy P. Tariman