Reversing Resource Curse: Promoting Transparent, Effective, and Accountable Governance (TEAG)
Agenda for Conference and Site Visits in Accra, Ghana
26-30 August 2013
Beverly F. Besmanos
From the compiled presentations of
Melvin Lamanilao (PBPF), Hon. BM Agusto Blanco (SP-ComVal) and Mr. Siegfred Flaviano (PEMO-South Cotabato)
delivered during the ASEAN Sub-National Conference on EITI
22-23 Aug 2013, Davao City, Philippines
A BACKGROUND STUDY ON THE SMALL-SCALE GOLD MINING
OPERATIONS AND THEIR IMPACT ON THE ECONOMY,
THE ENVIRONMENT AND
THE COMMUNITY
A Study Commissioned by Bantay Kita
2011-2012
Small-Scale Gold Mining in the Philippines
o
1988 - Philippines ranked 2nd to Africa in gold production per unit land area.
o
2002 – Philippines ranked 29th as top gold producer.
o
2007 – 18th in the GFMS Gold Survey list of Top 20 Gold Producing Countries
The 2008 – 2009 data
revealed that small-
scale mining sector
contributed almost
80% of the total gold
production.
Data Sources: Israel and Asirot, 2002 Teves, 2008
Philippine Mining Almanac 2010
Findings:

Economic. SSM operations in the area can contribute to the local revenue
generation provided that local policies are in place and enforced.
 Environment. The current practices of SSM operations threaten the environment.
Because of weak enforcement of laws, majority of the SSM operations are illegal and
the weak environmental monitoring by the government tolerate substandard
facilities.

Health and Safety. Dependence on hazardous chemicals in gold extraction and
refining processes exposes miners, plant workers and the community to health
problems.

Women. The SSM operations in the areas provided the women with livelihood from
washing ores/sacks and participating in the initial processing of gold.

Cultural Dimension. In Benguet, SSM operation is historically part of their way of
life. SSM defines their cultural identity. The traditional practices of SSM are
threatened by competition for resource and profit.

Governance and Policies. The government and the community suffer from weak
enforcement of laws.
Data Sources: Israel and Asirot, 2002 Teves, 2008
Philippine Mining Almanac 2010
Small-Scale Gold Mining ISSUES:

There are inconsistencies in the system of regulation and enforcement of laws;

Existing regulatory policies, along with the requirements to seek consent to mine
in areas covered by large –scale patented claims raised negative reactions from
traditional SSM operated by IP communities;

The existing policies on regulation and enforcement threaten the traditional
way of small-scale mining and managing of resources in the IP community;

The regulation efforts of the government are perceived to be anti-SSM operations
and pro-large scale mining operations;

The current regulation efforts encourage IP communities to assert their rights
over land and resources.
Data Sources: Israel and Asirot, 2002 Teves, 2008
Philippine Mining Almanac 2010
Small-Scale Gold Mining CHALLENGES:
 There is a need to re-visit and amend small-scale mining law (i.e. legal definition of
small-scale mining)
 There are existing conflicts among IP groups in SSM areas, especially when the area
has an existing large-scale mining application / operation.
 There is a huge challenge in the enforcement of laws and much more on the capacity
of the local governments to enforce law.
 Local community shall be capacitated on local development planning.
 There shall be an alternative livelihood for SSM communities.
 The shift from agriculture to small-scale mining of communities is a threat for the
community (environment, health, food security and socio-cultural issues).
Data Sources: Israel and Asirot, 2002 Teves, 2008
Philippine Mining Almanac 2010
“MINAHANG BAYANIHAN PROGRAM”
“The South Cotabato SSM Initiatives”
The quest for sustainability:
ENVIRONMENT
SUSTAINABLE
MINING
ECONOMY
SOCIAL
GOOD GOVERNANCE
The Minahang Bayanihan Program aims to promote sustainable SSM by RESPONDING to current SSM
issues and concerns, integrating the concept of CONVERGENCE and GOOD GOVERNANCE
GOVERNANCE
•S hared Governance
•Personnel Investment
•I ntegrating Technology
•Execute Policies
•S ystem Overhaul
RESPONSIVE:
apacitate to Motivate
nvolve to Resolve
ct the ACTS
E.O. 37, Series of 2013 entitled“ AN ORDER INTENSIFYING SMALL-SCALE
MINING PERMITTING AND SAFETY REGULATION
in the province of South Cotabato”
•Notarized Oath of undertaking Small Scale Mine Safety Rules and Regulations
•Area Status Clearance certifying the applied site is not within highly critical disaster prone
area
•Tribal Resolution/Certification interposing no objection
•Section 3. SSM ID System
“No individual shall engage in any form of SSM activities without a Registered SSM I.D. which
is valid for two (2) years.”
CONVERGENCE
(BAYANIHAN)
ederate System
roaden/expand Partnership
nter-agency cooperation
Positive Results and Impacts
-Increased revenue
-Increased budget for SSM development Program
-Increased participation and involvement
-Increased/Facilitated Compliance
-Developed Social and Environmental Awareness
-Capacitated and well informed miners
-Strengthened transparency and accountability
mechanisms in SSM operations in T’boli.
Towards improved Governance of the
Extractive Industry for Sustainable
Future
• Multi-Stakeholders’ Council on T & A organized last November 2012
•
Institute policies, programs and mechanisms ensuring transparency and
accountability in the mining industry both large and small scale mining projects
in the province
•
Formulate, design and approve the Guidebook, tools and instruments for
transparency and accountability in the mining industry;
•
Design and implement reporting template for disclosure of information
•
Conduct periodic review and monitoring of compliance by respective
stakeholders to the policies, programs and mechanisms for transparency and
accountability
•
Prepare annual budget for inclusion in the annual appropriations of the
Province.
Indigenous Peoples’
Response to Transparency Mechanism
in Compostela Valley
BRIEF PROFILE
 11 Municipalities
 2 Congressional Districts
 Home of the six tribes:
 Mansaka
 Mandaya
 Dibabawon
 Mangguangan
 Manobo
 Kagan
Ancestral Domain Map of
Compostela Valley Province
Estimated IP Population: 221, 068
ISSUED AND APPROVED CADTs
Land area (Comval):
428,120 has
Total: 345,701.91has.
60,968.49
141,769.000
90,413.8676
30,468.23 20,087.33
Mandaya Manobo Mangguangan & Dibabawon
Mandaya & Mansaka
Dibabawon
Mansaka
Dibabawon & Mangguangan
Ancestral Domains are now taking
center stage for Investments
Sectoral Distribution of FBI-FPIC Applications
since February 2004-Present (%)
2.19
2.92
5.84
6.57
79.56
1.46
.73
.73
Distribution of FBI-FPIC Applications of Miners
in ComVal Since February 2004-Present
60.2%
38.9%
IP Initiatives on Transparency
Mechanism
• Review the implementation of FPIC process;
• Efforts on Facilitating Compliance to
Memorandum of Agreements; and
• Review programs and projects
implementation by IPOs
Taking the principles of Value Chain
By experience, FPIC process has its effects to
quality of MOA and its state of compliance by
Parties
Decision to
extract/not
to extract
Fiscal
Terms
Awarding
of
Contracts/
licenses
Trading of
Commodities
Extraction
Process
Revenue
Management
and
allocation
Tax and
revenue
collection
Development
Project/
policies
Lessons Learned on IP
Transparency Mechanism
 Improves the financial management system by
making it more transparent;
 Encourages people to become more responsible in
the management of resources;
 Strengthens indigenous institutions by improving
credibility to people running it;
 Assisting role of stakeholders is helpful to empower
ICCs/IPs in exercising self-governance
Environmental Sustainability and Community Rights
 Environmental sustainability in the mining areas can only be achieved if the local
government and all stakeholders are well-informed, capacitated and open to
transparency and accountability measures in the entire value chain.
 An inclusive and participatory governance of the extractive industry involves a
process of communication and behavioral change (individual, organizational /
community level) of the stakeholders in the entire value chain .
 Community rights can only be ensured when there are enabling policies (local and
national – i.e. IPRA Law, Local Environment Code) and continuous community
development trainings that will build the capacity and capability of the individuals
and community to assert their rights towards management of natural resources.
 Sound and well-implemented local policies are key to success.
Data Sources: Israel and Asirot, 2002 Teves, 2008
Philippine Mining Almanac 2010
Tey bong s’lamat!