Fact Basis

7/29/2019 Fact Basis

1/23

SPECIAL REPORT: The Tampakan project:battle over Southeast Asias largest copper-gold reserve (1)

ByBong S. Sarmientoon November 11 20128:21 p

1st of two parts

TAMPAKAN, South Cotabato (MindaNews/11Nov) How huge is the proposed open pitmine that will gouge out a mountain here toextract 17.9 million ounces of gold depositsand 15 million metric tons of copper?

Imagine at least 17,000 basketball courts laidout beside each other being swallowed withease by that pit and you will have a generalidea of its size. As for its depth of 800 meters,

imagine a hole as deep as a 160-storeybuilding in a country whose tallest building is allof 73 floors.

Mt. Matutum, a dormant volcano and SouthCotabatos landmark peak, beckons from themines development site of Sagittarius Mines,Inc. Mindanews Photo by Bong Sarmiento

As the largest known undeveloped copper andgold minefield in Southeast Asia, the project of

foreign-backed Sagittarius Mines, Inc. (SMI)promises tantalizing economic returns withglobal prices of the precious metals at an all-time high. But it also paints a terrifying pictureof the areas environmental future and itsimplications for the people of the mountainsand those who live in the lowlands.

The stakes are extremely high, so high thatboth those who oppose mining and those whoare for it have already drawn the line on the

sandwith blood. The fact that the mineraldeposits lie buried underneath ancestral landsof the Blaan tribe further complicates thealready volatile situation.

A number of male tribal members have begunarming themselves with improvised shotgunsand high-powered rifles like M16s and M1Garands. They are ready and willing to usethese, they say, should mining operationscommence.

The Blaans are essentially a peace-lovingpeople although they have the hearts ofwarriors whose instincts have, to a greatextent, been honed by hunting in the forest, aterritory they know like the palm of their hands.While there have been conflicts within the tribe,in some instances ending in killings, they try tofix them using kasfalatheir tribal justice

systemto prevent the escalation of violence.

But when pushed against the wall, they fightback. And some of them are doing that nowagainst SMI.

Xstrata Copper, the worlds fourth largestcopper producer, controls SMI, with Australianfirm Indophil Resources NL as the juniorpartner. Xstrata Copper is a subsidiary ofSwitzerland-based Xstrata Plc., a global

diversified mining company.After assuming in 2001 rights over theFinancial or Technical Assistance Agreement(FTAA) of the Western Mining Corp., the

Australian mining company that originallydiscovered the deposits in the early 1990s,SMI launched in 2003 the Tampakan project,which also straddles the towns of Kiblawan inDavao del Sur and Columbio in SultanKudarat.

The core of the copper and gold deposits liesin Tampakan, a second class municipalitywithout a single bank and lacking in the usualmodern economic infrastructures. Lately,however, its streets are littered with the latestmodel of four-wheel drive pick-up truckspurchased by several residents, in the hope ofrenting these out to SMI.

The Tampakan project has not gone intoproduction because its application for an

environmental compliance certificate (ECC)was rejected early this year by the Departmentof Environment and Natural Resources(DENR), on the grounds that it violates theopen-pit ban imposed by the South Cotabatogovernment.

From the time SMI started its Tampakanproject, it has been hounded with protestsmounted by environment, human rights andchurch groups opposing it.
http://www.mindanews.com/environment/2012/11/11/special-report-the-tampakan-project-battle-over-southeast-asias-largest-copper-gold-reserve-1/http://www.mindanews.com/environment/2012/11/11/special-report-the-tampakan-project-battle-over-southeast-asias-largest-copper-gold-reserve-1/http://www.mindanews.com/environment/2012/11/11/special-report-the-tampakan-project-battle-over-southeast-asias-largest-copper-gold-reserve-1/http://www.mindanews.com/environment/2012/11/11/special-report-the-tampakan-project-battle-over-southeast-asias-largest-copper-gold-reserve-1/http://www.mindanews.com/environment/2012/11/11/special-report-the-tampakan-project-battle-over-southeast-asias-largest-copper-gold-reserve-1/http://www.mindanews.com/author/bong-s-sarmiento/http://www.mindanews.com/author/bong-s-sarmiento/http://www.mindanews.com/author/bong-s-sarmiento/http://www.mindanews.com/author/bong-s-sarmiento/http://www.mindanews.com/environment/2012/11/11/special-report-the-tampakan-project-battle-over-southeast-asias-largest-copper-gold-reserve-1/http://www.mindanews.com/environment/2012/11/11/special-report-the-tampakan-project-battle-over-southeast-asias-largest-copper-gold-reserve-1/http://www.mindanews.com/environment/2012/11/11/special-report-the-tampakan-project-battle-over-southeast-asias-largest-copper-gold-reserve-1/


2/23

The opposition fears that once it goes oncommercial stream 2018 is the revisedtarget from the original 2016 theenvironment may suffer irreversibly.

Environmental impacts

SMI plans to excavate the massive deposits by

digging a hole, or open-pit in the language ofthe mining industry, in an area measuring 2.5kilometers wide and 3 km long down to a depthof 800 meters, or an area equivalent to the sizeof 17,000 basketball courts and as deep as a160-storey building .

The Philippines tallest building as of 2012 isthe 73-floor Gramercy Residences at CenturyCity in Makati City while Mindanaos tallest fornow is the 20-floor Marco Polo Hotel in Davao

City.

The depth of the Tampakan pit will be eighttimes the height of Davaos Marco Polo.

The Tampakan prect site, which includes theopen-pit area and other support infrastructurelike the waste rock storage facility, tailingspond, and fresh water dam, among others, willsit on some 10,000 hectares (ha) of landaltogether.

According to the companys EnvironmentalImpact Assessment (EIA), out of the totalproject site, 40 percent or 3,750 hectares arerainforest vegetation.

While there is no declared watershed in theTampakan project site (mining is banned inwatersheds), the remaining rainforests arebelieved to be the source of water for riversthat feed agricultural farms and ponds

downstream.

In fact, the reason why then South CotabatoGovernor Daisy P. Avance-Fuentes signed intolaw on June, 29, 2010 the Environment Codethat banned open-pit mining in the provincewas because of the possible drying up ofagricultural areas in the lowlands if theresource-rich area is mined.

Fuentes, the representative of SouthCotabatos 2nd district in Congress from 1992to 2001, signed the law a day before steppingdown as governor. She is now back in herformer post as Representative.

In her explanatory note during theannouncement of her approval of the

Environment Code in 2010, Fuentes cited astudy by a British group titled Philippines:Mining or Food? which warns about the dryingup of lowland rivers if the Tampakan projectwould proceed.

This is a landmark legislation. It marks theprovinces maturing autonomy by owning up tothe responsibility as environment steward, shesaid.

Fuentes acknowledged pressures for her toveto the open-pit ban, the strong lobbying evenshifting to Malacanang, the seat of the nationalgovernment.

She explained to reporters that vetoing the banon open pit mining would not only render thewhole Environment Code inoperative but willexpose communities and resources to dangerwhich will, with certainty, affect their health,security and economic sustainability.

The open-pit ban is one of the provisions,albeit the most controversial, of the provincialEnvironment Code.

After mining is completed, the open-pit cantbe restored to its original state, SMI said in itsopen-pit mining public briefer.

Sixty per cent of the project site has beendisturbed by logging, agriculture and kaingin

(slash and burn farming). The rest, however,supports a high diversity of flora and fauna,including over 1,000 flora species and around280 fauna species, the companys EIAOverview Document showed.

Of this, at least 50 flora species and 33 faunaspecies are either on the list of threatenedspecies in the Philippines and internationalbodies.


3/23

Generally speaking, Sagittarius Mines, in itsEIA Overview Document, plans to clearapproximately 1,300 hectares of remnantrainforest (35% of the 3,750 hectares ofrainforest on the site) that supports a highdiversity of flora and fauna species, includingthreatened species. This area is equivalent toat least 30 times the size of SM Mall of Asia in

Metro Manila.

The final mine area is approximately 10,000hectares and it potentially includes 355hectares of old growth forest, SMI said inresponse to an e-mail query. The DENR hasyet to validate this old growth forest area. Butunder the law, forest of this kind shall not bedisturbed.

Remnant rainforest and old growth forests are

two different things. The former refers to thoseleftover trees that were untouched by loggingactivities decades ago that are now fully grown.Old growth forest, in lay language, meansvirgin forest.

Earthquake fault lines

The Tampakan project has also beendescribed by some experts as potentially oneof the most dangerous mines in the world

because of its geologic location, which is about12 kilometers from Mt. Matutum, a dormantvolcano. Matutum is South Cotabatoslandmark peak at 2,286 meters and its tiptowers over the Tampakan minefield. It wasdeclared a protected landscape in March 1995through Presidential Proclamation 552 issuedby then President Fidel V. Ramos.

Aside from the open-pit, which the environmentexperts warn will indelibly scar the mountains

of Tampakan, other support facilities will beconstructed in the area like the waste rockstorage facility (WRSF), concentrator(processing facility), tailings storage facility(TSF), and fresh water dam (FWD).

MINING FORUM. Thousands attend the forumon the Tampakan copper-gold project ofSagittarius Mines, Inc. in Koronadal City onSeptember 23, 2011, sponsored by theprovincial government of South Cotabato. The

Tampakan project has become a hot issue inthe countrys mining industry. MindaNewsphoto by Bong S. Sarmiento

The proposed open pit site will straddle thevillages of Danlag, Pula Bato and Tablu in thetown of Tampakan, province of SouthCotabato. To the northeast and adjacent to the

open pit site will be the proposed sites of theWRSF, with the concentrator (processingfacility), TSF and FWD 13 kilometers east ofthe open pit in the town of Kiblawan in theprovince of Davao del Sur.

These facilities pose an imminent danger tothe environment and lives of the people [indownstream areas] in case of an accident(dam and other containment failure that resultinto floods carrying poisonous substances to

downstream areas) because the project arealies in an unstable geography, EmmanuelDiaz, a geologist working at the ASEAN Centrefor Biodiversity, said.

The mines development site lies at anestimated 1,300 meters above sea level andatop the two big riversTaplan River and MalRiverthat feed lowland agricultural farms inSouth Cotabato and Davao del Sur,respectively. The proposed open pit will be

located in the Taplan River catchment whilethe remainder of the proposed siteinfrastructures will be situated in the Mal Rivercatchment.

Diaz particularly expressed concern on themining projects impact on biodiversityallliving forms to include plants and trees andanimals (and even humans). He stressed therecould be plants and trees and animal speciesendemic only in the Tampakan mining project

area that will not only be disturbed but maybecome extinct as the mining phases(exploration, exploitation, and production)progress.

In a 10-page paper, Dr. Robert Goodland andClive Montgomery Wicks described theTampakan project as a risk forever.

The chances of the 2.1 km long and 280meters high tailings dam and the 0.8 km long


4/23

and the 150 meters high fresh water damsurviving for any length of time is doubtfulThe chances of water passing through the toxicwaste rock storage and other toxic sites andthen into the environment is very high,particularly if damaged by the faultunderneath, they said after reviewing theTampakan projects environmental impact

statement.

In 2009, Goodland and Wicks wrote the bookentitled Philippines Mining or Food?

But John Arnaldo, SMI spokesperson, allayedfears about the disastrous characteristics of theTampakan project that many believe couldexact a terrible toll on the environment and onhuman lives.

We are confident that our facilities wouldwithstand the most extreme events. Just ashigh-rise buildings exist in earthquake proneareas around the world and resist strongearthquakes, today it is absolutely feasible tobuild tailings dams to withstand such events,he said.

Arnaldo said that in the unlikely event of anyenvironmental damage resulting from themining operations, SMI will compensate those

affected and rectify any damage. He did notdiscuss the compensation package though.

He also noted that the company has obtained acertification from the Philippine Institute ofVolcanology and Seismology that states thatthe nearest active earthquake fault is some 10kilometers from the project area, indicating thatthe proposed final mine area is not within ahigh risk zone.

SMI has mitigated the risk of seismic activity inthe project area as part of our planning for theproject, including designing projectcomponents to withstand major earthquakes,

Arnaldo said.

But Page 42 of the companys Environmentaland Social Impact Assessment states: Basedon Table 5.1, the TSF (tailings storage facility)has been given an extreme consequenceclassification, during operation and closure,

due to the high potential for loss of life and highenvironmental damage if failure occurs. Thisclassification also applies to waste rock co-disposed with tailings in the TSF.

It quickly explained, however, that the selectionof extreme classification means that thestructure is designed to the highest level of

protection consistent with international damengineering practice.

Arnaldo said dams and buildings areconstructed safely world-wide in a variety ofenvironments and the analysis undertaken byour geologists and engineers is consistent withleading practice, that is to assess the risk anddesign the structures accordingly.

With rigorous design standards and the

proposed construction supervision andmonitoring we are confident that our dams andwaste rock facilities can be constructed tominimize the risk of failure and impact to thecommunity/environment, he said.

Indophil, the junior foreign partner at SMI,placed the initial life of the mine at 17 years.

Two decades in the pipeline

The Tampakan project has been in the pipelinefor 20 years, with the discovery of the mineraldeposits in 1992. Just recently, SMIannounced the moving of the target year forcommercial operation from 2016 to 2018.Construction of the mining support facilitieswould have started this year had it not been forthe open-pit ban which the DENR invoked todeny the firms ECC.

The mines development site straddles five

tribal councils in five barangays under threetowns (Tampakan in South Cotabato, Kiblawanin Davao del Sur and Columbio in SultanKudarat), all of which have expressed supportto SMI under principal agreements that providefinancial assistance to them even if the firmhas yet to extract the deposits.

The Financial or Technical AssistanceAgreement (FTAA) for the Tampakan projectwas granted to Western Mining Corp. (WMC)


5/23

in 1995 and was transferred to SagittariusMines in 2001, then controlled by Australianfirm Indophil Resources NL.

Xstrata Copper exercised its option to acquire62.5 percent of the 40 percent controllingequity held by Indophil in 2007, making theSwiss miner the majority holder of the

controlling equity at the Tampakan project. The60 percent non-controlling equity continues tobe held by the locals collectively known as theTampakan Group of Companies.

From the time the FTAA was granted to WMCup until the entry of Xstrata Copper inSagittarius Minesor a total period of 17 yearsas of this writing an annual financialassistance has been extended to the host tribalcouncils, barangays and towns, as contained in

separate principal agreements.

When Xstrata Copper assumed managementcontrol at SMI, company expenditures alreadyreached a staggering P18 billion (U$416million) from 2007 to end of 2011 alone for theTampakan project. Indophil had spent Au$27million for the exploration activities prior to theentry of Xstrata Copper.

Of the P18 billion, P367 million (U$8.2 million)

went to various corporate social involvementprograms including community fund assistanceto the host barangays and tribal communities,said Arnaldo, the companys spokesperson.

Curiously though, the tribal communitiesremain mired in poverty. (Conclusiontomorrow: Tampakan minefield: Dark side,bright prospect)

(This special report by Bon g S. Sarmiento

was produ ced und er the Environm entalInvest igat ive Report ing Fel lowsh ip p roject

of the International Womens Media

Foundat ion

Last of two parts

TAMPAKAN, South Cotabato (MindaNews/12Nov) Potentially the largest foreign directinvestment in the Philippines, the $5.9 billionTampakan mining project faces two major

challenges: the ban on open pit miningimposed by the South Cotabato provincialgovernment and the increasing activism ofenvironment groups and local Catholic clergywhich had made clear their anti-mining stance.

Underneath the surface, however, hostilitytoward the project is simmering among

tribespeople who fear that the minesdevelopment will lead to their displacementand the destruction of their way of life. Somehave taken up arms to protect what they insistis their ancestral domain.

Sadly, several lives have been lost, amongthem Gurilmin Malid and Pensing Dialang, whowere both killed in 2002 allegedly because oftheir anti-mining stance. This localized yetdeadly war has also recently led to the killing of

Juvy Capion and her two sons on October 18,following a clash allegedly between Philippinesoldiers and tribesmen led by her husband,Daguel Capion. Capion has been leading theopposition to the mining project and had openlydeclared war on Sagittarius Mines, Inc. (SMI)for allegedly disrespecting the rights of thetribe. Capion also expressed concerns aboutthe negative impact of the mining project onthe environment.

Reportedly injured, Capion managed to escapeand has remained in hiding but his wife, Juvy,and her sons Jordan, 13, and John Mark, 8were killed. The couples four-year olddaughter Angeline, fondly called Vicky, wasunhurt. The girls future remains uncertaingiven the rising tensions within the tribalcommunity of Bong Mal, where the killinghappened.

Bong Mal is the traditional Blaan territory

straddling Barangay Danlag, Tampakan inSouth Cotabato and Barangay Kimlawis,Kiblawan in Davao del Sur. At the heart of themines development site, it serves as a crucialartery for the mining company to move aroundthe mountains.

In Bong Mal, the Capions lay claims to vasttracts of land, part of which is a farming areawhere the mother and her two sons were killedby bullets supposedly coming from the


6/23

soldiers. Pieces of brains and blood splatteredthe walls and the floor of the hut where theydied. Aside from the four-year old daughter,another young relative survived the incident.

Forced to fight

From late 2009 until March 2011, Capion

expressed his opposition to the Tampakanproject through peaceful means, either by

joining anti-mining activities in the lowlands orspeaking before his fellow tribesmen about theimpact of the mining project on theircommunity.

Daguel Capion, leader of the armed Blaantribesmen resisting the Tampakan projectduring an interview with MindaNews onOctober 1. MindaNews photo by Bong S.

Sarmiento

Capion was highly regarded even by SMI.Before he spoke his mind against thecompany, he was an SMI employee, serving ascommunity relations officer. He was influentialamong the tribal members even as SMI did notrecognize him as the tribal chieftain of BongMal.

For SMI, Bong Mals chieftain is Neraldo Dot

Capion, his relative who supports the miningfirm. His ascent to the post came not bybloodline, which is the customary tradition ofthe Blaans, but through a vote resembling thatof a barangay election.

If SMI or its supporters have been telling theoutside world that everything is smooth in themines development site, thats not true,Daguel Capion said on October 1 in the samehut where his wife and two young children

were felled by bullets 17 days later.

With an armalite and garand rifles beside him,he told MindaNews that their armed strugglewill continue unless the company abandons itsmining project.

We would be displaced to places where livingwould have to be dictated by money, saidCapion, his armed followers lingering nearby.

Should mining operations proceed, some 4,000people will be displaced from the minesdevelopment site, most of them Blaan tribalmembers, and transferred to relocation siteswhich many are rejecting since staying therewould mean exposure to and living in a worldalien to their way of life, Lawin Macundon, aBlaan tribal elder, said through an interpreter.

Capion pointed out: Here we can go huntingfor wild deer and pigs, and frogs as well, forour food.

Capion earlier said he left SMI after realizingthat the stake of the tribal people and theenvironment is far greater than what the miningfirm is offering them, such as jobs. The localCatholic Church, while supporting his activism,would later disapprove of his resorting to

violence. Before he took up arms, Capion wasa regular presence in anti-mining activitiesspearheaded by religious groups.

To the local military, he was simply anextortionist who took up guns after he failed toget what he wanted from the company.

Capion began opposing the Tampakan projectabout three years ago because, according tohim, the mining company had become

aggressive and was allegedly no longerseeking the tribal peoples consent in openingup access roads for drilling activities, resultingin the desecration of their ancestors burialgrounds.

He said he felt that their rights were beingtrampled upon by the mining company, whichlater would deny the allegation and wouldpromise to look into the complaint.

In 2011, Capion took up arms and led a bandthat ambushed and killed three workers of aconstruction company hired by SMI for a roadproject. He admitted the ambush and this is thereason why he is being hunted by the military.

This transition from peaceful protest to violentactivism would change the landscape of BongMal from a quiet farming community to a placeof death and violence. Last June, a securityconsultant of SMI and a police escort were


7/23

killed in the mining tenement. The incidenthappened just three days after a security guardwas shot to death last June 17 also in thesame village.

In a press conference on November 5 inGeneral Santos City, the military also accusedCapion of perpetrating the New Years Day

2008 burning of the base camp of SMI inBarangay Tablu in Tampakan town; disarmingof nine SMI security guards also in Tablu onDecember 15, 2011; and the killing of thesecurity guard last June 17. The New Peoples

Army (NPA), however, admitted responsibilityfor the 2008 raid and burning of the basecamp.

Capion and his band of armed Blaantribesmen did not leave Bong Mal even as they

were the subject of a military manhunt.According to Capion, staying around Bong Malwould prove that he and his followers have not

joined or have linked up with the NPA.

As a guerilla tactic, Capion, who was joined byhis brothers Batas and Kitari, spreadthemselves in the area in small groups.

Although their number could not beascertained, it is said that a sack of rice wouldnot suffice for a week. The military, during the

November 5 press conference, stressed thatCapion, the leader of an armed bandit, hasmore or less five followers.

Within the mines development site, thePhilippine Army has set up severaldetachments to maintain peace and order andas buffer to the NPA rebels.

Tribal division

The mining project has divided the Blaan tribe.

Those who support the mining venture pointsto the economic and social contribution theproject will bring or has brought.

Our children are going to school because ofthe mining company, Dalina Samling, tribalchieftain of Danlag, said, referring to thethousands of scholars SMI has sponsored inthe elementary, secondary and college levels.

For supporting SMI, the tribal councils eachreceive an annual financial assistance of P2.7million from the company as stated in theirrespective principal agreements.

Constancio Paye Jr., Mines and GeosciencesBureau director for Region 12, said theprincipal agreements allowed SMI to conduct

exploration activities even without the FreePrior and Informed Consent (FPIC) of theBlaan tribe because when the Financial orTechnical Assistance Agreement (FTAA) wasgranted, there was no Indigenous PeoplesRights Act yet. Enacted in 1997, the IPRA Lawmandates the companies to secure the FPIC ofindigenous peoples for mining projects withinancestral domains.

The mines development site straddles two

Certificate of Ancestral Domain Titles (CADTs)and a Certificate of Ancestral Domain Claim(CADC) in the towns of Tampakan in SouthCotabato, Columbio in Sultan Kudarat andKiblawan in Davao del Sur.

Woy Lim P. Wong, National Commission onIndigenous Peoples (NCIP) director for Region12, recognizes the problems besetting themines development site of SMI involving tribalcommunities.

While he said his office has been involved incommunity consultations within the SMItenement, he appeared hands off in the tribaldivision confronting Bong Mal, especially onthe war waged by Capion against the miningcompany.

In due time, we will establish an indigenouspolitical structure in the area, Wong said,believing this could help solve the tribal divide.

But getting the support of the tribe memberswho are against the mining firm is anotherstory since they have developed distrust of theNCIP, for seemingly siding with SMI. While it istrue the NCIP has been involved inconsultations, Capion insisted they were doneonly through the tribal council and did notinvolve the general tribal communitystakeholders.


8/23

In fact, the NCIP is partly to blame for theviolence at the mines development site for itsfailure to conduct a genuine consultation withthe affected tribal community stakeholders, hesaid in a subsequent telephone interview.

For now, the company may be relieved of itssecurity nightmare after Capion, in this phone

interview last October 25, gave an assurancethat he would not retaliate or avenge the deathof his wife and the children. He, however,asked that justice be given the fatalities byprosecuting the soldiers involved in theoperation through court proceedings. He alsoassured that his brothers Kitari and Bataswont do anything violent as they followCapions wisdom. Capion, however, said hecould not assure what the other groups maydo hereafter.

Still the same poor tribal communities

Did the annual financial assistance ensured bythe principal agreements improve the lives ofcommunities or the tribal communities in BongMal?

A tour of the area would show one tangibleresult: a public elementary school. Elsewhere,residents say there were no visible

developments from SMIs annual financialassistance like common function halls, healthcenters and sports facilities that were builtusing concrete or solid materials.

The Datal Biao Elementary School in BarangayDanlag in Tampakan, South Cotabato, the lonepublic school in the mines development site ofSagittarius Mines, Inc. MindaNews photo byBong S. Sarmiento

To be sure, roads have been improved to allowresidents to transport their agricultural crops tothe lowlands, but this has been maintained bythe company because they need to movearound the mountains especially at the heightof its exploration activities. Also, there arecellular phone communication signals in themines development site due to SMI.

On top of the yearly financial assistance to thetribal councils, SMI also extends cash aid to

the host barangays and municipalgovernments.

In a chance interview in September 2012 inBong Mal, Alfonso Malayon, a member of theBarangay Danlag village council, saidcommunities in Bong Mal have remained poordespite the companys cash assistance.

Not much has improved here in thecommunities since the entry of the miningcompany, he said.

SMI has spent P367 million for variouscorporate social involvement programsincluding community fund assistance to thehost barangays and tribal communities in thepast four years alone. The company did notprovide the total or estimated amount of

financial assistance years before 2007, whenAustralian firm Indophil Resources NL was atthe helm.

Indophil poured Au$27 million when the projectwas resurrected in 2003 for explorationactivities, until Xstrata Copper took over in2007, and part of that amount went to theannual financial assistance to the tribalcouncils and host villages and municipalities.

Each of the five tribal councils receives P2.7million annual financial assistance from SMIsince Xstrata Copper entered the picture in2007. Before this, each was getting reportedlyP1.5 million annual cash aid. Counting the last10 years, the amount extended to the five tribalcouncils have reached P105 million.

Days before Capions wife Juvy and herchildren died, she told MindaNews many ofthem have not benefited from the companys

financial aid to the tribal council although theyhave tried to ask for help.

We requested for livelihood assistance but itnever came, maybe because we are againstthe mining venture. But those who supportmining, they have been given, she said.

SMI explained that the financial assistance tothe tribal councils is administered by a tribalfoundation, which approves requests for


9/23

livelihood projects. Each tribal council isrepresented in the foundations board.

In downtown Tampakan, the economy doesnot seem to have perked up as there are nobanks and modern buildings as yet. The onlysemblance of improvement in a town that hostswhat is supposed to be massive mineral

wealth, are the new municipal hall and aportion of the public market.

Vice Mayor Relly Leysa denies reports thetown hall was constructed with SMI funding. Hesaid it was constructed from local governmentfunds and a loan.

But Leysa acknowledged that SMIs annualcash assistance helped build portions of thetowns gymnasium and the new public market

building, and for the scholarship of elementaryand high school students.

Better future

Based on its projected economic data once thefirm goes on commercial stream, theTampakan project will shape a better future forthe people of southern and southwesternMindanao.

If developed, the Tampakan project wouldgenerate significant economic benefits thatwould stimulate the local, regional and nationaleconomies, SMI stated in its communitybenefits fact sheet.

Here are SMIs figures:

An annual contribution of on averagePhP134 billion ($2.8 billion) to Philippinegross domestic product (GDP) each

year over the construction and operationphases equivalent to an additionalannual increase of 1% to PhilippineGDP;

Total government revenues (nationaland local) through a variety of taxes andcharges of approximately PhP307 billion($6.4 billion) over the life of the project;

Royalty payments and directcontributions in excess of PhP39.8

billion ($830 million) to localcommunities and local indigenousgroups over the projects life; and

Opportunities for approximately 10,000workers during the peak of theconstruction phase and directemployment opportunities forapproximately 2,000 workers duringthe operations phase.

The company initially targets to begincommercial production in 2016, but because ofsetbacks, moved it to 2018. The initial life ofthe mine was placed at 17 years.

Clash of national vs. local laws

The Philippines Mining Act of 1995 or RepublicAct 9742 does not prohibit open-pit miningmethod, but the DENR cited the prohibition onopen-pit mining imposed by South Cotabato asthe reason for rejecting the SMIs ECCapplication.

The issuance of the new mining policy byPresident Aquino in June 2012 did not explicitlylift the open-pit ban of South Cotabato,although Executive Order (EO) 79 states theneed in Section 12 for the Consistency ofLocal Ordinances with the Constitution andNational Laws/ LGU Cooperation.

LGUs shall confine themselves only to theimposition of reasonable limitations on miningactivities conducted within their respectiveterritorial jurisdictions that are consistent withnational laws and regulations, it said.

The South Cotabato provincial government,headed by Gov. Arthur Pingoy, Jr., has defiedEO 79, stressing that LGUs have the right to

protect their environmental territory under theLocal Government Code of 1991.

We will impose the environment code thatbans open pit mining unless revoked by acourt. We are not banning mining but only themethod, was Pingoys curt reply.


10/23

Curiously, no case has been filed in any court,not even by SMI, to challenge the open-pit banof South Cotabato two years since its adoption.

What the company did was to elevate itsappeal for the rejection of its ECC to the Officeof the President. President Aquino, however,gave a hint that he would wait for Congress to

craft a new law on mining revenue beforeacting on the appeal of SMI.

Tough balancing act

The Tampakan project has become socomplicated it requires a tough balancing act toweigh its potential economic windfall on theone hand and, on the other, its adverse impacton the environment and the peoples lives.

Security and human rights issues have to beaddressed as well given the killings and otheracts of violence that hound the mine project,and how the entry of a project that touted tobring development to the area has insteadtriggered schisms among the indigenouspeoples.

Is there a way out of the impasse?

South Cotabato Vice Governor Elmo Tolosa

says there is and that is for SMI to proceedwith little or no opposition by using tunneling,instead of the open pit mining method. Thecompany, however, maintains the only viableoption is open-pit mining.

Lobbying by both pro- and anti-mining groupshas become louder more than ever and isexpected to intensify in the run-up to the May2013 election of a new set of provincialofficials.

While SMI remains hopeful it could get thenecessary clearances or support candidateswho would lift the ban so the Tampakan projectcould proceed, the opposition is as avid to stopthe proposed open-pit mining project onconcerns over the environment and humansafety.

The longer it takes for this logjam to beuntangled, the more lives may be laid on theline.

(This article of Bong S. Sarmiento/MindaNewswas produced under the EnvironmentalInvestigative Reporting Fellowship project ofthe International Womens Media Foundation


11/23

Decision denying ECC to Tampakancopper-gold project stays

ByEd Lingao / PCIJon June 5 2012 7:01 am

GENERAL SANTOS CITY (MindaNews/04June) Mining firm Sagittarius Mines Inc.suffered another setback when the

Environment Management Bureau (EMB)denied its appeal to have an earlier decisionoverturned, derailing further its targetcommercial production date.

In a decision handed down on May 22, 2012but only released last week, the EMBs legaldepartment stood pat on its decision to denythe firm the required environmental clearancecertificate (ECC) citing the ProvincialEnvironment Code of South Cotabato which

bans the open pit mining method.

Environment Secretary Ramon Jesus Paje saidthe ordinance must first be repealed oramended before his office could issue an ECC.

The ordinance raises legal issues as thecountrys existing mining law is silent on openpit mining method.

Republic Act No. 7160 or the 1991 Local

Government Code of the Philippines howeverempowers local government units to imposestatutory limitations to protect the environmentcovered by its territory.

In 2010, then South Cotabato governor DaisyAvance-Fuentes signed the ordinance banningopen pit mining in the province.

Incumbent provincial governor Arthur Pingoysaid the provincial board is not inclined to

repeal or amend the ordinance. Until it isrecalled, the governor said he will implementall its provisions, including denying permits tomining companies that will employ open pitmining method.

Last week, SMI invited journalists andstakeholders to a presentation of itssustainability report for 2011.

In a video and PowerPoint presentation, SMIstill expressed hope that the EMB will reverseits earlier decision.

The denial decision was not made on themerits of our mine EIS, which fully complieswith the requirements of the EMBs own ECCprocess and is backed by a world-class EIA,

SMI president Peter Forrestal said in his 80-page report.

Mines and Geosciences Bureau director Leo L.Jasareno said the companys most availableremedy underthe law now would be to file anappeal to the Office of the President.

SMI has so far avoided bringing the issue tothe Supreme Court.

Last week, however, SMI general manager forexternal affairs Mark Williams said thecompany is considering bringing the matter tocourt.

The Xstrata Plc-controlled SMI owns theTampakan project reputed to hold Asiasbiggest untapped deposits of copper and gold.It plans to pour in US$5.9 billion to extract oredeposits that is said to have a mining life of atleast 20 years.

It will reportedly generate revenues of up to$37 billion during its entire 20-year mine life.

According to its original target, SMI plans to goon commercial production in 2016.

Strong opposition from the local CatholicChurch and environment groups, coupled withits recent legal setbacks, has put SMIoperations in jeopardy. (Edwin G.

Espejo/MindaNews)
http://www.mindanews.com/top-stories/2012/06/05/decision-denying-ecc-to-tampakan-copper-gold-project-stays/http://www.mindanews.com/top-stories/2012/06/05/decision-denying-ecc-to-tampakan-copper-gold-project-stays/http://www.mindanews.com/top-stories/2012/06/05/decision-denying-ecc-to-tampakan-copper-gold-project-stays/http://www.mindanews.com/author/edlingao/http://www.mindanews.com/author/edlingao/http://www.mindanews.com/author/edlingao/http://www.mindanews.com/author/edlingao/http://www.mindanews.com/top-stories/2012/06/05/decision-denying-ecc-to-tampakan-copper-gold-project-stays/http://www.mindanews.com/top-stories/2012/06/05/decision-denying-ecc-to-tampakan-copper-gold-project-stays/


12/23

Tampakan copper-gold project gets ECC;SouthCot stands pat on open pit miningban

ByBong S. Sarmientoon February 19 20138:46 pm

KORONADAL CITY (MindaNews/19

February)Castigating Environment SecretaryRamon Paje for flip-flopping on the agencysdecision to now give foreign-backed SagittariusMines, Inc. an environmental compliancecertificate (ECC), South Cotabato Gov. ArthurY. Pingoy Jr. said Tuesday the provincialgovernment will not overturn its controversialban on open pit mining.

Previously, the DENR (Department ofEnvironment and Natural Resources) did not

approve the ECC of SMI because of our banon open-pit. Now, the agency has a differentstand, Pingoy told MindaNews.

Nonetheless, the governor said the provincialgovernment would not back down because ofthe ECC approval of DENR for SMI, which iscontrolled by Xstrata Copper, the worlds fourthlargest copper producer.

The open-pit ban is contained in the

environment code of the province that wasapproved in June 2010.

Our environment code is legal, and I ambound to implement that unless nullified by aproper court, Pingoy stressed.

Two or three weeks ago, the SangguniangPanlalawigan also reiterated that theprohibition on open pit mining will remain, afterJustice Secretary Leila de Lima threatened to

file cases against local government units(LGUs) with ordinances that supposedlycounter Republic Act 7942 or the PhilippineMining Act of 1995, Pingoy stressed.

Manolo Labor, SMI external communicationsand media relations superintendent, said theywere informed around lunchtime Tuesday thatPaje has approved the proposed ECC fromDENR.

Our office in Manila received a signed copyfrom the Environmental Management Bureau,which issues the ECC, Labor, who admittedhe still has to read the document, said in aseparate phone interview.

Labor repeatedly referred to the document asa proposed ECC, claiming that the company

has to agree with the government theconditions set therein.

Fr. Rey Ondap, head of the Justice and Peacefor Integrity of Creation of the Passionistcongregation, also slammed the decision of theDENR to issue an ECC to SMI.

The ECC issuance is the death certificate tothe IPs (indigenous peoples) and the people ofRegion 11 and 12. This is the bossy action of

PNoy (President benigno Aquino III) betrayingthe future generation of this place, the priestsaid in a text message.

Lawyer Carlos Zarate, second nominee ofBayan Muna partylist, also condemned theissuance of ECC by the DENR to SMI, noting itshows the utter disregard of the Aquinoadministration to the sentiments and welfare ofthe people in South Cotabato and otheraffected areas.

That the DENR denied it twice in the past dueto the open-pit mining ordinance of SouthCotabato is proof that this latest move in totalturnaround is a brazen surrender of the Aquinoadministration to the interest of the foreign,large-scale and destructive mining interests.Matuwid na daan is nothing but to satisfy thegreed for profit of this administration and itscapitalist sponsors, he said.

Zarate, a native of South Cotabato province,noted the ECC is an insult to the letter andspirit of genuine local autonomy and an insultto the people and local officials of SouthCotabato.

It is also an insult to the memory of theLumads who died defending their ancestraldomain, he said.
http://www.mindanews.com/environment/2013/02/19/tampakan-copper-gold-project-gets-ecc-southcot-stands-pat-on-open-pit-mining-ban/http://www.mindanews.com/environment/2013/02/19/tampakan-copper-gold-project-gets-ecc-southcot-stands-pat-on-open-pit-mining-ban/http://www.mindanews.com/environment/2013/02/19/tampakan-copper-gold-project-gets-ecc-southcot-stands-pat-on-open-pit-mining-ban/http://www.mindanews.com/environment/2013/02/19/tampakan-copper-gold-project-gets-ecc-southcot-stands-pat-on-open-pit-mining-ban/http://www.mindanews.com/author/bong-s-sarmiento/http://www.mindanews.com/author/bong-s-sarmiento/http://www.mindanews.com/author/bong-s-sarmiento/http://www.mindanews.com/author/bong-s-sarmiento/http://www.mindanews.com/environment/2013/02/19/tampakan-copper-gold-project-gets-ecc-southcot-stands-pat-on-open-pit-mining-ban/http://www.mindanews.com/environment/2013/02/19/tampakan-copper-gold-project-gets-ecc-southcot-stands-pat-on-open-pit-mining-ban/http://www.mindanews.com/environment/2013/02/19/tampakan-copper-gold-project-gets-ecc-southcot-stands-pat-on-open-pit-mining-ban/


13/23

In rejecting the application of SMI for an ECC,Paje said in a memorandum dated January 3,2012: We are returning herewith theapplication documents with instruction to denythe same, without prejudice to resubmission,until the issues and concern on the use ofopen-pit mining method shall have beenclarified and resolved by the company [SMI]

with the provincial government of SouthCotabato.

The company later appealed his decision butPaje still rejected it.

In a press release Tuesday approving the ECCfor the $5.9-billion Tampakan project, Paje saidthe grant of ECC to SMI was subject to certainconditions, and failure to comply may result inthe cancellation of the ECC.

Paje said an environmental permit was issuedto SMI upon the recommendation of theEnvironmental Management Bureau (EMB), anagency attached to the DENR which reviewedthe ECC application.

According to Paje, the ECC covers the projectlocated in the towns of Tampakan in SouthCotabato, Malungon in Sarangani, Columbio inSultan Kudarat, and Kiblawan in Davao del

Sur.

The EMB has reviewed the requirements ofthe application for the project and hasrecommended the issuance of the ECC subjectto the implementation of certain conditionspresented in the Environmental ImpactStatement (EIS) in order to protect and mitigatepossible adverse impacts of the project on thecommunity health, welfare and theenvironment, Paje pointed out.

The environment chief directed the EMB tostrictly monitor SMIs compliance with theconditions stipulated in the ECC to ensure thatenvironmental considerations are incorporatedin all phases and aspects of the Tampakanproject.

SMI should make public the feasibility of theproject, ensure that the area does not coverthose where mining is prohibited, and ensure

social acceptability through consultation withstakeholders, Paje said.

He also clarified that SMI could only proceedwith the implementation of the project aftersubmitting all other necessary governmentpermits and clearances to the EMB, particularlythose involving indigenous peoples, the

agriculture and agrarian reform departments,and local government units.

Under the ECC, SMI is directed to conform tothe provisions involving toxic and solid wastesof several laws on clean air and water andmining. SMI must observe appropriatepractices on vegetative restoration,engineering structure, land use, and soil andwater management, as well as ensuring properstockpiling and disposal of generated waste

materials and erosion control, the ECC stated.

The mining company is also instructed toprotect headwaters, implement an efficientwater management system to ensuresustainable use of water, and provide thecommunity with alternative sources of potablewater supply, if needed.

Citing provisions of the Philippine Mining Act,the DENR directed the SMI to set up a

Multipartite Monitoring Team (MMT) andsubmit an Environmental Protection andEnhancement Program (EPEP) that wouldintegrate a final mine rehabilitation anddecommissioning plan for when the project isterminated or completed. This includes thesetting up of contingent and trust funds thatwould address future concerns for minerehabilitation, wastes and tailings, and finaldecommissioning.

SMI was also told to establish a MineEnvironmental Protection and EnhancementOffice (MEPEO) that would handleenvironment-related aspects of the project. TheMEPEO is also to monitor the projects actualimpacts vis--vis predicted ones.

Additionally, the SMI shall submit a SocialDevelopment and Management Program(SDMP) to the regional Mines and


14/23

Geosciences Bureau (MGB) and implement itin coordination with affected barangays.

Meanwhile, the regional offices of the EMB andMGB were directed to coordinate with SMI onconducting an information and educationcampaign on open-pit mining, which is thetechnology to be used for the project.

The 9,605-hectare Tampakan project isexpected to produce an average annual yieldof 375,000 metric tons of copper and 360,000ounces of gold per year.

Shocked

May Che Capili, of Mindanao Land Foundationsaid she was shocked by the ECC approvalknowing the Environmental Impact

Assessment (EIA) have so many loopholes.

She said SMI could not even assure tomaintain the quality of water [at the mining site]once it starts to operate.

They always highlight the jobs that can becreated with mining but not the fact that it willdisplace all farmers when all the waters run drywith that open pit mining. We will be losing thefeeders for our rivers, she added.

LGUs ignored

Juland R. Suazo, public Information officer ofenvironment group Panalipdan SouthernMindanao, said the issuance of the ECC hasviolated the right of LGUs to decide on projectswithin their jurisdiction.

It was also clear to us that the localgovernment of Koronadal categorically denied

the application of SMI due to the ProvincialEnvironmental Code which bans open pitmining. Such policy stands, Suazo said.

He added the Aquino government just wantedto please SMI, and ignored the legitimateconcerns of affected communities and thehuman rights abuses against the Blaan tribe.

Suazo warned Malacanang might also reversethe moratoriums declared by LGUs on 10

mining companies in Capiz, Guimaras,Romblon, Negros Occidental, MindoroOccidental, Mindoro Oriental, Marinduque,Western Samar, Northern Samar andBatangas.

These mining moratoriums are hard-wonvictories of struggles waged by ordinary rural

folk and local government officials, he added.

Brainless decision

This is a brainless decision. It seems thatPresident Aquino values the interest of foreignminers more than the lives and safety of ourpeople and the pristine environment inMindanao. The Aquino governments approvalof the project will surely encourage the peopleto resist more in different ways. This will only

add fire to the volatile situation in the mining-affected areas, Clemente Bautista, nationalcoordinator of Kalikasan said in a statementtoday.

With this approval, the government as alwayswill increase the military forces and intensifymilitarization in the mining-affected areas todissuade the people in opposing the project.This will definitely result in more violence andincreasing human rights violations, he warned.

He cited the death last October 18, 2012 ofJuvy Capion, wife of anti-mining tribal leaderDaguil, and her two minor sons in what themilitary claimed was a shootout with Daguilsgroup.

Recently a Blaan tribal warrior was also killedin a military operation last month. Several anti-mining activists were also assassinatedbecause of their opposition to the project, one

of which is Eliezer Billanes in March 2009, headded. (Bong Sarmiento with reports fromCarolyn O. Arguillas, H. Marcos C. Mordenoand Violeta M. Gloria/MindaNews)


15/23

DENR issues ECC for Tampakan project

The Department of Environment and NaturalResources (DENR) has issued anenvironmental compliance certificate (ECC) forthe $5.9-billion Tampakan copper-gold projectof Sagittarius Mining Inc. (SMI) in SouthernMindanao.

DENR Secretary Ramon J. P. Paje, however,said the grant of ECC to SMI was subject tocertain conditions, and failure to comply mayresult in the cancellation of the ECC.

Paje said an ECC was issued to SMI upon therecommendation of the EnvironmentalManagement Bureau (EMB), an agencyattached to the DENR which reviewed the ECCapplication.

According to Paje, the ECC covers the projectlocated in Tampakan, South Cotabato;Malungon, Sarangani; Columbio in SultanKudarat; and Kiblawan in Davao del Sur.

The EMB has reviewed the requirements ofthe application for the project and hasrecommended the issuance of the ECC subjectto the implementation of certain conditionspresented in the Environmental Impact

Statement (EIS) in order to protect and mitigatepossible adverse impacts of the project on thecommunity health, welfare and theenvironment, Paje pointed out.

The environment chief directed the EMB tostrictly monitor SMIs compliance with theconditions stipulated in the ECC to ensure thatenvironmental considerations are incorporatedin all phases and aspects of the Tampakanproject.

SMI should make public the feasibility of theproject, ensure that the area does not coverthose where mining is prohibited, and ensuresocial acceptability through consultation withstakeholders, Paje said.

He also clarified that SMI could only proceedwith the implementation of the project aftersubmitting all other necessary government

permits and clearances to the EMB, particularlythose involving indigenous peoples, theagriculture and agrarian reform departments,and local government units.

Under the ECC, SMI is directed to conform tothe provisions involving toxic and solid wastesof several laws on clean air and water and

mining. SMI must observe appropriatepractices on vegetative restoration,engineering structure, land use, and soil andwater management, as well as ensuring properstockpiling and disposal of generated wastematerials and erosion control, the ECC stated.

The mining company is also instructed toprotect headwaters, implement an efficientwater management system to ensuresustainable use of water, and provide the

community with alternative sources of potablewater supply, if needed.

Citing provisions of the Philippine Mining Act,the DENR directed the SMI to set up aMultipartite Monitoring Team (MMT) andsubmit an Environmental Protection andEnhancement Program (EPEP) that wouldintegrate a final mine rehabilitation anddecommissioning plan for when the project isterminated or completed. This includes the

setting up of contingent and trust funds thatwould address future concerns for minerehabilitation, wastes and tailings, and finaldecommissioning.

SMI was also told to establish a MineEnvironmental Protection and EnhancementOffice (MEPEO) that would handleenvironment-related aspects of the project. TheMEPEO is also to monitor the projects actualimpacts vis--vis predicted ones.

Additionally, the SMI shall also submit a SocialDevelopment and Management Program(SDMP) to the regional Mines andGeosciences Bureau (MGB) and implement itin coordination with affected barangays.

Meanwhile, the regional offices of the EMB andMGB were directed to coordinate with SMI onconducting an information and education


16/23

campaign on open-pit mining, which is thetechnology to be used for the project.

SMI is largely owned by Xstrata Copper, theworlds fourth largest copper producer. The9,605-hectare Tampakan project is expected toproduce an average annual yield of 375,000metric tons of copper and 360,000 ounces of

gold per year. #


17/23

Tampakan mines is world's mostdangerous, expert says

THE Tampakan Copper Gold Project operatedby the Sagittarius Mines Inc. in thetriboundaries of South Cotabato, Davao delSur and Sarangani is said to be one of themost dangerous mining projects in the world,

according to an expert who made a study onthe mining project few years ago.

Clive Montgomery Wicks, conservation anddevelopment consultant specializing in theimpact of extractive industries, said theTampakan mining project is estimated toproduce 2.7 billion tons of mine wastes.

He said the plan was to place the mine wasteson top of the mountain above the open pit mine

site. If this is materialized, he said, the minewastes will be stacked up to 300 meters highand will cover about 500 hectares.

Wicks said considering that the mining area islocated just ten kilometers away from MountMatutum, which is an active volcano, seismicactivities within the mining area is high andthus the possibility of all the mine wastes goingdown to the populated area and down into thewater sources is extremely possible.

He said the drilling of about 800 meters aroundthe area of Mt. Matutum would also result to"induced seismic activity."

He said despite the assurance by the miningcorporation that their mine tailings dam will bestrong enough, constant seismic activity wouldeventually destroy the dam and its toxic wasteswould cover a very large farming area downthe mountain.

In a statement, SMI corporate communicationsand media relations manager John Arnaldodismissed Wicks's doomsday scenario. He saidthey have complied with all the necessarymeasures to prevent such a disaster fromhappening.

"We have completed our Environmental ImpactAssessment (EIA) studies in accordance withrelevant local and international standards.

These robust, evidence-based studies involvedboth Filipino and international experts andhave taken a number of years to complete aspart of our integrated mine planning process.The EIA identified the proposed measures tomitigate and manage the potentialenvironmental and social risks," Arnaldo said.

"The EIS and ESIA document the project risksand SMIs commitments to mitigate these risks.We are confident all risks can be mitigated," headded.

As to the project's proximity to the activevolcano, Arnaldo said a site specific hazardassessment was completed as part of the EIS,which included consideration of volcanichazards.

Wicks, meanwhile, urged the Philippinegovernment to involve not just one agency inthe issuance of mining permits. He said theagriculture and fisheries agencies must alsohave their say on allowing mining companies tooperate considering that mining has a directimpact on the destruction of crops andaquamarine resources.

"We dont think the government has the abilityto control what the mining corporations are

doing. And we dont think that even if youallowed mining that you are going to makemoney out of it. What you are making isenormous liability. The impact on food andwater is going to be huge," Wicks said.

"You have to have an interdepartmental, noone person must decide whether to have amine or not. There must be involvement ofother agencies like the agriculture and fisheriesthat will also be affected by the mining

pollution," he added.


18/23

SouthCot board stays firm on open-pitmining ban; critics hit approval of SMIsECC

KORONADAL CITY (MindaNews/20 February) The Sangguniang Panlalawigan of SouthCotabato rallied behind the provincialenvironment code that bans open pit mining

method as the local Catholic Church urged thepublic to intensify the opposition to theTampakan copper-gold project now that it hasobtained an environmental compliancecertificate (ECC).

The SP of South Cotabato will maintain itsstand that the open pit ban provided for in itsenvironment code will remain until a competentcourt declares it ultra vires (beyond ones legalpower or authority), Vice Gov. Elmo Tolosa,

the provincial boards presiding officer, toldMindaNews Wednesday.

Tolosa added that the board was not surprisedthat the Department of Environment andNatural Resources (DENR) eventually grantedthe ECC permit of foreign-backed SagittariusMines, Inc. (SMI) because they were in favor ofthe project all along.

Asked if the mining firm will seek the

endorsement of the provincial board, Tolosasaid: The environment code provision willstand in the way of any SP endorsementunless the ban on open pit mining is repealedby the SP itself or declared invalid by a court oflaw.

Environment Secretary Ramon Pajeannounced Tuesday that the agency hasapproved SMIs ECC, which is one of therequirements before the firm can go on

commercial production.

The decision of the DENR, which previouslytrashed twice the firms ECC application, drewuproars among critics of the Tampakan project.

Marbel Bishop Dinualdo Gutierrez also onWednesday rallied the public to strengthen theopposition against the Tampakan copper-goldproject.

Gutierrez assailed President Benigno SimeonAquino III for the issuance by the DENR of theECC to SMI, which is controlled by XstrataCopper, the worlds fourth largest copperproducer.

PNoy (Aquino) is no longer believable. He hadsaid that Kayo ang Boss Ko it turns out now

thats just a slogan, the bishop told a localradio station in Ilonggo.

Gutierrez pointed out that last year, thedioceses of Marbel, Kidapawan and Digossubmitted 106,000 signatures to the Office ofthe President to persuade Aquino to thrash theTampakan project.

The Tampakan project, which straddles thetowns of Tampakan in South Cotabato,

Kiblawan in Davao del Sur, and Columbio inSultan Kudarat, is under the jurisdiction of thethree dioceses.

If the people are his bosses, Aquino shouldheed that petition, Gutierrez said.

The cutting of trees in 4,000 hectares, themining project lying in four major earthquakefaults, the dislocation of the indigenouspeoples and the disposal of mining wastes

were the major reasons the religious leadercited in urging the people to continue opposingthe Tampakan project.

Gutierrez also stressed that South Cotabatohas an existing ordinance that bans open-pitmining, the method SMI will use in extractingthe vast deposits.

Lawyer Mario Maderazo, advocacy and legalofficer of the Philippine-Misereor Partnership,

Inc., warned that the ECC issuance to SMIwould be the start of the portent of things tocome.

This clearance is the beginning of wantonenvironmental destruction and human rightsviolations in Tampakan, he said in astatement.

Maderazo cited the disasters in Padcal andSemirara, which have both been given ECCs.
http://www.mindanews.com/environment/2013/02/20/southcot-board-stays-firm-on-open-pit-mining-ban-critics-hit-approval-of-smis-ecc/http://www.mindanews.com/environment/2013/02/20/southcot-board-stays-firm-on-open-pit-mining-ban-critics-hit-approval-of-smis-ecc/http://www.mindanews.com/environment/2013/02/20/southcot-board-stays-firm-on-open-pit-mining-ban-critics-hit-approval-of-smis-ecc/http://www.mindanews.com/environment/2013/02/20/southcot-board-stays-firm-on-open-pit-mining-ban-critics-hit-approval-of-smis-ecc/http://www.mindanews.com/environment/2013/02/20/southcot-board-stays-firm-on-open-pit-mining-ban-critics-hit-approval-of-smis-ecc/http://www.mindanews.com/environment/2013/02/20/southcot-board-stays-firm-on-open-pit-mining-ban-critics-hit-approval-of-smis-ecc/http://www.mindanews.com/environment/2013/02/20/southcot-board-stays-firm-on-open-pit-mining-ban-critics-hit-approval-of-smis-ecc/


19/23

Philex Mining Corp. was fined a billion pesosrecently for polluting the Balog Creek inBenguet and the Agno River in Pangasinan

August last year, while five workers ofSemirara Mining Corp. in Antique were recentlykilled and another five remained missing after aportion of its open-pit mine collapsed.

In our view, the project in Tampakan is evenmore dangerous than those two sites. First,even before the operations begin, human rightsviolations are already rampant in the areahighlighted by a massacre of a mother and hertwo children October last year, Maderazo said.

As of 1:25 p.m. Wednesday, SMI has yet toissue a written media statement on its ECCapproval. In the past, the mining firm said it willemploy responsible mining practices to

minimize the impact of the project to theenvironment. (Bong S. Sarmiento /MindaNews)


20/23

Tampakan copper-gold project gets ECC;SouthCot stands pat on open pit miningban

ByBong S. Sarmientoon February 19 2013

8:46 pm

KORONADAL CITY (MindaNews/19

February)Castigating Environment SecretaryRamon Paje for flip-flopping on the agencys

decision to now give foreign-backed Sagittarius

Mines, Inc. an environmental compliance

certificate (ECC), South Cotabato Gov. Arthur

Y. Pingoy Jr. said Tuesday the provincial

government will not overturn its controversial

ban on open pit mining.

Previously, the DENR (Department of

Environment and Natural Resources) did notapprove the ECC of SMI because of our ban

on open-pit. Now, the agency has a different

stand, Pingoy told MindaNews.

Nonetheless, the governor said the provincial

government would not back down because of

the ECC approval of DENR for SMI, which is

controlled by Xstrata Copper, the worlds fourth

largest copper producer.

The open-pit ban is contained in the

environment code of the province that was

approved in June 2010.

Our environment code is legal, and I am

bound to implement that unless nullified by a

proper court, Pingoy stressed.

Two or three weeks ago, the Sangguniang

Panlalawigan also reiterated that the

prohibition on open pit mining will remain, after

Justice Secretary Leila de Lima threatened to

file cases against local government units

(LGUs) with ordinances that supposedly

counter Republic Act 7942 or the Philippine

Mining Act of 1995, Pingoy stressed.

Manolo Labor, SMI external communications

and media relations superintendent, said they

were informed around lunchtime Tuesday that

Paje has approved the proposed ECC from

DENR.

Our office in Manila received a signed copy

from the Environmental Management Bureau,

which issues the ECC, Labor, who admitted

he still has to read the document, said in aseparate phone interview.

Labor repeatedly referred to the document as

a proposed ECC, claiming that the company

has to agree with the government the

conditions set therein.

Fr. Rey Ondap, head of the Justice and Peace

for Integrity of Creation of the Passionist

congregation, also slammed the decision of the

DENR to issue an ECC to SMI.

The ECC issuance is the death certificate to

the IPs (indigenous peoples) and the people of

Region 11 and 12. This is the bossy action of

PNoy (President benigno Aquino III) betraying

the future generation of this place, the priest

said in a text message.

Lawyer Carlos Zarate, second nominee of

Bayan Muna partylist, also condemned theissuance of ECC by the DENR to SMI, noting it

shows the utter disregard of the Aquino

administration to the sentiments and welfare of

the people in South Cotabato and other

affected areas.

That the DENR denied it twice in the past due

to the open-pit mining ordinance of South

Cotabato is proof that this latest move in total

turnaround is a brazen surrender of the Aquinoadministration to the interest of the foreign,

large-scale and destructive mining interests.

Matuwid na daan is nothing but to satisfy the

greed for profit of this administration and its

capitalist sponsors, he said.

Zarate, a native of South Cotabato province,

noted the ECC is an insult to the letter and

spirit of genuine local autonomy and an insult
http://www.mindanews.com/environment/2013/02/19/tampakan-copper-gold-project-gets-ecc-southcot-stands-pat-on-open-pit-mining-ban/http://www.mindanews.com/environment/2013/02/19/tampakan-copper-gold-project-gets-ecc-southcot-stands-pat-on-open-pit-mining-ban/http://www.mindanews.com/environment/2013/02/19/tampakan-copper-gold-project-gets-ecc-southcot-stands-pat-on-open-pit-mining-ban/http://www.mindanews.com/environment/2013/02/19/tampakan-copper-gold-project-gets-ecc-southcot-stands-pat-on-open-pit-mining-ban/http://www.mindanews.com/author/bong-s-sarmiento/http://www.mindanews.com/author/bong-s-sarmiento/http://www.mindanews.com/author/bong-s-sarmiento/http://www.mindanews.com/author/bong-s-sarmiento/http://www.mindanews.com/environment/2013/02/19/tampakan-copper-gold-project-gets-ecc-southcot-stands-pat-on-open-pit-mining-ban/http://www.mindanews.com/environment/2013/02/19/tampakan-copper-gold-project-gets-ecc-southcot-stands-pat-on-open-pit-mining-ban/http://www.mindanews.com/environment/2013/02/19/tampakan-copper-gold-project-gets-ecc-southcot-stands-pat-on-open-pit-mining-ban/


21/23

to the people and local officials of South

Cotabato.

It is also an insult to the memory of the

Lumads who died defending their ancestral

domain, he said.

In rejecting the application of SMI for an ECC,

Paje said in a memorandum dated January 3,

2012: We are returning herewith the

application documents with instruction to deny

the same, without prejudice to resubmission,

until the issues and concern on the use of

open-pit mining method shall have been

clarified and resolved by the company [SMI]

with the provincial government of South

Cotabato.

The company later appealed his decision but

Paje still rejected it.

In a press release Tuesday approving the ECC

for the $5.9-billion Tampakan project, Paje said

the grant of ECC to SMI was subject to certain

conditions, and failure to comply may result in

the cancellation of the ECC.

Paje said an environmental permit was issued

to SMI upon the recommendation of theEnvironmental Management Bureau (EMB), an

agency attached to the DENR which reviewed

the ECC application.

According to Paje, the ECC covers the project

located in the towns of Tampakan in South

Cotabato, Malungon in Sarangani, Columbio in

Sultan Kudarat, and Kiblawan in Davao del

Sur.

The EMB has reviewed the requirements of

the application for the project and has

recommended the issuance of the ECC subject

to the implementation of certain conditions

presented in the Environmental Impact

Statement (EIS) in order to protect and mitigate

possible adverse impacts of the project on the

community health, welfare and the

environment, Paje pointed out.

The environment chief directed the EMB to

strictly monitor SMIs compliance with the

conditions stipulated in the ECC to ensure that

environmental considerations are incorporated

in all phases and aspects of the Tampakan

project.

SMI should make public the feasibility of theproject, ensure that the area does not cover

those where mining is prohibited, and ensure

social acceptability through consultation with

stakeholders, Paje said.

He also clarified that SMI could only proceed

with the implementation of the project after

submitting all other necessary government

permits and clearances to the EMB, particularly

those involving indigenous peoples, theagriculture and agrarian reform departments,

and local government units.

Under the ECC, SMI is directed to conform to

the provisions involving toxic and solid wastes

of several laws on clean air and water and

mining. SMI must observe appropriate

practices on vegetative restoration,

engineering structure, land use, and soil and

water management, as well as ensuring properstockpiling and disposal of generated waste

materials and erosion control, the ECC stated.

The mining company is also instructed to

protect headwaters, implement an efficient

water management system to ensure

sustainable use of water, and provide the

community with alternative sources of potable

water supply, if needed.

Citing provisions of the Philippine Mining Act,

the DENR directed the SMI to set up a

Multipartite Monitoring Team (MMT) and

submit an Environmental Protection and

Enhancement Program (EPEP) that would

integrate a final mine rehabilitation and

decommissioning plan for when the project is

terminated or completed. This includes the

setting up of contingent and trust funds that


22/23

would address future concerns for mine

rehabilitation, wastes and tailings, and final

decommissioning.

SMI was also told to establish a Mine

Environmental Protection and Enhancement

Office (MEPEO) that would handle

environment-related aspects of the project. TheMEPEO is also to monitor the projects actual

impacts vis--vis predicted ones.

Additionally, the SMI shall submit a Social

Development and Management Program

(SDMP) to the regional Mines and

Geosciences Bureau (MGB) and implement it

in coordination with affected barangays.

Meanwhile, the regional offices of the EMB and

MGB were directed to coordinate with SMI on

conducting an information and education

campaign on open-pit mining, which is the

technology to be used for the project.

The 9,605-hectare Tampakan project is

expected to produce an average annual yield

of 375,000 metric tons of copper and 360,000

ounces of gold per year.

Shocked

May Che Capili, of Mindanao Land Foundation

said she was shocked by the ECC approval

knowing the Environmental Impact

Assessment (EIA) have so many loopholes.

She said SMI could not even assure to

maintain the quality of water [at the mining site]

once it starts to operate.

They always highlight the jobs that can be

created with mining but not the fact that it will

displace all farmers when all the waters run dry

with that open pit mining. We will be losing the

feeders for our rivers, she added.

LGUs ignored

Juland R. Suazo, public Information officer of

environment group Panalipdan Southern

Mindanao, said the issuance of the ECC has

violated the right of LGUs to decide on projects

within their jurisdiction.

It was also clear to us that the local

government of Koronadal categorically denied

the application of SMI due to the Provincial

Environmental Code which bans open pitmining. Such policy stands, Suazo said.

He added the Aquino government just wanted

to please SMI, and ignored the legitimate

concerns of affected communities and the

human rights abuses against the Blaan tribe.

Suazo warned Malacanang might also reverse

the moratoriums declared by LGUs on 10

mining companies in Capiz, Guimaras,

Romblon, Negros Occidental, Mindoro

Occidental, Mindoro Oriental, Marinduque,

Western Samar, Northern Samar and

Batangas.

These mining moratoriums are hard-won

victories of struggles waged by ordinary rural

folk and local government officials, he added.

Brainless decision

This is a brainless decision. It seems that

President Aquino values the interest of foreign

miners more than the lives and safety of our

people and the pristine environment in

Mindanao. The Aquino governments approval

of the project will surely encourage the people

to resist more in different ways. This will only

add fire to the volatile situation in the mining-

affected areas, Clemente Bautista, national

coordinator of Kalikasan said in a statementtoday.

With this approval, the government as always

will increase the military forces and intensify

militarization in the mining-affected areas to

dissuade the people in opposing the project.

This will definitely result in more violence and

increasing human rights violations, he warned.


23/23

He cited the death last October 18, 2012 of

Juvy Capion, wife of anti-mining tribal leader

Daguil, and her two minor sons in what the

military claimed was a shootout with Daguils

group.

Recently a Blaan tribal warrior was also killed

in a military operation last month. Several anti-mining activists were also assassinated

because of their opposition to the project, one

of which is Eliezer Billanes in March 2009, he

added. (Bong Sarmiento with reports from

Carolyn O. Arguillas, H. Marcos C. Mordeno

and Violeta M. Gloria/MindaNews)

Fact Basis

Documents

Transcript of Fact Basis