Govt must exercise caution in considering mining expansion

THE recent decision of the provincial board of South Cotabato to lift the ban on open-pit mining in that province was disappointing, and raises concerns that a new, reckless push to expand mining under an incoming administration perceived to be more favorable to it may be under way. President-elect Ferdinand Marcos Jr. and his yet to be named economic and environmental managers should be wary of these efforts and exercise caution in considering whether or not to allow more mining in the Philippines.

The proposed mining project directly affected by the decision of the South Cotabato authorities is the Tampakan Copper-Gold Project of Sagittarius Mines Inc. (SMI), located about 50 kilometers north of General Santos City. The mining site is said to contain nearly 3 billion tons of low-grade copper ore and about 18 million ounces of gold, and would become the largest mine in the Philippines if it became operational.

The project has also been one of the most vigorously contested in the country. In 2010, the province of South Cotabato derailed SMI’s plans by imposing the now-lifted ban on open pit mining, which was reinforced by a nationwide ban in 2017. The latter was lifted last year as part of the government’s Covid-19 recovery plan. In the meantime, SMI had run afoul of the authorities in the municipality of Tampakan, which in 2020 canceled a development agreement with the mining firm, calling it “lopsided against residents and the community.”

In terms of its potential impact on the area, the Tampakan project would generate a great deal of economic benefits in the form of direct revenues and jobs, but at a steep social and environmental cost. Development of the mine site would displace an estimated 4,000 members of the B’laan indigenous community from their ancestral land, and result in the clearance of more than 3,900 hectares of forest. The mine would also break into the aquifer, according to some environmental assessments, affecting groundwater supplies and rivers in the region.

Critics have also bitterly condemned the “underhanded” way in which the South Cotabato provincial government rescinded its ban, just a week after the general election when the public’s attention was naturally directed elsewhere. The implication is that some politicians in the provincial government acted in bad faith; whether that is actually true or not, a decision on a matter having such a long-term effect on the province should have been delayed until after the new term of office began.

The Tampakan project is emblematic of the conundrum mining presents to the Philippines generally: The potential economic benefits are too significant to dismiss completely, but those benefits cannot be collected without some degree of permanent harm being done to the environment and communities.

We believe the best way to solve this riddle would be for the government to approach mining with caution, not necessarily with skepticism, but with a clear and consistently enforced set of standards that must be met before mining is possible. Communities should not be displaced, particularly indigenous communities that are an irreplaceable part of our national culture and heritage.

Rigorous environmental protections must be in place, including end-to-end plans for mitigating environmental impact and rehabilitating mining areas, before any approval is granted, and special attention should be given to preventing adverse impacts on freshwater supplies, which are becoming critical all over the country.

Finally, mining must be a value-added economic activity; simply harvesting the country’s finite mineral resources and exporting them, which is all that is done now due to the lack of downstream industries in the Philippines, is pure exploitation. Any mining development should be carried out in conjunction with the development of industries that can maximize the value of our national treasure. Mining imposes costs on the country that are permanent no matter how carefully mining is done; any benefits from mining, therefore, should benefit future generations as much as it does those who are only looking for short-term profits. We do not believe that is impossible, but if it cannot be assured, then mining should be avoided.