Small Scale Mining in Davao Region

Transcription

1 Department of Environment and Natural Resources MINES AND GEOSCIENCES BUREAU-XI Small Scale Mining in Davao Region By: Socorro C. Oquendo MGB-XI

2 On January 23, 1984 then President Ferdinand E. Marcos issued Presidential Decree No Establishing Small Scale Mining as a New Dimension in Mineral Development MAO MRD-41, Series of 1984 Rules and Regulations Governing the Granting of Small Scale Mining Permits Under PD 1899 (June 4, 1984) Then on June 27, 1991, Her Excellency President Corazon C. Aquino issued Republic Act No An Act Providing a People s Small Scale Mining Program and for Other Purposes DAO No. 34, Series 0f Rules and Regulations to Implement RA 7076, Otherwise Known as the People s Small Scale Mining Act of 1991 (July 14, 1992)

3 EXECUTIVE ORDER NO. 79 INSTITUTIONALIZING AND IMPLEMENTING REFORMS IN THE PHILIPPINE MINING SECTOR PROVIDING POLICIES AND GUIDELINES TO ENSURE ENVIRONMENTAL PROTECTION AND RESPONSIBLE MINING IN THE UTILIZATION OF MINERAL RESOURCES

4 EXECUTIVE ORDER NO. 79 SECTION 11. Measures to Improve Small-Scale Mining Activities. To improve and address issues on small-scale mining, the following measures shall be undertaken: a)small-scale mining activities shall comply with RA NO. 7076, or the People s Small-Scale Mining Act of 1991, and the Environmental Impact Statement System requirements under Presidential Decree (PD) No. 1586; b)pursuant to RA No. 7076, small-scale mining operations shall be undertaken only within the declared People s Small- Scale Mining Areas or Minahang Bayan;

5 EXECUTIVE ORDER NO. 79 c) Pursuant to Section 24 of RA No. 7076, P/CMRBs in provinces and cities where they have not been constituted shall be operationalized within three (3) months from the effectivity of this Order; c) Small-scale mining shall not be applicable for metallic minerals except gold, silver, and chromite, as provided for in RA No. 7076; c) The use of mercury in small-scale mining shall be strictly prohibited; and, c) Training and capacity building measures in the form of technical assistance for small-scale mining cooperatives and associations shall be conducted by the concerned government agencies.

6 INVENTORY OF SMALL SCALE MINING IN DAVAO REGION CY

7 BACKGROUND Lack of available data on Small Scale Mining (SSM) in the region/country; Inclusion of small scale mining in the drafting of Mining Industry Cluster Roadmap of the Region was a concern raised by RDC; National concern of the Mines and Geosciences Bureau (MGB) to make all its Regional Offices conduct an inventory of all (legal and informal) SSM activities.

8 Small Scale Mining Communities...

9 Our travel to the sites...

10 2,029 Tunnels...

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12 Rodmills/Ballmills 1,911 Rodmills/Ballmills

13 856 Processing Plants...

14 15 Hydraulicking Areas...

15 DISTRIBUTION OF SSM ACTIVITIES IN THE REGION

16 AREA # OF TUNNELS # OF ROD/ BALLMILLS # OF PROCESSING PLANTS # OF HYDRAULICKING AREA # OF OPEN PIT AREA A. Davao Del Sur Prov. 1. Malita Municipality Total B. Davao Del Norte Prov. 1. San Isidro Municipality Total

17 AREA # OF TUNNELS # OF ROD/ BALLMILLS # OF PROCESSING PLANTS # OF HYDRAULICKING AREA # OF OPEN PIT AREA C. Davao Oriental Prov. 1. Tarragona Municipality Gov. Generoso Municipality Boston Municipality Manay Municipality Lupon Municipality Banaybanay Municipality Total

18 AREA # OF TUNNELS # OF ROD/ BALLMILLS # OF PROCESSING PLANTS # OF HYDRAULICKING AREA # OF OPEN PIT AREA A. ComVal Province 1. Pantukan Municipality 1,108 1, Maco Municipality Nabunturan Municipality Mabini Municipality New Bataan Municipality Maragusan Municipality Compostela Municipality Monkayo Municipality Mawab Municipality Total 1,920 1,

19 AREA # OF TUNNELS # OF ROD/ BALLMILLS # OF PROCESSING PLANTS # OF HYDRAULICKING AREA # OF OPEN PIT AREA A. ComVal Province 1,920 (95%) 1,897 (99%) 849 (99%) 12 (80%) - B. Davao Oriental Prov (100%) C. Davao Del Norte Prov D. Davao Del Sur Prov OVERALL TOTAL 2,029 1,

20 Tailings Ponds...

21 Rivers/Creeks around...

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24 OBJECTIVES OF DAO : A. To implement the People s Small Scale Mining Program as provided for under RA 7076; B.To effect an orderly, systematic and ecologically balanced administration and disposition of small scale mining areas; C.To regulate the small scale mining industry, with a view of enhancing its growth and productivity, as well as ensuring environmental protection; and

25 OBJECTIVES: D. To provide technical, financial and marketing assistance; ensure efficient collection of government revenues; adopt best practices; and promote good governance and integrity in the industry.

26 Salient Features of DAO CHAPTER III (Registration, Licensing, Daclaration of Minahang Bayan and Awarding of SSM Contracts): A. NO SMALL SCALE MINING Outside a Minahang Bayan; Without a small scale mining contract; Unless registered with the Board.

27 Salient Features of DAO B. REGISTRATION OF MINERS ALL PERSONS undertaking small scale mining shall register as small scale miners with the Board. C. LICENSING OF SSM CONTRACT APPLICANTS An applicant for a ssm contract shall first secure a ssm license from the Board. Application Fee of Php 1,000 payable to MGB.

28 D. AREAS OPEN FOR DECLARATION AS MINAHANG BAYAN 1. Areas already occupied and actively mined by small scale miners before August 1, 1987; 1. Public lands covered by mining applications; 1. Public lands covered by existing mining permit(s)/contract(s) which are not active mining areas; 1. Private lands, subject to the consent of the landowner(s) and a royalty payment; 1. Ancestral Lands/Ancestral Domains, subject to CADT/CALT.

29 E. APPLICATION TO ENTER INTO A SMALL SCALE MINING CONTRACT Small scale miners organized as an individual miner or a cooperative of small scale miners with a capacity to contract shall file with the Board a small scale mining contract application within an area situated in a Minahang Bayan.

30 F. EXTENT OF SMALL SCALE MINING CONTRACT AREA The Board shall determine the reasonable size and shape of the small scale mining contract area following the meridional block system established under RA No. 7942, otherwise known as the Philippine Mining Act of But in no case shall the applied area be less than 1.25 hectares and more than 20 hectares per small scale mining contract.

31 G. AWARD OF PEOPLE S SMALL SCALE MINING CONTRACT Within thirty (30) days upon receipt of the application, the Regional Director, as Chairperson of the Board, shall award the small scale mining contract.

32 H. TERMS & CONDITIONS OF SMALL SCALE MINING CONTRACT 1. Contract may cover non-metallic; the metallic minerals shall only be limited to gold, silver or chromite; and shall have a term of two(2) years, renewable but not to exceed a total of six (6) years. 2. The ore produced shall not exceed 50,000 metric tons annually and shall be processed in a custom mill.

33 H. TERMS & CONDITIONS OF SMALL SCALE MINING CONTRACT 3. The ssm contractor shall: Conduct ssm in accordance with the Two-year Work Program, PEIMP, ASHP and CDMP and the ECC; Comply with pertinent rules and regulations on environmental protection and conservation, reportorial requirements and other conditions attached to the contract.

34 Salient Features of DAO CHAPTER IV (Mineral Processing): A. SMALL SCALE MINERAL PROCESSING Undertaken only thru centralized custom mills located in mineral processing zones under a Mineral Processing License (MPL); No use of mercury.

35 B. APPLICATION FOR MPL With complete mandatory requirements; Payment of the filing fee of 50,000 Php.

36 Salient Features of DAO CHAPTER V (Supervision): A. ADMINISTRATIVE SUPERVISION OVER SSM The Secretary through his representative shall exercise direct supervision and control over the programs and activities of the small scale miners within the Minahang Bayan.

37 B. P/CMRB The Board shallo exercise the following major powers and functions, subject to review by the Secretary: Declares Minahang Bayan; Reserves for the future, mineralized ares/mineral lands for declaration as Minahang Bayan; Awards ssm contracts to small scale miners organized as individual miner or coop;

38 B. P/CMRB Formulates its own guidelines and implements rules and regulations related to RA No. 7076; Settles disputes, conflicts or litigations over conflicting claims; Submits to the Department and the Bureau a comprehensive Annual Report of the overall operation of the Minahang Bayan; and Performs such other functions as may be necessary to achieve the goals and objectives of RA 7076.

39 COMPOSITION OF P/CMRB 1. Regional Director or his/her duly authorized representative as Chairperson; 2. Provincial Governor or City Mayor or his/her representative as Member; 3. One (1) small scale mining representative as Member; 4. One (1) large scale mining representative as Member; and 5. One (1) representative from an environmental non-government organization as Member. Technical Secretariat/Staff shall be provided by the Regional Office concerned.

40 Salient Features of DAO CHAPTER VII (Environmental Protection, Social Development, Safety and Health): A. ENVIRONMENTAL PROTECTION AND SOCIAL DEVELOPMENT Small scale mining contractor/mineral processor shall abide by the approved ECC, PEIMP and CDMP, and comply with all applicable environmental laws, rules and regulations.

41 B. SAFETY AND HEALTH Small scale miners/mineral processing plant workers/small scale mining contractor/mineral processor shall abide by the provisions of DAO No , otherwise known as the Small Scale Mine Safety Rules and Regulations, its approved ASHP, and other pertinent rules and regulations.

42 Salient Features of DAO CHAPTER VIII (Fiscal and Regulatory Provisions): A. PAYMENT OF TAXES AND GOVERNMENT PRODUCTION SHARE National and local taxes due as provided for in the National Internal Revenue Code; Royalty equivalent to 5% of the gross output, for small scale mining within mineral reservations; & Government production share.

43 B. PAYMENT OF OCCUPATION FEE Payment of Php per hectare or a fraction thereof per year; Payable to the municipality where the ssm contract area is located; The initial occupation fee shall be paid on the date the ssm contract is approved.

44 C. PEOPLE S SMALL SCALE MINING PROTECTION FUND 15% of the national government s share of the internal revenue tax or production share; It shall be used primarily for information dissemination and training of small scale miners on safety, health and environmental protection, establishment of Mine Rescue & Recovery Teams; To address the needs of the small scale miners brought about by accidents/fortuitous events; The Board shall act as Trustee of the Fund.

45 Salient Features of DAO CHAPTER XI (Penal Provision): A. PENAL SANCTIONS Violation of any of the provisions of RA No or this Administrative Order shall, after conviction, be penalized with imprisonment of not less than six (6) years, and shall include the confiscation and seizure by the Board of the equipment, tools and conveyance used in the commission of the offense.

46 AREA NO. OF DECLARED MINAHANG BAYAN AREA/S REMARKS/STATUS 1. COMVAL 9 (668 has.) 2. DAVAO ORIENTAL NONE 7 areas endorsed by PMRB for approval/still pending. 1 area assessed but not recommended; 1 area recommended for further study. 3. DAVAO DEL NORTE NONE 2 areas recommended for further study. 3. DAVAO DEL SUR NONE TOTAL 9

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48 ISSUES AND CONCERNS SSM activities in the region caused the existence or presence of most common issues and concerns often raised against mining: Despite the actions taken and the stoppage orders issued by the MGB and the local government units concerned, the illegal mining operations continue; Many of the sites occupied by illegal small-scale mining operations seated in far-flung areas are difficult or totally not accessible to motor vehicles hence enforcement of stoppage and monitoring is also very difficult;

49 Small-scale mining have already become the main source of living in some areas whereby total and abrupt stoppage thereof will surely cause social unrest and possibly, peace and order problem; Many small scale mining operations are causing environmental degradation and contributes to the deforestation and water contamination to water resources in the locality; The government incur losses in its share of revenues in the form of taxes, etc. and most, if not all the gold produced in the operations, are not being sold to the Bangko Sentral ng Pilipinas; Allegedly, there are local officials condoning or are engaged in both legal and illegal small scale mining activities.

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