Judicious use of mineral wealth

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Monday, March 12, 2018
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(We yield this space to the statement of the National Alliance of Indigenous Peoples Organizations in the Philippines due to its significance. – Ed.)

MINING is crucial to nation-building. And the Philippines, rich in mineral deposits of metallic and non-metallic resources, has the potential to achieve this goal. However, the mining industry remains highly extractive, export-oriented and foreign-dominated, and not geared towards developing national industries and modernization of agriculture. Mining benefits a few big foreign mining corporations and its local partners at the expense of the vast majority of the Filipino people and the environment.

The Philippine Mining Act of 1995 strengthened this mining scheme. It completely liberalized the mining industry to entice foreign investors. It gave impetus to the unhampered plunder of our remaining natural resources. It gives more benefits and incentives to transnational corporations far greater than those provided to Filipino entrepreneurs thru its provisions that allow:

* up to 100 percent foreign owned capital and repatriation profit

* freedom from requisition of investment and freedom from expropriation

* tax exemption for a grace period of 10 years

* easement rights, water rights and timber rights

* tariff and tax exemption for the materials and supplies imported for their mining operation or exploration  and free use of  port for 10 years

In the 23 years since the Mining Act was signed into law, Filipinos experienced plunder of resources, land grabbing, massive destruction of the environment and ecosystem, human rights violations and loss of traditional livelihoods. Indigenous peoples’ rights to our ancestral lands and self-determination are grossly violated.

Under the present law, the mining industry has not significantly contributed to economic growth and development. Its contribution is a measly 0.72 percent to the gross domestic product. Out of the P1.15 trillon gross production value in mining from 1997 to 2012, the government only gained P110 billion or less than 10 percent of the gross value from taxes, fees and royalties. The mining industry only employs an average of 200,000 workers annually or 0.43 percent of the total employment in our country, contrary to the government claims that this industry will generate jobs.

Now, Charter Change is being railroaded to open up Philippine lands and territory to 100 percent foreign ownership and unbridled exploitation of natural resources. The national minorities are the biggest victims – our ancestral lands and territories rights are violated; resources are plundered and the environment destroyed.

It is high time for a rational and judicious use of our mineral wealth for domestic economy and genuine national development. Instead of a charter change for the benefit of few, the People’s Mining Bill must be put into law to put forward the Filipino people’s desire for a mining industry that upholds national sovereignty and patrimony, social justice, environment protection and people’s rights and welfare.
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