#MINDANAO
John Tria
An old friend once said – for as long as we build concrete houses, there will always be mining. What he said is true. Imagine a world without mines. There would be no cement, no metal products, no cellphone or laptop, since all are made with raw materials such as iron and limestone taken from mines. Mining is thus a very old occupation, without which human progress would have been much weaker. Two important things are worth noting about mining.
First point is the economic benefit. I have written previously that the economic contribution of mining is nothing to sneeze at. 2021 data from the Mines and Geo-Sciences shows that the minerals sector employs 183,852 individuals (a number expected to rise this year) , with total exports last year amounting to $6.27 billion, or about 8.2 percent of total exports, remitting ₱39 billion in taxes and royalties.
This, however, only covers direct income and employment from mining companies. We can estimate much more from the indirect enterprises, and even more from the downstream industries making steel, roofing materials and other derivative products. Mines also provide resources for local companies such as cement, gravel and sand, for example, spurring local economic activity.
The second point is that the Constitution, particularly Article 12 on national economy and patrimony states that minerals are owned by the State and must be extracted under its supervision for our benefit. Furthermore, the constitution also says that the State is to promote competitive industries making use of our natural resources. With this, minerals are utilized under the State’s full supervision through the Mines and Geo-Sciences Bureau and other agencies can engage contractors via a mineral agreement. Such agreements often come in the form of Mineral Production Sharing Agreements under Republic Act 7942 or the Mining Act of 1995, or a Small Scale Mining Permit under Republic Act 7076 or the Peoples Small Scale Mining Act of 1991.
With these two points, the agreements made by the government with mining companies are contracts for projects which must be technically and financially feasible. This means being able to bring the necessary revenues to the government and social development benefits for local communities in accordance with Mining Laws, and being compliant with environmental laws.The mining project, with the business and tax revenues it generates and the local employment it engages spurs local economic growth and social development for many far flung communities.
Recognizing the State, or in our context as a democratic republic, our ownership of mineral resources, the concept of responsible mining is clearer, since it is not merely about being a socially responsible company for the sake of image, but because such resources need to be harnessed properly for the benefit of all. This is enshrined in the constitution itself.
Such efforts, therefore, must be done with the right environmental and social safeguards for local communities during and after the productive life of the mine, in accordance with Mining Laws. You may want to read up on them to know more about these programs. The MGBs role is to audit the performance of these mines over time against such standards.
Minerals are thus, God's natural gifts for which we are meant to be responsible stewards. With the country needing to maximize exports, earn foreign exchange, and pay our debt in the post pandemic economy, the need for responsible mining which will bring in this income, is thus emphasized. Likewise, it’s potential to create more opportunities through downstream industries, and creating locally- manufactured goods will enable us to be resilient in the new normal.