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CITY OF MATI, Davao Oriental – Unlike typical large-scale mining operations in other parts of the country, the Pujada Nickel Project in Mount Hamiguitan has defined targets for mineral extraction.
PUJADA Nickel Project site (Hallmark Mining Corp.)
This means that mining areas are not contiguous due to the characteristics of the mineral deposition in the area, Hallmark Mining Corp. community relations officer Dr. Arvin Carlom said.
Instead of opening a vast size of forested area, the Pujada Nickel Project will extract minerals in patches. Each patch will have an average clearing of about 14 hectares, Carlom said.
Carlom allayed fears that mining operations could result to massive deforestation beside the protected area of Mount Hamiguitan.
“Because our area is well-explored, it is already clear to us which areas will be disturbed. So, there will be areas within our tenement that will not be disturbed as well,” Carlom said. “Because if there are mineralization in other areas, it’s not economically viable. Meaning, economically and environmentally some areas are not feasible. ”
He said that these undisturbed areas will serve as bio-corridors of wildlife that would eventually be displaced.
Hence, Davao Oriental State University president Dr. Roy Ponce believes that the impact of mining in the entire biodiversity of the mountain range could be minimal because of the company’s mining methods.
The Austral-Asia Link Mining Corp. (AALMC) is currently allowed to disturb a maximum of 60 hectares as set by the government, said Carlom. AALMC and HMC are under the management of Asiaticus Management Corp. (AMCOR).
The regulation is under the DENR Administrative Order (DAO) 2018-19 which provides new environmental policies that will ensure sustainable environmental conditions in every stage of mining operations and minimize the disturbed area of a mining project at any given time.
“We cannot touch more areas unless the initial 60 hectares is rehabilitated,” Carlom said.
A FOREST guide at Tinikaran Peak inside the Community Based Forest Management area in Barangay Macambol, City of Mati, Davao Oriental. (Keith Bacongco)
In 2016, the company’s mining permit was among the 26 mining operations suspended due to alleged environmental violations following the order of then Department of Environment and Natural Resources Secretary Gina Lopez.
Carlom said they were only able to ship a single load of 50,000 metric tons of nickel ore before the shutdown order was issued.
But on April 14, 2021, President Rodrigo R. Duterte issued Executive Order No. 130 that lifted the nine-year moratorium on new mining permits in the Philippines.
EO No. 130 amended Section 4 of EO No. 79, Series of 2012, that prohibits the granting of mineral agreements “until a new legislation rationalizing existing revenue-sharing schemes and mechanisms shall have taken effect.”
It also highlights the role of the mineral industry in reviving the country’s economy amid the impact of the pandemic.
The 60-hectare active mine pit is currently under the AALMC tenement while its sister company Hallmark Mining Corp. has yet to commence its full operation, Carlom bared.
He said that the mining company is employing a surface or strip mining method and not an open pit since nickel deposits are just about eight to 10 meters deep only.
In 2022, the MGB released a statement saying that the Pujada Nickel Project is a employing a strip or contour mining method.
MGB issued the statement in response to critics following the mine spill incident in Banaybanay, Davao Oriental.
Carlom said that they started full commercial operation only this year and have already shipped about 800,000 metric tons of nickel laterite to China.
However, it took a while for the mining firm to resume full operations because they had to complete necessary requirements, he said.
Collaborative efforts
Amid the stringent mitigating measures implemented by the mining company, some stakeholders remain wary of the possible impact of mining operations, particularly to Pujada Bay.
Thus, the city and provincial government are collaborating with the Davao Oriental State University (DORSU) and other concerned government agencies in ensuring that safety nets are in place for the protection of not just Pujada Bay but also the surrounding communities.
Gov. Niño Sotero Uy said that he is worried about the possible impact of mining to the entire biodiversity of the mountain range as well as Pujada Bay.
Uy said the provincial government is closely monitoring the activities of existing mining projects in the province through the Provincial Mining Regulatory Board (PMRB) composed of representatives from the MGB, local government officials, and members of civil society organizations.
DATU Simplicio Mendoza shows a cacao tree in his backyard in Barangay Macambol, City of Mati, Davao Oriental. The mining company has distributed over 1,000 grafted fruit tree seedlings to over 70 farmers in host communities. (Keith Bacongco)
Through PMRB, Uy said the provincial government is making sure that these mining companies are strictly adhering to mining regulations.
Like the governor, Mayor Michelle Rabat here also cited the role of the university in monitoring mining activities.
The mayor added that the city government is closely working with DORSU to craft comprehensive mitigating measures to safeguard these protected areas.
Rabat added that the mining company has presented their rehabilitation plans before the city government.
She bared that the mining firm plans to convert the mined out site into an eco-tourism site that would eventually become an additional attraction in this city.
In the next 15 years, Carlom said the mining firm will turn over the fully rehabilitated mine site to the indigenous peoples. "They wanted the area to become a botanical and environmental park."
Regenerative forestry
For the first time in the country’s mining industry, the regenerative forestry approach will be tested to rehabilitate the mined out areas of Pujada Nickel Project.
Ponce, whose extensive research work was also instrumental in the inscription of Mount Hamiguitan to the United Nations, Educational, Scientific, and Cultural Organization heritage site, is pushing to pilot the regenerative forestry approach.
PUJADA Nickel Project mine site in in Barangay Macambo, City of Mati, Davao Oriental. (Hallmark Mining Corp.)
He said that the regenerative approach will employ scientific methods to restore the area to its approximate original ecosystem.
But Ponce admitted that his proposal is very challenging given the characteristic of the mountain.
And it comes with a risk and high cost.
In a paper submitted by the provincial government of Davao Oriental to the UNESCO, it stated that: “It is the only protected forest noted for having the largest and most unique area of ‘pygmy’ forest with century-old trees thriving in a highly basic ultramafic soil.”
The paper also added the mountain contains rocks associated with the oceanic crust which are a mixture of sedimentary and ultramafic.
“Ultramafic or serpentine rocks contain metallic elements such as nickel, magnesium, and iron that render the soil unfavorable for normal vegetation growth.”
Furthermore, the paper emphasized that: “In spite of this unfavorable soil conditions, high diversity and endemism of species characterize the nominated property as evidenced by the presence of globally threatened, endemic, and site endemic species seen even in the most adverse soil conditions.”
Given these conditions, Ponce believes that the conventional method of rehabilitating the mountain may not work and could not catch up with the scale of the damage.
“For instance, if you will destroy about eight hectares of forest and then you only have 2,000 square meters of nursery. It cannot cover what has been destroyed,” he said. “And how many man labor hours would it take to fully regenerate the scale of degraded forest?”
Unlike conventional rehabilitation methods, which usually employs typical tree-planting activities, the regenerative approach will be more comprehensive. “It’s scientific because we will attempt to regenerate the micro-organisms, soil, vegetation and even the wildlife in the area,” Ponce said.
Under his proposal, the university is looking to utilize artificial intelligence, drone technology, irrigation systems, and some engineering works to hasten forest regeneration. Ponce wants to collaborate with other scientists and the academe community in this project.
While admitting that it would be a very challenging approach, Ponce believes that they would be able to see good results in less than two years. “That’s still in theory because we have yet to test it. And that if the technology will work.”
However, he could not determine yet how much the concept would cost because it needs further research and testing. Thus, he is now in talks with the mining company and the city government to pilot the method in a small site as a proof of concept.
But Ponce, who also represents the university in the Protected Area Management Board (PAMB), insists that the cost of restoring the ecosystem should be equal or greater than the cost of destruction.
Carlom said they are willing to spend for the proposal of the university. He estimated that Ponce’s proposed rehabilitation method could possibly cost up to a P1 million per hectare. “We are upbeat with the proposal of Dr. Ponce because it will be the first in the country. Even though it will be very challenging.”
But he would suggest that they pilot the two separate approaches – conventional and regenerative – to compare their progress and efficiency.
Carlom said they have deposited at least P29 million to the Mine Rehabilitation Fund (MRF). “Almost every shipment we are depositing P2 million.”
MRF is a requirement for each operating contractor or permit holder as an environmental deposit to ensure availability of funds for the satisfactory compliance with its commitments.
MINDANAO Horned Frog (𝑀𝑒𝑔𝑜𝑝ℎ𝑟𝑦𝑠 𝑠𝑡𝑒𝑗𝑛𝑒𝑔𝑒𝑟𝑖) endemic to Mindanao. (DENR Davao)
The fund, which shall be deposited as a trust fund in a government depository bank, will be used for physical and social rehabilitation of areas and communities affected by mining activities and research on the social, technical, and preventive aspects of the endeavor.
The fund is managed by Mine Rehabilitation Fund Committee, which is composed of the mining company, local government agencies, and civil society organizations.
Meanwhile, according to the company’s website, they have distributed over 500,000 seedlings to interested farmers in host and neighboring barangays through the National Greening Program.
Carlom said the mining firm is targeting to plant over a million seedlings in the next two years. The mining firm has also distributed over 1,000 grafted fruit tree seedlings to over 70 farmers in host communities.
Natural succession
Since the mining site is not contiguous, Ponce said there is a chance to restore biodiversity as the remaining forested areas would serve as reference forest in the restoring the ecosystem.
Ponce said these reference forests will be the source of seeds, spores, grass, and shrubs that will be utilized in the regenerating new vegetation.
With this approach, he added, it could help restore the approximate original biodiversity of the mountain. Unlike the typical tree planting method, which is not biodiversity aligned, Ponce said there are only selected species involved aside from it being very costly and time consuming.
“Whereas if you allow natural succession, I think in less than five years, you will already have an evidence, theoretically.”
But he clarified that only native tree species should be regenerated in the mined out areas instead of exotic or invasive species.
The most vital part of this method is the soil preparation as it will take about two months to prepare the two to three hectares of land, the DORSU president said.
But once the grass and shrubs grow, the natural recruitment of wildlife will begin, Ponce said. “Let the animals build the ecosystem, we will just provide the condition to kickstart.”
Policy risks
Ponce admitted that his proposal also comes with a risk in mineral extraction policy. “If it will not work, it’s a proof that if we will destroy this type of forest, it could not be restored anymore. Therefore, it has a strong policy implication on extraction on this type of forest relative to biodiversity.”
Should this regenerative approach work in rehabilitating the mining site, this could also be used by some mining companies to extract minerals from mountains with similar characteristics with Hamiguitan, Ponce said.
But the policy of retaining reference forest is still a big factor, he said. “For me, maintaining the heritage forests is still very important because these will serve as regenerators.“
Ponce suggested that the implementation of regenerative approach to rehabilitate mined out areas should start as soon as possible to augment mitigating measures in place.
He is looking to start the proposed small site early next year. “The proposal of regenerative approach is a transformative vision that aims to actively restore and replenish the natural resources, ecosystems, and environmental conditions impacted by mining activities.”
FORESTED area in Barangay Macambol, City of Mati, Davao Oriental. (Keith Bacongco)
Dr. Jayson Ibañez, director of research and conservation of the Philippine Eagle Foundation, believes that Ponce’s approach would work since there are already technologies available in implementing regenerative approach.
Ibañez said that the mining firms have the moral obligation to promptly and properly rehabilitate mined out areas.
However, he said it will take at least a lifetime to bring back the area to its original biodiversity. “Yes, it may regenerate but not in our lifetime.”
(This story was produced with support from Internews’ Earth Journalism Network)