Davao Villagers Battle World’s Largest Mining Company
By Keith Bacongco
Philippine Human Rights Reporting Project
MATI CITY, Davao Oriental – Waves lap up the shallow shores of Sitio Wagon in Barangay (village) Macambol as fishermen and their families work and live off the bountiful waters of Pujada Bay.
The noise of the waves mixes with that of an electric plainer being used to shape the belly of a new banca – a simple fishing boat — under the shade of some coconut trees. A much bigger boat which can carry more than a ton of fish approaches the shore after having spent days, possibly even weeks at sea.
Many boats are still out and six more colorfully painted bancas lie on the sand, their fishing nets and traps left to bleach and dry out under the sun.
A sand spit away from the boat shop, Martina Baldapan is sun-drying a basket of different fish just outside her kitchen. They were caught by her son and prepared simply by being dipped in salt and water. Martina leaves them for a day before taking most of the basket to sell for PhP 80 (USD 1) a kilo. The rest she keeps for her family to eat.
Martina is just one of an estimated 3,000 people in the coastal village of Macambol who rely on Pujada Bay for a living.
Other villagers work the lands round Mt. Hamiguitan which, like the Bay has been declared a protected area.
Both though now face the threat of large-scale mining operation dubbed as the Pujada Nickel Project.
The project is funded by BHP Billiton (BHP), self-styled as the “world’s leading natural resources company” through a joint venture with local partner Asiaticus Management Corporation (Amcor).
Pujada is said to have a reserve of about 200 million metric tons of nickel and according to Reuters, BHP has committed to invest up to USD 2 billion which is expected to provide about 3,000 jobs to on its full operation by 2013.
The joint venture however has currently run into difficulties due to a legal dispute between BHP and its local partners as reported by BHP management at its own annual general meeting held on October 23. For now, the project seems to be on hold.
This is good news for many – but not so good news for others who believe the mining may bring jobs and development.
The project site was originally due to cover the two towns and a city of the peninsula of Davao Oriental – Governor Generoso, San Isidro and Mati City. But due to opposition from the authorities in Governor Generoso and San Isidro in 2003, the mining claim has been reduced to Mati only.
Seven Mineral Production Sharing Agreements (MPSA) have been issued covering at least 11,000 hectares. Mining permits overlapped the declared Mt. Hamiguitan protected area.
Mining in protected areas?
On July 1994, the government declared the Pujada Bay as protected seascape by virtue of Presidential Proclamation No. 431. Mt. Hamiguitan was declared a protected area in July 2004.
But on June 8, 2004, just a month before Mt. Hamiguitan was declared protected, the Department of Environment and Natural Resources (DENR) issued MPSA to a series of local mining companies.
In 2004 the Supreme Court controversially allowed foreign companies to own 100 per cent of local mining projects and the Philippine Government hopes to attract upwards of USD 10 billion worth of mining investment over the next few years
These seven mining areas, which cover at least 17, 000 hectares, overlap the protected area, which has five major drainage and watershed systems because of the mountain. The major streams either drain towards the Pujada Bay or the Davao Gulf. The bodies of freshwater are the main source of water supply for communities living in the vicinity.
Pujada Bay is home to the endangered sea cows (dugong) and sea turtles while the Mt. Hamiguitan range is known both for its pygmy forest and also as a home of the endangered Philippine Eagle which is itself a protected species.
The 6,800-hectare Mt. Hamiguitan Range Wildlife Sanctuary is also home to the Mandaya Lumads or indigenous peoples.
Mining divides villagers
Virgie Mabato, chair of the local anti-mining group Macambol Multi-Sectoral Alliance for Integral Development (MMSAID), said that the arrival of the mining groups began to polarize people with some favoring the companies in the hope these would bring development and opportunities to the community.
Mabato added that even relationships between families have been affected by divisions in views as to whether the arrival and the companies will turn out to be a blessing or a curse.
But she explained: “We reiterate our position against the mining operation because it will destroy our source of living and source of our food. It’s not just Mt. Hamiguitan but Pujada Bay which will be polluted once the mine opens.”
Like Baldapan, Mabato also depends on the marine resources in Pujada Bay. Mabato’s family runs a small fish pen in Sitio Supsopon in Macambol.
From the shoreline, the proposed mining site is at least four kilometers away – though it shares the same water basin. During heavy rains, some portions of the bay become murky due to siltation carried down from the hinterland.
Roger Billote, also a member of MMSAID, said that even if the mining company is already outside the protected area, it is still not an assurance that mining operation will not destroy the biodiversity in the area.
“Like the spider web, once one of its strands will be cut, the spider will be outbalanced. Even if there is a buffer zone, it will still affect the entire biodiversity,” he said.
Billote pointed out that for him and many others “biodiversity is not just the protected land itself but as everything around the mountain.”
Yet two tribal councils in Magum and Cabuaya, also part of Macambol, are apparently in favor of the mining operations.
In a joint resolution, the tribal councils have expressed their support for BHP Billiton to continue mining operations in Macambol and Cabuaya areas.
Other indigenous tribal councils have come out against of the mining operation and argue the government in Manila should push for other means of helping the people in Macambol.
Narciso “Datu Silang” Salang, member of the Macambol-Mamali United Mandaya tribal council, says the government and the mining companies should respect the position of the people. “The rift between these two mining companies divided the people especially the indigenous peoples,” Salang pointed out, adding that both the government and the mining company should consider those who depend in Mt. Hamiguitan and Pujada Bay.
The mining operations, he said, will only destroy the beauty of Pujada Bay and Mt. Hamiguitan, adding that both are potential eco-tourism spots in the province.
Meanwhile, only the government officials of this city are apparently in favor of the Pujada Nickel Project believing the mining could bring development in the region.
The province reportedly has rich deposits of gold, nickel, copper, chromite, and manganese.
The Mines and Geosciences Bureau of the DENR disclosed that Davao Oriental has 37,000 of the 87,000 registered sites of mining interest in the country. Philippine Human Rights Reporting Project
(The author is a development worker and journalist based in Davao City. He is also co-founder of AKP Images, an independent photo agency in the Philippines.)
My sister used to work for Asiaticus mining in Mati and she told me when she was visiting me in California last month that the reason they are trying to cancel their joint venture with BHP Billiton is because Asiaticus mining does not want to spend the time or money to invest in the environmental protection policies that BHP has to adhere to.
I was shocked that they would be so blatant about it. She said that it is okay because the Asiaticus owner (forget his name) is super rich and is paying off everyone in the local government to look the other way.
I know BHP is the target of alot of heat from environmentalists but at least they have an environmental policy, are a huge company and therefore have to be responsible to shareholders and have to be worried about their image and reputation if nothing else. Asiacticus (AMCOR) can just pay people off and dont have to worry about any of this or be accountable to anyone.
My sister was so disgusted with the Asiaticus and the owners that she resigned from the company.
i believe that mining in the pujada or any part of that forming peninsula composed by the municipalities of san isidro and governor generoso and the city of mati should not be allowed.
the mining sites in said adjacent areas endanger two important bodies of water: Davao Gulf and the Pujada Bay. It poses not only the economic livelihood of thousands but also an imminent threat to the protected areas of mt hamiguitan (upland) and the pujada seascape (lowland). The mindset of companies are resource extraction for profit, they are not concerned with the latter environmental adverse effects -which people in these areas are bound to shoulder. No matter how they promised to reconstruct and clean up the area, experience from diff parts of the world says otherwise. It costs billions, in dollars to do that. spending billions in such activities is company losses. Unless you have a very good justice system.
Mining is a dangerous extraction activity. The landscape of the area adds more to that perilous activity. It is an 80% upland while 20% lowland. in lowlands, communities settled. the danger of fall off is imminent. thus, t puts life to gamble.
perhaps, the wider question is where in the philippines mining is socially and economically responsible. none. my readings and studies showed none.
from what ive heard, the reason for billiton-amcor rift is their disagreement as to when the projects starts. billiton looks not in hurry, maybe 2020 is yet their target. this was the same reason for breakdown in partnership in Surigao Sur which area is under Pimentel’s. the pimentel decided to end their arrangement with billiton bcos the latter is not keen on starting the project. the old pimentel simply want to extract now while he is still in capacity.
i agree 100% with the first posting. the problem is not with mining responsible it is with these Arroyo crony-run companies like amcor that do not have any regard for the environment, the people affected, or the local economy. i have heard numerous times that amcor has mining rights over 60% of davao oriental. they are going to turn the whole province in to one giant mine. of course all of these mining permits are stacked through relatives of amcor owner pedro tan, who is very close to Arroyo. the last of our worries should be BHP Billiton, who wants to mine more responsibly and only a small area. the big problem is amcor that wants to take over the entire province and others in country. only in the Philippines.
Haha Amcor must be making BILLLLIOOONNNS! any one know where I can apply for a job there? I can be Pedro Tan’s new bag mans to pay off everyone in Davao Oriental and Manila… i will take my fee of course
Jax, this is a serious matter and its attitude like that that allow people like Pedro Tan and the amcor cronies to get away with ruining your country and at the expense of your children and grand children. I hope you and others care… where is the outrage over people and companies that take advantage of this country at great consequence to all others.
See the article below. Amcor is run by crooks.
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Leeches in P1.2B computer scam now in DavOr
Davao Oriental Governor Cora Malanyaon and her people should be interested in this story for its dire implications on the province and its mining industry.
After nearly six years of legal battle, the Court of Appeals has given the go signal for the government to recover P1.2 billion in public money from Mega Pacific eSolutions Inc. (MPEI), manufacturers of the automated counting machines declared by the Supreme Court on Jan. 17, 2004 as unsuitable for use in the elections.
The CA decision overturns the Makati Regional Trial Court Branch 59 ruling by Judge Winlove Dumayas denying the government’s petition for the issuance of a writ of attachments despite findings that the company committed fraud in winning the bid to handle the automation contract of the Comelec.
According to documents filed with the Securities and Exchange Commission, its incorporators are identified as Willy U. Yu, Bonnie S. Yu, Enrique T. Tansipek, Pedro O. Tan, Johnson W. Fong, Bernard L. Fong and Lauriano A. Barrios, all Filipinos and residents of Metro Manila.
The corporate directors were the Yus, Enrique Tansipek, Tan and Johnson W. Fong. Tan was, in addition, the treasurer.
CA’s judgment follows an earlier Supreme Court decision dated Jan. 13, 2004, stopping the project when MPEI was found to be ineligible and citing grave abuse of discretion on the part of the Commission on Elections (Comelec) for awarding the automation project to Mega Pacific Consortium, a partnership that involved MPEI and five other companies.
Official records show that the MPEI was incorporated on Feb. 27, 2003, just six days before the March 5 bidding. On June 2, 2003, it executed the Automated Counting and Canvassing Project Contract with the Comelec in the amount of P1.248 million to cover the cost of supplying and delivery of 1,991 units of automated machines and other computerization equipment.
Why are we, an outback journalist from Davao showing interest in the case? Because of the people involved in this scam that should be also of interest to the people of Davao Oriental. One of the hottest issues in the province is the lingering war between mining companies locked in protracted battle over mineral resources. Identified by the DENR as today’s hottest “mineral corridors” along with Compostela Valley in the Davao Region, the people of Davao Oriental should be aware if they have the right people or the right companies now involved in the mining industry in the province, particularly Asiaticus Management Corporation (AMCOR).
Interestingly, some members of MPEI of the computers scam fame are also officers of AMCOR, the holding company of several mining firms operating in Barangay Macambol, Mati City and some areas in the towns of Gov. Generoso and San Isidro, in Davao Oriental.
Amcor has seven mineral companies under it, namely P.L. Goodman Mining and Development Corp., Oregon Mining and Development Corp., St. Patrick Mining and Development Corp., Hopewell Mining Corp., Mt. Peak Mining and Development Corp., Galactica Mining and Development Corp. and Blueridge Mineral Corp..
SEC documents show that Pedro Tan, who owns 75% of MPEI, is the Amcor’s chair, while Laureano Barrios, with one-percent share in MPEI, is the vice president for administration.
BHP Billiton, an Australian-owned mining giant was the foreign partner of the Amcor by virtue of a joint venture agreement (JVA), which the latter rescinded unilaterally, has filed a case at the Makati RTC against the former on some flimsy and legally baseless allegations.
The case remains pending before the sala of Judge Dumayas who granted an injunctive writ against the BHP Billiton that is now subject of a petition for certiorari before the CA.
The dispute between the Australian outfit and AMCOR has already reached the International Arbitration Board in Singapore.
The point we want to drive is that MPEI may spread its stink in Davao Oriental courtesy of AMCOR if the province is not appraised about the kind of leeches now trying to exploit its mineral resources.
Wala talagang makukuhang soporta ang BHP sa local government ng Mati dahil kahit ang mayor nito ay nabili na ng Amkor. Alam ko yan dahil dati akong nagatrabaho sa isang development project dyan sa Davao Oriental. Yung kotseng gamit ni mayor SUHOL YAN galing kay pedro tan. Kilalang kilala yang mga bata ni pedro Tan sa opisina ni mayor at governor dahil halos buwan-buwan kung dumalaw ang mga yan sa mga opisina dala ang DE-BAYONG NA KWARTANG PAMPADULAS. Ano na lang ang aasahan ng mga taga-Mati sa gubyerno kung yung mga lider nila mismo nabibili ng kung sinu-sinong punsyo pilato na walang pakialam sa magiging epekto ng kanilang negosyo sa environment ng Mati kahit na magsimatayan ang mga naninirahan doon. Mas malala siguro kung mga Intsik na ang pumalit sa BHP, eh wala namang mga social o environment standards ang mga yan. Pababayaan na lang ba nating lapain ng mga BUWAYANG ito ang bayan natin??? Ganun na ba tayo KADISPERADO na kahit mga kababayan natin ibibenta natin sa mga criminal na tulad ni Pedro tan para lang sa pera???
I did some fact check because I knew it was impossible for Amcor to have 60% claims on entire province for mining. HOWEVER, I was shocked to learn that they actually do CONTROL 30% of the entire province and can mine anywhere in those areas, kick people out of there homes, etc to build a mine. HOW IS THAT POSSIBLE? Davao Oriental will be a giant whole in the ground if Amcor is not stopped now! Mining can be good for Filipinos but not when run by vote rigging crooks like Pedro Tan. Everything I have heard about him has been suppppperrrr negative. I also know some one dat used to work for him in another province and she said the same thing, he is a pervert who is only successful in business because he bribes everyone who gets in his way.
If the the Province of Davao Oriental and its local officials allow the Big mining companies to operate in Mt. Hamiguitan and Pujada areas, considering THE FACT THAT they are just there for a short period of time doing business and destroying our abundant natural resources for their own benefits and interest, would just be tantamount to killing our generations to come.
Let us make Philippines the?”PEAR OF THE ORIENT SEAS” again. MARK JAPAN
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Mati is just simply fantastic city in the Philippines with its mysterious and lovely Mt. Hamiguitan as the backdrop; the pristine, white beaches of Dahican and the two guards of Pujada bay the islands of Waniban and Pujada and alot more surprises not to mention the hotsprings. I couldnt stop thinking about it.
Filipino in JAPAN
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kramiczzz says:
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February 22, 2009 at 11:18 am
Mt. Hamiguitan can surpass its beauty and loviliness to that of World Hiratge in Japan the “Iwojima Mountain” near HIroshima, if the Philippine Government and its People would help conserve and protect Mt. Hamiguitan which for me the Darling of the South. I love Mati, I was born there.
Filipino in JApan
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