The Philippines, from many indications, appears to enjoy strong potential relative to the development of a strong, vibrant, and successful mining industry. To date, however, community opposition to mining in several parts of the country appears to enjoy more print space and airtime as opposed to the potential economic and social benefits of fostering the growth of the industry.

To a large extent, the seeming lack of effective communication by miners may be to blame for the present predicament. Obviously, the mining industry needs to do a lot more in terms of effectively explaining its value proposition. And the challenge of the Chamber of Mines, through its president, Philip Romualdez, during the recent mining congress for miners to support corporate social responsibility initiatives is a step in the right direction.

Regulators can also help clear the air by ensuring transparency and accountability in the approval of mining permits, and through their assistance in facilitating effective consultations between potential mining investors and local governments and host communities. While painstakingly slow and tedious, this process is a big help in assuring all stakeholders of the benefits of safe and responsible mining.

It is sad that Mindoro, for one, is now grappling with a number of mining-related cost-benefit issues, with no clear indications as to how the matter will eventually be resolved. Norway-based Intex Resources claims that Mindoro Island’s nickel resources have been confirmed to be one of the largest deposits in the world, and this is considering that only one-third of a proposed mining-tenement area has actually been explored.

The proposed project covers 11,216 hectares in four towns: Victoria, Pola and Socorro in Oriental Mindoro, and Sablayan in Occidental Mindoro. Information presented by the company during the recent Mining Congress indicates that the proposed mining site has the capacity to regularly produce 50,000 tons of nickel, 200,000 tons of metallurgical chromite, 15,000 tons of cobalt salt, and 175,000 tons of ammonium sulphate as byproduct.

Incidentally, as fertilizer, ammonium sulphate is most suitable to rice production, and its local availability will help cut the country’s need for imported non-urea fertilizer.

In addition, the project will entail over $2 billion in investments that is supposed to benefit the Mindoro provinces. To date, in line with the project, 12,000 residents reportedly now have access to clean drinking water and provided basic health care, in addition to children improving their reading skills through a reading program.

Direct employment is estimated at 2,000 people during operation, with priority to Mindoreños. During construction phase, as many as 8,000 people are expected to be employed. There is also substantial additional employment expected through the multiplier effect and the development of upstream and downstream industries. Intex also promises education and technology transfer to the provinces, the upgrade of infrastructure and transport facilities such as harbor and roads, and more important, substantial tax revenues for the local and national governments.

Obviously, significant taxes to be earned will provide local governments in Mindoro revenues to fund infrastructure and social projects. And all this in line with the company’s offer to immediately replant and restore any mine area immediately after operations. Intex refers to this as sequential mining and rehabilitation. The company claims the mine site can produce pure nickel in a very efficient manner, and using a process that is environment-friendly.

But despite all this, some people in Mindoro are still reportedly against the project. A multisectoral alliance was even reported to be planning a prayer vigil and hunger strike on November 17 at the Department of Environment and Natural Resources (DENR), with the support of Gov. Arnan Panaligan of Mindoro Oriental and Gov. Josephine Ramirez-Sato of Mindoro Occidental and local church leaders, to protest the issuance of a mining clearance to Intex Resources last October 14.

Previously, the townsfolk of Sablayan wrote to President Arroyo as well as Environment Secretary Lito Atienza to protest the Intex project, citing possible irreparable damage, particularly to the farming sector. Sablayan, according to them, produces 300,000 metric tons of rice every year, and this is going to be put at risk by the proposed mining venture.

They also noted that in a July 7 letter of the regional director of the Department of Agriculture to Secretary Atienza, Sablayan town was cited as a major rice and corn producer in Occidental Mindoro, and that “any major mining operation will greatly affect agriculture production and endanger social economic conditions in the area.”

From recent typhoons, they said “Sablayan experienced heavy floods, landslides, soil erosion and scouring, which rendered its national highways impassable for several weeks and caused huge and serious damage to crops, livestock, and properties. This is excluding the opportunity loss occasioned by this major economic disruption.”

“Undoubtedly, large-scale mining will deplete Sablayan’s remaining forest and vegetation cover, aggravate river and coastal siltation, and increase incidents of landslide and soil erosion, and even possibly wipe out Sablayan from existence,” the Sablayan letter stated.

As I have always argued, more data and studies should be presented by both sides relative to the project’s cost and benefit, its economic and environmental as well as social impacts, and whether  it will truly benefit the country, especially the people of Mindoro. Obviously, Intex, through its local partner Aglubang Mining, needs to quickly work on securing the community’s support for the project.

Sadly, it seems that the stakeholders choose only to present their respective sides, when in fact they are looking simply at different sides of the same coin. While the community cites possible damage to agriculture, it fails to recognize the proposed project’s other benefits. On the part of Intex, with respect to agriculture, it makes mention only of helping increase fertilizer production. I am certain that gaps can be filled in, and the issues resolved, if only both sides will actually bother to talk to each other with an open mind.

Comments to This e-mail address is being protected from spambots. You need JavaScript enabled to view it