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Renewables Can Make Mining a Sustainable Industry

by Fernando Penarroyo - June 08, 2021

There is no doubt that public perception of mining is that of a dirty, hazardous, and ecologically-destructive industry.  Sustainable mining is non-existent to critics because of the industry’s perceived large carbon footprint brought about by deforestation and large contribution to greenhouse gas emissions.

By its very nature, mining is also energy-intensive starting with the development and production processes requiring fuel for heavy equipment and machinery, up to the processing stage where metallurgical plants consume a huge amount of electricity. Energy expenses constitute approximately 30 percent of cash operating costs as majority of mining operations continue to rely on fossil fuel-based grid power or off-grid diesel-generated power. While accounting for up to 11% of global energy consumption, the industry is responsible for 22% of global industrial greenhouse gas emissions.

Despite the pandemic, the mining index has now recovered by an astonishing US$636 billion thanks to a boom in spending brought about by the current green and digital transition, and unprecedented infrastructure-focused stimulus packages initiated by many governments. The Philippines also benefitted from this development. According to a report by the Mines and Geosciences Bureau, metallic mineral production value ended 2020 on a positive note with a 1.13% gain from PhP130.74 billion in 2019 to PhP132.21 billion, a PhP1.47 billion increase.

As mining operations need a consistent and reliable source of power, and renewables becoming a mainstream energy source, mining companies have a material opportunity to lower costs and improve safety, reliability, and sustainability. The regulatory and risk mitigation landscape is also changing with many governments enacting legislation to bring their economies in accordance with the 21st Conference of the Parties to the 1992 United Nations Framework Convention on Climate Change or Paris Agreement goals of net-zero greenhouse gas emissions by 2050 and maintaining planetary warming below 2°C of preindustrial levels.

The industry and its investors need to urgently promote less carbon-intensive energy consumption to address future pressures on the climate in order for the public and stakeholders to be more receptive and appreciative of the contributions of mining. This article discusses how mining and innovative renewable energy technologies can combine to achieve the transition to a more sustainable energy system.

Attracting Investors’ Appetite Back to the Mining Industry

While demand for renewable energy continues to grow, investors’ and lenders’ appetite in mining is shrinking. The sector is facing a market that is smaller, pricier, and subject to an increasing regulatory oversight to help manage its exposure to environmental and social risks.

On the other hand, the cost of producing renewable energy has dropped dramatically making it more competitive with fossil fuels with technological innovation and huge investments from China pushing down the its costs. The opportunity lies in companies focusing on clean metal production and investors supporting cleaner and greener minerals extraction.

While mining companies see the opportunity, they are in a catch-22 situation. According to an Ernst and Young report, environmental, social and governance (ESG) issues are getting in the way of the green transition because how the needed minerals are produced is under more scrutiny  from governments, investors and end consumers. Institutional investors have pledged to completely remove fossil fuels from their portfolios by 2030 and banks have priced their loan products in correlation to the environmental risks of the borrower. BloombergNEF confirms the change in investor perspective most notably with the move by BlackRock – the world’s largest asset manager with $7.4tn on its books – to divest from companies not aligned with the policy goals of the low-carbon energy transition. Investors, governments and top companies like Amazon to JPMorgan Chase are injecting billions of dollars into sustainable projects.

In addition, corporate directors are required to ensure compliance with all applicable environmental laws and regulation and consumers are demanding sustainable business practices, persuading hundreds of major companies to issue net zero emissions commitments. Clients of institutional investors are also pushing fund managers to create sustainability-focused portfolios and banks are requiring more rigorous covenant packages in their loan agreements with extractive industry businesses. Mining companies have no choice but to engage in decarbonization in order to access capital.

How Renewable Energy is Transforming the Mining Industry

Minerals are critical to the clean, green, and digital transition. The growth of renewable energy is heavily reliant on commodities like copper, gold, lithium, cobalt which are used in the manufacture of new technologies that could one day replace fossil fuels in the global energy mix.

Copper supplies, for example, need to increase by as much as six percent (6%) per year to meet the goals laid out in the Paris Agreement. Copper is needed for wind farms, solar panels and electric vehicles, and generally essential to all power generation infrastructure. Solar power, expected by the International Renewable Energy Agency to reach 8,519 GW of capacity worldwide by 2050, relies on the supply of aluminium, copper and certain rare earth elements (including indium and cadmium) to produce photovoltaic (PV) panels. Wind turbines are made from steel and is therefore dependent on the production of iron. Certain rare-earth elements such as neodymium are needed for the magnets used inside turbine generators, as well as electric vehicle (EV) technology. Zinc and titanium are used mostly for wind and geothermal energy. Metals are also used in high tech devices like aircraft engines, rockets, and other military equipment, hence, the label of critical minerals.

Driven by the demand for EV batteries and renewable energy infrastructure in battery storage, the need for lithium, graphite, nickel, cobalt, platinum-group and rare earth elements is primed to explode. The World Bank predicts that production of these minerals could increase nearly five hundred percent (500%) by 2050. For cobalt, lithium, and nickel, projected demand is greater than known reserves. As the demand for renewables continues to grow, the mining industry indeed faces a bright future in becoming a recognized vital contributor to the clean energy transition.

With advancements in renewable energy technology and the commitment of some key industry players, there are many benefits for mining companies to switch to renewables. In addition to the financial botomline, renewables also offer important social, health, safety, and environmental benefits that are harder to quantify, which can potentially include:

  • Stability in power price, increased energy security, and reduced reliance on fossil fuels that are vulnerable to global price fluctuations - Solar and wind facilities have high upfront costs to build but input costs drop to near-zero when operational. The cost of battery production is also predicted to halve in the next decade, making large-scale energy storage capable of powering a mine’s operations even in the absence of a consistent supply;
  • Sustainable development support - Satisfaction of environmental and social criteria used to measure the sustainability and green credentials of a given project will be a pre-requisite for off-takers, investors, and lenders. Debt and capital markets will shift towards sustainable and green investments;
  • Lower greenhouse gas emissions and reduced carbon liabilities;
  • Energy efficiency in mine sites by synchronizing peak load with cheaper renewable energy sources, thus bringing down the overall cost of mining operations and maintenance; and
  • Additional revenue from selling excess generation capacity and providing ancillary services to grid operators.

RE Projects at Minesites Around the World

Realizing the benefits from efficient energy management systems, some miners are now driving down their energy costs by up to 25% in existing operations and 50% in new mines. Renewables, whose levelized costs have achieved parity with traditional fossil fuels, is a major component. These developments in the mining sector are part of a larger, global trend toward greater procurement of renewables by corporations.

A report by Fitch Solutions Macro Research revealed that around 1 GW of renewables was already built at mining sites across the world, and that another 1 GW is in the pipeline. Solar PV and wind are leading the way in installed renewables generation among mining companies, with thirty percent (37%) and fifty-nine percent (59%) share in 2017 respectively. By one estimate, investment in renewables just for mining will reach nearly US$4 billion by 2022, which represents more than a tenfold increase from a decade before. Several large mining companies have been integrating renewables at progressively higher ratios, and all four of the world’s biggest miners plan to source more of their energy needs from renewables.

Table No. 1. Renewable Energy Projects at Minesites Around the World

Mining Company

Renewable Energy Project

Anglo American

Signed a deal to run its Quellaveco copper mine in Peru 100% on renewables, effectively allowing the miner to deliver on its promise of powering all of its Latin American operations by green energy by 2022. The facility is expected to provide 150 MW for an initial eight-year period to Anglo’s Quellaveco, located in the Moquegua region.

 

Also inked a 15-year contract in Brazil to buy 70 MW of solar power from Atlas Renewable Energy as of 2022 for its iron ore operation in Minas Gerais.

Rio Tinto

Announced that it would reduce the annual carbon footprint associated with its Kennecott Utah copper mine by as much as 65%, by purchasing renewable energy certificates and permanently shutting its coal power plant. The mine’s electricity needs will now be supplied with 1.5 million megawatt hours (MWh) of renewable energy certificates supplied by energy company Rocky Mountain Power, primarily sourced from its renewables portfolio in Utah and including wind power from Wyoming.

 

Supported a 9MW wind farm in the Arctic near its mine.

 

Added an additional 5MW of solar panels, and advanced battery storage, to an existing solar/diesel microgrid to further decrease diesel use at a bauxite mine.

Gold Fields

Announced plans to predominantly operate its Agnew gold mine in Western Australia (WA) using renewable energy in partnership with global energy group EDL and involving an AUD112m ($77.59m) investment in an energy microgrid combining wind, solar, gas and battery storage.

 

In February 2019, Aggreko was contracted to create a hybrid solar-battery generation system to power the Granny Smith mine. The hybrid system will be integrated with the 24.2MW already generated by the natural gas engine station.

Antofagasta

Signed an agreement in June 2018 with utility company Colbún to make the Zaldívar mine the first Chilean mine to operate with 100% renewable energy. From 2020 the mine will be powered by a mix of hydro, solar and wind power producing 550 gigawatt hours per year, which is expected to remove emissions equivalent to 350,000 tons of greenhouse gases per year.

Newmont

In September 2018, UK-based solar company Cambridge Energy Partners (CEP) announced that American mining corporation Newmont had deployed CEP’s Nomad mobile solar power array at the Akyem gold mine in Ghana.

Zijin

In May 2017, UK-based power generation company Aggreko announced that it had signed a ten year deal to provide solar-diesel hybrid power to the Bisha mine in Eritrea owned by Chinese mining group Zijin. Aggreko provides 22MW of diesel and 7.5MW of solar-generated power for the Bisha mine’s copper and zinc operations.

Sandfire Resources

Added a 10.6MW solar power plant at the DeGrussa mine in Australia.

B2Gold

Added 7MW of solar panels to its Namibia mine to complement existing heavy fuel oil generators.

Caterpillar

Began marketing hybrid microgrids that incorporate solar, diesel and natural gas generators, and advanced storage options. Target customers include remote mines and drill sites.


While energy management practices using renewables are becoming more prevalent in the sector, some have yet to integrate renewable energy sources and enabling technologies. This may be due to the existing perceptions of renewables in terms of complexity, cost, reliability, and performance. Many miners still think of renewables like solar and wind, as the higher cost option for mines operating both on and off the grid. In addition to cost, reliability is another often-cited reason for not considering renewables.

However, these concerns have largely been addressed. When speaking of renewables, there are two facets to reliability. The first relates to the efficacy of the technology itself, while the second relates to intermittency. Intermittency is being addressed and demonstrated to be manageable since the viability of battery storage is now enhanced by new technologies and the cost of utility-scale batteries is starting to decline.

Incentivizing RE Technologies

Various factors are influencing the optimal electricity generation at mining sites. Some of these are external factors such as sun and wind conditions, grid-availability or grid stability, while some are directly related to the mining company like environmental sustainability policies and availability of capital. Other factors are related to the mining site, among which are the remaining lifetime of the mine, the load-profile or the need of process-heat.

Depending on several internal or external factors, a mining company may apply various business models for renewable energy:

  1. Plant Ownership
  • Self-consumption (plant ownership). The power plant is constructed on-site and the mine consumes the energy (electricity or process heat). An added option is selling excess electricity to the grid or to adjacent consumers.
  • Co-ownership (joint venture). The mining company and a third-party investor create a joint venture, which then acts similarly as an IPP and sells electricity to the mine.
  • Leasing or rental agreements. The mine has no investment costs, but instead pays a leasing rate, operates the renewable energy plant and consumes or sells excess electricity that is produced from the leased power plant.
  1. Power Purchase Agreement (PPA)
  • Standard PPA. The mine purchases the electricity at a predefined price from an independent power producer (IPP). The IPP can be off-grid or grid-connected and the PPA may contain flexible mechanisms such as link to diesel price or spot market price.
  • Synthetic PPA. Even if it is not viable for a mine to establish its own renewable energy source in close proximity to its operations, the rise in so-called synthetic or virtual PPAs provides an incentive for mining companies to invest in renewables. The IPP sells at market price and power marketers provide a guaranteed price and compensate for certain deviations. This business model requires a grid-connection and a functioning spot-market. A mine enters into an agreement directly with a renewable energy producer at a fixed price but pays a fee to the utility, via which electricity will pass through to cover the cost of managing the grid.
  • Energy-metal Swap. Basically it is a PPA, but the electricity is paid with mining products, which may eliminate some of the metals market price risk.
  1. Hybrid Microgrids. A key advantage of renewable energy is that it can power the energy needs of mining operations in remote areas, where the cost of building the infrastructure required to hook the mine up to the grid network or building a conventional power station will be significant. By having a dedicated off-grid renewable power source, a mining operation can meet all its energy requirements from green sources and make significant cost savings in the price it pays for electricity. Micro-grids involve a combination of power sources, usually diesel or natural gas generators combined with some renewable resources. Several mines have started down this path, integrating wind or solar PV generation with short duration lithium-ion batteries that produces 10-25% of a mine’s total electricity needs. The microgrid continues to be controlled by the diesel gensets with renewables acting as a reduction to the overall mine load. Fortunately, battery technology has advanced rapidly in recent years to keep up with the need to store increasingly large amounts of renewable energy at a lower cost and lesser physical footprint.

One of the keys to this relationship is the rapid development of suitable renewable power supplies to both existing and new mining operations. The sooner mining operators adapt their models to accommodate this development, the sooner they will be able to persuade investors, lenders, and off-takers to support them. Miners must soon decide whether to push forward in the direction of renewables or else they risk becoming high-cost producers in their respective commodities as renewables are increasingly becoming factors for competitiveness. Renewables should also be examined as part of a broader social and environmental agenda in addition to their financial proposition as a replacement for existing traditional energy sources.

Legacy Mines as RE Sites

Mine site conversion can provide ongoing and long term value in the form of an alternative income stream well after mining operations have ceased. Specific benefits can include reusing infrastructure, reduced cleanup and decommissioning costs, re-employment of a skilled mining workforce and/or new local employment opportunities, and a clean after-use for a mine site that can also create a potential source of carbon credits with tradable value.

Mine sites may prove to be ideal locations for the generation of renewable energy because they often cover extensive areas where wind and solar power structures will have less environmental impact and are therefore less likely to meet opposition. In addition, mine sites often already have the necessary electricity transmission lines and transport infrastructure in place, avoiding extra capital costs. Other forms of redevelopment may not be an option due to the remoteness of the site, or environmental conditions may rule out residential or commercial use without significant extra development cost. Although interest is increasing, the re-use of mine sites for alternative energy generation remains at a small scale but already in place in some sites.

Table No. 2. Renewable Energy Technologies at Former Mines Sites

Technology

Former Mine Sites

Wind Power

In the largest wind farm planned in Virginia, 166 turbines will be sited on over 4000 hectares of land disturbed by coal and hard rock mining activities. 99% of the land remains usable for other activities including farming.

 

In Scotland, Black Law Wind Farm near Forth covers 1850 hectares of abandoned coal mine land, grazing land and commercial forestry, with 42 wind turbines generating 97 MW, and plans for expansion potentially increasing the total generating capacity to 193 MW.

 

At the Hazlehead Wind Farm site in West Yorkshire, wind power is now being generated on the site of a former clay quarry spoil tip and landfill site, with three turbines and a proposed installed capacity of 6 MW.

Solar Power

The Geosol solar plant at Espenhain, Leipzig, constructed on a former lignite mine ash site, generates 5 MW and saves around 3700 tonnes of CO2 every year.

 

UK’s first large-scale solar PV farm developed by Lightsource Renewable Energy is located on the south-facing site of the former Wheal Jane tin mine near Truro in Cornwall. The solar farm houses 5680 panels with a peak generating capacity of 1437 MWh.

If not done responsibly, researchers have found that the mining necessary for producing more metals and creating the required renewable energy infrastructure could exacerbate threats to ecosystems. While they fully support the move away from fossil fuel production as an essential part of the fight against climate change, alternative energy production must not happen at the expense of biodiversity, rainforests, and the livelihoods of indigenous peoples.

In response to increasing corporate demand for clean energy, industry associations and coalitions have sprung up to make it easier for mining companies to enter into power PPAs with developers and utilities, or to self-generate their own electricity. There’s an optimal point in any proposed mining project where a decision needs to be made to integrate renewables, or else the mine life will expire before the full benefits of renewables can be realized.

Conclusion

If the mining and renewable energy industries pursue a strong symbiotic relationship, both will benefit in cost savings, reduced emissions and more importantly, preserving their social license to operate. This will be a very long transformation process but with new technologies in commercial development especially in battery storage, the mining industry has an incredible opportunity to drastically curb climate change impacts in its operations. Investors and lenders will also need to be part of the solution by revisiting the mining industry as an investment opportunity. They have to work with mining companies to implement ESG improvements and transition to sustainability. Instead of dismissing these efforts as industry “greenwashing”, critics and skeptics must exercise open mindedness in giving a chance to mining that, whilst historically perceived as dirty, is essential for the global aspiration of a clean and green energy transition.

 

Fernando “Ronnie” S. Penarroyo specializes in Energy and Resources Law, Project Finance and Business Development. He may be contacted at fspenarroyo@penpalaw.com for any matters or inquiries in relation to the Philippine resources industry. Atty. Penarroyo’s commentaries are also archived at his professional blogsite at www.penarroyo.com

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Marcelle P. Villegas - March 17, 2021

The Aftermath of the Carmen Copper Mine Landslide

After the tragic landslide that occurred at the open pit’s north wall at around 4:15 p.m. on Monday, 21 Dec. 2020,  Mines and Geosciences Bureau (MGB) 7 ordered the immediate suspension of the mine operations in Carmen Copper Corporation (CCC). According to MGB’s report last 22 Dec. 2020 on their official website, they stated “Initial investigations revealed there was no mining activity in the area on that day.” [1] On that day, landslide debris fell on the water at the pit bottom. This has an elevation of 41m above sea level. The landslide created a tsunami-like wave that reached an elevation of 105m in the southern portion of the pit where the workers were located. On 22 Dec. 2020, four fatalities were recorded along with six missing. [1] Further on, an assessment of the area was conducted by Director Pacquito Melicor Jr. (DENR Central Visayas Regional Executive Director), Director Armando Malicse (MGB 7 Regional Director), MGB Region 7 team, and Mine Safety, Environment and Social Development Division. CCC and Toledo City Disaster Risk Reduction and Management team continued their search and retrieval operations on a limited scale due to unstable condition. MGB 7 technical personnel continues its on-site inspection and investigation in accordance with R.A. 7942 (Philippine Mining Act of 1995) and the DENR Administrative Order Nos. 2010-21 (Consolidated IRR of RA 7942) and 2000-98 (Mine Safety and Health Standards). [1] A list of names of workers who died was given by CCC to the Toledo Police Station Chief, Lt. Col. Junnel Caadlawon. The second list contains the names of those who are still missing. [2] Those who died from the landslide are the following: Junil S. Lagola, age 44, from Barangay Don Andres Soriano, leadman Ernesto G. Caspe, age 54, from Dasmamac, Lutopan, checker Juan M. Tapang, age 44, from Don Andres Soriano Village, heavy equipment operator Dionisio Labang, from barangay Uling, Naga, backhoe operator/Anseca Contractor Those who are still missing are the following: Jose B. Carpentero, age 31, from Barangay Biga, heavy equipment operator from Mine Services Department Jonwel S. Herediano, age 33, from Barangay Don Andres Soriano, pump operator Simeon B. Laconas, age 33, from Barangay Biga, leadman - mine services department John Paul L. Resuelo, age 27, from Barangay Biga, heavy equipment operator Renante F. Sepada, age 35, from Barangay Bagakay, pump operator Alfred C. Tautho, age 33, from Barangay Mainggit, welder Carmen Copper Corp. (CCC) expressed their support and commitment to provide free education until college and allowances to all the children of its employees who died or are still missing after the tragedy last December. Based on a press statement of the company last 27 Dec. 2020, they have provided various forms of financial and other assistance to the immediate families of its deceased workers. [3] Additionally, CCC also offered employment opportunities for the victims’ next of kin, spouse and children. “CCC has given the same attention to the immediate family of the missing CCC employees and will afford them of the same commitments CCC provided to the family of the deceased,” according to the company’s statement. CCC also extended support to the family of the contractor who was among the victims. [3] On 8 Feb. 2021, Toledo City Mayor, Hon. Marjorie Piczon-Perales along with Vice-Mayor Jay B. Go met the families of the victims at the open shed of the City Hall Garden to provide them with “ayuda” or financial assistance. This was posted on the Toledo City Public Information Office social media page. The mayor granted the families of deceased workers the amount of Php15 million. For the victims who are injured, they were given Php5 million. Additionally, they were all given food packs. [4] On 29 Jan. 2021, the Office of Senator Christopher “Bong” Go distributed assistance to the Toledo City residents who were affected by the landslide in CCC mine. This was held at the Carmen Copper Recreation Center, Toledo City, Cebu. During the distribution, 248 families received meals, financial assistance, food packs, vitamins, face masks and face shields. Senator Go also gave bicycles and shoes to selected recipients, and computer tablets for their children to be used for online classes. Health and safety protocols were strictly implemented to avoid the further spread of COVID-19. The Senator was not present during the distribution but he sent them a video message with words of encouragement. [5] Senator Go also offered assistance to those who needed major medical operations such as heart surgeries. He urged those in need of such medical attention to seek assistance from any of the Malasakit Centers in the province. [5] While the local and national government along with CCC are busy sending assistance to the families of the victims of the December landslide, mining industry in general received backlashes from various groups who believe that the deaths and injuries could have been prevented. Barely a month before the landslide, there had been reports from residents of Barangay Biga in Toledo City who claim they warned officials of the MGB Central Visayas and CCC as well about large cracks in the village prior to the landslide. However, they said that their appeal was not properly addressed. [6] Biga Barangay Captian Pedro Sepada Jr. told a local newspaper in Cebu last 29 Dec. 2020 that prior to the landslide, barangay officials called for an emergency consultative meeting on 26 Nov. 2020 with representatives of CCC, MGB 7 and Biga residents to talk about the possible measures to be done after the cracks were discovered. Sepada said that MGB 7 Director Armando Malicse and CCC Vice President for Safety, Ignas Alburo were present. No representative from the Toledo City government was present. Sepada noted that during the meeting, they were not given a concrete response or alternative solution by CCC or MGB to provide assurance to the residents that they will all be safe while mining operations are ongoing. But Sepada said that they were simply told by MGB 7 and CCC officials that their place remained safe. [6] According to the local news reports in Toledo City, residents now believe the huge cracks caused the fatal landslide.      “It was only after the landslide last Dec. 21, that they declared our area to be unsafe within a radius of 600-meter distance from the pipeline of Carmen Copper. They now say it’s unsafe. What happened to their guarantee of safety before?” [6] Governor Gwendolyn Garcia said last December that they shall leave the investigation to MGB before implementing any course of action. She mentioned that she will leave it up to the MGB 7 to decide whether or not CCC has any liability.  Garcia said, “The investigation is not our expertise nor is that our mandate. MGB has already issued a suspension of operations and MGB is going to undertake the investigation. So let’s put things in proper perspective. While the investigation is ongoing, perhaps it is best to wait for the results.” [6] “I am not taking any sides. I want to be as objective as possible. However, there are some personalities who are not as objective because they have their own interest in Carmen Copper. They want to control so that they can do business with Carmen Copper. This is a warning to those who want to make it difficult.” Garcia also noted that CCC mining operations have given so much to Toledo City in terms of employment and the city’s development. She said that a thorough investigation is needed in order to prevent those with “personal interest” in the mining operations of CCC from ruining the lives of so many people working there. [6] Garcia assured the Province will provide assistance and support to the families of miners who died and those who remain missing after the landslide. [6] Renester P. Suraltra, a college professor wrote a commentary last December on SunStar Cebu with the title “Toledo tragedy: The untold story”. He wrote, “Who is always responsible for any mining accident? Is it nature or man? Who is at fault? Is it the bad weather or the safety engineer?” “Accidents may happen in the workplace but it can also be avoided. We can’t discount the fact that accidents can happen because of unsafe supervision, lack of situation awareness, and failure to identify the potential threat. That’s the job of the safety engineer under the direction and supervision of sympathetic and responsible management. If workers are dying frequently then responsible mining is a big issue.” “There is another lesson to be learned in the Toledo mining tragedy. We should never compromise safety and security. We can’t always blame nature out of man’s folly. One should think that the mining industry provides short-term revenue but long-term harmful effect on nature and the environment. Life is much precious than copper and gold.” [7] Acknowledgement: Ryan Peter Vivo Penaranda for Cebuano to English translation from some news articles   Reference: [1] Mines and Geosciences Bureau Press Release (22 Dec. 2020)."Carmen Copper Mine In-Pit Landslide Incident". [2] ANV (23 Dec. 2020). SunStar Cebu. "Listahan sa namatay, missing sa Carmen pit gipagawas". [3] WBS and PR (27 Dec. 2020). SunStar Cebu. "Carmen Copper Corp. commits to help landslide victims' families".  [4] Toledo City Public Information Office Facebook Page (8 Feb. 2021). "Families of the victims of the land in Biga Pit Gitagaan ug ayuda in Toledo". [5] Office of the Presidential Assistant for the Visayas Facebook Page (31 Jan. 2021). "Hundreds of Toledo City, Cebu residents affected by a copper mine landslide receive assistance from Senator Bong Go". [6] Sabalo, Wenilyn (30 Dec. 2020). SunStar Cebu. "Biga chief claims please ignored before landslide". Retrieved from - https://www.sunstar.com.ph/article/1881418/Cebu/Local-News/Biga-chief-claims-pleas-ignored-before-landslide [7] Suralta, Renester P. (27 Dec. 2020). SunStar Cebu. "Tell it to SunStar: Toledo tragedy: The untold story". Retrieved from - https://www.sunstar.com.ph/article/1881194

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Marcelle P. Villegas - March 17, 2021

First Offshore Magnetite Iron Mining in the PH

Last December, Apollo Global Capital’s (PSE: APL) subsidiary, JDVC Resources Corporation, announced that Department of Environment and Natural Resources granted them a permit to start the commercial operations of the country’s first offshore magnetite iron mining project. According to JDVC and APL consultant, Jun Herrera, the mining operations in Cagayan are expected to start by mid or end of February. He said that the first newly-built deep sea mining vessel arrived in Cagayan and needed to take shelter for now due to strong sea currents. In relation to this project, they assured the government that there will be minimal impact on the marine ecosystem as per the studies and survey conducted by a Singapore-based company. Their study shows that there is no coral or aquamarine life within the mining area which is located 150 meters below sea level. Herrera stated that three more vessels are expected to arrive this year. The vessel is capable of commercial extraction, sampling, testing and production of magnetite iron. [1] With regards to the apprehension of some residents of Ballesteros in Cagayan that this offshore mining operation will destroy the coral ecosystem, APL addressed the issue by stating that such assumption by the locals has no basis. APL stated last January, “We won’t even be mining in their waters. In the first place, our mining operation will be in the waters of Buguey and Gonzaga towns, and at a distance of over 14 kilometers. That’s more than two horizon lengths away from the shoreline.” Lazaro Ramos, a resident of Ballesteros, sent a formal complaint to DENR Secretary Roy Cimatu. Ramos warned them of the possible “catastrophe” that the offshore mining will bring about should it resumes. He mentioned in comparison a study conducted by Craig Smith from the University of Hawaii regarding the ocean seabed in the NE Pacific abyssal waters. APL, however, contradicted this argument by Ramos and said that the study by Craig Smith is applicable to a different part of the ocean and not necessarily comparable with the mining site in Cagayan.  “That’s a different part of the Pacific. It looks at the ocean bed more than 200 meters below sea level, whereas we can only go down to 150 meters with current technology. Moreover, the Smith study did not look at magnetite iron reserves. From the experience of countries like Indonesia, Japan and New Zealand, magnetite iron is known to be toxic to corals, fish and other aquamarine life.” Moreover, JDVC emphasised on the study results done by the Singapore-based survey company whom they commissioned to conduct a full “sea bottom profile” of its mining tenements off Cagayan. As mentioned, their study reveals no corals or aquamarine life in the area. APL also reported that they have done their part in coordinating with the locals and providing corporate social responsibility activities for the residents of Buguey and Gonzaga. “We’re proud to say that over 90 percent of the residents support us and are even anxious for us to get started.” According to Herrera, the municipalities of Aparri, Buguey and Gonzaga received funding from the Development Bank of the Philippines. These are the municipalities covered by the mining project. DBP grated JDVC a grant worth $8-million credit line for the magnetite iron mining project.   Herrera said, “We have proven to them [DBP] that it’s environmentally safe.” He added, “The DBP loan has zero borrowings yet as of now, hence, our company remains to be zero debts and internally funded by our shareholders. The DBP loan will only kick off once we have the letter of credit presented to the bank for the discounting the letter of credit of export buyers, to obtain a 90-day working capital, to fund the production of the ordered iron ore.” This project is seen as profitable, because magnetite mining has a strong market globally. In China, for example, they consider the steel industry as their “roadmap for their economic recovery”. Herrera mentioned that JVDC is an ISO-certified company. This means that there is an assurance that they shall comply with environmental standards. With all these assurances of a promising mining project ahead, some still have apprehension about it, perhaps rooting down to past incidents. In November 2020, the Cagayan Valley region was greatly affected by the Super Typhoon Rolly and Typhoon Ulysses. The two simultaneous typhoons are classified as category-5 and category-4 tropical cyclones respectively. As an effect, the devastation was great marked by massive flooding in Isabela and Cagayan provinces. [2] The residents in those areas blame the National Irrigation Association (NIA) for the flood when they opened the floodgates of the nearby Magat Dam on the last minute. The two provinces were submerged in high waters as high as a two-storey building. NIA on the other hand firmly contradicted such claim and explained that the release of water from Magat Dam was not the main cause of flooding. NIA points out that proper and sufficient warnings were given to those communities in low-lying areas. Additionally, they stated that the volume of water released was only 25% of the carrying capacity of the Cagayan River. The river is the longest stream in the Philippines that serves as the catch basin of the nine provinces in three regions. [2] Aside from the two typhoons, a second issue related with the river was about the illegal magnetite mining at the mouth of the Cagayan River in the municipality of Aparri. The provincial board of Cagayan appealed to President Rodrigo Duterte in 2019 to stop the dredging operations of Pacific Offshore Exploration, Inc. (POEI) due to potential threat to the environment and the livelihood of the locals. The Chinese company Zhong Hai Gravel Group headed by Dong Biao Su is POEI’s partner in that operation. The company was controversial recently after the Bureau of Customs and the Philippine Coast Guard raided its Zhonhai 68 dredging vessel during a maritime security patrol off the Bataan coast. “Bureau of Customs are poised to issue a warrant of seizure and detention against the undocumented vessel.” However, the Chinese Embassy in Manila claimed that the vessel is technically non-Chinese because it is registered under an African flag of convenience. [2] Currently, JDVC Resources Corp. is the first and only company that was granted a declaration of mining project feasibility by Department of Environment and Natural Resources (DENR) to extract magnetite sand and other minerals in Cagayan. In response to Cagayan’s decade-old black sand mining problem, the launching of Cagayan River Rehabilitation Project last February 2 is seen to solve the problem. DENR stated early in February that mining regulations will strictly monitor the extraction of magnetite or black sand in the coastal waters and rivers of Cagayan province. [3] With regards to APL’s/JDVC Resources Corp.’s offshore magnetite iron mining, MGB Director Wilfredo Monaco stated the project has gone through an environmental impact assessment system processes and the company has secured an environmental clearance certificate (ECC) from the Environmental Management Bureau (EMB). [3]  “JDVC has undergone environmental impact assessment and the company was issued an ECC, which means environmental issues have been considered by the EMB,” Moncano stated. Magnetite or black sand mining is supposed to be banned in the Philippines, but Moncano explained that the extraction of the said mineral offshore is allowed. He said, “Mining in shoreline is prohibited but offshore mining is allowed.  If it is at least 1,500 meters from the shoreline going out to the sea, it is allowed.” He also assured that the company’s operation will be monitored by the MGB and EMB, that in case of any destruction or damage to the coastal or marine ecosystem by JDVC Resources Corp., there will be a corresponding penalty under the mining law. “What is important is that the JDVC will not cause damage to the coastal or marine ecosystem,” he said. As for mining in rivers like in the Cagayan River, it is also allowed as long as the primary purpose of the project is river rehabilitation or restoration. One example is their plan to extract some 7 million metric tons of sand to remove three of the 19 sandbars along is stretch. Moncano said that the DENR-MGB will also monitor the dredging operations because while the activity is primarily flood mitigation, the minerals to be extracted include magnetite sand. [3] Moncano stated, “Black sand mining is also part of the purposes that’s why we will assess the mineral content of the river channel. If the magnetite sand contained surpasses the threshold of 6 percent, we will charge the company of 4-percent excise tax.” He said that every shipment will undergo mineral assessment. (--Marcelle P. Villegas, PRJ) References: [1] Flores, Alena Mae S. (31 Jan. 2021). Manila Standard. "Apollo Global announces subsidiary’s start of magnetite mining operations in Cagayan". [2] Gamboa, J. Albert (5 Feb. 2021). Business World. "Building back better in Cagayan Valley". [3] Mayuga, Jonathan L. (4 Feb. 2021). Business Mirror. "MGB exec vows to keep tabs of Cagayan River magnetite quarry operations set to start in February".

Mining

Marcelle P. Villegas - March 12, 2019

How wars and historical events affected the mining industry

By Marcelle P. Villegas For the past centuries, the mining industry in the Philippines was greatly affected by the changes of government or colonisers, events around the world and more. It seems that whenever there is war, there is also a rise in the demand in certain mineral resources or a fall in the production rate of some minerals. August is History Month in the Philippines as promoted by Government and Education sectors. The Philippines is rich in natural resources, cultural heritage and more noticeably, we are rich in history which brought progress or hindrance in economic growth through the years. Last August, during the Philippine Mining and Exploration Association (PMEA) Monthly Membership Meeting, one of the keynote speakers is Mr Hernulfo “Nonoy” Ruelo, Geologist Consultant. The title of his presentation is “Copper-Gold Discoveries and Mine in the Philippines - Understanding the Past, in order to make sense of the Current, and the Future”. It was a well-researched report and analysis on how historical events, like wars or change in leaders, affected the mining sector and the socio-economic status of the country. The presentation takes us back in time with some rare vintage photos from the past. During the pre-Spanish Period, the earliest use of metal in the Philippines by our Filipino ancestors was the use of copper for ornamentation, not for tools or currency. Other metals used were gold and tumbaga (copper alloyed with gold). “Gold was the major form of ‘currency’ among the early Filipinos and one of the first things they [ancestors] taught their children was the knowledge of gold and the weights with which they measured.” (From the book by Evelyn J. Caballero, 1996. “Gold from the Gods: Traditional small-scale miners in the Philippines”. Giraffe Books, Quezon City.( p 196 and 263) On note, the pre-colonial mining methods had no environmental impact on land, water, air and people. Pre-Spanish Period Mining in the Philippines started in the 3rd century when gold was traded with China and the Javanese empire where the height of this trade was during 12th to 14th century. The Chinese were the first foreign miners. Gold is both a commodity and a medium of exchange. When the Spaniards arrived in the 1521, gold was already being mined, traded and used as jewelry or ornamentation by the native Filipinos. In fact, 16th century Filipino noblemen were decked in gold. Colonial Period Under Spain 1500s - 1898: Paracale and Cordillera were the oldest goldfields. From 1500s - 1700s, gold was one of the tributes collected by the Spanish government and given to the King of Spain. In 1583 and 1595, an expedition was sent to mine in Cordillera but was a failure due to the resistance of the Igorots. “Gold mining before the coming of the Americans was primarily in the hands of enterprises organized in the Philippines by Spaniards and Chinese mestizos and Filipinos, with a few other companies trying, without success, to produce commercially.” (Ref. - Wirkus 1974) In 1600 to 1700, about 10,000 ounces of gold per annum were shipped to Spain, and the gold shipments to Spain increased from 1800 to 1895. For copper, the Spaniards opened the first copper mine in the country in 1842, called the Carawisan copper mine in Antique province. From 1864 to 1874, the Contrabro-Filipino Company operated Mankayan Copper Mine. Gold mining made its comeback in commerce in 1892 where concessions to foreigners were first granted. The British explorer, Frank Karuth of Philippine Mineral Syndicate, led the commercial-scale hard-rock and alluvial gold operations in Paracale District until 1895. (Ref. - Chaput 1987) Philippine Revolution 1896 – 1902: With the rise of the Philippine revolt against Spain, in 1896, mining operations at Paracale dwindled until 1902 when the Filipino-American War ended. The Organic Act of 1902 was created which organized companies, issued patents, and established the Geological & Mining Science Department. By 1927, gold was the third best export commodity and initiated by the Philippine (Manila) Stock Exchange. In the following years, the Mining Act of 1935 was released (Commonwealth Act 137) which introduced the Regalian Doctrine, the concept of Mining Lease, and the establishment of Bureau of Mines. The Americans invested US$ 34.2M in gold production. Mining for copper was reopened in 1936, the same time when the Japanese savvy for copper was high and led to the ‘discovery’ of the first large porphyry copper deposit in the country. Commonwealth Period 1937 - 1941: This period in Philippine history was considered a golden era when Manila was highly modernised and was one of the most beautiful cities in Southeast Asia. In fact, in 1937, we had the best and well-equipped airport in the Southeast Asia, the Nielson Airport. (This is now Ayala Triangle Park in Makati City, and the original Nielson Tower is now “Blackbird” Restaurant.) Although this elegant airport was primary used as an aviation school, it also paved the way for trade and commerce for foreign investors. Philippine Airline made its first commercial flight in 1941, from Nielson Airport to Baguio. The Philippines was the largest gold producer in Asia and second only to California in world production. During the American period, 9 million oz of gold was produced from 1906 – 1941. Japanese Occupation 1942 – 1945: Being a colony of United States of America, the Philippines got itself involved in war against the Japanese who invaded Manila in 1942. The Japanese took over Lepanto and the Hixbar mines (Rapu-rapu) and was able to mine and extract 11,000 tonnes of copper. No gold production was recorded. With the aggressive strategies of conquering their neighboring countries, Japan was unstoppable that time in their collection of natural resources that were needed to fuel their warships and planes and the production of weapons. Battleships Musashi and Yamato where the two giants in naval power that made Japan feared by other nations. The two battleships were defeated though in the Philippines during the Battle in Leyte Gulf in October 1945 which paved the way to the Liberation of Manila and eventually the whole country. Post-war Reconstruction 1946 – 1954: Those post-war years were hard times for all war-torn countries. However, with the need for repairs infrastructure after WWII, there was an increase in the global demand for copper. Some gold mines in the Philippines were rehabilitated but the problems were lack of capital and low market demand. Copper production re-started in 1947. Since Manila was the ground zero and battlefield of the war that ended WWII in the Pacific (Battle of Manila in 1945), there were serious damages in the country’s economy and on the mining industry. Korean War 1954 – 1960: For the Filipino soldiers who fought the Japanese during WWII, the Korean War was the first time for them to fight a battle in a foreign land. Although this war affected Southeast Asia directly, the gold prices maintained. However, in mid 1950s, the gold mines collapsed due to a recession period. The copper price rose slight due to high world demand. More Philippine copper mines opened. Vietnam War 1960-1975: In 1972, U.S. President Nixon took dollar off the gold standard. It was fixed at $35 since 1934, but gold prices are allowed to float free which devalued dollar to $38. In 1973, world gold price jumped from $38 to $120. World copper rate hit high at $0.90 in 1974. World copper mine production was at its peak. Martial Law 1972 - 1986: During Martial Law in the Philippines, copper price trended upward where the country’s copper production continued and boomed in 1980 where it reached its peak. It was in 1980 when Philippine copper production was recorded the highest at 306 Kt. However, the World Oil Crisis in 1973 - 1980 brought about a decline in copper demand. World Recession in 1982 – 1984 pulled down the copper prices. Philippine inflation devalued the Philippine peso and there was an increase in production costs, materials and equipment. The Global recession resulted in a decline in copper demand. The Philippine gold production was sustained and gold prices surged from 1978 to 1980. The modern Gold Bloom in 1980s brought about the rise of unregulated Small Scale Mining. In summary, the explanatory variables of growth and decline in PH copper industry in the 1950s-1980s are: - For Copper resources: risk capital or investments, development in the world’s copper market, technology, human capital in mining, domestic social, legal, and political environment . - For the gold industry: gold resources, competition, commodity price, production costs, technology (bulk mining, milling, treatment), damages – natural & man-made disasters (Reference). T.M. Santos 2001 . Growth of Copper Production: Determinants and Empirical Evidence. Social Science Diliman, July-December 2001. 2:2, 1-49.) There were other historical events in the Philippines that followed like: EDSA Revolution: 1986-1992 - gold averaged $381, copper $1.02 – There was investment uncertainty and several mines closed. New mining laws were crafted like the 1991 RA 7076 (Small Scale Mining Act). The 1987 Constitution replaced Leasehold into Agreements system. From 1990s – 2004, there was collapse of the local mining industry. However from 2004 – 2009, there was a revitalization of the mining industry with EO 270 National Policy Agenda – Mineral Action Plan. Gold price surged from $410 to $873. Copper production hit lowest in 2004 at 16 Kt since 1957. The year 2005 brought global gold boom where Philippine gold-copper mines had expansion and reopening. The Aquino Administration from 2010-2016 was within the Global Mining Boom period (2010 - 2013). It was a successful period for Philippine mine exploration, prospect drill-testing, and resource evaluation drilling. In conclusion, Mr Ruelo presented a list of challenges that miners will need to face at the present time, namely: - Fewer outcropping “easy-to-find” deposits are now left except in high-risk and “inaccessible” areas. - Current mining operations will encounter increasing real costs (labor, materials, energy, environmental, community impact) that will affect production. - The next generation of lower-grade copper/gold projects require significantly higher metal prices to justify development. - We need to discover high-quality or better gold/copper resources, even deeper ones that can be economically mined – e.g. in greenfields and brownfields.

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Industry

Abe Almirol - June 23, 2021

Cagayan River Rehabilitation: Initiatives from Ridge to Reef

After two severe weather disturbances that took place in the first half of November 2020 heavily hit eight regions in the Philippines, Pres. Rodrigo Duterte immediately signed Executive Order No. 120 creating the Task Force Build Back Better (TF-BBB) to initiate a comprehensive and integrated recovery. Cagayan and Marikina valleys suffered the heaviest damage and human casualties as floods and its aftermath landslides placed many parts of the country in a state of calamity for weeks. Typhoon Rolly (international name: Goni) made its landfall on 1 November 2020 and several days after its onslaught and in almost the same path, Typhoon Ulysses (international name: Vamco) carried with it heavy rains as it reached the Philippine shorelines on 11 November 2020. Tuguegarao and Marikina cities were in deep floods as Ulysses traversed the Philippine area of responsibility. The National Disaster Risk Reduction Management Council reported over 2.3 million people affected across eight regions in the country. Reports indicated that 23,089 individuals displaced were moved to evacuation centres while 46,987 individuals displaced stayed outside evacuation centres. The death toll from Ulysses has reached more than 70. It has severely damaged property and infrastructure in some areas. Videos circulating in social media showed floods reaching the roofs in some parts of Cagayan and Marikina City. Two agencies, the Department of Environment and Natural Resources (DENR) and the Department of Public Works and Highways (DPWH), were given the lead role in a task force working on an operational mode adopting the “whole-of-society approach”. All government agencies and instrumentalities were mandated by EO 120 to take part. After eight months of work, the TF-BBB has made significant gains in pursuing rehabilitation and post-recovery initiatives. DENR has realised that problems such as this needs to consider all factors affecting the whole watershed catchment basin where floods occur. Environmental advocates and experts often refer to this approach as the ridge-to-reef initiative. "In the months since we set out to work in November last year, we have now set into motion significant post-disaster recovery initiatives in three priority geographic areas involving the restoration of Cagayan, Marikina, and Bicol River basins," DENR Secretary and TF-BBB chair Roy A. Cimatu said. Cagayan River Dredging: Agencies in Action Cimatu and TF-BBB co-chairperson Secretary Mark A. Villar of the Department of Public Works and Highways (DPWH) led the ceremonial dredging of sandbars along Cagayan River’s constricted midstream and planting of Bamboo seedlings on the riverbank of Barangay Bangag in the town of Lal-lo, Cagayan last 2 February 2021. After removing the sandbar obstacles that impede water from flowing freely, the roots of planted Bamboos should serve as a soil binder to keep the riverbank intact in the future. There are three priority sandbars to remove near the Magapit bridge, measuring about 235 hectares with an estimated volume of seven million cubic meters, according to TF-BBB statements captured by the media. The first phase of DPWH dredging operations targeted this choke point which a past study identified as the cause of flooding in Tuguegarao City and other settlements near the riverbanks. TF-BBB in Region 2 is chaired by Regional Executive Director Gwendolyn Bambalan of the DENR and co-chaired by Regional Director Loreta Malaluan of the DPWH. In her message during one of the virtual sessions of the task force, Director Bambalan lauded the different government agencies for their support to the Build Back Better initiatives in the region. "The regional TF-BBB is not only addressing the protection and conservation of the environment but also the welfare of barangays and families affected by the restoration of the Cagayan River," Director Bambalan said. In that meeting, the DPWH discussed the dredging operation and riverbank protections works. The Department of Human Settlement and Urban Development gave an update on the status of resettlement projects while the Office of Civil Defence reviewed the improvement of systems and essential services. The Department of Trade and Industry also presented its accomplishments on livelihood projects. For its part, the Department of the Interior and Local Government presented its agenda for strengthened governance and mainstreaming of disaster-risk reduction and climate change action. Representatives of the Land Registration Authority also attended the meeting. The LRA will be the partner agency of the DENR for the easement recovery along the Cagayan River. The Technical Education and Skills Development Authority (TESDA) has trained residents who were eventually hired as laborers and equipment operators to help carry out the dredging operations. TF-BBB has also engaged the Department of Labour and Employment (DOLE) to provide employment assistance to 120 residents for the planting and nurturing of bamboo trees in Tuguegarao City and the towns of Alcala, Enrile, and Gattaran. This will be implemented through DOLE's "Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers" or TUPAD program. Magat Dam blamed In many reports published and echoed in mainstream media and social media, the opening of the Magat Dam floodgates was blamed as the cause of flooding. The National Irrigation Administration (NIA) came out with a fact check to clear its liability. Even the Senate initiated moved to investigate the matter. NIA’s acting department manager of Public Affairs and Information Office, Eden Victoria Selva, came up with a comprehensive technical response, explaining that the Magat river is just one of the many river systems draining to the Cagayan River. “It is noted that the carrying capacity of the Cagayan River is 25,400 m3/s while the maximum volume of water released from the Magat Dam is only 6,706 m3/s indicating that water discharge of Magat Dam due to Typhoon Ulysses is not the main cause of massive flooding in the provinces of Isabela and Cagayan,” Selva said in an article that appeared in INQUIRER.net on 10 June 2021. The controversial statements blaming the Magat Dam’s release of water also aroused public perception that points responsibility to the occupants of watershed areas in the upstream of Magat River. Those affected by the floods were quick to call for punitive actions against watershed occupants, including calls to ban mining in the province of Nueva Vizcaya, including those issued with legitimate permits to operate. Sharing the Burden of Watershed Restoration and Protection In the watersheds upstream of the Magat River, a 10-year project co-funded by the Republic of the Philippines and the Japan International Cooperation Agency is nearing completion. It is called the Forestland Management Project (FMP), a sequel of the several forestry sector projects implemented by the DENR’s Forest Management Bureau in the last 30 years. FMP is a holistic approach in Community Based Forest Management Agreement (CBFMA) areas in sub-watersheds in the upper areas of the Cagayan River, particular the provinces of Nueva Vizcaya, Ifugao and Quirino. FMP is also present in the Upper Pampanga River in Nueva Ecija and in Jalaur River in Iloilo. Anselmo Cabrera, an Institutional Development Specialist working at the Central Project Management Office of the FMP at the DENR Central Office, has proposed a cost sharing mechanism that Watershed Management Councils should develop for mainstreaming. He said there must be a system where every citizen or institution using water can pay for environmental services performed by duty-bearers protecting and maintaining watersheds. Through a cost sharing mechanism, communities living in critical watershed areas will be compensated for their efforts to ensure there is sufficient forest cover. With this scheme, upland farmers could minimize soil erosion by planting permanent crops instead of clearing spots to plant vegetables and other short-term cash crops. The FMP has so far initiated several hundred of hectares planted with coffee, Guyabano, Rambutan, and other fruit bearing trees. About 35 people’s organizations benefitting over 5,000 households, mostly from Kalanguya, Ibaloi, Isinai, Iwak and Ifugao indigenous cultural communities, LGUs were also called to take a more active role in watershed protection. Cabrera welcomes the favourable result of the Mandanas Ruling, where local governments won in getting their share in revenues collected outside the Bureau of Internal Revenue. The Supreme Court has ruled that LGUs can now get a share from the collection of the Bureau of Customs and other national revenues. Information available from the Department of Budget Management (DBM) revealed LGUs, which include provinces, municipalities, and barangays, could get as much as 37% increase in their internal revenue allotments from the national government in 2022. A DBM advisory directed LGUs to use these additional money to fund the full devolution of services, of which, integrated social forestry is one. Nueva Vizcaya Governor Carlos M. Padilla made a friendly overture when nasty comments were posted over social media by angry residents of Tuguegarao City who wallowed in deep floods for several days after Typhoon Ulysses. Some people accused people in Nueva Vizcaya of denuding the watersheds. Relief goods from Nueva Vizcaya were immediately sent in flood-stricken areas, a gesture that Cagayan Governor Manuel Mamba deeply appreciated publicly. He also called for collaboration between people downstream and upstream of the Cagayan River to understand and take actions together. During the last Watershed Management Council meeting, Gov. Padilla reiterated the importance of collaboration and networking to save watershed commons. He recalled a 2018 agreement with stakeholders which includes big water users such as SN Aboitiz and NIA, the two institutions managing the Magat hydropower and irrigation dam in Ramon, Isabela. Also included in the public pledge of support to the 2018 Nueva Vizcaya Declaration on Water are thousands of farmer’s organizations using water resources for irrigation and water utilities, like Solano Water and other entities providing services to majority of urban households. Watershed Management Councils were potent avenues for collaboration in watershed protection and maintenance. In Davao, a bulk water project implemented by Apo Agua Infrastructura, Inc. mentioned in a webinar that the Watershed Management Council has played a crucial role in mobilising communities and people. The TF-BBB in Cagayan Valley experience could be one of the best in the current administration’s whole-of-society approach in big projects. By mobilising both government agencies and communities, it has covered all areas of concern from the top of mountain ridges to the reefs in the sea. It would be exciting to measure if the impacts are indeed better ten years from now.

Mining

Philippine Resources - June 22, 2021

DENR studies possible lifting of ban on open-pit mining

The Department of Environment and Natural Resources (DENR) is still studying the possible lifting of the ban on open-pit mining, Malacañang said on Thursday. Presidential Spokesperson Harry Roque clarified that Executive Order No. 130, signed by President Rodrigo Duterte on April 14, does not include a lifting of the ban on open-pit mining. EO 130, which lifts the nine-year moratorium on mineral agreements, is to spur economic growth and support projects and programs of the government. “There is nothing in the executive issuance on mining which is EO No. 130 which lifts the ban on open-pit mining. I have conferred with [DENR] USec. Benny Antiporda and he says the matter is still being studied by the DENR,” Roque said in a Palace press briefing. He, however, reiterated that open-pit mining remains unacceptable for Duterte. In November 2017, Duterte said he agreed with the open-pit mining ban given the environmental damage it causes. Duterte, in his third State-of-the-Nation Address (SONA) on July 23, 2018, also warned the mining industry not to destroy the environment, saying environmental protection is one of his government’s priorities. “To the mining industry, I say this once again and maybe for the last time, do not destroy the environment or compromise our resources; repair what you have mismanaged,” Duterte said. Roque reiterated Duterte’s call to the mining industry to find other ways to extract minerals without destroying the environment. “But I understand from USec. Benny Antiporda that both the President and Secretary [Roy] Cimatu agreed that the mining industry must reinvent mining in a manner that would ensure that it is sustainable and would cost the least damage to the environment,” he added. Open-pit mining is allowed under Philippine law, but Duterte has rejected previous recommendations to lift the ban. The Philippines is the world’s biggest supplier of nickel ore and also among the top producers of copper and gold.

Construction

Philippine Resources - June 21, 2021

Villar: Estrella-Pantaleon Bridge On-Track for July 2021 Opening

Photo Credit: Department of Public Works and Highways Public Works and Highways Secretary Mark Villar reassured on Friday, June 18, 2021 that remaining civil works are being fast-tracked to open the new and modernized Estrella-Pantaelon Bridge by next month. “We are here on-site to show you that all substructure and superstructure of the Estrella-Pantaelon Bridge have been constructed and we are confident that we will be able to finish remaining works on approach road and ancillary/miscellaneous works by July 2021,” said Secretary Villar. Secretary Villar together with BCDA President & CEO and Presidential Adviser for Flagship Programs and Projects Secretary Vince Dizon, Transportation Secretary Arthur Tugade and DPWH Undersecretary for Unified Project Management Office (UPMO) Operations Emil K. Sadain inspected the substantially completed Estrella Pantaleon Bridge following an on-site Press Conference on Progress Update of Build, Build, Build Program. Citing a report from Undersecretary Sadain, Secretary Villar noted that the ongoing bridge project across Pasig River linking Estrella Street in Makati City and Barangka Drive in Mandaluyong City is now 93 percent complete. When completed, the new Estrella-Pantaleon Bridge widened from two (2) lanes to four (4) lanes is expected to accommodate as much as 50,000 cars daily, improving traffic situation in the area and decongesting the Epifanio delos Santos Avenue. The bridge-modernization project is implemented by the DPWH-UPMO Roads Management Cluster 1 (Bilateral) and is funded under a Chinese Grant together with Binondo-Intramuros Bridge.   Article Courtesy of the Department of Public Works and Highways

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