2011_caraga for sale

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CARAGA: FOR SALECaraga Mining Situation Under the Noynoy Aquino Presidency 2011 October (Draft)

Caraga Region, under the Gloria Macapagal-Arroyo government, became themining capital of Asia. Hectares of forest land and mountains– ancestrallands of the Lumad people – were offered to foreign mining companies. Whatfollowed was a deluge of mining operations. Within a couple of yearslandslides and flash floods struck the region which affected lives and thevery livelihood of the people of Caraga. Oplan Bantay Laya 2 was unleashedto quell the people’s growing opposition to the anti-people policies andprograms of the Arroyo government. Areas with and targeted for miningoperations especially those with movements that opposed mining, werehighly militarized. This resulted to several instances of evacuations of wholecommunities and caused economic dislocation to the Lumad and peasantcommunities targeted.

Promising to be the antithesis of his predecessor, Noynoy Aquino spewsrespect for human rights, promises an end to poverty and called the Filipinopeople his “Boss” whom his government would serve by following the“daang matuwid.” His administration however, has been proven no differentfrom that of Mrs. Arroyo, essentially merely continuing her government’sthrusts and programs. Under his governance Caraga region remainsinundated with foreign and local mining companies and plantations thatdislocate thousands and are threatening further destruction to the regionand its people.

THE CARAGA REGION

The Caraga Region is made up of five (5)provinces, six (6) cities, seventy-one (68)municipalities and 1,306 barangays. It is situatedin the northeast section of Mindanao. It isbounded on the north by the Bohol Sea; on thesouth by Region XI’s provinces of Davao,Compostela Valley and Davao Oriental; on thewest by Region X’s Bukidnon and MisamisOriental; and on the east by the Philippine Seaand the Pacific Ocean. It has a total land area of



1,884,697 hectares, representing 6.3% of the country’s total land area and18.5% 0f Mindanao’s.

It is largely composed of mountainous areas and flat and rolling lands. TheDiwata mountain ranges divide the Agusan and Surigao provinces and sub-

ranges separate most of the lowlands along the pacific coast.

The most productive agriculture area is located along the Agusan RiverBasin. It is home to the famous Agusan Marsh which sits in the middle of Agusan Del Sur. Among the lakes in the region, Lake Mainit is the widest,covering eight municipalities: Alegria, Tubod, Mainit and Sison In Surigao DelNorte and Tubay, Santiago, Jabonga and Kitcharao in Agusan Del Norte.

Rich In Natural Resources

Agriculture remains the main source of income of the people of Caraga with

452,600 hectares cultivated with rice, corn, coconut, bananas, mango androot crops for local consumption. Crops for export include palm oil covering100 square kilometres in Agusan del sur; rubber; abaca; coffee andpineapple. Filipinas Palm Plantation Incorporated (PTFI) in Agusan del Sur isone of the biggest oil palm plantations in the region.

Secondary source of income is fishing with the two Surigao provinces andDinagat Island facing the Pacific Ocean. It is rich in marine resources and isthe main source of fish in the region and in Northern Mindanao.

71.2% of the total land area of the region is forested with its dipterocarp

coverage the third most extensive in the country. It has been host to largelogging companies during the 80’s until the 90’s including PICOP resourcesincorporated (PRI) and SUDECOR of the Puyat family which continues tooperate.

Minerals

According to the Mines & Geosciences Bureau (MGB-DENR), Caraga regionhas the 4th largest copper deposit, 3rd gold, 5th nickel and 6th chromitedeposits in the world. It also has the world’s biggest iron ore deposit withinthe mountains of the two Surigao provinces. It has the largest nickel (9.73%)

and gold (11.10%) deposit in the country.

Surigao Sur, Surigao Norte and Agusan del Norte are the principal gold‐producing provinces in what is called the Barobo Gold Corridor and theSurigao Gold District. Deposits of metallurgical grade chromite are found inDinagat Island. Vast nickel laterites are found in of Surigao and was firstexploited in 1975. The nickel deposits at Nonoc, Surigao del Norte weremined from 1975 to 1982. Negotiations are ongoing for the Nonoc mine and



refinery to be re-opened. Extensive deposits of Aluminum bauxite occur inBucas Grande Island.

Coal, the country’s major lignite reserve, can be found in three of itsprovinces: Agusan del Sur, Surigao del Norte and Surigao del Sur. The

biggest bulk of coal reserve is said to be found in Bislig and the Andap ValleyComplex which covers the municipalities of Tandag,Tago, San Miguel,Cagwait, Marihatag, San Agustin and Lianga in Surigao del Sur.

Industrial non-metallic minerals marble, aggregates, limestone for cementand feldspar, among others are also in abundance.

EXPLOITING THE NATURAL RESOURCES

The region’s mining resources have been extracted in various scales sincethe pre‐Hispanic period, but never has resource extraction been as extensive

or as destructive as the present. Surigao del Norte nickel was first exploitedin 1975. The nickel deposit in Nonoc, Surigao del Norte was mined from 1975to 1982. Prior to the Mining Act of 1995 (RA 7942), there were already twelvelarge mining companies operating in Surigao del Norte alone.

HEIGHTENED EXPLOITATION UNDER AQUINO

The Aquino government has continued to pursue mining as an economicpolicy. At present 10 of the 22 Operating Expansion Projects are in theCaraga Region.



Nonoc Nickel Projects is under Feasibility/ Financing Stage covering 25,000hectares. A $ 1.5 billion investment to rehabilitate the Nonoc Mining Projecthas allegedly been committed by Chinese company Jinchuan during Aqunio’srecent trip to China .The $2.107B Surigao Sumitomo HPAL Project is currentlyunder construction and is set for operation in 2013.

Eight (8) of the 11 nickel mines in the country are in the two Surigaoprovinces.

As of June 2011 there are 54 existing Mineral Production Sharing Agreements(MPSA) in the region covering 125,670 hectares; 36 Mineral ProductionSharing Agreements (MPSA) Applications covering 91,429.17 hectares; 16Existing Exploration Permits (EP) covering 31,367 hectares and 128Exploration Permits Applications (EP) covering an additional 534,543.22hectares.



Foreign Mining Companies In Caraga

Anglo American

Has a joint venture with local firm Philex Mining Corp. in the BoyonganCopper Project at the boundaries of Surigao del Norte and Agusan del

Norte. Has joint venture project with Manila Mining Corp. for the Bayugo Gold‐

Copper Project ‐ the Kalayaan Project, in Surigao del Norte.

Has 12 pending applications for exploration permits, seven in theSurigao and Agusan Norte areas.

BHP Billiton

Is one of the biggest buyers of nickel in the Philippines.

It has a purchasing agreement with Platinum Group Metals Corp.(PGMC), which operates two nickel mines in Surigao Norte and Isabela.

It collaborated with QNI Philippines in 2002, which made a joint ventureagreement with Asiaticus Management Corporation (Amcor) over thePujada mining project in Davao Oriental.

Red 5 Limited

Has 90% beneficial interest in the Siana Gold Project. The projectcovers an area of approximately 33 square kilometers focused aroundthe Siana Gold Mine in the established gold mining region of Surigaodel Norte.

It has over 1,700 shareholders including AngloGold Ashanti AustraliaLimited with 10% share.

Medusa Mining Limited

Owns the Mindanao Mineral Processing and Refining Corporation

(MMPRC) which is in charge of the Bananghilig and Co‐O mines in theBarobo Gold Corridor in Barobo, Surigao del Sur.

MMPRC is involved in small scale mining and organizing miningcooperatives. It also operates the Das-agan Project in the LingigCopper Discovery.

Its subsidiary, Philsaga Mining Corporation (Philsaga) operates the Tambis Project, comprising the Bananghilig and Kamarangan prospectswith Philex Gold Philippines Inc. with an MPSA covering 6,262 hectaresof land in Barobo, Surigao del Sur.

It has Joint Venture Agreements (JVA) with MRL Philippines to mineareas in the Surigao Agusan del Norte areas and Bunawan Mining

Corporation in Agusan del Sur along with a memorandum of agreementwith Abacus Consolidated Resources and Holdings Inc. for explorationof 8,100 hectares in Agusan del Sur.

Mindoro Resources Ltd.

Is a Canadian company that organizes small‐scale mining cooperatives.



Its Philippine subsidiary is MRL Gold Philippines Inc. manages the Agataand Tapian San Francisco Mining Projects which covers 7 areas forcopper, nickel and gold mining.

The Agata and Tapian San Francisco Projects are situated in theSurigao Gold District in Surigao del Norte.

The mining areas of Red 5 Limited and Mindoro Resources Ltd.surrounds Lake Mainit, the Philippine’s 4th largest lake.

Semco Exploration And Mining Co.

Is British‐owned and has exploration permits for copper and gold inclose to 2,000 hectares in Cabadbaran and Tubay, Agusan del Norte

Exploration permit for its Pakuan Property of over 10,000 hectares atPakuan, Cantilan, Surigao Sur.

Century Peak Metals Holdings Corporation

Owns Century Peak Corp. (CPC), the nickel mining company operatingin Loreto, Dinagat Islands and Century Hua Guang Smelting Inc..

Century Hua Guang Smelting Inc. is a joint venture of CPMHC with theowners of Zhejiang Hua Guang, a privately‐owned Chinese corporationand one of the largest nickel pig iron producers in China, to establish ablast furnace facility in the Philippines with the purpose of producingnickel pig iron.

Coal mining has started in theregion. The Department of Energy(DOE) launched its PhilippineEnergy Contracting Round(PECR) in 2005, 2006 and2009. Coal blocks in theAndap Valley Complex inSurigao del Sur has beenincluded on offer since 2005. The Complex covers themunicipalities of Tandag, Tago, Cagwait, San Agustin,Marihatag and Lianga inSurigao del Sur. Offered in its

PECR 2006 and 2009 are coal blocks in Bislig, Surigao del Sur; Gigaguit andKitcharao in Surigao del Norte and Bunawan, Trento, Sibagat in Agusan delSur. Around 70,000 hectares of land has been contracted for coal mining asof September 2009.

Just last June 19 and 23, 2011, AbaCoal disclosed its move to the productionand development phase for Coal Operating Contract No. 148 covering 7 coalblocks or 7,000 hectares within the mountains of Tago and Marihatag,

DOE 6 Coal Operating Contracts (COC) as of 20091. Philippine National Oil Company – Exploration

Corporation (PNOC-EC): Tago: Exploration2. Benguet Corporation: Lianga, Marihatag & San

Miguel, Surigao del Sur: Development andProduction

3. Great Wall Mining & Power Corp. (*former COCof CAREMINER): San Miguel, Tandag, Surigao delSur: Exploration

4. Lodestar Consolidated Holdings, Inc. (Boughtfrom Abacus Consolidated Resources & HoldingsInc.: Tandag, Surigao del Sur: Exploration

5. Oriental Energy and Power Corp.6. ASK Mining and Exploration Corp.7. Bislig Ventures and Development Corp. (M.G.



Surigao del Sur. According to AbaCoal’s work program it “intends to start producing coal in January 2012”. Its Coal Operating Contract with the DOE isfor 10 years effective January 2010 and renewable for another 10 years forthe next contract and every three years after.

WHAT DEVELOPMENT?

It has always been said by the government and the mining companies thatinvestments in the mining industry will bring in development and alleviatepoverty. But even with the increase in mining investments, Caraga Regionremains on the list of the poorest regions in the country with 3 of itsprovinces perennially included among the poorest provinces. The mining industry also has little room for massive employment with mostworkers in the mining industry employed by contractual basis. Thedestruction of the environment brought about by mining deprives thepeasants of their land, the small fisher folks of their livelihood and has

displaced thousands from their homes and farmlands. Landslides andflashfloods has resulted to the decrease in rice and corn production in theregion, caused a halt to the economic activities because of impassable roadsand destruction of businesses.

Tax holidays and other incentives covering years of operation awarded bythe Philippine government to foreign mining companies hugely decrease thegovernment’s collections from the industry.

CASUALTIES OF MINING

Large-scale Environmental Degradation

26 were reported dead by the NDRRMC during the January 2011 flash floodswhich affected 76,078 families. Damages to agriculture amounted to P 13million while damage to infrastructure reached P72.6 million (GMA NewsOnline January 6, 2011). Roads were impassable which halted the region’seconomy to a stop for more than 2 days. Caraga is perennially threatenedwith landslides and flashfloods during the rainy season.

The increasing contamination of potable water sources, poisoning of the air,water and soil, siltation of the coastline and degradation of nearby fishing

grounds, destruction of habitats and decrease in biodiversity that promiseslong-term impact on the human and ecological environment

Increasing Militarization, Increasing Human Rights Violations

Human rights situation in Caraga worsened under the Aquino. Just like hispredecessor Arroyo, Aquino has unleashed yet another military campaignsimilar but has indications of surpassing Oplan Bantay Laya. . It has deployed



Community Organizing for Peace and Development (COPD) teams to lumadand peasant communities targeted for mining under the guise of counter-insurgency campaigns. He has ordered the strengthening of Arroyo’s“investment security forces”, deploying hundreds of these “to investmentintensive areas” to secure mining and other foreign interests, quell the

peoples struggle against such destructive operations, land, rights andensuring the smooth exploitation of Philippine resources by foreigncompanies.

There are 6 battalions deployed and scattered all over the Caraga region:36th, 58th, 23rd , 26th, 29th and 30th IBPA. The 30th IB PA concentrates onSurigao and Agusan del Norte; the 36th IBPA in Agusan del Sur and Surigaodel Sur, the 58th IBPA in the first district of Surigao del Sur. The 29th and 23rd IBPA are deployed in the CAFGU detachments in Agusan del Sur. The 26th IBPA are deployed in San Luis, La Paz and Talacogon in Agusan del Sur.

There are two infantry brigades in the region, the 401st

Infantry Brigade mainheadquarters is located in St.Christine, Lianga, Surigao del Sur and the 402nd

Infantry Brigade in New Leyte, Prosperidad, Agusan del Sur. Logging andmining companies have their own security forces (Special Citizen AuxiliaryArmy-SCAA), the largest number of SCAAs are of the PRI scattered in themunicipalities of Tagbina, Hinatuan, Bislig ang Lingig; SCAAs of the FPPI arein Bunawan, Rosario, and Trento in Agusan del Sur while the Puyat SCAAsare in Lanuza, Carmen, Madrid and Cantilan in Surigao del Sur. There is alsoan increase in the number of paramilitary forces like the CAFGU, CVO, BIN,Bantay Bayan, Bantay Purok, village patrols in every barangay in what iscalled the Barangay Defense System (BDS).



The implementation of Oplan Bayanihan in January of this year and thesubsequent constant military operations in mountain communities hasresulted to evacuations of communities in the region.

May 20, 2011: Evacuation of 90 Mamanwa and peasant settler families/405individuals from Sitio Zapanta, Brgy. Bangayan, Kitcharao, Agusan del Norte.



September 1, 2011: 106 residents of Ansili and Zapanta Valley of Brgy.Bangayan, Kitcharao, Agusan del Norte were again dislocated due to theongoing military operations of the 402nd ID and 30th IB PA on the samecommunities.

Sorrounding Kitcharao are the municipalities in Agusan and Surigao del Nortewith and targeted for nickel and gold mining along with the Sumitomo HPALplant in Claver, Surigao del Norte.

May 5, 2011: Evacuation of 141 families/550 individuals from Brgy.Mahaba, Marihatag, Surigao del Sur and the evacuation of 22 families fromBrgy. Buhisan, San Agustin, Surigao del Sur.

June 26, 2011: Evacuation of 77 families from Magkahunao and Upper Janipaan in Brgy. Buhisan, San Agustin, Surigao del Sur

Brgy. Mahaba in Marihatag is the doorway to the Andap Valley Complex –targeted for coal mining while Janipaan and Magkahunao of Brgy. Buhisan,San Agustin are adjacent communities.

People’s organizations in these mountain communities are vocal in theiropposition to mining.

The next five years under President Aquino will bring in further exploitationof Philippine resources especially in Mindanao and particularly in the Davaoand Caraga regions. The NEDA’s Mindanao Strategic DevelopmentFramework Mindanao intends to exploit Mindanao mineral deposits which arevalued at $312 billion or about 40% of the country’s mineral reserves of $840. It intends to increase Caraga’s mineral output which currentlycontributes the most to the country’s mineral output at 8% (DENR-MGB2008). It has taken steps to induce mining investments by easing miningapplication processing.

His trips abroad are nothing but the peddling of Philippine lands and cheaplabor mainly to mining companies. 15 officials of mining companiesaccompanied Pres. Noynoy Aquino in his recent trip to China. They cameback with 4 nickel mining agreements with Chinese companies that is said tobring in $ 14 billion in investments for the next five years but would

consequently bring destruction to the region’s environment. #

Resources:MINDANAO1. NEDA-Strategic Development Framework 2010-20202. DENR-MGB: Complete list of MPSA as of June 20113. DENR-MGB: Complete list of FTAA as of June 20114. DENR-MGB: Complete list of EP as of June 2011



5. DENR-MGB: Tenement Control Map of Region XIII 20116. PNOC Coal areas on Offer 7. Caraga Watch: Mining Caraga, 20098. Kasalo: The Truth Behind the Military Operations in Surigao del Sur:

Clearing the Way for Coal Mining, June 2011

2011_caraga for sale

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