Responsible mining in PH
Credit to Author: Ben Kritz| Date: Thu, 27 Feb 2020 16:49:28 +0000
AS in most countries, mining activities in the Philippines are regarded by most people with attitudes ranging from skepticism to outright hostility. Unfortunately, there is some justification for that; years of poorly-regulated mining in remote areas has scarred both the land and communities. Infamous incidents such as 1996 Marcopper mine disaster in Marinduque, and instances of black sand and nickel ore smuggling throughout the years convinced many that mining is simply exploitative, rather than serving to contribute to economic growth and improve living standards.
Responsible mining companies have come to realize, however, that proper social and environmental management of their operations adds a great deal of value to their businesses, and in response have adopted strong corporate social responsibility (CSR) programs.
CSR, which applies to any industry, in the context of mining refers to voluntary actions carried out by mining companies to improve the standard of living of local communities and to reduce the negative social and environmental impact of mining operations. “Voluntary actions” are what distinguish CSR activities from other business activities, as by definition “voluntary actions” are those that go beyond legal or contract obligations.
Apart from the slightly idealistic positive effects of CSR activities on beneficiary communities, having an effective CSR program benefits a mining company in several practical ways. First, a CSR program that has substantial tangible results helps greatly in improving the image and public acceptance of mining. Second, contributing to improvements in the health, living conditions, and education of nearby communities potentially creates a valuable workforce for the mining company. And third, investing in community service and environmental remediation through CSR programs while mining operations are ongoing saves the company some time and money in the long run, because less will have to be done to properly clean up after a mine when it closes.
Different types of CSR programs
Because good CSR programs are community-oriented, they vary from place to place as companies seek ways to meet the specific needs of their neighboring populations. In general, mining CSR programs fall into one of three broad areas:
Infrastructure: Mining companies often provide much-needed improvements to local communities such as potable water supplies, school facilities, electricity, roads, health care facilities, drainage and flood control upgrades, and the like.
Building Human Capital: Mining companies help to improve the economic profile of local communities by providing job training for mining jobs or related services, and by supporting training and development in areas such as microbusiness, agriculture, aquaculture, and other trades.
Building social capital: Mining companies can also contribute to better opportunities for local communities by focusing on social capital in areas such as high school and college education, workshops on social concerns such as gender issues, and health promotion in areas such as disease prevention, improved hygiene, and family planning.
Government perspective
In terms of the performance of the mining sector in social and environmental responsibility, the government sets and regulates policy according to two statements of principle (along with a third, which addresses economic principles). The first addresses the social concerns of mining: “Social Equity and Development: The Philippine government recognizes the rights and participation of the communities and indigenous peoples and ensures the fair and equitable sharing of benefits among the company, the government, and host communities.”
The second statement addresses environmental concerns: “Environmental Protection and Rehabilitation: The Philippine government ensures the adequate protection of the environment, before, during mining operations and beyond the life of the mine. The Philippine government promotes the rational exploration, development, utilization and conservation of mineral resources guided by its commitment to responsible minerals development.”
According to the MGB, Philippine mining companies are making significant contributions in both these areas. As of February 2019, the MGB said in a presentation last year, mining companies have committed P19.5 billion “for the development of their host and neighboring communities through their approved Social Development and Management Program. Around 837 barangays stand to benefit from the implementation of approved community/social projects of various companies.”
In environmental management, the government monitors two different areas, the Environmental Protection and Enhancement Program, which covers CSR activities carried out while mining operations are ongoing, and the Final Mine Rehabilitation and/or Decommissioning Plan, which is mandated environmental remediation that is carried out once a mine has been closed. According to the MGB, as of February 2019 mining companies had committed a total P20.39 billion to the Environmental Protection and Enhancement Program, and a total of P4.2 billion to post-mining rehabilitation work.
In addition, a third program called the Mining Forest Program was launched in recent years, which gives the mining companies another outlet for environmental activities. Through June of 2018, mining companies have supplied 35.15 million seedlings planted across 27,069 hectares of mined-out areas, or approximately 1,300 new trees per hectare. The MGB reported that the program has been surprisingly successful; as of December 2018, 32.17 million of the trees had survived and were still growing, a survival rate of 91.35 percent.
Standout programs
A World Bank analysis conducted several years ago made an assessment of CSR practices among Philippine mining companies and the government’s management of company-community relations, and highlighted the activities of three companies in particular: Philex Mining at its Padcal Mine in Benguet, Silangan Mindanao Exploration Company at its Boyongan Exploration in Surigao del Norte, and Apo Cement Corp. at its cement plant in Naga, Cebu.
To be fair, the World Bank assessment – which it should be noted, was carried out before the imposition of the requirement that mining and mining-related firms secure ISO 14001 certification (see related story) – was not completely positive for any of the three companies, and the report did make a significant number of recommendations in each case as to how CSR programs could be extended and enhanced.
However, in each case, the World Bank highlighted the companies’ CSR management framework, suggesting these could serve as models for other companies’ own CSR programs. In its Padcal, Benguet location, Philex formed an inter-departmental coordinating division called the Environment and Community Relations Division (ECRD) to handle the environmental and community relations of the company. Silangan Mindanao, which is a Philex joint venture with Anglo American Exploration Philippines Inc., took a slightly different approach, and put its local CSR management in the hands of a Community Technical Working Group (CTWG), formed with the guidance of the MGB-Region 13. Apo Cement, on the other hand, managed its CSR activities through its existing Corporate Communications department, but sought out and formed cooperative relationships with no fewer than seven local community groups for the successful implementation of various projects.