MGB warns small-scale mines used as ‘fronts’

DAVAO CITY—A report by the Mines and Geosciences Bureau (MGB) warned against “unscrupulous” Chinese investors who circumvent Philippine mining laws to engage in small-scale mining activities in the country.

In a report sent to the Inquirer, MGB warned against Chinese investors who use Filipino small-scale miners as dummies and act in “cahoots with local politicians.”

The report said the Chinese investors buy small-scale mining permits from local governments for a pittance and since they go about their businesses unmonitored, they violate environment laws with impunity, the report said.

“Although the national government is right to be worried over the incursion of China in the much-contested Spratly Islands in the South China Sea, it should be alarmed by the unbridled exploitation of our resources by unscrupulous Chinese traders,” a summary of the report said.

Local pols’ help

It cited the case of Diwalwal and Napnapan in Monkayo, Compostela Valley, where Chinese investors were able to secure small-scale mining permits with the help of politicians.

“While large-scale mining companies go through various government bodies for approval to process their applications (for mining licenses), small-scale miners only go through the provincial governor’s office and largely go unmonitored,” it said.

The report said significant amounts of the country’s mineral reserves are in Diwalwal, Compostela Valley, and other provinces in Mindanao, including Misamis Oriental, Davao Oriental, Surigao del Norte, Sultan Kudarat, Zamboanga del Norte and Zamboanga del Sur.

“Chinese investors who use Filipino dummies to secure small-scale mining permits usually violate environment laws and resort to illegal practices,” said the report summary.

Lives threatened

It also quoted a report by the Pacific Strategies and Assessment (PSA), a business-risk consultancy firm which supplies foreign embassies and multinational companies in the country with market intelligence and assessment reports, which pointed out that Chinese mining companies have the reputation for their “poor adherence to environment standards, especially for small-scale mining projects.”

“Irresponsible Chinese mining practices also threaten the lives of residents near the area,” the PSA report said, quoting an MGB report on Compostela Valley, where 22 areas near mining sites were identified as landslide prone.

Aside from poor mining records, Chinese companies also reportedly engage in smuggling out billions of pesos worth of minerals from the Philippines to China, according to the PSA report.

It cited a 2008 report of the Department of Environment and Natural Resources which said at least 3 million metric tons of mineral ores from the Philippines found their way into China untaxed. Inquirer Mindanao