By:

ENGR. RODOLFO L. VELASCO, JR.

Mines and Geosciences Bureau
Department of Environment and Natural Resources
IF IT CANNOT BE
GROWN, IT HAS TO
BE MINED
MINING is the process of extracting valuable
mineral deposits from the earth. It involves
exploration, feasibility study, development,
utilization and rehabilitation.

Mining Methods
1. Surface Mining (open pit and quarrying)

2. Underground Mining
 Surface Mining
(Open Pit and Quarrying)
 Surface Mining
(Open Pit and Quarrying)
Underground Mining
 Types of Mineral Deposits
• Metallic mineral deposits (gold, nickel,
aluminum, copper, silver)

• Non-metallic mineral deposits (limestone,

marble, clay, aggregates, sand and gravel,
silica)

Mineral processing means the milling, beneficiation or

upgrading of ores or minerals and rocks to convert the
same into marketable products
Mill Plant
Gold Bar
STATUS OF THE
PHILIPPINE
MINING
INDUSTRY
• The country is known for its rich diversity
in both metallic and non-metallic
minerals, especially:
- Gold - Copper
- Nickel - Chromite
- Iron
• Philippines used to be among the world’s
top producers of gold, copper, and nickel.
 1
2 1. Luzon Central Cordillera – Au,
Cu, Fe, Mn
2. Northern Sierra Madre – Cr, Ni,
4
3 5
Cu
3. Zambales – Cr, Ni, Co, Pt, Cu,
Au
4. Vizcaya-Aurora – Cu, Au
6 5. Bicol – Au, Fe, Cu
7 6. Southern Tagalog – Cu, Au, Ni,
Co
8 7. Central Visayas – Cu, Au, Mn
8. Samar-Eastern Mindanao – Au,
Cu, Fe, Cr, Ni, Co, Pt, Mn
9
12 10
9. North Central Mindanao – Cr,
Cu, Au
10. Zamboanga Peninsula – Au,
Cu, Cr, Fe
11. Southern Mindanao – Cu, Au
11 12. Palawan – Cr, Ni, Co, Pt, Au,
Rare Earth Elements
 Approximately 2.72% of
Philippine land area is covered Area % of
by mining contracts/permits (hectares) Area

Area Covered by
30% or 9 Million Mining Permits/ 816,111 2.72%
Hectares Contracts
High-Potential Area Under
96,797 0.32%
70% or 21 Million Hectares Production Stage
Area Under
Low-Medium Potential Exploration
719,314 2.40%
(subject to area
relinquishment)
Mineral Land Distribution
Note:
Total Philippine Land Area Protected Area = 3.6 M Hectares (12%)
is 30 Million Hectares Ancestral Domain = 2 M Hectares (6.67%)
 Polymetallic

Gold

Copper

Chromite

Metallic Mines: 46 Nickel Mine

Nickel Processing
Plant

Non-metallic
Mines: 55
 PHILIPPINE
ECOSYSTEMS
FOREST AND MARGINAL
LAND ECOSYSTEMS
 FOREST AND MARGINAL
LAND ECOSYSTEMS

• FOREST AREAS are areas of one hectare or more

which are at least sixty (60) meters wide and 10%
stocked with forest trees, wild palms, bamboo or
bush.

• MARGINAL LANDS are areas once covered with

tropical moist forests converted to plantation forest,
fire-climax cogon grassland and reproduction
brushlands which are characterized by low
productivity.
 FOREST AND MARGINAL LAND
ECOSYSTEMS
 UPLAND ECOSYSTEM

 forest + marginal lands

 > 100 m elevation
 > 18% slope
 18.92 million has. or 66% of total Philippine land
area of 30 million has.
 6.95 million has. of forest
 11.97 million has. of marginal lands
Impacts of Mining Operations on
the Upland Ecosystem
 Slope Destabilization
 Soil Erosion
 Deforestation
 Aesthetic Defacement
 Desertification
 Water Resource Degradation
CROPLAND ECOSYSTEM
 CROPLAND ECOSYSTEM

• CROPLAND ECOSYSTEM comprises the agricultural

areas planted to rice, corn, sugar, coconut and other
crops.

• 9.9 million hectares or 33% of the country’s land

area.
 Impacts of Mining Operations
on the Cropland Ecosystem
 Soil Erosion
 Defertilization
 Crop and Land Damage
 Mill tailings cause direct and indirect
toxicity to plants and animals
COASTAL ECOSYSTEM
 COASTAL ECOSYSTEM

• COASTAL ECOSYSTEM embraces the strip of land

and adjacent lake or ocean space (water and
submerged land) in which the land ecology and land
use directly affect the ocean space ecology and vise-
versa.

• 18,000 kilometers of coastline, including mangrove

forest, tidal flats, estuaries, coral reefs, beaches and
small islands.
 Impacts of Mining Operations
on the Coastal Ecosystem
 Siltation
 Aesthetic Defacement
 Ecosystem Damage
 Alteration of Sea-Bottom Topography
 Increased Water Turbidity
FRESHWATER ECOSYSTEM
 FRESHWATER ECOSYSTEM

• FRESHWATER ECOSYSTEM includes freshwater

bodies such as rivers, lakes, ponds, dams and
groundwater reservoirs.

 421 principal river basins with drainage area of 40 sq. km. or

more
 105 lakes with total area of 2,000 sq. km.
 Dams and reservoirs with total area of 500 sq. km.
 50,000 sq. km. of water reservoirs
 Impacts of Mining Operations on the
Freshwater Ecosystem

 Water Pollution
 Siltation
 Toxic chemicals used in Ore Processing
 Disturbance of Ecological Balance
 River Bank Erosion
 Infrastructure Damage
URBAN ECOSYSTEM
 URBAN ECOSYSTEM

• URBAN ECOSYSTEM comprises the developed

lands usually intended for human settlements and
support activities.

• Big cities and towns like Metro Manila, Cebu and

Davao
 Impacts of Mining Operations
on the Urban Ecosystem
 Cyanide Contamination
 Aesthetic Defacement
 Rockfalls and Landslides
 Air Pollution
 Mercury Pollution
 STAGES OF MINING OPERATION

EXPLORATION

DEVELOPMENT

PRODUCTION

FINAL MINE
PROGRESSIVE DECOMMISSIONING
REHABILITATION
 EXPLORATION STAGE
Drilling

EXPLORATION

Soil Analysis

Mineral Analysis

Boundary Survey Rock Sampling Geochemical Surveys

 DEVELOPMENT STAGE

EXPLORATION

Construction of ancillary facilities

Mine Open Pit Development

DEVELOPMENT

Mill Development & Construction

 PRODUCTION STAGE
Extraction of minerals

EXPLORATION

DEVELOPMENT
Gold Extraction

PRODUCTION

Mineral Processing

Mine Control
 FINAL MINE DECOMMISSIONING STAGE

Nursery Production
EXPLORATION

DEVELOPMENT Slope Stabilization

and Erosion Control
Reforestation

PRODUCTION

FINAL MINE
DECOMMISSIONING
 Environmental Compliance
 Certificate of Environmental Management & Community Relations
Record (CEMCRR)

 Environmental Work Program for Exploration (EWP)

 Environmental Protection and Enhancement Program (EPEP)

 Annual Environmental Protection and Enhancement Program (AEPEP)

 Final Mine Rehabilitation and Decommissioning Plan (FMRDP)

 Mine Waste and Tailings Fee Semiannual Report

 Incorporation of a Mine Environmental Protection and Enhancement

Office (MEPEO)
 Environmental Documents

 Certificate of Environmental Management

and Community Relations Record (CEMCRR)

 A proof of the applicant’s satisfactory environmental

management and community relations in its past
and/or present mineral resource use or mining-
related ventures.
 Mining permit/agreement applicants with neither
past nor present mineral resource use or mining-
related ventures are exempted and instead issued a
Certificate of Exemption.
 Environmental Documents
Environmental Work Program
(EWP) for Exploration
• Description of the expected and considered
acceptable impacts and shall set out the
environmental protection and enhancement
strategies based on the best practice in
environmental management in mineral exploration.
• This should include costs to enable sufficient
financial resources to be allocated to meet the
environmental and rehabilitation commitments (at
least 10% of the exploration cost).
 Environmental Protection - Exploration Stage
Pollution Control

Mixing tank at the drillsite

Low impact drill machine

Bunded fuel storage at drillsite Signages against

cutting of trees
 Environmental Protection - Exploration Stage

Drillsite Rehabilitation

Drill Hole Drill Sumps

Environmental Protection - Exploration Stage

Campsite Rehabilitation
. . .before & after scenario
Fuel
Storage
Area

Clinic
Area
 Environmental Documents

 Environmental Impact Assessment (EIA)

• A systematic identification and evaluation of

potential impacts of proposed projects,
plans, programs or legislative actions
relative to the physical-chemical, biological,
cultural and socio-economic components of
the total environment.
 Environmental Compliance Certificate (ECC)

• Document issued by DENR to certify that the

project under consideration will have
minimal environmental effects for as long as
the conditions stipulated in the ECC are
strictly followed, and that the proponent has
complied with the requirements of the EIS
System.
 Environmental Documents
Environmental Protection and
Enhancement Program (EPEP)

• It provides the description of the expected

impacts of the mine and sets out the life-of-
mine environmental protection and
enhancement strategies based on best
practice in environmental management in
mining.
 Environmental Documents

 Annual Environmental Protection and

Enhancement Program (AEPEP)

• Document prepared to effectively implement the

approved EPEP, shall be based of the approved
EPEP and shall be implemented during the year for
which it is submitted.
 Environmental Protection - Development Stage

Silt Management

gabions, silt fences and sediment traps with geotextile

. . . at Rapu-Rapu Minerals, Inc., Albay
 Environmental Protection - Development Stage

Erosion Control Management

shotcreting cocomatting

vetiver planting stop logs

. . . at Rapu-rapu Minerals, Albay
 Environmental Protection
During Production Stage

Progressive Rehabilitation at Cagdianao Mining Corp,

Surigao del Norte
 Environmental Protection – Production Stage

Erosion & Siltation Control

Various plant species planted

along slopes of
mined-out areas
(i.e. carabao grass,
acacia mangium, etc.)

. . .at Taganito Mining Corporation, Surigao del Norte

 Environmental Protection – Production Stage

Dust Management

water spraying to
minimize airborne
dusts….

. . . at Holcim Phils., Inc.-La Union Plant

 Environmental Protection – Production Stage

Chemicals/Hazardous Wastes Management

Hazardous Waste Chemical

Storage Storage

Used Oil &

Lubricants
Storage
. . .at Philex Mines, Benguet
 Environmental Protection – Production Stage

Multi-Partite
Monitoring Team. . .

Water Quality Monitoring. . .

Air Quality Monitoring. . .

 Environmental Protection – Production Stage

Mechanized AMD Treatment

Facility

Computerized pH Monitoring System

. . .at Rapu-Rapu Minerals, Inc., Albay

 Environmental Documents

Final Mine Rehabilitation

and Decommissioning Plan

• It is the process of returning the mine sites and affected areas

to viable and, whenever practicable, self-sustaining
ecosystems that are compatible with a healthy environment
and with human activities.
 Envi. Protection – Mine Rehabilitation and
Decommissioning Stage

Rehabilitation of Affected Areas

Rehabilitated area
converted to farmlands

Siltation pond of Philex

Bulawan (Negros Occidental)
converted into rice paddies
Envi. Protection – Mine Rehabilitation and
Decommissioning Stage

Reforested Mining Area of Philex Gold Phils., Inc. in

Sibutad, Zamboanga del Norte
 Envi. Protection – Mine Rehabilitation and
Decommissioning Stage

Reforestation of Disturbed Land

Reforested Mineral Processing Areas of

Philex Bulawan (Negros Occidental)
FINANCIAL MECHANISMS
FOR THE
IMPLEMENTATION OF
ENVIRONMENTAL
PROGRAMS
 FINANCIAL MECHANISM
 CONTINGENT LIABILITY AND REHABILITATION
FUND (CLRF)

• CLRF is an environmental guarantee fund mechanism

institutionalized to ensure just and timely compensation for
damages and progressive and sustainable rehabilitation for
any adverse effect a mining operation or activity may cause.

• There are two (2) forms of CLRF namely the Mine Rehabilitation
Fund (MRF) and the Mine Waste and Tailings Fees.

• The MRF is composed of the Rehabilitation Cash Fund (RCF)

and the Monitoring Trust Fund (MTF).
 CONTINGENT LIABILITY AND
REHABILITATION FUND (CLRF)

ENVIRONMENTAL MINE MINE WASTE AND TAILINGS FINAL MINE

TRUST FUND (ETF) REHABILITATION FEE RESERVE FUND REHABILITATION and/or
(MWTRF) DECOMMISSIONING
No fixed amount; FUND (MRF)
PHP 0.05/MT of mine waste FUND (FMR/DF)
minimum of PhP 50,000
PHP 0.10/MT of tailings

REHABILITATION CASH MONITORING TRUST FUND

FUND (RCF) (MTF)
10% of the total amount maintained at
needed to implement the EPEP PhP 150,000/ quarter
or PHP 5M whichever is lower
 Final Mine Rehabilitation and Decommissioning
Fund (FMRDF).

A FMRDF shall be established by each operating

Contractor/Permit Holder to ensure that the full cost of
the approved FMR/DP is accrued before the end of the
operating life of the mine. The FMRDF shall be
deposited in a Government depository bank and shall
be used solely for the implementation of the approved
FMR/DP.

Annual cash provisions shall be based on the formula:

Annual Provision = Cost of Implementing the Approved
FMR/DP x Percentage Required
Per Table 1
 Table 1 – Schedule of Annual Cash Provisions to the
FMRDF

Operating Mine Life (in years)

Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

E 1 year 1.000                            
x
p 2 years 1.000 -                          
e 3 years 0.500 0.500 -                        
c
T 4 years 0.556 0.333 0.111 -                      
e
d 5 years 0.437 0.313 0.187 0.063 -                    

6 years - 0.437 0.313 0.187 0.063 -                  

M
i 7 years - 0.367 0.300 0.180 0.123 0.030 -                
n
e 8 years - 0.367 0.300 0.173 0.102 0.030 0.028 -              

9 years - 0.367 0.300 0.153 0.092 0.040 0.028 0.020 -            

L
i 10 years - - 0.265 0.225 0.177 0.163 0.095 0.055 0.020 -          
f
e 11 years - - 0.265 0.225 0.177 0.157 0.090 0.050 0.020 0.016 -        

12 years - - 0.265 0.225 0.177 0.147 0.088 0.050 0.020 0.016 0.012 -      
(i
n 13 years - - 0.207 0.180 0.150 0.130 0.100 0.080 0.063 0.050 0.030 0.010 -    
y
e 14 years - - - 0.207 0.180 0.150 0.130 0.100 0.080 0.063 0.050 0.030 0.010 -  
a
r 15years - - - 0.207 0.180 0.150 0.130 0.100 0.080 0.063 0.050 0.020 0.010 0.010 -
s)
 SOCIAL AND
COMMUNITY
DEVELOPMENT
 Social/Community
Development
 SOCIAL DEVELOPMENT AND MANAGEMENT
PROGRAM (SDMP)

• This is a tool for the development and implementation of

community programs, projects and activities for the host
and neighboring communities of a mining project/area.

• This is a 5-year plan geared towards the development of

a responsible, self-reliant and resource-based
communities capable of developing, implementing and
managing development programs, projects and
activities.
 Social/Community
Development
 Source of Funds

Mining companies shall allot a 1.5% of the operating

cost annually which shall be divided into:

• 75% for the development of host and neighboring

community
• 10% for the development of mining technology and
geosciences
• 15% for the institutionalization of public awareness and
education on mining and geosciences.
 Social Responsibilities – Exploration Stage

Educational Assistance
Scholarship Programs

School Facilities Support

. . .at Philex Boyungan, Surigao del Norte

 Social Responsibilities – Exploration Stage
Community Projects
Ecological Solid Waste Management (ESWM) PROGRAM

Material Support and Donation to Various Community Projects

. . .at Philex Boyungan, Surigao del Norte

 SDMP – Development/Production Stage
Social Development &
Management Program

.. weaving

floor mat making ..candle making

. . .at Philex Mines, Benguet
 SDMP – Development/Production Stage

Aglubang Mining. . .
Protection of
Indigenous People

at Taganito Mining, Surigao…

. . .in Oriental Mindoro

 SDMP – Development/Production Stage

Social
Development and …poultry livelihood
Management
Program Projects

Livelihood Projects
at Rio Tuba Mining
(Palawan)
farm tractor distribution…
 SDMP – Development/Production Stage

Housing…

New houses built for affected residents prior to mining

operations in Malabuyoc, Cebu (Southwestern Cement) . . .
 SDMP – Development/Production Stage

Employment of Local Residents

492 or 42% of the construction/mining workforce are local workers. . .

. . . at Rapu-rapu Minerals, Albay

 ANNUAL SAFETY AND
HEALTH PROGRAM (ASHP)
 What is ASHP?

ASHP is a plan designed to ensure that mine

workers are provided with a just, safe and humane
working environment through the following:

• Promotion of safety and health culture;

• Strict enforcement of safety and health regulations;
• Establishment effective systems of monitoring, inspection and
investigations to improve safety and health; and
• Promotion of trainings and human resources development.
 Legal Basis

• Section 144, Chapter XV, DAO 2010-21

Submission of Safety and Health Program

“The Regional Director shall require a

Contractor/Permittee/Lessee/Permit Holder
to submit a Safety and Health Program
covering its area of operations within fifteen
(15) working days before the start of every
calendar year…”
A. The safety and health program shall include,
but shall not be limited to, the following:
1. Leadership and Administration;
2. Organizational Rules;
3. Management and Employee Training;
4. Good Housekeeping;
5. Health Control and Services;
6. Provision for Personal Protective
Equipment;
7. Monitoring and Reporting;
8. Emergency Response and Preparedness
Program; and
9. Occupational Health and Safety
Management.
 Safety and Health
Inspection and Audit

Safety and Health Audit conducted at

Philex Mining Corp. – Padcal Mine

Quarterly Safety and Health Inspection

conducted by MGB Regional Office
personnel
Emergency Response and
Preparedness Program

Emergency Response Drill conducted at Apex

Mining Co., Inc.
 Executive Order No. 79

• Provides additional areas closed to

mining applications:
1. Prime agricultural lands
2. Tourism development areas
3. Other critical areas, island ecosystem and
impact areas of mining
• Provides for the full enforcement of
environmental standards in mining
1. Full enforcement of environmental standards as
prescribed by the various mining and
environmental laws, rules and regulations.
2. Necessary remediation measures shall be
required from mining contractors.
3. Pertinent suspension orders shall be issued and
shall stay until the danger is removed.
4. Mining rights shall be granted only to those who
can comply with environmental requirements.
• Provides for the review of the performance of
existing mining operations and cleansing of
non-moving mining rights holder.
• Provides for a moratorium on the grant of
mineral agreements pending new legislations
on revenue sharing schemes.
• Provides for the establishment of mineral
reservations.
• Provides for opening of areas for mining
through competitive public bidding.
• Provides for the disposition of abandoned
ores and valuable metals in mine waste and
tailings.
• Provides for future value-adding activities
and the development of downstream
industries for the mineral sector.
• Provides for the creation of the Mining
Industry Coordinating Council.
• Provides measures to improve small-scale
mining activities.
 CONCLUSION

Projects that cannot absorb the

environmental and social costs
of modern mining shall not be
allowed to proceed.
www.mgb.gov.ph