December 13, 2004
The DIOPIM Committee on Mining Issues expresses its dismay and strong
opposition to the Supreme Court rulings made on December 1, 2004. On
this date the Court reversed the ruling that it made previously on January
29, 2004 regarding the 'unconstitutionality' of the Mining Act and the
Financial and Technical Assistance Agreement (FTAA) provision which
allows 100% foreign ownership of investment capital.
In making this decision, the Supreme Court has catered to the interests
of the rich and powerful and while showing careless disregard for the
collective future of the Philippine People. We are certain that this
ruling was influenced by groups who are eager to exploit the rich natural
resources of our country. Philippine mining history has shown us over
and over again that multinational companies and unscrupulous government
officials are not hesitant about abusing the justice system to serve
their own ends.
The Supreme Court defended their decision by saying that greater foreign
investment into the mining industry would stimulate local economic development
and benefit the country as a whole. This rationale, however, is deeply
flawed. We do not believe that economic development is the inevitable
result of greater investment in the mining industry. We also do not
believe that the Filipino people stand to benefit from this increased
investment.
Many studies on the subject show that mining is a relatively negligible
factor in economic growth. In fact, research has shown that mineral
dependent countries are more likely to fare poorly both socially and
economically. In a study of 95 developing countries over 20 years, Harvard
economists Sachs and Warner found that countries with higher rates of
natural resource exports had slower rates of per capita growth.
In the Philippines, mining has frequently failed at creating substantial
employment. Currently only 1% of the total work force in the country
are employed by mining companies. The mining industry has ceased to
become a significant employer because of increasing mechanization. According
to the International Labour Organization, one-third of all mine-workers
in 25 major mineral-producing countries lost their jobs between 1995
and 2000.
The Philippine mining industry has also failed stimulate economic development
in related sectors. The industry continues to import most of its capital
equipment and inputs such as fuel, vehicles, drills, generators and
explosives from overseas.
DCMI is also opposed to the recent ruling because we do not believe
that economic development is the sole process that can guarantee a strong
and secure future for the people of the Philippines. On the contrary,
we believe that economic development is useless if it is unsustainable.
Furthermore, we assert that economic growth is destructive if it requires
the devastation of the land, the pollution of the water, the displacement
of families and communities, the suppression of human rights, and the
impoverishment of the many for the benefit of the few.
We have recently witnessed the frightening aftermath of the Philippine
logging industry. The tragic flooding and landslides were the visible
and inevitable result of environmental destruction in a country of our
climate and geography. The floods, however, are not the only legacy
of the logging industry. Multinational corporations have been exporting
our lumber for years while promising development for the local communities.
These promises were repeatedly broken as companies pulled out of communities
leaving nothing but ghost towns and environmental wastelands behind.
In the end, the only people to benefit from this trade off were the
mining companies and their Filipino counterparts.
We believe the mining industry is poised to follow the path of the
logging industry. Increased mining will make our land and our people
increasingly vulnerable to environmental hazards. More communities will
suffer displacement and betrayal. We are astounded that the Supreme
Court could even consider encouraging the further pillaging of our country
at such a time.
For our rights, our future, and our environment, DCMI loudly calls
for the scraping of the Republic Act 7942. DCMI asks the People of the
Philippines and the International Community to oppose the large scale
mining companies that seek to exploit our land. To this end, we are
currently conducting an education, information and signature campaign
about the mining act. If you wish to add your voice to the protest,
please let us know.
-Written by Maryanne Mutch, DCMI
