CARAGA: FOR SALE

Caraga Mining Situation Under the Noynoy

Aquino Presidency
2011 October
(Draft)
Caraga Region, under the Gloria Macapagal-Arroyo government, became the
mining capital of Asia. Hectares of forest land and mountains ancestral
lands of the umad people !ere o"ered to foreign mining companies. #hat
follo!ed !as a deluge of mining operations. #ithin a couple of years
landslides and $ash $oods struc% the region !hich a"ected lives and the
very livelihood of the people of Caraga. &plan 'antay aya ( !as unleashed
to )uell the people*s gro!ing opposition to the anti-people policies and
programs of the Arroyo government. Areas !ith and targeted for mining
operations especially those !ith movements that opposed mining, !ere
highly militari+ed. ,his resulted to several instances of evacuations of !hole
communities and caused economic dislocation to the umad and peasant
communities targeted.
-romising to be the antithesis of his predecessor, .oynoy A)uino spe!s
respect for human rights, promises an end to poverty and called the /ilipino
people his 0'oss1 !hom his government !ould serve by follo!ing the 0daang
matu!id.1 His administration ho!ever, has been proven no di"erent from
that of Mrs. Arroyo, essentially merely continuing her government*s thrusts
and programs. 2nder his governance Caraga region remains inundated !ith
foreign and local mining companies and plantations that dislocate thousands
and are threatening further destruction to the region and its people.
THE CARAGA REGION
,he Caraga Region is made up of 3ve 456
provinces, si7 486 cities, seventy-one 4896
municipalities and :,;<8 barangays. =t is situated
in the northeast section of Mindanao. =t is
bounded on the north by the 'ohol >ea? on the
south by Region @=*s provinces of Aavao,
Compostela Balley and Aavao &riental? on the
!est by Region @*s 'u%idnon and Misamis
&riental? and on the east by the -hilippine >ea
and the -aci3c &cean. =t has a total land area of
:,99C,8DE hectares, representing 8.;F of the country*s total land area and
:9.5F <f Mindanao*s.
=t is largely composed of mountainous areas and $at and rolling lands. ,he
Ai!ata mountain ranges divide the Agusan and >urigao provinces and sub-
ranges separate most of the lo!lands along the paci3c coast.
,he most productive agriculture area is located along the Agusan River
'asin. =t is home to the famous Agusan Marsh !hich sits in the middle of
Agusan Ael >ur. Among the la%es in the region, a%e Mainit is the !idest,
covering eight municipalitiesG Alegria, ,ubod, Mainit and >ison =n >urigao Ael
.orte and ,ubay, >antiago, Habonga and Iitcharao in Agusan Ael .orte.
Rich In Natural Resources
Agriculture remains the main source of income of the people of Caraga !ith
C5(,8<< hectares cultivated !ith rice, corn, coconut, bananas, mango and
root crops for local consumption. Crops for e7port include palm oil covering
:<< s)uare %ilometres in Agusan del sur? rubber? abaca? co"ee and
pineapple. /ilipinas -alm -lantation =ncorporated 4-,/=6 in Agusan del >ur is
one of the biggest oil palm plantations in the region.
>econdary source of income is 3shing !ith the t!o >urigao provinces and
Ainagat =sland facing the -aci3c &cean. =t is rich in marine resources and is
the main source of 3sh in the region and in .orthern Mindanao.
E:.(F of the total land area of the region is forested !ith its dipterocarp
coverage the third most e7tensive in the country. =t has been host to large
logging companies during the 9<*s until the D<*s including -=C&- resources
incorporated 4-R=6 and >2AJC&R of the -uyat family !hich continues to
operate.
Minerals
According to the Mines K Geosciences 'ureau 4MG'-AJ.R6, Caraga region
has the Cth largest copper deposit, ;rd gold, 5th nic%el and 8th chromite
deposits in the !orld. =t also has the !orld*s biggest iron ore deposit !ithin
the mountains of the t!o >urigao provinces. =t has the largest nic%el 4D.E;F6
and gold 4::.:<F6 deposit in the country.
>urigao >ur, >urigao .orte and Agusan del .orte are the principal goldL
producing provinces in !hat is called the 'arobo Gold Corridor and the
>urigao Gold Aistrict. Aeposits of metallurgical grade chromite are found in
Ainagat =sland. Bast nic%el laterites are found in of >urigao and !as 3rst
e7ploited in :DE5. ,he nic%el deposits at .onoc, >urigao del .orte !ere
mined from :DE5 to :D9(. .egotiations are ongoing for the .onoc mine and
re3nery to be re-opened. J7tensive deposits of Aluminum bau7ite occur in
'ucas Grande =sland.
Coal, the country*s maMor lignite reserve, can be found in three of its
provincesG Agusan del >ur, >urigao del .orte and >urigao del >ur. ,he
biggest bul% of coal reserve is said to be found in 'islig and the Andap Balley
Comple7 !hich covers the municipalities of ,andag,,ago, >an Miguel,
Cag!ait, Marihatag, >an Agustin and ianga in >urigao del >ur.
=ndustrial non-metallic minerals marble, aggregates, limestone for cement
and feldspar, among others are also in abundance.
EXPLOITING THE NATURAL RESOURCES
,he region*s mining resources have been e7tracted in various scales since
the preLHispanic period, but never has resource e7traction been as e7tensive
or as destructive as the present. >urigao del .orte nic%el !as 3rst e7ploited
in :DE5. ,he nic%el deposit in .onoc, >urigao del .orte !as mined from :DE5
to :D9(. -rior to the Mining Act of :DD5 4RA EDC(6, there !ere already t!elve
large mining companies operating in >urigao del .orte alone.
HEIGHTENE EXPLOITATION UNER A!UINO
,he A)uino government has continued to pursue mining as an economic
policy. At present :< of the (( &perating J7pansion -roMects are in the
Caraga Region.
.onoc .ic%el -roMects is under /easibilityN /inancing >tage covering (5,<<<
hectares. A O :.5 billion investment to rehabilitate the .onoc Mining -roMect
has allegedly been committed by Chinese company Hinchuan during A)unio*s
recent trip to China .,he O(.:<E' >urigao >umitomo H-A -roMect is currently
under construction and is set for operation in (<:;.
Jight 496 of the :: nic%el mines in the country are in the t!o >urigao
provinces.
As of Hune (<:: there are 5C e7isting Mineral -roduction >haring Agreements
4M->A6 in the region covering :(5,8E< hectares? ;8 Mineral -roduction
>haring Agreements 4M->A6 Applications covering D:,C(D.:E hectares? :8
J7isting J7ploration -ermits 4J-6 covering ;:,;8E hectares and :(9
J7ploration -ermits Applications 4J-6 covering an additional 5;C,5C;.((
hectares.
Foreign Mining Companies n Caraga
An"lo A#erican
Has a Moint venture !ith local 3rm -hile7 Mining Corp. in the 'oyongan
Copper -roMect at the boundaries of >urigao del .orte and Agusan del
.orte.
Has Moint venture proMect !ith Manila Mining Corp. for the 'ayugo GoldL
Copper -roMect L the Ialayaan -roMect, in >urigao del .orte.
Has :( pending applications for e7ploration permits, seven in the
>urigao and Agusan .orte areas.
$HP $illiton
=s one of the biggest buyers of nic%el in the -hilippines.
=t has a purchasing agreement !ith -latinum Group Metals Corp.
4-GMC6, !hich operates t!o nic%el mines in >urigao .orte and =sabela.
=t collaborated !ith P.= -hilippines in (<<(, !hich made a Moint venture
agreement !ith Asiaticus Management Corporation 4Amcor6 over the
-uMada mining proMect in Aavao &riental.
Re% & Li#ite%
Has D<F bene3cial interest in the >iana Gold -roMect. ,he proMect
covers an area of appro7imately ;; s)uare %ilometers focused around
the >iana Gold Mine in the established gold mining region of >urigao
del .orte.
=t has over :,E<< shareholders including AngloGold Ashanti Australia
imited !ith :<F share.
Me%usa Minin" Li#ite%
&!ns the Mindanao Mineral -rocessing and Re3ning Corporation
4MM-RC6 !hich is in charge of the 'ananghilig and CoL& mines in the
'arobo Gold Corridor in 'arobo, >urigao del >ur.
MM-RC is involved in small scale mining and organi+ing mining
cooperatives. =t also operates the Aas-agan -roMect in the ingig
Copper Aiscovery.
=ts subsidiary, -hilsaga Mining Corporation 4-hilsaga6 operates the
,ambis -roMect, comprising the 'ananghilig and Iamarangan prospects
!ith -hile7 Gold -hilippines =nc. !ith an M->A covering 8,(8( hectares
of land in 'arobo, >urigao del >ur.
=t has Hoint Benture Agreements 4HBA6 !ith MR -hilippines to mine
areas in the >urigao Agusan del .orte areas and 'una!an Mining
Corporation in Agusan del >ur along !ith a memorandum of agreement
!ith Abacus Consolidated Resources and Holdings =nc. for e7ploration
of 9,:<< hectares in Agusan del >ur.
Min%oro Resources Lt%'
=s a Canadian company that organi+es smallLscale mining cooperatives.
=ts -hilippine subsidiary is MR Gold -hilippines =nc. manages the Agata
and ,apian >an /rancisco Mining -roMects !hich covers E areas for
copper, nic%el and gold mining.
,he Agata and ,apian >an /rancisco -roMects are situated in the >urigao
Gold Aistrict in >urigao del .orte.
,he mining areas of Red 5 imited and Mindoro Resources td.
surrounds a%e Mainit, the -hilippine*s Cth largest la%e.
Se#co E()loration An% Minin" Co'
=s 'ritishLo!ned and has e7ploration permits for copper and gold in
close to (,<<< hectares in Cabadbaran and ,ubay, Agusan del .orte
J7ploration permit for its -a%uan -roperty of over :<,<<< hectares at
-a%uan, Cantilan, >urigao >ur.
Centur* Pea+ Metals Hol%in"s Cor)oration
&!ns Century -ea% Corp. 4C-C6, the nic%el mining company operating
in oreto, Ainagat =slands and Century Hua Guang >melting =nc..
Century Hua Guang >melting =nc. is a Moint venture of C-MHC !ith the
o!ners of QheMiang Hua Guang, a privatelyLo!ned Chinese corporation
and one of the largest nic%el pig iron producers in China, to establish a
blast furnace facility in the -hilippines !ith the purpose of producing
nic%el pig iron.
Coal mining has started in the
region.
,he Aepartment of Jnergy
4A&J6 launched its -hilippine
Jnergy Contracting Round
4-JCR6 in (<<5, (<<8 and
(<<D. Coal bloc%s in the
Andap Balley Comple7 in
>urigao del >ur has been
included on o"er since (<<5.
,he Comple7 covers the
municipalities of ,andag, ,ago,
Cag!ait, >an Agustin,
Marihatag and ianga in
>urigao del >ur. &"ered in its
-JCR (<<8 and (<<D are coal bloc%s in 'islig, >urigao del >ur? Gigaguit and
Iitcharao in >urigao del .orte and 'una!an, ,rento, >ibagat in Agusan del
>ur. Around E<,<<< hectares of land has been contracted for coal mining as
of >eptember (<<D.
Hust last Hune :D and (;, (<::, AbaCoal disclosed its move to the production
and development phase for Coal &perating Contract .o. :C9 covering E coal
bloc%s or E,<<< hectares !ithin the mountains of ,ago and Marihatag,
>urigao del >ur. According to AbaCoal*s !or% program it 0intends to start
producing coal in January 20121. =ts Coal &perating Contract !ith the A&J is
OE , Coal O)eratin" Contracts -COC. as o/
0112
:. -hilippine .ational &il Company J7ploration
Corporation 4-.&C-JC6G ,agoG J7ploration
(. 'enguet CorporationG ianga, Marihatag K >an
Miguel, >urigao del >urG Aevelopment and
-roduction
;. Great #all Mining K -o!er Corp. 4Rformer C&C
of CARJM=.JR6G >an Miguel, ,andag, >urigao del
>urG J7ploration
C. odestar Consolidated Holdings, =nc. 4'ought
from Abacus Consolidated Resources K Holdings
=nc.G ,andag, >urigao del >urG J7ploration
5. &riental Jnergy and -o!er Corp.
8. A>I Mining and J7ploration Corp.
E. 'islig Bentures and Aevelopment Corp. 4M.G.
Mining and Jnergy Corporation6, 'islig, >urigao
for :< years e"ective Hanuary (<:< and rene!able for another :< years for
the ne7t contract and every three years after.
3HAT E4ELOPMENT5
=t has al!ays been said by the government and the mining companies that
investments in the mining industry !ill bring in development and alleviate
poverty. 'ut even !ith the increase in mining investments, Caraga Region
remains on the list of the poorest regions in the country !ith ; of its
provinces perennially included among the poorest provinces.
,he mining industry also has little room for massive employment !ith most
!or%ers in the mining industry employed by contractual basis. ,he
destruction of the environment brought about by mining deprives the
peasants of their land, the small 3sher fol%s of their livelihood and has
displaced thousands from their homes and farmlands. andslides and
$ash$oods has resulted to the decrease in rice and corn production in the
region, caused a halt to the economic activities because of impassable roads
and destruction of businesses.
,a7 holidays and other incentives covering years of operation a!arded by the
-hilippine government to foreign mining companies hugely decrease the
government*s collections from the industry.
CASUALTIES OF MINING
Lar"e6scale En7iron#ental e"ra%ation
(8 !ere reported dead by the .ARRMC during the Hanuary (<:: $ash $oods
!hich a"ected E8,<E9 families. Aamages to agriculture amounted to - :;
million !hile damage to infrastructure reached -E(.8 million 4GMA .e!s
&nline Hanuary 8, (<::6. Roads !ere impassable !hich halted the region*s
economy to a stop for more than ( days. Caraga is perennially threatened
!ith landslides and $ash$oods during the rainy season.
,he increasing contamination of potable !ater sources, poisoning of the air,
!ater and soil, siltation of the coastline and degradation of nearby 3shing
grounds, destruction of habitats and decrease in biodiversity that promises
long-term impact on the human and ecological environment
Increasin" Militari8ation9 Increasin" Hu#an Ri"hts 4iolations
Human rights situation in Caraga !orsened under the A)uino. Hust li%e his
predecessor Arroyo, A)uino has unleashed yet another military campaign
similar but has indications of surpassing &plan 'antay aya. . =t has deployed
Community &rgani+ing for -eace and Aevelopment 4C&-A6 teams to lumad
and peasant communities targeted for mining under the guise of counter-
insurgency campaigns. He has ordered the strengthening of Arroyo*s
0investment security forces1, deploying hundreds of these 0to investment
intensive areas1 to secure mining and other foreign interests, )uell the
peoples struggle against such destructive operations, land, rights and
ensuring the smooth e7ploitation of -hilippine resources by foreign
companies.
,here are 8 battalions deployed and scattered all over the Caraga regionG
;8
th
, 59
th
, (;
rd
, (8
th
, (D
th
and ;<
th
='-A. ,he ;<
th
=' -A concentrates on
>urigao and Agusan del .orte? the ;8
th
='-A in Agusan del >ur and >urigao
del >ur, the 59
th
='-A in the 3rst district of >urigao del >ur. ,he (D
th
and (;
rd

='-A are deployed in the CA/G2 detachments in Agusan del >ur. ,he (8
th
='
-A are deployed in >an uis, a -a+ and ,alacogon in Agusan del >ur.
,here are t!o infantry brigades in the region, the C<:
st
=nfantry 'rigade main
head)uarters is located in >t.Christine, ianga, >urigao del >ur and the C<(
nd
=nfantry 'rigade in .e! eyte, -rosperidad, Agusan del >ur. ogging and
mining companies have their o!n security forces 4>pecial Citi+en Au7iliary
Army->CAA6, the largest number of >CAAs are of the -R= scattered in the
municipalities of ,agbina, Hinatuan, 'islig ang ingig? >CAAs of the /--= are
in 'una!an, Rosario, and ,rento in Agusan del >ur !hile the -uyat >CAAs
are in anu+a, Carmen, Madrid and Cantilan in >urigao del >ur. ,here is also
an increase in the number of paramilitary forces li%e the CA/G2, CB&, '=.,
'antay 'ayan, 'antay -uro%, village patrols in every barangay in !hat is
called the 'arangay Aefense >ystem 4'A>6.
,he implementation of &plan 'ayanihan in Hanuary of this year and the
subse)uent constant military operations in mountain communities has
resulted to evacuations of communities in the region.
May 20! 2011" Jvacuation of D< Maman!a and peasant settler familiesNC<5
individuals from >itio Qapanta, 'rgy. 'angayan, Iitcharao, Agusan del .orte.
September 1! 2011" :<8 residents of Ansili and Qapanta Balley of 'rgy.
'angayan, Iitcharao, Agusan del .orte !ere again dislocated due to the
ongoing military operations of the C<(
nd
=A and ;<
th
=' -A on the same
communities.
>orrounding Iitcharao are the municipalities in Agusan and >urigao del .orte
!ith and targeted for nic%el and gold mining along !ith the >umitomo H-A
plant in Claver, >urigao del .orte.
May #! 2011" Jvacuation of :C: familiesN55< individuals from 'rgy. Mahaba,
Marihatag, >urigao del >ur and the evacuation of (( families from 'rgy.
'uhisan, >an Agustin, >urigao del >ur.
$une 2%! 2011" Jvacuation of EE families from Mag%ahunao and 2pper
Hanipaan in 'rgy. 'uhisan, >an Agustin, >urigao del >ur
'rgy. Mahaba in Marihatag is the door!ay to the Andap Balley Comple7
targeted for coal mining !hile Hanipaan and Mag%ahunao of 'rgy. 'uhisan,
>an Agustin are adMacent communities.
-eople*s organi+ations in these mountain communities are vocal in their
opposition to mining.
,he ne7t 3ve years under -resident A)uino !ill bring in further e7ploitation
of -hilippine resources especially in Mindanao and particularly in the Aavao
and Caraga regions. ,he .JAA*s Mindanao >trategic Aevelopment
/rame!or% Mindanao intends to e7ploit Mindanao mineral deposits !hich are
valued at O;:( billion or about C<F of the country*s mineral reserves of
O9C<. =t intends to increase Caraga*s mineral output !hich currently
contributes the most to the country*s mineral output at 9F 4AJ.R-MG'
(<<96. =t has ta%en steps to induce mining investments by easing mining
application processing.
His trips abroad are nothing but the peddling of -hilippine lands and cheap
labor mainly to mining companies. :5 oScials of mining companies
accompanied -res. .oynoy A)uino in his recent trip to China. ,hey came
bac% !ith C nic%el mining agreements !ith Chinese companies that is said to
bring in O :C billion in investments for the ne7t 3ve years but !ould
conse)uently bring destruction to the region*s environment. T
Resources:
MINDANAO
1 N!DA"#trategic De$elop%ent &ra%e'or( 2010"2020
2 D!NR"M)*: +o%plete list of M,#A as of June 2011
- D!NR"M)*: +o%plete list of &.AA as of June 2011
/ D!NR"M)*: +o%plete list of !, as of June 2011
0 D!NR"M)*: .ene%ent +ontrol Map of Region 1III 2011
2 ,NO+ +oal areas on O3er
4 +araga 5atc6: Mining +araga7 2008
9 :asalo: .6e .rut6 *e6ind t6e Military Operations in #urigao del #ur:
+learing t6e 5ay for +oal Mining7 June 2011