1. LESSONS FROM TWO MEETINGS for LUZON CORDILLERA, PHILIPPINES SMALL-SCALE GOLD MINERS
Victor Maglambayan,PhD Exploration Manager
Philex Mining Corporation 27 Brixton St. Pasig City Philippines 1600

2. OUTLINE INTRODUCTION BACKGROUND OF THE MEETINGS
MEETING ONE – STUDY OF BUSINESS PRACTICES
MEETING TWO – DISSEMINATING SCIENTIFIC DATA
OBSERVATIONS, LESSONS
CONCLUSIONS

3. PHILIPPINES –An Introduction
Land Area – 300,000 sq. kms.
7, 100 islands and islets
Population - 88 M
CAPITAL CITY – MANILA
LUZON CORDILLERA
Ca. 30% below 500 m elevation
70% Up to 2,000 m elevation
70% above 30% slope
BAGUIO CITY
SSM IN LUZON CORDILLERA IS NOT TYPICAL IN THE COUNTRY.

4. DIVERSITY OF COUNTRY SITUATION
TRADITIONAL VS. ASM OR GOLD RUSH
PEOPLE’S MINING AREAS IN A FEW PLACES IN SOUTHERN PHILIPPINES
UNSTABLE PEACE AND ORDER

5. Primary City of Benguet province – Baguio City
(Plateau at 1,400 m elevation)
Itogon town

6. Small-scale gold mining in Benguet
(2004) 6,400 to 8,000 small-scale gold miners and panners
The industry directly benefited some 58,000 people.
Est. total gold production - 68,000 ounces
Value - US$25M/year
6% by vol. of total national production (35 MT gold)

7. SS gold miners flourish despite major difficulties in obtaining acceptance in mainstream Philippine society
The law regulating small-scale miners is largely ineffective in monitoring them and their contribution.
Some 40% of their production is lost to the black market.
In Benguet, only two out of 68 small-scale mining associations possessed small-scale mining permits (2002).
Their use of Hg and cyanide is unregulated.

8. Background of our study (1999):
Dr. Satoshi Murao of the Geological Survey of Japan
National Institute of Geological Sciences of the University of the Philippines Diliman

9. Topics Studied Problems of SS miners in sustaining their livelihood
Assessing the use of Hg in SS mining sites
Iwate Cyclotron Center - Hg in the hairs of SS miners
How much Hg is thrown out to the environment
Graduate thesis - Geology student of University of the Philippines Diliman
Extent of Hg contamination in river sediments and river water in one part of Itogon town ( )

10. From 2001-2004: Our study group expanded into related topics:
Risk communication
Risk perception
Health security
Entrepreneurship (sustaining the livelihood)
Psychologists, sociologists and medical doctors
A continuing dialogue with SS gold miners
Later, with different groups of people in the town of Itogon and other parts of Baguio City

11. “A meeting to Study the Business practices of Small-scale Gold Mining in Benguet, Philippines”

12. Mines and Geosciences Bureau of the Cordillera Autonomous Region
March 17, 2004
University of the Philippines Baguio
ORGANIZERS:
National Institute of Advanced Industrial Science and Technology (AIST) of Japan
NIGS-UPD
Mines and Geosciences Bureau of the Cordillera Autonomous Region
Department of Science and Technology of the Philippines’ Philippine Council for Industry and Energy Research and Development (DOST-PCIERD)

13. Aim of the meeting: To educate the SS miners about the government instruments that can assist them to increase their productivity

14. 1. Heads of two SS miners’ associations 2. Service contractor
SPEAKERS:
1. Heads of two SS miners’ associations 2. Service contractor
3. Large gold mining corporation 4. Town councilor 5. NGO representative 6. Benguet’s Provincial Mining Regulatory Board

15. Relationship between a large mining company and a small-scale miners’ cooperative acting as a service contractor for the large mining company
Community abandons use of mercury and cyanide.

16. Government Side:
1. Regional Unit of the Central Bank of the Philippines
2. Social Security System
3. Cooperative Development Authority
4. Department of Trade and Industry
5. Department of Labor and Employment.

17. Government Side: 1. Central Bank is trying to respond to
suggestions for it to capture a bigger share
of the gold production from the SS miners.
2. Social Security System - Encouraged SS
miners to avail of their retirement and sickness
benefits by joining as members of SSS
3. Cooperative Development Authority
Trainings are available if SS miners’
associations transformed their grouping into
cooperatives.

18. Government Side: 4. Department of Trade and Industry speaker –
Barangay (village) Micro-Business Enterprise
5. DOLE speaker –
Advantages of registering :
Programs and trainings available –
PRESEED (Promotion of Rural
Employment thru Self-Employment
and Enterpreneurial Development)
Loan programs
WEED (Women Employment and
Enterpreneurial Development)
Workers Organization Development Program (WODP)
Promotion of the Barangay Business Enterprises (PBBE)

19. Observations
It seemed to us that SS miners in Luzon Cordillera were pro-active in seeking solutions to their problems, especially concerning their desire for recognition and acceptance.
JUST LIKE THE PEOPLE OF MONGOLIA, IN A SENSE.

20. Lessons Learned
SS miners - Problems in obtaining financing and their lack of permits from the government
The law on small-scale mining was examined and some of its loopholes pointed out.
Symbiotic relationship between a large mining company and a small-scale miners cooperative
SS miners clamored for social insurance, training and assistance from the government
Information systems need much improvement.

21. Second Meeting
“A meeting to examine and discuss scientific data of mercury in and around the municipality (or town) of Itogon”.

22. Village of Bua, Itogon Itogon Integrated Watershed Management Training Center December 8, 2004
The scientific data of mercury contamination was examined before the town residents and other stakeholders.

23. Government officer explains hazards of mercury intoxication to the people of Itogon, including the town mayor.

24. OBSERVATIONS 1. Skeptical attitude of SS miners
2. Tendency to ask for assistance from foreigners.
3. Apparent reluctance to spend on research to find solutions
4. Medical doctors lack documented case of mercury intoxication; noted rise in cancers
5. “We did not have problem before.”

25. Lessons Learned:
It appeared that SS miners, even when confronted by scientific facts, tend to deny possible negative effects on their bodies.
The meeting highlighted the differences in
risk perception among different groups of
people. Some positive, some negative reactions.

26. CONCLUSIONS:
1. Taken together, the two meetings resulted to a better understanding of the problems of SS gold miners in the region.
2. Clear action plans were arrived at in the first meeting; less so in the second meeting.
3. Our experience in organizing these meetings helped us to appreciate the need for more effort in sustaining the relationships and improving synergy among stakeholders.
4. Information, education and communication are key factors.
5. Sustainable development of SS miners’ industry can
6. Contribute to human security.

28. THANK YOU FOR YOUR ATTENTION.
Special thanks to:
1. World Bank
2. Dr. Satoshi Murao, CASM-ASIA
3. Dr. Toshiko Kikkawa, Keio Univ. Japan
4. Mr. Edmund Bugnosen, Bugnosen Minerals Engineering, UK
5. Philex Mining Corporation
6. People of Mongolia for the warm hospitality