Interfacing Development Interventions for Sustainability (IDIS) Inc.

The Interfacing Development Interventions for Sustainability (IDIS) Inc. remained firm on its stand that the Pujada Nickel Open-Pit Mining Project in Davao Oriental has extensive environmental and social impacts despite the claim that the said mining site is outside the protected areas of Mt. Hamiguitan and Pujada Bay.

The Pujada Nickel Project is one of the 23 priority mining projects that are part of the Philippine government’s 2004 Minerals Action Plan. Hallmark Mining Corporation (HMC) and Austral-Asia Link Mining Corporation (AALMC) are Philippine companies under the management of Asiaticus Management Corporation (AMCOR) that currently hold control of the Pujada Nickel Project. The Mineral Production and Sharing Agreements (MPSA) granted to these mining companies give the right of ingress and egress for the next 25 years and are renewable for the same period.

What alarms us is that the Pujada Nickel Open-Pit Mining Project straddles between and within close proximity of Mount Hamiguitan Wildlife Range, a UNESCO Heritage Site and protected by Republic Act 9303 and Pujada Bay Protected Seascape and Landscape through Presidential Proclamation 431 and Republic Act 7586.

Regardless of the claim that it is outside the protected area delineation, we strongly uphold and fight for the ecological rights and integrities of these watersheds from ridge to reef.   

Environmental Impacts

The portions of these protected areas are within a proximity radius of only 8 kilometers from the open-pit mining site. Eight (8) Kilometers north-east from the mining site is already Pujada Island and eight (8) kilometers heading east is already the peak and highest elevation point of Mt. Hamiguitan. The environmental impacts of Open-Pit Mining affect water quality, air, hydro-geology, biodiversity, resources, and communities in a wider and regional scope and could not be contained compactly as pollution will always exceed spatial boundaries and delineations. 

Even with the claim that the mining site is outside the technical boundaries of Mt. Hamiguitan still, the site lies within the watershed, specifically its coastal and reef ecosystem. Given the short distance proximity, the Strict Protection Zone of Mt. Hamiguitan continues to be threatened by operational impacts, most especially the disturbance to both terrestrial and aquatic wildlife. A number of Vulnerable to Critically Endangered species inhabit these protected areas such as the Philippine Eagle (Pithecophaga Jefferyi) and Dugong (Dugong dugon). Furthermore, based on the land satellite images, it has severely damaged the geomorphology or land formation of the watershed. The satellite images showed open stripping of forest covers. Changes in the overland flow slopes, natural rills, gullies, and channels were evident as compared to the satellite photos prior to the mining operations. Additionally, the mining site is near the Pacific Cordillera fault line, responsible for the series of recorded earthquakes within Davao Oriental. Two branches of this active fault line flank the project area. This makes their tailings catchment facilities highly risky for collapse and damage.      

Due to the tidal pattern, hydrodynamics, and proximity to Pujada Bay, it has a high probability that mine tailings such as laterite will damage and affect the coral reefs. The Pujada Bay’s coral reefs are in “Excellent Condition” based on the assessment of the Coastal Resource and Foreshore Management Section (CRFMS). Laterite, and other probable metals from mine tailings, caused by sediment mineralogy and geochemistry changes, will increase during the sedimentation (deposition) phase as a result of calm meteorological or hydrodynamic conditions. This unmanageable sedimentation, when operational, increases the acidity (pH) and reduces the dissolved oxygen (DO) of seawater. Low-quality seawater will pose high risks for coral bleaching and a decrease in fish and aquatic resources of Pujada Bay.  

Impacts on the Local Communities and Indigenous Peoples

As equal to the rights of nature, we also share the sentiments and voices of the key stakeholders and peoples of these protected areas. The Pujada Nickel Project overlaps 16, 000 hectares of ancestral domain claims of the Mandaya Indigenous People; thus, there is a need to secure Free Prior Informed Consent (FPIC), especially coming from the indigenous stakeholders. However, the FPIC was only achieved by establishing an arbitrary and illegitimate Council of Elders, not recognized as an authority by the majority of the Indigenous people. The Macambol-Mamali United Mandaya Tribal Council said that their members were not sufficiently consulted about the project and were not permitted to speak and raise objections to the mining project during meetings with the NCIP. The mining’s negative effects on the Mandaya tribe will lead to the loss of their lands, and a serious threat to their livelihoods, local resources, and cultural preservation.

Foreign Investment and loss of local economy

One of the claims is that the Pujada Nickel Open Pit Mining Project will boost and stimulate economic growth since the deposit was reported to contain about 1.3% nickel reserves, amounting to 200 million MT, corresponding to a gross value of 22.7 billion USD. The Philippine Government will potentially gain $10m in annual excise tax and $70m in income tax from the operations, excluding any incentives. The global warming potential of mining and processing nickel is the eighth highest of the 63 metals for mining. The mining industry is extremely energy-intensive and one of the major emitters of greenhouse gases. Studies done by Davao Oriental State University (DOrSU) have shown decreasing diversity indices of the different species on Mt. Hamiguitan and Pujada Bay. The money and wealth generated from mining could not suffice the ecosystem’s natural resource values, services, integrity, and damage costs. Hence the profit is embraced by the foreign extractors, and the loss is embraced by the locality.   

Our calls

With these risks to the above-mentioned sectors, we call on RED Bagani Fidel A. Evasco, DENR XI for the full closure of open-pit mining in Macambol and halting of its Mining Production Sharing Agreement (MPSA).

We also call the City Council of Mati and Governor Generoso and DENR XI to declare these areas as buffer, greenbelt, and transitional zones, particularly “Environmental Critical Areas” or “Critical Habitats” as stated in the Philippine Wildlife Act.

We also call the two Protected Area Management Boards (PAMB) of Mt. Hamiguitan and Pujada Bay to have cohesive and interlinked planning to close off the open-pit mining, a highly destructive activity in these areas.

Lastly, we call the people of Davao Oriental to continuously protect and fight for the environment. We encourage them to be involved in this discussion and call the LGU for the closure of this mining site.

Let us be reminded that the 1995 Mining Law prohibits mining in watersheds with old-growth forests, areas near dams, reservoirs, and other infrastructure projects, proclaimed forest reserves, national parks, and especially declared environmentally sensitive or critical watersheds.

References:

[1] Cordillera Peoples Alliance, The Mineral Action Plan, 2004

[2] Hallmark Mining Corporation, The Pujada Nickel Project, 2021

[3] UNESCO World Heritage Center, Mount Hamiguitan Range Wildlife Sanctuary, 2014

[4] Teh, A. Developmental Approach to Mineral Resources, 2019

[5] Mining Technology. Pujada Nickel Mine., 2019

[6] Nuss P. & Eckelman M. 2014. Life Cycle Assessment of Metals: A Scientific Synthesis.

[7] University of Queensland. 2016. Climate Change and Mining.

[8] Environment Management Bureau. 2021. Updated List of Environmental Critical Projects with Environment Compliance Certificate.

[9] Impacts of Laterite Mining of Nickel and Iron Ores on Watersheds Guillermo Q. Tabios III, Ph.D. National Academy of Science and Technology, Philippines (NAST PHL)

[10] Philippines Mining or Food? Case Study 4: Nickel and Cobalt in Davao Oriental- Mindanao, The Hallmark Project, 2008