National Investigation of Intex Resources Mindoro Nickel Project

A L M ALAMIN
A 1 M A1M
N S S A NASSA
MNbono CnmrncN
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A 1 M A1M n S S A nASSA A L M ALAMln iii
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Ior nore lhan a decade since 1998, lhe peopIe of Mindoro had Iong leen opposing lhe enlry of Iarge-
scaIe nining of Mindoro NickeI Irojecl (MNI), currenlIy ovned ly Norvegian Inlex Resources and
ils IocaI sulsidiaries.
Mindoro NickeI Irojecl lhrealens lhe food securily and ecoIogicaI inlegrily of Mindoro since lhe
nining concession covers one of lhe OrienlaI Mindoros najor valershed areas, vhiIe lhe ligger parl
of lhe nining concession is encroaching lhe foresl of SalIayan in OccidenlaI Mindoro. The nining
concession is aIso vilhin lhe anceslraI donain cIain of lhe AIangan and Tadyavan indigenous Mangyan
connunilies. ConsequenlIy, lhe nining operalion viII resuIl lo econonic and cuIluraI dispIacenenl
of lhe Mangyan connunilies. Moreover, nining lhrealens lhe exlreneIy rich liodiversily of lhe
province, considered as lhe 7
lh
nosl inporlanl liogeographic zones in lhe vorId. The 2OO2 IinaI Reporl
on IhiIippine iodiversily Conservalion idenlihed Mindoro, parlicuIarIy lhe MNI concession sile, as
exlreneIy high conservalion priorily areas for pIanls and lirds and lerreslriaI aninaIs.
The rale of degradalion of lhe foresl in lhe isIand of Mindoro is aIarning. Iron lhe 967,4OO heclares
of foresl in lhe 195Os, lhe renaining foresl cover al presenl is onIy aloul 5O,OOO heclares. The signihcanl
foresl Iosl of 95 conlriluled lo lhe inslaliIily of lhe environnenl lolh in lhe upIand and IovIand
areas. ul inslead of resloring lhe laIance, lhe foresl ecosyslens are nov even nore in danger of leing
denuded due lo lhe lhreals posed ly nore lhan 92 nining appIicalions aII over lhe isIand of Mindoro.
The MNI is a lesl case vhelher nining couId hnd enlry, vilh aII lhe aggressive supporl and
incenlives leing provided ly lhe nalionaI governnenl. ul lhe peopIe of Mindoro successfuIIy repuIsed
lhe allenpl of lhe nining conpanies lo force lheir vay in.
This conpendiun of reporls is lul a gIinpse of lhe conlinuing slory of lhe peopIes slruggIe. In
an allenpl lo docunenl signihcanl Iandnark viclories in advocacy vork, and in viev of sharing our
peopIes journey, lhis pulIicalion is nade possilIe lhrough lhe parlnership of AIyansa TigiI Mina
(ATM), NalionaI Secrelarial for SociaI Aclion (NASSA) and lhe IocaI anli-nining coaIilion in OrienlaI
Mindoro, ALAMIN.
The environnenlaI canpaign of lhe Mindorenos serves as an exenpIary slralegy on hov lo
effecliveIy lring aloul a concerled nuIli-slakehoIder parlnership, even invoIving IocaI governnenl
unils and lhe Church, in suslaining a successfuI canpaign in aII fronls - IocaI, nalionaI and inlernalionaI
IeveI.
The naleriaIs conlained in lhis lookIel reecls lhe oulpul of lhe painslaking coIIaloralion of lhe
affecled seclors and connunilies in lheir endeavor lo Iolly, lo cone up vilh research sludies and
lo lring lhe issues lo lhe proper fora, using appropriale nechanisns for engagenenl and lo effecl
poIilicaI pressure for poIicy change.
The hrsl parl presenls lhe over-aII conlexl and silualioner aloul lhe nining projecl incIuding lhe
argunenls and issues leing raised lo shov vhy Iarge-scaIe nining shouId nol le aIIoved in isIand
ecoIogy and in lhe anceslraI donains of lhe Mangyan indigenous peopIes.
The second seclion is a reproduclion of lhe earIier case sludy on nining in Mindoro conducled
ly Rolerl CoodIand and CIive Wicks of lhe Working Croup on Mining in lhe IhiIippines (WCMI),
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cuIIed fron lhe look IhiIippines: Mining or Iood` The case sludy on Mindoro vas done in cIose
coIIaloralion vilh ALAMIN, exlensiveIy expIoring lhe nining proposaI and ils socio-econonic and
environnenlaI inpacls.
The lhird seclion is anolher case sludy focusing on lhe connunily organizing approach of AIyansa
Lalan sa Mina (ALAMIN) in defending lhe isIand paradise fron lhe lhreal of Iarge-scaIe nining. This
sludy vas connissioned ly CODL-NCO as parl of ils projecl lo docunenl good praclices of connunily
organizing in differenl fronls. ALAMIN, as a sociaI novenenl spearheading lhe canpaign, vas alIe lo
enlark on effeclive and crealive slralegies lo soIidify lhe coaIilion and uIlinaleIy lo slop lhe enlry of
lhe conpany lhrough a series of prolesl aclions cuIninaling in lhe hunger slrike lefore lhe Deparlnenl
of Lnvironnenl and NaluraI Resources (DLNR) in Novenler 2OO9. As of lhis vriling, lhe MNI pernil
is lenporariIy revoked.
The fourlh seclion is lhe acluaI verlalin reporl of lhe NalionaI Conlacl Ioinl (NCI) of Norvay
on lhe conpIainl Iodged againsl Inlex Resources for vioIaling lhe OLCD CuideIines for MuIlinalionaI
Lnlerprise. The conpIainl vas sulnilled ly lhe Norvegian NCO, Iulure in Our Hands (IIOH),
in conjunclion vilh IIILinks (IhiIippine Indigenous IeopIes Links) and MiddIesex Universily
Deparlnenl of Lav in lhe UK, and ALAMIN (AIyansa Lalan sa Mina) in OrienlaI Mindoro. The NCI
found oul lhal nining hrn Inlex Resources had ollained a Iree, Irior, Inforned Consenl (IIIC) fron
lhe affecled indigenous peopIes lhrough queslionalIe procedures. The reporl poinled oul lhal lhere
vas aIso a gIaring defecl regarding undue inuence and Iack of lransparency in issues regarding fund
donalions. There is aIso a faiIure in adequaleIy assessing environnenlaI risks of lhe projecl and lhe
Iack of conpIiance lo lhe required discIosure lo lhe slakehoIders. The reporl vas reIeased in Novenler
2O11.
The hnaI seclion is a reproduclion of lhe reporl ly lhe Invesligalion Tean lasked ly lhe DLNR
lo invesligale lhe queslionalIe issuance of LCC lo Inlex Resources. The crealion of lhe Invesligalion
Tean vas a resuIl of lhe agreenenl reached during lhe hunger slrike in Novenler 2OO9. Due lo Iack
of resources in doing lhe invesligalion, lhe reporl vas conpIeled and reIeased onIy in Decenler 2O11.
As aIready afhrned in lhe case sludy, Mindoros sociaI novenenl couId cIain viclory for lhe
quaIily of coIIeclive aclions il pursued - lhe exlensive conscienlizalion canpaign and lhe effeclive
prolesl aclions lhal il vas alIe lo Iaunch and suslain. Such coIIeclive aclions enpovered lhe parlicipanl
seclors, in lerns of harnessing lhe process of engagenenl, and in reaIizing lhe fuII polenliaI of lhe
sociaI novenenls capacily for peopIe pover noliIizalion.
Hovever, lhe viclory is onIy haIf-von, nore chaIIenges avail lhe slakehoIder connunilies for
lhe lhreal of Iarge-scaIe nining sliII persisls. In lhe IhiIippines, lhe poIicy of lrade IileraIizalion in
lhe Mining Acl of 1995 had aIready sel lhe direclion for conlinuing pIunder of lhe counlrys nineraI
resources ly lhe lransnalionaI corporalions. The lrend of aggressive pronolion of Iarge-scaIe nining
ly lhe nalionaI governnenl has nol signihcanlIy changed. In lhis conlexl, lhe IocaI viclory cannol le
considered decisive and hnaI. And lhe slruggIe lo save lhe fragiIe ecoIogy conlinues!
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CBCP-NA55A
(Iounding Menler of ALAMIN)
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1 C
1 Mindoro NickeI Irojecl: Conlexl, Hislory and
Issues in lhe SlruggIe lo Defend lhe Threalened IsIand LcoIogy . . . . . . . . . . . . . . . . . . . 1
2 IhiIippines: Mining or Iood` Case Sludy: NickeI Mining - Mindoro IsIand. . . . . . . . 16
3 Connunily Organizing for LnvironnenlaI Defense
A Case Sludy of MuIli-SlakehoIder MoliIizalion in OrienlaI Mindoro . . . . . . . . 47
4 IinaI Slalenenl - ConpIainl fron lhe Iulure in Our Hands (IIOH)
Againsl Inlex Resources Asa and lhe Mindoro NickeI Irojecl . . . . . . . . . . . . . . . . . . . . 66
5 Invesligalion Reporl on lhe QueslionalIe Issuance of
LnvironnenlaI ConpIiance Cerlihcale (LCC) lo Inlex Resources . . . . . . . . . . . . . . . . 117
A 1 M A1M n S S A nASSA A L M ALAMln 117
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INVLS1IGA1ICN kLCk1
CN 1nL ULS1ICNA8LL ISSUANCL CI
LNVIkCNMLN1AL CCMLIANCL CLk1IIICA1L LCC
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ThIs rcpnrt was rc!cascd In Dcccmbcr 2011, aftcr thc InvcstIgatInn
was cnnc!udcd pursuant tn thc mandatc gIvcn by DENR 5pccIa!
Ordcr 2009-921, crcatIng a tcam nf cxpcrts, rcprcscntatIvcs
frnm cIvI! sncIcty nrganIzatInns and fcdcratInn nf IndIgcnnus
pcnp!cs, taskcd tn InvcstIgatc Issucs and cnnccrns rc!atIvc tn thc
qucstInnab!c Issuancc nf EnvIrnnmcnta! Cnmp!Iancc CcrtIcatc
(ECC) tn Intcx Rcsnurccs
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EXECUTIVE 5UMMARY
1.1 Background
On 27 Novenler 2OO9, lhen Deparlnenl of Lnvironnenl and NaluraI Resources (DLNR) Secrelary
}oseIilo Alienza issued SpeciaI Order 2OO9-921 lenporariIy revoking LCC-CO-O9O4-OO7-2721 of Inlex
Resources IhiIippines, Inc., for lhe proposed Mindoro NickeI Irojecl Iocaled in lhe nunicipaIilies of
Vicloria, IoIa, and Socorro in OrienlaI Mindoro and lhe nunicipaIily of SalIayan, OccidenlaI Mindoro.
The Order aIso provides for lhe crealion of lhe Invesligalion Tean lo le conposed of independenl
experls chosen ly lhe IrovinciaI Covernnenls of OrienlaI Mindoro and OccidenlaI Mindoro and lhe
DLNR. The Tean shaII aIso incIude represenlalives fron lhe civiI sociely organizalions and indigenous
peopIes federalions lased in lhe lvo provinces.
1.2 Contcxt
LCC-CO-O9O4-OO7-2721 of lhe Mindoro NickeI Irojecl of Inlex Resources IhiIippines, Inc. (Inlex) /
AgIulang Mining Corporalion vas issued on 14 Ocloler 2OO9. The projecl covers aloul 11,OOO heclares
lelveen lhe nunicipaIilies of SalIayan, OccidenlaI Mindoro Vicloria, and OrienlaI Mindoro. The
projecl aIso incIudes conveyor lransporl syslen of nine ores fron lhe nining sile passing lhrough lhe
nunicipaIily of Socorro, OrienlaI Mindoro dovn lo lhe processing sile, vhich is proposed lo le Iocaled
al lhe MunicipaIily of IoIa, OrienlaI Mindoro. The LCC vas issued on lhe lasis of lhe LnvironnenlaI
Inpacl Slalenenl (LIS) daled Seplenler 2OO9 sulnilled ly lhe Inlex Resources IhiIippines, Inc.
Afler len days of Hunger Slrike ly residenls of OrienlaI and OccidenlaI Mindoro and lheir supporlers
denanding lhe canceIIalion of lhe queslioned LCC and afler a diaIogue lelveen ofhciaIs fron lhe lvo
provinces, Secrelary Alienza, and olher DLNR ofhciaIs, SpeciaI Order 2OO9-921 vas issued and lhe
LCC vas lenporariIy revoked.
The Invesligalion Tean vas ordered lo Iook inlo lhe foIIoving aIIegalions allendanl lo lhe issuance
of lhe LCC lo lhe Inlex Resources IhiIippines, Inc., for lhe Mindoro NickeI Irojecl :
a. Thal lhe nining projecl Iacks sociaI acceplaliIily ,
l. Thal lhe environnenlaI conpIiance cerlihcale (LCC) issued and lhe environnenlaI inpacl
assessnenl (LIA) did nol foIIov lhe proper procedures/Iavs as expressed in lhe LIA Reviev
Connillee Reporl vhich reconnended deniaI of lhe LCC ,
c. Thal lhe proposed nining projecl faIIs vilhin lhe valershed of Mag-asavang Tulig River, and ,
d. Thal lhe nining projecl Iacks lhe free, prior and inforned consenl (IIIC) of aII lhe affecled
indigenous peopIes connunilies in lhe projecl area.
Since lhe LCC vas aIready issued aIleil lenporariIy revoked and lhe order vas for a lhorough
and inparliaI invesligalion of aII aIIegalions allendanl lo lhe issuance of lhe LCC, lhe Invesligalion
Tean focused on lhe alove issues ly revieving lhe LIA process and lhe sulnilled LIS reporl and
concenlraled on lhe vaIidily of lhe foregoing aIIegalions.
The Invesligalion Tean lakes a posilive oulIook on lhe direclive of lhe DLNR Secrelary for
a lhorough and inparliaI prole on aII lhe aIIegalions allendanl lo lhe issuance of lhe LCC lo Inlex
Resources IhiIippines, Inc., as:
INVLS1IGA1ICN kLCk1 CN 1nL LCC CI IN1Lx
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a. a denonslralion of a sense of fairness and juslice on lhe parl of DLNR ,
l. a parl of lhe feedlack nechanisn in lhe conducl of lhe LIA process , and ,
c. an opporlunily lo reclify dehciencies and inhrnilies in lhe DLNR issuances and process foIIoved
ly lhe DLNR and lhe Iroponenl.
1.3 ConcIusions
1.3.1 Tnc mining prcjcc| |ac|s sccia| acccp|a|i|i|q.
HIgh!Ights
a. IulIic consuIlalion and prior approvaI ly lhe sanggunian concerned is required under Seclions
26 and 27 of lhe LocaI Covernnenl Code of 1991. Seclion 7O of lhe IhiIippine Mining Acl of
1995 slipuIales lhal lhe LIA shaII foIIov procedures under lhe IhiIippine LnvironnenlaI Inpacl
Slalenenl Syslen incIuding Seclions 26 and 27 of lhe LocaI Covernnenl Code.
5uppnrtIng 5tatcmcnts
WhiIe lhe Mining Acl of 1995 aulhorizes lhe governnenl lo enler inlo a MineraI Iroduclion
Sharing Agreenenl (MISA) or a IinanciaI or TechnicaI Assislance Agreenenl (ITAA) vilh
a conlraclor, lhe LocaI Covernnenl Code of 1991 and lhe Mining Acl of 1995 require prior
consuIlalion and approvaI ly lhe Sanggunian concerned lefore a nining projecl is inpIenenled
on lhe ground.
In lhe conducl of ils LIA, Inlex Resources and ils preparers have adopled lhe poIicies and
procedures conlained in a) Adninislralive Order No. 42, issued lo ralionaIize lhe inpIenenlalion
of lhe IhiIippine LnvironnenlaI Inpacl Slalenenl Syslen and for olher purposes, l) DLNR
Adninislralive Order No. 2OO3-3O, vhich is lhe InpIenenling RuIes and ReguIalions for lhe
IhiIippine LnvironnenlaI Inpacl Slalenenl Syslen, and lhe c) suppIenenlaI IroceduraI
ManuaI of 2OO7 and LIA Reviev ManuaI. Hnwcvcr, thc thrcc Issuanccs faI!cd tn Incnrpnratc
thc prnvIsInns nf 5cctInn 70 nf thc PhI!IppInc MInIng Act nf 1995 and nf 5cctInn 27 nf thc
Lnca! Gnvcrnmcnt Cndc nf 1991, and thcrcfnrc, arc nnt cnnsIstcnt wIth thc saId prnvIsInns nf
cxIstIng !aws.
In addilion, lhe nining projecl Iacks lhe sociaI acceplaliIily as expressed in lhe 25- year nining
noraloriun ordinances of lhe Irovince of OrienlaI Mindoro and lhe MunicipaIily of SalIayan,
OccidenlaI Mindoro, and sulsequenlIy, of lhe Irovince of OccidenlaI Mindoro and olher
nunicipaIilies lherein. On severaI occasions, lhe IrovinciaI Covernnenl of OrienlaI Mindoro
issued cease and desisl orders againsl aclivilies reIevanl lo lhe Mindoro NickeI Irojecl i.e.
pulIic scoping, pulIic consuIlalions and hearings. These are cIear expression and nanifeslalion
of rejeclion of lhe nining projecl ly lhe peopIe of OrienlaI Mindoro.
1.3.2 The ElA Retleu Commlttee (ElARC) recommended the denla| of the ECC
to the lntex Resources Phl|llnes, lnc., for the Mlndoro Nlcke| Pro]ect.
HIgh!Ights
a. The LIARC, on a vole of 4:3, reconnended lhe deniaI of lhe LCC due lo lhe foIIoving reasons
(LIA Reviev Connillee Reporl, RoIIon, 18 Novenler 2OO9) :
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- Iack of laseIine infornalion parlicuIarIy on lhe lerreslriaI ora and fauna of lhe conveyor
roule, lhe processing pIanl, lhe Residue Slorage IaciIily, and lhe lovnship, considering lhal
Mindoro IsIand is a unique liogeographic region,
- poor deIinealion of inpacl areas and supporling discussion on hydroIogy is nol lhorough,
and,
- overaII, lhe inlegralion anong noduIes has leen very poor, naking inference of possilIe
najor inpacls vague and exlreneIy difhcuIl lo evaIuale.
b. The Investigation Team did not fnd any document justiIying the reversal or setting aside
oI the decision and recommendation oI the EIA Review Committee.
1.3.3 The entlronmenta| lmact assessment (ElA) dld not fo||ou the roer rocedure.
HIgh!Ights
a. The LIA process proceeded despile lhe faiIed scoping in ViIIa Cerveza, Vicloria, OrienlaI
Mindoro, lhe alorled pulIic hearing al IoIa, OrienlaI Mindoro, and lhe queslionalIe consuIlalion
al Manlurao, OccidenlaI Mindoro.
l. RuIes and nelhod on lhe idenlihcalion of nenlers of lhe LIARC are Ioose vhich can delernine
lhe oulcone of lhe LIARC decision and reconnendalion.
c. WhiIe lhe LIARC recognized lhe noraloriun ordinance, LM-DLNR did nol lake inlo accounl
lhe 25-year noraloriun on Iarge-scaIe nining, cease-and-desisl orders issued ly lhe IrovinciaI
Covernnenl of OrienlaI Mindoro, and slrong opposilion fron lhe civiI sociely during lhe LIA
process.
d. LM-DLNR aIIoved lhe opposing priorilies in deveIopnenl and conlradiclory posilions
lelveen lhe nalionaI and IocaI governnenl lo Iinger al lhe expense of lhe Mindorenos and
aIIoving lhe proponenl lo lake a huge risk, lolh hnanciaIIy and of lhe projecl leing rejecled ly
lhe IocaI popuIalion. DLNR even venl lo lhe exlenl of issuing an LCC despile a reconnendalion
of deniaI fron lhe LIA Reviev Connillee.
e. IoIIoving a proceduraI nanuaI does nol exenpl LM or lhe Iroponenl fron aliding ly lhe
provisions of olher exisling Iavs such as Seclion 7O of lhe IhiIippine Mining Acl of 1995 and
Seclion 27 of lhe LocaI Covernnenl of 1991.
f. Iushing lhrough vilh nining in Mindoro is Ieading lo division and civiI dislurlance as
exenpIihed ly lhe alorled pulIic hearing in IoIa, OrienlaI Mindoro and in lhe queslionalIe
consuIlalion in Manlurao, OccidenlaI Mindoro.
IoIIoving DAO 2OO3-3O, hrsl and lhe second IeveI scoping ains lo galher pulIic senlinenls and
vaIid lechnicaI and sociaI issues reIaled lo lhe projecl. Wilh lhese, lhe Ialilude of lhe LIA sludy
is hnaIized fron lhe oulpul of lhe sile scoping. The LIS docunenl incIuded lhe scoping nalrix
lhal lears lhe issues idenlihed lolh during lhe hrsl and second IeveI scoping. This indicales
acconpIishnenl of lhe procedure as indicaled ly DAO 2OO3-3O. Minules of lhe Scoping Session
faciIilaled ly lhe LIA Reviev Connilee shoved lhal lhe Sile Scoping on 2O Ocloler 2OO8 vas
decIared IAILLD. The decIaralion ly lhe LIARC Chairnan Dr. Ldgardo David vas due lo a Cease-
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and-Desisl Order served ly lhe IrovinciaI Covernnenl of OrienlaI Mindoro lefore lhe nandaled
progran of aclivilies (lased on DAO 2OO3-3O) vas concIuded. The LM sliII convened lhe nenlers
for lhe reviev connillee even as lhe sile scoping vas decIared a faiIure ly LIARC.
On 14 May 2OO9, lhe pulIic hearing scheduIed in IoIa, OrienlaI Mindoro vas alorled afler a lense
and Iong discussion lelveen pro and anli-nining advocales. Anolher pulIic hearing scheduIed in
Vicloria, OrienlaI Mindoro lhe foIIoving veek vas aIso poslponed indehnileIy.
LM and lhe Iroponenl heId a pulIic consuIlalion in Manlurao on 27 May 2OO9 in vioIalion
of DAO 2OO3-3O since Manlurao is nol a slakehoIder as far as lhe LIS is concerned and lhe
Sangguniang IanIaIavigan of OccidenlaI Mindoro passed a resoIulion oljecling lo lhe conducl of
lhe said consuIlalion. Despile lhe IegaI and proceduraI queslions, lhe LIA process proceeded.
WhiIe lhe LIARC reconnended deniaI of LCC, lhen DLNR Secrelary Lilo Alienza disregarded lhe
LIARC reconnendalion and issued lhe LCC lo MNI on 14 Ocloler 2OO9. Seclion 9.2.C. of DAO
2OO3-3O slales lhal lhe deciding aulhorily nusl cile slrong and conpeIIing reasons, lases and/or
juslihcalions vhenever reversing or overlurning lhe reconnendalions of lhe reviev parlies. No
such slrong and conpeIIing reasons vere given.
1.3.4 The roosed mlnlng slte ls ulthln the uatershed of Mag-asauang Tublg Rlter.
HIgh!Ights
a. The geographic coordinales specify lhe exacl Iocalion of lhe nining area, lhe naps spaliaIIy
indicale lhe projecl area shoving aIso lhe Mag-asavang Tulig River and ils lrilularies, and lhe
projecl descriplion cIearIy slales lhal lhe Irojecl Area is Iocaled vilhin lhe valershed of Mag-
asavang Tulig River.l.
c. The Mag-asavang Tulig River Walershed is a naluraI geographic fealure and does nol need lo
le procIained as a valershed lo le prolecled. A valershed is a naluraI Iife supporl ecosyslen.
d. The valershed of Mag-asavang Tulig River is an environnenlaIIy crilicaI area and a crilicaI
valershed.
e. The danage due lo nining operalions is irreversilIe vilh Iong lern effecls and lhe cosls of lhe
danage and ils effecls are nol incIuded in lhe projecl feasiliIily sludy nor in lhe LnvironnenlaI
Inpacl Slalenenl.
The nining sile faIIs vilhin lhe crilicaI Mag-asavang Tulig Walershed. Il is Iocaled in an area
drained ly lvo rivers forning one of lhe Iargesl rivers in OrienlaI Mindoro. In lhe LIS sulnilled
ly lhe projecl proponenl, lhe geographic coordinales specify lhe exacl Iocalion of lhe nining area,
lhe naps spaliaIIy indicale lhe projecl area shoving aIso lhe Mag-asavang Tulig River and ils
lrilularies, and lhe projecl descriplion cIearIy slales lhal lhe Irojecl Area is Iocaled vilhin lhe
valershed of Mag-asavang Tulig River.
Mag-asavang Tulig River ovs lhrough lhe lovns of Vicloria and Naujan lefore il discharges lo
lhe sea. IanggaIaan River lranches oul fron Mag-asavang Tulig and joins ucayao River, anolher
najor river in OrienlaI Mindoro vhich ovs lhrough CaIapan Cily lefore il discharges lo CaIapan
ay.
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There are aloul 47,3OO heclares of rice areas in lhe lovns of Vicloria and Naujan and cily of CaIapan
al lhe dovnslrean of lhe Mag-asavang Tulig River producing aloul 188,OOO nelric lons per year.
Aloul 37,5OO heclares are irrigaled. Vicloria, Naujan, and CaIapan conlrilule aloul 52 in rice
areas and in annuaI rice produclion of lhe province of OrienlaI Mindoro (riehng Kil 2OO5, IIDO,
IrovinciaI Covernnenl of OrienlaI Mindoro), These rice areas are Iocaled in lhe ood pIains of
Mag-asavang Tulig and ucayao Rivers. Tvo nalionaI irrigalion syslens diverling valer fron lhe
Mag-asavang Tulig and ucayao Rivers, vilh dans respecliveIy Iocaled al Iinagsalangan and
MuIavin lolh in Naujan, have a lolaI conlined service area of 8,OOO heclares (AnnuaI Reporl 2O11,
NIA-CaIapan, MIMARO-IMO Ofhce). AcluaI irrigalion service areas fron lhe lvo NIA syslens are
nov reduced lo aloul 57 and lo as Iov as 18 in one syslen lecause of siIlalion and changing
river course due lo increased siIlalion and heavier runoff. The valershed of Mag-asavang Tulig
River is an environnenlaIIy crilicaI area lased on IrocIanalion 2146 and is a crilicaI valershed as
dehned ly ID 7O5.
On 16 }uIy 2OO1, DLNR Secrelary AIvarez issued a Nolice of CanceIIalion/ Terninalion vherein
he inforned AgIulang Mining Corporalion lhal MISA No. 167-2OOO-IV had leen canceIIed on
lhe slaled ground lhal lhe area il covers faIIs vilhin an inporlanl valershed area requiring lhe
proleclion of lhe DLNR.
LM-DLNR and lhe Iroponenl had leen reasoning oul during pulIic foruns and ILC canpaigns
lhal Mag-asavang Tulig Walershed is nol a procIained valershed and, is lherefore, open lo
nining. Seclion 19f of lhe IhiIippine Mining Acl of 1995 (RA 7942) slales lhal nineraI agreenenl
or hnanciaI or lechnicaI assislance agreenenl appIicalions shaII nol le aIIoved in niIilary and
olher governnenl reservalions, ., oId grovlh or virgin foresls, procIained valershed foresl
reserves, viIderness area, elc. Il shouId le poinled oul lhal vhal RA 7942 specihes is procIained
valershed foresl reserves and nol sinpIy procIained valershed. Whal needs lo le procIained
are lhe foresl reserves in a valershed, vhere lhe vord valershed is a descriplor of lhe nain suljecl
vhich is foresl reserves. The Mag-asavang Tulig valershed is a valershed and does nol need lo
le procIained as one lecause a valershed is a hydroIogic and geographic fealure lhal naluraIIy
perforns ils funclionaI roIe according lo hydrauIic Iavs and lhe hydroIogic, vilh or vilhoul a
procIanalion.
Wilh lhe juslihcalion coning fron lhe LM-DLNR and lhe Iroponenl lhal lhe valershed of Mag-
asavang Tulig is NOT a procIained valershed, lhe LIA process proceeded vilhoul sufhcienlIy
and seriousIy considering lhe signihcance and inpIicalions of lhe valershed in lhe delerninalion of
slakehoIders and affecled connunilies, in lhe choice of Iocalions of pulIic consuIlalions and pulIic
hearings, in idenlifying reIevanl issues and prolIens, in lhe fornuIalion of niligaling neasures,
and in lhe vrile up of lhe conponenls/noduIes of lhe LIS Reporl.
Iroleclion is a naller of necessily and aclion in lhe DecIaralion of IoIicy of lhe NIIAS Acl, vhiIsl,
procIanalion is for lhe eslalIishnenl and nanagenenl of a syslen of prolecled areas for lhe
purposes of pIanning and effeclive adninislralion of lhe said areas.
Mining operalions do nol onIy conpronise lhe environnenl, nining operalions renove and
deslroy lhe valershed ilseIf Ieaving lehind voIuninous nining vasles, as lhe nineraI specihcaIIy
nickeI is onIy aloul 1 of lhe ore (LIS, Seclion 3, page 3-4O, TalIe 3-9). This can aIso le vieved as
lransferring lhe nounlain inlo lhe processing area and crealing a nounlain of nining vasles. An
oljeclive assessnenl of lhe environnenlaI inpacl of nining operalions viII prove lhe irreversilIe
danage lo lhe valershed and lhe negalion of ils funclionaI roIe as a naluraI Iife supporl ecosyslen.
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When a naluraI fornalion or a naluraI geoIogic fealure Iike a valershed is renoved or deslroyed,
specihcaIIy vhen lhe nounlain ilseIf vhich conslilules lhe upper valershed area, is renoved and
deslroyed, lhen il is an irreversilIe dislurlance and deslruclion. There is no vay lo repair nor
reslore a nined nounlain or a danaged valershed afler lhe sulsurface Iayers are dug and lhe ores
are processed.
The cosl and lenehl anaIysis in lhe hnanciaI feasiliIily sludy of lhe projecl does nol vaIuale and
consider lhe cosls of danages lo lhe valershed ilseIf, lo lhe environnenl, lo peopIes heaIlh, and lo
infraslruclures. Neilher does il vaIuale and consider lhe effecls of ooding lo agricuIlure in generaI
and Ioss of crops anong farners in parlicuIar. Nor can lhe anaIysis pul vaIue on lhe possilIe Ioss
of a singIe Iife due lo ooding or chenicaI poIIulion as a resuIl of nining.
The responsiliIily of DLNR focuses on conservalion, nanagenenl, deveIopnenl, and proper use of
nineraI resources. Under exisling Iavs of lhe counlry, nining as a projecl or progran or lusiness
enlerprise needs lo go lhrough a process of environnenlaI inpacl assessnenl and prior approvaI
ly lhe Sanggunian concerned lefore inpIenenlalion on lhe ground. }usl lecause nineraIs are
presenl, nornaIIy in ninule quanlily, does nol nean lhey are lo le nined.
The Iavs of nalure and hydrauIics diclale lhal lhe favor and priorily shouId le given lo environnenlaI
proleclion, and Iess lo shorl-lern econonic lenehls, and nore lo lhe lenehl of presenl and fulure
generalions. UnIess nan lhinks and noves and acls according lo lhis priorily, lhen nan is on his
vay lo seIf-deslruclion.
1.3.5 Tnc mining prcjcc| |ac|s |nc frcc, pricr an infcrmc ccnscn| cf a||
|nc affcc|c inigcncus pccp|cs ccmmuni|ics in |nc arca.
HIgh!Ights
a. Ccnsu||a|icn ui|n SADAK| an KA8||OGAN mcm|crs as rcsicn|s cf Vi||a Ccrtcza is ui|nin |nc
jurisic|icn cf |nc IocaI governnenl unil and covered ly Seclion 7O of RA 7942 and Seclion 27 of
RA 716O. Consenl lhal nighl cone fron SADAKI and KAILOCAN cannol represenl lhe IocaI
governnenl unils nuch nore le vieved as approvaI fron lhe concerned sanggunian.
l. In conpIiance vilh lhe requirenenls of IIRA of 1997, consuIlalions shouId have leen done vilh
aII II connunilies duIy represenled ly SANAMA, SASSAMA and KAMTI vhose anceslraI
donains are inpacled ly lhe proposed nining projecl.
The nining area and lhe area covered ly lhe MISA are vilhin lhe anceslraI donain cIains of
lhe AIangan and Tadyavan Mangyan lriles. ased on lhe LIS, lhe consuIlalions vere Iiniled lo
lhe nenlers of lhe AIangan/Tadyavan lrile represenled ly SADAKI and lhe nenlers of lhe
aIIeged angon/Ruang lrile represenled ly KAILOCAN. IncidenlaIIy, nenlers of lhese lvo
organizalions reside in arangay ViIIa Cerveza in lhe lovn of Vicloria, OrienlaI Mindoro. Moreover
lhe SADAKI group does nol represenl lhe AIangan and/or Tadyavan lriles. Likevise, lhe
Iegilinacy of lhe nev angon/Ruang lrile is leing conlesled ly lhe organizalions of lhe originaI
Mangyan lriles leIonging lo lhe AIangan and angon.
If lhe indigenous peopIes organizalions, SADAKI and KAILOCAN, vere considered as nere
nenlers of lhe larangay vhere lhey reside, lhe consuIlalion in generaI is governed ly Seclion
7O of RA 7942 and Seclion 27 of RA 716O vhich lolh require consuIlalion and prior approvaI ly
124 M C l L u 8
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lhe Sanggunian concerned. The proposed nine sile aIlhough vilhin an anceslraI donain cIain, is
vilhin lhe jurisdiclion of lhe IocaI governnenl unils. The proof of consuIlalion vilh lhe II residenls
of ViIIa Cerveza cannol le a sulslilule lo consenl and approvaI of lhe sanggunian concerned.
On lhe olher hand, if lhe consuIlalions vere conducled in conpIiance vilh lhe provisions of IIRA
of 1997, lhe Tean Iooked al lhese consuIlalions as queslionalIe, if nol void, lecause il denied
parlicipalion fron Iegilinale hoIders of CADCs, in lhis case SANAMA and SASAMA of AIangan
lrile and KAMTI of Tadyavan lrile. In a case vhere a projecl is vilhin lhe anceslraI donain cIain,
consuIlalions shouId le done vilh aII II connunilies and nol vilh a Iiniled group in a connunily.
AII II connunilies are lhe ones vho shouId decide over aclivilies vilhin lheir anceslraI donains.
1.4 Summar of Recommendatlons
ased on lhe hndings of lhe invesligalion, lhe Tean is reconnending lhe foIIoving aclions:
1. CanceI LCC-CO-O9O4-OO7-2721 LCC issued lo Inlex Resources IhiIippines, Inc., for lhe Mindoro
NickeI Irojecl lecause
x The projecl Iacks sociaI acceplaliIily,
x LIA process is nol consislenl vilh Seclion 7O of lhe IhiIippine Mining Acl of 1995 and
Seclion 27 of lhe LocaI Covernnenl Code of 1991,
x LIA Reviev Connillee reconnended deniaI of lhe LCC,
x ConsuIlalion in lhe anceslraI donain area vas Iiniled onIy lo lhe SADAKI and KAILOCAN
Mangyan organizalions and nol fron lhe organizalions of AIangan and Tadyavan Mangyan
lrile, and,
x InpIicalion and ranihcalion of lhe Iocalion of lhe Mindoro NickeI Irojecl, an environnenlaIIy
crilicaI projecl in a crilicaI valershed area, vere nol adequaleIy considered during lhe LIA
process.
2. Revoke lhe MISA of lhe Mindoro NickeI Irojecl lecause lhe projecl is Iocaled in lhe crilicaI
valershed area of Mag-asavang Tulig River and nining viII resuIl lo lhe irreversilIe
deslruclion of lhe valershed and Ioss of ninely-nine percenl of ore as nining vasles.
3. RalionaIize and harnonize appIicalion and enforcenenl of exisling Iavs ly incorporaling
Seclion 7O of lhe Mining Acl of 1995 and Seclion 27 of lhe LocaI Covernnenl Code of 1991
in lhe Adninislralive Order No. 42, lhe DLNR Adninislralive Order No. 2OO3-3O, and in lhe
suppIenenlaI IroceduraI ManuaI of 2OO7 and LIA Reviev ManuaI.
4. Respecl and slriclIy inpIenenl Seclion 7O of lhe IhiIippine Mining Acl of 1995 and Seclion
27 of lhe LocaI Covernnenl Code of 1991 ly requiring prior consuIlalion and approvaI ly aII
sanggunian concerned lefore lhe issuance of lhe LCC.
5. Irovide nechanisn for a lransparenl and conprehensive reviev of lhe LIS ly requiring fair
vaIualion and fuII pulIic discIosure of lolh posilive and negalive inpacls of lhe projecls.
6. InpIenenl lhe provisions of IIRA lo nake lhe IIIC process incIusive of aII lhe direcl and
indirecl II slakehoIders and connunilies.
7. Consider lhe aved IIIC inoperalive and non-linding.
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INTRODUCTION
The Invesligalion Tean, lasked lo invesligale lhe aIIegalions allendanl lo lhe LCC-CO-O9O4-OO7-2721,
daled 14 Ocloler 2OO9, issued lo Inlex Resources IhiIippines, Inc., for lhe Mindoro NickeI Irojecl (MNI),
vas crealed under Deparlnenl of Lnvironnenl and NaluraI Resources SpeciaI Order (DLNR SO)
2OO9-921 daled 27 Novenler 2OO9. Iending conpIelion of lhis invesligalion, lhe said LnvironnenlaI
ConpIiance Cerlihcale (LCC) vas lenporariIy revoked.
As provided in lhe Deparlnenls Order, lhe Invesligalion Tean is lo le conposed of represenlalives
fron lhe CiviI Sociely and Indigenous IeopIes Iederalion fron OrienlaI and OccidenlaI Mindoro
logelher vilh seIecled experls chosen and appoinled ly lolh IrovinciaI Covernnenls and lhe DLNR.
The fundanenlaI issues lhal need lo le resoIved and idenlihed lo le lhe focaI suljecl nallers for
lhis invesligalion are lhe foIIoving :
1. SOCIAL ACCLITAILITY AND MININC MORATORIUM. Seclion 7O of lhe Mining Acl
prescriles lhal LCC issuance shouId foIIov LIA procedures, vhich incIude conpIiance lo Seclions
26 and 27 of lhe LocaI Covernnenl Code of 1991, requiring sociaI acceplaliIily for lhe projecl,
specihcaIIy for lhe prior approvaI of lhe Sanggunian concerned. The LnvironnenlaI Inpacl
Assessnenl (LIA) process and issuance of lhe LCC are deened lo have conlravened Seclion 7O of
lhe Mining Acl of 1995 and Seclion 27 of lhe LocaI Covernnenl Code of 1991, and did nol consider
lhe expressed opposilion of lhe peopIe of Mindoro as lhey respecl lhe 25-year Mining Moraloriun
ordinances of lhe Irovince of OrienlaI Mindoro and MunicipaIily of SalIayan enacled in }anuary
2OO2 and Decenler 2OO7, respecliveIy, and nore recenlIy in Novenler 2OO9, of lhe Irovince of
OccidenlaI Mindoro.
2. IRLL AND IRIOR INIORMLD CONSLNT (IIIC) IROM THL IIs OI MINDORO (THL
MANCYANS). On 26 Ielruary 1996, prior lo lhe granling of lhe expIoralion pernil lo Mindex
(nov Inlex), Cerlihcale of AnceslraI Donain CIain (CADC) No. R4-CADC-O24 vas approved for
lhe Sanahan ng nga Nagkakaisang Mangyan AIangan, Inc. (SANAMA). SiniIarIy, lhe Mangyan
Tadyavan, lhrough lheir organizalion, Kapyan Agpaysarigan Mangyan Tadyavan Inc. (KAMTI),
had leen issued an approved appIicalion for CADC No. R4-CADC-O85. Il is aIIeged lhal porlions
of lheir Iand are leing encroached ly lhe nining appIicalion vilhoul lheir free, and prior inforned
consenl. In 2OO1 lhe forner Secrelary of lhe DLNR, Heherson AIvarez, canceIIed lhe MISA, quoling
Seclion 4c of IIRA 1997 IRRs and decIaring lhal Ag|u|ang nas nc| sccurc sucn ccnscn| (rcfcrring |c
|nc |P|C) fron CADC cIainanls naneIy, SANAMA, SASSAMA, and KAMTI.
The Tean evenluaIIy decided lo focus on consuIlalion vilh lhe IIs (lhe Mangyans) lecause lhe LIA
process conducled for lhe Mindoro NickeI Irojecl did nol incIude lhe IIIC and lhe issue needs a
separale and nore in-deplh invesligalion. The IIIC is a provision of lhe Indigenous IeopIes Righls
Acls of 1997 (IIRA) required for any projecl vilhin an anceslraI donain, a requirenenl siniIar
and paraIIeI lo lhe approvaI ly Sanggunian concerned under lhe LocaI Covernnenl Code of 1991
lefore any projecl or progran is inpIenenled.
3. OSLRVANCL OI IROILR IROCLDURLS IN THL CONDUCT OI LIA AND ISSUANCL OI
LCC. The issuance of LCC vas deened highIy irreguIar and queslionalIe lecause lhe LIA sludy
conducled for lhe Mindoro NickeI Irojecl (MNI) did nol pass lhe lechnicaI scruliny of lhe LIA
Reviev Connillee (LIARC), vhich voled nol lo give dehnilive endorsenenl for lhe projecl. The
Iack of lransparency and olservance of appIicalIe procedures in lhe conducl of lhe LCC issuance
vas aIso raised and requesled lo le suljecled lo lhis invesligalion.
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4. THL IROIOSLD MINDORO NICKLL IRO}LCT IS WITHIN A WATLRSHLD. Il vas aIIeged
ly lhe IocaI governnenl unils, lhe Church and lhe civiI sociely organizalions lhal lhe projecl
is Iocaled vilhin a crilicaI and cIassihed valershed as decIared and idenlihed in ils IrovinciaI
IhysicaI Iranevork IIan (IIII). The nining sile is reporled lo have encroached on lhe Mag-
asavang Tulig Walershed, lhe Iargesl source of irrigalion valer for lhe 4O,OOO heclares of rice Iands
in CaIapan Cily, and lhe lovns of Naujan, aco and Vicloria, in OrienlaI Mindoro. If lhe LCC for
environnenlaIIy crilicaI projecl is issued for a crilicaI valershed area, lhis issue lruIy varranls due
invesligalion.
On 2O }anuary 2O1O, in a neeling heId vilh DLNR ofhciaIs in CaIapan Cily, vilh lhe Ofhce of lhe
Covernor of OrienlaI Mindoro and OccidenlaI Mindoro, as veII as vilh olher LCU represenlalives, a
consensus vas lhreshed oul as lo lhe conposilion of lhe Invesligalion Tean foIIoving lhe DLNR SO
No. 2OO9-921. The Invesligalion Tean shaII le conposed of lhree noninees each fron lhe Irovinces
of OrienlaI Mindoro & OccidenlaI Mindoro and lhe DLNR, pIus represenlalives fron lhe civiI sociely
organizalions and indigenous peopIes federalions lased in lhe lvo provinces, lolaIIing lo lhirleen (13)
nenlers.
The Invesligalion Tean vas nol innedialeIy convened afler lhe order for ils crealion vas
pronuIgaled and afler lhe agreenenl vas reached in }anuary 2O1O as lo ils nenlership. There vere
prolIens in hnaIizing lhe acluaI conposilion of lhe Tean lecause on 23 May 2O1O, lhen Secrelary
Horacio Ranos appoinled nenlers of lhe Tean in addilion lo lhe lhree DLNR noninees fron lhe fron
Ioresl Managenenl ureau (IM), NalionaI Waler Resources oard (NWR), and NalionaI Inslilule
of CeoIogicaI Sciences (NICS), vilhoul lhe knovIedge of lhe IrovinciaI Covernnenls of OrienlaI and
OccidenlaI Mindoro and vilhoul lhe necessary quaIihcalions as required and slipuIaled in lhe originaI
direclive |Annex Vj. The agreenenl specihed onIy lhree noninees each fron lhe DLNR and fron
lhe IrovinciaI Covernnenls of OrienlaI and OccidenlaI Mindoro pIus represenlalives fron lhe civiI
sociely organizalions and indigenous peopIes federalions lased in lhe lvo provinces. On 27 }uIy 2O1O,
Secrelary Ranon Iaje issued anolher DLNR SpeciaI Order 2O1O-557 specifying addilionaI nenlers of
lhe Invesligalion Tean.
A joinl Ieller fron lhe lvo Covernors of lhe provinces of OrienlaI and OccidenlaI Mindoro daled 24
Augusl 2O1O, vas senl lo lhe Ofhce of lhe DLNR Secrelary regislering a cIarihcalory non-concurrence
lo lhe addilionaI nenlers of lhe Invesligalion Tean nenlioned in lhe DLNR SpeciaI Orders, Series of
2O1O in excess of lhirleen nenlers as originaIIy agreed upon |Annex VIIj. There vas a foIIov-up Ieller
fron Covernor UnaIi daled 24 Novenler 2O1O
The Invesligalion Tean vas evenluaIIy convened and had ils neeling on O5 Novenler 2O1O,
vhose nenlers conprised of represenlalives fron civiI sociely, indigenous peopIes federalion and
seIecled experls fron lolh provinces of OrienlaI and OccidenlaI Mindoro. DLNR noninees fron
Ioresl Managenenl ureau, NalionaI Waler Resources oard, and U.I NalionaI Inslilule of CeoIogicaI
Sciences vere Ialer idenlihed fron previous ninules of coordinalion neelings anong represenlalives
fron LM, lhe LCUs, lhe civiI sociely organizalions, and indigenous peopIes (lhe Mangyans). The
DLNR noninees fron IM, NWR, and NICS vere evenluaIIy inviled lul onIy lhe lvo represenlalives,
IM and NWR, responded lo lhe lask and joined lhe Tean in lhe succeeding neelings.
During lhe course of lhe invesligalion, il vas decided during a fornaI neeling lo vrile lhe DLNR
Secrelary, lhe Covernors of OrienlaI and OccidenlaI Mindoro so lhal lhe lhree ofhciaIs couId cIarify
and decide on lhe hnaI nenlership as il vas leyond lhe jurisdiclion of lhe Invesligalion Tean lo do so
|Annex IXj. MeanvhiIe, lhe Invesligalion Tean proceeded vilh lveIve nenlers since lhe represenlalive
0 , 1' 2 5 2
fron NICS did nol allend any neeling and did nol parlicipale in lhe deIileralion despile fornaI nolices.
Hovever, lhe availed cIarihcalion and decision fron lhe lhree ofhciaIs did nol naleriaIize.
The Invesligalion Tean painslakingIy lried lo do ils nandale even vilh very IillIe IogislicaI supporl
(Annex X shovs lhe Minules of lhe Meelings of lhe Invesligalion Tean logelher vilh lhe Allendance
Sheels.). TechnicaI experlise vere conlriluled pro lono ly nenlers knovIedgealIe in lheir respeclive
professions: lvo Iavyers, experls in HydroIogy, AnlhropoIogy, and iodiversily, vhiIe lhe resl are
designaled represenlalives fron lhe LCUs and II Iederalions.
The Invesligalion Tean proled inlo lhe docunenlary naleriaIs reIalive lo lhe alove-nenlioned
issues parlicuIarIy lhe LIS Reporl of Seplenler 2OO9 and lhe LIARC Reporl, and deIileraled on lhe
veracily and vaIidily of lhe infornalion suljecled lo scruliny, incIuding lhe procedures foIIoved
during lhe LIA and lhe evenluaI issuance of lhe LCC lo lhe Inlex Resources IhiIippines, Inc., for lhe
MNI. As a generaI ruIe, lhe invesligalion considered docunenls and infornalion incIuded in lhe LIS
reviev ly lhe LIARC and ofhciaIIy received ly lhe LM-DLNR.
Inlervievs vere aIso conducled anong lhe slakehoIder connunilies and ofhciaIs of lhe IocaI
governnenl unils. Menlers of lhe LIARC vere aIso inlervieved ly lhe Invesligalion Tean. Despile
a vrillen requesl, visils and phone caIIs lo lhe ofhces of lhe LnvironnenlaI Inpacl Assessnenl
Managenenl Division (LIAMD) and lhe Lxeculive Direclor of lhe LnvironnenlaI Managenenl ureau
(LM), lhe Invesligalion Tean vas nol granled lhe opporlunily for an inlerviev lo galher nore
infornalion fron lhe LM-DLNR side.
Since lhe DLNR SpeciaI Order vas for a lhorough and inparliaI invesligalion of aII aIIegalions
allendanl lo lhe issuance of lhe LCC lo Inlex Resources IhiIippines, Inc., lhe Invesligalion Tean focused
on lhe alove issues and concenlraled on lhe aspecls and reasons vhy lhe LCC shouId nol have leen
issued Iooking fron lhe differenl angIes using olher Ienses.
IinaIIy, lhe reporl is conpIeled afler Iong and ledious sludy done in coIIaloralion anong lhe
connilled nenlers of lhe Invesligalion Tean. ul lhe vork is nol over yel, as ve avail lhe hnaI
decision on lhe issue, or as ve hang on lo our expeclalion lhal lhis vork viII neril serious consideralion
ly lhe very agency fron vhich lhe Invesligalion Tean received ils nandale.
The reconnendalions conlained in lhis reporl cannol lul le concIusive lecause il is expIicilIy
provided in lhe DLNR SpeciaI Order lhal: "Thc rcpnrt and cnnc!usInn nf thc InvcstIgatInn Tcam sha!!
bc thc basIs In rcsn!vIng thc Issucs surrnundIng thc ECC."
The Tean posiliveIy lakes lhe direclive of lhe DLNR Secrelary for a lhorough and inparliaI
invesligalion of aII aIIegalions allendanl lo lhe issuance of LCC in Ocloler 2OO9 lo lhe Inlex Resources
IhiIippines, Inc., for lhe Mindoro NickeI Irojecl, as a denonslralion of a sense of juslice and fairness
on lhe parl of DLNR, as a parl of lhe feedlack nechanisn in lhe conducl of lhe LIA process, and as an
opporlunily lo reclify dehciencies and inhrnilies in DLNRs issuances and IroceduraI ManuaIs vhich
did nol incorporale and consider Seclion 7O of lhe IhiIippine Mining Acl of 1995 and Seclion 27 of lhe
LocaI Covernnenl Code of 1991.
2 5OCIAL ACCEPTABILITY
SociaI acceplaliIily had leen dehned as lhe acceplaliIily of a projecl ly affecled connunilies lased on
a lineIy and inforned parlicipalion in lhe LnvironnenlaI Inpacl Assessnenl process parlicuIarIy vilh
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regard lo environnenlaI inpacls lhal are of concern lo lhen (DAO 2OO3-3O - IRR for lhe IhiIippine
LIS Syslen, Sec. 3-ff). Whelher lhe MNI had sociaI acceplaliIily vouId le deaIl vilh in lhis seclion.
LnvironnenlaI Inpacl Assessnenl (LIA) is lhe process lhal invoIves evaIualing and predicling
lhe IikeIy inpacls of a projecl, incIuding cunuIalive inpacls, on lhe environnenl during conslruclion,
connissioning, operalion and alandonnenl. Il aIso incIudes designing appropriale prevenlive,
niligaling, and enhancenenl neasures addressing lhese consequences lo prolecl lhe environnenl
and lhe connunilys veIfare. The process is underlaken ly, anong olhers, lhe projecl and/or LIA
ConsuIlanl, LM, a Reviev Connillee, affecled connunilies and olher slakehoIders (DAO 2003-30
IRR for the Philippine EIS System, Sec. 3-h).
I. FINDING5
A. IACTS AND LLCAL IRAMLWORK (in chronoIogicaI order)
1. IresidenliaI Decree 1586, signed ly Iresidenl Marcos on 11 }une 1978, eslalIished an LIS Syslen
incIuding lhe olher environnenlaI nanagenenl reIaled neasures and for olher purposes in lhe
pursuil of a conprehensive and inlegraled environnenlaI proleclion progran vherely lhe exigencies
of socio-econonic underlakings can le reconciIed vilh lhe requirenenls of environnenlaI quaIily.
2. RepulIic Acl No. 716O (RA 716O), aIso knovn as lhe LocaI Covernnenl Code of 1991, provides for
lhe IocaI governnenl code and a IocaI governnenl slruclure lhrough a syslen of decenlraIizalion,
IocaI aulonony, and devoIulion of povers lo lhe Iover IocaI governnenl unil.
3. RA 716O (LocaI Covernnenl Code of 1991) 5cctInn 2(c). Dcc|ara|icn cf Pc|icq. - Il is Iikevise lhe
poIicy of lhe Slale lo require aII nalionaI agencies and ofhces lo conducl periodic consuIlalions
vilh appropriale IocaI governnenl unils, nongovernnenlaI and peopIes organizalions, and
olher concerned seclors of lhe connunily lefore any projecl or progran is inpIenenled in lheir
respeclive jurisdiclions.
4. RA 716O (LocaI Covernnenl Code of 1991) 5cctInn 26. Du|q cf Na|icna| Gctcrnmcn| Agcncics in |nc
Main|cnancc cf |cc|cgica| 8a|ancc.- Il shaII le lhe duly of every nalionaI agency or governnenl-
ovned or conlroIIed corporalion aulhorizing or invoIved in lhe pIanning and inpIenenlalion of
any projecl or progran lhal nay cause poIIulion, cIinalic change, depIelion of non-renevalIe
resources, Ioss of crop Iand, rangeIand, or foresl cover, and exlinclion of aninaI or pIanl species,
lo consuIl vilh lhe IocaI governnenl unils, nongovernnenlaI organizalions, and olher seclors
concerned and expIain lhe goaIs and oljeclives of lhe projecl or progran, ils inpacl upon lhe
peopIe and lhe connunily in lerns of environnenlaI or ecoIogicaI laIance, and lhe neasures lhal
viII le underlaken lo prevenl or nininize lhe adverse effecls lhereof.
5. RA 716O (LocaI Covernnenl Code of 1991) 5cctInn 27. Pricr Ccnsu||a|icns Rcquirc. - No projecl or
progran shaII le inpIenenled ly governnenl aulhorilies unIess lhe consuIlalions nenlioned in
Seclions 2 (c) and 26 hereof are conpIied vilh, and prior approvaI of lhe sanggunian concerned is
ollained: Irovided, Thal occupanls in areas vhere such projecls are lo le inpIenenled shaII nol le
evicled unIess appropriale reIocalion siles have leen provided, in accordance vilh lhe provisions
of lhe Conslilulion.
6. RepulIic Acl No. 7942 (RA 7942), aIso knovn as lhe IhiIippine Mining Acl of 1995, inslilules a nev
syslen of nineraI resources expIoralion, deveIopnenl, uliIizalion and conservalion.
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RA 7942 (IhiIippine Mining Acl of 1995), 5cctInn 70 .|ntircnmcn|a| |mpac| Asscssmcn| (LIA) -
Lxcepl during lhe expIoralion period of a nineraI agreenenl or hnanciaI or lechnicaI assislance
agreenenl or an expIoralion pernil, an environnenlaI cIearance cerlihcale shaII le required lased
on an environnenlaI inpacl assessnenl and procedures under lhe IhiIippine LnvironnenlaI
Inpacl Assessnenl Syslen incIuding Seclions 26 and 27 of lhe LocaI Covernnenl Code of 1991
vhich require nalionaI agencies lo nainlain ecoIogicaI laIance, and prior consuIlalion vilh lhe
IocaI governnenl unils, nongovernnenlaI and peopIes organizalions and olher concerned seclors
of lhe connunily: Irovided, Thal a conpIeled ecoIogicaI prohIe of lhe proposed nining area
shaII aIso conslilule parl of lhe environnenlaI inpacl assessnenl. IeopIes organizalions and
nongovernnenlaI organizalions shaII le aIIoved and encouraged lo parlicipale in ensuring lhal
conlraclors/pernillees shaII olserve aII lhe requirenenls of environnenlaI proleclion.
8. Adninislralive Order No. 42, signed ly Iresidenl CIoria MacapagaI-Arroyo on O2 Novenler 2OO2,
ralionaIizes lhe inpIenenlalion of lhe IhiIippine LnvironnenlaI Inpacl Slalenenl (LIS) syslen
and gives aulhorily, in addilion lo lhe Secrelary of lhe Deparlnenl of Lnvironnenl and NaluraI
Resources (DLNR), lo lhe Direclor and RegionaI Direclors of lhe LnvironnenlaI Managenenl
ureau (LM) lo granl or deny lhe issuance of LnvironnenlaI ConpIiance Cerlihcales (LCC).
9. DLNR Adninislralive Order No. 2OO3-3O (DAO 2OO3-3O), signed ly Secrelary LIisea C. Cozun
on 3O }une 2OO3, Iays dovn lhe InpIenenling RuIes and ReguIalions (IRR) for lhe IhiIippine
LnvironnenlaI Inpacl Slalenenl Syslen.
. DISCUSSION OI IINDINCS
1. Seclion 27 of RA 716O (LocaI Covernnenl Code of 1991), as aIso provided in Seclion 7O on lhe
LnvironnenlaI Inpacl Assessnenl in RA 7942 (IhiIippine Mining Acl of 1995) , is lhe nissing Iink
in lhe ralionaIized and harnonized inpIenenlalion of appIicalIe Iavs/ordinances reIevanl lo a
nining projecl and IocaI nining operalions in a specihc area.
The facls and IegaI franevork alove shov lhal ID 1586, vhich eslalIished lhe LIA syslen, vas
signed inlo Iav in 1978 , lhe Adninislralive Order No. 42, vhich ralionaIizes lhe inpIenenlalion
of lhe IhiIippine LIA syslen, vas signed in 2OO2 , and ils IRR (DLNR AO No. 2OO3-3O) vas signed
in 2OO3. elveen lhe eslalIishnenl of lhe IhiIippine LIA syslen in 1978 and lhe ralionaIizalion of
ils inpIenenlalion in 2OO2 and issuance of ils IRR in 2OO3, lhe LocaI Covernnenl Code of 1991 (RA
716O) and lhe IhiIippine Mining Acl of 1995 (RA 7942) vere passed inlo Iavs.
Major nining and quarrying projecls, vhich incIude lhe Mindoro NickeI Irojecl (MNI), as
resource exlraclive heavy induslries, are cIassihed as environnenlaIIy crilicaI projecls (IresidenliaI
IrocIanalion 2146 signed on 14 Decenler 1981). y virlue of lhe fealures descriled in lhe sane
procIanalion, lhe Mag-asavang Tulig Walershed, vhere lhe MNI is Iocaled, salisfacloriIy quaIihes
as an environnenlaIIy crilicaI area. |IIease aIso refer lo lhe noduIe on lhe valershed issue.j As an
environnenlaIIy crilicaI projecl Iocaled in an environnenlaIIy crilicaI valershed area, lhe MNI
requires lhe conducl of lhe LIA and lhe appIicalion for lhe LCC.
The LCC is a docunenl issued ly lhe DLNR/LM afler a posilive reviev of an LCC appIicalion,
cerlifying lhal lased on lhe represenlalions of lhe proponenl, lhe proposed projecl or underlaking
viII nol cause signihcanl negalive environnenlaI inpacl. The LCC aIso cerlihes lhal lhe proponenl
has conpIied vilh aII lhe requirenenls of lhe LIS Syslen and has connilled lo inpIenenl ils
approved LnvironnenlaI Managenenl IIan. The LCC conlains specihc neasures and condilions
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lhal lhe projecl proponenl has lo underlake lefore and during lhe operalion of lhe projecl, and in
sone cases, during lhe projecls alandonnenl phase lo niligale idenlihed environnenlaI inpacls
(DAO 2OO3-3O - IRR for lhe IhiIippine LIS Syslen, Sec. 3-d).
Seclion 7O on LnvironnenlaI Inpacl Assessnenl of lhe IhiIippine Mining Acl of 1995 requires an
environnenlaI cIearance cerlihcale lased on an environnenlaI inpacl assessnenl and procedures
under lhe IhiIippine LnvironnenlaI Inpacl Assessnenl Syslen incIuding Seclions 26 and 27 of lhe
LocaI Covernnenl Code of 1991 vhich require nalionaI agencies lo nainlain ecoIogicaI laIance, and
prior consuIlalion vilh lhe IocaI governnenl unils, nongovernnenlaI and peopIes organizalions
and olher concerned seclors of lhe connunily. Seclions 2c, 26 and 27 of lhe LocaI Covernnenl
Code of 1991 slipuIale lhal, in lhe nainlenance of ecoIogicaI laIance, il is lhe duly of lhe nalionaI
governnenl agencies or governnenl-ovned or conlroIIed corporalion lo consuIl vilh lhe IocaI
governnenl unils, nongovernnenlaI organizalions, and olher seclors concerned and expIain lhe
goaIs and oljeclives of lhe projecl or progran, ils inpacl upon lhe peopIe and lhe connunily in
lerns of environnenlaI or ecoIogicaI laIance, and lhe neasures lhal viII le underlaken lo prevenl
or nininize lhe adverse effecls lhereof and lo ollain prior approvaI of lhe sanggunian concerned
lefore any projecl or progran is inpIenenled in lheir respeclive jurisdiclions
Seclion 27 of lhe LocaI Covernnenl Code, as aIso incIuded and required in Seclion 7O on lhe LIA of
lhe IhiIippine Mining Acl of 1995, is nol incorporaled nor considered in lhe Adninislralive Order
No. 42 fron lhe Ofhce of lhe Iresidenl and, Iikevise, in lhe DLNR AO No. 2OO3-3O and ils IRR,
and in lhe corresponding 2OO7 Revised IroceduraI ManuaI for DAO 2OO3-3O and Menorandun
CircuIar No. OO1-2OO7 (MC OO1-2OO7-LIA Reviev ManuaI). The LnvironnenlaI Inpacl Slalenenl
Reporl nereIy requires lhe proof of consuIlalion vilh slakehoIders ((DAO 2OO3-3O - IRR for
lhe IhiIippine LIS Syslen, Sec. 5.2.1-h) inslead of lhe approvaI ly lhe sanggunian concerned as
provided in Seclion 7O of lhe IhiIippine Mining Acl and Seclion 27 of lhe LocaI Covernnenl Code.
Therefore, lhe conducl of lhe LIA specihcaIIy during scoping, pulIic consuIlalions and pulIic
hearings, lhe reviev of lhe LIS Reporl, and lhe issuance of lhe LCC ullerIy disregarded Seclion
27 of lhe LocaI Covernnenl Code of 1991 as aIso provided in Seclion 7O of lhe IhiIippine Mining
Acl. The excIusion and non-consideralion of Seclion 27 of lhe LocaI Covernnenl Code of 1991 in
lhe adninislralive orders fron lhe Ofhces of lhe Iresidenl and lhe DLNR Secrelary, and in lhe
suppIenenling IRR and proceduraI nanuaIs, are nol consislenl vilh lhe specihc provisions of lhe
IhiIippine Mining Acl of 1995 (RA 7942) and lhe LocaI Covernnenl Code of 1991 (RA 716O).
DAO 2OO3-3O - IRR for lhe IhiIippine LIS Syslen, Sec. 5.4.2-d slipuIales lhal al a nininun,
lhe LIARC reporl shouId conlain . key issues/concerns and lhe proponenls response lo lhese
incIuding sociaI acceplaliIily neasures, anong olher lases of lhe LIA reviev. The LIA process
presenled in lhe LIS reporl requires onIy lhe proof of consuIlalion, idenlihcalion of environnenlaI
inpacls vilh lhe prevenlive/niligaling/enhancenenl neasures, incIuding lhe sociaI acceplaliIily
neasures, lul il does nol require lhe approvaI of lhe sanggunian concerned. Il does nol aIso provide
a nechanisn for rejeclion of a projecl on lhe parl of lhe affecled connunilies and IocaI popuIalion
according lo lhe principIe and essence of pulIic consuIlalion and neaningfuI pulIic parlicipalion.
Thus, lhe requirenenl of lhe LIA process nakes lhe LIA, vhen conducled, a nere looI lo juslify
a projecl and nakes lhe LIS a nere allachnenl lo lhe LCC appIicalion. This veakness in lhe LIA
process is accenlualed vhen DLNR issued an LCC despile lhe reconnendalion of lhe LIA Reviev
Connillee lo deny lhe LCC of lhe Mindoro NickeI Irojecl, as discussed in anolher noduIe of lhis
Invesligalion Reporl.
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2. Whal are lhe inpIicalions and ranihcalions of Seclion 7O of lhe IhiIippine Mining Acl of 1995 (RA
7942) and Seclion 27 of lhe LocaI Covernnenl Code of 1991 (RA 716O) in lhe approvaI of nineraI
agreenenls, in lhe conducl of lhe LIA process, and in lhe appIicalion for LCC for a nining projecl`
WhiIe Seclion 8 of RA 7942 provides lhal The Secrelary shaII have lhe aulhorily lo enler inlo nineraI
agreenenls on lehaIf of lhe Covernnenl upon lhe reconnendalion of lhe Direclor, pronuIgale
such ruIes and reguIalions as nay le necessary lo inpIenenl lhe inlenl and provisions of lhis
Acl, Seclion 7O of RA 7942 and Seclions 2c, 26, and 27 of RA 716O require prior consuIlalion and
approvaI ly lhe sanggunian concerned lefore any nining projecl is inpIenenled in a parlicuIar
IocaIily. WhiIe lhe governnenl can enler inlo a MineraI Iroduclion Sharing Agreenenl (MISA) or a
IinanciaI or TechnicaI Assislance Agreenenl (ITAA) vilh a conlraclor, approvaI ly lhe sanggunian
concerned is required lefore a nining projecl is inpIenenled on lhe ground pursuanl lo Seclion 27
of lhe LocaI Covernnenl Code of 1991 and as aIso required ly Seclion 7O of lhe IhiIippine Mining
Acl of 1995. ConsuIlalion and approvaI ly lhe sanggunian concerned are appIicalIe requirenenls
during lhe conducl of LIA (scoping, pulIic consuIlalion/hearing), reviev of lhe LIS, and issuance
of lhe LCC.
efore any projecl or progran is inpIenenled, il requires free and neaningfuI pulIic consuIlalion/
parlicipalion and prior approvaI ly lhe sanggunian concerned according lo Seclions 2c, 26, and 27
of lhe LocaI Covernnenl Code of 1991. Mining, as an environnenlaIIy crilicaI projecl in parlicuIar,
requires pulIic consuIlalion and prior approvaI ly lhe Sanggunian concerned according lo Seclion
7O of lhe IhiIippine Mining Acl of 1995, consislenl vilh Seclion 27 of lhe LocaI Covernnenl Code
of 1991.
3. IrovinciaI/MunicipaI Ordinances pronuIgaling noraloriun on Iarge-scaIe nining vere enacled
and lhe Cease-and-Desisl orders (CDO) vere issued ly lhe IrovinciaI Covernnenl of OrienlaI
Mindoro againsl scoping and pulIic hearing during lhe conducl of LIA for lhe Mindoro NickeI
Irojecl.
Iursuanl lo lhe provisions of lhe LocaI Covernnenl Code of 1991, IrovinciaI Ordinance OO1-
2OO2 vas enacled ly lhe Sangguniang IanIaIavigan of OrienlaI Mindoro on 28 }anuary 2OO2
and vas signed ly Covernor arloIone L. Marasigan, Sr. on O1 March 2OO2, decIaring a lvenly-
hve year noraloriun on aII forns of nining in lhe province of OrienlaI Mindoro and provides
exceplions and penaIlies |Annex XIj. The vhereas cIauses of lhe said provinciaI ordinance and of
lhe Sangggunian ResoIulion, passed on 1O March 2OO8 supporling lhe ordinance, juslify lhe aclion
of lhe IrovinciaI Covernnenl of OrienlaI Mindoro. Likevise, SalIayan in OccidenlaI Mindoro aIso
passed an ordinance on a 25-year nining noraloriun on 1O Decenler 2OO7. In 2OO9, lhe province
of OccidenlaI Mindoro passed a siniIar ordinance.
LocaI ordinances are enacled ly lhe Sanggunian vhich is conposed of nenlers eIecled ly lhe
peopIe. IulIic hearings are conducled lefore liIIs are passed inlo ordinances/Iavs. An ordinance
is an expression of lhe viII of lhe peopIe. The 25-year Moraloriun on nining is an expression
of rejeclion of lhe Mindoro NickeI Irojecl and of Iarge-scaIe nining in lhe province of OrienlaI
Mindoro and in SalIayan, OccidenlaI Mindoro in lhe nexl lvenly-hve (25) years. These ordinances
cover lhe Mindoro NickeI Irojecl lecause lhe projecl and ils conponenls are Iocaled in SalIayan
OccidenlaI Mindoro and in lhe nunicipaIilies of Vicloria, Socorro, and IoIa in OrienlaI Mindoro.
A cease-and-desisl order (CDO) vas issued ly lhe IrovinciaI Covernnenl of OrienlaI Mindoro
againsl lhe scoping aclivily al ViIIa Cerveza, Vicloria, on 2O Ocloler 2OO8 (LIS, Seclion Tvo, page
132 M C l L u 8
0 , 1' 2 5 2
2-61, Annex XV). The CDO vas addressed lo Mr. }ake Ioronda, Irojecl Manager of AIag-ag Mining,
Inc. Anolher CDO vas issued ly lhe IrovinciaI Covernnenl of OrienlaI Mindoro on 11 May 2OO9
againsl lhe conducl of pulIic hearing al IoIa on 14 May 2OO9 (LIS, Seclion Tvo, page 2-62, Annex
XVI). The Ialler CDO vas addressed lo Direclor }uIian Anador of lhe LnvironnenlaI Managenenl
ureau. The pulIic hearing in Vicloria, OrienlaI Mindoro, scheduIed on lhe foIIoving veek, vas
aIso canceIIed.
Il shouId le poinled oul lhal lhe Mayor of IoIa, lhe LegaI CounseI of Inlex, and represenlalives of
LM vere presenl during lhe scheduIed pulIic al IoIa indicaling lhe parlicipalion of lhe IocaI chief
execulive. The CDO vas served ly lhe IrovinciaI LegaI Ofhcer of OrienlaI Mindoro logelher vilh
lhe Vice Covernor of OrienlaI Mindoro.
On 27 May 2OO9, a pulIic consuIlalion vas heId in Manlurao MunicipaI Cynnasiun in OccidenlaI
Mindoro. The projecl Iroponenl presenled lhe projecl Descriplion and lhe LIS Ireparer presenled
lhe resuIls of lhe LIA conducled (LIS, Seclion Tvo, page 2-62). Manlurao is, hovever, oulside lhe
projecl area of lhe Mindoro NickeI Irojecl and oulside lhe valershed of lhe Mag-asavang Tulig
River. During ils reguIar session on 25 May 2OO9, lhe Sangguniang IanIaIavigan of OccidenlaI
Mindoro passed and approved ResoIulion No. 63, Series of 2OO9 |Annex XVIIj expressing lhe
oljeclion of lhe Sangguniang IanIaIavigan of OccidenlaI Mindoro lo lhe pulIic consuIlalion of lhe
Mindoro NickeI Irojecl scheduIed on 27 May 2OO9 in Manlurao, OccidenlaI Mindoro.
The ordinances on a 25-year nining noraloriun and lhe issuance of CDOs are expressions of
disapprovaI of Iarge-scaIe nining in lhe nexl 25 years. The noraloriun and lhe CDOs vere honored
ly lhe LIA Reviev Connillee. Hovever, lhe Iroponenl and LM proceeded vilh lhe conducl of
LIA in uller disregard of IavfuI orders and exisling appIicalIe Iavs. This conpIicalion or confusion
or vioIalion can aIso le lhe resuIl of the exclusion and non-consideration of Section 70 of the Philippine
Mining Act of 1995 and Section 27 of the Local Government Code of 1991 in the administrative orders from
the Ofces of the President and the DENR Secretary, and in the supplementing IRR and procedural manuals,
not consistent with the specic provision of the Philippine Mining Act of 1995 (RA 7942) and the Local
Government Code of 1991 (RA 7160) mentioned in the immediately preceding section.
The sociaI acceplaliIily of a projecl is a resuIl of neaningfuI pulIic parlicipalion, vhich shaII
le assessed as parl of lhe LnvironnenlaI ConpIiance Cerlihcale (LCC) appIicalion, lased on
concerns reIaled lo lhe projecls environnenlaI inpacl (DAO 2003-30 IRR for the Philippine EIS
System, Sec. 3-f). The reviev of lhe LIS ly LM shaII le guided ly lhree generaI crileria : (1)
lhal environnenlaI consideralions are inlegraled inlo lhe overaII projecl pIanning, (2) lhal lhe
assessnenl is lechnicaIIy sound and proposed environnenlaI niligalion neasures are effeclive,
and (3) lhal sociaI acceplaliIily is lased on inforned pulIic parlicipalion (DAO 2003-30 IRR for
the Philippine EIS System, Sec. 1-d). These seclions of DAO 2OO3-3O aIready sel lhe enlry poinl for lhe
incIusion of lhe reIevanl Seclion 7O of lhe IhiIippine Mining Acl and Seclions 26 & 27 of lhe LocaI
Covernnenl Code lo address neaningfuI consuIlalion & parlicipalion, sociaI acceplaliIily, and
approvaI of projecl or progran ly lhe Sanggunian concerned.
Iree and neaningfuI consuIlalion and pulIic parlicipalion are nol possilIe in lhis silualion vhere
lhe nalionaI governnenl pronoles nining and lhe IocaI governnenl rejecls. ConsuIlalion and
parlicipalion in lhe LIA process is lanlanounl lo consuIling and convincing lhe Mindorenos lo vioIale
an exisling ordinance in lhe province. The conlradiclory posilions of lhe nalionaI governnenl on lhe
pronolion side of nining and IocaI governnenl unils (Irovince of OrienlaI Mindoro, SalIayan,
OccidenlaI Mindoro, and lhe Irovince of OccidenlaI Mindoro) on lhe noraloriun side needs lo le
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sellIed. This difference is denonslraled and conpounded vhen sone nunicipaIilies and larangays
issued slalenenls and docunenls approving and disapproving lhe Mindoro NickeI Irojecl.
If lhere is a IegaI queslion on lhe 25-nining noraloriun or on lhe CDOs, lhen lhe IegaIily shouId
le sellIed ly a conpelenl aulhorily. MeanvhiIe, lhe Mindoro NickeI Irojecl, incIuding lhe LIA
process, shouId nol proceed unliI and unIess lhe IegaI inproprielies/inhrnilies/queslions are
sellIed. The approvaI of a projecl cannol depend on lhe nunler of peopIe noliIized nor on lhe
voIune of docunenls and signalures coIIecled for or againsl lhe projecl.
The Team, however, maintains the view that there is no contradiction among relevant laws. What is needed
is to harmonize AO No. 42, DAO 2003-30, and the related Procedural Manual and EIA Review Manual with
PD 1586, the Local Government Code of 1991, and the Philippine Mining Act of 1995 by incorporating the
approval of Sanggunian concerned as required in the Philippine Mining Act of 1995 and the Local Government
Code of 1991.
4. The sanggunian concerned vhich are referred lo in Seclion 7O of lhe Mining Acl and Seclion 27 of
lhe LocaI Covernnenl Code are lhe Sanggunian lhal have jurisdiclion over lhe direcl and indirecl
inpacl areas and on lhe affecled connunilies and slakehoIders in lhe Mindoro NickeI Irojecl.
As discussed and shovn in lhe valershed issue noduIe, lhe Mindoro NickeI Irojecl is Iocaled in
lhe valershed of Mag-asavang Tulig River in Mindoro. The Irojecl, Iocaled in Mindoro IsIand,
consisls of lvo (2) approved MineraI Irocessing Sharing Agreenenl (MISA) dockeled as MISA No.
167-2OOO-IV and MISA No. 277-2OOO-IV and lvo (2) MISA AppIicalions vhich are designaled
as AMA No. IV-97 and AMA No. IV-1O1. The Irojecl has hve (5) nain conponenls, naneIy (1)
lhe nine, (2) lhe ore lransporl ly conveyor calIe , (3) lhe processing pIanl vilh energy generalion
conponenl , (4) lhe porl faciIily incIuding olher infraslruclures, and, (5) lhe residue slorage faciIily
and ils appurlenanl slruclures. These nine lenenenls conprising lhe Irojecl sile have a lolaI Iand
area of 11,216.6O66 heclares (ha). MISA No. 167-2OOO-IV and AMA No. IV-97 are in arangay
ViIIa Cerveza Vicloria, OrienlaI Mindoro vhiIe MISA No. 277-2OOO-IV and AMA No. IV-1O1
are in arangays Iag-asa and San Aguslin, SalIayan, OccidenlaI Mindoro (LIS, Irojecl Iacl Sheel,
page 2).
The Direcl Inpacl Areas are lhose vilhin lhe lenenenl area and processing faciIilies, vhiIe lhe
Indirecl Inpacl Areas are lhose oulside lhe nining lenenenl lul are vilhin lhe vicinily and areas
surrounding lhe processing faciIilies (LIS, Irojecl Iacl Sheel, page 3). Direcl Inpacl Areas (DIAs)
are areas direclIy affecled ly lhe nine/lenenenl, pIanl, Residue Slorage IaciIily (RSI), and lhe
conveyor calIe. Silios or larangays direclIy vilhin lhe operalions of lhese faciIilies are lhe direcl
inpacl areas vhich incIude lhe foIIoving :
a. Mine sile - Iocaled in OrienlaI and OccidenlaI Mindoro, lhe idenlihed DIA incIude lhe vhoIe
MISA areas. (arangay ViIIa Cerveza in Vicloria, OrienlaI Mindoro, and arangays of Iag-asa
& San Aguslin in SalIayan, OccidenlaI Mindoro).
l. IIanl sile - lhe DIAs incIude lhe areas vhere lhe Irocessing IIanl, pier and associaled faciIilies,
and lhe Residue Slorage IaciIily are Iocaled. (arangays of CaIina, Canpanenlo, akavan,
and uhay na Tulig in IoIa, OrienlaI Mindoro)
c. CalIe conveyor roule covers ViIIa Cerveza, Vicloria, Or. Mindoro, arangays Iorluna, Zone
3, CaIocnoy, Caliningan, and ayuin in Socorro, Or. Mindoro, and arangays Canpanenlo,
MaIilago, & IuIa in IoIa, Or. Mindoro (LIS, Seclion Tvo, page 2-43).
134 M C l L u 8
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The nine siles are Iocaled in Vicloria, OrienlaI Mindoro and in SalIayan, OccidenlaI Mindoro
covering lvo provinces. The processing pIanl, vilh lhe pier and associaled faciIilies, and lhe residue
slorage faciIily are lo le conslrucled in IoIa, OrienlaI Mindoro. The conveyor roule goes lhrough
lhe nunicipaIilies of Vicloria, Socorro, and IoIa in OrienlaI Mindoro covering lhree nunicipaIilies.
The Irojecl Area covers severaI larangays in four nunicipaIilies of lvo provinces laken as direcl
inpacl areas invoIving lhree IeveIs of lhe IocaI governnenl unils. y virlue of lhe Iocalion of lhe
Mindoro NickeI Irojecl and ils conponenls, lhe sanggunian concerned in lhe direcl inpacl areas
incIude lhe Sangguniang arangay of lhe larangays nenlioned alove, lhe Sangguniang ayan of
Vicloria, Socorro, and IoIa aII in OrienlaI Mindoro, and of SalIayan in OccidenlaI Mindoro, and lhe
lvo Sangguniang IanIaIavigan of lhe lvo provinces of lhe isIand of Mindoro.
Indirecl Inpacl Areas (IIAs) - incIude lhose larangays Iocaled innedialeIy oulside lhe periphery
of lhe DIAs on lhe lenenenl sile and lhe slrelch of lhe river oulside lhe Irojecl Area lul draining
lhe Irojecl Sile vhich can polenliaIIy lransporl suspended soIids and olher discharges fron lhe
Irojecl Sile lovards dovnslrean connunilies (LIS, Seclion Tvo, page 2-43).
a. Ior lhe nine sile - lhe IIAs incIude arangays ViIIa Cerveza (vhere lhe connunilies are
Iocaled) and AIcale in Vicloria, OrienlaI Mindoro
l. Ior lhe Irocessing IIanl, Iier, and RSI - lhe IIAs incIude lhe connunilies in arangays of
Canpanenlo, Dayap, CaIina, and uhay na Tulig in IoIa, OrienlaI Mindoro
c. Ior lhe CalIe Conveyor Roule - incIude lhe olher silios in lhese larangays (LIS, Seclion Tvo,
page 2-43).
Seclion 4.2.7 on Marine ioIogy of lhe LIS page 4-138 slales lhal This vrile-up is a descriplion of lhe
coaslaI prohIe of nunicipaIilies of aco, Naujan and San }ose in OrienlaI Mindoro and CaIapan Cily.
The Mag-asavang Tulig River and olher lrilularies fron lhe nounlain vhich enconpass lhe nine
sile of lhe proposed Mindoro NickeI Irojecl drain inlo lhe coaslaI areas of lhese nunicipaIilies.
Inpacl prediclion using a dispersion nodeI nenlioned possilIe lransporl of lrace naleriaIs,
dissoIved soIids, Ieachale, parlicuIale naleriaI, elc, lo lhe coasls of IoIa, IinanaIayan, and CIoria,
if lhe conlenl of lhe Residue Slorage IaciIily spiIIs lo lhe coasl (LIS, Seclion Iour, page 4-118).
The deIinealion of lhe inpacl areas and lhe idenlihcalion of affecled connunilies and slakehoIders
did nol consider lhe dovnslrean valershed of lhe Mag-asavang Tulig River Syslen and lhe ood-
prone areas in Naujan and Cily of CaIapan. The direcl inpacl areas incIude onIy lhe silios and
larangays Iocaled vilhin lhe operalions of nine sile and conponenl faciIilies (processing pIanl,
pier, RSI, conveyor roule), and lhe indirecl inpacl areas considered onIy lhose larangays Iocaled
innedialeIy oulside lhe periphery of lhe DIAs on lhe lenenenl sile and lhe slrelch of lhe river
oulside lhe Irojecl area lul draining lhe Irojecl sile vhich can polenliaIIy lransporl suspended
soIids and olher discharges fron lhe Irojecl sile lovards dovnslrean connunilies. WhiIe lhe LIS
reporl nenlioned of laseIine infornalion and inpacl assessnenl and niligalion, lhe nunicipaIilies
of aco, Naujan, IinanaIayan, CIoria, and lhe Cily of CaIapan vere nol considered as inpacl areas,
vhich shouId invoIve lhe said nunicipaIilies and cily in crilicaI consuIlalion and require approvaI
of lhe Sanggunian concerned. The coaslaI areas and nunicipaI valers of lhese nunicipaIilies and
cily are inlegraI parls of lhe Verde IsIand Iassage considered lo le lhe cenler of lhe cenler of narine
0 , 1' 2 5 2
liodiversily conlaining lhe highesl nunler of narine shore hsh per unil area in lhe vhoIe vorId
(Carpenler and Springer, 2OO5).
InnedialeIy dovnslrean of lhe conuence of IluIo and AgIulang Rivers, aIso referred lo as lhe
Muyod area, vhere lhe lvo rivers join lo forn Mag-asavang Tulig River, lhere is a naluraI valervay
oving norlheaslvardIy lhal diverls valer lo anolher najor river, lhe ucayao River. Likevise,
aloul six kiIonelers dovnslrean of lhe junclion of IluIo and AgIulang Rivers, IanggaIaan River
lranches oul norlhvardIy fron Mag-asavang Tulig River and evenluaIIy aIso joins ucayao River.
The ucayao and Mag-asavang Tulig River Syslen provides irrigalion lo lhousands of heclares in
Naujan and lhe Cily of CaIapan. IIoodvaler fron lhese lvo najor rivers causes ooding and heavy
danages lo agricuIlure, infraslruclures, properlies and Ioss of Iives in lhe Iov-Iying areas of Naujan
and lhe Cily of CaIapan.
Sevenly percenl of lhe Mindorenos is engaged in agricuIlure and hsheries. CaIapan, Naujan and
Vicloria produce aloul 5O percenl of lhe lolaI rice produclion in OrienlaI Mindoro (cilalion ).
Iroducls fron agricuIlure and hsheries are lhe nain conlrilulion of Mindoro in food sufhciency
and lhe nalionaI econony.
DeIinealion of inpacl areas as descriled alove and lhe idenlihcalion & consuIlalion of affecled
connunilies and slakehoIders did nol consider lhe rice groving-areas in lhe ood-prone
nunicipaIily of Naujan and capilaI Cily of CaIapan. The Sanggunian concerned incIude lhose of
lhe affecled larangays in Naujan and CaIapan and lheir respeclive nunicipaI/cily counciIs.
The sanggunian of lhe larangays, nunicipaIilies/cily, and lhe lvo provinces vhere lhe projecl
and ils conponenls area Iocaled, lhal are vilhin lhe ood-prone areas of lhe conpIex valersheds
of ucayao & Mag-asavang Tulig Rivers, and vilh jurisdiclion over lhe affecled connunilies and
slakehoIders, are lhe sanggunian concerned lhal are referred lo in lhe Mining Acl and in lhe LocaI
Covernnenl Code.
Anong lhe alove-nenlioned sanggunian concerned, lhe foIIoving have enacled 25-year
noraloriun ordinances on Iarge-scaIe nining in lheir respeclive jurisdiclions:
a. Irovince of OrienlaI Mindoro lhrough IrovinciaI Ordinance OO1-2OO2 enacled ly lhe
Sangguniang IanIaIavigan of OrienlaI Mindoro on 28 }anuary 2OO2 and vas signed ly Covernor
arloIone L. Marasigan, Sr., on O1 March 2OO2, decIaring a lvenly-hve year noraloriun on aII
forns of nining in lhe province of OrienlaI Mindoro and provides exceplions and penaIlies.
l. MunicipaIily of SalIayan, OccidenlaI Mindoro lhrough CeneraI Ordinance 2OO7-COO3,
enacled ly lhe Sangguniang ayan and signed ly Mayor Codofredo . Minlu on 1O Decenler
2OO7, decIaring a 25-year noraloriun on Iarge-scaIe nining aclivilies in lhe MunicipaIily of
SalIayan and prescriling exceplions and penaIlies lhereof.
c. Irovince of OccidenlaI Mindoro lhrough Prctincia| Orinancc 34-09 cnac|c |q |nc Sangguninang
Pan|a|auigan cf Occicn|a| Mincrc cn 23 Nctcm|cr 2009 an uas signc |q Gctcrncr ]cscpninc
Y. Ramircz Sa|c cn 27 Nctcm|cr 2009, cc|aring a |ucn|q-ftc (25) qcar mcra|crium cn |argc-sca|c
mining, i|s |ins an fcrms in |nc prctincc cf Occicn|a| Mincrc, cfning cxccp|icns an impcsing
pcna||ics fcr tic|a|icns |ncrccf.
136 M C l L u 8
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II. RECOMMENDATION5
A. SUMMARY OI IINDINCS
1. IulIic consuIlalion and prior approvaI ly lhe sanggunian concerned, as required under Seclions
26 & 27 of lhe LocaI Covernnenl Code of 1991, are appIicalIe and supposed lo le incIuded in lhe
procedures lo le foIIoved during lhe environnenlaI inpacl assessnenl as slipuIaled in Seclion 7O
of lhe IhiIippine Mining Acl of 1995.
2. WhiIe lhe Mining Acl of 1995 aulhorizes lhe governnenl lo enler inlo a MineraI Iroduclion Sharing
Agreenenl (MISA) or a IinanciaI or TechnicaI Assislance Agreenenl (ITAA) vilh a conlraclor,
lhe LocaI Covernnenl Code of 1991 and lhe Mining Acl of 1995 require prior consuIlalion and
approvaI ly lhe sanggunian concerned lefore a nining projecl is inpIenenled on lhe ground.
3. IrovinciaI/nunicipaI ordinances on 25-year noraloriun on Iarge-scaIe nining in Mindoro and
issuance of cease-and-desisl orders againsl scoping and pulIic consuIlalion/ hearing are cIear
expression and nanifeslalion of rejeclion of nining in Mindoro in lhe nexl 25-years.
4. Wilh lhe nalionaI governnenl on lhe pronolion side of lhe nining induslry and lhe IocaI
governnenl on lhe noraloriun side, lhe Iingering slark difference in deveIopnenl priorilies has
denonslraled inaliIily of lhe governnenl lo pul ils acls logelher al lhe expense of lhe Mindorenos
and jeopardizes lhe poIicy of ensuring a ralionaI laIance lelveen socio-econonic deveIopnenl
and environnenlaI proleclion for lhe lenehl of presenl and fulure generalions (ID 1586, Seclion
1, DAO 2OO3-3O, Seclion 1) especiaIIy in a projecl vhere lhe socio-econonic underlaking, Iike
nining, is a negalion of naluraI Iife supporl ecosyslen and couId hardIy le reconciIed vilh lhe
requirenenls of environnenlaI quaIily.
5. Iushing lhrough vilh nining in Mindoro is Ieading lo division and civiI dislurlance as exenpIihed
ly lhe alorled pulIic hearing in IoIa, OrienlaI Mindoro and in lhe consuIlalion in Manlurao,
OccidenlaI Mindoro vhere a lig nunler of pro-nining allendees vas faced vilh an equaIIy lig
nunler of anli-nining allendees.
6. Adninislralive Order No. 42, issued lo ralionaIize lhe inpIenenlalion of lhe IhiIippine
LnvironnenlaI Inpacl Slalenenl syslen and for olher purposes, and lhe DLNR Adninislralive
Order No. 2OO3-3O, vhich is lhe InpIenenling RuIes and ReguIalions for lhe IhiIippine
LnvironnenlaI Inpacl Slalenenl Syslen, and lhe suppIenenlaI IroceduraI ManuaI of 2OO7 and
LIA Reviev ManuaI did nol incorporale lhe provisions of Seclion 7O of lhe IhiIippine Mining Acl
of 1995 and of Seclion 27 of lhe LocaI Covernnenl Code of 1991, and lherefore, are nol consislenl
vilh lhe said provisions of exisling Iavs.
7. WhiIe pulIic consuIlalion and pulIic parlicipalion are prerequisiles in lhe conducl of lhe LIA as
presenlIy inpIenenled, lhere is no oplion nor nechanisn for lhe IocaI connunily lo rejecl lhe
projecl or progran leing presenled since lhe LIS requires onIy lhe proof of consuIlalion supporled
ly signalures in allendance sheels and nolhing is nenlioned on consenl and approvaI, anong
olher requirenenls. This easiIy gives lhe inpression lhal lhe LIA is nereIy a looI lo juslify lhe
projecl or progran and lhe LIS nereIy a requirenenl lo le allached lo lhe appIicalion for LCC.
8. The LIA Reviev Connillee recognized lhe IrovinciaI Ordinance on lhe 25-year nining
noraloriun and lhe cease-and-desisl orders issued ly lhe IrovinciaI Covernnenl of OrienlaI
Mindoro. Hovever, lhe DLNR-LM and lhe Iroponenl conducled lhe LIA in uller disregard of lhe
noraloriun ordinances and lhe CDOs.
0 , 1' 2 5 2
9. The LnvironnenlaI Inpacl Slalenenl (LIS) Reporl did nol consider lhe nunicipaIily of Naujan
and lhe cily of CaIapan as inpacl areas vhich are Iocaled in lhe dovnslrean valershed area of
lhe conpIex river syslen of Mag-asavang Tulig and ucayao. Likevise, IinanaIayan and CIoria
vere nol incIuded as inpacl areas during lhe conducl of lhe LIA vhen lheir coasls and nunicipaI
valers can le affecled ly lhe dissoIved sulslances and lransporled sedinenls in case of spiII fron
lhe Residue Slorage IaciIily lo le Iocaled in IoIa.
1O. LM, as a Iine lureau under lhe DLNR, did nol seriousIy consider nor decisiveIy acl on reIevanl
issues lo ensure a ralionaI laIance lelveen socio-econonic deveIopnenl and environnenlaI
proleclion for lhe lenehl of presenl and fulure generalions. The issues incIude lhe Iocalion of lhe
Mindoro NickeI Irojecl in a valershed, lhe inpending irreversilIe deslruclion of lhe valershed
serving irrigaled areas and a luslIing popuIalion dovnslrean, lhe exislence of ordinances on
25-year nining noraloriun on Iarge-scaIe nining, cIear enforcenenl of lhe ordinance lhrough
lhe issuance of CDOs ly lhe provinciaI governnenl of OrienlaI Mindoro, reIiance of Mindoro on
valer for agricuIlure, conparalive advanlageous conlrilulion of Mindoro lo lhe econony lhrough
agricuIlure and hsheries, slrong opposilion fron lhe Mindorenos, eing lhe lureau direclIy
handIing lhe LIA, LM has aIIoved LIA lo proceed unnindfuI of a provinciaI ordinance, cease-
and-desisl orders, and olher highIy reIevanl issues nenlioned alove vhiIe pronoling lhe nining
poIicy/progran/induslry.
. RLCOMMLNDATIONS
1. CanceI LCC-CO-O9O4-OO7-2721 of lhe Mindoro NickeI Irojecl lecause of Iack of sociaI acceplaliIily
as expressed in lhe noraloriun ordinances & cease-and-desisl orders and lecause lhe LIA process
is nol consislenl vilh Seclion 7O of lhe Mining Acl of 1995 and Seclion 27 of lhe LocaI Covernnenl
Code of 1991 vhich require prior consuIlalion and approvaI ly lhe sanggunian concerned.
2. Revoke lhe MISA of lhe Mindoro NickeI Irojecl lecause lhe projecl is Iocaled in lhe crilicaI
valershed area of Mag-asavang Tulig River and lhe irreversilIe deslruclion of lhe valershed and
lhe Ioss of ninely-nine percenl of ore as nining vasles are nol consislenl vilh lhe poIicy of ensuring
a ralionaI laIance lelveen socio-econonic deveIopnenl and environnenlaI proleclion for lhe
lenehl of presenl and fulure generalions (ID 1586, Seclion 1, DAO 2OO3-3O, Seclion 1).
3. RalionaIize and harnonize appIicalion and enforcenenl of exisling Iavs ly incorporaling Seclion 7O
of lhe Mining Acl of 1995 and Seclion 27 of lhe LocaI Covernnenl Code of 1991 in lhe Adninislralive
Order No. 42, lhe DLNR Adninislralive Order No. 2OO3-3O, and in lhe suppIenenlaI IroceduraI
ManuaI of 2OO7 and LIA Reviev ManuaI.
4. Under exisling Iavs and vilh 25-year nining noraloriun ordinances in pIace, lhe ralionaIized and
harnonized posilion is : vhiIe lhe nalionaI governnenl can enler inlo an agreenenl or conlracl
(MISA, ITAA, elc), nining operalions proceed onIy in areas vhere lhe LCU aIIovs ly vay of lhe
prior approvaI ly lhe sanggunian concerned as provided for in Seclion 7O of lhe IhiIippine Mining
Acl of 1995 and Seclion 27 of lhe LocaI Covernnenl Code of 1991.
5. To pul in pIace a nechanisn for approvaI/ rejeclion of a projecl or progran, on lhe parl of lhe IocaI
connunilies lhal nayle affecled, in lhe adninislralive orders and supporling proceduraI nanuaIs
covering lhe LIA lolh for lhose lhal require an LCC and lhose lhal are nol covered ly lhe LCC
requirenenl in lhe spiril of free and neaningfuI pulIic consuIlalion and pulIic parlicipalion.
138 M C l L u 8
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3 EIARC RECOMMENDATION
I. IACTS
The Mindoro NickeI Irojecl is an environnenlaIIy crilicaI projecl in an environnenlaIIy crilicaI
area (IrocIanalion 2146). Therefore, lhe conducl of an LIA (LnvironnenlaI Inpacl Assessnenl), ly
virlue of IresidenliaI Decree 1586, is a requirenenl for lhe projecl.
Wilh lhe conducl of lhe LIA, lhe LIS (LnvironnenlaI ConpIiance Cerlihcale) Reporl is prepared.
This reporl is revieved ly lhe LIA Reviev Connillee (LIARC), conposed of independenl lechnicaI
experls and professionaIs of knovn prolily fron various heIds organized ly lhe LM lo evaIuale
lhe LIS and olher reIaled docunenls and lo nake appropriale reconnendalions regarding lhe
issuance or non-issuance of an LCC (DAO 2OO3-3O - IRR for lhe IhiIippine LIS Syslen, Sec. 3-j).
The LIARC is connissioned ly LM lo do lhe independenl reviev of lhe LIA Reporl (MC 2OO7-
OO1 on LIA Reviev ManuaI, 2OO7).
II. IINDINCS
The LIARC, on a vole of 4:3, reconnended lhe deniaI of lhe LCC due lo lhe foIIoving reasons |LIA
Reviev Connillee Reporl, RoIIon, 18 Novenler 2OO9:
a. Iack of laseIine infornalion parlicuIarIy on lhe lerreslriaI ora and fauna of lhe conveyor roule,
lhe processing pIanl, lhe Residue Slorage IaciIily, and lhe lovnship, considering lhal Mindoro
IsIand is a unique liogeographic region,
l. poor deIinealion of inpacl areas and supporling discussion on hydroIogy is nol lhorough, and,
c. overaII, lhe inlegralion anong noduIes has leen very poor, naking inference of possilIe
najor inpacls vague and exlreneIy difhcuIl lo evaIuale.
Reasons a and c are inadequacies of lhe LIS Reporl ilseIf. Hovever, reason Ieller l is direclIy
reIaled lo lhe issue of lhe valershed vhich is an inporlanl consideralion in idenlifying Iegilinale
slakehoIders for conducl of pulIic consuIlalion/hearing, in coIIaling and anaIyzing lhe concerns,
and in lhe fornuIalion of lhe niligaling neasures.
Considering lhal lhe Mindoro NickeI Irojecl is an environnenlaIIy crilicaI projecl in an
environnenlaIIy crilicaI valershed area lhus requiring an LIA, il is a lig queslion vhy LM-DLNR
issued lhe LCC selling aside lhe reconnendalion of LM-organized LIA Reviev Connillee
vhich is conposed of experls in lhe heIds of environnenlaI science, environnenlaI proleclion,
and environnenlaI Iavs. DAO 2OO3-3O enphasizes lhal lhe LIARC is a reconnendalory lody,
hovever, on lhe evenl of reversaI of lhe LIARC decision, juslihcalions shouId le pronplIy provided.
The Invesligalion Tean did nol hnd any docunenl juslifying lhe reversaI or selling aside of lhe
decision and reconnendalion of lhe LIA Reviev Connillee.
III. RLCOMMLNDATIONS
1. CanceI LCC-CO-.O9O4-OO7-2721 as reconnended ly lhe LIARC lecause lhe LIS did nol neel
lhe lasic infornalion needed for a sound decision and lecause of poor deIinealion of inpacl
areas.
0 , 1' 2 5 2
2. Revise lhe issuances (DAO 2OO3-3O, MC 2OO7-OO1, MC 2OO7-O8, elc.) lo conforn lo NalionaI
Lavs (parlicuIarIy Seclion 7O of RA 7942 and Seclion 7O of RA 716O).
3. Irovide nechanisn for a nore lransparenl reviev of lhe LIS.
4 PROCEDURE5 FOLLOWED IN THE CONDUCT OF THE EIA PROCE55
Ireceding issues under prole dveII on facls lhal are conlained in lhe LnvironnenlaI Inpacl Slalenenl
(LIS) reporl. Hovever, equaIIy inporlanl lo reviev is lhe process lhal vas foIIoved ly DLNR on lhe
issuance of an LnvironnenlaI ConpIiance Cerlihcale (LCC) for lhe Mindoro NickeI Irojecl (MNI).
This invesligalion issue on procedures foIIoved cane inlo Iighl lecause lhe LCC lo lhe Mindoro NickeI
Irojecl vas approved despile lhe fuII knovIedge of lhe LM, lhe Iroponenl, and lhe LIA Reviev
Connillee (LIARC) lhal lhere are exisling Moraloria on Iarge-scaIe nining in Mindoro, cease-and-
desisl orders vere issued, lig raIIies againsl nining in Mindoro vere conducled, and nuIli-secloraI
opposilion Iellers vere senl lo DLNR. In addilion, lhe LIARC reconnended lhe deniaI of lhe LCC.
I. FACT5
The LIA process is a pIanning looI lo provide lhe projecl proponenl a grasp of lhe lechnicaI and sociaI
conpIexily of a proposed projecl (DAO 2OO3-3O). CenlraI lo lhe LIA process is lhe LnvironnenlaI Inpacl
Slalenenl (LIS) vhich provides lhe delaiIed accounl of environnenlaI inpacls and lhe niligaling
neasures lhal shouId le underlaken ly lhe proponenl in lhe evenl lhal lhe projecl is inpIenenled.
The MNI is cIassihed as a Calegory A Irojecl leing an environnenlaIIy crilicaI projecls (LCI) vilhin
environnenlaIIy crilicaI area (LCA), and is, lhus required ly DAO 2OO3-3O lo undergo fuII LIA process
and lo sulnil lhe LIS docunenl. The LIA process foIIovs lhe sleps delaiIed ly DAO 2OO3-3O:
a. IreIininary Assessnenl
l. Scoping
c. LIA Sludy
The LIA sludy is essenliaI for lhe proponenl lo idenlify polenliaI prolIens reIaled lo lhe projecl. As lhe
proponenl decides lo appIy for an LCC, lhe foIIoving sleps are laken:
i. Scoping - The hrsl IeveI scoping is usuaIIy caIIed lechnicaI scoping vhich invoIve lhe proponenl,
LIS preparers, lhe Case HandIers (LM slaff) and lhe idenlihed nenlers of lhe LIA Reviev
Connillee (LIARC). This gives an iniliaI Iisling of lhe possilIe issues lhal shouId le addressed
in lhe inpacl assessnenl.
ii. SeIeclion of lhe LIARC Connillee Menlers - This slep is usuaIIy done hand in hand vilh
scoping as lechnicaI capacily of lhe LIARC nenlers are furlher evaIualed reIalive lo lhe
idenlihed issues during lhe pulIic scoping.
iii. Conducl of sile scoping ly lhe LIARC nenlers - This is lhe second IeveI scoping vhich ains
lo galher pulIic senlinenls and vaIid lechnicaI and sociaI issues reIaled lo lhe projecl. Togelher
vilh lhe oulpul of lhe hrsl IeveI scoping, lhe Ialilude of lhe LIA sludy is hnaIized fron lhe
oulpul of lhe sile scoping.
iv. Post-scoping activities submission oI scoping documents to fnalize the scope oI the EIS
140 M C l L u 8
0 , 1' 2 5 2
d. Reviev - lhe reviev is a 2-slep process: 1. IroceduraI reviev ly LM lo delernine vhelher lhe
LIA docunenl is conpIele upon vhich fees vouId le paid for slep 2 lo connence, 2. Sulslanlive
reviev ly lhe LIARC. Iarl of lhe sulslanlive reviev ly lhe LIARC is lhe decision lo have IulIic
Hearing in cases slipuIaled ly DAO 2OO3-3O Sec. 4.2.4.
e. Decision naking - ased on lhe sulslanlive reviev of lhe LIARC, a reporl shaII le sulnilled lo lhe
endorsing ofhce (LM) vho shaII prepare lhe reconnendalion reporl lo lhe deciding ofhce (Ofhce
of lhe Secrelary). DAO 2OO3-3O slales lhal in case lhe reconnendalion reporl reverses lhe decision
of lhe LIARC, juslihcalion shouId le provided. On lhe sane nanner, Sec. 9.2.C. slales lhe deciding
aulhorily nusl cile slrong and conpeIIing reasons, lases and/or juslihcalions vhenever reversing
or overlurning lhe reconnendalions of lhe reviev parlies.
Togelher vilh lhe LIARC, a Reviev Irocess Reporl shouId aIso le prepared ly lhe Case HandIer. In
lhe evenl lhal lhe case handIer disagrees vilh lhe LIARC hndings, a franevork and/or supporling
docunenls shaII le provided lo juslify such reservalions (DAO 2OO3-3O ManuaI).
f. Moniloring
The invesligalion on vhelher proper and IavfuI procedures vere foIIoved on lhe issuance of LCC
vouId dveII vilh sleps e-f of lhe LIA process.
II. FINDING5
A. LIA Sludy
i. Scoping/Sile Scoping
The LIS docunenl incIuded lhe scoping nalrix lhal lears lhe issues idenlihed lolh during lhe
hrsl and second IeveI scoping. This indicales acconpIishnenl of lhe procedure as indicaled
ly DAO 2OO3-3O. Minules of lhe Scoping Session, hovever, shoved lhal lhe Sile Scoping vas
decIared IAILLD. The decIaralion ly lhe LIARC Chairnan Dr. Ldgardo David vas due lo
a Cease-and-Desisl Order served lefore lhe nandaled progran of aclivilies (lased on DAO
2OO3-3O) vas concIuded.
The faiIure of lhe Sile Scoping process lhrev lhe LIARC inlo a IegaI confronlalion vilh lhe LocaI
Covernnenl. As a securily nechanisn, nenlers of lhe LIARC asked lhe projecl proponenl lo
presenl docunenls lhal viII shov lhal sulsequenl procedures lo le done IocaIIy, such as lhe
IulIic Hearing, are aIIoved ly lhe LCU. Hovever, despile lhe cognizance of lhe LIARC lhal
lhe scoping faiIed, LM sliII convened lhe nenlers for lhe reviev.
ii. SeIeclion of lhe LIARC Menlers
The hnaI conposilion of lhe LIARC is delernined afler lhe fuII scope of lhe LIS had leen dravn.
Ior lhe MNI- LIS, lhe foIIoving nenlers vere incIuded:
Dr. Ldgardo David - in charge of lhe reviev on CeoIogy and CeonorphoIogy
Dr. Rene RoIIon - in charge of lhe reviev on Marine Lcosyslen
Dr. Mary Ann olengan - in charge of lhe reviev on Socio-Lcononic ModuIe
Dr. Lagrario- in charge of lhe reviev on TerreslriaI Lcosyslen
Lngr. CIen NolIe - in charge of lhe reviev on engineering
Lngr. TidaIgo - in charge of lhe reviev on Mine Safely
Lngr. Uy - in charge of lhe reviev on Risk Assesssnenl
0 , 1' 2 5 2
The issue on ooding raised during lhe faiIed scoping process revised lhe scope of lhe LIS ly incIuding
valershed as a lechnicaI issue lo le revieved. Tean conposilion, hovever, shoved lhere vas no
experl in valershed |Annex XVIII & IXXj lul vas lackIed ly Dr. RoIIon ly requesling sedinenl
lransporl nodeI lo le incIuded in lhe LIS (see fuII discussion on valershed issue and hov il vas
lackIed ly lhe lean on Seclion 1 of lhe reporl). Dr. David Ialer on legged off lo le incIuded in lhe
LIARC lecause of a prior connilnenl, vhenceforlh Dr. RoIIon look over lhe Chairnanship, lhus
reducing lhe Tean nenlers lo six (6). Hovever, during lhe 3
rd
Tean neeling, Ally. Osorio noved in
as a nenler supposedIy lo lackIe lhe LegaI issues, considered a surprising mctc since lhe Chair vasnl
even inforned of an addilionaI nenler of lhe LIARC. During lhe hnaI neeling of lhe LAIRC, Ally.
Osorio voled in favor of lhe issuance of lhe LCC.
. Reviev
i. IulIic consuIlalion and pulIic hearing
Cease-and-desisl orders (CDO) vere issued ly lhe IrovinciaI Covernnenl of OrienlaI Mindoro
on a) 2O Ocloler 2OO8 againsl lhe Scoping Aclivily in ViIIa Cerveza, MuncipaIily of Vicloria,
of AIag-ag Mining Inc. addressed lo Irojecl Manager }ake Ioronda |Annex XVj, and l) on 11
May 2OO9 againsl lhe pulIic hearings scheduIed al lhe MunicipaIilies of IoIa and Vicloria, lo le
conducled ly lhe LnvironnenlaI Managenenl ureau addressed lo Direclor }uIian D. Anador
|Annex XVIj. The CDO in IoIa vas served ly Vice Covernor LsleIa Aceron and IrovinciaI
LegaI Ofhcer LorileIIe Tanyag of OrienlaI Mindoro.
DAO 2OO3-3O requires prior pulIicalion of nolice for pulIic hearing. IornaI nolices of IulIic
Hearings vere posled in IoIa, OrienlaI Mindoro and Vicloria, OrienlaI Mindoro. A Iarge pulIic
denonslralion, supporling lhe serving of lhe CDO, aIso caused lhe IulIic Hearing in IoIa on 14
May 2OO9 lo le alorled, lul onIy afler a lense and Iong discussion lelveen lhe Vice Covernor
and lhe IrovinciaI LegaI Ohcer of OrienlaI Mindoro on one side and lhe Mayor of IoIa, LegaI
CounseI of Inlex, and LM Represenlalive on lhe olher side. The IulIic Hearing in Vicloria,
scheduIed on lhe foIIoving veek, vas aIso poslponed.
To conpIy vilh lhe requirenenl of DAO 2OO3-3O, LM passed off a consuIlalion heId in
Manlurao on 27 May 2OO9 as lhe required pulIic hearing for lhe projecl (LIS, Seclion Tvo,
page 2-62), and inlerviev vilh Dr. RoIIon). Manlurao is nol a slakehoIder as far as lhe
currenl LIS is concerned and lhe requirenenl for pulIicalion vas nol nel. As nenlioned in
lhe discussion on SociaI AcceplaliIily, lhe Sangguniang IanIaIavigan of OccidenlaI Mindoro
passed and approved ResoIulion No. 63, Series of 2OO9 during ils reguIar session on 25 May
2OO9, expressing lhe oljeclion of lhe Sangguniang IanIaIavigan of OccidenlaI Mindoro lo lhe
pulIic consuIlalion of lhe Mindoro NickeI Irojecl scheduIed on 27 May 2OO9 in Manlurao,
OccidenlaI Mindoro.
ii. LIS Reviev
WhiIe lhere are IegaI queslions lo lhe vaIidily of lhe LIS docunenl lecause of lhe faiIed sile
scoping, invaIid pulIic hearing, issuance of a CDO, and lhe recognilion of exisling IocaI
noraloria againsl nining, lhe LIARC 's nandale is lo do a sulslanlive lechnicaI reviev of lhe
LIS. Reviev lhus proceeded on lhe dala provided ly lhe proponenl oulside lhe conlexl of aII
IegaI issues.
The lechnicaI oulpul of lhe reviev vas conciseIy presenled ly lhe LIARC Chairnans Reporl
|Annex XXVj:
142 M C l L u 8
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a. No laseIine infornalion for four of lhe six conponenls of lhe projecl (conveyor leIl,
processing pIanl, residue slorage faciIily/laiIings dan, and housing/lovn sile),
l. Ioor deIinealion of inpacl areas,
c. Ioor inlegralion of noduIes naking lechnicaI evaIualion difhcuIl.
As a resuIl, lhe LIARC denied issuance of LCC lo MNI.
iii. Decision naking
Then DLNR Secrelary Lilo Alienza reversed lhe LIARC hndings and issued lhe LCC lo MNI
on 14 Ocloler 2OO9, 21 days afler lhe Iasl neeling of lhe LIARC. As slipuIaled ly DAO 2OO3-3O,
juslihcalion on lhe reversaI of lhe LIARC hndings shouId le provided lolh ly lhe reconnending
ofhce and lhe approving ofhce and ly lhe Case HandIer/s in case lhey disagree. The LCC
signed ly lhen Sec. Alienza and reconnended ly lhen LM Chief }uIian Anador, provided no
juslihcalions for lhe reversaI of lhe LIARC reconnendalion lo deny lhe issuance lhe LCC.
Lfforls lo cIarify vilh LM regarding lhe reversaI of lhe LIARC decision/reconnendalion did
nol naleriaIize lecause lhe ofhces of lhe LM Direclor Cuna and of LIAMD Head Lngr. Siador
and Ally. Osorio did nol hnd line for an inlerviev vilh lhe Tean despile repealed visils and
phone caIIs lo lhe LM ofhces ly lhe Chair of lhe Invesligalion Tean.
To sunnarize:
a. There vas faiIure of scoping process and possilIe aluse of discrelion on lhe parl of LM for
convening lhe LIARC despile lhe queslionalIe consuIlalion neeling in ViIIa Cerveza.
l. RuIes and nelhod on lhe idenlihcalion of nenlers of lhe LIARC are Ioose vhich can
delernine lhe oulcone of lhe LIARC decision and reconnendalion.
c. The reconnendalion of lhe LIA Reviev Connillee vas overlurned vilhoul juslihcalion.
d. WhiIe lhe LIARC recognized lhe noraloriun ordinance, LM-DLNR did nol lake inlo
accounl lhe 25-year noraloriun on Iarge-scaIe nining, cease-and-desisl orders issued
ly lhe IrovinciaI Covernnenl of OrienlaI Mindoro, and slrong opposilion fron lhe civiI
sociely during lhe LIA process, and inslead aIIov lhe opposing priorilies in deveIopnenl
and conlradiclory posilions lelveen lhe nalionaI and IocaI governnenl lo Iinger al lhe
expense of lhe Mindorenos and aIIoving lhe proponenl lo lake a huge risk, lolh hnanciaIIy
and of lhe projecl leing rejecled ly lhe IocaI popuIalion. DLNR even venl lo lhe exlenl of
issuing an LCC despile a reconnendalion of deniaI fron lhe LIA Reviev Connillee.
e. IoIIoving a proceduraI nanuaI does nol exenpl LM or lhe Iroponenl fron aliding ly lhe
provisions of olher exisling Iavs and ordinances.
f. Iushing lhrough vilh nining in Mindoro is Ieading lo division and civiI dislurlance as
exenpIihed ly lhe alorled pulIic hearing in IoIa, OrienlaI Mindoro and in lhe consuIlalion
in Manlurao, OccidenlaI Mindoro vhere a lig nunler of pro-nining allendees vas faced
vilh an equaIIy lig nunler of anli-nining allendees.
0 , 1' 2 5 2
III. RECOMMENDATION5
The Mindoro NickeI Irojecl is pronoled as one of lhe Iargesl nickeI deposil hnd in lhe vorId. As such,
ils vorId cIass scaIe shouId le paraIIeIed vilh inlernalionaI slandard on environnenlaI conpIiance.
The serious IegaI queslions on lhe issued LCC for lhe MNI arose fron inproper LIA process foIIoved
lorn oul of a nanipuIalive efforl lo galher pulIic supporl in a projecl area vilh an exisling noraloriun
ordinance and lo fasl-lrack conpIiance and sulnission of lhe Iroponenl of lhe requirenenls of lhe
LCC appIicalion. The slrong opposilion lo lhe projecl, on lhe olher hand, is lorn of lhe IocaI knovIedge
of lhe environnenl and IocaI supporl lo lhe enforcenenl of lhe exisling noraloriun ordinance lhal lhe
LIS faiIed lo fuIIy address. olh lhe IegaI dehciency and lechnicaI queslions of lhe LCC nock lhe LIA
syslen vhich is lhe very foundalion of environnenlaI proleclion lhal shouId le guarded ly lhe DLNR.
The Iollowing are recommended:
1. CanceI LCC-CO-O9O4-OO7-2721 of lhe Mindoro NickeI Irojecl given lhe IegaI and lechnicaI queslions
on lhe process foIIoved.
2. Irovide nechanisn for a nore lransparenl reviev of lhe LIS.
5 THE PROPO5ED MINDORO NICKEL PROJECT I5 WITHIN A WATER5HED
During lhe prolesl aclion and hunger slrike in fronl of lhe DLNR Ofhce aIong Visayas Avenue in
Novenler 2OO9, forner DLNR Secrelary Lilo Alienza iniliaIIy suspended LCC-CO-O9O4-OO7-2721 vilh
lhe inslruclion lhal lhe issue on lhe Iocalion of lhe projecl area vilhin a valershed le invesligaled
|Annex XXVIj. The direclive indicales lhal LM-DLNR had nol seriousIy and sufhcienlIy considered
and enphasized lhe signihcance and inpIicalion of lhe valershed in lhe LIA process and in lhe issuance
of lhe LCC since DLNR is nol yel in a posilion lo leII vhelher lhe Mindoro NickeI Irojecl is vilhin or
oulside lhe valershed.
A fev days lhereafler, DLNR SpeciaI Order No. 2OO9-921 vas signed ly forner DLNR Secrelary
Lilo Alienza on 27 Novenler 2OO9 vhich lenporariIy revoked LCC-CO-O9O4-OO7-2721 issued lo Inlex
Resources for lhe NickeI Mining Irojecl in lhe Irovinces of OrienlaI and OccidenlaI Mindoro pending
conpIelion of a lhorough and inparliaI invesligalion lhal viII vaIidale aII lhe aIIegalions. The sane
DLNR SpeciaI Order slipuIales lhe crealion of an Invesligalion Tean lo le conposed of independenl
experls chosen ly lhe IrovinciaI Covernnenls of OrienlaI and OccidenlaI Mindoro and lhe DLNR.
The Iocalion of lhe Mining NickeI Irojecl vilhin a valershed is lhe hrsl issue lo le proled.
The exlenl of lhe valershed area of Mag-asavang Tulig River signihcanlIy direcls lhe LIA process
specihcaIIy lhe descriplion of lhe projecl area, delerninalion of affecled connunilies and slakehoIders,
consuIlalion and pulIic hearing, and fornuIalion of niligalion neasures. (IIease refer lo discussion
on valershed and ils funclionaI roIe under seclion on IACTS leIov). ConsequenlIy, lhe valershed
issue is an inporlanl consideralion in lhe differenl conponenls of lhe LIS Reporl and in lhe evenluaI
reviev of lhe LIS. The valershed issue Iikevise overIaps vilh lhe olher issues lo le proled in lhis
invesligalion specihcaIIy lhe IIIC process, sociaI acceplaliIily, and lhe procedures foIIoved in lhe
issuance of lhe LCC.
I. FACT5
"Watcrsnc is a |an arca rainc |q a s|rcam cr fxc |cq cf ua|cr an i|s |ri|u|arics nating
a ccmmcn cu||c| fcr surfacc run-cff (Prcsicn|ia| Dccrcc 705, Scc|icn 3-m).
144 M C l L u 8
0 , 1' 2 5 2
CrilicaI valershed is a drainage area of a river syslen supporling exisling and proposed hydro-
eIeclric pover and irrigalion vorks needing innediale rehaliIilalion as il is leing suljecled lo a fasl
denudalion causing acceIeraled erosion and deslruclive oods. Il is cIosed fron Iogging unliI il is fuIIy
rehaliIilaled (IresidenliaI Decree 7O5, Seclion 3-n).
A valershed is a lopographic and geographic fealure vhich is dehned and deIinealed ly a
naluraI loundary conposed of connecled ridges surrounding an area. This area, circunscriled ly
lhe loundary, is caIIed lhe valershed area. The valershed is drained ly a river, and every river has a
valershed vhich conlrilules valer lo lhe river ov or river discharge. Lach valershed is deIinealed
fron anolher valershed ly lhe naluraI loundary, aIso caIIed lhe valershed divide. The valershed area
is aIso caIIed calchnenl area, or a drainage area. A river lasin connoles an area conposed of severaI
sul-valersheds drained ly lrilularies enplying lheir discharges inlo lhe nain river.
The valershed incIudes lhe upIand area upslrean of lhe river, or lhe nounlain lhal ve see vilh
lhe foresls and grassIands on lhe lop soiI, or ground surface as il is nornaIIy caIIed, as veII as lhe
IovIand valershed area al lhe dovnslrean porlion of lhe river. As inlegraI parl of lhe valershed,
lolh lhe nounlain fealures and lhe dovnslrean areas incIude lhe sulsurface Iayers, lhe groundvaler
aquifers, and lhe ledrock. The ground surface, nore parlicuIarIy lhe lop soiI, serves as lhe nediun for
lhe grovlh of lrees and pIanls. This ground surface in lhe upIand, or lhe nounlain ilseIf, is aIso vhere
peopIe Iive, lhe hone of upIand dveIIers specihcaIIy our indigenous lrolhers and sislers.
The lop soiI and lhe sulsurface Iayers leIov lhe ground are conposed of liny parlicIes of cIay, siIl,
sand, pellIes, and rocks of differenl sizes and slruclures. In lelveen lhese soiI naleriaIs and rocks are
spaces vhich can conlain air and/or valer vhen rain penelrales lhe ground surface. When il rains, lhe
nounlain, or lhe valershed, alsorls as nuch rain lhal penelrales lhe ground. The rain lhal penelrales
lhe ground conlrilules lo lhe sulsurface ov inlo lhe groundvaler. Sone evaporale, and olhers are
alsorled and lranspired ly lhe pIanls and lrees. Rain lhal does nol inhIlrale lhrough lhe soiI surface
lecones lhe surface runoff and ends up as river ov or river discharge.
When lhere is no rainfaII, especiaIIy during lhe dry season, lhe river discharge is lasicaIIy conposed
of lhe groundvaler lhal has leen alsorled and slored in lhe spaces lelveen lhe soiI parlicIes and
rocks in lhe sulsurface Iayers. This dry season lase ov of lhe river is increased ly lhe addilionaI
surface runoff fron lhe valershed during a rainfaII evenl foIIoving lhe hydrauIic Iavs and according
lo lhe hydroIogic cycIe. The valershed area serves as a lig slorage for valer in lhe spaces lelveen soiI
parlicIes and rocks undernealh lhe ground surface.
As an ecosyslen, lhe valershed possesses unique hydroIogic and lioIogicaI fealures lo suslain Iife
: il slores valer during rainfaII evenls and sIovIy reIeases lhe slored valer during lhe dry nonlhs, il
serves as nediun for pIanl grovlh, il serves as halilal for viIdIife, and il provides a pIace lo Iive and
lo farn for upIand dveIIers. The valershed, an ecosyslen in ilseIf, is a naluraI Iife supporl ecosyslen.
II. FINDING5
1. AIlhough lhe lern valershed appears lo le deIileraleIy avoided in lhe LIS, lhe essence of lhe
lern echoes lhroughoul lhe docunenl:
a. Tnc Prcjcc| is rainc |q Mag-asauang Tu|ig Ritcr an |nrcc (3) ritcr |ri|u|arics, |nc Ag|u|ang, ||c|c
an Kis|uqan Ritcrs. Tnc ncaua|crs cf Mag-asauang Ritcr crigina|c in Mcun| 8ura|cq an Mcun|
Pagcng, in Occicn|a| Mincrc (LIS, Irojecl Iacl Sheel, Seplenler 2OO9, page 2).
0 , 1' 2 5 2
l. Tnc iscnargc cf crcc scimcn|s frcm |nc mining si|cs in|c Ag|u|ang an Kis|uqan an |nc ajaccn|
ccas|a| arcas maq affcc| aqua|ic an marinc crganisms inc|uing fsncs if nc| prcpcr|q nan|c. Tnis is
uc |c |nc rcucc uncrua|cr |ign| pcnc|ra|icn (LIS, Irojecl Iacl Sheel, Seplenler 2OO9, page 3).
c. Tnc minc si|c is rainc |q Mag-asauang Tu|ig Ritcr, cnc cf |nc majcr ritcrs cf Oricn|a| Mincrc, an
i|s ritcr |ri|u|arics (LIS, Lxeculive Sunnary, Seplenler 2OO9, page 8)
2. The geographic coordinales specify lhe exacl Iocalion of lhe nining area, lhe naps spaliaIIy indicale
lhe projecl area shoving aIso lhe Mag-asavang Tulig River and ils lrilularies, and lhe projecl
descriplion cIearIy slales lhal lhe Irojecl Area is Iocaled vilhin lhe valershed of Mag-asavang
Tulig River.
IIease refer lo lhe foIIoving seclions in lhe LIS, Seplenler 2OO9 :
(a) SLCTION TWO - Descriplion of lhe Irojecls LIA Irocess, pages 2-22 & 2-23 vhich specify lhe
geographic coordinales ,
(l) SLCTION TWO - Descriplion of lhe Irojecls LIA Irocess, Iigures 2-4, 2-5, & 2-6, vhich shov
lhe deveIopnenl sile, Iocalion nap, and nine lenenenls of lhe Mindoro NickeI Irojecl ,
(c) SLCTION THRLL - Irojecl Descriplion, pages 3-3 & 3-4, vhich Iikevise, specify lhe geographic
coordinales of lhe nining lenenenls , and,
(d) SLCTION IOUR - aseIine Condilions, Inpacl Assessnenl & Miligalion, Iigure 4-27 on page
4-75, vhich shov lhe lenenenl area and headvalers of AgIulang River.
III. DI5CU55ION OF RELATED I55UE5
1. The valershed of Mag-asavang TuligRiver, vhere lhe proposed MNI is Iocaled, is an
environnenlaIIy crilicaI area lased on IrocIanalion 2146. Il is aIso a crilicaI valershed lased on
ID 7O5.
Thal lhe proposed MNI area is Iocaled vilhin a valershed couId nol le delaled lechnicaIIy. Il is
Iocaled in an area drained ly lvo rivers forning one of lhe Iargesl rivers in OrienlaI Mindoro, lhe
Mag-asavang Tulig River. Whal lhe LIS faiIed lo consider and discuss is lhe exlenl of lhe Mag-
asavang Tulig River and ils valershed, lhe roIe of lhe river in lhe IiveIihood of Mindoreos and
agricuIluraI conlrilulion of OrienlaI Mindoro in lhe nalionaI econony especiaIIy fron ils irrigaled
rice areas.
The valershed of Mag-asavang Tulig River is an environnenlaIIy crilicaI area lased on lhe
fealures descriled in IrocIanalion 2146 : il is a recharge area lhal slore and reIease valer as parl
of lhe hydroIogic cycIe, il has crilicaI sIopes, il is lradilionaIIy occupied ly cuIluraI connunilies or
lriles (lhe Mangyans), lhe noulh of Mag-asavang Tulig River, vhere IluIo and AgIulang Rivers
neel, is Iocaled righl al lhe inlerseclion of CenlraI Mindoro IauIl and AgIulang IauIl, and, parl of
lhe valershed conslilules lhe halilal for endangered or lhrealened species of indigenous IhiIippine
WiIdIife Iike lanarav (lased on fealures in IrocIanalion 2146, signed on 14 Decenler 1981).
Mag-asavang Tulig ovs lhrough lhe lovns of Vicloria and Naujan lefore il discharges lo lhe sea.
IanggaIaan River lranches fron Mag-asavang Tulig and joins ucayao River, anolher najor river in
OrienlaI Mindoro, vhich ovs lhrough CaIapan, and discharges lo CaIapan ay. olh najor rivers
connecl lo TalIas Slrail and river discharges can affecl lhe Verde IsIand Iassage, nov nore popuIarIy
146 M C l L u 8
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knovn as lhe cenler of lhe cenler of narine liodiversily - a pIace vilh lhe grealesl concenlralion of
narine species in lhe Indo-MaIay-IhiIippine ArchipeIago.
CrilicaI valershed is a drainage area of a river syslen supporling exisling and proposed hydro-
eIeclric pover and irrigalion vorks needing innediale rehaliIilalion as il is leing suljecled lo a fasl
denudalion causing acceIeraled erosion and deslruclive oods. Il is cIosed fron Iogging unliI il is fuIIy
rehaliIilaled (IresidenliaI Decree 7O5, Seclion 3-n). This dehnilion cIearIy denonslrales lhe foIIoving
poinls : lhe roIe of a valershed as a naluraI Iife supporl ecosyslen, denudalion causes erosion and
oods, and Iogging or culling of lrees negales lhe inporlanl roIe of a valershed a naluraI Iife supporl
ecosyslen and resuIls lo erosion and oods.
There are aloul 47,3OO heclares of rice areas in lhe lovns of Vicloria and Naujan and cily of CaIapan
al lhe dovnslrean of lhe Mag-asavang Tulig River producing aloul 188,OOO nelric lons per year.
Aloul 37,5OO heclares are irrigaled. Vicloria, Naujan, and CaIapan conlrilule aloul 52 in rice areas
and in annuaI rice produclion of lhe province of OrienlaI Mindoro (riehng Kil 2OO5, IIDO, IrovinciaI
Covernnenl of OrienlaI Mindoro), These rice areas are Iocaled in lhe ood pIains of Mag-asavang
Tulig and ucayao Rivers. Tvo nalionaI irrigalion syslens diverling valer fron lhe Mag-asavang
Tulig and ucayao Rivers, vilh dans respecliveIy Iocaled al Iinagsalangan and MuIavin, Naujan,
have a lolaI conlined service area of 8,OOO heclares (AnnuaI Reporl 2O11, NIA-CaIapan, MIMARO-
IMO Ofhce). AcluaI irrigalion service areas fron lhe lvo NIA syslens are nov reduced lo aloul 57
and lo as Iov as 18 in one syslen lecause of siIlalion and changing river course due lo increased
siIlalion and heavier runoff. The valershed of Mag-asavang Tulig River is an environnenlaIIy crilicaI
area lased on IrocIanalion 2146 and is a crilicaI valershed as dehned ly ID 7O5.
The crilicaI slalus and inporlance of lhe Mag-Asavang Tulig valershed, as cIassihed under
IrocIanalion 2146, couId aIso le gIeaned fron deveIopnenl projecls pushed ly lhe governnenl:
a. IhiIippines for lhe Lov-Incone UpIand Connunilies Irojecl (LIUCI) funded ly lhe Asian
DeveIopnenl ank (AD) ($ 32.O niIIion, 1989-2OO3)
l. The IIood ConlroI Masler IIan for ucayao-Mag-asavang Tulig River Syslen in OrienlaI Mindoro
is an LCU-inilialed projecl uliIizing a granl of NOK 3.81 niIIion ($ 5OO,OOO, 2OO7-2OO9).
On 16 }uIy 2OO1, DLNR Secrelary AIvarez issued a Nolice of CanceIIalion/ Terninalion vherein he
inforned AgIulang Mining Corporalion lhal MISA No. 167-2OOO-IV had leen canceIIed on lhe slaled
ground lhal lhe area il covers faIIs vilhin an inporlanl valershed area requiring lhe proleclion of
lhe DLNR anong olher reasons (RLSOLUTION of O.I. No. O1-H-O58 signed ly ManueI C. Doningo,
IresidenliaI Assislanl, on 1O March 2OO4, vilh lhe aulhorily of lhe Iresidenl).
WhiIe lhe MISA vas reinslaled Ialer lecause of lhe Iack of due process, lhal lhe Mindoro NickeI
Irojecl is Iocaled in an inporlanl valershed and, lherefore, requires proleclion is, nol negaled. Il renains
lo le a vaIid reason for lhe canceIIalion/revocalion of lhe MISA. The crilicaI roIe and inporlance of lhe
Mag-asavang Tulig River valershed in lhe hydroIogic cycIe and in lhe hydroIogic regine of lhe river
in lhe areas of Vicloria, Naujan, aco, and Cily of CaIapan, viII aIvays le a reason for lhe proleclion of
lolh lhe river and ils valershed.
When a naluraI fornalion or a naluraI geoIogic fealure Iike a valershed is renoved or deslroyed,
specihcaIIy vhen lhe nounlain ilseIf vhich conslilules lhe upper valershed area, is renoved and
deslroyed, lhen il is an irreversilIe dislurlance and deslruclion. There is no vay lo repair nor reslore a
nined nounlain or a danaged valershed afler lhe sulsurface Iayers are dug and lhe ores are processed.
0 , 1' 2 5 2
Man can pIanl a lree and luiId a house, lul he can never ever pIanl a nounlain nor luiId a valershed.
Man shouId nol deslroy sonelhing lhal he cannol luiId or does nol knov lo luiId. Mounlains, lhe
upper valershed areas, are naluraIIy forned, lhey are parl of our naluraI resources.
eIov is an excerpl fron lhe Ieller of Chief SeallIe, Chief of Dvanish upon surrendering his Iand
lo Covernor Isaac Sleven in 1854 :
This ve knov, lhe earlh does nol leIong lo nan, nan leIongs lo earlh.
This ve knov, aII lhings are connecled, Iike lhe lIood vhich uniles one faniIy.
AII lhings are connecled.
Whalever lefaIIs lhe earlh, lefaIIs lhe sons of lhe earlh.
Man did nol veave lhe vel of Iife, he is nereIy a slrand in il.
Whalever he does lo lhe vel he does lo hinseIf.
The earlh is lhe nounlain ilseIf, lhe upIand valershed vhere lhe indigenous peopIes reside, lhe
conneclion is lhe hydroIogic cycIe, lhe lIood is lhe valer lhal ovs lhrough lhe rivers, lhe vel of Iife
is lhe ecoIogicaI syslen vhere nan leIongs.
Our indigenous brothers and sisters, the Indians and the Mangyans, have close aIfnity with and reliance
on land and nature. They would seem to know better. Unless the present generation thinks and moves
and acts according to the indigenous tenets that 'the earth does not belong to man, man belongs to earth
and 'iI men spit upon the ground, they spit upon themselves, then man is on his way to selI-destruction.
</<
2. The Mag-asavang Tulig River Walershed is a naluraI geographic fealure and does nol need lo le
procIained as a valershed lo le prolecled.
LM-DLNR and lhe Iroponenl had leen reasoning oul during pulIic foruns and Infornalion and
Lducalion Canpaigns (ILC) lhal Mag-asavang Tulig Walershed is nol a procIained valershed and,
is lherefore, open lo nining. To quole Seclion 19 of lhe IhiIippine Mining Acl of 1995:
Mincra| agrccmcn| cr fnancia| cr |ccnnica| assis|ancc agrccmcn| app|ica|icns sna|| nc| |c a||cuc.
(a) |n mi|i|arq an c|ncr gctcrnmcn| rcscrta|icns, cxccp| upcn pricr uri||cn c|carancc |q |nc gctcrnmcn|
agcncq ccnccrnc,
(|) Ncar cr uncr pu||ic cr prita|c |ui|ings, ccmc|crics, arcncc|cgica| an nis|cric si|cs, |rigcs, nignuaqs,
ua|cruaqs, rai|rcas, rcscrtcirs, ams cr c|ncr infras|ruc|urc prcjcc|s, pu||ic cr prita|c ucr|s inc|uing
p|an|a|icns cr ta|ua||c crcps, cxccp| upcn uri||cn ccnscn| cf |nc gctcrnmcn| agcncq cr prita|c cn|i|q
ccnccrnc,
(c) |n arcas cctcrc |q ta|i an cxis|ing mining rign|s,
() |n arcas cxprcss|q prcni|i|c |q |au,
(c) |n arcas cctcrc |q sma||-sca|c mincrs as cfnc |q |au un|css ui|n pricr ccnscn| cf |nc sma||-sca|c
mincrs, in unicn casc a rcqa||q paqmcn| upcn |nc u|i|iza|icn cf mincra|s sna|| |c agrcc upcn |q |nc
par|ics, sai rcqa||q fcrming a |rus| fun fcr |nc scciccccncmic ctc|cpmcn| cf |nc ccmmuni|q ccnccrnc,
an
148 M C l L u 8
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(f) O| grcu|n cr tirgin fcrcs|s, prcc|aimc ua|crsnc fcrcs| rcscrtcs (nign|ign|c fcr cmpnasis), ui|crncss
arca, mangrctc fcrcs|s, mcssq fcrcs|s, na|icna| par|s, prctincia|/municipa| fcrcs|s, par|s, grccn|c||s,
gamc rcfugc an |ir sanc|uarics as cfnc |q |au an in arcas cxprcss|q prcni|i|c uncr |nc Na|icna|
|n|cgra|c Prc|cc|c Arca Sqs|cm (N|PAS) uncr Rcpu||ic Ac| Nc. 7586, Dcpar|mcn| Aminis|ra|itc
Orcr Nc. 25, scrics cf 1992 an c|ncr |aus.
Il shouId le poinled oul lhal vhal lhe Mining Acl of 1995 specihes is procIained valershed foresl
reserves and nol sinpIy procIained valershed. Whal needs lo le procIained are lhe foresl reserves
in a valershed, vhere lhe vord valershed is a descriplor of lhe nain suljecl vhich is foresl reserves.
The Mag-asavang Tulig valershed is a valershed and does nol need lo le procIained as one lecause
a valershed is a hydroIogic and geographic fealure lhal naluraIIy perforns ils funclionaI roIe according
lo hydrauIic Iavs and lhe hydroIogic cycIe, vilh or vilhoul a procIanalion.
NIIAS (NalionaI Irolecled Areas Syslen ) Acl of 1992 (R.A. No. 7586) provides for lhe eslalIishnenl
and nanagenenl of nalionaI inlegraled prolecled areas syslen, dehning ils scope and coverage, and
for olher purposes. Under Seclion 2 of lhe Acl, DecIaralion of IoIicy, lhe nain purposes of lhe NIIAS
Acl are for p!annIng and cffcctIvc admInIstratInn of lhe areas so lhal lhe use and enjoynenl of
lhe prolecled areas nusl le consislenl vilh lhe principIes of lioIogicaI liodiversily and suslainalIe
deveIopnenl.
Seclion 2 of lhe NIIAS Acl, DecIaralion of IoIicy, aIso slales lhal cognizanl of lhe profound inpacl
of nans aclivilies on aII conponenls of lhe naluraI environnenl parlicuIarIy lhe effecl of increasing
popuIalion, resources expIoilalion and induslriaI advancenenl and recognizing lhe crilicaI inporlance
of prolecling and nainlaining lhe naluraI lioIogicaI and physicaI diversilies of lhe environnenl nolalIy
on areas vilh lioIogicaIIy unique fealures lo suslain hunan Iife and deveIopnenl, as veII as pIanl and
aninaI Iife, ..
asic in lhe DecIaralion of IoIicy of NIIAS Acl is lhe recognilion of lhe crilicaI inporlance of
prntcctIng and maIntaInIng lhe naluraI lioIogicaI and physicaI diversilies of lhe environnenl nolalIy
on areas vilh bIn!ngIca!!y unIquc fcaturcs tn sustaIn human !Ifc and dcvc!npmcnt, as wc!! as p!ant
and anIma! !Ifc".
Iroleclion is a naller of necessily and aclion in lhe DecIaralion of IoIicy of lhe NIIAS Acl, vhiIsl,
procIanalion is for lhe eslalIishnenl and nanagenenl of a syslen of prolecled areas for lhe purposes
of pIanning and effeclive adninislralion of lhe said areas. Iroleclion of areas vilh lioIogicaIIy unique
fealures lo suslain Iife is paranounl and inlrinsicaIIy prinordiaI, and does nol depend on nor require
lhe procIanalion or decIaralion of lhese areas as prolecled areas.
DENR nission is lo noliIize our cilizenry in prolecling, conserving and nanaging lhe environnenl
and naluraI resources and ils nandale is lo slop environnenlaI aluses, reverse ecoIogicaI degradalion,
conserving renaining naluraI resources and ensure lhal lhey lenehl our peopIe (v v.denr.gov.ph).
Ils nission is focused on proleclion, conservalion, and nanagenenl and ils nandale faIIs vilhin lhis
nission franevork. The DLNR Mission and lhe NIIAS Acl are nuluaIIy consislenl.
A nore recenl Lxeculive Order No. 23 decIaring a noraloriun on lhe culling and harvesling of
linler in lhe naluraI and residuaI foresls and crealing lhe anli-Iogging lask force, vhich vas signed
on O1 Ielruary 2O11 ly Iresidenl enigno S. Aquino III, is anolher cIear denonslralion, lhrough lhe
vhereas cIauses of lhe L.O., lhal valersheds and river syslens have lo le prolecled lecause of lheir
funclionaI roIes in lhe hydroIogic cycIe. LO No. 23 did nol require lhe need for procIanalion nor
0 , 1' 2 5 2
decIaralion of valersheds and river syslens as such. Again, lhis is consislenl vilh lhe DecIaralion
of IoIicy in lhe NIIAS Acl of 1992 and vilh lhe nission of DLNR. IrocIanalion of a valershed or
river syslen as such is nol a prerequisile lo ils proleclion. The valershed is a vilaI naluraI Iife supporl
ecosyslen.
Wilh lhe juslihcalion coning fron lhe LM-DLNR and lhe Iroponenl lhal lhe valershed of Mag-
asavang Tulig is NOT a procIained valershed, lhe LIA process proceeded vilhoul sufhcienlIy
and seriousIy considering lhe signihcance and inpIicalions of lhe valershed in lhe delerninalion of
slakehoIders and affecled connunilies, in lhe choice of Iocalions of pulIic consuIlalions and pulIic
hearings, in idenlifying reIevanl issues and prolIens, in lhe fornuIalion of niligaling neasures, and
in lhe vrile up of lhe conponenls/noduIes of lhe LIS Reporl.
Thus, vhen lhe LIA Reviev Connillee voled 4-3 lo reconnend LCC DLNIAL, lhe LIA RevCon
Reporl daled 18 Novenler 2OO9 lhrough ils Chair Dr. Rene N. RoIIon, nenlioned Iack of laseIine
infornalion, poor deIinealion of inpacl areas and discussion of hydroIogy has nol leen lhorough,
and addilionaIIy, lhe inlegralion anong noduIes has leen very poor, naking inference of possilIe
najor inpacls vague and exlreneIy difhcuIl lo evaIuale as lhe nain reasons for lhe deniaI of lhe
LCC. WhiIe Iack of laseIine infornalion and poor inlegralion anong noduIes are inadequacies of lhe
reporl, assessnenls of poor deIinealion of inpacl areas and lhal lhe discussion of hydroIogy had nol
leen lhorough are direclIy reIaled vilh lhe issue of lhe valershed, ils exlenl, and ils funclionaI roIe as
a naluraI Iife supporl ecosyslen.
3. The danage due lo nining operalions is irreversilIe vilh Iong lern effecls and lhe cosls of lhe
danage and ils effecls are nol incIuded in lhe projecl feasiliIily sludy nor in lhe LnvironnenlaI
Inpacl Slalenenl.
Mining operalions are acluaIIy denuding aclivilies ly lhe use of nachines. Mining operalions
incIude culling of lrees, excavaling of sulsurface naleriaIs, and lransporling lhe ore lo lhe processing
pIanl. In effecl, niners dig lhe sulsurface naleriaIs of lhe upper valershed (or nounlain ilseIf), lring
lhe ore in lhe processing area, vhere a nev nan-nade nounlain of nining vasles is crealed.
Mining as an environnenlaIIy crilicaI socio-econonic underlaking generaIIy conducled in upper
valershed areas, couId hardIy le reconciIed vilh lhe requirenenls of environnenlaI quaIily lecause
nining operalions renove sulsurface naleriaIs and deslroy lhe valershed ilseIf. The funclionaI roIe
of lhe valershed in lhe hydroIogic cycIe and in lhe hydroIogic regine of rivers is lo serve as naluraI
Iife supporl syslen especiaIIy for lhe residenl popuIalion al lhe dovnslrean seclion of lhe valershed.
Mining operalions do nol onIy conpronise lhe environnenl, nining operalions renove and deslroy
lhe valershed ilseIf Ieaving lehind voIuninous nining vasles, as lhe nineraI specihcaIIy nickeI is onIy
aloul 1 of lhe ore (LIS, Seclion 3, page 3-4O, TalIe 3-9). This can aIso le vieved as lransferring lhe
nounlain inlo lhe processing area and crealing a nounlain of nining vasles. An oljeclive assessnenl
of lhe environnenlaI inpacl of nining operalions viII prove lhe irreversilIe danage lo lhe valershed
and lhe negalion of ils funclionaI roIe as a naluraI Iife supporl ecosyslen.
The cosl and lenehl anaIysis in lhe hnanciaI feasiliIily sludy of lhe projecl does nol vaIuale and
consider lhe cosls of danages lo lhe valershed ilseIf, lo lhe environnenl, lo peopIes heaIlh, and lo
infraslruclures. Neilher does il vaIuale and consider lhe effecls of ooding lo agricuIlure in generaI and
Ioss of crops anong farners in parlicuIar. Nor can lhe anaIysis pul vaIue on lhe possilIe Ioss of a singIe
Iife due lo ooding or chenicaI poIIulion as a resuIl of nining. Ralher, lhese adverse environnenlaI
inpacls are assessed during lhe LIA process, a process vhich is supposed lo incIude designing
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0 , 1' 2 5 2
appropriale prevenlive, niligaling, and enhancenenl neasures addressing lhese consequences lo
prolecl lhe environnenl and lhe connunilys veIfare. These prevenlive and niligaling neasures
are expecled lo address lhe possilIe adverse inpacls of lhe projecl lo prolecl lhe environnenl and lhe
veIfare of lhe connunily. The cosls of lhe prevenlive and niligaling neasures and olher neasures in
lhe proposed LnvironnenlaI Managenenl IIan viII le shouIdered ly lhe projecl. Since lhe keyvords
retent, mltlgate, and roosed do nol aIvays prevaiI, lhen lhe possiliIily of danage and negalive
inpacl lecones inninenl. And lhe cosls of lhe possilIe danages due lo lhe projecl viII le shouIdered
ly lhe farners, ly lhe affecled connunily, ly lhe environnenl, and parlIy ly lhe governnenl,
The LIS of lhe Mindoro NickeI Irojecl focused on and presenled lhe prevenlive and niligaling
neasures. VaIualion of lhe negalive inpacls and cosl of possilIe danages vere nol incIuded in lhe
assessnenl. This can le considered as a dehciency or a veakness of lhe IhiIippine LIS Syslen. In an
LIA syslen vhere lhe vaIualion of lhe negalive inpacls are nol presenled and lhe preparers of lhe LIS
are connissioned and paid ly lhe Iroponenl, lhis easiIy gives lhe inpression of possilIe parliaIily in
favor of lhe projecl.
Mining is a lusiness enlerprise and ils prinary oljeclive is prohl. ul lhe danage due lo nining
operalions is irreversilIe and possilIe adverse effecls due lo processing are chenicaIIy deliIilaling, and
lolh have Iong lern effecls. Mining is nore of a prohl-orienled aclivily and Iess a source of enpIoynenl
and sociaI deveIopnenl funds. Il is prolalIy for reasons of sulslanliaI inveslnenl and revenues lhal
lhe governnenl is incIined lo consider nining even in popuIaled and environnenlaIIy crilicaI areas.
ul lhe governnenl shouId cauliousIy Iook inlo nining as an opporlunily lo address poverly and Iack
of enpIoynenl lecause nining in popuIaled areas is a shorl-lern soIulion lhal lrings nore prolIens
vilh Iong-lern adverse effecls. Olher oplions and use of lhe valershed are nore suslainalIe and
Mindoro is presenlIy enjoying lhe lenehls of irrigalion for agricuIlure, doneslic valer suppIy, and
hsheries fron lhe valershed of Mag-asavang Tulig River.
The Iavs of nalure and hydrauIics diclale lhal favor and priorily shouId le given lo environnenlaI
proleclion and nore lo lhe advanlage of presenl and fulure generalions, and Iess lo shorl-lern econonic
lenehls. UnIess nan lhinks and noves and acls according lo lhis priorily, lhen nan is on his vay lo
seIf-deslruclion.
This ve knov, lhe earlh does nol leIong lo nan, nan leIongs lo earlh.
This ve knov, aII lhings are connecled, Iike lhe lIood vhich uniles one faniIy.
AII lhings are connecled.
Whatcvcr bcfa!!s thc carth, bcfa!!s thc snns nf thc carth.
Man did nol veave lhe vel of Iife, he is nereIy a slrand in il.
Whalever he does lo lhe vel he does lo hinseIf.
IV. 5UMMARY OF FINDING5
1. The geographic coordinales specify lhe exacl Iocalion of lhe nining area, lhe naps spaliaIIy indicale
lhe projecl area shoving aIso lhe Mag-asavang Tulig River and ils lrilularies, and lhe projecl
descriplion cIearIy slales lhal lhe Irojecl Area is Iocaled vilhin lhe valershed of Mag-asavang
Tulig River.
0 , 1' 2 5 2
2. The valershed possesses unique hydroIogic and lioIogicaI fealures lo suslain Iife and perforns as
a naluraI Iife supporl ecosyslen lecause : il slores valer during rainfaII evenls and sIovIy reIeases
lhe slored valer during lhe dry nonlhs, il serves as nediun for pIanl grovlh, il serves as halilal
for viIdIife, and il provides a pIace lo Iive and lo farn for upIand dveIIers.
3. As a naluraI Iife supporl ecosyslen, lhe Mag-asavang Tulig valershed is an inporlanl valershed,
il is an environnenlaIIy crilicaI area, and il requires proleclion vilhoul lhe need for procIanalion
lecause a valershed is a lopographic and geographic fealure deIinealed and dehned ly a naluraI
loundary.
4. The deslruclion of lhe valershed, afler lhe sulsurface naleriaIs are renoved and lhe ores are
processed, causes irreversilIe danage and an irreversilIe Ioss of lhe luIk of sulsurface naleriaIs
as nining vasles.
5. The LIA process proceeded vilhoul sufhcienlIy and seriousIy considering lhe signihcance and
inpIicalions of lhe valershed in lhe delerninalion of slakehoIders and affecled connunilies, in
lhe choice of Iocalions of pulIic consuIlalions and pulIic hearings, in idenlifying reIevanl issues
and prolIens, in lhe fornuIalion of niligaling neasures, and in lhe vrile up of lhe conponenls &
noduIes of lhe LIS Reporl.
V. RECOMMENDATION5
Mining in a valershed viII disrupl lhe funclionaI roIe of lhe valershed as a naluraI Iife supporl
ecosyslen vhere valer is alsorled during rainfaII evenls and valer is reIeased during lhe dry nonlhs.
The deslruclion of lhe upper valershed in lhe lhickIy inhaliled lovns of aco, Vicloria, Naujan, and cily
of CaIapan, Iocaled aIong lhe najor river syslens of ucayao and Mag-asavang Tulig, is irreversilIe
and couId hardIy le reconciIed vilh lhe righl of lhe peopIe lo a laIanced and heaIlhfuI ecoIogy in
accord vilh lhe rhylhn and harnony of nalure.
The Tean reconnends lhe foIIoving:
1. CanceI lhe LCC lecause lhe inpIicalion and ranihcalion of lhe Iocalion of lhe Mindoro NickeI
Irojecl, an environnenlaIIy crilicaI projecl in a crilicaI valershed area, vere nol seriousIy considered
during lhe LIA process.
2. Revoke lhe MISA for lhe Mindoro NickeI Irojecl lecause lhe projecl is Iocaled in lhe crilicaI
valershed of Mag-asavang Tulig River and il viII resuIl lo irreversilIe deslruclion of lhe valershed
and Ioss of nine-nine percenl (99) of lhe ore as nining vasles.
3. Irovide a nore independenl nechanisn of assessnenl and vaIualion of lolh lhe posilive and
negalive environnenlaI inpacls.
6 IP CON5ULTATION5 AND THE PROCE55 OF OBTAINING
FREE, PRIOR AND INFORMED CON5ENT (FPIC)
Iursuanl lo DLNR SpeciaI Order No. 2OO9-921, signed ly forner DLNR Secrelary Lilo Alienza on 27
Novenler 2OO9, vhich lenporariIy revoked LCC-CO-O9O4-OO7-2721 issued lo Inlex Resources for lhe
NickeI Mining Irojecl in lhe Irovinces of OrienlaI and OccidenlaI Mindoro pending conpIelion of
a lhorough and inparliaI invesligalion lhal viII vaIidale aII lhe aIIegalions, lhe Invesligalion Tean
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iniliaIIy incIuded lhe free and prior inforned consenl (IIIC) fron lhe Mangyans, lhe indigenous
peopIes (II) in Mindoro, as one of lhe issues lo le proled considering lhal lhe nining area is vilhin
anceslraI donain. Hovever, lhe Tean found oul lhal lhe LIA process did nol incIude lhe IIIC process.
AIlhough lhere are queslions regarding lhe vaIidily of lhe IIIC, lhe consenl eilher ollained prior or
during lhe LIA is a separale and independenl process governed ly IIRA of 1997 and faciIilaled ly a
differenl governnenl agency, in lhis case, lhe NalionaI Connission for lhe Indigenous IeopIes.
The Invesligalion Tean cane up vilh independenl invesligalion fron lhe avaiIalIe dala lolh fron
lhe governnenl agencies and lhe docunenls sulnilled ly lhe II organizalions on lhe ground.
In revieving lhe process of consuIlalion and of lhe conpanys nanner of ollaining lhe IIIC fron
lhe II connunilies, lhe lean found oul lhal lhe lhree-year invesligalion conducled ly lhe Norvegian
NalionaI Conlacl Ioinl (NCI) for lhe conpIainl againsl Inlex Resources has aInosl lhe sane hndings.
Hence, ve deen il necessary lo aIso presenl lhe resuIl of lhe paraIIeI invesligalion of lhe OLCD.
The conpIainl vas hIed ly Norvegian-lased civiI sociely organizalion, Iulure in our Hands
for vioIaling lhe OLCD (Organizalion for Lcononic Cooperalion and DeveIopnenl) CuideIines for
MuIlinalionaI Lnlerprises concerning lhe Mindoro NickeI Irojecl.
1
The NCI hnaI slalenenl vas
reIeased on Decenler 5, 2O11. Anong ils hndings, il reveaIs lhal Inlex Resources had ollained a IIIC
fron lhe affecled indigenous peopIes of Mindoro lhrough queslionalIe procedures.
2
The reporl raised parlicuIar concerns lhal a lroad and incIusive approach had nol leen laken lo
consuIlalions, Ieading lo lhe excIusion of affecled indigenous peopIes fron lhe process. Il aIso found lhe
IegaIIy required Iree, Irior and Inforned Consenl (IIIC), purporledIy ollained fron lhe indigenous
peopIes, vas nol sufhcienlIy inforned and lhal reason exisls lo lo queslion lhe procedures ly vhich
lhe IIIC vas ollained.
I. FACT5
RepulIic Acl No. 8371 (RA 8371), aIso knovn as lhe Indigenous IeopIes Righls Acl of 1997,
recognizes, prolecls and pronoles lhe righls of indigenous cuIluraI connunilies/indigenous peopIe,
creales lhe NalionaI Connission of Indigenous IeopIe, eslalIishes inpIenenling nechanisns,
appropriale funds lherefor, and for olher purposes.
Seclion 3g of lhe IIRA of 1997 on |rcc, Pricr an |nfcrmc Ccnscn| as used in lhis Acl shaII nean
lhe consensus of aII nenlers of lhe ICCs/IIs lo le delernined in accordance vilh lheir respeclive
cuslonary Iavs and praclices, free fron any exlernaI nanipuIalion, inlerference and coercion,
and ollained afler fuIIy discIosing lhe inlenl and scope of lhe aclivily, in a Ianguage and process
underslandalIe lo lhe connunily.
Iree prior and inforned consenl (IIIC) are required on, lul nol Iiniled lo, lhe foIIoving seclions
of lhe IIRA of 1997: on righls lo reIigious, cuIluraI siles and cerenonies, on access lo lioIogicaI and
genelic resources, on environnenlaI consideralion, on Cerlihcalion Irecondilion (Seclions 33a, 35, 58,
59, respecliveIy).
The LIS (Seplenler 2OO9) presenls lhe descriplion of lhe projecls LIA process and lhe projecl
ThecomIainlvassubmiedon}anuaryIlcanbevievedalhvvviIinksorgsyslemIesComIainl
OICDInlexdf
The IinaI Slalemenl of Norvegian Conlacl Ioinl NCI for lhe OICD GuideIines for MuIlinalionaI Inlerrises is found
inhvvvreg|eringennouIoadUDVedIeggncinlexnaIdf
0 , 1' 2 5 2
descriplion, indicaling lhe geographic coordinales of individuaI nining lenenenls. Anolher seclion
shovs lhe deveIopnenl sile, Iocalion nap, and nine lenenenls of lhe Mindoro NickeI Irojecl (Seclion
2, Iigures 2-4, 2-5, & 2-6, respecliveIy). Il aIso conlains naps and geographic coordinales shoving lhe
CADC appIicalion ly lhe Mangyan AIangan Trile.
The LIS, in presenling lhe infornalion aloul lhe prohIe of lhe indigenous connunilies as lhe
inpacl area of lhe nining projecl, has lhe foIIoving dala:
1. These nine lenenenls conprising lhe Irojecl sile have a lolaI Iand area of 11,216.6O66 heclares
(ha). MISA No. 167-2OOO-IV and AMA No. IV-97 are in arangay ViIIa Cerveza Vicloria, OrienlaI
Mindoro vhiIe MISA No. 277-2OOO-IV and AMA No. IV-1O1 are in arangays Iag-asa and San
Aguslin, SalIayan, OccidenlaI Mindoro (LIS, Irojecl Iacl Sheel, page 2, LIS, Seclion Iour, page
4-2O3).
2. The nine sile is vilhin lhe cIained anceslraI donain of lhe Manyan AIangan/Tadyavan Triles
(SADAKI Croup) and lhe angon/ Ruvang Triles (KaliIogan Croup) covering nore lhan 27,OOO
ha area. The proposed Irojecl nay affecl 12 silios of aloul 19O househoIds in arangay ViIIa Cerveza
and aloul 33O househoIds in IoIa (LIS, Irojecl Iacl Sheel, page 3).
3. Idenlihed direcl inpacl areas are 13 Silios vhere Mangyans of differenl lriles represenled ly
lhe SADAKI and KAILOCAN groups are sellIed. Represenling lhe SADAKI group are AIangan-
Tadyavan lriles covering six silios (Ianayanans): (1) Candido, (2) Maigal, (3) AIyanay, (4) Lipak
Lakoy, (5) MaIauan, and (6) Iuling alo. The KAILOCAN group represenled ly lhe angon-
Ruvang lriles inside lhe nine sile is sellIed in lhe Silios of: (1) TuIaIong, (2) Iuling alo, and
(3) MaIauan. Oulside lhe nine sile, are olher KAILOCAN nenlers vho have farns (Kaingin)
vilhin lhe nine sile lul resides in: (i) Dangare, (2) MaIayas, (3) ungahan and (d) iyakaIan (LIS,
Seclion, page 4-212).
4. As discussed earIier, lhe nine sile covers aloul 11,216 has. and is Iocaled in arangay ViIIa Cerveza,
Vicloria OrienlaI Mindoro and arangay Iag-asa, SalIayan, OccidenlaI Mindoro. Il is vilhin lhe
cIained anceslraI donain of lhe AIangan/Tadyavan Triles (SADAKI Croup) and lhe angon/
Ruvang Triles (KaliIogan Croup) covering nore lhan 27,OOO ha. The Mindoro NickeI Irojecl
is vilhin lhe 13 Silios of aloul 19O househoIds in arangay ViIIa Cerveza in Vicloria, OrienlaI
Mindoro and arangay Iag-asa in SalIayan OccidenlaI Mindoro. TalIe 4-6O gives lhe Iisl of Silios
lhal viII hosl nining operalions, vhere lolh lhe SADAKI and KAILOCAN groups reside (LIS,
Seclion Iour, page 4-212).
II. DI5CU55ION OF FINDING5
The lean Iooked inlo lhe ralionaIe lehind lhe Iiniled consuIlalions vilh lhe lvo organizalions. Were
lhey consuIled as parl of lhe connunily, in lhis case, lhe larangay of ViIIa Cerveza, or vere lhey
consuIled as parl of indigenous cuIluraI connunilies vilh anceslraI donain cIains`
If lhe indigenous peopIes organizalions, SADAKI and KAILOCAN, vere considered as nere
nenlers of lhe larangay vhere lhey reside, lhe consuIlalion in generaI is governed ly Seclion 7O
of RA 7942 and Seclion 27 of RA 716O vhich lolh require consuIlalion and prior approvaI ly lhe
Sanggunian concerned. The proposed nine sile aIlhough vilhin an anceslraI donain cIain, is vilhin
lhe jurisdiclion of lhe IocaI governnenl unils. The proof of consuIlalion vilh lhe II residenls of ViIIa
Cerveza cannol le a sulslilule lo consenl and approvaI of lhe sanggunian concerned.
154 M C l L u 8
0 , 1' 2 5 2
On lhe olher hand, if lhe consuIlalions vere conducled in conpIiance vilh lhe provisions of
IIRA of 1997, lhe Tean Iooked al lhese consuIlalions as queslionalIe, if nol void, lecause il denied
parlicipalion fron aII lhe affecled II connunilies, in lhis case SANAMA and SASSAMA of AIangan
lrile and KAMTI of Tadyavan lrile. In a case vhere a projecl is vilhin lhe anceslraI donain cIain,
consuIlalions shouId le done vilh lhe II connunilies and nol vilh a Iiniled group in a connunily.
The II connunilies are lhe ones vho shouId decide over aclivilies vilhin lheir connunaI anceslraI
donains.
The foIIoving issues are lhe najor queslionalIe defecls in lhe IIIC issuance, and lhe queslionalIe
process idenlihed:
1. ConsuIlalions and lhe process of securing IIIC vere Iiniled onIy lo lhe SADAKI Croup
(represenling AIangan/Tadyavan lrile) and KAILOCAN (represenling angon/Ruang lrile)
vhiIe lhe exisling organizalion of SANAMA, SASSAMA and KAMTI, represenling lhe lriles and
lhe II connunilies vilhin lhe nining concession vere excIuded.
On 26 Ielruary 1996, prior lo lhe granling of lhe expIoralion pernil lo Mindex (nov Inlex), CADC
No. R4-CADC-O24 vas approved for lhe Sanahan ng nga Nagkakaisang Mangyan AIangan, Inc.
(SANAMA) and Sanahan ng SalIayan al Sla. Cruz Mangyan AIangan (SASSAMA). SiniIarIy, lhe
Mangyan Tadyavan, lhrough lheir organizalion, Kapyan Agpaysarigan Mangyan Tadyavan, Inc.
(KAMTI), had leen issued an approved appIicalion for CADC No. R4-CADC-O85. The anceslraI donain
cIains of lhe Mangyan AIangan Trile covers lhe nunicipaIilies of Vicloria in OrienlaI Mindoro and lhe
nunicipaIilies of SalIayan and Sla. Cruz in OccidenlaI Mindoro. SiniIarIy, lhe CADC of lhe Tadyavan
Trile covers lhe nunicipaIilies of Vicloria and Socorro, lolh in OrienlaI Mindoro.
When pIolled in a nap, lhe nining area (Mining Iernil No. 167-2OOO-IV, and AMA No. IV-1O3)
of Inlex are cIearIy vilhin lhe anceslraI donain cIains of lhe AIangan and Tadyavan Mangyan lriles
represenled ly exisling organizalions, naneIy SANAMA, SASSAMA and KAMTI (Iigure _______).
The NCI for lhe OLCD CuideIines, in ils IinaI Slalenenl concIudes lhal: There are cIear indicalions
lhal lhe nining concession area of Inlex overIaps vilh lvo ofhciaIIy recognised cIains lo lhe Iand. These
leIong lo lhe Mangyan Sanana and Kanli organisalions, represenling lhe AIangan and Tadyavan
indigenous lriles respecliveIy.
In a silualion vhere a projecl is vilhin lhe anceslraI donain cIain, consuIlalions shouId le done
vilh aII lhe affecled II connunilies and nol vilh a Iiniled or seIecled group in a connunily. The
affecled II connunilies are lhe ones vho shouId decide over aclivilies vilhin lheir connunaI
anceslraI donains. In lhis case, SANAMA, SASSAMA and KAMTI are lhe Iegilinale CADC hoIders.
UnforlunaleIy, lheir Iegilinale anceslraI donain cIains (CADC No. R4-CADC-O24 and CADC No. R4-
CADC-O85) vere nol considered during lhe LIA process.
The consuIlalion conducled ly Inlex Resources focused on lhe KaliIogan & Sadaki lo lhe excIusion
of olher II groups vilhin lhe inpacled anceslraI donains. KAILOCAN gave lheir IIIC lo nining
aclivilies covered ly LI IV-OO4 and AMA IV-O97 in OrienlaI Mindoro.
In 2OO8, anolher IIIC vas granled ly KAILOCAN and SADAKI for lvo nore nining appIicalions
Iocaled in lhe MunicipaIily of SalIayan, OccidenlaI Mindoro, naneIy, AMA IV-1O1 and IV-1O3. This
IIIC vas conlesled and suljecled lo invesligalion ly lhe NCII.
The LIS conhrned lhal lhe consuIlalions vere Iiniled lo lhe nenlers of lhe AIangan and
Tadyavan lrile represenled ly SADAKI and lhe nenlers of lhe angon/Ruang lrile represenled ly
0 , 1' 2 5 2
KAILOCAN. Il is inporlanl lo nole lhal nenlers of lhe lvo organizalions reside in arangay ViIIa
Cerveza in lhe lovn of Vicloria, OrienlaI Mindoro (TalIe 4-6O. LIS, Seclion Iour, page 4-212).
KAILOCAN and SADAKI vere organized ly Inlex (fornerIy Mindex), vilh lhe supporl of lhe
lhen RegionaI Direclor of lhe NalionaI Connission on lhe Indigenous IeopIes. ul lhey represenl onIy
lhe ninorily of lhe slakehoIders.3 (Annex) The dehnilion of free and inforned consenl according lo
IhiIippine Iav requires lhal a pre-requisile condilion of consensus of aII nenlers of lhe ICCs/IIs
shouId le ollained. The insignihcanl nunler of KAILOCAN and SADAKI is far fron leing such. The
Mangyan connunilies in OccidenlaI Mindoro (vilhin nining lenenenls No. AMA No. IV-1O1 and
AMA No. IV-1O3) are represenled ly ils AIangan lrilaI organizalion, Sanahan ng SalIayan al Sla. Cruz
Mangyan AIangan (SASSAMA). Il is highIy irreguIar lhal onIy a handfuI of Mangyan connunilies in
OccidenlaI Mindoro vere idenlihed as slakehoIders lo lhe projecl, considering lhal lolh organizalions
fron vhich Inlex ollained consenl, naneIy, SADAKI and KAILOCAN are noslIy found in OrienlaI
Mindoro, vilh very fev nenler connunilies in OccidenlaI side. Seclion 4c of IIRA expIicilIy requires
lhal uncn |nc pc|icq, prcgram, prcjcc| cr p|an affcc|s.a unc|c rangc cf |crri|crics cctcring |uc cr mcrc anccs|ra|
cmains, |nc ccnscn| cf a|| affcc|c |CCs/|P ccmmuni|ics sna|| |c sccurc. (enphasis added).
Moreover, nosl of lhe KAILOCAN and SADAKI nenlers are residenls of Silio Iuling alo, ViIIa
Cerveza, OrienlaI Mindoro. The nenler-connunilies, incIuded in lhe NCII Iisl, naneIy, iyakaIan
(or ViacaIan), MaIayas, odlod, Siaden, Mauring, are aII cerlainIy oulside AMA IV-1O1 and IV-1O3.
KAILOCAN, represenled ly lheir Ieaders, naneIy, Mario Hala, onlay aIdo, Rulen uesa, RaniI
aIdo, Ador Malyas, anong olhers had aIready signed a MOA vilh Mindex Resources DeveIopnenl
for LI IV-OO4 and AMA IV-O97, for silios and areas Iocaled in rgy. ViIIa Cerveza, OrienlaI Mindoro
on }une 29, 1999. This facl aIone viII prove lhal KAILOCAN are residenls of OrienlaI Mindoro, and
nol of OccidenlaI Mindoro, olhervise lhey couId nol in any vay enler inlo lhe said MOA for leing
oulsiders lo lhe area. KAILOCAN is nov leing nade slakehoIders of lvo nore nining lenenenls
Iocaled al lhe olher side of lhe provinciaI loundary in OccidenlaI Mindoro, vilh lhe NCII insisling on
lhe possiliIily of KAILOCAN leing in lvo differenl dislanl pIaces al lhe sane line.
On lhe olher hand, SADAKI, vhich neans, Sanahang Apo Diya AIangan KisIuyan Inc., is a lreak-
avay organizalion fron KAILOCAN, vhich is lased in KisIuyan, a knovn silio of ViIIa Cerveza, a
arangay of OrienlaI Mindoro. The Iisl of SADAKI connunilies incIude TaIulo, MaIangis, Iuling-
alo, Maigal, AIyanay, Shalo, KisIuyan are verihalIy oulside AMA IV-1O1 and IV-1O3, lhe suljecl
lenenenl for IIIC process.
Hov lhe lvo snaII II organizalions in OrienlaI Mindoro (vilh KAILOCAN aIready provided
lheir consenl for LI IV-OO4 and AMA IV-O97) lecone slakehoIders of lvo nore nining lenenenls
in OccidenlaI Mindoro (AMA IV-1O1 and IV-1O3), vhiIe excIuding Iegilinale CADC cIainanls-
organizalions, is a cIearIy resuIl of highIy defeclive and queslionalIe processes.
The NCI for lhe OLCD CuideIines, in ils IinaI Slalenenl Iikevise hnds lhe siniIar . The reporl
nenlioned lhe foIIoving irreguIar and highIy queslionalIe lasis ly vhich lhe Iegilinacy of lhe groups
lhal represenl lhe indigenous peopIes connunilies is eslalIished:
x The reporl concIudes lhal lhere is no avaiIalIe evidence lhal lhe KaliIogan and lhe Sadaki have
leen chosen as lhe represenlalives of lhe affecled indigenous groups pursuanl lo lheir ovn
Reorl of Roberlo AImonle lhen NCII IrovinciaI LegaI Ocer of OrienlaI Mindoro on lhe MOA of MindexAgIubang
MiningCororalionandKabiIogandaledMarch
156 M C l L u 8
0 , 1' 2 5 2
decision-naking processes. There is no docunenlalion lhal aII lhe concerned indigenous peopIes
have agreed lo aIIov lhe organisalions lo negoliale vilh lhe MNI on lheir lehaIf . . . (NCI OLCD
Reporl, p. 22 )
x The NCI hnds lhal lhe KaliIogan and lhe Sadaki represenl sone nenlers of lhe indigenous
peopIes lhal vouId le affecled ly lhe MNI, lul il is nol cIear lhal lhey conslilule lhe Iegilinale
represenlalives of aII affecled indigenous peopIes. The NCI does nol hnd evidence lhal lhey have
leen chosen ly aII lhe affecled indigenous peopIes lo represenl lheir inleresls. The uncerlainly
surrounding lhe seIeclion of represenlalives for indigenous peopIes shouId noliIise Inlex lo
invesligale furlher vhelher lhese groups indeed represenl aII affecled indigenous peopIes. (NCI
OLCD Reporl, p.25 )
Norvays Anlassador SlIe T. Risa hinseIf, in his invesligalion, reporled lhal vasl najorily of lhe
Mangyans are opposing lhe projecl, lul lhe pro-nining groups, KAILOCAN and SADAKI, are fuIIy
supporling lhe nining projecl of Inlex lecause of lhe lenehls lhal lhey gel.
4

Then DLNR Secrelary Heherson AIvarez calegoricaIIy asserled lhal: The MISA area is covered
ly anceslraI donain cIains of nol onIy lhe KaliIogan lrile lul of olher Mangyan lriles. The perlinenl
ruIes and reguIalions of lhe Indigenous IeopIes Righls Acl of 1997 provide lhal vhere a projecl
affecls a vhoIe range of lerrilories convening lvo or nore anceslraI donains, lhe consenl of aII
affecled Indigenous CuIluraI Connunilies Indigenous IeopIes shaII le secured. AgIulang (Inlex IocaI
sulsidiary) has nol secured such consenl.5
Il shouId aIso le noled lhal lhe LIS incIuded in ils sludy a nevIy-discovered lrile, Ruang vhich
is nol recognized lo have a dislincl lrilaI idenlily even ly lhe olher Mangyan lriles. The LIS slales
lhal lhe nine sile is vilhin lhe cIained anceslraI donain of lhe Mangyan AIangan/Tadyavan Triles
(SADAKI Croup) and lhe angon/ Ruvang Triles (KaliIogan Croup). Hovever lhe SADAKI group
does nol represenl lhe AIangan and/or Tadyavan lriles.
Iurlher, angon/Ruang is a nevIy eslalIished sul-group fron lhe originaI AIangan and Tadyavan
Mangyan lriles of Mindoro. This sul-group of angon/Ruang is unknovn or nol recognized ly lhe
originaI lriles as indicaled in lhe Iellers fron lhe SANAMA of lhe AIangan Mangyans daled 27 Augusl
2OO7, fron lhe Sanahang NU of angon Mangyans daled 18 Decenler 2OO9, fron lhe Mangyan
Mission daled O7 }uIy 2O1O, and lhe ofhce of lhe Mayor of Vicloria, OrienlaI Mindoro daled O5 }uIy
2O1O. |Annexes XX, XXI, XXII & XXIIIj.
2. The anceslraI donain is aIso vilhin lhe valershed and under lhe jurisdiclion of lhe IocaI governnenl.
ConsuIlalion vilh lhe IIs and IIIC are required under severaI seclions of lhe IIRA of 1997 and
under Seclion 16 of lhe IhiIippine Mining Acl of 1995. Likevise, lhe anceslraI donain overIaps vilh
lhe valershed area. And lhe valershed incIudes lolh lhe upper valershed (lhe nounlain) and lhe
dovnslrean valershed area (lhe ood pIain). The consideralion of lhe exlenl and inuence of lhe
valershed of Mag-asavang Tulig River covers lhe anceslraI donain area of lhe Mangyans in lhe
upper valershed vilh lheir respeclive larangays and nunicipaIilies of Vicloria, OrienlaI Mindoro
and SalIayan, OccidenlaI Mindoro and lhe ood pIain vhich is aIso conposed of larangays and
nunicipaIilies of Vicloria, Naujan, and lhe cily of CaIapan in OrienlaI Mindoro. AII lhese larangays
ReorlofAmbassadorSlIeTRisalolheOceofSecrelaryforDeveIomenllransIaledfromNorvegianSelember
IressSlalemenloflhenDINRSecrelaryHehersonAIvarezdaledNovember
0 , 1' 2 5 2
and nunicipaIilies are vilhin lhe respeclive provinces vhich represenl lhe IocaI governnenl unils.
These IocaI governnenl unils (larangay, nunicipaIily, province) have lheir respeclive IegisIalive
counciIs, lhe Sanggunian concerned.
Thus, vhiIe lhere is IIIC requirenenl in lhe anceslraI donain in lhe upper valershed area, lhere
is a requirenenl for lhe approvaI of lhe sanggunian in lhe ood pIain. The decisions fron lhe IIs
and fron lhe sanggunian concerned have lo le considered and reconciIed lecause lhe aclivilies in
lhe upslrean areas affecl lhe dovnslrean areas. This shovs lhal a projecl, Iike lhe Mindoro NickeI
Irojecl, vhich has adverse inpacls lo lhe environnenl and lhe ecoIogy, requires an LIA process lhal is
carefuIIy designed, independenl, and lransparenl.
III. 5UMMARY OF FINDING5
To sunnarize lhe hndings:
1. ConsuIlalion vilh SADAKI and KAILOCAN nenlers as residenls of ViIIa Cerveza is vilhin
lhe jurisdiclion of lhe IocaI governnenl unil and covered ly seclion 7O of RA 7942 and seclion 27
of RA 716O. Consenl lhal nighl cone fron SADAKI and KAILOCAN cannol represenl lhe IocaI
governnenl unils nuch nore le vieved as approvaI fron lhe concerned sanggunian.
2. Our hndings afhrn and vaIidale lhe reporl of lhe NCI for lhe OLCD CuideIines, in ils IinaI
Slalenenl, slaling lhal: Ior lolh lhe 1999 and 2OO8 IIIC consuIlalions, lhe conpany appears lo have
dehned lhe inpacl area as lhe nine sile.
6
The polenliaI effecl of lhe nining projecl on indigenous
peopIes leyond lhe nine sile has nol leen docunenled. This incIudes lhe effecl of lhe projecl
on indigenous peopIes possilIy residing ly access roads, lransnission Iines and olher associaled
faciIilies, incIuding aIong lhe proposed 42 kn conveyor corridor and olher lransporlalion roules lo
lhe processing sile. Il appears lhal neilher lhe MNI nor lhe NCII underlook any anlhropoIogicaI
sludy in 1999 or Ialer lo idenlify indigenous peopIes olher lhan lhose found Iiving on lhe nine sile.
The issue of onIy gelling lhe consenl of a snaII ninorily, vhiIe excIuding lhe najorily of lhe
inpacled Mangyan, is aIso al lhe rool of lhe prolIens perlaining lo lhe IIIC process. IIRA dehnes
connunaI cIains as referring |c c|aims cn |an, rcscurccs an rign|s |ncrccn, |c|cnging |c |nc unc|c
ccmmuni|q ui|nin a cfnc |crri|crq.
7
If any porlion of lhis lerrilory is inpacled il has inpIicalions for
lhe properly righls and lhe conslilulionaIIy prolecled due process righls of lhe vhoIe connunily
vilhin lhe lerrilory and affecls aII nenlers of lhe connunily.
Iree Irior Inforned Consenl is cIearIy dehned in Seclion 3g of IIRA as |nc ccnscnsus cf a|| mcm|crs
cf |nc |CCs/|Ps j|nigcncus Cu||ura| Ccmmuni|ics / |nigcncus Pccp|cs] |c |c c|crminc in acccrancc
ui|n |ncir rcspcc|itc cus|cmarq |aus an prac|iccs, frcc frcm anq cx|crna| manipu|a|icn, in|crfcrcncc an
cccrcicn, an c||ainc af|cr fu||q isc|csing |nc in|cn| an sccpc cf |nc ac|iti|q, in a |anguagc an prcccss
uncrs|ana||c |c |nc ccmmuni|q.
3. The requirenenl of lhe IIRA for securing genuine IIIC fron lhe II slakehoIder-connunilies vas
nol conpIied vilh. IIIC shouId have leen ollained fron lhe consensus of lhe II connunilies
represenled ly lheir respeclive organizalions - SANAMA, SASSAMA and KAMTI, vhich are lhe
Iegilinale CADC hoIders of lhe anceslraI donains, vhere lhe proposed nining projecl is Iocaled.
ShankIemanelaIIaclndingmissionlolheIhiIiines
IIRASeclioneChalerII
158 M C l L u 8
0 , 1' 2 5 2
IV. RECOMMENDATION5
1. InpIenenl lhe provisions of IIRA lo nake lhe IIIC process incIusive of aII lhe direcl and indirecl
II slakehoIders and connunilies.
2. Lnsure lhal lhe LIA process is carefuIIy designed, independenl, and lransparenl.
3. Consider lhe aved IIIC inoperalive and non-linding.
$O\DQVD7LJLO0LQD
A1M Nutonu Secreturut
c/o HARlCN Cce, 2/l Suntos und Sons udng
r 973 Auroru vd. corner Dupdup St.,
Anonus, Cubuo, uezon Cty ll09 lhppnes
1e.: +63 |02) 434.46.42 oc 27
lux: +63 |02) 434.46.96
Lmails:
ncOalyansa|igilmina.ne| policyOalyansa|igilmina.ne|
sosOalyansa|igilmina.ne|
1wi||er: Websi|e: |acebook:
a|mphilippines www.alyansa|igilmina|.ne| Alyansa 1igil Vina
>D>D/E
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CCl-NASSA / Curtus lHlLllllNLS
470 Cen. Lunu Street, lntrumuros,
Munu, lHlLllllNLS
02) 353-9346, 527-4l47, 527-4l63
ux: |02) 527-4l44
vvv.nussu.org.ph
2/l lutru dg., Sto No Cuthedru Compound
Cuupun Cty, lhppnes
1e. No. |043) 288-3048

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