Mining industry rolls out P1.5B social program

Major players in the Philippine mining industry have rolled out a major initiative meant to promote “responsible mining” in the country and help overcome roadblocks that prevent the sector from achieving its full potential.

Information gathered from the Mines and Geosciences Bureau of the Department of Environment and Natural Resources (DENR) revealed that various mining companies have begun to spend what will eventually amount to P1.5 billion in Social Development Management Programs (SDMPs) from 2010 until 2014.

“This is the second five-year social development program, and we expect some 113 barangays around the country to benefit from it,” said an industry source who declined to be named.

The official of the Chamber of Mines—the umbrella organization of large mining firms operating in the country—said that based on actual disbursement patterns, the actual expenditures for miners’ social programs would “likely exceed the committed amount.”

The ramped up spending aimed at winning over the “hearts and minds” of local communities comes amid an intense public relations campaign being waged against the mining industry by critics who claim that the companies are destroying the environment through their activities.

The Chamber of Mines contends, however, that its members are fully compliant with strict environmental laws and that any violations are being committed by unregulated small-scale miners.

From 2002 to 2009, Chamber of Mines member firms involved in large-scale mining and quarrying operations have poured in an estimated P580 million for their SDMP that benefited 199 barangays (villages) nationwide, exceeding the original target of P388 million.

“These contributions to the communities where the mining companies operate exceed what is required under the law,” the industry official pointed out, adding that mining is the only sector of the economy mandated to have a social program.

The DENR requires mining contractors to develop an SDMP, which is a five-year plan toward the sustained improvement of the living standards of the host and neighboring communities.

This is achieved by creating responsible, self-reliant and resource-based communities capable of developing, implementing and managing community development programs, projects and activities.

Through this, a part of the income from the country’s mining resources are reinvested in the communities to help empower the local population through education, healthcare, cultural enhancement, social services and livelihood programs that are defined by the host communities themselves, in coordination with local government units.

“We believe that it is morally correct to give back to our host communities and to safeguard the environment so that future generations can thrive well beyond the cessation of our mining activities,” said Nickel Asia Corp. vice president for marketing and strategic planning Dennis Zamora.

The Mining Act of 1995 mandates all mining companies to allocate and spend anywhere between 3 and 5 percent of direct mining and milling costs toward the implementation of social development programs, including environmental projects.