Small Town in the Philippines Scores Victory Against Hazardous Mining

Farmers and activists win suspension of black sand mining operations, disputing claims of jobs and economic gains.

By Ronald O. Reyes, UCA News

Jesus Cabias Jr. heaved a sigh of relief as he watched heavy machinery — including a giant dredger used for black sand mining — stop its entry into the mine area in MacArthur town in the third week of February.

For years, the 53-year-old farmer had joined rallies with fellow residents of the town of about 20,000, waging a small but steady battle against mining.

They were joined by anti-mining groups and environmental activists calling for an immediate halt to black sand mining, which they say poses a serious threat to the environment and public health.

Since early January, residents formed what they described as a “human barricade” to prevent the dredger from operating.

The protests prompted the Leyte Provincial Council, which has jurisdiction over MacArthur municipality, to pass a resolution temporarily suspending black sand mining operations pending a comprehensive compliance review across the province in the central Philippines.

On Feb. 19, MacArthur Iron Projects Corp., which had operated in the town for decades, announced it was closing its mining activities there.

The company had earlier been granted a permit to conduct mining on about 2,000 hectares covering MacArthur, Javier and Abuyog towns in Leyte province.

Cabias said the halt is welcome but not enough.

“What we also want is the total cancellation of the mining permit,” he told UCA News.

He said the provincial council’s decision should prompt national agencies — including the Mines and Geosciences Bureau, the Department of Environment and Natural Resources, the Department of Agriculture and the National Irrigation Administration — to review and even revoke permits of companies accused of damaging the environment and local livelihoods.

MacArthur Iron Projects Corp. said it had contributed to the community’s economic well-being over the years but decided to respect the government order.

Mining company withdraws dredger after protests

In a statement sent to UCA News, the company said it was removing the dredger “as part of a decision to re-evaluate the equipment’s use and ensure compliance with local regulations.”

“In light of the current situation, and in the interest of maintaining harmony and preventing further escalation, MacArthur Iron Projects Corp. has decided to withdraw the dredger and re-evaluate its current work plan,” the statement said. The company added that it sought assistance from local government units to safely remove the structure.

The company said the project generated thousands of direct and indirect jobs that stimulated household incomes, energized local businesses and attracted investments.

Responding to opposition from residents, MacArthur Iron Projects Corp. said it “is highly committed to enhancing mining efficiency and boosting the local economy.”

It claimed the mining operations contributed more than 100 million pesos (about US$1.7 million) annually in taxes and fees to the government.

Minerals extracted from black sand are used in manufacturing chips, electronics, automobiles, mobile phones and other industrial products.

The company earlier posted a 56 million peso rehabilitation bond with the Mines and Geosciences Bureau to “restore the land area to full cultivation before its return to the owners.”

Jaybee Garganera, national coordinator of Alyansa Tigil Mina, said while the group welcomed MacArthur Iron Projects Corp.’s decision, it questioned whether the company was genuinely listening to community concerns.

“The residents demand that they stop their operations, especially their entry into prime agricultural lands. Beyond just pulling out their dredger, the company should permanently leave MacArthur,” Garganera said in a Feb. 27 statement.

“The harm and damage to the environment and communities far outweigh the supposed economic benefits of the mining project,” the statement added, urging the Department of Environment and Natural Resources to cancel the mining permit in MacArthur and other areas following comprehensive review and inspections.

A mineral-rich country 

The Philippines is the world’s fifth-most mineral-rich country, with an estimated US$1 trillion in untapped reserves of copper, gold, nickel, zinc and silver, according to a report published Jan. 27 by Chambers Global Practice Guides.

“Notwithstanding this, its mineral wealth remains largely untapped,” the report said. Of the country’s roughly 30 million hectares of land area, about 9 million hectares have high mineral potential. Only about 5% of reserves have been explored, and mining contracts cover roughly 3% of those areas.

Despite this potential, mining remains a contentious issue in the Catholic-majority nation.

Rights groups say unregulated mining has caused pollution, environmental degradation, including deforestation, and poses threats to health, livelihoods, food security and water supplies.

“Indigenous peoples and rural communities are paying a heavy price for the world’s scramble for energy transition minerals,” Veronica Cabe, chairperson of Amnesty International Philippines, said in a Jan. 9 report last year.

Mining disputes, including legal challenges, have led to the suspension of operations in several regions.

However, when the COVID-19 pandemic hit the economy, the government relaxed some mining regulations, saying the move would help generate revenue and employment.

Local resident and anti-mining activist Brenie Morcilla described the dredger’s withdrawal as “a small victory for our community-led anti-mining efforts.”

“Because of our barricade, our protest actions and our prayer vigils, MacArthur Iron Projects Corp. was forced to decide to pull out their gigantic dredger,” Morcilla said in a Feb. 27 statement.

Mining rivals farming

Despite environmental concerns, mining has been credited with bringing economic opportunities to rural areas where farming often yields limited income.

Pepito Guimalan, 61, village chief of Maya in MacArthur, said mining had become a vital alternative livelihood.

“Our land is rich in magnetite sand, which makes it less ideal for farming,” Guimalan told UCA News.

Like other villagers, he leased part of his land to the mining company, generating income for himself and others.

At one point, the company employed about 300 villagers, each earning around 400 pesos (about US$7) a day. The income enabled families to buy appliances and motorcycles and to fund their children’s education, he said.

Guimalan said unemployment in the village fell from 75% in 2010 to 32% in 2020 due in part to mining.

The company also paid 1 million pesos to the village administration for repairs and development projects, he added.

“For a small village like ours, that amount is significant,” Guimalan said.

Featured image: An image of the giant dredging machine makes its way to the town of MacArthur in Leyte Province of the central Philippines. (Courtesy of Jesus Cabias Jr./Philippines)