CDO Mining Case Study
CDO Mining Case Study
13 (2015) 75-98
Abstract
The study focused on analyzing the entire dynamics of small-scale mining in
Northern Mindanao by looking at the impact of mining on the community in terms of
environmental, socio-cultural, economics, production-market flow and health toward
responsible mining. The survey was conducted through a survey and ocular visit in
the mining sites namely: (1) Gango, Libona, Bukidnon, (2) Barangay Tumpagon and
(3) Barangay Pigsag-an in Cagayan de Oro City, (4) Nangcaon, Opol, Misamis
Oriental, and (5) Rogongon, Iligan City, and had a total of 1,405 respondents who
were involved in mining and 60 key informants (barangay officials) who participated
in the discussion during the FGD. Results of the survey indicated that mining is the
main source of income among the respondents from the five mining areas. In a
specific mining site of Gango, drift mining with tunneling system or underground
mining is more appropriate and preferred to this kind of mining area. The other four
mining sites engage in gold panning activities due to its location along the Iponan
River. ANOVA results revealed that gold production differed significantly with
respect to the mining sites. Regression analysis showed the method of mining is the
most important predictor that contributed significantly to gold production with the
highest gold value of 24 karats. In the aspect of health, most miners from the five
selected areas are aware of the health risks and hazards associated with mining.
Most of them have experienced fracture, exacerbate shoulders, and fatigue.
Moreover, environmental impacts commonly mentioned by the respondents were
landslide, flash floods, soil erosion, biodiversity loss, loss of organic fertility and
soil-water contamination.
1. Introduction
According to the recent study made by Israel (2011), the country stands to
give more economic benefits from mining by focusing on value addition
particularly in terms of downstream processing and manufacturing activities.
However, the report also showed that the sector is faced with issues well
beyond question of return on investment (ROI) (Angara, 2012). This issue
may not be limited only on how much monetary gain can be made but
further studies must be examined on the aspects of socio-economics, socio-
cultural, socio-political and environmental impacts of mining in Mindanao.
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More specifically, this study aims to: (1) assess and analyze the socio-
economic situation and impacts of mining in terms of sources of income,
number of years engaged in mining, methods of mining, and purification
method; (2) determine the socio-cultural characteristics and impacts of
mining in terms of ethnic origin, cultural belief system and many others; (3)
determine the volume of production of mining per visit; (4) determine if
there is a significant relationship between the volume of gold production and
related predictors on the number of years in mining, methods used in mining,
and belief in rituals; (5) assess the health hazards and impacts of mining; and
(6) identify practices or initiatives of responsible mining among GOs, NGOs
and LGUs.
2. Methodology
The actual research site was the Iponan River interconnected watershed that
encompasses the gold mining/panning sites in the upperstream areas of
Gango, Libona in Bukidnon, Tumpagon and Pigsag-an in Cagayan de Oro
City, Nangcaon, Opol Misamis Oriental and Rogongon, Iligan City.
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This study employed both primary and secondary data. The main instrument
was an 8-page questionnaire which deals with the socio-economics, socio-
cultural, production to market, health and safety standards, and
environmental impact.
Table 1 shows the main sources of income of the respondents on the five
mining areas. It was observed that mining is the primary source of income
among all areas. Tumpagon obtained the highest number of respondents
(346) or 93.1% whose main source of income is mining and only two percent
considered mining as their secondary source. This is followed by Gango,
Bukidnon (93%). The data suggest that residents in the mining sites are
actually involved in mining activities either as a main source or a secondary
source of livelihood. About 10% of those whose main source of income is
non-mining, had engaged to mining activities as their secondary source of
income, while about 25% of the miners had engaged in non-mining activities
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These aforementioned data are supported with the statement of Rolfe (2007)
on her study on “Social and Economic Impact of Mining”, that a certain
source of livelihood in the locality can boost economic and social growth in
general, thus it has a greater impact to the community where the mining
industry is locally situated. This finding on the main livelihood as miners
gives general implication toward resource utilization like the presence of
mineral ores in the locality which can serve as an opportunity for settlers as
main source of income.
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Furthermore, brgy. Gango had the highest daily income average of PhP
500.00 among the respondents everytime they work. Among the five (5)
mining sites, Gango also obtained the highest generated income from
mining, since it is already an established-mining area and has even applied
for the Minahan ng Bayan in the Bukidnon Provincial Government in 2011.
Generally, this finding implies that the larger the number of the mining
areas, the higher the opportunity of the local residents/settlers to mine.
Further, there can be a possibility for migrant miners to traverse the mining
sites of Tumpagon, Nangcaon, Pigsag-an, Rogongon and vice versa, since
these areas are geographically bordering the provinces of Misamis Oriental
and Lanao del Norte.
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mercury. For the other mining sites, the use of water to remove other
impurities is a common method as well as bilingan or panning because it
would serve as a strainer.
Table 3 shows the ritual practices of the respondents with regards to mining
activities in their respective areas. Only 15.87% of the respondents perform
rituals before engaging in any mining activities and their usual practices
include the offering of slaughtered animals, prayers and food offering.
Tradition and their culture are the main factors as to why most respondents
believe in performing rituals, contrary to those who do not believe in rituals
where they answer that hard work is more important than any rituals of good
luck.
Table 3. Performance of Rituals
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3.2.2 Presence of Mining Groups and their Operation to IPs and Non-IP
Territories/Amenities
Table 4. Presence of Mining Firms and their Operation to IPs and Non-IP
Territories/Amenities
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As to the changes in their way of life brought by mining activity, more than
half of the respondents, with 67.6%, believed that mining hasn’t brought any
changes in their lives. They reasoned that the money they get from mining is
still not enough to meet their daily needs because they have small yields and
thus low income. Others implied that they have too many dependents with so
many expenses. However, Barangay Gango has a more positive assessment
on mining activities since 399 of respondents (n=400) answered that mining
has improved their lives. Some indicators of these changes included (1) the
ownership of a house/car; (2) children going to school; (3) enough money to
satisfy their daily needs; (4) ownership of a small business; and (5) spare
money to be sent to families in the provinces.
Even though more than half of the respondents said that mining hasn’t
changed their lives, majority of them are in favor of mining in their locality.
87.1% of them would want mining activities to go on in their community
since it is their main source of income and can help support their families.
Moreover, several respondents who are also engaged in farming said the
income they get from mining is a big help to them while they are waiting for
farm harvests. These differences of opinion differed significantly at .05 level
(χ2 = 517.699, df = 3).
Table 5 indicates that Gango mining sites have more yield compared to the
other sites with an average of 2.694 g per visit. Gango miners can go as
much as 200 g. Furthermore, it has the highest maximum and minimum yield
of all five mining sites. Gango has a more established mining system, the
money they get from it doesn’t necessarily come from gold yield, rather,
they get it through paid labor as abantero or atrasero. This is different from
the other four mining areas where the miners get to keep and sell their own
yield. This is followed by Tumpagon which has an average yield of .209 g.
Notably, almost all respondents from this area consider mining as their main
source of income, almost all members of the family including children took
the free gold mining along the upper source of Iponan River where the
common method of mining is panning and free gold is made available all the
time.
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Table 6 shows that majority of the respondents sell their yield to a middle
man or a local buyer and only 13% are into the direct selling of their gold.
Furthermore, cash is the most common term of payment and only very few
of the respondents sell it through credit or payment for debt. This indicates
that the respondents have sufficient income to not resorting to debt.
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For small-scale mining specifically Tumpagon and the like, where there is an
absence of regulations and appropriate policies, several problems arise most
specifically in the production, marketing and financing of gold. The most
common problems that miners experienced in these areas are the low
production and low price of gold and as a result, there is a slow return of
their investment. Low production of gold can be attributed to the current
scenario of the mining areas where there are more miners now than in the
previous years, specially on the arrival of numerous migrants. Because of
this, competition among miners on the production of gold becomes tighter.
The low pricing of gold is another problem that miners face. According to
the respondents, there are buyers or middlemen who refuse to buy gold if the
yield is only below five grams. Arguably, when the miners sell their yield to
end-users, such as pawnshops and jewelry stores, they will be given a much
higher price for the gold.
In Gango, tunnel owners, bullmill owners, gold buyers, jewelers and gold
processing owners are required to pay taxes per year. Their taxes, with a tax
rate of 5%, are usually paid in the Municipality of Libona. Tax from mining
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as well as the nonpayment of tax from other small-scale mining areas is one
of the many factors why the mining’s contribution to the Gross Domestic
Product is merely one percent (Asia News Monitor, 2014).
There is a pronounced difference between Gango and the other mining sites
when it comes to income sufficiency: as such, 74.5% of Gango’s population
has sufficient income while only a total of 16.2% from the other mining sites
has sufficient income. Those who have sufficient income reasoned out that
their earnings can still be budgeted, enough to buy food, pay debts, and meet
other necessities. Income sufficiency in Gango is usually related to the
continuous work provided by the tunnel owners.
Results of the regression analysis presented in Table 8 reveal that two out of
six predictors contributed significantly to the gold production of the miners.
The most important predictor is the method used in mining. This indicates
that the miners who used tunneling as their method of mining yielded more
gold than those who practiced gold panning. Obviously, large scale mining
yielded more gold than the small-scale mining. The regression coefficient of
.030 with regards to the number of years engaged in mining suggests that
those who are more experienced yield more gold than those who are new in
the said venture.
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Results from the regression analysis identified ethnic origin as best single
predictor for gold production. The computed regression coefficient of 1.091
shows that non-Higaonon tribes which consist of Cebuano, Visaya and
others have more gold production than the Higaonon tribes. Practicing rituals
and the belief of practicing rituals did not contribute effectively to the
increase of production.
Table 9. Regression Analysis Output Between Gold Production and Some Related
Predictors (Ethnice, Practice of Rituals and Belief)
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The most common trainings conducted in Gango mining site were safety
mining, rescue, first aid and sanitation. The same information were learned
by a few miners in Tumpagon mining area. Generally, trainings for safety
mining are well-established in Gango mining sites as they employ tunnel
method in mining.
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respondents (88.4%) are aware of the health risks and hazards that are
associated with mining.
In terms of the common hazards that the respondents were exposed, most
respondents went through ergonomic hazards which shows that 80.5% have
exacerbate shoulder fatigue (pamaul/pangalay sa abaga). Other hazards
experienced are (1) injury caused by rock/fall/fire/explosion (physical
hazards); (2) skin disease/allergy (chemical hazards); (3) dengue (biological
hazard); and (4) post-traumatic stress disorder (psychological hazard).
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Seventy percent of the respondents from all the five mining sites believed
that mining, despite the positive effects it brought in their lives, can still lead
to adverse consequences especially in the environment. Moreover, there is a
noticeable difference between Gango and the other mining sites regarding
these consequences. Only 36% of Gango’s population (n=400) admitted of
these negative impact compared to the 83% from the population of the other
mining sites.
Mining has affected the agriculture of the five selected mining areas. Gango
has been affected simply because residents did not have time to farm since
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mining is their main source of income. For the other mining sites, the
common causes of agricultural degradation are the mining activities that take
place in the river and soil erosion due to flashflood and landslides.
The other mining sites, with the exception of Gango, has a few water
resources that are affected by mining such as rivers and streams. Mining has
an effect in the turbidity and contamination of water as evidenced by the
discoloration of water and absence of living organisms and other aquatic
weeds.
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Agencies / Institutions
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4.1 Conclusions
Along with the social factors affecting mining, the source of livelihood in the
locality can boost economic and social growth in general and it has a great
impact to the community where the mining industry is locally situated.
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4.2 Recommendations
There is a need to have a strong advocacy to the local residents and miners in
relation to the negative impacts or effects of the environment brought about
by mining activities. LGU’s should take the lead in the advocacy.
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4. Acknowledgement
The research team would like to express their sincerest gratitude to the
Commission on Higher Education for providing MUST the financial
assistance needed to mobilize the research. Also, to the MUST
Administration whose invaluable support and assistance were very
instrumental in the success of the research. We also recognize the services
and cooperation of the barangay captains during the field survey namely, Mr.
Armando Alinggom of Brgy. Tumpagon, Mr. Salvador Misca, Sr. of Brgy
Pigsag-an, Ms. Editha Ompoc of Brgy. Nangcaon, Mr. Eleazar Ibona of
Brgy. Gango and Mr. Radi Pugoy of Brgy. Rogongon. Lastly, much
appreciation is given to the Research Assistant, Research Admin Staff, and
Enumerators for their work in data gathering and in the accomplishment of
numerous logistical requirements required of the research.
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