The new age of mining under the energy transition poses significant risk of exacerbating climate inequities. The increased demand for transition minerals necessary for the production of green technologies has led to the fast-tracking of mineral licenses within climate-vulnerable, fragile, and corruption-prone states such as the Philippines. The Philippines, ranking second globally in nickel production, emerges as a targeted destination for foreign investment due to its role as the second largest producer of nickel, supplying essential elements for low-carbon technologies and electric vehicles. However, the Philippines’ mining sector contributes less than 1% to the nation’s GDP, with large-scale mining provinces host to amongst the highest poverty incidences in the nation.

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The Philippines' energy transition poses an emblematic case for analysis as the nation boasts the fifth-largest nickel and fourth-largest cobalt and copper reserves globally and is recognized as among the leading countries most at risk from the climate crisis. Despite contributing 0.48 percent to global GHG emissions in 2018, the Philippines is one of the world's most climate-vulnerable countries. Moreover, the Mines and Geosciences Bureau of the Philippines has projected an increase in 190 mining projects within the next 4 years under the transition mineral boom.
 
This scoping study identifies governance vulnerabilities, maps transition mineral value chains, and examines climate and energy policy landscapes in the Philippines. It also illustrates the nation’s status within the global energy transition agenda. Specifically, this report provides an overview of the transition minerals of nickel, copper, chromite, and cobalt in the Philippines.

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Bantay Kita had the opportunity to visit Taganito in the municipality of Claver to meet various individuals, from municipal employees to the indigenous peoples (IP). The primary aim was to learn more about the consequences of mining activities in the region, whether positive or negative.
 
Claver, a Mining Municipality
Originally a small town, it has grown in recent years due to its mining potential. Indeed, mining activities have attracted many individuals to settle in the town and played an important role in its development. In 1939, Claver became part of the Surigao Mineral Reservation [i], which recognized the region for its mining appeal. Just in 2019, Taganito Mining Corp., located in the province of Surigao del Norte, produced 83,052t of mined nickel, representing 25.7% of the total nickel mined in the Philippines. [ii] Since 2008, this mining company has held a Mining Production Sharing Agreement (MPSA) in the municipality of Claver, covering an area of 4,584.5145 hectares of nickel and other associated mineral deposits. [iii] They also signed a memorandum of Agreement (MOA) in 2006 with the Indigenous Ampantrimtu Association since they operate on the Ancestral domains of the Mamanwas. [iv] Under the Indigenous Peoples Rights Act of 1997, indigenous communities have the right to receive a 1% portion of the gross production or output from mining activities, provided they consent to the operation of the mining company on their ancestral lands. [v] According to the National Commission for Indigenous Peoples (NCIP), the ancestral domain in the municipality covers approximately 22,069.06 hectares. [vi]
 
The Mamanwa Indigenous Community
This indigenous community is considered one of the oldest in the Philippines. [vii] Most of them live on the island of Mindanao, but they are a rather mobile community that move around a lot. Traditionally, this community places great importance on hunting and gathering, as this was one of their main sources of subsistence. [ix] However, these natural resources are becoming less accessible and are less sufficient to support their daily needs. [x] This means they are more prone to financial hardship due to access to education needed to land jobs in developing municipalities. They are considered the second poorest IP group in the Philippines. [xi] Among the indigenous tribes residing in the Philippines, the Mamanwa stand out as one of the least educated, facing numerous challenges such as malnutrition and discrimination, to name a few. Particularly in Mindanao, they are recognized as one of the most marginalized and vulnerable Indigenous Peoples (IPs). Studies indicate a pressing need for improved educational access to empower them in asserting their rights and improving their economic status. [xii] Enhanced education would foster better leadership and coordination among their communities, boost their capacity to advocate for their ancestral lands and rights. Despite being situated in one of the country's wealthiest regions in terms of natural resources, the Mamanwa of Mindanao struggle with significant poverty. Mindanao, despite its mineral-rich nature, ranks as the second-highest contributor to rural poverty nationwide, with 46% of its population comprising indigenous communities. [xiii] Despite efforts from the mining sector along with initiatives from the civil society, the challenge of holistic local development that includes the indigenous population remains.  
 
Impacts of Mining
Since these regions are mostly made up of mountains, they are very prone to landslides, which is threatened regularly, most especially during the rainy season, the threat of earthquakes, and the continued denudation of the forests. Cutting down trees without regulation, usually for money or to build roads, can cause forest fires during the dry season. Despite these environmental concerns, mining companies have made significant contributions to local communities through job creation and the construction of new schools and hospitals. [xiv] The municipality of Claver's role in regional development is now focused on the development of the mining industry. Claver has the potential to stimulate economic activities which are essential to the region's mining industry. [xv] While some benefit from these advantages, other sectors also suffer from mining externalities. Part of the local population benefit greatly from mining activities. This mineral-rich region attracts a number of mining companies, creating a variety of employment and development opportunities for the town. These workers are obviously in favor of mining and its benefits since they directly experience the benefits derived from mining activities. On the other hand, they are aware of the consequences of mining activities at some level but are quick to say that they are responding to this problem through various initiatives, including tree replanting. However, this has its limits in terms of effectiveness. The speed of planting does not correspond to the needs of the communities that depend on it for their livelihoods, and we don't know if there is a real effect to counter the already-existing environmental impact of mining.
 
During this visit, the indigenous communities shared that one of the problems they currently face is the destruction of their environment and indigenous habitat. This has a major impact on their daily lives, as it affects their traditional livelihoods and culture. They no longer have access to resources at hand and now have to go further afield to find them. This is a major issue given that they can't go too far away from their houses as they have to look after their children, but above all, the fact that access to resources is limited due to mining activities, to which in some cases they refuse access. Furthermore, these activities lead to the displacement of these communities, which then move further away from their traditional livelihood resources. Therefore, even if not all traditional livelihoods are lost, they are threatened to be lost should there be future expansion of operations.

There also seems to be a massive misinterpretation on the actual needs of the communities. For example, a house-building project has been carried out. However, few of the target beneficiaries actually use them since they don't really need them, and they're not part of their traditional way of life. Some mentioned the lack of understanding of certain processes and documents. This just shows that not everything can be resolved by merely receiving royalties and services, but also looking into environmental and cultural impacts that negates any shallow intervention. This reveals glaring disparities between the beneficiaries of economic spin-offs and marginalized indigenous communities, such as the Mamanwa. The latter suffer environmental damage and loss of traditional livelihoods. A more inclusive approach that respects the rights of indigenous communities is needed to mitigate these disparities and promote truly sustainable development for all. This is one of the reasons why BK is continuously engaging with the mining stakeholders to understand the development needs of mining-impacted and benefitting communities.

​Last February, a week-long fieldwork was facilitated by Bantay Kita within the communities of Loreto, Tubajon, and Libjo in the Province of Dinagat Islands. The aim was to assess the overall developments since the previous visit, address ongoing issues and support livelihood initiatives already underway in these areas. 

As previously mentioned, the region is home to an enormous bonsai forest. Unfortunately, this renowned forest is situated within the former Krominco Inc. mining site in Loreto, which risks diminishing its appeal to tourists. Nevertheless, there is potential to develop the forest as an ecotourism destination, given that its impact on the environment is minimal and it could provide an additional source of income for the community [3]. Furthermore, aware of the negative effects of mining, members of the Loreto People's Organization are in the process of formalizing their group by obtaining registration with the Securities and Exchange Commission (SEC). This step is intended to facilitate access to formal funding from government and private funders. ​