1 / 17

COAL MINING ISSUES IN THE PHILIPPINES

DEPARTMENT OF ENERGY. COAL MINING ISSUES IN THE PHILIPPINES. by Alicia N. Reyes 7 th CASM Annual Conference Ulaanbatar, Mongolia. POLICY.

junko
Download Presentation

COAL MINING ISSUES IN THE PHILIPPINES

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. DEPARTMENT OF ENERGY COAL MINING ISSUES IN THE PHILIPPINES by Alicia N. Reyes 7th CASM Annual Conference Ulaanbatar, Mongolia

  2. POLICY DOE Circular 87-03-001 and amendments thereof provide the guidelines and procedures for the implementation of a program that will allow small-scale coal mining by providing less stringent and socio-economically sensitive regulations. The program recognizes that small-scale coal operations are socio-economic projects easily accessible to the local community.

  3. POLICY • Application limited to residents of the host • barangay, city/municipality or province • Maximum area of 5 hectares • Maximum coal reserve of 50,000 MT • Term of permit -5 years renewable for another 5 years • Should be supervised by a nearby or host large-scale • coal operator • Otherwise, must operate as an independent permittee with own • technical personnel • Proposed mining operation should have consent from Barangay • Captain and/or Municipal Mayor

  4. POLICY • Operations must comply with applicable safety rules and • regulations on coal mining • Permittee to remit 3% of the gross sales to the Government • as royalty • Secure the Environmental Compliance Certificate • through an Initial Environmental Examination (IEE) Checklist • (Memorandum Circular No. 005 of the Department of • Environment and Natural Resources)

  5. STATISTICS • There are currently 43 mining permits located in 8 provinces namely: • Quezon • Bicol • Masbate • Cebu • Negros Oriental • Negros Occidental • Zamboanga Sibugay • Surigao del Sur • These operations would employ approximately a total of 1,290

  6. STATISTICS • Coal production from SSCM operations in 2006 was 72,957 MT translating to 2.82% of the total domestic coal production • Records of total government share from SSCM for the last five years are as follows: • 2002 P 409,575.79 • 2003 662,523.64 • 2004 928,134.22 • 2005 2,153,407.20 • 2006 2,799,663.27

  7. Small-Scale Coal Production Philippines 1990-2006

  8. BENEFITS OF SSCM • Livelihood is provided in the host community where economic activity is further stimulated by small-scale coal mining operations by way of coal sale proceeds, right-of-way payments, mine workers’ wages, loading/unloading contracts, hauling fees and small convenience stores that cater to workers needs. • Employment generation as local residents are hired for the mine operation except for the mine foreman, safety or mining engineer. • Increase in industry investments as coal mine facilitates operation of certain industries such as coal power plants, cement plants and other industrial uses. • Foreign exchange savings from displaced oil importation • Increased self-sufficiency in energysupply • Government royalties. It is commendable to note that there is only a small percent of delinquency among SSCM permittees in the payment of government shares.

  9. ISSUES/RISKS • Inactivity at the Minesite • Geological Problem – coal seam is lost or pinches out • Accessibility - difficulties in the hauling of coal • Financial - lack of capital to pursue mining operations • Marketing - difficulty in closing a sale and getting a good • price for the coal in view of small volume of produce • (Low wage problem for miners)

  10. ISSUES/RISKS • Regulatory • Illegal coal mining • Misinformation - land owners believe their right extends to the natural resources beneath their property • Improved coal demand – a lot of small industries are converting from oil-fired to coal-fired • Safety violations – related to financial constraints (lack of • personal safety equipment, paraphernalia such as gas detectors, • below standard shaft openings)

  11. Compartmentalized shaft

  12. Timbered level

  13. Manual hauling of coal to surface

  14. Onto the stockpile

  15. Makeshift hoist and windlass assembly

  16. Conclusions • Small-scale coal mining operation requires capital not • normally afforded by ordinary citizens such that the • business is normally held by prominent locals as law provides only • for individual applicants. • No significant improvement in the life of the miners as the • wage provides for only hand-to-mouth existence • ( cannot even cope with minimum wage) • Increased/improved coal price does not result to more benefits for workers • More active information campaign and monitoring by the • Government is needed to discourage illegal mining and ensure • safe coal mining operations

More Related