Davao’s Limestone Reserves Up for Grabs

Barrio folk in Davao City’s remote hinterlands are divided over the imminent entry of mining companies to explore limestone deposits. What worries them however is the environment damage that mining would bring into their communities and livelihood.

By Amabelle Plaza-Laminero
Bulatlat

DAVAO CITY - Barangay (village) Captain Francisco Banate fears the entry of a mining firm in his far-flung village of Gatungan this city.

Banate's apprehensions are understandable. A short visit in Gatungan would make
one conclude this sleepy village will likely lose its serenity and beauty once mining sets in.

So far, only the Swiss-owned Holcim Philippines, formerly the multi-billion-worth Davao Union Cement Corporation (DUCC), operates under a Mineral Production Sharing
Agreement (MPSA) for its 806-ha limestone quarry in the city.

A Makati-based firm, Solid North Mineral Corporation, is applying for an exploration permit to extract limestone in Gatungan including five other barangays in Bunawan district in this city: Mahayag, Bunawan, Acacia, Gatuman, Ilang and Mundiang.

Remote Gatungan is the least developed and the smallest of the nine barangays in Davao's industrial zone Bunawan district. Its population is less than a thousand.

Two years ago, men claiming to be representatives of Solid North went to Gatungan and asked Banate's permission to "test for limestone deposits." When Banate asked for a formal letter, the men left and never came back. No surveys on the limestone deposit in their areas have since been conducted.

Last January, Banate attended a committee hearing but was disappointed that Solid North's representatives were absent.  Instead, he and other barangay captains heard the representatives from Holcim who discussed their exploration application for additional 30 hectares.

Banate said most of those who attended the committee hearing were not sold out to Solid North.

"I want to listen to Solid North and what they really plan to do with our barangay," Banate says. He was born in this far-flung village and had been a barangay kagawad (councilman) since 1982 before he became barangay captain last year.

Limestone-rich

One-third of Gatungan has rich limestone deposits but are largely unexplored and untapped. The main source of livelihood for its 900 residents comes from working as
tenants in coconut farmlands. Some also grow banana and corn crops.

Gatungan has six sitios (sub-villages). Only one third of the households in the barangay enjoy electricity, relying on an electric pump

Meanwhile, Banate mulls on some "advantages" in allowing mining exploration in their village. With his barangay operating on a small budget of P603,000, he believes mining could pump in additional revenues. His dreams for the barangay are simple: a water system and a bridge.

But the barangay captain is also wary of the environmental impact of mining. "Who wouldn't be afraid of the environmental catastrophe once mining sets in," he said. Banate owns 1.6 hectares of land planted to some 50 coconut trees. "It's not that easy to allow mining in our area," he says.

Dubious intentions

In an interview, Ricardo Cabling, Davao City councilor and chair of the environment committee, admits Solid North appears to have dubious intentions with its mineral
exploration application.

Cabling was earlier set to submit approval of the Solid North's application.  He was told that the company’s exploration was part of Holcim's application for extraction. He was under the impression that Solid North had already complied with all the requirements. The Mines Geosciences Bureau (MGB) had likewise written to him that once copies of
the exploration and environmental work programs are presented to the city councilors, it is ready for approval by the city council.

Cabling, however, shelved his recommendation after two members of his committee objected to the application saying that a memorandum of agreement must be forged first between the city government and the company, and that environmental considerations must first be studied.

In January, Cabling backpedaled from his earlier position after learning that Solid North was not in any way connected with Holcim.  While supportive of Holcim's mining application, Cabling was not keen in endorsing Solid North.

"We suspect that the Solid North may be applying for a permit but they don't have plans to immediately develop the area, only to reserve it, as if acting like a land speculator," Cabling said.

City officials like Cabling see no conflict with the renewed mining explorations in the city and elsewhere following the Supreme Court controversial ruling on the Mining Act of 1995 last December. The ruling prompted religious and environmentalist groups to raise alarm against the full-speed exploration and large-scale extraction by foreign mining firms.

For his part, Davao City Mayor Rodrigo Duterte recently announced he is in favor of large-scale mining citing its impact in increasing revenues and jobs generation to solve the current economic crisis.

"People normally react when the mining issue is raised,” Cabling said. “They immediately think about the Marcopper tragedy. But here in Davao city, there are no plans of gold or copper large- scale mining. The city's mineral resources include shale, limestone, quarry minerals and those for earthfill."

Edilberto Arreza, MGB operations officer, reportedly said his office is presently
conducting a reconnaissance on Marilog District’s slope, rock and soil types and mineral deposits. The results will be part of the Geographical Information System that the MGB will present to potential investors.

Indeed, villagers like Banate are facing a tough wall once mining firms descend on their villages.

The DUCC (Holcim's precursor) was accused last year by an outgoing Davao City councilor of not paying taxes amounting toP1.2 billion. Based on the documents from
the Concerned Citizens/Taxpayers of Davao City and the Citizens Crime and Graft Watch, city treasurer's office showed that annual real property tax which the city collected from DUCC was only P25.5 million since year 2000 when the annual tax collection should have been at least P342.5 million. With a tax shortage of P317.01 million per year, the city should have a total tax collectible of P1.2 billion.

Holcim Philippines, Inc. is said to be the leading cement manufacturer in the Philippines. It is the merger of Hi-Cement Corporation, DUCC, Bacnotan Cement Corporation and Alsons Cement Corporation. Bulatlat

BACK TO TOP ■  PRINTER-FRIENDLY VERSION  ■   COMMENT

© 2004 Bulatlat ■  Alipato Publications

Permission is granted to reprint or redistribute this article, provided its author/s and Bulatlat are properly credited and notified.