Sustainable Small-Scale Mining

Tree seedlings

By: Bene Ilacad Ballug

Small-scale mining provide sources of income for many people 
in the Communities along the mineralized zones of Zambales Province. Most of the people here enjoy a modicum of experience in traditional small-scale methods such as the so-called “camote” mining and adit mining as practiced in the gold-rich Benguet mineral areas. It is a source of livelihood and income for the community folks who are also into farming production as a second income center.  By virtue of Governments’ “small-scale mining program” that was enacted into Law – this established the system within which coverage of the small scale miners are now formalized in a program and this have provided a well defined course of action to further develop this industry to serve the host- Communities  and also increase the income potential of the Local Government. This law has helped the development of rich mining communities such as those found at Zambales, specifically in the Towns of Candelaria, Masinloc, Sta Cruz and other southern towns. In the Town of Candelaria alone where new Mining group under Intertech – have began what could be a pilot-development program for the eventual development of small-scale mining programs alongside with the development of the environment  and inclusive of the economic upliftment of the stakeholders. It is thus important to create the best working conditions for small-scale miners. 

Small-scale mining under Intertechs’ co-development program with CCMCI shall integrate agro-agri development within the applied areas be carried out as a sustainable activity in accordance with the Department of Environment and Natural Resources (DENR) of the Philippine Government.

"corporatization"

To improve small-scale mining thru cooperative activity: 
Upon organization of a cooperative group between and among the community folks the system of “corporatization” shall be institutionalized in as much as this covers the issues on surface land ownership and right of way. In Intertech experience, we have decided to improve on the “bayanihan” spirit of neighborliness and sharing of benefits such as “income share” from the business operations of the mining establishment. Then the members of the Cooperative Group such as CCMCI become stakeholders in the business thereby giving substance to the corporate participation of the Community folks. A new order herein transforms the whole meaning of cooperation among the Company and the Community that ensures therein further developmental strides to be undertaken all under  a DENR program to mitigate the concerns of the forestal and the environs.

Intertechs’ agro-agri Program:

This program shall introduce a variety of action that are mainly focused on reforestation and agricultural productivity intervention. Both ensure that the commitment to DENR shall be fully implemented within the contract period of 10 years and renewable. The Company shall establish area-wide seedling centers for trees that can grow fast in the Philippines and at the same time introduce other fruit bearing trees and farm products that shall provide additional income for the host-community including its neighboring Towns.

3 major dev’t project in Zambales

IBA Zambales:

Three major projects were inaugurated 

here this week as part of the development program 

of the provincial government.
Governor Jun Ebdane inaugurated the rehabilitated segment of Carael National Highway in the town of Botolan, which was damage heavily during the past rainy season.

According to Governor Jun Ebdane, the rehabilitation works, which connects the northern and southern parts of the province, worth P50 million.
Ebdane also inaugurated P50 million worth of medical equipments at Ramon Magsaysay Memorial Hospital.
High Integrated Medical Engineering Exponent Corp., Inc. (HIMEX) provided a Hitachi Multi-Slice CT Scan Machine, a Hitachi Ultrasound Machine with Elastography and a Hitachi conventional Xray machine.

The governor also formally opened the P100 million worth Zambales Sports Complex that included a track-and-field oval, an Olympic size swimming pool, and an indoor basketball court, among others.

Small Scale Mining Law - R.A. 7076

.
REPUBLIC ACT NO. 7076

 AN ACT CREATING A PEOPLE'S SMALL-SCALE MINING

PROGRAM AND FOR OTHER PURPOSES.

Sec.  4. People's Small-scale Mining Program. — For the purpose of

carrying out the declared policy provided in Section 2 hereof,

there is hereby established a People's Small-scale Mining Program

to be implemented by the Secretary of the Department of

Environment and Natural Resources, hereinafter called the

Department, in coordination with other concerned government

agencies, designed to achieve an orderly, systematic and

rational scheme for the small-scale development and utilization

of mineral resources in certain mineral areas in order to

address the social, economic, technical, and environmental

connected with small-scale mining activities.

The People's Small-scale Mining Program shall include the

following features:

(a)    The identification, segregation and reservation of certain

(b)     mineral lands as people's small-scale mining areas;

(b) The recognition of prior existing rights and productivity;

(c) The encouragement of the formation of cooperatives;

(d) The extension of technical and financial assistance, and other social services;

(e) The extension of assistance in processing and marketing;

(f) The generation of ancillary livelihood activities;chan robles virtual law library

(g) The regulation of the small-scale mining industry

with the view to encourage growth and productivity; and

(h) The efficient collection of government revenue.

Sec.  5. Declaration of People's Small-scale Mining Areas. —

The Board is hereby authorized to declare and set aside

people's small-scale mining areas in sites onshore

suitable for small-scale mining, subject to review by

the Secretary, immediately giving priority to areas

already occupied and actively mined by small-scale

miners before August 1, 1987: Provided, That such

areas are not considered as active mining areas:

Provided, further, That the minerals found therein

are technically and commercially suitable for small-scale

mining activities: Provided, finally, That the areas

are not covered by existing forest rights or reservations

and have not been declared as tourist or marine reserved,

parks and wildlife reservations, unless their status

as such is withdrawn by competent authority. 

.chan robles virtual law library

Sec.  6. Future People's Small-scale Mining Areas. —

The following lands, when suitable for small-scale mining,

may be declared by the Board as people's small scale mining areas:

(a) Public lands not subject to any existing right;

chan robles vi
rtual law library

(c)    Public lands covered by existing mining rights which

(d)     are not active mining areas; and 

(c) Private lands, subject to certain rights and conditions,

except those with substantial improvements or in bona fide

and regular use as a yard, stockyard, garden, plant nursery,

plantation, cemetery or burial site, or land situated within

one hundred meters (100 m.) from such cemetery or

burial site, water reservoir or a separate parcel of land

with an area of ten thousand square meters (10,000 sq. m.) or less.

Sec.  7. Ancestral Lands. — No ancestral land may be

declared as a people's small-scale mining area

without the prior consent of the cultural communities

concerned: Provided, That, if ancestral lands are declared

as people's small-scale mining areas, the members of the

cultural communities therein shall be given priority

in the awarding of small-scale mining contracts. 

.chan robles virtual law library

Sec.  8. Registration of Small-scale Miners. —

All persons undertaking small-scale mining

activities shall register as miners with the

Board and may organize themselves into

cooperatives in order to qualify for the awarding

of a people's small-scale mining contract.

Sec.  9. Award of People's Small-scale Mining Contracts. —

A people's small-scale mining contract may be awarded

by the Board to small-scale miners who have

voluntarily organized and have duly registered with

the appropriate government agency as an individual

miner or cooperative; Provided, That only one (1)

people's small-scale mining contract may be awarded

at any one time to a small-scale mining operations

within one (1) year from the date of award: Provided,

further, That priority shall be given or city where the small-scale

mining area is located.

Applications for a contract shall be subject to a reasonable

fee to be paid to the Department of Environment and Natural

Resources regional office having jurisdiction over the area.chan robles virtual law library

Sec.  10. Extent of Contract Area. — The Board shall determine

the reasonable size and shape of the contract area following

the meridional block system established under Presidential

Decree No. 463, as amended, otherwise known as the

Mineral Resources Development Decree of 1974, but

in no case shall the area exceed twenty hectares (20 has.)

per contractor and the depth or length of the tunnel or

adit not exceeding that recommended by the director

taking into account the following circumstances:

(a) Size of membership and capitalization of the cooperative;

(b) Size of mineralized area;

(c) Quantity of mineral deposits;

(d) Safety of miners;chan robles virtual law library

(e) Environmental impact and other considerations; and

(f) Other related circumstances.

Chromite Ore Description

Chromite High Grade Ore Classification of Chromite
IMA status:	Valid - first described prior to 1959 (pre-IMA) - "Grandfathered"
Strunz 8th edition ID:	4/B.03-20
Nickel-Strunz 10th (pending) edition ID:	4.BB.05 4 : OXIDES (Hydroxides, V[5,6] vanadates, arsenites, antimonites, bismuthites, sulfites, selenites, tellurites, iodates) B : Metal: Oxygen = 3:4 and similar B : With only medium-sized cations
Dana 8th edition ID:	7.2.3.3 7 : MULTIPLE OXIDES 2 : AB2X4
Hey's CIM Ref.:	7.14.12 7 : Oxides and Hydroxides 14 : Oxides of Cr
Occurrences of Chromite
Geological Setting:	As a cumulate mineral layer in ultramafic igneous rocks, in peridotites. As placer deposits. Common in meteorites except carbonaceous chondrites.
Physical Properties of Chromite
Lustre:	Metallic
Colour:	Black
Streak:	Brown
Hardness (Mohs):	5½
Hardness (Vickers):	VHN100=1278 - 1456 kg/mm2
Tenacity:	Brittle
Parting:	Parting may develop along {111}
Fracture:	Irregular/Uneven
Density (measured):	4.5 - 4.8 g/cm3
Density (calculated):	5.12 g/cm3
Crystallography of Chromite
Crystal System:	Isometric
Class (H-M):	m3m (4/m 3 2/m) - Hexoctahedral
Space Group:	Fd3m {F41/d 3 2/m}
Cell Parameters:	a = 8.344Å
Unit Cell Volume:	V 580.93 ų (Calculated from Unit Cell)
Z:	8
Morphology:	Octahedral crystals uncommon, modified by {001} at times. Massive, fine granular to compact.

Monthly Updates

Intertech Monthly Updates

Demand to return to the nickel market in 2010: The fallout from the financial crisis that afflicted the world economy has seen nickel prices fluctuate wildly.  LME prices peaked at just over US$52,000/t in May 2007, on the back of strong demand and low stocks, but had fallen by over 80% by the end of 2008, as demand collapsed.  By the fourth quarter of 2009, however, prices had recovered to US$18,500/t.

The fall in nickel prices has been largely due to a collapse in demand.  Data for the first nine-months for 2009 shows nickel consumption at the world level has declined by 9% year-on-year, as end-users aggressively cut inventories.  Output of nickel has also declined sharply.  For the first three quarters of 2009, nickel mine production fell by 18% year-on-year, while primary production was down by 6%.  Producers responded quickly to the fall in demand, with around a quarter of all production suspended during the first half of 2009.

While both demand and production of nickel declined in 2009, stocks at the LME built up steadily.  At the end of December 2009, official stocks at LME warehouses totalled in excess of 150,000t.  To put this into perspective, when nickel prices surged to above US$50,000/t, LME stocks totalled 4,700t.

Nickel demand driven by China

The nickel market overall has seen strong growth in demand.  For the period 2000 to 2006, when demand peaked, consumption at the world level increased at an annual average rate of 3.8%.  Although consumption increased across the world, China exhibited the largest growth.  Between 2000 and 2009, its domestic demand is estimated to have risen by an annual average rate of almost 25%.  This phenomenal growth has seen China become the world’s largest consumer of nickel.  In 1995 China accounted for a modest 4% of world consumption, increasing to almost 30% in 2008.

Demand for nickel is predominantly driven by stainless steel production, which accounts for around two-thirds of total nickel consumption.  Production of crude stainless steel began falling as early as the third quarter of 2007.  In 2008, output fell by 7% year-on-year, while the first three quarters of 2009 have seen production of crude stainless steel decline by around 15%, year-on-year.

The fall in production of stainless steel, however, has only taken place in developed economies.  Emerging markets such as China and India have seen domestic output rise.  The first three quarters of 2009, saw Chinese production rise by almost 20% year-on-year, while for the year, China is forecast to produce 8-9Mt.

At the world level, crude stainless steel production in 2009 is forecast to decline to around 25Mt.  However, 2010 is expected to see an increase in demand and production, as world GDP recovers.  Production of crude stainless steel is forecast to rise by around 8% in 2010.

Nickel prices to remain stable throughout 2010

Although global demand for nickel has fallen for three consecutive years, a recovery in the global economy should follow through to see consumption of increase in 2010.  Roskill forecasts nickel consumption will increase by around 7% in 2010.

The rise in demand for nickel in the coming years is primarily due to an increase in demand for stainless steel.  Stainless steel production, the largest end-use for nickel, is forecast to reach 27Mt in 2010 (an 8% increase year-on-year), and almost 30Mt in 2011.

As demand for nickel increases across the globe, production is likely to follow suit.  A market surplus of around 75,000t is forecast for 2010, as output of primary nickel increases to 1.4Mt.

Given the market surplus forecast to develop between 2010 and 2012, nickel prices are expected to be stable.  The annual average price in 2010 is forecast to around US$20,000/t, and expected to rise in both 2011 and 2012.  The average price between 2010 and 2012 is forecast at just over US$22,000/t.