AS economic managers draft a recovery plan from the Covid-19 pandemic, mining comes up in conversations at times as it did in a forum that this newspaper participated in recently. Industry players make a compelling argument in support of mining, but their promises of handsome returns require scrutiny.

In making the case for mining, its advocates argue that people should not have to live in poverty when there are rich deposits below their feet for the taking. Their salvation from destitution only requires them to dig up their wealth. And as such, miners conclude that the policymakers should give them the green light to dig away.

Stories from mining communities tell a different story however. A handful of people do become wealthy, but many more are underpaid; often putting up with unfair labor practices and various forms of exploitation.

Take the case of eastern Indonesia, which is reportedly home to 22 percent of the world’s known nickel reserves. The workers there, employed by China-based companies, operate in unsafe working conditions that allegedly violate their labor rights. Workers also report high rates of industrial accidents and fear of reprisals for criticizing working conditions. Those mainland-based mining firms also employ informal day laborers from nearby villages who are paid under the table and denied some privileges and protections required by formal employment.

Trade union officials and nickel industry watchers in Indonesia report that those foreign firms are even known to violate international labor standards. At one Indonesian mine, the International Trade Union Confederation found that there were insufficient procedures in place to identify chemical hazards. Inadequate Indonesian-Chinese translation is often one of the major causes of workplace accidents and injuries at some mines.

In fairness to Indonesia, the Philippines has its own poor track record to worry about. Remember the disaster in Marinduque in 1996? Too long ago? What about the 2012 tailings spill at the Padcal mine in Benguet? That spotty history seems to explain the government’s reluctance to relax regulations.

Natural wealth

Mining firms are correct on two points. The Philippines is wealthy. And many Filipinos take this for granted, a mindset that traps many in poverty.

On the first point, the ground and all the things that grow on it are not worthless as the mining industry suggests. On the contrary, they can support many industries and create lucrative employment opportunities. One such industry is tourism, which contributed some 10 percent of gross domestic product in the Philippines before the pandemic.

Moreover, ecotourism has become even more popular with Covid-19 lingering. Because the health threat remains, people want to be outdoors but wish to avoid crowded places.

Second, the Philippines is blessed with fresh water not only from lakes and rivers, but also from aquifers. But they can be fragile. If damaged in mining mishaps, those resources are not easily rehabilitated. In egregious cases, the damage seems irreversible.

Obviously, contaminating the water source is a death sentence to communities that depend on it. Some areas where mining is suitable have only one place to get fresh water. Instead of appreciating and protecting those valuable resources, however, communities pollute them and expose them to risks.

Besides drinking, bodies of water can be tapped for fishing, agriculture and aquaculture and once more, ecotourism. More can be added to this list, but the point is many alternatives to the mining industry exist.

We do not condemn mining as a whole. That would be generalizing, not to mention unfair to a legitimate industry that employs people and generates wealth for many countries.

Mining firms do not deserve all the blame. Part of the problem may be the country’s lack of enforcement capabilities even in places where good laws exist. Many have said the Philippines has excellent mining laws, but corruption and red tape weaken the government’s ability to enforce them.

So, the choices that our economic managers and policymakers make should make sense. Not every opportunity is suitable for the Philippines; even those that have paid off elsewhere.

The policy choices we make should not only match our strengths, but also our limitations.

Source: The Manila Times