HAPPY WEEKEND

Interesting: IPs on money terms with mining company
GINA DIZON

The acceptance of the indigenous peoples of Tuba, Benguet of a production sharing agreement with Philex Mines takes on a fresh twist on how indigenous people control their resources -- with royalty fees.

The agreement means continuous operation of the age-old mining firm based in Benguet for Philex Mines to persistently mine a 98- hectare territory in exchange for multi-million royalty fees. This begins with a P60 million in royalty fees for 2008 and 2009 which is computed on a monthly basis. The royalty fees shall be given yearly. A 100,000 financial assistance will be initially given upon execution of the agreement, news reports say.
Such a big amount of money and it seemingly promises to partially answer financial woes of the residents and respond to educational and economic upliftment of the people concerned.
Pragmatic as it presents, the mining company and the affected people are on talking terms with the mining company getting what it wants and the people getting their resources’ worth. The actual figures and partnership terms are transparent enough and financial
returns would remain to be seen.

The agreement is not only about finances, but also a conscious watch on the environmental effects of the mining operations itself. How regulated and how safe are these operations so as not to affect the environment and the health of the people themselves is a concern to watch at the same time.

Just how alert and concerned the people will be in safeguarding their own safety and go beyond the financial take is interesting to note. With the Indigenous Peoples Rights Act placing a legal foundation of indigenous peoples acting on their own interests and backed with the law’s provision for “prior informed consent,” the action of the IPs in Tuba is a contemporary example of dealing with a situation which is already there.

Age-old mining companies such as Philex Mines and Lepanto Mines have been conducting their mining operations for quite some time and giving pittances of donations to IPs and local governments at their own sweet will.

Employee-miners, most of them are indigenous peoples, have been consistently clamoring for just wages and just labor practices from these companies. Environmental attention as well have been a consistent demand among militant organizations and includes among other demands the non-expansion of operations due to environmental hazards which mining poses.

Now, it takes on a new twist as the indigenous peoples are now asking the money’s worth of their resources and which asking is answered in a parallel manner. With this, new production sharing agreements are seen to come between IPs and the mining companies in other mining areas.
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I am reminded of SMART company with its cell site in Sagada, Mountain Province which gives only P40,000 yearly rent to the indigenous village of Balugan for the use of their land for the relay tower. Forty thousand you ask me compared to the millions of money that the telecommunications company will get by using someone’s land is beggar’s money. Yet, laws seem to be elusive on how to exact the company’s taxes and other legal fees by using outside resources for its operations.

It is from this context to note that the bill filed the second time by Baguio City Rep. Mauricio Domogan directly appropriates taxes from companies operating in areas outside of their headquarters to concerned local government units.

Currently, the laws provide that the company will pay it taxes directly to the place where its principal address is found. Most big companies such as mining companies have their main addresses in Manila .

In the present set up, the companies pay directly to the national treasury. The Dept of Budget and Management appropriates the 40 percent share of the local government units to the LGUs. But this does not happen. It takes lobbying and pressure from local government units to still ask the DBM to allocate the law -provided share of the LGUs. As a remedy therefore, Domogan’s proposed bill provides for direct payment of taxes to be given to the LGUs concerned where the company operates in the LGU’s territory.

These taxes, if the proposed bill will be pproved will add more income to the community where the company operates aside from direct royalty fees which it pays to the affected peoples. With these new developments, things are bound to happen for the development of indigenous peoples communities, the Cordillera, especially.

This brings us to the lingering and seemingly difficult quest for regional autonomy. Events come to overtake this desperate move for Cordillera autonomy with actions already being done bilaterally. How will this autonomous government for the Cordillera make a difference?