Rationalizing Mining Operations at the Diwalwal Gold Rush Area, Monkayo, Compostela Valley

Rolando E. Peña and Conrado R. Miranda

Abstract

The Diwalwal deposit at Bgy. Mt. Diwata, Monkayo, Compostela Valley was discovered in 1983 by a Mansaka tribal chieftain. This sparked a gold rush in the area that saw the convergence of tens of thousands of fortune hunters, auxiliary service providers and their dependents. Such a situation have brought about pollution and siltation of adjacent river systems and downstream farmlands; mercury intoxication of workers and residents; fatalities and injuries due to landslides and tunnel cave-ins; killings and violence involving rival groups. In the decade following the discovery of the deposit, official records of the Central Bank indicate an average daily gold output of 25 kg, excluding those sold to private gold buyers.

The problems in the area are exacerbated by the rivalry among large scale mining companies and the legal tangles involving them, the small scale miners and government.

Government, on its part, tried to put some order into the illegal and anarchic operations of the small-scale miners. This effort of government includes regulating mining operations in scope (area and depth), forming inter-agency task groups, temporarily suspending mining operations and seeking assistance from the military. But these only served as stop gap measures and the regulations were observed more in the breach.

The breakthrough for government came in 2002 following a series of violent incidents involving rival groups that resulted in a number of fatalities. Government imposed a suspension of mining operations in August 2002. A rationalization plan was drawn up allowing small scale miners and mineral processors to continue operations through service contracts. In November, Proclamation No. 297 was issued by the President declaring 8,100 hectares in the Diwalwal Gold Rush Area as Mineral Reservation and Environmentally Critical Area which allows Direct State Utilization of the mineral resources therein. To realize this potential of the State to undertake mining operations, the President issued a Memorandum in April 2003 authorizing creation of the Natural Resources Mining Development Corporation (NRMDC) with DENR’s Natural Resources Development Corporation (NRDC) and PNOC-EDC as major equity partners. In June 2003, Executive Order No. 217 was issued by the President creating the National Task Force Diwalwal, a multi-agency body that seeks to address the various problems attendant to mining operations in Diwalwal.

With the entry of NRMDC into the picture and active intervention by the Task Force, efforts at rationalizing mining and addressing the problems in Diwalwal have produced encouraging results. Major accomplishments and programs of the Task Force include: 1) diminution of mercury pollution and siltation along Naboc River; 2) enforcement of environmental and mining laws and regulations and maintenance of peace and order and security through the deployment of a battalion of the Philippine Army; 3) regulation of small scale mining and processing through mine safety training and regular inspections of facilities; 4) ongoing program for relocation of households situated in high risk areas; 5) preliminary geological assessment of solid waste disposal site; 6) construction of interim tailings impoundment at Mabatas area to be used by small scale processors; 7) training for livelihood projects and provision by DSWD of seed capital for Self-Employment Assistance-Kaunlaran (SEA-K) beneficiaries.

For its part, NRMDC continues to undertake exploration activities within the active mine area and other sites within the mineral reservation. It has obtained a Free and Prior Informed Consent from the concerned Indigenous Peoples in the area covered by their CADT as well as the ECC for the gold rush area and exploration activities. NRMDC has obtained access to Victory Tunnel and is presently conducting drilling operations to determine the persistence of or at depth from the 600 masl level of Victory Tunnel. If the results meet expectations, we may see the operation of a world class gold mine by a government corporation in the near future.

Problems in the area still persist, but with concerted effort by government agencies, the Diwalwal monster may eventually be tamed.