Rapu Rapu polymetallic mine, Philippines

Supposed to be a showcase mine after the Philippine Mining Act of 1995, the Rapu Rapu polymetallic mine, located on Rapu Rapu Island in Southeastern Luzon, has turned an island paradise into a wasteland.


Description

In November, 1998, Australian mining company Lafayette Limited acquired interests in the polymetallic mining site, characterized by copper, gold, zinc and silver reserves. Permissions were granted by the Department of Environment and Natural Resources (DENR), in spite of absence of a free prior informed consent obtained by the company from local communities, among them the Taboy indigenous group [1;2]. Mining and processing started in April 2005, but was suspended six months later after two heavy cyanide laden spills were released into water bodies, causing the ecological death of rivers and fish stocks [1].

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Basic Data
NameRapu Rapu polymetallic mine, Philippines
CountryPhilippines
ProvinceProvince of Albay, Southeastern Luzon
Site Barangay Binosowan, Pagcolbon and Malobago; Rapu Rapu island
Accuracy of LocationHIGH local level
Source of Conflict
Type of Conflict (1st level)Mineral Ores and Building Materials Extraction
Type of Conflict (2nd level)Mineral ore exploration
Tailings from mines
Mineral processing
Specific CommoditiesSilver
Copper
Gold
Zinc
Project Details and Actors
Project DetailsRapu Rapu island has a size of 5,589 ha [1]. The Rapu-rapu polymetallic project covers 4,538.7955 ha [5].

In 2008, mine production data were forecasted with annual revenues of $350 million from yearly production of around 11,000 tons of copper and 13,000 tons of zinc [7].

Prior to the administration of Lafayette Limited Inc. (December 2007), the Rapu Rapu polymetallic mine was operated by RRMI - Rapu Rapu Minerals Inc. (mining), and RRPI - Rapu Rapu Processing Inc. (processing Inc.); both companies were subsidiary of Lafayette Phillipines Inc (LPI), owned by Lafayette Mining Ltd (74%) and Philco Resources (26%). Philco Resources is further owned by LG International and Korean Resources Crop (KORES). Also Rapu Rapu Holdings Inc (RRHI), owned largely by F&N Property Holdings Inc. held a share of RRMI [1].

After restructuration (2008) Lafayette Mining Ltd. Sold its shares to Philco Resources and Malaysian Smelting Corp. (MSC) [1].

An international consortium of banks financed Lafayette that invested in the mine, with an investment size amounting up to 268 million USD [1]. Among them was Australian ANZ Banking group as the most important financier; other involved banks were ABN AMRO BANK NV, Investec Bank Mauritius Limited, Standard Chartered First Bank (Korea) Limited; FA International Limited [1]. ANZ, ABN AMRO BANK and Standard Chartered First Bank are signatories of the Equator Principles, which should provide guidelines for responsible banking and investment [1].

Note that this is not the first mine on Rapu Rapu; already in the 1960s, a relatively small mine was operated by Filipino Hixbar Mining Company. Acidic run-offs from the site are still affecting the island [1].

Villages with direct impact of the mine were: Barangay Binosowan, Pagcolbon and Malobago. Indirect impact areas included Barangay Poblacion, Santa Barbara, Linao and Tinopan [1]. Around 14,000 people were reported to suffer negative livelihood impacts [5].
Project Area (in hectares)4,538
Level of Investment (in USD)loan size: 268,000,000
Type of PopulationRural
Potential Affected Population14,000
Start Date01/11/1998
Company Names or State EnterprisesPhilco Resources Limited from Republic of Korea - mining
LG Electronics International (LG) from Republic of Korea - technology
Rapu Rapu Minerals Inc. (RRMI) from Philippines - mining
Rapu Rapu Processing Inc. (RRPI) from Philippines - mining, processing
Lafayette Phillipines Inc. (LPI) (LPI) from Philippines - mining
Lafayette Mining Ltd. from Australia - mining
Korea Resources Corporation (KORES) from Republic of Korea - industry
F&N Property Holdings (F&N) from Philippines - property development
Malaysian Smelting Corp (MSC) (MSC) from Malaysia - metals, tin, smelting
Relevant government actorsDepartment of Environment and Natural Resources (DENR)
International and Financial InstitutionsANZ Bank group Australia (ANZ) from Australia - banking, finance
ABN Amro Bank (ABN AMRO) from Netherlands
Investec Bank (Mauritius) Limited from Mauritius - banking, finance
Standard Chartered First Bank (Korea) Limited from Republic of Korea - banking, finance
FA International Limited from United Kingdom
Environmental justice organisations and other supportersSave rapu rapu alliance; Kilusang Magbubukid ng Pilipinas (KMP); Sagib Isla Sagip Kapwa; Center for Environmental Concerns (CEC); Kalikasan People's Network; Eucumenical Bishops Forum (EBF); Catholic Bishop’s Conference of the Philippines (CBCP); Greenpeace; Oxfam Australia, and others.
The Conflict and the Mobilization
Intensity of Conflict (at highest level)HIGH (widespread, mass mobilization, violence, arrests, etc...)
When did the mobilization beginPREVENTIVE resistance (precautionary phase)
Groups MobilizingFarmers
Fishermen
Indigenous groups or traditional communities
International ejos
Local ejos
Neighbours/citizens/communities
Ethnically/racially discriminated groups
Local scientists/professionals
Religious groups
Indigenous Taboy
Forms of MobilizationCommunity-based participative research (popular epidemiology studies, etc..)
Creation of alternative reports/knowledge
Development of a network/collective action
Involvement of national and international NGOs
Lawsuits, court cases, judicial activism
Official complaint letters and petitions
Public campaigns
Street protest/marches
Boycotts of companies-products
Impacts
Environmental ImpactsVisible: Biodiversity loss (wildlife, agro-diversity), Loss of landscape/aesthetic degradation, Noise pollution, Soil contamination, Soil erosion, Waste overflow, Deforestation and loss of vegetation cover, Surface water pollution / Decreasing water (physico-chemical, biological) quality, Groundwater pollution or depletion, Reduced ecological / hydrological connectivity, Mine tailing spills
Potential: Air pollution, Large-scale disturbance of hydro and geological systems
Health ImpactsVisible: Mental problems including stress, depression and suicide
Potential: Violence related health impacts (homicides, rape, etc..) , Health problems related to alcoholism, prostitution, Occupational disease and accidents
Socio-economic ImpactsVisible: Displacement, Loss of livelihood, Loss of traditional knowledge/practices/cultures, Militarization and increased police presence, Violations of human rights, Land dispossession, Loss of landscape/sense of place
Potential: Increase in violence and crime, Social problems (alcoholism, prostitution, etc..)
Outcome
Project StatusStopped
Pathways for conflict outcome / responseCriminalization of activists
Migration/displacement
Repression
Strengthening of participation
Project temporarily suspended
Development of AlternativesThe central alternative defended by local opponents was to stop mining completely, which could not be achieved.
Do you consider this as a success?No
Why? Explain briefly.The reason why the mine was decommissioned was due to exhaustion of mineral reserves.
Sources and Materials
Legislations

Philippine Mining Act of 1995
[click to view]

Executive Order No. 79 (July 2012) Institutionalizing And Implementing Reforms In The Philippine Mining Sector Providing Policies And Guidelines To Ensure Environmental Protection And Responsible Mining In The Utilization Of Mineral Resources
[click to view]

The Indigenous Peoples’ Rights Act of 1997 (IPRA)
[click to view]

References

[1] OXFAM 2008. Mining Ombudsman case report: Rapu Rapu polymetallic mine. (accessed 24/03/2015)
[click to view]

[2] Mineral Policy Institute 2006. Backgrounder on the Rapu Rapu Mining Operation. (accessed 24/03/2015)
[click to view]

[3] Cathal Doyle, Clive Wicks and Frank Nally 2006. Mining in the Philippines Concerns and conflicts. Report of a Fact-Finding Trip to the Philippines. July-August 2006. (accessed 23/03/2015)
[click to view]

[8] DENR Assessment of the Rapu Rapu polymetallic mining project (accessed 24/03/2015)
[click to view]

Links

[4] Environmental Case filed against the Rapu Rapu Polymetallic Project, et.al (accessed 24/03/2015).
[click to view]

[5] Bulatlat.com online (11/10/12) : "From paradise to wasteland: Environmental destruction, rights violations abound in Bicol’s mining industry" (accessed 24/03/2015)
[click to view]

[6] Blog on the case, maintained by residents (accessed 24/03/2015)
[click to view]

[7] Thomson Reuters article (24/10/2008): "Rapu Rapu copper/zinc mine in Philippines allowed to resume production" (accessed 24/03/2015)
[click to view]

Media Links

Interview with local activist Antonio Casita, leader of the Sagip Isla -save the island- coalition
[click to view]

Other Documents

Contaminated rivers Source: http://globalvoicesonline.org/2015/03/13/look-what-large-scale-mining-did-to-these-four-beautiful-philippine-islands/
[click to view]

Toxic sites Source: http://saverapurapu.blogspot.com.es/
[click to view]

Protests organized by the church Source: http://www.banktrack.org/show/picpages/rapu_rapu_island_philippines_resistance
[click to view]

Boat protests by locals and greenpeace Source: www. greenpeace.org
[click to view]

Meta Information
ContributorA. Scheidel (ICTA-UAB) /arnim.scheidel "at" gmail.com
Last update28/03/2015
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