On March 01, 2007, the Citinickel Mining and Development Corporation (CMDC) was granted two mining concessions in Palawan; one of them is the Pulot Sofronio mine, located in Barangay Pulot, nearby Sofronia Espanola town [1], covering an area of 1,408ha [2]. Palawan has a special law, the Strategic Environment Plan for Palawan Act RA 7611 that establishes a development framework in the province and should regulate economic activities, such as mining, in environmentally critical areas. Mining started in 2010, promising progress to the communities; but instead of progress, the mine brought large destruction to the island [3]. According to Queron, secretary of the local indigenous organization PKP, “Since 2010, the operation of Citinickel destroyed the environment, our livelihood, health, and culture [… ] because of this, we are being pushed deeper into poverty” [3]. |
Claimed to bring progress, the Pulot Citinickel mine has brought large environmental destruction to Palawan. Villagers and indigenous communities oppose mining projects in the area.
Description
Basic Data
| Name | Citinickel's Pulot Sofronio mine in Palawan, Philippines |
| Country | Philippines |
| Province | Souther Palawan |
| Site | Barangay Pulot, Sofronia Espanola Town |
| Accuracy of Location | HIGH local level |
Source of Conflict
| Type of Conflict (1st level) | Mineral Ores and Building Materials Extraction |
| Type of Conflict (2nd level) | Land acquisition conflicts Mineral ore exploration Tailings from mines Mineral processing |
| Specific Commodities | Land Nickel, Chromite Rare metals Iron ore |
Project Details and Actors
| Project Details | The Pulot nickel mine is one of two mining concessions that Citinickel holds in Palawan, approved by the MGB on 01.03.2007. The second mining site is the Toronto nickel mine, located in Narra, Palawan, around 80km from Sofronio Espanola town; see related conflicts. Citinickel holds in total mining concession over 2,176ha [1]. In 2011, Citinickel was reported to have invested 5.146 billion Philippine Pesos in their mining operations (around 1.16 billion USD) [10]. The mining concession in Pulot covers a land area of 1408 ha [2]. During 2011, around 1 million tons of nickel ore, produced at both mining sites, were shipped and target for 2012 was stated to be 4 million tons [8]. Shipped nickel ore has been of low grade (1%/ton) with 48% iron content [8]. As of March 31, 2014, the main shareholders (>5%) of Oriental Peninsula have been Citimax Group Inc. (33%), Golden Spin Realty, Inc. (29%), PCD Nominee Corp. Filipino (27%), PCD Nominee Corp. Non-Filipino (5%) and Billion Apex Development Ltd. (5%) [2]. In 2013, also King Crown Group Limited and Fuying Holdings Limited were reported to have invested in Oriental Peninsula [2]. According to reports released in 2013 by Oriental Peninsula [2], the PCD Nominee Corporation is a wholly-owned subsidiary of the Philippine Depository and Trust Corporation, Inc. (PDTC). Major capital players involved in the the PCD Nominee Corporation are the Philippine Stock Exchange; (31.75%), Bankers Association of the Philippines (31.75%), Financial Executives Institute of the Philippines (10%), Development Bank of the Philippines (10%), Investment House Association of the Philippines (6.5%), Social Security System (5%) and Citibank N.A. (5%). Major banks involved in the PDTC are Hongkong Shanghai Banking Corp. LTD (15.64%); and Deutsche Bank Manila (12.11%) The company has planned to construct a smelting plant in Palawan to process their nickel ores from their Palawan operations. Investment size for this was reported to amount to 10 million USD [2]. |
| Project Area (in hectares) | 1,408 |
| Level of Investment (in USD) | 1,160,000,000 (as of 2011 for all Citinickels mining operations in Palwan) |
| Type of Population | Rural |
| Potential Affected Population | unknown |
| Start Date | 01/03/2007 |
| Company Names or State Enterprises | Citinickel Mines and Development Corporation (CMDC) from Philippines - mining Oriental Peninsula Resources Group Inc. (ORE) (ORE) from Philippines - mining Citimax Group Inc. from Philippines - mining Golden Spin Realty, Inc. from Philippines - mining PCD Nominee Corporation from Philippines - investment Billion Apex Development Ltd. from Philippines - mining King Crown Group Limited from Hong Kong SAR, China - investment Fuying Holdings Limited from Hong Kong SAR, China - investment Philippine Depository and Trust Corporation, Inc. (PDTC) (PDTC) from Philippines |
| Relevant government actors | Mines and Geosciences Bureau (MGB), Republic of Philippines Department of Environment and Natural Resources (DENR) |
| International and Financial Institutions | The Philippine Stock Exchange Inc. (PSE) from Philippines Financial Executives Institute of the Philippines (FINEX) (FINEX) from Philippines Bankers Association of the Philippines from Philippines Development Bank of the Philippines from Philippines - banking, finance Investment House Association of the Philippines from Philippines Social Security System Philippines from Philippines Citibank Philippines from Philippines Hongkong Shanghai Banking Corp. LTD from Hong Kong SAR, China Deutsche Bank (DB) from Germany |
| Environmental justice organisations and other supporters | Indigenous organization Pinagtibukang Kaundang-undangan it Palaw’an (PKP); Alyansa Tigil Mina (ATM); Kalikasan-People’s Network for the Environment (Kalikasan PNE); Bigkis at Lakas ng Katutubo sa Timog Katagalugan (BALATIK); Advocates of Science & Technology for the People (AGHAM); Kalipunan ng Katutubong Mamamayan sa Pilipinas, Defend Patrimony Alliance; Task Force-Justice for Environment Defenders; Katribu Party-list and the Kalikasan Party-list, and others |
The Conflict and the Mobilization
| Intensity of Conflict (at highest level) | MEDIUM (street protests, visible mobilization) |
| When did the mobilization begin | In REACTION to the implementation (during construction or operation) |
| Groups Mobilizing | Farmers Indigenous groups or traditional communities Local ejos Local government/political parties Neighbours/citizens/communities Ethnically/racially discriminated groups Local scientists/professionals Religious groups Indigenous Palaw'an Fisher people |
| Forms of Mobilization | Community-based participative research (popular epidemiology studies, etc..) Creation of alternative reports/knowledge Development of a network/collective action Involvement of national and international NGOs Public campaigns Street protest/marches |
Impacts
| Environmental Impacts | Visible: Biodiversity loss (wildlife, agro-diversity), Loss of landscape/aesthetic degradation, Noise pollution, Soil contamination, Waste overflow, Surface water pollution / Decreasing water (physico-chemical, biological) quality, Groundwater pollution or depletion, Mine tailing spills, Deforestation and loss of vegetation cover Potential: Air pollution, Food insecurity (crop damage), Soil erosion |
| Health Impacts | Visible: Other environmental related diseases Potential: Mental problems including stress, depression and suicide, Health problems related to alcoholism, prostitution, Violence related health impacts (homicides, rape, etc..) |
| Other | Exposure to contaminated environmental resources |
| Socio-economic Impacts | Visible: Loss of livelihood, Loss of traditional knowledge/practices/cultures, Loss of landscape/sense of place Potential: Lack of work security, labour absenteeism, firings, unemployment, Social problems (alcoholism, prostitution, etc..), Violations of human rights, Militarization and increased police presence |
Outcome
| Project Status | In operation |
| Pathways for conflict outcome / response | Application of existing regulations Project temporarily suspended After a temporary suspension and a fine to be paid by the company, the project was allowed to continue. |
| Development of Alternatives | Local organisation PKP wants to stop mining in the areas. They have further joined countrywide calls to stop the Mining Act of 1995. |
| Do you consider this as a success? | No |
| Why? Explain briefly. | The project goes on. |
Sources and Materials
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Meta Information
| Contributor | A. Scheidel (ICTA-UAB) and Alyansa Tigil Mina (ATM) |
| Last update | 27/04/2015 |
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