The Philippines is a mineral-rich country. With this, it is but logical for mining to become one of the economic sources of the country and for many Filipinos to be engaged in it. Our ancestors have been mining before the Spanish colonization. Historically, mining has been a major and a significant contributor to the country’s economy, despite of the decline of the industry’s mineral production in the late 1990’s. Mining in the Philippines can be classified into large-scale and small-scale. Large-scale mining is highly mechanized and uses heavy equipment. It produces sufficient commercial quantities to satisfy the requirements of the export market and large industries on a regular basis and therefore requires mobilization of substantial capital (Padilla, 1997). At present, it dominates the mining industry in terms of production, revenues and legal privileges. Yet, small-scale mining undeniably remains a significant sector in the mining industry, especially with the closure of many large-scale mining operations starting in the 1990s. Such significance owes mainly to its economic contribution that comes with the large number of people involved in the industry. Unfortunately, only few studies have been devoted to it, compared to the wealth of literature on large-scale mining. Because of this, its overall aspects have yet to be fully understood by many. Thus, this paper generally attempts to study the current state of small-scale mining in the Philippines in the context of our overall national development. Note: This paper was written and researched for AGHAM by Erika M. Rey and Ricarido M. Saturay Jr. on 2005. It is being republished due to requests of communities hosting small scale mining activities. For questions, comments and suggestions, please contact the Agham secretariat at agham.national@gmail.com.

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Small Scale Mining in the Philippines:
Towards Genuine National Development
I. Introduction
The Philippines is a mineral-rich country. With this, it is but logical for mining to become one of
the economic sources of the country and for many Filipinos to be engaged in it. Our ancestors
have been mining before the Spanish colonization. Historically, mining has been a major and a
significant contributor to the country’s economy, despite of the decline of the industry’s mineral
production in the late 1990’s.
Mining in the Philippines can be classified into large-scale and small-scale. Large-scale mining
is highly mechanized and uses heavy equipment. It produces sufficient commercial quantities to
satisfy the requirements of the export market and large industries on a regular basis and
therefore requires mobilization of substantial capital (Padilla, 1997). At present, it dominates the
mining industry in terms of production, revenues and legal privileges.
Yet, small-scale mining undeniably remains a significant sector in the mining industry, especially
with the closure of many large-scale mining operations starting in the 1990s. Such significance
owes mainly to its economic contribution that comes with the large number of people involved in
the industry. Unfortunately, only few studies have been devoted to it, compared to the wealth of
literature on large-scale mining. Because of this, its overall aspects have yet to be fully
understood by many.
Thus, this paper generally attempts to study the current state of small-scale mining in the
Philippines in the context of our overall national development. In particular, it aims to:
1. establish a suitable working definition of small-scale mining in the Philippine context for
the purpose of this discussion;
2. know and understand the present state of the small-scale mining by looking at the
following:
a. existing technologies employed by small-scale miners;
b. economic significance of small-scale mining to the country;
c. socio-economic set-up of the small-scale mining industry;
d. policies on small-scale mining and their various implications; and
e. environmental and the health issues involved;
3. provide an analysis based on the framework of mining and national industrialization; and
4. provide recommendations on how small-scale mining should be developed.
The research was done, mainly, by reviewing existing literature on small-scale mining. However,
as mentioned earlier, literature on the topic was scarce. To add, most of these were on the
technical aspects of small-scale mining. Those tackling topics such as the socio-economic and
cultural aspects, were even more limited.
Note: This paper was written and researched for AGHAM by Erika M. Rey and Ricarido M. Saturay Jr. on
2005. It is being republished due to requests of communities hosting small scale mining activities. For
questions, comments and suggestions, please contact the Agham secretariat at agham.national@gmail.com.

2. 2
Such scarcity may be due to the difficulty in documenting the industry because many small-scale
miners are not registered with the government, making it hard to obtain accurate statistical
figures. It is also hard for some researchers to obtain the miners’ trusts in conducting their
researches.
Sources are also mostly case studies of mining communities mainly from the Cordillera Region.
It should also be noted that most of the encountered literature were on small scale gold mining.
Such limitations posed some difficulty in coming up with generalizations for some aspects of the
industry.
The discussion would proceed as follows: Part II – Section A examines the different bases of
definition and the legal definitions of small-scale mining in the Philippines. At the same time, the
section establishes the working definition for the paper. Section B looks at and provides data on
the economic significance of small-scale mining in the Philippines, particularly on its contribution
to the country’s economy and its significance as a livelihood source for Filipinos. In Section C,
the mining technologies employed by small-scale miners are outlined in order for the readers to
have an idea on technological level and productive capacity of the small-scale mining industry.
The bulk of the discussion is focused on the socio-economic condition of the small- scale mining
industry, found in Section D. Here, the social and cultural differences of traditional and gold-rush
small-scale miners are elaborated. It also peeks into the social and economic organization of the
industry, looking at the various stakeholders in it. The relationship between the small-scale
miners and the large-scale mining corporations are also studied. Section E dwells on the policies
mainly covering small-scale mining in the country and their implications. The last section of Part
II, Section D, looks at the environmental and health impacts of small-scale mining. Part III
concludes the paper with the analysis of small-scale mining in the context of the national
development of the country. It also provides policy recommendations on how small- scale mining
should be developed.
II. Small-scale Mining in the Philippines
A. What is small-scale mining?
There are actually many definitions of small-scale mining operations. According to Argall, these
may be based on the following (qtd. in Berger 2-3):
 number of people employed (e.g., more than 25 persons – Philippines);
 size of concession or lease (e.g., less than 1000 hectares for metals –Peru);
 size of reserves(e.g., less than 1M cubic yards for a particular grade of placers);
 productive capacity(e.g., less than 100 tons per day);
 productivity (e.g., up to 50 tons per person per day);
 gross annual income (e.g., less than $900,000 – Mexico);
 degree of capitalization or mechanization (e.g., less than $160,000 – Mexico);
 continuity of operation (e.g., seasonal);
 requirements of mine safety legislation (UNIDO); or
 the UN 1972 definition (any single-unit mining operation having an annual
production of unprocessed minerals of 50,000 metric tons or less, as measured
at the entrance of the mine).

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The UN in 1972 has also pointed some general characteristics of small-scale mining (qtd. In
Berger 4-5), many of which are actually reflected by the country’s small-scale mining:
 involves “artisanal mining”- the direct application of human energy (digging,
breaking, panning, sorting, carrying), which can even exceed the production on
a national scale of modern mechanical operations
 limited application of modern concepts and technology
 generally require surface or near-surface deposits, relatively little waste or
overburden relatively simple metallurgy
 relatively easy access
 individual or single family operation
 has leasing or tributing arrangements for sharing production between workers
and mine workers
 involves joint ventures and cooperatives
 Distribution and sales commonly involve middlemen to enter world markets local
processing and ‘consumption’ of industrial minerals
 absence of ‘economies of scale’ and transnational corporations
With these varied bases, the definition of small-scale mining, especially for legal purposes, may
be different for each country. R.A. 7076 or the “People’s Small-scale Mining Act of 1991” defines
small-scale mining as one that relies on labor using simple implements and methods and do not
use explosives or heavy mining equipment. In the Philippines, a more detailed legal definition of
small-scale mining can be found in Section 1 of P.D. 1899, which was created during the Marcos
Administration:
“Small-scale mining refers to any single unit mining operation having an
annual production of not more than 50,000 metric tons of ore and satisfying
the following requisites:
1. The working is artisanal, either open cast or shallow underground
mining, without the use of sophisticated mining equipment;
2. Minimal investment on infrastructures and processing plant;
3. Heavy reliance on manual labor; and
4. Owned, managed or controlled by an individual or entity qualified
under existing mining laws, rules and regulations.”
The authors would have wanted to give a detailed and technical definition of small-scale mining
but chose not to because of the various particularities that still need to be considered. For
instance, the use of explosives in some gold-rush mining areas (i.e. Diwalwal, Davao del Sur)
(Haygood 3), are not considered by Philippine legal definitions as small-scale mining, even if
these still possess the characteristics of small-scale miners. Unregistered small-scale miners are
also not considered by the law as small-scale miners even if majority of the miners are not
registered with the government. Many definitions define small-scale production as not being
more than 50 metric tons. On the other hand, much of the literature used did not state the
production of their subjects which they consider as small-scale miners.
For the above-stated reasons, the authors would be using a more general definition of small-
scale mining for the purpose of this paper. Small-scale mining would be defined as one that
mainly relies on manual labor and uses simple implements and methods. In order to differentiate
small- scale miners from large-scale mining employees in some gold-rush areas like Diwalwal,
wherein big time financiers contract out small-scale mining cooperatives, we shall define small-
scale miners as those who receive shares of the produce (in the form of ores or their monetary
equivalent), instead of regular wages.

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B. Economic significance of small-scale mining
Small-scale mining has proven itself as a significant contributor to the country’s economy, in
terms of the monetary values and in terms of the livelihood it creates.
From 1998-2002, especially with the decline of large-scale mineral production, both in metallic
and non-metallic, the small-scale sector has somehow been the “saving grace” of the mining
industry (Table 1). It has registered an average percent contribution of 28.7% in the total gross
production value. This does not include the production made by informal small- scale miners,
whose extracted ores are sold to the black market and unaccounted by the Central Bank. By
2001, it has surpassed the gross production value made by large-scale metallic mining and by
2002, has already surpassed both large-scale metallic and non-metallic gross production value.
The 11.6% growth on the gold mining output in 2003 was even partially credited to the higher
production from small-scale miners (“Mining and” 8).
Listed below are other relevant information on the small scale mining’s economic contribution:
 contribution to annual national gold output (1993-1997): at least 45% (figure may still be
understated by as much as 50%) (Tujan and Guzman 142)
 share to the national gold output (1994): 12,372 KG or 45.72% (accounted for 10-
 20% of the world mineral production) (Haygood 4-5)
 total purchases of the Central Bank from small-scale sources (CY 2000): 21,040 KG (58%
of total gold production) (Mines, “Industry Profile”)
 average small-scale mining contribution in gold production (1991 to 2000) : 13,380
 KG (Mines, “Industry Profile”)
 purchased gold from Diwalwal by Central Bank
Table 1 Gross Production Value in Mining (modified from Mines, “Industry Statistics”)
Year
Gross Production Value in Mining (In Billion Pesos)
%Share of Small- scale
Mining GPV to Total GPVMetallic Non-metallic Small-scale Total
1998 9.0 20.7 7.6 37.3 20.4%
1999 7.6 17.3 6.0 30.9 19.4%
2000 9.2 13.5 8.3 31.0 26.8%
2001 7.7 10.9 10.0 28.6 35.0%
2002+ 6.6 12.1 14.3 33.0 43.3%
Total 40.1 74.5 46.2 160.8 28.7%

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 2000: P2.95 B, 35% of country’s gold from small-scale miners (Conde and Gonzales)
 1985-1998: P36B (Conde and Gonzales, “Gov’t”)
 1991-2001: P 23B (Tujan and Guzman 145)
 Total government share from Diwalwal gold produce since the November 2002
government take-over (as of July 14, 2003): 38.899 KG with an est. value of P21.659 M
(Mines, “Updates”).
Graph 1 shows a comparison of the gold production of small-scale miners who sold their gold to
the Central Bank (Baguio) and to various gold-buying stations in Baguio and the production of
two of the large-scale gold miners, Lepanto Consolidated Mining Company and Philex Mining
Corporation. This shows that the produce of small-scale miners are not very far behind that of a
large-scale corporation and could even surpass the latter’s production.
To many Filipinos, small-scale mining truly as a primary or an alternatives livelihood source. As of
1996, small-scale mining subsists around 200,000 to 500,000 mine workers (Haygood 4), who
comprise 0.74% to 1.8% of the country’s workforce (if total employment figure for year 1996 is
used). According to Bugnosen, based on this figure, it is estimated that the sector supports at
least one million of the country’s population (3). Lanticse, et al., estimates that 100,000
individuals are directly or indirectly involved in small-scale gold mining operations (17). During the
80’s, the Philippine Mines and Geosciences Bureau (MGB) estimated the number of small- scale
miners to have gone over 500,000 (“Highlights”). At the peak of mining activities in 1985, around
80,000 people were in Diwalwal, engaged in mining and trading operations. At present, an
estimated number of 40,000 Diwalwal miners are left, Helica (Conde). It is also estimated that the
small-scale mining sector generates at least 20,000 formal or informal small enterprises and
businesses (Bugnosen 3).
Based on the Directory of Philippine Producing Mines and Quarries in 1996, there are 28 small-
scale mining cooperatives for gold and silver, 17 for chromite and three for manganese. The
number of small-scale non-metallic producers was not specified. (Tujan and Guzman, 42). These
small-scale mining groups consist principally of gold and chromite producers, both from the
formal and informal sectors (Mines, “Industry Profile”). According to Tujan and Guzman, these
numbers show the role of small-scale mining as a traditional people’s alternative source of
livelihood and not a ‘trickled-down” benefit of large-scale mining (146).
Graph 1 Gold production by source in 2002. (Kaninteng 54)
(A) Various small-scale miners, Source: Central Bank – Baguio
(B) Small-scale miners, Source: 50 Buying stations based in Baguio
(C) Lepanto Consolidated Mining Company, Source: MGB – CAR
(D) Philex Mining Corporation, Source: MGB - CAR

6. 6
The government, through the MGB estimates that there are at least 37 provinces in the country
where small-scale mining is being conducted (“Highlights”). According to Lopez, some of these
places are: Benguet; Labo, Camarines Norte; Llorente, Eastern Samar; Lakewood, Zamboanga
del Sur; Diwalwal, Monkayo, Boringot, Pantukan and Compostela, Davao del Norte; and
Kalapagan and Tagobo, Davao del Sur. About half of these miners are in the five gold-rush areas
of Davao del Norte. ( qtd. in Tujan and Guzman 142). In Benguet, the approximate total area of
small-scale mining is 900 hectares but due to the lack of information on the informal small-scale
miners, a more precise estimate could not be given (Baluda 13).
At present, the possibility of getting the exact number of small-scale miners in the Philippines is
quite nil because most of the miners are not registered with the government. Besides, mining is a
clan activity for traditional mining communities wherein even children had their share of work.
However, ore geology can be used as clues to where small-scale mining operations are taking
place within a district (Maglambayan and Murao 4).
With all these data, the significance of the small-scale mining industry in the economy is
undeniable. The large amount of production and the number of people involved affirm our
country’s potential to develop our own mineral industry.
C. Small-scale mining technologies in the country (for traditional and gold-rush small-scale
miners)
Gold is extracted by small scale miners mostly from veins and placer deposits. Veins form when
hot fluids from beneath the earth’s surface carrying dissolved minerals crystallize along cracks in
bodies of rocks. Gold may also be concentrated downstream of a highly mineralized area, as
placer deposits in stream and floodplain sediments.
Rocks that are mined consist of ore and gangue. Ores contain the desired metals and are thus
targeted for recovery. Gangue, on the other hand, is valueless and is therefore disposed as
tailings. The principal ore mineral of gold is native (elemental) gold.
Small-scale mining involves the search for mineral-rich rock bodies, and the extraction,
concentration and refining of the ores. Most of the knowledge of the above-mentioned processes
are usually handed down from generation to generation through oral traditions and actual
participation in the activity.
1. Mineral Exploration
Unlike large scale mining corporations, which employ various sophisticated methods such
as magnetic, electrical, gravimetric and seismic methods in mineral exploration, small scale
miners generally use their indigenous knowledge of mineral recognition. Prospecting for
gold is done by looking for and following exposed portions of gold-bearing veins,
examination of stream sediments and/or prospecting upstream from an area where gold is
present. For practicality, mine sites are usually located within, near or downstream of the
sites of large scale mining or areas of known mineralization. However, small-scale mining
methods are not always precise. In Tuba, Benguet for example, a miscalculated extension
of a gold vein resulted to three years of tunneling in a drift now 160m long in waste rock
(Maglambayan and Murao 4-5). Sampling methods used to assess the concentration of
ores are mainly visual.

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2. Extraction
2.1 Vein (Lode) Deposits
Vein or lode deposits are mined underground through pocket-sized adits or tunnels
(hence, the term “pocket miners”) or through shallow surface excavations (Baluda 13).
Mines are developed by tunnels that directly follow the veins. If it is not possible,
crosscuts are constructed where veins could be intercepted at short distances. Tunnels
are kept small for economic reasons and to avoid timbering (Bautista 13). Sometimes,
a stream may be used to remove overlying rocks from a vein. A dam is constructed
along a stream to form a reservoir. When the reservoir is full, water is released to tear
away the overburden from the vein (Padilla, Indigenous 36). Miners rely on the natural
ventilation but sometimes hand- or gas-operated blowers are used. Tools are usually
small and manually operated which include picks, shovels, moils, chisels, pinch bars,
sledge hammers, pulleys, ropes, carbide lamps, miner’s lamps, sample picks, sample
pans, water pumps and siphons (Bautista 12). Ores are manually hauled using sacks,
trackless mine cars and/or wheel barrows. In Acupan, Benguet, a rudimentary lift
system moved by hand or motorized pulleys is being used (Cabria et al. 28). Although
the government does not allow the use of explosives, some miners still use them in
making the tunnels.
2.2 Placer Deposits
Placer deposits are extracted from sediments within or downstream of known gold
deposits, gold mines and tailings ponds by panning (hence, the term gold panners) or
sluicing. Caballero describes a particular method of the Kankanaeys of Batuang
wherein rock-walled channels with flood gates are constructed along a stream. This
area, where the streamflow can be easily controlled, is mined by separating and
removing river sediments such as large rocks, gravel and sand. Shovels, crowbars and
various improvised sieves of different sizes are used. This process of sediment removal
goes on until a layer of fine sand containing the gold is left. Sluice boxes are installed
at the end of the channels to catch the mixture of gold and other minerals (87-89)
3. Concentration and Refining
Materials extracted from the lode and placer deposits are not pure gold. As mentioned
earlier, they are usually a combination of ore minerals and gangue. To extract the metal,
these materials should undergo the process of concentration and refining.
Concentration may be classified into two types: physical and chemical. Physical
concentration involves the physical separation of ores from the gangue whereas chemical
concentration breaks down the metallic mineral to get rid of other elements combined with
it (Mckinstry 566). Because gold ore is mainly native or elemental gold, meaning it is not
combined with other elements as a compound, physical concentration is enough to obtain
the gold. However, some chemical processes like mercury amalgamation and cyanide
leaching are usually employed for large productions.
The products of concentration are not necessarily free from impurities, thus the need to
undergo refining for marketability. This process may involve remelting or some wet
chemical processes (McKinstry 567).
3.1 Handpicking
This is a process of manual sorting and resorting, where gangue is discarded and
valuable minerals are collected. According to Mckinstry, handpicking is often the
cheapest method of separating ore from waste at coarse sizes (569). This is done at

8. 8
the mine site before the ores are taken to the miner’s residences where ore processing
is done (Lanticse et al 18). The women and children who do the sorting have very keen
eyes for picking ores of good value (Padilla, Indigenous 47).
3.2 Milling
Mined ores from lode deposits are first crushed into smaller pieces using sledge
hammers and sometimes, small jaw crushers (Bautista 14). In Acupan, the rate of
crushing per person ranges from 35 kg of ore per day to about 35 kg of ore per week
depending on the hardness of the mined vein (Cabria et al. 28). The ores are then
crushed and ground to finer pieces using various stone tools. Manual, water-run, diesel
or electric ball mills are used for high grade ores (Bautista 14). Although such machines
are available, some problems related to the mill’s usage are encountered. In Ansagan,
Tuba, Benguet, there are idle ball mills due to lack of water to drive the mills
(Maglambayan and Murao 5).
3.3 Gravity method
This method of concentration includes the use of sluice boxes and pans. The principle
of this method is that gold and other gold-bearing particles tend to sink in water while
mud and other lighter sediments remain suspended in the liquid. Caballero outlines the
Kankanaey’s methods of processing ores: After the ores are crushed and ground, they
are collected in sluice boxes to trap the coarser gold fragments. The materials that are
washed out from the sluice box comprise the sluice tailings. The ones that are retained
are the sluice concentrates. These concentrates undergo panning to further separate
the gold from the non-gold particles. The panning concentrate is again ground and
panned to increase the gold concentration. The sluice tailings are collected to be
processed again later or to be sold to large commercial mines. Panning tailings are not
sold (124-131).
3.4 Magnetic method
Magnetite sand, an ore of iron, usually comprises the non-gold particles of the panning
concentrate. Since gold is non-magnetic, the iron ore is separated by means of a
magnet.
3.5 Mercury (Hg) Amalgamation
Amalgamation is a cheap and simple process suited for the recovery of fairly coarse
gold particles (McKinstry 574). Mercury holds, partly absorbs and physically separates
gold from gangue and other sulfide minerals. Extracting the gold from the mercury is
done by heating the amalgam in an earthenware crucible until mercury vaporizes. In
Balatok, Benguet, mercury is added to the panning concentrate and is panned to
separate the gold-mercury amalgam from the other minerals (Lanticse et al. 19).
Mercury may also be introduced and mixed with coarse ore inside the ball mill,
reducing the mercury into very fine droplets that readily float in water. This is a practice
in Paracale-Gumaos (Lanticse et al. 20).
3.6 Cyanide leaching
Cyanide dissolves the gold in the ore, producing a “pregnant” (gold-rich) solution. The
gold is precipitated by adding zinc or aluminum dust/shavings to the solution (McKinstry
575-576). The carbon-in-pulp (CIP) and carbon-in-leach (CIL) enhances the cyanide
method by the use of activated carbon. Several mines in Acupan and Antamok, Itogon,
Benguet use cyanide leaching in their operation (Cabria et al. 28-29). But because
these methods are capital-intensive, only large-scale operators can afford to adopt
these technologies (Lanticse et al 17).

9. 9
3.7 Refining
Borax is added to the final panning concentrate and the mixture is put in an
earthenware crucible. The mixture is covered with charcoal and is heated over an open
furnace. The end product is a marketable gold bead (Caballero 131-132).
Gold Recovery
Most of the gold in the ores are wasted with the mine tailings because of the inefficiency of the
technology employed (Haygood 6). Cabria et al. reports that two grams of gold could be
obtained from four sacks of ore weighing around 35 kilograms (29). Clemente and Lanticse
reports that every 45-55 kilograms of ore (with concentration of 220g/t) will yield a button
containing three to five grams of gold, representing recovery of around 27% (10).
Traditional Methods vs. Gold-rush Methods
Traditional mining mainly employs physical methods of ore concentration (Caballero 117). Of the
literatures used for this paper, none provided information on whether the traditional miners are
now using significant amounts of chemicals for ore processing. Gold-rush mining, on the other
hand is well known for its use of mercury and cyanide.
E. Socio-economic set-up of small-scale mining communities: the particularities of traditional
and gold-rush miners
Many literature often mention small-scale miners as either being traditional or gold-rush. While
the technical classification of small-scale mining is based on the mining technologies used, it is
quite important to understand the particularities of the two groups. The said particularities could
mainly be attributed to how these groups developed. Although both may often use different
mining technologies, the said classification is more of economic, social and cultural in nature.
Therefore, to understand this grouping is to understand the socio-economic and cultural set-up
Table 2. Traditional vs. Gold-rush Small-scale Mining PracticesTraditional
small-scale miningTRADITIONAL GOLDRUSH
1. A starting ritual is necessary 1. Mining starts without any starting rituals.
2. Mining is led by the head of a family, and family
members, as well as people outside the family,
help in the mining. The head of the family provides
the other miners all the basics that will be needed,
including food.
2. Mining can be done by any person. This person
provides all the things needed by the group,
including the food.
3. Production sharing is based on four shares for the
head of the family and one share for his co-
workers.
3. Production sharing is based on four shares for the
operator or leadman while each of his co-workers
receive one share.
4. Communal system of ore production sharing. 4. There is no practice of communal sharing of ore
production.
5. When mining is done, small-scale miners observe
some rituals and practices inside the tunnels.
5. No prohibition in food to be eaten in the mining
areas. Festivities do not affect the working
schedules.
6. If the volume of ore is large, and manual crushing
becomes difficult, ball mills are used. The first
units were run by water. Now, electric motors are
used. Gold is concentrated solely by mechanical
methods.
6. Miners use ball mills to grind ore. Gold processing
includes the use of mercury, cyanide and
sulphuric acid.

10. 10
of mining communities that may fall to either one of the groups. These characteristics will be
discussed in this part of the paper.
It is important to note however, that many of the characteristics that would be discussed,
especially those of traditional communities, contain general and/or stereotypical characteristics.
It should be remembered that like any other community, small-scale mining communities are
ever-changing. The proceeding discussion also would not elaborate on the two group’s
technological differences. The authors deem it impractical to focus on the topic since traditional
small-scale miners do not use purely traditional technologies anymore. This is believed to be
due to the introduction of new technologies and the changes in the value system of the
community members. Thus, some overlapping on the characteristics of the two groups also
happen, especially regarding the technologies they employ.
Liyo gives a simple definition of the two. For her, traditional small-scale miners carry out mining
as part of their traditional culture, while gold-rush miners do not. She elaborates on their
differences in Table 2 (56). It should be noted though that the descriptions made for the
traditional small-scale miners are based on small-scale mining communities in Benguet.:
1. Traditional Small Scale Mining
Traditional mining is evident in mining communities of some of our indigenous peoples, like
the Kankana-ey and Ibaloy communities of Benguet who have been mining for the past 400
years (Liyo 55). Their mining methods are unique and have been handed down for
generations. Such long engagement has made mining a significant element in molding
traditional mining communities’ systems of beliefs, superstitions, traditions, rituals, economic
activities and social organization.
To understand traditional small-scale miners, it is important to understand their concept of
property. Indigenous peoples view their ancestral lands as communal properties and so with
the resources found in them. For the Kankana-eys miners in Benguet, their god, Kabunian,
and the anitos (spirits and ancestors) ultimately own the resources (Caballero 59).
Padilla affirms that mining is very much a community affair and access to resources granted
to community members are based on customary laws. In some communities, claims are
granted to clans, such as in Mainit, Bontoc where only clan members could have access to
the gold in the mountains or streams. Non-clan members could pan gold in water systems
outside clan territory (Indigenous 35). Caballero tells that for the Kankanaeys of Benguet, a
mining claim has corporate kin group features in that a group of elders own and manage a
claim. These traditional management practices are kept even if some of the traditional claim
owners have registered their claim legally since the American Period (59). Other individuals
may acquire temporary use rights by affiliating themselves with the claim owners (60).
Having a use right means that the miner has a right to use a mining claim and may own the
gold or ore that he/she has dug. However, once he/she abandons a mine, the effectivity of
the use right stops.
According to Padilla, some communities, on the other hand, regard a portion of rich ore-
bearing gold vein as a totally communal property. They work alternately as a group and
trusted each other. Each one receives an equal share of produce (Indigenous 44). Wiber, in
her study of the Ibalois of Kabayan, Benguet, said that the group considers lode mines as
individually-owned while placer mines as public property. She also points out that mining
could also be a source of conflict, even in a traditional mining community. She notes that
people could not keep tunnel locations hidden from fellow community members and many
people considered the known mine locations to be communal mines (qtd. in Caballero 84).

11. 11
Traditional communities also have their own intra- and inter-community sharing mechanisms
ensuring the subsistence of all community members. This acts as a coping mechanism for
the inherent uncertainties and risks of mining. It allows miners who found minimal gold or
elders who are unable to work, to have a share of ore, concentrate or tailings, on the
condition that they will do the same once luck turns to their side. Mostly, the elderly and other
community members with high esteem are prioritized in this sharing. This practice is so
ingrained in their culture, that they have already built spiritual justifications for it, which at the
same time, fosters this practice. For instance, the Kankanaeys believe that since the anitos
“shared their gold and natural resources with the living, and made the lives of these
prosperous and healthy, so too must the living share it with the rest of the
community”(Caballero 172). They also believe that they will perish in their search of gold if
they do not follow their god, Kabunian’s order to practice their sharing practices (Domalsin
52).
Kankanaey traditional small-scale miners believe that gold will not run out as long as it is
mined the right way. But as Caballero puts it, mining the right way, for traditional miners, is
not just a matter of technological and mechanical methods, but includes their social and ritual
subsystem (169). Therefore, rituals and practices are inherent parts of traditional small-scale
miners’ mining activities.
However, through time, the reliance in superstitious beliefs have been gradually diminishing.
Padilla states that for some Benguet traditional miners, majority of the rituals and
superstitious beliefs have been taken for granted. With the availability of modern
technologies which render mining easier, miners, especially of the new generation, have
nothing in mind but to extract as much gold as they could (Indigenous 60). The elders
believe that many changes in beliefs and attitudes of the new generation of miners were
caused by the introduction of Christianity, making the miners view gold as a commodity.
Since mining is very much a community activity, each has their own share of work. Men are
more involved in the heavy work such as creating tunnels and digging or excavating ores
while the women and children are more involved in carrying ores and processing them
because they are perceived to be weaker than men (Padilla, Indigenous 43). However, with
the changing of the times, both women and children are already allowed to help out in the
excavation if they wish. But in general, both are still assigned with the ore processing (60).
Also, according to Caballero, the women have an equal position with men in terms of making
decisions (59).
The Role of Financiers in a Traditional Setting
A financier may also exist in traditional mining. This was exemplified by the Kankanaeys,
who call the financier a supplier. The supplier finances the expenses, which include the
supplies for mining and food and at the same time, owns one or more mining tunnels
(Caballero 102). However, it should be noted that in contrast with the financier in a gold-rush
mining setting, the financier in a traditional setting also participates in the mining activity and
the person he/she takes to work with him are usually chosen based on kinship.
Caballero states that workers are paid on a mutually-agreed upon sharing scheme. The
financier usually gets a bigger share compared to his/her co-workers to reimburse his/her
expenses. In some cases, the financier may also first deduct his/her expenses before the
remaining money is shared equally by the workers and the financier (102).

12. 12
2. Gold-rush small-scale mining
The gold-rush type of mining is different from the traditional type in many ways. According to
Bacani, gold panning became a major activity in the 1930’s presumably because of the
introduction of modern mining and beneficiation techniques by the Americans (qtd. in Tujan
and Guzman 146). In the early 1960s, gold panning evolved into small-scale mining when
panners organized themselves into associations and cooperatives, the most probable
reaction to the threat of large-scale mining (Tujan and Guzman 146). Small-scale mining
became widespread in some Asian countries during the 1980s (Liyo 55). In the Philippines,
gold panning made a dramatic comeback in the late 1970s and the 1980s in reaction to the
comeback of mineral production in general (Tujan and Guzman 146). Again according to
Bacani, the gold rush started simultaneously in the Mountain Province, Bicol, Masbate and
Davao (qtd. in Tujan and Guzman 146).
The gold-rush type of mining is done by individuals who surged to a mineral-rich area to
mine, after being attracted by the lucrative character of gold and stories of quick wealth
(Bautista 11). Such individuals are usually without capital and common ethnicities or
cultures. For Liyo, the “get-rich quick” mentality of miners and their cultural diversity,
unbound by traditional thinking and superstitions may explain why this type of mining
appears to be more disorganized and less environmentally sound than traditional small-scale
methods (55). As exemplified in Mt. Diwalwal, mining is carried out in contiguous, commonly
intersecting underground openings that are owned and operated independently of one
another. In general, extraction is done crudely and unsystematically(Tujan and Guzman
144). This is in contrast to the tunneling system of traditional communities that is more
systematic and planned-out.
And because of their unsystematic mining methods and cultural differences, maintaining
peace and order in a gold-rush community has been painstaking. For instance, according to
Dancel and Brazas, since the discovery of Diwalwal, violence of various forms such as
murders, threats, etc., have erupted. An estimated number of 4000 miners have been killed
in the area for the past 20 years (Riguera).
Indeed, mining in itself, is relatively a risky economic activity. Without the prior knowledge
and experience in mining that traditional miners have, gold-rush miners often lack the
necessary knowledge in geology and mining. Small-scale mining, given the simple
technologies that the miners employ and the gold-rush miners’ lack in basic knowledge on
mining makes it harder and and riskier for them to mine. For instance, some miners
employed by financiers do not receive any income at all for their labor until some gold is
produced, which may take for several months to a year (Maglambayan and Murao 6).
However, such use of crude techniques and equipment may endure for long as most of the
small- scale miners are subsistence earners, only able to make very few improvements or
additions (Maglambayan and Murao 6). This may be the reason behind Clemente’s and
Lacticse’s observation that even though small-scale gold mining has been practiced in the
country since the early 1900’s, technology has changed very little (9).
Because of this, Maglambayan and Murao think that the instability of the business generally
favors single men, with no families to support, as prospective workers (6). On the other hand,
this preference is different with traditional small-scale miners who work as a clan and had
various sharing mechanisms.

13. 13
Nevertheless, their field survey still confirmed that small-scale miners can, on their own,
patiently develop their mine tunnels with crude exploration and prospecting techniques
(Maglambayan and Murao 6).
The Role of Financiers in a Gold-rush Setting
According to Tujan and Guzman, small-scale miners often group themselves under corporations
which are financed by wealthy businessmen (143). The number of laborers differs from one
opening to another, depending on the scale of mining operations (145). The miners work without
fixed salary, just the assurance that the financier would shoulder the expenses and exchange
food or allowance for labor (143). The proceeds of the excavation are divided between the
miners and the financier based on an arrangement between the two parties. In Diwalwal, the
sharing scheme is based on the ore produced or the total income derived from the operations.
According to Bacani, the usual sharing arrangement in the area was 30-70, 30% to the miners
and 70% to the financier (qtd. in Tujan and Guzman). According to Conde, the usual sharing
scheme in the area is 40%-60%, 40% for the miners and 60% for the mining companies.
However, the miners’ share is divided into hundreds, if not thousands. Sharing may be based on
gross production or gross income, but usually operational expenses were deducted beforehand
(qtd. in Tujan and Guzman 145).
The Role of the Middlemen in Small-scale Mining
As what Berger has cited earlier as a general characteristic of small-scale mining, Philippine
small-scale miners also do sell their gold to middlemen. The price of a gram of gold varies in
different regions (Tujan and Guzman 143). For instance in Benguet, small-scale miners sell their
gold to accredited gold-buyers in Baguio, whose prices are based on the London
price(International price), the grade of gold and foreign exchange rate. No specific size or weight
of gold is required by these gold buyers (Pay-an 10). Most of the gold recovered by the
interviewees of Maglambayan and Murao from mining communities in Benguet are sold on
Baguio City’s black market through middlemen working for a certain businessman (5). According
to Cabria et al., the miners from their study site (other mining sites in Benguet) sell their gold to a
cartel-like group based in Baguio City at a price normally lower than the prevailing international
market price. It is uncertain if the referred group is accredited or belongs to the black market. As
of December 1999, the selling price to this group was 280 pesos per gram of gold bead (29).
According to Tujan and Guzman, agents or middlemen and “direct buyers” usually underprice
the gold (143). However, this remains to be the preferred selling route because of the miners’
difficulty to comply with the requirements of the Central Bank, which stipulates the purchase of a
minimum of 300g from individual sellers (as required by DENR Administrative Order No. 34,
1992) (Cabria et al. 29)
The raw gold bought by these local buyers may further be refined and directly sold in Manila to
fetch a much higher price. According to Lopez, It may be smuggled and sold in Hongkong or
Singapore where it commands an even higher price (qtd. Tujan and Guzman 143). According to
Bacani, 70% of the gold extracted from Diwalwal was not reported and probably smuggled
abroad by Chinese buyers and assorted middlemen (qtd. in Tujan and Guzman 145).
Some miners who cannot invest on their own mill, opt to sell their ores to the millers instead
(Cabria et al. 28).
In Diwalwal, it was the financiers and middlemen who “made it big” or “got rich fast”, and later
on, put up their real corporations. Otherwise, they have associated themselves with corporations
like Blucor Minerals Corp., Bulbscor Minerals, and Helica Gold Mining Corp., and the like, who
are now the main miners in Diwalwal.

14. 14
It seems that in the industry of small-scale mining, the financiers and middlemen are the ones
who benefit, especially from the black market for gold. The toiling small-scale miners remain at
subsistence levels (Maglambayan and Murao 7) due to the exploitative relations that they’re in
and are trapped by the cyclical system of the trade.
Small-scale vs. Large-scale Mining
Berger stated that small-scale operations often lead to the recognition of larger deposits and
many large mine had its origins in smaller workings (5). This may in fact, be true but when such
takes place in the Philippines, this more or less, equates to the displacement of traditional miners
from their ancestral mining areas with all resources found in them, in favor of large-scale mining
corporations. Many of the mining activities of traditional small-scale miners are deemed illegal
because their ancestral lands have been declared part of large-scale mining corporations’ mining
concessions.
Tujan and Guzman cites several data on this:
“In the Philippines, around 54,000 miners are now barred from mining in the
Cordillera and Zamboanga del Norte where small-scale mining has been
prohibited” (147).
“In the Cordillera, about 24,000 indigenous miners who previously co-existed
with Benguet Corporation, are now barred from mining. Even before the
advent of aggressive liberalization through the Philippine Mining Act,
indigenous communities in the Cordillera were already displaced by big
mining corporations such as Benguet Corporation” (147).
“In 1995, Canadian Toronto Ventures Inc. bulldozed more than 200 tunnels
belonging to small-scale miners in Brgy. Canatuan in Siocon, Zamboanga del
Norte, who were declared illegal upon the entry of the company” (148).
Such displacements are made with the use of state apparatus such as the military, police and
other government agencies. For example, in 1989, to displace small-scale miners in Itogon,
DENR representatives and the mining company’s security guards forced their way inside the
community to blast the tunnels of small-scale miners (Tujan and Guzman 147). Such conditions
worsen the conflicts that have existed between the large-scale corporations and the small-scale
miners since time immemorial.
Because of this, traditional small-scale miners have had to work around limited or less productive
areas. Some are also forced to look for other sources of livelihood. Some small-scale miners
insist on mining in the concession areas of these corporations, resulting to more conflicts.
Large-scale mining corporations are also one of the buyers of gold or mine tailings from small-
scale miners. According to Tujan and Guzman, Benguet Corporation actually relies on small-
scale miners for about 30% of its gold production. Large-scale miners may also buy gold from
small-scale miners. However, this is not widely practiced since gold bought from small-scale
miners is more expensive than ore mined by the company(Tujan and Guzman 143).
From December 2001, experimental measures were implemented by Benguet Corporation in
order to ensure a “peaceful co-existence” between the corporation and the small-scale miners,
who mine in the former’s concession areas. This scheme, according to Cabria et al., allowed a
group of small-scale miners to undertake contractual mining inside a temporarily abandoned
tunnel previously operated by the corporation. The corporation was said to have constructed
around 15 ball mills and the pocket miners were permitted to keep the coarse concentrates and

15. 15
any gold grains that are recovered in the sluice boxes. Benguet Corp., meanwhile collects the
sluice box tailings that are to be treated in purpose-built CIP plant, under construction during the
study. (Cabria et al. 30).
The said project was described in more detail by Engr. Angelito Gomez, Project Manager of
Benguet Corporation. The project was referred to as the Tripartite Approach. The three parties
involved in this arrangement are Benguet Corporation, the small-scale miners’ groups and the
government, represented by the Department of Environment and Natural Resources through the
Mines and Geosciences Bureau or the Environmental Management Bureau and the Local
Government Unit. Shown in Table 3 are the outlined role of each party (22-23):
In the said mining scheme, the miners and the Corporation get their own share of crushed ores
(The sharing percentage was not specified.). The miners’ share of ores are allowed to be grinded
using the company’s mills. Free gold is then recovered through the gravity method of sluicing. It
remains unclear to the authors if the miners have the option to keep the gold recovered or
compulsorily have to sell their produce to the company. The resulting tailings, are processed in
the Company’s CIP plant. The gold produced from the tailings is sold to the Bangko Sentral. The
revenue is used by the company to process its ore in the same faciltiy (Gomez 23-24).
The project was launched in January 2002 and boasts of an initial production of 20 metric tons
per day, which gradually reached up to 50 metric tons per day. It claims to have provided
employment to about 1,000 local residents, 800 of which are small-scale miners from Acupan and
the surrounding barangays (Gomez 24).
However, looking closely at this government-supported scheme, Benguet Corporation remains
the party gaining the most benefits out of the said arrangement. First, the scheme was thought
of and implemented at a time when the corporation has suspended operations due to the
Table 3. Role Of Stakeholders in the Tripartite Mining Approach
Benguet Corp. Corporation Government
 identifies areas in the
Acupan Mines which are
“appropriate” for small-
scale mining;
 conducts exploration and
delineates ore reserves;
undertakes mine
production planning and
monitors implementation;
provides central
crushing, grinding and
CIP treatment plant and
anti- pollution devices;
and
 sells the gold output to
the Central Bank
 organizes themselves into
mining cooperatives or
associations which serve as
the contractors;
 abandons the use of mercury
and other old small-scale mill
plants and uses the more
efficient, environmentally safe
and centralized ore treatment
facility of the company;
finances the mining
operations;
 conducts mining according to
the plans and safety
regulations of the Company
and the government
1. DENR-MGB/EMB
 Creates the mechanics, rules and
regulations to accommodate within the law
this new cooperative arrangement between
the large and small mining operators;
 Enforces safety standards in the mining and
milling operations; Ensures that environment
protection measures are implemented; and
Provides technical assistance in the mining
operation;
 Assists in the proper information, education
and communication of this scheme
2. LGU
 Provides basic social, health and other
services to the community; Assists in
maintaining peace and order;
 Facilitates local government-required
permits;
 Formulates and monitors a simplified tax
collection scheme; and
 Assists in information dissemination and
proper education of the community

16. 16
dwindling down of gold prices. Such scheme would definitely allow the corporation of still make
use of not so much profitable land(at least for large-scale operations) that requires low capital
and operating costs and at the same time, generate income to support camp maintenance (24).
The company would also save cost on labor from replacing wage earners with a contractual
workforce. The company may have allowed the miners to use some of their machineries but this
was only up to the milling process, after which, miners have had to use the age-old method of
sluicing which extracts only a small-percentage of the gold. The more high-tech machineries are
still limited to the company’s use. Despite all these, the project makes Benguet Corporation
appear as a charitable entity and undermines the issue of ancestral domain.
F. Policies Concerning Small-scale Mining and their Implications
There are two main laws directly governing small-scale mining. The first one is Presidential
Decree 1899, establishing small-scale mining as a new dimension in mineral development. This
was created in 1984, during the Marcos regime, in recognition to the increasing economic impact
of the small-scale mining sector (“Highlights”). The said decree aims to provide a legal basis for
the issuance of necessary government licenses and permits (Kaniteng 50), alleviate the living
conditions in the rural areas and contribute additional foreign exchange earnings.
Kaniteng elaborates on its two main features which are:
Box 1 On the Government Take-over of Diwalwal
On November 25, 2002, Presidential Proclamation No. 297 was signed, declaring Diwalwal as a
Mineral Reservation (Mines, “Updates”).This was said to resolve the land claim conflicts
between the Southeast Mindanao Gold Mining Corporation and the miners, and so with
environmental issues in the area. Diwalwal, estimated by DENR to have the largest gold deposit
in the world according to Manila Times, covers 8100 hectares, including the 729 hectares mined
by small-scale miners. This gave the government power to directly utilize the reservation and
issue service contracts to miners.
In an outlined plan of the government take-over made by former DENR Secretary Alvarez in
2002, troops were to be sent in, mining was to be stopped, a technical working group was to be
created to implement a so-called mine management plan, service contracts were to be issued,
mining was to resume, a common mine tailings pond was to be constructed, miners and their
mineral processing plants were to be relocated, and the Central bank was to buy all their gold
produce (Conde and Gonzales).
At present, 24 service contracts have already been granted for mining and three for mineral
processing. The Mines and Geosciences Bureau boasts of an average initial production of run-
of- mine ore (ROMO) at 102 wet metric tons a day. As mentioned in the initial parts of the
paper, as of July 14, 2003, the total government share is 38.99 kilograms in gold buillion with an
estimated value of P21.659 M. Actual payments received from the Central bank is P20.607 M
(Mines, “Updates”).
As the government claims, the said take-over was to benefit and recognize the rights of small-
scale miners. However, Horacio Ramos, director of the Mines and Geosciences Bureau
announced in 2002 that 75% of the reservation was to be allotted to large mining companies,
including foreign ones. The small-scale and subsistence miners were to be allotted 25% (Conde).
Conde reiterates that it was not clear at that time whether the 729 hectares mined by small-scale
miners were part of the 75% that was to be opened to large companies. As some sectors claim,
the government take-over is anchored on the Mining Act of 1995, which opens government lands
to foreign large-scale mining corporations, such as the Southeast Mindanao Gold Mining
Corporation (Conde). The said corporation is the legal claim owner of 8100 hectares. In fact,
Diwalwal is now one of the 23 mining areas offered by the government to foreign investors to
develop.

17. 17
a. the development of small mineral deposits that may be worked profitably at small tonnages
with minimal capital investments and utilizing manual labor; and
b. the reservation of additional hectare beyond the permit area for expansion in the future.
The second, and the more comprehensive legislation on small-scale mining is Republic Act
7076, entitled “People’s Small-scale Mining Act of 1991”. The said legislation aims to generate
more employment opportunities and provide an equitable sharing of the nation’s wealth and
natural resources through the implementation of the People’s Small-scale Mining Program.
The features of the said program are as follows:
a. identification, segregation and reservation of certain mineral lands as people’s small-
scale mining areas;
b. the recognition of prior existing rights and productivity;
c. the encouragement of the formation of cooperatives;
d. extension of technical and financial assistance and other social services;
e. extension of assistance in processing and marketing;
f. generation of ancilliary livelihood activities;
g. regulation of the small-scale industry with the view to encourage growth and productivity;
and
h. efficient collection of government revenue.
Kaniteng outlines a comparison of the two mentioned laws’ features (55) on Table 4.
The passing of RA 7076 encouraged the forming of cooperatives among small-scale miners.
However, the law did not do much to significantly uplift small-scale miners’ standard of living in
general
For one, completing the requirements and processes of the law seem very tedious and difficult
for small-scale miners. Baluda tells of an example (14):
“An application for a small-scale mining permit requires that the small-scale
operator secure an ECC from the office of the Environmental Management
and Protected Area Sector( EMPAS), part of the DENR. But to obtain the
ECC, an initial environmental examination or IEE has to be submitted to the
regional office of the DENR in the Cordillera Administrative Region. This
document is too technical for the small-scale miner to complete. And while
licensed environmentalists can be called on to prepare the IEE, the cost
(5000-20000 pesos) is prohibitive.”
At the same time, the two to four year duration of a small-scale mining contract is too short,
especially given the tediousness of the application process. The areas allowed for mining is only
limited to 20 hectares, regardless of the mineral concentration of the land.
To add, the Mineral Action Plan of the government which seeks to “revitalize” the mining industry
plans to amend the two legislations to supposedly address the inappropriate and unresponsive
small-scale laws, rules and regulations, giving emphasis on environmental protection. However,
since the Mineral Action Plan is oriented towards the liberalization of the mining industry, small-
scale miners ought to be wary of such planned amendments.

18. 18
Table 4. Comparison and Salient Features of PD 1899 and RA 7076 Mining Laws
Feature
RA 7076 PD 1899
1. Legal Document Issue
 License: Issued to small-scale miner
and/or processor qualified to enter into SSM
contract
 SSM contract: Issued to registered small-
scale miners organized into a cooperative to
work in People’s SSM contract area or
“Minahang Bayan” and declaration of the
area as a People’s SSM Area
Permit: SSM Permit
2. Licensing
 Licensing is required to pursue his
occupation as small-scale miner or
processor.
No license is required.
3. Registration
 All persons undertaking SSM activities
shall register as a miner with the Provincial
Mining Regulatory Board (PMRB)
No registration is
required
4. Identification, Registration
of SSM Areas
 Areas declared by PMRB subject to review
by its Secretary
No provisions
5. SSM Contract
 Any of the following mode of agreement with
the government
SSM permit
6. Size/Area
 Not more than 20 hectares  For mineral commodities
excluding gold panning or
sluicing and guano:
- Not to exceed 81 hectares
in areas covered by
existing mining rights,
permits license or
exploration permit
 For mineral commodities
- Not to exceed 20 hectares
 For gold panning and sluicing
- not to exceed ½
hectares
 For guano
- Not to exceed 8 hectares
7. Duration
 Two years, renewable for the same period Two years, renewable for the
same period
8. Number of Contracts
Allowed
 Only one People’s SSM contract award at
any time
For individuals, only one in
any one province for
partnership or corporation;
two permits in any one
province

19. 19
H. Issues on the environment and health
Because mining is an extractive industry, impacts to the physical environment is unavoidable.
Compared to traditional mining, gold-rush mining is less conscious of the environment, and
would therefore have greater environmental impact than the former.
One of the impacts of the small-scale mining is the modification of the ground surface.
Construction of tunnels may cause slope destabilization, landslides, erosion and siltation.
Maglambayan and Murao cite an example wherein mining sites located in steep mountainsides
dump rock wastes into streams, causing siltation(7).
The need for timber to support the adits or tunnels contributes to the denudation of forest areas.
This study, however, has not been able to determine the scale of denudation caused by the
small scale miners.
The use of hazardous substances poses a problem because construction of tailings dams or
ponds and pollution control are not commonly practiced. Mercury, as a product of mining
processes, easily gets dispersed in the aquatic environment and maybe ingested by bacteria.
These bacteria convert mercury into the more lethal methyl mercury. The chemical is transferred
when the bacteria are ingested by other organisms. In Mindanao, Broad and Cavanaugh
estimated that 26 t of mercury is being disposed annually into the regions’s major river systems
as a result of amalgamation operations (Lanticse, et al. 17). Although there are claims that small
scale mining is more environment-friendly than large-scale mining, the inefficient technologies
and the wider geographic distribution of small-scale mining communities may cause greater
environmental impacts than what we expect (Baluda 14).
A major health concern in mining is the use of mercury and cyanide in ore processing. These
chemicals, which are supposed to be restricted, are freely handled with little regard for basic
safety equipment. Children, as participants in the processing of ores, are exposed to these
health hazards. (Baluda 14). Even communities downstream of the mining sites are prone to the
above mentioned risks due to the pollution of their immediate environments.
Since small-scale mining employs primitive technology, tunnels have poor ventilation. Body
odors from the workers and sooty smoke from the pine torches not only create an unpleasant
working atmosphere, but also exposes the workers to serious respiratory ailments and accidents
(Padilla, “Indigenous” 47).
III. Conclusion and Recommendations
The character of the small-scale mining in the Philippines is a clear reflection of the neocolonial
and semi-feudal character of the country’s economy and society – an age-old livelihood source
and tradition, forced to integrate into the cash economy and the export-orientation of the whole
mining industry. This causes it to be backward and stunted with its practitioners remaining at
subsistence levels. Such state is in contrast to the undeniable significance of the sector to the
national economy based on its large amount of production and the number of people involved in
it.
Indeed, despite of its long history of existence and practice in the country, small-scale mining
failed to develop into a full-bloom national mining industry. It is very much part of the rural or
peasant economy, mainly acting as a livelihood source in the countrysides. Just like the
agricultural sector, the practice is still largely artisanal, practiced by a vast number of Filipinos.
The mining technology and techniques employed by miners, especially compared to large-scale
miners, remain simple and crude. Because of lack of capital, small-scale mining technologies

20. 20
remains undeveloped, and inefficient in terms of production and in lessening their environmental
and health impacts.
And the most important among these characteristics, is the fact that the living conditions of the
vast number of small-scale miners, who have long been contributing significantly to the country’s
economy, have not improved. And just like the rest of the peasantry, small-scale miners also
remain in exploitative social and economic relations with the financiers, middlemen and large-
scale mining corporations.
Sadly, the national government has not exerted the necessary effort to develop the mining
industry. The existing laws covering the development of small-scale mining and the protection of
small-scale miners’ welfare, were insufficient in developing the industry. Instead of genuinely
creating a national mining industry, its idea of developing the industry is through liberalizing the
economy by creating the necessary policies to allow the entry of foreign large-scale mining
Trans-National Corporations (TNCs). The entry of foreign TNCs more often than not affect small-
scale miners, especially the traditional ones, whose ancestral lands are usually put under large-
scale mining concessions. And with the country’s export-oriented economy, even the small-scale
miners’ produce are sold to large-scale corporations or directly smuggled out of the country.
Judging from the richness of our mineral resources, the vast number of small-scale miners and
the economic contribution of small-scale mining, the country definitely has a solid basis to
develop a national mining industry. It is very much important for the state to adopt a policy
orienting the mining industry, towards national industrialization with a centralized production
and/or planning. Such policy should put the interests of the people above the quest for
superprofits. This policy will determine the type of mining technologies to be used, adopted or
developed, based on the people’s needs, in particular, the industry and agricultural sector’s
needs. This can include the development of small-scale mining as a component of a national
mining industry. Aside from improving the production, the development of small-scale mining
technologies will answer the contentions and reservations of some sectors, including
environmentalists against the environmental impacts of present small-scale mining operations.
Ultimately, nationalizing the mining industry is the ultimate way to erase all the exploitative
relations that bind small-scale miners to their present living standards and therefore, uplift their
state of being.
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