FACT SHEET ON

SAMAR BAUXITE MINING RESERVATION

Brief Background

  • The Bauxite Mining Reservation was established on 4 February 1977 through Presidential Proclamation No. 1615, covering a total area of 230,791.5 hectares. The Philippine government, through the DENR-MGB, has spent a sizeable amount for the detailed exploration of bauxite mineral deposits in the area. This resulted to the delineation of high potential mineralized areas of bauxite.
  • Proclamation No. 744 was issued on 20 February 1996, declaring the rainforests of Samar Island as forest reserve. The Samar Island Forest Reserve (SIFR) covers an aggregate area of 360,000 hectares, including 90,123 hectares of the Samar Bauxite Mining Reservation (SBMR).
  • The Samar Island Biodiversity Project (SIBP) was launched by the DENR on 1 July 2001. The UNDP-Global Environment Facility (GEF) has allocated US$27M for the project during its 8-year implementation period (CYs 2000-2008). The Project aims to protect a representative sample of the biodiversity of Samar Island through the establishment of the Samar Island Natural Park (SINP) under the National Integrated Protected Areas System (NIPAS) established by R.A. No. 7586. The SIBP is providing the legal and development framework for the establishment of the SINP.
  • The proposed SINP covers 28 municipalities within the 3 provinces of Samar Island. It has an area of about 347,000 hectares for natural forest and about 123,000 hectares of buffer zones, for a total area of 470,000 hectares. The existing forest reserve forms part of the SINP. About 55% of the Bauxite Mining Reservation is overlapped by the SINP.
  • On 9 May 2002, the Mineral Production Sharing Agreements (MPSAs) of Bauxite Resources, Inc. (BRI) and Alumina Mining Philippines, Inc. (AMPI) were filed covering areas rendered open to other mining applicants, in MGB Regional Office No. VIII, Tacloban City, covering an area of 5,519.01 hectares and 6,694.0473 hectares, respectively, in Western Samar.
  • After the prescribed procedures have been complied with, the DENR issued two (2) MPSAs to BRI and AMPI on 5 December 2002.

Issues

  • While the proposed SINP would be advantageous to the environment, it would ultimately close 470,000 hectares of Samar Island to other production/development initiatives. It will restrict the livelihood of upland communities and socio-economic development projects of local government units and other stakeholders since a natural park is "beyond the commerce of man."
  • The MGB proposed that SBMR areas with the highest geologic potential for bauxite deposits be excluded from the SINP, which is about 54,064 hectares or less than 12% of the proposed 470,000-hectare SINP.
  • These areas are considered strategic and vital for the State, being the only significant source of aluminum ores in the Philippines. Estimates of geologic reserves of the SBMR go up to 242 million tons, with average grade of 40.80% Al2O3 (alumina).
  • The gross revenues that may be generated from the in-situ bauxite deposit, based on a projected price of US$1,343/ton (World Metal Statistics, May 2002), is valued at about US$21 Billion (representing 45% of the geologic reserves for conservative purpose).
  • Any mining and mineral processing operations to be undertaken in the SBMR shall be strictly pursued under the principles of sustainable development. Modern technologies and best practices are now available for the extraction of minerals without compromising the environment. Under the Philippine Mining Act of 1995, every mining operator must implement an Environmental Protection and Enhancement Program (EPEP) and a Social Development and Management Program (SDMP) to ensure that the economic competitiveness of the mining project is sustained while every concern of the protection of the environment and development of communities is adequately addressed.

Current Status

  • Sec. Gozun has already considered all the issues regarding the proposed SINP and has fully endorsed the SINP and has fully endorsed the SINP.
  • After thorough review, the DENR has also found the two (2) Mineral Production Sharing Agreements (MPSA) granted to Bauxite Resources Inc. and Alumina Mining Philippines, to be legally valid.