A Study of Socio-Economic

Although the mining industry’s contributions to economic growth have been called as among the largest, the industry’s full impact particularly on employment and the domestic economy continues to be limited, according to an assessment made by the National Economic and Development Authority(NEDA).

The researchers would like to find out the impressions of residents and employees where the mining industry was located. There had been arguments on how mining industry can recover an acceptable role in society and the economy?

Employees of the mining company are the primary concern on this study because they are implementers and violators what the Mining Act of 1995.

Importance of the Study

As a response to the existing conflicts and problems of the mining industries, the researcher aim to produce in depth analysis on the effects mining in the Philippines particularly in the Province of Palawan. With this, the discussions and analysis in this study will generate further knowledge and deeper understanding on the impact of mining industries in the Philippines, especially in the case of Palawan. This study will examine and investigate mining industries came to create socio-economic implications in the Province. However, except for a brief boom in 1988-89, the mining industry struggled from the mid-80s through the 1990’s. There are several reasons cited by the government to explain the demise of the industry. These are the decline in world prices of minerals and the higher costs of maintaining the mines and/or exploration, development and operation of new mineral deposits. However, the more fundamental reasons for the industry’s failure is that its heavy reliance on the world market for capital inputs such as machinery offsets its dollars earnings from exports. The industry exports cheap raw or semi-processed mineral products, then imports expensive finished mineral products. (Lopez: 1992)

Statement of the Problem

This research study concentrate on the implications of mining industry in the Philippines under the Mining Act of 1995, focusing on the province of Palawan. It aims to answers: 1. What are the socio-economic implications of mining industries in the Philippines, particularly on selected areas of Palawan. 2. What are the factors that make employees and officials of the mining industries stay for long working in the company. 3. What are the socio-economic risks of mining industries that contributed to the Province of Palawan. 4. What are the economic benefits that mining had given to the community where mining was operated?

Scope and Delimitation

Considering the broad issue regarding the case of Mining Industries in Palawan, this research study would like to focus mainly on determining and identifying the socio- economic impacts to the employees of said industry in the Municipalities of Berong, Rio Tuba, Narra, and Espanola. With the strong push of the Philippine government for active mining activities under the Philippine Mining Act of 1995, this study would like to examine and investigate the impact to the employees and other residents of the said municipalities.

Definition of Terms

Biodiversity – is the degree variation of forms within the ecosystem or in the planet. Exploration – the testing of a number of places for natural resources , drilling or boring of samples that will be examined for possible mineral deposits. Concessions – is a business operated under a contract or license associated with a degree of exclusively in business within a certain geographical areas. Small-mining

Chapter 2
THEORETICAL FRAMEWORK

Review of Related Literature

Mining in the Philippines is one of the oldest industry in the country. Gold mining in Luzon started in the 3rd century reported by the Chinese merchants. Before the advent of the Spaniards rule, metal (primarily gold) played an important role in shaping traditions and rituals, doing some features in Filipino beliefs and in developing of wealth, power and authority during the period.

The Spaniards failed to develop mining in the country, but left behind one of the basic building blocks of the present-day mining laws- The Regalian Doctrine. In essence, the Regalian Doctrine stipulates that all minerals and substances underneath all lands, public or private belong to the state. In effect, the law rests on the principle of eminent domain which reserves to the state the right to develop the mines on its own initiative or through private concession.

The growth of mining industry in the Philippines under the American may be said to have undergone three stage. The first stage could be associated to the rapid technological change during the last quarter of the nineteenth century in the United States. The second period was characterized by the first local gold boom participated by the sensational gold finds in Benguet and Balatoc. In the 1930’s the third period was the era of the second gold boom. In 1915, the Philippines produced more gold than Alaska and its outputs only second to California’s. Gold was the third most important commodity in the Philippine export trade.

At present , there are several on-going programs supported vy the World Bank aimed at continuing the introduction of the best practices for mines closure and the environmental rehabilitation and the socio-economic regeneration of the former mining areas, as well as for emergency preparedness in respect of the risk posed by mining activities on the environment and human health.

Definition of Terms

Biodiversity – is the degree variation of forms within the ecosystem or in the planet. Exploration – the testing of a number of places for natural resources , drilling or boring of samples that will be examined for possible mineral deposits. Concessions – is a business operated under a contract or license associated with a degree of exclusively in business within a certain geographical areas. Exploration permit – which grants the exclusive rights to the permittee to explore a tract of land on an approved work program. If a mineral deposit is delineated and found t obe technically and economically feasible to be developed, and the permittee has the right to enter to any type of mining right with the government.

Mining agreement – which granst eh contractor the right to conduct mining operations within the contract areas for a period of 25 years. There are three types of this agreement: Mineral Production Sharing Agreement(MPSA), Joint Venture, and Co-Production Agreement. It allows 40% foreign equity.

Research Methodology

Research Method

The researcher will

Population Sampling

The study will have the population composed of the employees of Mining Industries specifically in the Municipalities of Berong, Narra, Espanola and Riot Tuba.