These companies represent the last link in the global supply chain between Philippine natural resources and foreign markets. Meanwhile, Filipinos are kept out of any profits and instead get grief, disease, and harassment thrown their way.
By JUSTIN UMALI
Bulatlat.com
SANTA ROSA, Laguna — There is little doubt that the Philippines is one of the richest countries in the world in terms of natural resources and mineral potential. The country ranks thirs in gold deposits, fourth in copper, fifth in nickel, and sixth in chromite; and yet, such mineral wealth does not translate to wealth for the common Filipino.
In a semi-feudal economy like the Philippines, natural resources are not transformed by local industries to create raw materials. Instead, these are exported by foreign subsidiaries to overseas processing plants, to be sold back to the country as finished goods. The only winners in such a system are foreign corporations and their local business partners.
No industry exemplifies this more than mining, where almost all firms are in some way owned by a foreign entity. Nickel production, in particular, remains one of the country’s top mineral exports; in 2019, it was valued at P63.71 billion (US$ 1.32 billion), P19.32 billion (US$ 399.31 million) of which went to exports. Almost all of these exports went to Japan (PHP 19.23 billion or US$ 397.63 million).
The province of Palawan is home to some of the country’s largest nickel mines. It is also home to a storied history of environmental destruction, imperialist plunder, and people’s struggle.
Nickel mining in Palawan
Nickel production in Palawan constitutes roughly 25 percent of total nickel production in the country. In 2019, the mining industry in Palawan P 16.39 billion (US$ 338.32 million) off nickel and related metal ores alone. Millions more were made from by-products like crushed limestone, milk of lime, and hydrated lime.
Three corporations currently dominate nickel production in the province: Rio Tuba Nickel Mining, Berong Nickel, and Citinickel Mines and Development. Almost all of their nickel goes towards export to parent companies and business partners in China and Japan.
Citinickel has the most holdings of the three. It owns two mines in Palawan, in barangay Pulot, Sofronio Española, and in barangay San Isidro, Narra. Citinickel is a subsidiary of Oriental Peninsula Resources Group, Inc., an investment holding company specializing in mining. One of its directors, Fernando B. Esguerra, also holds a position in China Nickel Mining Philippines Corp.
Rio Tuba Nickel has operated a mine in barangay Rio Tuba, Bataraza since 1977. Now, it supplies nickel, limonite, and cobalt to its sister company, Coral Bay Nickel Corporation. Both are owned by Nickel Asia Corporation. NAC is owned by the Zamora family and by Japanese firm Sumitomo Metal Mining Co., Ltd. In 2017, San Juan Rep. Ronaldo Zamora, brother of NAC founder and Chairman Manuel Zamora, worked against Gina Lopez’ appointment to the DENR.
Berong Nickel is a joint venture between British firms Toledo Mining and ENK Plc., and Atlas Mining. Both DMCI Mining owns Toledo Mining while DMCI Holdings owns ENK. The Consunji family, which owns DMCI, also has interests in energy, petroleum, construction, water, and other industries.
These companies represent the last link in the global supply chain between Philippine natural resources and foreign markets. Meanwhile, Filipinos are kept out of any profits and instead get grief, disease, and harassment thrown their way.
Socio-environmental impact
According to indigenous organization Pinagtibukang Kaundang-undangan it Palaw’an (PKP), Citinickel obtained their Memorandum of Agreement with the indigenous Palaw’an community by “violating indigenous rights.” PKP also claimed that Citinickel failed to honor the agreement by not paying stipulated royalties or compensating for damages to the environment.
This included a 2014 silt spill which resulted in 14…