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Natural resources

Small-Scale Gold Miners Push for Formal Status in the National Economy

Strategic Insights

— 2 min read

Small-scale gold miners from Camarines Norte and Mountain Province are calling for a formal, elevated status in the national economy, seeking stronger partnerships with the Bangko Sentral ng Pilipinas (BSP) and the Department of Environment and Natural Resources (DENR). With approximately 500,000 workers and supporting the livelihoods of around 2 million Filipinos, these miners aspire to safer working environments and methods, as well as more access to legitimate buyers and traders. According to the Philippine Institute for Development Studies, 70 percent of the country's gold reserve supply comes from small-scale gold mining operations. Nearly half of all provinces in the country have SSM activities, with a PlanetGOLD survey finding that 22 of 35 provinces with SSM activity use mercury, a toxic substance that can have severe health effects on miners and the environment.

Key Takeaways:

  • Small-scale gold miners from Camarines Norte and Mountain Province are pushing for a formal status in the national economy, seeking partnerships with the BSP and DENR to improve working conditions and access to legitimate buyers.
  • Approximately 500,000 workers are employed in the subindustry, supporting the livelihoods of around 2 million more Filipinos.
  • According to the Philippine Institute for Development Studies, 70 percent of the country's gold reserve supply comes from small-scale gold mining operations.
  • Nearly half of all provinces in the country have SSM activities, with 22 of 35 provinces with SSM activity using mercury.
  • PlanetGOLD has introduced mercury-free processing technologies in Paracale and Sagada, helping miners formalize their operations.
  • The government requires SSM operators to register and acquire licenses, but mercury use remains a significant issue.
  • The BSP is the only formal end market for gold produced by small-scale miners, providing access to a tax-exempt market.
  • The DENR plans to mainstream the PlanetGOLD mercury-free model into national and local programs, with the goal of phasing out mercury and integrating SSM into the formal economy.

Statistics:

  • Approximately 500,000 workers are employed in the small-scale gold mining subindustry.
  • Around 2 million more Filipinos rely on the livelihoods of small-scale gold miners.
  • 70 percent of the country's gold reserve supply comes from small-scale gold mining operations (Philippine Institute for Development Studies).
  • 22 of 35 provinces with SSM activity use mercury (PlanetGOLD survey).
  • Mercury use in SSM has been reported in 22 out of 35 provinces with SSM activity.
  • Mercury has short-term effects, including skin issues, and chronic effects, such as paralysis or nervous system deterioration.
  • The Sagada Minahang Bayan produces an average of 2,200 metric tons of gold per year.

Sources:

  • Philippine Institute for Development Studies
  • PlanetGOLD
  • Bangko Sentral ng Pilipinas (BSP)
  • Department of Environment and Natural Resources (DENR)
  • Republic Act No. 7076, or the People's Small-Scale Mining Act of 1991

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