Protest in front of the Chinese Embassy in Manila against Chinese occupation of the Philippine Scarborough Shoal. - Inquirerpic
By RODEL RODIS
WHILE China’s brazen occupation of the
Philippines’ Scarborough Shoal, located just 125 nautical miles from Masinloc,
Zambales, has captured all the national and international attention, little has
been mentioned about China’s occupation of the Philippine mining industry, an
entirely different issue from the Filipino Chinese (“Chinoys”) domination of
the Philippine economy.
For example, one of China’s vast army of
mining companies operating almost under the radar in the Philippines is located
near the Scarborough Shoal in the coastal town of Masinloc where China’s
Wei-Wei Group has set up a US$100 million nickel processing plant. In nearby
Botolan, Zambales, China’s Jiangxi Rare Earth and Rare Metals Tungsten Group
Company Ltd operates a US$150 million nickel exploration and cobalt processing
project.
As the Asia Sentinel reported on
November 12, 2012 (“China’s Filipino Gold Rush”), “With an estimated US$1
trillion in untapped mineral resources in the Philippines, according to the
Mines and Geosciences Bureau, Chinese mining companies, many of them operating
illegally, have been exporting gold, nickel and other precious minerals out
through the island country’s porous coastal ports, where there are no customs
officials and plenty of bribable officials to turn their eyes the other way.”
http://www.asiasentinel.com/index.php?option=com_content&task=view&id=4965&Itemid=232
With its occupation of the Scarborough
Shoal (what China calls “Huanyin Island”), smuggling precious metals from the
Philippines to a China base will be even more convenient especially after it is
transformed into a four story fortress, as China did with the Philippines’
Mischief Reef, located just 75 miles from Palawan, which China occupied in
1996.
The Asia Sentinel’s investigation reported
that “as of now, of the gold registered as leaving the Philippines, only 3
percent of the exports are registered with customs officials… The other 97
percent arrives in Hong Kong without being taxed by the government in Manila,
resulting in a massive tax loss.”
While that 97% of the gold is leaving
the Philippines illegally, it is somehow legally entering Hong Kong as HK trade
statistics showed that “gold consignments imported from Philippines into Hong
Kong had been declared,” the Sentinel added.
In April of 2011, Pacific Strategies and
Assessments (PSA), a company supplying foreign embassies and corporations in
Manila with intelligence and business climate reports, released a study titled
“Exploitive Chinese Mining in the Philippines” which reported that the
incursion of Chinese mining firms into the Philippines has had a disastrous
effect on the Philippine environment.
“While few are surprised over the
assertiveness and penetration of Chinese mining investors, there is substantial
evidence of unaccountability, misconduct and corruption in many Chinese mining
deals,” the PSA reported.
These firms do not “deliver correct
compensation for environmental damage and value of minerals extracted from
devastated mining areas….Chinese mining companies have a reputation for poor
adherence to environment standards, especially with regard to small-scale
mining projects,” the report added.
China’s mine safety record is the worst
in the world. More than 2,600 Chinese miners died in mining accidents last
year. While China accounts for 40% of the world’s global coal output, it
accounts for 80% of mining deaths in the world.
In 2008, the Philippine Department of
Environment and Natural Resources admitted that at least 3 million metric tons
of various mineral ores were brought into China that were untaxed in the
Philippines.
The Chinese mining companies’ occupation
of the Philippines began in earnest during the administration of Pres. Gloria
Macapagal-Arroyo when 26 Chinese corporations registered in the Philippines to
mine for gold, iron ore, nickel, copper, manganese, lead, zinc, chromate and
cobalt. They operate in 16 provinces in the Philippines: Cagayan, Benguet,
Zambales, Camarines Norte, Camarines Sur, Palawan, Leyte, Eastern Samar, Bohol,
Cebu, Misamis Oriental, Davao Oriental, Surigao del Norte, Sultan Kudarat,
Zamboanga del Norte and Zamboanga del Sur.
The PSA reported that “the reality is
Chinese mining firms are not playing by the same business ethics, rules and
practices which Western mining firms are expected to follow, nor is the
Philippine government holding China to the same benchmarks chiseled into law
and applied to Western firms.”
Chinese mining firms have been able to
subvert Philippine mining laws that set high standards for environmental
protection and just compensation by exploiting a law for small-scale mining by
Filipino-owned cooperatives. They hide “under the cover of domestic small-scale
miners to bypass Philippine mining laws and protocols as well as avoid the
large capital requirements, fees and taxes associated with large-scale mining,”
the report noted.
While American firms are restricted by
US law from bribing local officials, Chinese laws do not discourage such
practice. “Black cat, white cat, it doesn’t matter as long as it catches the
mice,” Deng Xiao Ping famously said and this has been the guiding principle for
China’s mining firms in the Philippines.
But there is also a national security
concern which may be greater than just the loss of significant tax revenue for
the government or the scorched earth devastation of the Philippine environment.
One of China’s mining companies
operating in the Philippines, the Jiangxi Rare Earth and Rare Metals Tungsten
Group Co. Ltd, is a China government owned company. One of the minerals Jiangxi
is mining in the Philippines is nickel. The Philippines is China’s No. 1 source
of nickel ore, with Indonesia a close second. Because Indonesia has just
imposed a nickel ore export ban, China will undoubtedly increase its import of
nickel ore from the Philippines.
Nickel super-alloys are a critical
component in advanced jet engines and are used in the engines of 5th generation
jet fighters.
According to the 2006 Minerals Yearbook
of the United States Geologic Survey (USGS): “The F-35 Joint Strike Force
Fighter project is projected to include production of about 3,000 aircraft and
6,000 engines that would use 3rd generation nickel-based super-alloys. The F-22
Raptor is expected to add another 700 aircraft.”
China’s invasion of the Philippines’
Kalayaan Islands in the Spratlys, with its estimated 50 billion barrels of oil
reserves, may likely be accomplished with the heavy-handed use of China’s
People’s Liberation Army jets, made with nickel-based super-alloys extracted
from the Philippines.
According to “Troubled Waters”
documentary producer/director Vince Wade, “a military clash is a possibility
but most people don’t realize these conflicts are essentially economic warfare,
which is already underway,” Wade said.
“China appears to have a plan to use
business and trade to gain de facto control of the economies of the Philippines
and other Southeast Asian nations through domination of the energy, mineral and
telecommunications sectors,” Wade added.
If China ever threatens again to embargo
Philippine bananas or ban Chinese tourists from the Philippines to coerce the Philippine
government to withdraw its ships from the Scarborough Shoal or any territory
within the Philippines 200 mile Exclusive Economic Zone, the Philippine
government should retaliate by shutting down all nickel exports to China, and
all the Chinese mining companies in the Philippines. - Inquirer
(Send comments toRodel50@gmail.com or
mail them to the Law Offices of Rodel Rdis at 2429 Ocean Avenue, San Francisco,
CA 94127 or call 415.334.7800).
PNoy should be aware of this! and do the right thing to get back at these culprits.... in paracale, the chinese gold miners had devastated the environment...it will do the same in mambulao with another chinese miner - iron miner. this company known as investwel donated 300 bags of cement to meyor dong's road cementing project. Dong's technical/special assistant raised an eyebrow and asked the chinese bossman.... ITO LANG...? 300 BAGS OF CEMENT? TAPOS SISIRAIN NINYO ANG AMING KALSADA PAG NAGSIMULA NAKAYONG MAGHAKOT BAKAL .... 300 BAGS LANG..... ? ANO KA MASAYA? SAY NAMAN NG TSIKWA....wak ka alala... malami pa kami deliver na cemento... relak ka lang... hahahahaha.... gusto nang mapika ni Meyor Dong...kasi wawasakin ng mga ito ang sinemento niyang kalsada na malapit nang makarating ng larap...
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