Lawmakers call for probe into mining firm's unpaid royalties to indigenous peoples

MANILA, Philippines — House lawmakers filed a resolution on Monday, October 21, seeking to conduct a legislative inquiry into a mining firm’s impact on Mindanao's ancestral lands and its communities.

The mining company in question, Philsaga Mining Corp, has allegedly withheld royalties owed to indigenous peoples in Bunawan, Agusan del Sur, for conducting mining operations in the Consuela and San Andres areas.

According to House Resolution 2050, lawmakers became aware of the issue after receiving a complaint from Mary Jane Rodrigo-Hallasgo and Amatorio Rodrigo, members of the Manobo Tribe, saying that Philsaga has been denying the indigenous peoples’ rights to their ancestral land in Bunawan.

"The mining operations of Philsaga Mining Corporation permanently deplete the resources of the ancestral land to the detriment of the rightful Indigenous Cultural Communities/Indigenous Peoples (ICC/IPs) who are entitled to royalty shares," the resolution read.

The Philippine Mining Act of 1995 requires mining companies to secure the consent of IPs residing in areas where they intend to operate. 

Section 17 particularly states that royalty payments must be negotiated and agreed upon between the affected community and the mining firm for the extraction of minerals. This is facilitated by the National Commission on Indigenous Peoples (NCIP) through a memorandum of agreement. 

“The said royalty shall form part of a trust fund for the socioeconomic well-being of the indigenous cultural community,” the law reads. 

Section 16 of the Implementing Rules and Regulations of the Philippine Mining Act of 1995 further mandates that indigenous communities must receive at least 1% of the gross output or market value of extracted minerals.

The resolution also noted that Philsaga officers are "well aware of the ongoing issues" regarding the distribution of royalty shares. It further raises the possibility that the mining firm may be colluding with the NCIP "for personal benefit" in the handling of these royalties.

“There still exists some groups of ICC/IPs that are poor, ignorant and underprivileged without access to proper and effective assistance and are prone to abuse which requires