Rapu Rapu, the Philippines
Cyanide spills from an Australian-owned mine in the Philippines have robbed poor fishing communities of their livelihoods.
Fast facts
- Resource:
- Polymetallic (copper-zinc-gold-silver)
- Mine location:
- Rapu Rapu Island, Albay province, Republic of the Philippines
- Mine operator:
- Previously Lafayette Mining Ltd (Australia), now the South Korean companies LG International and KORES, and Malaysian Smelting Corporation
- Affected communities:
- Communities on Rapu Rapu Island and coastal communities in Sorsogon province
Profits over people
For fisherman Perfecto Banaynal, life changed the day cyanide spilled from the mine into the sea.
“I am 41 and have been fishing for 20 years. Before when I would go to sea I would always have a catch but since the mine, sometimes there is no catch.”
Perfecto lives on the small island of Rapu Rapu in the Philippines, and is one of many locals who made a living from fishing before two cyanide-laden spillages from an open-pit mine contaminated nearby creeks and the sea, leading to fish kills and destroyed livelihoods.
The copper-zinc-gold-silver mine was owned by the now defunct Melbourne-based Lafayette Mining Limited and was backed by a financial consortium led by ANZ Bank. Lafayette began mine operations in April 2005 – before it established environmental safeguards and despite overwhelming community opposition. Six months later, the mine's tailings dam overflowed, releasing cyanide-laden waste into the sea.
Lafayette promised to contribute to local and regional development. ANZ trumpeted its commitment to the highest social and environmental standards by signing up to the Equator Principles – a set of social and environmental benchmarks that are meant to govern lending decisions. Yet both failed to prioritise the local communities’ wellbeing over profits. Both have incurred financial losses and have withdrawn from the mine.
Photo Credit: Shanta Martin/OxfamAUS
Community costs
But the biggest losers are the community members – many who say they are now unable to make a living from fishing and surviving on one meal a day.
“Right now we have so much poverty," says local resident Arlene Bordarais. "Before we were poor, but we had fishing. Before, I bought milk for my children, but now I can only give them rice-water. My child got sick because I can’t afford the milk … a couple of days ago my husband wanted to go fishing but I didn’t have food for him for breakfast, so how could he go?"
Arlene's story is one of many documented in our Mining Ombudsman case report (PDF, 5MB) which outlines the social and environmental impacts of the Lafayette mine and gives voice to the communities' grievances. Its findings tell the all too familiar story of profits over people and their environment:
- Concerns have been raised that the mine has lessened the availability of drinking water
- Landslides have increased following blasting activity at the mine
- Rapu Rapu fisherfolk whose incomes were affected by the spills say their health has been affected – many now eat only once per day and forgo fresh fish
- Some locals feel their freedom of movement has been curtailed by armed military patrolling the island
- Community members say Lafayette's promised contribution to local, regional and national development – including the promise of employment – has failed to materialise
"They said there would be jobs but most people from here don't have knowledge of the machines and can only get a few jobs," says Antonio Casitas, a Rapu Rapu elder.
Community members make their opinions of the mine known. Photo Credit: Shanta Martin/OxfamAUS
Seeking justice
We have made a number of recommendations to the Australian Government, the Australian mining industry and the former financiers of the mine, including ANZ Bank.
In June 2007 we raised concerns about the mine with ANZ and facilitated direct communication between local community organisations and ANZ, following up with a list of recommendations for the bank to address the situation. Recently, ANZ announced that it will develop a human rights policy. We will work with ANZ to ensure this policy does in fact guarantee that the rights of people potentially affected by ANZ-financed projects are respected.?
What next?
The rise and fall of Lafayette signals a warning to those in the Australian mining industry that fail to uphold the highest environmental and social standards in their operations abroad. The case demonstrates that neglect of this duty leads to environmental damage and lasting detrimental effects on the lives of people – it can also lead to financial ruin.
We're working to ensure that mining companies learn from Lafayette’s mistakes and, that banks and other financial institutions that have signed the Equator Principles support their commitment to social and environmental responsibility in policy and practice.
Learn more
- Read our Mining Ombudsman case report (PDF, 5MB)
- Read the Bicol translation of the report (PDF, 39KB)
- Read the Tagalog translation of the report (PDF, 77KB)
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