Gold in the Philippines and ASGM

Artisanal and Small-scale Gold Mining in the Philippines 

A short summary of Artisanal and Small-scale Gold Mining in the Philippines Report

Or.iginally written By: Ban Toxics

This post will feature a summarization of a report written in December 2010 by Ban Toxics, The Price of Gold: Mercury Use and Current Issues Surrounding Artisanal and Small-scale Gold Mining in the Philippines. We don’t own this report or any of the data included in it. All credits go to the original researchers and data owners

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A local miner carries a sack of gold ores.

What is Artisanal and Small-scale Gold Mining (ASGM)?

The definition of artisanal or small scale mining varies from country to country because of the different set of criteria or parameters used. For decades, experts worked to devise universal definitions of “artisanal” and “small-scale” mining but were unable to reach a consensus. Artisanal and small-scale gold mining (ASGM) is however popularly referred to as mining activities that use rudimentary techniques in extracting minerals, most commonly gold, by miners working in smallsized operations.

Why pursue ASGM?

The constant surge in the price of gold and lack of livelihood oppurtunities make artisanal and small-scale gold mining an attractive enterprise for a large number of people especially the poor. Though ASGM provides livelihood for over 70 countries and an estimated 10-15 million miners, it comes with a huge risk on both environment and human health. Razed mountains, distorted landscapes, contaminated water bodies are the effects on the environment while miners are exposed to the health harzards related to their work.

Illegal gold miners.

Who are related to ASGM?

Men, women, and children are all actively involved in certain stages of ASGM. All are exposed to risks and hazards. Most small-scale gold miners operate without legal permits; even without proper equipments and clean water.

Gold in the Philippines? Really?

Most of us are not aware, but the Philippines is ranked third in the world in gold deposits according to a report in 2009. Yes, you read it right, third in the world. In 2009, the Mines and Geosciences Bureau (MGB) of Department of Environmental and Natural Resources (DENR) estimated that the country’s gold reserve has at least 5,080,785,289 tons. 

A little bit of history about gold in the Philippines

Our country’s history tells us that gold mining is an ancient industry which existed even before the Spaniards stepped foot in our land. During the 3^rd century, Chinese traders actually referred to Luzon as Isles of Gold because of our vast supply of gold. Our ancestors used wooden pickaxes tipped with iron in chipping ore from the tunnel. Then, they manually crush the ores until it is reduced into powder, then washed into the streams where the gold dust or grains are distinguished by their gleam in the sunlight.

ASGM Gold Production in the Philippines

Currently, more than 30 provinces are engaged in ASGM activities. For the past 10 years, the Philippines’ average annual gold production was reported at 36, 457 kilos, putting us consistently in the list of top 20 gold producing countries in the world.

Fact: 80% (28 tonnes) of the country’s annual gold supply comes from artisanal and small-scale gold mining sector. In 2009, 10% of the world’s ASGM global production is contributed by the Philippines. As a matter of fact, more than 10% should be credited to the Philippines, but since most ASGM practitioners operate without license, some of their  production is unreported or unofficially accounted.

Where do they sell the golds they mined?

Pursuant to RA 7076, the Bangko Sentral ng Pilipinas has established gold buying stations. The gold is bought in Philippine Peso, but the buying price is based on the world market’s price of gold. However, the golds to be sold to BSP must meet certain conditions.

Bangko Sentral ng Pilipinas.

1. Physical Form

a. Bar or disc (grains, powder, nuggets and flakes are not accepted)

b. Should not contain mercury or amalgam in any quantity

c. Should be free of slags and other foreign matters

d. Should not bear any sign of metallic segregation or poured shortness

2. Maximum Dimension

a. Bar Form: 9 inches long, 4 inches wide and 2 inches thick

b. Disc Form: 4 inches in diameter and 2 inches thick

3. Weight

a. Minimum weight of 200 grams per piece

b. Maximum of approximately 300 troy ounce or 9.3 kilograms per lot

c. Maximum weight of bar/disc shall be 64.30 troy ounce or 2 kilograms.

4. Minimum Assay: 30% per lot

Source: Bangko Sentral ng Pilipinas

Gold produced by small-scale miners which meet the criteria can be directly sold to BSP’s buying stations. However, due to difficulties by small-scale gold miners to meet the standards set by BSP and their distance to buying stations, they usually sell their gold to independent gold buyers and jewelers for a lower price.

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Mercury in ASGM

Even children mine gold.

Mercury has been used in the mining industry as early as 2007 BC in Spain where the substance was used to amalgamate and concentrate precious metals. Mercury amalgamation became widespread by the Romans in 50 C.E. In 177 C.E., however, the use of elemental mercury for gold recovery was banned in mainland Italy, possibly in response to health problems caused by this activity.

So we know that Mercury is hazardous to human health. Why do miners still use them?

One of the principal reasons cited by miners is that mercury produces quick money for their family’s daily subsistence, after which, they can still bring their mine tailings to cyanide processing plants for further recovery of gold. Another reason mentioned is that mercury is easy to use and is highly effective at capturing gold under field conditions. It is also very accessible and cheap.

Other reasons cited are lack of awareness of the risks of mercury use and lack of knowledge of mercuryfree gold production alternatives.

Gold extraction and processing

Gold Processing.

Of course, gold can’t be sold directly as it is mined. Mined gold is mixed with ores and should be extracted first then processed before it can be sold to gold buyers. Here are the processes of gold extraction and processing.

Gravity Concentration

\       Traditional gold miners often use the sluice box. This method uses gravitation by letting ore pass through a sluice made of wood or concrete which is covered with materials such as jute, carpet, or corduroy cloth, which captures gold grains when the ore and water mixtures passes through the sluice.

  2.        Amalgamation

Amalgamation is the process where mercury is used. Miners who practice whole ore amalgamation feed mercury in                  theballmills/rodmills immediately after the ores have been reduced into fine particles.  The rod mill is then turned on again for about an hour where mercury accordingly “captures” the gold. The mercury-ore mix are then removed from the drum and placed on a large basin, then transferred to a washing pan where water is added to retrieve the mercury that is believed to be loaded with gold. Some miners, on the other hand, first segregate the concentrates either by panning or gravity concentration before applying mercury. Mercury retrieved is squeezed using a piece of cloth to separate it from the gold. The remaining amalgam is blowtorched in a clay pot

3.         Cyanidation

Another method of recovering gold is through the carbon-in-leach, carbon-in pulp and heap leach systems where the cyanide solution dissolves the gold from the host rock. Carbon in leach method takes place for over 15 days after which the ore is run through a zinc oxidation process to extract the gold. This method is predominantly practiced in

Benguet.  

Mercury’s toxic threats and its harmful effects to the human body: What mercury can do to you

Mercury

Mercury poisoning can lead to skin irritation, fever, headaches, nausea, irritability, fatigue, loss of speech and memory, decline in sensory ability blindness, depression, kidney disease, tremors, brain damage, serious birth defects and even death. According to researches, mercury poisoning mostly affects the babies of pregnant women who are poisoned.

Largest mercury poisoning accident recorded

The most popular case of widespread methylmercury poisoning occurred in Minamata, Japan in 1956.  For about thirty years, a local industry had dumped around 75 to 150 tonnes of mercury into Minamata Bay poisoning fish and thousands of people. Hundreds of people died and many more were crippled for life. It was reported that an abnormally high number of children experienced symptoms similar to cerebral palsy and autopsies of the developing brains of those affected in the mercury tragedy show widespread damage to all areas of the brain. In the mid-60s, methyl mercury poisoning also occurred in Niigata, Japan with 47 cases and 6 deaths reported.

Local studies on mercury and its effects

Several studies have been conducted to probe the effects and impacts of mercury pollution due to 

small-scale gold mining in the Philippines. In 2008, a report which summarizes more than 30 

years of fish mercury research in Davao gulf, showed that mercury lowers children’s IQ levels 

for life. The report also demonstrated that fetuses and babies are particularly harmed by mercury in 

fish.

Mercury contamination in the Philippines

In 2005 the Davao Regional Office of the Department of Health (DOH) estimated that 13.5 metric tons of toxic mercury from ASGM flow annually through rivers into the Davao Gulf. Examination of fish samples from Davao Oriental, Davao del Sur and Davao City markets also revealed that they have mercury contents higher than the allowable limit of 0.3 microgram per gram. This makes fishes caught in the rivers of Davao Gulf inedible and dangerous to human health.

Sources: http://www.infomine.com/countries/philippines.asp

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Posted by: Jan Kristofer Estepa, 4CSA