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LEAF for Mining Areas also Provides Relief to Prison People Nearing Liberty (LEAF- Livelihood Enhancement Agroforestry) (Environment and economic significant article) PPP, metallurgist, forester 4238

The Intex Sustainability Team implementing and monitoring the Rubber, banana, coffee agoforestry. Atty Leo Cleto Gamolo, EVP Andy O. Pestano, ComRel & ComDev Manager Martiniano Regis, CREDO, Sablayan Field Manager Pedro P. Paqueo, Forester, CREDO Noel C. Otero, Comrel Sablayan Ernesto L. Caranzo, Comrel, Victoria, Field Manager

What is LEAF?.

LEAF means Livelihood Enhancement AgroForestry. It was lengthily written as Livelihood and Income Enhancement Agroforestry by its designer (PPP, forester). Intex Resources Philippines Inc. is projecting ideas for a sustainable community after mining. One of its moves is the funding and agroforestry model of Rubber, Coffee, Banana, and falcata with short term food security intercrops. This model is first in its kind in Mindoro. However some similar models were already established and successful in Mindanao, like: a) Coffee undercanopy and falcata upper canopy mix in the upland and watersheds of New Bataan Davao Del Norte, and in the occupied watershed of Claver, Surigao del Norte (PPP and PHILDHRAA 1992-96, b) Rubber double line alley with Durian and Abaca alley in Kabasalan Zamboanga Sibugay, c) Rubber double alley with coconut intercrop in parallel line in Siay to Kabasalan hilly land, Zamboanga Sibugay d) Rubber and banana alternate alley in several areas of Zamboanga Peninsula.

This Agroforestry design, by observation with similar designs in the past 20 years, significantly contributes to the enhancement and protection of the watershed, enhances biodiversity resources and fixes carbon dioxide (the wood and bark of the tree is a fixed CO2 that will stand for 50 years).

In the long term, say after 70 years of environmental-economic benefit use, climax species of dipterocarpaceae, araucariaceae and pinus (respectively from lower to upper elevation) will dominate and may naturally replace the agroforestry crops in the site if the final land use to be allowed, in reference to socio-economic and environmental considerations on those years, is climax forest.

I. Community Relations Ground Experience in the Sablayan Prison and Penal Farm see agonizing faces that stare at your eyes for a second or two, then bow down and look to the ground. The gesture suggests and communicates like this: sir, I am sentenced and severed. I am at your mercy as a slave. I am ready to do things at your command. The people I am describing are the prisoners of the SPPF we worked with who are at minimum category inmates (nearing liberty in the corrections and penal colony). Prisoners of minimum category in their ending year of prison service are exposed and made to adopt a free world to prepare them a normal life in their liberty, e.g., working in the farm areas (rice, corn, fruit trees, forest trees, and banana farms, carpentry, concretes, water manual hauling and other infrastructures). After a week in the farm, still the same gesture we observed (even unto these days). However there was a naturally emerging (positive) behavior, i.e., they started exchanging talks relative to the works in planting rubber, coffee, banana and camote. We are happy for the little development of persons’ gestures for the same signaled us that they are adoptive to the introduced works and communications for change. The people work rain or shine. We were with them working under the scorching heat of the sun (burning our skin to graphite), and under constant quenching and chilling rain (since June to November are rainy months in Sablayan Occidental Mindoro). In our agroforestry farm works (each with bolo, spade/shovel, digging bar), we shed glasses of sweat daily, we talked stories and laugh at jokes, we eat together, and communicated freely, but of course with supervising eyes of Prison Guards of the Bureau of Corrections. After two weeks, the common information and routine of rubber, banana, and coffee planting with camote intercrops were mastered by them: “They people of Sablayan Prison and Penal Farm are excellent worker”. We began working on Agroforestry Demonstration Farm on June 23, 2012, five days after the Memorandum of Agreement (MOA) was notarized, or eight days after it was signed by both parties: the BUCOR-Sablayan Prison and Penal Farm Administration as the second party and the Intex Resources Philippines Inc. (subsidiary of Intex Resources ASA Norway) as the first party. In my 20 years of forest, agroforest, and social development works, the inmate workers in Sablayan Penal Farm are the most adoptive and excellent workers I gone across. They can easily catch up instructions. At planting works they will observe your system, and the same were done by them, even if you are out of their sight. They are the best worker. They can be good leaders in farm sustainable development (personal experience, Pedro Paqueo, Forester 4238). Their knowledge and practices yielded high seedling survival. Statement of the People at the Penal Colony Masaya ako sa ginagawa natin dito. Sa Paglaya ko sana dito na ako sa pagtatanim sir. Mahihirapan akong makauwi sa amin. (Bong, from negros) Masaya ako, sa paglaya ko may mapupuntahan na akong trabaho. (Boy, from Kadis Negros) Maraming salamat po sir. Hahanapin namin kayo sa aming paglaya at magpatulong kami sa inyo kapag kami’y magtatanim ng rubber saging at kape sa ganitong pamamaraan (Inmates from Nueva Ecija and Tarlac). Maraming salamat po sir. Natuto kaming magtanim ng rubber, saging at kape sa ganitong paraan na mayroong madaling makain. Sa aming paglaya at sa aming bagong buhay magagamit namin ito. Salamat po sa inyo sir. Bihira po ang mga taong may magandang loob para sa tulad namin. Sa tutoo po masaya kami na nakapagpadala din kami sa aming pamilya mula dito sa trabaho at pagtatanim ng rubber, saging at kape. These statements are common to most of the people in the penal farm we worked with (Bureau of Corrections, minimum prison service category). The general feeling is that they are happy working with the Intex Staff, planting the rubber, banana, coffee and camote. They are happy with our agroforestry model establishment. Masaya sila nakapagpadala sila sa kanilang mga pamilya weekly or every 15 days (The Supervising Prison Guards Rey Tandoc and Mamerto Nicholas).

II. The LEAF Project (Extracted from the executive summary of the proposal, ppp) This Multistorey Alley Cropping Agroforestry Plan could be one of the significant contributions of the mining industry to the Department of Environment and Natural Resources (DENR) for the National Greening Program, climate change mitigation, carbon sequestration, sustainable livelihood and enhanced income, and food security. Aglubang Mining Corporation’s (AMC’s) initial commitment is the promotion, training, capacity building and provision of seedlings of various trees and fruit trees targeting at least one million seedlings. The President of the Republic of the Philippines has a program of planting billion trees in a million hectare land. We, the exploration and mining company have legal commitment and business moral to care for trees and the environment. In the second state of the nation address (SONA) of the President of the Republic of the Philippines, His Excellency Benigno C. Aquino III, it was mentioned that the many decade rampant illegal cutting of trees were the cause of flooding in low lying areas. In the past years, trees were planted but nobody cares whether the same are growing and standing to control erosion and flood. He made mention that one of the solutions under study is to make the growing and caring of trees economically beneficial to the citizens, specifically the needy. The citizens who will plant and care the trees unto sustained growth can be given seedlings of cacao and coffee to be planted and bear fruits for living and livelihood. At any time as they wait for harvest, they will be given stipend so that they objectively maintain and protect the trees. Informal settlers in urban areas may benefit from this mode. His Excellency summarily said: “We will invest to our citizens while investing to the environment”. In Mindoro, illegal cutting of trees and kaingin are rampant exposing the mountains to direct rain forces causing erosion and flashfloods both in Occidental and Oriental Mindoro. This is the experience of Mindoro for many decades. Majority of the population in Mindoro lack alternative income. Environmental degradation cornered both the tagalogs and mangyans to extreme poverty. There are no industries that offer alternative jobs. Traditional agriculture (rice and corn) is saturated with workers, and at low compensation. Mindoro has vast unused land. There is a mangyan community with ancestral domain of which their occupied large tract of land has poor to zero productivity. The land is degraded continuously by destructive/slash and burn agriculture. On the idea of business ethics and observing corporate social responsibility, the presence of Intex Resources Phils Inc. (IRPI) in Mindoro offers an opportunity. The Mindoro nickel project it studied and proposed for development offers the greatest potential of Mindoro to improve economically and care for the environment. The strategy is to relate with the site communities, mobilize them to know their needs and priorities, consult the government for a responsive plan and commit targets for planting materials, technical assistance and working models of food security, sustainable income and tree care. We already have plan for the one million seedlings growing/production in agroforestry nurseries. It may cost us four million pesos (P4,000,000) at the minimum. These million seedlings may be equated to 900-1000 participating households that may translate 900-1000 hectares of land to be grown with trees. Additional plan prepared herein is an agroforestry development. This plan could be the best mode in rehabilitating marginal and degraded land and mined out areas ensuring food security, protect tree, better alternative work and sustainable income. The cost of this agorforestry is P81,660/ha, that is for multistory-alley cropping of rubber, coffee, banana/abaca and falcata, with cassava intercrops in the first two years. (Cacao on the hand other shall be planted as intercropped to rubber but without the banana). If we project a ten hectare model or development laboratory to train and educate community on sustainable and environmentally enhancing livelihood, it would cost us P816,600. This will make our food security and environmental support initiative to a an approximate total of P5,000,000 (seedling growing and agorforestry laboratory). Cassava assures food security and few cash earnings in the first two years. Banana ensures food security of the household beginning third year, and unto the tenth year (even beyond) and enures few cash earnings. Coffee ensures cash earnings beginning the fourth year, in addition to the banana earnings. Rubber starts latex harvest on the 5th or 6th year. Its income in the first two years of latex collection can pay off the development cost of P81,660/ha at year six and year seven even with 24% interest charge (this can be a good idea to move CCT-DSWD at objective and sustainable mode, in rural communities category). On year eight, the cash income of rubber will accrue fully to the lot owner. In the benefit-cost analysis, two systems are prepared, no interest rate and with 24% interest rate (usual charge in rural banks). On the 24% interest rate benefit-cost analysis, the preferred analysis period is ten years, making favorable benefit to investors for 2 years (year 9 and 10). But this 10-year income and payback projection may not be followed. Instead the lot owner may pay fully the cost on year six and year seven as he accumulates cash from latex collections. Year six is the time when the cash flow of the agroforestry model is positive, and the initial cash income from rubber latex at P285,000/ha is enough to pay-off the development investment. However, the purpose of 10-year project cost and benefit analysis is to provide an elbow room if in case rubber latex prices fluctuate unfavorably, which has a history of two to three years recovery. (this may START A NEW INDUSTRY IN MINDORO which can be viewed as agroforest-industrial base)??? If it happens that the citizens fully grasp the mode and may invest to it, the project is feasible at 24% interest rate, pay back at year six, and raked an enhanced income of not less than P285,000 per hectare per year (P33/kg, lowest price of latex the past 5 years). Nationally, to move this initiative massive and fruitful in the initial stage, a formula to be utilized can be the idea and program fund of the Department of Social Welfare and Development on conditional cash assistance.

III. The MOA of Intex and BUCOR The Memorandum of Agreement of the Bureau of Corrections (BUCOR)-Sablayan Prison and Penal Farm (SPPF) and Intex Resources Philippines Inc. (IRPI) was explored for four months (January to April 2012), initially reviewed on LEAF Launching on May 23, 2012 finally signed on June 5, 2012. The LEAF plan however was conceptualize a year before, on the idea of answering concerns on mined out areas, and other unproductive marginal land, and contribution to the national greening. The IRPI as first party of the MOA provides technology materials and funds for full development of rubber, coffee, and banana agroforestry with camote or vegetable intercrop in the first two years. The BUCOR-SPPF provides land to be developed as model, and labor from the prison near to be freed. The agreement continues to its sustainability expansion, harvests, and gain sharing with BUCOR-SPPF and Alayansa Laan sa Kalikasan at Kaunlaran Laban sa Kahirapan (ALASKA) a federated community organization assisted by IRPI. This MOA is first of its kind operating in Mindoro. Even if there is no mining operation the IRPI funded the same on its commitment to national greening, for an insured and tangible system of environmental protection and mined out areas vegetative rehabilitation.

IV. The working conditions in the field. The working conditions in the site need as well with usual farm house, kitchen, sanitation water, and food. Relative to that need, the management installed an agroforestry farm and training house to be furnished for its function. The furnished farm and training house serves as safety instruction center for the farm worker, accommodation of lecture hall of agroforestry visitors and researchers.

V. The Hope of Sablayan Prison and Penal Farms BUCOR-SPPF hoped to finish the LEAF model, expand the development, train and prepare the prison people nearing liberty unto totally change person, i.e., responsible and productive citizen contributing to the sustainable development of Philippine nation.

VI. The Hope of Intex Resources Philippines Inc. Intex hope to finish the model in a year and create a vegetative ground cover within six months from the vegetables/tubers/ground creeping intercrops, half close plantation middle crown cover from banana by the end of year 2, half close lower crown cover from coffee by year 4, and half close upper crown cover form rubber by year 7. The diversity of crops and 3 crown shading system (observable beginning year 3) provides the generations of leaves and roots biomass important in water retention and control of soil erosion, By year 10, the model almost mimic the crown layering of tropical rain forest, and provides refuge home and food to some birds and animals. And if this model is adopted, watersheds (technically), significantly improve in matter of 3 years. Intex hoped to illustrate the model to be food secured and generate few cash (P15,000/ha/year from camote) in year 1 and 2, food secured and generate more cash from the harvest of banana (38,400/ha/yr from banana) from year 3 to year 15 (or more years), more cash income (P19,200/ha/yr) from the harvest of coffee beginning year 4, and enhanced income from rubber (isoprene) harvest beginning year 6. Rubber income may start at P178,200/yr/ha (P20/kg latex), improved to P285,120/ha/yr (P33/kg latex), and may reach P450,000/ha/yr (P70/kg latex). Summarized Analysis at 24% interest rate (Development by Loan Fund) (interest rate may count up to 9th Year amortized from year 7 to 9) (the rubber income at year 7 may totally pay off the Loan Fund) 1. Benefit Cost Ratio, BCR 1.02 2. Net Present Value, NPV 6,471 3. Financial Internal Rate of Return, FIRR 24.63% 4. Economic Internal Rate of Return, EIRR 25.81% 5. Environmental, Economic Internal Rate of Return, EEIRR (approx envi values) 30.32% 6. Return of Investment (payback period), ROI or PP (+ financial benefit flow) 6th Year 7. Return of Economic Benefits, REB (+ economic benefit flow) 6th Year 8. Return of Environmental Benefits, REEB (+ Economic environmental benefit flow) 4th Year 9. Permanent mix tree-agri vegetation for 30-50 years providing livelihood, biodiversity home/refuge, climate mitigation and environmental protection

Summarized Analysis at no interest rate (self investment, non loan) (Number 1 and are only the most important for self investing persons) 1. Benefit Cost Ratio, BCR (no interest rate) 1.83 2. Income per year (range) P285,000 to P450,000 3. Net Present Value, NPV (pesos) (no interest rate) 875,540 4. Financial Internal Rate of Return, FIRR 24.63% 5. Economic Internal Rate of Return, EIRR 25.81% 6. Environmental, Economic Internal Rate of Return, EEIRR (approx envi values) 30.32% 7. Return of Investment (payback period), ROI or PP (+ financial benefit flow begins) 6th Year 8. Return of Economic Benefits, REB (+ economic benefit flow begins) 6th Year 9. Return of Environmental Benefits, REEB (+ economic environmental benefit flow begins) 4th Year 10. Permanent mix tree-agri vegetation for 30-50 years providing livelihood, biodiversity home/refuge, climate mitigation and environmental protection Other Assumptions (in addition to the Establishment Cost): Colored yellow are used in the computation) Raw Latex Price, farm gate (current 2011) P85/kg Raw Latex Price, farm gate (lowest the previous 5 years) P33/kg Lowest Latex price to break even at family based labor P15/kg Rubber Density per ha (arranged in alley, lines) 720 Rubber Latex per tree per month (average) 1 kg Rural Labor (but usually at pakyaw or daily contract) P200/day or family based labor of rubber harvest cost per kg latex P10/kg 3 Year estab Cost (with food security measures to farmer/worker) P81,660/ha Rubber Tree Latex productive life span original stem grown 6-50 years Rubber Tree Latex Productive life span, budded 8--30 years Coffee Density per ha. 320 Coffee beans harvest per tree per yr 1 kg Coffee harvesting and processing to dry beans P5/kg Coffee Beans price, dry (farm gate) P60/kg Coffee Bean price, dry (public market) P85-95/kg Banana Density per ha 320 Banana stems harvested per year per hill 3 Banana Kg per stem (10-30 kg/stem) 10 kg Banana harvesting cost per kg P0.5 Banana price per kg, farm gate P4.0 Abaca (substitute to banana have different costs) Project Study, Design, Financial, Economic and Environmental analysis (BCR, NPV, FIRR, ROI) was prepared and presented to the IRPI management by PPP, approved and funded P881,660 per 10 ha per year and expand unto mining operations. The Intex Sustainability Team implementing and monitoring the Rubber, banana, coffee agroforestry. Atty Leo Cleto Gamolo, EVP Andy O. Pestano, ComRel & ComDev Manager Martiniano Regis, CREDO, Sablayan Field Manager Pedro P. Paqueo, Forester, CREDO Noel C. Otero, Comrel Sablayan Ernesto L. Caranzo, Comrel, Victoria Field Manager

Works shedding sweats, open at scorching heat of sun and chilling cold of rain