Anti dummy law protects the Philippines from unlawful use and exploitation having in its name or under its control, a right, franchise, privilege, property or business, the exercise or enjoyment of which is expressly reserved by the Constitution or the laws to citizens of the Philippines for at least at least 60% of the capital of which is owned by such citizens and maximum of 40% for a foreign investors but the Chinese mining firm paid the local people as dummy to virtually own the 60% while controlling 100% full real ownership. Section 3. - Any corporation or association violating any of the provisions of this Act shall, upon proper court proceedings, be dissolved and offering rewards 25% to the informer in Section 3-A. If dummy will come out they would have a chance to own 25% of these whole Chinese illegal investment and 75% would be turnover to the government.
The five machinate under cover of the People's Small-Scale Mining Act of 1991. Such wee mines are for subsistence quarrymen who use only brawn, mini-crushers, hand picks, and shovels. Anything but puny, the five Chinese fronts use sophisticated excavators, drills, crushers, and explosives. With the heavy ordnance, they level mountains for tens of thousands of tons of nickel ore a day. (A small-scale mine is limited to only 50,000 tons in its lifetime.) Residents of Sta. Cruz cry that the Chinese mines have denuded the forest watersheds, and poisoned farmlands, rivers, sea, and air. Townsfolk of adjacent Masinloc, Zambales, and Infanta, Pangasinan, also suffer. Muddied coastal waters drive small fishermen farther out to sea. But in the vicinity of Bajo de Masinloc, Chinese warships shell them back to shore.
The Philippines is now China's main source of nickel. The five Chinese mines in Sta. Cruz contribute a sizeable portion. Although no exact figures can be obtained – small-scale mines operate under local government licenses, beyond the scope of the Mines & Geosciences Bureau – locals observe at the common wharf the departure of four ore-laden Chinese bulk carriers per week. China processes the nickel into hi-tech weapons and surveillance systems – to sabotage the Philippine military and economy into submission. The Sta. Cruz-Masinloc-Infanta highway is called the "dump truck capital of the Philippines." Thousands of trucks' tailpipe emissions and ore-load dust pollute the air to alarming levels. Field monitors of the Department of Environment and Natural Resources reported on Nov. 15, 16, and 27, 2012, suspended particulates of 208, 727, and 824 micrograms per cubic meter, respectively, on the highway. Maximum tolerable is 90.