Friday, September 16, 2016

Mining firms getting antsy over delay in audit results



Posted on September 16, 2016

MINING companies are calling for the release of the mine audit results as soon as possible, in order to give a signal as to where the industry is headed under the Duterte administration.
“We would support the release of the audit results as soon as possible... So collectively, as an industry, we can move forward with whatever plans we will have for this year and in the next years under the Duterte administration,” said Francis G. Ballesteros, Jr., head of Philex Mining Corp.’s Public and Regulatory Affairs, in a phone interview on Thursday.

The country’s two biggest nickel miners, Nickel Asia Corp. and Global Ferronickel Holdings, Inc. (GFNI), shared the same sentiments and expressed confidence their respective operations will get favorable results from the audit.

The release of the results of the Environment department’s nationwide audit of mining companies, initially scheduled in August, is spooking the already troubled industry, according to an analyst.

“These delays introduce, uncertainties to an already shaky market. Companies’ investments and other business decisions may be pulled or held back until the results are released,” Justino B. Calaycay, Jr., head of marketing and research at A & A Securities, Inc., said in a mobile message.

However, Environment Undersecretary Leo L. Jasareno, who heads the audit team, said the review process now on its final stages.

Di naman na-delay. Nasa stage na ng final review lahat ng reports (There are no delays. All the reports are now in the final review stage),” he said in a phone interview.

Mr. Jasareno assured that reports from the 16 mine audit teams deployed nationwide have been received at the central office before the end of August.

Environment Secretary Regina Paz L. Lopez earlier said the results of the review of the country’s 40 metallic mines, which started in July, are expected to be released by the end of August.

Mr. Ballesteros said they are “very optimistic” that Philex Mining’s Padcal mine in Benguet will pass the audit.

Jose Bayani D. Baylon, vice-president for Corporate Communications of Nickel Asia, said the listed firm “remains focused on their business plans which are flexible enough to adapt to any surprises both internal and external.”

Asked on whether the long wait for the audit results has troubled the company, GFNI President Dante R. Bravo said in a mobile text message: “There might be some uneasiness to some.”

So far, the Department of Environment and Natural Resources (DENR) has issued suspension orders to ten mines, eight of which are nickel miners that make up 8% of the total nickel output of the Philippines, the world’s top nickel exporter.

“We would rather the audit be done fairly and professionally regardless if it’s released this month. It’s not so much on time but on the way it’s done,” Chamber of Mines of the Philippines’ Vice-resident for Legal & Policy Division Ronald S. Recidoro said in a phone interview.

Mr. Recidoro also raised concerns over the DENR’s inclusion of members from anti-mining civil society organizations in the audit teams.

The scientific and technical aspects of the review were taken “fairly” but the agency’s metrics on social acceptability has raised worries since the latter “is something relative,” Mr. Recidoro added.

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