February 13, 2017 |
THE Department of Environment
and Natural Resources (DENR) has ordered the closure of 23 mining firms and the
suspension of five others for violations of environmental laws and regulations.
As in all such major government actions, there are pros and cons that the
government must now consider in the national interest.
DENR Secretary Gina
Lopez ordered last July a review of the operations of the 41 metallic mines in
the country. After three months, the Mines and Geosciences Bureau, which
conducted the audit, reported its findings. Only 11 companies had passed the
test, while 30 were either suspended or recommended for suspension for failing
to meet environmental safety standards. This month, Secretary Lopez said 23
mines had been ordered closed for illegally encroaching on watersheds, leaking
wastes into rivers, and destroying trees.
These are environmental
violations that affected the lives of the people living near the mine sites,
and Secretary Lopez, long known for her crusade to save the environment, acted
quickly and decisively in her capacity as the new DENR secretary.
There are, however,
certain ill effects of outright closure of the mines.
Most of the mines
ordered closed were nickel mines, producing half of the country’s exports of
the ore, mostly to China. In 2015, the Philippines produced about 24 percent of
the nickel used worldwide to produce steel. The companies have an annual
production estimated at R66.6 billion a year. They pay the national government
P16.7 billion in taxes.
Local governments in
the provinces where the companies operate – Benguet, Nueva Vizcaya, Palawan,
Cebu, Bulacan, Zambales, Eastern Samar, Dinagat Islands, Surigao del Norte, and
Surigao del Sur – stand to lose a total of over R441 million yearly in real
estate taxes, local business taxes, mayor’s permit fees, regulatory and
administrative fees, and occupation fees. The LGUs also stand to lose their
R211-million share of mining taxes collected by the national government.
Over 1.2 million
workers stand to lose their jobs if the 23 companies are closed down, according
to Chamber of Mines of the Philippines Chairman Artemio Disini.
Environmentalists have
come out in support of the DENR action, but the emerging ill effects of closure
have moved President Duterte and his Cabinet to decide to listen to the mining
companies as they respond to the charges or offer to make necessary remedies to
comply with government standards. Of special concern to many are the thousands
of jobs that will be lost, at a time when the country needs many more jobs to
help solve the problem of mass poverty in the country.
Closure of the mines
may not be the best answer. The violations came about and continued because
previous officials did not do their jobs. This is specially true in the case of
the mines found to be operating in watersheds. It may be expensive, but the
mining companies, we are certain, are ready to institute the necessary remedies
so they can continue operating in full compliance with all our environmental
laws.
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