Miners hit back after new round of bashing

by Jonathan L. Mayuga - August 2, 2016

http://www.businessmirror.com.ph/2016/08/02/miners-hit-back-after-new-round-of-bashing

The Chamber of Mines of the Philippines (COMP) on Tuesday vowed to step up efforts to promote responsible mining, after President Duterte called on miners to shape up, then took a jab at the government for belittling the industry’s contribution to the economy.

COMP, the group of large-scale mining companies operating in the Philippines, said the government is getting “more than its fair share” of mining profits.

In a statement, COMP said the Foreign Technical Assistance Agreement (FTAA) provides for a 50-50 sharing formula with the government. The statement, issued by COMP Communication Manager May S. Cacdac, added that when there is a windfall profit, the government still gets an additional share of 60 percent, when the windfall is over 50 percent.

Under the Mineral Production Sharing Agreement (MPSA), the government gets a 45-percent share of earnings, depending on the prices of commodities. When prices are low, COMP said the government still gets more than mining firms.

“The prevailing assumption that government only gets 18 percent from mining operations is completely false and baseless,” COMP said.

According to COMP, it is “covered by a strict edict to safeguard our people, environment and country’s interests,” and vowed to continue to abide by the law and support the Duterte administration’s effort to weed out the irresponsible miners who conduct their business without regard for the law.

COMP also welcomed the appointment of Mario Luis Jacinto as Mines and Geosciences Bureau (MGB) director.

“The MGB and the industry will surely benefit from the qualifications and years of experience of Mr. Jacinto,” COMP said.

The group issued the statement after Mr. Duterte told mining companies to strictly follow environmental rules and regulation or face closure.

Mr. Duterte said he is willing to forego revenues from mining, which he pegged at P40 billion a year, if mining companies would not shape up.

The President’s statement came a day after the Consunji-led DMCI threatened to stop all its nickel-mining operations in the Philippines because of Environment Secretary Regina Paz L. Lopez’s campaign against
irresponsible mining.

Mr. Duterte also defended Lopez against her critics who accused the official of “unfairly” targeting large-scale mining companies.

Lopez has launched a mining audit and had so far ordered four nickel-mining companies— two in Zambales and two in Palawan—suspended for causing environmental destruction and people in mining communities to suffer.