August 24, 2016
There is hope for the
big players in the mining industry, amid the crackdown launched by Environment
Secretary Regina Paz L. Lopez versus irresponsible mining operations, with over
100 new projects being reviewed by the Duterte administration.
In fact, Environment
Undersecretary Mario Luis J. Jacinto said the ongoing mining audit—first
thought to be Lopez’s way of curbing mining operations in the country—will
eventually benefit large-scale miners who responsibly do business in the
Philippines.
Jacinto said the Mines
and Geosciences Bureau (MGB) is now reviewing more than 100 mining applications
that were put on hold by the Aquino administration.
“We will, on the basis
of existing operations, submit our policy recommendations and the directions to
take [on the review of new applications]. On the basis of that, then a review
of the permitting processes will have to be undertaken and then deliberate
decision on how to proceed with it; what is allowed, what should be restricted
will be put in place,” he said.
In
2012 then-President Benigno S. Aquino III signed Executive Order (EO) 79
effectively putting on hold the processing of new mining projects until a new
revenue-sharing measure has been put in place by Congress.
“We have rich mineral
resources, we have large ecosystem, so it is a fragile ecosystem. We have
resources that are God-given, so we must make very deliberate decisions on how
to best utilize them. And what will be the best land uses for all the areas,”
Jacinto added.
The applications for
exploration, transport, export and all other mining-related permits including
agreements, already reached “hundreds” since the moratorium was imposed, the
Department of Environment and Natural Resources (DENR) official said.
“We are now doing the
assessment; we are waiting for the results of the audit first then we can take
it from there,” Jacinto added.
The government, through
the DENR-MGB, is doing an audit on all mining operations in the country, which
already led to the suspension of 10 large-scale mines.
“We now expect to get
the comments in the audit and the recommendations and then it should turn out
to be a good jump-off point for industry monitoring,” Jacinto said.
Data from Chamber of
Mines of the Philippines (COMP) showed that the mining sector could infuse
around $20 billion to $30 billion to the economy over the next five to 10 years
with the inclusion of new projects.
The group’s latest
breakdown showed that the combined mining investments expected this year stands
at $2.25 billion. The country is also anticipating projects with a combined
value of $6 billion in 2017. In 2018 mining investments are expected to
go as high as $14.75 billion.
This year, the projects
that are expected to be operational are those of Asiaticus Mining Corp. in
Davao Oriental and Global Ferronickel Holdings Inc. in Palawan. To be
followed by Philex Mining Corp.’s Silangan project in Surigao del Norte,
Nadecor’s Kingking project in Davao del Norte, the Balabag Gold-Silver project
of TVI Resource Development Philippines Inc., which are all expected to take
off in 2017.
In 2018 projects
targeted for operation are the Tampakan Mine development of Sagitarius Mines in
South Cotobato, the project of Intex Resources in Mindoro, the Masbate gold
project of Philsaga Mining Corp., the nickel-mine project of San Miguel Corp.,
through Philnico in Surigao del Sur, and the Balatoc Mines project of Benguet
Corp.
As of now, the sole
project expected in 2019 is the Far South East Gold project of Lepanto Mning
Corp. in Benguet.
Jacinto advised
investors to make sure that they are compliant before investing in mining in
the Philippines. “If you put in that kind of investment, then you also make
sure that you are compliant. Because it is useless if you put that
kind of investment and you are not compliant,” he said.
There are four
considerations for mining operations to continue in the Philippines under the
Duterte administration, he said.
“It should be
technically feasible; it will be environmentally compliant, socially acceptable
and financially viable. Any of the imperatives absent, then it means it is not
time to mine,” he added.
He said there are
companies that existed for almost half a century and they have complied with
the highest standard of mining, which other mining companies can emulate.
The mining audit, he
said, will be completed by the end of the month. The DENR chief, he
said, will always have the final say whether a mining operation should continue
or stop, based on the new mining audit criteria.
Jacinto represented
President Duterte in the ongoing Mining Philippines 2016 Conference and
Exhibition in Pasay City.
During his speech,
Jacinto said, while news headlines over the past weeks highlighted alleged environmental
violations of miners, suspensions of mining operations and show-cause orders,
he sees the audit as “a blessing in disguise to responsible miners who have
religiously followed and are compliant of mining and environmental laws,
rules and regulations.”
“Those who have clearly
violated the terms and conditions of their contracts; taken shortcuts; largely
ignored the adverse impact of their operations to their host communities;
polluted waterways so essential to the productivity of farmers and fisherfolks;
and threatened the very survival of people who should benefit from mining from
these economic activities are the ones who have to face sanctions for their
irresponsible acts,” he said.
irresponsible acts,” he said.
Jacinto’s remark
referring to COMP participants as “responsible miners” receive loud applause
from conference participants.
“It was an excellent
speech,” said Jose Leviste, president of OceanaGold (Philippines) Inc.
COMP Vice President for
Legal and Policy Ronald Recidoro said apparently, “Jacinto knows the language
of responsible miners.”
COMP President Benjamin
Philip G. Romualdez remains optimistic of the prospects of responsible miners
under the Duterte administration.
Romualdez, the
president of Benguet Corp., assured Jacinto that the COMP will follow the law,
and we will engage in responsible mining, using only the best practice
available to ensure that our host communities and the environment will thrive
under our care.
“We are not afraid of
the ongoing audit of the DENR. We welcome it! We welcome this purging of illegal
and noncompliant mining operations. We have always operated under some of the
strictest laws and we believe that if you cannot obey these laws, you should
not be in this industry,” he said.
However, he said the
mining industry does not need a new law, adding that the existing mining
law is one of the best in the world today, because it already integrates
stringent rules on the environment and caring for the local communities.
“What is needed is
strict and fair enforcement of a stable policy regime that promotes the long
term stewardship of our environment and natural resources,” he said.
He said COMP has always
maintained the highest standard of professionalism in the conduct of business.
“As a highly regulated industry, we seriously follow the Mining Act and all
regulatory rules of the DENR.”
Romualdez said of the
21 member-companies of the COMP currently operating today, 17 have already
secured ISO 14001 certification for their environmental management systems.
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