by Madelaine B. Miraflor September 28, 2016
Policy recommendations
that will pave the way for new mining projects will be out by year-end,
something that may offset the potential shortfall in the country’s nickel
production resulting from the government’s crackdown on existing operations.
This after only 11
companies out of 41 metallic mines have passed the Department of Environment
and Natural Resources’ (DENR) nationwide audit.
Mines and Geosciences
Bureau (MGB) Director Mario Luis Jacinto said that policy recommendations that
will possibly lead to the abolition of Executive Order (EO) 79 will be ready by
the end of this year.
Under EO 79, no new
mineral agreements shall be approved until a legislation rationalizing existing
revenue sharing schemes and mechanisms shall have taken effect.
“The review is ongoing
and we are still consulting with various groups and getting their inputs. We
should have clear recommendations on policy options by year-end,” Jacinto told
Manila Bulletin.
“The mine audit results
will be most useful on determining pro-active alternative courses of
action to pursue,” he added.
When asked if the
government can start accepting new projects as early as next year, Jacinto said
it will depend on how long the legislation process will be.
“The amendments, when
already proposed, will go through the legislation process. Timetable for
amendment will be the prerogative of Congress,” Jacinto said.
Jacinto earlier said
the result of the mining audit will serve as a “good jump off point” as to
where the mining industry is going in this administration.
But he specified that
as long as Memorandum Order 2016-01 signed by DENR Secretary Gina Lopez still
stands, the moratorium on new mining applications still stands.
Meanwhile, miners,
including the members of Chamber of Mines of the Philippines (COMP), have
expressed disappointment over the results of the government’s audit findings.
Out of its 21 members,
eight members of COMP are recommended for suspension namely Benguet
Corporation, OceanaGold Philippines Inc., Hinatuan Mining Corp., Lepanto
Consolidated Mining Corp., Filminera Resources Corp., Marcventures Mining and
Development Corp., Agata Mining Ventures, Inc., and CTP Construction and Mining
Corp.
COMP Vice President for
Policy Ronald Recidoro lamented how the whole mining audit was done in a
punitive manner rather than objectively.
“When you suddenly
change the rules of the game, there should have been an earlier dialogue
between companies and the DENR given that the audit report was already finished
in August. As early as August, the alleged violations could have already been
addressed instead of setting a trap for suspension,,” Recidoro said.
This was following the
pronouncement of DENR Secretary Gina Lopez to meet with the representatives of
mining firms with show-cause orders tomorrow (Thursday).
Mining firms with
show-cause orders were given seven days to explain why their operations should
continue following alleged violations against the environment and lack of
social acceptability.
Recidoro said mining
companies are receptive to the call of Lopez for a dialogue with them.
“We stand by our
member-companies. We are optimistic that these alleged violations will be
addressed properly and in a timely manner,” he said.
For its part, Benguet
Corp. expressed its surprise and takes exception to the findings and
recommendation of the DENR to suspend the company due to non-rehabilitation of
the Antamok open pit.
Benguet Corp. argued
that it has continuously exerted efforts to initiate projects including
converting it into a Bulk Water Project, and a Waste to Energy facility.
“Local government units
have in fact requested and endorsed the pursuit of the projects, signing
Memorandum of Agreements with the company as early as June 2016. While the
company recognizes there was delay in the rehabilitation of the open pit for
reasons beyond its control, it has not abandoned it,” the company said.
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