DENR sees mine audit results released in Nov.

Posted on October 26, 2016
http://www.bworldonline.com/content.php?section=Economy&title=denr-sees-mine-audit-results-released-in-nov.&id=135429

THE Environment department has once again delayed releasing the results of its environmental-compliance audit of metal mines.

“Maybe first week of November,” said Environment Secretary Regina Paz L. Lopez in a phone interview late Monday when asked about the department’s timetable for releasing the results of its two-month long review.

The agency has so far sent out to 16 mining companies, including some facing suspension, the results of their respective reviews and letters asking them to explain the findings.

“Although it is noteworthy that as of today (Monday) we have had two responses,” she added.

Ms. Lopez said she is set to sign the issuance of 22 more individual reports, including those to miners being recommended for suspension and those that were found to have compliance issues not serious enough to merit suspension.

Global Ferronickel Holdings, Inc. President Dante R. Bravo said that the delays affect some miners more than others.

“If it involves a listed company, definitely the prospect of suspension (creates) uncertainty... for unlisted companies the concern is primarily continuity of operations, he said in a phone interview on Tuesday.

Mr. Bravo noted that the company whose subsidiary Platinum Group Metals Corp., one of the 11 miners that were not singled out for suspension, has not received any letter or reports but will address the findings once received.

The Chamber of Mines, however, reiterated its earlier stance that the accuracy of the findings is more crucial.

“It’s not really so much on the delay but more on the accuracy of the report,” said CoMP’ Vice President for Legal and Policy Ronald V. Recidoro in a phone interview on Tuesday.

Mr. Recidoro added that those recommended of suspension are absorbing “damage to their reputations.”

To cite a the latest case filed against the regulator in light of the audit, listed Lepanto Consolidated Mining Co. filed graft and corruption charges against former Environment OIC, Undersecretary Leo L. Jasareno who headed the audit before being relieved by President Rodrigo R. Duterte.

The firm alleges that Mr. Jasareno’s announcement on Sept. 27 when he revealed the initial audit results were at variance with the audit team’s finding of compliance with environmental regulations.

The announcement, according to the firm, “besmirched the good reputation of Lepanto as a responsible mining company” pulling down share prices.

The mines suspended outright of recommended for suspension account for 55.5% of the country’s nickel output last year. -- Janina C. Lim