DENR cites Masbate mine as model for rehab, community development

Posted on November 14, 2016
http://www.bworldonline.com/content.php?section=Economy&title=denr-cites-masbate-mine-as-model-for-rehab-community-development&id=136281

THE Department of Environment and Natural Resources (DENR) is holding up as an model for the mine site rehabilitation process Filminera Resources Corp., a metals miner threatened with suspension after a government crackdown against substandard environmental management practices.

Masbate mine

“The company did a good job at rehab. And I love the entrepreneurial spirit where the community is making products... I love the attitude of the company -- at the willingness to fix things,” said Environment Secretary Regina Paz L. Lopez in a mobile message over the weekend. She was referring to Filminera’s gold project in Masbate.

Asked if she sees Filminera as a possible role model for the development of the mining industry following her visit to the mine on Friday, Ms. Lopez responded positively, on condition that the miner resolves certain “community problems.”

“There are community issues but it can be addressed. The communication lines between the company and the community need to improve and DENR can help here,” she added, noting that the department will help the firm maximize the use of its funds for its social development and management program (SDMP) to the extent that the company can make “a massive impact in the area.”

“If they play their SDMP funds well then everyone is happy... Now that’s a model. Right now there were rallies there and people are very unhappy. But it can be fixed,” Ms. Lopez added.

Earlier, Ms. Lopez said she intends to intervene on the matter of how miners use their social development and management program funds (SDMP) to benefit more people “far beyond their host communities.”

The SDMP, which requires miners to set aside the equivalent of at least 1.5% of operating costs, is a comprehensive five-year plan committing the mineral concession holder to the sustained improvement in the living standards of the host and neighboring communities.

Filminera was one of the 20 miners whose operations the audit recommended for suspension based on environmental violations and/or unresolved social development issue.

Audit teams reported that the firm was operating without an approved three-year development/utilization work program and has not paid mine waste tailings fees as it awaits a pending request for exemption from these fees. It was also found to have violated certain mineral laws.

Ms. Lopez, however, has said that miners identified for possible suspension may avoid the crackdown on irresponsible mining if their have no or minor environmental violations.

Asked how many of the 20 new mines can still escape possible suspension, Ms. Lopez declined to answer saying it may preempt the results of the audit which is now in its final phase.

The 20 miners and the 10 more suspended prior the launch of the environmental audit on July 8, make up nearly three-quarters of the country’s metals miners.

The mines suspended or recommended for suspension make up 55.5% of last year’s Philippine nickel output.

Ms. Lopez’s recent tour to Filminera’s Masbate Gold project is her first mine visit as Environment Secretary.

The mine is in the municipality of Aroroy, Masbate Province, whose rise to first-class municipality status has been attributed to the contribution of large-scale mining operations in the area.

Ms. Lopez has expressed her intent to visit, among other sites, Nickel Asia Corp.’s Rio Tuba Nickel Mining Corp. (RTNMC) in Palawan and Semirara Mining and Power Corp.’s Molave coal project in Caluya, Antique. -- Janina C. Lim