Published January 2, 2017, 10:00 PM By Madelaine B.
Miraflor
As if 2016 was not yet bad enough
for them, mining companies will have every reason to be more cautious in 2017
as the Department of Environment and Natural Resources (DENR) plans to start
the year by suspending them.
If last year the DENR failed to
suspend as many companies as Environment Secretary Gina Lopez wants, the DENR
chief will make sure that within this month, more mining operations will close
down.
Lopez said in an interview that the
results on the nationwide audit on mining companies will be disclosed by the
second week of January, adding that she expect more miners to be suspended in
2017.
Ever since Lopez officially took
over the agency in July, she’s already been eager to shut down mining companies
that she believes are not compliant with environmental standards.
In the same month, she called for a
nationwide crackdown on mining firms, which has ended in August.
By September, 20 mines faced
possible suspension for environmental violations, unsystematic mining methods,
and outstanding social issues. These are on top of the 10 suspended mining
companies, eight of which are nickel producers.
The number of suspended mining
operations plus those facing suspension represents about three quarters of the
total operating mines in the country.
Of these 30 mines, 18 are nickel
producers that account for 55.5 percent of the country’s total nickel ore
output based on 2015 production.
As of now, DENR is now more than
three months behind its target schedule in announcing the list of mining firms
that should be suspended.
Amid the delays, many industry
sources doubted the agency’s capability to ever come up with a final and
credible results.
Companies that have been recommended
for suspension includes Lepanto Consolidated Mining Company, Filminera
Resources Corp., OceanaGold Philippines, Inc., Benguet Corp., Marcventures
Mining and Development Corporation; Sinosteel Philippines H.Y. Mining Corp.;
Agata Mining Ventures, Inc.; Hinatuan Mining Corporation; Libjo Mining
Corporation; AAMPHIL Natural Resources Exploration and Development Corp.;
Krominco, Inc.; Carrascal Nickel Corp.; Strongbuilt Mining Development Corp.;
Oriental Synergy Mining Corp.; Wellex Mining Corp.; Oriental Vision Mining
Philippines Corp.; CTP Construction and Mining Corp.; and Adnama Mining
Resources, Inc.; Century Peak Corp.; and SR Metals, Inc.
Prior to the final results, there
are also other suspended mines namely Citinickel Mines and Development Corp.
(CMDC), EMIR Mineral Resources Corp., Mt. Sinai Mining Exploration Corp.,
Claver Mineral Development Corp., Ore Asia Mining and Development Corp., and
Zambales Diversified Metals Corp., LNL Archipelago Minerals, Inc., and Berong
Nickel.
Factions at DENR
Even President Rodrigo Duterte knows
that nothing can stop Lopez from intensifying her crusade against mining
operations she believes do not comply with environmental standards.
This is why, according to some
sources, he appointed Mindanao-based Mario Luis Jacinto as Environment Undersecretary
and concurrent Mines and Geosciences Bureau (MGB) director to establish a
balance within the agency. MGB is an attached agency to the DENR tasked to
regulate and develop the utilization of the country’s mineral resources.
This has prompted another open issue
circulating at the DENR now that needs to be resolved this year— the silent
brawl between Lopez and the group of Mindanao-based officials recently
appointed to the office, which includes Jacinto.
To recall, Lopez is one of the
cabinet secretaries that was not yet confirmed by the Commission on
Appointments (CA).
“I do not think she would ever get
the confirmation. But Gina, in the meantime, let us just concede good faith in
her. I hope she would listen to Jacinto,” Duterte earlier said.
In contrast with what Lopez thinks,
Jacinto admitted that the country could not yet afford to lose all the mining
investments in the country, which stands at P282 billion as of 2015, P78
billion of which belongs to those who are at risk of losing their permit to
operate and those that are already suspended.
Jacinto even said that he is willing
to see how much the mining sector could grow within this administration after
having to contribute only 0.7 percent to Philippine GDP over the last six
years.
“It should [grow more] so that it
could contribute more in the total computation [of the overall GDP]. Most
importantly, it should grow for the communities hosting them. [A positive
growth in the sector will also] contribute to a more vibrant trade,” the MGB
chief said. “Whatever you produce in the vicinity of a mine, it will be
consumed.”
Jacinto is also more open to new
mining projects compared to Lopez.
The MGB chief is now working towards
the recommendation of policies that will allow new mining projects in the country.
Not only mining firms
However, it is not only mining firms
who will have a hard time dealing with Lopez this year.
Before the agency capped 2016, it
also began its crackdown on companies from across different sectors that are
environment critical, threatening to withdraw their environmental compliance
certificates if their operations are found unsafe.
Lopez said she remains committed to
get rid of companies who have spawned negative impact on the environment, adding
that the agency won’t hesitate to cancel even as much as 800 ECCs.
Withdrawal of the ECC will prevent
any company to continue its operations or its certain projects.
Some of the sectors that will be
affected are property, manufacturing, infrastructure, construction, and power.
Environment Undersecretary for Legal
Ipat Luna said the agency is already finished drafting the set of guidelines
that will set the direction for the ECC audit and will soon have a consultation
with all the parties concerned, including the businesses.
Reacting on the issue, businesses
holding environmental permits from the DENR said they don’t want to suffer the
same “chaotic” fate as miners when the agency started a crackdown on the mining
industry.
“There should be consultation first
before implementing the audit,” Philippine Chamber of Commerce and Industry
(PCCI) president George Barcelon told Business Bulletin. “Otherwise it would be
chaotic like what happened to the mining industry.”
PCCI is currently the largest and
most influential business organization in the country.
Makati Business Club executive
director Peter Perfecto has the same appeal to the DENR.
“My call and appeal to the DENR is
for constructive dialogue and consultation with the business sector so that we
can hopefully agree on a mutually acceptable evaluation process so that we then
are able to help each other achieve our shared goals towards a better
Philippines,” he said in a text message.
During the audit, the DENR will not
just check the companies’ compliance with the law and ECC conditions but also
the overall impact of their operations to the environment through
“Environmental Impact Assessment.”
“We will look at companies whether
they have caused irreparable damages to environment or whether there are a lot
of complains on their operations. We will look at their compliance with the
conditions of the ECC. We will be suspending with existing violations,” Luna
said.
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