Published
February 20, 2017, 10:00 PM By Bernie Cahiles-Magkilat
Businesses from the
Caraga Region, one of the country’s poorest regions and host to 25 large
scale mining operations, have urged the government to grant mining firms a
ten-year transition period to go into mineral processing from the current pure
exports of raw ore materials as they warned of dire consequence on the local
economy and employment if the closure order is implemented immediately.
The Surigao Chamber of
Commerce and Industry (SCCI), a local member of the Philippine Chamber of
Commerce and Industry, passed Resolution No. 001 on February 17, 2017,
recommending five actions to ensure sustainable mining development in the
Caraga region or Region 13.
Caraga, which has
Surigao del Norte as its center, ranks fourth poorest region in the country
with Agusan del Sur among top 10 poorest. The region is composed of five
provinces: Agusan del Norte, Agusan del Sur, Dinagat Islands, Surigao del
Norte, and Surigao del Sur.
“This shift to
minerals processing shall be provided with a transition period of ten years at
10 percent raw ore export reduction annually,” the resolution stated.
According to the SCCI,
the Department of Environment and Natural Resources (DENR), Mines and
Geosciences Bureau (MGB) and the Department of Trade and Industry should
promote the establishment of minerals processing industries so that export
products will be processed minerals instead of raw mineral ores for value
adding and jobs generation.
The transition period
will also give time to the affected mining companies to be able to adjust and
comply with the standards and requirements of the DENR. Compliance to
requirements must be implemented in close coordination with the DENR and MGB.
In opposing the DENR
order, the SCCI even taunted the statement of DENR Secretary Gina Lopez that
the Philippines can live without mining since the industry contributes only
about 1 percent of the national gross domestic product (GDP) stressing this figure
is based on the national perspective and does not reflect the real situation in
the province and region.
According to SCCI, the
25 large scale mining operations in Caraga contribute directly and
indirectly 28.5 percent to 32.5 percent of the gross regional domestic product
(GRDP), provide 98 percent of regional exports, employ around 28,000 skilled
personnel and currently considered as the backbone of the regional economic
growth.
Given this situation,
SCCI warned that sudden closure and suspension of mining companies will result
in large displacement of labor in the province and ending of scholarship
assistance to the recipients.
Closure and suspensions
will also lead to slow down of economic ancillary activities such as suppliers
of food products and transportation services in the host community.
On the granting of
sufficient time for these firms to comply, the SCCI this must be implemented in
close coordination with DENR and the MGB.
The business
group also recommended that policy makers shall consider the regional impact of
present and future policies governing the mining industry.
DENR and MGB shall
continue to enforce strict implementation of responsible mining practices.
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