RP open to mining investments

DENR chief: RP still open to investors in mining
By Blanche S. Rivera
Philippine Daily Inquirer April 21, 2006
http://news.inq7.net/archive_article/index.php?ver=0&index=1&story_id=73248

THE GOVERNMENT has assured foreign investors that the Philippine mining industry would remain open to foreign firms despite the Congressional review of the Mining Act of 1995 and strong opposition by the influential Catholic Church.Environment Secretary Angelo T. Reyes said Congress would no longer debate over the ownership issue because the Supreme Court has already ruled that it was constitutional for foreign firms to operate mining projects in the country.Speaking before the Australia-New Zealand Chamber of Commerce, Reyes said his “understanding” from House Speaker Jose de Venecia was that the review of the Mining Law would focus on the strengthening of the environmental provisions and ensuring the safety of existing and proposed projects.“I assure you that the ongoing review will not result in any revocation or ownership changes because the Supreme Court has already ruled on this issue and has allowed foreign-controlled corporations to participate in the exploration, development and utilization of our minerals resources,” Reyes said during the chamber’s monthly meeting on April 18.

Unduly alarmed
The DENR chief said he was aware that the pastoral statement of the Catholic Bishops' Conference of the Philippines (CBCP) urging the repeal of the Mining Act and the revocation of existing mining licenses had “unduly alarmed” the investors. Reyes said that while the bishops enjoyed “some influence over the people” in this predominantly Catholic country, they had no legal mandate.“

Instead of repealing the Mining Act, the government agreed to a Congressional review of the law because we are confident that we have the best mining law,” Reyes said, citing international recognition for the environmental protection mechanisms in the Mining Act of 1995.He said the renewed clamor of the bishops and some non-government organizations for the revocation of all mining permits was triggered by the Rapu-Rapu tailings spills in October last year.

The incidents had a major impact on the efforts of government to prove the case for responsible mining after the infamous mine spills at the Marcopper site in Marinduque province in the 1990s.“Our credibility in enforcing the Mining Act and all its environmental safeguards was seriously put in question,” Reyes said.

The DENR had fined Lafayette Philippines Inc. a total of P10.7 million for violation of the Clean Water Act. Reyes expressed confidence that the lines of communication with anti-mining groups and the Catholic Church were still open, based on his recent dialogue with the bishops. “If mining companies and their local stakeholders can prove to the bishops that what the anti-mining groups are telling them are wrong, then there might still be a chance that we can soften their stand,” Reyes said.

Responsible mining practices
“This issue will not be solved by a series of debates on the pros and cons of developing our mineral resources. The government and the private sector must jointly prove their position with concrete examples of responsible mining practices,” he added.Reyes also denied reports that the government has imposed a moratorium on mining applications as a compromise to the bishops.

Former Environment Secretary and now Presidential Chief of Staff Michael Defensor had announced in February that the government was imposing a moratorium on mining, but he later clarified that this was limited to mining applications in the Bicol region.“There is no moratorium on mining. My department continues to process and approve mining applications in accordance with existing laws and streamlined procedures,” Reyes stressed.There are 1,400 applications for Mineral Production Sharing Agreement, 400 exploration permits and 59 Financial or Technical Assistance Agreements pending before the DENR’s Mines and Geosciences Bureau.

The Arroyo government has been aggressively promoting the Philippines’ mining potential abroad, selling 24 priority mine sites that are expected to gain $8 billion in investments. Of the 24 priority mining projects, six have Australian or New Zealand interests. The six are expected to generate $926.4 million in foreign direct investments, $1.3 billion in revenues and 10,000 jobs. “The government will continue to create the most conducive environment for businesses to thrive but we need your help to prove that we can make responsible mining work for the benefit of our people,” he said.