Mining expert: Reinvesting in communities a must

By Nora O. Gamolo, Editor

The Manila Times-Barangay News

"Mining is one of the best catalysts for development, " said Angel N. Veloso Jr., president of mining-related Philippine Associated Smelting and Refining Corp. (Pasar). Pasar used to be a government-owned and -controlled corporation, but was sold 100 percent to an American firm in 1999 as part of the government's privatization efforts.

It smelts or refines copper ores for export as semi-finished products.

Veloso warns that the industry is very socially sensitive.

"If we do it wrong, you affect the ecology, the health, livelihood and the well-being, in general, of people. So much collateral damage can be brought upon ourselves if we do it wrong," Veloso said, who added that greed can lead to doing things wrong.

"A lot of reinvestment must be made by mining companies to support the social development of communities and to protect the environmental— if mining is to become socially sensitive," he said, expressing enlightened contemporary views of mining industry players on matters that were not even discussed in the past.

Philippine law provides that mining companies must establish postoperational land management plans for open pits, waste dumps and tailings dams. The companies must allocate 10 percent of their initial costs for a mine project to environmental work. They must set aside a sum equal to 3 percent to 5 percent of mining and milling operating costs for their environmental protection program. The fine payable for spillage of waste material has been raised to the equivalent of two US dollars per metric ton.

Aside from this, mining companies must allocate at least 2 percent of its earnings to the state in the form of excise taxes that can then be used for development.

Veloso is frightened by the absence of a mining development program in the country. Veloso has been involved in the mining industry since he earned a degree in economics in 1975. He was a metals trading specialist in the Philippine International Trading Corp. until he joined multinational corporations involved in metals trading and mining.

"Investors have to ensure that even after an area is totally mined out, there would still be an economy left in the place," said Veloso. This can be ensured by encouraging the growth of other industries and other economic activities in the locality. The cleanup of mining sites should be thoroughly done, if these socioeconomic activities are to flourish.

Veloso said that in Malaysia, a mining site near Kuala Lumpur was even rehabilitated and turned into a resort after the mining company stopped operating. Appropriately enough, it is called The Mines.

A coalmine in Australia was rehabilitated and turned into pastureland for a new cattle farm.

"Mining companies should integrate in their development plans provisions on what to do with the mining sites after the mines stop operating. They should be able to factor in the cost of this redevelopment with their mining plan, rather than leave this problem to the State and the people," said Veloso.

Profits from the mining operations should ensure the rehabilitation and renewal of the mining communities. Feasibility studies should integrate rehabilitation cost.

Ghost towns were all the Cordilleras had in areas where mining companies had stopped their operations. The closure of the mines also left many residents unemployed, forcing entire families to relocate. Those who have remained complain of mine tailings and the pollution of their waters. These must not happen again, Veloso said.

"Mining companies should be welcomed and assisted, but they should be told that the environment must be protected and preserved," said Veloso.