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Heads of foreign chambers with members that are active participants in the local mining sector are calling on the government to eliminate confusion among investors, by making a unified stand on mining issues on both the national and local levels.
Canadian Chamber of Commerce of the Philippines president Julian Payne noted that RA 7942, or the Philippine Mining Act of 1995, was “very good’’ and could even be considered a model for mining laws in other countries.
The big problem, however, was in the implementation, Payne said.
“One of the problems is that small-scale mining operations have brought the entire industry to disrepute. There’s also a dichotomy between national government and local government policies. The problem is really with the implementation (of the law). The national government should be in coherent cooperation with local government units,” he said in a briefing Wednesday by the Joint Foreign Chambers.
Australian-New Zealand Chamber of Commerce (Philippines) vice president Ian Porter added that this seeming disconnect between the positions of the national and local governments when it came to mining was causing “confusion” among investors.
He related that while Trade Secretary Gregory Domingo expressed the government’s support for mining projects during the 3rd Philippines-Australia Ministerial Meeting in Canberra last month, local governments were giving mixed signals to the industry with their antimining policies.
“There has been some confusion on the part of investors with regard to the government’s support for mining. There were even calls to increase royalty payments. These will have to be resolved. Statements that confuse investors will inhibit them from investing straight away,” Porter said.
During the Canberra summit, both the Philippine and Australian governments recognized the potential of the mining sector as a key area of growth and cooperation.
The Philippines currently plays host to a number of Australian mining firms, all of which have plunked millions of dollars into their respective projects.
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By Abigail L. Ho
Source: The Philippine Daily Inquirer, July 21, 2011
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