PHL will not see new mining projects under Lopez’s watch

by Jonathan L. Mayuga | July 11, 2016

Aside from auditing the operations of existing mining sites, the new chief of the Department of Environment and Natural Resources (DENR) has also ordered a moratorium on the approval of new mining projects.

And Environment Secretary Regina Paz L. Lopez will not allow new mining activities even if they would pay higher taxes.

Lopez has issued DENR Memorandum Order (MO) 2016-01, dated July 8, 2016, the first to be issued under the Duterte administration. The order takes effect immediately and “shall remain in force and in effect until formally terminated.” The order repealed or modified all other existing orders, circulars and directives that are inconsistent with the provisions of the order.  Lopez’s first, MO 2016-1 formalizes her earlier policy pronouncement when she took over the helm of the DENR on June 30.

“In line with the pronouncement on responsible mining by His Excellency, President Rodrigo R. Duterte, ‘that there will be a comprehensive review of the mining claims of concessions given,’ and in the interest of the common good and to ensure that the concerns of the helpless and the impoverished are addressed, an audit of all operating mines and a moratorium on the approval of all new projects are hereby ordered for the guidance and compliance of all concerned,” the order stated.

The mining audit covers all mining operations in the country, to determine the adequacy of and efficiency of the environmental-protection measures of each mining firm; to identify gaps in environmental-protection measures; and determine appropriate penalty/ies in case of violations of mining and environmental laws.

In line with the mining audit, the DENR chief also ordered the creation of mine-audit teams per region to be headed by the DENR Central Office, DENR Regional Office, Mines and Geosciences Bureau (MGB), Environmental Management Bureau (EMB) and a third- party expert.

The mining teams are required to submit a report to the DENR chief in a month.

The approval of new mining projects has been stopped, pending the enactment of a new mining-revenue sharing scheme as mandated by Executive Order (EO) 79, the mining policy of former President Benigno S. Aquino III.

The order, which aims to institute mining reforms, also subjected mining contracts under periodic review by the government.  As the new DENR chief, Lopez had vowed to put under strict regulatory process coal and mining ventures, including small-scale mining and other environmentally destructive projects that cause people to suffer.

Asked on her stand on the prospect of allowing mining projects/development on account of higher taxes, Lopez said: “I will not endorse anything that allows suffering to go on.  Public welfare is my non-negotiable stand.”

Asked about the existence of EO 79, which essentially stopped the approval of new mining projects pending the new mining tax or revenue-sharing scheme, she said: “We will do the audit and all those that cause suffering will be suspended.  It’s the right thing to do.”

On July 7 a preventive-suspension order was jointly issued against Benguet Corp. Nickel Mines Inc. and Zambales Diversified Nickel Corp. by three regional officials of the DENR in Central Luzon—Francisco E. Milla Jr., the DENR’s regional executive director; Lope O. Cariño Jr. of the MGB, and Lormelyn E. Claudio of the EMB.

The order, in effect, halted all large-scale mining operations in Zambales, a declared mineral reservation area.  On July 1 the provincial governor of Zambales issued EO 1, stopping all mining operations.  Local government units have power and authority over small-scale mining, while large-scale mining, falls under the national government through the DENR’s MGB, or the Mining Industry Coordinating Council.

Meanwhile, the Chamber of Mines of the Philippines (COMP) said most of its members have secured the mandatory ISO 14001 certification required under DENR Administrative Order 2015-07.

COMP, which represents large-scale mining companies operating in the Philippines, had vowed to adhere to the highest standard of responsible mining, in response to Duterte’s challenge to shape up, with the stern warning that he is ready stop mining operations for destroying the environment.

Source: www.businessmirror.com.ph