WHAT happens when someone who has made no secret of her dislike for mining is put in charge of the government department that is supposed to promote, as well as regulate, mining?
For one thing, the appointment of Regina Paz L. Lopez as secretary of the Department of Environment and Natural Resources (DENR) by President Duterte sent mining shares in the stock market into a tailspin for two days before recovering.
Big mining companies lost over P25 billion, combined as a result of the market turmoil triggered by Lopez’s DENR appointment.
The two-day Philippine Stock Ex-change fall meant a stock value loss of P11 billion for Semirara Mining and Power Corp., P10 billion for Philex Mining and P4 billion for Nickel Asia.
The Social Security System re-portedly lost P2 billion because it owns 21 percent, or a fifth, of Philex.
In contrast, at least two energy-related companies of the Lopezes posted a P17-billion increase in stock value on news of her DENR appointment, with First Gen Corp. (FGEN) gaining P9 billion and Energy Development Corp. (EDC) earning P8 billion at the local bourse.
Mining stocks managed to bounce back, however, after Presidential Spokesman Ernesto C. Abella assured
the public that the Duterte adminis-tration was only against irresponsible and illegal mining, and is “committed to promote a dynamic economy, including responsible mining.”
“The fact that she accepted it, it means that she will advocate the position of the President,” he added.
“The President is not anti-mining,” Abella pointed out. “He actually supports each and every venture that contributes to the health of the Philippine economy.”
Amid the negative reception of investors to Lopez’s appointment, Abella stressed that “responsible mining plays a key role in the Philippines,” and that “the Duterte administration is committed to promoting a robust and dynamic economy with every sector contributing to its growth.”
In other words, responsible mining would be upheld by the Duterte administration, with the mining sector applying the rigid standards in minerals extraction practiced in developed countries, like Australia and Canada.
Apart from taking an antimining stand, Lopez has also inveighed against coal-fired power plants, even as her family controls companies that directly compete with energy firms providing coal power. Among the Lopezes’ business interests are EDC, which owns geothermal-, wind- and solar-power facilities; FGEN, which owns natural-gas plants; First Philippine Holdings Corp. (FPH), which controls FGEN; and Lopez Holdings Inc., the parent company of FPH. FGEN is the largest vertically integrated power- generation company in the country through FPH, and EDC is the world’s largest integrated geothermal-plant producer.
Lopez’s bias against mining imperils an estimated $17 billion in capital investments by mining firms in Mindanao alone. This figure does not include the multibillion-peso investments in coal-fired power plants that are similarly endangered, along with the collateral businesses dependent on these industries that employ thousands of workers in the South.
President Duterte has em-phasized that his administration wants to achieve inclusive growth by dispersing businesses and promoting growth away from the cities toward the countryside. But if Lopez insists on her crusade against mining and coal-fired power plants, she could well be the single biggest obstacle to the Duterte administration’s push for accelerated countryside development.
The mining sector, meanwhile, remains confident that President Duterte would support responsible mining. “President Duterte has made clear his policy in support of responsible mining. All our mining operations are ISO-compliant for environmental managements systems and are world class,” said Gerard Brimo, the president of Nickel Asia.
For his part, Jose Bayani Baylon, Nickel Asia’s vice president for corporate communications, said Lopez can channel her “passion” to fight illegal and irresponsible mining.
The Philippine Mine Safety and Environment Association said it expects Lopez to be fair in her decisions concerning the mining industry.
After all, responsible mining firms are strictly regulated by the government, while irresponsible miners, especially the small-scale ones, use illegal and destructive practices.
Responsible mining is the key to fuel inclusive growth, particularly in the countryside.
Big mining firms undergo a tedious and complicated process of securing approvals and permits from the government to create jobs, and pay not only among the highest taxes, but also royalties, regulatory fees, contributions and mandatory community expenditures.
They also have to spend more to build schools and training centers, hospitals and clinics, housing, roads, drainage and street lighting; conduct livelihood workshops; and implement other projects as part of their corporate social responsibility programs.
As a case on point, Benguet Corp. allocated P162 million for a health-care facility in the province of Rizal. Atlas Mining, through its subsidiary Carmen Copper Corp., built a birthing center in Toledo City in Cebu, and implemented various projects that provide access to better health services and facilities, quality education, improved infrastructure and enterprise development.
E-mail: ernhil@yahoo.com.
3 comments
Lopez’s supporters seem to think her passion – of which there is no doubt – is sufficient qualification for the position. But passion driven by irrationality leads only to destruction. One need look no fiurther than Hitler. And irrational is what characterizes Lopez’s stand on mining. She makes no distinction between responsible and irresponsible mining, saying that the industry is by definition destructive. She claims to have the facts, but all she can provide are isolated examples of environmental destruction brought on by irresponsible mining.
While President Duterte believes that responsible mining contributes to the health of the economy, the anti-mining elements claim that mining contributes only a 2% Excise Tax to the economy. That is blatantly deceptive. In fact, the tax is just a small portion of mining’s contribution. The bulk comes from corporate and income taxes, VAT and other taxes, Royalties, permits and other fees, compulsory contributions, to name only a few. Then there is their contribution to the surrounding communities with employment, livelihood, health care, education, housing, infrastructure and so on, once more belying Gina’s claims that ‘all’ mining communities are poor. And yes, mining companies are required to rehabilitate mined-out areas and reforest that and surrounding areas. Just enforce the law on Pres. Duterte’s vision can come true.
I like the context that the current administration is thinking. Hope their appointed Secretaries with adhere to the vision of PD30. Responsible mining it is.