THE Department of Environment and Natural Resources (DENR) is still bent on using the Total Economic Value/Valuation (TEV) tool in evaluating mining projects, despite warning from miners that it would be unconstitutional.
Environment Undersecretary Leo L. Jasareno said his team is now working with experts to find ways to operationalize the TEV the soonest, as directed by Secretary Regina Paz L. Lopez.
“Last week we met with experts from UP [University of the Philippines] about the TEV. There will be another meeting this week,” Jasareno said. “We are hoping they can provide us with action plan and cost estimate.”
But Jasareno assured the miners that the Department of Environment and Natural Resources (DENR) would still consult with mining companies before operationalizing the TEV.
“It will be part of the action planning. It depends on how fast our experts could provide us the action plans,” Jasareno said.
According to Jasareno, the DENR would also tap other learning institutions that have knowledge on the use of the TEV, particularly those situated near mine sites.
“In Palawan there is the Palawan State University. In Bicol there is the Bicol State University. But not all SUCs [state universities and colleges] are capable of doing it, so it depends [on the situation],” Jasareno said.
He also said the DENR’s legal and policy office would look into the legality of imposing the TEV as a tool in evaluating mining projects.
The Chamber of Mines of the Philippines (COMP), which represents mining industry’s big players, has yet to issue an official position on Lopez’s plan, although Ronald Recidoro, its vice president for Legal and Policy, said the group is willing to know more about Lopez’s idea and would be willing to sit down with the DENR to discuss the issue. Dante Bravo, president of Global Ferronickel Holdings Inc., earlier told the BusinessMirror that imposing the TEV is “unconstitutional,” as it would impair contract obligations for existing mining projects.
He said the TEV is not specified in the Philippine Mining Act of 1995, as well as existing contracts between the government and mining companies.
Environmental and antimining groups, meanwhile, support Lopez’s plan to use the TEV as a way of measuring or evaluating mining projects.
Alyasa Tigil Mina (ATM), for its part, said the government could always cancel a mining contract, if it is found to be onerous and benefits only the mining companies.
Environmental group Kalikasan-People’s Network for the Environment (Kalikasan-PNE) said it is high time that the environment and environmental services became part of the equation in mining.
In the three studies mentioned by Lopez earlier to support her desire to use the TEV tool—in Palawan, Bicol and Mindoro—the DENR chief said the cost always outweighs the benefits of mining, because of the loss in terms of agriculture, fisheries and people’s livelihood affected by mining operations.
A concept in cost-benefit analysis, the TEV refers to the value derived by people from a natural resource, a man-made heritage resource or an infrastructure system, compared to not having it.
According to Lopez, the method gives monetary value for everything relevant to or affected by mining operations, such as the environment, livelihood, agriculture, fisheries and tourism, and the number of people affected as against the benefits, such as the taxes and various projects implemented by the mining companies.
Lopez made this pronouncement last week at a press conference to highlight the result of the mine audit. Through the TEV, she said mining companies would know whether or not the benefits of mining are enough to cover for the relevant costs, which she said, often leads to environmental degradation that causes people in mining communities to suffer.
Interviewed at the sidelines, Lopez said she is entertaining the idea of limiting the number of mining operations in the Philippines through TEV. She defended the strict audit procedure implemented by the DENR as part of its mandate and her personal commitment to the people.
“People are suffering. We cannot build an economy based on suffering. We cannot build an economy based on social injustice. It is not right. The DENR is the protector of the environment and natural resources. We are just following the law,” she said. Meanwhile, Jasareno said none of the 20 mining companies the DENR identified as facing possible suspension have received the audit reports.
“We are in the process of producing the documents,” Jasareno said.
According to Jasareno, the audit reports are at least 2-inch thick and the DENR needs to produce seven copies for each of the participating audit team members.
The audit reports, he said, would be distributed to mining companies as soon as they become available.