With over $1.4 trillion worth of minerals waiting to be excavated from identified mining areas, who could fault those who compare the Philippines to a poor man sitting on a pot of gold?
But that pot of gold is looking more like wishful thinking or an unfulfilled dream with what I believe is a reckless move by the Department of Environment and Natural Resources’s (DENR) head, Regina Paz L. Lopez, to shut down 23 and suspend five mining operations in what was described in the industry as coming from an emotional, rather than a rational, mind.
Lopez, who has yet to be confirmed as DENR secretary by the Senate’s powerful Commission on Appointments, apparently made the move on her own, ignoring the recommendations of the Mines and Geosciences Bureau (MGB). Her basis: these mining companies operate in “functional watersheds”.
In fact, the Chamber of Mines of the Philippines (COMP) believes that the closure of the 23 mining operations “may not have been based on the review conducted by the MGB.”
According to Neila Halcon, COMP executive vice president, reports that reached them “said MGB personnel were even banned from her [Lopez’s] press conference,” where she announced her decision.
Lopez said the Philippines could live without the expected revenues from the industry. She also refused to reveal the MGB recommendations, but said she would be willing to share them with President Duterte if asked.
Thus, with one fell swoop, Lopez has put at risk 67,000 jobs and ignored the potential for the industry to generate about P66.6 billion worth of annual production. By disregarding a thorough vetting process, she has cost the government some P16.7 billion in tax revenues.
Of the mines facing closure, 17 are involved in nickel production. These firms represent about half of the country’s annual nickel output, with the country being the world’s biggest supplier of nickel since 2012, in the aftermath of Indonesia’s ban on mineral exports.
Most of these nickel miners are located in Zambales. Documents show, however, that those responsible for environmental degradation in Zambales are seven Chinese companies that had gouged out the area, using nickel mining as pretext. Apparently, the responsible mining companies that have been shut down were not the cause of the large-scale environmental ruin in that province.
Last year the Office of the Ombudsman has found probable cause to charge Zambales Gov. Hermogenes Ebdane Jr. with graft and usurpation of duty in connection with the alleged anomalous issuance of permits to a small-scale mining firm. The permits allegedly paved the way for the illegal hauling and shipping of chromite, valued at more than P211 million, from the province.
In a 32-page resolution, the Ombudsman Special Panel for the Environment concluded that Ebdane had usurped the functions of the Provincial Mining Regulatory Board by issuing several small-scale mining permits to Geoking Asia Mining Corp. to haul chromite from the site of the Coto Chromite Project in Sitio Coto in Masinloc, Zambales, despite the existing agreement between the provincial government and large-scale mining company Consolidated Mines Inc.
The resolution said Ebdane’s action constitutes a violation of Section 3 (e) of Republic Act (RA) 3019, which prohibits government officials from using their positions to give unwarranted benefits, advantage or preference to private party, as well as Usurpation of Official Functions under Article 177 of the Revised Penal Code. Aside from Ebdane, also indicted for Theft of Minerals under Section 103 of RA 7942 or the Philippine Mining Act of 1995 were four individuals from Geoking.
What’s even more puzzling is the closure of OceanaGold’s Didipio operations in Nueva Vizcaya. The company is a “poster boy” for responsible mining, with no less than President Duterte conferring on it the award of being a model company in the extraction industry.
OceanaGold Philippines Inc. Chairman Joey P. Leviste Jr. told BusinessWise in an interview that he was shocked upon learning that his company was one of those ordered closed, saying that such order has no legal leg to stand on.
Leviste told BusinessWise that the Didipio operation is not in violation of any laws, rules or regulations, and does not pose any threat to public health and safety.
To be continued
For comments and suggestions, e-mail me at mvala.v@gmail.com
2 comments
Instead of going after irresponsible miners like those in Zambales and going after Ebdane, Lopez went after those who are actually the responsible ones. Somebody give this girl her medications, I think she’s losing her mind.
Reckless, irresponsible and biased. It’s dangerous to have someone in charged of making decisions when one is not capable of fairness.