The mining industry and its ardent supporters have been hugging the headlines for already three weeks, and the murmurs, jitters and speculations have not ceased as of yet. The center of all these discussions in the press and social media has been the Department of Environment and Natural Resources’s (DENR) controversial decision to shut down the operations of 23 metallic mines and the suspension of five other mining outfits for alleged violations of prevailing environmental laws. It has become so caustic that the appointment of Environment Secretary Regina Paz L. Lopez is now being opposed by big mining companies and supportive stakeholders who vouch for the industry’s contributions to the nation’s economic well-being.
There are conflicting information on the actual contribution of mining activities to the Philippine’s GDP. In the 2016 Philippine Mining Conference, a National Economic and Development Authority official has been quoted as saying the closure of mining companies can have an impact on GDP growth. Basis given was data from the Mines and Geosciences Bureau (MGB), which showed that the industry produced 0.7 percent to GDP in 2015. But there are equally strong challenges in that gross value added was only close to .60 percent or thereabouts from 2012 to 2016, and this amounts to roughly less than 1 percent of total GDP. It also constituted only 5.6 percent of total exports.
But per the Mining Industry Coordinating Council (MICC), this sort of performance was precisely brought about by threats of suspension of operations from the DENR and the lack of support from government for mining. The MGB also warned that unwarranted closures or suspensions would negatively affect the economy in the areas of production, investment and employment. Close to 43 percent of the industry core workers would lose their jobs, and this does not even include those indirectly working for related activities. Additional investments of around $1.69 billion may not come in and output in gold and nickel may be reduced by 45 percent and 67 percent, respectively.
But Malacañang has been exerting tremendous efforts in aligning the objective of protecting and preserving the environment while taking care of the legitimate investment interests of the mining industry. The President has given full assurance to the industry that the companies affected will be given full due process by giving to them the chance to check and scrutinize the audit findings made by the DENR, and the opportunity to either affirm, dispute, oppose or even resort to proper legal remedies if they find that the audit results have no factual or legal bases. This is a very good move, because the entire process would necessitate an honest-to-goodness, real conversation among the DENR, the MGB and other involved agencies. Those with the proper competencies and expertise must be tapped to really drill down on what exactly were the violations, how the conclusions were reached and what the recommendations were. This would then remove the alleged politics, lack of transparency and the unreasonableness of the way the results were communicated to the various stakeholders who have solid stakes in the issue.
Quite an unfortunate situation, because there are, indeed, certain countries that have benefited from responsible mining. Australia, South Africa, India and other countries in Asia and Africa have derived great socioeconomic gains from using sustainable-development tools and practices in the industry. Experience shows there can be a right formula for mining to be a powerful driver for economic growth. If government provides the appropriate legal framework, good infrastructure, attractive fiscal regime and administrative capability, and these are matched by superior technical acumen, legally compliant plus good corporate governance practices by the mining companies, with support from civil society, non-governmental organizations and the private sector, then the industry can produce a high economic and social rate of return for the Philippines.
But one should not solely focus on the economics if we talk about sustainable development. Responsible mining entails stewardship and care for the environment. It is undeniable that mining poses a real threat to the environment if not properly checked and monitored. Some of the proven harmful effects of mining to the environment are caused by the need to clear forest, agricultural lands flora- and fauna-rich areas. The use of toxic chemicals and metals to process minerals; siltation and pollution of our rivers waterways and even the air; deforestation and the huge consumption of water are occurrences that anyone would and should frown upon.
Balancing of aforementioned concerns is most critical not only for the government, the mining companies, but the nation’s populace, as well. As in any economic activity or undertaking, there are risks and opportunities. The key is managing those risks well, while capturing the opportunities and turning the latter into positive outcomes.
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