NEWS

By Val A. Villanueva

In February 2017, the government shut down the operations of 27 mining companies in various areas of the country because they were presumed to be nestling on “functional” watersheds.

The decision was based on an initial audit done in September 2016 which alleged that the mining operations were violating environmental and other government regulations. The government revealed then that some of the miners, most especially those in Surigao del Norte, had been causing siltation in coastal waters, which endangered marine biodiversity.

Heavily invested in the business, the industry assailed the decision and appealed its case before the Department of Environment and Natural Resources (DENR). Together with the Mining Industry Coordinating Council (MICC), the DENR conducted a thorough audit of the firms affected by the closure. The interagency MICC is chaired by the DENR and the Department of Finance (DOF). Its other members are the Department of Justice, the National Commission on Indigenous Peoples, and the Union of Local Authorities of the Philippines. From the first batch of miners audited, 24 were given the green light to operate after they were found to be in compliance with environmental and other government regulations. Only three did not make the grade. They were recommended for closure, but were nonetheless allowed to appeal the decision with the Office of the President.

DOF Undersecretary Bayani Agabin said in published reports that the miners were assessed based on the criteria and the benchmarks on social, technical, legal and environmental aspects of their operations. Agabin said: “The system was such that three is the highest score; two is minor reforms needed, [and] one is for major reforms. Zero is not acceptable,…the passing score is 1.5.”

For unknown reasons, the government to date has neither released the names nor has allowed the operations of the first batch of miners that passed the audit. BusinessWise was able to obtain the full list and the companies’ respective scores from highly reliable government insiders.

The 24 miners that passed the audit were: Oceana Gold Philippines—2.92; Hinatuan Mining Corp.—2.74; CTP Construction and Mining Corp.—2.46; Emir Minerals Corp.—2.44; Lepanto Consolidated Mining Corp.—2.30; Marcventures Mining and Development Corp.—2.30; AAMPHIL Nat. Res. Exploration 2B—2.28; Adnama Mining Resources Inc.—2.24; Citinickel Mines and Development—2.24; Berong Nickel Corp.—2.20; Strongbuilt Mining Dev. Corp.—2.16; Wellex Mining Corp. Mine 2—2.16; Carrascal Nickel Corp.—2.14; Eramen Minerals—1.90; Wellex Mining Corp. Mine 1—1.90; Libjo Mining Corp.—1.84; LNL Archipelago Minerals, Inc.—1.78; Benguet Corp.—1.74; Krominco Inc.—1.68; Mt. Sinai Mining Exploration and Development—1.68; Zambales Diversified Metals Corp.—1.68; Benguet Corp Nickel Mines Inc.—1.64; Oriental Vision Mining Phil. Corp.—1.64; and Sinosteel Phil., NY, Mining Corp.—1.62.

The three miners that failed the audit were: Oriental Synergy Mining Corp.—1.10; Ore Asia Mining and Dev. Corp—0.96; and Claver Mineral Development Corp.—0.78.

Sought for an interview, a representative of one of the mining firms that passed the audit lamented that nothing has been done to lift their respective suspension orders. “It’s been almost two years since we’ve been cleared,” he said, “but we remain inactive, all the while paying our creditors, employees and contractors. The hemorrhage is so severe that we don’t know any more what to do to stop the bleeding. The government should at least tell us what’s our next step is, whether we stay or not. We could not remain in limbo forever.”

Note that the shutdown of mining companies was not precipitated by a mine accident of life-and-death proportion, but a zealous campaign by environmental extremists that pressured the then newly inaugurated government of President Duterte.

Mining has been the most demonized industry in the Philippines. And yet, it cannot be denied that the world could not live without it. Its haters should be reminded that they would be practically naked, without nourishment and tools to survive should mining be halted completely. Almost everything we do to sustain life is aided by the things we mine and harness from under the Earth.

I’ve always supported responsible mining, which hypocritical environmental extremists claim does not exist. One only has to press a button on their computer keyboard to access information about how smoking cigarette and drinking alcohol kill more people than mining does, or that multitudes die of smoke and other pollutants they inhale than the rehabilitation of mine sites after they have been excavated for minerals.

Smoking and drinking could kill, but the companies that make them also sustain the livelihood of people dependent on the industry they represent. It’s just a matter of skillful governance on the part of state regulators to minimize the risks associated in consuming these products. In the same breath, mining provides livelihood to townsfolk where mining companies operate. Mining is the only industry that is highly regulated, and the only business mandated by law to uplift the lives of people within the scope of its operations.

Environmental extremists should understand that modern mining methods employed by licensed mining companies greatly lessen the mining catastrophes of yesteryears. What they should rile about is the harmful practices used by illegal miners coddled by corrupt officials of the local government units—those irresponsible and illegal Chinese miners that buy their way to destroy the countryside.

Striking the right balance is what the government should skillfully aim for. It could allow responsible mining, while remaining vigilant to its possible abuses. Also, it has to be extra sensitive to the social impact of shutting down or restricting the operations of industries where thousands of people’s livelihood are at stake. At the moment, the mining industry only provides 0.85 percent, or P134.5 billion to the country’s total gross domestic product, even as it could do more by tapping the country’s mineral resources, which has an estimated value of around $1.4 trillion.

It was announced that the mining audit for the second batch will start this month and is expected to be completed next year. And then, there is still the tax audit that the industry has to go through (but that is an entirely different story). Does this mean that those mining firms deemed fit for business by the first audit have to wait for all these audits to be completed before they could finally operate? The question is: how much longer will these responsible miners have to wait before they can even gasp for breath?

Source: Business Mirror