NEWS

By Ben Serrano, Louise Maureen Simeon, Richmond Mercurio, Christina Mendez, Paolo Romero

MANILA, Philippines – Should the mines remain operational pending review?

The inter-agency Mining Industry Coordinating Council (MICC) has decided to form a multi-stakeholder committee that will review and advise the Department of Environment and Natural Resources (DENR) on the operations of mining companies in the country.

On Thursday evening, Finance Secretary Carlos Dominguez III and Environment
Secretary Regina Lopez released MICC Resolution 6, which lays out the government’s actions in consultation with local government units following DENR’s order to close 23 mining firms and suspend five others.

“The review shall be based on the guidelines and parameters set forth in the specific mining contract and in other pertinent laws, taking into account the valid exercise of the state’s police power to serve the common good, especially of the poor,” it added.

In a briefing, the Chamber of Mines of the Philippines (COMP) welcomed the review and asked that the industry be included in the process to ensure fairness.

COMP chairman Artemio Disini said the move would give concerned mining firms the opportunity to address the allegations hurled at them and would mean the mines would remain operational.

Lopez, for her part, also said she welcomes the review, as it may present a “multifaceted” solution to the mining issues in the country.

However, she said she still stands by her decision to cease all mining operations in watersheds.

“I’ve already made my decision and the MICC is recommendatory, they’re not in a position to tell me what to do,” Lopez said.

“The President is the only one who can overturn the decision,” she added.

The DENR chief said the closure and suspension orders would be sent to the affected mining firms in about two days.

Once the document is received, the firms can opt to submit a motion for reconsideration with the DENR or file an appeal before the Office of the President.

“If they don’t appeal, they have to stop operations, including suspension,” Lopez said.

Disini, however, argued that required standards should be followed and be well-implemented following statements from Lopez that closure and suspension orders would remain valid.

Dominguez said the council has to step in because “there’s a knock-on effect if they (miners) lose their jobs, so the council will put together a group to assist the DENR in preparing all of these programs to assist and to mitigate any hardship that will come to the individuals who will be affected by potential mine closure.”

Remedies

COMP executive vice president Nelia Halcon said Lopez “has to follow” the collective decision not only of the members of the Cabinet but of the President instead of insisting on her decision to close and suspend 28 mining operations.

Global Ferronickel Holdings president Dante Bravo said the process should also involve the industry.

“We would appreciate if it will involve the industry to be fair. We don’t know yet how it’s going to work and what will be the involvement of the mining industry,” he added.

“It states there that you have to follow the law, due process and the contract. The problem is how DENR would interpret due process,” Bravo added.

Stakeholders, meanwhile, reiterated they have not received any order on cancellation or suspension even if the department said it has already sent out notices.

“Due process requires that the accused be given the opportunity to respond. Both parties be heard, evidence be presented and any decision should be based on substantial evidence,” COMP legal and policy vice president Ronald Recidoro said.

He added that it is plain denial of due process when Lopez ordered an audit but chose to disregard the recommendations of her own team.

“There was a grave abuse of authority, owing to the lack of due process,” Recidoro said.

Through the freedom of information executive order, the chamber continues to request for the actual audit and not just the summation and conclusion of the report.

COMP president Benjamin Philip Romualdez said for fairness and transparency, the President must be given the opportunity to allow the process to continue.

“The position of the DENR is complicated. It must be run by someone who has technical capacity and the ability to balance interests. The position of the DENR is not just the position of the environment, but the position of natural resources,” Romualdez added.

Romualdez said he is not worried about the future of the sector because “I have every confidence” in Duterte.

“He is a wise man on deciding on what policy direction he must take, who he must listen to in order to bring the country forward. The President will decide and he has decided that they (companies) be given due process and those with violation be allowed to remedy them,” Romualdez added.

The Philippine Chamber of Commerce and Industry (PCCI), the country’s largest business group, and local stock market operator Philippine Stock Exchange (PSE) also expressed their discontent over DENR’s lack of due process and transparency in ordering the closure and suspension of mining companies.

“Responsible mining is very important to our economic development. Our concern is not who is right or wrong, but we want clarity, transparency and due process,” PCCI president George Barcelon said.

Such concern was seconded by PSE president and chief executive officer Hans Sicat, who said that as a regulator itself, the PSE finds what happened worrisome, particularly to the five listed mining firms included in the blacklist.

“We thought this is a very worrisome trend, if not very irresponsible move (on) the part of the DENR. From PSE standpoint, we are used to where processes and benchmarks are followed,” Sicat said.

According to the PCCI, mining has substantially contributed to the growth and development of its host communities through its effective CSR programs.

The group said industries such as construction, transportation and energy are also reliant on the commodities produced by the mining industry.

“Obviously, we are putting at stake jobs and substantial revenues for the country and host communities,” Barcelon said.

He said business groups such as the PCCI share the commitment of the government to protect the country’s natural resources so that future generations will have access to viable and dignified living as well as inclusive growth and development.

“We believe there should be a balance between the protection of the physical environment and the welfare of people who live off the land,” Barcelon said.

“We certainly welcome the announcement from Malacañang that the mining companies up for closure or suspension will be given an opportunity to respond to the mining audit. PCCI sees this announcement as an opportunity to call for an open dialogue on mining as a legitimate industry, capable of contributing to economic growth in a sustainable manner,” he added.

Life after mining

In Butuan City, lawyer Evelyn Ramos, regional director of the Department of Labor and Employment in Caraga, said 20,589 direct and indirect workers are expected to be affected by the DENR decision.

Source: Spring Hill Insider