Philex seeks review of open-pit mine ban

MANILA, Philippines - Pangilinan-led Philex Mining Corp. is calling for the immediate review of the order banning all prospective open-pit mines in the country, which stalled the company’s $2-billion Silangan copper and gold project.

Philex Public and Regulatory Affairs head Francis Ballesteros said Environment Secretary Roy Cimatu has expressed intention to review the order of his predecessor, Gina Lopez, which banned the open-pit method of mining for copper, gold, silver and complex ores all over the country.

“He (Cimatu) did say he would review the order on the open-pit ban. But, he did not say (when the review will start), but we’re hoping it will start now,” Ballesteros told The STAR.

Just last week, Environment Undersecretary Maria Paz Luna told The STAR there was no move to have the order reviewed or reversed yet.

“We trust that a proper review shall be done and we will await the results of the review, with the hope that he will reverse such an order for being illegal and unconstitutional,” Ballesteros said.

The order was issued even if open pit mining is allowed under the Philippine Mining Act. The Constitution even gives the state the duty to explore, develop, and utilize the country’s mineral resources.

Prior to the order, Silangan had to explain why its mineral production sharing agreement (MPSA) should not be cancelled.

Silangan’s MPSA was cancelled last February because of its proximity to a watershed, but the company maintained it has not violated any environmental law.

“We have already replied to the show cause, saying it is not located in a watershed, functional or otherwise,” Ballesteros said.

“We are also waiting for a word on that. Things at the DENR probably went awry when Gina got rejected,” he added.

Philex admitted it is facing serious concern over the cancellation of Silangan’s copper and gold project in Surigao del Norte, which is envisioned to be its next big prospective mine with an investment opportunity of P40 billion.

The Silangan project is seen to replace the Padcal copper-gold mine in Benguet whose mine life is expected to end by December 2022.

The company has invested over P13 billion for the initial exploration and related works on the site as of the end of 2014, on top of the estimated project cost of about $1.2 billion.

By 2020, the Silangan project is forecast to generate P170 billion in revenues, P31 billion in national and local taxes and at least 8,000 employment opportunities for the first 10 years of operation.

Silangan is also expected to spend P6 billion over the same period for social development and infrastructure programs that will benefit Mindanao.

It is among the biggest prospective open-pit mines in the country.