Make smuggling of mineral resources a crime of economic sabotage, DENR urges

MANILA, Philippines - The Department of Environment and Natural Resources (DENR) wants the smuggling of mineral resources declared a crime of economic sabotage.

 In a year end briefing, Environment and Natural Resources Secretary Ramon Paje pointed out that the DENR has not been issuing Environmental Clearance Certificates (ECCs) to small-scale mining firms.

 As such, he said, “most will be considered illegal or are considered illegal” already.

 Unfortunately, Paje acknowledged, “if they cannot sell it (gold) legally, the tendency is to sell it to the black market.”

The DENR has reported a 76-percent decline in gold sales by small-scale miners to the Bangko Sentral ng Pilipinas (BSP).

Because of the substantial decline, Paje said, the DENR has already sought the help of the Department of Finance, the Bureau of Customs and the Presidential Anti-Organized Crime Task Force (PAOCTF) to “plug the leaks.”

Paje stressed that the smuggling out of the country’s mineral resources is tantamount to economic sabotage.

Metallic mineral production value increased 15 percent as of the third quarter of 2011 to P90.02 billion from P78.58 billion during the same period in 2010.

 Paje had expressed concern about the 14-percent drop in gold to 25,249 kilograms during the first nine months of 2011 from 29.401 kilogram in the same period in 2010.

 Paje clarified that up to 62 percent of total gold production actually now comes from small-scale miners.

 The drop in production and the drop in gold sales to the BSP despite the high gold price, Paje said, indicates a growing blackmarket and smuggling out of the gold production.

 Paje acknowledged that the implementation of tax laws regarding the sale of gold by small scale miners to the BSP accounted for the drastic drop in gold sales.