Clearing mining issues

The mining industry in the country is in such a stage where issues and conflicts just have to be resolved in order for it to advance and be a main contributor to economic development.

One issue that needs to be clarified is the distinction between legitimate large-scale mines, on the one hand, and the small-scale and illegal miners, on the other. Large-scale mines are highly regulated and registered with government. They are consistent taxpayers. Small-scale miners are loosely regulated with many not paying taxes. They get their permits from local government units, which have no time to monitor adverse practices that affect environment, health and safety. Unfortunately, large-scale mines get part of the blame for the illegal practices of small-scale miner

Meanwhile, one myth that needs to be debunked is the claim that mining applications cover 40 percent of the country. The 27 existing large-scale mines in the country occupy only 60,000 hectares, equivalent to only 0.2 percent of the total Philippine landmass With such a small area devoted to mining, the industry will not threaten and compete with agriculture, eco-tourism and other productive practices.

Then, there is a proposal to increase taxes on the extractive industries which includes mining. Large-scale miners feel it will make the country uncompetitive in the race to get top-grade mining investors.

Another issue is the need to harmonize mining laws enacted by Congress with the conflicting ordinances passed by local government units.

The conflict between the Mining Act and the provincial ordinances imposing mining moratoriums or banning open-pit mining within their territorial jurisdictions has created an impasse that threatens the very existence of the single largest mining investment in the country today – the $5.9-billion Tampakan gold-copper project, which was already in the pipeline, but may be stopped by a local ordinance banning open-pit mining.

The government should also not resort to public bidding in the grant of mining rights. It’s unnecessary and may even serve to discourage investors. In most mining countries, the “first-come, first served” policy is applied for industry members to obtain exploration rights.

Lastly, the development of downstream industries for the mineral sector is a welcome initiative that will increase the country’s benefits from mining.

NCIP officials admit mistake

National Commission on Indigenous People (NCIP) officials virtually admitted negligence when they said that no field-based investigation (FBI) was conducted, a prerequisite for the issuance of a free and prior informed consent (FPIC) for the conduct of mining operations by MacroAsia in Brooke’s Point, Palawan.

NCIP commissioner Dionesia Banua, also representing chairman Zenaida Pawid, in a meeting with the Ombudsman blamed the absence of an FBI for her agency’s failure to issue a permit for MacroAsia.

Tribal leaders charged Pawid and Banua before the Ombudsman last November for violation of the Anti-Graft and Corrupt Practices Act and the Code of Conduct and Ethical Standard for Government Officials.

The failure of the NCIP officials to act correspondingly on the result of the consultation has grossly disadvantaged the indigenous people economically and  and violated their mandate to work for the welfare of their constituents, it was claimed.

The NCIP officials asked the tribal leaders to withdraw the graft complaints against them while standing firm on their resolve to conduct a new FPIC process.

Banua, when cornered by the indigenous leaders on giving them a run-around on the issuance of the CP for MacroAsia, blamed the absence of a FBI, a requisite to the FPIC which determines the  presence of tribal people within the impact areas of the mining operations.

Banua told the tribal leaders that the NCIP should be blamed for the negligence. She said the commission has already sent out field investigators to baranggays Aribungos and Barong-Barong to conduct the same.

The tribal leaders dismissed Banua’s claim on the absence of FBI as a flimsy excuse, saying the FBI had already been conducted earlier. An NCIP official, in fact, said he was part of the group which undertook the FBI and that the provincial official keeps the result.

If indeed the FPIC was undertaken allegedly without the prior FBI, NCIP commissioners who ordered the consultation process and provincial director Roldan Parangue  for Palawan could be held liable for gross negligence, the tribal leaders said.

Exactly a year ago, President Aquino said he would approve mining  in areas where affected communities would recommend such projects.

Unfortunately, the President has yet to make true his commitment.

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