Mining body prioritizes policy harmonization

MANILA, Philippines - The Mining Industry Coordinating Council (MICC) is prioritizing the harmonization of local mining ordinances with national mining laws, according to Environment Secretary Ramon Paje.

Conflicting ordinances of local government units (LGUs) with those of the national government is delaying the start of the $5.9-billion copper-gold project of Sagittarius Mines Inc. (SMI) in South Cotabato where there is a standing ban on open-pit mining.

The Chamber of Mines of the Philippines (COMP) has urged the government to immediately enforce the harmonization of local ordinances with national mining laws as provided for by Section 12 of the new mining policy, either through “positive persuasion or “in the worst case legal action.”

“The issue with local laws on mining is being prioritized (by the MICC),” said Paje in a speech delivered on his behalf by Mines and Geosciences Bureau (MGB) director Leo Jasareno during the recently concluded 59th Annual National Mine Safety and Environment Conference organized by the Philippine Mine Safety and Environment Association (PMSEA).

“In the last meeting of the MICC where the Tampakan copper project appeared to present its case, firm statements were issued by the MICC on the actions to be taken to address the issue,” he added.

Section 12 of Executive Order 79 directs the Department of Interior and Local Government (DILG) to ensure the consistency of local and national mining ordinances.

“The Department of the Interior and Local Government (DILG) and the LGUs are hereby directed to ensure that the exercise of the latter’s powers and functions is consistent with and conform to the regulations, decisions, and policies already promulgated and taken by the National Government relating to the conservation, management, development, and proper utilization of the State’s mineral resources, particularly RA No. 7942 and its implementing rules and regulations, while recognizing the need for social acceptance of proposed mining projects and activities,” Section 12 of the EO states.

“LGUs shall confine themselves only to the imposition of reasonable limitations on mining activities conducted within their respective territorial jurisdictions that are consistent with national laws and regulations.”

Section 12 also directs the DENR, Department of Budget and Management (DBM), and the Department of Finance (DOF) to ensure the timely release of the share of local government units of mining revenues from the National Wealth.

“These agencies are likewise directed to study the possibility of increasing LGUS’share as well as granting them direct access similar to existing arrangements with the Philippine Export Zone Authority (PEZA),” Section 12 stated.

LGUs have been complaining of delay in the remittance of their share of revenues from the national government.

The government is seeking a larger share of revenues from mining. The issue is yet to be resolved through the passage of a law rationalizing the sharing of revenues between the state and mining firms.

In rejecting SMI’s application for an ECC – a key document that would enable it to start construction – the DENR cited the South Cotabato ban on open-pit mining.

Malacañang was expected to issue a response to SMI’s petition in September but has not done so.

As a result, SMI is postponing the targeted start of commercial operations of Tampakan mine in 2016 because of unresolved issues with the government.

President Aquino last month said he prefers to wait for the passage of mining taxation reforms before rendering a decision on the petition of SMI to overturn the decision of the DENR on the company’s ECC application.