PPP structure proposed for rehab of abandoned mines

MANILA, Philippines - The Chamber of Mines of the Philippines (COMP) is proposing a Public-Private Partnership (PPP) structure for the rehabilitation and reopening of abandoned mines in the country.

During a recently-held hearing of the House Committee on Natural Resources, the COMP recommended the immediate cancellation of all prior mining rights of abandoned mines and the reopening of these sites for new mining rights applications.

COMP vice president for policy Ronald Recidoro said funding for rehabilitation of these abandoned mines need not come from government funds if the private sector would be allowed to develop these mines.

“The private sector is more than willing to take on the challenge of rehabilitating abandoned mines. Government just needs to allow it to be a viable business proposition,” he said.

Before going on recess, the House committee deliberated on House Resolution Nos. 397 and 672, both of which call for an inquiry into the status of abandoned, inactive and closed mines in the country.

The inquiry seeks to find viable measures for the rehabilitation and restoration of the abandoned mines to productive use.

COMP noted that from the 1960s to the early 1990s, around 31 large-scale mines stopped operations because of poor metal prices. To date, only the old Bagacay pyrite mine in Samar is undergoing rehabilitation.

The Mining Act of 1995 which is enforced until now, requires miners to present a mine decommissioning plan and set up a decommissioning fund which would be deposited in a government bank, ensuring means and resources to properly close a mine site.

Prior to the enforcement of the Mining Act, the government was left to deal with the environmental impact of abandoned mines as the old mining law did not provide for proper decommissioning measures and funding for such.

Funding for the rehabilitation of abandoned mines are raised through foreign borrowings or through appropriations.

“The MGB must conduct scoping studies of all abandoned mines and mineral processing impact areas to create an inventory list of abandoned mines, define the costs and risks, and to develop a rehabilitation program to mitigate observed and potential threats to human health and the environment,” said Recidoro.

COMP also proposed that in instances where the abandoned mine still has a viable ore deposit, the remaining minerals should be allowed to be extracted and the proceeds used to fund the mine rehabilitation.

Recidoro said that despite the perceived dangers posed by abandoned mines, residents of these areas would favor the reopening of the sites as mine operations provide stable sources of income.