Palace, Australia, private sector defend Lafayette

The Australian government, Malacañang and the private sector defended Australian mining company Lafayette NL yesterday after its closure was recommended by a fact-finding commission led by a Catholic bishop, saying the Philippines needs to continue developing the mining industry or lose opportunities for economic growth.

While the Australian government seeks the reopening of Lafayette as soon as possible, the Palace said there must be "fairness and reason" in dealing with mining investors to avoid loss of confidence from the international investment community.

Australian Ambassador Tony Hely said Lafayette should be allowed to resume operations since it has met all requirements mandated by the Philippine government following a spill that killed fish in October last year.

"I strongly encourage the Philippine government to now allow Lafayette Mining to commence testing operations as soon as possible so that all stakeholders can judge, on an objective and scientific basis, whether Lafayette’s Rapu-Rapu mining operation in Albay is now in a position to meet the government’s appropriately high standards and safeguards," Hely said in a statement issued by the embassy.

"The key in Rapu-Rapu, as elsewhere, is to ensure that mining operations are safe, transparent, accountable and responsible," Hely said.

Hely noted that a blanket ban on mining in Rapu-Rapu and other operations throughout the country would deprive the Philippines of "thousands of jobs, significant economic growth, enormous local community development, large tax revenues and international investor confidence."

Last year, mining officials ordered the suspension of Lafayette’s $42-million operation after cyanide-laced waste spilled and killed fish off Rapu-Rapu island, 380 kilometers southeast of Manila.

Press Secretary Ignacio Bunye said the government would respect the views of the Rapu-Rapu fact-finding commission led by Sorsogon Bishop Arturo Bastes but "we must deal with investors with fairness and reason lest we lose the confidence of a sector that is expected to bring in good-paying jobs of our people and the development of our communities."

Bunye assured Bastes his concerns on the environment would not be disregarded.

"All in all, the record of mining investments in the Philippines has been constructive and mutually rewarding. If there are operational flaws that have to be rectified and wrongs to be set right, then by all means the government shall enforce the law to protect public interest," Bunye said.

Albay Vice Gov. James Calisin questioned the Bastes panel’s impartiality, saying its report should be "trashed."

"They were able to do it in the commission because Bishop Bastes handpicked its members which included pseudo-leftist militants and anti-mining people. To follow the Bastes recommendation is to have someone that perennially will thwart government efforts to attract foreign investments," Calisin said in a statement.

"The only commissioner who has the technical background and experience in mining did not sign the commission report since he did not agree with most of the recommendations. He will issue his dissenting report shortly." Calisin did not identify the panel member.

Calisin also wants the panel’s expenses looked into, claiming that its members received "fat allowances" and billeted themselves in an expensive hotel during the inquiry.

"If this report is true, then the commission must explain. If they cannot explain, they must face the consequences," he said, claiming that the panel spent P5 million in government money over two months.