Mining execs urge DENR to clean up Bureau of Mines

Two ranking mining executives urged Department of Environment and Natural Resources (DENR) Secretary Elisea Gozun to keep up its clean-up of the mining sector, encouraged by the Department of Justice’s decision to invalidate the government’s mining and mineral contracts in the controversial Mount Diwalwal. "The DOJ’s decision affirmed the recent acts of Secretary Gozun in ordering a review of all orders of her predecessor," they said.

Manuel Pasetes, director of Davao City-based Aegis Mining Corp., said that the nullification of the contracts with the Compostela Valley Federation of Mining Cooperatives (CVFMC) and the Diwalwal Joint Venture Group by the DOJ showed that the DENR is "badly in need of reforms." But Secretary Gozun, by reviewing the actions of former Secretary Heherson Alvarez, is "on the right track," Pasetes added.

For his part, Isagani Aguinaldo, president of Tandem Mining Corp., asked that Gozun "look into and improve her department’s ranks, particularly those that are directly responsible for the implementation of DENR programs." Reforming the DENR and its agencies will surely benefit the dying Philippine mining industry, he said. He specifically cited the poor performance of the mining industry due to corruption.

Figures obtained from the IBON Foundation show the steady decline of the country‘s mining industry. From 1970 to 1974, the industry posted an annual average of 21.66 percent of the country’s total exports for the four-year period, with contributions peaking at 24.6 percent in 1973. The figures had gradually declined through the years, finally dropping to less than 10 percent in 1990. By 2001, the mining industry’s output had hit an all-time low — 1.1 percent of total exports.

Export receipts are the main measure of the industry‘s contribution to the national economy.

Unabated corruption

For one who has his share of frustration with the governance of the industry, Pasetes lamented that "mining has not been contributing significantly to the national economy because corruption at the DENR continues unabated."

Pasetes cited the case of Mines and Geosciences Bureau (MGB) chief Horacio Ramos, who is facing graft charges at the Office of the Ombudsman for violating the Philippine Mining Act of 1995. Ramos allegedly allowed certain companies to relinquish their excess acreage to dummy corporations instead of to the government.

"Ramos undermined the government’s thrust for large-scale foreign investment by converting Financial and/or Technical Assistance Agreements (FTAAs) into Exploration Permit Applications (EPAs) to cover up for the divestment scheme," Pasetes said.