Mining firms, allies buck move to kill mineral resources industry

A 13-member strong coalition of groups involved in the mining industry has challenged the so-called "Dapitan Initiative" to come up with a more responsible plan of action that would uplift, rather than inflict more damage on the already deteriorating state of mineral resources development in the country.

Gerard H. Brimo, chairman and CEO of Philex Mining Corp. and concurrent chairman of the Chamber of Mines of the Philippines (CMP), said the CMP-led coalition would counteract the new anti-mining lobby being advocated by mostly non-governmental organizations (NGOs) that seeks to put a stop to all mining activities nationwide.

Aside from the CMP, the consortium made up of the country’s biggest mining companies, those participating in the coalition include associations of mining, metallurgical and geological engineers, mine safety and environment, marble and non-metallic producers, mineral exploration, research and development.

The counter-campaign is also being supported by the Mines and Geosciences Bureau of the Department of Environment and Natural Resources and worker groups belonging to the National Mines & Allied Workers Union (Namawu) and the APSOTEU-Trade Union Congress of the Philippines (TUCP).

"In a country so blessed with minerals and crying out for development, the call for the repeal of the 1995 Mining Act and the banning of large-scale mining is ridiculous, irresponsible and tantamount to economic sabotage... No other mineralized country in the world has done this," the group said.

Last Friday, a multi-sectoral movement made up of NGOs, Church-affiliated groups and political parties launched the "Dapitan Initiative" in Mindanao to rally against the continued mining exploration in the country and the scrapping of the 1995 Mining Act, citing that the entry of foreign capitalists has sidelined the locals, especially the small-scale miners, adding that their compliance to environmental laws remain wanting – noting the disastrous outcome of the Marcopper waste spillage in Marinduque.

But Brimo said it was precisely the relaxation of the capital limit on foreign investments in mining, concretized by the 1995 Mining Act, that gave the industry the much-needed boost, although of late a dearth of new investments has plagued the mining sector once more as the Constitutional challenge to the Mining Act, the backlash of the Marcopper incident, and peace and order problems in the exploration areas further discouraged the entry of foreign investors.

The CMP official noted that the 1995 Mining Act has, in fact, been hailed worldwide for its strong environmental and social prescriptions that trying to scrap this law would just put the industry – and the economy at that – in limbo.

"It’s like we’re shooting ourselves in the foot," Brimo said.

With five world-class metallic mines occupying about 5,000 hectares or barely 0.017 percent of the entire Philippine land, the mining sector contributes $2 billion annually to export revenues; P20 billion in taxes and provides direct and indirect employment to around 300,000 people.

Brimo also chided the anti-mining activists for failing to recognize the contribution of the mining companies in the local communities they operate in.

He said that based on an independent study, nine out of 10 host communities will favor a project for as long as they know what is to be done and that the operation is undertaken responsibly.

"The agitation against a project generally comes from NGOs or groups who reside outside of the host communities," he pointed out.

In the case of Philex Mining, its Padcal mine site in Benguet has contributed P87 million in total taxes since 1991 to two host barangays; P112 million to two governing municipalities; P50 million to Benguet province; and P372 million to the National Government.