Mining investments seen despite renewed opposition

Despite the resurgence of camps opposing mining activities in the Philippines, investors’ confidence remains high and foreign mining companies are expected to continue pursuing mining projects in the country.

"Mining is location specific, investors will always want to go where the gold is," said Carlos G. Dominguez, chairman, president and chief executive officer of Lafayette Philippines Inc. (LPI).

Non-government organizations have recently been putting pressure on the government to rein in mining companies such as LPI and another Australian mining company Climax-Arimco, for several alleged violations of environmental laws.

The strong opposition by civil society groups, church organizations and local government units in Albay and Sorsogon has prompted the Office of the President to create a fact-finding commission on LPI’s Rapu-Rapu mining operations in Albay.

LPI is being blamed for two mine spills last October and discharge of toxic mining wastes into Albay and Sorsogon waters that supposedly resulted in fish kills.

These developments have raised concerns by local mining companies that such opposition would have foreign investors scurrying to more investor-friendly locations.

Dominguez said however, that even with the best mining laws, incentives or perks offered to investors, they would still scout for areas where potential mineral production would be high.

"I don’t think that current opposition to mining activities in the country will have a major impact on efforts to revive the industry. Investors’ confidence remains high," Dominguez said.

Testifying before the the fact-finding commission yesterday, Dominguez said that based on investigations done by the company since he took the top post, there were indeed serious operational lapses and negligent supervision which LPI is now trying to rectify.

These measures include keeping the events pond or tailings pond at no more than 30 percent full, leaving 70 percent freeboard capacity at all times to accommodate any possible spillage.

"We have raised the height of the tailings dam from 124 to 135 meters above sea level and expanded the tailings dam designed to absorb the highest rainfall of one in 100 years. We have built diversion spillways around the dam to absorb rainwater from the slopes rather than allow them to directly flow to the tailings dam,"said Dominguez.

He said LPI was vindicated by the results of the study done by the University of the Philippines-Natural Science Resource Institute which found no mercury in the waters, fish and sediments sampled in and around Rapu-Rapu and the coastal waters of Sorsogon beyond the Department of Environment and Natural Resources safe standards.