Australian envoy reminds mining firms to abide by RP's laws

MANILA, Philippines - Australia’s top diplomat in the country said allegations against Australian mining companies here should be properly investigated as he called on the firms to abide by Philippine laws and apply the highest standard of environmental responsibility.

Australian Ambassador Rod Smith acknowledged the concerns about the environment and harassment by Australian mining companies raised during Asia Pacific Policy Forum (APPF) on Human Rights last Thursday at the Crowne Plaza Galleria Hotel that was organized by the Australian Embassy.

“First, Australian companies operating in the Philippines are subject to Philippine laws and if there is a concern about their activity that should be properly investigated,” Smith said.

Non government organizations and environmental groups in the country have expressed serious concern about the alleged harassment in local communities by Australian mining companies and environmental costs of the mining operation.

“Australian mining companies should not only abide by laws of the country but apply the highest standard of environmental responsibility,” Smith added.

Techa Beaumont, executive director of the Mineral Policy Institute and a member of the International Union for Conservation of Nature (IUCN World Conservation Union) working group on the accountability of the private sector, said that community opposition to the activities of Australian mining companies in the country is on the rise and it is becoming increasingly obvious that the backers of these companies, including both the Australian government and the financial institutions that invest in them, have failed to respond adequately to the problem.

Beaumon cited the Australian mining company Lafayette that is the primary owner and operator of what is termed the flagship project for the Philippines mining industry, the Rapu Rapu Polymetallic Mining project on the small island of Rapu Rapu.

President Arroyo had appointed a fact finding commission to look at the human and environmental costs of the mining operation in response to widespread community outrage over two major pollution incidents at the mine. These incidents led to major fish kills that extended into the coastal waters and seriously affected the local fishing industry.

The commission found evidence, not only of gross negligence by the company that caused the two avoidable toxic waste spills, but also of possible underreporting of mineral production, fraud in securing tax exemptions and the illegal use of various corporate structures. Other reports highlighted the minimal economic benefits of a project that had secured major tax holidays and exemptions.

The commission recommended that the operation not be allowed to continue and that a moratorium on mining on the island be instituted.