Phl welcomes miners but not polluters - Paje

MANILA, Philippines - Government officials pledged support for the mining industry as it undergoes a boom, but warned companies they cannot dirty the environment, hide revenues or obtain mining permits only to raise funds in the stock market.

Environment Secretary Ramon Paje said Wednesday that mining is forecast to grow 17 percent this year, with the metals sector seen rising 24 percent. He said investments may reach $18 billion by 2016, nearly fivefold the $3.8 billion over the last six years.

The Philippines is the world’s fifth most mineralized country, with large reserves of minerals, including gold, copper and nickel.

Executive Secretary Pacquito Ochoa said at a mining conference that the country will ensure transparency in revenues by participating in the London-based Extractive Industry Transparency Initiative, which requires companies and governments to publish what they pay and receive.

Benjamin Philip Romualdez, president of the Chamber of Mines of the Philippines, said the local mining industry is on the verge of its biggest boom in history as robust metal prices draw more local and foreign investors.

But he said a government moratorium on mining permits and a concerted campaign by environment activists against mining are threatening $14 billion to $20 billion in potential investments in the next five years.

Last year, investments reached $956 million and could have surpassed $1 billion had some projects not been delayed, he added.

“As we allow you to mine, we cannot allow you to dirty the environment,” Paje told the conference.

He also clarified that the government has not suspended the issuance of permits but wants to first find out what happened to the 500 mining permits it has issued, since only 30 - or six percent - are in operation.

He said 94 percent of the permits have apparently been sold, traded or used to raise company shares in the stock market.

“Those who want to mine are welcome, those who will not mine are not welcome,” he added.

Ochoa said the mining industry is understandably being scrutinized by various sectors because of past harm done to the environment and communities.

“For mining to be acceptable, it must be guided by the principles of sustainable economic development, environmental protection, social equity and, of course, good governance,” he said.

Meanwhile, the Department of Environment and Natural Resources (DENR) has proposed the abolition of the current scheme of awarding mining permits based on a “first come, first served” basis.

Paje believes the awarding should be done through tendering/bidding.

“Through this approach, discretion and corruption in the awarding of mining tenements will be eliminated,” Paje said.

He said the agency is bent on cleansing the mining industry of undesirables prior to resuming the granting of mining permits in the country.

“The DENR will resume the granting of mining permits only after we have fully cleansed the ‘undesirables’ in the mining industry,” Paje said.

The DENR, through the Mines and Geo-sciences Bureau has issued 500 permits. Some of these permits are being used for speculative trading or sold to other companies, without generating revenue for the government.

“This is not the kind of mining we want to encourage. The government is allowing mining operation in the country because we want to generate revenue for the government and the Filipino people and to fuel the country’s economic development,” Paje stressed.

The DENR chief acknowledged that the current revenue sharing in mining is not favorable to the government.  – AP, Rhodina Villanueva

“The two percent excise tax, which is the share of the government according to the Mining Act, is not enough to pay for the environment cost considering the fact that mining is an extractive industry. This is the reason why the DENR is pushing for the payment of five percent royalty by mining companies,” he added. – AP, Rhodina Villanueva